ANAHEIM CITY COUNCIL
REGULAR AND REGULAR ADJOURNED MEETING
OF OCTOBER 4, 2022
The regular meeting of October 4, 2022 was called to order at 3:00 P.M. and adjourned to 4:00 P.M. for lack of a quorum. The regular adjourned meeting was called to order at 4:01 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 September 29, 2022.
MEMBERS PRESENT: Mayor Pro Tem Trevor O’Neil and Council Members Jose Diaz, Gloria Sahagún Ma’ae, and Stephen Faessel. Council Members Jose F.
Moreno and 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 4:01 P.M., Mayor Pro Tem O’Neil recessed to closed session for consideration of the following:
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of California Government Code Section 54956.9: Two potential cases At 5:15 P.M., Mayor Pro Tem O’Neil reconvened the Anaheim 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: Chaplain Nathan Zug, Anaheim Police and Fire FLAG SALUTE: Council Member Avelino Valencia
PRESENTATION: Presentation Recognizing the 2022 Community Services VolunTEENs Community Services Senior Program Specialist Arely Escoto provided a brief overview of the program and recognized several VolunTEENs who had served over 100 service hours.
ACCEPTANCE OF OTHER RECOGNITIONS (Top be presented at a later date):
Recognizing October 10, 2022, as Indigenous Peoples’ Day City Council Minutes of October 4, 2022
Recognizing October 9 - 15, 2022, as Fire Prevention Week Anaheim Fire & Rescue Fire Marshal Lindsey Young provided a brief history of Fire Prevention Week.
She invited the public to participate in the Wildfire Preparedness Fair on October 10, 2022 at Fire Station 10 from 10:00 A.M. to 2:00 P.M.
Recognizing October 16 – 22, 2022, as National Friends of the Library Week Anaheim Public Library Mobile Librarian Jon Anderson accepted the proclamation for National Friends of the Library Week and provided a brief overview of the Friends of the Library.
At 5:29 P.M., Mayor Pro Tem O’Neil called to order Anaheim Housing Authority (in joint session with the City Council).
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (all agenda items, except public hearing):
City Clerk Theresa Bass reported that a total of four (4) 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 11 public comments were received electronically, distributed to the City Council, and made part of the official record]. – See Appendix.
Mark Richard Daniels recognized Hilgenfeld Mortuary for their 95 years of service to the community.
He reminded City Council that the FBI is watching City Council and the City. He noted that he hopes the upcoming elections restore the community’s faith in the City. He recommended an audit of the City’s finances be conducted.
Junior Tauvaa thanked City Council for their assistance with tourism and the Convention Center's recovery from the pandemic. He reported the average daily rate (ADR) for hotel rooms was $177.54 and today is $206.29, which is a 16% increase. He thanked City Council for their leadership in investing in the community.
Rich Gomez, Southwest Regional Council of Carpenters, expressed support for the extension of the 1700 South Harbor Boulevard Hotel Project and noted it would ensure construction jobs are not in danger and would be built by a local workforce. He encouraged City Council to approve the project.
Jeremy Rendon, Sheet Metal Workers Local 105, expressed support for the extension of the 1700 South Harbor Boulevard Hotel Project and noted it would help support the local construction workforce.
Luis Aleman, Orange County Labor Federation, expressed support for the extension of the 1700 South Harbor Boulevard Hotel Project and encouraged City Council to approve the item. He thanked City Council for approving the ocV!BE project.
Haitham Awaineh, Ironworkers Local 433, expressed support for the extension of the 1700 South Harbor Boulevard Hotel Project and encouraged City Council to approve the item.
City Council Minutes of October 4, 2022
Mazatl Tepehyolotzin reported more than 10,000 people have signed the petition to remove the Colonists as the mascot name for Anaheim High School. He noted it does not represent the school or its students. He encouraged City Council and residents to attend the Indigenous Peoples’ Day celebrations.
Jeanine Robbins reported City Attorney Robert Fabela and City Manager Jim Vanderpool are a drain on City resources and noted their raises were not warranted given the illegal actions they recommend to the City Council. She recommended they be replaced given that they helped City Council reject the Grandma’s House of Hope appeal. She noted Chief Communications Officer Michael Lyster has become a symbol for everything that is wrong with the City. She read quotes from local newspapers alleging that the City illegally blocked the Grandma’s House of Hope appeal.
Mike Robbins reported Save Our Anaheim Resort (SOAR) has $1,400,000 and is under investigation by the FBI. He provided an overview of campaign donations for each Council Member.
Paul Sanford, Asset Manager & CEO for Wincome Hospitality, noted Wincome Hospitality has been a part of the Anaheim Community for many years. He reported they most recently opened the Westin Anaheim Resort, which provided over 1,000 construction and hospitality jobs for the local workforce.
He advised their hotels and guests play a critical role in the income generated for the City’s General Fund and Transient Occupancy Tax (TOT). He encouraged City Council to approve the extension of the 1700 South Harbor Boulevard Hotel Project. He thanked the trade unions for their partnership on the project.
Ernesto Medrano, Los Angeles and Orange Counties Building and Construction Trades Council, thanked City Council for supporting the ocV!BE project and encouraged them to approve the extension of the 1700 South Harbor Boulevard Hotel Project.
