ANAHEIM CITY COUNCIL SPECIAL AND REGULAR MEETING OF JUNE 4, 2019

TELECONFERENCE NOTICE

Pursuant to Government Code Section 54953, Subdivision (b), this special and regular meeting will include teleconference participation by Council Member Jose F. Moreno from: University of Vermont, 590 Main Street, Burlington, VT 05405 with the room location posted in the main lobby of the building.

This Notice and Agenda was posted at the teleconference location. Public comment on the agenda from this address was allowed pursuant to Government Code Section 54954.3. The special of June 4, 2019 was called to order at 2:04 P.M. in the chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on May 30, 2019.

PRESENT: Mayor Harry Sidhu and Council Members Lucille Kring, Denise Barnes, Jordan Brandman, Stephen Faessel, and Trevor O’Neil.

ABSENT: Council Member Jose Moreno (did not participate in the meeting via teleconference)

STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk Theresa Bass

ADDITIONS\DELETIONS TO CLOSED SESSION:

City Attorney Robert Fabela reported Closed Session Item No. 1 related to threats of litigation arising out of the city’s regulation of short-term rentals (STRs), further noting that he recused himself from this item and would not participate in its discussion.

PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None

CLOSED SESSION: At 2:06 P.M., Mayor Sidhu recessed to closed session for consideration of the following items:

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of the California Government Code Section 54956.9: One potential case

2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: City of Anaheim v. Accumax Holdings, Inc. (dba Ritter’s Steam Kettle Cooking/The Oyster Bar), et al., Case No. 30-2019-01056579-CU-UD-CJC

3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Teresa Perkins, et al. v. City of Anaheim, et al., USDC Case No. 8:19-cv- 00315-JLS-JDE City Council Minutes of June 4, 2019 Page 2 of 42

4. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Linda Andal, Human Resources Director and Angel Ho, Employee Relations Manager Name of Employee Organizations: Anaheim Firefighters Association, International Brotherhood of Electrical Workers Management, Anaheim Municipal Employees Association - General and Clerical, and Anaheim Police Association.

At 3:19 P.M., the City Council reconvened and adjourned the special meeting of the Anaheim City Council.

At 3:19 P.M., Mayor Sidhu called to order the regular meeting of the Anaheim City Council.

WORKSHOP:

Proposed Fiscal Year 2019/20 budget (Citywide Overview, Administrative Departments, Police, Fire & Rescue, and Community Services).

City Manager Chris Zapata advised this workshop was the third in the budget series and would cover the Police, Fire and Rescue, and Community Services Departments. He reported the final workshop would be held on June 18, 2019, with the remaining operating departments being presented.

Mr. Zapata reported that $215 million in the Capital Improvement Program (CIP) would be invested in community infrastructure and noted Anaheim would be one of a few California cities that will be able to balance its budget without cutting services or raising taxes.

Citywide Overview/Administrative Departments

Finance Director/City Treasurer Debbie Moreno introduced the budget team and presented a citywide overview of the budget and budget information for the administrative departments. She reported the U.S. economy was in its tenth year of expansion and no recession was expected in the near future. She advised the Orange County economy remained remarkably strong over the last five years and would continue to see healthy gains, especially with the opening of Galaxy’s Edge at Disneyland.

Ms. Moreno reported the FY 2019/20 Proposed Budget is $2 billion and the General Fund comprised 23% of the budget. She advised the General Fund would be the focus of the presentation as this was where a majority of the discretionary funds were located and was used to fund Anaheim’s core services. Lastly, she advised the remaining budget funds were restricted for specific purposes, such as the Enterprise Funds.

Ms. Moreno briefly recapped the proposed CIP and advised there were very few changes after it was originally presented in March 2019. She noted that funds often come from various restricted sources which include grants, gas taxes, development impact fees, and bond proceeds. The proposed CIP is $215 million and divided between transportation improvements, electric systems, water systems, wastewater, downtown projects, municipal facilities, commercial entertainment venues, and recreation, parks and libraries. City Council Minutes of June 4, 2019 Page 3 of 42

Ms. Moreno advised the General Fund represents 23% of the total Proposed Budget at $446 million and is home to many of the discretionary funds for core services. She advised the largest revenues are Transient Occupancy Tax (TOT), Sales and Use Taxes, and Property Taxes which make up nearly 80% of the General Fund sources. She reported Transient Occupancy Tax was the largest source, at almost 40% of the total.

Ms. Moreno advised that TOT is the largest revenue source in the General Fund and tourism remained strong within Orange County and Anaheim. The proposed TOT budget is $174.2 million, a 6% increase over the current year, and seven new hotels are included in the projection, all expected to open by 2021. She reported that Anaheim hotel occupancy averages for Tier 1 hotels around 85%, approximately 20% over the national average, and that the Average Daily Rate (ADR) is expected to grow 5% per year for the next several years.

Ms. Moreno presented Sales and Use Tax projections and noted a slight decrease due to decreases in new and used auto sales and a weakening in construction but growth was expected for next year. The proposed budget for Sales and Use Tax is $89 million, an increase of nearly 7% of current year projection. She also reported the opening of Galaxy’s Edge at Disneyland will increase sales tax revenues.

Ms. Moreno presented Property Taxes and noted a 6% increase from the current year projection, growing to $81.8 million in the proposed budget, and reflected increases in Anaheim’s assessed valuation due to increase construction and changes in ownership.

She highlighted the projected increases in all three tax sources, with the largest increases in TOT. Additionally, this budget is projecting new revenue of $25 million.

Ms. Moreno advised the current growth in revenue may be subject to Lease Payment Measurement Revenues (LPMR) and presented the breakdown of LPMR calculations for a total of $71.7 million. She noted that in January 2019, City Council authorized the refunding of the Resort’s callable bonds which were estimated to generate $20 million in net present value savings. However, the savings were currently estimated at $40 million and, with conservative growth of 3% annually, the bonds could be paid off as early as 2027 or 2028.

Ms. Moreno presented the Resort Financial Impact and advised that $163 million of TOT is generated by the Resort hotels, $20 million of Sales Tax comes from businesses within the Resort area, and approximately 17% of Property Tax is generated by the Resort. These tax revenues, along with what Disney pays directly for Police and Fire services, amounts to $209 million in revenue. She noted that Resort and Convention Center debt service of $86 million, public service costs of $24 million, economic development and promotions of $1 million, and general government support of $3 million comprise the expenditures of $114 million. She summarized that the Resort provides a positive financial impact to Anaheim with a surplus of $95 million, which is 27% of the General Fung ongoing expenditure budget to provide core services.

Ms. Moreno reported that financial uses of the General Fund include services, economic development, debt service, and capital outlay with the largest portion going towards services, nearly 80%. She reported that services include labor, personnel costs and all other operating expenses. She compared the total operating sources to the total operating uses and noted there is an operating surplus of $2.4 million along with ending reserves of $43.3 million. City Council Minutes of June 4, 2019 Page 4 of 42

Ms. Moreno presented the breakdown by functions of the General Fund and the proposed five- year forecast of a structurally balanced budget. She noted the forecast included a new fire station in the Platinum Triangle and staffing for the station, but did not include any salary increases beyond what is in the current MOUs. She noted the ending reserves for this year were estimated at 12% of ongoing expenditures, with the forecast keeping within the adopted policy of 7-10% in reserves.

She reviewed the proposed budget for the Administrative Departments which consist of the City Council, City Administration, City Attorney, City Clerk, Finance, and Human Resources Departments and makes up 25% of the General Fund uses. The net impact to the General Fund is reduced by charges to Enterprise Funds.

Mayor Sidhu thanked Ms. Moreno for presenting a balanced budget. In response to Mayor Sidhu’s inquiry, Ms. Moreno advised that Anaheim would see approximately $85 and $105 million of revenue annually for General Fund use, available after the bond repayment is completed. Mayor Sidhu questioned the upcoming labor negotiations and what impact increased salaries could have, to which Ms. Moreno responded such increases were not included in the budget.

In response to Mayor Sidhu’s inquiry, Ms. Moreno advised that grant money was received to assist with homeless shelter operations but may not be available moving forward and those expenditures would be a draw on the balance.

In response to Council Member Faessel’s inquiries, Ms. Moreno clarified that Average Daily Rate (ADR) is the average cost for a hotel room in Anaheim and she expected that rate to increase by 5% per year. She advised that the total Net Surplus has grown significantly over the last few years from roughly $60 million to $94 million. She also advised that any remaining surplus, or at least 25% of that amount, would go into a Neighborhood Improvement Fund which has a current balance of $4 million.

Council Member Trevor O’Neil thanked the Finance team for presenting a balanced budget and commended staff for their hard work. He further hoped the bonds could be paid off even sooner.

Council Member Brandman conveyed a priority list on behalf of Council Member Moreno, in his absence, which included: the rehabilitation and renovation of the Willdan Building to house cultural and performing arts non-profits, gap funding to complete the Downtown Community Center Park, funding for the Northgate Academic Learning Center for tenant improvements, funding for Youth, Senior and Cultural and Heritage Commissions, funding for a stand-alone Senior Center in District 3, funding to convert empty lots too small for Community Development to community amenities such as dog parks, community gardens, etc., funding to improve staffing ratios across all departments with special note to Community Services, increased funding for Public Works Speed Mitigation Petitions, and to explore rental assistance down payment for renters or first-time homebuyers.

Anaheim Police Department

Police Chief Jorge Cisneros presented the Anaheim Police Department’s (APD) Proposed Budget which accounts for 9% of the total Proposed Citywide Budget. He reported that an additional amount of $1.6 million consists of the Federal Urban Area Security Initiative (UASI) Grant, which will be used to cover the urban areas of Santa Ana and Anaheim. City Council Minutes of June 4, 2019 Page 5 of 42

Chief Cisneros reported the APD’s proposed operating budget is 34% of the General Fund and noted APD is largely supported by the General Fund, restricted grants, restricted forfeiture funds, and user fees. He reported that Anaheim has one of the lowest crime rates in comparable cities of its size with its holistic approach to crime reduction as part of its core mission.

Chief Cisneros advised APD has identified key priorities including community engagement, transparency, collaboration with fellow departments and agencies, and the training and professional development of its workforce to meet the ever-increasing challenges of policing. He outlined the five divisions that comprise APD which include Division of Administration, Operations, Operations Support, Investigations, and Support Services and noted that personnel costs represent 85% of the budget, with the remaining 15% going towards other operating expenses.

Chief Cisneros reported APD recently reorganized its structure, analyzing all units and positions, identified vacant positions, and is taking the opportunity to reprioritize resources in alignment with its core mission. He reported that, in response to an unprecedented wave of retirements, APD intends to leverage one-time funding to hire 15 officers over the allocated positions.

Chief Cisneros reported that the Communication Center processes over 500,000 calls for service, with APD responding to an average of 200,000 calls annually. He noted that 30% of those calls were officer-initiated, proactive police work.

Chief Cisneros reported that part of the reorganization includes a consolidation of the Special Enforcement Division into the Investigations Division and the expansion of the Major Narcotics Enforcement to maintain a partnership with the Federal Drug Enforcement Administration with a mission of reducing the negative impacts of narcotics on the lives of Anaheim residents.

Chief Cisneros reported that, with the passage of Senate Bill 1421 and Assembly Bill 748, there is a statutory burden placed on all law enforcement agencies, including APD, for the production and release of specific administrative investigations including body-worn camera footage, audio recordings, photographs, and written documents. As a result, APD has established a Data Release Unit to address the anticipated need for these requests and will be responsible for the production of video messages that will be released to all used social media platforms.

Chief Cisneros reported the Psychiatric Emergency Response Team (PERT) has been expanded through an additional clinician to ensure that the homeless are receiving needed services. He reported that no additional funding was received for this position and APD is currently using overtime for this purpose which is unbudgeted and impacting service delivery in other areas. He noted the number of incidents responded to will only increase going forward.

Chief Cisneros reported the creation of a Community Engagement Detail to exceed the organization goal of greater engagement with the Anaheim community. He noted APD hosted 206 community meetings in 2018 and projected over 300 community meetings in 2019.

Chief Cisneros reported that APD is currently reviewing the patrol deployment plan to determine if the patrol assignments meet the needs of the call log and if patrols can be increased along with patrol deployments and training for officers. He reported a Real-Time Crime Center is being developed to disseminate real-time information for situational awareness and is mapped to the Smart City Roadmap Initiative. City Council Minutes of June 4, 2019 Page 6 of 42

In response to Mayor Sidhu’s inquiries, Chief Cisneros advised that APD is currently budgeted for 405 police officers, with 390 vacancies filled. He also noted that between trainees (who do not patrol) and retirements, there were 360 sworn personnel in the field at any given time. He also advised that APD was the first municipality in Orange County to employ body cameras for police officers, but is not the only agency with body cameras. He also reported that APD has three (3) helicopters and a fixed-wing plane to assist with air patrols. Mayor Sidhu thanked Chief Cisneros for APD’s protection of Anaheim.

