Anaheim City Council
March 25, 2025

ANAHEIM CITY COUNCIL
REGULAR MEETING OF SEPTEMBER 10, 2024
The regular meeting of September 10, 2024 was called to order at 3:04 p.m. in the Council Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on September 5, 2024.

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

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 3:05 p.m., Mayor Aitken recessed to closed session for consideration of the following:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: Two potential cases
At 4:03 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.

WORKSHOP: Discussion of Affordable Housing Ordinance and Other Housing Policy Options City Manager Vanderpool introduced Director of Housing and Community Development Grace Ruiz- Stepter to present the Workshop.

Director Ruiz-Stepter reported the workshop builds upon the ongoing efforts that the Council has already undertaken to address the housing needs in the City. She 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. She noted the current affordable housing strategy for Anaheim is built on a foundation that seeks to address three critical needs, subsidies for the City’s most vulnerable population, stability to help Anaheim households remain in place, and supply to meet current and future demand necessary to support the economic growth and viability of the City. She reviewed the current subsidy strategies including the Section 8 voucher program administered by the Housing Authority which provides over 6,300 vouchers. She added the vouchers are used to access units in the open market and also support the Housing Authority’s project-based developments. The City offers other forms of subsidies including short-term rental assistance and down payment assistance programs.

Director Ruiz Stepter highlighted the City’s stability strategies including eviction prevention assistance, funds available through COVID-19 relief programs, the Senior Safety Net Program, and City Council Minutes of September 10, 2024

partnerships with local partners to ensure robust tenant education programming for renters. She noted Item No. 16 on the agenda offers an opportunity to discuss tenant protection laws and provide direction to staff.

Director Ruiz-Stepter noted the focus for the workshop is on the supply side, adding Anaheim's programs have been robust and centered around gap financing and strategic acquisitions, carried out through Request For Proposals (RFP) and maintained as assets for the Housing Authority through ground leases. She added that current supply-driven programs are dedicated towards 100% affordable housing developments. She highlighted the City Council’s establishment of a Housing Trust Fund to deposit flexible funding sources to help advance the City’s programs.

Director Ruiz-Stepter presented policy options to advance financing including tax increment financing and an affordable housing development fee. She added the Redevelopment Agency was the most successful Tax Increment Financing vehicle which recapture increases in property taxes that then can be used to advance local needs. She explained currently, financing tools that are available for affordable housing are a bit complicated requiring partnerships, however, participation by taxing agencies is voluntary. Tax increment programs are heavily reliant on the market, market dynamics, and best suited for long-term financing due to its complexities. She emphasized that staff is committed to continuing to research the programs and present one as opportunities present themselves,
Director Ruiz-Stepter reported affordable housing development fees are another policy strategy used in many locations. She noted this strategy has already been contemplated in the Sixth Cycle Housing Element, as Policy Strategy No. 1. She explained the City will apply a development fee to all sites identified on Table B which identifies all the candidate sites which require a General Plan Amendment, which the City believes will serve to meet Regional Housing Needs Allocation (RHNA) obligations. She reported that the purpose of the fee is to offset the impact of new development on the need for future affordable housing. She added the fee is calculated and often based on the gap between what lower-income households can afford to pay and the cost of developing new housing units and does not require production. She noted since the strategy is already present in the Housing Element, there is an opportunity to expand by potentially requiring all properties requiring a general plan amendment, beyond those listed on Table B, be included in the impact fee collection program.

Additionally, she proposed the City Council could expand the requirements to include all residentially zoned developments for 40 or more units. She provided the City of Placentia as an example.

Director Ruiz-Stepter transitioned to production programs noting the goal of a production program is to create units. She highlighted the City’s current production programs including the Motel Conversion Ordinance and the State's Density Bonus program, which allows developers to build more than what would be normally permitted. She explained additional policy options that the Council could consider for production programs, are an inclusionary zoning requirement, which the Council has already discussed, and potentially exceeding State Density Bonus requirements. She reported inclusionary zoning’s purpose is to create more economically diverse and inclusive communities through a set aside program. She added, in high demand markets, it can be a useful strategy to prevent displacement of tenants as units would be included in new housing, by requiring a certain percentage of housing for low to moderate income families integrated into market rate developments. She reported an alternative option to inclusionary zoning are in-lieu fees. She noted key decision points for inclusionary housing are applicable product types, applicable project size, percentage of required affordable units on-site and affordability level, and in-lieu eligibility/amount and/or on-site production requirement. She provided a comparison of local inclusionary zoning programs in the cities of Costa Mesa, La Habra, and Santa Ana. She highlighted the differences in each policies beginning with Costa Mesa, where the policy applies exclusively to the rental product, triggered when 50 or more City Council Minutes of September 10, 2024

units are built, and a $10 per square feet in-lieu fee. She reported in La Habra, the program applies to both rental and homeownership, and their policy is triggered when a developer is building 10 units or more, and levels of affordability for rental products, 6% at very low and 9% at moderate. She detailed Santa Ana’s policy which applies to rental and homeownerships, is applicable at five units which is applied to both rental and homeownership, and a sliding scale.

In response to the City Council’s previous requests regarding an inclusionary policy in Anaheim, Director Ruiz-Stepter presented a hypothetical framework based on staff’s research and other local policies. She explained small projects were defined as 40 units or less, and are excluded from the policy. She added that developments of a smaller scale are more of a cost burden under inclusionary zoning policies. She noted under this framework a smaller percentage requirement on for sale products, 5% across the board, is recommended to guard against negative impacts on smaller developments due to the Council’s interest in homeownership. She noted this policy suggests a higher in lieu fee for only rental product, and was included because the goal of a production policy is to actually create units in an integrated model. She added the affordability in the sample addresses the income levels where the need for housing supply is greater which includes lower income categories, 80% of Area Median Income (AMI) or below, and the very low, at 50% of AMI. She explained staff provided a hypothetical $10 in-lieu fee based on other local policies, continued development in the City, and achieving the policy goal of trying to support affordable housing.

Director Ruiz-Stepter presented additional policies including a council policy, outlining that for 100 affordable housing developments financed by the Housing Authority, the Housing Authority would not be charged for the street abandonment. She noted the City could expand to a much larger street abandonment program that would take a portion of the sales from private streets in private development and deposit those funds into the Housing Trust Fund. She referenced other jurisdictions including the City of Sacramento, which We also looked at other jurisdictions that have innovative programs, and we found the Sacramento model, which excludes fees for a 100% affordable housing development. She noted the City of Sacramento set aside $3 million for that program in an effort to reduce the cost of producing affordable housing. She added staff will continue to research additional policies to find the best fit for Anaheim. She expressed excitement over the newly created Housing Trust Fund and noted the City was recently awarded a Pathways to Removing Obstacles to Housing (PRO) housing grant, in the amount of $3.5 million, to deposit into the Housing Trust Fund. She noted the funds will also be used to establish an Anaheim Livability Lab to reduce barriers, for creation of affordable housing.

PUBLIC COMMENTS ON WORKSHOP:

Paul Hyek reported he will become a new resident to the City. He cited multiple code violations for his current housing and highlighted a need for lowering security deposits. He expressed his interest for serving on the Housing and Community Development Commission.

Adam Wood with the Building Industry Association expressed concern with the proposed policies including increased taxes or fees. He referenced an article which identified the solution to a housing shortage is to produce more housing, with no mention of taxes or fees. He noted regulatory hurdles such as inclusionary policies will halt housing production. He expressed that an in-lieu fee is more beneficial than an on-site requirement for housing ownership. He referenced the City of Costa Mesa’s study session presented by their consultant Keyser Marston, who have also been retained by the City of Anaheim, which compared the two policies. He explained that the on-site requirement will produce fewer affordable units with no matching funds to apply towards production.

City Council Minutes of September 10, 2024

Cecil Jordan Corkern commented on concerns over school shootings. He called upon the City Council to discuss the safety rules and regulations for Disney.

Marc Herbert thanked the City Council for receiving the appraisal on the Midway project. He expressed concern over the use of out-of-date appraisals and determination of the proper estimated value. He cited concerns over the public’s ability to fact check when the appraisal ranged from $2.1 million to $2.3 million, however, the City sold the Midway property for $1.6 million. He referenced a 2018 staff report which indicated the City’s housing crisis, compared to the 178 affordable units the City permitted in 2023. He questioned why demolition costs were not covered by the developer for the Midway project and noted the costs should have been factored into the sale price. He referenced the most recent housing report which indicated a shortage of 9100 affordable units, explaining that the City Council should recognize those issues when evaluating sale prices.

City Clerk Theresa Bass reported no electronic public comments were received related to the Workshop.

DISCUSSION: In response to Council Member Meeks, Director Ruiz-Stepter reported an impact fee is intended to offset the need for future affordable housing. She explained that, in theory, more population at market rate will create a demand for lower-income individuals to participate.

Council Member Meeks expressed hesitation with unfunded government mandates which impact development. She provided examples of policies she is interested in pursuing beyond inclusionary housing including the Housing Trust Fund which has already received contributions from the DisneylandForward project, contacting various organizations to provide revenue streams for housing for their members, fundraising and outreach to large businesses and conventions for donations, and seeking grant fund opportunities. She also requested research on how to reduce the cost of building units and not increase costs by charging an in-lieu fee. She reiterated her request to have the City Council evaluate affordable housing standards including the size of the units, noting that tenants will not relocate to smaller, more expensive subsidized units. She requested to urge the State to accelerate solutions to the insurance crisis which has led to increased insurance rates which have affected home prices and the ability to build. She suggested working with developers on identifying State and local burdens on housing development. She noted the City should evaluate the policy as a tax increment and work with State legislators to develop a State tax increment program that funds housing. She explained that an in-lieu fee would be a burden on the middle class who is not receiving housing assistance. She stated for that reason she would not be supporting in-lieu fees or inclusionary housing and suggested exploring different opportunities to provide housing in the City.

In response to Mayor Pro Tem Kurtz, Deputy City Manager White explained under the previous City Council, the draft Housing Element identifies the establishment of an affordable housing development fee as a housing strategy. He noted the policy identifies the need for, or the desire, to generate revenue to support affordable housing. He added the proposed policy would apply to sites that were identified in the Housing Element, where the City would be taking on the cost and the administrative processing of a General Plan Amendment and updating the City’s Zoning codes. He added the City would be creating the value being added to the land by updating the City’s Housing Element. He explained in those cases the policy states that it would be appropriate for the developer to participate and give back some of that value that has been realized with by the City's actions. He added it also identifies an option that the policy and fee could be expanded to sites that are outside of the City's General Plan efforts for projects where a developer is requesting rezoning or up zoning of a piece of property that increases the value of the land, that there would be some participation through the form of a development fee as well.

