ANAHEIM CITY COUNCIL
REGULAR AND REGULAR ADJOURNED MEETING
OF NOVEMBER 16, 2021
The regular meeting of November 16, 2021 was called to order at 3:00 P.M. and adjourned for lack of a quorum. The regular adjourned meeting was called to order at 4:31 P.M. in the Council Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on November 10, 2021.
MEMBERS PRESENT: Mayor Harry Sidhu and Council Members Stephen Faessel, Gloria Ma’ae, Avelino Valencia, and Trevor O’Neil. Council Members Jose Diaz and Jose F. Moreno joined the meeting during Closed Session.
STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and City Clerk Theresa Bass
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
CLOSED SESSION: At 4:32 P.M., Mayor Sidhu recessed to closed session for consideration of the following:
1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: David Suarez v. City of Anaheim, Orange County Superior Court Case No. 30-2020 01147467 CU-OE-CJC
2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Marco Lucero v. City of Anaheim, Orange County Superior Court Case No. 30-2020 01154486 CU-OE-CJC
At 5:02 P.M., Mayor Sidhu reconvened the Anaheim City Council.
MEMBERS PRESENT: Mayor Harry Sidhu and Council Members Stephen Faessel, Jose Diaz, Gloria Ma’ae, Jose F. Moreno, Avelino Valencia, and Trevor O’Neil Invocation: Council Member Jose Diaz
Flag Salute: Mayor Pro Tem Stephen Faessel
Presentation: Presentation by the Orange County Housing Finance Trust Adam Eliason, Orange County Housing Finance Trust (OCHFT) Manager, thanked City Council for their leadership in joining OCHFT early on. He reported OCHFT was created in March 2019 and is a Joint Powers Authority between the County of Orange and a majority of the cities in the county. He reported the Board of Directors consists of five (5) city representatives and four (4) county representatives. He advised Mayor Pro Tem Faessel sits on the Board of Directors and is the Vice Chair.
City Council Minutes of November 16, 2021
Mr. Eliason explained the purpose of the Trust is to finance and help facilitate the construction of affordable housing and permanent supportive housing throughout the County of Orange and has a specific goal of contributing to the construction of 2,700 permanent supportive housing units by 2025.
He advised permanent supportive housing is intended for chronically homeless individuals and families that need more support than is found in a typical affordable apartment and are generally targeted to the lowest income levels.
Mr. Eliason reported since OCHFT formed, it has gained the support and membership of 23 cities in the county and has adopted a five-year strategic plan that shows how they will reach the goal of helping to fund 2,700 permanent supportive housing units. He advised the Trust has awarded $20,000,000 in funding to 13 projects throughout the county totaling over 900 new affordable and supportive housing units. He reported OCHFT has been active in reaching out to member cities, affordable housing developers, service providers, and the public with information about the needs and opportunities for affordable housing development within the county.
Mr. Eliason reported OCHFT has issued two Notices of Funding Available (NOFA), one in 2020 and one in 2021, that come from a variety of sources, including a grant received from the State General Fund, County of Orange Mental Health Services Act funds, a grant received from the State of California Local Housing Trust Fund Program, and the County of Orange General Fund. He advised the funding would not be coming into Orange County if the Trust did not exist and noted OCHFT has been able to bring nearly $5,000,000 a year into the county for affordable housing simply through its existence. He advised the most useful tool built so far is the development map on their website at https://ochft.org/ that tracks the number of units of new affordable and supportive housing in Orange County since 2018 when the county goal of 2,700 units was approved.
Mr. Eliason reported two (2) projects have been funded in Anaheim. He advised the first project is the Center of Hope Phase 1, which was awarded $2,400,000 in 2020, and the second project, Anaheim Midway, was awarded $1,300,000. He reported Anaheim Midway is expected to start construction in the middle of next year and noted the closing call process has started on the Center of Hope. He presented the administrative and capital funding sources for the 2021 budget and noted the member cities contributed to help OCHFT with administrative funding the first year. He reported OCHFT received two (2) grants that helped support the Trust on the administrative funding and did not have to ask any member city for administrative funding. He noted the County of Orange still contributes to some of OCHFT's administrative funding. He advised their capital funding comes from a variety of sources in and outside the county.
Mr. Eliason reported OCHFT would like to expand Trust membership to all 34 cities in the county and noted he is in discussions with two (2) non-member cities who are interested in joining the Trust. He advised they are setting some aggressive goals to approach the State and have been discussions with legislators about significant funding coming into the Regional Orange County Housing Finance Trust. He advised they are working on a philanthropy and donation policy that is almost ready to launch as well. He reported they are sitting at the table with service providers and others that are actively playing a part in helping to reduce homelessness and bring more affordable housing into Orange County.
Mayor Sidhu thanked Mr. Eliason for bringing the item forward and noted it is good to see the partnership with the Orange County Housing Finance Trust is bringing affordable housing, solving some of the homeless issues, and obtaining funding from State and local investors. He believed it is a great program and it shows in the fact that they only recently started and are already achieving some of their goals.
City Council Minutes of November 16, 2021
In response to Mayor Sidhu’s inquiries, Mr. Eliason reported there is a good group of affordable housing developers active in Orange County. He advised once the funding is secured, OCHFT coordinates with the County of Orange to make sure everyone active in the development community is notified. He explained part of the grant funding was used to conduct more outreach to developers that might be in surrounding counties to attract them to come into Orange County to look for land and project opportunities. He explained every affordable housing project has a variety of subsidy layers that come in to help make it work. He advised the OCHFT is one of those layers and noted all the projects they are a part of have a spectrum of affordability including extremely-low, very-low, and low- income residents that are part of the project. He advised the development community are experts at obtaining funding and noted the priority at OCHFT is the extremely-low income residents, which is the most challenging population to be able to fund. He explained the projects also get other sources of funding that allow them to go up to the higher income levels.
In response to Mayor Sidhu’s inquiries, Mr. Eliason reported it has been challenging to get affordable housing information to interested residents and they currently visit the Orange County and City of Anaheim website to see what is available. He advised developers work with property management companies to get the word out. He noted OCHFT is exploring how it can be a source of information on its website to be able to allow residents in the county to have a one-stop shop. He advised the development map on their website also has information about the project including the name of the developer, address, and how many units are available. He explained developers have requirements for how they accept or apply for residency of tenants. Mayor Sidhu expressed support for the great partnership between the County and the OCHFT.
Council Member Moreno noted this has been a game-changer to help develop permanent supportive housing.
In response to Council Member Moreno’s inquiries, Mr. Eliason advised OCHFT is following and adopting Orange County’s recommendation of 2,700 units and are being as aggressive as possible to reach the goal. He reported they are 40% of the way to the goal with three (3) years remaining. He advised after the goal is met, they would reassess the need. He reported more money has been made available to Orange County because of the OCHFT and he believed there would be a large allocation because there is unanimous support from the Orange County delegation in Sacramento.
