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2008/08/12ANAHEIM CITY COUNCIL REGULAR MEETING OF AUGUST 12, 2008 The regular meeting of August 12, 2008 was called to order at 3:09 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 August 8, 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 -AFFORDABLE HOUSING STRATEGIES UPDATE Joel Fick, Deputy City Manager, informed Council the workshop would show progress in reaching the four year goal of the Affordable Housing Strategic Plan (AHSP) adopted in 2005. The plan was ambitious, he stated, as it established goals that exceeded State mandated housing objectives and requirements of the Redevelopment Plan. Since plan approval, he noted, 30 percent of redevelopment tax increment had been formally committed to provide housing for low and very low income households and he pointed out focusing resources for the construction of new rental units as compared with construction of new ownership units or the rehabilitation of existing units represented a major policy shift for the City. Sheri Vander Dussen, Planning Director, reviewed advancements made relative to four AHSP planning directives given to the Department. She noted staff had effectively addressed three of the initiatives and were making good progress on the fourth. This year, she announced, the Department completed major revisions to the City's density bonus ordinance which was first adopted in November, 2006. Since its adoption, the ordinance was used in conjunction with seven rental housing developments that exceeded over 400 affordable units, collectively, and was being used for two pending projects with an additional 84 units. She added the City's density bonus ordinance had proven to be an effective incentive and tool for development of affordable rental units. This past year, she added, the department worked with a developer interested in converting the Economy Inn motel on South Beach Boulevard into a 49-unit residential facility serving the developmentally disabled population. She reported an expedited entitlement and plan review process for all affordable housing projects had been established in 2006, reducing the time required to process cases and reducing the cost of developing rental housing. Developers had realized time savings of up to one month off normal processing timeframes and since the expedited process was established, ten affordable housing rental developments took advantage of this incentive, which included Monarch Point, the affordable housing project which held a grand opening August 12, 2008. City Council Minutes of August 12, 2008 Page 2 of 12 As described in the AHSP, Ms. Vander Dussen explained, the intent of the affordable housing overlay zone was to encourage the development of affordable rental units on properties not currently designated for residential land uses. Several potential affordable housing opportunity sites of about 100 acres had been identified and staff was in the process of defining the recommended terms and incentives to include in the overlay zone and had retained a consultant to assist in the financial analysis. The change in the residential housing market, she commented, made this development process more challenging but she anticipated presenting the overlay zones to the Planning Commission and Council this year. Elisa Stipkovich, Community Development Department, announced the department had made significant progress towards the goals of the AHSP. The original goal had been 1,200 units at the end of four years, but some losses of affordable units from the housing stock were added to the 1,200 for a total of 1,328. With current projects underway and sites the City controlled, the Department estimated 1,571 units in total would be reached and exceed the targeted 1,328 units. PROJECTS COMPLETED OR UNDERWAY: Detailed charts presented to Council revealed over 918 units were either completed or underway. Of those, 400 were completed, 123 should be completed by the end of 2008 and the remaining units were waiting for financing or in negotiations with the developer. She outlined each of those projects. The first development completed was the Mercy Housing Project on Vine Street, a 100 percent affordable project, on a ground lease from the Housing Authority and with 60 units for low and very low income residents. Monarch Pointe opened on this date with 63 units developed by Jamboree Housing, 100 percent affordable, and on a ground lease with the Housing Authority. Broadway Arms, Doria Lofts, Carnegie Plaza, and the Promenade were four rental projects built by CIM, all of which should be completed by the end of 2008. These 277 units were for moderate income residents and no housing funds were used to assist. The next project, Broadway Village, was 46 units, tax credit allocations funded by Global Premier, and nearing completion. These were 100 percent affordable with no subsidy from the City, and containing an affordable agreement restricting the units beyond tax credit requirements as the density bonus and affordable housing ordinance was used. Elm Street, constructed by SADI, was 52 units to be completed in December 2008, 100 percent affordable, and a tax credit project. She remarked this was a project where the Agency provided a subsidy for the land as well as for site remediation and in 55 years the project reverted to the Housing Authority. Diamond Street, well under way and scheduled for completion in March of 2009, comprised of 25 units, was 100 percent affordable and a Jamboree Housing