Anaheim City Council
October 25, 2022

ANAHEIM CITY COUNCIL

REGULAR AND REGULAR ADJOURNED MEETING
OF JULY 12, 2022
The regular meeting of July 12, 2022 was called to order at 3:00 P.M. and adjourned to 4:30 P.M. for lack of a quorum. The regular adjourned meeting was called to order at 4:32 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 July 7, 2022.

MEMBERS PRESENT: Mayor Pro Tem Trevor O’Neil and Council Members Jose Diaz, Gloria Sahagún Ma’ae, Jose F. Moreno, and Stephen Faessel. Council Member Avelino Valencia joined the meeting during Closed Session. [Mayoral vacancy]
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 4:33 P.M., Mayor Pro Tem O’Neil 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: Peoples Homeless Task Force Orange County v. City of Anaheim, OCSC Case No. 30-2020 01135406-CU-WM-CJC
At 5:28 P.M., Mayor Pro Tem O’Neil reconvened the City Council.

MEMBERS PRESENT: Mayor Pro Tem Trevor O’Neil and Council Members Jose Diaz, Gloria Sahagún Ma’ae, Jose F. Moreno, Avelino Valencia, and Stephen Faessel [Mayoral vacancy]
INVOCATION: Pastor Joel Van Soelen, Anaheim Christian Reformed Church FLAG SALUTE: Council Member Jose F. Moreno
PRESENTATION: Recognizing the 2022 winners of the Anaheim Public Utilities Water Bottle Label Art Contest
Public Utilities General Services Manager Melinda Avelino–Walker recognized Rebekah Miller and Daisy Mejia as the 2022 winners of the Anaheim Public Utilities Water Bottle Label Art Contest.

ADDITIONS/DELETIONS TO THE AGENDA: None
ITEM # 23
City Council Minutes of July 12, 2022

PUBLIC COMMENTS (all agenda items):

City Clerk Theresa Bass reported that a total of 13 public comments were received electronically prior to 5:00 P.M. related to City Council agenda items and matters within the jurisdiction of the Anaheim City Council. [A final total of 13 public comments were received electronically, distributed to the City Council, and made part of the official record]. – See Appendix.

Mark Richard Daniels noted this was the longest period in Anaheim’s history that the City has gone without a Mayor in office. He noted the City looks bad because it cannot come to a consensus on a new mayor. He advised the City needs to clean up its finances and campaign reform is needed. He encouraged those on the dais to resign if they were unable to agree on campaign reform.

Council Member Moreno noted the bottle of Fabuloso on the dais was a gift from Mr. Daniels.

Mike Robbins reported the cabal has been exposed over the last few months and primarily consists of Mayor Pro Tem O’Neil, Council Members Faessel, Diaz, Valencia, and Ma’ae, and lobbyists throughout Orange County. He explained, with the indictment of former CEO of the Anaheim Chamber of Commerce Todd Ament and the resignation of former Mayor Harry Sidhu, it was not difficult to see the pattern of behavior and votes from the City Council majority. He noted the scheme alleged by the FBI between Jeff Flint and former Mayor Sidhu bears a striking resemblance to pay-to- play scenes residents have watched play out for years with past City Council majorities. He advised the schemes have caused residents their livelihoods and have even resulted in death. He noted it was a result of ego, incompetence, and greed. He encouraged City Council to vote for Council Member Moreno’s version of campaign reform.

Rudy Gaona expressed support for campaign reform and encouraged City Council to stop the corruption. He encouraged City Council to approve Council Member Moreno’s original ordinance. He encouraged candidates running for office to not accept donations from lobbyists from special interest groups. He thanked Council Member Moreno for always fighting for Anaheim’s residents. He believed Council Member Ma’ae was in her seat through corruption, encouraged her to drop out of the race and invited her to a public debate.

Mayor Pro Tem O’Neil encouraged speakers to address the City Council with civility and refrain from using profanity. He added the comments are better received when doing so.

Vern Nelson advised he attended the meeting to support the Cleanup Anaheim Act but discovered it had been shriveled down to only tidying up a little bit. He acknowledged that Council Member Moreno has been trying to cleanup campaign reform for years.

Jeanine Robbins advised that some special interests donate to campaigns to seek modifications to projects or adjustments to zoning codes, while some simply do so in order for City Council to look the other way while they wreak havoc on residents. She cited the rent increase issues for seniors at Rancho La Paz Mobile Home Park due to the greed of John Saunders who then gave that money to corrupt politicians. She explained political opposition was driven by the prospects of large campaign contributions. She reported that the predators that preyed on senior citizens donated $40,000 to the Anaheim Hotel and Lodging Political Action Committee (PAC) to support the campaigns of Councilmembers Valencia and Diaz. She noted $16,000 was contributed to Chamber of Commerce PAC to support former Mr. Sidhu’s campaign. She reported $9,100 was contributed directly to Council Member Valencia, $4,100 to Council Member Faessel, and $5,400 to Mayor Pro Tem O’Neil, and $6,600 to Mr. Sidhu directly. She advised many residents of Rancho La Paz pleaded for City Council’s help, but they were ignored. She explained a food coalition was developed to help those City Council Minutes of July 12, 2022

seniors in need in Rancho La Paz. She alleged Council Member Diaz accepted special interest contributions.

Lupe Ramirez reported that every member of the dais, except for Council Member Moreno, accepted contributions from Mr. Saunders. She reported he has started the John Saunders PAC and would now be able to make additional contributions. She advised she organized a food bank to help residents in Rancho La Paz who could not afford food due to the rent increases. She encouraged City Council to realize that there are mobile home parks in each district that need assistance. She reported she sent Council Member Valencia his own campaign forms to prove he had taken contributions from Mr. Saunders. She noted Rancho La Paz residents looked to Assemblymember Sharon Quirk-Silva for assistance when Assemblymember Tom Daly would not help. She expressed concern that Council Member Valencia would be taking that position and also not provide assistance to Rancho La Paz residents.

Rebecca Kovacs-Stein provided a brief overview of Short-Term Rentals (STRs) in Anaheim with the 2016 ban and phase-out of STRs. She reported from 2016 to 2019 STR owners contributed a combined total of $75,000 to the political campaigns of most of the resort-oriented candidates with $58,000 to support Mr. Sidhu, $11,800 to Mayor Pro Tem O’Neil, $18,630 through the Lincoln Club PAC to also support Mayor Pro Tem O’Neil, and $10,000 to support the Anaheim Chamber of Commerce PAC. She reported the Anaheim City Council voted in June 2019 to reverse the ban on STRs that allows owners to boost their potential return. She noted the Anaheim Rental Alliance hired Jeff Flint to be the lobbyist in Anaheim.

Cecile Eveland reported the last time she attended a City Council meeting was June 18, 2019. She explained the actions of the City Council regarding STRs has taken a toll on her physical well-being, mental health, and quality of life. She reported on August 22, 2018, a driver left an STR in Anaheim to drive home to Las Vegas while under the influence of alcohol and struck a car at more than 100 MPH, killing a 24-year-old mother. She chastised Council Member Faessel for his actions at the June 18, 2019 City Council meeting.

Dave Duran noted his comments were not addressed to Council Member Moreno and noted the remainder of City Council is unqualified because their job is to do what is best for their constituents and not to do what is best for themselves. He advised the remainder of City Council comes off as corrupt and the only option is to vote them out. He noted the FBI would also help residents to fix the corruption issue.

Charlotte Seidnematollah expressed support for campaign reform and noted more residents do not get involved because they feel it will do no good. She referenced Townes at Melia Homes and noted resident’s concerns fell on deaf ears. She advised builders typically get what they want by promising to build low-income housing. She noted that residents around these projects would lose all privacy and have increased traffic congestion. She thanked Council Member Moreno for voting against the project.

Tom Fielder referenced Isa Bahu who had sought to revive his family’s Arco gas station which was opposed by Navaz Malik who was a political support of Mayor Sidhu and virtually sealed the fate of Mr. Bahu’s gas station. He reported Mr. Malik hired Peter Mitchell to lobby on his behalf who is also a contributor to the campaigns of many members of the cabal. He advised Mr. Malik has contributed $8,700 to the campaigns of Mayor Pro Tem O’Neil, and Councilmembers Faessel and Diaz. He reported Councilmembers O’Neil and Faessel had received no contributions prior to their vote. He also noted Mayor Sidhu received $10,000 from Mr. Malik in the years following the vote. He encouraged Mayor Pro Tem O’Neil and Council Member Faessel to resign.

City Council Minutes of July 12, 2022

Maritza Bermudez reported she is a lifetime resident of Anaheim and a community organizer with Orange County Congregation Community Organization (OCCCO). She expressed support for campaign reform and to stop the culture of pay to play in Anaheim. She advised that the ordinance as written does not work and puts big money interests before residents. She referenced Townes at Melia Homes and 39 Commons and noted that City Council did not listen to resident concerns regarding those projects, with the exception of Denise Barnes and Council Member Moreno. She noted residents’ concerns were ignored because there was already a special interest in place. She referenced Abraham Lincoln’s quote that a government is of the people, by the people, and for the people.

Marisol Ramirez, Director of Programs for Orange County Communities Organized for Responsible Development (OCCORD), noted their mission is to bring workers, families, and community partners together to organize and advocate for good jobs, strong neighborhoods, and an inclusive democracy in Orange County. She expressed OCCORD’s support for The Cleanup Anaheim Coalition and noted residents need a government that supports their best interest. She noted Council Member Moreno’s original ordinance had some teeth, but Council Member Faessel’s changes assured Council Member Moreno’s core components were removed and creates loopholes than could be exploited by the City Council majority and special interest groups. She advised OCCORD calls upon the City Council to support campaign finance reform with its original core components as proposed by Council Member Moreno.

Emi Perez (translation: Spanish) reported she has been a resident of Anaheim for 16 years. She noted her community is getting involved to focus on problems such as security, parking, lack of community centers, and clean and accessible housing. She advised Latinos are waking up and taking action to improve the community. She encouraged City Council to leave the ordinance as written so the focus is on the needs of the community and not the donors. She reminded City Council that they work for the residents and the residents need the confidence that City Council is working for the well- being of its residents.