City Council Minutes of September 10, 2024

Mayor Pro Tem Kurtz inquired if the State partially accepts portions of the Housing Elements or do they require the entire document to be submitted.

Deputy City Manager White confirmed State will not accept the document, however, they do provide comments based on areas where they have concerns or disagreements in terms of the City’s policies or approach. He added the State has not raised concerns or comments related to an affordable housing fee, which may be interpreted as the State showing no concern.

In response to Mayor Pro Tem Kurtz, Deputy City Manager White confirmed the language has already been reviewed by the previous Council and accepted for submission as part of the City’s Housing Element.

Mayor Pro Tem Kurtz inquired if staff considered any other percentages besides 15% for the affordable units on-site.

Director Ruiz-Stepter confirmed that the percentage was strictly hypothetical and staff did review other cities' policies. She added the percentage is a policy discretion and that a number of cities begin with 10%, with some at 5% for homeownership. She added that 15% is a safe option according to State law, but nothing that prevents agencies from going lower.

In response to Mayor Pro Tem Kurtz, Deputy City Manager White stated it would be impossible to determine whether building has been impacted by different percentages for inclusionary housing. He noted because building cycles are sensitive to interest rates, land values, and other development factors it would not be defensible to look at a causal relationship. He provided an example for Anaheim’s decreased housing production due to economic trends, construction prices, and inflation without any change to inclusionary housing.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter confirmed Deputy City Manager White’s comments. She noted the City Council may receive letters from outside agencies comparing housing production in other cities from their inclusionary housing fees, however, there are additional factors that contribute to production.

Council Member Rubalcava requested to reexamine the City’s options for stability. She requested additional information on how the City is preventing homelessness.

Director Ruiz-Stepter highlighted the $45 million the City received during the pandemic to address eviction prevention, with $2 million to $3 million dedicated to utility assistance. She added those funds will be available up to 2025 and discussions have taken place to replace those funds, including the City’s Livability Lab. She highlighted the Senior Safety Net Program which is unique to Anaheim which combines case management, short-term rental assistance, and the ability to funnel individuals into longer, short-term rental assistance up to 24 months, including the Section 8 program. She reported the City has built upon a Tenant Education Program, which will be covered more in-depth under Item No. 16, to discuss new state laws and the need for education. She added the City has already funded a Fair Housing contract, which has been in place for 30 to 40 years and established relationships with legal aid, with the understanding that additional relationships can be established specifically with the apartment associations.

Council Member Rubalcava expressed appreciation for the programs implemented and highlighted how the programs have benefitted District 3 constituents. She requested information on how in-lieu fees are calculated.

City Council Minutes of September 10, 2024

Director Ruiz-Stepter explained there is generally a study that evaluates the differential between the cost of a market rate and the cost to produce an affordable housing unit, which produces a generally high number. She added jurisdictions have not requested that differential, providing the example of Costa Mesa, where the study produced an in-lieu fee of $19.50 per square foot but adopted $10.

In response to Council Member Rubalcava, Director Ruiz-Stepter reported funds generated from an in-lieu fee would be based on the development size, the square footage of the units, and then the $10 is applied to that, which would vary by production time.

Council Member Rubalcava inquired if a developer opted not for in-lieu fees instead of producing affordable units, if the City would concede parking requirements. She added parking is a quality of life issue citing concerns in District 3.

Director Ruiz-Stepter explained it would not strictly under an inclusionary housing zoning ordinance.

She added there is a close relationship between inclusionary housing and density bonuses, particularly for multifamily. She noted that a developer may evaluate what the differential would be to pay the in-lieu fee or request a density bonus. She added sometimes those economics will result in the developer requesting the density bonus for the concessions, but parking reductions and other types of concessions reside on the density bonus.

In response to Council Member Rubalcava, Director Ruiz-Stepter explained staff would recommend the funds are deposited into the Housing Trust Fund to support programs that will be presented to the City Council. She added the funds generated from the in-lieu fee would be used for housing purposes.

Council Member Rubalcava requested further explanation on how inclusionary prevents displacement.

Director Ruiz-Stepter clarified inclusionary provides an opportunity for low-income families to potentially be included as part of improvements in the area because it does provide units at a price point families may be able to afford, rather than having to leave. She added it is considered a displacement strategy, particularly for places experiencing rapid growth. She provided the City of Inglewood and the area surrounding the Sofi Stadium as an example.

Council Member Rubalcava referenced the local inclusionary zoning programs presented, noting the models may be too complicated for the City of Anaheim, which may further burden developers. She suggested a threshold of 50 units, limited to rental, and with a competitive in-lieu fee. She recognized the Council’s responsibility to act but noted that in speaking with her constituents, they do not feel sorry for developers. She requested a policy limited to multifamily, larger developments, with parking protections, and a clear understanding of how in-lieu fees are spent to produce housing beyond affordable housing. She requested a policy separate from the inclusionary housing policy addressing no-cause evictions that prevents displacement during the school year for families who have children, extending the notification period, and then requiring landlords to pull permits before displacing individuals, similar to the City of Santa Ana’s policy.

Director Ruiz-Stepter acknowledged Council Member Rubalcava’s comments and suggested additional discussion during consideration of Item No. 16.

Council Member Diaz explained no city has resolved the housing crisis because private sectors produce housing. He added that the market sends signals to the consumers and to the producers for additional needs. He explained that by interfering with the market, the government is tweaking the City Council Minutes of September 10, 2024

end result, which produces less housing. He added the most successful program which produced affordable housing in the State was the Redevelopment Agency. He explained when Redevelopment Agencies were dissolved the responsibility to produce low-income housing fell on cities. He reiterated that the private sector produces housing and not cities. He stated that if the City increases fees, housing production will slow down. He added that increasing fees and regulations for sale prices will increase while rental prices have already been limited by 10% by the State. He cited additional factors that limit affordable housing production including single residential zoning, NIMBYs, and interest rates. He echoed Council Member Meeks’ comments to decrease regulations and incentivize the private sector to produce housing and not restrict them.

Council Member Leon inquired how an inclusionary housing policy would support mixed-income neighborhoods.

Director Ruiz-Stepter explained the goal of an inclusion area housing policy is to integrate units within a mixed development to include market rate along with lower income households. She reported the in-lieu fee allows developers to opt out of doing that. She noted the premise of an inclusion area is that it would create an opportunity for market rate and lower income to co-habit. She reported the Housing Authority currently creates 100% affordable housing development, and the proposed in-lieu fee would be an expansion of what the Housing Authority does with blended market rate communities.

In response to Council Member Leon, Director Ruiz-Stepter explained that in-lieu fees are a source of financing as another revenue source. She referenced Council Member Diaz’s comments adding since the Redevelopment Agency as abolished the City has struggled to find other revenue sources. She explained the in-lieu fee provides another means by which the City can carry forward the ability to help incentivize affordable housing development. She summarized the in-lieu fee creates revenue but is less predictable in terms of funds generated based on market conditions.

Council Member Leon requested information on the impact some of these policies have had on the financial feasibility of large-scale developments in cities that have adopted an inclusionary housing policy.

Deputy City Manager White noted that every dollar counts towards affordable housing developments.

He explained that for a 100-unit development, if the fee was $5 per square foot, for an approximately 900 square foot two bedroom apartment, approximately $4,500 per unit would be generated, which would be $450,000 for a 100-unit apartment building. He added based on the market and permits required, the City would be required to provide a local match of approximately $5 million to $6 million to support an approximately 100-unit affordable housing development. He explained if every 100 units is producing approximately half a million dollars, approximately 10 market-rate developments would be required to support affordable housing production. He added those figures could change significantly from year to year based on all of the other variables that go into the housing market, but over time, those variables can stabilize and the City would use those figures to produce units based on income and revenue to the City.

In response to Council Member Leon, Director Ruiz-Stepter report the City utilizes a policy where the developer can choose to participate or not. She noted the default is about $1,000 a door. She added developers have opted out of the program but will speak to the Housing and Community Development Department. She noted in some cases when developers require a density bonus, the units are produced. She reiterated in terms of the financing piece, the program is voluntary.

City Council Minutes of September 10, 2024

Council Member Leon inquired since the policy is voluntary, whether developers have requested the City provide a contribution amount to approve the project.

Deputy Director Nogal explained the City does not have an ordinance or a mechanism that would allow staff to ask that question. He noted a precedent has been set with some projects regarding contributions and that is how the City has been able to collect fees through the voluntary program.

In response to Council Member Leon, Director Ruiz-Stepter explained the City would not have any potential unintended consequences for not adopting an inclusionary housing policy. She explained there are benefits and disadvantages to the policy. She reported based on RHNA, and real data, there is a need for product rental at deeper affordability levels. She added because of the Housing Authority’s limited resources, assistance, whether it be through a tax increment, or more funding through the State, whether it's participation by developers who are building in the City, requires multiple sources to make a difference in affordability issues.

Council Member Leon highlighted the RHNA allocation numbers for the Fifth Cycle, confirming from 2013 to 2021 the allocated unity for very low income and low income were 2100 units.

Deputy City Manager White clarified the RHNA numbers are identified needs without the expectation that the units will be built. He added that to Council Member Diaz’s point, RHNA identifies that the City is not a housing producer. He mentioned that RHNA can be viewed as a need that is identified as a shortfall in the overall market.

In response to Council Member Leon, Deputy City Manager White explained the numbers can be considered an inspiration.

Council Member Leon outlined the numbers presented in the Fifth Cycle including, 2,100 for very low- income or low-income units, which produced a little over 300, and then 2,500 units for market rate, which the City produced 8,000 units. He explained he disagreed with some of his Council colleagues adding that a policy that outlines the expectations and requirements of a developer actually makes it easier for them. He noted that while developers can contribute financially to a project, the City can incentivize market-rate housing developments to meet affordable housing targets. He emphasized that in-lieu fees and an inclusionary housing policy provide an option that expedites the approval process, because developers have a clear understanding of the requirements. He added that the fees collected can be strategically invested in neighborhoods, and deposited into the Housing Trust Fund, which can then be used for different things that would help the City’s residents, and not limited to building a new affordable housing project. He added the benefit is that the policy can be adjusted by the City Council based on the market and gives the Council the flexibility to respond while still ensuring that the policy remains effective and still encouraging development in the City. He expressed support for presenting an ordinance that allows the City Council to assist developers with development but also helps provide more opportunities for the City’s residents.