Bryan Kaye noted that the Grandma’s House of Hope appeal denial was a bad decision. He noted that Anaheim Police officers are killing people and setting the blame on City Council. He encouraged City Council to do and say something.
Lupe Ramirez, Rancho La Paz Mobile Home Park resident, reported that nothing has changed at the City Council regarding mobile home parks and impending rent increases for other mobile home parks in Anaheim. She encouraged City Council to assist the senior citizens that reside in Anaheim’s mobile home parks and noted that Council Member Valencia takes a lot of money from John Saunders.
Douglas Mangione, International Brotherhood of Electrical Workers (IBEW), expressed support for the extension of the 1700 South Harbor Boulevard Hotel Project and encouraged City Council to pass the item.
Norma Lopez, Teamsters Local 952, expressed support for the extension of the 1700 South Harbor Boulevard Hotel Project and encouraged City Council to pass the item. She noted this project would provide quality jobs to the local workforce.
COUNCIL COMMUNICATIONS:
Council Member Diaz highlighted Abyssinia Restaurant, an Eritrean-immigrant-owned East African Restaurant, and encouraged residents to support the business and recommended the coffee ceremony on Friday afternoons. He announced the West Anaheim Neighborhood Services Meeting at Brookhurst Community Center on Thursday, October 6 at 7:00 P.M. He further announced that City Council Minutes of October 4, 2022
October 5 is National Coffee with a Cop Day and noted residents could meet with the Anaheim Police Department in District 1 at 7-11 at 3020 West Lincoln Avenue from 7:30 – 8:30 A.M.
Council Member Ma’ae encouraged everyone to visit the Anaheim Fall Festival and Halloween Parade website, www.anaheimfallfestival.org, to find ways to volunteer and donate, including via a fundraiser at Ruby’s all month. She announced the Districts 1 and 2 Neighborhood Services Meeting on Thursday, October 6 at 7:00 P.M. at the Brookhurst Community Center. She also announced National Coffee with a Cop Day locations at the Starbucks on Ball Road and Norm’s on Euclid Street.
Council Member Moreno thanked all involved with the clean-up day and food distribution in the Glen- Onondaga neighborhood, specifically the Anaheim Public Utilities and Community Services Departments, local non-profits, Fair Housing Council of Orange County, volunteers, and neighborhood residents. He specifically thanked George Grachen of Friends of Families and a Balsam-East community leader. He also thanked Code Enforcement and the Police Department who have been there more consistently to address difficult situations. He announced that Governor Newsom signed SB-1429 making campaign reform effective January 1, 2023, including prohibitions on local City Councils voting on items about licenses, permits, and entitlements for use where they had received over $250 in the preceding 12 months from a party, party’s agent, or person with a financial interest in the project as well as to not receive over $250 in the 12 months following the final decision. He hoped this would provide greater accountability and transparency.
Council Member Valencia thanked Assemblymember Tom Daly for working closely with the District 4 office in obtaining $15,000,000 to expand and redevelop Boysen Park. He announced a community meeting regarding the future of Boysen Park on Monday, October 10 at 6:00 P.M. at the Anaheim United Methodist Church at 1000 S. State College Blvd.
Council Member Faessel requested the meeting adjourn in memory of 95-year resident Daisy Vuksanovich, an Anaheim Police Department employee from 1957 to 1978 and an active Anaheim High School Alumni Association member.
CITY MANAGER’S UPDATE:
City Manager Jim Vanderpool announced that Anaheim was chosen to host the Women Leaders in Law Enforcement conference, to which Chief Cisneros welcomed attendees to a sold-out event and the Anaheim Police Department (APD) was well represented.
He reported that the Anaheim Police Department (APD) was made aware of a video on Instagram of a man kicking and beating a dog. Through the efforts of Detective Meadows and the entire Criminal Investigations team, a felony arrest warrant and search warrant were issued, and in conjunction with widespread media attention and hundreds of phone calls and tips, Mr. Vanderpool reported that the subject turned himself into APD and the dog was recovered from a shelter in Los Angeles. He thanked APD for a job well done.
He also reported that Porto’s announced at the D3 Expo that their next location would be in Anaheim at Downtown Disney, with an estimated opening date in early 2024.
At 6:17 P.M., Mayor Pro Tem O’Neil recessed the Anaheim City Council to consider the Anaheim Housing Authority agenda. Mayor Pro Tem O’Neil reconvened the Anaheim City Council at 6:18 P.M.
City Council Minutes of October 4, 2022
CONSENT CALENDAR: At 6:18 P.M., the Consent Calendar was considered with Council Member Moreno pulling Item No. 06 for separate discussion and consideration.
MOTION: Council Member Diaz 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.
2. Approve proclamation recognizing Hilgenfeld Mortuary’s 95th year of business.
3. Award the contract to the lowest responsible bidder, CEM Construction Corporation, in the amount of $1,721,945.50, for the Lincoln Avenue Sanitary Sewer and Street Improvements Project from Dale Avenue to Magnolia Avenue; authorize the Director of Public Works 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 3, Section 15303(d) (New Construction) of Title 14 of the California Code of Regulations; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.