He noted there is a consensus that Orange County has some best practices across the entire spectrum of affordable housing. He advised they have seen great results from the Be Well Clinic and the County's efforts in the mental health area to provide and support other nonprofits in the addiction recovery and mental health services area. He reported 80% of Orange County cities are part of the OCHFT, which has demonstrated to legislators from the last two (2) NOFAs that it can be done.
Council Member Valencia noted OCHFT is a phenomenal program and the City needs more housing affordability.
In response to Council Member Valencia’s inquiry, Mr. Eliason encouraged City Council and the public to look at the development map on their website to see where the units are being built. He explained in the initial NOFA, the funding is distributed equally to the North Service Planning Area (SPA), Central SPA, and South SPA as a premise. He advised OCHFT takes applications to determine the demand in each of those areas and the funds are distributed accordingly. He noted the goal is to distribute funding evenly across the County. He advised with the last NOFA, the funding was split evenly with two (2) projects in the North SPA, two (2) in the Central SPA, and two (2) in the South SPA.
City Council Minutes of November 16, 2021
Acceptance of Other Recognitions (To be presented at a later date):
Recognizing November 27, 2021, as Small Business Saturday At 5:24 P.M., Mayor Sidhu called to order the Anaheim Public Financing Authority, Anaheim Housing and Public Improvements Authority, and Anaheim Housing Authority (in joint session with the City Council).
ADDITIONS/DELETIONS TO THE AGENDAS: None
PUBLIC COMMENTS (all agenda items, except public hearing):
City Clerk Theresa Bass reported that a total of nine (9) public comments were received electronically prior to 2:30 P.M. related to City Council agenda items and matters within the jurisdiction of the Anaheim City Council. [A final total of 9 public comments were received electronically, distributed to the City Council, and made part of the official record]. – See Appendix.
Prior to receipt of public comments, an outline of rules for public comments and a brief decorum statement was provided by Ms. Bass.
Mark Richard Daniels expressed concern about Mayor Sidhu’s treatment of Council Member Moreno at the last City Council meeting. He requested additional information on how the Mickey and Friends parking structure was financed and to explore a gate tax for all entertainment venues in Anaheim. He expressed concern regarding the City’s finances and would like a better understanding of how the City would come out of its dark financial days. He encouraged City Council to agendize the discussion of the designation of Little Arabia and noted the residents of Anaheim support it.
Mike Robbins reported it has cost the City $1.5 billion in bonds to subsidize the Mickey and Friends parking structure, which was the largest parking structure in the world at the time. He advised the City received no benefit from it other than more wear and tear on its infrastructure. He expressed concern regarding Mayor Sidhu reading a prepared statement from a third party during Council Comments and inquired if that violated the Brown Act. He recognized the contribution of Indian immigrants to America. He expressed concern regarding campaign donations to certain Council Members and how that affects decisions. He expressed concern regarding Brown Act violations, Mickey and Friends parking structure subsidy, living wage Measure L, the Surplus Land Act violation investigation by the State, and the lack of affordable housing investigation by the State. He alleged that Mayor Sidhu takes elicit bribes, destroys public comments, votes against the lower caste, gives away public land, and votes for other corrupt Councilmembers. He hoped to see the people responsible for these crimes go to jail or be replaced.
Jeanine Robbins addressed Mayor Sidhu’s behavior at the last City Council meeting. She noted the City Charter states that all Council Members are equal but he seems to have difficulty comprehending that concept. She noted he tried to stop Council Member Moreno from asking simple questions of the Disney representative at the last meeting. She reported that when Tom Daly became Mayor in 1992 he formed a co-dependent, incestuous relationship with Disney that has continued through the service of Curt Pringle into the present-day term of Mayor Sidhu. She noted this corruption has left the City in a unique position of being dependent almost wholly on a single entity. She advised Anaheim residents need to know the City is $1 billion in debt, is being sued for the illegal sale of Anaheim Stadium, is being investigated by two (2) State agencies, and has been deemed a sinkhole city by State Auditors. She noted residents also need to know the City paid for and continue to pay for the Mickey and Friends parking structure. She advised not all taxes from the Resort area go into the City Council Minutes of November 16, 2021
General Fund but go to pay back the bonds to finance the parking structure. She reported the City makes $12 per year from the parking structure and Disney makes $300,000 per day for parking. She believed the relationship between the City and Disney has not benefitted Anaheim residents and those employed at the Resort. She also did not believe Disney has invested enough of its resources into building a sustainable economic path for the City and those employed in the Resort. She noted Disney's refusal to pay their employees a living wage has left many resort workers poverty-stricken and homeless. She inquired where Mayor Sidhu obtained the pre-written speech he recited during Council Comments at the last meeting and believed it violates the Brown Act.
Kelly Brogdon addressed the property at 1442 North Dale Avenue, which is located in the middle of a townhome complex with 160 units. She advised when it was constructed in the early 1970s, it only required 164 parking spaces, which are now not enough. She reported the farmhouse, which was an Orange County property at the time, is located in the middle of the complex and is being sold. She believed the property is zoned Rural R1 and during the community meeting was told there would be an additional easement that would go right through the townhome complex. She requested Council Member Diaz investigate the easement that was abandoned over 50 years ago.
Joleen Hoang expressed concern regarding Mayor Sidhu’s conduct at the City Council meeting. She advised Council Member Moreno was just trying to ask basic questions. She noted the City Council unanimously agreed that Disney complied in good faith with the terms and conditions of the Development Agreement. She expressed concern regarding Disney’s overarching influence over the City and its leadership. She referenced the recent court ruling exempting Disney from Measure L and noted the measure was democratically voted on and approved by residents. She alleged that six (6) of the seven (7) Councilmember campaigns received massive funding from one of the largest special interest groups in the country obscured behind a Political Action Committee that claims to act for the industry of Anaheim. She referenced a 2018 report by Occidental College which reported that 11% of Disneyland employees experienced homelessness in the previous two years, 68% were food insecure, and 73% of workers advised they do not earn enough for basic living expenses. She reported Disneyland's impact on Anaheim's exponential growth since 1965 is not in dispute but the belief that they can continue to take from the City without limit is quickly becoming a cause for the people. She expressed disbelief that the hundreds of millions given to Disney on the City's dime cannot be called subsidies and that Disney can jump through legal loopholes to deny workers a living wage during and post-pandemic. She advised the Council needs to take a stance on Measure L.
Aneesah Muhammad encouraged City Council to officially designate the area known as Little Arabia.
She advised it is a welcoming cultural and business area that attracts people from different ethnic backgrounds with ethnic markets, restaurants, cafes, religious centers, clothing stores, hair salons, and much more. She advised Little Arabia is not just a place to eat but a place to feel at home. She advised over the years it has turned into a cultural destination and a foodie location. She advised that in supporting the designation of Little Arabia, the Anaheim City Council would empower the Arab American and immigrant-owned small businesses, hundreds of their employees, and their families.
