Anaheim City Council
July 16, 2024

ANAHEIM CITY COUNCIL
REGULAR MEETING OF OCTOBER 17, 2023
The regular meeting of October 17, 2023 was called to order at 4:01 p.m. in the Council Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related material were duly posted on October 12, 2023.

MEMBERS PRESENT: Mayor Ashleigh E. Aitken and Council Members Jose Diaz, Carlos A.

Leon, Norma Campos Kurtz, Stephen Faessel, and Natalie Meeks.

Mayor Pro Tem Natalie Rubalcava joined during Closed Session.

STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and City Clerk Theresa Bass
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS:

Mike Robbins commented on Item No. 4 expressing concerns about the claim for damages and consideration of payment to the owner of the Angels baseball team given the allegations of inappropriate actions taken by the owner and other individuals regarding the sale of the stadium.

Vern Nelson cited the alleged corrupt actions of lobbyists and Angels employees during the Angels Stadium negotiations. He expressed concerns about potential payments to the owner of the Angels baseball team related to Closed Session Item No. 4, given the allegations of inappropriate actions taken by the owner and other individuals regarding the sale of the stadium. He requested the City Council reconsider the current lease agreement with the Angels and reevaluate the lease payment.

Cecil Jordan Corkern expressed concerns regarding allegations of inappropriate conduct by Disney representatives and provided his opinion on current international affairs.

City Clerk Bass reported that no electronic public comments were received related to the Closed Session agenda.

CLOSED SESSION: At 4:13 p.m., Mayor Aitken 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: Jose Martinez v. City of Anaheim, et al., Orange County Superior Court Case No. 30-2023-01303186-CU-PO-NJC

2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) of Subdivision (d) of California Government Code Section 54956.9): One potential case (A copy of the claim against the City is included in the agenda packet and available for review by contacting the City Clerk’s Office and on-line electronically with the agenda at: www.anaheim.net/councilagendas.)
ITEM # 28
City Council Minutes of October 17, 2023

3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of Subdivision (d) of California Government Code Section 54956.9: Two potential cases

4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) of Subdivision (d) of California Government Code Section 54956.9): One potential case (A copy of the claim against the City is included in the agenda packet and available for review by contacting the City Clerk’s Office and on-line electronically with the agenda at: www.anaheim.net/councilagendas.)
At 5:12 p.m., Mayor Aitken reconvened the Anaheim City Council.

MEMBERS PRESENT: Mayor Ashleigh E. Aitken and Council Members Natalie Rubalcava, Jose Diaz, Carlos A. Leon, Norma Campos Kurtz, Stephen Faessel, and Natalie Meeks.

Mayor Aitken thanked Anaheim Fire and Rescue Department for the shirts worn by the City Council and staff in recognition of Breast Cancer Awareness Month.

Mayor Aitken spoke of the passing of former Council Member Jordan Brandman, highlighted and thanked him for his service, and expressed her condolences, on behalf of the City, to his family during this difficult time.

INVOCATION: Reverend Yil Song, Anaheim Korean Presbyterian Church FLAG SALUTE: Council Member Jose Diaz
PRESENTATIONS: Recognizing Assistant City Attorney, Moses Johnson on his retirement and 29 years of service to the City of Anaheim
Mayor Aitken announced that Mr. Johnson successfully represented the City in court on a range of challenging issues. She noted he has argued on behalf of the City on public safety lawsuits, tax revenue, the City’s right to control dispensaries, and more. He led his peers in organizing and successfully negotiating labor agreements on behalf of the American Federation of State, County, and Municipal Employees (AFSCME). The City Council wished Mr. Johnson the best in his next chapter, including time with his loving wife, Jenny and their new grandson, Theodore. On behalf of the City, Mayor Aitken thanked Mr. Johnson for his service and congratulated him and his family. Mr.

Johnson thanked the City Council and City staff. He noted it has been an honor and privilege to serve the City for 29 years and wished staff good luck.

Recognizing Cambria Hotel employee Gerardo Ceja for his life saving efforts Mayor Aitken announced that Mr. Ceja, Cambria Hotel’s Preventative Maintenance Engineer, performed life saving efforts on July 10, 2023, when a hotel guest’s baby stopped breathing and he started performing CPR while others called for first responders. The child's life was saved due in large part to Mr. Ceja’s heroic efforts. Mr. Ceja thanked his employers and fellow employees who also supported him in this effort.

City Council Minutes of October 17, 2023

Recognizing the legacy of lifelong Anaheim resident and community advocate Josie Montoya
Mayor Aitken announced that the late Josie Montoya was being recognized for her lifelong dedication to community advocacy in Anaheim. She was a lifelong resident who fought tirelessly against police brutality, domestic violence, homelessness, and discrimination against undocumented immigrants.

She founded two Anaheim youth centers, a community food program, and counseled thousands of those in need. A video was displayed displaying her achievements including Little People’s Park, a local mural, and improving relations between City officials and the Hispanic community. Ms.

Montoya’s daughter, Jessica Castro, accepted the recognition and highlighted her mother's advocacy at City Hall and celebrated the improvement of the mural at Little People’s Park. She highlighted her mother’s dedication to community improvements and challenged the public to make a positive change. She recognized additional members of the Montoya family and their contributions to the community.

Recognizing the City of Anaheim's 2023 Employee VIPs
Human Resources Organizational Development & Training Manager Tesa Tomas noted each year the city holds an annual employee appreciation picnic to acknowledge all employees for their commitment and dedication to Anaheim. This effort is made possible with the support of the City Council and executive management. As part of this year's event, all City employees were invited to nominate a colleague whose efforts include strengthening the culture and environment of our workforce and those who go above and beyond to help others and demonstrate kindness, positivity, compassion, and teamwork. The “VIPs” were announced and recognized at the annual picnic. She thanked the City planning committee for their efforts and announced the various City honorees including Kirk Wallace, Communications Manager/Police Department; Liliana Cabrera, Community Engagement Specialist/Fire Department; Tarisa Calato, Administrative Assistant/Convention Center; Saki Whitlock, Resource Program Specialist/Public Utilities; Erin Tinoco, Assistant City Attorney; Karla Ocegueda, Senior Office Specialist/City Clerk’s Office; Monica Pinto, Staff Analyst/Housing and Community Development; Mi-Jung Kim, GIS System Technician/Finance Department; Khristin Vargas, Acting Benefits Manager/Human Resources; Tiffany Gomez, Revenue and Licensing Supervisor/Planning; Yvette Rodriguez, Senior Administrative Analyst/Public Works; Stephen Stoewer, Acting Community Investment Manager/Economic Development; Leticia Garcia, Community Services, and Alyssa Guerrero, City Manager’s Office.

Parks & Recreation Commission Presentation
Chair Ryan Balius thanked the City Council for the opportunity to present the Parks and Recreation Commission. A video was displayed highlighting the various parks and activities within City parks. He provided a brief history on his tenure on the Parks and Recreation Commission and introduced the Commission members consisting of Greg Martin, District 2; Carlotta Rhea Clark, District 3; Tony Flores, District 4; Lynn Cudd, District 5; James Cook, District 6; and Fred Sigala Jr., Mayoral Appointee. The Commission acts in an advisory capacity to the City Council and Community Services Director in all matters pertaining to parks and recreation in the City. They recommend related policies, and standards on facilities, programs, and financial support, serve as liaisons between the public and the Council as related to parks and recreation, and provide recommendations on associated annual budget items to the City Manager and City Council for approval. He presented historical information on past projects and ongoing capital improvement projects, including playground upgrades. He concluded by stating the Commission supports the motto that, “Parks make life better.” City Council Minutes of October 17, 2023

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

Recognizing October 15 – 21, 2023, as National Friends of the Library Week Senior Library Clerk, Cassandra Amaya stated that it was both an honor and a privilege to accept the proclamation in celebration of National Friends of the Library Week. She highlighted the recognitions meaning to staff as it shines an important and well-deserved spotlight on champions of our community, the Friends of Anaheim Public Library, the Anaheim Public Library Foundation, the Friends of Canyon Hills Library, the volunteers, and City staff who keep the Libraries a place of learning inspiration and community for all.