4. Approve an agreement with KOA Corporation, in an amount not to exceed $298,205.60 inclusive of a 10% contingency, to provide engineering services for the Citywide Safe Routes to School Sidewalk Gap Closure Project, and authorize the Director of Public Works, or designee, to execute the agreement and related documents and to take the necessary actions to implement and administer the agreement.
5. Approve the First Amendment to the Police Department Towing Service Agreements with Standard Enterprises dba To’ and Mo’ Towing; P&H Enterprises, Inc., dba Anaheim Fullerton Towing Company; Pacific Towing, Inc.; and Country City Towing, Inc. extending the contract period through December 31, 2022 for vehicle towing and associated services for the Police Department.
7. RESOLUTION NO. 2022-112 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring a portion of City-owned property to be "Exempt Surplus" properties pursuant to California Government Code Section 54221(b)(l) and notice of intent to sell a portion of city-owned real property (portion of the Anaheim Hills Golf Course located at 5601 East Nohl Ranch Road, approximately 4,878 square feet abutting 543 South Paseo Ganado).
8. RESOLUTION NO. 2022-113 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a public utility easement located at 2525 East Ball Road pursuant to California Streets and Highway Code Section 8330, et seq.-summary vacation (ABA2022-00419).
9. RESOLUTION NO. 2022-114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to grant non-exclusive taxicab franchises for the purpose of operating taxicab service in the City of Anaheim; stating the terms and conditions upon which it is proposed to grant the franchises; and establishing the date, hour and place when and where any persons having any interest therein or any objection thereto may appear and be heard thereon (public hearing scheduled for November 1, 2022).
City Council Minutes of October 4, 2022
10. ORDINANCE NO. 6537 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to Zoning (Reclassification No. 2020-00333) (DEV2020-00125) [reclassifying a portion of the Project Site from the “C-G” General Commercial zone to apply the Platinum Triangle Mixed Use (PTMU) Overlay zone] (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
ORDINANCE NO. 6538 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapters 18.20 (Platinum Triangle Mixed Use (PTMU) Overlay Zone); 18.38 (Supplemental Use Regulations); 18.40 (General Development Standards); 18.60 (Procedures); 18.62 (Administrative Reviews); of Title 18 (Zoning) of the Anaheim Municipal Code (Zoning Code Amendment No. 2020-00174) (DEV2020-00125) (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
ORDINANCE NO. 6539 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM approving the Development Agreement No. 2020-00004 by and between the City of Anaheim and Anaheim Real Estate Partners, LLC, and authorizing the Mayor Pro Tem to execute said agreement for and on behalf of the City (DEV2020-00125) (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
ORDINANCE NO. 6540 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Section 4.04.402 (Arena Special Sign District) to Chapter 4.04 (Outdoor Advertising Signs and Structures – General) of Title 4 (Business Regulation) of the Anaheim Municipal Code (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
ORDINANCE NO. 6541 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 4.04.400 (ARTIC Special Sign District) of Chapter 4.04 (Outdoor Advertising Signs and Structures – General) of Title 4 (Business Regulation) of the Anaheim Municipal Code (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
ORDINANCE NO. 6542 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 4.04.401 (Arena/Stadium Special Sign District) of Chapter 4.04 (Outdoor Advertising Signs and Structures – General) of Title 4 (Business Regulation) of the Anaheim Municipal Code and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), 15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and because it is not a project as defined in Section 15378 of the CEQA Guidelines (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
ORDINANCE NO. 6543 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 4.08.020 (Advertising Signs Along Freeways – Restricted) of the Anaheim Municipal Code for consistency with the Special Sign Districts established by Anaheim Municipal Code Sections 4.04.400 (Transit Special Sign District), 4.04.401 (Stadium Special Sign District) and 4.04.402 (Arena Special Sign District) (introduced at the City Council meeting of September 27, 2022, Public Hearing Item No. 25-A).
City Council Minutes of October 4, 2022
END OF CONSENT CALENDAR:
6. Approve a Revised Schedule of Performance of the Operating Covenant Agreement with Good Hope International pursuant to Section 818 (Enforced Delay; Extension of Times for Performance) and an extension to the term of Development Agreement No. 2016-00001 with Good Hope International pursuant to Section 7.3 (Force Majeure; Extension of Time of Performance) to extend both agreements for 24 months due to impacts of the COVID-19 pandemic; and determine on the basis of the evidence submitted by Good Hope International that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2016-00001 for the 2021-2022 review period (1700 South Harbor Boulevard Hotel Project).
Economic Development Director Sergio Ramirez reported that staff has received a request from Good Hope International, the applicant for the proposed hotel at 1700 South Harbor Boulevard, to extend their Operating Covenant Agreement (OCA) and their Development Agreement (DA) under the force majeure clause resulting from the COVID-19 pandemic. He advised that the impacts of the pandemic on the Anaheim Resort were unprecedented as the City’s main tourist attractions and Convention Center were forced to close.