Mayor Aitken clarified the purpose of the Workshop was to gather a consensus from the Council on whether to return with an inclusionary housing ordinance, and direction to staff on what to include, considering the City Council's goal is to create more affordable housing. She acknowledged conversations with the development community who recognize those priorities while being mindful of in-lieu fees or on-site development requirements. She added the intent behind a policy would be to deposit funds into the Housing Trust to address stability and production. She noted that an in-lieu fee, in the range of $10, gives the City the ability to apply for grants for matching funds. She stressed the importance of having a straightforward policy that the developers understand and is equitable. She recognized that some developers may not want to have on-site units and that an in-lieu fee may be City Council Minutes of September 10, 2024

preferable. She added even at $10 per square foot, those funds can help move projects forward, with the for-sale residential communities building at the moderate level and build low and very low income housing. She requested input from the Council on direction to staff to draft an ordinance to present to the City Council for consideration. She recognized staff has done a great job in providing the options to the City Council and explaining the information.

Council Member Faessel noted his and the Mayor’s service on the Ad Hoc Committee. He noted the developer community both affordable and market rate have expressed the need for a level playing field. He added the City is unique compared to many Orange County cities including the ones presented because of its Housing Authority. He mentioned he was not supportive of a voluntary fee which requires additional staff time and negotiation with housing developers which the City has accepted $1,000 a door. He expressed his preference for the fee to be applicable to for-sale developments due to the State’s policy regarding land value and zoning changes. He expressed his support for an in-lieu fee which has also been supported by the Building Industry Association.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter explained staff would conduct more research at the Council’s direction to determine comparability for land use donations and in-lieu fees.

Mayor Pro Tem Kurtz expressed her interest for staff to conduct research but deferred to her Council colleagues on whether they share the same interest.

Director Ruiz-Stepter added developers may be less likely to donate land but noted it could be a possibility.

Mayor Pro Tem Kurtz supported an in-lieu fee and moving forward with an ordinance that can be discussed at an upcoming meeting.

Council Member Rubalcava expressed her support for returning with an ordinance. She expressed concerns with the complexity of the hypothetical inclusionary zoning framework, suggesting the project size up to 50 units and then 50 units and above. She expressed concern over land donation off-site and provided the SALT Development project as an example. She requested that the City is mindful of land valuation and land swaps. She recommended a competitive in-lieu fee, suggesting a fee of $6.50 like the City of La Habra or less. She suggested avoiding for-sale developments due to concerns with covenants being tied to affordable housing. She noted she and her husband purchased their first property through the Redevelopment Agency and its First Time Homebuyer Program, adding the pathway out of poverty is through homeownership. She recommended avoiding the inclusionary in-lieu on for-sale properties. She added the Council does not want to hinder development but understands the need to create more affordable policies that should outline how the in-lieu funds are spent. She disagreed with the RHNA number of units allocated to the City compared to other cities with the understanding that the numbers are aspirational.

Director Ruiz-Stepter acknowledged Council Member Rubalcava’s comments. She noted for the hypothetical policy, staff wanted to present all the options to allow feedback from the City Council.

Council Member Rubalcava noted that sale development is good, especially in District 3, where 30% of residents are homeowners and 70% are renters, highlighting the numbers vary in other districts.

She recognized the need for more for-sale housing developments. She highlighted the value in the City developing properties that can be purchased by district residents and offset with first-time homebuyer programs through the multifamily dwelling unit in-lieu fees. She recommended including that in the in-lieu fee policy to determine how funds are spent.

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Council Member Leon deferred to his Council colleagues on the language for a potential ordinance He requested that when the ordinance is presented that staff include additional data on what policies have and have not worked for other cities, including hypothetical in-lieu fee prices, and the difference between for sale and for rent. He recognized the Council will continue to have lengthy discussions but can use additional information to best assist the City’s residents and meet the City’s goals.

Mayor Aitken confirmed with staff if they can proceed based on Council’s discussion. She requested Council Member Faessel’s input and thanked Mayor Pro Tem for her guidance. She added the provisions that the Council was uncertain of including the in-lieu fee and for sale versus rental developments can be highlighted for additional discussion when the ordinance is presented. She added she will follow up with the City Attorney’s Office on whether potential revisions to the proposed ordinance would require an additional first reading.

INVOCATION: Pastor Jason Steele, Grace Bible Church
Council Member Meeks announced September 11th is Patriot Day honoring the memory of those lost on September 11, 2001. She added although it has been two decades since the tragedy, the bravery, resilience, and unity from the first responders, citizens, and families will be remembered. She noted the flag represents more than the country, and represents values of freedom, courage, and unity in the face of tragedy. She requested to reflect on the strength and spirit behind the country and commit to honoring those who lost their lives on September 11, 2001.

FLAG SALUTE: Council Member Natalie Meeks
PRESENTATIONS: Recognizing September 2024, as Service Club Month Mayor Aitken reported Service Club Month is a time to recognize those that volunteer in the community and acknowledge their work and dedication to service clubs in the community and beyond. She highlighted the Kiwanis Club, Anaheim Rotary Club, Anaheim Hills Rotary Club, Lions Club, Anaheim Beautiful, Assistance League, Ebell Club, Anaheim Veterans of Foreign Wars, El Bekal Shriners Group, and American Legion Post 72. She noted service clubs play a vital role in Anaheim and difference in the lives of the communities they serve by supporting charitable causes and fostering a spirit of service. She encouraged the public to get involved with the number of service clubs in the City. Members of the Kiwanis Club, Anaheim Rotary Club, Anaheim Hills Rotary Club, Lions Club, Anaheim Beautiful, Assistance League, Ebell Club, Anaheim Veterans of Foreign Wars, El Bekal Shriners Group, and American Legion Post 72 accepted the recognition.

She highlighted that in honor of Patriot Day, American Legion Post 72 will be hosting an event on September 11 at 6 p.m. A member of the American Legion Post announced they are located at 936 N. Lemon Street and invited the public to attend to remember veterans and the events that transpired on September 11, 2001.

Recognizing United Across Borders Foundation
Mayor Aitken reported President and Founder of United Across Borders Foundation Erika Robles has been dedicated to transforming lives and building bridges across communities for more than a decade. She added the organization has championed causes across the nation to bring support, resources, and solidarity to those in need. She reported the foundation provides grocery assistance, diapers, and medical supplies and was instrumental during the pandemic to help many residents in Anaheim. She noted the organization’s mission is that no one should go to bed hungry. She thanked United Across Borders for their contribution and unwavering commitment to the City.

City Council Minutes of September 10, 2024

Ms. Robles thanked God, her family, and her team. She provided her comments in Spanish.

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

Recognizing September 11, 2024, as Patriot Day
Nick Colonelli, Battalion Chief, Anaheim Fire & Rescue accepted the recognition on behalf of Fire Chief Russell.

Mayor Aitken announced, on behalf of the City Council, their thoughts and prayers are with all of the Anaheim Fire & Rescue employees fighting the ongoing fires in Southern California.

Battalion Chief Colonelli thanked the Mayor and noted it has been very busy for their employees who are doing great work. He noted the City continues to remain fully staffed.

Recognizing September 17, 2024, as National Voter Registration Day Heather McDaniel, Community Program Specialist, Orange County Registrar of Voters accepted the recognition. She reported National Voter Registration Day serves as an important reminder to register to vote. She encouraged eligible voters to register to vote and referred individuals with additional questions to the Orange County Registrar of Voters website for more information.

In response to Mayor Aitken’s inquiry, Ms. McDaniel reported individuals are eligible to register to vote up to and on Election Day.

Recognizing September 17 - 23, 2024, as Constitution Week Cindy Ferguson, Constitution Week Chair, Mojave Chapter, National Daughters of the American Revolution accepted the recognition. She thanked the City Council for the recognition. She reported from September 17 to September 23, Constitution Week will commemorate America’s most important document which is a testament to the determination of Americans to maintain their liberties and freedom and ensure unalienable rights to every American. She added the Daughters of the American Revolution started the tradition with the goal of emphasizing citizens' responsibility for protecting and defending the Constitution, reminding individuals that the Constitution is the basis of America’s heritage and way of life, and encouraging the study of the historical events that led to the framing of the Constitution.

Recognizing September 2024, as National Suicide Prevention Month Nancy Cooper, American Foundation for Suicide Prevention accepted the recognition. She reported the American Foundation for Suicide Prevention’s (AFSP) mission is to save lives and bring hope to those affected by suicide. She noted AFSP was founded in 1987 by a group of individuals who have lost someone to suicide. She noted it is the largest organization in the United States solely dedicated to suicide prevention. She added AFSP is a volunteer-based healthcare organization with chapters in all 50 states, with the Orange County chapter being founded in 2015. She noted their research has found that suicide can be prevented and thanked the City for joining the cause.

Council Member Faessel reminded the public that the effects of September 11 impacted Anaheim directly. He noted the pilot on Flight 77, Charles “Chic” Burlingame, was an Anaheim High School graduate, Class of 1967, along with his wife Susan. He that the tragedy, while it occurred far from Anaheim, did impact the City.

ADDITIONS/DELETIONS TO THE AGENDA: None
City Council Minutes of September 10, 2024

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 Theresa Bass reported that a total of six (6) public comments were received electronically prior to 1:00 p.m. [A final total of eight (8) public comments were received electronically, distributed to the City Council, and made part of the official records]. – See Appendix.

Victor Cao, Senior Vice President of the California Apartment Association, addressed the City Council on Item No. 16. He mentioned the City, along with other cities across the nation, is grappling with housing shortages causing a strain on affordability. He noted the report contains information related to protections to tenants from landlords. He highlighted the California Apartment Association represents 60,000 individuals, over 13,000 member companies, which focus on compliance. He focused on the City Attorney’s expanded enforcement authority related to the Tenant Protection Acts, adding few cities have pursued litigation against bad actors in the industry. He noted the report highlights Orange County cities with local protection ordinances, adding that the Association finds those protections unworkable and a restraint on City resources. He cited the City of Santa Ana whose resources are dedicated to salaries and contractors and experienced a 44% increase in homelessness, and the City of Costa Mesa which relies on one-time funds. He announced the California Apartment Association remains a dedicated partner to the City and offered the Association’s services to provide announcements to tenants on their protections.

David Che reported that he represents Caodai Center, a non-profit religious organization, established in 1993. He requested the City’s assistance on a Code Enforcement case related to the property at 808 W. Vermont. He provided background information on Caodai which preaches that everyone is from God, and through love, justice, and compassion there will be peace on earth. He reported the Caodai Center advocates for religious tolerance and inclusivity as well as supporting one another. He highlighted the many interfaith seminars the organization has held and their work assisting those in the community. He reported in July 2022, there was a fire sprinkler failure and then another in April 2023 which flooded the entire building. He requested the City Council’s assistance with the ongoing Code Enforcement case.