Briana Nava reported she has been a resident of Anaheim for 17 years and expressed concern regarding corruption in the City. She encouraged City Council to pass the Campaign Finance Ordinance as it would mend the broken trust residents have in the City.

Andrea Rivera reported she has been a resident for nine (9) years. She advised she has been volunteering with Madres en Accion Ponderosa and OCCORD who strive to bring to light the necessities that all districts in Anaheim need. She expressed concern about the recent corruption in the City Council and noted the youth are the future of Anaheim. She noted that City Council should not be accepting bribes and should be working with residents to be more transparent, work to develop affordable housing, and provide a living wage. She encouraged City Council to pass the Campaign Finance Ordinance.

Mayra Reyes (translation: Spanish) reported she has been a resident of Anaheim for nine (9) years.

She expressed support for campaign finance reform to ensure that City Council is working for residents and not for special interest groups. She noted she also represents Madres en Accion to find solutions for parking. She referenced an encounter with Council Member Diaz when she asked him a question about parking in Anaheim.

Dayana Badillo reported she has been a resident for 16 years and is inspired by other residents who are calling for change. She noted it is unreasonable that big corporations and donors who have unlimited resources and power receive anything they wish for in contrast to issues facing residents.

She expressed disappointment that the City’s elected officials ended up making empty promises in City Council Minutes of July 12, 2022

exchange for campaign contributions. She reminded City Council that their duty is to the residents, and she encouraged City Council to pass the ordinance to bring transparency and restore the trust that residents have lost in their government.

Amiel Arellano, a 15-year-old resident, noted she wants the City to be known for how it takes care of residents and not for corruption. She advised there are insufficient resources in the community and schools and expressed frustration with those on the dais who chose to serve donors instead of residents. She advised there are many residents becoming homeless, and families are in need. She noted the City is need of security, rent control, affordable housing, community centers, homeless support, safety, and clean streets. She encouraged City Council to pass the ordinance.

Mariana Angeles (translation: Spanish), community organizer with OCCORD and Madres en Accion Ponderosa, reported that on June 17, 2022, Council Member Valencia’s aide, Mr. Torres, had a meeting with residents about parking issues. She reported residents spoke about the lack of parking spaces and the time they invest looking for parking, which can be upward of an hour. She advised residents expressed concern for the safety of their children who have to park almost a mile away from home late at night. She noted residents held a meeting where they discussed the cost of parking permits. She advised residents are unable to renew their parking pass due the large amount of parking tickets they have to pay. She expressed concern that Council Member Valencia would not be able to meet with residents for four months to discuss the issue. She cited a text exchange between herself and Council Member Valencia. She expressed support for campaign reform and requested more transparency regarding contributions.

Wes Jones advised the Grand Jury and FBI reports indicate corruption is rampant on the dais. He noted that the energy of City Council, with the exception of Council Member Moreno, went to those who paid to play. He advised the campaign contributions from special interests keep residents for running for office and gives the cabal an unfair advantage. He explained the cabal would still have its way unless the ordinance is restored to the original ordinance that Council Member Moreno introduced.

Liz Gracien advised that something stronger than Fabuloso would be needed to clean up City Council. She advised that she expects a public apology from Council Member Valencia to Ms. Reyes for his remarks and noted his comments could be considered harassment. She advised that City Council voting in favor of the development at Sunkist Plaza seemed nonsensical. She reported the businesses occupying the plaza opposed it and the community opposed it. She advised that the influential Mr. Flint was the one who wanted the convenience store and car wash, and she provided a brief overview of the meetings Mr. Flint had with commissioners and City staff.

Kenneth Batiste thanked FBI Special Agent Brian Adkins for his work and hoped he puts the handcuffs on a few Councilmembers for their corruption. He encouraged City Council to restore the ordinance to the original ordinance proposed by Council Member Moreno. He encouraged City Council to be transparent and inquired why Mayor Pro Tem O’Neil recently met with new Anaheim Chamber of Commerce CEO Laura Cunningham. He encouraged those on City Council who do not want to clean up the problem to resign.

Fred Sigala noted the majority of City Council continues to be in favor of cabal-controlled resident manipulation by waiting to see if an FBI investigation leads to further exposition before deciding to do anything meaningful. He advised ego and petty personal grudges are taking priority over Council Member Moreno being able to lead the City out from under the cloud. He advised by dismantling the original ordinance, City Council has mocked residents for demanding change. He noted the City Council majority is choosing to pull a bait and switch with Item No. 16. He hoped City Council was City Council Minutes of July 12, 2022

prepared the do the right thing and return the ordinance to its original state. He advised Item No. 15, the increased revenue by the Transient Occupancy Tax (TOT), would also increase revenues to the Anaheim Tourism Improvement District (ATID) within the Anaheim Resort and Platinum Triangle. He advised 75% of these funds are directed towards Visit Anaheim who was also given $6,500,000 of COVID-19 relief funds instead of being given to families in need. He noted they have yet to report how they have spent those funds. He encouraged City Council to recognize Little Arabia.

James Vanderbilt thanked City Council for their work in the community and their presence at events and fundraising for non-profit organizations. He advised that Item No. 15 is a tax increase because it calls for number of new taxable hotel services that would be added to the pre-existing bed tax. He believed it should require five (5) votes from City Council. He provided City Council with a letter from 2017 from the City’s Assistant Attorney for Planning to Hotel STR operators informing them of the online travel companies needing to collect more money for bookings to resort-specific hotels. He advised the letter is on the City’s TOT website and also informs online travel companies that they need to collect more ATID funds. He believes there is a nexus between the TOT and the ATID and asked City Council to include it in their discussion of Item No. 15. He encouraged City Council to do more with ATID funds. He inquired why the Mayoral appointment was not on the agenda even though Council Member Faessel requested it be on the agenda, seconded by Councilmembers Valencia and Moreno.

Jorge Gavino, President of the Anaheim Democrats, noted the Anaheim Campaign reform had been completely gutted to the point that it was a joke. He encouraged City Council to return the ordinance to its original content and provide free, honest, and fair elections for the City Council.

Ada Briceno, Chairwoman, Democratic Party of Orange County, encouraged City Council to not miss the opportunity to do the work to clean up what has transpired in the City. She advised the proposal on the agenda made by Council Member Faessel is a shame to Anaheim residents. She noted the original ordinance had clear disclosure requirements for Councilmembers receiving more than $250 in donations and included a robust recusal rule. She advised the current proposal is outrageous and is another fraud perpetrated on residents. She urged City Council to discard the changes and return it to its original state. She reported 200 signatures were submitted encouraging City Council to introduce real campaign reform.

R. Joshua Collins encouraged campaign reform and encouraged City Council to reinvest donations it took from the cabal back into the community. He expressed concerned about a homeless woman in Maxwell Park and called for members of the City Council to help get this woman off the streets.

Council Member Moreno called for a point of privilege. Mayor Pro Tem O’Neil inquired if the inquiry could be made during Council Communications. Council Member Moreno advised he was going to recommend Mr. Collins speak to staff about resources for hotels and motels.

Lyndsey Lefebvre expressed solidarity with her fellow Democrats and encouraged City Council to shine light on the city. She advised many neighborhoods have been an afterthought to the Resort District with areas like Beach Boulevard and the Westside fraught with issues. She noted communities of color have been ignored in Anaheim. She advised that under the leadership of Republican Harry Sidhu, fellow Councilmembers have co-signed corporate giveaways and shouldered inappropriate pressures from special interest groups. She noted City Council has an opportunity to pass real reform this evening and encouraged City Council to return the original tenets of the ordinance introduced by Council Member Moreno and support a new era in Anaheim of transparent local government that empowers residents.

City Council Minutes of July 12, 2022

Carolina Mendez, a life-long resident, expressed shame that City Council lacks the courage to do right by its residents. She advised the ordinance that was originally introduced by Council Member Moreno, that would start to diminish the chokehold that special interest groups have on the City’s politics, has been watered down so much that it was a pathetic substitute for Council Member Moreno’s fine work. She demanded City Council reinstate the components that were gutted. She noted the needs of residents have long been overlooked for the needs of special interests and advised that residents deserve better.

Penelope Lopez, resident of District 2 and an organizing director of Chispa, which is a political home for young Latinos in Orange County, encouraged City Council to support Item No. 16 and support campaign finance reform. She advised that City Council has long been under the control of special interest groups. She noted the watered-down ordinance introduced by Council Member Faessel would not fool residents into thinking the pay-to-play culture in Anaheim would stop. She encouraged City Council to restore the ordinance to its original state to ensure real transparency and real campaign finance reform.

Al Jabbar, Anaheim Union High School District Trustee, expressed support for Council Member Moreno’s original ordinance. He inquired if City Council was here to represent the people of Anaheim or to represent special interest groups such as Disney, SOAR, the Angels, and big billionaires who are their campaign contributors. He encouraged City Council to strengthen the ordinance. He advised the last City Council meeting looked like political theater and it looks like the remainder of the cabal is still giving instructions to people. He advised it was critical to restore trust in the Anaheim city government. He noted residents are paying more attention to who is representing them and encouraged City Council to restore the ordinance to its original state.

Hari Shankar Lal reported his car was blocked from participating in the Fourth of July parade even though it was business oriented. He noted that threatening to file an injunction against the Anaheim Chamber of Commerce was the only way he was allowed to participate. He advised his posters for the parade were taken down by the Anaheim Hills Buzz and noted it shows the injustice in Anaheim and that people of color have no place in the City. He reported Mayor Pro Tem O’Neil was a guest speaker at Crosspoint Church speaking on Parks and Recreation. He advised this was a promotion of a candidate behind closed doors and should be avoided by the City and violated the First Amendment right and establishment clause. He noted the ordinance is simply lip service to show the FBI the City is doing what it is supposed to do.

