Anaheim City Council
February 28, 2023

ANAHEIM CITY COUNCIL

REGULAR AND REGULAR ADJOURNED MEETING
OF NOVEMBER 15, 2022
The regular meeting of November 15, 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 4:03 P.M. in the Council Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on November 10, 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 4:03 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: Sarah Riggs et al. v. City of Anaheim, et al. USDC Case No. 8:21-cv- 00749JVS (ADSx)

2. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Linda Andal, Human Resources Director Name of Employee ORGANIZATIONS: (1) Service Employees’ International Union, United Service Workers West and (2) Teamsters, Local 952
At 5:11 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: Council Member Stephen Faessel
FLAG SALUTE: Council Member Gloria Sahagún Ma'ae
PRESENTATIONS: Recognizing the winners of the 2022 Anaheim Public Library/Altrusa/Anaheim Elementary School District Creative Writing Project
Carol Lathan of Altrusa International of Anaheim and City Librarian Audrey Lujan presented certificates to the winners.

City Council Minutes of November 15, 2022

Recognizing the 100th Birthday of Anaheim Resident Cecilia Delgado.

Council Member Moreno recounted Ms. Delgado’s life story and noted that City Council would be voting during the meeting on an official proclamation of recognition. (Item No. 02).

ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):

Recognizing Saturday, November 26, 2022, as Small Business Saturday ADDITIONS/DELETIONS TO THE AGENDA:

City Clerk Theresa Bass announced staff requested the withdrawal of Item No. 15, an agreement with Inglis Police Dog Academy.

PUBLIC COMMENTS (all agenda items, except public hearing):

City Clerk Theresa Bass reported that a total of 10 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.

After Ms. Bass announced the public comment procedures, Mayor Pro Tem O’Neil encouraged speakers to be civil during public comments. He noted that City Council tends to receive some colorful comments. He acknowledged that City Council is very limited in what it can do to control what the public has to say but requested they be addressed with civility, respect, and rational articulation.

He explained comments are always better received by City Council when delivered in this manner.

Mark Richard Daniels stated that City Council can make a difference in the City’s future by approving Item No. 03 to leave a positive legacy as they leave office. He advised it is very important to help prevent future City Councils from hiding from the public like former Mayor Harry Sidhu.

Wes Jones thanked Council Member Moreno for his service to the City and expressed regret he could no longer serve. He implored the City Council to approve Item No. 03 so the investigation is transparent. He believed that the Disneyland parking structure is a gift of public funds.

Mike Robbins noted the City needs transparency and Item No. 03 is important to provide it and better limit the power of special interests. He believed that Council Members, other than Council Member Moreno, are criminals, traitors to democracy, and liars to their oaths of office because their votes are for money and not the people. He noted financial interests are stealing the reins of government and enabling private power over the democratic will of the people, citing a speech by former President Franklin Delano Roosevelt. He noted new special interest paid-for candidates have been elected to the City Council, extending their control. He advised the policing agencies being defied have not stood down and would continue to monitor the City Council’s illegal actions and report them to the proper authorities.

Jeanine Robbins reported she is a member of the People’s Homeless Task Force which sued the City over Brown Act violations during the illegal sale of Angel Stadium. She criticized the lack of transparency around the deal and noted the Council Members are all currently under investigation for their actions. She noted public comments about a lack of transparency and resident input were mocked and met with harassment by the majority of the City Council. She stated the results of the ensuing audit must be released to the public, noting it is the illegal doings of the Council that are City Council Minutes of November 15, 2022

forcing residents to pay for the audit. She advised that it is the City Council’s lack of transparency that has put the City in this position as it ignored repeated cautionary public comments. She bemoaned the City Council’s public shock in the media and implored it to restore public trust by approving Item No. 03 to release the audit results to the people who paid for it.

Vern Nelson noted it is ironic that Mayor Pro Tem O’Neil and Council Member Ma’ae were collateral damage by being defeated, despite voting against campaign finance reform, while helping Disney accomplish its goal of continuing the Council control through incoming Council Members. He criticized the influence of Disney’s Political Action Committee (PAC) and Save Our Anaheim Resort (SOAR), which lead to crooked activity in Anaheim, noting Disneyland Resort Director of External Affairs Carrie Nocella was part of the cabal. He noted that Disney spent over $1,000,000 on the 2022 City Council campaigns and is the largest member of the discredited Anaheim Chamber of Commerce. He questioned why SOAR has to spend so much money when it should already have everything it wants.

He encouraged City Council to approve Item No. 03 so the residents could learn how they were nearly swindled out of Angel Stadium through an audit they paid for.

Orange County Communities Organized for Responsible Development (OCCORD) Director of Programs Marisol Ramirez stated there are issues of integrity between the Council and the people.

She stated that OCCORD has had enough and noted the investigation of the Angel Stadium sale would connect campaign contributions and contracts through “pay to play.” She stated that residents have a right to know about the findings, deserve transparency, and need to have their trust restored.

She commented that residents have had enough of their Council Members serving corporate interests and demanded approval of Item No. 03.

OCCORD’s Campaign Manager Fernando Delgado thanked the youth in attendance for coming and seeing how the City Council operates. He explained that what is happening in Anaheim is not normal with a Federal Bureau of Investigation (FBI) investigation and residents needing to show up to encourage their City Council to release the results of a corruption investigation. He reported that OCCORD directly encouraged each Council Member to discuss the investigation with residents of their districts and only Council Member Moreno accepted the invitation. He encouraged the other Council Members to help educate the community about the investigation without divulging details of the investigation itself. He advised that it is the bare minimum they could do as elected representatives. He noted Judge Clay Smith is operating under the assumption the work will eventually be in the public domain, so this is an invalid reason cited by Council Members Ma’ae and Faessel to not meet with the people. He added the investigation is being conducted with taxpayer dollars and challenged the Council to live up to what residents deserve by approving Item No. 03 and showing they are not afraid of the results.

Javier Aguilar called for City Council accountability and encouraged them to approve Item No. 03.

Sandra Cazares encouraged City Council to approve Item No. 03. She stated that she loves her city and is concerned about the City and the FBI investigations. She explained the reason for a City investigation is for the Council Members to clear their names and expressed concerns about why the City Council would even consider not showing off the results. She stated taxpayers who are paying for the investigation deserve to see the results.

Carmen Landin (translation: Spanish) stated her community has many needs and pondered why there is no money for resident needs. She called on her representative, Council Member Valencia, to make the results of the investigation public. She advised the public has a right to know who is involved in the fraud.

City Council Minutes of November 15, 2022

Guadalupe Hernandez (translation: Spanish) stated she lives close to Disneyland in District 2. She reported rents in her neighborhood are increasing and it is a challenge as a single mother working three jobs. She called for her representative, Council Member Ma’ae, and the City Council to provide more community resources. She endorsed approving Item No. 03. She advised her daughter was fired from her job in Anaheim due to the corruption, yet despite that she still loves the City.

Mariana Angeles (translation: Spanish) reported her Ponderosa neighborhood has worked for years to have a beautiful park, community center, and community garden. She reported her neighbors have organized to get traffic lights at the intersection of Orangewood Avenue and Mountain View Avenue.

She questioned the point of having Disneyland, the Los Angeles Angels, and the Honda Center if the money cannot be invested in communities. She advised she has had to fruitlessly fight repeatedly for Council Member Valencia to meet with her community. She encouraged him to do something for the residents and show he cares before leaving for the State Assembly by voting to approve Item No. 03.

She encouraged him to leave the City Council with a call for a transparent government.

Council Member Valencia thanked Ms. Angeles for her invitation to the community meeting and clarified he had a prior commitment that night as the keynote speaker at a fundraiser for the Katella High School Boys’ Basketball team.

Benita Borgio (translation: Spanish) expressed her disappointment in what she has heard about the City Council, coming from a corrupt country in Nicaragua. She stated she does not wish for Anaheim to become as corrupt as Nicaragua, noting her grandfather was imprisoned for eight years for not being pro-government. She demanded Council Member Valencia vote yes on Item No. 03 so the corruption investigation would become public.

Guadalupe Vasabe (translation: Spanish) stated she is there to defend the social and educational interests of her young children. She stated the corruption in Anaheim infuriates her. She demanded transparency and that the information about the investigation be released to the public. She stated Council Member Valencia does not defend resources for his district residents and will not meet with the community to address their needs. She decried the City’s fiscal inability to repair a school bus with a leaking roof. She called upon Council Member Valencia to vote yes on Item No. 03 so the results of the corruption investigation could become public.

Valerie Garcia stated the Council Members did not appear to care about their residents. She congratulated Council Member Valencia on his election to the State Assembly and expressed hope that he will understand his community’s needs. She expressed disappointment at the political corruption in Anaheim and the lack of community investment in areas such as housing. She added that schools are overdue for improvements. She requested the investigation report in Item No. 03 be made public and transparent. She stated the government should not be afraid to be accountable if it is doing the best possible for the benefit of all.

Alma Vazquez expressed concerns for her daughter, a graduate from California State University, Fullerton, due to out-of-control rent increases. She stated that City Council, and specifically Council Member Valencia, does not support rent control, impacting the entire City. She questioned what the Council’s corporate donors have done for residents. She called for Council Member Valencia to vote yes on Item No. 03.

Donna Acevedo Nelson stated she has been coming to City Council meetings since her son, Joel Acevedo, was murdered by the Anaheim Police Department (APD) in 2012, noting nine other young men were also killed by the APD that year. She stated she began coming to the meetings for transparency over what happened to her son, noting the independent investigation over the death of City Council Minutes of November 15, 2022

her son was never made public. She stated there is a legacy of non-transparency and corruption in the City. She noted the City refused to provide important information about the sale of Angel Stadium despite requests from residents. She recounted several memories at Angel Stadium and added it should be passed on to the next generation, unlike the City’s previous downtown district. She called to make the corruption investigation public, along with everything else, including the Office of Independent Review (OIR) reports on police killings.