Mr. Ramirez reported that, as the pandemic begins to subside, the City now sees new and different economic impacts in the construction supply chain, workforce shortages, and availability of development financing. He advised that the applicant has requested an extension as the pandemic has impacted the proposed project timeline. He reported that on July 12, 2016, City Council approved an OCA and DA for a 580-room luxury hotel on an 8.8-acre property located at 1700 South Harbor Boulevard. He noted that the applicant recently completed the Anaheim Westin Resort in the middle of the pandemic and has only recently begun to stabilize.
Mr. Ramirez reported that the applicant remains committed to the opening of the second hotel but due to unique economic conditions and lack of financing, they seek to trigger the force majeure clause and are requesting an extension of twenty-four (24) months. He explained that the current schedule of performance requires that plans be submitted by November 2025. He noted the extension would move that date to November 2027. He advised that the applicant anticipates a period of 18 to 24 months to secure financing for the project, which is anticipated to be $450,000,000.
He noted that per the applicant, financing needs to be in place before plans can be developed.
Mr. Ramirez reported that the City’s third-party economist, Kevin Engstrom of Keyser Marston Associates, has confirmed the financing challenges a project of this scale would have in this economic climate. He advised that under the DA, City Council is required to annually determine if the applicant has complied in good faith with the DA and noted the applicant is in good standing.
DISCUSSION: Council Member Moreno inquired how many extensions have been provided to the applicant.
Mr. Ramirez reported the OCA and DA were amended in 2019 so the applicant could build the Westin Resort before building at the 1700 South Harbor Boulevard property. He advised that in 2018 Measures J, K, and L were approved by the voters, and the applicant requested an extension at that time to evaluate the impact of the new economic model imposed by the passage of Measure L. He reported the DA was extended at that time to 2023 and then to November 2025.
Council Member Moreno requested clarification of when City Council initially approved the project.
City Council Minutes of October 4, 2022
Mr. Ramirez reported that City Council originally approved the project in 2016 and the applicant would have had to submit plans by 2020 and finish construction in 2023. He confirmed they are now asking for an additional five-year extension.
Council Member Moreno inquired about the 70% Transient Occupancy Tax (TOT) subsidy included in the Hotel Incentive Program and also inquired if tonight’s action would extend that subsidy.
Mr. Ramirez explained tonight’s action is a legal provision of force majeure within both the OCA and DA and includes the Hotel Incentive Program.
Mr. Ramirez explained the Hotel Incentive Program was developed to incentivize the construction of 4-diamond luxury hotels. He noted that before there was a challenge to attracting 4-diamond luxury properties outside of the Disneyland Resort. He advised in 2015 the Hotel Incentive Program was approved allowing a 70/30 split of TOT for up to 2,500 rooms for 20 years. He explained that Los Angeles and Long Beach have similar incentive programs.
Council Member Moreno advised that he struggled with the Hotel Incentive Program and noted the Radisson Blu was constructed with no such incentives. He also noted that the ocV!BE project was also approved without similar incentives. He explained that for every $1,000,000 in TOT collected, $700,000 goes back to the developer, which is money that could go into the City’s General Fund to support funding libraries, public safety, and affordable housing programs for residents. He inquired if the economic climate still requires the Hotel Incentive Program.
Mr. Ramirez explained that the ocV!BE project has a requirement that a 4-diamond property is built.
He also explained there is a requirement in the OCA for the 1700 South Harbor Boulevard Hotel Project that the property must remain at the 4-diamond property for 20 years and if it fails to do so, they will not receive the subsidy. He noted that Garden Grove recently provided a subsidy for the new Nickelodeon Hotel being built, so it is still an existing practice. He noted the developer is required to provide an initial investment of $225,000 per room for the shell costs. He explained that to meet the 4-diamond property standards, the property must meet a minimum standard of the total operation.
Council Member Moreno commented that this project continues to incentivize one hotel developer who has already received an extension. He commented that the staff report states that Measure L changed the economic model on which the Anaheim Hotel and Westin Anaheim Resort were originally based by increasing labor costs at hotels that have hotel incentive program agreements with the City. He inquired about the basic requirements of Measure L.
City Attorney Robert Fabela reported that Measure L provided a minimum wage for workers at various establishments within the Resort District that received a subsidy, and this project was subject to Measure L. He was unsure how much the current minimum wage was but noted it started at $15 per hour and increased annually.
Council Member Moreno noted that Mr. Sanford previously reported that the housekeeping staff are making $22 per hour with full benefits and inquired if that was above what Measure L required.
Paul Sanford reported he did not have his details on Measure L with him today but noted they are compliant with Measure L. He explained Measure L is not a factor for the extension, but the factor is understanding when the convention and group markets are going to come back. He noted the estimates indicate they would be back in 2025. He reported that there are supply chain issues and there is a tight construction schedule. He explained the factors are timeframe, market conditions, and financial conditions.
City Council Minutes of October 4, 2022
Council Member Moreno inquired if there was a discussion with the developer if the Hotel Incentive Program was necessary at this point and if it was up for negotiation.
Mr. Ramirez explained it is not up for negotiation and reported that while ocV!BE is breaking ground next year, the hotels would be constructed in a similar timeline as those in the 1700 South Harbor Boulevard Project. He explained there is no financing available for hospitality projects and that they would secure financing through a construction loan on the equity of the property.