She noted they deserve to be recognized and deserve to be represented. She encouraged City Council to state their official stance on the Little Arabia designation.
Amin Nash, Arab American Civic Council, expressed support for agendizing the discussion of the Little Arabia designation. He thanked Council Members Ma'ae and Moreno for visiting Little Arabia and urged other members of City Council to visit the area and he looked forward to having a dialogue. He hoped when other members of the City Council visit they could see what the district and people are capable of, and what it means to Anaheim as a whole. He believed the narrative should change to see Little Arabia be grown as a garden. He believed trees should be added to the area to make it more attractive for people to walk and visit. He also believed having a mix of English and City Council Minutes of November 16, 2021
Arabic signage would make it more welcoming for visitors. He noted Little Arabia could help the City by providing translation services for those residents who need them. He welcomed those Councilmembers who have visited to continue to visit the area and welcomed those who have not visited yet.
Wes Jones expressed support for the recognition of Little Arabia. He reported the Mickey and Friends parking structure was built under the 1996 Development Agreement and noted the bonds were worth $1.5 billion. He advised the estimated gross income is $90,000,000 per year for Disneyland with the net income being $60,000,000. He noted Anaheim residents do not see any of that money. He referenced Council Member O’Neil’s comments at the last City Council meeting that Disneyland provides tax revenue to the City and advised that tax money is completely offset by the bond payments the City makes.
Fred Sigala Jr. expressed concern that City Council will not listen to residents who are calling for the discussion of designation for Little Arabia. He advised the City just named a drive after Esther Wallace and noted they must be for things she did outside of the West Anaheim Neighborhood Development (WAND) Council. He expressed concern that the City would rather honor someone who made intolerant remarks about and fought against better representation for minorities than help a deserving minority community recover from a pandemic. He advised many members of Little Arabia have called for the designation and have invited City Council to visit the area. He thanked Council Member Ma'ae for having meetings with members of the Little Arabia community and hoped it was not an attempt to stall the process by placating anyone. He advised residents in the Cantada neighborhood seem very placated now even with the lack of affordable housing and the project going out behind them. He questioned if there was a plan to give those residents anything they asked for to protect the interest of a greedy developer. He believed next year's election would pit special interest dollars against the will of residents. He advised his goal is to inform residents about the City Council's corruption.
Manuel Hernandez restated a speech he gave at the Montebello City Council to bring public awareness to the residents of Anaheim. He reported on February 12, 2000, a Montebello Police Officer shot Jason Rodriguez in the back of the head while unarmed. He alleged that he was targeted with mind control attacks and he started experiencing dizziness, headaches, and depression. He advised action must be taken in the form of public awareness to bring to light that mental illness is created by government agencies to create profit for big pharma. He reported he would offer solutions on how to eradicate mental illness using public awareness at the next City Council meeting.
Paul Hyek reported there is a state law that states a voucher can be accepted anywhere in the County. He advised the supportive housing on La Palma Avenue has been turned into a mini-prison and noted no one can walk into the office without a key card. He believed there needed to be a management change at Mercy House and Bridges at Kraemer Place. He reported the Orange County Probation Department cannot get beds at Bridges at Kraemer Place. He believed it should be run like a Disaster Preparedness Program.
Cecil Jordan Corkern reported the City has much to learn from the pandemic. He reported he is writing a report on how to keep Disneyland attendees safe. He noted he is also working on a report about the Disney Halloween Fun Times events. He would like his reports to be made public so residents can read them.
Bryan Kaye reported the Brady Rule requires government officials to disclose any exonerating, exculpatory, or favorable evidence about the defendant in cases. He advised that this has not happened in his case. He reported Anaheim has a Police Review Board that has been shown City Council Minutes of November 16, 2021
exculpatory evidence against him. He advised City Attorney Robert Fabela reported he resisted arrest. He reported the Anaheim Police Department is committing crimes that are being overlooked.
CITY MANAGER’S UPDATE:
City Manager Jim Vanderpool announced three items: 1) Anaheim Public Utilities is hosting a Holiday Lights Drive Through and Toy Drive on Saturday, November 20, 2021, 10:00 A.M. to 1:00 P.M. on Center Street Promenade, where residents can exchange an older string of lights for newer LED lights and donate new, unwrapped toys to benefit Anaheim youth. Public Utilities is partnering with the Anaheim Union High School District’s Workability program to provide training opportunities for special education students. 2) The Anaheim Ducks recently celebrated a Dia de Los Muertos themed game on November 2, 2021, which featured a commemorative mural painting by Anaheim artist Jose Ortiz, a first-ever Spanish language radio broadcast, themed blanket giveaway, and special altar displays from the Mexican Consulate; noting it was the second most attended home game of the season after opening night. 3) The Anaheim Public Library will celebrate a Victorian Christmas open house at Founders Park on Saturdays, December 4, 2021, December 11, 2021, and January 11, 2022, 9:00 A.M. to 12:00 P.M., where visitors can experience how the holidays were celebrated during the Victorian era and learn how to size and wrap oranges in holiday tissue paper as was done by packinghouse workers shipping Valencia oranges to the East Coast.
At 6:05 P.M., Mayor Sidhu recessed the Anaheim City Council, Anaheim Housing Authority, and Anaheim Housing and Public Improvements Authority to address the Anaheim Public Financing Authority agenda.
At 6:06 P.M., Mayor Sidhu reconvened the Anaheim City Council (in joint session with the Anaheim Public Financing Authority).
PUBLIC FINANCING AUTHORITY - END OF CONSENT (joint session with CITY COUNCIL)
3. Consider resolutions by the Anaheim Public Financing Authority (APFA) and Anaheim City Council, separately, approving the issuance of not to exceed $280,000,000 of APFA Lease Revenue Bonds, in one or more series; and related actions (2014 Convention Center Bond Refinancing).
Public Financing Authority Action:
3-A. RESOLUTION NO. APFA-2021-003 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the execution and delivery of a Ground Lease, a Lease Agreement, an Indenture, an Escrow Agreement, and a Bond Purchase Contract in connection with the issuance of Anaheim Public Financing Authority Lease Revenue Bonds (Convention Center Refunding), Series 2021A (federally taxable), authorizing the issuance of such bonds in an aggregate principal amount of not to exceed $280,000,000, authorizing the distribution of a Preliminary Official Statement and an Official Statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions.
City Council Action:
3-B. RESOLUTION NO. 2021-104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the execution and delivery by the City of a Ground Lease, a City Council Minutes of November 16, 2021
Lease Agreement, an Indenture, a Purchase Contract and a Continuing Disclosure Agreement in connection with the issuance of Anaheim Public Financing Authority Lease Revenue Bonds (Convention Center Refunding), Series 2021A (federally taxable), approving the issuance of such bonds in an aggregate principal amount of not to exceed $280,000,000, authorizing the distribution of a Preliminary Official Statement and an Official Statement in connection with the offering and sale of such bonds and authorizing the execution of necessary documents and certificates and related actions.