Anaheim Transportation Network (ATN) Executive Director Diana Kotler thanked City Council for its direction at the last meeting in support of public transportation services. She thanked City staff for its leadership in expediting ATN’s plans. She expressed ATN’s full support for Item No. 23. She added it would allow for the continued operation of public transit services through the transfer of assets to its new primary facility. She added the item would be considered tomorrow by ATN’s Board of Directors with a staff recommendation of approval. She reported that ATN is eager to begin this process.

Susana Galan (translation: Spanish) stated she is a District 3 resident and leader of a newly formed Pauline St. neighborhood union with the support of OCCORD. She decried the City’s abandonment of the neighborhood and lack of housing services. She stated that most of the Council only listens to corporations and showed a lack of transparency about the sale of Angel Stadium. She demanded that City Council approve Item No. 03 to make the investigation results available to the public. She thanked Council Member Moreno for always having time for residents.

Alexis Teodoro demanded that City Council vote yes on Item No. 03 to ensure the investigation becomes public once completed. He decried how the City Council, except for Council Member Moreno, has mainly voted against the interests of working families, who are at the heart of the City, live paycheck to paycheck, and pay over 50% of their income on rent. He stated that City Council has had many chances to uplift democracy and transparency but voted against it. He noted the City let the rental assistance program expire during a pandemic. He advised that City Council lacks the transparency guaranteed in the United States Constitution. He called on the majority of Council Members to vote on the side of transparency by approving Item No. 03.

Rebecca Kovacs-Stein reported on a media report about the October 25, 2022 City Council meeting’s update from Judge Clay Smith, noting there is an investigation and audit in Anaheim about City contracts awarded out of “pay to play” politics. She stated the reports indicate investigators have made it clear to City officials that they are on to something, and past actions would require additional investigative scrutiny. She expressed hope that the City Council would make the final investigator’s report public by approving Item No. 03. She mourned the recent passing of her client, Nowella Kilikina Kaehu, and thanked the City for allowing her to receive housing and other services.

Sami Lodi stated there is little dignity in having to live in your car. He stated the Council’s corruption has helped create the environment that is eroding Anaheim’s community. He stated the opportunity to fix it is getting further away as the Council carries on with corruption and impunity. He stated special interest money’s involvement is wrong and that the lack of transparency about it is worse. He believed that City Council would continue the status quo if a change was not demanded. He demanded the City Council unanimously approve Item No. 03 for transparency and justice. He noted the investigation was intended to clear their names after the FBI investigation, but the tone has shifted since it does not appear to be going the City Council’s way. He stated the investigation is being conducted with taxpayer dollars and there is an expectation that the findings become publicly available. He noted that Council Members have nothing to hide if they have done nothing wrong but noted the public deserves to know if Council Members have done something wrong. He advised the public would accept no less than transparency.

City Council Minutes of November 15, 2022

Lizzette Barrios-Gracian expressed concern about what is happening in the City. She stated that school children she teaches sometimes cannot afford to remain housed, leading to depression and suicide attempts. She stated only a few can live with dignity in Anaheim. She believed it was pathetic that things have not gotten better in the 40 years since her childhood when her parents worked as hard as she does today. She lamented how Council Member Diaz talks often about the horrible government of Cuba yet has gone from being victimized by the Cuban government to participating in another corrupt government. She expressed hope that Council would make the right decision and unanimously approve Item No. 03. She noted there are students in the audience and implored the Council to show them how people can make mistakes and yet always have room for redemption. She called for transparency.

David Duran called on Mayor Pro Tem O’Neil to retract his meeting-prefacing statements which go against the United States Constitution because the people have a right to free speech, and he does not have the right to squelch what residents say. He stated Mayor Pro Tem O’Neil owes the crowd an apology. He demanded that City Council vote in favor of Item No. 03, stating transparency is long overdue in Anaheim. He thanked Council Member Moreno for his service. He noted this is National Hunger and Homeless Awareness Week and added it is a time to remember the City’s less fortunate.

He reported Anaheim has had over 80 homeless die in 2022, eclipsing any other Orange County city.

He believed that City Council does not care about homeless people like Ms. Kilikina Kaehu but added they should be remembered. He advised the residents expect transparency.

Eymi Arellano (translation: Spanish) thanked Council Member Moreno for all he did to help the City and wished him well in the future. She called for answers about the investigation and information about who is supporting the City Council’s decisions. She stated the public wants to have trust and confidence in the City Council. She added the residents need to be able to progress toward better well-being. She called for the City to improve its transparency to build trust and lead to a better future for residents.

Sylvia reported the young students honored earlier for winning the creative writing contest were told their voices matter but inquired about their voices as parents. She requested that Council Members hear their call for the results of the investigation to be made public as soon as they are finalized. She stated the City Council should not only vote yes to Item No. 03 but also ensure the release is immediate. She added a simple yes vote is all that is needed if they have nothing to hide. She called for transparency and the arrest of the APD officers who killed Brandon Lopez.

Bob Donelson thanked Council Member Moreno for his time on the Council and the changes he brought to Anaheim. He stated the City needs more people like Council Member Moreno, noting he exposed how badly the City was ripped off in the 1997 Disney parking garage deal. He stated this first parking garage was a good deal for the City compared to the second one with the City building the garages for nothing in return. He stated the deal would not have been approved if residents knew at the time what went into it, citing the Angel Stadium deal. He stated that City Council needs to approve Item No. 03 to ensure transparency. He added that Council Members should not be protecting each other if they did something wrong because they serve the residents. He noted every speaker so far has called for transparency with no one calling for the results to remain hidden.

Kenneth Batiste reported that in 1997 the City agreed to spend $1 billion to build parking lots at Disneyland with Disney operating the garages and keeping all of the revenue. He noted Disney’s revenues from those garages have far exceeded what the City paid to build them. He stated the investigation is the people’s investigation paid for by the people. He questioned how residents could assume the Council would do the right thing and make it public when citizens cannot get a gate tax or campaign finance reform, have their federal pandemic relief funds diverted to Visit Anaheim and the City Council Minutes of November 15, 2022

Chamber of Commerce, give the campaign-donating Anaheim Police Department union chief a large contract, etc. He stated if the investigation would show the Council is doing the right thing, they would not be having this discussion because they would want to put the report to the public. He stated Disney does not care about the residents and just wants its way. He decried how the City Council’s Hispanic members would not support a rent control item despite the City’s Hispanic population’s struggles. He expressed his pleasure at Mayor Pro Tem O’Neil’s electoral defeat.

Paul Hyek called for better bus station signage and a new Riverside Transit Agency (RTA) bus stop just outside the Anaheim Regional Transportation Intermodal Center (ARTIC). He noted all of the City of Riverside’s homeless shelters are walk-ins on bus lines. He encouraged finding jobs for the homeless. He stated Mercy House is corrupt and the transportation director is teaching drivers to bully legitimate drivers.

John Dunton reported 15 children have been lost over the past 30 days in California from either gun violence or drunk drivers, including one locally – a nine-year-old girl killed by a drunk driver. He encouraged residents not to drink and drive. He noted the City’s investigation report would come out one way or another because it could also happen through a court petition. He added there is extensive case law indicating the report has to be released regardless of the City’s wishes and encouraged getting advice from the City Attorney. He thanked Council Member Moreno for his years of help to residents and service to the City.

Cecilia S. Flores reported Item No. 2021-00218 would go before the Planning Commission next month, impacting the safety of her neighborhood. She stated there is presently a church at 2780 East Wagner Avenue which would be converted to a charter school, bringing traffic and congestion to a peaceful neighborhood. She stated the area is not a safe place for a school. She noted the property only has one insufficiently narrow entrance adding congestion to a busy intersection and expressed concerns about noise. She reported hearing the school transition would happen and, if so, requested reducing the proposed number of students. She expressed concerns that neighborhood voices would be heard by the Planning Commission and City Council. She presented a petition signed by 100 residents in opposition to the school. She stated the plan attempts to put 10 pounds of potatoes in a five-pound bag and requested the concerns of neighbors are heard.

Cecil Jordan Corkern reported he is working on gun laws for schools and his report on pedophiles at Disneyland. He reported hearing that former President Donald Trump is not mentally stable enough to hold the office again, but they would see what happens because former President Trump will run for the Presidency. He stated he has been working on gun laws since Tom Tait served as Anaheim’s Mayor in 2017 and provided an update on his work. He reported Russia is unsafe globally due to its new rockets. He encouraged Council Member Valencia to keep Anaheim’s schools safe.

Bryan Kaye questioned why Council Member Valencia would not want today’s children to experience the same healthy positive feelings he did while growing up in Anaheim. He questioned why Council Member Ma’ae is so shocked when he regularly reports a hate crime against him by the Anaheim Police Department (APD) using a racial slur and she is not shocked at APD Chief Jorge Cisneros whom she should instruct to not let his officers use the racial slur. He believed that City Council has decided the conduct is acceptable. He reported a resident recently went to the Police Review Board to compliment the APD’s improvements but Board Member Jason Khoo kicked her out of the meeting to dehumanize her. He stated Board Member Khoo learned this behavior from the Council, which feels it is appropriate to ignore petitions from the people. He chastised the Council Members for not doing the dirty work to improve the City and stated that City Council is comprised of cowards who are too busy spending the City’s money. He stated Council Member Diaz is an embarrassment for City Council Minutes of November 15, 2022

coming to the United States from a Communist country and doing the same things here and criticized Council Member Diaz for ignoring the people.

COUNCIL COMMUNICATIONS:

Council Member Faessel requested the meeting adjourn in memory of Mary Jo Hesketh, a member of the women’s division of the Anaheim Chamber of Commerce, the Anaheim Arts Council, and the Harp Guild; Andrew Ersek, Anaheim resident, St. Boniface attendee, and Rotary Club member; and Jimmy Phong Khuu, an employee of Vibrant Minds Charter School who was killed while riding his bicycle.