Council Member Moreno inquired if the City could provide the extension and not include the subsidy.
Mr. Fabela explained that is within the City Council’s discretion, but it would need to be agendized for another meeting. He noted the agenda does not reference anything about the subsidy, so he felt it is a completely separate topic. He explained if City Council does not approve the extension, it puts the agreement back into its current state of requiring construction plans by November 2025 but does not eliminate the agreement.
Council Member Diaz expressed support for the item and noted it would allow the local construction workforce to work and obtain a pension. He noted he does not feel this is a subsidy but a revenue- sharing agreement with the money being generated in the future. He advised the City is getting more revenue through this agreement than with the Anabella Hotel agreement. He believed all interested parties are benefitting from this project.
MOTION: Council Member Diaz moved to approve Item No. 06 as presented, seconded by Council Member Ma’ae.
DISCUSSION: Mayor Pro Tem O’Neil explained it is stated in the agreement that the applicant has the right to request an extension due to force majeure irrespective of whatever other agreements were in place at the time. He believed this project would provide benefits to every interested party.
He reported the City sold the land to the developer for the ocV!BE project for $630 per acre, which some could argue is a subsidy, but he sees it as a partnership. He advised that former Radisson Blu’s occupancy rate is hovering at 35%. He expressed support for the item and the need for an extension.
Council Member Valencia requested additional information on the original project approval.
Mr. Ramirez reported the OCA and the DA were approved by City Council in May 2016. He explained in 2018 there were referenda on both hotels which were approved by voters.
Mr. Fabela clarified that only the DA was before the voters in 2018. He explained that if the referenda did not pass there would be no development that would entitle the developer to the rebate.
Council Member Valencia noted that the voters approved this development and City Council is now being asked to extend due to force majeure. He expressed support for the project and the good- paying jobs that would come with the project. He requested additional information on the economic impact the City has seen due to the 4-diamond development projects in the City.
Mr. Ramirez reported there has been an increase in Average Daily Rate (ADR) along with other properties undergoing renovation to be competitive in the market. He noted that before the Hotel Incentive Program the City did not have 4-diamond hotels.
Council Member Moreno explained that Measures J and K were for the DAs and inquired how the Hotel Incentive Program works.
City Council Minutes of October 4, 2022
Mr. Ramirez explained the TOT would be collected and the City would write a check back to the developer.
Council Member Moreno explained that the voters voted for the DA and inquired if the Hotel Incentive Program was part of the DA.
Mr. Fabela confirmed it was not part of the DA. Tom Clark, Stradling Yocca Carlson & Rauth, reported that the DA was included in the ballot proposition and the argument against specifically addresses that the developer would receive a $145,000,000 subsidy under a separate agreement.
Council Member Moreno expressed support for the DA and did not believe that voters approved the subsidy. He inquired if the extension for the developer is by right.
Mr. Ramirez clarified that the extension is at the discretion of City Council. Council Member Moreno encouraged City Council to continue the item to allow for additional negotiations of the Hotel Incentive Program. He inquired if the City is still struggling with TOT and inquired if the City is still recovering.
City Manager Jim Vanderpool spoke to the Fiscal Year that closed on June 30, 2022 and advised the City’s TOT was $70,000,000 better than budgeted and continues to see that growth this fiscal year.
He confirmed the City is exceeding 2019 TOT levels.
Mayor Pro Tem O’Neil clarified that City Council is set to vote on an extension of the DA and the OCA and encouraged any City Council Member wishing to discuss the Hotel Incentive Program to agendize the item for an upcoming City Council meeting.
Council Member Moreno inquired if the Hotel Incentive Program remains in place until its current deadline if City Council does not approve the extension.
Mr. Fabela explained that an approval extends the milestones the developer needs to meet the terms of the agreement by two (2) years. He advised, if it is not approved, it goes back to the current deadline without a two-year extension.
Council Member Diaz reported the City has not fully recovered and noted that conventions are not fully back in Anaheim. He explained the developer has to borrow the money to fund the project and noted now is the time to borrow the money.
Council Member Moreno reported he has been told by staff that there is not enough money in the City’s budget to fully open libraries and repair roads amongst other things. He advised the voters approved a 15% TOT so tourists are taxed to keep the City taxes low to provide the services residents need. He advised there has been a lot of work that has been supported in the City through Community Workforce Agreements. He believed the Hotel Incentive Program is over the top and noted he could not support the item.
SUBSIDIARY MOTION: Council Member Moreno moved to continue Item No. 06 to a date uncertain to allow staff to meet with the developer and discuss the need for the Operating Covenant Agreement. Motion failed for lack of a second.
DISCUSSION: Mayor Pro Tem O’Neil inquired if the force majeure clause is a right the developer has to exercise under the agreement.
City Council Minutes of October 4, 2022
Mr. Fabela explained that City Council would be consenting to the force majeure time.
Mayor Pro Tem O’Neil inquired if City Council rejected it, the developer has the right to exercise this clause independently of City Council approval. Mr. Clark confirmed the developer would potentially have the argument available, but they are entitled to it as a matter of contract law.
