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11/20/2018ANAHEIM CITY COUNCIL REGULAR MEETING OF NOVEMBER 20, 2018 TELECONFERENCE NOTICE Pursuant to Government Code Section 54953, Subdivision (b), reflected the 3:00 P.M. regular meeting of the City Council and thereafter would include teleconference participation by Council Member Kris Murray from Hampton Inn Dulles/Cascades, 46331 McClellan Way, Sterling, Virginia 20165 with the room number posted in the hotel lobby. This Notice was posted at the teleconference location and public comment on the agenda from this address was allowed pursuant to Government Code Section 54954.3. The regular meeting of November 20, 2018 was called to order at 3:07 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on November 16, 2018. PRESENT: Mayor Tom Tait and Council Members Jose F. Moreno, Kris Murray (via teleconference), James Vanderbilt, Denise Barnes, Lucille Kring, and Stephen Faessel. STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk Linda Andal. ADDITIONSIDELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: Cecil Jordan Corken, Outreach Homeless Ministries, spoke of his outreach efforts. No public comments were received from the teleconferencing site. CLOSED SESSION: At 3:12 P.M., Mayor Tait recessed to closed session for consideration of the following items: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: People's Homeless Task Force, et al., v. City of Anaheim, USDC Court Case No. 8:18-cv-00642 DOC (KESx) 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Shelley McKerren v. City of Anaheim, Orange County Superior Court Case: No.30-2017-0000938143-CU-OE-CJC 3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of California Government Code Section 54956.9: Name of Case: One potential case. City Council Minutes of November 20, 2018 Page 2 of 27 4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the California Government Code) Property: Assessor Parcel Number: 253-601-02: 1621 S. Douglass Rd, Anaheim, CA 92806; Assessor Parcel Number: 253-521-16 and 253-521-17: 2695 E. Katella Ave, Anaheim, CA 92806 Agency Negotiators: Chris Zapata, City Manager; Linda Andal, City Clerk; and Tom Morton, Executive Director of Convention, Sports & Entertainment Negotiating Parties: Anaheim Arena Management and City of Anaheim Under Negotiation: Price and Terms of Payment 5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the California Government Code) Property: 3035 E. La Mesa Street, Anaheim, CA Agency Negotiators: Chris Zapata, City Manager; John Woodhead, Community and Economic Development Director Negotiating Parties: City of Anaheim and Chris Vance Under Negotiation: Price and Terms of Payment 6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the California Government Code) Property: 3431 La Palma Avenue, Anaheim, CA Agency Negotiators: Chris Zapata, City Manager; John Woodhead, Community and Economic Development Director Negotiating Parties: City of Anaheim, Bill Taormina, and ARMO Corp. Under Negotiation: Price and Terms of Payment At 5:12 P.M., the Council session was reconvened. All council members were present, including Council Member Murray (via teleconference). INVOCATION: Pastor Jose Ortega, Calvary Chapel Anaheim FLAG SALUTE: Council Member Lucille Kring PRESENTATIONS: Recognizing Araceli Castellon, Victoria's Garden Florist owner, for Acts of Kindness Mayor Tait recognized Araceli Castellon for adopting the "lonely bouquet program" which repurposes floral arrangements left over from events and delivers them to convalescent hospitals with a note for residents to enjoy. Recognizing Sister City Commissioner Anthony AI -Jamie for his valuable work with the Sister City Commission City Council Minutes of November 20, 2018 Page 3 of 27 Mayor Tait recognized Dr. Anthony AI -Jamie who has served as a Sister City Commissioner for six years and has also served as President of Sister City International. In addition, he is the Executive Editor of Tokyo Journal International Magazine and his in-depth understanding of Japanese culture and language has allowed him to interview with some of the most renowned individuals in Japan. Recognizing outgoing Council Members for their service to the City of Anaheim Mayor Tait thanked outgoing Council Member Murray and Council Member Vanderbilt for their service and dedication. Mayor Pro Tem Moreno thanked Mayor Tait, Council Member Murray, and Council Member Vanderbilt for their dedication and service to the residents of Anaheim and displayed a video of Mayor Tait's service. Mayor Tait introduced his family and thanked them for their support during his tenure. Acceptance of Other Recognitions (To be presented at a later date): Recognizing November 24, 2018, as Small Business Saturday Michael Buss, Anaheim Small Business Organization, thanked Mayor Tait and City Council for their recognition and thanked Mayor Tait for his service. Mayor Tait reported that there are over 23,000 small businesses in Anaheim and thanked small businesses for doing their business in Anaheim. At 5:47 P.M. Mayor Tait called to order the Anaheim Public Financing Authority, Anaheim Housing and Public Improvements Authority, and Anaheim Housing Authority (in joint session with the City Council). ADDITIONS/DELETIONS TO THE AGENDAS: City Clerk Linda Andal announced an amendment to the 2019 meeting calendar, Item Nos. 1 (Public Financing Authority), 3 (Housing and Pubic Improvements Authority), 5 (Housing Authority), and 29 (City Council), advising the February 26, 2019 meeting would be moved to February 19, 2019. She also reported staff requested to withdraw Item No. 34. REPORT ON CLOSED SESSION: City Attorney Robert Fabela reported that in regard to Item No. 5, Council unanimously authorized staff to negotiate the purchase of 3035 E. La Mesa Street with a purchase price not to exceed $3.95 million. PUBLIC COMMENTS (all agenda items, except public hearings): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk Linda Andal. Cecil Jordan Corken, Outreach Homeless Ministries, reported on his outreach efforts. Mayor Tait thanked Mr. Corken for attending every meeting during his tenure and for his passion for the City of Anaheim. City Council Minutes of November 20, 2018 Page 4 of 27 R. Joshua Collins, Homeless Advocates for Christ, reported on his outreach efforts and encouraged Council to look into laws that impact the homeless population. Mayor Tait advised that the City of Anaheim recently settled a lawsuit and was rapidly working towards opening shelter beds. He advised that the City was making great progress and anticipated the shelter opening soon. Mark Richard Daniels, Anaheim Cultural & Heritage Commission, First District, thanked Mayor Tait for his service and thanked him for his passion for the City of Anaheim. Mr. Daniels suggested that City Council rename Friendship Plaza as the Tom Tait Friendship Plaza. Mayor Tait thanked Mr. Daniels for his kind words and respectfully declined such a renaming. Michael Matsuda, Superintendent of Anaheim Union High School District, thanked Mayor Tait for his service to the Anaheim community and for instilling kindness in the City. Mr. Matsuda presented Mayor Tait with a proclamation on behalf of the teachers and students of the Anaheim Union High School District. Mayor Tait thanked Mr. Matsuda for the recognition and thanked Anaheim Union High School District for all of their hard work. Sal Sapien, Los Amigos, thanked Mayor Tait for his service and noted that Mayor Tait has been an icon of kindness and understanding and has helped Los Amigos a great deal. Mayor Tait thanked Los Amigos for their work in the City of Anaheim. Matt Holder, former aide to Council Member Barnes, thanked Council Member Barnes for her service and valued the time that he was able to work with her. Mr. Holder thanked staff for their hard work and dedication to the City of Anaheim. Mr. Holder thanked each member of City Council for their work. Lastly, he thanked Mayor Tait for his kindness and service to the City of Anaheim. Mayor Tait thanked Mr. Holder for his service to the City of Anaheim. Gretchen Shoemaker read a symbolic story to Mayor Tait and thanked him for his service. Jackie Filbeck, Anaheim Elementary Board of Education, thanked Mayor Tait for his service and partnership and helping them with so many endeavors, including bringing music back into the schools after a twenty-year absence. Ms. Filbeck recalled a small assembly that Mayor Tait attended to dedicate a "buddy bench" and talked to the students and explained kindness to them. Mayor Tait thanked Ms. Filbeck and thanked the Anaheim Elementary Board of Education for all of their hard work. Dr. Cynthia Smith, Program Director of Creative Identity, thanked Mayor Tait and Dr. Moreno for coming for their Thanksgiving Luncheon and thanked City Council for supporting Creative Identity and their use of the Accessibility Center. City Council Minutes of November 20, 2018 Page 5 of 27 Nathan Bush thanked Mayor Tait for his support in providing vocational and life skills for their participants. He reported that he started the program with Creative Identity three (3) years ago, thanked City Council for the use of the Accessibility Center, and invited City Council to attend their winter concert. Mr. Bush also thanked the Anaheim Police and Fire Departments for their service. Mayor Tait thanked Creative Identity and complimented Mr. Bush for his public speaking skills and his cello playing abilities and graciously accepted the offer to attend the Winter Concert. Dr. Smith clarified that