Anaheim City Council
May 13, 2025

ANAHEIM CITY COUNCIL
REGULAR MEETING OF OCTOBER 8, 2024
The regular meeting of October 8, 2024 was called to order at 4:00 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 October 3, 2024.

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

Council Member Leon arrived at 4:01 p.m.

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

Marc Herbert addressed Closed Session Item No. 1. He referenced a previous public hearing and potential lobbyist registration violation. He mentioned that the public was unable to review the California State University, Fullerton report for the DisneylandForward public hearing. He stated that for the SALT Development project, false addresses were submitted by the developer. He reported that the issue has been raised with the City Council but not addressed.

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

CLOSED SESSION: At 4:05 p.m., Mayor Aitken recessed to Closed Session for consideration of the following:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) of Subdivision (d) of California Government Code Section 54956.9): One Potential Case (A copy of the claim against the City is included in the agenda packet and available for review by contacting the City Clerk’s Office and on-line electronically with the agenda at: www.anaheim.net/councilagendas.)

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: One Potential Case
At 5:08 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.

ITEM # 27
City Council Minutes of October 8, 2024

INVOCATION: Reverend Lissa Smith, Canyon Hills Presbyterian Church FLAG SALUTE: Council Member Carlos A. Leon
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):

Recognizing October 6 – 12, 2024, as Fire Prevention Week Fire Marshal Lindsey Young accepted the recognition. She reported Anaheim Fire and Rescue is collaborating with the National Fire Protection Association (NFPA), the official sponsor of Fire Prevention Week, to promote the current campaign "Smoke alarms: Make them work for you!™" She noted the campaign works to educate individuals on the importance of having working smoke alarms in the home. She noted according to NFPA, smoke alarms reduce the risk of dying in a home fire by more than half. She shared that Anaheim Fire & Rescue encourages all residents to actively support the Fire Prevention Week campaign. She outlined safety tips, including installing smoke alarms outside every bedroom, sleeping area, and each level of the home; ensuring the alarms meet the sensory needs of every member of the family; testing smoke alarms once a month; and replacing smoke alarms every 10 years. She encouraged the public to visit Anaheim Fire & Rescue’s website or social media to learn more about smoke alarm safety programs.

Recognizing October 5 – 13, 2024, as California Water Professionals Appreciation Week
Candice Espinoza, Associate Engineer, Anaheim Public Utilities, accepted the recognition. She reported that California Water Professionals Week highlights the role of water industry professionals and local public water agencies in ensuring safe and reliable tap water Statewide. She highlighted the dedicated employees who work every day to maintain and improve infrastructure, sustainably manage water resources, and ensure water quality. She shared that she gets to work with talented operators, engineers, field crews, laboratory technicians, and administrative staff. On behalf of the Public Utilities Department, she thanked the City Council for the recognition.

ADDITIONS/DELETIONS TO THE AGENDA: City Clerk Theresa Bass announced that Consent Calendar Item No. 17 was withdrawn from the agenda by staff.

PUBLIC COMMENTS (all agenda items): Prior to receipt of public comments, City Clerk Theresa Bass provided an outline of procedures for public comments, notice of translation services, and a brief decorum statement.

City Clerk Bass reported that a total of twenty-one (21) public comments were received electronically prior to 4:30 p.m. [A final total of twenty-three (23) public comments were received electronically, distributed to the City Council, and made part of the official records.] – See Appendix.

Bulmaro Vicente, Political and Policy Director of Chispa, addressed the Council on Item No. 21. He thanked Mayor Aitken for agendizing the item. He stated that the need for inclusionary housing is overdue and encouraged elected officials to continue pushing similar policies. He addressed common misconceptions regarding inclusionary housing policies. He cited the City of Santa Ana as an example of an agency that adopted inclusionary housing policies and has produced more housing and affordable housing for residents. He added that Chispa supports the Kennedy Commission’s recommendation to strengthen the proposed inclusionary housing requirements. He added that for large projects, including 20-plus units, he suggested percentages to be rented to different income levels, availability of affordable units for sale, and moderate-income units. He added that for smaller projects, less than 20 units, an in-lieu fee should range from $6 to $12 per square foot. He City Council Minutes of October 8, 2024

encouraged the City to adopt strong inclusionary housing policies to ensure that affordable housing is built to address the City’s housing crisis.