RosaIsela Pescador thanked Council Member Moreno for his support of the community and her neighborhood. She expressed support for the original campaign reform ordinance as written by Council Member Moreno. She encouraged the remainder of the dais to support the ordinance in its original form. She referenced the recent murder of Juan Reynaga and reported residents met with Council Member Faessel at Edison Park demanding more lighting, flashing stop signs, speed bumps, and more involvement from him in this area. She expressed hope that Council Member Faessel would keep his word and give the area the assistance they need. She noted this could only happen if City funding goes to the right place.

Daisy Chavez, resident of District 5, reported she is the Vice Chair of the City’s Police Review Board and is looking for more ways to be involved in helping shape Anaheim to be a place where she can one day raise her own family. She expressed concern regarding Anaheim’s politics and noted there is a lack of transparency and accountability from elected officials. She advised half of City Council identifies as Hispanic, yet the majority of City Council has engaged in taking money from special interest groups that do not represent the needs of marginalized neighborhoods that represent this demographic. She noted she is tired of seeing the City controlled by special interest groups, tired of City Council Minutes of July 12, 2022

seeing politicians make decisions that hurt the community, and tired of seeing big money winning.

She encouraged City Council to pass the original ordinance.

Ashleigh Aitken invited the community to celebrate the Orange County Fair which is opening on July

15. She noted there would be many community events that celebrate the diversity and talent of Orange County’s residents. She reported on the Orange County Fair giveback program and provided highlights of the program. She expressed support for the original campaign reform ordinance and encouraged City Council to support it. She cited a previous speaker who noted residents do not come to City Council because they do not feel that they are being heard. She noted residents should feel like they are being heard by their City Council and faith in the government needs to be restored. She advised that City Council cannot pass campaign finance reform that has zero change of fixing the problems in the City.

Carlos Leon spoke in both English and Spanish and reported it has been almost two months since the FBI investigation of allegations of corruption into the former Mayor came to light. He noted, in those two months, City Council has passed nothing to restore trust and ethics back into the municipal government. He advised many members of City Council stayed quiet until they could not. He inquired what the point is of passing reforms that would not correct any of the issues that have been identified.

He inquired why City Council would be against the items Council Member Moreno recommended in the original ordinance. He noted in light of what could become the biggest political scandal in Orange County history, let the record reflect that certain Councilmembers sided with special interests and not the community.

Victoria Michaels noted three members of City Council look down and read their computers while the public is providing comment. She expressed concern regarding the changes to the originally proposed campaign reform ordinance and something seemed wrong. She asked Mayor Pro Tem O’Neil to pay attention. She advised the changes are unacceptable and is a way for the cabal to continue its corruption. She noted the only honest City Councilmember is Council Member Moreno.

She noted there is no integrity with these changes and encouraged City Council to not pass Item No. 16 as revised.

Dom Jones encouraged City Council to remember why they chose to do what they are doing on the City Council. She noted they have been gifted the ability to serve the community and it is important to show love, consideration, and transparency to those who are being served. She encouraged City Council to do what is right, which is not always easy.

Matthew Mariscal addressed Council Member Valencia for his promise to serve District 4 for the next four years only to turn around and run for State Assembly. He advised no one is surprised that City Council has gutted the campaign reform ordinance. He noted residents know how deep the corruption runs in the City at that when Mickey says jump, the City Council majority says how high.

He advised it is waste of time to ask City Council to pass anything. He noted the campaign reform ordinance attacks the very heart of the pay-to-play scheme and thanked City Council for proving him right all along.

Dr. Patricia Adelekan spoke about when Anaheim was known as the City of Kindness and now it is known as a corrupt city. She noted it was a legacy and inquired what legacy was being built by the City now. She encouraged City Council to think about the legacy they are leaving for their families.

Danett Abbott-Wicker advised there should be separation of church and state and advised it was sheer hypocrisy of a City Council that prays to a Lord that is nothing like the City Council. She noted the Lord preaches love and compassion for his fellow man and she found it odd that she as an City Council Minutes of July 12, 2022

agnostic knows more about the Lord and his teachings than the City Council. She noted if City Council had any decency, they would resign and let others take their place that actually care about the City and its residents.

Mazatl Tecpatl Tepehyolotzin asked City Council to support removing the name of Colonists as the mascot of Anaheim High School. He noted the mascot name is offensive and harmful and removing the name demonstrates that removing long time negative representations of racism, oppression, and inequality are steps towards healing social injustices towards minorities, specifically Native Americans and indigenous people. He provided a history of colonists in the country and their unfair treatment.

Veronica Raya reported she is a resident of Margaret Drive and noted the neighborhood is lacking parking. She advised her son comes to visit often and she places a trash can in the space so he can park safely. She reported there is also a homeless issue in the neighborhood, which often smells like urine, and mothers fear for the safety of their children. She invited Council Member Valencia to come and walk the neighborhood and work with the community for a quick resolution.

Mayor Pro Tem O’Neil requested the City Manager direct the appropriate staff to speak with Ms. Raya. Council Member Valencia reported he, Public Works Director Rudy Emami, and City Manager Jim Vanderpool have had multiple conversations on how to address the issue.

He encouraged Ms. Raya to speak to Mr. Emami regarding parking permits for the neighborhood.

Scarlette Almero, a 30-year Anaheim resident, advised it is a pity that it took the FBI to uncover the cabal. She noted the City needs politicians who work to better the lives of their constituents, not work against them. She spoke about gun violence and noted a realistic solution is needed. She offered many suggestions for gun control solutions that could save lives. She noted many cities are considering ordinances for safe gun storage and encouraged City Council to consider doing the same.

John Dunton stated that Mayor Pro Tem O’Neil needs to resign. He reported Mayor Pro Tem O’Neil has a business assisting seniors but did not help the senior residents of Rancho La Paz and is responsible for some of their deaths. He advised Mayor Pro Tem O’Neil stepped out of the room because he knew he was coming to speak against him. He thanked Council Member Moreno for always being ethical, professional, and doing what is right for the community.

Vance DizNey reported the City needs to have quality businesses in Anaheim. He presented plans for a new adult roller coaster ride.

Paul Hyek recommended a new City ordinance that requires permitted parking. He expressed his grievances with Mercy House and expressed concern about the potential closure of Mary’s Kitchen.

He encouraged City Council to find a location for the homeless to park their vehicles.

Bryan Kaye noted that he gave City Council $1,000,000 worth of advice to blame Mr. Sidhu, apologize to the residents, and start correcting some of these mistakes. He advised in 60 days residents have not seen any action. He recalled his experience in police custody and noted that City Council has not given the families of the 30 people killed by the Anaheim Police Department the opportunity to heal.

Carlos Sanchez, District 6 resident, reported he loves the City and wants to see City Council do a better job.

City Council Minutes of July 12, 2022

Mirvette Judeh expressed sadness in hearing how unhappy the residents are with many of the City Council and with the decisions City Council is making. She noted Council Member Moreno came up with a campaign finance reform ordinance that would create transparency. She explained there is an issue with the ordinance that Council Member Faessel drafted and believed anyone who supports it would look bad. She encouraged City Council to adopt the original ordinance. She reported it was time for City Council to recognize Little Arabia.

Denise Barnes noted how privileged she is to be on the opposite side of the dais. She noted she hears that residents do not trust City Council anymore. She noted some of City Council has fooled her for a while and she thought she knew some of the others. She noted she does not really know Council Member Faessel, and while she admires all the things he does for the community, she finds it striking that, as a man, he has followed someone else and went down that road. She advised the ordinance should not have baby teeth but real teeth and gumption. She encouraged City Council to do the right thing.

Cruz de Loa, District 3 resident, noted it was shame to listen to all of these angry residents and see City Council smile, smirk, and not pay attention. He advised this evening has been eye opening and he could not believe the number of times the word corruption was used. He noted he was much younger than the City Council and he could even see that what they were doing is wrong. He demanded City Council recognize Little Arabia.

Yesenia Rojas encouraged City Council to do the right thing. She noted she has seen many community leaders in the room tonight and inquired what is happening to the City.

Margaret Sharpe expressed great respect for Council Member Moreno. She noted she sees a huge divide in the City. She encouraged City Council to remember Plato’s Republic, which states that serving in the government should not be for the money but should be for the community. She noted it was time for a change.

Jose Robles, District 5 resident, noted the title of Acting Mayor was appropriate because he has seen a lot of acting from the dais. He advised Mayor Pro Tem O’Neil had advised that the $96,000,000 fine was not a fine but an agreement. He noted Mayor Pro Tem O’Neil still wanted to go through with the deal. He proposed the City Council collect a gate tax. He encouraged City Council to appoint Tom Daly as Mayor or to rotate the job amongst those on the dais.

CITY MANAGER’S UPDATE: None
COUNCIL COMMUNICATIONS:

Council Member Valencia reported that his office, at the request of the community, recently concluded a multi-course seminar at the Ponderosa Family Resource Center that included information and resources on developmental disabilities for families and individuals in the City. He thanked the City departments that participated, the organizations that collaborated on the course, the community for attending, and Senior Policy Aide Luiz Torres for organizing the event. He reported that last Saturday, the District 4 office, with State Senator Umberg, Congressman Lou Correa, and Assembly Member Tom Daly, collaborated on a community health fair that provided services to over 200 people. He appreciated the efforts of the Community Services Department and the other offices involved. On behalf of residents, Council Member Valencia offered thanks to Assembly Member Daly for working with his office to secure $10,000,000 in State funding to enhance and renovate Boysen Park, which will benefit families and residents for generations to come. He also announced that a few City Council Minutes of July 12, 2022

meetings ago he agendized modifications to the lobbying ordinance, he has been working with staff on changes including expanding record retention timeframes and criminalizing breaking the policy, and plans to bring it forward for Council consideration in August.

Council Member Faessel requested the meeting close in remembrance of the Highland Park, Illinois Fourth of July shooting victims where seven people were killed and 46 wounded at a parade as well as 17-year-old, Anaheim High School football player, Juan Carlos Reynaga, who was shot on Acacia Avenue when returning home from his job at Walmart.