project, one of the three projects Jamboree was awarded as part of the Request for Proposal (RFP) process. The land was owned by the Housing Authority and was slated for a special needs project. The CHOC site on Lincoln was proposed to be 146 units of affordable housing by Related Companies, funded in two phases but to be built as one project. Related Companies received a commitment for funds for the first phase and had submitted application for this round of state tax credits. The project would begin construction before the end of this calendar year, had along-term ground lease with the Housing Authority and was 100 percent affordable. The next project was Belleview, a Global Premier 100 percent affordable project scheduled to start construction in September, 2008. The project had no City subsidy, however, had been awarded State tax credits and the City would enter into an affordable agreement based upon the issue City Council Minutes of August 12, 2008 Page 3 of 12 of zoning. The next project was Greenleaf, one of three of Jamboree Housing Corporation projects consisting of 53 units of 100 percent affordable low and moderate incomes. Another site the City owned, Ms. Stipkovich pointed out, was the former Lincoln Inn demolished in June, 2008 to make way for an affordable housing project. Staff was in negotiations with ASHA, which was the supportive housing for single adult's development group and they were proposing 51 units, 100 percent affordable to low and very low income. She explained staff was working on the final design and the developer had submitted entitlement application in order to reclassify the property for appropriate zoning. Manchester and Orangewood was another project awarded to SADI, which originally had a smaller site of 1.95 acres and staff was able to get the adjacent property to be included in that site. Ms. Stipkovich indicated SADI was now redesigning the 2.75 acre site and anticipated 99 units, 100 percent affordable through tax credit allocation. Those projects, she remarked, comprised the 918 projects either completed or underway. PROJECTS READY FOR RFPS: Ms. Stipkovich remarked the next groups of projects were those that the City would be sending out RFP's. There were two sites; one was part of the Colony Park project slated as a rental project which had been expanded due to a change in the Brookfield project. The City, she explained, renegotiated the terms of the Brookfield agreement and expanded that site and also wanted to see a large portion of that site dedicated to private open space. She stated there would be approximately 400 units of which 25 percent would be affordable. The next RFP site was three acres owned by the City, located south of South Street near the railroad tracks. The City was working at relocating existing tenants on that site and would then issue an RFP fora 100 percent affordable project. Some of the other future sites included an assemblage of property on Anaheim Boulevard which involved trading with an adjacent property owner in order to complete the site, which was south of Midway Street on Anaheim Boulevard. The other site was on Lincoln directly across from the CHOC site where the City owned a portion of the property and Clean City owned some of the other properties; staff was trying to determine a way to combine those properties in order to develop through and RFP process. REHABBED AND CONVERTED UNITS: An update of rehabbed and converted affordable units was provided. The fourth phase of Hermosa Village would make a total of 517 units in that area. The Bel'Age Manor, reflected 180 units of senior housing currently existing in the City. There had been an affordable agreement on this project for 40 percent of the units, due to expire in 2020 and staff was renegotiating the terms of the agreement with the developer (a partnership between Preservation Partners and Jamboree Housing). With the developer using tax exempt financing and the City extending the affordability term for 99 years, increasing the affordability to 100 percent and providing Section 8 vouchers, the Manor was now undergoing rehabilitation with most of the tenants staying in place and getting lower rents. She added staff was also working with ASHA to rehab and convert the Economy Inn on Broadway, which had been awarded funds from state and was also proposing to add Section 8 housing assistance vouchers to make that project feasible. She remarked staff would be coming to Council for an agreement on that project soon. FOR SALE PROJECTS: The for sale projects included Colony Park and Ms. Stipkovich anticipated more than 10 percent of those units would be affordable. Currently the project was to be 264 units when completed; nine low income households had already been purchased and staff believed 20 or more would be eligible for moderate income City Council Minutes of August 12, 2008 Page 4 of 12 families. Lastly, Habitat for Humanity, had been working for some time on completing four units for very low income families. Council Member Sidhu inquired since Colony Park and Harbor Loft were selling below prices than originally proposed, how would that reduction affect the City. Ms. Stipkovich responded that with the Colony Park project, the City had received a fixed market rate amount for land value, therefore no impact there. The second phase was also at market rate but the land value price had been adjusted. On Harbor Lofts, the City received market value rate for the land some time ago, again no impact. She emphasized with