Finance Director Debbie Moreno reported the item is related to the refinancing of outstanding debt for the 2014 Convention Center expansion and other neighborhood improvement bonds. She advised the current market conditions have provided the opportunity to refinance the outstanding balance of $233,000,000 with taxable refunding bonds to provide significant savings to the General Fund. She reported it is currently estimated to be approximately 10% of Net Present Value (NPV) basis resulting in approximately $1,500,000 in annual savings to the General Fund through the expiration date of the bonds on July 1, 2046. She explained the savings would be recognized evenly over the term of the bonds and the maturity date has not been extended other than by two (2) months to align with other debt service payment dates for administrative ease. She clarified this is a straightforward refinancing to take advantage of low-market rates resulting in approximately $1,500,000 a year in savings based on current market conditions.
DISCUSSION: Mayor Sidhu advised the items are common-sense measures to save the City money and are similar to a home refinance for saving money. He advised debt financing for the Convention Center has been a good investment for diversity and noted it has helped keep and attract events and bring visitors who stay in hotels and spend money in Anaheim. He reported the pandemic closed the Convention Center in 2020 and 2021 for 13 months and it highlighted the importance of the facility to the City. He advised sports, conventions, and conferences have returned to the Convention Center since April and noted 2022 would be an even stronger year. He explained the item is not about the role the Convention Center plays for the City but about prudent financial management and saving $1,500,000 per year for the next 15 years. He advised the money freed up could be used in Anaheim’s neighborhoods.
MOTION: Mayor Sidhu moved to approve resolutions by the Anaheim Public Financing Authority (APFA) and Anaheim City Council, separately, approving the issuance of not to exceed $280,000,000 of APFA Lease Revenue Bonds, in one or more series; and related actions (2014 Convention Center Bond Refinancing), seconded by Council Member O’Neil.
DISCUSSION: Council Member Moreno thanked Ms. Moreno for bringing the item to the Public Finance Authority and City Council.
In response to Council Member Moreno’s inquiry, Ms. Moreno explained the Public Finance Authority is approving the issuance of not to exceed $280,000,000 of APFA Lease Revenue Bonds because the bonds are an advance refunding and are not currently callable, so in order to defease them they would be placed in escrow with the proceeds from the issuance. She advised those proceeds have to be enough with interest earnings they would earn over time before they could be officially called to have sufficient money when the bonds are called. She explained the interest is being borrowed as well but the City still saves $1,500,000 per year. She further explained the bonds are $233,000,000 but over time, there is interest that would have to be paid. She noted the bonds can be defeased but cannot be called so the money needs to be put away so there is enough money to pay the principal and interest on the outstanding debt when it is called. She explained the bonds cannot be called until May 2024 so the funds have to be put in escrow.
City Council Minutes of November 16, 2021
Council Member Moreno noted Mayor Sidhu likened this transaction to a mortgage and inquired about the expected amount of the new bond debt.
Ruth Pan, Vice President, Goldman Sachs, reported the bonds being refunded have a 5% interest rate and become callable at par in May 2024. She advised because interest rates today are so much lower than when the bonds were issued, by refunding the bonds today they are being defeased to that call date in May 2024. She explained that means the escrow account will pay the interest on the existing bonds of 5% to the call date. She further explained the new bonds being issued to refund the existing bonds have a slightly higher principal amount. She advised in the current market the numbers being seen are based on current interest rates to fund all of the outstanding bonds. She noted they expect to issue approximately $255,000,000 of new bonds to refund the existing bonds and advised the not to exceed is in case there is a market fluctuation between now and pricing. She noted they are looking to price as expeditiously as possible to reduce the City's exposure to any changes in the interest rate. Lastly, she explained in the current market it is $255,000,000 to take out $233,000,000.
Council Member Moreno noted the current principal is $233,000,000 but noted this action would increase the principal but the monthly payment would come down because the interest rate would offset that. Ms. Pan explained the City’s principal would be about $20,000,000 higher but the interest rate is significantly lower. She advised the coupon on the existing bonds is 5% and the current interest rates are 3.5%.
In response to Council Member Moreno’s inquiries, Ms. Moreno reported the current bond payment today is $16,500,000 and would be approximately $15,000,000 after refinancing depending on the market conditions that day. She advised the total of bond payments today would be $406,000,000 and after refinancing it would be $364,000,000. She confirmed the City would be saving $40,000,000 overall over the next 25 years.
In response to Council Member Moreno’s inquiries, Ms. Moreno confirmed the bond is coming out of the General Fund. She advised the revenues attributable to this bond are the lease payments between the City and the Public Finance Authority. She inquired if Council Member Moreno was referring to additional revenues the City thought it would get from Transient Occupancy Tax (TOT) at the Convention Center.
Council Member Moreno advised that Mayor Sidhu noted the expansion of the Convention Center would mean more revenue and TOT for the City along with larger conventions. He advised the public was told that larger conventions would keep the City competitive in the market which presumably turns into TOT. He presumed modeling was conducted of how much additional revenue would be brought to the City because the City is paying an additional $16,000,000 on a bond that was supposed to expire in 2021 and be paid off.
In response to Council Member Moreno’s inquiry, Ms. Moreno clarified the revenue would be attributable to the expansion and not to the bonds. She advised that in 2014 the low end of projected revenue was $280,000,000 on the low end and $477,000,000 on the high end. She noted staff looked at data provided by Visit Anaheim for 2017, 2018, and 2019 and advised those amounts were slightly lower than the initial projection but given that it was in its first several years of operation is not completely surprising. She reported the City is doing better than the status quo and noted that it was stated that the City would lose money if it did not expand the Convention Center. She noted it would take the City a little more time to understand the full impact of the pandemic.
City Council Minutes of November 16, 2021
In response to Council Member Moreno’s inquiry, Ms. Moreno confirmed the City started paying $16,500,000 per year on the bond in 2017 and noted the question is going back to the revenue from the expansion and not the item that is agendized. Council Member Moreno advised the presumption was that the City would be making revenue from that expansion Council Member O’Neil raised a point of order and advised Ms. Moreno already indicted the conversation was starting to stray from the discussion of the agendized item of a refinance and into revenue projections. He was uncertain if it was pertinent to the discussion as it was agendized. Mayor Sidhu requested Council Member Moreno stay on course with the actual agenda item.
Council Member Moreno noted Mayor Sidhu introduced the idea that this would be a financial boom for the City when it was first done and would continue to be. Mayor Sidhu clarified he stated that future revenue would increase and did not give any details. He advised future revenue would be looked at after the City comes out of the pandemic. He again requested Council Member Moreno to stay on course and noted the item is about the financing of the bonds.