Council Member Moreno thanked his colleagues for recognizing Cecilia Delgado, thanked staff for a Balsam neighborhood meeting where they discussed red curbs and parking challenges, and thanked staff for a neighborhood walk and meeting in the Vine neighborhood tonight. He reported his attendance at Supervisor Chaffee’s Kindness Awards. He requested that staff follow up with residents on Pauline Street regarding actions taken and outcomes related to their property concerns and code enforcement. He acknowledged the efforts and work of Project SAY in the Dia de los Muertos program and event and asked to adjourn the meeting in memory of the woman referenced during public comments.

Council Member Ma’ae thanked staff for coordinating a meeting with residents adjacent to the railroad tracks. She noted that the Veterans Day Ceremony was beautiful and suggested everyone visit the Veterans Memorial adjacent to the Muzeo to see the artistic monument. She reported her attendance at a Coffee with a Cop event at Sandals Church on Saturday and noted that it is a great facility located at the corner of Gilbert and Crescent with many resources.

Council Member Diaz highlighted Tacos Los Bandidos, a small, family-run, new restaurant at 3414 West Ball Road. He also highlighted Beachwood Apartment Homes and their contribution to residents and the streetscape of Beach Blvd. at Orange Avenue. He announced a West Anaheim Organization meeting on Thursday, November 17 at 6:30 P.M. at the Brookhurst Community Center with the Police Department.

CITY MANAGER’S UPDATE:

City Manager Jim Vanderpool invited Police Chief Jorge Cisneros to provide an update on recruitment and retention efforts. Police Chief Cisneros thanked City Council for approving the incentive program and Lt. Lopez and the recruitment team for their efforts. Chief Cisneros reported to date, the department had received 3,005 applications to become a police officer, with 2,600 as trainees with no experience and 329 as laterals, police officers currently serving other communities.

As of last Friday, Police Chief Cisneros reported the department had filled 384 of 408 budgeted police officer positions, with year-to-date numbers of hiring 45 officers, with an additional 11 trainees and four (4) laterals starting November 25, 2022, bringing the year’s totals to 60, 36 laterals and 24 trainees. Of the initial 45, he noted that 32 were laterals and 13 were trainees, with the employees identifying as 54% Hispanic, 24% White, 17% Asian, 3% Black, 2% Middle Eastern, and 16% female (increasing to 20% with the new employees), over 74% have a bachelor’s degree or higher, and 16% reside in Anaheim. He noted that recruitment efforts would continue.

Mr. Vanderpool announced that Public Utilities would be hosting their annual Holiday Light Exchange on November 19 where residents will be able to recycle older holiday lights and receive LED lights that are more energy efficient. Residents will also be able to donate new unwrapped toys that will City Council Minutes of November 15, 2022

benefit Anaheim youth. He invited residents to register at www.Anaheim.net/holidaylights and attend from 10:00 A.M. to 1:00 P.M. on Center Street Promenade this Saturday.

On behalf of the City Clerk’s Office, Mr. Vanderpool noted their department was hosting a Passport Day on Saturday, December 3 from 10:00 A.M. to 2:00 P.M. at the Downtown Anaheim Community Center, 250 E. Center Street. No appointment is necessary and passport photos would be available onsite. Visit www.anaheim.net/passports for additional information or call the City Clerk’s Office at 714-765-5166.

Mr. Vanderpool announced that Community Services staff, along with the Nutcracker Committee and the Downtown Anaheim Association, would like to invite you to attend the 28th annual Christmas Tree Lighting Celebration and Holiday Village in Downtown Anaheim on Saturday, December 3. He noted that Center Street Promenade would be transformed into a “Holiday Village” featuring activities for families from 12:00 P.M. to 8:00 P.M. including free children’s craft booths, visits with Santa, holiday crafters, refreshments, and entertainment. The tree lighting ceremony will begin at 6:00 P.M. and last approximately one hour with performances by local school choirs, the Anaheim Ballet, and a reading by Santa.

He further announced that residents could experience the spirit of a traditional Victorian Christmas at historic Founders’ Park, 400 N. West Street. Saturdays, December 3rd, 10th and January 7th from 9:00 A.M. - 12:00 P.M. This family-friendly experience features holiday decorations at both the Mother Colony and Woelke-Stoffel Houses, highlighting the Victorian roots of many of our modern traditions.

A special feature this year is displays of Victorian-era toys and games, with hands-on activities for children. Visitors to the Carriage House will learn how to size oranges and wrap them in holiday tissue paper, just as the packing house workers prepared Valencia oranges for shipping to the east coast for Christmas. This event is free and open to the public.

On behalf of the Housing and Community Development Department, Mr. Vanderpool provided an update on the use of State HomeKey Funds awarded to the City in March of this year for the Studio 6 project. A ribbon-cutting ceremony was held on October 26, 2022, to mark the completion of minor rehabilitation and the beginning of the move-in process. As previously shared, the City was awarded approximately $26,500,000 in HomeKey funds to acquire and operate the former Studio 6 Motel located at 1251 N. Harbor Blvd. The purpose of these funds is to expedite the delivery of housing options for those experiencing homelessness. With these critical funds, the City, in partnership with Linc Housing and American Family Housing, completed the acquisition of the Studio 6 site in May 2022. In addition to State funds, the City also received significant assistance from the County for ongoing support services to be used once the site is operational. Mr. Vanderpool noted that the property will be used for two distinct housing opportunities. In the first phase, which is now underway, the site will serve as interim housing, that is, congregate shelter. In this phase, 87 units are being used to house Anaheim and Orange County North SPA homeless. Supportive services and housing navigation are offered onsite to help link individuals to permanent housing. The staff has been working closely with City Net’s Community Care Response Team (CCRT) to coordinate and ensure this new housing option is available to persons who are currently unsheltered. City Net has already identified 63 homeless individuals currently living in Anaheim who are seeking interim housing. These individuals, along with 23 pets and 20 vehicles, are now being processed to move into the site and should all be moved in by Thanksgiving. In phase two, the site will undergo more extensive rehabilitation. Once completed, the units will serve as permanent housing, with on-site supportive services. Staff anticipates the interim housing project will convert to permanent supportive housing by 2025.

City Council Minutes of November 15, 2022

CONSENT CALENDAR: At 7:38 P.M., the Consent Calendar was considered with Council Member Moreno pulling Item Nos. 03, 23, 28, and 31 for separate discussion and consideration.

MOTION: Council Member Faessel moved to waive reading of all ordinances and resolutions and adopt the balance of the consent calendar in accordance with reports, certifications, and recommendations furnished each City Council Member and as listed on the consent calendar, seconded by Council Member 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.

1. Receive and file minutes of the Public Utilities Board meeting of September 28, 2022 and the Sister City Commission meetings of June 27, 2022, July 25, 2022, and August 22, 2022

2. Approve a proclamation recognizing Cecilia Delgado’s 100th birthday.

4. Approve the 2023 Investment Policy for the City of Anaheim.

5. Approve carryover expenditure appropriations of $121,171,238 from Fiscal Year 2021/22 to Fiscal Year 2022/23 for projects previously approved by the City Council but not completed.

6. Determine, on the basis of the evidence submitted by Melia Homes, Inc., that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2021-00001 for the 2022 review period for the 2323 West Broadway townhome project (Melia Townes at Broadway).

7. Determine, on the basis of evidence submitted by Kaiser Foundation Hospitals, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2007-00003 for the 2022 review period for the Kaiser Hospital Campus Project, located at 3400-3450 East La Palma Avenue and 959-1001 North Grove Street.

8. Accept the bid from Major League Infields, Inc., in the amount of $147,600 plus a 15% contingency, to provide as-needed sports field maintenance services 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 #9620.

9. Accept the bid from ConvergeOne, Inc., in the amount of $894,916.08 plus applicable tax, for the purchase of Cisco network equipment and support for use by the Information Services Division as part of an update to their disaster recovery plan, in accordance with Bid #9621.

10. Accept the bid from Omega Fire, Inc., in the amount of $27,670 plus applicable tax and a 20% contingency, to provide fire extinguisher maintenance 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 #9612.

11. Waive Council Policy 4.0 and ratify the purchase of three Pierce fire engines from South Coast Fire Equipment, Inc., in the amount of $2,784,350.92 (which includes all applicable taxes and fees), for the Anaheim Fire & Rescue Department. (This purchase was made utilizing a cooperative purchase agreement established by the Houston-Galveston Area Council, and awarded to Pierce Manufacturing. Under the terms of the agreement the purchase is being made through their local authorized reseller).

City Council Minutes of November 15, 2022

12. Award the construction contract to the lowest responsible bidder, R. J. Noble Company, in the amount of $10,924,725.90, for the construction of Residential Street Improvement Project – Amboy – Group 15 in the area generally bounded by Euclid Street, Ball Road, and Manchester 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 the project is categorically exempt under the California Environmental Quality Act pursuant to Sections 15301, Class 1, and 15302, Class 2, of Title 14 of the California Code of Regulations; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

13. Waive Council Policy 4.0 and authorize the Purchasing Agent to enter into an agreement with Multimedia Integrated Technology dba Integrated Technology, in an amount not to exceed $108,000 plus applicable taxes, for telephone system maintenance and repair services for a one year period and authorize the extension of the agreement on a month to month basis, at a monthly amount not to exceed $9,500 plus applicable taxes, for up to an additional twelve months.

14. Waive Council Policy 4.1 and approve an agreement with David Taussig & Associates, Inc. dba DTA, in an amount not to exceed $97,240, for Communities Facilities Districts Special Tax Consulting Services for the ocV!BE Project; and authorize the Public Works Director to execute and take the necessary actions to implement and administer the agreement.

15. Waive Council Policy 4.1 and approve an agreement with Inglis Police Dog Academy, in an amount not to exceed $400,000, for services related to purchasing, training, and boarding working police service dogs; and authorize the Chief of Police to execute any amendments under the terms and conditions of the agreement.

Item No. 15 withdrawn by staff. no action taken.