Cesar Covarrubias, Executive Director of the Kennedy Commission, addressed the City Council on Item No. 21. He expressed support for the inclusionary housing ordinance to address the need for lower-income housing in the Anaheim community. He expressed support for the proposed item but encouraged the City Council to look at creating greater affordability within 15% versus 10% in the proposed ordinance. He addressed the proposed in-lieu fee threshold of 20 units or more and suggested applying the in-lieu fee to developments of 20 units or fewer as well.

Julian G. spoke in support of Item No. 21. He agreed with the implementation of an inclusionary housing ordinance and suggested expanding the ordinance to be more effective for lower-income households and provide development opportunities for apartments. He outlined percentages for units to be allocated for low-income, very low-income, and extremely low-income households. He suggested that 10% of for-sale units be set aside for moderate-income families with a $15 per square foot in-lieu fee for larger developments. He suggested a $6-$12 in-lieu fee scale for smaller developments.

Mike Robbins spoke about mandatory affordable housing percentages for new developments. He added that after the City of Santa Ana passed rent control it did not seek to exist. He addressed the City Council on Item No. 19. He explained that the homeless population needs help and medical care.

Erika Miller Nguyen expressed support for Item No. 12. She extended a personal invitation to the City Council for Chance Theater’s Gala on November 2nd. She noted that for over 26 years, the Chance Theater has been a pillar in Anaheim, providing a platform for storytelling, arts, education, and community engagement. She added that their productions, outreach programs, and new play development, inspire dialogue, foster empathy, and offer a space for all voices to be heard. She added that Chance Theater is committed to ensuring that everyone in Anaheim has access and can participate in the arts. She requested the City Council’s support for the Gala. She noted recent productions have been possible because of the generosity of patrons. She announced that tickets are available at chancetheater.com/gala.

Mark Richard Daniels stressed the need to address housing and homeless issues. He referenced Item No. 19 and requested that the City Council provide alternatives. He called upon the State and federal governments to stand up and address the issues.

Duane Roberts expressed reservations against Item No. 19 and potential ramifications if the item is approved. He referenced an email he sent, which suggested that the proposed ordinance adding Chapter 11.11 includes language that violates the First Amendment. He summarized that the language suggests individuals only have the right to sit on a sidewalk if they are spectating an event previously authorized by the City, but ignores the right to sit if engaging in free speech activities. He added that the courts have ruled that sidewalks are a public forum and requested that the City Council table the item until further notice. He recommended that the City Attorney’s Office clean up confusing, vague, and broad language and insert language stating the ordinance is not applicable to activities protected by the First Amendment.

Dan Vozenilek with AT&T expressed concern with Item No. 20. He explained that AT&T has been working with the Public Utilities staff and attending meetings, however, certain issues have been occurring outside of the meetings that have not been brought to AT&T’s attention. He added that some issues require that AT&T rework their projects and submit permits with the Public Works Department, which would delay the process three to four months. He added that AT&T understands the City’s desire to remove overhead telecommunications facilities within 12 months, however, there City Council Minutes of October 8, 2024

may be occasions where delays occur beyond their control. He expressed appreciation for the ability to work with staff on the timeline for larger and more complex projects. He reported that another issue are legal concerns, including declaring the poles a public nuisance once they have been topped by the Public Utilities Department. He explained that the poles are still regulated and inspected by the California Public Utilities Commission.

Carolina Mendez shared that the affordable housing issue is real and personal. She reported rents in Anaheim are rising faster than residents can keep up. She noted other cities, including Costa Mesa, Santa Ana, and Irvine, have adopted inclusionary housing policies. She added that developers are building affordable units, and mixed-income units are thriving. She shared that inclusionary housing policies will not drive developers away from Anaheim’s world-class Convention Center, Disneyland, or booming tourism industry. She thanked Mayor Aitken for recognizing the issue and taking action.