In response to Council Member Faessel’s inquiry, Chief Cisneros advised that the re-hiring of 15 retired officers will allow APD to bridge the gap during the higher than expected retirements this year which will help keep Anaheim safe while new officers are being hired and trained and will help keep response times low. He also noted that the retired officers have a great knowledge of the community and understand policies and procedures, but the overall goal is to hire officers who will serve the community for a long time.

In response to Council Member Faessel’s inquiry, Chief Cisneros advised that when a second clinician became available from Orange County, APD could not turn the position away because of the overwhelming benefit to the community. He advised that the two positions that accompany the clinician are being covered with overtime funds and those positions are currently being reviewed.

In response to Council Member Faessel’s inquiry, Chief Cisneros advised that Deploy is an IT program that assists APD to efficiently deploy APD resources to the City and leverage date already in the department’s possession.

Council Member Barnes expressed her support for an additional clinician for the PERT team. In response to Council Member Barnes’ inquiry, Chief Cisneros advised that Anaheim is part of the Orange County Human Trafficking Taskforce and works collaboratively to make sure that victims receive the help they need. He also advised there is an agreement with Drug-Free Anaheim to serve residents who want assistance from addiction to opioids and that staff receives 72 hours of training for dealing with addicted residents.

Anaheim Fire & Rescue

Interim Fire Chief Pat Russell presented the Proposed Budget for Anaheim Fire & Rescue (AF&R) and advised that the Proposed Budget is $98 million, which is 5% of the total city budget. He advised that $82.5 million, or 19% of the General Fund, comes from the General Fund. The $15.5 million surplus represents two Joint Powers Authority (JPA), CIP projects, and grants.

Interim Chief Russell reported that labor represents 75% of the General Fund budget, which supports 209 sworn personnel and 35 civilian staff members. The remaining 32 positions are funded by Dispatch and Training JPAs.

Interim Chief Russell advised the mission of AF&R is to ensure the safety and welfare of the public served through the core services provided which include Fire Suppression, Emergency Medical Service (EMS), Community Risk Reduction, Support Services, and Emergency Management and Preparedness. He advised AF&R also has a Type 1 Urban Search and Rescue (USAR) Team and a Type 1 Hazardous Materials (HAZMAT) Unit which are also part of the Orange County regional response team. City Council Minutes of June 4, 2019 Page 7 of 42

Interim Chief Russell reported that AF&R achieved International Accreditation status in 2014 and an ISO Class 1 rating in 2016 which means lower insurance rates for Anaheim businesses and was renewed in 2019. He noted that less than 100 cities in the United States hold both accreditations.

Interim Chief Russell reported the majority of the personnel expenditures in the Operations Division are responses to over 38,000 calls, of which over 32,000 are medical emergencies. He noted the Community Risk Reduction Division is home to the majority of the civilian staff and includes the Fire Marshal, Community Risk Reduction Officers, and Community Engagement Support Staff.

Interim Chief Russell reported the Support Services Division provides equipment for operations and coordinates with Public Works to maintain and repair 11 fire stations and 57 fire trucks and support vehicles.

Interim Chief Russell reported that the Emergency Management and Preparedness Division maintains 24/7 operational readiness of AF&R’s Emergency Operations Center (EOC), develops emergency plans, coordinates training exercises, and manages Community Emergency Response Team (CERT) and Radio Amateur Civil Emergency Service (RACES) volunteers.

Interim Chief Russell reported AF&R is changing the way it deploys and bills for EMS services and noted City Council recently approved a contract to partner with Care Ambulance for EMS transports.

Interim Chief Russell reported that Fire Station 5 was relocated in 2018 and the Platinum Triangle Fire Station 12 will be built this within the next two (2) years. He also noted a $1.5 million FEMA grant was received to replace the inventory of aged Cardiac Monitor Defibrillator Units which are used on all medical calls to monitor patients. He noted that two fire trucks, a water tender, and an aerial ladder trucker were purchased. He also advised that a ladder truck will be replaced in December.

Interim Chief Russell reported that Community Engagement Staff and the Community Risk Reduction Staff are visiting public pools and hotels to increase water public safety and reduced risk of drowning. He also reported the CERT team is comprised of 70 volunteers who are trained to assist in large events, such as earthquakes, where emergency assistance may not be available for up to 72 hours. This program will be expanded in the upcoming year to include Spanish-language training.

Interim Chief Russell reported that AF&R manages three JPAs including North Net Training Center, Metro Net Communication Center, and Orange County-City Hazardous Materials Emergency Response Authority (OCCHMERA).

Interim Fire Chief Russell reported that AF&R offers a number of programs that introduce youth and teens to careers within the fire service. He highlighted the Fit Friday Program which allows youth to work as a firefighter. He noted that AF&R partners with APD in the Public Safety Pipeline program to build relationships with middle school students to encourage good behaviors and prepare them to enter fire service careers.

Interim Fire Chief Russell presented the 2019 Firefighter Recruit Academy who graduated in May and is currently deployed to fire stations within Anaheim. City Council Minutes of June 4, 2019 Page 8 of 42

Mayor Sidhu thanked Interim Fire Chief Russell for his work on presenting the Proposed Budget and for his cost-saving efforts.

Mayor Pro Tem Kring expressed support for Water Safety efforts through the YMCA and Anaheim Fire & Rescue. She also expressed support for the EOC and thanked everyone for their hard work during a recent real-world exercise.

Council Member Faessel expressed his support for the Water Watcher kit, noted a drowning death in his family as a child, and expressed his gratitude for being involved in the Public Safety Pipeline.

In response to Council Member Barnes’ inquiry, Interim Chief Russell advised that CERT is funded partially through the budget and partially through an Emergency Assistance Grant from the State. He also noted that a CERT class of 43 recently graduated. Council Member Barnes expressed her support for CERT training in the community. Council Member Barnes suggested the Water Safety program be expanded to motels so that west-side families could participate, as there are no public pools in the area.

Community Services Department

Community Services Director Larry Pasco presented the Community Services Proposed Budget which is $46.5 million of which $3.9 million will be used to fund Capital Projects or other non- operating dollars. He noted the budget makes up 2% of the citywide budget and 8% of the General Fund.

Mr. Pasco advised the Community Services Department is largely supported by the General Fund, restricted grants, user fees, and park development fees. He noted the department has 93 full-time staff and 182 part-time staff.

Mr. Pasco reported the department has four divisions which include Parks & Capital Development, Library, Recreation, Human & Neighborhood Services, and Golf. He reported there are seven (7) branch libraries in Anaheim and one (1) mobile library which serve 1.5 million constituents. He highlighted the new mobile library and a partnership with the school district to assist teen parents. He highlighted the Anaheim Public Library’s recent awards, including the Golden Hub of Innovation Award for Community Investment by the Association of California Cities. He reported the Central Library is creating a Citizenship Corner to create a neutral, trusted space where immigrants and refugees can feel safe and obtain reliable information as part of the City’s “Welcome Anaheim” initiative. He also highlighted the STEAM programs and the Muzeo exhibits.

Mr. Pasco reported that Parks & Facilities offers clean parks, trails, and recreational facilities. He noted that park maintenance is important, along with continuous improvement of existing facilities and the building of new parks. He reported that, in alignment with the Anaheim Parks Plan, the focus in 2020 will be centralized around athletic field and restroom upgrades, ensuring park security, and delivering new and robust amenities. He highlighted the new Logan Wells skate park, a Kaboom! playground at Barton Park, new splash pad and playground at Ponderosa Park, and Anaheim Coves expansion.

Mr. Pasco reported that Anaheim golf courses continue to be a community asset by providing a variety of services, activities, and rounds of golf. He also reported that running events were City Council Minutes of June 4, 2019 Page 9 of 42 being held at the community golf courses. He noted that six (6) high school golf teams also use Anaheim golf courses. He reported the new partnership with First Tee at the Dad Miller Golf Course, providing golf to the youth of the community, and Concert on the Green events.

Mr. Pasco reported that the Recreation, Human, and Neighborhood Services Division provides residents opportunities for personal growth and well-being through many recreational opportunities, such as Concerts in the Park and youth programs. He also noted that recreational programming reaches all ages of participants in parks, community centers, family resource centers, and in neighborhoods. Lastly, he reported that in Fiscal Year 18/19, after-school activities were provided to over 51,000 Anaheim youth and over 10,822 rides were provided through the Senior Wheels Program.

Mr. Pasco reported that Human Services staff strive to create programs and projects that support the safety, stability, and healthy development of Anaheim’s youth and families through community and cultural engagement opportunities such as the annual Family Resource Center Health Fair or the Dia De Los Muertos event.

Mr. Pasco reported that in Fiscal Year 18/19 field space and support was provided to over 58 sports organizations. He noted that Neighborhood Services section is tasked with performing community outreach of all types and connects residents in the City to solve problems and maintain quality of life, particularly though many community events.

Mr. Pasco reported that a thorough analysis of the Park Ranger Program was recently completed in order to make recommendations to make the program more effective and a plan to add more Park Rangers is included in the budget. Park Rangers made over 700,000 public contact last year through patrols and security services.

He reported the Department will continue to expand resources and facilities provided to the community by actively looking for partnerships for joint-use land agreements with other governmental agencies, by seeking grant opportunities such as Proposition 68 grants, by looking for vacant land for new park and recreation opportunities, and lastly, by working with Anaheim First.

Mayor Sidhu thanked Mr. Pasco for his presentation and all the work done by his department on behalf of the community.

Council Member Faessel thanked the Community Services Department staff for their service. He tasked the City Manager to continue to work on amenities in Anaheim parks. He invited residents to attend the opening of the northern expansion of Anaheim Coves on June 6. He expressed his gratitude for the Fun on Wheels program and noted he recently heard how important it is to the community. He encouraged Community Services to continue to lobby for park services and amenities that they feel are important for the residents of Anaheim.

Council Member Barnes expressed her gratitude to the Community Services staff for their hard work and for providing great service to Anaheim residents. In response to Council Member Barnes inquiry, Mr. Pasco advised that when grant funds cannot be secured, park development fees are typically the funding source to complete projects, but those funds are limited in each district. Ms. Moreno also advised that the Neighborhood Improvement Fund contains $4 million but the funding has not been prioritized due to other staff priorities. City Council Minutes of June 4, 2019 Page 10 of 42

In response to Council Member Barnes’ inquiry, Mr. Zapata advised that the $4 million in the Neighborhood Improvement Fund is allocated at the discretion of City Council.

Council Member Brandman thanked the Community Services staff for their hard work, provided background information on work in parks, and offered his support to such efforts.

Mayor Sidhu opened public comments on the workshop.

Mike Robbins suggested that Disney provide more funding for community infrastructure and additional law enforcement in order to decrease response times.

Mark Richard Daniels expressed his support for a public swimming pool in West Anaheim.

William Fitzgerald questioned the City Council’s support of park programming in Anaheim.

Bob Donelson expressed his support for parks and park programming receiving the $4 million from the Neighborhood Improvement Fund. He expressed his concern that the City Council was providing money to special interest groups such as Anaheim First and the Chamber of Commerce.

Larry Rosenberg, Executive Director, Anaheim Ballet expressed his support for Council Member Moreno’s suggestion to renovate the Willdan Building as a possible location for a Cultural Arts Center.

Mayor Sidhu closed the public comments and concluded the workshop.

At 5:15 P.M., Mayor Sidhu recessed the City Council meeting and reconvened at 5:23 P.M.

STAFF PRESENT: City Manager Chris Zapata, Senior Assistant City Attorney Kristin Pelletier, and City Clerk Theresa Bass

INVOCATION: Father Constantine Trumpower, Saint John the Baptist Greek Orthodox Church

FLAG SALUTE: Council Member Stephen Faessel

PRESENTATIONS: Recognizing winners of the Citywide Community Pride Poster Contest

Mayor Sidhu provided a history of the Anaheim Community Pride Poster Contest. Anaheim Beautiful Board President Sandra Sagert announced the winners and presented them with a proclamation.

First Grade – Gisela Soto, Centralia Elementary School, Centralia School District Second Grade – Olivia Parrott, Canyon Rim Elementary School, Orange Unified School District Third Grade – Thimath Peduruarachchinge, Benjamin Franklin Elementary School, Anaheim Elementary School District Fourth Grade – Arabella Kim, Crescent Elementary School, Orange Unified School District Fifth Grade – Andrea Pineda Ruiz, Salk Elementary School, Magnolia School District Sixth Grade – Sofia Canseco, Juliette Low Elementary School, Magnolia School District City Council Minutes of June 4, 2019 Page 11 of 42

Recognizing U.S. Service Academy Appointment Joshua Paul De Guzman

Mayor Sidhu recognized the appointment of Joshua Paul De Guzman to the U.S. Service Academy at West Point. Mr. De Guzman explained the process of applying and being appointed to the U.S. Service Academy. Council Member Brandman recognized the appointment and presented the proclamation to Mr. De Guzman.

Recognizing American Coaster Enthusiasts

Mayor Sidhu explained the history behind American Coaster Enthusiasts. David Klawe thanked City Council and accepted the recognition on behalf of the organization.

Acceptance of Other Recognitions (To be presented at a later date):

Recognizing June 9 - 15, 2019, as National Flag Week

At 5:39 P.M., Mayor Sidhu called to order the Anaheim Housing Authority (in joint session with the City Council).