market prices falling into the affordable range, staff was also talking to developers about using down payment assistance programs to take advantage of this market place for low and moderate income buyers. She indicated staff was working on that right now with the Harbor Lofts and the Packing House projects; the Broadway Mixed Use project was being considered as possible affordable projects due to the economic situation. Council Member Hernandez commented on the success of staff and developers in providing new affordable units and exceeding the goals of the Strategic Plan. He recommended improving some of those neighborhoods as well, stating there had been an earlier program involving property owners, renters associations and staff seeking to beautify and clean up apartment buildings owned by absentee landlords. He asked for a report on that earlier program and a workshop on whether it was possible to take similar action with neighborhoods surrounding these projects. Council Member Galloway expressed pride and gratitude at the accomplishments by staff, asking if those projects were not completed in 2009, would Council be able to extend them. Ms. Stipkovich remarked that not all of those projects would be completed but she anticipated them to either be built or under construction by 2009, adding that Council had the ability to extend the goals if necessary. Mayor Pringle was supportive of the consolidation of the Manchester site and reminded staff of the need to locate a bus stop at the end of Lewis Street on Orangewood to insure the maximum number of points when the developer applied for tax credits. He also concurred with Council Member Hernandez in improving neighborhoods associated with the affordable housing projects and requested staff to determine where reinvestment in those key targeted neighborhoods was possible, what additional rehabilitation efforts could be implemented and where resources could be enhanced; staff agreed to schedule a workshop. Council Member Kring asked the City to also look at the Palm Lane apartments off Euclid, the apartments on the east side of Euclid, south of Orangewood and the Romneya area west of the hospital, where multiple absentee landlords had allowed properties to decline. Council Member Sidhu voiced his support for a workshop on improving those challenged areas. ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None City Council Minutes of August 12, 2008 Page 5 of 12 At 3:53 P.M., Mayor Pringle adjourned to closed session for consideration of the following items: CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Orange County Communities for Responsible Development v. City of Anaheim, Case No. 30-2008-00103422; Citizens for Responsible Equitable Environmental Development v. City of Anaheim, Orange County Superior Court Case No. 30-2008-00106314. 2. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: City of Anaheim v. Angels Baseball, L.P., Orange County Superior Court Case No. 050001902; 4th Appellate District No. G037202 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 800 West Katella Avenue, Anaheim, California (Car Park One site) Agency negotiators: Dave Morgan, Tom Wood, Greg Smith Negotiating parties: Garfield Traub Development, Regent Development OC, Sonnenblick-Del Rio Development, Inc. and the City of Anaheim Under negotiation: Price and terms Mayor Pringle reconvened the Council session at 6:12 P.M. Invocation: Pastor Lee Marie Sanchez, Unitarian Universalist Church Flag Salute: Mayor Pro Tem Hernandez Presentations: Recognizing participants of the Mills Act Program Elisa Stipkovich, Community Development Director, recognized historic property owners taking advantage of the Mills Act Program. Recognizing Kerry Condon and Karen Schroepfer on receiving the Crime Survivors 2008 Star Light Star Bright Award Chief John Welter remarked Kerry Condon and Karen Schroepfer, two investigating officers, had been recognized and awarded the Crime Survivors 2008 Star Light Star Bright Award and as such, epitomized the quality of work being down in the Department. Acceptance of Other Recognitions (To be presented at a later date): Recognizing the Kiwanis Club of Greater Anaheim on its 50tH Anniversary Recognizing the Anaheim V.I.P. Adult Day Health Care Center on its 20tH Anniversary City Council Minutes of August 12, 2008 Page 6 of 12 Joe Dale and Shirley McCracken, Greater Kiwanis Club of Anaheim, thanked Council for the recognition, announcing there were over 9,000 Kiwanis Clubs around the world in 91 countries all dedicated to serving the children of the world and teaching leadership in local communities. Randy Platt, Anaheim VIP Adult Care Center, thanked Council for recognition of the Care Center's 20th anniversary serving Anaheim residents. At 6:31 P.M., Mayor Pringle called to order the Anaheim Redevelopment Agency (in a joint public comment session with the Anaheim City Council). ADDITIONS/DELETIONS TO THE AGENDAS: At the request of staff, Council continued Item No. 11 to September 16, 2006. PUBLIC COMMENTS (all items except public hearing): William Fitzgerald, resident, spoke to pollution impacts resulting from Disneyland fireworks. Larry Rosenberg, Anaheim Ballet, invited the community to a free performance this Friday at Pearson Park Amphitheatre, with contributing dancers from Japan, Mexico and other states within the U.S. Bruce Solari, Chamber of Commerce, addressed his comments to Item No. 8, stating the Chamber supported both large and small businesses with a variety of products