Council Member Ma’ae reported that she attended her first Orange County Water District (OCWD) meeting and looked forward to serving on the board, learning more, and sharing information related to water, groundwater reclamation system, aqua park, and projects along the Santa Ana Riverbed.

She thanked Mike Markus, General Manager of OCWD, for the great orientation and noted he runs a great organization.

Council Member Diaz highlighted Al Tannour, a new small business in west Anaheim located at 2947 West Ball Road near Beach Blvd., and commended its owner, an Iraqi immigrant, for fulfilling his dream of owning his restaurant and bakery. He reported that yesterday he met at Maxwell Park with the homeless, area residents, the Police Department, Community Services Department, CCRT, and Be Well to discuss how to address the issue and provide services to the homeless, further noting it is not an issue that is easy to fix and noting the need to provide the best humanitarian services to both the homeless and residents. Council Member Diaz expressed his disappointment that Governor Newsom signed SB 357 on July 1, 2022, making it legal to loiter in public for prostitution, which he believed would make it harder to improve Beach Blvd.

Council Member Moreno announced a community meeting would be held on Thursday, July 21 in the Glen-Onondaga community north of La Palma Avenue, an area new to District 3. He thanked community member RosaIsela Pescador for helping coordinate the meeting and he looked forward to the collaborative event, neighborhood walk, and resource conversation with the residents and City departments. He noted that a flyer was available on his office’s social media to share. Council Member Moreno reported that the Anaheim Union High School District’s Summer Arts Academy hosted a “Wonderful Town” production at Pearson Park on July 1-2, where nearly 100 students put on a great show with visual and performing arts, and he commended the school district for providing a holistic education for all students. He thanked the Community Services Department, Kaboom!, the Anaheim Ducks, River Church, and the YMCA for hosting a Design Day on July 15 at the Downtown Community Center for children to share what they want at the new Center Greens playground from 3:00-4:00 P.M. and adults to share their thoughts from 4:00-5:00 P.M. He noted that the Anaheim High School baseball team and pitcher Jillian Albayati had been previously highlighted and shared that the seniors on the team skipped their grad night to rest before the championship game. He thanked his colleagues and the City Manager’s Office for coordinating tickets and snacks for the Angels game to recognize and celebrate the efforts, sacrifices, and dedication of the athletes. He appreciated Council Member Faessel’s words, offered condolences to the Reynaga family, and announced his social media included information on a GoFundMe account as well as a kermes fundraiser at 5:00 P.M. on July 15 to support the family, and hoped Juan would rest in peace and his family would find peace.

Mayor Pro Tem O’Neil expressed his honor to participate in the July 4th celebrations in Anaheim Hills, including a 5/10k run, pancake breakfast, dog show, parade, fun at the park with bands and food, and fireworks. He thanked staff for helping put the event together and the volunteers from Anaheim Hills Community Council for their behind-the-scenes efforts.

City Council Minutes of July 12, 2022

CONSENT CALENDAR: At 8:44 P.M., the Consent Calendar was considered.

MOTION: Council Member Faessel moved to waive reading of all ordinances and resolutions and adopt 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 Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES – 0. Motion carried.

1. Receive and file minutes of the Library Board meetings of April 11, 2022 and May 9, 2022; the Public Utilities Board meeting of May 25, 2022; and the Sister City Commission meeting of April 25, 2022.

2. Authorize the Purchasing Agent to waive Administrative Regulation 425 “City Property” allowing the Anaheim Fire & Rescue Department to donate obsolete driving simulator training equipment to Central Net Training Center operated by the Huntington Beach Fire Department.

3. Accept the bids from Mueller Systems and Badger Meter, Inc., in the respective amounts of $212,673 and $159,019 plus applicable tax and a 20% contingency, for the purchase of water meters for Anaheim Public Utilities for a one year period with four one-year optional renewals; and authorize the Purchasing Agent to execute the renewal options in accordance with Bid #9583.

4. Accept the bid of ConvergeOne, Inc., in the amount of $1,736,640.44 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 #9584.

5. Accept the bid of Pricon, Inc., in the amount of $272,385 plus applicable tax, for the purchase of nine specially configured Hewlett Packard Network Servers for use by the Information Services Division, in accordance with Bid #9587.

6. Accept the bid from BrightView Landscape Services, in the amount of $938,093.88 plus a 15% contingency, to provide landscape maintenance services covering West and Southwest area parks 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 #9588.

7. Accept the bid from Southern Tire Mart, LLC, in the amount of $50,331.50 plus applicable taxes, for as-needed roadside tire repair services for a one year period with up to four one- year optional renewals; and authorize the Purchasing Agent to execute the renewal options in accordance with Bid #9582.

8. Accept the bid from Mr. Window Cleaning, in the amount of $59,474.27, to provide interior and exterior window cleaning services at various sites throughout the City for a one year period with up to four one-year optional renewals; and authorize the Purchasing Agent to execute the renewal options in accordance with Bid #9590.

9. Award the construction contract to the lowest responsible bidder, All American Asphalt, in the amount of $2,305,993.90, for the Weir Canyon Road Rehabilitation Project from the South City Limits to Parkglen Place and from Serrano Avenue to Santa Ana Canyon Road; authorize the Public Works Director to execute the contract and related documents and to take the necessary actions to implement and administer the contract; determine that the project is categorically exempt from the California Environmental Quality Act pursuant to Class 1, City Council Minutes of July 12, 2022

Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

10. Award the construction contract to the lowest responsible bidder, Stephen Doreck Equipment Rentals, Inc., in the amount of $2,428,000, for the Cerritos Avenue and South Street Water Main Replacement Project; authorize the Public Works Director to execute the contract and related documents and to take the necessary actions to implement and administer the contract; determine that the project is categorically exempt from the California Environmental Quality Act pursuant to Sections 15301(b), 15302(c), and 15303(d) of Title 14 of the California Code of Regulations; and authorize and direct the Finance Director to execute the escrow agreement pertaining to contract retentions.

11. Approve an agreement with Lyons Security Service, Inc., in an amount not to exceed $2,832,960 per year with a 20% contingency for extra services, to provide professional security guard services for a four year term with up to two one-year optional extensions; and authorize the Public Works Director, or designee, to execute the agreement and to take the necessary actions to implement and administer the agreement and any extensions.

12. RESOLUTION NO. 2022-069 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 2022/23 Cannabis Tax Fund Grant Program, authorizing the Chief of Police, or his designee, to execute all required grant documents, and increasing the budget for the fiscal year 2022-23 accordingly (grant funds awarded in the amount of $85,000; grant provides funding to provide public education and outreach, DUI/DUID enforcement efforts, and provide officer training focused on detecting and removing impaired drivers from the roadway).

13. Approve minutes of the City Council meetings of April 12, 2022 and April 26, 2022.

END OF CONSENT CALENDAR:

14. RESOLUTION NO. 2022-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM for exception to the 180-day wait period in compliance with Government Code Sections 7522.56 and 21224 and superseding Resolution No. 2022-051 (appointment of Maria Munoz, Police Dispatcher II, as a retired annuitant, effective May 25, 2022).

Human Resources Director Linda Andal reported that City Council unanimously approved the item on May 24, 2022. She advised the Government Code requires the appointment of a retired annuitant within 180-day of their retirement to be approved on the off-consent calendar and the item is therefore before the City Council to reapprove.

MOTION: Council Member Ma’ae moved to approve RESOLUTION NO. 2022-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM for exception to the 180-day wait period in compliance with Government Code Sections 7522.56 and 21224 and superseding Resolution No. 2022-051 (appointment of Maria Munoz, Police Dispatcher II, as a retired annuitant, effective May 25, 2022), seconded by Council Member Diaz. ROLL CALL VOTE: AYES – 6 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES – 0.

Motion carried.

City Council Minutes of July 12, 2022

15. RESOLUTION NO. 2022-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA ordering the submission, at the General Municipal Election to be held on Tuesday, November 8, 2022 as called by City Resolution No. 2022-057, to the qualified voters of the City of Anaheim of a General Tax Measure set forth in a proposed ordinance amending Section 2.12.005 (Definitions) of Chapter 2.12 (Transient Occupancy Tax) of the Anaheim Municipal Code to include online and other travel companies as operators required to collect and remit Transient Occupancy Tax on the full amount paid by hotel guests for accommodations and to make other related and/or clarifying changes; requesting the Board of Supervisors of the County of Orange to include the General Tax Measure in the Consolidated Statewide General Election to be held on Tuesday, November 8, 2022; setting priorities and deadlines for the filing of arguments and rebuttal arguments; and directing the City Attorney to prepare an impartial analysis [includes determination that the Measure is not a project within the meaning of the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, Section 15378(b)].

Assistant City Manager Greg Garcia reported the item is a resolution ordering the submission of a ballot measure for the November 2022 General Election. He advised the measure seeks to expand the City's existing Transit Occupancy Tax (TOT) to include online and other travel companies as operators obligated to collect and remit the tax and to make other related and clarifying changes.

Mr. Garcia provided a brief overview of the history of the issue. He explained that in 1992 the City passed an ordinance establishing a TOT. He reported in 1996 City voters approved an increase in the TOT from 13% to the current 15%. He explained a significant portion of the City's General Fund comes from TOT. He reported beginning in the early 2000s, a growing number of visitors began booking their hotel rooms through a variety of Online Travel Companies (OTCs) such as Travelocity, Expedia, Orbitz, and Priceline. He advised many municipalities, including Anaheim, started to realize that they were not receiving their full share of TOT. He explained cities would often only receive TOT on the wholesale amount that the OTCs paid for the hotel room rather than the full amount that the guest was paying for their room. He advised the differential that was not remitted to cities added up to a significant amount annually.

Mr. Garcia reported the City, along with many other municipalities, initiated legal action against the OTCs to collect TOT amounts owed but was unsuccessful. He advised the California Supreme Court issued an opinion that allows cities to collect TOT from OTCs. He reported in 2020, the City passed an ordinance that altered how the OTCs remit payments, implementing a direct pay model generally requiring hotel guests to pay the hotels rather than the online travel companies for accommodations.