Council Member Ma’ae reminded City Council that the developer has already built a 4-diamond property and has already proven to bring increased revenues to the City’s budget. She noted that a second 4-diamond hotel would only enhance those numbers. She noted economic development is critical to being able to offer assistance to low-income residents and expressed support for the project.
Motion: Council Member Diaz moved to approve a Revised Schedule of Performance of the Operating Covenant Agreement with Good Hope International pursuant to Section 818 (Enforced Delay; Extension of Times for Performance) and an extension to the term of Development Agreement No. 2016-00001 with Good Hope International pursuant to Section 7.3 (Force Majeure; Extension of Time of Performance) to extend both agreements for 24 months due to impacts of the COVID-19 pandemic; and determine on the basis of the evidence submitted by Good Hope International that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2016-00001 for the 2021-2022 review period (1700 South Harbor Boulevard Hotel Project), seconded by Council Member Ma’ae. ROLL CALL VOTE: AYES – 5 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Valencia, and Faessel); NOES – 1 (Council Member Moreno). Motion carried.
11. Receive presentation on street racing and takeovers, and enforcement update (informational item).
Anaheim Police Chief Jorge Cisneros reported Anaheim Police Department (APD) officers have responded to over 94,000 calls for service so far this year, including many for street racing. He advised that street racing is an issue in many cities, noting they happen quickly and often involve a congregation of spectators. He added they often happen at large private properties where businesses have closed for the day. He showed helicopter footage of a street takeover situation where a crowd of spectators watched a car performing tricks at an intersection.
Police Chief Cisneros reported calls for service, units dispatched, and service hours have all decreased dramatically since a peak in May 2021, crediting it to the wane of the pandemic. He noted the majority of the calls came between 9 P.M. and midnight with an uptick on weekends. He displayed a map of street racing “hot spots” based upon reports made to the APD reflecting a particular hot spot in industrial areas of East Anaheim. He reported in 2022, to date, APD has made 54 arrests along with 44 vehicular impounds for street racing and/or reckless driving. He noted several fatalities in Anaheim have been tied to street racing since 2017. He added there are also costs to the City’s Public Works staff for repairing streets damaged by street racing.
Police Chief Cisneros outlined the City’s Street Racing Ordinance enacted in February 2021 and reported APD has had 13 violations for participating in a street racing event and 42 violations for being a spectator at one. He reported on the APD’s proactive enforcement efforts to combat street racing.
Police Chief Cisneros advised the APD has joined 10 other Orange County law enforcement agencies and the California Highway Patrol in forming an anti-street racing coalition known as the City Council Minutes of October 4, 2022
Selective Traffic Enforcement against Racing and Reckless Driving (STEARRD) Taskforce. He added the task force is strategically anchored by enforcement, engineering, and education.
DISCUSSION: Council Member Moreno noted the data is only as good as the reporting and added an increasing number of residents are frustrated that results do not happen when they do call.
In response to Council Member Moreno’s inquiry, Police Chief Cisneros agreed there are times the statistics do not tell the whole story. He added that all calls to the APD are recorded and the APD responds to them. He provided an example of how a congregation of parked cars in a large parking lot is not a criminal activity, so the matter is not viewed as a high priority. He encouraged residents to continue to call to help the APD understand the situation. He agreed that he hears the same concerns as Council Member Moreno at community meetings, but it is difficult to address issues when they do not have data to help properly allocate resources. He added that takeovers happen extremely fast and often only last for a few minutes.
Council Member Moreno noted very loud mufflers can provide the appearance of a street race when there was not one.
In response to Council Member Moreno’s inquiries, Police Chief Cisneros advised increased technology is a potential enforcement remedy and added he has discussed technological uses such as cameras in conjunction with the Public Works Department. He added the APD can present video evidence to a prosecutor, but it is the prosecutor’s determination as to whether or not it is sufficient evidence to file charges. City Attorney Robert Fabela added the video would be evidence to be weighed in the context of the other evidence. Police Chief Cisneros added the prosecution would have to have several items to confirm the incident and resident images and video could be part of the package. He added the APD helicopter can show all of the requisite information, including location and license plates, from a sufficient distance and wide angle. He added public images are often not wide enough to capture all of the requisite information, particularly location.
In response to Council Member Moreno’s inquiry, Police Chief Cisneros could not confirm if they caught the street racer in the video shown to City Council as an example but added they usually catch racers appearing in the APD helicopter videos.
In response to Council Member Faessel’s inquiry, Police Chief Cisneros noted, in addition to the steep decline in street racing calls since the summer of 2021, there was also a sharp increase in calls in the spring of 2020. He advised these windows bookend the height of the pandemic when many places were closed, roads and large parking lots were available, and there were few other things to do.
In response to Council Member Faessel’s inquiry, Police Chief Cisneros advised that 911 and the non-emergency APD phone line are good ways to reach a dispatcher and it is the APD’s job to assess the issues brought forward to those phone lines. He noted the APD’s communications center has both lines and reaches the same dispatch center.