Recognizing Stand Up for Kids Orange County for 20 years of service to the community
Stand Up for Kids Orange County Case Manager III, Elle Martinez noted the organization has been established for 30 years as a nonprofit serving youth ages 12 to 24 who are experiencing homelessness or are at risk of experiencing homelessness. Through the Housing First grant, they provide stable housing to youth in Anaheim and partner with several local agencies. They also partner to provide other services such as entrepreneur programs, mentoring, tutoring, STEM workshops, grocery deliveries, hygiene items, transportation, and school supplies. She expressed gratitude for the trust and support of the City of Anaheim and looks forward to supporting more youth with the continued support and collaboration of the City.

ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (all agenda items, except public hearing): Prior to receipt of public comments, City Clerk Theresa Bass provided an outline of procedures for public comments, notice of translation services, and a brief decorum.

City Clerk Bass reported that a total of ten (10) public comments were received electronically prior to 3:30 P.M. related to City Council agenda items and matters within the jurisdiction of the Anaheim City Council. [A final total of twelve (12) public comments were received electronically, distributed to the City Council, and made part of the official records]. – See Appendix.

Mike Robbins suggested community member Shirley Grindle should be responsible for selecting the new City Ethics Officer.

Cecil Jordan Corkern provided his opinion on international and local politics and discussed various topics including homelessness.

Vern Nelson expressed concern regarding corruption in the City related to the sale of Angel Stadium and the potential involvement of the Angels baseball team owner. He cited alleged actions by the former Mayor and their involvement with the team owner.

Dinorah expressed concern regarding allegations of corruption related to housing services in Anaheim. She cited allegations of discrimination and requested the City Council investigate the housing process.

Arty Castillo expressed gratitude for the work of Josie Montoya. He expressed concern regarding allegations of police brutality and corruption in the City. He requested a meeting with Mayor Pro Tem Rubalcava to discuss issues regarding police brutality and community issues.

City Council Minutes of October 17, 2023

Mazatl Tepehyolotzin thanked Council Members Leon and Faessel for their support for Indigenous Peoples Day and Mayor Pro Tem Rubalcava for the Little People’s Park mural. He requested support in eliminating any discrimination against indigenous peoples in the City and requested the City Manager assist with removing the mascot name of Anaheim High School.

Gibran Stout expressed concern regarding the closure of the Orange County Equestrian Center. She noted the Orange Equestrian Center, which closed in 2022, served as an evacuation center for large animals. She emphasized, following the closure of the center, there is a shortage of horse housing and requested the City Council’s support to preserve and restore the Orange County Fairgrounds equestrian center.

Victoria Michaels reminded the City Council they represent the interests of all their constituents. She expressed concern regarding the tactics utilized by those gathering signatures in the current campaign to recall Mayor Pro Tem Rubalcava.

Gloria S. Ma'ae expressed support for Mayor Pro Tem Rubalcava and the work she has accomplished and expressed disappointment over the recall campaign against Mayor Pro Tem Rubalcava. She invited the community to volunteer for and attend the upcoming Halloween 100th Anniversary parade and fall festival. She highlighted the Cops4Kids event and encouraged the public to attend and highlighted the Council’s support on voting ‘no’ on Measure A.

Bryan Kaye expressed concern that his comments are not respected by City leaders and requested the City Council support Mayor Pro Tem Rubalcava against the current recall campaign.

Cindy Smith expressed gratitude for participating in the discussion and process regarding Measure A and its impact on businesses and citizens of Anaheim. She thanked Mayor Pro Tem Rubalcava for her leadership and the policy on personal safety devices for hotel employees.

Bharat Patel thanked the City Council for opposing Measure A and for putting the matter out to a vote. He thanked Mayor Pro Tem Rubalcava for advancing the panic button requirement for hotel workers.

Marc Herbert highlighted concerns regarding the Planning Commission including the lack of video broadcasting for recent Planning Commission meetings, the lack of order for calling public speakers, and the request for speakers’ home addresses. He requested the status of the Fire Station 12 project and expressed concerns regarding a potential lobbyist violation relating to a charter school project.

Kelly Laimana thanked the City Council for their position on Measure A. She thanked Mayor Pro Tem Rubalcava for advancing the panic button requirement for hotel workers.

Mark Richard Daniels expressed concerns regarding the recent Planning Commission meetings and the order for calling public speakers. He highlighted potential conflicts of interest between the Planning Commission and City Council regarding the decision-making process for an upcoming Disney project.

Kenneth Batiste thanked Council Member Kurtz for meeting with constituents and commented on homeless concerns. He expressed concern regarding the lack of campaign reform in the City, lack of rent control or stabilization, and the recent charter school matter and the need for the City to make better financial decisions.

City Council Minutes of October 17, 2023

COUNCIL COMMUNICATIONS:

Council Member Leon invited everyone to the Trunk or Treat event at Anaheim Elementary Online Academy on Ball Road on October 23, 2023 from 6 p.m. to 9 p.m. His office partnered with car clubs, community organizations, and the West Anaheim Police Team. They will be handing out candy, prizes, and the event is free. The weekend prior his office hosted a park clean up at Stoddard Park.

The railings by the baseball field were painted, new mulch and wood chips were laid out in the playground, and trash was picked up. He also planted a new tree along with Stoddard Elementary School students. He thanked everyone who helped organize the event. He had the opportunity to tour the TGR Learning Lab (formerly known as Tiger Woods Learning Center) located in District 2. It is a safe space with numerous educational opportunities for students. Council Member Leon shared that he was a guest speaker at Madison Elementary School for their College and Career Day event. He visited two classrooms to speak about his role as a Council Member and the importance of education and following dreams. He highlighted Cortina’s Italian Market as the October 2023 Restaurant of the Month. Cortina’s is celebrating 60 years of serving the West Anaheim community. On behalf of District 2, he sent condolences to former Council Member Jordan Brandman’s family and friends. He requested that the meeting adjourn in memory of former Council Member Jordan Brandman.

Council Member Kurtz thanked Code Enforcement and Public Works for being responsive to complaints from the District 4 community regarding parking and trash. She shared photographs of her visit to Olive Street Elementary School for Career Day. She highlighted the student's excitement over District 4’s Ponderosa Skatepark and Boysen Park. She shared the students thanked the Community Services Department for the improvements to Boysen Park and expressed their desire to continue to have the airplane remain a playground fixture. The school Principal is Lynn Meagher and the Vice Principal is Cristina Garcia. She noted that 409 of the 477 students at Olive Street Elementary School come from low income families. There are 72 homeless students, six foster students, and 84 chronically absent students. To accommodate working parents, the school opens at 6:30 a.m. and closes at 6:00 p.m. Council Member Kurtz highlighted and shared photographs of Joe’s Italian Ice. In 2015, Joe’s Italian Ice moved to Anaheim from Garden Grove. The owners pride themselves in using the freshest ingredients. Their dog Joey inspired the pup cup and any dog visiting Joe’s Italian Ice receive a free pup cup. She encouraged everyone to visit Joe’s Italian Ice.

Mayor Pro Tem Rubalcava thanked everyone who addressed the City Council during Public Comments. In memory of Art Beas, she displayed photographs and noted that Mr. Beas had a lifelong passion for volunteering. He dedicated endless hours to making Anaheim’s history a priority.

