Anaheim City Council
March 25, 2025

ANAHEIM CITY COUNCIL
REGULAR MEETING OF AUGUST 20, 2024
The regular meeting of August 20, 2024 was called to order at 4:31 p.m. in the Council Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on August 15, 2024.

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

STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and City Clerk Theresa Bass
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION: None
CLOSED SESSION: At 4:32 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: Orange County Water District, et al. v. 3M Company, et al., Orange County Superior Court Case No.: 30-2020-01172419-CU-PL-CXC, consolidated with In re Aqueous Film-Forming Foams Prods. Liab. Litig., United States District Court for the District of South Carolina, Case No. 2:18-mn-02873 (“AFFF MDL”), Member Case No. 2:22-cv-1798-RMG At 5:00 p.m., Mayor Aitken reconvened the Anaheim City Council.

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

INVOCATION: Pastor Kim Skilling, First Presbyterian Church of Anaheim FLAG SALUTE: Council Member Stephen Faessel
Council Member Faessel announced that as the new school year begins, to recognize the dedication and impact that teachers, educators, administrators, and all school employees who provide education to schools and families.

PRESENTATIONS: Recognizing Gilbert High School’s Sports Intervention Program Mayor Aitken recognized Gilbert High School Sports Intervention Program Coordinator Jose Lara and Physical Education and Health Department Chair Veronica Ortega-Gamez for Gilbert’s Sports Intervention Program. She noted that Gilbert High School is an alternative high school in the City that introduced a sports education program for students. She added the program is used to re-engage ITEM # 27
City Council Minutes of August 20, 2024

students with their school and help avoid pitfalls they may encounter. She noted the Gilbert students currently compete in soccer, flag football, and basketball. She reported the program allows students to earn playing time based on their progress in studying, attendance, attitude, and effort with weekly opportunities to demonstrate improvement. She highlighted the program's success which has seen improved Grade Point Averages (GPAs) and student attendance rates.

Mr. Lara and Ms. Ortega-Gamez accepted the recognition. Mr. Lara highlighted Gilbert High School’s initiatives and strategy to uplift communities through education. He thanked the City for its partnership. He recognized Ms. Ortega-Gamez for creating the program and highlighted the importance sports have on students.

Ms. Ortega-Gamez noted through listening and collaboration Gilbert High School has changed lives.

She reported that the Sports Intervention Program was developed by listening to students. She noted that over time the program has developed to include participation with other schools. She added that Gilbert High School is leading the way in alternative education and recognized the coaches and campus for believing in the program.

Recognizing Trudy Levindofske’s retirement as Executive Director of the Orange County Bar Association
Mayor Aitken recognized Anaheim resident Trudy Levindofske for her retirement as Executive Director of the Orange County Bar Association (OCBA). She highlighted Ms. Levindofske’s 35 years of service to the bar, 17 of which she served as CEO and Executive Director of the OCBA. She noted Ms. Levindofske is the longest-serving CEO and Executive Director of the organization, highlighting her compassion, dedication, and genuine concern for others. She provided background information on Ms. Levindofske and her transition from sports broadcasting to law. She added it has been a pleasure working with Ms. Levindofske and that the Orange County legal community is fortunate to have had her. She wished her the best in her retirement and thanked her for her many years of leadership and dedicated service to the community.

Ms. Levindofske highlighted the OCBA’s work for the community and attributed that to her tenure at the OCBA. She highlighted Mayor Aitken’s tenure as President of OCBA and how she created a program to support veterans. She highlighted the individuals at the OCBA and how much work they have done for the community.

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

Recognizing September 2024, as National Library Card Sign-Up Month Mayor Aitken presented the proclamation, which was accepted by Julie Conn, Library Services Supervisor. Ms. Conn noted during September, Anaheim Public Library invites and encourages everyone in the community to sign up for a library card. She announced that the Anaheim Public Library is fine-free and will not charge overdue fees with the exception of STEAM science kits. She added that during September the Library will be hosting its first-ever Amnesty Month to allow residents to rediscover their love for reading. She thanked the City Council for the proclamation.

Recognizing September 2024, as Hunger Action Month
Mayor Aitken presented the proclamation, which was accepted by Malia Cary, Government and Public Affairs Manager, Second Harvest Food Bank of Orange County. Ms. Cary highlighted the Orange County Hunger Alliance, a collaboration between eight (8) anti-hunger organizations in City Council Minutes of August 20, 2024

Orange County including Orange County’s two food banks, Second Harvest and Orange County Food Bank. She noted that the organization aims to reduce food waste, end poverty and hunger, and provide dignified and equitable consistent access to food. She noted that 330,000 individuals in Orange County are food insecure, including 85,000 children. She added during the past year Orange County’s food banks have distributed over 29 million pounds of food. She reported that in Anaheim there are 76 agency partners. She noted individuals can visit feedoc.org/hungeractionmonth to learn how to get involved during Hunger Action Month. She thanked the Mayor, City Council, and the entire City for the recognition.

Recognizing September 2024, as National Preparedness Month Mayor Aitken presented the proclamation, which was accepted by Fire Chief Pat Russell and Emergency Manager Dr. Jannine Wilmoth.

Fire Chief Russell reported National Preparedness Month promotes family and community disaster emergency planning to prepare for all types of emergencies. He added that taking action before a disaster is the best thing residents, families, and businesses can take to protect the community. He highlighted steps including knowing the nearest hazards, registering for emergency alerts, creating a disaster kit, and establishing a communication plan outlining evacuation routes to increase preparedness. For more information on disaster preparedness or to register for Anaheim alerts, please visit Anaheim.net/BeReady.

ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (all agenda items): 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 statement.

City Clerk Bass reported that a total of eight (8) public comments were received electronically prior to 2:30 p.m. A final total of 12 public comments were received electronically, distributed to the City Council, and made part of the official records]. – See Appendix.

Vern Nelson encouraged the City Council to support the passage of Assembly Bill (AB) 1482 as a City ordinance so it can be enforced citywide. He referenced four families who were told to move out of their apartments so improvements could be made and immediately thereafter, the apartments were rented out to other tenants at much higher rents, which is illegal. He referenced the evictions on Walnut Street across from Disneyland during the DisneylandForward vote. He noted that one family that lived there for 20 years managed to stay, but management made them move to a different building and doubled their rent without improvements. He expressed support for Item No. 16 to discuss affordable housing which has been a long time coming.

Paul Hyek remarked that he was glad to see the City might receive grant money that would help new residents with utility deposits as he is returning as a resident to Anaheim.

Nomi Abadi reported she is the founder of the Female Composer Safety League which is a nonprofit dedicated to supporting survivors of sexual abuse in the composing and music industries. She noted that it was also one of the organizations that co-released the Sound Off Report, which is the largest documentation of credible accusations of sexual assault in the history of the music industry. She expressed concern that Orange County may be allowing an alleged serial sexual predator to perform at the Honda Center. She referred to the Sound Off Report which is available at soundoffcoalition.org for review. She encouraged the City Council to agendize a resolution in the near future that would City Council Minutes of August 20, 2024

insert a paragraph into the management contract with the Honda Center that prohibits serial potential alleged sexual predators from performing there.

Shira Astrof reported that she has been an actress for many years on shows such as The Office and Criminal Minds. She expressed shock that an alleged violent serial rapist is being welcomed to perform in the City of Anaheim at the Honda Center. She noted that the #MeToo movement seems to have circumvented the music industry and she encouraged the City Council not to accept that by considering a resolution in the very near future to ban alleged serial sexual predators from performing at the Honda Center. She encouraged the City Council to think of victims, take a stand against violence, and validate victims.

Bianca Allaine reported that she is a survivor of sexual assault which occurred when she was a child at a concert. She noted that the music industry should be a world that is vibrant and empowering, giving space for people to express themselves and connect through music but that has betrayed countless young women and girls. She encouraged the City Council to read her public statements but forewarned that they are deeply detailed and disturbing material. She encouraged Anaheim to lead the way by implementing comprehensive safety protocols at all venues, including the Honda Center which should include increasing security presence and establishing a zero-tolerance policy for predatory behavior. She noted that her lawsuits identify her alleged abuser as Brian Warner or Marilyn Manson. She noted the City can transform the music industry to allow concertgoers to feel safe and empowered.

Bonnie McIntosh commended Ms. Allaine for her bravery and for coming forward. She reported she is a professional touring keyboardist, born and raised in San Diego and currently living in Los Angeles.

She noted that Anaheim has always been a second home to her as a music lover and a touring musician. She remarked Anaheim has the opportunity to set a precedent that could ripple within the live music industry to make it a safe space. She reported that during her 12 years as a touring professional, she was sexually assaulted twice on tour by men within the tour crew. She noted that she had to share the stage of the Honda Center with the man who assaulted her. She encouraged the City Council to help set a precedent by adopting a resolution to prevent alleged sexual predators from performing.

Elle De Los Reyes reported that she comes to the City Council on behalf of Promoting Awareness, Victim Empowerment (PAVE). She explained that they are a survivor-founded and survivor-led national nonprofit organization that supports survivors and strives to prevent sexual violence through education, advocacy, and community action. She noted that PAVE believes that all survivors deserve to live in a community that fosters their well-being. She added that it is the City’s responsibility to use spaces such as the Honda Center to not platform alleged serial sexual abusers. She noted survivors often face scrutiny from the alleged abuser's fan base and others with power. She encouraged the City Council to discuss the possibility of adding a clause to the City’s renewal agreement with the Honda Center that prevents them from platforming artists with serial allegations of sexual violence.

She noted the City would be the first to take a stand against violence in the music industry and promote the mental health of survivors.