the winter concert would take place on December 1, 2018 at the Anaheim First Christian Church at 6:00 p.m. William Fitzgerald, Home Owners Maintaining Our Environment, addressed City Council regarding Disney's influence on City Council positions, encouraged the recognition of veterans and the remembrance of World War I on Veteran's Day, and expressed his opposition to the LGBTQ flag flying outside of City Hall. Daniel Luevanos, City Ambassador from One Legacy, Donate Life, offered statistics on the Donate Life program and its recipients, encouraging interested citizens to register on www.donatelifecalifornia.org, and reported that the Donate Life Transplant Games of America were held in Salt Lake City, Utah in August. Additionally, he reported that the theme for the float in the Tournament of Roses Parade for the organization will be "The Rhythm of the Heart". He invited City Council to the exclusive first look event on December 12, 2018 to see the float and riders. Mayor Tait thanked One Legacy for bringing organ donation awareness to the community. Jeff Levine, Fullerton resident, expressed support of the City building a second shelter, reported that many of the local motels had code violations, and suggested the City start shutting them down and turning them into housing for the homeless. Mayor Tait thanked Mr. Levine for his support and for bringing these issues to City Council's attention. Ron Bengochea thanked City Council for their service and for approving a study for a veteran's cemetery in the area. He hoped that the spirit of kindness continues with the next City Council. Shadi Pourkashef, Goodwill Ambassador for World Kindness for the City of Laguna Beach and founder of Ability Awareness Project, https://www.kindandsafeschools.orq/, reported that on August 17, Mayor Tait heard a boy calling for help from the beach and saved the boy's life. Ms. Pourkashef awarded Mayor Tait with the City of Laguna Beach Courage to Be Kind Award and presented it to Mayor Tait. Mayor Tait thanked the City of Laguna Beach for their recognition. Patrick McGee spoke of the death of Justin Perkins after an altercation with the Anaheim Police Department. City Council Minutes of November 20, 2018 Page 6 of 27 Danielle Wilson, UNITE HERE, Local 11, thanked Mayor Tait for his leadership and expressed her opposition to Consent Calendar Item No. 35, requesting City Council consider the facts before approving the proposal. Mike Bocancea, Anaheim resident and retired teacher, expressed his concerns with issues around the City. Randy Beckett, Anaheim small business owner, has his business located near the proposed La Palma location of the new shelter and requested City Council consider looking towards alternative locations for a new shelter. Mayor Tait replied that staff was pulling that item for discussion tonight and advised that City Attorney Robert Fabela reported in closed session that there was another location that the City is investigating. Dilip Punjabi expressed his support of an alternative location, other than the La Palma location, for the proposed homeless shelter. Ada Briceno thanked Mayor Tait for his service and his ability to work with groups of all kinds. She also thanked Council Member Vanderbilt for his assistance. She reminded City Council that when Anaheim Arena Management took over concessions at the Honda Center back in 2013, over 400 workers were displaced and requested that a comprehensive community engagement process be conducted. Shakeel Syed, Orange County Communities Organized for Responsible Development Board of Directors, thanked Mayor Tait and City Council for their service in creating a culture of kindness. Mr. Syed voiced concerned over Consent Calendar Item No. 35 and requested that City Council table the item. Michael Shonafelt addressed Consent Calendar Item No. 34 and expressed support in looking at an alternative location. Vern Nelson, Los Amigos, spoke of Mayor Tait's service to Anaheim including his steadfastness in protecting the city's treasury, his support of district elections, his opposition of subsidies, and saving Angels Stadium. Mr. Nelson urged City Council to strive to continue to be the City of Kindness even as City Council changed hands. Lastly, Mr. Nelson wished Mayor Tait the best of luck on his future endeavors. Victoria Vidrio expressed her gratitude to the current City Council and her concerns for the upcoming City Council. Kenneth Batiste thanked Mayor Tait for his service and reminded City Council that we are all one and should stand together as one. Dr. Patricia Adelekan read and presented a proclamation to Mayor Tait for his service to the City of Anaheim. Tim Schindler thanked Mayor Tait and Council Member Vanderbilt for their service and requested that City Council and residents work together for a better Anaheim. City Council Minutes of November 20, 2018 Page 7 of 27 Jeanine Robbins spoke of the homeless community and stated that they were being stripped of their dignity due to locked public restrooms and harassment by Anaheim Police Department. Ms Robbins also expressed concerns with Consent Calendar Item No. 35 and its lack of transparency. Peter Chen, local business owner, thanked City Council for listening to the public and being willing to consider an alternative location for the new homeless shelter. Mike Robbins read a story to City Council about the length of council meetings and presented it to Mayor Tait. Cindy Morrison expressed her concerns over notices that she and other residents have received regarding the Beach Boulevard project. Ms. Morrison asked for clarification on what will happen to homes in the area and students attending Albert Schweitzer Elementary School. Mayor Tait advised Ms. Morrison that this item will be discussed later in the meeting and asked that she re -address her concerns at that time but also asked staff to address her concerns. Bryan Kaye presented Mayor Tait an award for his heroic efforts in Laguna Beach and spoke of his attendance at the Police Review Board "The Cameraman" advised that he attended the Huntington Beach City Council and conveyed the City of Anaheim's solution to the coyote problems in the area. He stated that City Council needed to do a better job for the homeless community and expressed his concern with the Anaheim Police Department's use of a control hold. No public comments were received from the teleconferencing site. COUNCIL COMMUNICATIONS/AGENDA REQUESTS: Council Member Murray expressed her honor to serve the City. Council Member Vanderbilt thanked residents for allowing him to serve as the last citywide - elected Council Member, acknowledged staff and community members for city events, and thanked his aide, Helen Myers, for her service. Council Member Faessel expressed his appreciation for mentorship by Council Members Murray and Vanderbilt and expressed his honor to serve with Mayor Tait. He offered congratulations to all, looked forward to working with the new Council Members, and wished those leaving a fond farewell. Mayor Tait thanked all those who spoke for him during public comments; thanked his wife, Julie, for her support; and reflected on his 18 years as Council Member and Mayor. City Council Minutes of November 20, 2018 Page 8 of 27 CITY MANAGER'S UPDATE: City Manager Chris Zapata, on behalf of City staff, thanked Mayor Tait and Council Members Murray and Vanderbilt for their service to the city. At 7:35 P.M., Mayor Tait recessed the City Council to address the Public Financing Authority, Housing and Public Improvements Authority, and Housing Authority agendas, and reconvened at 7:38 P.M. CONSENT CALENDAR: At 7:38 P.M., the consent calendar was considered with Council Member Faessel pulling Item No. 22 and Council Member Kring pulling Item No. 31 for separate discussion and consideration. Mayor Tait declared a potential conflict on Items No. 11, 25 and 26. 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 Barnes. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried. 7. Receive and file minutes of the Senior Citizen Commission meetings of November 16, 2017, January 18, 2018, March 15, 2018, and July 19, 2018; and Youth Commission B105 meetings of October 5, 2017, November 2, 2017, December 7, 2017, February 1, 2018, and March 1, 2018. D116 8. Approve proclamation recognizing Anaheim Beautiful Holiday Lights Winners. D117 9. Approve the Investment Portfolio Report for October 2018. 10. Approve carryover expenditure appropriations of $72,035,359 from Fiscal Year 2017/18 D128 to Fiscal Year 2018/19 for projects previously approved by the City Council but not yet completed. 11. Amend the Fiscal Year 2017/18 Budget by increasing appropriations in the Planning and D106 Building Department by $1,050,000 for costs associated with the contract with the County to provide animal control services, the graffiti abatement contract, and short-term rental hardship applications. Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE: AYES — 6: (Mayor Pro Tem Moreno and Council Members Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. ABSTENTION — 1: (Mayor Tait). Motion carried. 12. Authorize the Finance Director to increase the Public Works Fiscal Year 2018/19 budget by $7.9 million to implement transportation improvements in The Anaheim Resort funded D175 by the Anaheim Tourism Improvement District, including widening eastbound Katella Avenue adjacent to the Convention Center, installing Intelligent Transportation System improvements, implementing sign improvements and conducting sign -related project management activities. City Council Minutes of November 20, 2018 Page 9 of 27 13. Approve and authorize the Finance Director to execute a Termination Agreement, in substantial form, to affect the City's election to exercise the Purchase Option under the AGR- Honda Center lease -in, lease -out transaction and take the necessary or appropriate 1795.1 actions in connection therewith (2695 E. Katella Avenue). 