ADDITIONS/DELETIONS TO THE AGENDAS:

City Clerk Theresa Bass advised that Council Member Moreno will not be participating in the meeting via teleconference. City Manager Chris Zapata read an email from Council Member Jose Moreno in which he addressed the agenda and requested the continuance of Item Nos. 31, 32, and 33 to June 18, 2020. He also noted that Council Member Moreno earlier requested an item related to funding for the Muzeo be moved to another date, which the Mayor agreed to do.

PUBLIC COMMENTS: Prior to receipt of public comments, an outline of new rules for public comments and a brief decorum statement was provided by City Clerk Theresa Bass.

Mark Richard Daniels submitted an organization chart for the City, showing Anaheim residents at the top, and suggested Council work together on behalf of the residents rather than special interests. He encouraged Council to table Item Nos. 31, 32, and 33 until all members were present.

Dale Janish, Kaleidoscope Condominiums, provided background on their community and the positive impacts of Short-Term Rentals (STRs), expressed his support for Item No. 31, and encouraged City Council to pass the item.

Paul Hyek addressed difficulties with homeless people obtaining Section 8 certificates when they do not have hard addresses. In terms of shelters, he recommended a walk-in/walk-out policy, no busing, and removal of operator Mercy House.

Alan Bynder submitted a letter from a Fountain Valley City Council Member in support of STRs, provided information on the number and effect of STRs in neighborhoods, and expressed his support for Item No. 31.

Julie Easton shared her observations of STR operators ensuring good operation of their properties and encouraged City Council to approve Item No. 31. City Council Minutes of June 4, 2019 Page 12 of 42

Randy Lahr noted his family does not oppose vacation rentals, noted benefits STRs provide to the community, and encouraged City Council to consider such benefits when deciding on Item No. 31.

Roke Ghodsi shared his experience as a vacation home operator, submitted packets of neighbor and guest feedback, highlighted the TOT collected by STRs and guest experiences, and expressed his support for Item No. 31.

Andy Emory explained he was a STR owner and read a letter of support for STRs by the Dream Foundation.

Cathryne Warnock, STR operator, shared the needs of her guests from out of state and believed STRs serve as ambassadors for the City.

Adam Simms shared he owns and operates a small pool business, of which STRs are about 20% of his business and they provide year-round work.

Mike McNally shared they had positive results from STRs, he’s met people from across the world, supported STRs, and recommended dividing issues by categories of dwelling units. expressed his support for Item No. 31 and encouraged City Council to pass the item.

Leo Alanso, Frontierland Rentals employee, shared his job experience and that a loss of vacation rentals would negatively impact his family. He felt STRs bring benefits to Anaheim and the community.

Felix Penalosa Navarro (Translation: Spanish) expressed concern with a loss of work in neighborhoods around Disneyland and asked for more time to continue working in the STR industry by cleaning houses to support his family with additional income. He stated no disturbances were seen at the vacation rentals.

Alicia Lambaren stated her income is dependent on STRs, requested Council help her and others keep their jobs, shared her experience with guests, and expressed her support for Item No. 31.

Weston Saunders supported STRs, noted the importance of TOT from STRs, shared his experience as an owner with no violations, offered his agreement with Item No. 31, and requested Council approve the item.

Alicia Miranda shared her good experience as a neighbor a STR and encouraged Council to keep STRs as a benefit to Anaheim.

Zhong Luo explained the important of his STR to his family, shared the benefits to the City, and expressed his support for Item No. 31.

Paula Ziberman asked Council to support STRs, stated she lives across the street from an STR and highlighted their responsibility and reliability, and encouraged City Council to pass the item.

Daniela Nitu supported STRs and asked for Council to approve Item No. 31. She highlighted the benefits to the community of STRs and the attraction for guests. City Council Minutes of June 4, 2019 Page 13 of 42

Vali Nitu echoed the positive comments of previous speakers, submitted records, expressed his support for Item No. 31, and encouraged City Council to pass the item.

Peter Fischer offered support for STRs and had the audience in support stand.

Elisabeth Acevedo shared she owns a STR cleaning company that supports many families in Anaheim.

Hillary Ramirez expressed her support for Item No. 31 as an employee of a vacation rental and encouraged City Council to pass the item.

Susan Jones shared that STR owners improved their properties and the neighborhood overall and were an asset.

Art Beas shared his positive experience as an Anaheim resident, how he became a short-term rental operator, and their experience with guests.

Kurt Muniz explained he does handyman services and lives between STRs and explained he had no issues with vacationing families or owners.

Christian Ergueta shared his family’s positive experiences with STRs, was encouraged by the wide variety of people who participate in the STR industry, and encouraged City Council to approve Item No. 31.

Claudia Luna shared her need for the work associated with rental houses and hoped they could stay in Anaheim.

Olivia Chavez (Translation: Spanish) shared she cleans houses and asked Council to support STRs.

Viridiana Barrosso asked Council to extend STR permits to allow her to keep working with Frontierland Rentals to help her family.

Dan Firestone stated he supported STRs as an owner.

Clase Simmons stated he owns a heating and air conditioning business that works year-round on STRs allowing him to better support his family and expressed his support for Item No. 31.

Justin Meyers stated he owns a pool cleaning business that works with STRs and hoped Council would keep them going.

Shelley Wilson shared she had no problems with the adjacent STRs to her home and expressed her support.

Kori Egland stated he supported STRs as an owner and submitted records.

Hayden Franke, pool service and repair business owner, shared his interactions with STR guests, expressed his support for Item No. 31, and encouraged City Council to pass the item. City Council Minutes of June 4, 2019 Page 14 of 42

Sam Olson, STR owner, shared he had grown new relationships through the process.

Nick Yagur addressed vacation rentals, the collection of TOT and additional revenue, the experience of visitors to Anaheim, and encouraged City Council to approve Item No. 31 in support of property rights.

Kandee Beas, Community Service Board Chairperson, provided information about her home- sharing efforts, stated renters would stay in another city if they could not stay in an Anaheim home, and hoped Council would let them continue their business.

Nancy Bravo, housekeeping company, asked Council to support STRs.

April Lopez stated she supported STRs due to their support of cleaning businesses.

George Grachen, Vice President of Anaheim Republican Assembly, submitted documents, addressed Item No. 7 regarding homelessness, and invited City Council to a public forum on June 19th at the Phoenix Club to discuss Illegal Fireworks.

Christi D'Antonio stated she supported STRs as an owner.

Bob Donelson expressed his opposition to Item Nos. 31, 32, and 33. He submitted records opposing the three items, suggested Council postpone the items per Council Member Moreno’s request, discussed prior actions on STRs, and encouraged City Council to reject the items.

Valerie Van de Zilver submitted records from STR visitors, noted she had never had a violation, and was proud to support the budget.

Robert Yagar, STR owner, shared his neighbor positively did not realize he rented his property.

Omar De Leon shared his experience working with STRs and encouraged City Council to approve Item No. 31.

Vidal Arce expressed his support for Item No. 33 for the importance of infrastructure and to allow workers to spend more time with their family due to closer work sites.

Robert Brunette expressed his support for Item No. 31 and STRs due to a rise in property values and the ability to address non-compliant renters. He requested Council keep the good STR operators and remove the bad operators.

Julie Brunette shared she did not originally like STRs but she now supports them and recommended the collected TOT be put towards community improvements.

Oscar de Leon expressed his support for rental properties, shared he cleans the houses with his wife, and asked Council to approve Item No. 31.

Ernesto Medrano, Los Angeles and Orange County Building and Construction Trades Council, shared their work within the Anaheim community, expressed his support for Item Nos. 32 & 33, particularly transit and infrastructure, and encouraged City Council to pass the items. City Council Minutes of June 4, 2019 Page 15 of 42

Thomas Drennan, International Union of Operating Engineers Local 12, addressed transportation needs, expressed his support for Item No. 33, and encouraged City Council to approve the item.

Hazel Alberas, Senior Citizens Club, expressed her opposition to Item No. 32 as she did not believe recruiting businesses was a matter for taxpayers. She suggested other options for spending funds, recommended bids be sought, and encouraged Council to reject the item.

Pam Donelson opposed Item No. 31 due to businesses operating in residential areas and the need to protect neighborhoods. She encouraged City Council to reject the item.

William Fitzgerald, Anaheim Home Owners Maintaining our Environment, supported homeowners, addressed campaign contributions, expressed his opposition to Item Nos. 32 and 33, and encouraged City Council to reject the items.

Diane Guenette, Sherwood Village resident, addressed absentee STR owners, opposed any extensions for STRs, expressed her opposition to Item No. 31, and encouraged City Council to reject the item.

Joan V. Miller expressed her opposition to STRs and Item No. 31, shared the busyness of the community amenities due to STRs and the inequity of water billing, and encouraged City Council to reject the item.

Miguel shared due his cleaning business he was able to buy a house in Anaheim, supported STRs, and encouraged City Council to pass the item.

Larry Slagle expressed his support for the agreement with the Chamber of Commerce in Item No. 32 and encouraged City Council to pass the item.

Marty Furman addressed manufacturing, expressed his support for Item No. 32, and encouraged City Council to approve the agreement with the Chamber of Commerce.

Virginia Hughes addressed the financial impact to Sherwood Village residents due to shared expenses, expressed her opposition to STRs and Item No. 31, and asked City Council to reject the item.

Paul Moreno, Ironworkers Local 433, expressed his support for Item No. 33, investment in Anaheim infrastructure, and encouraged City Council to pass the item.

Aida Garcia, Rancho La Paz resident, alleged owner John Saunders had not been receptive to the board members nor residents and requested the Authority extend an emergency relief order for the mobile home park or a permanent ordinance regarding rent stabilization.

Ray Q. Mo, STR owner, expressed his support for Item No. 31 and shared positive feedback from his neighbors.

Diana Ramirez, District 5 resident, shared her experience through Reborn Cabinets, expressed her support for the Chamber of Commerce, and encouraged City Council to approve Item No. 32. City Council Minutes of June 4, 2019 Page 16 of 42

Paul Wilfong addressed residential zoning, expressed his desire to see STRs removed from residential areas in Anaheim, and encouraged City Council to reject Item No. 31.

Ross McCune, Anaheim Chamber of Commerce Chairman, shared the partnership between the Chamber and the City, expressed support for Item No. 32, urged City Council to pass the item, and submitted letters of support.

Mike Robbins shared negative effects of STRs in his neighborhood and other effects on the City, expressed his opposition to Item No. 31, and asked City Council to table the item.

Jeanine Robbins addressed the method of placing items on the agenda, expressed her opposition to Item No. 31, and encouraged City Council to reject the item. She questioned the political campaign contributions by Short-Term Rental (STR) owners to the campaigns of some City Council members.

Shari Watson shared she works for a STR company and requested the ban on STRs be lifted to allow her to continue working and supporting her employees.

Talmadge Price expressed his support for STRs and encouraged City Council to pass Item No. 31.

Sam Hurtado addressed slanderous remarks, expressed his support for workers and Item No. 33, and encouraged City Council to pass the item.

Amelia Castro expressed her support for Item No. 32 and encouraged City Council to approve the agreement with the Chamber of Commerce.

Peter W. Page, Sherwood Village resident, believed the STR issues had been resolved, expressed his opposition to Item No. 31, and encouraged City Council to reject the item.

Mery Savedra (Translation: Spanish) supported STRs because her family depends on her job and requested Council support Item No. 31.

Eric Bisaillon supported Item No. 32 to strengthen economic efforts in Anaheim through the Chamber of Commerce and encouraged City Council to pass the item and continue the partnership.

Pierre Liechti expressed his opposition to Item No. 31 due to the effects of STRs on his neighborhood and zoning requirements and encouraged City Council to reject the item.

Andrew Mangan stated he supported STRs.

Rachel Garcia shared she had no issues with the STR next door to her house and did not see a problem, sharing she believed in them.

Duane Roberts stated he was not necessarily opposed to home sharing as long as property owners live on the site, but he rejected STRs due to their destruction of community and their effect on housing inventory. He spoke regarding campaign contribution from STR owners. City Council Minutes of June 4, 2019 Page 17 of 42

Li Zheng, STR owner, shared renting their properties is their main source of income, addressed how a ban would affect her family, expressed her support for Item No. 31, and encouraged City Council to pass the item.

Martin Lopez, Sherwood Village and Unite Here Local 11, expressed concern that workers are paid fair wages and benefits, stated his opposition to STRs and Item No. 31, and encouraged City Council to reject the item and respect previous votes.

Wes Jones submitted records, believed Item No. 31 would be re-litigated, opposed Item No. 32 as there was no benefit to the residents by providing money to the Chamber of Commerce for fundraising efforts, and stated a study had already been completed regarding transit options and there was no current need for a streetcar.

Nick Latimer recommended Council following Policy 4.1 and requested a denial of Item No. 32. Regarding Item No. 33, he recommended staying with previous decisions on the topic.

Rich Gomez, Southwest Regional Council of Carpenters, expressed his support for Item No. 33 to study all transportation modes and encouraged City Council to pass the item.