He noted that at the same time staff started discussions about permanently amending the TOT code that would change the definition of operators and obligate the OTCs to collect and remit TOT. He explained staff feels that amending the code via a ballot measure is the best way to get a more permanent solution to this problem on a go-forward basis.

Mr. Garcia reported the proposed changes expand the definition of an operator obligated to collect and remit TOT to include OTCs and clarify the definition of rent upon which TOT is charged to include items like parking, resort fees, and WIFI charges. He advised the resolution also provides potential proposed ballot language that would be presented to the voters should the item be approved and read it aloud. He reported the cost to submit the measure to the voters is $8,500 but if the measure passes, it would generate an additional TOT of $3,000,000 annually. He advised the ordinance would take effect in January 2023 if passed by the voters. He explained the City is required to put an amount in the ballot language and the Audit Division was able to estimate a figure of $1,000,000 to $3,000,000 annually.

City Council Minutes of July 12, 2022

DISCUSSION: Mayor Pro Tem O’Neil advised it was raised by a former City Councilmember who spoke during public comments as to whether or not changing the definition of rent to include those other items might trigger a new tax that would require a higher vote threshold to place it on the ballot.

Mr. Garcia advised staff believes the expansion of the definition of rent in the question before the voters is considered a tax measure and requires a 2/3 vote of the City Council to place it on the ballot.

Council Member Moreno inquired if any of this has any implication for the Anaheim Tourism Improvement District (ATID).

Mr. Garcia advised staff does not believe there is any impact on ATID and confirmed it is a separate assessment that the hoteliers are obligated to be responsible for and more often than not they pass it off to the guest on the folio.

Council Member Moreno inquired if the voters pass the item, it does not do anything to the ATID or where those resources go.

Chief Assistant Attorney Kristin Pelletier explained that ATID is an assessment district that is imposed on businesses. She advised the change being made on the TOT does not impact ATID and explained that the hotels are directly passing that assessment on to the guests. She further explained that ATID is not impacted by the two primary changes, which are the changes to the definition of operator and rent.

Council Member Moreno inquired if any future changes to the ATID would need to come before the City Council. Ms. Pelletier explained there is an entirely separate process and noted that ATID funds do not get paid into the General Fund. She explained the change is to amend the portion of the tax code that is paid into the General Fund that the City has control over.

Council Member Moreno inquired again if any future changes to the ATID would need to come before the City Council. Ms. Pelletier advised amending the assessment district would need to come before the City Council. She conceded that she is not as familiar with all of the rules and what needs to come before the City Council, but she confirmed a change in the assessment district would need to come before the ATID board to approve. She explained the item before the City Council does not directly impact ATID.

Council Member Diaz explained that almost 20 years ago Anaheim voters voted for the TOT, but the online booking was not included. He inquired if he was correct in that what was being brought to the voters is to include OTCs in the TOT. Ms. Pelletier confirmed that was the primary purpose, but while the staff was working on this, they decided to modernize some of the other language as well to change the definition of rent. She explained that both of those changes are something that impacts TOT, which is why they are going on a ballot measure.

Council Member Diaz inquired if the hoteliers and the OTCs agree with this process. Ms. Pelletier confirmed staff has met with hoteliers and the OTCs because they did not want opposition to the measure to defeat it because this is significant money to the City. She noted this is happening to OTCs in other jurisdictions across the nation, so they are just accepting it and passing it on to their guests.

Council Member Diaz thanked staff for bringing the item to City Council.

City Council Minutes of July 12, 2022

MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2022-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA ordering the submission, at the General Municipal Election to be held on Tuesday, November 8, 2022 as called by City Resolution No. 2022-057, to the qualified voters of the City of Anaheim of a General Tax Measure set forth in a proposed ordinance amending Section 2.12.005 (Definitions) of Chapter 2.12 (Transient Occupancy Tax) of the Anaheim Municipal Code to include online and other travel companies as operators required to collect and remit Transient Occupancy Tax on the full amount paid by hotel guests for accommodations and to make other related and/or clarifying changes; requesting the Board of Supervisors of the County of Orange to include the General Tax Measure in the Consolidated Statewide General Election to be held on Tuesday, November 8, 2022; setting priorities and deadlines for the filing of arguments and rebuttal arguments; and directing the City Attorney to prepare an impartial analysis [includes determination that the Measure is not a project within the meaning of the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, Section 15378(b)], seconded by Council Member Moreno.

DISCUSION: Council Member Valencia inquired for clarification purposes that this item is not increasing a tax but creating parity in an industry that had a loophole due to technology. Ms. Pelletier confirmed that is correct and it is creating a new class of taxpayers, which is the OTCs. She further explained it is generating new tax revenue but the 15% TOT tax is not being touched. She noted the definition of a taxpayer is expanding so the City receives the amount the OTCs charge rather than what the City is receiving now under the definition of an operator, which is what the OTCs pay the hotel. She clarified the item is the capture of the difference.

Ms. Pelletier explained the way the model would work is that Expedia would buy the room from the hotel at what was called a wholesale rate and they would remit the wholesale rate plus the tax on that wholesale rate to the hotel but whatever they sold room for was up to them and the City would lose the tax on the differential.

Council Member Valencia inquired if the language being included would provide the City with enough latitude in the future if there was a change in the industry. She explained the language is designed to say anybody who sells a room is an operator and any money received from the guest is considered rent.

Ms. Pelletier reported there is a minor correction needed prior to the final motion and vote.

Mayor Pro Tem O’Neil inquired that based on the notion that a 2/3 vote threshold of the City Council is required to place the item on the ballot because it is implying a new tax to be collected, what is the voter threshold to pass the item? Ms. Pelletier explained that it is 50% plus 1 vote.

Ms. Pelletier clarified for consistency purposes to change Subsection .150, to replace “shall mean” with “means”. Council Members Diaz and Moreno accept the friendly amendment to the motion on the floor.

MOTION: Council Member Diaz moved to approve as presented, with an amendment to Section

2.12.005 DEFINITIONS of the proposed ordinance, Subsection .150, to replace “shall mean” with “means” as noted by Chief Assistant City Attorney Kristin Pelletier, seconded by Council Member Moreno. ROLL CALL VOTE: AYES – 6 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES – 0. Motion carried.

City Council Minutes of July 12, 2022

16. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding a new section to Chapter 1.09 of Title 1 of the Anaheim Municipal Code relating to campaign and ethics reform (establish recusal rules for elected members of the City Council when they receive campaign contributions from parties who have matters before the Council).

City Attorney Robert Fabela explained the item is a new ordinance adding a new section to Chapter

1.09 of Title 1 of the Anaheim Municipal Code relating to campaign and ethics reform. He advised the idea of campaign reform was first introduced by Council Member Moreno on June 7. He reported it was then continued to the June 21, 2022 meeting, at which time City Council voted on the item with some modifications but it failed to receive enough votes for passage.

Mr. Fabela reported the current version of the Campaign Finance Ordinance was agendized by Council Member Faessel and has been modified to reflect the Levine Act outlined in Government Code Section 84308 which currently applies to appointed legislative bodies but not bodies directly elected such as city councils, according to the terms of the Levine Act.

Mr. Fabela explained under this proposed ordinance, a Council Member could not participate in any matter involving a party or participant who contributed more than $250 in the 12 months before the action was taken by the City Council. He noted Council Members would be prohibited from accepting or soliciting campaign contributions for the three (3) months following City Council action. He advised a Council Member must disclose if he or she has received any contributions of more than $250 from the party or participant within the preceding 12 months. He further explained a party to a proceeding must also disclose on the record any contributions of more than $250 made within the preceding 12 months to any Council Member. Lastly, Council Members need not recuse themselves from actions involving low-bid labor, labor, or personal employment contracts, regardless of whether they receive contributions from parties involved in those actions.

Mr. Fabela reported that unlike the previous versions of the proposed ordinance that were considered by the City Council on June 7 and June 21, but consistent with the Levine Act, there would be no requirement that participating Council Members disclose any of those contributions that are excluded.

He explained other differences from previous versions considered by City Council include that it would not apply to donations made to independent committees.

Mr. Fabela pointed out there is a typo in the proposed ordinance in Section 1.09.051.050 reference to “or independent committee supporting the elective city officer” in lines seven through eight of that section that was intended to be stricken. He reported another difference is the blackout period for accepting, soliciting, or directing contributions after a City Council decision is decreased from 12 months to six (6) months previously considered by City Council, and now three (3) months as provided in the Levine Act. He further explained, unlike previous proposals considered by City Council, the section would not create a private right of action for members of the public to enforce its provisions. Lastly, he explained there is nothing in the current proposed ordinance that changes the City's contribution limits, establishes a limited fundraising period, or impacts the Council Members' current debt requirement and reporting all of which were part of earlier versions of the ordinance considered by City Council.

DISCUSSION: Council Member Faessel provided a brief recap of how the item got to this point. He advised Council Member Moreno brought forward a comprehensive campaign finance ordinance that was heard on June 7. He advised there was significant discussion and debate. He explained that he stated at the time that he could probably replay his previous campaigns within the confines of Council Member Moreno’s proposed ordinance. He recalled that he suggested limiting the 12-month recusal City Council Minutes of July 12, 2022

to six (6) months. He noted at that time, the item was continued, and then at the June 21 meeting, Council Member Valencia recommended another amendment regarding the notification of $250 or more within 24 hours.

Council Member Faessel reported he was concerned about possible candidates who did not have a very sophisticated or formal campaign organization and the entries take time and effort to get the donation entered in 24 hours. He explained that the dais had agreed to an extra day or two to enter contributions over $250. He noted he argued against Council Member Diaz on behalf of Council Member Moreno’s proposed ordinance. He reported he voted for the proposed ordinance, but it died with a 3 to 3 vote. He noted he asked to have the item reagendized for further discussion.

Council Member Faessel explained that Council Member Moreno’s foundation for the ordinance was the Levine Act and noted many members of the dais live under that Act in various roles. He referenced other municipalities that live under the Levine Act. He explained that he brought back the ordinance with the full understanding that there would be amendments, changes, suggestions, and spirited debate.