Council Member Moreno advised there is a point of order that he is speaking outside of the agenda item and not being allowed to explain why it is within the agenda. He advised project revenues suggest to residents that the City is expecting to make more money because of the refinance. He explained residents need to understand what those payments look like in relation to the revenue. He advised Mayor Sidhu is suggesting to residents that the City is going to make a profit and he is trying to determine if that is accurate. He noted the agenda item he is speaking to is related to the financing of the bond, the refinancing, and understanding the basics of the original financing. Mayor Sidhu advised Council Member Moreno could speak to the financing but could not speak to the future revenues, as it was not agendized.
City Attorney Robert Fabela advised he heard Ms. Moreno indicate that one of the questions asked was not related to the refinancing item. He advised it is a complicated discussion so he wanted to see if there was some basis for that and noted if that is the case there would be some argument that the discussion would be going into something that has not been properly agenda. He requested Ms.
Moreno explain in further detail.
Ms. Moreno explained the item is to refinance certain obligations. She advised some assumptions were made in deciding to expand back in 2014 and issue bonds. She explained staff could provide some basic information and the long-term estimates are never going to be quite right but they gave an idea of the magnitude at that time. She advised the discussion can happen in the future.
Mr. Fabela noted he believed what is being said is that a re-litigation of the expansion idea is probably not what is agendized but some brief background questions to help form Council Member Moreno’s decision would be fair but cautioned him to not go too far down that path because it would probably be questioned.
Council Member Moreno clarified he was not re-litigating it because the bond could not be undone and noted it would be grandstanding to try to do so. He inquired if the City is authorizing the execution of a ground lease that involves money. Ms. Moreno clarified that the ground lease is simply the mechanism between the Public Finance Authority and the City to be able to issue the bonds. She further explained it is the mechanism used in California and has not changed. Council Member Moreno acknowledged the mechanism has not changed but the Public Finance Authority is voting to authorize it so he believed the topic is agendized. He explained he is trying to determine the facts based on Mayor Sidhu’s introduction and advised they are being asked to vote on a refinance that City Council Minutes of November 16, 2021
resets the City’s annual bond payment so he would like to have more information about the current bond and the current payments and believed this information was relevant.
Council Member Moreno explained his interest is to understand the gap between what can be attributed as revenue to the expansion compared to the bond payment being made as a result of the expansion to understand how the refinance closes that gap further for the City or expands it.
Council Member O'Neil called for the orders of the day. Mayor Sidhu advised Council Member Moreno to conclude his comments and Council Member O'Neil advised he respects the Mayor’s rulings.
Convention Center Executive Director Tom Morton explained the genesis of the expansion was to keep large conventions but also to attract new and concurrent events because there was no meeting space to complement the exhibit space. He advised this would not have moved forward without the creation of the Anaheim Tourism Improvement District (ATID). He explained the hotels in the district self-assessed themselves 2% of hotel room rent to fund the marketing entity which is currently Visit Anaheim, or the Anaheim/Orange County Convention and Visitors Bureau at the time, because they were being provided a formula of General Fund revenue. He advised by creating the ATID, General Fund revenue was freed up to be used for items like this.
In response to Council Member Moreno’s earlier question, Mr. Morton reported in 2018, including the ATID after debt service, there was a net revenue to the General Fund of $26,000,000. He reported in 2019, which was the last year pre-pandemic, there was a net revenue to the General Fund of $29,000,000 after the debt service was paid. He explained that includes revenue based on visiting time data, visitors staying in hotels, the ATID revenue which the City saved, and the net revenue after the debt service was paid. He clarified that the revenue in 2018 was $37,900,000 with a debt service of $11,800,000, which is a net revenue of $26,100,000. He advised that in 2019 the revenue was $41,200,000 with a debt service of $11,800,000 for net revenue to the General Fund of $29,400,000.
In response to Council Member Moreno’s inquiries, Mr. Morton explained the data is combined from Visit Anaheim on visitor data associated with the expansion and the Finance Department in terms of the ATID or the previous funding for the marketing entity, which is a formula of 12% of 12/15th of the TOT at the time. He confirmed that due to the expansion of the Convention Center and to retaining larger convention business, the City made a net revenue of over $50,000,000. He advised the Convention Center was never able to hit a stabilized year due to the pandemic but noted the building was performing very well. He advised while he is not a finance person it looks like the Convention Center would meet the projections of the consultant sooner because the ATID piece helped out with the financing. He explained the ATID 2% self-assessment is being divvied up, with 75% going to the marketing entity and 25% going towards transportation-related items. Lastly, he confirmed in 2017 and 2018 the City made over $50,000,000 in net revenue thanks to the expansion of the Convention Center, keeping those large pieces of business, and attracting new events.
In response to Council Member Moreno's inquiry, Ms. Moreno advised the General Fund's outstanding debt is currently $425,000,000 and would increase by approximately $30,000,000 given the market conditions when the refinance occurs.
Council Member Diaz advised the convention industry is very competitive and advised Anaheim has to compete with cities like Miami, Orlando, New Orleans, San Antonio, San Diego, and Chicago. He noted to be competitive the facilities need to be continually renovated.
City Council Minutes of November 16, 2021
In response to Council Member Diaz’s inquiry, Ms. Moreno confirmed the City is going to pay the bonds in the same amount of time and save $1,500,000 per year based on the market conditions today.
Council Member Valencia expressed appreciation for the dialogue and the information from the City staff. In response to Council Member Valencia’s inquiry, Mr. Morton confirmed the Convention Center expansion in the resort district yielded an increase in revenue for the City. Ms. Moreno confirmed that refinancing the bonds would save the City $1,500,000 per year for 25 years, which is the remaining life of the bond.
Public Financing Authority Action:
3-A. RESOLUTION NO. APFA-2021-003 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the execution and delivery of a Ground Lease, a Lease Agreement, an Indenture, an Escrow Agreement, and a Bond Purchase Contract in connection with the issuance of Anaheim Public Financing Authority Lease Revenue Bonds (Convention Center Refunding), Series 2021A (federally taxable), authorizing the issuance of such bonds in an aggregate principal amount of not to exceed $280,000,000, authorizing the distribution of a Preliminary Official Statement and an Official Statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions.
MOTION: Chairman Sidhu move to approve RESOLUTION NO. APFA-2021-003 A
RESOLUTION OF THE BOARD OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the execution and delivery of a Ground Lease, a Lease Agreement, an Indenture, an Escrow Agreement, and a Bond Purchase Contract in connection with the issuance of Anaheim Public Financing Authority Lease Revenue Bonds (Convention Center Refunding), Series 2021A (federally taxable), authorizing the issuance of such bonds in an aggregate principal amount of not to exceed $280,000,000, authorizing the distribution of a Preliminary Official Statement and an Official Statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions, seconded by Authority Member O’Neil. ROLL CALL VOTE: AYES – 6 (Chairman Sidhu and Authority Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSTAIN – 1 (Authority Member Moreno). Motion carried.