14. Accept the bid from Tom's Aircraft LLC., in the amount of $204,437.70 plus applicable tax, for as needed airplane engine and airframe parts, components and labor for the D180 Police Air Support Division for a one year period with up to four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #9115. D180 15. Accept the bid from Tajen Graphics Inc., in the amount of $51,262.52 plus applicable tax, for as needed citywide printing services of letterhead, business cards and envelopes for a one year period with up to four one-year optional renewals; and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #9211. 16. Accept the bid from GMAT, in the amount of $119,900, to remove, furnish, and install D180 new sectional roll -up doors for Fire Stations 2, 9, and 10, and authorize the Purchasing Agent to execute the purchase order, in accordance with Bid #9210. 17. Accept the bids of JPC Online Holdings, LLC and Glass Box Technology, in the D180 respective amounts of $35,880 and $89,499.62 plus applicable tax, for the purchase of network equipment and maintenance at various City locations, in accordance with Bid #9218. AGR- 18. Approve the Final Map and Subdivision Agreement with KB Home Coastal, Inc. for Tract 11290 No. 18045 for property located at 312-400 South Euclid Street and 1678 West Broadway for the establishment of a 39 detached and attached residential units for condominium purposes. 19. Approve an agreement with Keolis Transit Services, LLC, dba Western Transit Systems, for the operation of the Senior Mobility Program to provide transportation services to Anaheim senior citizens for a term of five years with an option for the Community AGR- Services Director to renew the agreement for an additional two years under the same 4658.A terms and conditions. 20. Approve an agreement with RCS Investigations & Consulting, LLC, in an amount not to AGR- exceed $325,000 per year, and an agreement with Beard Investigative Services, LLC, in 7551.A an amount not to exceed $50,000 per year, for pre-employment background AGR -11291 investigations, public agency administrative investigations, and consulting and training services for a three year term with an option to renew for one additional year. 21. Approve and authorize the City Manager, or designee, to execute and administer a AGR- Professional Service Agreement with CSG Advisors, Inc., in an amount not to exceed 7717.A $100,000, for on-call economic and financial advisory consulting services to support the Community & Economic Development Department for a one year term beginning November 1, 2018 with two one-year extensions. City Council Minutes of November 20, 2018 Page 10 of 27 23. Determine, on the basis of the evidence submitted by Anaheim Capital Partners LLC; GardenWalk Hotel I, LLC and Westgate Resorts Anaheim, LLC, that the property owners AGR- have complied in good faith with the terms and conditions of each of their respective 1463.2 portions of Development Agreement No. 99-01 for the 2017-2018 review period pertaining to the Anaheim GardenWalk Project. 24. Determine, on the basis of the evidence submitted by PT Metro LLC, that the property owner has complied in good faith with the terms and conditions of Amended and AGR Restated Development Agreement No. 2005-00008 for the 2018 review period for the A - 3750.A Town Metro mixed-use project located in the Platinum Triangle. 25. Determine, on the basis of the evidence submitted by LTG Platinum LLC, that the property owner has complied in good faith with the terms and conditions of Development AGR- Agreement No. 2015-00001 for the 2018 review period for the LT Platinum Center mixed - 10349 use project located in the Platinum Triangle. Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE: AYES — 6: (Mayor Pro Tem Moreno and Council Members Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. ABSTENTION — 1: (Mayor Tait). Motion carried. AGR- 26. Determine, on the basis of the evidence submitted by Jefferson at Stadium Park Phase A 10155 Owner, LLC; Jefferson at Stadium Park Phase B Owner, LLC; and Jefferson at Stadium Park Phase III, LLC, that the property owners have complied in good faith with the terms and conditions of Development Agreement No. 2015-00002 for the 2018 review period for the Jefferson at Stadium Park Project located in the Platinum Triangle. Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE.- AYES OTE:AYES — 6: (Mayor Pro Tem Moreno and Council Members Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. ABSTENTION — I. (Mayor Tait). Motion carried. 27. RESOLUTION NO. 2018-137 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM authorizing the Director of Public Works or designee, to submit grant applications for Passenger Amenity Improvements at 18 bus stop locations to the Orange County Transportation Authority for funding under the Project W Safe Transit Stops Program on behalf of the City of Anaheim, and if awarded, authorizing the Director of Public Works, or designee, to execute all documents required to accept the grant funds on behalf of the City and amending the budget for Fiscal Year accordingly to reflect said grant award; and, determining that these actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Class 1, Section 15301 (Existing Facilities) and Class 2, Section 15302 (Replacement or Reconstruction). 28. RESOLUTION NO. 2018-138 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the Measure M2 Expenditure Report and authorizing the City of Anaheim Finance Director to sign and submit the Expenditure Report to the D175 Orange County Transportation Authority on behalf of the City of Anaheim. 29. RESOLUTION NO. 2018-139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing the dates and time of regular meetings of the City R100 Council for the 2019 calendar year. Approved, as amended. City Council Minutes of November 20, 2018 Page 11 of 27 30. ORDINANCE NO. 6447 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 17.06.131 (Slope Planting General) of Chapter 17.06 M142 (Grading, Excavations and Fills in Hillside Areas) of Title 17 (Land Development and Resources) of the Anaheim Municipal Code relating to planting materials on slopes and making findings and determinations in connection therewith (Introduced at Council meeting of November 13, 2018, Item No. 17). ORDINANCE NO. 6448 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 18.18 (Scenic Corridor (SC) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code relating to tree preservation in the scenic corridor overlay zone and making findings and determinations in connection therewith(Minor Alterations to Land) (Introduced at Council meeting of November 13, 2018, Item No. 17). Determine that the proposed code amendments are exempt from the requirements to prepare additional environmental documentation per California Environmental Quality Act Guidelines, Section 15301, Class 1 (Existing Facilities) and Section 15304, Class 4 (Minor Alterations to Land) (Introduced at Council meeting of November 13, 2018, Item No. 17). 32. ORDINANCE NO. 6450 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 18.38 (Supplemental Use Regulations) of Title 18 (Zoning) M142 of the Anaheim Municipal Code relating to emergency shelters and finding and determining that this ordinance is exempt from the requirements to prepare additional environmental documentation per California Environmental Quality Act (CEQA) Guidelines, Section 15060(c)(2) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment (to clarify location, permitting and operational requirements and provide regulatory relief in the event of a declaration of a shelter crisis) (Introduced at Council meeting of November 13, 2018, Item No. 19). 33. ORDINANCE NO. 6451 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 17.37 (Public Art) to Title 17 (Land Development and M142 Resources) of the Anaheim Municipal Code for the purpose of promoting the installation, maintenance, and restoration of public art and determining that this ordinance is exempt from the requirements to prepare additional environmental documentation per California Environmental Quality Act (CEQA) Guidelines, Section 15060(c)(2) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment (Introduced at Council meeting of November 13, 2018, Item No. 25). END OF CONSENT CALENDAR: 22. Authorize payment to the Anaheim Union High School District for the Anaheim Innovative D116 Mentoring Experience program, in the amount of $100,000. Deputy City Manager Greg Garcia presented the staff report, stating that at the Mid -Year Budget Workshop on February 27, 2018 City Council expressed a desire to increase the financial contribution in support of the Anaheim Union High School District(AUHSD) AIME program from $45,000 to $100,000. Mr. Garcia shared that the AIME program is a four-year-old initiative by the City and AUHSD that pairs students with businesses and other organizations. He advised that over 2,000 students from 10 schools have benefited from mentoring with businesses City Council Minutes of November 20, 2018 Page 12 of 27 including Disneyland Resort, Kaiser Permanente, Wells Fargo, and other organizations including the City of Anaheim. He advised that each participant received a stipend, which was unique to the program, and staff would work with the school district to receive reports on how the funds were being used. DISCUSSION: Council Member Faessel requested that spending reports be provided for the duration of the program. Mayor Tait expressed support for the program and hoped that it would be expanded to other area schools. Council Member Murray asked that the City reach out to all schools in the area to advertise and extend the program. Mayor Pro Tem Moreno noted that this was an innovative program that was initially funded by the United Way to support students for their college career and life readiness and that they have agreed to sustain their commitment to the program. Council Member Kring would prefer that the Superintendent of AUHSD reach out to the Superintendent of the Orange Unified School District to discuss the program in order to keep the school districts separate. MOTION: Council Member Faessel moved to authorize payment to the Anaheim Union High School District for the Anaheim Innovative Mentoring Experience program, in the amount of $100,000, seconded by Council Member Barnes. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried. 31. ORDINANCE NO. 6449 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 4.10 (Commercial Solicitation In The Resort Area); Chapter 4.52 (Peddlers and Solicitors); Chapter 12.12 (Streets and Sidewalks); Chapter 13.08 M142 (Public Parks); and, Chapter 14.32 (Parking and Stopping) to regulate sidewalk vendors pursuant to Senate Bill No. 946 and finding and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), 15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment because there is no possibility that it may have a significant effect on the environment and because it is not a project as defined in Section 15378 of the CEQA Guidelines (Introduced at Council meeting of November 13, 2018, Item No. 18). DISCUSSION: Council Member Kring expressed concerns about health and trash issues, as well as about taking business away from traditional food providers. Lastly, she stated that she was concerned about over -crowding of vendors in a particular area as there was no regulation. Council Member Vanderbilt believed that this was going to create complaints from residents and hoped that staff could work with the new City Council to fine tune the ordinance. In response to Council Member Faessel inquiry regarding health concerns, Planning and Building Director David Belmer provided a brief background and reminded Council that the City was reacting to legislation by the State of California and that if the ordinance was not adopted, City Council Minutes of November 20, 2018 Page 13 of 27 the City would lose its ability to regulate sidewalk vendors in any capacity. He advised that the City has reached out to Orange County Health Department to better understand health permits. Mr. Belmer further advised that the ordinance requires a street vending permit and a business license, and the City Attorney has advised that the City can require proof of a Health Department permit before the street vending permit is issued. The City is working to modify the permit process to include that requirement. Mr. Belmer advised that if no action was taken, the City would only be able to prevent sidewalk vendors in the Resort based on a previous ordinance. He also advised that the City would be able to further enhance the ordinance in the future. Mayor Pro Tem Moreno asked how many illnesses in the City could be attributed to street vendors, to which Mr. Belmer responded that he could not provide those statistics as they were usually only called for code enforcement issues. Council Member Kring advised that she never sees a pushcart in the park, but in local neighborhoods. She would like to see a report on how many pushcarts were on the streets today. Council Member Murray understood the concerns being raised and wanted to make sure that proper oversights are in place. Council Member Vanderbilt stated that he was in support of pushcart vendors and was simply concerned about noise in the neighborhoods. Council Member Barnes asked how a customer would know if a pushcart vendor was compliant and Mr. Belmer responded that a permit would need to be posted on the cart. MOTION: Mayor Tait moved to adopt ORDINANCE NO. 6449 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 4.10 (Commercial Solicitation In The Resort Area); Chapter 4.52 (Peddlers and Solicitors); Chapter 12.12 (Streets and Sidewalks); Chapter 13.08 (Public Parks); and, Chapter 14.32 (Parking and Stopping) to regulate sidewalk vendors pursuant to Senate Bill No. 946 and finding and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), 15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment because there is no possibility that it may have a significant effect on the environment and because it is not a project as defined in Section 15378 of the CEQA Guidelines, seconded by Council Member Faessel. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members Moreno, Murray, Barnes, and Faessel). NOES — 2 (Council Members Vanderbilt and Kring). Motion carried. 34. Consider the following actions regarding the purchase of property located at 3431 East La Palma Avenue to construct a temporary 125 emergency bed shelter and authorize A123 provider services (continued from Council meeting of November 13, 2018, Item No. 21): Approve the Agreement for Sale of Property and Joint Escrow Instructions, in substantial form, in the amount of $4,900,000, with ARMO CORP for the property located at 3431 East La Palma Avenue (Property), for purposes of constructing a temporary 125 -bed homeless shelter, and authorize the Director of Community and Economic Development, City Council Minutes of November 20, 2018 Page 14 of 27 or his designee, to execute and administer the agreement, and other documents as may be necessary to consummate the transaction. Determine that the best interests of the City of Anaheim are served by authorizing and approving the transactions contemplated herein, which include among other things, the waiver of the requirements of Anaheim Municipal Code Chapter 10.06 (Design -Build Contracting for Public Works Projects) pursuant to Resolution No. 2018-118, declaring a shelter crisis, among other actions, authorize the Public Works Director, or designees, to execute and deliver a Design Build Agreement with a selected licensed contractor for the design and construction of the Project, in an amount not to exceed $2,000,000, and the waiver of irregularities, if any, in any of the proposal documents, authorize the City Manager to execute all other related documents and to take such actions as are necessary to implement and administer the Design Build Agreement; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with Public Contract Code Section 22300. Waive Council Policy 4.1 and approve and authorize the City Manager to enter into an agreement with Illumination Foundation that shall be reviewed and approved by the City Attorney, for site design and operation of the temporary homeless shelter for one year with two one-year renewal options, in the amount of $2,515,625 per year. Determine this action to establish and operate a temporary homeless shelter during a shelter crisis is categorically exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 (categorical exemption for existing facilities), 15303 (categorical exemption for new construction or conversion of small structures), 15304 (categorical exemption for minor alterations to land), and 15332 (categorical exemption for in -fill development projects), and none of the exceptions to the categorical exemptions identified in CEQA Guidelines Section 15300.2 apply. Increase the Public Works Fiscal Year 2018/19 budget by $2,000,000, Community Development Department's Fiscal Year 2018/19 budget by $4,900,000, and City Administration Fiscal Year 2018/19 budget by $1,250,000. DISCUSSION: Mayor Tait asked that this item be tabled while the other property option was explored. Mayor Tait advised that Item No. 34 was part of the settlement from Orange County Catholic Worker v. Orange County that required the City to produce 325 temporary shelter beds would include wrap-around services. He clarified that after the temporary beds were in place, the Salvation Army would then build a permanent structure and would include wrap-around services. Mayor Tait reported that at the last City Council meeting they were ready to purchase the property on La Palma, but at the request of Bill Taormina, looked at another property. Mayor Tait believed that the other building actually works better for the shelter bed solution. Mayor Tait requested that Mr. Taormina come forward to address City Council. Mr. Taormina reported that his objective was always to get the best deal possible for the City of Anaheim. He agreed that the building at the new location worked better and can be up and running quickly and asked that the City work with Mr. Vance to find a new location for his piano inventory. Mr. Taormina also asked for time to speak to charitable donors who were looking to fund some of City Council Minutes of November 20, 2018 Page 15 of 27 these ideas and reported he was very close to finalizing some agreements. He was very grateful to have the opportunity to help the City of Anaheim. Council Member Murray acknowledged and thanked Mr. Taormina and the amount of work he has put in to support the City of Anaheim and addressing homelessness. Council Member Faessel