MOTION: Council Member Faessel moved to approve AN ORDINANCE OF THE CITY OF ANAHEIM adding a new section to Chapter 1.09 of Title 1 of the Anaheim Municipal Code relating to campaign and ethics reform (establish recusal rules for elected members of the City Council when they receive campaign contributions from parties who have matters before the Council) as presented, with the typographical correction to Lines 7-8 of Subsection .050 to remove the language regarding independent committees, as noted by City Attorney Robert Fabela, seconded by Council Member Moreno for discussion and potential enhancements.

DISCUSSION: Council Member Valencia noted he was caught by surprise by the staff report and had assumed that the same ordinance that was voted on would be back on the agenda today so that modifications could be made to get something of substance passed. He explained a 3-3 vote or a failed item needs the maker of the motion and the backing of two members of the dais to place that item back on the agenda.

Council Member Valencia requested clarification from Mr. Fabela on how a failed item is placed back on the agenda. Mr. Fabela explained that this is not a law but is something that is under City Council control and staff could be directed to do something differently. He explained the way it has been done as a matter of practice is that whoever suggests agendizing the item controls the item within reason.

Council Member Valencia advised he would have appreciated a heads up to hear about the new ideas as a professional courtesy. He noted if he had known that was going to be the case, he would not have supported the motion at the time.

SUBSIDIARY MOTION: Council Member Valencia moved to amend the motion to introduce the ordinance, as amended, replacing the ordinance language with the language from the ordinance considered on June 21, 2022, including any added provisions from that date, seconded by Council Member Moreno.

DISCUSSION: Council Member Ma’ae thanked Council Member Faessel for taking the time to build unity. She noted she does not disagree with the stated goal of the original ordinance and fully supports transparency. She advised she agrees with the removal of the independent expenditures but believes it is an area over which the dais has no control. She expressed concern about what happens if a member of the dais is conflicted and is unable to vote on a critical contract for the City’s operation that is needed. She also expressed concern about the impact this would have on City Council Minutes of July 12, 2022

candidates who want to run for office and for burdening staff with oversight that is already being handled by independent agencies.

Council Member Ma’ae noted that there are already rules and restrictions at the local, state, and federal levels that prohibit quid pro quo or pay-to-play. She noted she sees value in Section .050 and believes it increases transparency. She moved to modify the motion before the City Council but withdrew her motion.

Council Member Valencia explained that personal campaign contributions and independent expenditure support do not buy or sway his vote in any way. He is confident he would have won the election with or without the support he received because he is from Anaheim. He noted the community knows him and supports him and that is how he would have won. He advised laws are not created because the masses break them but because a few break them. He advised the former Mayor of Anaheim used a loophole and requested a $1,000,000 campaign contribution, not to his personal committee account, but to an independent expenditure support. He advised he believes something needs to be done to address the actions that took place. He noted that City Council could always modify a future ordinance if it did not work out the way it was intended. He advised that, in theory, he supports the ordinance but he gets hung up about doing something about abusing the independent expenditures.

Mayor Pro Tem O’Neil explained there would need to be a two-step process that would be by a majority vote to amend the original motion by Council Member Faessel, then to change that motion to become the primary motion which would then be voted on for approval or rejection.

Council Member Moreno thanked Council Member Valencia for his amended motion. He noted he believes the ordinance introduced by Council Member Faessel guts the ordinance in terms of intent.

He acknowledged that Council Member Faessel and Council Member Valencia consistently state that the money did not influence them but, unfortunately, there is a cloud that has been created, along with the Orange County Grand Jury report that has come out with a pretty stinging analysis of the Angel’s Stadium deal. He explained it is the moment where the City Council’s words and actions must align and thanked Council Member Valencia for going with an ordinance that would allow trust to come back to the City.

Council Member Moreno echoed Council Member Valencia’s points about how items are agendized on the dais. He noted he did not contest the idea of the rules requiring three votes to bring back an item within six months and believes that makes common sense. He explained that he understood that when he and Council Member Valencia seconded Council Member Faessel’s request to reagendize the item, it would come back in its original form for additional discussion. He noted he would have appreciated the professional courtesy to hear his explanation beforehand but noted what Council Member Faessel stated earlier makes sense to bring it back and continue the conversation. He noted he would have loved to have known that and shared it with residents and constituents alike.

Council Member Moreno noted that he considered this to be a gutted ordinance because at the heart of the dilemma is that the City is under the cloud of big money in addition to having a Mayor who pushed through the Anaheim Stadium deal and asked for $1,000,000 towards his Political Action Committee (PAC) to support his election.

Council Member Moreno explained the power of politics and money is so seductive that some politicians lose themselves in it and do not realize it. He advised democracy is at stake and if what the FBI investigation said is true, there is a function of a cabal that has been operating in a secret City Council Minutes of July 12, 2022

shadow way to keep City Council from having real, genuine discussions on policy and debate and do the people's business without interference.

Council Member Moreno quoted the Grand Jury that the City’s lack of transparency and rushed decisions regarding the lease and sale agreements contributed to the public's distrust of the City Council majority. He noted the question at hand is how the City restores the public’s trust. He noted the Grand Jury went on to say that the “City’s Council majority’s inappropriate handling of the stadium property transactions betrayed its constituents.” He explained the big money influence is tainting the ability of the public to trust City Council moving forward. He noted the removal of the PACs takes out the heart of what was originally proposed.

Council Member Moreno provided a brief overview of aggregate campaign contributions and PAC independent expenditures from 2016 to 2022. He reported Support Our Anaheim Resort (SOAR) PAC invested $2,200,000 in supporting candidates getting elected, Anaheim Chamber of Commerce spent $330,000, Anaheim Orange County Housing and Lodging Association spent $400,000, Anaheim Police spent $444,000, and Firefighters for Anaheim spent $200,000. He explained Disney is the biggest funder of the PACs.

Council Member Moreno noted Mr. Sidhu did not do what he did for $2,000 but did it because wanted $1,000,000. He reported that Disney has previously invested $4,000,000 in SOAR and has already invested $1,400,000 for the November 2022 campaign. He noted some members on the dais have already received some of that support. He provided a brief overview of the independent expenditures funded by economic interests supporting the current City Council. He reported Council Member Faessel has received over $600,000 from the PACs and expressed his appreciation for coming forward to say he could win without this funding.

Council Member Moreno reported he has received no funding from PACs that were implicated in the FBI investigation and acknowledged he has received funding through labor group PACs that supported his candidacy.

Council Member Moreno reported the other part of what was removed from the original ordinance was regarding campaign debt when entering office. He noted his original proposal included giving City Council a six-month window to pay off whatever debt one may have given to their campaign. He provided examples of campaign debt and noted he proposed that timeframe to allow City Council time to fundraise to relieve their campaign debt. He explained Mr. Sidhu came in with $166,000 in campaign debt from his Mayoral run and had over $100,000 for a failed Assembly run. He reported Mr. Sidhu finished paying his campaign debt in June 2020. He explained he is proposing that members of the City Council have six (6) months to pay off their debt or they lose out on recouping money.

Council Member Moreno presented a comparison of what he proposed versus the current campaign finance ordinance. He explained in the current campaign finance ordinance, recusal rules do not apply to PACs, there is no enforcement mechanism for the public to hold City Council accountable, there is no requirement to disclose campaign contributions of $250 or more, and there is no clause limiting campaign debt relief contributions. He advised, using Disney as the example, that they would simply donate to the PAC to help the candidate get elected and an elected official would still be able to vote on projects of interest. He noted he believes the 12-month recusal is fair and does not keep the City Council from doing their business.

Council Member Moreno reported the question of an enforceable public right to take action is coming from the Brown Act under current state law. It simply states that if the public believes the City Council City Council Minutes of July 12, 2022

has violated the Brown Act, it has the right to file an action within 90-days. Mr. Fabela clarified it is 30- days to notify the City Council that there is a problem that provides a public check and balance.

Council Member Moreno inquired why the City Council Members cannot recuse themselves from voting on public employee contracts under state law. Mr. Fabela was unsure if he had that conversation or garnered that opinion, but it is consistent with the Levine Act. He explained staff has not looked into this because when Council Member Moreno agendized this way back, he wanted to be consistent with the Levine Act on low bid contracts, personal employment contracts, and labor contracts. He explained both Council Member Moreno and Council Member Faessel wanted to be consistent with the Levine Act originally, so it was kept that way. He explained Council Member Moreno added a requirement that if there was not a recusal on those issues that there would be at least a disclosure requirement if they participated.

Council Member Moreno recalled there is another state law that local campaign finance cannot preclude another aspect of state law which is the right of collective bargaining and contracts. Mr.

Fabela advised he would revisit it. Council Member Moreno noted the next best thing is to disclose.

Council Member Moreno reported his original campaign finance ordinance states that City Council Members can only fundraise in the year of the election. He expressed support for the amendment to restore these to the ordinance.

Council Member Moreno inquired if, on its face, is the campaign reform ordinance unconstitutional? Mr. Fabela advised there is no question that a legislative body has the ability and right to control itself and its rules on ethics and conflicts which was from a 2011 decision authored by Justice Scalia who came to the opinion that Council Members if restricted from voting on something because of their own rules do not have their First Amendment rights violated. He explained when Citizens United came out it allowed there to be unlimited contributions to independent committees. He believed it is probably appropriate but is untested. He noted that he does not see any significant barriers at this point.

Council Member Moreno inquired if there was something explicitly that says the City is violating any aspect of the law or constitutionality on its face. Mr. Fabela advised there is no case on all four.

Council Member Moreno encouraged City Council to support the amendment, so the City Council does not fall prey to both the perception and practice of abusing campaign finance and the need for people to feel they have to donate money to get their projects heard.

SUBSIDIARY MOTION: Council Member Valencia moved to amend the motion to introduce the ordinance, as amended, replacing the ordinance language with the language from the ordinance considered on June 21, 2022, including any added provisions from that date, seconded by Council Member Moreno. ROLL CALL VOTE: AYES – 3: (Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae). Motion failed.