City Council Action:
3-B. RESOLUTION NO. 2021-104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the execution and delivery by the City of a Ground Lease, a Lease Agreement, an Indenture, a Purchase Contract and a Continuing Disclosure Agreement in connection with the issuance of Anaheim Public Financing Authority Lease Revenue Bonds (Convention Center Refunding), Series 2021A (federally taxable), approving the issuance of such bonds in an aggregate principal amount of not to exceed $280,000,000, authorizing the distribution of a Preliminary Official Statement and an Official Statement in connection with the offering and sale of such bonds and authorizing the execution of necessary documents and certificates and related actions.
MOTION: Mayor Sidhu move to approve RESOLUTION NO. 2021-104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the execution and delivery by the City of a Ground Lease, a Lease Agreement, an Indenture, a Purchase Contract and a Continuing Disclosure Agreement in connection with the issuance of Anaheim Public Financing Authority Lease Revenue Bonds (Convention Center Refunding), Series 2021A (federally taxable), approving the issuance of such bonds in an aggregate principal amount of not to exceed $280,000,000, authorizing City Council Minutes of November 16, 2021
the distribution of a Preliminary Official Statement and an Official Statement in connection with the offering and sale of such bonds and authorizing the execution of necessary documents and certificates and related actions, seconded by Council Member O’Neil. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSTAIN – 1 (Council Member Moreno). Motion carried.
At 6:42 P.M., Mayor Sidhu adjourned the Anaheim Public Financing Authority and recessed the Anaheim City Council to address the Anaheim Housing and Public Improvements Authority and Anaheim Housing Authority agendas.
At 6:43 P.M., Mayor Sidhu reconvened the Anaheim City Council.
At 6:43 P.M., Council Member Moreno excused himself and left the meeting.
CONSENT CALENDAR: At 6:43 P.M., the consent calendar was considered with Council Member O’Neil pulling Item Nos. 14 and 15 for separate discussion and consideration.
Regarding Item No. 21, Council Member Diaz disclosed that the City of Orange is his employer but, upon consultation with the City Attorney, he was able to participate and vote on the item.
MOTION: Mayor Pro Tem Faessel moved to waive reading of all ordinances and resolutions and adopt the balance of the consent calendar, in accordance with reports, certifications, and recommendations furnished each City Council Member and as listed on the consent calendar, seconded by Council Member Ma’ae. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried.
8. Receive and file the Library Board Report dated November 16, 2021; minutes of the Public Utilities Board meeting of September 22, 2021; and minutes of the Sister City Commission meetings of June 28, 2021, August 23, 2021, and September 27, 2021.
9. Determine, on the basis of the evidence submitted by PT Metro LLC, that the property owner has complied in good faith with the terms and conditions of Amended and Restated Development Agreement No. 2005-00008 for the 2021 review period for the A-Town mixed- use project located in the Platinum Triangle.
10. Determine, on the basis of the evidence submitted by Kaiser Foundation Hospitals, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2007-00003 for the 2021 review period for the Kaiser Hospital Campus Project, located at 3400-3450 East La Palma Avenue and 959-1001 North Grove Street.
11. Determine on the basis of the evidence submitted by STC GardenWalk LLC; GardenWalk Hotel I, LLC; and, Westgate Resorts Anaheim, LLC, that the property owners have complied in good faith with the terms and conditions of each of their respective portions of Development Agreement No. 99-01 for the 2021 review period for the Anaheim GardenWalk Project, located in The Anaheim Resort; that the COVID-19 pandemic warrants an extension of time to comply with the obligations of Development Agreement No. 99-01, and that the deadlines identified in said development agreement shall toll for one year.
City Council Minutes of November 16, 2021
12. Determine, on the basis of the evidence submitted by Good Hope International, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2016-00001 for the 2021 review period for the 1700 South Harbor Boulevard Hotel Project located in The Anaheim Resort.
13. Accept the bid from ConvergeOne, Inc., in the amount of $959,992.43 plus applicable tax, for the purchase of Cisco network equipment and support for use by the Information Services Division throughout the city in accordance with Bid #9542.
16. Approve Master Agreements with six contractors, in the not to exceed amount of $500,000 per Work Order Package with a total not to exceed contract amount of $1,000,000 per contract year per contractor, for demolition, disposal/debris removal, erosion and sediment control, and immediate response as-needed services to support the Public Works Department, each for a two year term with two, two-year optional renewals; authorize de minimis changes that do not substantially change the terms and conditions of the Agreements, so long as such changes are determined to be de minimis by the City Attorney; and authorize the Director of Public Works, or designee, to execute the agreements and take the necessary or advisable actions to implement and administer the agreements (AD Improvements Inc.; Advantage Demolition & Grading, Inc.; Interior Demolition, Inc.; Macro-Z-Technology; Patriot Environmental Services, Inc.; and Three D Service Company, Inc.).
17. RESOLUTION NO. 2021-105 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Public Works or designee to file an application with the Federal Transit Administration, an operating administration of the United States Department of Transportation, for federal transportation assistance authorized by 49 U.S.C.
Chapter 53; Title 23, United States Code, or other federal statutes administered by the Federal Transit Administration and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget for fiscal year accordingly [FY 2021 Low or No Emission Grant Program (Low-No Program) (Federal Assistance Listing: 20.526); applying as Lead Agency on behalf of Anaheim Transportation Network].
18. RESOLUTION NO. 2021-106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a public utility easement located at 1250 North Euclid Street pursuant to California Streets and Highways Code Section 8330, et seq. - Summary Vacation (ABA2021-00409).
19. RESOLUTION NO. 2021-107 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 2021 Community Policing Development (CPD) Crisis Intervention Teams Grant Program, authorizing the City Manager and Police Chief, or their designees, to execute all required grant documents, and increasing the budget for the Fiscal Year 2021-22 accordingly (grant funds in the amount of $250,000).
Authorize the City Manager and Police Chief, or their designees, to execute all grant agreements and other required documents, and take any actions necessary to implement such grant agreements and other required documents; and increase the Police Department's FY 2021/22 revenue and expenditure appropriations by $250,000.
20. RESOLUTION NO. 2021-108 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing the dates and times of regular meetings of the Anaheim City Council for the 2022 calendar year.
City Council Minutes of November 16, 2021
21. ORDINANCE NO. 6517 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to Zoning (Reclassification No. 2007-00203) (reclassifying the Stadium Sliver parcel, located at 2000 East Gene Autry Drive, to the “PR” Public Recreational and the Platinum Triangle Mixed Use (PTMU) Overlay Zone).
ORDINANCE NO. 6518 (INTRODUCTION) AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM adding the Stadium Sliver parcel to District 5 upon completion of annexation from the City of Orange.