Rima Nashashibi reported that she is the founder and president of Global Health 365, a 501(c)(3) nonprofit organization dedicated to improving the lives of women and girls locally and nationally by advocating for their safety through raising awareness, education, and prevention. She noted that their focus is on ending harmful practices towards women and girls, such as child marriage, human trafficking, sexual assault, and other forms of gender-based violence. She noted the organization advocates for and on behalf of victims. She encouraged the City Council to identify a future resolution that bans alleged serial predator artists from performing in the future at the Honda Center. She City Council Minutes of August 20, 2024

referenced a resolution the City Council adopted to support the end of child marriage and urged them to take a stand once again to hold perpetrators responsible.

Larry Slagle, with California Yellow Cab, noted he is addressing customer service and compliance issues. He reported that his company currently operates a 250-vehicle taxicab franchise in Anaheim and noted that its drivers are vetted and permitted by the City. He noted the company serves the residents, the Resort, attractions, and provides special transportation for approximately 630 access and special needs clients through OCTA. He reported that having the correct number of drivers on board is crucial to good service and driver quality. He explained that over the past several months, the City’s turnaround time to issue a driver's permit has taken approximately two months or longer if there is an appeal. He noted that a long wait for the permit reduces the ability to fill those spots and provide quicker service. He explained that the Live Scan fingerprint background check through the Anaheim Police Department takes four or five weeks just to get the initial appointment, and that does not include the review, the approval, or the process to produce the permit. He requested assistance in finding solutions and possibly using third-party vendors to process the background check or allowing a requestor to pay an expedited service fee for fast processing would be helpful.

Cecil Jordan Corkern suggested that he should be interviewed by Disney regarding security and sexual abuse as he has conducted expansive reporting.

John W. Spring reported that he is a research scientist and has made several attempts to contact the City Council regarding dangerous mind control. He recounted a story about a young girl who allegedly experienced mind control and expressed his concerns for her well-being. He added he had been defamed by an Anaheim Police Detective who did not believe his claims.

Jose Hernandez expressed support for the City Council taking steps today to consider the concept of inclusionary housing. He also expressed his solidarity with the individuals who spoke during public comment. He noted that the community desperately needs help and more affordable housing including low to very low-income housing. He encouraged the City Council to adopt stronger just cause eviction policies and rent stabilization policies like the City of Santa Ana.

Matthew Duncan, coyote advocate, referenced the documents submitted by People for the Ethical Treatment of Animals (PETA) to the California Fish and Game Commission regarding their proposal to ban the use of gas chambers when killing coyotes in the State of California. He recited quotes from the proposal noting the inhumane use of carbon dioxide to euthanize coyotes. He encouraged the City Council to read the proposal.

Marc Herbert reported that Item No. 16 mentions the voluntary affordable housing fund that was established in 2018. He noted that it may not be working as it has only raised $561,000 in the past six years from four developers and should be discussed by the City Council. He explained that for context, in the current budget, the City has appropriated $12 million for the City Attorney's Office. He expressed concern that he is still unable to obtain a copy of the appraisal discussed at the July 23 and August 13 Council meetings for the Midway Drive project, noting it should be available since the deal is closed. He read a drafted letter addressed to the Mayor and City Council to address those unfamiliar with the issues.

Adam Wood from the Building Industry Association addressed affordable housing, mentioning that earlier this year the City hired a consultant to suggest improvements. He noted that out of the suggestions, three are not being done yet and noted that inclusionary zoning kept emerging as a key topic. He pointed out that the City is far behind in housing production and cannot rely on subsidies to fix the crisis. He cited reports showing that some housing projects cost up to a million dollars per unit City Council Minutes of August 20, 2024

and criticized the idea of taxing developers to produce more housing, arguing that it just creates more obstacles. He highlighted the affordable housing contribution approved with the DisneylandForward project. He referenced an article suggesting the City could receive as much as $100 million annually through Lease Payment Measurement Revenues (LPMR) funds. He expressed the belief that the City should explore this opportunity instead of imposing more fees on developers, which could hinder housing production. He praised the City's staff and resources, noting that Anaheim has the potential to find creative housing solutions without following the reactive measures of nearby cities that are simply increasing developer fees.

Kenneth Batiste encouraged the City Council to adopt inclusionary housing. He noted the City continues to develop luxury apartments which affects the working people due to rent increases. He noted the City has not been allocating funds to housing and had been diverted to other interests. He encouraged the FBI to complete their investigation on former Mayor Harry Sidhu. He reminded the City Council of their campaign promises for campaign reform. He encouraged the City Council to support rent control and noting that residents’ lives are being impacted.

Cesar Covarrubias, Executive Director of the Kennedy Commission, expressed support for Item No. 15 and noted it is a great opportunity to rethink the City’s priorities for housing. He pointed out that while the city has been successful in building housing, most is market-rate, and only a small portion is for low-income families. He emphasized the need to focus on creating more affordable housing for low, very low, and extremely low-income families, especially for working families. He reported that for Item No. 16, the Kennedy Commission had submitted letters with suggestions on how to increase affordable housing. He praised the City’s staff for their expertise in housing but said they need the right tools to meet the demand. He encouraged the City Council to explore policies like inclusionary housing, which other cities in Orange County have successfully used. He pointed to cities like Santa Ana and Irvine as examples of how inclusionary housing can work without slowing development. He stressed the importance of city-owned land and referenced other recommendations in their letter.

COUNCIL COMMUNICATIONS:

Mayor Pro Tem Kurtz stated that she admires the young women who were brave to share their stories during public comments, and she hopes to be able to work with them in the future.

Council Member Faessel requested adjourning the meeting in memory of Don Dobmeier. He shared that Don was one of the longest serving local historians and he took him under his wing in 1996 and mentored him for several years. Don proofed a couple of books Council Member Faessel authored, he looked out for the history of Orange County, and had some of the most interesting stories one could have. Council Member Faessel shared that Don will be well remembered and was well loved by many. Council Member Faessel shared that he attended a ribbon cutting ceremony for Curated SKKN located at 255 N. Anaheim Boulevard. Curated SKKN offers facials and personalized skin care treatments. He shared that the young entrepreneur and her two children moved from Washington State and started the small business with the assistance of the Small Business Administration.

Council Member Faessel shared that there was a tragic fire in District 5 and 10 small businesses at the corner of Ball Road and State College Boulevard were not saved. The four-alarm fire required an excess of 24 fire emergency vehicles and equipment from the City of Anaheim, City of Orange, City of Fullerton, and the County of Orange. He recognized Public Works who came out with fuel tenders so that all the fire equipment could be refueled and Public Utilities for turning on every well in the area as well as the Metropolitan Water District pipeline so that there would be no shortage of available water.

He also recognized the Economic Development team for assisting business owners in locating new locations. He thanked the Fire Department and all the other City departments for doing a great job.

City Council Minutes of August 20, 2024

Council Member Meeks displayed a slide and invited everyone to attend an upcoming Virtual Town Hall on Wednesday, August 28 from 5:00 p.m. to 6:00 p.m. regarding the impacts of canceled insurance policies and rising premium costs for fire and home insurance. The Town Hall will cover what is being done at the state level and how to best prepare for the risk of fire and other emergencies. California Insurance Commissioner Ricardo Lara will provide an update on the insurance market and his efforts to address the insurance crisis. Anaheim Fire and Rescue Chief Pat Russell will give a presentation on wildfire preparedness. There will also be an opportunity for questions and answers. Attendees can submit questions ahead of time, or during the event.

Individuals can register for the Virtual Town Hall by scanning the QR code on the Virtual Town Hall flyer or by visiting anaheim.net/beready.

Council Member Diaz displayed a slide regarding the Anaheim Police Department West Substation reopening. The days and hours of operation are Monday through Friday from 9:00 a.m. to 4:00 p.m.

Staff will be available during business hours and walk-ins are welcome. He thanked the Anaheim Police Department for reopening the West Substation.

Council Member Rubalcava highlighted and shared photographs of events in District 3 including an upcoming District 3 meeting that will be held on September 5, 2024. She encouraged everyone who has a vested interest in the community to attend. Various City departments will be available to address public safety and encampment concerns at parks. District 3 is home to 16 parks including two of the oldest parks in Anaheim, Pearson Park and La Palma Park. Her office is also hosting, for the second year in a row, Wings of Hope a Mental Health and Wellness Resource Fair. The event will take place during National Suicide Awareness Month on September 7th. She stated that the issue impacts many people personally and it is something that is very important to District 3. Recently one of her constituents unfortunately committed suicide and she hopes that everyone will share the event information. The event is open to all ages and there will be approximately 20 to 30 vendors and City staff in attendance. Many of the vendors will have resources related to mental health and wellness.

Council Member Rubalcava thanked City staff for attending a laptop giveaway event at Manzanita Park. She stated that public and private partnerships are significantly important in the community.

Businesses are the backbones of every economy because they generate jobs and revenue for cities.

In collaboration with AT&T and Human IT, 150 laptops were given away to local youth and senior citizens in the City of Anaheim. She thanked the Boys and Girls Club for serving youth in the community, the Anaheim Police Department, Public Utilities, Anaheim Fire and Rescue, and the District 3 staff. Council Member Rubalcava recognized a young couple who are residents of District 3.

The young lady works at a local business in Anaheim, graduated from Anaheim High School, and is a very proud Anaheim resident. She visited City Hall with her husband and young son, and they had a great experience. Council Member Rubalcava highlighted Owlverick’s Coffee, a minority women- owned business. She invited everyone to visit Owlverick’s because the coffee is delicious, and it is roasted in the City of Anaheim.