thanked Mr. Taormina for his commitment and passion in working towards resolving homelessness in Anaheim. Council Member Kring thanked Mr. Taormina for putting the needs of the City of Anaheim before his personal financial gain. She also noted that these shelters were a stop -gap measure and that the City will continue to work towards permanent support of housing. Mayor Pro Tem Moreno thanked Mr. Taormina for donating so much time and resources to the City of Anaheim and noted that it was greatly appreciated. He asked staff to clarify if the timeline will be impacted due to the property change since the layout has changed and how would services be impacted. City Manager Chris Zapata advised that there will not be an impact to the timeline due to the property change and, since it has been termed a crisis, staff will not need to come back to City Council for approvals for these two shelters. City Clerk Linda Andal addressed Mayor Pro Tem Moreno's concerns about complaints he has received about warehousing the homeless community. She advised that there were some conceptual plans for Mr. Taormina's site that included partitions that will separate beds and provide a greater level of privacy. In addition to that, they will work with the same provider that Mr. Taormina has been working with since announcing his plan. Lastly, Ms. Andal advised that the services that Mr. Taormina was going to provide in his Life Rebuilding Service Center were the same services that Illumination Foundation would provide at the new shelter. Ms. Andal further advised that Chrysalis will also provide job placement services and provide triage and intake with a full certified staff onsite. Council Member Barnes also thanked Mr. Taormina for his service to the City of Anaheim. Council Member Vanderbilt thanked Mr. Taormina for his service and noted that his investment with the City of Anaheim will not be forgotten. MOTION: Mayor Tait moved to table Item No. 34, seconded by Council Member Kring, ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried. 35. Consider the following actions with respect to the sale of City -owned property around the AGR- Honda Center, ARTIC operations, amendment of the Honda Center Facility Management 1464.V.3.A Agreement, and the long-term retention of the Anaheim Ducks: AGR -11312 Approve Amended and Restated Third Amendment to Facility Management Agreement, in substantial form, between the City as owner and Anaheim Arena Management, LLC AGR- (AAM) as manager; 1464.V.111 City Council Minutes of November 20, 2018 Page 16 of 27 Approve Facility Management Agreement, in substantial form, for the Anaheim Regional Transportation Intermodal Center (ARTIC) between the City as owner and ATCM, LLC (an affiliate of AAM and controlled by H&S Ventures, LLC) as manager, as guaranteed by AAM pursuant to a Guaranty of Payment and Performance in favor of the City; and Approve the following agreements, in substantial form, relating to sale of the City owned Honda Center parking areas: Purchase and Sale Agreement between the City as seller and TS Anaheim, LLC, an affiliate of AAM and controlled by H&S Ventures, LLC, as buyer for the sale of the portions of Honda Center parking lots 1, 3, 4 and 5 owned by the City; Memorandum of Purchase and Sale Agreement between the City and Buyer; Grant Deed made by the City as grantor to Buyer as grantee, transferring the Land, and reserving to the City certain utility easements; Parking and Access Easement Agreement between Buyer as grantor and the City as easement holder, encumbering the Land; Loading Dock Easement Agreement between Buyer as grantor and the City as easement holder, encumbering portions of the Land adjacent to Honda Center; Equipment Easement Agreement between Buyer as grantor and the City as easement holder, encumbering portions of the Land adjacent to Honda Center; Quitclaim Bill of Sale made by the City to Buyer as to certain personal property interests relating to the Land; and Termination of Consent, Traffic and Parking and Non -Disturbance and Attornment Agreement among the City, Anaheim Ducks Hockey Club, LLC and AAM, terminating an out-of-date 1993 agreement establishing certain obligations of the City to the Anaheim Ducks and AAM. City Clerk Linda Andal presented the staff report along with Convention, Sports & Entertainment Department Executive Director Tom Morton. Ms. Andal reported that City Council was presented a general negotiating framework for the future of the Honda Center and ARTIC, which would naturally benefit the Platinum Triangle, and was approved at the October 23, 2018 City Council meeting. The agreements formalize the framework and staff believed this was the perfect time to negotiate this contract. The agreements also hold the potential for significant financial benefit for the community today and in the future. Ms. Andal highlighted the Community Outreach Program to City Council which included a website, https://Anaheim.net/HCNext25 and a social media campaign. Mr. Morton provided an overview of the agreements and reported that the Amended and Restated Third Amendment to Facility Management Agreement keeps the Anaheim Ducks at the Honda Center through 2048 with options for five, five year extensions. The agreements maintain City ownership of the arena with AAM covering all operational expenses and all capital expenditures. The amendment increases the City's ability to share in net revenue by increasing the City's profit sharing expenses from 20% to 50% and reducing the profit sharing threshold to $6 million beginning in 2023. Mr. Morton further reported that the City would agree to relinquish City Council Minutes of November 20, 2018 Page 17 of 27 one suite, but would gain fourteen season tickets for distribution per the City's ticket policy. Finally, the amendment transfers the City's obligation to provide parking from the City to AAM. The ARTIC Facility Management Agreement allows ATCM, an affiliate of AAM, to assume management of ARTIC through 2048 and will relieve the City of ARTIC's annual $2.5 million operating loss that was currently covered through the General Fund. The agreement also contemplates a "spectacular" digital messaging board with all revenue going to ARTIC operations and the approval of the actual board will come back to City Council in the near future. The agreement will provide for profit sharing, with 60% of net proceeds going to the City. Mr. Morton further advised that the final portion of the agreement was the sale of City -owned land around Honda Center to TS Anaheim at the market price of $10.1 million. The Honda Center would assume the City's obligation to provide, at a minimum, 3,900 parking spaces for event attendees. He further advised that this agreement included value protection provisions which protect the City, as the land cannot be sold for a higher amount without satisfying the parking requirements. Ms. Andal clarified that the agreement only covered the sale of land around the Honda Center. The sale of these land cells allows AAM to use the land for create better uses and provides an opportunity for the City to partner with great owners and operators to move this area forward. Ms. Andal reported that in addition to keeping the Anaheim Ducks in Anaheim, the 2004 City Council adopted Platinum Triangle Master Land Use Plan provides opportunities for well- designed development projects that would combine residential with other uses. She also reported that any additional development will be required to go through a City Council approval process. Lastly, Ms. Andal reported that the Anaheim Ducks, along with their owners Henry and Susan Samueli, will continue as Anaheim's partners for the next generation and beyond and help reinforce the Anaheim image. DISCUSSION: Mayor Tait thanked all staff who have worked on this transaction and believed that it will be great for the residents of Anaheim. He clarified that the property cannot be developed as it is today and this will open up future development. The land is being sold at appraised value and he felt it made complete sense to negotiate directly with AAM and forego the RFP process. Mayor Tait asked staff about the agreement and how it assures that the team name will remain the Anaheim Ducks. City Attorney Robert Fabela advised that the language in the agreement says that it will be Anaheim Ducks and cannot be changed without City consent. Mayor Tait noted that ARTIC costs the City $2.5 million per year and this agreement gets the City out from that obligation. He also thanked Henry and Susan Samueli for their philanthropy and their passion for the City of Anaheim. Council Member Faessel was supportive of the agreement but wanted clarification on the profit splits. He stated that he understood that the profit sharing was 50-50 after loans were repaid and asked for clarification regarding those loans. Mr. Morton clarified that as part of the annual operating budget, if there was capital that was needed, it may go into a loan if there were not profits to pay for that. The investment into the arena would supersede any profit percentage. He noted that there were outstanding capital loans today and they would be paid along the way. Council Member Faessel asked how close the City has come to obtaining some of the profit sharing and Mr. Morton advised that the profit point has been reached several times. He also City Council Minutes of November 20, 2018 Page 18 of 27 advised that there was a $4 million loan to purchase which was retiring and will make the profits more attainable. He also