Diana Kotler, CEO of Anaheim Transportation Network (ATN), addressed the City Council on Item No. 15, which represents a potential funding source for the City and ATN. She noted that ATN is a federally recognized public transit operator for the City and operates under a franchise ordinance, however, it does not guarantee State Transit Assistance grant funds for ATN. She added that Item No. 15 will allow ATN to put Anaheim on the State Controller's list, which would allow ATN to submit certain metrics and ridership information to the State, which can produce up to $1.5 million back to the City every year. She explained that any future action for the allocation of State Transit Assistance dollars will be presented to the City Council for consideration and allocation to ATN. She added that the agreement will provide ATN flexibility to apply for competitive State Transit Assistance funds, and an opportunity to partner with the City for competitive applications for public transit services in the City. She thanked the Public Works Department for assisting ATN with preparing the agreement and Senator Umberg for his leadership on the topic.

Father James Noble spoke on Item No. 21 and highlighted housing opportunities for low-income and very-low-income households. He suggested requirements for recipients of affordable housing opportunities, including immigration status. He suggested different sites throughout the City for development.

Adam Wood with the Building Industry Association expressed concern over the inclusionary housing ordinance proposed in Item No. 21. He explained that the policy will create more challenges in creating already much-needed housing. He shared the challenges with inclusionary housing policies, including placing burdens and costs on others, and mentioned additional policies to increase affordable housing production. He mentioned that cities such as Santa Ana and Irvine, which have adopted inclusionary housing policies, have not solved the affordability crisis. He shared concerns with other speakers' comments, placing the burden of producing affordable housing on the developers. He requested clarification on the effective date of the ordinance.

Rebecca Kovacs-Stein addressed the City Council on Item No. 16, approving the acquisition of the Crown Motel across from La Palma Park. She recommended the temporary use of the motel for bridge housing, care, and support, following the City’s implementation of an encampment clearing program. She highlighted the City’s receipt of grant money from the State. She supported the implementation of the Kennedy Commission’s proposal for inclusionary housing for Item No. 21. She expressed her support for inclusionary housing, particularly for low, very-low, and extremely-low income levels.

Tanya Navarro expressed concern about the rising cost of living and provided examples of how that has impacted her life. She highlighted other cities, including Brea, Irvine, Santa Ana, San Clemente, Laguna Beach, San Juan Capistrano, La Habra, and more, that have adopted laws requiring developers to construct more affordable housing. She shared that as a resident of Santa Ana, the city has not solved the affordable housing crisis, but has made decisions that impact residents. She noted City Council Minutes of October 8, 2024

that Santa Ana’s inclusionary housing efforts have resulted in over 4,000 new units. She shared that Anaheim residents are struggling to find affordable housing, and it is crucial to require developers to contribute to the solution. She encouraged the City Council to adopt the suggestions provided by the Kennedy Commission.

Isuri Ramos, Deputy Director of Chispa, encouraged the City Council to implement a strong inclusionary housing policy. She explained that it’s the City’s responsibility to ensure that development benefits the residents, especially the most vulnerable populations. She shared that it is Anaheim’s turn to prioritize affordable housing and require market-rate developers to contribute to the affordable housing stock. She encouraged the City to approve a policy that requires a higher percentage of on-site affordable housing units, a higher in-lieu fee when developers opt out, and units dedicated to the 30% Area Median Income (AMI) level.

Penelope L., Organizing Director of Chispa, expressed support for Item No. 21. She explained that inclusionary housing policies are practical in securing long-term funding for affordable housing and have been adopted by cities such as Irvine, Costa Mesa, and Santa Ana. She added that a robust inclusionary housing policy is essential to increase the affordable housing stock and ensure all residents thrive. She expressed support for the Kennedy Commission’s recommendations, which advocate for stronger requirements and higher fees to ensure the needs of all income levels. She shared her personal experience with the rising cost of living. She encouraged the City Council to increase the availability of affordable housing to all income levels.

Vern Nelson thanked Mayor Aitken for bringing forward an inclusionary housing ordinance. He commented that the proposed ordinance could be stronger and more focused on low and very-low- income households. He mentioned there were hesitations regarding whether funds from the Housing Trust Fund would lead to affordable housing. He thanked Council Member Rubalcava for supporting rent control and tenant protections. He reported that construction on the north side of La Palma Park has impacted street parking, causing people to park at The Salvation Army Thrift Store. He recommended opening City-owned parking spaces on the west side of the store. He thanked everyone who will be attending the upcoming Anaheim Democrats meeting, which will cover the upcoming election.