and services and thanked Council for their leadership in creating this partnership with the City, which had been so successful. At 6:39 P.M., Council considered the joint public hearing with the Anaheim Redevelopment Agency. JOINT PUBLIC HEARING: 1. This is a joint public hearing to approve an Amended and Restated Disposition 4600.2 and Development Agreement with Trucor, Inc. to add two parcels to the five original parcels and restructure economic terms and conditions, anticipated sales prices and methods of payment (Lemon and Water Phase III). RESOLUTION NO. 2008-148 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving an Amended and Restated Disposition and Development Agreement with Trucor, Inc., and making certain findings in connection therewith. Elisa Stipkovich, Executive Director of Community Development, announced the joint public hearing was to consider an amendment to a Disposition and Development (DDA) agreement approved on August 21, 2007 for five properties known as the Lemon/Water Historic Preservation Project, generally located near Lemon and Water. She explained that the amendment before Council was to add two parcels to the DDA. One of the parcels to be added was the sixth parcel in this subdivision where a historic home was recently relocated from Vermont Avenue for the purposes of restoration along with the City Council Minutes of August 12, 2008 Page 7 of 12 original five parcels. The DDA would add this parcel with the intent of Trucor restoring this home along with homes on the surrounding parcels and completing the historic streetscape for this neighborhood. The second parcel to be added to the DDA was located on Center Street and would finish the Five Points project in which the developer was also building a residential component. By adding these two parcels and re-doing the economic terms, the Agency would be putting up the land in this project through participation. She explained this would be an open book project where the developer must show actual costs and would be limited to a fixed 15 percent overhead and profit and any other proceeds from sale of the property would be split with two-thirds going to the Agency and one third going to the developer. She emphasized, based on current market conditions, this would be the only way to get these projects completed and staff felt it was critical, because six parcels with historic homes had been sitting on blocks for a lengthy period of time and should be put into productive use. Council Member Hernandez requested an anticipated completion date and Ms. Stipkovich responded that it would depend on how fast the properties sold but she hoped the entire project would be completed in 18 months. He asked how the value of the properties was determined. Ms. Stipkovich indicated Keyser Marston had performed an analysis of the current fair market value that was based upon projected sales and also by what the developer determined the homes would sell. She added it was a tough market in which to get comparable figures and difficult to predict a final sales price which is why the Department went to a participation formula. The land value was then based on a formula derived when the actual sale took place. Mayor Pringle opened the public hearing. Barbara Gonzales, recipient of Mills Act plaque for 115 West Steuckle Avenue which sits adjacent to the six homes awaiting restoration, spoke of the positive impact on neighbors when rehabilitation takes place. She supported this project and the significant impact the homes would have on her neighborhood. With no other speakers, Mayor Pringle closed the public hearing. Council Member Kring moved to approve RESOLUTION N0.2008-148 OF THE CITY OF ANAHEIM approving an Amended and Restated Disposition and Development Agreement with Trucor, Inc., and making certain findings in connection therewith, seconded by Council Member Galloway. Mayor Pringle supported this project and this developer and staff for being creative and figuring out a way to restore these historic homes in a challenging economic time. He added that one of the homes was the old Katella house pointing out the original owner named Katella Avenue for his two daughters, Kate and Ella, and this project would preserve a very special Anaheim home. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. At 6:52 P.M., Mayor Pringle adjourned the Anaheim Redevelopment Agency. CONSENT CALENDAR: Council Member Hernandez removed Item No. 8 for further discussion and Mayor Pringle removed Item No. 10. Council Member Kring moved to waive reading in full of all ordinances and resolutions and adopt the balance of the City Council Minutes of August 12, 2008 Page 8 of 12 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 Galloway. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. 2. Receive and file the annual consolidated detail and allocation report for the 0117 Supplemental Law Enforcement Services Fund fiscal year 200712008. 3. Accept the low bid of HD Supply Utilities, Limited, in an amount not to exceed $248,301.89, for the as-needed purchase of Thomas & Betts Homac connectors 0180 for Public Utilities warehouse stock for a period of one-year and authorize the Purchasing Agent to exercise up to four one-year optional renewals, in accordance with Bid # 7150. 4. Waive the sealed bid requirement of Council Policy 4.0 and authorize the 0180 Purchasing Agent to issue a purchase order to Linear Systems, in the amount of $101,448, to expand storage for the Digital image Management System for the Police Department Forensics Division. 