David Klawe thanked staff regarding their efforts on homelessness in Item No. 7. He expressed his support for Item Nos. 24, 31, 32, and 33 and encouraged City Council to pass the items. He questioned what happens to STR permits if the property is sold. He thanked staff regarding permit parking on South Hampton Street.

Charlotte Seidnematollah expressed her opposition to STRs due to their negative impacts on neighbors and encouraged City Council to reject the item and put residents first.

Peter Mitchell, Anaheim Police Association, expressed his support for Item No. 32 and encouraged City Council to pass the item, recognizing the partnership with the Chamber of Commerce.

David Duran expressed his opposition to Item Nos. 31, 32, and 33 as he believed they were not urgent items and he opposed the short notice for public input and dais consideration.

Joe Hoffman expressed his support for Item No. 32 and asked City Council to approve the agreement with the Chamber of Commerce. He highlighted the events and partnerships that would benefit the City overall.

Eric Froberg, STR owner, shared the benefits of STRs in the Kaleidoscope community, expressed his support for Item No. 31, and encouraged City Council to pass the item.

Ron Bengochea supported Item No. 31 and STRs in support of property rights, as an asset to the City, and for the TOT, and encouraged City Council to approve the item. In regards to Item No. 32, he opposed a trolley and wished the monorail had been built.

Robert Ping Luo stated he supported Item No. 31.

Mauro Flores expressed his support for rental houses. City Council Minutes of June 4, 2019 Page 18 of 42

Kenneth Batiste addressed finances in the City and expressed his opposition to Item No. 31 due to a housing shortage. He alleged elder financial abuse regarding mobile home rental issues. He opposed the agreement with the Chamber of Commerce.

Elizabeth Raveba expressed her support for STRs in Anaheim. She believed a common ground could be found with the continuance of permits and removal of bad operators.

Christine Reverditto expressed her support for Item No. 31 and STRs.

Tony Nguyen supported STRs and recommended residents call Code Enforcement when there are rule violations. He spoke of the financial benefits of STRs to workers and the City.

Leonard Alcala II expressed his support for vacation rentals.

Mark Cheng expressed his support for STRs for their benefit around the City and economic growth.

John Nguyen stated he supported STRs as good for the City and employment efforts.

Vern Nelson discussed actions by the Anaheim Democratic Club regarding rent increases and issues around Angels Stadium. He addressed STRs as a public nuisance and spoke regarding STR campaign contributions. Regarding the streetcar, he believed it would only benefit Disney and believed they should pay for it. He opposed the agreement with the Chamber of Commerce.

Jennie Zhang stated she supported STRs.

Mike Connelly stated he supported STRs.

Richard Rowan submitted letters in favor of STRs.

City Attorney Robert Fabela joined the meeting following the conclusion of public comments.

CITY MANAGER’S UPDATE:

Interim Fire Chief Pat Russell provided information about the City’s wildland fire preparation, response, and recovery efforts as well as planned enforcement regarding fireworks.

City Manager Chris Zapata reported City staff met with John Carpino and other Angels representatives on May 20, 2019, wherein it was reported the Angels had hired three additional consultants to assist with their focus on Anaheim and that the City expected to bring an appraisal for Council consideration in July. Mr. Zapata further reported he hired sports consultant Dan Barrett to assist the City and a legal consultant may be hired in the future.

Mayor Sidhu announced the City’s negotiation team would consist of himself representing the City Council and City Manager Chris Zapata and City Attorney Robert Fabela on behalf of the city administration.

At 9:25 P.M., Mayor Sidhu recessed the City Council and Housing Authority, reconvening at 9:30 P.M. City Council Minutes of June 4, 2019 Page 19 of 42

At 9:30 P.M. Mayor Sidhu recessed the City Council to address the Housing Authority agenda, reconvening at 9:32 P.M.

CONSENT CALENDAR: At 9:32 P.M., the Consent Calendar was considered with Council Member Barnes pulling Item No. 7 for separate discussion.

MOTION: Mayor Pro Tem Kring moved to adopt the balance of the consent calendar as presented, in accordance with reports, certifications, and recommendations furnished each city council member and as listed on the consent calendar, seconded by Council Member Brandman. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O’Neil; NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried.

4. Receive and file minutes of the Library Board meeting of April 8, 2019 and the Public Utilities Board meeting of April 24, 2019.

5. Approve recognitions for The Phoenix Club 50th Anniversary, Command Sergeant Major Brad Semonell, U.S. Service Academy appointees, Anaheim Elementary School District's Make Music Program, and Girls Inc.

6. Approve the Investment Portfolio Report for April 2019.

8. Accept the bid of Steve Slawson Company dba Shaw Interior Services, in the amount of $87,120.34 plus a 20% contingency, for carpet cleaning services at the Anaheim Convention Center 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 #9278.

9. Accept the bids from All Star Fire Equipment, Inc. and L.N. Curtis & Sons, in a combined amount not to exceed $45,298 plus applicable tax, for wildland uniforms and accessories for the Anaheim Fire and Rescue Department for a one year period with four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #9265.

10. Accept the lowest responsive bids from Master Landscape and Maintenance Inc., Greentech Landscape, Inc., and Parkwood Landscape, in the amounts of $155,743.32, $268,500, and $145,804.08 respectively plus a 20% contingency, to provide landscape maintenance services covering the East, West, and West-Center areas of the City of Anaheim 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 #9289.

11. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a purchase order to Corona Software, Inc. dba Corona Solutions, in the amount of $24,900 plus applicable tax, for the purchase of a subscription to the “Deploy” City Council Minutes of June 4, 2019 Page 20 of 42

law enforcement staffing analysis software platform, which includes licensing, data upload to the web based software, reports, support, and training.

12. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a master agreement to South Coast Emergency Vehicle Services, in an amount not to exceed $65,000, for Pierce Manufacturing vehicle parts and warranty services for Anaheim Fire and Rescue vehicles for a one year period and authorize the Purchasing Agent to renew the agreement for up to four additional one-year periods.

13. Award the contract to the lowest responsible bidder, California Building Evaluation and Construction, Inc., in the amount of $775,000, for the Manzanita Park Parking Lot and Skate Facility Project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

14. Award the contract to the lowest responsible bidder, E.E. Electric, Inc., in the amount of $6,613,162.50, for the Manchester Electric Line Extension & Electric Reliability Improvement Project FY18/19 (project), determine said project is categorically exempt from the California Environmental Quality Act pursuant to Sections 15301(b)(c), 15302(c)(d) and 15303(d) of Title 14 of the California Code of Regulations and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

15. Approve a Cooperative Agreement with the City of Garden Grove, in the amount of $405,809 with a 15% contingency, for Anaheim’s share of joint paving costs of the street rehabilitation project on Euclid Street following an undergrounding project within the Anaheim city boundaries and authorize the Public Utilities General Manager, or designee, to execute the agreement and any related documents and to take the necessary actions to implement and administer the agreement.

16. Approve an agreement with GHD, Inc., in a total amount not to exceed $175,000, for the design of the Underhill Avenue, N. Shakespeare Street, and the SR-57 Freeway Crossing Sanitary Sewer Improvement Project.

17. Approve speed lumps on Rome Avenue between Beach Boulevard and Dale Avenue as a traffic calming measure.

18. Approve speed lumps on Halliday Street between Orange Avenue and Rome Avenue as a traffic calming measure.

19. Approve the Final Map and Subdivision Agreement with Pacific Coast Asset Management, LLC for Tract No. 18069, located at 1525 South Euclid Street, to establish a one-condominium lot for 18 single family attached condominium units. City Council Minutes of June 4, 2019 Page 21 of 42

20. Approve the Final Map and Subdivision Agreement with TRI Point Homes, Inc. for Tract No. 18101, located at 901 East South Street, for a 546-unit residential subdivision consisting of 72 detached single-family units, 160 attached single-family units, and 314 apartment units with 25 numbered lots for condominium purposes.

21. Award Master Agreements to twelve qualified bidders, each in an amount not to exceed $500,000 per work order package with the number of open work order packages per contractor limited to three at one time, for sewer, storm drain and pump station construction, maintenance, repair, and immediate response service for a one year period with four one-year optional renewals; authorize the Director of Public Works to execute, administer, and take the necessary actions to implement the agreements; and authorize minimal changes that do not substantially change the term and conditions of the agreements, as long as such changes are determined to be minimal by the City Attorney’s Office (AMPCO Contracting, Inc., Downstream Services, Inc., Grbcon, Inc., Southwest Pipeline & Trenchless, Inc., MNR Construction, Inc., Sancon Technologies, Inc., Mike Prlich and Sons, Inc., Paulus Engineering, Inc., Ramona, Inc., Trautwein Construction, Inc., Vasilj, Inc., W. A. Rasic Construction Company, Inc.).

22. Approve the Professional Services Agreements with eight consultant companies, each in an award amount not to exceed $250,000 per work order package with a total not to exceed limit per consultant per contract year of $500,000 inclusive of extra work, for as- needed grant writing and public outreach services to support the Design Services Section of the Department of Public Works for a three year term with up to two one-year extensions; authorize the Public Works Director to execute, administer and take the necessary actions to implement the agreement; and authorize minimal changes to the agreement that do not substantially change the terms and conditions of the agreements, so long as such changes are determined to be minimal by the City Attorney's Office (Alta Planning + Design, Inc., Blais & Associates, Inc., Consensus Inc., DeGrave Communications, Inc., Evan Brooks Associates, Inc., Kleinfelder Construction Services, Inc., TRC Solutions, Inc., and Townsend Public Affairs, Inc.).

23. Approve agreements with forty-one consultant companies, each in an award amount not to exceed $400,000 per work order package with a total not to exceed limit per contract, per contract year of $1 million in total awards, inclusive of extra work, for as-needed professional engineering and design services to support the Design Services Section of the Department of Public Works for a three year term with up to two one-year extensions; authorize the Public Works Director to execute, administer and take the necessary actions to implement the agreement; and authorize minimal changes to the agreement that do not substantially change the terms and conditions of the agreements, so long as such changes are determined to be minimal by the City Attorney's Office (ABSG Consulting Inc., Advanced Applied Engineering, Inc. dba Infrastructure Engineers, AECOM Technical Services, Inc., Albert A. Webb Associates, Ardurra Group, Inc. dba Anderson Penna Partners, BKF Engineers, Cannon Corporation dba PENCO, Cho Design Associates, Inc., Cornerstone Studios, Inc., CWE, David Evans and Associates, Inc., David Volz Design Landscape Architects, Inc., Dewberry Engineers Inc., Dudek, GHD Inc.,Glen A. Rick Engineering and Development Company dba Rick Engineering Company, Harris & Associates, Inc., HR Green Pacific, Inc., Huitt-Zollars, Incorporated, City Council Minutes of June 4, 2019 Page 22 of 42

JMDiaz, Inc. dba JMD, Kimley-Horn and Associates, Inc., KOA Corporation, Koa Consulting, Inc., KPFF, Inc. dba KPFF Consulting Engineers, LEE & RO, Inc., Mark Thomas & Company, Inc., Michael Baker International, Inc., Moffatt & Nichol, NUVIS Inc., Onward Engineering, Pacific Advanced Civil Engineering, Inc., PSOMAS, Q3 Consulting, RailPros, Inc., RAK Development, Inc. dba Kreuzer Consulting Group, SA Associates, Stantec Consulting Services Inc., Sustura Inc. dba Haimann Engineering, The Altum Group, Transtech Engineers, Inc., and Woodard & Curran, Inc.).

24. Approve an agreement with SeniorServ to utilize a portion of the Brookhurst Community Center, on a shared basis, to provide a comprehensive meal program, recreational activities, and social services to senior citizens for a term of five years with two additional one-year terms.

25. Approve the First Amendment to Agreement with New City America, Inc., increasing the not to exceed amount from $45,000 to $100,000 and extending the term for an additional six months from August 31, 2019 to February 29, 2020 for the formation of a Community Benefit District and authorize the Director of Community & Economic Development Department, or designee, to execute and administer the amendment.

26. Approve and authorize the City Manager to execute and administer the following agreements related to city owned property located at 1370 S. Sanderson Avenue (Anaheim Equestrian Center): a Termination and Release Agreement with Robert G. Jones, a Lease Agreement with Powerline Properties, LLC , and a Declaration of Reciprocal License Agreement; and find that the execution of the lease agreement is exempt from the California Environmental Quality Act pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.

27. RESOLUTION NO. __2019-050__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM concerning the status and update of the Circulation Element, Mitigation Fee Program, and Pavement Management Plan for the Measure M (M2) Program.

Adopt a Seven Year Capital Improvement Program and authorize staff to submit it to the Orange County Transportation Authority.