Council Member Leon announced that the Anaheim Tech Scholar Program is back for all high school juniors and seniors. The program empowers college bound high school juniors and seniors in Anaheim and provides laptops or tablets as well as internet access to prepare students for the next stage of their academic careers. The application process will be open from August 26 through September 30 and he encouraged any juniors or seniors to apply. Council Member Leon asked everyone to save the date for the Second Annual Active Older Adult Appreciation Event on Saturday, September 28, 2024 from 9:00 a.m. to 12:00 p.m. at St. Justin Martyr Church off Ball Road. Additional information regarding the event will be provided in the coming weeks. Council Member Leon shared that the Little Arabia freeway signs will be installed next month. The City is working hard on planning the unveiling of the signs. He thanked Mayor Aitken and Mayor Pro Tem Kurtz for joining the Ad Hoc Committee and for their work. He also thanked City staff who worked diligently throughout the City Council Minutes of August 20, 2024

process and his Council colleagues for their support throughout the process. Council Member Leon stated he was honored to have worked with the community throughout the last year to bring this forward.

Mayor Aitken highlighted and shared photographs of events she attended including the County Labor Federation dinner celebrating working people and those that advocate on their behalf. Anaheim has a very strong economy because of unions and working families. She extended her heartfelt congratulations to the award winners of the dinner and their commitment to fair wages, safe workplaces, and equitable treatment that makes a profound difference in the lives of many. She thanked the elected leaders that were there, especially the State Superintendent of Public Instruction who joined her at the Anaheim Convention Center Stump Lounge. Mayor Aitken shared that Visit Anaheim invited her to their Annual Destination Forecast to give welcome remarks to hoteliers and others in the visitor economy, touching on the amazing things that are ahead for Anaheim. She thanked her colleagues who were able to join her to talk about some of the amazing things that are coming to Anaheim, including the 70th anniversary of the opening of Disneyland and the unveiling of their new attractions Coco and Avatar-themed land. She stated that ocV!BE is taking shape around the Honda Center, where Anaheim is expected to host the volleyball in the 2028 Olympics. She stated that the visitor economy touches everyone in the City with revenue from that economy funding public safety and community services. Mayor Aitken also thanked the Public Works Department for inviting her to give welcome remarks at the California Resource Recovery Association Conference. It was the chance to welcome to Anaheim the unsung heroes working every day to better the environment. The California Resource Recovery Association is celebrating 50 years of working towards ending waste through education, reuse, and composting. She stated that Anaheim has always been ahead of the curve in both recycling and finding creative ways to reuse trash as well as organic waste. She thanked everyone in the Public Works Department that helped make the event successful. Mayor Aitken stated she was honored to recognize some of the inspiring heroes who dedicate their lives in the care for others at the Alzheimer's Orange County 18th Annual Visionary Women Caregiver Awards. She stated that Alzheimer’s and dementia have a profound impact on people, families, and lives. She thanked Alzheimer's Orange County for allowing her to acknowledge the incredible work and stand in support of incredible caregivers and other groups that provide resources to caregivers and their families. She also thanked everyone in Anaheim who is a caregiver for their selfless compassion. Mayor Aitken wished Council Member Faessel and his wife Susan a happy 52nd wedding anniversary.

CITY MANAGER’S UPDATE:

City Manager Jim Vanderpool invited Chief Communications Officer Mike Lyster and Communication Specialist Natalie Aguirre who provided an update on what the City is doing to celebrate and promote Chicano Heritage Month. Chief Communications Officer Lyster stated this is the second year of formally recognizing Chicano Heritage Month which holds a special place in Anaheim's history, with celebrations taking place across the City. Anaheim's libraries are leading efforts with events including story times, performances, cooking demonstrations, and even the making of low rider cars with boxes and other crafts materials. At the East Anaheim Branch there will be a month-long community mural painting experience. The Sunkist Branch will hold a story-time and performance celebrating Chicano and indigenous culture. The Central Library will close out the month next Saturday with a special musical performance. Information regarding activities at the libraries can be found on the City’s website at anaheim.net/chicanoheritage. Chief Communications Officer Lyster shared that the events have been posted in the Andy Anaheim Newsletter, social media, and there was also coverage in last week's Anaheim Bulletin. He stated that residents can appreciate Anaheim's Chicano Heritage all year round with the living history of iconic murals across the City. The murals are located at Manzanita Park, Downtown Anaheim Youth Center, across from Little People's Park, and at Little City Council Minutes of August 20, 2024

People's Park. He shared that the mural across from Little People’s Park was painted by iconic Chicano muralist Emigdio Vasquez. Emigdio Vasquez’s daughter will be displaying her father’s art at the Anaheim Community Center and at Muzeo, starting this weekend through September. Chief Communications Officer Lyster welcomed everyone to experience the exhibits that Anaheim is proud to have across our City and wished the community a meaningful Chicano Heritage Month and year- round recognition of its impact on Anaheim's history and culture.

CONSENT CALENDAR: At 6:37 p.m., the Consent Calendar was considered with Council Member Faessel pulling Item No. 2 and Mayor Aitken pulling Item No. 3 for separate consideration.

Prior to the final action of the Council on Agenda Item No. 04, City Clerk Theresa Bass reported, pursuant to Government Code Section 54953, Item No. 04 are approvals of the merits and other recommended adjustments to compensation for the City Council appointees (City Manager, City Attorney, and City Clerk), allowed under the Personnel Rules and Policies for Non-Represented City Employees, Sections 4.6 and 4.7, as follows: City Manager, in the amount of $368,283; the City Attorney, in the amount of $351,687; and the City Clerk, in the amount of $235,455, each effective July 5, 2024.

MOTION: Council Member Meeks 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 Mayor Pro Tem Kurtz.

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

1. Receive and file the minutes of the Library Board meeting of July 8, 2024 and the Public Utilities Board meeting of June 26, 2024.

4. Approve the merits and other recommended adjustments to compensation for the City Council appointees, 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 $368,283, for the City Attorney, in the amount of $351,687, and for the City Clerk, in the amount of $235,455, each to be effective July 5, 2024.

5. Approve and authorize the Mayor to execute the City Council’s response to the Presiding Judge of the Orange County Superior Court related to the 2023-2024 Orange County Grand Jury report entitled “Talking Trash: Recyclables and Organic Waste.”

6. Approve and authorize the Mayor to execute the City Council’s response to the Presiding Judge of the Orange County Superior Court related to the 2023-2024 Orange County Grand Jury report entitled “E-Bikes, Friend or Foe.”

7. Approve a First Amendment to the Software License and Support and Maintenance Services Agreement with Landis + Gyr Technology, Inc. to upgrade grid automation and remote monitoring systems with advanced cyber security software, hardware, and related services, for one-time costs of approximately $555,533 for new software licenses, hardware, and implementation support services and an increase of annual fees to an amount not to exceed $362,047 for recurring software license fees and support and maintenance services with an annual Consumer Price Index escalator and a contingency of not to exceed $75,000 per year for as-needed extra services and products, with an initial term of five years and one-year optional renewals thereafter; and authorize the Purchasing Agent, or designee, to issue a City Council Minutes of August 20, 2024

master agreement and execute and deliver the amendment and any related documents and to take the necessary actions to implement and administer the amendment.

8. Approve the 2025 Health and Welfare Plan Carriers and Rates and authorize the Human Resources Director, or designee, to enter into and execute all required agreements and to take the necessary actions to implement and administer the agreements.

9. Approve an Agreement with Fanslau Government Affairs, at a rate of $17,000 per month with a not to exceed amount of $625,000, for state legislative advocacy and consulting services, for a one year term with up to two one-year optional renewals; and authorize the City Manager, or designee, to administer the agreement under the terms and conditions of the agreement.

10. Approve the Right-of-Way Contract with JJAC Enterprises LLC for the purchase of real property at 1041 N. Acacia Street, in the amount of $39,368.33, for a Permanent Road Easement and a Temporary Construction Easement and authorize the acquisition payment of $39,368.33 to JJAC Enterprises LLC plus estimated escrow fees not to exceed $11,500 for the Citywide Safe Routes to School Sidewalk Gap Closure Project; and approve the Right-of- Way Contract with Frontera LLC for the purchase of a Temporary Construction Easement at 2930 E. Frontera Street, in the amount of $71,559.90, and authorize the acquisition payment of $71,559.90 to Frontera LLC for the project.

11. RESOLUTION NO. 2024-096 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM delegating to the Director of Public Works the authority to execute change orders on public works and establishing limitations thereon and rescinding Resolution No. 2017-047.

12. RESOLUTION NO. 2024-097 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM identifying the terms and conditions for Anaheim Fire and Rescue personnel assigned to an emergency incident and rescinding Resolution No. 2023-034.

13. RESOLUTION NO. 2024-098 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Workforce Innovation and Opportunity Act Subgrant agreement between the City of Anaheim and the State of California for the term of April 1, 2024 through June 30, 2026 [subgrant agreement not to exceed $763,071; includes determination that approval of the agreement is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(3), 15061(b)(3), and 15378(b)(4)].

Increase the Housing and Community Development’s Fiscal Year 2024-25 budget by $74,404.

14. RESOLUTION NO. 2024-099 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the destruction of certain City records of the Housing and Community Development Department in accordance with the City's Record Retention Schedule.

15. ORDINANCE NO. 6588 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adding Section 1.08.100 to Chapter 1.08 of the Anaheim Municipal Code establishing the Anaheim Local Housing Trust Fund (introduced at the Council meeting of August 13, 2024, Item No. 20).