5. Approve the Agreement for Acquisition of Mobile Home and Improvements with 5288 Plantation Mobile Estates, in the amount of $12,800, for a mobile home located at 1835 South Manchester Avenue, Space 15, for the Gene Autry Way (West)/I-5 Freeway Highway Project. 6. Approve an engineering services agreement with Infrastructure Management 1736.0 Services, Inc., in an amount not to exceed $230,000, for the City Pavement Management System Program for the City's arterial highway systems fiscal years 2007/08 and 2008/09. 7. Approve and authorize the Director of Public Works to execute Program AGR-5289 Supplement No. E62 and Administering Agency-State Master Agreement 00145S for the installation of a pedestrian signal on Ninth Street north of Audre Drive. 9. Approve the First Amendment to the Attorney Services Agreement with 2642.1 Nossaman, Guthner, Knox & Elliott to provide continued legal transactional services in connection with the ARTIC project. 11. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM finding the existence of a drought resulting in water shortage and ordering the implementation of Water Shortage Plan I for voluntary conservation. This ifem continued to September 77, 2008. 12. RESOLUTION NO. 2008-149 A RESOLUTION OF THE CITY COUNCIL OF Di75 THE CITY OF ANAHEIM requesting temporary closures to Caltrans I-5 offramps for Disneyland Half Marathon. City Council Minutes of August 12, 2008 Page 9 of 12 13. RESOLUTION NO. 2008-150 A RESOLUTION OF THE CITY COUNCIL OF P11o THE CITY OF ANAHEIM vacating a public utility easement located at 525 East South Street pursuant to California Streets and Highway Code Section 8330, Et Seq. -Summary Vacation (Abandonment No. ABA2007-00149). 14. RESOLUTION NO. 2008-151 A RESOLUTION OF THE CITY COUNCIL OF P110 THE CITY OF ANAHEIM vacating a portion of a public utility easement located at 8710 Heatherwood Road pursuant to California Streets and Highway Code Section 8330, Et Seq. -Summary Vacation (Abandonment No. ABA 2007- 00147). 15. ORDINANCE NO. 6110 (ADOPTION) AN ORDINANCE OF THE CITY OF T1o5 ANAHEIM levying special taxes within City of Anaheim Community Facilities District No. 08-1 (Platinum Triangle; Introduced at meeting of August 5, 2008, Item No. 19). 16. ORDINANCE NO. 6111 (INTRODUCTION) AN ORDINANCE OF THE C28o CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2008-00217; 8300 and 8306 East La Palma Avenue). End of Consent: 8. Approve an agreement with the Anaheim Chamber of Commerce, in an amount 3434.D not to exceed $150,000, to provide services to the City as liaison with the business community (Continued from meeting of August 5, 2008, Item No. 11). Council Member Hernandez remarked he had reviewed the Chamber contract with City staff, remarking staff had positive comments on the contract and the value of the activities derived from it. He explained he had expressed his concern that in the past, the Chamber had a larger membership than they do now and had not done much to increase the membership and he felt it demonstrated a lack of interest or diligence. He also felt this contract weakened the Chamber due to the perception the Chamber was another department of the City and did not represent business interests of small business owners. He added the number of businesses in the City versus the number of Chamber memberships equated to two percent. In addition, the contract details revealed two business leader events put on by the Chambers each costing $17,600, had been attended by 59 at one event and 73 at the other. This worked out to a cost of $359 per person for the first event and $241 per person for the second and he did not feel he could justify that kind of expense to a taxpayer. For those reasons, he remarked, he had serious reservations related to this contract. Mayor Pringle stated he had also asked to review other areas in which the Chamber could enhance the City's one staff person overseeing economic development. He explained the Chamber had presented a letter to allow augmentation of this contract to create a red team through the Chamber in which a group of business leaders would meet with struggling businesses to find out what was needed to insure that businesses could be maintained in Anaheim. The Chamber also saw an opportunity for greater exportation in matching Anaheim businesses with exporting opportunities and because of the City's interest in expanding sister city opportunities, it could participate in a number of Sister City activities and take a stronger lead in coordinating those activities. City Council Minutes of August 12, 2008 Page 10 of 12 For those expanded services, the Chamber requested an augmentation of $44,000 to the contract with Mayor Pringle emphasizing it was wise to maximize the aspects of the private sector and outsource important functions and he would be open to supporting an increase in the Chamber contract. He added he would also feel comfortable with the Chamber providing the same level of service as last year and moved to approve Item No. 8, seconded by Council Member Kring who stated she had also received the letter concerning deliverables and opportunities and needs in the community. She was very supportive of the Chamber going into the education system to discuss business employment needs in the community as well as talking to the business community as to current and future jobs needs. She added her belief that local chambers of commerce were the backbone of any community and made it easier for businesses to succeed. Council Member Galloway stated she had a philosophical difference and felt the City should not be subsidizing for-profit businesses. Council Member Sidhu remarked that after the prior Council meeting, he had investigated the Chamber's services more thoroughly and now understood that the best way for a potential business owner to get information and break into business in any city was from its local chamber of commerce. He also supported the red team program and offered a substitute motion to increase the Chamber of Commerce agreement by $44,000 with additional services as outlined and approve the contract as revised, seconded by Mayor Pringle. Roll Call vote: Ayes - 3: Mayor Pringle and Council Members Kring and Sidhu. Noes - 2: Council Member's Galloway and Hernandez. Motion Carried. 