DISCUSSION: Mayor Pro Tem O’Neill noted many public commenters called for moving the previous version of the ordinance that the City Council had considered that regulated independent expenditures potentially in a manner consistent with Supreme Court rulings, and restricted contributions from some City stakeholders while allowing others, like unions, unfettered ability to spend and support their chosen candidates. He noted he understands why certain members of the public would support that because it favors their candidates who otherwise struggle to garner support from the business community.

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Mayor Pro Tem O’Neil reported that this issue is not as much about contribution limits or recusals as it is about transparency. He advised the issue of transparency was echoed by several public commenters. He agreed the public has a right to know who is receiving contributions and from whom so they can hold their elected officials accountable for the votes that they cast. He advised he wants the public to know who supports his campaign, but he does not want to give an inequitable voice to special interests that some may deem more acceptable than others. He explained there may be times when projects for approval come before the City Council where campaign contributions may not have yet been reported by the proponents or by lobbyists working on a project. He also noted that if it is in between lobbying report periods or campaign finance reporting periods, the public has no way to know.

SUBSIDIARY MOTION: Mayor Pro Tem O’Neil moved to amend the motion to introduce the ordinance, as amended, renaming the title of Section 1.09.051 to “Contribution Disclosure Requirements,” striking subsections .020, .030, and .040, and amending the language in subsection .050 to read “A party to a proceeding before the City involving a license, permit, or other entitlement for use and a lobbyist as defined in Anaheim Municipal Code Section 1.11.010 who assisted the party in the matter subject to the proceeding shall disclose on the record of the proceeding any contribution not already made publicly available on the City’s lobbyist registry or the elective City’s officer’s campaign filing report to any elective City officer for more than $250. When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before the City, the majority shareholder is subject to the disclosure and prohibition requirements herein”, seconded by Council Member Diaz.

DISCUSSION: Mayor Pro Tem O’Neil explained that transparency is his issue, and it is about the public knowing about who is receiving contributions from whom so they can hold people accountable.

Mayor Pro Tem O’Neil requested staff summarize the motion for clarification. Mr. Fabela noted his understanding of the amendment.

Mayor Pro Tem O’Neil explained to his colleagues that this is tedious, but this is the first reading of an ordinance. He explained that during the first reading the specific language that is being approved has to be read unlike when an item is being debated and City Council can provide direction and approve it at a later time.

Council Member Faessel expressed disappointment in the vote and noted that City Council is right back where it was, and he is now out of the rotation. He believed City Council needs to come up with something tonight and agree on something. He noted he tried his best to bring something forward that would lead to the agreement of his colleagues. He thanked Council Member Valencia for trying to restate what happened at the last meeting. He advised he would need to chew on Mayor Pro Tem O’Neil’s concerns a little longer.

Council Member Diaz expressed concern about the unintended consequences. He advised this would only help candidates that are endorsed by parties and if a candidate is independent, this would hurt them. He explained this would bring a ton of money from outside the City and provided examples. He explained that this would not benefit independents like himself and would only help the party line. He noted he would like to see Council Member Valencia’s proposal brought to City Council in the future to increase penalties for a lobbyist who violates the rules and the law.

Council Member Moreno noted that Council Member Diaz’s points were well taken, especially the point that 1/3 of voters are non-partisan. He explained that the reason many people fought for district elections is that running at-large took hundreds of thousands of dollars to simply put out one mailer.

He referenced the millions of dollars going towards supported candidates by donors who have a City Council Minutes of July 12, 2022

direct financial interest in the policies and budgets of the City. He noted he believes that is different than outside money that has an ideological interest in the City.

Council Member Moreno reported that to him the heart of why the Grand Jury investigated the City and showed in their findings is that this is about pay-to-play and that people who invest in City elections to support candidates are then voting on items of financial interest to those very donors. He noted that is an issue and it is about policies and budgets and contracts that financially benefit donors.

Council Member Moreno reported that he could not support Mayor Pro Tem O’Neil’s disclosure amendment. He recalled that at the Sunkist Plaza public hearing when the developer came up, he inquired why he hired Jeff Flint, the most powerful lobbyist in the City, and Mayor Pro Tem O’Neil immediately jumped to a point of order that Council Member Moreno was politicizing because he was asking for disclosure that the developer hired a high price consultant. He noted he would be interested to understand why Mayor Pro Tem O’Neil could now support this.

Council Member Moreno pointed out that when the City Council majority at the time voted to appoint Mr. Sidhu as the lone negotiator for the stadium deal, Mr. Sidhu had just received a $2,000 contribution from the Angels. He advised when he told Mayor Pro Tem O’Neil at the time that it does not look good, Mayor Pro Tem O’Neil responded that it does not matter.

Council Member Moreno noted that ultimately a cabal flourished, and he worries that if the City does not do something that is much more substantive, then big money will continue influencing these decisions. He advised that disclosure is nowhere near enough. He advised when Mr. Sidhu and Mayor Pro Tem O’Neil tabled the original proposal he made, they said there was enough campaign finance reform, and anyone could look up who is funding campaigns already. He noted he would like to hear why Mayor Pro Tem O’Neil thinks that simply saying disclosure would be enough given what the City has already experienced.

Mayor Pro Tem O’Neil advised there was a motion to amend on the floor to consider and he was asking for the vote.

Council Member Diaz asked for clarification on the vote. Mayor Pro Tem O’Neil clarified the motion is to amend the original motion made by Council Member Faessel to replace the ordinance language with the language he suggested.

SUBSIDIARY MOTION: Mayor Pro Tem O’Neil moved to amend the motion to approve, as amended, renaming the title of Section 1.09.051 to “Contribution Disclosure Requirements,” striking subsections .020, .030, and .040, and amending the language in subsection .050 to read “A party to a proceeding before the City involving a license, permit, or other entitlement for use and a lobbyist as defined in Anaheim Municipal Code Section 1.11.010 who assisted the party in the matter subject to the proceeding shall disclose on the record of the proceeding any contribution not already made publicly available on the City’s lobbyist registry or the elective City’s officer’s campaign filing report to any elective City officer in amount of more than $250. When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before the City, the majority shareholder is subject to the disclosure and prohibition requirements herein,” seconded by Council Member Diaz. ROLL CALL VOTE: AYES – 3: (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae); NOES – 3 (Council Members Moreno, Valencia, and Faessel).

Motion failed.

City Council Minutes of July 12, 2022

DISCUSSION: Mayor Pro Tem O’Neil noted that brings City Council back to the original motion that was made by Council Member Faessel at the beginning of the discussion.

Council Member Moreno inquired if there was any part of the original ordinance that the majority might agree upon.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision requiring Council Members to recuse themselves from any action taken by the City that would impact a third party (PACs/independent expenditures) who contributed more than $250 to that Member’s election campaign within the preceding 12 months, seconded by Council Member Valencia.

DISCUSSION: Council Member Moreno advised at the heart of the issue is the influence of money to assure the public that City Council’s votes are not a function of benefitting financial donors and to reintroduce recusal rules for PACs that could still contribute but they know they would not be able to have their projects voted on with the first six (6) months of a candidate’s election or within 12-months of having received a contribution.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision requiring Council Members to recuse themselves from any action taken by the City that would impact a third party (PACs/independent expenditures) who contributed more than $250 to that Member’s election campaign within the preceding 12 months, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 3: (Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae).

Motion failed.

DISCUSSION: Mayor Pro Tem O’Neil inquired if Council Member Moreno had another amendment.

Council Member Moreno explained that City Council voted on the entire restoration an hour and a half ago and he is trying to piecemeal it per the intention of Council Member Faessel. He requested Mayor Pro Tem O’Neil’s respect regarding the deliberative process.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision applicable to PACs and individual contributions that for the 12 months following a final decision by the City (increased from the three (3) months mandated in the Levine Act), a Council Member may not accept, solicit, or direct a contribution from the party or any participant who was impacted by that decision, seconded by Council Member Valencia.

DISCUSSION: Council Member Faessel advised that he believes 6-months is reasonable.

Council Member Moreno inquired if Council Member Faessel’s 3-month proposal was to start the very base of the Levine Act. Council Member Faessel confirmed that was his intent to start the conversation.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision applicable to PACs and individual contributions that for the 12 months following a final decision by the City (increased from the three (3) months mandated in the Levine Act), a Council Member may not accept, solicit, or direct a contribution from the party or any participant who was impacted by that decision, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 3: (Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae). Motion failed.

City Council Minutes of July 12, 2022

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision allowing members of the public to challenge action allegedly taken in violation of the recusal requirements, modeled after the Brown Act’s provisions for these types of challenges, seconded by Council Member Valencia.

DISCUSSION: Council Member Moreno noted it mirrors the Brown Act, which allows the public to challenge a decision under the Brown Act for 30 days after they feel it was violated.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision allowing members of the public to challenge action allegedly taken in violation of the recusal requirements, modeled after the Brown Act’s provisions for these types of challenges, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 3:
(Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae). Motion failed.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision that although Council Members do not need to recuse themselves from votes involving low bid, labor, or personal employment contracts, Council Members are required to disclose on the record before voting that they have received a contribution of more than $250 from the party or participant to that type of contract, seconded by Council Member Valencia.

DISCUSSION: Council Member Moreno explained private labor groups would have been caught under the PACs as well because they also contributed to PACs and if they have a financial interest with the City any Council Member would have had to recuse themselves as well. He explained that for public employee unions, the City Council cannot recuse themselves so this is the furthest City Council could go.

Council Member Diaz reported the President of the United States, Congress, the Governor of California, and the California Legislature all take contributions. He explained this is designed to help party liners to help party endorsees. He noted this would only help outside City money with outside City philosophies and that is why he is voting against it.

Council Member Moreno responded that Council Member Diaz appears comfortable with voting in the financial interest of his donors and pay-to-play. He expressed concern that Council Member Diaz does not have a concern about the cloud over the City. He wondered how Council Member Diaz resolves to ensure the public trust if he does not support disclosure. He explained that nothing he said suggests that a City Council Member could not accept contributions, it just says a City Council Member could not vote on the financial interest of donors.