City Council Minutes of August 20, 2024

BUSINESS CALENDAR:

2. Approve recognition recognizing United Across Borders Foundation for their work in the Anaheim Community.

DISCUSSION: Council Member Faessel expressed gratitude for the recognition of the United Across Borders Foundation. He shared that he met Erica Robles several years ago during the early stages of the pandemic when she was working tirelessly to provide food to residents in some of Anaheim's most impacted neighborhoods. He noted that few people in Anaheim worked as hard as Erica and her small group of volunteers. He encouraged Ms. Robles, at the time, to apply for a grant from the Anaheim Community Foundation (ACF), which he believes was her first grant. He thanked the Mayor for acknowledging Ms. Robles's efforts and mentioned that Erica has continued to work hard, not only in Anaheim but across the county. He expressed his honor in supporting her growth.

MOTION: Council Member Faessel moved to approve recognition recognizing United Across Borders Foundation for their work in the Anaheim Community, seconded by Council Member Meeks. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES – 0. Motion carried.

3. Receive and file the list of Professional Service Agreements executed by the City Manager in July 2024 and the list of Visit Anaheim Subcontractor Agreements approved by the Executive Director of Convention, Sports, and Entertainment in July 2024.

DISCUSSION: Mayor Aitken reported that she pulled the item to highlight its expansion. She expressed pride in the extraordinary measures that the City Council has taken to make the government more transparent, both as a City and with its partners. She explained that one of the changes now included in the month's agenda is the addition of the professional service contracts entered into by the City Manager, which fall within his authority.

In addition, Mayor Aitken emphasized that for the first time, the agenda will now include the list of Visit Anaheim subcontractor agreements, which had never been presented before. She explained that this change allows residents to see what contracts are being entered into by Visit Anaheim. She thanked the team for their efforts in moving towards a more transparent Anaheim.

MOTION: Mayor Aitken moved to receive and file the list of Professional Service Agreements executed by the City Manager in July 2024 and the list of Visit Anaheim Subcontractor Agreements approved by the Executive Director of Convention, Sports, and Entertainment in July 2024, seconded by Council Member Faessel. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES – 0. Motion carried.

16. Receive an update on the status of affordable housing policies and provide direction regarding any further desired actions.

Director of Housing and Community Development Grace Ruiz-Stepter introduced Deputy Director of Housing and Community Development Andy Nogal, Community Investment Manager Kevin Clausen, and Deputy City Manager/Director of Planning and Building Ted White, highlighting the team’s combined efforts toward affordable housing and land use entitlements. She reported that the item is a continuation of discussions regarding affordable housing policies. She noted the item was brought forward at the request of Mayor Aitken, who, under her authority, asked for an ongoing discussion of the HR&A Report initially presented in late June. She explained that the City Council had previously City Council Minutes of August 20, 2024

directed staff to identify a qualified consultant to provide guidance to both the City Council and staff on the best tools available for advancing affordable housing production, focusing on best practices.

She explained that through a competitive process, HR&A was selected to complete this work, which was first presented via a memo and then formally at the March 26, 2024 City Council meeting.

Director Ruiz-Stepter reported that as part of the presentation, staff took time to review and compare various housing techniques currently used in Anaheim. She noted that the consultant examined several key issues, including land use and zoning regulations, such as expanding by-right housing zoning. She reported that staff conducted an in-depth analysis of what has already been implemented in Anaheim, including adopting Specific Plans, Overlay Zones, and other administrative measures that were either approved by a previous City Council or adopted independently by the City. She noted that additional flexibilities in design and development processes have also been introduced. She remarked that one area highlighted was the need to increase workforce moderate-income housing.

She noted that this was addressed through five approvals aimed at increasing moderate-income housing under the Workforce Development Program, in collaboration with the California Development Authority. She noted Incentive Zoning is not currently used by the City but was mentioned by the consultant.

Director Ruiz-Stepter reported that Accessory Dwelling Units (ADUs) are another area where the State has introduced several regulations, and through the Planning Department, Anaheim has adopted these regulations. She reported that the Planning Department has streamlined the ADUheim process, which has been helpful. She noted that the City adopted a Motel Conversion Ordinance to facilitate the production of permanent supportive housing, done in collaboration with the Housing Authority and the Planning Department.

Director Ruiz-Stepter explained that the report also examined financing tools, as deeper affordable housing often requires funding to make developments feasible. She thanked the City Council for advancing one of the top priorities, the adoption of a Local Housing Trust, which began on August 13.

She noted that the City Council’s recent action allows the City to close the loop and establish a Housing Loan Fund through the Housing Authority. She noted that the City inherited assets from the former Redevelopment Agency, which are used to provide loans to affordable housing developers aiming to boost production in Anaheim. She reported that a Commercial Linkage Fee can also be used as a potential tool, though it has not been explored in Anaheim yet. She added for Post- Redevelopment Tax Increment Financing Measures, cities have utilized tax increments from Redevelopment and have dedicated them to affordable housing.

Director Ruiz-Stepter reported that the consultant recommended exploring public and faith-based land partnerships, which have been supported by recent state regulations. She added that the City has had several conversations with faith-based organizations in Anaheim and will continue to do so.

She explained that the Housing Authority owns several sites, most of which are slated for future development, with only a few small, remnant sites not viable for affordable housing. She also discussed the concept of a Land Bank, which would secure sites for long-term affordable housing through ground leases. She explained that the Housing Authority model largely covers this function, even if it is not officially labeled as land banking. She further explained that the City’s Affordable Housing Production Program is generally a ground lease for 55 years and at the end of the 55 years, that property returns to the Housing Authority so it does secure the land into perpetuity. She noted that the maintenance of the housing dashboard is something that they hope to implement with the trust fund for transparency purposes, and so that the public can see how the City is utilizing those funds. Lastly, she reported that the current Voluntary Program is found under Resolution No. 2018- 106 and was referenced earlier. She confirmed that the City has received contributions from four developers totaling roughly $561,000.

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Director Ruiz-Stepter reported that staff is bringing forward a deeper discussion on incentive zoning, often referenced as affordable housing policies or inclusionary zoning. She explained that it is a tool considered in many cities seeking to address their affordable housing challenges. She further explained that the evaluation of the benefits and trade-offs of this type of policy are complex, and as stated in the City’s own report produced by HR&A, there are pros and cons to this policy that should be fully taken into consideration when advancing this type of policy. She referenced prior discussions on whether or not it was the right policy for Anaheim.

Director Ruiz-Stepter reported that following some robust conversations, staff have elected to look at other tools. She presented a heat map of cities currently implementing inclusionary housing, including Brea, Huntington Beach, Irvine, La Habra, Laguna Woods, and most recently Santa Ana. She reported that Costa Mesa advanced a program last week as well.

Director Ruiz-Stepter explained that when considering inclusionary zoning, it is a highly localized decision. She reported that key decision-making points include determining what type of product the policy applies to. She noted that in some jurisdictions, the policy applies to all types, while in others, it only affects certain products for various reasons. She added that another consideration is the size of the development project that the policy would apply to which varies widely in Orange County. She reported that another decision-making point is at what level of affordability developers are being asked to provide. She noted that in any situation where a decision-making body decides that inclusionary zoning is suitable, they also adopt an in-lieu option. She explained this means that if a developer does not include affordable housing within their development, they are required to provide an in-lieu fee. She noted that the fee would contribute to affordable housing being built elsewhere and noted the fees can vary greatly.

Director Ruiz-Stepter referenced a study that examines the gap between producing an affordable unit and not, and what that number looks like. She explained that it varies widely in Orange County with fees ranging from as little as $10 to as high as $40 per square foot. She noted that staff are also considering other models, such as those in Los Angeles and San Diego, which have numbers that might not make sense for a jurisdiction at the entry point of this type. She presented a potential Inclusionary Housing and Affordable Housing Fee Development framework which would consolidate everything into one place to clearly show what decisions need to be made. She explained that developers often inquire about the difference between a density bonus and inclusionary zoning. She noted that a density bonus generally applies to developments where the developer is asking to build more than what the land use allows for, and it involves building units within the development. Lastly, she explained that inclusionary zoning may require units to be built on-site, but it also allows for the option to pay an in-lieu fee instead of creating the units at that location.

DISCUSSION: Mayor Aitken thanked staff for the presentation. She stated that as the Mayor, she represents the city from Weir Canyon in District Six to Beach Boulevard in District One. She emphasized that all residents are concerned about the cost of housing which has become the Council’s top priority. She expressed her gratitude to the team, noting that they are doing a remarkable job in building housing and being as housing-friendly as possible. She emphasized that there is a unique opportunity to make a difference. She noted that the City has established a Housing Trust, the first one in Orange County. She referenced unique funding opportunities, including DisneylandForward, which has contributed the first $15 million to the trust this year. She noted that there have also been discussions about potential additional support from ATID, at the discretion of other Resort partners but would be limited to Resort workers and would not be as flexible as the DisneylandForward funds.

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Mayor Aitken noted that previous councils have tried to address the housing issue and have historically preferred a voluntary program. However, she believes the data shows that this approach has not been working, as developers have either not participated or only done so at nominal levels.

Looking at the data from the last five years, she noted that even a nominal policy could have brought in millions of dollars that were left on the table by not having an affordable housing policy. She believes an affordable housing policy would provide the development community with certainty, ensuring they are all treated the same, and would give the City flexibility to build affordable housing at different levels. By partnering with the development community to build the "missing middle," the City could focus on its biggest need which is very low and low-income housing. She mentioned that the discussion comes up frequently and would give the City an additional advantage when talking to the California Department of Housing and Community Development (HCD) about approving the Housing Element by including an affordable housing ordinance.