Mayor Aitken referred Mr. Che to Deputy City Manager Ted White to discuss the case.

Dan Scanlon announced he is a proud 45-year Anaheim resident and expressed his gratitude to the City leaders especially those with the Fire & Rescue Department. He reported two fires he observed and thanked the City Council for honoring the individuals who have been assisting. He noted that Anaheim residents recognize the need to produce more housing and support those efforts. He requested the City Council consider the dangers of rapid growth. He provided an example of a development off Santa Ana Canyon Road and evacuation concerns. He referenced a workshop held where the developer addressed concerns over evacuations, stating that individuals would shelter in place. He requested that the City Council consider those hazards when approving developments.

John W. Spring reported he had been approached to prepare reports during the Kennedy Administration. He noted he is still conducting research on mind control that was developed during the Cold War. He outlined the effects of mind control including permanent, severe brain damage. He added he has tried to report his concerns to an Anaheim Police detective and has not received a response.

City Council Minutes of September 10, 2024

Francisco Rosas addressed Mayor Pro Tem Kurtz and the Mayor regarding tenant protections in District 4 for the Hermosa Village Apartments. He reported developers are renovating apartments being renovated, and evicting tenants, and then renting the units at higher rates. He explained the City Council has not responded to tenants' complaints. He called upon the Council to protect tenants to prevent evictions causing a 44% spike in homelessness. He added the City has abundant resources where the City should not have issues with homelessness and affordable housing. He suggested an entertainment or gate tax to alleviate the affordable housing crisis. He recommended opening the National Guard armories as shelters for homeless veterans to escape the heat and avoid sleeping on benches and being arrested.

Bryan Kaye highlighted the presentations and recognitions awarded. He recommended recognizing Yesenia Rojas, Donna Acevedo, and Dennis Fitzgerald for trying to make the community safer. He referenced an incident at the Lincoln Terrace apartment complex which caught fire and how he assisted with evacuating apartments. He emphasized he wishes to be a positive and productive part of the City instead of an adversary.

Eymi Arellano Castro (translation: Spanish) reported she is a District 3 resident with ties to District 5.

She noted since July, the Balsam neighborhood has been reporting bulky items through the Anaheim Anytime app but was told it could not be done. She spoke with staff to address her concerns and last week the majority of the items were picked up with three items remaining. She requested translation services at District 3 meetings to allow resident inclusion and participation.

Mayor Aitken requested if Public Works can visit the neighborhood to ensure residual bulky items are removed and if they can visit the neighborhood on a regular basis.

City Manager Vanderpool referred the resident to Deputy Public Works Director Dan Debassio who can make those arrangements.

Council Member Rubalcava added she went on a ride along with Police Department Lieutenant Pena the weekend prior and reported bulky items via Anaheim Anytime. She reported the majority of those items had been collected and thanked the Public Works Department for doing another visit.

Ruben Soto recited a verse from Romans 13. He reported injustices by the Anaheim Police Department and the court.

Marc Herbert suggested a review of the City’s website and reported issues with viewing meetings. He addressed the housing crisis and provided data from the Affordable Housing Strategic Plan and Fifth Cycle Housing Element, noting the City has not reached its affordable housing production goals. He added the City lost $3 million during the past year because the Housing Element is not in compliance.

He suggested meeting production goals and addressing funding rather than programs and tools.

COUNCIL COMMUNICATIONS:

Mayor Pro Tem Kurtz requested adjourning the meeting in memory of William “Bill” O’Connell Sr., a member of the community who will be missed. She highlighted and shared photographs of City employees working in extreme heat conditions, including the Anaheim Public Utilities, Fire and Rescue, and Public Works teams. She thanked Public Utilities for restoring service to customers whose electricity went out in District 4, and she thanked General Manager Dukku Lee for being there Sunday night at 10:00 p.m. to make sure employees were taken care of. Mayor Pro Tem Kurtz thanked Anaheim firefighters who are deployed to the Airport Fire. She noted that all fire stations are City Council Minutes of September 10, 2024

fully manned, and she thanked the families of all firefighters for the sacrifices they make when firefighters are not home. Mayor Pro Tem Kurtz thanked Public Works, Code Enforcement Officers, Park Rangers, and all City employees working outdoors in the 113-degree heat to maintain all City services. She also thanked the Anaheim Police Department for keeping everyone safe in the heat.

Council Member Leon thanked the 36 Anaheim firefighters and personnel assisting with the Airport Fire and wished them a safe and prompt return to Anaheim. He noted that OC Animal Care can shelter small pets for residents who are under mandatory evacuation orders at 1630 Victory Road, Tustin. For more information visit https://www.ocsheriff.gov/AirportFire. He thanked the Anaheim Public Utilities team for providing 40 Dusk-to-Dawn security lights in District 2 neighborhoods near Nutwood Street. Public Utilities has also been installing additional lighting in certain sections of the railroad near the Nutwood Street neighborhood. A City contractor will also be removing trees and shrubs within the future Nutwood Park area. He congratulated all the graduates of the Emprendedor@s Program. The program is a partnership between the Asociación de Emprendedor@s and the City’s Economic Development Department offering Spanish speaking entrepreneurs vital business tools and information to start their businesses. He attended the ribbon cutting for the new Jan and Ross Billings Innovation Center at Magnolia High School, featuring state- of-the-art facilities designed to empower students with the tools that they need for success. He congratulated Principal Chau, the Magnolia High School faculty, and the Anaheim High School District for their ongoing efforts in revitalizing the campus. Council Member Leon invited everyone to the unveiling of the Little Arabia District freeway signs on Thursday, September 19, 2024 at 10:00 a.m. on Brookhurst Street. He stated that he is proud to have worked on this effort. He also invited everyone to the Active Older Adult Appreciation event at St. Justin Martyr Church on Saturday, September 28, 2024 from 9:00 a.m. to 12:00 p.m. at 2050 West Ball Road. There will be arts and crafts, music and entertainment, performances by the Anaheim Ballet, and more. For transportation requests, contact Israel at ABRAZAR. Council Member Leon shared that his office, in collaboration with Assemblywoman Sharon Quirk-Silva, will be hosting a Resource Fair on Saturday, October 5, 2024 at Stoddard Park from 10:00 a.m. to 2:00 p.m. There will be health services, art and culture displays, activities for kids, and much more. Additional details and information will be provided soon.

Council Member Leon congratulated Hatam Restaurant, the August Restaurant of the Month. For over 30 years, Hatam Restaurant has been offering an authentic taste of Persian Cuisine. It is owned by Tony and Abdullah Rajab and Haji Hossain Rajab. Every meal is crafted with fresh, high-quality ingredients, from their famous saffron infused basmati rice to their tender marinated kabobs, and they are one of the few Persian restaurants in Southern California that serves halal meat. He encouraged everyone to visit Hatam Restaurant off Lincoln Avenue to experience the authentic flavors of Iran in West Anaheim. Council Member Leon congratulated Ham Radio Outlet, the August Business of the Month. Ham Radio Outlet is a source for amateur radio equipment, parts and accessories, including preowned items, and they also offer some harder to find radios. He noted their Morse code telegraph machine, was fascinating. The store was founded by Bob Ferrero over 20 years ago, and it is now managed by Bob's grandson. Ham radios are a lifeline in emergencies, providing communication when cell towers go down, plus they are a gateway to Global Connections, allowing individuals to chat with fellow ham radio operators across continents and even the International Space Station.

Council Member Leon encouraged everyone to visit Ham Radio Outlet located off Euclid Street.

Council Member Faessel thanked Mayor Pro Tem Kurtz for recognizing the loss of Bill O'Connell, Sr., a longtime Anaheim resident. He offered condolences to his wife, Jean and family. He acknowledged the efforts of the Anaheim Police Department’s Gang Unit and the Orange County Violent Gang Task Force for conducting a lengthy investigation and arresting several gang members. Various items including firearms, drugs, and a stolen vehicle were recovered. Council Member Faessel highlighted and shared photographs of events he attended. He acknowledged the Anaheim United Methodist Church at the corner of State College Boulevard and Wagner Avenue for their distribution of food to City Council Minutes of September 10, 2024

over 300 families a week. He thanked all the volunteers who make the program successful. He attended the Creative Identity Annual Luau at the Downtown Community Center. Creative Identity is a therapeutic music and expressive arts program for adults with intellectual and developmental disabilities. The event was fun and there were many talented individuals in attendance. Council Member Faessel attended the Muzeo Museum and Cultural Center Summer Concert Series featuring Sean Oliu. He shared that he is a Mater Dei High School graduate and Sean Oliu is a Servite High School graduate. There were approximately 100 individuals enjoying the music and he thanked the Muzeo for hosting the Summer Concert Series. Council Member Faessel shared that Yesenia Rojas attended the parking regulations meeting on Anna Drive. Residents in the area are requesting more stringent parking regulations and are working with the Anaheim Police Department, Community Services, and Public Works to arrive at a workable solution due to some of the parking problems in the area. He thanked Jason Perez for assisting with the event.

Council Member Rubalcava highlighted and shared photographs of events in District 3. She congratulated Yesenia Rojas for being elected “Diputada Migrante” in Guanajuato, Mexico and stated she is a true trailblazer. Ms. Rojas uses her voice to uplift Mexicans in Anaheim, and will now be using her voice to help people who have left Guanajuato to make sure they continue to receive services and support from their home country. Council Member Rubalcava shared that she along with her daughter and Council Member Faessel and his wife Susan, traveled to Los Angeles to be at the event. There were also representatives from Zacatecas and Jalisco which are two areas of Mexico where residents in District 3 are from. She attended Anaheim High School District’s back to school night, and it was great to see all the students, parents, teachers, and coaches. There were also administrators, School Board Trustees, and Members of Congress there to welcome students back to school and to ensure that they have the resources for a successful school year. Council Member Rubalcava shared that she, Council Member Meeks, and City Attorney Rob Fabela went on a ride along with the Anaheim Police Department's Homeless Assessment Liaison Officers (HALO). They visited several encampments in District 3 and across the city. The goal was to see firsthand the growing issues impacting parks, sidewalks, railways and other public areas to identify solutions to continue tackling the growing public safety problem. Lieutenant Yepes and Sergeant Pardo explained there are two outreach teams addressing housing, substance abuse, and mental illness in the City.