He volunteered for the Anaheim Historical Society, Anaheim’s Fall Festival and Halloween Parade, and Anaheim Beautiful. He also served as Santa Claus for downtown holiday festivities. He was a loving, caring, and dedicated husband, father, grandfather, and great-grandfather. He will be remembered for the joy, warmth, and laughter he brought so many in the City of Anaheim. Her thoughts are with his wife Kandee who is an appointed member of Anaheim’s Senior Citizen Commission and requested the meeting adjourn in memory of Art Beas. She acknowledged the passing of former Council Member Jordan Brandman and stated she briefly served on the Central Committee with him. Former Council Member Brandman loved the City of Anaheim and was passionate about public service. She is grateful for all the work he did to improve the quality of local public schools while serving as a Board Member for the Anaheim Union High School District. He strengthened Anaheim’s economy and advanced LGBTQ+ equality here in Anaheim and was the first person who helped fly the pride flag in Anaheim. Mayor Pro Tem Rubalcava thanked the Anaheim Police Association for placing flowers in the City Hall Lobby. She recognized Kevin and Jody who decorated the Halloween Tree on Center Street Promenade which also serves as a Christmas Tree in December. Mayor Pro Tem Rubalcava thanked all the City Departments and residents who attended the “Walk on Balsam” event to discuss parking and challenges in the neighborhood and was happy to City Council Minutes of October 17, 2023

report that a resolution rescinding the no parking restriction will be brought forward at the next City Council meeting for approval. She welcomed new community Police Sergeant Rob Lopez who was at the event and listened to the concerns of residents in attendance. In recognition of Hispanic Heritage Month, she recognized the National Hispanic Business Women Association for advocating for Hispanic women owned businesses. She noted she was the recipient of a recognition from the California League of United Latin American Citizens (LULAC), which is an important organization for the Hispanic community particularly in Anaheim. She mentioned Mexican Americans previously were unable to swim in the public pool except for one day a week and had separate schools. Significant progress has been made due to organizations like LULAC. The mission of the organization is to advance the economic condition, educational attainment, political influence, health, and civil rights of the Latino community. She highlighted and invited everyone to visit Sweetheart’s Dessert Lounge for their delicious desserts. It is a minority owned female business located on Anaheim Boulevard, in the ARCO shopping center. She thanked Starbucks (in the Vons Shopping Center, across the street from City Hall) for hosting the “Coffee with a Council Member” event. Approximately 30 residents attended, she thanked Dukku Lee, Public Utilities General Manager, and Rudy Emami, Director of Public Works, for attending the event and answering questions related to residents’ concerns. She attended the Fire Safety Fair in District 1 and appreciated the tip of using baking soda to put out a cooking oil fire. She attended the Trunk-or-Treat event at Zion Lutheran Church and recognized Pastor Tim for encouraging healthy, fun, and safe opportunities for people in the surrounding areas. Mayor Pro Tem Rubalcava thanked Director of Public Works, Rudy Emami for providing an overview of the Community Workforce Agreement process and noted that the City of Anaheim is going above and beyond what is required.

Council Member Meeks thanked Anaheim Fire and Rescue for the lovely pink t-shirts for Breast Cancer Awareness Month. She stated that it is important to be aware and to speak about breast cancer. She lost her grandmother to breast cancer 50 years ago due to lack of research and public awareness. She shared a personal anecdote about her mother’s experience and stated breast cancer is curable and encouraged everyone to make sure to get tested and treated.

Council Member Diaz announced that the Beach Boulevard Utility Undergrounding efforts started this week from Ball Road to Stanton Avenue. He stated the project is a $25 million investment in District

1. He invited everyone to a pumpkin painting event on October 18, 2023 at the West Anaheim Youth Center from 4:00 p.m. to 6:00 p.m. Sergeant Paqua along with other Police Officers will be assisting and participating in the event. He highlighted and shared photographs of Elhaty Mediterranean Grill at 221 S. Magnolia Avenue D. He shared that the owners are Egyptian immigrants who offer good prices, good service, and great food.

Council Member Faessel thanked the Council Members who recognized former Council Member Jordan Brandman. He served with him on the Public Utilities Board for a short period as well as the Anaheim City Council for a couple of years. He thanked Mayor Pro Tem Rubalcava for recognizing the passing of Art Baes. He stated Mr. Baes was a great guy. Council Member Faessel also requested adjourning the City Council meeting in memory of former City of Anaheim Librarian, Lisa Weber. He represented the City in the Association of California Cities Orange County tour of CalOptima’s new health facility in Garden Grove. Council Member Faessel attended the Peter Marshall Park KABOOM! Design Day and shared there were approximately 200 children there. The build day is scheduled for Saturday, December 9, 2023. He thanked the Anaheim Ducks organization for partnering with the City and thanked the players who attended the event. Council Member Faessel welcomed the 17th annual Health Fair at the Anaheim Convention Center. He thanked everyone who attended the Higher Ground Fundraiser hosted by Joe Baldo, which benefits and provides programs and services to families at Lincoln Park. He shared that he had an interesting opportunity to tour a research vessel that is owned by the Orange County Sanitation District (OCSD). The vessel is used City Council Minutes of October 17, 2023

almost every day to monitor the 5-mile-long ocean outfall pipeline. He joined Council colleagues at the commencement of the Spanish entrepreneur program (Emprendedor@s Program). The program teaches Latino residents how to start a successful business. He shared that Reborn Cabinets, Inc., hosted National Manufacturing Day on October 6, 2023. Approximately 300 high school students toured their facility. Council Member Faessel thanked Ben Coleman for inviting him to tour Lab57, another custom cabinetry company in Anaheim. He attended the Chance Theater Gala Fundraiser, Indigenous Peoples’ Day Celebration, Salvation Army Center of Hope ribbon cutting ceremony, and the 2023 World Korean Business Convention.

Mayor Aitken displayed photographs and mentioned that she was able to swear in Dimetria Jackson and Tanya Bilezikijan to the Orange County Fair Board and congratulated them on their accomplishment. She participated in the Walk to School Day event at Jefferson Elementary School.

The event encourages safety and promotes physical activity. She thanked all the Anaheim Police Officers who participated. Mayor Aitken attended the Salvation Army Center of Hope ribbon cutting ceremony. The Center of Hope changes people’s lives by providing supportive housing, services, employment, and access to health care. The Center of Hope helps individuals get back on that path to independence. She had the opportunity to attend the reopening of the Loretta Sanchez Multi-Media room at Chapman University. Former Congresswoman Loretta Sanchez is a Chapman University alumnus and a trailblazing Latina leader in Orange County. She served two decades in the U.S.

House of Representatives and has donated her Congressional papers to Chapman University so students may view everything she worked on. Mayor Aitken attended the Catarina’s Club Annual Gala hosted by Chef Bruno Serato. He has served millions of meals to children from low-income families through the Boys and Girls Club of America in Orange and Los Angeles Counties. Mayor Aitken’s office partnered with Northgate Market at 720 West La Palma Avenue to host a Trunk-or- Treat event from 1:30 p.m. to 3:30 p.m. There will be City resources available as well as health screenings, face painting, and a free pumpkin giveaway.

CITY MANAGER’S UPDATE:

City Manager Vanderpool noted that in September 2023, Finamore Place Apartment Community received a Homes Within Reach Award from Southern California Association of Non-Profit Housing (SCANPH) under the category: Beyond LA Development of the Year. This award recognizes projects that SCANPH members build outside of the urbanized area of Los Angeles County. These projects are directly outside of LA County but still within the SCANPH region of Riverside, San Bernardino, Ventura and Orange Counties. The Homes Within Reach Awards reflects the organization’s efforts to recognize and honor excellence in the affordable housing industry. Selections are submitted by SCANPH members and chosen by an independent and impartial jury of professionals from throughout SCANPH’s regional footprint.

City Manager Vanderpool displayed a photograph and shared that over the past couple of weeks, the Economic Development Department has participated in several business development events including the World Korean Business Conference held at the Anaheim Convention Center. The Department joined the Small Business Development Center Network and several other local California agencies in efforts to attract investment from South Korea to Anaheim and the region.

Economic Development Department staff participated in several events focused on bringing BioScience businesses from Korea to the Anaheim Canyon and other industrial areas in the City.