Mayor Aitken expressed support for having an Affordable Housing Ordinance and proposed that staff return to the City Council with a draft ordinance. She noted that the ordinance should include their expertise and analysis of what other cities are doing, as well as Anaheim-specific needs. She suggested the ordinance address in-lieu fees or on-site unit construction, the thresholds for the policy's application, the size of applicable projects, renter versus owner-occupied housing, and the percentage of units required for eligibility. She emphasized the importance of providing the staff with as many tools as possible to help them build housing and address the housing needs of Anaheim and its residents.

Mayor Aitken inquired when the voluntary program was started and if there was a set rate for voluntary donations.

Director Ruiz-Stepter explained that the voluntary program does not have a set rate, and staff does not recommend a specific amount. She explained that the voluntary program involves her team, serving as an ombudsman, and meeting with developers referred to from the Planning team during the entitlement process to encourage the inclusion of affordable housing development. She further explained that during that discussion, they discuss density bonuses and other merits of affordable housing development but ultimately, the developer decides whether or not they would like to participate and at what rate. She mentioned that the first developer who chose to participate voluntarily decided to contribute $1,000 per unit. However, she emphasized that staff do not recommend or impose a fee, as the entire process is completely voluntary. Deputy City Manager White confirmed the process.

Mayor Aitken inquired about the total percentage of projects that developers have participated in the voluntary program. Deputy City Manager White explained that while he did not have the numbers in hand, he estimated it is in the 30% to 40% range.

In response to Mayor Aitken, Deputy City Manager White explained that the density bonus is a state law, and the City has adopted a local ordinance that aligns with this law. He noted that it provides incentives for developers who choose to include affordable units as part of their projects. He explained that the deeper the affordability and the higher the percentage of affordable units, the greater the incentives offered to the developer. He noted there is a very specific formula for how this works and is consistent across all cities in California.

Mayor Aitken noted that 3800 units have been built in the last five years and inquired what the estimated in-lieu fees would have been had an affordable housing ordinance in place.

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Director Ruiz-Stepter reported that staff prepared a chart for discussion following a prior City Council meeting and presented it in full disclosure to the Ad Hoc committee. She noted that there are several caveats to presenting this information. She explained that, for example, if a fee had been in place and a developer had reviewed their financials, there is a possibility they might not have built the product or might have changed it. She noted that staff wanted to include this caveat to be fair to that potential reality. She explained that when simply examining what was built in the last five years and assuming it would all have continued to move forward, staff examined what could potentially be generated if the fee were set at $5, $10, or $15 per square foot and presented the potential estimates from $16 million to $65 million. She explained that in some jurisdictions, fees are not applied to single-family homes, which would result in different figures. She noted that Anaheim typically sees fees applied to both types of developments.

Mayor Pro Tem Kurtz inquired if in the cities reviewed was there a difference in the rate of build after they implemented these policies.

Director Ruiz-Stepter referenced that one of the speakers had mentioned Irvine and Santa Ana in terms of production continuing in those areas, but noted that there are several smaller jurisdictions, such as San Clemente and San Juan Capistrano, where production has remained nominal. She stated that it is difficult to determine whether this is due to inclusionary housing or other factors. She referenced, for example, in San Juan Capistrano, the threshold for their zoning applies to developments of six units or more, making it hard to assess the true impact. She acknowledged that the building industry would argue that inclusionary housing has an effect, and it is reasonable to believe there is some impact. She agreed that to claim there is no effect at all would be disingenuous, as developers are being asked to include restricted rents, which they likely did not consider when initially creating their proformas.

Director Ruiz-Stepter reported that during one of the iterations of this discussion when staff held round tables with private and affordable developers, they were told unanimously by the private development community that they wanted a level playing field. She noted that the developers explained that if there is a policy in place, it factors into what they are willing to pay for the land which is where they attempt to make up the difference in the cost to include affordable units in their development.

Mayor Pro Tem Kurtz inquired if, during the research and gathering of reports and information, staff found any place where there could be a level playing field between private developers, nonprofit developers, or affordable developers. She asked whether there was a balance that would even out the playing field, noting that organizations like the Illumination Foundation receive many incentives to help with their developments, which private developers do not receive, although private developers tend to make significantly more money on their projects.

Director Ruiz-Stepter responded that it is difficult to give a definitive answer to that question, however, she leaned into what the development community shared during their roundtable discussions. She reported that their feedback indicated that about 10% of inclusionary housing is what they could tolerate. When reviewing the data, she noted that generally speaking, the majority of jurisdictions in Orange County that have adopted inclusionary policies are around 10%, and these policies tend to apply primarily to multifamily developments. She further explained that while some Orange County cities have included homeownership, noting that the larger and more robust programs are typically focused on multifamily developments, particularly for larger projects. She added that the touchpoint for applying inclusionary requirements is generally when developers are building 30 to 50 units. She explained that many jurisdictions target higher-density developments because they want to be fair to the development community, allowing them to recoup some of their costs, which is easier with larger City Council Minutes of August 20, 2024

projects. She noted that where the variation becomes particularly difficult to address is with in-lieu fees. She explained that determining what to charge when developers do not include affordable units within their developments is highly inconsistent across jurisdictions.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter reported whether developers provide affordable pieces or in-lieu fees varies by jurisdiction. She explained that in Irvine, they are an anomaly because they have land, and most of their inclusionary housing is built into their actual developments, and in Santa Ana, it is about half and half. She mentioned that they have spoken with Santa Ana, and while they do receive money through payments, they have also built affordable units.

Council Member Diaz remarked that everyone wants affordable housing, but it is very difficult to bring real affordable housing to production. He noted that while in most of the country, the building itself costs more than the land, in California, the land is more expensive than the house. He gave an example of Anaheim and Stanton, where the land to build a single home costs about $650,000, and building the home costs $350,000, making it a total of $1 million to build a single home in West Anaheim and Buena Park.

Council Member Diaz also pointed out that materials have increased in cost by 30-50% in the last three years, with every nail and piece of wood doubling in price. He noted that workers' compensation costs have also risen significantly. He emphasized that regulations from Sacramento have made housing in California extremely costly, with fees rising by hundreds of thousands of dollars before any construction begins. Additionally, he explained that high-interest loans make it nearly impossible to get a construction loan.

Council Member Diaz referenced the issue of "NIMBYs" (Not In My Backyard), stating that people do not want anything built near their homes, which is a reality many avoid discussing. He identified single-residential zoning as the biggest deterrent to housing in Anaheim, as the majority of the land is zoned for single-family homes. He argued that more fees, regulations, and bureaucratic mandates will only decrease housing production, and he pointed out that California is producing less housing each year. He expressed frustration that Sacramento continues to add more regulations while housing production decreases.

Council Member Diaz suggested that California's Redevelopment Agency could be a valuable tool for increasing housing production, with some changes to prevent abuse by small jurisdictions. He advised that he is willing to consider tax incentives and the use of surplus land sales to support affordable housing projects, proposing that funds from such sales could be reinvested into future affordable housing development.

Council Member Rubalcava expressed that she is glad the discussion is taking place because the idea of Anaheim having an affordable housing ordinance is challenging to argue against. However, she noted that her concern is that they are only looking at one item that could potentially lead to affordable housing. She agrees that more affordable housing is needed, especially in her district, where many residents face constant rent increases and other issues. However, she explained that there are underlying issues that need to be addressed, such as enforcing current state laws, like AB 1482. She noted that this is a missed opportunity to enforce existing laws instead of reinventing the wheel.

Council Member Rubalcava mentioned concerns about inclusionary zoning, noting that cities like Irvine and Santa Ana have unique situations. Irvine, being a 50-year-old city, has two property owners controlling most of the land, making it easier for developers to include costs and fees in their plans. She explained that Anaheim, however, faces challenges in attracting developers, and City Council Minutes of August 20, 2024

cautioned against making it more difficult for development by increasing costs. She also pointed out that Santa Ana had to lower their in-lieu fees because developers were opting to pay fees instead of building affordable units, leading to a decline in projects.

Council Member Rubalcava expressed a desire to explore other ways to enhance affordability in Anaheim, stating that she is not convinced inclusionary zoning would effectively generate additional affordable housing units in the City. Council Member Rubalcava raised concerns about the impact on parking, particularly in District 3. She noted that requiring affordable housing can trigger state laws that reduce parking requirements, which could negatively affect areas like District 3 and surrounding areas. She remarked that while she supports increasing affordability, she does not believe inclusionary zoning is the right approach and is concerned it could slow development rather than encourage it.

Council Member Meeks remarked that she understands the bottom line involves a lot of money, but if the City had collected the money for in-lieu fees, it would have been passed on to the market rate units. She noted that, as the Mayor mentioned, everyone in the City and the state is struggling with housing affordability. She expressed that she does not want to achieve affordable housing at the expense of other families who missed the cutoff, as everyone is facing challenges. She emphasized the need to be fair across the board. She highlighted the City's active role in creating affordable housing in the past, especially during redevelopment, and suggested exploring mechanisms like tax increment financing and working with the state to create a statewide funding source directed toward housing. While it may not be as much money as redevelopment, she suggested it could have better oversight and benefit all Californians. She expressed interest in researching such a solution.

Council Member Meeks also expressed pride in the work done to create the housing trust fund, acknowledging Disneyland's significant financial contribution to get it started. She sees opportunities for additional funds to be added when available and mentioned the possibility of allocating some of the LPMR money, though she acknowledged that it may not be an option in the immediate future.

However, she pointed out that the City has $15 million available over the next few years to help move forward with housing units. She remarked that the City is doing a great job with unique solutions that are right for Anaheim, and continuing to advance these efforts is important.

Council Member Meeks inquired if foundations can donate to the Housing Trust Fund and receive a tax benefit in return.