16. Waive Council Policy 4.0 and approve the adoption of the integrated technology platform provided by Axon Enterprises, Inc. (Axon) as the sole enterprise system used by the Anaheim Police Department for storage of data and evidence, body-worn cameras, Taser Electronic Incapacitation Devices, unmanned aerial systems, and other related network solution systems and equipment; and approve an agreement with Axon, in substantial form subject to review and approval by the City Attorney’s Office, and authorize the Purchasing Agent to execute the agreement and other required documents, with a not to exceed amount of $10,137,642.92 over the seven year term; and authorize the Chief of Police to take the necessary actions to implement the agreement.

17. Approve the Fourth Amendment to Agreement with Frome Developments Omega, LLC for leased warehouse space for the storage of property and evidence for the Police Department, in a total amount of $81,120, to extend the term of the agreement for a two year period beginning December 1, 2022 and to increase the monthly rental rate to $3,320 per month for December 1, 2022 to November 30, 2023 and to $3,440 per month for December 1, 2023 to November 30, 2024; and authorize the Chief of Police, or designee, to execute the amendment.

18. Approve agreements with RCS Investigations & Consulting, LLC and Oracle Investigations Group, LLC, in the respective not to exceed amounts of $325,000 per year and $250,000 per year, for pre-employment background investigations for a three year period, with one one-year optional renewal; and authorize the Human Resources Director, or designee, to execute the City Council Minutes of November 15, 2022

agreements, renewal options, and related documents and to take the necessary actions to implement and administer the agreements.

19. Approve the Safety Consulting Services Agreement (Agreement) with four prequalified consultants and such other safety services consultants that may be prequalified during the term of the Agreement for as-needed safety services, each in a not to exceed amount of $500,000 per consultant for the entire five-year term of the Agreement and any term extensions, with authorization for extra work in an amount per work order not to exceed $10,000 or 15% of cost, whichever is greater; authorize the Public Utilities General Manager to execute the Agreements for a five-year term with up to two one-year extensions as needed to complete ongoing projects; authorize the Public Utilities General Manager, or designee, to take the necessary actions to implement and administer the Agreements; and authorize de minimis changes that do not substantially change the terms and conditions of the Agreement, as determined by the City Attorney (A-Tech Consulting, Inc.; ALTA Environmental, L.P., an NV5 Company; Global Environmental Network, Inc.; TRC Solutions, Inc.).

20. Approve the City of Anaheim’s Task Order related to the Master Professional Services Agreement between the Southern California Public Power Authority and K2 Fabrication, Inc. dba K2 Design and Fabrication for professional services for sustainability educational exhibit design and fabrication, in a not to exceed amount of $1,500,000 with a 15% contingency for extra services; and authorize the Public Utilities General Manager, or designee, to approve task orders and related documents and to take the necessary, required, or advisable actions to fund, participate, and administer the City’s Task Order.

21. Approve a Professional Design Services Agreement, in substantial form, with RDC-S111, Inc., in the amount of $964,581, to design and engineer the Store One Food Incubator and Job Training Center Project; and authorize the Director of Housing and Community Development, or designee, to execute and administer the agreement and related documents and to take the necessary actions to implement the agreement.

22. Approve the First Amendment to Agreement with Ardurra Group Inc., formerly known as Anderson Penna Partners, Inc., increasing the agreement not to exceed amount from $727,099 to $842,442, for design and engineering services for the Lincoln Avenue Widening Project from East Street to Evergreen Street, and authorize the Director of Public Works to execute the amendment and to take the necessary actions to implement and administer the amended agreement.

24. RESOLUTION NO. 2022-131 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a public utility easement located at 2871 East John Ball Way pursuant to California Streets and Highway Code Section 8330, et seq.-Summary Vacation (ABA2022-00416).

25. RESOLUTION NO. 2022-132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the Measure M2 Expenditure Report and authorizing the City of Anaheim Finance Director to sign and submit the Expenditure Report to the Orange County Transportation Authority on behalf of the City of Anaheim.

26. RESOLUTION NO. 2022-133 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Chief of Police or his designee to submit a grant application on behalf of the City of Anaheim to the California Office of Emergency Services, for the 2022 Urban Areas Security Initiative (UASI) Grant Program (includes authorization to City Council Minutes of November 15, 2022

amend the Fiscal Year 2022/23 Police Department’s restricted Urban Area Security Initiative Grant Fund budget, as appropriate, upon receipt of grant funds).

Authorize the City Manager to execute the Memorandum of Understanding with the City of Santa Ana designating the City of Anaheim as the single point of contact for the 2022 UASI Grant Program.

27. RESOLUTION NO. 2022-134 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving amendments to the Conflict of Interest Code for the City and various City agencies.

29. RESOLUTION NO. 2022-136 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment including modification of pay policies, creating, deleting, and/or modifying certain classifications for employees in classifications represented by the Anaheim Municipal Employees Association, General Employees and superseding Resolution Nos. 2010-205, 2019-105, 2019-107, 2022-008, and 2022-027 (effective June 24, 2022 through July 3, 2025).

RESOLUTION NO. 2022-137 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment including creating, deleting, and/or modifying certain classifications for employees in classifications represented by the Anaheim Municipal Employees Association, Clerical Employees and superseding Resolution Nos. 2016-224, 2019-108, 2022-028 and 2022-029 (effective June 24, 2022 through July 3, 2025).

RESOLUTION NO. 2022-138 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment including modification of pay policies for employees in classifications represented by the Anaheim Municipal Employees Association, Part-Time Unit and superseding Resolution Nos. 2006-244, 2019-104 and 2019-118 (effective June 24, 2022 through July 3, 2025).

Amend the Fiscal Year 2022/23 budget by $3,350,800

30. RESOLUTION NO 2022-139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting amended Personnel Rules and Policies for Non-Represented Full- Time and Part-Time Employees including modification of pay policies, deleting certain classifications designated as Non-Represented Part-Time, establishing rates of compensation for certain classifications designated as Non-Represented Full-Time and Part-Time; and superseding Resolution Nos. 2005-109, 2006-116, 2007-098, 2016-033, 2017-038, 2021-006, 2021-122 and 2022-017 and all amendments thereto.

RESOLUTION NO. 2022-140 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Letter of Understanding with the American Federation of State, County, and Municipal Employees, Local 2002 (AFSCME); and amending Appendix B of the Memorandum of Understanding between AFSCME Professional/Technical Management Unit and the City of Anaheim by way of amendment to Resolution No. 2021-120.

ORDINANCE NO. 6548 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Chapter 1.05 of Title 1 of the Anaheim Municipal City Council Minutes of November 15, 2022

Code (pertaining to the Personnel System Administration, Scope, Appointments, and Access to Criminal History Information).

Amend the Fire & Rescue Department’s Fiscal Year 2022/23 budget by $448,110

32. ORDINANCE NO 6546 (ADOPTION) AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM granting a non-exclusive franchise to Cabco Yellow, Inc. dba California Yellow Cab, for the purpose of operating taxicab service in the City of Anaheim (operation of 205 taxicabs within the City of Anaheim; introduced at the City Council meeting of November 1, 2022, Public Hearing Item No. 17).

ORDINANCE NO 6547 (ADOPTION) AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM granting a non-exclusive franchise to American Ground Transportation, Inc. and American Ground Transportation, LLC dba 24/7 Taxi Cab, for the purpose of operating taxicab service in the City of Anaheim (operation of 50 taxicabs within the City of Anaheim; introduced at the City Council meeting of November 1, 2022, Public Hearing Item No. 17).

33. Approve minutes of the City Council meeting of July 19, 2022.

END OF CONSENT CALENDAR:

3. Confirm and provide direction to the JL Group, LLC, Judge Clay Smith, and City staff to make public upon receipt by the City (1) the final report resulting from the independent investigation and audit regarding campaign contributions and city contracts, regardless of whether any additional addenda or work to the report is subsequently requested and (2) in the event City Council or staff request addenda or work in addition to the final report, any requested addenda or work product.

City Attorney Robert Fabela reported that on August 9, 2022, City Council approved the selection of JL Group, LLC to conduct an independent investigation and audit into the campaign contributions to former Mayor Sidhu and the Council Members in response to the allegations in the federal investigation. He added the Council also selected Judge Clay Smith to oversee the investigation. He added that at the November 1, 2022 meeting, Council Member Moreno requested an item to confirm that the report would be made public whenever it is completed and received. He stated this is the City Council’s opportunity to ensure the report will be made public and provide any direction about its handling.

DISCUSSION: Council Member Moreno added his request also included any addenda to be made public.

In response to Council Member Moreno’s inquiries, Mr. Fabela confirmed a future City Council would have to agendize the item and have a public vote to make the report confidential. He stated this item is an explicit confirmation of the assumption that the final reports will be made public.

MOTION: Council Member Moreno moved to confirm and provide direction to the JL Group, LLC, Judge Clay Smith, and City staff to make public upon receipt by the City (1) the final report resulting from the independent investigation and audit regarding campaign contributions and city contracts, regardless of whether any additional addenda or work to the report is subsequently requested and (2) in the event City Council or staff request addenda or work in addition to the final report, any requested addenda or work product, seconded by Council Member Diaz.

City Council Minutes of November 15, 2022

DISCUSSION: In response to Council Member Valencia’s inquiry, Mr. Fabela confirmed the assumption was always to make the final report public.

Council Member Valencia noted there was an assumption among the public commenters earlier that the report would not be publicly released, and he was glad to hear it was never the intention. He expressed satisfaction with the item and expressed his understanding of the public distrust leading to the need for this confirmation. He added it is a simple decision to support the item.

MOTION: Council Member Moreno moved to confirm and provide direction to the JL Group, LLC, Judge Clay Smith, and City staff to make public upon receipt by the City (1) the final report resulting from the independent investigation and audit regarding campaign contributions and city contracts, regardless of whether any additional addenda or work to the report is subsequently requested and (2) in the event City Council or staff request addenda or work in addition to the final report, any requested addenda or work product, 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.