They are working with Union Pacific Railroad to clean up and conduct enforcement on railroads, deploying litter removal teams on state properties and freeways, and collaborating with other City departments, including Public Works, Code Enforcement and Lyon’s Security to quickly tag and dispose of abandoned property. She noted there is a significant amount of investment and effort going into the growing encampment issues that are plaguing District 3, and various districts across the City. Council Member Rubalcava stated that La Palma Park in District 3, is the second oldest park in the City. It has a lot of encampments, homeless individuals, and challenges. She recognized the Police Department’s HALO team, City departments, and Anaheim Fire and Rescue for conducting directive enforcement and outreach services near La Palma Park, where there has been an increase of drug use and sales. Council Member Rubalcava stated that the challenges at La Palma Park have negatively impacted Vibrant Minds Charter School and residents in the surrounding areas. She noted that during the cleanup that took place, officers detained 17 individuals, including one for felony sales of narcotics. Five individuals were provided detox and housing services, and an eight-month pregnant female was transported to a hospital for care and housing. The items left behind were cleared by Lyon’s Security and the area was cleaned by Public Works. She stated that individuals are released quickly from jail because of state laws that are in place, however, the HALO Team continues to patrol the park. Council Member Rubalcava’s Office hosted a community meeting and neighborhood safety walk in the Pauline Street neighborhood and a resident coordinated with the property manager at her apartment complex for the installation of Dusk-to-Dawn security lighting. Council Member Rubalcava thanked Anaheim Public Utilities General Manager Dukku Lee and his team because Dusk-to-Dawn security lighting was also installed in the alley behind the apartment complex. Council Member City Council Minutes of September 10, 2024

Rubalcava highlighted the District 3 meeting her office hosted and she noted that translation services will be included in the budget for the next meeting. She thanked all City departments and residents who attended. She stated that District 3 has a diverse population and new and older developments including Anaheim Shores, Emerald Pointe, The Colony, Colony Park, Sage Park, Rose Street, Bush Street, and Vine Street. Public Works spoke about tree trimming and ongoing infrastructure improvements including street paving and sidewalk repairs. Council Member Rubalcava mentioned she went on a ride along with Lieutenant Pena and they responded to several calls regarding domestic violence, assault with a deadly weapon, double parking, and car accidents. One of the accidents they responded to was in front of Station 5. A fire hydrant was hit and there was a lot of property damage, but thankfully no one was injured. Through the Anaheim Anytime App, she was also able to report bulky items in alleyways or dumpsters that needed to be replaced. She thanked Public Works because she received notifications that they had completed the requests she submitted.

Council Member Rubalcava noted that one of the Police Chief’s priorities is community engagement, especially when police officers are on patrol. She noted that Lieutenant Pena stopped to play soccer with a few kids in the Glen Avenue neighborhood while they were out on patrol and two of the kids said they want to be police officers, and another one wants to be a firefighter. She stated that she is a big believer of if they can see it, they can be it. She also visited the Anaheim Police Department jail and received a tour. She stated the jail was very busy now that there is enforcement in City parks.

Council Member Rubalcava stated that August is Chicano Heritage Month, and she thanked Community Services Director Sjany Larson-Cash for highlighting Chicano culture in Anaheim. She stated that many individuals in Anaheim are of Mexican American descent, and Anaheim has a very deep history with Chicano movements taking place in 1978 at Little People's Park. She recommended visiting the Downtown Community Center through October 6th to see the Chicano art exhibit featuring artwork by Emilio Vasquez, as well as his daughter Rosemary Vasquez Tuthill, and up and coming artist Oliver Cortez. She noted that at the opening night reception, Anaheim’s Poet Laureate recited a beautiful poem regarding the Mexican American community. Council Member Rubalcava shared that her office hosted the Second Annual Health and Wellness Fair at Pearson Park for suicide awareness. There were many resources available including 30 different nonprofits as well as City departments. Be Well OC and Anaheim’s Psychiatric Emergency Response Team were available to help with any other issues related to mental health. She noted that her office can provide additional information and referrals to non-profits that can assist with mental health challenges.

Council Member Rubalcava mentioned that a dignitary from Guanajuato, Mexico visited Anaheim City Hall. She thanked Chief Communications Officer Mike Lyster for helping to make the Senator’s visit a special occasion. She noted they were able to speak about opportunities as a Sister City, and she shared resources and ideas regarding how libraries are operating in Anaheim to help students in Guanajuato learn to read and have better resources so that their outcomes are better. She highlighted the 36 Anaheim Fire and Rescue firefighters helping to contain the massive fire in Trabuco Canyon. She shared that there is a local firefighter from Anaheim High School’s Class of 1991 assisting with the fire.

Council Member Diaz invited everyone to a car show on Saturday at Twila Reid Park from 8:00 a.m. to 3:00 p.m. He thanked Mayor Aitken and stated that with her assistance and support, efforts to clean up Beach Boulevard are noticed. He noted that Bill O’Connell was a good friend of his and he will be missed.

Mayor Aitken invited everyone in the community to the City’s Mexican Independence Day celebration on Sunday, September 15 at the Pearson Park Amphitheater, from 5:30 p.m. to 8:30 p.m. The celebration is the 214th anniversary of Mexico's independence from Spain featuring the traditional “El Grito” and bell ringing ceremony led by the Mexican Consulate, who has been an amazing partner in planning the event, and musical performances. Mayor Aitken shared that she participated in the Disneyland Halloween 10k and half marathon races and had fun running the 19.3 miles in the heat. It City Council Minutes of September 10, 2024

was an amazing experience to see so many people in the running community from around the world come to celebrate all things Disney as well as all things running. She thanked traffic control officers, police officers, firefighters, and Public Works for their efforts in keeping runners on course and safe.

She also thanked the thousands of runners who participated in the race because the money spent in Anaheim helps pay for services, libraries, community centers, and public safety. Mayor Aitken shared that the Anaheim Community Foundation was the chosen charity for the event, receiving a combined $110,000 ($50,000 from Disney and $60,000 from the running community) to support local children.

She shared that Caleb Graves, a local runner, passed away after completing the half marathon. He was an avid runner and participated in multiple Disney marathons and half marathons. He was 35- years old, a lawyer, and City of Garden Grove resident. She expressed condolences to his family and friends and requested adjourning the meeting in memory of Caleb Graves.

CITY MANAGER’S UPDATE:

City Manager Vanderpool reported that Anaheim Fire & Rescue is assisting with the fires across the region. Fire Chief Pat Russell, an industry expert in wildfires, is serving as Incident Commander for the Airport Fire. Chief Russell is joined by an Anaheim fire strike team made up of several firefighters and fire engines. City Manager Vanderpool stated that his thoughts are with the deployed firefighters, and everyone impacted by the fires. He stated that the community can rest assured that all Anaheim Fire & Rescue stations are fully staffed and ready to respond to any incidents in the City of Anaheim.

He shared that assisting with fires is critical because if Anaheim faces fires, the City can depend on the support of other agencies, both locally and across the region. City Manager Vanderpool shared that the Anaheim Convention Center is hosting RE+24. RE+ is the only clean energy event to unite decision makers and leaders in solar energy, storage, hydrogen, EV charging, and wind energy. The event will host 40,000 attendees, 1300 exhibitors, and 370 educational seminars. He stated that Anaheim police personnel are wearing pins on their uniforms in support of suicide awareness month.

By wearing the pins, they aim to create discussion about a topic normally kept quiet in public safety.

Among law enforcement professionals, there are nearly 200 suicides committed by officers, correctional staff, and dispatchers every year. They hope that by wearing the pins, they can encourage officers to talk to people and each other and offer resources to prevent these types of incidents from occurring.

CONSENT CALENDAR: At 7:21 p.m., the Consent Calendar was considered.

MOTION: Council Member Rubalcava moved to waive reading of all ordinances and resolutions and adopt the Consent Calendar as presented, in accordance with reports, certifications, and recommendations furnished each City Council Member, 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.

1. Receive and file minutes of the Sister City Commission meetings of July 1, 2024 and July 22, 2024.

2. Approve recognitions recognizing the 55th Anniversary of AltaMed Health Services and recognizing Renee Medrano for her efforts to raise fentanyl awareness.

3. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a master agreement to ReNewell Fleet Service, LLC, in an amount not to exceed $350,000, for Pierce Manufacturing vehicle parts and warranty services for a one year City Council Minutes of September 10, 2024

period; and authorize the Purchasing Agent to renew the agreement for up to four additional one year periods.

4. Waive the sealed bidding requirement of Council Policy 4.0 and approve an agreement with Orange County Conservation Corps, in an amount not to exceed $150,000, for as-needed mechanical brush clearance for a one year period; and authorize the Purchasing Agent, or designee, to exercise up to four one-year optional renewals, subject to available budget appropriations.

5. Accept the bid from Hunter Consulting, Inc. dba HCI Environmental & Engineering, in the amount of $90,735.98 plus applicable tax, for firing range maintenance, cleaning and hazardous waste disposal, for a one year period with four one-year optional renewals; and authorize the Purchasing Agent to exercise the renewal options, all in accordance with Bid #9815.

6. Authorize the Purchasing Agent to issue a master agreement purchase order to Allstar Fire Equipment, Inc., in the amount of $365,000 plus a 20% contingency and applicable tax, for the purchase of Lion Apparel, Janesville brand firefighting protective garments for a one year period; authorize the Purchasing Agent to execute the renewal option and grant the Purchasing Agent the authority to revise the contract amount, as needed, for future contract renewal years, based on approved budget appropriations for each applicable year [The agreement is in accordance with a cooperative purchase agreement issued by Sourcewell, a Minnesota local government agency, and awarded to LION First Responder PPE, Inc.].

7. Approve Professional Services Agreements with i) FireMed Consulting, LLC in an amount of $100,000 per contract year with a total contract amount not to exceed $500,000, ii) Krista Pope in an amount of $100,000 per contract year with a total contract amount not to exceed $500,000, and iii) JJ Emergency Training, LLC in an amount of $175,000 per contract year with a total contract amount not to exceed $875,000, for EMS Educator Services each for an initial one year term, with four one-year optional renewals; and authorize the Fire Chief, or designee, to execute and administer the agreements and extensions.

8. Approve the Agreement for Transfer or Purchase of Equipment/Services or for Reimbursement of Training Costs for FY2023 Urban Areas Security Initiative (UASI) with the City of Santa Ana, in the amount of $352,790, for reimbursement of funds expended for the purchase of equipment, services, and training, and other required documents authorized under the UASI Grant, increase the Police Department’s budget for Fiscal Year 2024/25 accordingly, authorize the Chief of Police, or designee, to execute and administer the Sub- grantee agreement; and approve the Memorandum of Understanding (MOU) with the City of Santa Ana for the Urban Areas Security Initiative 2023 and authorize the City Manager to execute the MOU.

9. Waive Council Policy 4.1 and approve an agreement with the County of Orange for Hazardous Device Squad services during special events, for a five year term effective September 1, 2024 through August 31, 2029; and authorize the Chief of Police, or designee, to execute and administer the agreement.