Determine that the previously-approved Negative Declaration accurately disclosed the environmental effects of the subject reclassification pursuant to Section 15162 of the California Environmental Quality Act Guidelines.
22. ORDINANCE NO. 6516 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to Zoning (Reclassification No. 2020-00331) (DEV2019-00013) (removing the Mobile Home Park (MHP) Overlay Zone from the project site) (156 unit single-family residential project located at 200 West Midway Drive) (introduced at the City Council meeting of November 2, 2021, Item No. 12).
Determine that a streamlined review pursuant to Section 15183.3 (Streamlining for Infill Projects) of the California Environmental Quality Act (CEQA) Guidelines is the appropriate environmental review for this request under CEQA; and, that the proposed Reclassification No. 2020-00331 would not have any significant effects on the environment that either have not already been analyzed in prior environmental impact reports or that are more significant than previously analyzed, or that uniformly applicable development policies would not substantially mitigate.
23. Approve minutes of the City Council meeting of March 23, 2021.
END OF CONSENT CALENDAR:
14. Approve the Termination of Agreement with The Clubhouse at Anaheim Hills, LLC for the concession services at Anaheim Hills Golf Course with an effective date of January 2, 2022; pursuant to which The Clubhouse will pay the city the balance of the funds in the accrual reserve and 40% of all event contract pre-payments and the city will pay The Clubhouse for certain inventory and non-refundable pre-committed vendor expenses.
DISCUSSION: Council Member O’Neil requested a combined discussion of Item Nos. 14 and 15. He advised the items are relative to the contract the City has with the operator of the banquet center at the Anaheim Hills Golf Course known as The Clubhouse. He reported Orin Abrams has had that contract since the Clubhouse was built in 2002 and has been a fixture in Anaheim Hills hosting weddings, events, and celebrations and expressed happiness for his decision to retire. He thanked Mr. Abrams for all of the great work he has done and for his valued partnership with the City. He wished him and his family well for all of his future endeavors.
MOTION: Council Member O’Neil moved Item Nos. 14 and 15, seconded by Mayor Pro Tem Faessel.
City Council Minutes of November 16, 2021
DISCUSSION: Mayor Pro Tem Faessel echoed the sentiments of Council Member O'Neil. He reported he sat on the Anaheim Community Foundation with Mr. Abrams for several years and noted he was always a great Anaheim supporter especially for the children. He advised Mr. Abrams offered the facility at greatly reduced prices for any number of non-profits in the City. He expressed appreciation for everything Mr. Abrams has done to maintain the Clubhouse and wished him well in his future endeavors.
MOTION: Council Member O’Neil moved to approve the Termination of Agreement with The Clubhouse at Anaheim Hills, LLC for the concession services at Anaheim Hills Golf Course with an effective date of January 2, 2022; pursuant to which The Clubhouse will pay the city the balance of the funds in the accrual reserve and 40% of all event contract pre-payments and the city will pay The Clubhouse for certain inventory and non-refundable pre-committed vendor expenses, seconded by Mayor Pro Tem Faessel. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried.
15. Approve the First Amendment to Agreement with AGC Management, LLC (AGC) for golf course operation services and golf course maintenance services to add food and beverage services at Anaheim Hills Golf Course with an effective date of January 3, 2022, through February 9, 2024; pursuant to which all expenses and revenues generated will accrue to the city and AGC will pay a fixed management fee of $70,000 per year with an incentive fee of
2.5% of revenues over $2,800,000.
MOTION: Council Member O’Neil moved to approve the First Amendment to Agreement with AGC Management, LLC (AGC) for golf course operation services and golf course maintenance services to add food and beverage services at Anaheim Hills Golf Course with an effective date of January 3, 2022, through February 9, 2024; pursuant to which all expenses and revenues generated will accrue to the city and AGC will pay a fixed management fee of $70,000 per year with an incentive fee of
2.5% of revenues over $2,800,000, seconded by Mayor Pro Tem Faessel. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried.
24. District 5 appointment of an unscheduled vacancy on the Planning Commission to serve a term ending December 31, 2022.
Planning Commission
District 2 appointment: David Heywood (term ending December 31, 2024) (unscheduled vacancy, Kimberly Keyes)
NOMINATION: Mayor Pro Tem Faessel nominated David Heywood. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSENT – 1 (Council Member Moreno). Nomination approved.
City Council Minutes of November 16, 2021
25. District 5 appointment to the Youth Commission to serve a two-year term ending August 31, 2023. (continued from Council meeting of October 5, 2021, Item No. 16).
Youth Commission (1 appointment)
District 5 appointment:
(one (1) appointment Giselle Ontiveros
NOMINATION: Mayor Pro Tem Faessel nominated Giselle Ontiveros. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSENT – 1 (Council Member Moreno). Nomination approved.
PUBLIC HEARING:
26. This is a public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended, to consider the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $980,000,000 for the financing of certain costs by QCF/I, Inc., in conjunction with the acquisition, construction, expansion, rehabilitation, remodeling, renovation and equipping of hospital facilities known as the Anaheim Community Hospital, an acute psychiatric hospital, located in the City at 3340 West Ball Road and 3350 West Ball Road, Anaheim, CA 92804, in an amount not to exceed $280,000,000.
RESOLUTION NO. 2021-109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the issuance by the California Municipal Finance Authority of revenue bonds in the aggregate principal amount not to exceed $980,000,000 to be loaned to QCF/I, Inc., a 501(c)(3) nonprofit healthcare organization, for the purpose of financing the acquisition, construction, renovation or equipping of Anaheim Community Hospital in connection with which not more than $280,000,000 of the proceeds of the bonds are allocable to the Anaheim Community Hospital; and approving certain other matters relating thereto.
Finance Director Debbie Moreno reported the California Municipal Finance Authority (CMFA) has requested the City hold a Tax Equity and Fiscal Responsibility Act (TERFA) hearing on behalf of QCF/I Inc. as required by the Internal Revenue Service Code to issue tax-exempt revenue bonds.
She advised this TERFA hearing is an opportunity for members of the community to speak in favor of or against the use of tax-exempt revenue bonds in an amount not to exceed $280,000,000 for the financing of improvements at Anaheim Community Hospital facilities. She explained this is a conduit financing where the revenue bonds are issued as a limited obligation of the CMFA and not the City and are payable solely from certain revenues duly pledged and paid by QCF/I Inc.
DISCUSSION: Mayor Sidhu reported this public hearing is for the issuance of improvements to the Anaheim Community Hospital, which would issue bonds through the CMFA. He advised the City is playing a limited support role and is not taking on nor will it be responsible for any of the debt being issued. He explained the hospital needed to hold a local public hearing and the City is helping serve in that role. He advised the bonds will help renovate Anaheim Community Hospital, which serves those with mental health conditions and plays an important role in the community.
In response to Mayor Pro Tem Faessel’s inquiry, Ms. Moreno clarified this in no way adds to the debt load of the City and does not impact the debt numbers discussed earlier under a previous agenda item.