23. Approve a First Amendment to Right of Entry and License Agreement, in substantial form, with Anaheim Transportation Network (ATN) to address the relocation of ATN’s operations for property located at 1234 and 1280 South Anaheim Boulevard and 200 East Ball Road; and authorize the Economic Development Director to execute the First Amendment to Right of Entry and License Agreement and to take the necessary actions to implement and administer the amended agreement (with Relocation Plan as an exhibit to First Amendment).

Director of Economic Development Sergio Ramirez reported that at the last City Council meeting the Council approved a Disposition and Development Agreement (DDA) between the City and Greenlaw Development, LLC for an 8.8-acre site at the corner of Anaheim Blvd. and Ball Road. He added that since 2015, ATN has had a Right of Entry and License Agreement and has used a portion of the property for bus parking and driver break room space. He reported that at the last meeting City Council expressed its desire for ATN to remain on the property until its new permanent facility at 1227 S. Claudina St. is completed.

Mr. Ramirez reported all parties involved have met since the last meeting and cooperated, leading to the proposed First Amendment to the Right of Entry and License Agreement. He expressed his appreciation to ATN, Greenlaw, and legal counsels for crafting this agreement supported by all involved.

DISCUSSION: Council Member Moreno noted that at the last meeting, ATN requested a continuation of the item because its Board of Directors had not yet had an opportunity to review the agreement.

He noted Ms. Kotler’s public comments about the ATN Board still not having approved the agreement and expressed his concerns.

In response to Council Member Moreno’s inquiry, Mr. Ramirez clarified the ATN Board President, an ATN Board Member as legal counsel, and Ms. Kotler have all directly been part of the negotiations over the past few weeks. Ms. Kotler added that this Agreement, which the ATN Board will vote on tomorrow, has been reviewed by their legal counsel and confirmed ATN agrees with the content and process outlined in the Agreement. She added the ATN Executive Committee has been regularly updated about the Agreement and supports the Agreement. She added ATN staff is preparing to present the item to its Board with anticipation of including the City Council’s support tonight.

City Council Minutes of November 15, 2022

In response to Council Member Moreno’s inquiry, Ms. Kotler confirmed the ATN Board has not yet approved the Agreement. She noted the ATN has kept its executives updated on the progress of the Agreement and followed City Council’s direction at the last meeting to include City staff in the negotiations.

Council Member Moreno reported Ms. Kotler had previously asked the Council to hold off on the Item until its Board could approve the Agreement and he is honoring this request at the last meeting by pulling the item tonight. He noted several Board Members were involved in the negotiations but added this is not the entire governing Board.

In response to Council Member Moreno’s inquiry, Mr. Ramirez confirmed that a majority of the ATN Board was not involved in the negotiations. He added the Agreement is contingent on the Board’s approval.

Council Member Moreno reported both ATN and its lobbyist have made campaign donations to former Mayor Sidhu. He noted the Purchase and Sale Agreement (PSA) was the time-sensitive portion of the item at the last meeting and this component is less urgent. He urged his peers to not decide on the matter until the investigation is completed because ATN has paid $55,000 to a lobbyist who has been involved in campaign funding for former Mayor Sidhu and other Council Members. He added ATN and its officers have also donated to campaigns. He added that Greenlaw has also been involved in campaigns and the ongoing investigation’s purpose is to determine if these donations have led to quid pro quo contracts.

MOTION: Council Member Moreno moved to continue the item until the completion of the investigation so the public can be assured any campaign donations are not influencing a decision.

DISCUSSION: In response to Council Member Valencia’s inquiry, Ms. Kotler clarified that ATN does not make political contributions, however, what happens at the private level is the prerogative of America’s democracy. She reported that ATN’s Board is comprised of 15 elected members representing different interests within the City. She listed most of the members of the ATN Board and their corporate affiliations.

In response to Council Member Valencia’s inquiries, Ms. Kotler confirmed Dan Lee, Anaheim Convention Center Deputy Director, is on the Board to represent the City’s interests. She added ATN regularly works with the City’s Planning, Public Works, and Community Development Departments along with other City staff. She confirmed the City has a say on the board.

Council Member Valencia noted several of the Board Members have received public funds from their employers. He agreed with Council Member Moreno that they may be putting the cart before the horse by approving the Agreement before the ATN Board has done so and seconded the motion.

MOTION: Council Member Moreno moved to continue the item until the completion of the investigation so the public can be assured any campaign donations are not influencing a decision, seconded by Council Member Valencia.

DISCUSSION: In response to Mayor Pro Tem O’Neil’s inquiries, Mr. Ramirez confirmed the Agreement must be approved by all three parties before the property sale can close by December 31, 2022. He confirmed that if the Agreement is not completed by the end of the year, the Exclusive Negotiation Agreement (ENA) would expire, and the property becomes subject to the Surplus Land Act.

City Council Minutes of November 15, 2022

Mayor Pro Tem O’Neil stated that if the project is to move forward it is incumbent upon the Council to approve it and not postpone a decision.

Council Member Moreno expressed his appreciation for Ms. Kotler clarifying that ATN itself cannot donate directly to campaigns because it is a non-profit. He added that the Chamber of Commerce is also a non-profit, but its Board Members are in the middle of the corruption scandal. He noted ATN Chairman of the Board Paul Sanford of Wincome Hospitality has given thousands of dollars to political campaigns in Anaheim and added ATN hired Jeff Flint as a lobbyist, noting Mr. Flint is at the center of the FBI’s investigation. He added ATN Board Vice Chair Fred Brown of Desert Palm Hotel and Suites has also made large campaign donations in Anaheim. He added Greenlaw also uses Mr.

Flint as a lobbyist.

Council Member Moreno noted the City does have one vote on the Board and expressed hope that it can be added to the investigative process of how the City itself is part of different civic institutions to help exonerate those not participating in the corruption. He stated this should be a sufficient level of red flags. He stated there is reason to get the work completed but expressed concerns over the integrity of the process. He stated the investigation should be the priority. He added Angels Baseball LP is also represented on the ATN Board.

Council Member Diaz stated whether the Board or City Council approves the Agreement first is like the proverbial question of whether the chicken or the egg came first because they will both have to eventually approve it. He stated anyone in America can be accused but they are not condemned without proof and there is not yet proof of the corruption. He stated he has never been approached by anyone looking to do dirty business, including the representatives of ATN.

MOTION: Council Member Diaz moved to approve Item No. 23 as presented.

DISCUSSION: In response to Mayor Pro Tem O’Neil’s inquiry, Council Member Moreno clarified his motion is to postpone until the investigation is completed.

In response to Mayor Pro Tem O’Neil’s inquiry, City Attorney Robert Fabela confirmed the motion would postpone the item indefinitely because the report's completion date is not yet known.

Council Member Moreno noted people are put in jail before having their cases heard in court in America. He clarified his suggestion is that City Council pause the item, noting he is not charging anyone with anything but merely taking heed of the fact they are implicated prompting an investigation. He stated it is a big deal for the integrity of the City.

In response to Council Member Moreno’s inquiry, Mr. Fabela clarified the timing for the item to come back to City Council has been stated clearly but noted the City only has two rules for a postponement – to a date certain or indefinitely. He added the staff direction has been given to bring it back after the investigation is completed. He noted the delay would put a wrench in the deal.

Council Member Moreno stated it is not the City Council putting a wrench in the deal but rather the bad actors. He clarified that he is not trying to blow up the deal but rather looking for assurance. He clarified his direction would be to allow staff to agendize it following the investigation if the parties involved are exonerated.

Council Member Valencia clarified his previous comments by stating if the City has a staff member on the ATN Board, they should be allowed to first vote for it on their Board and then have the City City Council Minutes of November 15, 2022

Council ratify the Agreement. He stated this way City Council is not telling its staffer what to do. He added this is a good point of governance.

MOTION: Council Member Moreno moved to continue the item until the conclusion of the independent investigation and audit regarding campaign contributions and City contracts and results of the final report, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 2 (Council Members Moreno and Valencia); NOES – 4 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, and Faessel). Motion failed.

DISCUSSION: In response to Council Member Diaz’s inquiry, Mr. Ramirez confirmed that if the ATN Board does not approve the Agreement the deal dies.

MOTION: Council Member Diaz moved to approve a First Amendment to Right of Entry and License Agreement, in substantial form, with Anaheim Transportation Network (ATN) to address the relocation of ATN’s operations for property located at 1234 and 1280 South Anaheim Boulevard and 200 East Ball Road; and authorize the Economic Development Director to execute the First Amendment to Right of Entry and License Agreement and to take the necessary actions to implement and administer the amended agreement (with Relocation Plan as an exhibit to First Amendment), seconded by Council Member Ma’ae. ROLL CALL VOTE: AYES – 4 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, and Faessel); NOES – 2 (Council Members Moreno and Valencia). Motion carried.

Council Member Moreno noted Item No. 31 is related to this item and requested it be heard before Item No. 28. At 8:10 P.M., Mayor Pro Tem O’Neil considered the agenda out of order and heard Item No. 31 prior to Item No. 28.

31. ORDINANCE NO 6545 (ADOPTION) AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to Zoning (DEV2021-00123) (1200-1320 South Anaheim Boulevard, 200 East Ball Road, and 1207 South Claudina Street) [Reclassification to establish the Mixed-Use (MU) Overlay Zone on the property; introduced at the City Council meeting of November 1, 2022, Public Hearing Item No. 16].

Determine that the proposed Reclassification (DEV2021-00123) was adequately analyzed pursuant to the Mitigated Negative Declaration approved in conjunction with the project.

DISCUSSION: In response to Council Member Moreno’s inquiry, Planning and Building Director Ted White confirmed this item is the second reading of the ordinance to reclassify the property and allow for the proposed development.

Council Member Moreno stated he has the same concerns as in Item No. 23 over Greenlaw, as it is part of what a lot of the allegations surround. He clarified that he is not making any accusation of guilt against Greenlaw but rather asking for City Council’s consideration in regards to the $750,000 investigation. He stated that Greenlaw has been involved in campaign fundraising and contracted Mr.