10. Determine, on the basis of the evidence submitted by Cathay Bank, that the AGR-4704 property owner has complied in good faith with the terms and conditions of Development Agreement No. 2006-00003 for the 2007-2008 review period for the Orangewood Condominiums project in The Platinum Triangle. Mayor Pringle requested clarification regarding Cathay Bank's participation in this contract. Sheri Vander Dussen, Planning Director, responded West Millennium originally obtained entitlements on this property which were subsequently modified by the Planning Commission and Cathay Bank was now the new owner of the property. Mayor Pringle remarked he was aware of a letter from Cathay Bank stating the project had been modified for a request for termination of substantial performance with previously approved exhibits, asking what those modifications were and how that was defined as being in good faith with the terms and conditions of the agreement. Ms. Vander Dussen replied that on April 28th, the Planning Commission made the determination of the substantial compliance, and allowed the project to be modified from a six story, 341-unit condominium project to a five-story 320-unit apartment building. With respect to determining good faith and compliance, she stated, staff looked at activities already taken such as the demolition of the buildings on the property and determined it was conducted in accordance with necessary mitigation measures. She further stated that since no threshold had yet been met where the developer was required to obtain building permits or commence construction of units, Cathay Bank was determined to be in compliance with terms of development agreement. Mayor Pringle asked if a modification to the project must also be approved by the City Council. Ms. Vander Dussen responded the Planning Commission found the revised plans were in substantial conformance with the previously approved plans, and the decision was not appealed to the Council, therefore no Council approval of the revisions was necessary. City Council Minutes of August 12, 2008 Page 11 of 12 Council Member Sidhu moved to approve Item No. 10, seconded by Council Member Kring. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. Report on Closed Session Actions: Mayor Pringle reported the City Council instructed the real property negotiator to exclusively negotiate with Sonnenblick-Del Rio Development, Inc. relating to a development project at the Convention Center (Vote: Ayes - 3: Mayor Pringle and Council Members Hernandez and Kring. Noes - 2: Council Members Sidhu and Galloway. Motion Carried). Council Communications: Council Member Hernandez expressed his condolences and support to the Bachman family and the U.S Volleyball Men's Olympic Team for the tragedy that occurred in Beijing. He also announced the 13th Marine Expeditionary Unit (MEU) would be having a Car Wash on Saturday, August 23~d to support the Marines of the 13th MEU and their families. He added the Community Services Department was currently offering free recreational swimming at Pearson Park. Council Member Galloway announced she would be attending the Democratic National Convention in Denver and commented on the grand opening of the affordable housing project, Monarch Point. She remarked this project was a dream come true for so many and congratulated the City and Jamboree Housing on their efforts. Council Member Kring also expressed her condolences and support to the Bachman family and the U.S Volleyball Men's Olympic Team. She commented on the quality of the Monarch Point project and thanked staff for all the support provided to Jamboree Housing. Council Member Sidhu announced that Friends of Anaheim Police K-9 detail would be receiving a donation from Ralph and Milkbone for the K-9 Hero Recognition program on August 14th. He also remarked on the free Anaheim Ballet performance to be held oat Pearson Park on August 15th, the weekly Nature Center programs being held at Oak Canyon Nature Center and the 657 area code overlay within the 714 area effective August 23~d Mayor Pringle thanked and congratulated Terry Lowe and KPMG Accounting Firm for the success of the youth service conference and their volunteer work in cleaning the Basin. He announced and expressed his support for the Orange County Flyers minor league baseball team, who would be playing August 14th at Cal-State Fullerton and expressed his condolences and support to the Bachman family and the U.S Volleyball Men's Olympic Team. City Council Minutes of August 12, 2008 Page 12 of 12 Adjournment: At 7:41 P.M., Mayor Pringle adjourned the August 12, 2008 Council meeting in memory of Todd Bachman Respectfully submitted, Linda N. Andal City Clerk