City Council Minutes of September 10, 2024

10. Approve a software services agreement with Power Market Consulting, Inc., in an amount not to exceed $26,000 for implementation services, an average annual subscription cost of $135,000 per year for the initial term, plus a 10% contingency during the term, and allowing subscription fee and consultant rate increases of up to approximately 14.83% for the first extension, and 5% per year during any subsequent extension for High Voltage Transmission Analytics Software and related services for an initial five year term with five one-year optional extensions; authorize the Public Utilities General Manager, or designees, to execute all related documents and to take the necessary actions to implement, fund, and administer the agreement, including extension letters; and authorize de minimis changes to the agreement and related documents that do not substantially change the terms and conditions of the agreement, as determined by the City Attorney’s Office.

11. Approve a License and Services Agreement with Inoria Inc., in an amount not to exceed an annual average of $260,000, an annual contingency of 20%, an annual allowance not to exceed $75,000 for as-needed professional services, allowing unused annual allowance to carry over to the following year, for a Contact Center software system that includes telephone and interactive voice response license subscriptions, telephone carrier, and support services for a five year and four month term, and authorize the Public Utilities General Manager, or designees, to extend the agreement up to five one-year extensions, as long as costs do not exceed 5% over the prior year’s costs; approve an Implementation Services Agreement with Carahsoft Corporation to upgrade the Customer Service Contact Center solution at no cost; and authorize the Public Utilities General Manager or designees, to execute related documents and to take the necessary actions to implement, fund, administer agreements and orders, and extend licenses and services.

12. Approve the Memorandum of Understanding and Payment Agreement with the City of Santa Ana to engage MDG Associates, Inc. to provide a Fiscal Year 2025-2029 Regional Analysis of Impediments to Fair Housing Choice plan for project period August 1, 2024 to July 30, 2025, in the cost share amount of $18,011.41 to the City of Santa Ana, and designate the Director of Housing and Community Development as the Certifying Official authorized to implement and execute all documents related to the administration and management of the Memorandum of Understanding.

13. RESOLUTION NO. 2024-100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ratifying and approving the actions of the Anaheim Director of Public Works, or designee, in submitting a grant application on behalf of the City of Anaheim to the California Department of Transportation (Caltrans) for the Sustainable Communities Grant for feasibility assessment of microtransit options in Anaheim Canyon Specific Plan area and, authorizing the acceptance of such grant on behalf of the City and amending the budget accordingly; and, determine that these actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Guideline Section 15306 (grant funds in the amount of $250,000, with $32,390 local match).

14. Approve minutes of the City Council meetings of February 10, 2024 (Special Meeting), February 13, 2024, and February 27, 2024.

City Council Minutes of September 10, 2024

BUSINESS CALENDAR:

15. Receive an informational overview on the City’s Short-Term Rental program and associated regulations and provide direction to staff, as necessary.

Deputy City Manager/Director of Planning and Building Ted White introduced Code Enforcement Manager Mark Dickinson. He noted the presentation will include an overview of the City's Short-Term Rental program, including background on the program, an overview of operational standards for short-term rentals and the procedures and resources available for enforcement of those regulations.

He acknowledged that short-term rental regulations have become common in tourism—based cities to respond to the growing popularity of platforms like Airbnb and Vrbo. He reported that in 2014, the City adopted an ordinance requiring property owners to obtain a short-term rental permit for rentals less than 30 days and require property owners to pay Transient Occupancy Taxes (TOT). He added that the presence of Disneyland Resort made the City a major attraction for short-term rentals (STRs), with approximately 200 STRs in operation by 2014. He mentioned that by 2016, following the Council’s adoption of regulations, there were approximately 400 STRs operating in Anaheim.

Following increased complaints and concerns expressed by the community, the City Council adopted an ordinance in 2016 that strengthened regulatory and operational requirements for existing STRs, established a ban on new STRs, and established a phase-out period for existing STRs. He reported the ordinance was subject to a lawsuit filed by the existing STR operators, which led to a settlement that provided additional time and due process prior to the planned closure, with a number of STRs voluntarily ceasing operations. He stated that in June 2019, the City Council updated the 2016 ordinance to eliminate the required phase-out of existing STRs and allow continued operations, strengthened regulations and operational requirements, including prohibiting and expanding the intensification of existing STRs, and allowed relocation of certain permits from problematic locations.

He added that the ordinance maintained the prohibition of the establishment of any new STRs and the new regulations were intended to strike a reasonable balance between supporting the tourism industry and protecting neighborhoods.

Deputy City Manager White provided an overview of the current program. He reported there are 222 active STR permits in the City; 19 of the permits are required to cease operations according to the 2019 ordinance and are eligible to be relocated to other properties in the City, explaining a permit exists but has not been applied to a property. He noted there is no time limit for the potential relocation, with an expectation that the City will receive a number of permit applications over the next several years, bringing the total number of permitted STRs to 241. He reported that STR operators are required to pay 15% TOT based on gross revenues, similar to hotels and motels in the City. He noted that the annual STR revenue was $5.5 million, including revenue collected from online travel companies. He emphasized that the majority of STR operators are located in close proximity to the Anaheim Resort, with more than half, or 120 to 130, operating in District 4, followed by 42 in Districts 2 and 3. He reported the City requires STRs to obtain a regulatory permit to operate in the City. He stated that the City’s ordinance details operational standards, including a minimum three-night stay to minimize the impact of arriving and departing guests in residential neighborhoods and deter the potential for promoters or party hosts to rent a property for a single-night party or event. He added that the ordinance contains maximum occupancy limitations based on the total number of bedrooms in a residence and a prohibition on STRs hosting weddings or receptions, parties, commercial events, etc. He detailed the parking requirements, including at least two spaces on-site and no more than one parking space off-site with a permit that is renewed on an annual basis. Operational standards also include a quiet time noise restriction from 10 P.M. to 9 A.M., during which outdoor activities are significantly restricted. He added that operators are required to maintain a 24-hour-a-day, seven-day- per-week contact person who can respond to complaints and be on-site within 45 minutes of contact City Council Minutes of September 10, 2024

by a Code Enforcement Officer. He mentioned that contact information must be provided to all surrounding property owners and tenants.

Deputy City Manager White reported that the ordinance provides Code Enforcement Officers the right to inspect the premises to hold property owners and operators accountable. He provided an overview of enforcement efforts and resources, including a proactive team that dedicates one Code Enforcement Officer to STR enforcement every night from 8 P.M. to 2 A.M. He noted the team focuses on monitoring permitted STRs, removal of unpermitted ones from online platforms, enforcement on new STRs, patrolling neighborhoods with high concentrations of STRs, and responding to complaints including ones from the dedicated hotline. He noted that enforcement efforts are largely covered by annual renewal fees collected. He reported that since the 2019 ordinance was adopted, the City has issued approximately 220 civil citations related to permitted STRs. He added that the Planning Director has utilized enforcement discretion to suspend three (3) short-term rentals for cumulative violations of the Municipal Code. He clarified that if there are two (2) major violations within a 10-month period or 10 minor violations, the STR permit is available for suspension or revocation. He noted the suspension process has been successful in deterring and bringing STRs into compliance, and no revocation of permits has been required. He reported that staff have worked closely with online travel companies to monitor and coordinate enforcement activities of the unpermitted uses and illegal advertisements, notably Airbnb, which has provided access to their platform to report unpermitted STRs. He noted that staff has issued more than 230 civil citations for unpermitted sites and utilized creative enforcement tools such as the termination of utilities for repeat offenders.

Deputy City Manager White reported that beginning in the summer, as part of the renewal process and under the ordinance’s authority, City staff conducted inspections on all 222 permitted STRs. The inspections focused on unpermitted modifications or improvements that could result in health and safety concerns, including unpermitted structural changes, occupancy changes, and unpermitted electrical or natural gas lines. He added that STR owners have largely cooperated to rectify any violations or obtain required permits. He noted a Short-Term Rental Fact Sheet is available on the City’s website along with additional information related to the program, an online map identifying the location of STRs, forms and applications, quick reference handouts, and sample House Rules documents. He concluded with information on the dedicated hotline and email to report STR violations, noting the STR hotline is 714-765-0190 and the email address is [email protected].

DISCUSSION: Council Member Faessel noted he continues to receive reports of unpermitted STRs in the Platinum Triangle. He referenced the removal of unpermitted STRs on online platforms; however, he inquired how STRs would be removed from entire neighborhoods. He added that if the unpermitted STRs are removed online, if is guaranteed that they will go away.

Deputy City Manager White responded that online advertising provides increased access to STRs and removal of the platforms has been successful in reducing unpermitted STRs. He noted that without access to the platforms, operators rely on personal recommendations.

In response to Council Member Faessel, Deputy City Manager White reported that the first step in enforcement is to remove the unpermitted STRs from the online platforms. He added that for repeat offenders, Code Enforcement will go to the location, noting Code Enforcement has issued over 230 citations to unpermitted groups.

Council Member Faessel highlighted utility shut-offs as another enforcement measure that would be effective for operators of multiple locations.

City Council Minutes of September 10, 2024

In response to Council Member Leon, Deputy City Manager White confirmed that STR properties adhere to different building codes or requirements. He explained STRs with more than 10 residents are required to have fire sprinklers under the 2019 ordinance. He added that the Fire Department and Fire Marshal advocated for the requirement because guests occupying a short-term rental are unfamiliar with the surroundings. He confirmed there were no exterior requirements.

Council Member Leon inquired if the City is tracking quantitative or qualitative metrics for STR complaints and code enforcement resolutions.

Deputy City Manager White noted that over the last few years, the number of complaints has moderated and stabilized. He added that owners are now mostly experienced and understand the requirements. He reported that the most common complaints are related to trash, parking, and noise.

Council Member Leon requested information on how Code Enforcement manages noise complaints outside of the quiet time hours.

Deputy City Manager White clarified that typical noise standards apply during daytime hours.

Code Enforcement Manager Mark Dickinson confirmed that Code Enforcement would respond, investigate, and address any issues.

In response to Council Member Leon, Deputy City Manager White confirmed that Code Enforcement would respond to any noise complaint at any time of day.

In response to Council Member Leon, Code Enforcement Manager Dickinson reported that Code Enforcement typically receives noise complaints, but depending on the resident's response, it may be forwarded to the Police Department.

Council Member Leon explained he has received reports that the City does not respond to noise complaints and mentioned that he can collaborate with Code Enforcement to understand the reasons behind the lack of response.