advised the larger goal is to keep the arena NBA ready. Council Member Faessel asked for projections, based upon the operating agreement, of the expectation of profit with the next five years. Mr. Morton advised that he expects more investment into the arena than the City receiving the actual profit split. Council Member Faessel further asked if the parking agreements for properties south of Katella will stay in place and Mr. Morton noted that they will not change. Mayor Pro Tem Moreno supported the agreement and felt it brings cash into the City for other needed services such as homeless shelters. He asked staff for clarification on what leverage the City would have in terms of affordable housing, employment opportunities, and ensuring the public good was consistently served moving forward. Mr. Morton replied that there was no development contemplated today and that City Council would have many opportunities to discuss what happens with that land well into the future. He was concerned about lending his support, given that he authored the Sunshine ordinance, to an agreement which has only been before the public for three weeks. Council Member Murray acknowledged that this was an extraordinary agreement for Anaheim and thanked the Anaheim Ducks for stepping forward to help manage ARTIC and realize the future of ARTIC and the Platinum Triangle for residents and those who visit Anaheim. MOTION: Mayor Tait moved to approve Item No. 35, seconded by Council Member Kring. ROLL CALL VOTE: AYES — 6: (Mayor Tait and Council Members Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 1. (Mayor Pro Tem Moreno). Motion carried. 36. Consider directing staff to prepare an appraisal of the Angel Stadium of Anaheim site. D124 DISCUSSION: Mayor Tait advised that four years ago an appraisal of the Angels Stadium came in at $200 and $300 million dollars, but that included an encumbrance of the lease on top of it, thereby diminishing value because of the limitation of selling the property to other parties. Mayor Tait felt the City needed to know these figures for future negotiations. Council Member Faessel advised that in recent communication with residents they spoke unanimously that the City not give up the Angels organization. He also asked, that if approved, staff obtain an appraisal with the encumbrance and without the encumbrance. Council Member Faessel asked Convention, Sports & Entertainment Executive Director Tom Morton to clarify what was done in 2014 and he explained that there were several appraisals completed to cover every situation. Council Member Faessel asked for a similar appraisal based on what happened in 2014 to obtain as much financial information as possible. Mayor Tait asked for the appraisal to be completed in the state that it is in which is with the lease ending in a year. Council Member Murray disagreed with this item. She advised that the Angels have tremendous benefit to the City and failed to see why an appraisal would be completed when negotiations were about to begin in good faith. She further advised that Angels Baseball had not expressed interest in leaving Anaheim. She felt it was important for the future City Council to be able to City Council Minutes of November 20, 2018 Page 19 of 27 negotiate in good faith with the Angels and with residents to come together as a community. Council Member Murray asked that a vote be tabled as she saw no purpose for the appraisal. Mayor Tait advised that the Honda Center was appraised with the existing encumbrances and he was simply asking the appraisal be conducted with a terminated lease. Council Member Vanderbilt asked if the Grove area was included in the appraisal and Mr. Morton advised that it was included. Council Member Kring agreed that the Angels' move was not a political move and was strictly a business decision. She felt that if an appraisal was requested, the Angels will not think the City is willing to negotiate. Mayor Tait disagreed and believed that since this as the largest real estate asset owned by the City, an appraisal needed to be completed. Mayor Pro Tem Moreno supported the item and believed that it would allow the City to understand all of its options. He believed it was a bad idea to negotiate without knowing the current appraised value of the property. He also noted that Council Member Murray stated, in her press release, that the Angels have opted out of their lease with the City of Anaheim, opening the door to the possibility that the team may move to a different host city in the southland. He does not see the impact of ordering an appraisal. Mayor Tait advised that he was simply looking to provide for the future City Council in order to make informed decisions. Council Member Faessel understood Council Member Murray's and Council Member Kring's position, but did not see how the appraisal sends a negative message to the Angels organization. He believed that it sends a powerful message to the Angels that the City was not simply sitting back and expecting a deal. Mayor Tait stated that he was simply asking for the appraisal to be updated based on the new facts. Council Member Barnes asked for clarification for the parking encumbrances and Mr. Morton advised that it goes to the Angels organization with a profit split at the end, but the money goes into the overall operation of the stadium. She would be comfortable with requesting an overall stadium assessment. Council Member Kring advised that several years ago the City and the Angels organization were negotiating and were very close to having a negotiated deal and would like to see that happen again. She would like to see the appraisal happen after the negotiating was completed. Mayor Tait felt that the appraisal was a key tool for negotiating the property. Council Member Murray asked why a full appraisal was not completed at the Honda Center. She wanted City Council to be consistent across the board and she felt that requesting an appraisal sends a message to the Angels to leave Anaheim. Additionally, she believed that this item should be tabled for the next City Council to negotiate. C410 C280 City Council Minutes of November 20, 2018 Page 20 of 27 Mayor Tait recessed the City Council meeting at 9:54 P.M. and reconvened at 10:02 P.M. Council Member Murray rejoined the meeting via teleconference at 10:04 P.M. Council Member Faessel asked City Manager Chris Zapata for his position on the appraisal of the property. In response, Mr. Zapata stated he agreed an appraisal needed to be conducted but that the form and fashion of the appraisal should be left to the direction of the next City Council. In response, Mayor Tait stated that he simply wanted an appraisal of the property. Mayor Pro Tem Moreno did not see an issue with starting the appraisal process at this time. He believed that the Angels put the City in this position and would like staff to start working on that process. Council Member Murray restated that this City Council never asked for an appraisal on the Honda Center or ARTIC property and requested the City Council delay action on this item. Council Member Faessel asked Mayor Tait if he would agree to ask staff to update the appraisal of four years ago and Mayor Tait reiterated his position that he would like an appraisal conducted. Council Member Murray asked Mr. Morton if this appraisal would be completed with or without encumbrances. He advised that the Honda Center appraisals were not completed with encumbrances and that encumbrance deducts were detailed in the appraisal. He further advised that two premises in the appraisal were with the team staying and with the team going. Council Member Murray inquired if a like appraisal was completed for the Honda Center and the ARTIC property. Mr. Morton advised that an appraisal was not completed and explained that a preliminary appraisal was completed on ARTIC with a lease -hold including encumbrances. MOTION: Mayor Tait moved to direct staff to prepare an appraisal of the Angel Stadium, as is, at current market value and make available to both the public and Council, seconded by Council Member Barnes. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members Moreno, Vanderbilt, Barnes, and Faessel). NOES — 2: (Council Members Murray and Kring). Motion carried. At 10:27 P.M., Council Member Murray left the meeting. PUBLIC HEARINGS: 37. MITIGATED NEGATIVE DECLARATION GENERAL PLAN AMENDMENT NO. 2017-00518 RECLASSIFICATION NO. 2018-00314 CONDITIONAL USE PERMIT NO. 2017-05951 TENTATIVE TRACT MAP NO. 18152 (DEV2017-00094) LOCATION: 3534-3538 West Savanna Street OWNER: Ronald Lacher, 1201 North Tustin Avenue, Anaheim, CA 92807 APPLICANT: Chris Segesman, Bonanni Development, 5500 Bolsa Avenue, Suite 120, Huntington Beach, CA 92649 REQUEST: To approve the following land use entitlements: (i) amend the General Plan land use designation from Low -Medium Density Residential to Mid Density Residential; City Council Minutes of November 20, 2018 Page 21 of 27 (ii) a Zoning Reclassification from the RM -4 (Multiple -Family Residential) to the RM -3.5 (Multiple -Family Residential) zone; (iii) a Conditional Use Permit to permit the construction of 19 attached single-family residential units with modified development standards; and (iv) a Tentative Tract Map to establish a 1 -lot, 19 -unit condominium subdivision. ENVIRONMENTAL DETERMINATION: The City Council will consider whether a Mitigated Negative Declaration is the appropriate environmental documentation for this request under the California Environmental Quality Act. ACTION TAKEN BY THE PLANNING COMMISSION: Approved and recommended City Council approval of the following: Mitigated Negative Declaration (Resolution No. PC2018-048); General Plan Amendment No. 2017-00518 (Resolution No. PC2018-049); Reclassification No.2018-00314 (Resolution No. PC2018- 050); Conditional Use Permit No. 2017-05951 (Resolution No. 2018-051); Tentative Tract Map No. 18152 (Resolution No. 2018-052) with an added condition of approval to Conditional Use Permit, to require translucent windows be installed and maintained on (i) the third floor of the east elevations of Buildings B, C, D, and E, and all floors on the north elevation of Building C, and south elevation of Units 15 and 16 in Building D, at all times. Vote: 6-0 (Chairperson Carbajal and Commissioners Armstrong, Dalati, Gillespie, Lieberman and White voted yes. Commissioner Keys, absent.) (Planning Commission meeting of October 15, 2018). RESOLUTION NO. 2018-140 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM to adopt a Mitigated Negative Declaration for proposed General Plan Amendment No. 2017-00518, Reclassification No. 2018-00314, Conditional Use Permit No. 2017-05951, and Tentative Tract Map No. 18152. RESOLUTION NO. 2018-141 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the General Plan of the City of Anaheim (General Plan Amendment No. 2017-00512; DEV2017-00094) (3534-3538 West Savanna Street). RESOLUTION NO. 2018-142 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting proposed Conditional Use Permit No. 2017- 05951 (DEV2017-00094; 3534-3538 West Savanna Street). RESOLUTION NO. 2018-143 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 18152 (DEV2017-00094; 3534- 3538 West Savanna Street). ORDINANCE NO. 6452 (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. 2018-00314; DEV2017-00094) At 10:27 P.M., Planning and Building Director David Belmer along with Principal Planner David See and Associate Planner Nick Taylor presented the staff report with Mr. Taylor advising that this request was for a general plan amendment, a zoning reclassification, a conditional use permit, and a tentative tract map to construct a 19 -unit, attached single-family residential project. Mr. Taylor advised that the 7.8 acre property, located on Savanna Street, consists of two parcels located in the RM -4 (Multiple -Family Residential) zone and was developed with two (2) single family homes. The applicant proposes to demolish the two single-family homes and construct 19 City Council Minutes of November 20, 2018 Page 22 of 27 attached single-family residences using the RM -3.5 (Multiple -Family Residential) zone. He reported that the project would consist of five, 3 -story buildings (approximately 37 feet high) with two to six units per building. All units would have two bedrooms with 2.5 baths, 1,268 to 1,272 square feet of living area, and each unit would be three levels with garages. He further reported that a total of 38 garage spaces and seven open guest spaces were proposed, for a total of 45 on-site parking spaces; two more than the minimum number of Code -required spaces. Mr. Taylor reported that the applicant would be required to improve the right-of-way along Savanna Street with an eight -foot parkway and a four -foot sidewalk. A tentative tract map was proposed to create a 1 -lot condominium subdivision for the 19 "airspace" condominium units. The homes would have Spanish -style architecture with stucco walls, a stone veneer band along the base of the buildings, tile roof, and balconies with wrought iron railings. The project requires City Council approval of an amendment to the General Plan to change the land use designation from Low -Medium Density to Mid Density Residential. The current Low -Medium Density Residential designation allows up to 18 dwelling units per acre and the proposed Mid Density Residential designation would allow up to 27 dwelling units per acre. The proposed project would have a density of 24.3 dwelling units per acre. The Mid Density designation was adopted by the City Council this year and this was the first project seeking with this designation seeking approval. Mr. Taylor reported that the project included a General Plan Amendment to the Mid Density Residential land use designation as described previously, and the implementing zone would be Multiple -Family Residential "RM -3.5." He further reported that the applicant proposes to reclassify the property and that staff and the Planning Commission recommend approval of this request because the proposed RM -3.5 zone would comply with the proposed Mid Density Residential land use designation. An Initial Study in support of a Mitigated Negative Declaration (IS/MND) was prepared to evaluate the environmental impacts of the proposed project and to identify necessary mitigation pursuant to the requirements of the California Environmental Quality Act. The IS/MND was circulated to public agencies and interested parties on September 20, 2018, for a 20 -day comment period. No comment letters were received as a result of the public notification. Mr. Taylor advised that neighborhood opposition primarily consisted of concerns with existing impacted street parking and the Planning Commission found that the parking concerns were related to existing development and that the proposed project provided sufficient on-site parking for the proposed use. Staff and the Planning Commission recommend approval of the proposed request. Mr. Belmer stated that he knows that parking is a sensitive issue in Anaheim neighborhoods and they worked with the applicant to add more parking. Council Member Barnes asked the price range of the units and Mr. Belmer advised that they would likely be marketed to first-time homebuyers, also called attainable housing. Mayor Tait opened the public hearing for comments. Chris Segesman, Bonanni Development, advised that the price point of the units will be in the mid to high $400,000 range. Bryan Kaye addressed the developer and expressed his concerns with the Anaheim Police Department. City Council Minutes of November 20, 2018 Page 23 of 27 With no other comments offered, Mayor Tait closed the public hearing DISCUSSION: Council Member Barnes wanted to know if there was any park area and Mr. Segesman advised that a play area would be constructed on the property. Mayor Pro Tem Moreno asked about affordability and Mr. Belmer noted that they spoke to the developer about affordability and their offer and suggestion was respectfully declined. He advised that there was potential to partner with first time homebuyer money which would be a covenant on their unit in exchange for receiving some down payment assistance. Mr. Segesman advised that with the project is a for -sale product and geared towards first-time home buyer and he felt the price point was an affordable level for a medium income family. He also advised that on a separate project, they have worked with City staff to allocate five units as affordable and those price points are at $422,000. With this project, with the same exact floor plan, the sale price is almost at the same price point and he felt that made it affordable. Mr. Belmer advised that they did not feel they had a legal basis to require affordable housing. Mayor Pro Tem Moreno responded that the City desperately needs housing at the lower income range and asked if Mr. Segesman believed that the price -point that they were giving as in the affordability range. He welcomed continued conversations with staff. Mayor Tait shared Mayor Pro Tem Moreno's concern that the City has a severe affordability problem and asked Mayor Pro Tem Moreno to consider that this price point as as close to affordable as the developer can get. Mayor Pro Tem Moreno asked if there were any incentive programs that the developer would consider. Mr. Belmer advised that he spoke to Community & Economic Development Director John Woodhead about down -payment assistance which does come with some strings and potential difficulty at reselling the property. He also stated that this was not the first project that was representative of the resolution adopted by City Council. When developers come in now, they are notified of the resolution. Mr. Segesman advised that they do not have any incentive programs, but they would be open to having those conversations. Mayor Tait suggested that it might be something as simple as a pre- opening for local residents to bid on properties. Council Member Kring stated that this was a very attractive project and did not feel it was fair to force the developer to submit to the affordable housing plan. In response to Council Member Barnes, Mr. Belmer advised that there was no permit parking in this area. MOTION: Council Member Kring moved to approve Item No. 37, seconded by Council Member Barnes. ROLL CALL VOTE: AYES — 6: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, Faessel). NOES — 0: ABSENT — 1 (Council Member Murray). Motion carried. City Council Minutes of November 20, 2018 Page 24 of 27 38. ENVIRONMENTAL IMPACT REPORT NO. 2017-00350 MITIGATION MONITORING PROGRAM NO. 342 AND THE BEACH BOULEVARD C420 WATER SUPPLY ASSESSMENT GENERAL PLAN AMENDMENT NO. 2015-00500 SPECIFIC PLAN AMENDMENT NO. 2017-00001 ZONING CODE AMENDMENT NO. 2017-00137 RECLASSIFICATION NO. 2017-00304 (DEV2015-00014) LOCATION: The Beach Boulevard Specific Plan (Project Area) encompasses approximately 283 acres along an approximately 1.5 -mile portion of Beach Boulevard/State Route 39 (SR -39) in the City of Anaheim. The segment of Beach Boulevard within the Project Area borders the City of Buena Park to the north and