Director Ruiz-Stepter explained that currently, the Housing Trust Fund is a city vehicle, but the language was left open so that it can receive money from multiple types of sources. She noted that this is a City Council directive. She noted that in the future, it could evolve into a 2.0 version or an arm, but at the moment, it is set up as a public trust with the City Council acting as the governing body.

Council Member Meeks requested that staff investigate the possibility of foundations donating to the Housing Trust Fund. She noted that sometimes foundations, organizations, and businesses are looking for ways to make a difference and contribute to housing opportunities, and this could be a way to do it. She explained that while developers aim to create projects that are financially viable, it becomes harder when additional requirements are imposed. She noted that on the other hand, foundations or nonprofits seeking to do good in the community could be a different resource worth exploring. She requested more information on that and expressed that she is not convinced about inclusionary zoning. She emphasized the need to focus on the Housing Trust Fund and existing resources to continue the good work already being done.

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Council Member Leon echoed his colleague's comments, stating that they all want more affordable housing for residents. He emphasized that the conversation is about the opportunities available and the tools that could be used to leverage those opportunities. He noted that he is looking for something that would allow the private sector and developers to be more of a partner with the City and the community in creating more housing opportunities that residents can realistically afford.

Council Member Leon requested that Director Ruiz-Stepter explain what affordable means.

Director Ruiz-Stepter explained that affordable is defined in many ways and is often subject to the funding source. She presented a graphic provided by HUD and explained that affordable housing is defined in various ways and is often subject to specific funding sources. She noted that there are charts showing 100% of the area median income, and the state provides these figures. She explained that in some programs, affordable housing is defined as targeting extremely low to very low-income (Extremely Low: <$33,150 for 1 person, <$47,350 for 4 person household; $33-151-$55,250 for 1 person, Very Low: $47,351-$78,900 for 4 person household) populations, such as the Section 8 program, which focuses on these groups. She further explained that other programs, like those from California Statewide Communities Development Authority (CSCDA), tend to target the "missing middle" income group, ranging from 80% to 120% for homeownership products. She noted that at a moderate rate of 120%, an individual is considered an eligible buyer for low-income homeownership purposes. She emphasized that there are income bands, and within each band, which can determine affordability. She explained that those in the extremely low-income group, are at the bottom end, while those in the low to moderate-income groups (Low: $55,251-$88,400 for 1 person, $78,901- $126,250 for 4 person household; Moderate: $88,401-$108,350 for 1 person, $126,250-$154,800 for 4 person household) are closer to the average income for households in Orange County and Anaheim.

Council Member Leon noted that the graphic was helpful and appreciated it. He inquired if there is any data or numbers on what the City of Anaheim's demographics look like in terms of the percentage of residents who fall into each income category.

Director Ruiz-Stepter reported that the staff does have those numbers but will provide a follow-up to the City Council.

Council Member Leon requested additional information as to how many market-rate units have been built versus affordable housing units over the last five to ten years.

Director Ruiz-Stepter referenced an earlier slide that outlined the number of units built over the last five years. She displayed a table showing the city's response to its Regional Housing Needs Allocation (RHNA) numbers, noting that the 5th Cycle has now been completed. The table shows units built based on income levels, indicating that over 8,000 units were built for moderate-income, while 298 units were built for very low-income, mostly produced by the Housing Authority as they target 50% or lower area median income (AMI) units. There were smaller numbers of units built between the moderate and very low-income levels.

Council Member Leon requested clarification on allocated units versus produced units.

Director Ruiz-Stepter clarified that allocated units are goals prescribed by the State through the RHNA process, while quantified objectives are what staff believes are realistically achievable, given the City's resources and capacity.

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Council Member Leon requested confirmation that for the 5th Cycle, between 2013 and 2021, the City was required to produce 1,256 very low-income units and 907 low-income housing units.

However, instead of producing a total of 2,163 units, the City produced 298 very low-income units and 71 low-income units.

Director Ruiz-Stepter confirmed those numbers.

Council Member Leon requested confirmation that the City was allocated 2,501 units for above- moderate-income housing, but the city produced 8,312 above-moderate-income housing units.

Deputy City Manager White confirmed those numbers.

Council Member Leon highlighted concerns from residents in District Two and other Anaheim residents he has grown up with, who cannot afford to be homeowners in Anaheim. He expressed concern that people want to stay in the City but cannot, as there is not enough production of very low- income, low-income, or even moderate-income housing units to support those families.

Council Member Leon noted that of the 1,256 required, only 298 units were produced in the last five years. He inquired if there were any housing projects presented to the City Council that would have been affected by an inclusionary zoning policy in the last five years and if so, what would have been the effect.

Deputy City Manager White explained that the number of units affected by an inclusionary housing ordinance would have been determined by the City Council and would have depended on the specific ordinance. He explained that, for example, Accessory Dwelling Units (ADUs) likely would not be subject to such an ordinance. He noted it would have been at the City Council's discretion to include single-family attached units. He explained that common practices often exclude smaller-scale developments to avoid hindering middle housing, with the focus typically on larger developments. He added that there are many variables that could be considered as part of a future ordinance, should the City Council choose to implement one.

Council Member Leon requested a heat map that could illustrate the locations of the affordable housing units the City produced. He inquired how many developers contributed to the voluntary program.

Director Ruiz-Stepter agreed to produce a heat map and noted that staff tracks everything built by district. She confirmed that this would be a follow-up item and mentioned that four developments had made payments, but the total number of developments was not available.

Council Member Leon inquired how many developers did not pay.

Deputy City Manager White explained that he did not have the numbers available, but estimated it could be around 30%, but clarified that there has been a mix of for-sale and for-rent developments, with some taking advantage of the density bonus and others not.

Deputy Director Nogal explained that his team meets with all housing developers referred to by the Planning team to discuss affordable housing programs. He added that staff meets with dozens of housing developers annually but only four have made voluntary contributions.

Council Member Leon inquired if developers have asked how much they should voluntarily contribute to a project to be brought forward to the City Council.

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Deputy Director Nogal confirmed that developers have asked about a specific contribution amount, but as Director Ruiz-Stepter mentioned, because there is no mandatory ordinance, staff cannot provide a clear answer. He explained that the $1,000 contribution received from developers was based on the precedent set by the first developer.

Mayor Aitken referenced the chart reflecting developer donations and requested confirmation that it produced 576 units and if it is comparable to the time frame in which about 3,800 units were built.

She remarked that in that case, roughly 14% of the units were affordable.

Deputy City Manager White remarked that it is important to note that some of the units were very low- income, which are already affordable by nature, and there were ADUs included as well. He clarified that they do not meet with individual homeowners looking to build ADUs and ask them to provide contributions. He explained that the very low and low-income units would have already been part of the plan.

Council Member Faessel remarked that he believes he is the only member of the City Council who participated in all three of the Ad Hoc committees. He mentioned that the last two committees generated the most information and recalled that in early 2023, he suggested to staff the idea of forming what became the third Ad Hoc Housing committee with Mayor Aitken and Council Member Rubalcava where they went through several meetings and gathered a significant amount of information.

Council Member Faessel noted that all the work culminated in the current discussion, where they are receiving an update on affordable housing policies and providing direction for further action. He expressed support for moving forward with those discussions. He remarked that he was not a fan of inclusionary housing seven years ago, he is more open to it now, though he would need to see the specifics, such as whether it would involve $5 per square foot or $1 per square foot. He emphasized that it should be more than the voluntary $1,000 per door.

Council Member Faessel urged the City Council to continue the discussions, acknowledging the concerns raised by his colleagues about potential costs. He believes more work needs to be done, though he is not certain what that "more" is. He requested that staff return with a variety of suggestions for the City Council to consider. He stressed that moving forward with providing direction to staff would be a mistake, given the amount of time invested by both staff and City Council members. He encouraged the City Council to see what could be agreed upon, even if they did not reach a consensus on everything.

Council Member Rubalcava commented on Council Member Faessel’s remarks, stating that no one is denying the desire to move something forward. She noted that some Council Members have expressed that one of the items being discussed may not be helpful. However, she agreed with Council Member Faessel that the City Council wants to consider some of staff's recommendations.

She pointed out that they have only been discussing one item so far and emphasized that many Council Members have suggested there are other ways to address affordable housing that have not been discussed.

Council Member Rubalcava agreed that it would be beneficial to explore additional options, including ways to fund the Housing Trust and potentially provide first-time homebuyer loans, which she sees as a fast and sustainable way to help people out of poverty. She shared a personal example of how she and her husband were able to purchase their first townhome with the help of the Redevelopment Agency. Lastly, she stated that, based on what she has heard, no one is opposed to creating opportunities for affordable housing development in the City.

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Council Member Rubalcava inquired about who enforces and oversees the affordable portion of projects and ensures those units remain affordable.

Director Ruiz-Stepter confirmed that the Housing and Community Development Department, even for tax credit projects, has a monitoring arm. She mentioned having staff who work with both the Housing Authority and projects that have obtained tax credits. She explained that there is an agreement in place for these cases, and they maintain an affordable housing interest list, which currently has about 25,000 to 30,000 people. She explained that when units become available, the developers inform them, and they match the characteristics of the available unit with people on the waiting list, sending them emails to respond. She further explained that they manage different types of affordable housing, including project-based vouchers, which require maintaining a waiting list, and other affordable units where rent is restricted, which they also monitor.

Council Member Rubalcava inquired if those units would be built by the Housing and Community Development Department, providing the Finamore development as an example.

Director Ruiz-Stepter explained that the units in question were related to the density bonus and senior ordinance, so they did not necessarily result from the Department’s efforts but rather from policy directives. She clarified that the senior ordinance is a land use issue, and the Department monitors compliance with both the senior ordinance and the density bonus.