City Council Minutes of October 17, 2023

CONSENT CALENDAR: At 7:18 p.m., the Consent Calendar was considered with Council Member Diaz pulling Item Nos. 12 and 18, Council Member Leon pulling Item No. 7, and Council Member Kurtz pulling Item No. 5 for separate consideration.

Pursuant to Government Code Section 54953(c)(3), City Clerk Theresa Bass announced the summary and benefits related to Item No. 4. Pursuant to the Personnel Rules and Policies for Non- Represented City Employees, Section 4.7, the action implements the salaries for City Manager in the amount of $337,255, for the City Attorney in the amount of $322,058, and for the City Clerk in the amount of $203,857, each to be effective July 7, 2023.

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

ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

1. Receive and file minutes of the Public Utilities Board meeting of August 23, 2023.

2. Receive and file the Fiscal Year 2022-23 Consolidated Annual Performance Evaluation Report (CAPER).

3. Ratify the recognition recognizing the legacy of lifelong Anaheim resident and community advocate Josie Montoya; and approve recognitions recognizing Anaheim Tech Scholars, Rio Vista Elementary School staff member Valerie Hubbard for her recent lifesaving actions, October 8-14, 2023 as Code Enforcement Officer Appreciation Week, and Anaheim Public Utilities employees for going above and beyond by assisting a resident restore water service to their building.

4. Approve the merits and other recommended adjustments to compensation for the City Council appointees including City Manager, City Attorney, and City Clerk pursuant to Government Code Section 54953(c)(3) and the Personnel Rules and Policies for Non-Represented City Employees, Section 4.7 and direct the Human Resources Director to implement the new salary for the City Manager in the amount of $337,255, for the City Attorney in the amount of $322,058, and for the City Clerk in the amount of $203,857, each to be effective July 7, 2023.

6. Approve Contract Change Order No. 1 with Gentry General Engineering, Inc., in the amount of $56,695.70, for the Alley Sanitary Sewer Improvement Project 2018 in the alley north of Broadway from Ohio Street to Walnut Street and at Walnut Street from the alley north of Broadway to Broadway; and authorize the Director of Public Works to execute the Contract Change Order and any related documents.

8. Waive Council Policy 4.1, and approve the agreement with Kim Turner LLC, in an amount not to exceed $57,000, for training services; and authorize the Chief of Police, or designee, to execute the agreement and any future amendments with non-substantive changes to the agreement, as determined by the Office of the City Attorney.

9. Approve a Standard Inter-Agency Instructional Services Agreement with Rancho Santiago Community College District, in an amount not to exceed $234,500 per fiscal year, for reimbursement for fire service training provided by Anaheim Fire & Rescue personnel for a five year term; and authorize the Fire Chief, or designee, to execute the agreement and any future City Council Minutes of October 17, 2023

amendments with non-substantive changes to the agreement, as determined by the Office of the City Attorney.

10. Approve Professional Services Agreements with eight consultants, each in an amount not to exceed $400,000 per Work Order Package and with a total contract amount not to exceed $1,000,000 per contract year, for on-call land surveying services to support the Construction Services Division of the Public Works Department for a two year term to expire on September 26, 2025, with the City’s option to extend the agreements for two additional two-year terms through 2029; authorize the Director of Public Works to execute the agreements and 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 agreements, as long as such changes are determined to be de minimis by the City Attorney’s Office (KDM Meridian, Johnson-Frank & Associates, Inc., D. Woolley & Associates, Michael Baker International, Inc., Huitt-Zollars, Inc., Fuscoe Engineering, Inc., Towill, Inc. and Guida Surveying, Inc.).

11. Ratify an agreement with Kimley-Horn and Associates, in an amount not to exceed $124,873.43, for professional consulting services for the design of the Protected Left-Turn Phasing Traffic Signal Improvements Project as executed by the Director of Public Works, and authorize the Director of Public Works, or designee, to take the necessary actions to implement and administer the agreement.

13. Approve the Cooperative Agreement and the Right-of-Way Acquisition Agreement with the Foothill/Eastern Transportation Corridor Agency (TCA) for the State Route 241/91 Express Connector Project for the use of and for the effects of a temporary detour on Santa Ana Canyon Road and acquiring a permanent subsurface footing easement; authorize the Director of Public Works to execute the agreements; approve a Permanent Subsurface Footing Easement (Easement) and authorize the Mayor to execute the Easement and direct the City Clerk to release the Easement to TCA; and increase the Department of Public Works revenue and expenditure budget by $82,881 in the appropriate fiscal year.

14. RESOLUTION NO. 2023-087 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a public utility easement located at 805 East Sycamore Street pursuant to California Streets and Highway Code Section 8330, et seq.- Summary Vacation (ABA2023-00422).

15. RESOLUTION NO. 2023-088 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a public utility easement located at 1730 South Clementine Street pursuant to California Streets and Highway Code Section 8330, et seq.- Summary Vacation. (ABA2023-00423).

16. RESOLUTION NO. 2023-089 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing the terms and conditions of employment for employees represented by the International Brotherhood of Electrical Workers, Local 47 - Anaheim Part-Time Customer Service Employees Unit [effective January 1, 2023 through December 31, 2025].

17. RESOLUTION NO. 2023-090 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM for the purpose of creating a non-represented classification, assigning the rate of compensation, amending the Personnel Rules and Policies covering Non-Represented Full-Time and Part-Time Employees to update Appendix B, and repealing Resolution No. 2023- 084 [Assistant City Attorney – Confidential].

City Council Minutes of October 17, 2023

19. RESOLUTION NO. 2023-092 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ratifying the submission of grant applications and the acceptance of grants on behalf of the City of Anaheim for the Selective Traffic Enforcement Program (STEP) Grant, Child Passenger Safety Program Grant, and Motorcyclist Safety Education and Training Program Grant, and authorizing the Chief of Police, or his designee, to execute all required grant documents and amending the budget accordingly [the Office of Traffic Safety allocated $375,000 for STEP; $74,250 for Child Passenger Safety Program; and $60,000 for Motorcyclist Safety Education and Training Program].

20. ORDINANCE NO. 6561 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM renewing, with modifications, Ordinance No. 6528 approving the Anaheim Police Department’s Military Equipment Use Policy pursuant to California Government Code Section 7071 [Policy 705, previously numbered Policy 706; Public Hearing scheduled for October 24, 2023].

21. ORDINANCE NO. 6559 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM granting a franchise to SFPP, L.P., to maintain and operate pipelines for the transportation of hydrocarbon substances in the City of Anaheim [introduced at Council meeting of September 26, 2023, Public Hearing Item No. 29].

22. ORDINANCE NO. 6560 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Sections 4.73.010, 4.73.080, 4.73.100,

4.73.160 and 4.73.190 of Chapter 4.73 of Title 4 of the Anaheim Municipal Code relating to nonexclusive Taxicab Franchises [introduced at Council meeting of September 26, 2023, Public Hearing Item No. 30].

23. Approve minutes of the City Council meeting of June 13, 2023.

BUSINESS CALENDAR:

5. Award the contract to the lowest responsible bidder, All American Asphalt, in the amount of $1,349,349, for the Knott Avenue Rehabilitation Project from north of Ball Road to south of Orange 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; and authorize the Director of Finance to execute the Escrow Agreement pertaining to contract retentions.

DISCUSSION: Council Member Kurtz requested clarification on what liquidated damages were.

Director of Public Works Emami responded that liquidated damages are a cost that is put into the specifications that the contractor would be responsible for reimbursing the City for each day that they are late in delivering the project.

Council Member Kurtz thanked staff for their diligence in obtaining over a million dollars in grants for this project, to bring the cost to the City to approximately $300,000.