the City of Stanton to the south. Major cross streets along the corridor within the City limits include Ball Road, Orange Avenue, and Lincoln Avenue. PROJECT: The Beach Boulevard Specific Plan (BBSP) Project would establish a new specific plan to guide future development within the Project Area. The BBSP Project would regulate the potential development of up to an additional 907,321 square feet of non-residential building area and 3,651 residential units within the Project Area. Approval of the BBSP Project includes approval of the following requests: General Plan Amendment No. 2015-00500 to amend the General Plan Land Use Element to be consistent with the BBSP; Specific Plan No. 2017-00001 to adopt the BBSP; Zoning Code Amendment No. 2017-00137 to adopt Chapter 18.122 (Beach Boulevard Specific Plan (SP2017-1) Zoning and Development Standards); Reclassification No. 2017-00304 to apply the zoning and development standards of the proposed new Chapter 18.122 to properties within the Project Area. ENVIRONMENTAL DETERMINATION: Environmental Impact Report No. 2017-00350 analyzes the environmental effects of the Draft BBSP to the degree of specificity required by Section 15146 of the State CEQA Guidelines. Significant effects on the environment anticipated because of implementation of this project include air quality, greenhouse gas emissions, and transportation and traffic. The City circulated the draft environmental impact report for a 45 -day public review period, which concluded on October 8, 2018. The proposed certification of EIR No. 350 includes adoption of a Findings of Fact, Statement of Overriding Considerations, Mitigation Monitoring Program No. 342 and a Water Supply Assessment. ACTION TAKEN BY THE PLANNING COMMISSION: Approved and recommended City Council approval of the following: Environmental Impact Report No. 2017-00350 (PC2018-056), including the adoption of a Statement of Overriding Considerations, Mitigation Monitoring Program No. 342 and the Beach Boulevard Specific Plan Water Supply Assessment; General Plan Amendment No.2015-00500 (PC2018-057); Specific Plan Amendment No. 2017-00001 (PC2018-058); Zoning Code Amendment No. 2017- 00137 (PC2018-059); and Reclassification No. 2017-00304 (PC2018-060). (VOTE: 7-0; Chairman Dalati and Commissioners Armstrong, Carbajal, Gillespie, Keys, Lieberman and White voted yes) (Planning Commission meeting of October 29, 2018). RESOLUTION NO. 2018-144 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM certifying Final Environmental Impact Report No. 2017-00350 and adopting findings of fact, a statement of overriding considerations, Mitigation Monitoring Program No. 342 and a water supply assessment for the Beach Boulevard Specific Plan and related actions. City Council Minutes of November 20, 2018 Page 25 of 27 RESOLUTION NO. 2018-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting General Plan Amendment No. 2015-00500 for the Beach Boulevard Specific Plan (General Plan Amendment No. 2015-00500; DEV2015-00014). RESOLUTION NO. 2018-146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting Beach Boulevard Specific Plan (SPN2017- 00001; DEV2015-00014). ORDINANCE NO. 6453 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding new Chapter 18.122 (Beach Boulevard Specific Plan No. 2017-01 (SP2017-01) Zoning and Development Standards) to Title 18 (Zoning) of the Anaheim Municipal Code. ORDINANCE NO. 6454 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. 2017-00304; DEV2015-00014). Planning and Building Director David Belmer along with Senior Planner Gustavo Gonzalez and Principal Planner Susan Kim presented the staff report with Mr. Belmer providing an overview of the Beach Boulevard Specific Plan and advising that a tremendous amount of community outreach efforts have been conducted. He discussed the vision statement and advised that the plan needs to allow for a safe and attractive area and there needs to be a sense of community along with being a desirable place to live, work, and socialize. Mr. Belmer presented the Proposed Development Areas and highlighted areas with significant change. He advised that the plan calls for ensuring quality projects including supporting desirable uses, prohibiting undesirable uses, and providing development and design standards. He further advised that the team was trying to create excitement with the plan and presented renderings to City Council. He advised that the project components before the City Council tonight included the Environmental Impact Report, Beach Boulevard Specific Plan, and amendments to the General Plan, Zoning Code, and Zoning Map. He thanked City Council, the community, members of the CAC, and the multiple departments that have helped with the project along the way. Mayor Tait opened the public hearing for comments. Bryan Kaye spoke about his interactions with the Anaheim Police Department. With no other comments offered, Mayor Tait closed the public hearing. DISCUSSION: Council Member Faessel commended staff for the community outreach plan on this project. He asked Community Services Director Larry Pasco what could be expected in terms of park improvements. Mr. Pasco advised that developers would be required to pay park development fees and those fees would be used for upgrading existing parks, purchasing land to build new parks, and any amenities that go into the parks. He advised that the fees cannot be used for maintenance. He further advised that the BBSP has projected park fees of $10 million. Council Member Barnes thanked Mr. Belmer and staff for all their hard work on the project and was happy that the project will move slowly and meticulously to ensure the safety of the community. City Council Minutes of November 20, 2018 Page 26 of 27 Council Member Kring asked about Motel Row and how would those motels get down to replace them with housing. Mr. Belmer did not believe that it was going to be easy, but they conducted a developer round table to talk about what it would take to incentivize developers through private initiatives to develop a meaningful housing project. He advised that some developers were interested, and he was cautiously optimistic that change can happen. Mayor Pro Tem Moreno asked how staff intends to benchmark gentrification as some families who live in the community are going to be priced out of the area. Mr. Belmer advised that there was no plan for the displacement of any existing housing in the plan and that in discussion with the residents who spoke during public comments, found that they misunderstood the project plan. MOTION: Council Member Barnes moved to approve Item No. 38, seconded by Council Member Kring. ROLL CALL VOTE: AYES — 6: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, Faessel). NOES — 0. ABSENT — 1: (Council Member Murray). Motion carried. COUNCIL COMMUNICATION/AGENDA REQUESTS: Council Member Kring wished everyone a Happy Thanksgiving. Mayor Pro Tem Moreno wished all a great holiday and acknowledged those who came and spoke about the Mayor. He requested a workshop or agenda item on December 18" or in January to review the Sunshine Ordinance and Lobbyist Registration Ordinance, with specific focus on the revolving door policy and conflicts of interest. Council Member Barnes announced the free Thanksgiving dinner event at the Honda Center on November 22nd, the West Anaheim Magic Christmas Tree Lighting event at Twila Reid Park on December 1St, and reported the Red Cross was still in need of blood donations. She thanked the mayor for his service and kindness. Council Member Vanderbilt reported the IBEW Day of Service last Saturday where they worked on the ABC (Alameda/Brownwood/Catalina) clubhouse and invited his colleagues to its opening by the end of the year. Council Member Faessel expressed his thoughts about the new homeless shelter proposed in District 5, addressed the issues of the homeless in the parks, and commended Illumination Foundation for their efforts in serving as a pipeline to permanent, supportive housing. He requested inclusion of business owners, as stakeholders, in an Advisory Committee regarding Bridges at Kraemer and the new shelter. He announced the upcoming openings of Brewheim and Brewery X, thanked the community and the Police Department for their efforts in catching a thief in District 5, and reported his attendance at the Katella High School Boys Basketball banquet, a Community & Economic Development Department tour of State College Blvd., and the Christmas tree lighting at the Anaheim Lighthouse. He closed with a Thanksgiving message for his colleagues, staff, friends, and neighbors. Mayor Tait commended the great business conducted this evening which included homeless shelters, the Honda Center plans, and the Beach Blvd. Specific Plan, adding he looked forward to good changes in the future as a result of these decisions. He wished all a Happy Thanksgiving and announced Nathan Bush playing cello at the Creative Identity concert on December 111 City Council Minutes of November 20, 2018 Page 27 of 27 ADJOURNMENT: With no further business before the City Council and without objection, Mayor Tait adjourned the meeting of November 20, 2018 at 12:01 A.M. on November 21, 2018 to December 4, 2018 at 3:00 P.M. for purposes of certifying the election results of the November 6, 2018 general municipal election (City Council Chambers) with the Oath of Office ceremony to be administered on December 4, 2018 at 5:00 P.M., or shortly thereafter, at The River Arena located at 201 E. Broadway, Anaheim. Respectfully submitted, eresa B ss, CMC City Cler