Council Member Rubalcava inquired about who is monitoring other developments that have the 20% component.

Deputy City Manager White explained that it is also being monitored by the Housing and Community Development Department. He clarified that the difference is that this is not just enforced by City ordinance but by a deed-restricted covenant placed on the land, which requires compliance. He explained that this creates a significant level of enforcement and monitoring done by the Housing Department. He explained that anytime a deed-restricted affordability covenant is applied to a property, which typically occurs through the Density Bonus state law in the form of an affordable housing agreement, it is overseen and administered by the Housing and Community Development Department.

Council Member Rubalcava inquired about the process for oversight of the administration and inquired if there is a policy opportunity for the City to extend the affordability requirement.

Director Ruiz-Stepter explained that the program is voluntary, but they do keep records and provide annual reports to the State on the inventory of affordable housing and which covenants are expiring.

In some cases, when they know covenants are nearing expiration, they reach out to the property owner and attempt to offer incentives, such as financial support for rehabilitation, especially for properties that are older, like those under the senior ordinance that are 30 to 40 years old and could use some updates. She noted that the City has not been very successful in these efforts because, after 30 years of restrictions, the gap between market-rate rent and restricted rent is significant. She explained that most owners, having fulfilled their affordability period, are ready to shift to market-rate rents. She agreed that the preservation of existing affordable units is a priority, but it remains voluntary and ultimately depends on the owner's decision.

Council Member Rubalcava inquired if the City is notified when the affordability is about to expire.

Director Ruiz-Stepter explained that State law requires landlords to notify their tenants a year in advance when the affordability period is about to expire. She noted that the Mayor, City Manager, City Council Minutes of August 20, 2024

and the Housing and Community Development Department all receive those notifications. She explained that it is during that period that staff have conversations with the property owners. She further explained that the voluntary aspect is whether the owners want to participate in any incentives or discussions about extending the affordability beyond the initially agreed period, which is typically around 30 years for older agreements.

In response to Council Member Rubalcava, Director Ruiz-Stepter agreed to provide the number of units set to expire to the City Council.

Mayor Aitken noted that she agrees with her Council colleagues that there are many different policies to consider. She moved to direct staff to draft an affordable housing ordinance and return to the City Council with suggestions on key questions that make the most sense for Anaheim and the development community. She explained that these suggestions would include factors such as the price per square foot, the percentage of affordability to ask of market-rate developers, and the threshold for unit numbers. She compared the process to when they crafted the Housing Trust and asked staff to use their expertise and knowledge to provide guidance. She emphasized that her motion is to give staff direction to draft the ordinance for consideration, and it does not prevent others from exploring additional ideas like a land trust or potential land banks.

MOTION: Mayor Aitken moved to bring back a draft ordinance regarding incentive zoning, potential tax incentives, and other affordable housing policies, second by Council Member Faessel.

DISCUSSION: Mayor Pro Tem Kurtz inquired whether, instead of bringing back an ordinance, staff could return with a few options for what could be included in the ordinance, perhaps two or three different approaches. He explained that she thought it would prevent the City Council from getting stuck debating every detail and ensure they do not end up with no outcome after the next discussion.

She suggested staff present two options that seem to work best for Anaheim, such as a range from 5% to 25% affordability, and also determine what square footage requirements would work best. She expressed a desire to discuss a couple of options before making a final decision on voting.

Mayor Aitken explained her thought process, stating that her intent was to bring back a draft ordinance for the City Council to review. She noted that, for example, if the amount per square foot is not agreeable, they can make a change and move forward for a first reading. However, any change to the draft ordinance would mean delaying the first reading, but she said that is fine and has been done in other contexts. She emphasized that instead of trying to work out all the details during the meeting, she would prefer the team to put together a plan or a range based on their expertise.

Mayor Pro Tem Kurtz requested, for example, that if the ordinance language suggests 10% affordability, but a member of the dais inquired what 15% would be, the team would have the information available.

City Attorney Robert Fabela intervened and explained that one of the challenges staff faces when returning with ordinances vaguely described by the City Council is the difficulty in determining exactly what to propose without any specific direction. He explained that while it is fine for the City Council to vote for an ordinance to come back, it might be more efficient for a single advocate, such as the Mayor, to work with staff to propose something. He noted that the Mayor has agenda-setting authority independently and does not necessarily need a motion by the City Council, although symbolic support would be helpful. He further explained that if the Mayor were to use that authority, staff could work with her to consider all the comments made and propose something more focused. He noted that while it may not be universally accepted, it would be more succinct, making it easier for staff to return with something more precise.

City Council Minutes of August 20, 2024

Mayor Aitken explained that, with all the information available, decisions need to be made. She emphasized that a preliminary decision is whether the City Council wants to even consider the concept of having an affordable housing ordinance. She emphasized that this is a key policy decision that needs to be addressed moving forward. She explained that if the City Council decides not to pursue an affordable housing ordinance, that would be staff direction. However, if they choose to explore the possibility, she would like staff to provide input on a moderate plan that does not hinder development but also engages the development community in the conversation about affordable housing.

City Attorney Fabela remarked that he understands the Mayor is suggesting a vote by the City Council to determine whether to move forward with some form of affordable or inclusionary housing ordinance. He added if the decision is to proceed, it would then be important for staff to have someone to work with, whether that is the Mayor, an ad hoc committee, or another entity, to provide clear direction and policy guidance while also considering staff recommendations. She referenced Council Member Faessel as seconding the motion and noted she was happy to include working in partnership on something.

Council Member Leon requested clarification, suggesting a possible compromise. He proposed directing staff to come back with an ordinance. He explained that, from what he understood, the motion being made would give staff direction to use their expertise and research to draft an ordinance. He suggested that while the staff is doing research, perhaps have the research information available at the next meeting to address Mayor Pro Tem Kurtz’s questions. He asked if that would be a suitable compromise.

Mayor Pro Tem Kurtz remarked that the key point she heard from Director Ruiz-Stepter was that staff would work with the development community to find solutions for Anaheim, which would take some time. She acknowledged that someone had mentioned the City has one of the best housing staff, and she is confident they will conduct thorough research. She noted that there will likely be questions and hopes staff will be prepared to answer by saying whether something does or does not work, and why.

Mayor Aitken remarked that her original motion was to direct staff to draft an ordinance to bring it back to the City Council. She mentioned that she was open to making the motion broader if that was easier, but her original intent was simply to have staff draft the ordinance. She noted that nothing prevents any Council Member from having individual meetings to get clarification or understand the staff's recommendations before the ordinance is presented.

Mayor Aitken confirmed that she is advancing the policy, but she would appreciate having Council Member Faessel work with her to collaborate during the drafting process. She believes it would be more helpful to come back with a concrete recommendation from staff on the four key factors that any affordable housing ordinance should address, focusing on what can be done in Anaheim to support affordable housing without stifling development, while closing the existing gaps.

Council Member Meeks inquired about how many Section 8 vouchers have been added to the City’s program.

Director Ruiz-Stepter reported that the City received an allocation of emergency housing vouchers specifically to address the homeless issue. She noted that this was part of a national allocation distributed regionally, contributing to the program's expansion to around 250. She noted the program has become stagnant.

Council Member Meeks inquired if that weighs into the City’s very low-income housing affordability.

City Council Minutes of August 20, 2024

Director Ruiz-Stepter explained that the challenge with the Section 8 program is that it is budget- based. She clarified that she has two factors to manage which are the number of vouchers available, like a checkbook, for example, 100 vouchers, and the budget. She explained that if the budget only covers 50 vouchers, then that is the number of households they can assist. She noted that the Section 8 program has faced funding challenges, which are tied to federal funding.

Council Member Meeks inquired about the standards for affordable housing. She inquired how the City makes it more attractive for developers to incorporate those in a financially feasible way.

Director Ruiz-Stepter explained that the City does have development standards for affordable housing, and they vary. She mentioned that there is a robust conversation with developers, especially when the City owns the land, provides a loan, or offers project-based vouchers, as they have a significant investment in the project. She explained that, in these cases, the City requires more input and strategic collaboration. She noted that along with providing affordable housing, the goal is to be good neighbors and ensure that the community benefits from a well-designed development that preserves property values. She added that, therefore, they have significant development standards in those situations, though the standards may differ for smaller projects.

Deputy Director Nogal explained that the City has residential design guidelines that were approved by the City Council years ago. He reported that all the developers participating in the City's affordable housing programs, whether through the density bonus or a loan, must conform to these development standards, which are enforced by the Housing and Community Development Department.

Council Member Meeks clarified that she is not suggesting reducing the quality of the exterior of buildings or constructing unattractive structures. She understands the importance of maintaining architectural standards to ensure the project is an asset to the neighborhood. However, she believes that some of the standards for the units themselves may need to be reconsidered. She pointed out that the standards were created decades ago, and housing trends have changed, with market-rate units becoming smaller due to affordability. She expressed interest in reviewing standards to see if changes could make producing affordable housing more financially feasible.

Council Member Rubalcava expressed discomfort moving forward on an ordinance without first discussing what it might include. She provided the Hotel Worker Safety Ordinance as an example, where clear direction was given to staff to base the ordinance on the referendum filed by Unite Here Local 11, which was then enhanced further. She feels that she is being pressured into supporting an ordinance without knowing the specifics. She voiced concerns about creating a blanket affordable housing ordinance. She noted that while she supports the idea, she believes it is important to know the details and be mindful of the policies being crafted for the City. She suggested that the Council should be more transparent about the policies related to housing, rather than packaging it into something that sounds appealing without clear substance.