In response to Council Member Faessel’s inquiry, Police Chief Cisneros credited the call numbers today being noticeably lower than in 2018 to the creation of the STEARRD Taskforce and the City’s street racing ordinance. He added the issue needs to continue to be addressed and it will be. He lamented the APD will not be able to respond to many street racing calls for service in time. He added the calls for street racing overlap with peak hours for violent crime calls creating a competition for resources. He encouraged the community to continue to call in reports so the APD and Taskforce can better understand where street races occur.
City Council Minutes of October 4, 2022
In response to Council Member Faessel’s inquiry, Chief Cisneros agreed that Anaheim Anytime may not be the best way to report a street racing incident due to the short duration of the events and the small window to potentially respond. He encouraged residents to report them through Anaheim Anytime after the fact to help collect data. He added the Nextdoor app does not directly communicate with the APD and does not help the APD very much with street racing incidents.
In response to Council Member Faessel’s inquiry, Police Chief Cisneros confirmed that APD monitors social media for activity surrounding upcoming street races but is unable to do this constantly due to a lack of resources.
Council Member Ma’ae stated that street racing is an issue on the community’s mind but noted it is challenging to enforce. She added the intersection of Ball Road and Brookhurst Street is a hot spot and a recent community meeting near there had 100 attendees.
In response to Council Member Ma’ae’s inquiry, Police Chief Cisneros advised he thinks the Orange County Sherriff’s Department is a part of the STEARRD Taskforce but added he does not have the full list in front of him.
Council Member Ma’ae advised the Nextdoor app has changed recently and is less effective than it used to be but added that Anaheim Anytime has been much more effective. She commended the work of Community Preservation Manager Sandra Lozeau for her work on the app and encouraged residents to report past incidents there so the APD has better hotspot data.
In response to Council Member Ma’ae’s inquiry, Police Chief Cisneros advised that only street racers would know where they practice their skills. He added part of the excitement of the event is the takeover of the intersection. He reported the street drag racing of their generation is less popular now. He added the act is dangerous and also damages property.
Council Member Ma’ae promoted the Anaheim Confidential event.
In response to Council Member Valencia’s inquiry, Police Chief Cisneros reported that the City has hundreds of cameras throughout the City used for traffic engineering but noted they are not recorded.
He advised it would help the APD if those cameras could record and also have some technological updates to help the APD identify vehicles. He noted there is new technology to determine if the traffic flow is circular or linear and circular patterns could be reported right to the APD dispatch as a possible intersection taken over by a car doing donuts.
Council Member Valencia requested a follow-up with additional information on this new technology.
Council Member Moreno advised he often receives complaints about the APD helicopter at night but noted sometimes incidents like the street racing video shown by Police Chief Cisneros are why the helicopter is in a certain position. He added it is a give-and-take in the name of public safety.
In response to Council Member Moreno’s inquiries, Police Chief Cisneros noted many cities have tried raised pavement markers but added they cause many more accidents and other safety concerns for regular motorists and advised he would not recommend adding them. He explained takeovers typically happen at intersections where adding speed bumps is not feasible. He advised the City has to address the issue and it did so through the ordinance, which has moved some street races out of the City. He thanked vigilant residents for reporting large gatherings in parking lots – noting the City Council Minutes of October 4, 2022
gathering itself is not illegal but it could be an indication that something may occur. He advised the APD has to use its resources as efficiently as possible.
Deputy Police Chief Rick Armendariz reported that Governor Gavin Newsom signed Assembly Bill 2000 this past week criminalizing street racing, takeovers, and side shows on parking lots.
In response to Council Member Moreno’s inquiry, Public Works Director Rudy Emami commended Police Chief Cisneros’ report. He added that installing larger pavement markers at dead-end cul-de- sacs has had mixed results. He reported following the City of Compton’s model of adding raised pavement markers to some streets had the opposite effect of attracting street racers to show the markers’ ineffectiveness and reported that the markers were removed.
In response to Council Member Moreno’s inquiry, Mr. Emami noted that street racing is not an Anaheim problem or an Orange County problem but rather a topic often coming up with his peers nationally. He added that he and his peers share ideas but are challenged because a solution that might work for intersections might not work in the middle of a block, for example.
Council Member Moreno requested a report of partners with local agencies such as the City’s schools to help educate the residents about the dangers of street racing, applicable laws, and how they could best report incidents.
Police Chief Cisneros confirmed the APD is happy to provide any applicable literature to agencies wishing to assist. He added the APD is also happy to formally present ideas to City Council such as the increased camera surveillance he discussed.
Council Member Moreno requested information on the APD’s community educational partnerships and new technologies in a memorandum format so City Council could decide if it wants to agendize the subject.
Informational item; no action taken.
12. District 5 appointment of an unscheduled vacancy to the Planning Commission to serve a term ending December 31, 2024
Planning Commission:
District 5 appointment: Christopher Walker (term ending December 31, 2024) (unscheduled vacancy, David R. Heywood)
NOMINATION: Council Member Faessel nominated Christopher Walker and confirmed that he is a District 5 resident. ROLL CALL VOTE: AYES – 6 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES – 0. Nomination approved.