MOTION: Council Member Kurtz moved to award the contract to the lowest responsible bidder, All American Asphalt, in the amount of $1,349,349, for the Knott Avenue Rehabilitation Project from north of Ball Road to south of Orange 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 City Council Minutes of October 17, 2023

contract; and authorize the Director of Finance to execute the Escrow Agreement pertaining to contract retentions, seconded by Mayor Pro Tem Rubalcava. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

7. Approve the termination-for-convenience of the agreement with Bonadiman Water, Inc. (BWI) for the construction of the Citywide Sanitary Sewer Improvement Project - Brookhurst north of Lincoln Avenue and authorize the Director of Public Works to issue a written notice of termination and begin procedures to determine a final payment to BWI.

Director of Public Works Rudy Emami provided a brief summary of the termination-for-convenience of the agreement with Bonadiman Water, Inc. (BWI) and to begin procedures to terminate to determine a final payment. He reported the work anticipated in this agreement is for sewer improvements in Brookhurst Street north of Lincoln Avenue. The project plans were developed by the City’s design consultant and research was provided by utility companies during the design phase. The project was issued a notice to proceed on July 18, 2023, but soon after ran into field issues with an unidentified concrete encasement in an AT&T facility not shown on the plans. The City sought to work cooperatively, and swiftly to find a solution to continue constructing the sewer line without incurring large costs, using internal resources to identify the encasement and alternative alignments. BWI was also directed to perform additional excavations to verify underground utilities and found an AT&T 16- inch steel conduit in a different location from the information AT&T provided. City staff worked with the consultants to expedite a sewer alignment redesign to avoid conflict with AT&T and provided revised plans to BWI on September 13th. BWI submitted a proposal for the new sewer alignment on September 14th, with a cost proposal that equates to a 42% cost increase over the original contract awarded by the City Council. The contract costs would change from the original $487,000 to $695,000. City staff initiated dialogue with AT&T to allow them to determine the disposition of their facility and the effects of the City’s sewer alignment. AT&T has options including the relocation of their facility or leaving it in place. If AT&T relocates their facility at their sole costs, the City’s original sewer alignment can be utilized. However, if AT&T prefers to leave their facility in place, the City will request AT&T to participate in the fair share costs of the City’s increased construction costs. The termination of the agreement with BWI will allow the time necessary for AT&T and the City to resolve the utility costs and to seek potential cost-saving solutions for both agencies. The City has provided AT&T with a notice to relocate their facility. If the termination-for-convenience of the project agreement is approved, a notice of termination will be issued, the City will review the cost and expenses reasonably incurred by BWI and develop a final payment proposal. The balance of the project will be rebid competitively and the balance of the funds will be redirected towards the lowest responsible bidder awarded by the City Council. Area residents and businesses will be notified of the project's termination and the anticipated recommencement of the work.

DISCUSSION: Council Member Leon inquired as to the revised timeline for the project. Director Emami responded it was dependent on AT&T’s redesign of their lines, and estimated it would probably be within the next twelve months. In response to Council Member Leon, Director Emami reported the City was not aware of the line during the design process, or else, the design could have included the line or notified AT&T sooner for a solution. Director Emami also confirmed that if the next round of bids were not lower, then the City could potentially participate in a cost-sharing agreement with AT&T.

Council Member Kurtz inquired if the City could recover costs from AT&T as they did not provide the original information concerning their facility. Director Emami responded that cost recovery was part of the current discussions with AT&T.

City Council Minutes of October 17, 2023

MOTION: Council Member Leon moved to approve the termination-for-convenience of the agreement with Bonadiman Water, Inc. (BWI) for the construction of the Citywide Sanitary Sewer Improvement Project - Brookhurst north of Lincoln Avenue and authorize the Director of Public Works to issue a written notice of termination and begin procedures to determine a final payment to BWI, seconded by Mayor Pro Tem Rubalcava. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

12. Approve Cooperative Agreement No. C-3-2751 with the Orange County Transportation Authority for the State Route 91 Improvement Project from State Route 57 to State Route 55 for the City to provide staff resources for coordination and support to complete the final design and construction phase through December 31, 2032; authorize the Director of Public Works to execute the agreement; and increase the Department of Public Works revenue and expenditure budget by $245,000 in the appropriate fiscal year.

DISCUSSION: Council Member Diaz thanked the Public Works Department for their input and expertise in the design of the project, which will significantly mitigate impacts on residents during the construction.

MOTION: Council Member Diaz moved to approve Cooperative Agreement No. C-3-2751 with the Orange County Transportation Authority for the State Route 91 Improvement Project from State Route 57 to State Route 55 for the City to provide staff resources for coordination and support to complete the final design and construction phase through December 31, 2032; authorize the Director of Public Works to execute the agreement; and increase the Department of Public Works revenue and expenditure budget by $245,000 in the appropriate fiscal year, seconded by Council Member Kurtz. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

18. RESOLUTION NO. 2023-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Community Services or designee (“Director”) to accept all grants from KABOOM! on behalf of the City of Anaheim for the installation and maintenance of playground equipment at Peter Marshall Park, authorizing the Director to execute all required grant documents and amending the budget accordingly [City contribution in the amount of $150,000; plus authorization of additional funding not to exceed 20% of the contribution amount].

Approve a Community Partner Agreement with KABOOM! and authorize the Community Services Director, or designee, to execute the agreement and act as the agent of the City on all matters concerning the grant programs and accept future stipends and funds received from KABOOM! for maintenance of the playground equipment at Peter Marshall Park.

Director of Community Services Sjany Larson-Cash reported the item is a community partner playground agreement with KABOOM! for the installation of new playground equipment at Peter Marshall Park. KABOOM! is a nonprofit organization that facilitates projects where community partners come together to fund and provide labor and materials to install new playground equipment in parks. The Peter Marshall Park playground is 22 years old and is in need of replacement. The two play areas in the park total over 9,000 square feet and both will receive new playground equipment on December 9th. A funding partner, the Anaheim Ducks, will pay a portion of the cost of the materials for the two playgrounds. The City is responsible for a contribution of $150,000 to support the design and installation of the play area. A Design Day was held at Peter Marshall Park last month where City Council Minutes of October 17, 2023

youth and adults provided input on the type of playground equipment they would like to see. Director Larson-Cash reported the project will be the City’s 16th KABOOM! playground since their partnership began in 2011.

DISCUSSION: In response to Council Member Diaz, Director Larson-Cash reported the actual build day is scheduled for Saturday, December 9th. The City is accepting volunteers who want to participate and help build the entire playground. She highlighted the playground design ideas come from community input from children gathered at the Design Day.

In response to Mayor Aitken, Director Larson-Cash confirmed volunteers will be placed in an appropriate skill category and all are welcome to participate.

Council Member Meeks commented on the positive influence of the KABOOM! projects have on the community. She highlighted her participation in a Build Day.

Mayor Pro Tem Rubalcava commented positively on the opportunity to involve volunteers in the project’s design and build.

MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2023-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Community Services or designee (“Director”) to accept all grants from KABOOM! on behalf of the City of Anaheim for the installation and maintenance of playground equipment at Peter Marshall Park, authorizing the Director to execute all required grant documents and amending the budget accordingly [City contribution in the amount of $150,000; plus authorization of additional funding not to exceed 20% of the contribution amount] and approve a Community Partner Agreement with KABOOM! and authorize the Community Services Director, or designee, to execute the agreement and act as the agent of the City on all matters concerning the grant programs and accept future stipends and funds received from KABOOM! for maintenance of the playground equipment at Peter Marshall Park, seconded by Council Member Leon.

ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

24. Receive a presentation on the Community Services Department’s Capital Improvement Projects [Informational Item].

Director Larson-Cash introduced Parks Manager JJ Jimenez and Principal Project Planner Ana Straabe. Park Manager Jimenez noted over the last year, several projects have been completed that enhance parks and increase recreational opportunities for residents. The City received community input that pickleball courts were desired in Anaheim. Staff identified an unused area at Peralta Park and converted that space in February into a now very popular pickleball court. Thanks to CDBG funding at Citrus Park, the City was able to replace an almost 30-year-old playground with a brand new one that features interactive and imaginative play equipment and climbing areas for older children. While upgrading the playground, staff also took the opportunity to refresh the rest of the park with a fresh coat of paint, new furniture, LED lights and new landscaping. Ross Park received a new playground thanks to CDBG funding. The old playground was more than 20 years old and the new play area features tall towers and slides that were highly requested by youth as well as musical instruments and play pieces. The red, white, and blue theme amenities were designed to honor the park's namesake Betsy Ross. Staff took the opportunity to refresh the rest of the park as well, by adding new plants, new furniture, and newly painted amenities with a mural honoring Betsy Ross. At the request of the community, ten (10) new fitness stations and sidewalk improvements have been completed at Maxwell Park. The new fitness equipment is along the walkway just south of Haskett City Council Minutes of October 17, 2023

Library. Funding for this project came from the CDBG grant. Aloe Promenade is the newest park, a developer-built amenity that offers shaded seating areas, a bocce ball court, turf areas, a water feature, and landscaping.

Parks Manager Jimenez continued the presentation with slides depicting capital projects that are currently under construction and scheduled to be completed in this year. At Brookhurst Park, construction is underway for a new Teen Center, which will connect to the existing community center.

The addition will create a dedicated space for youth activities. The Teen Center will complement the building's exterior and interior architecture and include a restroom upgrade and upgraded landscaping. The project is funded with CDBG funds and parking in-lieu fees. The Teen Center is scheduled to open in the winter. Park improvements complement the recently installed children's play area. The renovations include a new skate park, basketball court, a youth challenge course, walking trails and picnic areas. Funding for the Center Greens project comes from a Land and Water Conservation Fund totaling $960,000 grant, a Rivers and Mountains Conservancy grant of $300,000, and park in-lieu fees. Construction continues to move forward with an anticipated completion of spring next year. A $500,000 grant from the Natural Resource Agency and park in-lieu fees will be used to fund the installation of interpretive panels and make amphitheater renovations to the Oak Canyon Nature Center. The project will also enhance accessibility, improved trails, and the installation of a wooden deck. Construction will begin this month and is anticipated to be completely early next year.

He noted staff continues to focus efforts on reinvesting in the City’s park system. Play areas will be replaced at Paul Revere, Canyon Rim, and Riverdale Parks, thanks to General Fund allocations approved during this year’s budget cycle. Parks Manager Jimenez highlighted the approval of the agreement for improvements at Peter Marshall Park. Recent General Fund allocations will help replace much needed lighting at Pearson Park. Neighborhood Improvement funds will be used to upgrade the grass area at Mira Loma Park and Family Research Center. In addition to reinvesting in existing parks, there are plans to add new facilities. He reported a three-acre parcel was recently purchased from Orange County for a new park adjacent to Angel Stadium that will be part of the future OC Riverwalk. In addition, Little Pine Park is a small half-acre pocket park that will be developed in the center area of the city with funding from a Proposition 68 grant. Last, City staff is working with the County of Orange to purchase land on the west area by Yorba Regional Park for the purpose of developing additional parkland. City staff has developed master plans to completely renovate La Palma and Boysen Parks which will guide play for years to come. The OC Riverwalk project will transform the Santa Ana River Trail between Ball Road and Orangewood Avenue. When completed, OC Riverwalk will improve connectivity and recreational opportunities provide inviting and artful gathering spaces and allow residents to connect with nature and the river. All three of these projects represent ambitious community desires that will continue to redefine Anaheim as a place with great community parks.

DISCUSSION: Council Member Kurtz thanked staff for their efforts and for asking for the community’s input concerning design. She requested that staff move forward with the improvements at Boysen Park.

Mayor Pro Tem Rubalcava inquired whether the improvements at Pearson Park would include lighting for the amphitheater for safety purposes. Director Larson-Cash reported the lighting is scheduled for replacement, however, the project will be divided to replace the electrical throughout the park. Mayor Pro Tem Rubalcava inquired as to the contamination issues at Boysen Park. Parks Manager Jimenez reported that remediation activities are almost complete, with finishing touches and rebuilding the ball fields underway and with the anticipation that the Little Leagues can utilize them in their next kickoff in February. Mayor Pro Tem Rubalcava inquired whether there is a plan for City Council Minutes of October 17, 2023

relocating storage facilities that will be impacted due to park expansions particularly the Fall Festival to maintain the tradition in the City. Director Larson-Cash reported there are plans to expand the park into that space referred to as the Tree Yard where the Fall Festival is currently storing its floats. She added staff has had meetings with the organization.

Council Member Faessel requested clarification as to park in-lieu fees and how they function in the City. Parks Manager Jimenez explained park in-lieu fees are a type of development impact fee that are assessed for new developments and for parking levies. City staff partners with the developer, depending on the specifics of a particular development project, to identify a place within their development area to create and develop a park. As part of that development process, and that agreement, the developer receives credit for the land value only. But as part of the planning and language in the specific plan, the developer is required to build the park and only get credit for the land.

Council Member Meeks inquired as to the timeline for improvements at Riverdale Park, noting the playground is the oldest in the City. Parks Manager Jimenez reported staff are currently working with the design team to meet with the community to gather input and to present them with various options.

Subsequent to that staff is identifying the most efficient vehicle to implement the playground replacement, with the goal and commitment to complete it by the end of the fiscal year.

Council Member Leon thanked staff for all of their hard work and inquired if District Two parks could also be addressed.

Council Member Diaz requested improvements at the Senior Center and additional pickleball courts throughout the City, given that pickleball is the fastest-growing sport. Mayor Aitken additionally requested information on the history of pickleball court installation in the City. Director Larson-Cash responded that a group of avid pickleball-playing residents began attending the Parks and Recreation Commission meetings. Upon doing an inventory of parks in East Anaheim, staff realized a space at Peralta Park had an existing concrete slab and a pickleball court was constructed over it. There are no immediate plans for additional courts, however, there is constant evaluation of other uses at other parks, as there is a large demand for pickleball facilities in East Anaheim.

Mayor Aitken inquired as to the timeline for Little Pine Park. Parks Manager Jimenez responded that the project is currently under design, with no finalized cost at this time. A Proposition 68 grant for $750,000 which should be sufficient to carry out the project. In terms of timeline, staff anticipates going out to bid in the next few months with the potential to complete construction in the summer. The Proposition 68 grant is a competitive grant program administered by the State’s Office of Grants and Administration.

In response to Mayor Aitken, Parks Manager Jimenez noted during the design process, shade elements are considered for incorporation. As the Department builds new spaces, new trees are planted for shade.

Informational item with no formal action taken by Council.

25. Receive an overview of the City of Anaheim’s Internal Auditing Program [Informational Item].

Audit Manager Joe Romines reported at the August 29, 2023 meeting, Council Member Leon requested the City Manager provide information on the City’s internal auditing program. The Audit Division is part of the City Administration Department and serves as the City’s independent and objective appraisal activity for the review and improvement of City operations. Organizationally, the City Council Minutes of October 17, 2023

Audit Division reports directly to the City Manager. Anaheim is the only city in Orange County to have an internal audit function and one of only a few in Southern California. Internal Audit Services are made available to all City Departments with audits being performed for requested risk assessments or on a regular cycle. Audits are commonly requested by Departments with efforts made to fit these requests depending on urgency and audit staff availability. The Audit Division operates with the underlying goal of contributing to City resources by identifying monetary findings through contract compliance and tax revenue audits. The Audit Division has an authorized staffing level of five Auditors, one Audit Manager, and one support staff. Currently, the Division has two vacant Senior Management Auditor positions with another Auditor retirement anticipated in December.

Audit Manager Romines continued by providing an overview of the contract compliance work. Audits are conducted regularly with the purpose of ensuring City vendors or contractors are adhering to contract terms and fulfilling their contractual obligations. These audits often include the objectives of ensuring proper checks and balances are in place confirming all required payments have been received, key deliverables provided, and expenditures billed to the City are proper. He noted contract compliance audits are commonly initiated through requests from Department Heads either as a basis to independently confirm contractor compliance and/or to address a concern regarding the contract.