Karen Ticer Leon, a 46-year resident of Anaheim, inquired about the progress of affordable housing in Anaheim. She expressed concern over the number of developments in District 3, causing overcrowding on Broadway.

Mayor Aitken announced that the City Council would be discussing affordable housing later, if Ms. Leon was available to stay for the presentation.

Chris Leon, a 31-year resident, reported that developers are only reserving a percentage of units for affordable housing instead of complexes. He inquired about the City’s previous First-Time Homebuyers Program. He shared that people need low-income housing and additional parks beyond those located in Anaheim Hills.

Lara Watkins, General Manager of Best Western Park Place, expressed safety concerns over the bus stop located near the property. She explained her staff is petrified to use the bus stop. She reported drug use, overdoses, health and welfare checks, and verbal assaults at the bus stop. She noted that staff are waiting for the bus on the property or paying for ride-sharing services.

Tina Riley requested the City Council’s support for Item No. 19.

Sandra Cazares requested transparency on affordable housing and who it would apply to. She explained that under current policies, people making $20 to $25 per hour may not qualify for City Council Minutes of October 8, 2024

affordable housing. She noted that families are moving out of the City and schools are losing students due to the high cost of living. She reiterated her request for transparency.

Kenneth Batiste questioned whether the Council makes decisions for developers or residents. He reported that inclusionary housing creates affordable housing for the less fortunate. He referenced the high rental costs up to $5,000 per month at some developments in the City. He noted developers will not stop building in Anaheim and encouraged the City Council to help the less fortunate.

Greg Eisenman expressed his support for Item No. 19. He reported that his hotel employees are fearful due to the increased unhoused population near the property. He shared that the hotels, hotel employees, and the Police Department need help. He added that the Resort community is willing to be part of the solution, however, employees and guests need protection. He requested that the City Council consider their needs and support Item No. 19.

Marisol Ramirez, interim Co-Executive Director for OCCORD, expressed her support for Item No. 21 along with OCCORD’s partner organizations. She reported that there are adjustments needed to maximize the policy’s effectiveness. She shared that many residents, including essential workers, are forced into extreme living conditions. She noted many families and neighbors are sharing small spaces, and there are severe parking shortages. She explained that the housing crisis extends beyond individual families, affecting communities and institutions, including schools. She added that the inclusionary housing ordinance is a crucial step to address the housing crisis. She recommended that the City Council adopt inclusionary requirements similar to other cities to meet affordable housing goals. She urged the City Council to adopt the recommendations submitted by the Kennedy Commission to address the housing crisis, to create more inclusive neighborhoods, support the City’s workforce, strengthen schools, ease parking pressures, and build a more equitable City.

Mayor Aitken announced the availability of headsets for Spanish translation and noted that the meetings are translated.

Cecil Jordan Corkern expressed safety concerns about Disney. He commented on homeless encampments. He shared that those wishing to contact him can contact the City Council.

Manuel Hernandez spoke about government agencies using mind control programs, such as Havana Syndrome, to trigger mental illnesses. He explained that the only solution is expensive medication provided by big pharmaceutical companies. He requested that the Anaheim community, the Chief of Police, Mayor, and City Council join him in a united response to eradicate mental illness, homelessness, drug addiction, and advocate for cheaper medicine from big pharmaceutical companies.

Ruben Greg Soto reported that elected officials from Washington, D.C., are assisting him.

John Walton Spring expressed concerns over an alleged victim on the internet who is not receiving medical treatment. He mentioned that he contacted the Anaheim Police Department, but the case was closed without any response. He requested that the City Council acknowledge the victim and take action.

Paul Hyek announced that there is a vacancy on the Orange County Board of Supervisors. He also announced that he is now an Anaheim resident.

Bryan Kaye highlighted his interaction with a City employee. He requested that the City Council acknowledge their constituents. He highlighted an interaction he had with Mayor Pro Tem Kurtz. He requested respect for each other as human beings.