Flint for lobbying. He noted the property is owned by the City, making it within their right to decide how it is used.

Council Member Moreno reported on November 10, 2020, the day of the City Council meeting to approve an extension of Greenlaw’s EDA , $25,000 was deposited by Greenlaw into the Chamber of Commerce’s PAC. He added that the FBI alleges Mr. Flint and former Chamber of Commerce Chief Executive Officer Todd Ament used pay-to-play politics to get projects approved. He added he was unaware of the timing of this transaction at the last meeting, and he was unsure if it was a shakedown City Council Minutes of November 15, 2022

or not, but regardless Greenlaw participated per the FBI’s allegations. He stated the timing of the transaction is too close for comfort, which is exactly why they are doing the investigation.

Council Member Moreno clarified that he is not asking his colleagues to vote against the item but rather to postpone the vote until all parties involved are exonerated by the investigation.

MOTION: Council Member Moreno moved to continue Item No. 31 until the investigation is completed with all parties exonerated at which point staff can agendize the project for City Council consideration, seconded by Council Member Valencia.

DISCUSSION: Mayor Pro Tem O’Neil stated this is very similar to the previous item with the same reasons to either support or not support the motion.

MOTION: Council Member Moreno moved to continue the item until the conclusion of the independent investigation and audit regarding campaign contributions and City contracts and the results of the final report, seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 2 (Council Members Moreno and Valencia); NOES – 4 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, and Faessel). Motion failed.

MOTION: Council Member Ma’ae moved to adopt ORDINANCE NO 6545 AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to Zoning (DEV2021-00123) (1200-1320 South Anaheim Boulevard, 200 East Ball Road, and 1207 South Claudina Street) and determine that the proposed Reclassification (DEV2021-00123) was adequately analyzed pursuant to the Mitigated Negative Declaration approved in conjunction with the project, seconded by Council Member Diaz.

DISCUSSION: In response to Council Member Moreno’s inquiries, City Attorney Robert Fabela stated, similar to the Angel Stadium sale, the transaction could be voided if there are findings of people who voted to approve the item also found to be benefitting financially from the deal through a quid pro quo situation. He clarified that if the deal is voided, any money spent by the contractor in the interim is spent at the contractor’s risk.

In response to Council Member Moreno’s inquiry, Mr. White stated he would have to discuss the next steps with Mr. Fabela if the deal is voided after work had begun but added staff would stop all processing.

Council Member Moreno requested City Council direct staff to not spend any of the proceeds from the sale until the investigation report is published and the parties in the project are exonerated. He noted former Mayor Sidhu wanted to start spending the Angel Stadium sale’s escrow funds and City Council urged him to pull back on the idea over uncertainty surrounding the deal. He encouraged staff to hold any revenues from the sale in the event it needs to be returned to the developer.

Council Member Diaz agreed the deal should be nullified if the allegations prove true and pledged to be the first to make such a request. He added saying no to the deal today would kill it.

MOTION: Council Member Ma’ae moved to adopt ORDINANCE NO 6545 AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to Zoning (DEV2021-00123) (1200-1320 South Anaheim Boulevard, 200 East Ball Road, and 1207 South Claudina Street) and determine that the proposed Reclassification (DEV2021-00123) was adequately analyzed pursuant to the Mitigated Negative Declaration approved in conjunction with the project, seconded by Council Member Diaz. ROLL CALL City Council Minutes of November 15, 2022

VOTE: AYES – 4 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, and Faessel); NOES – 2 (Council Members Moreno and Valencia). Motion carried; ordinance adopted.

28. RESOLUTION NO 2022-135 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees represented by the Anaheim Firefighters Association, Local No. 2899; and superseding Resolution Nos. 2019-076, 2020-107 and 2020-108 (effective June 24, 2022 through June 19, 2025).

Amend the Fire & Rescue Department’s Fiscal Year 2022/23 budget by $3,578,000.

Human Resources Director Linda Andal reported the item is a Memorandum of Understanding (MOU) for terms and conditions of employment for classifications in the Anaheim Firefighters Association (AFA). She added staff is also recommending an amendment to the budget of about $3,500,000.

She reported the AFA represents 209 employees and provided the major provisions of the MOU including a 3.5% annual wage increase effective June 24, 2022, and a one-time lump sum non- pensionable payment of $5,000. She added the cost of the three-year contract is approximately $16,000,000 with $3,500,000 due in the current Fiscal Year.

DISCUSSION: In response to Council Member Moreno’s inquiry, Anaheim Fire & Rescue (AF&R) Chief Patrick Russell confirmed the new contract would increase staffing by five a day.

Council Member Moreno noted the above-average AF&R and Anaheim Police Department (APD) presence at Disneyland is in part because Disney pays for four (4) AF&R firefighters daily.

In response to Council Member Moreno’s inquiries, Fire Chief Russell confirmed Disney also pays for the extra APD officers assigned to the Resort. He confirmed the AF&R coverage zone is the entire Resort area and not merely Disneyland itself. He stated he thinks this is the same for APD officers but could not confirm it. He confirmed the agreement with Disney is contractual where AF&R provides two (2) paramedic units. He confirmed the Disney contract is usually for a five-year term with the current contract up for renewal next year. He reported Disney reimburses AF&R for 14 hours a day out of a 24-hour shift and the AF&R also bills Disney if personnel have to return to the park during the other 10 hours.

In response to Council Member Moreno’s inquiry, Fire Chief Russell theorized if the contract with Disney was not renewed, he would have to discuss what to do about the four AF&R staffers with Ms.

Andal and the City Manager. He added the contract has a two-way 90-day notification clause if it were to be canceled. He stated he expects Disney to continue with the contract as the dedicated paramedic service is top-notch. He stated he could not predict the future of the contract, but of the 20-plus years of the contract’s history, there has never been any indication of wanting to go in a different direction.

Council Member Moreno stated the basis for his last question is Disney reneging on a promise to give sixth graders passes to the park for 10 years for performing community service five years into the program.

Fire Chief Russell clarified AF&R would still have a responsibility to provide Emergency Medical Services and fire coverage to Disneyland even without the Disney-dedicated staff but noted it would fall back to their 911 units. He reported Disney has stated several times they do not wish to impact the City’s 911 resources.

City Council Minutes of November 15, 2022

Council Member Moreno expressed his hope that the contractual arrangement will continue.

In response to Council Member Moreno’s inquiries, Fire Chief Russell stated it costs the City about $250,000 for each firefighter, including salary and benefits, and confirmed they are paid through the General Fund.

In response to Council Member Moreno’s inquiry, Ms. Andal clarified the previous contract was over five years but only the final three years had compounded wages. She added this contract has higher wage and burden expense, making it costlier even with a shorter three-year duration. She added the new contract includes changes to specialty pay. She confirmed the wage increase is higher with this contract than with the previous contract. She clarified the last contract was approved in 2019 but the AFA had gone without a contract for two years so City Council authorized a lump sum payment of 4% for the first two fiscal years which did not compound and was not pensionable. She added the last three years of the previous contract only had a 6.5% raise instead of the current 10.5%.

In response to Council Member Moreno’s inquiry, Fire Chief Russell confirmed it is around 88-90% of every salary dollar for public safety employees goes to benefits and pension.

In response to Council Member Moreno’s inquiry, Ms. Andal confirmed part of why the current contract is so much higher is the compounding wages.

In response to Council Member Moreno’s inquiry, Ms. Andal clarified the AFA contract expired in June and the City Council has authorized retroactive wages from the date the contract expired.

In response to Council Member Moreno’s inquiries, Ms. Andal stated the one-time lump sum non- pensionable payment of $5,000 in the new contract is a term of the negotiation. She added it helps offset longer-term costs by not going into compounding wages and saving the City money in the future. She emphasized how the $5,000 payments are non-pensionable, reduce the cost to the General Fund, and were a term of the negotiations.

In response to Council Member Moreno’s inquiries, City Manager Jim Vanderpool confirmed Ms.

Andal’s assessment of the $5,000 as a term of negotiation. He added retroactivity and lump sum payments are very common which leads to staff’s comfort level with the recommendation. He noted it does not compound. He clarified it is a lump sum payment and not a bonus because of how a bonus is classified by the California Public Employees’ Retirement System (CalPERS). He confirmed $5,000 is a negotiated amount both parties agreed to. He stated it is not uncommon for these sorts of payments to be used with the City’s employee associations and added it is an effective way to control long-term costs.

Council Member Moreno stated he heard different language when the contract was discussed in Closed Session.

Mr. Fabela cautioned Council Member Moreno to be careful when discussing the language used in Closed Session.

Council Member Moreno lamented the spirit of how this deal was ratified and expressed hope that all other employee groups are considered in the same way around a lump sum payment that is not tied to controlling the salary wage increases. He stated this is a change from the City’s normal procedures because the annual wage increases are also quite fair. He noted the staff report uses the word “bonus” after Mr. Vanderpool stated the semantics matter.

City Council Minutes of November 15, 2022

Mr. Vanderpool stated he just spoke to the City Attorney and the language discussed in Closed Session alluded to earlier by Council Member Moreno was rejected by the negotiators.

Council Member Moreno encouraged his colleagues if they approve the contract to also exercise the same level of generosity to all employee groups. He stated his intent is not to argue whether or not the firefighters deserve it but rather to have it apply to all City staff for purposes of equity and fairness.

In response to Council Member Moreno’s inquiry, Ms. Andal confirmed the one-time payments would cost the City around $1,000,000.

Council Member Moreno encouraged the other Council Members to approve $5,000 payments to all employee groups.

Council Member Diaz noted inflation is impacting everyone so in three years the firefighters would be making relatively the same as they do today. He lauded the long hours and dangerous work performed by firefighters. He stated he and all residents want the best when they call 911 and this is why he supports the deal.