28. RESOLUTION NO.__ 2019-051__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ratifying the submission of a grant application and the acceptance of a grant on behalf of the City of Anaheim for the Fiscal Year 2018-19 Untested Sexual Assault Evidence Grant Program, authorizing the City Manager, or his designee, to execute all required grant documents, and amending the budget for Fiscal Year 2018-19 accordingly (grant award in the amount of $63,680). City Council Minutes of June 4, 2019 Page 23 of 42

29. ORDINANCE NO.__ 6465__ (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapters 18.08 (Commercial Zones), and 18.38 (Supplemental Use Regulations) of Title 18 (Zoning) of the Anaheim Municipal Code to facilitate the conversion of existing motel and other commercial and office structures to allow multiple- family, transitional and supportive housing for low-income persons 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 15301(Class 1; Existing Facilities) (Zoning Code Amendment No. 2019-00160) (DEV2019-00031) (facilitate the conversion of existing motels and other commercial and office structures within the "C-G" General Commercial Zone to housing) (Introduced at Council meeting of May 14, 2019, Item No. 16).

30. Approve minutes of the Council meeting of October 23, 2018.

At 9:33 P.M., Mayor Sidhu considered the agenda out of order and addressed the Public Hearing items prior to the remainder of the Consent Calendar and Off-Consent items.

PUBLIC HEARINGS:

34. CONDITIONAL USE PERMIT NO. 2015-05835 VARIANCE NO. 2017-05091 PUBLIC CONVENIENCE OR NECESSITY NO. 2019-0144 (DEV2015-00116) OWNER: Isa Bahu, 823 South Bramble Lane, Anaheim, CA 92802 APPLICANT/AGENT: Empire Design Group, Inc., P.O. Box 944, Murrieta, CA 92564 LOCATION: This 0.43-acre property is located at 5706 East La Palma Avenue, at the southeast corner of La Palma Avenue and Imperial Highway. REQUEST: Approval of the following land use entitlements: (i) a Conditional Use Permit to permit the sale of alcoholic beverages for off-premises consumption in conjunction with a new convenience store and automobile service station; (ii) a Variance to permit reduced front and interior structural and landscaping setbacks; (iii) an associated Determination of Public Convenience or Necessity to permit the off-premises sales and consumption of alcoholic beverages at a new convenience market; and (iv) a Shared Parking Agreement. ENVIRONMENTAL DETERMINATION: The City Council will consider whether a Class 32 (Infill Development Projects), categorical exemption is the appropriate environmental documentation for this request under the California Environmental Quality Act. ACTION TAKEN BY THE PLANNING COMMISSION: Approved Conditional Use Permit No. 2015-05835 (PC2019-017), Variance No. 2017-05091,

Public Convenience or Necessity No. 2019-0144 (PC2019-018), with a modified Condition of Approval to state that “ongoing during project operation, refueling tanker trailers shall not block any portion of the public right of way. If any such fuel tanker truck obstructions occur, then the owner will be required to provide a delivery schedule to the Public Works Department, Traffic and Transportation Division, to ensure that such deliveries do not have an adverse impact on traffic flows, and/or Orange County Transportation Authority’s bus schedule, on La Palma Avenue. Said schedule shall be subject to review and approval by the City Traffic Engineer.” VOTE: 6-1 (Chairperson City Council Minutes of June 4, 2019 Page 24 of 42

Carbajal and Commissioners Armstrong, Dalati, Gillespie, Keys and Lieberman voted yes; Commissioner White voted no) (Planning Commission meeting of April 1, 2019) (Appealed by Cal City Corp. and Navaz Malik).

RESOLUTION NO.______A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2015-05835 and Variance No. 2017-05091 and making certain findings in connection therewith (DEV2015-00116) (5706 East La Palma Avenue).

RESOLUTION NO.______A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining Public Convenience or Necessity No. 2019-00144 to permit a Type 20 (Off Sale Beer and Wine) Alcoholic Beverage Control License and making certain findings in connection therewith (DEV2015-00116) (5706 East La Palma Avenue).

Deputy City Manager David Belmer advised that Item No. 34 is a request for a Conditional Use Permit (CUP) to allow beer and wine for off-site consumption within a new ARCO Gas station with a Shared Parking Agreement, a variance for reduced setbacks adjacent to arterial highways and interior property lines, and an associated determination of public convenience or necessity to permit the off-site sale of beer and wine within the convenience store.

Mr. Belmer advised that the Planning Commission heard the item on April 1, 2019 and approved the project with a 6-1 vote. He advised that the project was appealed by both Navaz Malik and the Cal City Corporation. He noted the property is a half-acre lot located at the corner of Imperial Highway and La Palma Avenue and was originally developed with an ARCO gas station in 1967. In 1981, a portion of the gas station was converted to an AM/PM mini-market. He advised that in 2002, the City acquired land for street-widening purposes on La Palma Avenue and the service station was demolished in 2004 as a result of the acquisition and widening.

Mr. Belmer reported the applicant proposes to construct a new service station consisting of a two-story convenience store with beer and wine sales for off-site consumption and a canopy structure with six dispenser islands for a total of 12 pumping stations. He advised that retail items and beer and wine would be sold on the first floor of the building with the second story dedicated to inventory. He noted one driveway is proposed on La Palma Avenue with no driveway on Imperial Highway and 16 parking spaces are provided, more than the 13 required by Code. Such parking spaces include 12 on-site, including the six spaces provided at the pump islands as allowed by Code, and four off-site spaces.

Mr. Belmer advised a Shared Parking Agreement has been arranged with the Keno’s Restaurant property immediately east of the subject property. He advised that staff included a condition of approval for that the four off-site parking space would be available in perpetuity. The shared parking agreement has been signed by Keno’s Restaurant and recorded.

Mr. Belmer advised the 4,800 square foot convenience story building is designed with red brick veneer walls on each of the elevations, earth-tone colors, smooth stucco trim, aluminum doors and windows, and metal awnings with gooseneck lights along the street facing elevation.

He reported that the property is constrained by a number of factors including reducing the size of the site in 2002 due to the City’s street widening project. In addition, there is a storm drain and public utility easement located on the entire western property line with no structures permitted in City Council Minutes of June 4, 2019 Page 25 of 42 the easement area. Lastly, this site is only permitted to have one driveway as Imperial Highway is a Caltrans right-of-way where no driveways are permitted.

Mr. Belmer advised the applicant is requesting two variances for the project. The first is to reduce the front landscape setbacks along the La Palma Avenue and Imperial Highway frontages where 15 feet of landscape is required, and ten to five feet is proposed. The second variance is to reduce the rear and interior landscape and structural setbacks adjacent to the hotel where 10 feet is required, and 18 inches is proposed for the building and 2 - 15 feet is proposed for landscaping. He advised that the small lot size and property constraints due to the dedicated utility easement makes it difficult to meet all the development standards while providing code compliant setbacks.

Mr. Belmer advised that given the circumstances of the reduced size of the property and the limited development area of the site, the Planning Commission made the findings to justify the requested structural landscape variances made by the applicant.

He reported that due to the number of alcohol licenses in the census tract and crime statistics within a ¼ mile radius, Alcoholic Beverage Control (ABC) requires the City to make a determination of public convenience or necessity as a pre-requisite for issuing a license for off- site consumption of alcohol.

Mr. Belmer advised that the issues associated with the request were closely reviewed by staff and the Anaheim Police Department (APD) and, with no concerns noted, the Planning Commission approved the Determination of Public Convenience or Necessity (PCN).

Mr. Belmer reported that truck circulation has been an area of focus on the site and the applicant contacted Tesoro Marathon Petroleum Company, who will be delivering the fuel to the proposed service station, to conduct a circulation analysis for the site to ensure site safety and maneuverability. He advised that Tesoro determined that a standard truck and trailer equipment could be used to service the site with no challenges to maneuverability and without causing vehicle disruption on La Palma Avenue. He also advised Tesoro offered to modify their delivery methods, which could include but is not limited to, delivering fuel at alternative times during off- peak hours and/or utilizing a smaller single tank truck.

Mr. Belmer advised that off-site circulation was carefully reviewed by staff. The single driveway access on La Palma Avenue is located west of the shopping center turn pocket. He advised the applicant is required to require a sign in the driveway that indicates to motorists that they will proceed east to the signalized intersection of Chrisden Street and La Palma Avenue to perform the u-turn. Lastly, he advised if traffic and/or circulation issues arise associated from the proposed project on- or off-site, the applicant is required to meet with City staff to determine methods to resolve issues. He noted that if the issues are not resolved or continuously re-occur, the project shall be subject to a six (6) month review, at the discretion of the City, by the Planning Commission, commencing from the date the business opens.

Mr. Belmer advised the Planning Commission discussed several issues of potential concern associated with the project including traffic and circulation, ingress and egress, concerns with the single driveway on La Palma Avenue, potential safety concerns with the bus stop, and potential conflicts with deliveries. He advised the Planning Commission felt these issues were adequately addressed in the conditions of approval and recommended approval of the project. Subsequent to the Planning Commission meeting, staff has also placed additional conditions of approval to City Council Minutes of June 4, 2019 Page 26 of 42 provide additional guarantees which include a six (6) month review by the Planning Commission, revisions to the delivery schedule, and a new condition to have the applicant install a sign regarding u-turns.

Mr. Belmer advised the Mayor and City Council have received a number of correspondences regarding this project. He noted that requested variances were not atypical, but there were a few more variances on this project than normally seen. Lastly, he advised that staff recommends the City Council deny the appeal and uphold the Planning Commission’s actions.

DISCUSSION: Mayor Sidhu disclosed that he had communications with the applicant, the appealing parties, and their representatives.

Council Member Brandman, Mayor Pro Tem Kring, Council Member Faessel, and Council Member O’Neil all disclosed they had communications with the applicant, appealing parties, and their representatives.

At 9:33 P.M., Mayor Sidhu opened the public hearing.

Asuan Dada, Cal City Corporation, expressed concerns regarding the traffic in the proposed project area, particularly in the afternoons and evenings due to the 91 Freeway eastbound. He felt the gas station, bus stop, and heavy traffic will cause additional congestion and requested that City Council deny the permit.

John Bollinger, representing the appellant, noted that he previously provided City Council with a report of the property. He advised that the Environmental Impact Report for the General Plan established that the intersection where the project is located in a critical intersection and cannot support the additional traffic congestion. He acknowledged that the City has acquired property to mitigate the traffic congestion, but it has not solved the problem of the traffic bottleneck on La Palma Avenue. He expressed concern regarding the one driveway on La Palma and felt that it cannot support the number of cars and service vehicles that will need to access the site, with an average of six turn-arounds in an hour resulting in approximately 144 cars per hour. He also alleged the existing driveway is substandard and a bottleneck would occur by the accessible parking space. He stated these were all environmental issues and he encouraged City Council to deny the permit.

Peter Mitchell, President of PM Consulting representing Mr. Malek, the Cinema City Theaters, and the Anaheim Police Association, submitted letters from business owners, expressed concern regarding the project, and felt that too many variances and allowances have been provided to the project. He also felt that the project has not received as much scrutiny as similar projects in the area. He informed City Council that the previous owner was paid approximately $450,000 in 2002 to remove the previous service station from the site, meaning the site is not fit for a service station. Additionally, he cited that critical ingress and egress points were removed, this is the only one of 66 gas stations in Anaheim that has only one ingress/egress point, that parking spaces deeded from Keno’s Restaurant are too far from the service station, and poor loading and unloading areas make the project impractical. He disputed the claim that a service station was the only viable project for the site and referenced previous comments by the owner of a desire to build a four-unit strip center on the property. He strongly encouraged City Council to deny the project as it is too big, has maximum variances and reduced setbacks, and due to high traffic impacts. City Council Minutes of June 4, 2019 Page 27 of 42

Grant Henninger, representing the applicant, Isa Bahu, thanked staff for their work and support on the project. He provided a history of the project that it has been a gas station since the late 1960s and has been owned by the Bahu family since the 1970s. Part of the site was taken in 2004 as part of an eminent domain action, advised the site was scraped due to ground contamination, and that it was always intended to be a service station. He said the taking was not for the entire business, but for the portion of land taken. He alleged the City had promised the buildings could be returned if they had to be demolished and that there would be two driveways at the site, based on depositions. Now, they were merely trying to re-build, as had been promised. He stated that there were plans to build a strip mall, but tenants could not be found so those plans were put aside. He stated this plan had been ready several years ago but, due to the Anaheim Canyon Specific Plan, staff asked the applicant to put the plans for a service station on hold. He also stated a service station would be allowed by right, but does not work financially without the convenience store and the traffic increase would be minimal. He reported the applicant has made many concessions, including lessening the thumbprint of the building by making it two stories, adding a brick exterior, and creating a generic convenience store instead of an AM/PM, all of which caused additional cost to the project, to ensure the project is successful and appease the City and stated concerns. He also reported they agreed to limit refueling and deliveries to off-peak, evening hours, were willing to sprinkler the canopy even though not required, and increased the landscaping as much as possible.

Isa Bahu, applicant and property owner, submitted records and shared the history of his family and their investment in the Anaheim community. He reported that the City paid the family $159,000 for the loss of some business and paid ARCO $297,000 for the loss of property, not for the take of the whole property or the whole business during the eminent domain takeover. He also stated that the City promised they would be able to have two driveways, the bus stop would be moved, and the business could remain open, referring to depositions. Additionally, he stated the City promised they could rebuild on the site with the old codes, if they removed the original building. He clarified that there were only six fueling stations, not twelve, and addressed traffic as the same as twenty years ago with no increase. He believed the project with one entrance was fine, provided concessions regarding deliveries, and explained the four off-site parking spaces are for employees. He encouraged City Council to approve the item with the City reserving the right to review the project in six (6) months. He alleged negative impacts and potential fires were not likely, believed Anaheim was losing business to surrounding cities with lower-cost fuel, and referenced other gas station sites with one entrance.