In response to Council Member Leon, Deputy City Manager White reported that the Code Enforcement Officer on duty from 8 P.M. to 2 A.M. would patrol, respond to complaints, draft correspondence to property owners and operators, and monitor online platforms. He added that daytime officers may supplement those duties. He noted that Code Enforcement Supervisor Sylvia Frias coordinates with the online travel companies and monitors the platforms. He emphasized that enforcement is not exclusive to a single officer and is supplemented as necessary.

Council Member Leon inquired about the process for homeowners to install higher fences for their properties.

Deputy City Manager White explained that there are no special provisions or allowances for single- family homeowners adjacent to an STR. He reported that the Zoning Code limits the height of walls between single-family residential properties to a maximum of six feet In response to Council Member Leon, Deputy City Manager White clarified that homeowners can apply for a variance for additional height, which is subject to significant expenses and processes. He added that there are allowances in the Zoning Code for residential properties adjacent to arterial highways, railroads, freeways, and commercial properties. He noted that commercial properties are required to have an eight-foot wall between a commercial property and a residential property.

City Council Minutes of September 10, 2024

Council Member Leon requested that staff update the Municipal Code to allow properties adjacent to STR properties or the STR properties the flexibility to construct higher walls or privacy screens beyond what is permitted, without the need for a lengthy and costly permitting process. He explained he has received concerns and complaints regarding Code Enforcement’s response and quality of life around STRs. He requested a review of the City’s policies and regulations periodically to keep interests balanced between the STR operators and residents.

Mayor Pro Tem Kurtz requested additional discussion on the wall heights. She expressed concern over requests for higher walls from properties that report noise complaints but are not operating as STRs.

In response to Mayor Pro Tem Kurtz, Deputy City Manager White clarified that STR operators are required to provide contact information to surrounding property owners. He added that the 45-minute response time provision is specific to whether the operator receives contact from a City enforcement officer, including the Police Department. He did note that if a complaint is received in the early morning hours, the property owner would be responding within the time allotted in the Municipal Code. He clarified that the property owners' contact information is provided to the adjacent property owners. He mentioned that some property owners may not feel comfortable contacting the owners directly. He added the City would always want to provide anonymity through Code Enforcement.

Mayor Pro Tem Kurtz clarified that property owners can contract the STR operator and Code Enforcement to report any complaints. Deputy City Manager White added that property owners can contact the Police Department for significant noise complaints.

Mayor Pro Tem Kurtz explained that the call may be a low-priority call for the Police Department, which may result in longer response times. She noted that if Code Enforcement contacted the operator, the operator would have to arrive within 45 minutes to correct the issue.

In response to Mayor Pro Tem Kurtz, Deputy City Manager White reported there have been occasional parking complaints but noted it was not a systemic issue.

Mayor Pro Tem Kurtz thanked staff for the program, which provides residents with the opportunity to call the STR owner, Code Enforcement, and the Police Department and have someone at the property. She expressed appreciation that the services provided are covered through STR permit fees.

Deputy City Manager White explained that the permit fees and renewal fees were established to cover the costs dedicated to providing the services. He noted that two part-time officers provide the services which ensure that someone is available each night. He added that the fee negotiation was part of the 2019 agreement to generate enough revenue to guarantee an ongoing funding stream.

Mayor Pro Tem Kurtz thanked staff and highlighted Code Enforcement’s response to complaints.

Council Member Faessel referenced comments he’s received from Sherwood Village residents about neighborhoods being overtaken by STRs. He requested an update on whether the situation has improved.

Deputy City Manager White referenced Mayor Pro Tem Kurtz’s comments and acknowledged former City employee David Belmer and Chief Assistant City Attorney Kristin Pelletier for their work. He did note there have been improvements, noting there are no longer STRs in the Sherwood Village City Council Minutes of September 10, 2024

community. He credited that to an ordinance that required that the STRs cease operations by 2021 or 2022. He added that there are 19 floating permits from the Sherwood Village STRs, which allow for relocation to an agreeable location. He explained there is a process for relocation and guidance on the proper locations, but a timeline was not set for the relocation.

Council Member Faessel thanked staff and wanted to ensure that the issues with the STRs were resolved.

Council Member Diaz agreed with Council Member Leon’s suggestion to allow property owners neighboring STR properties to construct higher walls. He noted that this can be applied to properties facing high wildfire risks.

Council Member Meeks supported a process for property owners adjacent to STRs to construct higher fences. She commended the City’s stronger regulations and enforcement but also supported a periodic review to evaluate best practices.

In response to Council Member Meeks, Deputy City Manager White reported that a GIS map, which identifies the locations of all the STRs, is available on the City’s website. He confirmed that it does not include the operator’s contact information or occupancy. He added that staff can evaluate including that information.

Council Member Meeks commented that the information, including the maximum number of vehicles, would be helpful to neighbors but expressed concerns over potential crimes if the occupancy is advertised.

Informational item; no formal action taken by the City Council.

16. Discussion on State enacted tenant protection laws and provide direction to staff, as necessary.

Director of Housing and Community Development Grace Ruiz-Stepter reported the item is a discussion on State enacted tenant protection laws at the request of Council Member Rubalcava and Mayor Pro Tem Kurtz. She noted that staff have conducted extensive research on current State law and local ordinances. She reported under Assembly Bill (AB) 1482, the California Tenant Protection Act, which became effective in January 2020, the State enacted Statewide rent control to protect tenants from unreasonable rent increases and evictions. She explained that AB 1482 limits rent increases and requires landlords to have just cause for terminating tenancies. She reported that under rent cap provisions, the law limits the annual rental increase amount for eligible properties by 5% plus the local Consumer Price Index (CPI). She noted that in Orange County, the current rate of increase allowed is 8.9%. She added that under the law, the State initiated a statewide standard that requires property owners of covered properties to have a specific reason to terminate tenancy.

Additionally, for long-term tenants, or tenants who have occupied the space for 24 months, the law requires tenants to be given a 30-day relocation payment and require a specific reason for requesting the unit. She noted there are a few exemptions to the law, including if a certificate of occupancy has been issued in the last 15 years and single-family homes, except when the home is owned by a Real Estate Investment Trust (REIT). She added that effective April 1, 2024, there were amended protections to close loopholes regarding requests for units that involve substantial rehabilitation. She explained that the new requirements specify who qualifies as an owner for requesting a unit back for a family member and the type of documentation that must be attached for the purpose of a substantial remodel. She explained that the notice must include specific language in the termination City Council Minutes of September 10, 2024

regarding the work to be performed and the tenant's right to reoccupy the unit in the event the work is not completed or following the substantial remodel. She added that the revised law adds penalties against rental property owners who violate the law. She noted the tenant protections do not apply to at-fault evictions, meaning behavioral issues, or non-payment of rent, clarifying that the protections apply when the owner is requesting the unit for economic or personal reasons. She highlighted that the new legislation represents the first time the State has enacted protections of that nature.

Director Ruiz-Stepter reported that a number of local jurisdictions have adopted local Tenant Protection ordinances including the cities of Buena Park, Costa Mesa, Laguna Beach, and Santa Ana. She noted that in most cases, the cities enacted ordinances to expedite the provisions in Senate Bill (SB) 567, which require extensive documentation in cases involving substantial rehabilitation. She outlined enforcement measures other cities have taken. She reported that the City of Buena Park, the local ordinance, includes a $15,000 penalty if an owner knowingly evicts a tenant without the intent to complete the renovation work. She added the City of Laguna Beach requires landlords to attach documentation when seeking permits from the City, the penalty is $20,000 and enforced by the tenant through a civil action. She reported that the City of Santa Ana has enacted no-fault eviction protections that are broader than the State requires and has been in effect since November 2022.

She noted in Santa Ana, property owners must provide a relocation benefit equal to three months' rent, through a rent waiver or direct payment, within 15 days of issuing a notice. She added the State requirement is one month or a waiver of 30 days of rent.

Director Ruiz-Stepter reported enforcement of the Statewide Tenant Protections is primarily handled in civil courts. She explained if a tenant needs legal assistance, the State’s Department of Justice office (Office of Attorney General (OAG)) advises contacting attorneys or legal advocacy groups for assistance. She noted the OAG had developed consumer alert bulletins in multiple languages entitled “Know Your Rights”. She reported that bulletins are available on the Housing Authority’s website as a resource document and available in multiple languages. She explained in response to cases involving just cause evictions, the Housing and Community Development Department staff have attended tenant meetings, provided referrals for affordable housing options, and linked tenants with the Fair Housing Council of Orange County. She noted that the Department does not have a dedicated team for eviction intervention, adding the Department is responding to the requests of tenants and the City Council.

Director Ruiz-Stepter reported the California Department of Justice issued a bulletin informing city attorneys and county counsels of their new enforcement authority under the Tenant Protection Act and the expanded legislation that became effective on April 1, 2024. She noted the measures described in terms of enforcement are primarily voluntary and did not come with resources for enforcement purposes. She added, in staff’s research, they did not find any local jurisdiction that is actively engaged in the enforcement of the new State laws. She noted the City of Buena Park is relying on the Fair Housing Council of Orange County to educate tenants and property owners on their local ordinance and on State law. She added they do not have internal staff to implement or enforce their ordinances or the State ordinances. She reported the City of Laguna Beach is establishing their infrastructure to monitor compliance in partnership with the Fair Housing Council.

She added the Cities of Costa Mesa and Santa Ana have added new staff due to their locally adopted Tenant Protection ordinances. She explained Costa Mesa’s ordinance differs because they are requesting landlords to provide one month’s rent to tenants compared to State law which requires an owner to pay for 30 days of the tenants’ current rent. She reported in Santa Ana, the relocation benefit is three months and requires a 90-day notice requirement, compared to the State’s 30-day policy. She added both Santa Ana and Costa Mesa have established additional outside contracts and added staff.

City Council Minutes of September 10, 2024

Director Ruiz-Stepter reported the City’s method of enforcement is through a contract with the Fair Housing Council of Orange County to provide education and enforcement on state and federal fair housing laws. She noted the services are funded by the Community Development Block Grant (CDBG). She explained that the Fair Housing Council has assisted with providing tenant education and referrals to legal services including to the Public Law Center or Community Legal Aid Society.

She added staff has reached out to the California Apartment Association who indicated they are a potential partner in increasing awareness of State laws and already work with other jurisdictions to create mailers dedicated to local tenant rights, and websites, and actively educate landlords on new State laws. She reported that the State provides a number of fact sheets and a State resource hotline. Director Ruiz-Stepter concluded by mentioning the presentation is for informational purposes and will not have an impact on the budget.