Council Member Moreno stated response times in public safety are not where they would like to see them. He added this involves staffing and the larger the contracts the harder it is to hire more people without a new revenue stream. He added that a theoretical $80,000,000 in annual gate tax revenues would be useful to help expand services. He noted the City’s budget office’s warning about the current APD contract likely requiring reserves to fulfill. He stated the City is hitting a ceiling of what it can afford. He added the future City Council would need to look at where they could raise more revenues to fulfill this contract and reduce response times. He added many City employees put themselves at risk health-wise during the pandemic working at the Convention Center and elsewhere helping residents and one group should not be considered more important than another because the City is a sum of its parts. He expressed concerns about the budget becoming too unbalanced and preventing residents from enjoying a good quality of life.

MOTION: Council Member Diaz moved to approve RESOLUTION NO 2022-135 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees represented by the Anaheim Firefighters Association, Local No. 2899; and superseding Resolution Nos. 2019-076, 2020- 107 and 2020-108 (effective June 24, 2022 through June 19, 2025), seconded by Council Member Valencia. ROLL CALL VOTE: AYES – 6 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES – 0. Motion carried.

34. Receive information regarding the Mickey and Friends Parking Structure and whether the change of title from the City to the Disney company following the bonds being paid off could be considered a gift of public funds (informational item).

City Attorney Robert Fabela reported this discussion was agendized at the October 25, 2022 meeting at the request of Council Member Moreno. He stated in 1996 the City and Disney entered into a contract for Resort area improvements, including the issuance of Lease Revenue Bonds in 1997 to finance the improvements. He reported as part of the transaction, the City is obligated to revert possession of the Mickey and Friends Parking Structure to Disney upon their repayment.

Mr. Fabela, citing case law, stated it would be difficult to make a strong legal argument that reverting possession of the garage to Disney amounts to a gift of public funds because the deal provided a City Council Minutes of November 15, 2022

large number of public benefits as documented in 1996 including job creation and driving tourism in the City. He stated reverting possession of the garage would not be legally considered a gift of public funds.

DISCUSSION: Council Member Moreno stated he has often heard from concerned residents that this would be a gift of public funds. He noted there are many facilities the City leases to non-profits for $1 a year with the City retaining ownership, citing the Boys & Girls Club’s facility and the lease of Ross Park to the Young Men’s Christian Association (YMCA). He reported that he has been told by staff that giving the facility to the Boys & Girls Club, or other similar properties, would be a gift of public funds.

In response to Council Member Moreno’s inquiry, Mr. Fabela confirmed that the garage is a publicly owned structure.

In response to Council Member Moreno’s inquiry, Convention, Sports, and Entertainment Executive Director Tom Morton noted he was not with the City in 1996 but added the garage has been publicly owned throughout his tenure beginning in 2009.

In response to Council Member Moreno’s inquiry, Mr. Fabela confirmed the garage is currently owned by the City.

In response to Council Member Moreno’s inquiry, Convention, Sports, and Entertainment Deputy Director Mindy Abel confirmed the City leases the garage to Disney for $1 a year until the bonds are repaid.

In response to Council Member Moreno’s inquiries, Mr. Morton clarified the City has overflow opportunities to use the garage for Convention Center events, adding up to 1,000 parking spaces subject to 48 blackout dates. He added this revenue comes back to the City if the Convention Center has an overflowing event. He confirmed this revenue total is audited every three years. He stated thus far in 2022, the Convention Center has overflowed approximately 3,800 cars generating approximately $57,000 in revenue. He confirmed this money goes to the Convention Center’s Enterprise Fund.

In response to Council Member Moreno’s inquiry, Mr. Fabela clarified the garage is part of a much larger deal that led to Convention Center expansion, public improvements, and other things besides simply the garage.

In response to Council Member Moreno’s inquiry, Mr. Fabela stated the law clarifies that this is not a gift of public funds. He stated there is a reasonable basis to state the public has benefitted from the structure over the years. He added it is a challenge to relate to 1996 and public purposes identified at the time of the transaction. He stated there would not be a credible argument against the garage providing a public benefit since 1996.

In response to Council Member Moreno’s inquiry, Mr. Fabela stated lawyers do not like offering opinions on hypothetical situations like the one presented by Council Member Moreno of a Trader Joe’s taking over a City-owned building. He noted his staff report cited 2001’s Preston v. State Board of Equalization which states legislative bodies do not violate gift of public funds restrictions by issuing bonds to fund a private development replacing clear blight with residential or commercial buildings.

He noted it has long been established that economic development is a public purpose. He added if the legislature finds it is economic development, the court will defer to the finding.

City Council Minutes of November 15, 2022

Council Member Moreno acknowledged under the guise of public or economic benefit, a municipality can turn over public buildings and lands. He stated it is worrisome and seems like a loophole. He encouraged Council Member Valencia to look into this in his new State Assembly role. He thanked Mr. Fabela for providing this understanding to himself and the public.

Mayor Pro Tem O’Neil noted the incremental tax revenues the deal created paid for the bonds. He added the City would not have had these funds without making the initial investment.

In response to Mayor Pro Tem O’Neil’s inquiries, Mr. Fabela stated there have been cases in this area of law since 1996 but none of them have changed the general basis of the law. He noted he could not speak to the way the matter was handled legally in 1996 but added what they have seen over time is more examples from the courts of how to assess what is a gift of public funds. He could not confirm if the City Council would have considered in 1996 if this was a gift of public funds when drafting the agreement but added the precedents are long-established and expressed confidence former City Attorney Jack White would have covered this issue.

In response to Mayor Pro Tem O’Neil’s inquiry, Mr. Fabela confirmed there is a three-year statute of limitations for challenges.

In response to Mayor Pro Tem O’Neil’s inquiries, Mr. Fabela stated the land may likely have been owned by Disney in 1996 and the City did not own title to the land.

Mayor Pro Tem O’Neil referred to the 1996 documentation to state it was Disney’s land and the City was entering into a ground lease. He added ground leases are common and often are held for long terms.

In response to Mayor Pro Tem O’Neil’s inquiries, Mr. Fabela stated ownership of the building at the end of a ground lease depends on the deal. He confirmed in this case it would be Disney’s property and the City’s building with the City reverting the building’s title to Disney. He stated the building is in the possession of the City requiring the reversion requirement.

Mayor Pro Tem O’Neil stated the structure of the agreement is typical of how ground leases typically work when they expire.

In response to Mayor Pro Tem O’Neil’s inquiry, Mr. Fabela could not confirm what the ending terms of the ground lease are in the agreement.

Mayor Pro Tem O’Neil noted the garage itself is just one component of a larger deal bringing huge benefits to the City.

Council Member Moreno agreed the deal brought huge benefits to the City. He questioned why the City is giving up a building that could provide so much revenue. He expressed appreciation for Mayor Pro Tem O’Neil educating the public about the ground lease question.

In response to Council Member Moreno’s inquiry, Mr. Fabela agreed it is fair to say this ground lease scenario is similar to a mobile home park.

Mr. Fabela reported he did get confirmation the term of the ground lease is tied to the maturity of the bonds.

City Council Minutes of November 15, 2022

Council Member Moreno noted the bond was issued for public infrastructure which also helped Disney build profits along with the City. He stated it is unfortunate that the City will not create revenues from the garage.

Discussion item. No action taken.

35. Direct staff, in anticipation of potential litigation, to issue a Request for Proposal for a full property condition assessment report of Angel Stadium in accordance with the 1996 Lease obligation for it to be maintained at a level at least equal to first class professional baseball stadiums.

Mayor Pro Tem O’Neil reported in the previous meeting’s Closed Session the City Council discussed potential litigation relative to the issue of the condition of Angel Stadium. He requested City Attorney Robert Fabela be mindful as the item is discussed in public that comments remain under the Brown Act regarding Closed Session discussions and staff directions.

Mr. Fabela reminded City Council not to discuss in public what was discussed relative to the potential litigation.

Convention, Sports, and Entertainment Executive Director Tom Morton reported the item was agendized by Council Member Moreno at the last meeting to discuss issuing a Request for Proposal (RFP) to assess the maintenance and upkeep of Angel Stadium under the 1996 Lease obligation for it to be maintained at a level at least equal to first-class professional baseball stadiums.

DISCUSSION: Council Member Moreno stated the goal is to ensure the City is doing its due diligence as a good landlord. He reported staff’s recollection at the last meeting is there has never been a full assessment of the stadium despite the Los Angeles Angels’ requirement obligations in the lease. He noted the Angels have not documented their stated need of $130,000,000-$150,000,000 to maintain the facility at a first-class level.

In response to Council Member Moreno’s inquiries, Mr. Morton clarified in 2013 there was an intent to have a deliverable but the MOUs never went forward. He added the Angels contracted for their assessment but it never reached a final work product. He confirmed the City intended to pay for half of this analysis. He stated his recollection is the City did pay about $65,000 but did not receive a final work product.

Council Member Moreno noted numbers were used in public discussions even though the City did not receive a final report. He stated whatever the cost would be it would be the obligation of the tenant.

He stated his intent with this item is to direct staff to provide an RFP for a full property condition assessment and ensure the obligations of the lease are being met for the benefit of a future City Council to use as needed.

MOTION: Council Member Moreno moved to direct staff, in anticipation of potential litigation, to issue a Request for Proposal for a full property condition assessment report of Angel Stadium in accordance with the 1996 Lease obligation for it to be maintained at a level at least equal to first class professional baseball stadiums, seconded by Council Member Faessel.

DISCUSSION: Mayor Pro Tem O’Neil noted the last two items, both the subject of much recent controversy, originated in 1996.

City Council Minutes of November 15, 2022

MOTION: Council Member Moreno moved to direct staff, in anticipation of potential litigation, to issue a Request for Proposal for a full property condition assessment report of Angel Stadium in accordance with the 1996 Lease obligation for it to be maintained at a level at least equal to first class professional baseball stadiums, seconded by Council Member Faessel. ROLL CALL VOTE: AYES – 6 (Mayor Pro Tem O’Neil and Council Members Diaz, Ma’ae, Moreno, Valencia, and Faessel); NOES – 0. Motion carried.