Beata Barry expressed her opposition to Item No. 34, specifically for the first responders who may need to enter the traffic congested area. She thought the proposed buildings were beautiful, empathized with the applicant, but felt the project site was too small and the issue was about functionality. She recommended a potential buy-out if what was promised to the applicant was not able to come to fruition.

William Fitzgerald, Anaheim Home Owners Maintaining our Environment, expressed his concern regarding the project and its size, the ill-effects of alcohol on accidents, and the issue of only one driveway near the bus stop. He felt this was based on the political aspirations of City Council and their alliance to Disney.

Gil Ficke stated his surprise that project got this far in the process, expressed his opposition to Item No. 34, and encouraged City Council to deny the permit based on the size of the lot and its proximity to the hotel in the area and believed this was not the right business at the right location at this time. City Council Minutes of June 4, 2019 Page 28 of 42

Fred Whitaker, attorney for appellant Navaz Malik, spoke regarding land-use regulations and believed the impacts have not been mitigated in this case and the variances cause more impact. He also noted the appellant was denied similar variances on his project across the street that are now being approved in this case, creating an uneven playing field. In regards to the second driveway and bus stop issues, he did not believe Caltrans and OCTA would be amenable to such changes. He encouraged Council to uphold the appeal.

Craig Hunter shared his background in law enforcement and city administration, submitted documents, and addressed issues raised by the appellants and their supporters. He expressed his opposition to the appeal of Item No. 34 and encouraged City Council to support the project.

Michael Glassman, Marathon Petroleum Corporation (MPC), reported the site was reviewed for delivery and they are confident they can meet the delivery requirements in a safe and effective manner. He expressed his support for Item No. 34.

David Stahovich felt that the traffic impact was negligible, the traffic was already contemplated in the General Plan, believed the opposition was based on competitive business, and this project would benefit Anaheim residents. He expressed his support for Item No. 34 and encouraged City Council to approve the project.

Craig Johnson, attorney for the applicant, noted the only opposition to the project comes from the appellants and there is no substantial evidence to warrant the denial. He refuted certain comments made and encouraged City Council to approve Item No. 34. He read comments regarding driveway access and the continued use as a gas station.

Mark Hall encouraged City Council to be fair in its decision.

Peter Mitchell noted the site is a heavily trafficked corner and that at the Planning Commission meeting it was noted that a second driveway cannot be added. He stated the opposition letters submitted were from local businesses, reported there were existing traffic problems, and addressed comments regarding the appellant’s property. He expressed his opposition to Item No. 34 and encouraged City Council to deny the item.

John Bollinger defended his qualifications and noted that traffic and parking will be impacted. He expressed his opposition to Item No. 34 and encouraged City Council to deny the item.

Isa Bahu, applicant, clarified the lot size is 19,000 square feet and is sufficiently sized to be a service station that operates safely, larger than many existing stations in the city. He noted they are willing to add an additional driveway should it be deemed necessary. He stated many businesses and residents support the project, expressed his support for Item No. 34, and encouraged City Council to approve the item.

Mayor Sidhu closed the public hearing at 11:01 P.M.

DISCUSSION: Council Member Barnes disclosed she had communicated with the applicant, appealing parties, and their representatives.

Council Member Faessel shared a history of the original approval of a strip, shopping center in approximately 2006 or 2007 during his time on the Planning Commission. He stated the City Council Minutes of June 4, 2019 Page 29 of 42 entitlements for the four-unit center have remained with the family over the ensuing years and questioned the change in the project to a gas station and convenience market. In response to Council Member Faessel’s inquiry, Mr. Belmer advised that the Planning Commission and City Council are required to take action based on findings. He also advised that the resolution before City Council today is to sustain the Planning Commission’s approval based on facts and findings it made.

Council Member Faessel expressed his concerns regarding the heavily constrained site, the volume of variances requested for the project, and suggested they be reviewed. He addressed testimony heard regarding potential promises made, questioned if that was raised at the Planning Commission, and did not recall such issues being raised in 2006/2007 when the strip center was approved. He recommended the applicant go back and review the project to include fewer variances.

Council Member O’Neil stated residents would like to see another gas station in Anaheim Hills but expressed his concerns regarding variances and traffic impacts that have been speculated but not actually studied. He clarified the members of the Planning Commission that heard this project were appointed by previous Council Members. In response to Council Member O’Neil’s inquiry, Mr. Belmer advised the City cannot find evidence that any legal promises were made to the applicant. He noted the focus of the Planning Commission was not based on any previous agreements made but on the proposed project as it was presented today. Council Member O’Neil encouraged the applicant to re-evaluate the project and for City Council to consider it at another time.

Mayor Pro Tem Kring expressed concerns regarding the variances. She questioned whether surrounding properties were for sale and encouraged the property owner to see what they could do to expand the size of the property and project to make it more feasible. She encouraged the applicant to work with the Planning Commission to re-think the layout of the convenience store and stated she could not support the project at this time.

Mayor Sidhu stated that he encourages business opportunities but felt that safety was more important in this situation. He encouraged the applicant to look for other business opportunities for the site.

MOTION: Mayor Pro Tem Kring moved to deny the project and overturn the Planning Commission approval, seconded by Council Member O’Neil. ROLL CALL VOTE: AYES – 5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O’Neil; NOES – 0; ABSTAIN – 1 (Council Member Barnes); ABSENT – 1 (Council Member Moreno). Motion carried; appeal to deny the project approved; Planning Commission decision overturned.

36. This is a public hearing to consider a resolution to confirm the Diagram and Assessment and provide for the Levy of the Annual Assessment in and for the Anaheim Resort Maintenance District for Fiscal Year 2019/20.

RESOLUTION NO. 2019-053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM confirming the Diagram and Assessment and providing for the levy of the annual assessment in and for the Anaheim Resort Maintenance District.

Public Works Director Rudy Emami presented the levy of the annual assessment in and for the Anaheim Resort Maintenance District (ARMD) for Fiscal Year 2019/20. He reported that on May City Council Minutes of June 4, 2019 Page 30 of 42

14, 2019 (through the adoption of two separate resolutions), Council initiated the proceedings for the FY 2019/20 annual levy of assessments in the Anaheim Resort Maintenance District, accepted the Assessment Engineer’s Report for the Anaheim Resort Maintenance District, and set June 4, 2019 as the date for a public hearing. He recommended that City Council approve the item.

Mr. Emami advised the ARMD was formed effective July 1, 1999 and the assessments were levied annually beginning in FY 1999/00. The ARMD creates and maintains the Resort Area and assists visitors to patronize local businesses through amenities and services creating a premier location.

Mr. Emami reported that the Proposed FY 2019/20 ARMD Revenue is $5.1 million and is comprised of assessment revenue, other sources, and a General Fund contribution. He noted the expenditures are approximately $5.2 million and projected fund balance of $4.6 million at the end of the fiscal year. Lastly, he detailed the improvements that would be put in place with the annual levy including hardscape maintenance, landscaping and irrigation, urban forest management, ornamental lighting, decorative features, changeable message board, and enhanced signage and striping.

At 11:20 P.M., Mayor Sidhu opened the public hearing.

William Fitzgerald, Anaheim Home Owners Maintaining our Environment, expressed his opposition to Item No. 36, believed this only benefitted Disney, and alleged the assessment only covered additional items, not standard maintenance. He expressed his opposition as to how the assessment was being calculated.

Mayor Sidhu closed the public hearing at 11:32 P.M.

DISCUSSION: In response to Mayor Pro Tem Kring’s inquiry, Mr. Emami clarified that the assessment is calculated using the merchant’s store frontage and average daily trips. She clarified that Disney does not own any other hotels in Anaheim other than three (3) on the Resort property and the Resort self-funds its improvement.

In response to Council Member Faessel’s inquiry, Mr. Emami reported that Disney pays a substantial amount to the ARMD.

MOTION: Mayor Pro Tem Kring moved to approve RESOLUTION NO. 2019-053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM confirming the Diagram and Assessment and providing for the levy of the annual assessment in and for the Anaheim Resort Maintenance District., seconded by Council Member Brandman. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O’Neil; NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried. City Council Minutes of June 4, 2019 Page 31 of 42

35. DEVELOPMENT AGREEMENT NO. 99-01E (DEV2010-00166I) OWNER/APPLICANT: David Siegel, Westgate Resorts Anaheim, LLC, 5601 Windhover Drive, Orlando, FL 32819 AGENT: Grant Henninger, Mobius Planning, 1030 S. Country Glen Way, Anaheim, CA 92808 LOCATION: The Anaheim Gardenwalk Project Site is approximately 29.1 acres and located between Harbor Boulevard and Clementine Street, and Disney Way and Katella Avenue. The Westgate Timeshare Project Site is approximately 3.9 acres of airspace above the Anaheim GardenWalk parking structure. REQUEST: To amend the Development Agreement between the City of Anaheim and Westgate Resorts Anaheim, LLC for the Westgate Timeshare Project within the Anaheim GardenWalk Project to extend the Commencement of Construction date from March 23, 2019 to October 1, 2021. ENVIRONMENTAL DETERMINATION: The City Council will consider whether the previously approved Mitigated Negative Declaration and subsequent addenda analyzed the environmental impacts of the proposed amendment to the Development Agreement pursuant to the requirements of the California Environmental Quality Act (CEQA) and that no further environmental analysis shall be prepared pursuant to Section 15162 of the CEQA Guidelines. ACTION TAKEN BY THE PLANNING COMMISSION: Approved and recommended City Council approval of Development Agreement No. 99-01E (PC2019-022). VOTE: 6-1 (Chairperson Lieberman and Commissioners Armstrong, Keys, Meeks, Mulleady and Vadodaria voted yes; Commissioner White voted no) (Planning Commission meeting of April 15, 2019) (Public hearing continued from Council meeting of May 14, 2019).

ORDINANCE NO. 6467 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM approving Amendment No. 5 to the Second Amended and Restated Development Agreement No. 99-01 by and between the City of Anaheim and Westgate Resorts Anaheim, LLC and making certain findings related thereto; and authorizing the Mayor to execute and the City Clerk to attest said agreement for and on behalf of the City.

Deputy City Manager David Belmer reported this item is a request to amend the Development Agreement for the Westgate Vacation Ownership Resort portion of the GardenWalk project to extend the required date for the start of construction. He noted the GardenWalk Project is located between Katella Avenue and Disney Way.

Mr. Belmer stated that in 1999, the City approved the Pointe Anaheim project for the property and the approvals included over 500,000 square feet of retail and dining space, two (2) to three (3) hotels which may include up to 400 vacation ownership units, a movie or live performance venue, a parking structure, and a bus terminal.

Mr. Belmer reported that, since the original approval, the entitlements have been amended several times and the project name was changed to the Anaheim GardenWalk Project. He reported that the construction of the Anaheim GardenWalk shopping center and parking structure were completed and the JW Marriott was currently under construction, opening in Spring 2020. He noted the retail/dining/entertainment and parking structure were purchased by a new owner in 2018 who has secured leases with several new tenants. City Council Minutes of June 4, 2019 Page 32 of 42

Mr. Belmer reported the construction of a 400-unit Vacation Ownership Resort and additional hotel have not been completed. He advised that Westgate Resorts Anaheim, LLC is requesting an amendment to extend the date of the start of construction from March 23, 2019, to October 1, 2021 (approximately 30 months). He stated the applicant cited the recent change of ownership as the reason.

Mr. Belmer stated that in recognition of the recent sale of the Anaheim GardenWalk shopping center, and the property owner’s assertion of the importance of coordination between Westgate Resorts and the owner of the parking structure, staff and the Planning Commission recommend approval of this request to amend the Development Agreement.

Council Member Brandman disclosed that he may have had a passing conversation with the applicant about this project.

At 11:36 P.M., Mayor Sidhu opened the public hearing.

William Fitzgerald, Anaheim Homeowners Maintaining our Environment, expressed his opposition to Item No. 35 and believed the Planning Commission voted with Disney influence. He alleged additional Disney involvement with the project and referenced subsidy agreements and postponements.

Grant Henninger, representing Westgate Resorts Anaheim, LLC, stated that the extension was necessary due to the sale of the shopping center. He stated they wanted to ensure compatibility with the shopping center and their new vision and tenants. He expressed his support for Item No. 35 and encouraged City Council to approve the item.

Mayor Sidhu closed the public hearing at 11:49 P.M.

DISCUSSION: Mayor Sidhu stated that he supports local business and development investments in the local economy. He noted that he supports the GardenWalk Project which will be a great improvement for the Resort area and he looked forward to its completion. However, he could not support a 30-month extension and proposed a six (6) month extension.

City Member Faessel expressed his concern regarding the numerous extensions and also could not support a 30-month extension and supported Mayor Sidhu’s proposed six (6) month extension.