Transient Occupancy Tax (TOT) audits are conducted on the records of each hotel, motel, and timeshare in Anaheim to ensure all taxes are collected, paid, and reported by each hotel. Auditors take a close look at the books and records of each hotel and test for compliance with the Municipal Code. The Audit Division performs approximately 50 of these audits each year, on a three-year cycle basis. All such entities undergo an audit. Beginning in the second quarter of Fiscal Year 2023/24, the Audit Division will commence the first audit of an online travel company. The City has a number of online travel companies that recently began reporting and remitting to the City under Measure J.

Some companies have expressed an interest in undergoing an audit sooner to ensure they have created a solid foundation for the collection and reporting of TOT to the City. Another type of audit performed includes operational and performance audits. These audits evaluate the operations of business units to assess business activities in relation to objective criteria such as administrative regulations, strategic plans, and industry best practices. Although these reviews are less frequent, they typically require more staff time and resources to complete. They also perform joint utility audits on behalf of Anaheim Public Utilities and regularly participate in audits of various power projects that are jointly owned. The Audit Division provides assistance to Departments in need of data analysis, sales and tax research, and other specialized projects that can benefit from an independent and objective review. In addition, the Audit Division performs ongoing monitoring for missing sales tax receipts and unlicensed businesses. Last, the Division oversees the City’s fraud hotline and the complaints received. Information on some completed audits during Fiscal Year 2022/23 was presented, including a total of 80 project audits, with the majority of those audits being Anaheim hotels and motels and their compliance with TOT codes. Audits in Fiscal Year 2022/23 resulted in identifying over 1 million in additional taxes, penalties, and interest due from the audited hotels. The Audit Division also completed three contract compliance audits and three utility projects. In the current fiscal year, they have completed 11 TOT follow-up audits, where they return after two years after a completed audit and look at how the recommendations have been implemented, procedures established, and internal controls improved. The Audit Division is in various stages of three contract compliance audits currently.

DISCUSSION: Council Member Leon requested clarification concerning the process of conducting an audit and whether the process is different if auditing an outside vendor or consultant.

Audit Manager Romines responded for an internal audit for a City operation, staff meets with the applicable Department staff to understand the operation, the risks that are associated with that function, gain an understanding of how they do business, and do they have proper protocols in place City Council Minutes of October 17, 2023

to minimize the opportunity for inappropriate or ineffective activities. They design an audit program intended to test accurately, whether it is financial information or operational and procedural information. The assigned Auditor performs the tests needed to complete that audit process, and as that concludes, staff comes together to process the findings and recommendations. Those are the exceptions that were discovered during an audit, then discuss with management and create solutions to items discovered. An audit report is drafted and issued and management has the opportunity to provide a response and commitment towards implementing any stated recommendations. Ultimately a final audit report is issued. With respect to audits for external entities, it is very much the same process, but staff also looks at how the City manages the contractor, what kind of controls are in place to ensure that all the monies are coming in, whether the expenses are reasonable, and then designs an audit program around that.

Council Member Leon inquired whether only Department Heads can request to audit a contract or not and whether the audits conducted have increased in number as compared to previous years.

Audit Manager Romines reported around every three years, the Division conducts a risk assessment, meets with Department Heads and key managers, and tries to understand the environment and their concerns. They also select contracts for audit based on items that surface at City Council meetings.

Audit Manager Romines also responded that prior to the years 2022 and 2023, the Division was down two auditors which impacted the number of studies that could be completed. He also noted the Division reports directly to the City Manager and does complete a large number of audits, even as compared to larger agencies with more staff. Audit Manager Romines stated that he has not been asked to stop the conduct of an audit midway through the process and that they are addressing any personnel vacancies and retirements through the recruitment process. Staff is focused on the online travel company audits, which are picking up, and they are properly poised to complete their assigned workloads as approved through the budget process. City Manager Vanderpool added there has been significant interest internally concerning the classification and compensation study and ensuring that recruited staff has the proper qualifications.

Mayor Pro Tem Rubalcava stated she understands the challenge to recruit qualified audit personnel and requested that qualifications are considered in the upcoming classification and compensation study. She welcomed the Division to forward any policy recommendations for the City Council consideration, especially concerning Measure J, as she is interested in ensuring there are appropriate safeguards in place for the auditing process.

Mayor Aitken inquired as to how the TOT audit selections are made by City staff.

Audit Manager Romines responded that TOT audits are based on a three-year cycle, and they cover three years or 36 months. The Audit Division reviews the books for that time period and then do a deeper dive, including daily records, exemptions, revenues, and other audit-related items to ensure the entity is in compliance with what is considered rent. He reported on the penalties assessed for underreported amounts, ranging from 10% to 50% with interest rates of as much as 18%, which functions as a good deterrent. The online travel company audits have just recently commenced and are still in the process of evaluating systems and ensuring good progress is made. The TOT audits take about three days to a week, depending on the size of the property. He provided detailed information on timeshares and TOT agreements with the City, including a special agreement that provides the foundation for calculating the use of rewards “points.” Informational item with no formal action taken by Council.

26. Discuss and provide direction to staff regarding the creation of an Ethics Officer.

City Council Minutes of October 17, 2023

City Attorney Robert Fabela reported at the August 29th City Council meeting, City Council approved a priority list of reforms and a calendar of when these items will be brought forward for the City Council discussion and action. He noted it would be helpful for staff to receive direction from the City Council regarding the approach of appointing or contracting with an Ethics Officer, as opposed to creating an Ethics Commission. He detailed the duties of Ethics Officers in other similar entities including campaign contributions, lobbyist registration, and ethics training. He noted the County of Orange’s Ethics Officer is an attorney, however, it is not required for an individual holding the position to be one. He added staff would formulate the duties and responsibilities of an applicable position in Anaheim depending on the overall ethics and transparency reforms being considered by the City Council. The staff report also provides examples of Ethics Commissions from the cities of Oakland, San Diego and Sacramento, each of which has different mechanisms. He reported an Ethics Commission can provide an additional layer of City oversight and be made up of residents for monitoring, administering, and enforcing laws and policies relating to campaign finance reporting, lobbying, government ethics, and conflicts of interest.

DISCUSSION: Council Member Kurtz stated her preference for a City Ethics Officer is to be an attorney reporting to the City Attorney. She recommended appointing an Ethics Officer and following a review period, the individual can provide City Council a recommendation on an Ethics Commission.

Council Member Meeks supports having an Ethics Officer reporting to the City Attorney’s Office with the knowledge, skills, and experience on the subject matter. She recommended appointing an individual with knowledge of relevant laws, ensuring compliance, and remaining nonpartisan on policymaking to the City Council while ensuring accountability.

Council Member Diaz expressed support for an Ethics Officer and Commission to provide appropriate checks and balances concerning the enforcement of City and State laws. He inquired if staff could research contracting with the County Ethics Officer to conduct such work for the City, which may provide an opportunity to align with best practices and reduce costs.

Council Member Leon confirmed with the City Attorney that an Ethics Commission can be created by the City Council by ordinance or via a Charter amendment placed on a ballot. An ordinance could be repealed by a future Council, however, any change to the Charter would have to be placed before the voters. City Attorney Fabela confirmed there are jurisdictions with both an Ethics Officer and an Ethics Commission.

Council Member Leon expressed support for both an Ethics Officer and an Ethics Commission, however, he wanted to ensure there was no duplication of efforts, but that there were appropriate checks and balances, and include other responsibilities to ensure efficiency and effectiveness. He would prefer the City move forward with an Ethics Officer and then place the matter of an Ethics Commission before the voters.

In response to Council Member Leon, City Clerk Bass confirmed the schedule to place the matter before voters in November 2024, the cost of which would have to be added to the estimate for the election in the budget. Council Member Leon stated he has recommendations to pass along to the City Clerk and City Attorney concerning the responsibilities of said position and commission, and stated it is important to establish a process for addressing complaints.