Council Moreno expressed disbelief that Council Members from Districts 1 and 2 are not supportive of this ordinance since their areas have suffered the most from special interests funding candidates. He asked them for their solutions to what the FBI and Grand Jury said was pay-to-play politics through a cabal and which many folks on this dais were named as being somewhat associated. He encouraged City Council to vote on the very least of disclosure rules for contributions that would include public employee groups as well as personal labor contracts.

Council Member Diaz vehemently advised that he does not support or participate in pay-to-play. He explained that the example of the President, Congress, etc. is a tradition in this country. He reiterated that this ordinance is just to bring money from outside the City to benefit people in the party lines and destroys communities.

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Council Member Ma’ae advised that much of this is based on implication, speculation, and unsubstantiated facts that the City would not have until the investigation is complete. She explained if this is implemented, City Council could be left in a position where multiple City Council Members could not vote on an item and that may stop business from moving forward. She noted it was time to get on with the City’s day-to-day business that could not move forward because of the time that was being spent on repetitive requests that were going nowhere.

Council Member Moreno explained that discussion and debate are not bad things. He advised he has requested meetings and Council Member Ma’ae does not want to meet. He stated that he would email her tomorrow with a request to meet and discuss multiple items.

Council Member Moreno explained to Council Member Diaz that 10 years ago eight (8) young men were killed in record calendar time by the Anaheim Police Department (APD), which caused a riot in the City. He noted it is not just due to the Minnesota incident, but the fact that there is a lot of concern with APD which is why it needed to be reviewed. He advised that according to the police data, overall crime is going down in the City. He reported that the APD’s budget has increased more than any other department over the last 10 years.

Council Member Moreno inquired if the unsubstantiated facts that Council Member Ma’ae is referring to include the FBI report about the former Mayor. He noted if so, she called for his resignation based on those unsubstantiated facts. He advised the FBI filed an affidavit that includes wiretapping, and the Grand Jury said the City betrayed the public trust in the Angels Stadium deal along with the State of California filing a lawsuit against the City that it violated the law. He noted he believes these are all substantiated. He explained that this is what happens when a lot of money gets invested in the City’s elections and influences decisions. Lastly, he explained he is just asking for disclosure when a contribution is received.

Council Member Ma’ae clarified that it is clear what happened with the Mayor and those statements so just to clarify that is what she was referring to.

Council Member Moreno noted the former Mayor is stating these are unsubstantiated facts as well.

He noted this ordinance is to give the public something substantive, but her point is well taken.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision that although Council Members do not need to recuse themselves from votes involving low bid, labor, or personal employment contracts, Council Members are required to disclose on the record before voting that they have received a contribution of more than $250 from the party or participant to that type of contract, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 3: (Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae). Motion failed.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision that a City candidate or a controlled committee for such candidate shall only solicit and accept contributions from one year immediately preceding the general municipal election for the office sought through no more than 180 days after the date of the election, seconded by Council Member Valencia.

DISCUSSION: Council Member Faessel inquired if the candidate still has 180 days after the date of election to recoup campaign debt. Council Member Moreno confirmed that was correct.

City Council Minutes of July 12, 2022

Council Member Valencia requested clarification that City Council was voting on the Levine Act and this specific amendment, which was confirmed.

SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to introduce the ordinance, as amended, adding a provision that a City candidate or a controlled committee for such candidate shall only solicit and accept contributions from one year immediately preceding the general municipal election for the office sought through no more than 180 days after the date of the election, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 3: (Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae).

Motion failed.

DISCUSSION: Council Member Diaz advised he believes limiting any elected official or any campaign from recouping any campaign debt amount in any time frame would be unconstitutional.

Mayor Pro Tem O’Neil noted the amendment has already been defeated but Council Member Diaz’s point is taken but moot.

SUBSIDIARY MOTION: Council Member Valencia moved to amend the motion to introduce the ordinance, as amended, adding a provision that requires a candidate or controlled committee to submit a disclosure report within 72 hours of receiving any contribution(s) that total $250 or more during the reporting period, seconded by Council Member Moreno. ROLL CALL VOTE: AYES – 3:
(Council Members Moreno, Valencia, and Faessel); NOES – 3 (Mayor Pro Tem O’Neil and Council Members Diaz and Ma’ae). Motion failed.

DISCUSSION: Council Member Valencia advised that dwindling the ordinance down to the Levine Act does not take the necessary steps in the right direction in light of everything that has happened.

He advised he does not feel comfortable supporting the bare minimum Levine Act because it does not go far enough and he would be abstaining.

Council Member Faessel explained the reason he presented this as he did is that he was trying to build something up. He reiterated that he believes he could have run his campaign within these limits.

He noted he welcomed and encouraged restoring it to what was originally proposed. He explained the only reason he brought the Levine Act forward is that it is the fundamental building block onto which all of Council Member Moreno’s enhancements were built and is used by other organizations.

He hoped to see something return in the future that has more teeth than the Levine Act. He noted he would probably not support this even though he brought it forward.

Council Member Moreno echoed Council Member Faessel’s sentiments. He has concluded that doing nothing on the PACs and allowing people to continue to vote on projects or items that are of financial interest to their donor’s means they feel there is nothing wrong in the City. He encouraged those City Council Members who voted against the amendments to bring forward solutions. He noted the public came out strong saying they need something substantive. He noted that approving what was proposed tonight suggests that $2,000 influences a vote. He reported the Anaheim Republican Assembly, the Democratic Party, independents, and residents of all ages attended the meeting and begged City Council to prove they are not owned by the PACs regardless of the ideology. He concluded that some members of City Council are simply looking for a mailer that says they approved campaign finance reform when they did not. He advised he would also be abstaining on this item as it is nowhere near what the City needs.

Council Member Valencia stated for the record that even voting on this item with the title of Campaign Finance Reform is extremely misleading and does a disservice to the City. He advised it should have City Council Minutes of July 12, 2022

been called the Levine Act from the get-go. He encouraged someone to amend and change the title so City Council does not pass the Campaign Finance Reform Act of Anaheim. He reiterated that he would be abstaining from this item.

Mayor Pro Tem O’Neil advised he has heard the maker of the motion has withdrawn his support for his item, and two abstentions. He noted if this goes to a vote it is not likely to receive the support of City Council. He inquired if the maker of the motion would simply like to withdraw the motion Council Member Faessel advised he went into this with hope but understood there was a stalemate at the last meeting. He had hoped there would be a compromise, but City Council has not been able to move forward. He confirmed he did not contact anyone on this subject, and he felt it was his responsibility to bring it forward in such a way that City Council could achieve something. He agreed that it might be a political issue as well and agreed it was best to withdraw the item. Council Member Faessel withdrew his motion.

Council Member Ma’ae advised this just became clear how politicized this has become because Council Member Moreno now wants to abstain because he does not want the vote results on a mailer.

Council Member Moreno confirmed he does not want this weaponized by Council Member Ma’ae and the cabal. He does not understand why Council Member Ma’ae needed to make such comments. He noted if Council Member Ma’ae does not participate in that kind of politics then they have not seen her videos. He advised this is fundamentally about politics and noted there is a difference between engaging in politics and figuring out how to regulate the politics to get to the work of what the people want City Council to be working on and it is something else to weaponize it. He explained the funding from PACs weaponized it to put fear into voters to create division. Lastly, he advised he is just ensuring the people can trust City Council’s decision-making.

With the original motion withdrawn, there was no further discussion or action.

17. District 5 appointment of an unscheduled vacancy to the Budget, Investment, and Technology Commission to serve a term ending December 31, 2024.

Budget, Investment, and Technology Commission:

District 5 appointment: Ryann Higgins (term ending December 31, 2024) (unscheduled vacancy, Rory K. Zaks)
NOMINATION: Council Member Faessel nominated Ryann Higgins.

DISCUSSION: Council Member Moreno inquired if the nominee lives in District 5. Council Member Faessel confirmed that Ms. Higgins lives in District 5.

NOMINATION: Council Member Faessel nominated Ryann Higgins. ROLL CALL VOTE: AYES – 6 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES –

0. Nomination approved.

REPORT ON CLOSED SESSION ACTIONS: None
PUBLIC COMMENTS (non-agenda items): None
City Council Minutes of July 12, 2022

COUNCIL COMMUNICATIONS:

Council Member Moreno thanked staff for their responsiveness to residents and for always being present to address needs.

Council Member Diaz expressed disappointment regarding the Governor’s signing of SB 357, legalizing loitering for soliciting prostitution, and noted that it would be difficult to address prostitution in District 1.

Council Member Ma’ae stated that SB 357 is tying the City’s hands and reported that she had reached out to the League of California Cities for advocacy and to the Police Chief to see who would be willing to support us in trying to appeal this or take action to show opposition.

Council Member Faessel thanked the YMCA, AbbVie Foundation, Community Services Department, Kaboom!, and a few colleagues for the playground build day at Rio Vista Park, and looked forward to the next project at Center Greens.

COUNCIL AGENDA SETTING:

Council Member Ma’ae requested staff commission an outside Planning consultant firm to conduct a study of the Brookhurst Corridor including researching the needs of the local community, engaging with all stakeholder types, and making recommendations regarding district options, funding, and adoption.

Council Member Moreno requested an agenda item on August 23, 2022, to discuss, with potential action, to formally designate and recognize Little Arabia. He also requested a meeting with the Planning Director, City Manager, and two Council Members, if interested, to discuss street vendors and restaurateur concerns.

Council Member Valencia reported that he had requested an agenda item related to changes to the lobbying ordinance, including expanding record retention time frames and criminalizing the breaking of the policy, which he plans to bring forward in August.

Council Member Moreno reported that the agenda item he requested related to an Admissions Tax would come forward on July 19, 2022, for City Council’s consideration.

ADJOURNMENT:

At 11:14 P.M., Mayor Pro Tem O’Neil adjourned the City Council in memory of the victims of the July 4 Highland Park parade shooting and Anaheim resident Juan Carlos Reynaga Respectfully submitted,
Theresa Bass, CMC
City Clerk