Council Member Brandman requested that any future extension requests of the Development Agreement during the six (6) month proposed extension be expedited through the Planning Commission and to City Council. Deputy City Attorney Leonie Mulvihill advised that there was a built-in process to cure any defaults included in the Development Agreement. Mr. Belmer advised there is a 10-day noticing requirement that must occur and must include the actions of the Planning Commission in order for the request to be placed on the City Council calendar. He recommends the developer work closely with staff to ensure they are able to process any future extension requests in a timely fashion prior to the expiration date. City Council Minutes of June 4, 2019 Page 33 of 42

MOTION: Mayor Sidhu moved to introduce ORDINANCE NO. 6467 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM approving Amendment No. 5 to the Second Amended and Restated Development Agreement No. 99-01 by and between the City of Anaheim and Westgate Resorts Anaheim, LLC and making certain findings related thereto; and authorizing the Mayor to execute and the City Clerk to attest said agreement for and on behalf of the City, as amended to require the developer to obtain building permits by December 31, 2019, seconded by Council Member O’Neil. ROLL CALL VOTE: AYES- 6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O’Neil; NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried; ordinance introduced as amended.

END OF CONSENT CALENDAR

7. Receive an update on homeless efforts in Anaheim.

Community Preservation and Licensing Manager Sandra Sagert reported that the Anaheim Emergency Shelter operated by the Salvation Army had been operating since January 31, 2019, with a total of 224 beds and provided year-to-date statistics. She advised that residents are satisfied with activities, food, outdoor space, and staff, and that concerns are addressed quickly.

Ms. Sagert reported the La Mesa Emergency Shelter operated by Illumination Foundation had been operating since March 6, 2019, with a total of 101 beds and provided year-to-date statistics. She noted that the Illumination Foundation continued to be a great shelter leader and are committed to being good neighbors.

Ms. Sagert reported the Center of Hope was still in its planning and development phase, with construction expected to begin in late 2019 or early 2020 and will include at least 325 lower barrier beds dedicated to Anaheim. The remaining beds will continue with Anaheim’s long term plan to provide a greater level of service care and longer-term stay for its residents. She advised City Net continues to follow up on outreach and assist with referrals into the shelters, along with transportation and other housing options for people.

Ms. Sagert reported that since the opening of the shelters, the Anaheim Homeless Outreach (HOT) and Psychiatric Emergency Response Teams (PERT) have been working hard to conduct as much outreach as possible to get as many people as they can into shelters. She advised there are close to 300 people in the shelters, mainly due to the great work of the HOT, PERT, and City Net outreach teams. She noted there has been a shift in people not ready to enter into the shelters trespassing onto private railroad properties, creating safety issues for both the homeless individuals and the rail safety of riders and other railroad personnel.

She advised Anaheim quickly met with BNSF Railroad, which operates within Anaheim city limits, and discovered they have a system in place to address trespassing, debris, and overgrown vegetation along their railroad. They have agreements with various contractors around the nation and when a complaint is received, they immediately bid the job out and have it cleaned up within a two week period. She noted that BNSF rarely contacts local police or resources unless necessary and they are highly efficient and take necessary steps to reduce the attractions for trespassing by changing their environment in specific areas with the removal of overgrown vegetation. She added that BNSF has a no trespassing letter on file with Anaheim to help with any trespassing issues they may need assistance with. City Council Minutes of June 4, 2019 Page 34 of 42

Ms. Sagert report that Union Pacific has 8.45 miles of railroad tracks running through Anaheim and a recent meeting was held with representatives from their team and city staff. She advised that staff was able to set up regular monthly cleanups along their tracks. Additionally, they are also moving forward with long term plans of fencing off several sections of railroad property from the public to protect from trespassers. She advised that Union Pacific is committed to helping partner with Anaheim as we address hot spot areas and work on long term permanent security of their private property for nearby residents and businesses. Union Pacific also submitted a no trespassing letter on file with the City to help with any trespassing issues in which they need assistance.

Ms. Sagert advised Anaheim has already begun using its own resources and constructed six (6) developments that provide housing options for persons experiencing homelessness: Casa Alegre, Tyrol Plaza, Diamond Aisle, Rockwood, El Verano, Casa Del Sol, Manchester/Orangewood, and EconoLodge Motel Conversion for a total of 238 beds. She advised that in addition to these efforts, Anaheim is exploring the acquisition of property citywide to provide more opportunities for the creation of Permanent Supportive Housing (PSH).

Ms. Sagert advised that key to the PSH effort is the adoption of changes to some of Anaheim’s land use policies. She noted that staff has already prepared, with developer input, an ordinance to allow the conversion of appropriate motels and/or office buildings (Conversion Ordinance) in Anaheim to PSH developments. The Conversion Ordinance is scheduled for a second reading tonight and will become effective on July 4, 2019, if approved. Under the proposed Conversion Ordinance, special attention is being paid to quality design, livability, site amenities, supportive services, and security plans, as well as the siting of these developments.

She reported that Anaheim continued to support the Homeless Assistance Pilot Program (HAPP), which was created to provide supportive services, rapid re-housing, and housing assistance for homeless families with children enrolled in Anaheim schools and noted year-to- date statistics. She advised that based on the success of the HAPP program, the City expanded its model with the Chronically Homeless Individuals Pilot Program (CHIPP) in 2017. The program focuses on vulnerable Anaheim individuals that are not eligible for the County’s Homeless Update Permanent Supportive Housing Program and is administered by the Illumination Foundation and Mercy House.

Ms. Sagert reported that in 2016, the Anaheim Housing Authority (AHA) received its first allocation of Veterans Affairs- Supportive Housing (VASH) vouchers. HUD-VASH provides case management services, delivered by the U.S Department of Veterans’ Affairs (VA), and permanent housing for formerly homeless veterans. She noted that AHA continues to apply for vouchers under this program as opportunities arise.

Ms. Sagert advised that in 2018, AHA applied for additional funding under the Section 8 Mainstream Program. She noted the vouchers enable families having a person with disabilities to lease affordable private housing of their choice and provided year-to-date statistics.

Ms. Sagert reported on the Pathway to Healing Program that helps individuals retain their place of residence while providing service information to assist with healthcare, addiction, abuse, and mental health needs. She also reported on a growing partnership with CalOptima and the Orange County Healthcare Agency in which the City plans to assist in a pilot program offering mobile medical services to Anaheim’s homeless population, focusing on shelters and those still on the streets. City Council Minutes of June 4, 2019 Page 35 of 42

She reported on the Pathway to Work Program which helps individuals who are prepared to work, after receiving shelter and health services, connect with jobs to move towards a sustainable life and connects individuals with service providers such as Better Way Anaheim and Chrysalis to assist with applying for jobs, clothing for interviews, creating resumes, and linking them to paid work. She described Better Way Anaheim and Chrysalis’ efforts.

Ms. Sagert reported that staff continued to aggressively pursue available funding for capital projects for homeless prevention and reduction, as well as Permanent Supportive Housing. She advised that funding authorized under Senate Bill 2 (SB2), the Building Jobs and Homes Act, is expected to be received and Anaheim is expecting to receive approximately $4 million in the first year (2020).

Ms. Sagert advised the City will continue to pursue grants for homeless services and permanent supportive housing. She noted the City will pursue funding from the Homeless Emergency Assistance Program (HEAP 2.0), expected to allocate $1 billion, which is doubled from prior HEAP one-time funding to large cities and the Continuum of Care to address homelessness. Lastly, she noted the City will also continue to seek other capital dollars including Federal HOME Partnership Investment program funds, new State funds resulting from the passage of Proposition 1, the measure which allows the State to sell $4 billion in general obligation bonds (SB3) to fund veterans and affordable housing, as well as funding from locally derived efforts including local Housing Trust funds.

Ms. Sagert reported on homeless efforts around the County and provided statistics.

DISCUSSION: Council Member Barnes expressed her pleasure for the success Anaheim has had with the homelessness issue in such a short period of time. She thanked Mayor Sidhu for championing the emergency shelter efforts in Anaheim. She reported she recently toured the shelters and was happy with their operation.

No further action was taken.

31. ORDINANCE NO. 6466 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM Amending Chapter 4.05 (Short-Term Rentals) of Title 4 (Business Regulation) of the Anaheim Municipal Code to modify the termination and amortization process and period for certain defined pre-moratorium short-term rentals, and finding and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15004, 15060(c)(2), 15060(c)(3), 15061(b)(3), 15301 and 15332 of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because it involves operation, permitting, licensing, and/or leasing of existing private structures or facilities involving negligible or no expansion of existing or former use, because there is no possibility that it may have a significant effect on the environment, because it is not a project, as defined in Section 15378 of the CEQA Guidelines, and because it is also the subject of categorical exemptions from CEQA.

City Attorney Robert Fabela recused himself from this item. Senior Assistant City Attorney Kristin Pelletier was present. City Council Minutes of June 4, 2019 Page 36 of 42

DISCUSSION: Council Member Barnes requested a postponement due to the late hour. Mayor Sidhu reported he requested this agenda item and felt that prohibiting Short-Term Rentals (STRs) was not a good decision for Anaheim and has added to the workload of the City’s Planning Department in processing hundreds of amortization and hardship applications over the past 18 months. Additionally, the City is prone to hundreds of additional lawsuits which could costs the taxpayers millions to defend. He wanted to ensure the City could continue to collect transient occupancy taxes (TOT) from the STRs to use in the General Fund for City services.

Deputy City Manager David Belmer reported this item would amend Chapter 4.05 (Short Term Rentals) of Title 4 (Business Regulation) of the Anaheim Municipal Code to modify the termination and amortization period and process for certain defined pre-moratorium short-term rentals. He advised that in 2014, the City adopted an ordinance to permit and regulate STRs in residential neighborhoods and in July 2016, the City Council adopted two ordinances pertaining to STRs: a “Regulate and Ban Ordinance” and an “Amortization Ordinance.”

Mr. Belmer advised that the Regulate and Ban Ordinance adopted a prohibition on new STRs in residential neighborhoods and established new operational criteria and enforcement protocols. He also advised the Amortization Ordinance phased out or amortized all STRs that existed prior to the moratorium (pre-moratorium STR) from residential neighborhoods by February 11, 2018. However, the Amortization Ordinance allowed each STR owner to apply for a hardship extension that would potentially extend the amortization period to enable the owner to recoup the cost reasonably invested to establish the STR use (which they are legally entitled to recover given that the City had previously permitted the use). Both ordinances became effective on August 11, 2016.

Mr. Belmer reported that on April 4, 2017, partially in response to a lawsuit filed by STR operators to invalidate the ordinances, the City Council adopted amendments to the Regulate and Ban Ordinance and Amortization Ordinance. He noted the amendments to the Regulate and Ban Ordinance included minor modifications to various operational criteria and adding new provisions for when revocation proceedings for an STR may be initiated. Additionally, he reported the amendments to the Amortization Ordinance included adding details and provisions to the hardship extension application process that would: (1) simplify the process without compromising its integrity, and (2) create “sequences” to the application process such as an “affidavit extension” and “capped extension” that address the hardship extension period.

Mr. Belmer advised the City has received and was currently processing 235 hardship extension applications, with the average application consisting of 782 pages. He advised the applications reflect the STR owners’ views that significant periods of time, beyond August 11, 2019, are required to recover the cost invested to establish the STR use. He advised that the City’s reviews suggest shorter periods of time are required and noted the divergent views in the number of years required to recover costs reflect the fact that there are significant outstanding disputed assumptions, questions, and variables associated with the documentation and calculation of amortization periods. Lastly, he advised that defending appeals and/or adjudicating potential litigation may take years of review, oversight, and administrative and judicial action to resolve, and engender significant expenses, fees, and costs. Mr. Belmer reported that in an effort to resolve the potential for additional dispute and litigation, Mayor Sidhu requested an ordinance to modify the termination and amortization period and process for certain defined pre-moratorium short term rentals. He provided the salient provisions of the proposed ordinance including the current ban on new STRs would remain, STR owners who only filed an affidavit extension would have to cease operations in 2019, a grandfather clause for STRs City Council Minutes of June 4, 2019 Page 37 of 42 operating outside of communities with restrictions to continue their operations, and made allowances for home sharing.

Mr. Belmer advised that the proposed amendment does not amend or modify any of the STR rules or enforcement provisions established in previous ordinances. He advised that the number of complaints received and the number of verified complaints have declined in recent years and STR owners have taken their management responsibilities very seriously to avoid the potential revocation of their permits.

MOTION: Mayor Sidhu moved to introduce the ordinance, seconded by Mayor Pro Tem Kring.

SUBSIDIARY MOTION: Council Member Barnes moved to postpone Item No. 31 to June 18, 2019, seconded by Council Member Brandman.

DISCUSSION: Council Member Faessel addressed public comments, noted Council had been prepared to include teleconferencing by Council Member Moreno, and suggested that Council Member Moreno’s inability to teleconference to the City Council meeting could support a postponement.

City Manager Chris Zapata advised that he received the notification from Council Member Moreno at 8:19 P.M. the previous evening that he would be unlikely to attend via teleconference.