Mayor Aitken inquired as to the proposed structure of addressing complaints via the Ethics Officer or Commission. City Attorney Fabela responded it can be structured in many different ways and there would be due process policies and practices in place. Mayor Aitken stated it was important for the Ethics Officer to have the applicable legal background, and that it should be considered that the City City Council Minutes of October 17, 2023

Council has not reviewed all proposed and potential reforms. An Ethics Commission could also allow the public to participate in the process. City Attorney Fabela stated it is also important for the position or commission, if created, to have familiarity with the laws and regulations already in place by such entities as the Fair Political Practices Commission. Mayor Aitken concurred with exploring the potential of contracting with the County concerning the use of their Ethics Officer.

Council Member Meeks stated her preference for the City to have its own Ethics Officer as a resource to City staff, but also able to assist with other duties and responsibilities for efficiency purposes. She preferred to have the new Ethics Officer advise on whether a commission is needed.

Council Member Faessel commented on the Ethics Officer position at the Metropolitan Water District (MWD) and offered comparisons to that agency and Anaheim, and requested staff take a look at MWD’s Ethics Officer duties and responsibilities. He provided information related to enforcement matters within the MWD and how they are addressed. He stated a preference for an in-house staff person, and not to contract out.

Mayor Pro Tem Rubalcava commented that the City needs an Ethics Officer and her preference for in-house versus contracted staff. She stated the individual could work with both the Offices of the City Clerk and City Attorney. She expressed concern with the duplication of efforts between a City Ethics Commission and the State Fair Political Practice Commission, which is already charged with promulgating and enforcing ethics regulations. She recommended a written contract for the Ethics Officer for retention purposes.

Council Member Diaz supported contracting with the County Ethics Officer due to its established position, fiscal responsibility, and ability to learn from the County before creating a City position.

Council Member Kurtz expressed her preference for in-house versus contracted staff for the Ethics Officer position and not subject to City Council appointment. She would prefer the position to be filled sooner, rather than later. While supporting the idea of checks and balances, she would prefer the Ethics Officer to be in place first and then have further discussions concerning the composition or creation of an Ethics Commission.

City Manager Vanderpool reiterated the City Council’s direction to create a City-directed Ethics Officer position, a full-time employee or contractor, and that they be an attorney. He noted there is no consensus for an Ethics Commission at the time, but potentially room for implementation of one in the future. There was consensus to bring research, including scope of responsibility for the position, back to the City Council for consideration.

Mayor Aitken supported the need for a scope of responsibility for the Ethics Officer position.

Council Member Diaz expressed his support for the Ethics Officer position but requested additional time to consider an Ethics Commission.

In response to Council Member Meeks, City Attorney Fabela confirmed that the Ethics Officer is included in the additional four (4) staff members that were previously approved by the City Council.

Mayor Pro Tem Rubalcava suggested the Ethics Officer does not need to be an attorney, however, requested staff return with a scope of responsibilities and options.

MOTION: Mayor Pro Tem Rubalcava moved to direct staff to create an Ethics Officer position and return to City Council with options for consideration
City Council Minutes of October 17, 2023

DISCUSSION: In response to Council Member Leon, City Attorney Fabela confirmed attorneys are subject to additional ethics provisions. Council Member Leon supported the requirement for the Ethics Officer to be an attorney. He requested consideration to create an Ethics Commission, the structure, and placement on the next election ballot.

Council Member Faessel expressed concern about having the position as a contracted employee.

Council Member Kurtz confirmed the Ethics Officer would not report to the City Council directly.

MOTION: Mayor Pro Tem Rubalcava moved to direct staff to create an Ethics Officer position and return to City Council with options for consideration, seconded by Council Member Leon. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

PUBLIC HEARING:

27. A public hearing to approve and adopt the amended Sewer Impact and Improvement Fees for the East Area of the City of Anaheim.

RESOLUTION NO. 2023-093 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the Sewer Impact and Improvement Fees for the East Area of the City of Anaheim and determining such actions are exempt from the California Environmental Quality Act pursuant to Public Resources Code Section 21080 (b)(8) and Guideline Section 15273 (a).

Director of Public Works Rudy Emami reported the item for consideration is a recommendation to approve and adopt the amended sewer impact and improvement fee for the East area of the City based on the recently adopted East Anaheim Master Plan for Sanitary Sewers. The East Anaheim area is generally east of the State Route 57 freeway area, consisting of approximately 14,550 acres in gross area, and a population of approximately 60,500 people. The area is fully developed and designated as a mix of residential, commercial, and industrial uses. On May 16, 2023, the City Council adopted the Master Plan of Sanitary Sewers, and on August 29, 2023, adopted the financial implementation plan for East Anaheim. Director Emami added the purpose of the actions is to mitigate the deficiency in the sewer system caused by new development and/or by additions and expansions to existing development within the East Anaheim area. The goal is to amend these plans every 10 years. The East Anaheim area impact fee will go into a restricted sewer construction fund and are separate from the user fees. He explained the impact fees are from developers wanting to develop the land rather than from users of the system paid through their utility bills. For the newest adopted master plan, there are few areas with deficiencies that currently exist in the East Anaheim area. The area has less need for improvements due to it being mostly Master Plan compared to the rest of the city. The proposed fees were calculated to address the projected wastewater flows and build-out condition. The City has implemented a single-zone approach for assessing the impact fees, which allows for more flexibility for the use of fees. Compared to the existing sewer impacts the proposed fees are lower for residential projects in general and higher for non-residential parcels.

DISCUSSION: In response to Council Member Meeks, Director Emami explained that the General Plan allows for some ADUs to be factored into the calculation.

City Council Minutes of October 17, 2023

In response to Mayor Aitken, Director Emami confirmed that a small portion of District Five was also included. He added the area is mostly built out but if any new projects come in and request a general plan amendment, they will have to conduct a special sewer analysis and then mitigate any of those additional impacts, which will be the project’s responsibility.

At 9:08 p.m., Mayor Aitken opened the public hearing and public comments. City Clerk Bass reported there were no public comments received electronically.

Marc Herbert inquired about how future developments would be addressed, including two residential projects currently in process.

In response to Mr. Herbert, Director Emami explained for one project existing developments would need to be assessed related to the new projects, which would be analyzed as part of the whole development. He noted the other project is undergoing its environmental analysis which would mitigate sewer impacts.

Mayor Aitken announced the particular matter is not before the City Council at this time and significant discussion would not be appropriate at this time. Marc Herbert explained the purpose is to address any question early in the process and concluded his comments.

At 9:11 p.m., Mayor Aitken closed the public hearing.

MOTION: Council Member Meeks moved to approve RESOLUTION NO. 2023-093 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the Sewer Impact and Improvement Fees for the East Area of the City of Anaheim and determining such actions are exempt from the California Environmental Quality Act pursuant to Public Resources Code Section 21080 (b)(8) and Guideline Section 15273 (a), seconded by Council Member Kurtz. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Rubalcava, Diaz, Leon, Kurtz, Faessel, and Meeks); NOES – 0. Motion carried.

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

Council Member Meeks requested recognition of the Disney VoluntEARS for their hours of service and dedication to the Anaheim community.

City Manager Vanderpool confirmed the item will be presented at a future City Council meeting.

Mayor Pro Tem Rubalcava requested an update regarding the Housing Ad Hoc Committee. She also requested information regarding a City of Anaheim Housing Trust Fund for a First Time Homebuyer Program or Gap Financing.

Mayor Aitken requested an agenda item to discuss turning some of the vacant lots throughout the City into temporary community gardens as beautification measures prior to the funding and approval of affordable housing projects.

ADJOURNMENT:

City Council Minutes of October 17, 2023

At 9:15 P.M., Mayor Aitken adjourned the City Council meeting in memory of former Council Member Jordan Brandman, District 3 resident Art Beas, and former City Librarian Lisa Weber.

Respectfully submitted,
Theresa Bass, CMC
City Clerk