Council Member Rubalcava remarked that her preference would be for staff to return with recommendations, noting that the third-party study they commissioned mostly affirmed strategies the City has already implemented. She proposed that staff identify three key initiatives and create specific policies for each. She cautioned against taking a blanket approach, likening it to requesting a public safety ordinance without clear direction. She requested her City Council colleagues to consider providing staff with a request to return with ideas for multiple ordinances related to affordable housing.

Council Member Rubalcava requested that Director Ruiz-Stepter elaborate on the City’s milestone as a pro-housing city.

City Council Minutes of August 20, 2024

Director Ruiz-Stepter reported that she shared on her personal LinkedIn profile that the City was awarded the Pro Housing Grant. She reported that only 21 cities in the entire nation received the grant, and for every $11 requested, only $1 was awarded. She explained that she does not post frequently, but it was a matter of pride because the team worked very hard on it. She reported that the HUD Pro Housing Grant focused on cities aiming to reduce barriers to affordable housing. She noted that the application was evaluated based on what the City is already doing and its innovative ideas. She reported that the City requested $7.5 million and was awarded $3.5 million.

Community Investment Manager Clausen explained that the award was based on the success of cities that were already doing a lot, and it is meant to take their efforts to the next level. He noted that the competition was tough, but Anaheim's application focused on the creation of the Housing Trust and improving livability within the City. He explained that the application also explored different policies that have not yet been addressed, looking for ways to increase housing production by using data and community outreach. He noted that the aim was to build on what has been effective in the past.

Council Member Rubalcava noted that it is a great opportunity for the team to come back with specific recommendations that the State suggests. She acknowledged that inclusionary zoning might be one of them and suggested those would be valuable topics for the City Council to discuss. She emphasized the importance of reviewing what types of ordinances the City Council would like staff to propose. She also pointed out the complexity of the ordinance process, with first and second readings, and how significant changes could disrupt the process, requiring them to start over. She suggested it may be a better use of staff time and resources if staff return with ideas and recommendations for the City Council to review one by one, similar to the approach taken with transparency initiatives related to the JL Group report which would lead to better housing policy decisions in Anaheim.

Mayor Aitken clarified that her request is not for staff to come back with a draft ordinance that vaguely addresses general ideas for housing. She explained that the request is specifically for an affordable housing ordinance that focuses narrowly on key decision points where staff expertise is needed. She emphasized that it is very specific and does not prevent anyone from exploring other options or staff from making future recommendations.

Mayor Aitken stressed that this is about a specific policy point, and she does not want it to get lost in broader discussions. She explained that the goal is to have staff input on key decisions so they can move forward. She noted that Orange County has many different affordable housing ordinances, each with various elements that may or may not be included. However, she explained that the City Council cannot have a meaningful discussion until they receive staff recommendations and an ordinance to review. She explained that once the ordinance is presented, the City Council can discuss their comfort levels.

MOTION: Mayor Aitken moved to bring back a draft ordinance regarding incentive zoning, potential tax incentives, and other affordable housing policies, second by Council Member Faessel.

Council Member Faessel clarified that he seconded the motion for purposes of a discussion. He remarked that after listening to his colleagues' discussions, he noted that it seems everyone agrees that something needs to be done, and more action is necessary. He noted that the City Council cannot yet decide whether that should be through inclusionary housing or another approach.

Council Member Faessel acknowledged the points made by Council Member Rubalcava, noting that her position is a bit more open, while Mayor Aitken's approach is more specific. He observed that the City Council Minutes of August 20, 2024

City Council may want more flexibility, while the Mayor is aiming for something narrower. He suggested that allowing staff a bit more flexibility in what they bring forward, based on the various inputs heard during the meeting, would at least provide a foundation for discussion. He expressed concern that without flexibility, no progress would be made, and asked Mayor Aitken if she would be open to more flexibility in moving forward.

Mayor Aitken apologized if she had misattributed something to anyone. She then asked if it would be more beneficial to hold a workshop on an ordinance. She noted that if staff were directed to bring back an ordinance, there might not be agreement on what the City Council wanted to do, including what comfort levels would be for certain policies.

Mayor Aitken suggested that a workshop might be a better approach, where staff could present specific recommendations on what an affordable housing ordinance would look like. She explained that if any Council Members had other ideas they wanted to explore, they could do so during the workshop.

Mayor Pro Tem Kurtz expressed support for this idea, acknowledging that everyone agrees something needs to be done, especially given the housing crisis across the state. However, she emphasized that Anaheim can take action and working together would be the best path forward. She welcomed the opportunity for a workshop to discuss the points in more detail.

Council Member Leon mentioned that while they were discussing the process, he had a few other points of feedback he wanted to share. Before doing so, he asked for clarification, inquiring if Mayor Aitken had made a motion.

Mayor Aitken confirmed she made a motion.

Council Member Leon expressed support for focusing on key decision points and appreciated the idea of returning for a workshop to discuss further and gather public feedback. He then commented on in-lieu fees, agreeing with Council Member Faessel that the current voluntary in-lieu fee system does not work. He emphasized the need for a solid policy that avoids gray areas, so staff is not put in difficult situations when developers ask for specific guidance.

Council Member Leon acknowledged that while the City Council provides policy direction, staff has expertise that the City Council does not, and he encouraged them to conduct research on what would work best for Anaheim, including looking at successful policies in comparable cities. He emphasized the importance of having clear guidelines for developers to avoid confusion.

Council Member Leon highlighted the City's strong performance in market-rate housing but stressed the need to focus on affordable housing, especially for residents who cannot afford market-rate homes. He requested more information on the City's demographics and income levels to better understand the housing needs in districts like his. He concluded that by seconding the motion and expressing support for moving the conversation forward to help Anaheim residents.

MOTION: Mayor Aitken moved to bring back a draft ordinance regarding incentive zoning, potential tax incentives, and other affordable housing policies, seconded by Council Member Leon.

DISCUSSION: Mayor Aitken clarified that the amended motion was to bring back a draft ordinance for discussion at a workshop, rather than presenting it to the full City Council immediately. Council Member Leon agreed with the amendment.

City Council Minutes of August 20, 2024

MOTION: Mayor Aitken moved to bring back a draft ordinance at a workshop regarding incentive zoning, potential tax incentives, and other affordable housing policies, seconded by Council Member Leon.

DISCUSSION: Council Member Meeks noted that she wants to ensure the workshop explores broader options beyond just an inclusionary housing ordinance. While the term "affordable housing ordinance" is being used, she emphasized that much of the discussion has focused on inclusionary housing. She expressed a desire to look at other possibilities, such as tax increment financing, and mentioned that what has been done with the Housing Trust Fund could also be considered part of an affordable housing ordinance. She stressed the need for a broader conversation that includes how to make housing more affordable by adjusting standards and exploring ways to incorporate affordability into projects while maintaining quality development. She reiterated her interest in discussing options like tax increments and other ideas, as she is not ready to fully commit to inclusionary housing at this point.

Mayor Aitken remarked that she was fine with the suggestion, acknowledging that terms like inclusionary housing ordinance and incentive zoning ordinance are often used interchangeably, which can create confusion. She supported the idea of exploring other options at the workshop, including those proposed by staff, such as a potential incentive zoning ordinance. She noted that an affordable housing ordinance is different from the Housing Trust but both are policies that help move things forward. She emphasized that this is not the only solution and welcomed the exploration of other ideas. She encouraged staff to be creative and consider options not yet discussed, even those not included in the report.

Council Member Rubalcava suggested that instead of calling it an affordable housing ordinance, staff should bring back a draft ordinance for incentive zoning. She envisioned the City's website having a section for affordable housing policies, with items like this under that category. She emphasized the need to be thoughtful about the policies brought forward and expressed discomfort with the idea of an ordinance that includes multiple elements, feeling it would be too broad and unclear. She proposed focusing specifically on an incentive zoning ordinance, rather than something broader, to avoid confusion and ensure clarity for voters.

Mayor Aitken acknowledged that the City of Costa Mesa recently passed an affordable housing ordinance addressing similar key decision points, but she agreed with calling it an incentive zoning ordinance and addressing key decision points. She explained that if there are additional topics the City Council would like to discuss at the workshop that would be appropriate. She highlighted the flexibility a workshop would provide.

In response to Council Member Rubalcava, Mayor Aitken explained that the direction is to have staff bring back a draft ordinance on incentive zoning and additionally, review Council Member Meeks' suggestions regarding potential tax incentives. She added if staff has other ideas as part of a broader umbrella, those discussions can be included, but that would be one part of the workshop.

MOTION: Mayor Aitken moved to bring back a draft ordinance at a workshop regarding incentive zoning, potential tax incentives, and other affordable housing policies, seconded by Council Member Leon. ROLL CALL VOTE: 6-1. (AYES: Mayor Aitken and Council Members Kurtz, Leon, Rubalcava, Faessel, and Meeks; NOES: Council Member Diaz). Motion carried.

REPORT ON CLOSED SESSION ACTIONS: None
PUBLIC COMMENTS (non-agenda items): None
City Council Minutes of August 20, 2024

COUNCIL AGENDA SETTING:

Council Member Rubalcava requested to agendize an overview regarding public safety priorities and resources including response times, hours of training required, counter operation, officers on patrol, and potential policy direction. She highlighted requests from her District 3 constituents for increased patrol and questions regarding counter operations.

City Manager Vanderpool requested to work with Council Member Rubalcava on formalizing what the item will be and then under agenda-setting procedures, presenting the item to the City Council.

ADJOURNMENT:

At 8:29 p.m., Mayor Aitken adjourned the City Council in memory of Don Dobmeier.

Respectfully submitted,
Theresa Bass, CMC
City Clerk