36. Nominate and designate a representative for the City Selection Committee meeting to be held on Thursday, December 1, 2022.

City Selection Committee:

DESIGNATED REPRESENTATIVE: Council Member Jose Diaz NOMINATION: Mayor Pro Tem O’Neil nominated Council Member Diaz DISCUSSION: In response to Council Member Moreno’s inquiry, City Clerk Theresa Bass stated the City Selection Committee is made up of mayors and representatives convened to make selections for certain County boards and commissions. She added the Committee will meet on December 1, 2022 to make appointments.

Council Member Moreno expressed his support for the nomination, adding it is a very important position.

NOMINATION: Mayor Pro Tem O’Neil nominated 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. Nomination approved.

PUBLIC HEARING:

37. Public hearing to establish the Commercial Façade Improvement Program (Program) and approve the guidelines for the Program.

RESOLUTION NO. 2022-141 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a Commercial Façade Improvement Program (Program) and approving guidelines for the program; direct and authorize the Director of Economic Development, or designee, to execute all related documents, and to take such actions as necessary or advisable to implement and administer the Program on behalf of the City; and determining that the Program is categorically exempt from the California Environmental Quality Act.

Economic Development Director Sergio Ramirez stated as part of the effort to revive business corridors the City Council approved a $500,000 allocation to the Economic Development budget for a Commercial Façade Improvement Program. He added it is aimed at providing one-time grants for the enhancement of business storefronts.

Business Development Manager Shant Boodanian reported the financial assistance would include two types of grants – Grant A providing up to $10,000 for cosmetic improvements and Grant B providing up to $100,000 for structural improvements. He added businesses would be required to contribute at least 25% of the total improvement costs.

City Council Minutes of November 15, 2022

Mr. Boodanian reported examples of Grant A improvements include landscaping, awnings, canopies, professional repair of external structures, exterior painting visible from a public right-of-way, and exterior lighting for appearance and/or safety. He reported that Grant B improvements include storefront restoration or renovation, exterior façade treatments, signage repair or replacement, and asphalt resurfacing, among others. He detailed the application process, including a final review by the City for the project. He stated staff recommends approval of the guidelines and directing staff to implement and administer the program.

DISCUSSION: Council Member Valencia stated he supports the program but added he hopes the application window would be fair, noting several businesses on Beach Blvd. have already been alerted to its potential existence. He expressed his support for the revitalization of Beach Boulevard but requested preference not be given to any one region.

Mr. Ramirez confirmed it is a citywide program. He acknowledged the program has been mentioned during Beach Blvd., Lincoln Ave., and Anaheim Blvd. outreach efforts among other areas. He stated businesses were informed that the program is in its infancy and the program details have not yet been presented to City Council. He reported staff is already receiving interest. He confirmed approval of the item would commence a citywide marketing effort. He expressed hope that the program will be very successful and that the funding level will be increased in future years.

Council Member Diaz thanked staff for this important program for west Anaheim. He noted the City would share the cost, but the community would share the benefit because well-maintained shopping centers make a difference in a community. He stated it would lead to cleaner, safer, and more- walkable streets, providing several visual examples of local small businesses benefitting from modern-looking façade improvements. He expressed his support for the item.

Mr. Ramirez added these sorts of rehabilitations create a spill-over effect where neighboring properties also aim to improve themselves.

Council Member Diaz recalled the many broken windows of Downtown Anaheim in the 1970s compared to what is seen today.

Council Member Ma’ae noted the upcoming Brookhurst corridor study in conjunction with this program would provide the potential for improvements along Brookhurst St. She echoed Council Member Valencia’s comments about distributing the opportunities equally and called for consideration of how to best spread the funds around the City. She suggested potentially establishing percentages per district, her hope that the program would grow in the future, and expressed confidence staff would manage this well.

Mr. Ramirez stated those comments are noted and added this would be considered as the program is implemented.

Council Member Moreno noted this would be his last legislative act and he loved how this is the item.

He reported how often he hears from small businesses and residents of certain neighborhoods feeling neglected. He thanked Public Works Director Rudy Emami, the Community Services Department, the Community Development Department, and the Housing Authority for getting grants for these underinvested areas, lamenting that not enough of the General Fund is used for neighborhoods. He thanked City Manager Jim Vanderpool for living up to what he envisioned when the Economic Development Department was created. He commended Mr. Ramirez for being the right person to lead the new department.

City Council Minutes of November 15, 2022

Council Member Moreno agreed with his colleagues about certain spaces attracting negative influences and reducing property values, community pride, and safety. He echoed Council Member Ma’ae’s comments in expressing hope that the program grows larger than $500,000 in the future because this is exactly what the City should be investing its resources into. He stated these small investments will bring big returns.

In response to Council Member Moreno’s inquiry, Mr. Ramirez stated staff would rely on existing lease agreements to ensure landlords do not start rent-gauging tenants who have paid to improve their property through these grants. He lamented that there may not be any provision the City could include in these private contracts to prevent rental rate modifications. He acknowledged that a landlord raising rents after façade improvements could happen and is a risk. He noted a corresponding increase in sales from the improvements could help cover a potentially higher rent.

Council Member Moreno suggested looking into an equity-sharing model similar to one being done through the City’s housing renovation program.

In response to Council Member Moreno’s inquiry, Mr. Ramirez expressed doubts that the City could legally impose a rent increase cap on an improved property. He added the program’s guidelines would require the grant-funded improvements be maintained for five years and added this would transfer to a new property owner. He noted the City would receive some return on its investment through increased property taxes if it were sold and reassessed.

Council Member Moreno also suggested potentially modeling the program after the federal government’s Paycheck Protection Program (PPP) loans during the pandemic and not having to repay the loan if rent levels are sustained below a certain threshold for five years. He added it would be tragic for a mom-and-pop store, due to increased rent, to be pushed out of a property it helped improve through its success.

Council Member Moreno echoed Council Member Valencia’s comments about the program applying citywide but noted some areas of the City are more blighted than others. He suggested having a separate category for areas such as Beach Blvd. identified as being more blighted while also maintaining a more general fund for areas needing help but less urgently. He encouraged future City Councils to increase the financial resources for this program and thanked staff for this small business- focused program.

Council Member Faessel expressed his support for the item. He noted State College Blvd. needs attention as well. He thanked Mr. Vanderpool and the Economic Development staff for their help with District 5’s small businesses. He added he has regularly heard Mr. Boodanian was instrumental in helping small businesses confused by the inner workings of the City’s government get needed assistance on a variety of issues. He thanked Mr. Boodanian for his work acting as a sort of unofficial small business ombudsman. He agreed with Council Member Moreno that there is even more to be done with this program in the future.

Mayor Pro Tem O’Neil opened the public hearing.

City Clerk Theresa Bass reported no electronic comments were submitted related to Public Hearing Item No. 37.

There being no in person speakers, Mayor Pro Tem O’Neil closed the public hearing.

City Council Minutes of November 15, 2022

MOTION: Mayor Pro Tem O’Neil moved to approve RESOLUTION NO. 2022-141 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a Commercial Façade Improvement Program (Program) and approving guidelines for the program; direct and authorize the Director of Economic Development, or designee, to execute all related documents, and to take such actions as necessary or advisable to implement and administer the Program on behalf of the City; and determining that the Program is categorically exempt from the California Environmental Quality Act, 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.

REPORT ON CLOSED SESSION ACTIONS: None
PUBLIC COMMENTS (non-agenda items): None
COUNCIL COMMUNICATIONS:

Council Member Valencia announced that tonight would be his last City Council meeting as the election results currently showed him being elected to the California Assembly. He highlighted the accomplishments of his District 4 office, including bringing the County’s first vaccination Super POD to District 4, hiring more public safety officers, reducing emergency response times, approving a new park in District 4, helping secure $15,000,000 to enhance Boysen Park, increasing the number of affordable housing, specifically in District 4, supported both large and small businesses, and worked to ensure the Angels deal did not move forward. He thanked staff for their support and for serving the City’s residents, he thanked his colleagues for their dialogue and interactions and hoped that their future decisions would keep the best interest of residents at the forefront, and thanked Anaheim residents for trusting him on the City Council as well as in future efforts.

Council Member Faessel highlighted the approval of Agenda Item No. 21, the Store One Project at the former Northgate Gonzalez Market. He noted his participation in a tour of the Lenain Water Plant with Katella High School environmental class students. He recognized Reborn Cabinets for their Baths for the Brave program and providing two bathrooms, and the Rotary Club for a clean-up event in the Balsam/Curtis neighborhood. He reported his participation at a meeting with moms in the Edison area regarding neighborhood improvements, the Veterans Ceremony, and the Anaheim Health Fair where approximately 1,000 people received free services. He wished everyone a happy Thanksgiving.

Council Member Moreno thanked Council Member Valencia for his work and hoped he would continue his efforts at the State level. He highlighted the Store One Project, thanking Housing and Community Development Director Grace Stepter for her efforts, and the Anaheim Health Fair, acknowledging former Mayor Sidhu’s contributions to that event over the years. He congratulated his daughter, Liliana Moreno, for being named the Orange League Volleyball Defensive Player of the Year. He thanked all those who voted, congratulated all who won, acknowledged the efforts of all candidates, stated that there was a continued need for campaign reform, which he hoped would be approved by the new City Council, and thanked staff for their continued efforts.

Council Member Ma’ae thanked Council Member Valencia for his work, perspective, and guidance, and looked forward to his work on the State level to continue serving Anaheim.

COUNCIL AGENDA SETTING: None
City Council Minutes of November 15, 2022

ADJOURNMENT:

At 10:04 P.M., with no further business to conduct, Mayor Pro Tem O’Neil adjourned the City Council in memory of Mary Jo Hesketh, Andrew Ersek, Jimmy Phong Khuu, and Nowella Kilikina Kaehu.

Respectfully submitted,
Theresa Bass, CMC
City Clerk