Mayor Pro Tem Kring advised she does not support postponing this item. She stated there were proposed allowances for the sale of STR properties in Sherwood Village. She also advised that she lives near an STR and has not had any concerns.

MOTION: Council Member Barnes moved to postpone Item No. 31 to June 18, 2019, seconded by Council Member Brandman. ROLL CALL VOTE: AYES – 2 (Council Members Barnes and Brandman); NOES – 3 (Mayor Sidhu and Council Members Kring and O’Neil); ABSTAIN – 1 (Council Member Faessel); ABSENT – 1 (Council Member Moreno). Motion failed.

DISCUSSION: Council Member O’Neil believed the previously-approved ban was wrong for Anaheim, he did not support banning STRs, and expressed his support for the item as a good first step in addressing this subject. He noted the benefit of $4 million of TOT revenue to the City. Lastly, he felt Anaheim should celebrate the entrepreneurial spirit of STR owners.

Council Member Faessel explained he originally believed STRs would be more like home- sharing and expressed his concerns regarding STRs and their effect on neighborhoods. In response to Council Member Faessel’s inquiry, Mr. Belmer reported that at the height of STRs there were 400 permitted, however, there were currently 277 permitted and there was the possibility of having unpermitted STRs. Mr. Belmer continued that complaints were down moderately, regulations were helping mitigate issues, and the ordinance requires the existing operators to provide their contact information to neighbors.

In response to Council Member Faessel’s inquiry, Senior Assistant City Attorney Kristin Pelletier advised that “taking” is a claim brought by a property owner who alleges, due to an action of the City, they have been deprived of the use and the value of their property and arises in a permit context. City Council Minutes of June 4, 2019 Page 38 of 42

Council Member Barnes expressed her concerns, noting that STRs remove housing inventory from the rental market, making a scarce resource even harder to obtain and drives up rent prices.

Council Member Brandman recapped his involvement with the STR process and he felt, at the time, the STR process was not working. He expressed concerns regarding continuing the STR program, stated he could not go back on his previous vote to ban STRs, and he could not support this item.

Mayor Pro Tem Kring did not feel that STRs take away from the rental housing inventory and believed they provided a benefit to the City.

Council Member Faessel advised that District 5 has five (5) STRs. He advised that he drove by each property and spoke to the neighbors who expressed no concerns.

MOTION: Mayor Sidhu moved to introduce ORDINANCE NO. 6466 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM Amending Chapter 4.05 (Short-Term Rentals) of Title 4 (Business Regulation) of the Anaheim Municipal Code to modify the termination and amortization process and period for certain defined pre-moratorium short-term rentals, and finding and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15004, 15060(c)(2), 15060(c)(3), 15061(b)(3), 15301 and 15332 of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because it involves operation, permitting, licensing, and/or leasing of existing private structures or facilities involving negligible or no expansion of existing or former use, because there is no possibility that it may have a significant effect on the environment, because it is not a project, as defined in Section 15378 of the CEQA Guidelines, and because it is also the subject of categorical exemptions from CEQA, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES – 4 (Mayor Sidhu and Council Members Kring, Faessel, and O’Neil; NOES – 2 (Council Members Barnes and Brandman); ABSENT – 1 (Council Member Moreno). Motion carried; ordinance introduced.

32. Waive Council Policy 4.1 and approve an agreement with the Anaheim Chamber of Commerce, in an amount not to exceed $425,000, to provide services to the City for a one year period supplementing the City’s economic development and business promotion, attraction and retention activities, and authorize the City Manager to execute and administer the agreement.

Deputy City Manager Greg Garcia advised this item was being brought before the Council for consideration of renewing the City’s longstanding partnership with the Anaheim Chamber of Commerce (Chamber) to support various projects and activities on behalf of Anaheim businesses and promoting Anaheim as an ideal business location. He noted that for many years, the City has entered into professional service agreements with the Chamber to sponsor major business programs that promote the City’s business-friendly programs and services.

Mr. Garcia advised the proposed agreement with the Chamber was intended to extend and expand the City’s economic development objective of supporting business growth and economic development for the benefit it brings to residents and neighborhoods.

Mr. Garcia advised the scope of services for the agreement identifies an economic development plan that will supplement the efforts of city staff by providing a number of strategies, including: City Council Minutes of June 4, 2019 Page 39 of 42 outreach and programming aimed at business retention and expansion, implementation of a “Red Team Visit Program” to support local businesses, host programs to retain and attract new businesses to Anaheim, connect residents to Anaheim employers and job training opportunities, and provide key support on emerging economic development programs such as Opportunity Zones. He advised the scope of work also identifies a formal City sponsorship package for important Chamber-hosted business programs that showcase the vitality and diversity of Anaheim’s local economy. Lastly, he advised the scope of work includes branding, marketing, and promotion services to market the City of Anaheim’s business services and economic development programs regionally.

Mr. Garcia advised that, if approved, sufficient funding is available within the Community and Economic Development Department’s FY2019/20 budget for the planned services and activities as proposed.

DISCUSSION: Mayor Sidhu stated this item would resume the long-standing partnership the City has had with the Chamber of Commerce and will help with economic development.

Council Member Faessel reviewed a history of improvements in Anaheim involving the Chamber, expressed his support for the item, and felt the Chamber of Commerce is a great advocate for Anaheim.

Council Member Barnes expressed her concerns about the item’s placement on the agenda, why the Chamber of Commerce was being provided a sole-source contract without a Request for Proposal (RFP), and a lack of deliverables for the item. She also expressed concern regarding oversight of the agreement, the potential for campaign contributions, and the payment timeline.

In response to Mayor Pro Tem Kring’s inquiry, Mr. Garcia advised that over 50% of municipalities financially support their local Chamber of Commerce. She expressed concern with what other business/organization could respond to a RFP regarding working with and promoting businesses. She expressed her support for the item.

Council Member O’Neil cited the value of Chambers of Commerce and expressed his support for the item.

In response to Council Member Brandman’s inquiry, Mr. Garcia advised that Council Policy 4.1 was not waived in 2015 because the last agreement was a sponsorship agreement only for events. He noted the current agreement was for sponsorship and economic development activities which would require the policy be waived. Mr. Garcia continued that the Chamber of Commerce is the most qualified to provide economic development activities. Council Member Brandman gave context of the previous Enterprise Zone and partnership with the Chamber, expressed his support of the item, and felt it will benefit West Anaheim residents.

Council Member Barnes noted the Anaheim Youth Job Fair was sponsored by the Anaheim Workforce which shows the City can handle its own economic development. In response to Council Member Barnes inquiry, City Attorney Robert Fabela explained that there is a provision in the contract that if the Chamber of Commerce is subject to filing a Form 700, they would need to but he would not be able to make that determination from the four corners of the contract. He advised it can be looked at in the future. City Council Minutes of June 4, 2019 Page 40 of 42

In response to Council Member Barnes inquiry, Mr. Fabela advised that a refund provision could be made part of the agreement. He did note that the City always has the ability to pursue a Breach of Contract should the Chamber of Commerce not perform according to the contract.

MOTION: Mayor Sidhu moved to waive Council Policy 4.1 and approve an agreement with the Anaheim Chamber of Commerce, in an amount not to exceed $425,000, to provide services to the City for a one year period supplementing the City’s economic development and business promotion, attraction and retention activities, and authorize the City Manager to execute and administer the agreement, seconded by Council Member O’Neil. ROLL CALL VOTE: AYES – 5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O’Neil; NOES – 1 (Council Member Barnes); ABSENT – 1 (Council Member Moreno). Motion carried.

33. RESOLUTION NO. 2019-052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expressing support for the study of a transit connection between the Anaheim Resort and the Platinum Triangle, including consideration of a variety of existing and emerging transit technologies, and rescinding Resolution Nos. 2017-009 and 2018- 043 relating to the Orange County Transportation Authority Central Harbor Boulevard Transit Corridor Study and opposition to a street car system in the City of Anaheim.

DISCUSSION: Mayor Sidhu stated it was time to take a fresh look at the connectivity and mobility between the Anaheim Resort and the Platinum Triangle and he felt this item would help complete the vision of the area and provide mobility for all. He noted a Mayor’s Transit Options Taskforce would be formed comprised of himself, Mayor Pro Tem Kring, and Council Member O’Neil and they will look at all transit options. He stated investment in transit will also create jobs.

Public Works Director Rudy Emami stated that, at the request of Mayor Sidhu, the resolution of support for the study of a transit connection between the Anaheim Resort and the Platinum Triangle was being presented for Council consideration. Mr. Emami advised the transit connections along this corridor were previously studied as part of the Anaheim Rapid Connection (ARC) project and the OCTA Central Harbor Blvd. Transit Corridor Study (Harbor Study) which evaluated potential bus and streetcar systems. He provided a recap of the studies and City Council resolutions that have been completed in the interim, including previous opposition to a streetcar.

Mr. Emami reported that transit technology has continued to evolve since the studies have commenced. He noted the proposed resolution would allow for all transit technologies, including emerging and future technologies such as a trackless streetcar, to be considered. He advised the resolution also expresses opposition to any transit option that only considers a north/south transit option coming through the City that does not include an enhanced east-west transit connection between ARTIC and The Anaheim Resort. Lastly, he advised the resolution would rescind Resolution Nos. 2017-009 and 2018-043 in order to allow all transit options, including updated streetcar technology, to be evaluated.

Council Member Faessel stated he started attending meetings around 2010 regarding transportation options in the Resort and previously opposed streetcar options. He expressed his support of the current item, as it will allow the City to review other emerging transportation technologies, but stated concern with any tracked system on Katella Avenue. City Council Minutes of June 4, 2019 Page 41 of 42

In response to Council Member Barnes’ inquiry, Mr. Emami advised that an internal staff member would be conducting the initial phase of the study, with on-call help if needed. He clarified the system displayed was called the Trackless Streetcar System, reducing costs by eliminating overhead wires and tracks, allowing for level boarding, and providing flexibility.

Mayor Pro Tem Kring expressed her support for the item and was excited to see what transportation opportunities were available for Anaheim.

Council Member Brandman expressed his support for technology to connect areas of Anaheim. He addressed the previous actions by Councils in this regards, updated construction projects, and thought now was the time to review options again.

MOTION: Mayor Sidhu moved to approve RESOLUTION NO. 2019-052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expressing support for the study of a transit connection between the Anaheim Resort and the Platinum Triangle, including consideration of a variety of existing and emerging transit technologies, and rescinding Resolution Nos. 2017-009 and 2018-043 relating to the Orange County Transportation Authority Central Harbor Boulevard Transit Corridor Study and opposition to a street car system in the City of Anaheim, seconded by Council Member Barnes. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O’Neil; NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried.

REPORT ON CLOSED SESSION ACTIVITES: None

PUBLIC COMMENTS (non-agenda items):

Brian Kaye spoke regarding the recordings of police officers being made available to the public and his inability to obtain the recordings of his arrest.

COUNCIL COMMUNICATION/AGENDA REQUESTS:

Council Member Brandman requested the meeting be adjourned in memory of the 12 Virginia Beach municipal employees who were victims of a shooting and in memory of Nativo Lopez.

Council Member Faessel requested a future agenda item covering a visioning plan for State College Boulevard, concurred by Council Members Brandman and Barnes. He also requested a study of how transient occupancy taxes (TOT) from short-term rentals (STRs) could be allocated for specific uses, concurred by Mayor Sidhu and Council Member Brandman. He reported his attendance at the Anaheim Fire & Rescue Department graduation and promotion ceremony, along with Council Member O’Neil. He also noted his attendance at the Angels Luncheon with representatives and players from the West, East, and North Anaheim Little Leagues, the 18th Annual Art History Awards at Anaheim Elementary School District on May 29th, and the East Anaheim Little League closing ceremonies last Saturday.

Mayor Pro Tem Kring welcomed IPW, international travel trade show, to the Convention Center and City. In accordance with AB-1234, she reported the City paid for her hotel and airfare while attending the International Council of Shopping Centers in Las Vegas. She acknowledged Nativo Lopez and requested proclamations recognizing the Anaheim Japan Fair, concurred by Council Members O’Neil and Brandman, and the Palm Lane Charter School, concurred by Council Member O’Neil and Mayor Sidhu. City Council Minutes of June 4, 2019 Page 42 of 42

Council Member O’Neil requested the Mayor include a specific senior needs assessment within the Anaheim First community assessment. He also requested an agenda item to restate the City’s resolution regarding the 241/91 interchange to include new details, concurred by Council Member Brandman and Mayor Sidhu.

Council Member Barnes reported her attendance on June 1st at the Youth Job Fair conducted by the Workforce Development Department and the grand opening on May 24th of Origins Home Health Care on Knott Ave. She announced the upcoming District Nos. 1 and 2 community meeting on June 5th, 7:00 P.M., at Brookhurst Community Center, and the ARA meeting at the Phoenix Club regarding the impacts of illegal fireworks and possible solutions.

ADJOURNMENT:

With no further business to conduct, Mayor Sidhu adjourned the June 4, 2019 meeting in memory of the 12 shooting victims in Virginia Beach and Nativo Lopez at 2:07 A.M. on June 5, 2019.

Respectfully submitted,

Theresa Bass, CMC City Clerk