City Council Minutes of November 16, 2021
Mayor Sidhu opened the public hearing.
City Clerk Bass Theresa Bass reported no public comments were submitted electronically related to Public Hearing Item No. 26.
Wes Jones reported he saw the item on the agenda and expressed concern at the amount, which is not to exceed $980,000,000, but confirmed it is a pass-through bond that in no way impacts the City and expressed support for the item.
Mayor Sidhu closed the public hearing.
DISCUSSION: Council Member Diaz expressed support for the item. He inquired how QCF/I Inc. would maintain the trees on or near the property as they are impacting the quality of life for the neighbors.
Council Member O’Neil called for a point of order that this topic is not on the agenda. Mayor Sidhu concurred and advised the item is strictly for the financing item only.
A representative from QCF/I, Inc. reported they would be happy to be good neighbors and would address any of the residents’ concerns.
MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2021-109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the issuance by the California Municipal Finance Authority of revenue bonds in the aggregate principal amount not to exceed $980,000,000 to be loaned to QCF/I, Inc., a 501(c)(3) nonprofit healthcare organization, for the purpose of financing the acquisition, construction, renovation or equipping of Anaheim Community Hospital in connection with which not more than $280,000,000 of the proceeds of the bonds are allocable to the Anaheim Community Hospital; and approving certain other matters relating thereto, seconded by Mayor Pro Tem Faessel. ROLL CALL VOTE: AYES – 6 (Mayor Sidhu and Council Members Faessel, Diaz, Ma’ae, Valencia, and O’Neil); NOES – 0; ABSENT – 1 (Council Member Moreno). Motion carried.
REPORT ON CLOSED SESSION ACTIONS: None
PUBLIC COMMENTS (non-agenda items): None
COUNCIL COMMUNICATIONS/AGENDA REQUESTS:
Council Member Ma'ae believed the discussion and vote on Item No. 3 was disrespectful to staff and thanked staff for their work. She thanked staff and community and professional volunteers for their efforts at the Anaheim Health Fair held November 6-7, 2021 at the Anaheim Convention Center, where many residents received needed health care services. She reported her attendance last Saturday with Council Member O'Neil at a tree dedication organized by the Assistance League honoring former Council Member Shirley McCracken and thanked Ms. McCracken for her dedication to the City. With upcoming family gatherings for Thanksgiving, she wished everyone a joyous celebration and encouraged all to spread gratitude and kindness in any way they could. She wished everyone a Happy Thanksgiving.
Council Member O'Neil stated it was an honor to recognize Shirley McCracken's contribution to the community. He expressed surprise that the bond refinancing item became controversial when it would City Council Minutes of November 16, 2021
save about $1,500,000 per year to be redirected to neighborhoods. He noted there were several Executive Orders enacted to help businesses survive during the pandemic, including outdoor dining, relaxed signage restrictions, and streamlined special event permitting, that would be expiring by the end of January 2022. He thanked Planning staff for bringing some recommendations regarding outdoor dining to the Planning Commission but believed a closer and more robust review was warranted to determine whether any or all should be extended or codified. He requested that he and two other Council Members of the Mayor's choosing work together with staff to review the Executive Orders and any other potential Code changes, such as easing the operation of certain home-based businesses, licensing fee schedules, and parking flexibility, and bring back an agenda item to review recommendations prior to the expiration of the Executive Orders, concurred by Council Members Diaz and Ma'ae.
Mayor Pro Tem Faessel requested to adjourn the meeting in memory of Anaheim Public Works employee, Antonio "Tony" Ureño, and former Public Utilities Board and Parks and Recreation Commission member John Elwell. He reported his attendance, with Mayor Sidhu and Council Members Valencia and O'Neil, at the Linda Vista Groundwater Treatment Project groundbreaking, recognized the Water Division employees, and stated that Anaheim Water began in 1879 and has been providing exemplary service ever since. He noted his attendance at a Katella Boys Basketball fundraising event, the opening of Epic Wings at the corner of La Palma Ave. and State College Blvd., and a manufacturing event in the City of Orange showcasing alternative career paths for local students. He reported Reborn Cabinets had their Baths for the Brave event where they built a new bathroom in one day for a local veteran, Marine Sgt. David Castidio. He recognized the City's Veterans Day event, although he was unable to attend, and thanked Wincome Hospitality for facilitating a furniture distribution to several needy areas in the City. He wished everyone a Happy Thanksgiving.
Council Member Valencia noted his attendance with colleagues at the city's Veterans Day event and thanked veterans for their service and sacrifice. He congratulated the Katella High School football team for making it to the CIF quarterfinals and also congratulated Loara High School football for representing the City in the CIF semifinals. He invited everyone to the District 4 Tacos with a Cop at 4:00 P.M. on November 17, 2021, at Tacos Los Cholos located at South St. and State College Blvd. and wished all a blessed Thanksgiving holiday.
Council Member Diaz displayed a picture of a police officer sweeping the corner of Beach Blvd. and Ball Rd., thanked the Mayor, Police, and city staff for their efforts, and noted Beach Blvd. would be much different in a few years because of the citywide push to improve the area. He announced the Nutcracker Christmas Tree Lighting and Holiday Village to be held in downtown Anaheim on Saturday, December 4, 2021, including crafts and activities for residents all day. He expressed his gratitude for his colleagues, staff, and his family and wished all a Happy Thanksgiving.
Mayor Sidhu expressed his pleasure to welcome back the free Anaheim Health Fair on November 6 and 7, specifically thanking Dr. Nathan Chau, the Anekant Community Center, dedicated providers, volunteers, and event sponsors, the Anaheim Convention Center, and staff for making it a success.
He noted that 1,055 patients received free physical, dental, and vision care and expressed his honor to have introduced this event while a Council Member and that it is now an important Anaheim tradition. He reported that last Thursday, November 11, he had to honor to participate in the return of the Anaheim Veterans Ceremony, thanking all those who made it a special occasion and thanked veterans and their loved ones for their service. He expressed his pleasure to participate in the Anaheim Public Utilities Linda Vista PFAS Treatment groundbreaking ceremony, to help ensure safe, clean drinking water for the entire City, and thanked General Manager Dukku Lee and staff for the great educational experience for Katella and Loara high school students and for water innovation. He City Council Minutes of November 16, 2021
wished all a safe and happy Thanksgiving and wished the Jewish community a happy Hanukkah celebration. Regarding Council Member O’Neil’s agenda request, Mayor Sidhu designated Council Members O’Neil, Diaz, and Ma’ae as the ad hoc committee to work with staff on reviewing the Executive Orders and returning with recommendations.
ADJOURNMENT:
At 7:17 P.M., Mayor Sidhu adjourned the City Council meeting in memory of Antonio “Tony” Ureño and John Elwell.
Respectfully submitted,
Theresa Bass, CMC
City Clerk