PUBLIC HEARING:
13. Public hearing with respect to the proposed issuance by the Anaheim Housing Authority of its Multifamily Housing Revenue Bonds in an aggregate principal amount not to exceed $1,360,000 for Buena Esperanza Apartments (2691 West La Palma Avenue).
RESOLUTION NO. 2022-115 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to Section 147(f) of the Internal Revenue Code of 1986 City Council Minutes of October 4, 2022
approving the issuance of bonds by the Anaheim Housing Authority for the Buena Esperanza Apartments.
Director of Housing and Community Development Grace Stepter requested City Council adopt a resolution approving the issuance of bonds by the Anaheim Housing Authority for the Buena Esperanza Apartments.
Ms. Stepter reported the apartments were completed in July 2021 and are now fully leased. She reported that City Council provided authority in 2019 to issue about $12,000,000 in bonds as part of a larger package tied to the project. She advised that in February, the developer requested an additional $1,360,000 in bonds due to significant cost overruns. She added that the cost overruns have been audited and validated by City staff as being directly related to supply chain issues and staffing costs. She confirmed the building was delivered, noting it happened during the pandemic when similar rising cost factors have been seen regularly nationwide.
Ms. Stepter reported the bonds would not create a liability for the City as the bonds would be paid from proceeds generated by the development. She noted the Anaheim Housing Authority approved the bonds earlier tonight and advised that staff recommends approving the item.
DISCUSSION: In response to Council Member Moreno’s inquiries, Ms. Stepter clarified that this bond financing is considered a subsidy. She clarified the money does not come from the General Fund but rather from the federal government. She confirmed no funds due to the City were diverted into the project. She confirmed the City is using its credit and ability-getting resources for the developer, but the City is not responsible for the money or using General Fund dollars.
Mayor Pro Tem O’Neil opened the public hearing.
City Clerk Theresa Bass reported that a total of one (1) public comment was received electronically prior to 5:00 P.M. related to Public Hearing Item No. 13. [A final total of 1 public comment was received electronically, distributed to the City Council, and made part of the official record]. – See Appendix.
There being no in-person speakers, Mayor Pro Tem O’Neil closed the public hearing.
MOTION: Council Member Ma’ae moved to approve RESOLUTION NO. 2022-115 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to Section 147(f) of the Internal Revenue Code of 1986 approving the issuance of bonds by the Anaheim Housing Authority for the Buena Esperanza Apartments, 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.
PUBLIC COMMENTS (non-agenda items): None
REPORT ON CLOSED SESSION ACTIONS: None
COUNCIL COMMUNICATIONS:
Council Member Faessel displayed photos of the family of nine who lost everything in a fire and thanked all who helped them relocate closer to family in Moreno Valley and provided supplies, furniture, and assistance, specifically Yesenia Rojas, River Church, Pastor Hitalo, and City departments. He reported that the American Planning Association California State Conference held City Council Minutes of October 4, 2022
their conference at the Marriott Hotel where he gave opening remarks on Sunday followed by a well- attended opening event at the Muzeo. He thanked Police Chief Cisneros and Fire Truck #1 and Battalion Chief #1 for attending the Blue Mass at St. Anthony Claret Catholic Church to recognize public safety officers.
Council Member Diaz expressed his disappointment in the passage of SB-1429, stating it does not address unions and unfairly benefits only one party, which he believed was bad for democracy.
Council Member Moreno announced the District 3 Neighborhood Services Meeting to be held on Wednesday, October 12 at 7:00 P.M. at Anaheim High School and encouraged all to attend. He announced the National Coffee with a Cop event in District 3 would be at Norm’s Restaurant on Euclid Street on October 5, 8:30 – 10:00 A.M. He noted that the Mobile Family Resources Center would visit the Catalpa/Loara neighborhood 4:30-6:00 P.M. He announced a reading event from author Mariana Galvez for Hispanic Heritage Month at the Central Library on Saturday, October 15 at 11:00 A.M. He announced the annual Dia de Los Muertos event would be held on October 28 at Center Greens Park and the Anaheim Fall Festival and Halloween Parade would be on October 29.
COUNCIL AGENDA SETTING:
Council Member Faessel requested recognition of the new 2022-23 Miss Anaheim Beautiful scholarship program participants at a meeting in November as they would be selected on Sunday, October 9.
Council Member Moreno requested a review and discussion of the obligations of Angels Baseball per the existing lease for maintenance and upkeep of the stadium, to be held in Closed Session, open session (preferably), or both, upon consultation with the City Attorney. He requested an update at the October 25 meeting on the status of the investigation into the stadium sale and potential legal and/or ethical violations by staff. He also requested a memo to update Council on the three budget modifications regarding library hours, senior services, and joint use agreement made during the budget adoption process.
Council Member Diaz requested an informational item to show how much more residents would need to pay for existing City services if there was no tourism industry in Anaheim, similar to Jacksonville, Florida.
Council Member Valencia suggested that City Council wear Halloween costumes to the October 25 meeting.
ADJOURNMENT:
At 8:38 P.M., with no further business to conduct, Mayor Pro Tem O’Neil adjourned the City Council in memory of Daisy Vuksanovich.
Respectfully submitted,
Theresa Bass, CMC
City Clerk