DISCUSSION: Mayor Pro Tem Kurtz expressed the importance of education for tenants to understand what their rights are beyond the information posted on the City’s website. She noted that some tenants cannot or may not know how to access the City’s website and recommended outreach to educate tenants. She noted the importance of educating apartment managers and apartment owners and called for a strong education program on the rights and responsibilities of owners, managers, and tenants. She added that although individuals are referred to Fair Housing who are unable to address their questions.

Director Ruiz-Stepter explained that the State enacted the legislation without an enforcement mechanism. She added traditionally tenant-landlord relationships have been viewed as contractual relationships that the City has not inserted themselves into. She noted that the new laws provide new vehicles for tenants to engage in conversations with their landlords and additional rights. She added the City seeks to educate but it is a new area for the City. She reported the City has responded to issues by pulling a team of different people and providing affordable resources but has not formalized the City’s position and responsibilities. She added staff are appreciative of the new tools available to tenants but cautioned the implications on the City’s bandwidth and methods to address those new resources. She noted staff are trying to expand the City’s reach to other partners providing tenant education to ensure availability to the community. She added the City is trying to be responsive to the new legislation noting all tenant and landlord matters were primarily handled through civil cases.

Council Member Faessel thanked Director of Community Services Sjany Larson-Cash for including the Fair Housing Council in the Mobile Family Resource Centers. He thanked Victor Cao, Senior Vice President of the California Apartment Association, for his assistance with tenant matters over the years. He suggested allocating additional funds to the Department. He requested additional information on the Walnut Street evictions.

Director Ruiz-Stepter explained that staff were not aware and not set up to be notified of any evictions. She noted that staff became aware of the situation after being notified by a Council Member. She added the City was not required to be notified of evictions and did not have enforcement tools. She explained that the City contracts with the Fair Housing Council of Orange County, which enforces State and federal fair housing laws including discrimination, which differs from the enforcement of a contract between a landlord and tenant.

In response to Council Member Faessel, Director Ruiz-Stepter explained a team was compiled to respond to the Walnut Street eviction concerns. She added that the team has become a crisis response team that understands affordable housing openings to find alternative affordable housing, noting in some cases the landlord is entitled to request the unit as long as they are complying with State law. Regarding the Walnut Street evictions, she explained that she spoke with the owner who engaged in conversation to extend the time frame from the state-mandated 30-day notice to 90 days City Council Minutes of September 10, 2024

to minimize disruptions to families until after the school year. She noted staff is willing to be involved but reported bandwidth issues.

Council Member Faessel expressed appreciation for Director Ruiz-Stepter’s involvement in assisting with the Walnut Street evictions. He expressed appreciation for Mr. Cao and the relationship between the California Apartment Association and the City. He cautioned that similar cases will arise in the future and residents will continue to turn to the City for assistance and suggested coming up with a plan or response.

Council Member Rubalcava reported that she requested the item because of numerous requests for rent control initiatives. She added she requested information on State law to explore opportunities to enforce what already exists. She requested staff return during the budget process with ideas for resources to implement enforcement mechanisms. She noted if the Council approved a rent control initiative beyond the State’s requirements, there would still be enforcement issues. She recognized the State’s guidelines and requested that staff evaluate mechanisms to enforce State law.

Director Ruiz-Stepter confirmed staff will address education and ensure information from third parties is available in mobile units, libraries, and other areas. She added that the City can create partnerships with organizations like the California Apartment Association for tenant education. She added the enforcement portion is difficult to address because those matters are settled in court, which legal aid partners have mentioned requires an attorney.

Council Member Rubalcava commented that tenants may be afraid of reporting issues to their landlords. She added she would address the issues with Mr. Cao, however, the landlords may not be members of the California Apartment Association. She reported that her office has offered to write letters for tenant protection to have on the record in the event tenants are evicted or threatened with eviction. She proposed that the City provide a form for complaints which can be mailed directly to the landlord with a copy kept on file at the City. She noted she also received reports from residents whose rents are being increased more frequently than the State allows. She referenced Mayor Pro Tem Kurtz’s comments regarding the importance of tenant education. She commented that residents and tenants report that Fair Housing is unable to assist them with everyday issues. She inquired if the City is required to pay into the Fair Housing contract.

Director Ruiz-Stepter reported the City is an entitlement jurisdiction. She added the purpose of the Fair Housing contract is to comply with federal fair housing regulations. She noted that Fair Housing has attended events with staff, including Walnut Street and Philadelphia Street, and provided education. She added in egregious cases; they have linked tenants to the Public Law Center. She reported the next step would be to expand the relationship and evaluate resources that are not fully dependent on staff. She added she will be meeting with the Fair Housing Council for their recommendation on increasing bandwidth to assist tenants in civil court.

In response to Council Member Rubalcava, Director Ruiz-Stepter confirmed that staff intend to conduct workshops in Council districts to educate tenants on their rights and resources.

In response to Council Member Rubalcava, Director Ruiz-Stepter confirmed that the affordable housing covenant is 55 years.

In response to Council Member Rubalcava, Director Ruiz-Stepter confirmed the Hermosa Village development is privately owned, with 500 units under covenant, but the City does not control the developments there.

City Council Minutes of September 10, 2024

Council Member Rubalcava commented that she refers residents to contact their Assembly Member or Congress Member to report issues if it is a State or federal matter.

Director Ruiz-Stepter reported the Hermosa Village property was held by a long-term owner and the property was transferred to the owners’ heirs when the owner passed away. She added that the average rent was $1,000 to $1,200 with comparable units priced at $2,000. She added the new owner provided appropriate notices according to State law. She explained due to the impact on tenants, staff engaged the Fair Housing Council to find available openings for the tenants.

Council Member Rubalcava thanked staff for assisting residents in District 3 on the verge of homelessness or experiencing housing issues.

In response to Council Member Meeks, Director Ruiz-Stepter confirmed there are penalties for violations of State law including up to three times the costs incurred by the tenant and other punitive damages. She added the penalties are a function of what is awarded in court.

City Attorney Robert Fabela reported there would need to be proof of intentional actions by the apartment owner and damages would triple. He clarified the issues are civil remedies between tenants and landlords.

In response to Council Member Meeks, Director Ruiz-Stepter explained the Public Law Centers have been taking on tenant cases because of the resources needed to receive services.

Council Member Meeks stated that if a liability existed and the owner was aware of it, the issue would be addressed to prevent any financial costs.

Director Ruiz-Stepter explained that it may apply to egregious cases, however, staff encounters different cases. She reported that for Walnut Street, the owner was not at fault and provided a 30-day notice and one month’s rent. She explained the tenants were trying to negotiate a longer term.

Council Member Meeks requested that it be clear whether the City is enforcing State law or providing requested housing assistance. She added that while the City aims to assist everyone, the focus must be on addressing resources and funding. She inquired if there are other resources available to assist those facing increased rents and housing displacement.

Council Member Diaz noted there can be situations where landlords and tenants are part of the issue.

He noted landlords face capital investments, maintenance, tax increases, and insurance increases and may need to increase rent to address those costs. He suggested working with the California Apartment Association to address the issues, especially education for landlords and tenants.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter responded that the Public Law Center and Community Legal Aid SoCal are non-profit organizations that work in the area of tenant rights and renters’ rights. She noted that both organizations have limitations on their services including an income and citizenship requirement.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter noted there was a recent U.S.

Department of Housing and Urban Development (HUD) grant to assist, however, the City was not the selected co-applicant.

City Council Minutes of September 10, 2024

Mayor Pro Tem Kurtz suggested that Code Enforcement develop a method to respond to complaints and protect the identity of the reporting party. She added there is a fear amongst undocumented residents who report concerns that they would be deported or retaliated against.

In response to Council Member Leon, Director Ruiz-Stepter if a tenant lives in a newer building with a Certificate of Occupancy from the last 15 years, a 20% increase in rent may be acceptable. She added mobile homes are not covered by State Law. She reported that multi-family dwellings and apartment complexes are subject to the 5% rent cap plus the Consumer Price Index (CPI). She added tenants can call the City to educate them on the 20% rental increase after evaluating the characteristics of the property, and then would likely be referred to a partner organization like the Public Law Center, or Statewide hotline. She explained the expectation may be for the City to intervene versus a referral to other organizations.

In response to Council Member Leon, Director Ruiz-Stepter clarified the legislation outlines a legal pathway for enforcement. She added the City can serve as an ambassador, similar to the Walnut Street situation, where the City reaffirmed those were just-cause evictions but requested additional time for tenants. She reported the issue is to address the role the City would take to try to enforce or work with the new legislation for a better outcome for tenants.

Council Member Leon requested information on how a resident would know about a property’s Certificate of Occupancy. Director Ruiz-Stepter explained Housing staff would need to confirm with the Planning and Building Department and evaluate if the development is new.

Council Member Leon encouraged more education and the availability of materials in different languages. He suggested during the budget process, evaluating the City’s position on enforcement to ensure resident awareness and ensure a streamlined process for tenants and landlords.

In response to Council Member Rubalcava, Director Ruiz-Stepter explained the exemption for rent caps on properties with a Certificate of Occupancy from the last 15 years is related to returns on investments for newer construction.

Council Member Rubalcava noted that exemption is a State matter that could be lobbied by Assembly Members to adjust. She requested additional information, budgeting, and resources to implement the City’s enforcement of State law. She expressed her disappointment over the non-profit’s citizenship requirements to provide service.

In response to Council Member Rubalcava, Director Ruiz-Stepter confirmed she could provide the information for the non-profit organizations.

Direction provided to staff; no formal action taken by Council.

City Council Minutes of September 10, 2024

17. Nominate and appoint a voting delegate and up to two voting alternates to the League of California Cities (Cal Cities) Annual Conference, to be held on October 16 – 18, 2024 in Long Beach, California.

APPOINTMENT: Natalie Meeks
ALTERNATE:

ALTERNATE:

NOMINATION: Mayor Aitken nominated Council Member Meeks as the voting delegate to the League of California Cities (Cal Cities) Annual Conference. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES – 0. Nomination approved.

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

Council Member Meeks requested to agendize an ordinance on October 8, 2024 Agenda to further enhance and strengthen the City’s anti-camping ordinance to ensure that parks and rights-of-ways are kept safe and open for their intended use; an item identifying barriers to enforcement of current and future ordinances related to homelessness; and a resolution calling on the state to address the homeowners property insurance crisis similar to the City of Yorba Linda’s efforts.

Council Member Faessel requested recognition for Yesenia Rojas for being elected Diputada Migrante in Guanajuato, Mexico.

ADJOURNMENT:

At 9:09 p.m., Mayor Aitken adjourned the meeting in memory of William “Bill” O’Connell, Sr. and Caleb Graves.

Respectfully submitted,
Theresa Bass, CMC
City Clerk