City Council Minutes of October 8, 2024

Mazatl Tepehyolotzin thanked the City Council for their support of the Indigenous Peoples’ Day Committee and its murals. He highlighted the work with neighborhoods to add more murals. He highlighted the murals on Anaheim Boulevard and South Street, and another mural of a native woman. He highlighted individuals in the community who acknowledge state-recognized tribes. He thanked former Council Member Dr. Jose Moreno for recognizing Indigenous Peoples’ Day. He expressed support for Item No. 21.

Malakatl Tekuan thanked the City for allowing all forms of teachings and culture. He encouraged everyone to be more of a community and spread healing across the world.

Matthew Duncan shared his experience at a City of Lakewood Council meeting regarding the city’s contract with a coyote trapper. He noted he had expressed his concern with the proposed plan and that the Mayor of Lakewood and a Council Member acknowledged him. He shared that the city trapped for two weeks and mitigated.

Marc Herbert continued his comments from Closed Session. He recommended that the residents review the falsification of addresses for the Housing Element submitted to the State. He noted the Housing Element Update Committee has not held a meeting in three years. He expressed concerns that the Housing Element Update Committee has not discussed the housing crisis. He requested regular communication from the City. He addressed Adam Woods’ comments and the production of affordable units.

Paul Sanford, CEO of Wincome Hospitality, thanked the Anaheim Police Department for addressing issues raised by employees. He highlighted the City Manager, Chief of Police, and Mayor Pro Tem Kurtz, who have contributed to solutions to resolve those issues. He shared that employees have complained that they are unable to use the Anaheim Transportation Network (ATN) free transportation due to safety concerns at bus stations. He thanked Council Members for their accountability regarding affordable housing and home purchasing solutions. He remembered Bill O’Connell, who taught them about social responsibility to employees.

Ross Omari, President of Safeco Protective Services, shared that Safeco provides protective services for 14 hotels in Anaheim. He noted he works with his team at night due to increased concerns about the unhoused population and camping at bus stops. He requested the City Council’s support of Item No. 19.

COUNCIL COMMUNICATIONS:

Mayor Pro Tem Kurtz thanked the Police Department, Code Enforcement, Public Works, and City Park Rangers for the work they have done in the last couple of weeks to keep public spaces safe and clean. She shared that earlier in the day, staff provided information regarding new safety protocols for businesses, hotels, restaurants, and shops in the resort area. Mayor Pro Tem Kurtz stated that staff always communicate with unhoused individuals to find out what services they need and are willing to accept. She noted that Deputy Director Sandy Lozeau informed Council that staff found housing for a veteran within two days of their contact with him and they also found housing for an unhoused mother with a five-month-old baby. Mayor Pro Tem Kurtz thanked staff for their efforts. She recognized Stone Age, a tile business located on State College Boulevard, for assisting a non-profit fix a sign for their site. Stone Age was established in 1997 by Hatem Hajali and he runs the shop with two of his three children. She stated Stone Age is a community neighbor and recommended that everyone visit Stone Age for their home remodeling needs.

Council Member Faessel requested to adjourn the meeting in memory of Dr. James “Jim” Kline. Jim lived in District 5 for almost 40 years, and he was an active neighbor and community leader. He was a Navy Corpsman, a Chiropractic Doctor, a father, and a husband to his long-time wife, Julie. Council City Council Minutes of October 8, 2024

Member Faessel shared that Julie has been an Anaheim Police Department volunteer for over 38 years and she and Jim were active block captains in their neighborhood. He stated that Jim will be missed and expressed condolences to his family. Council Member Faessel recognized Andres Alejandro Martinez, a new Eagle Scout in District 5. He shared that once someone is an Eagle Scout, they are always an Eagle Scout. He shared that his son Greg is also an Eagle Scout, and he stated it is great training. He stated that Andres is a wonderful young man, and his dad is an electrician at the Anaheim Convention Center. Council Member Faessel joined Mayor Aitken and Mayor Pro Tem Kurtz at Ponderosa Elementary School for a school supply giveaway. It was a lot of fun and there were approximately 200 students in attendance. He thanked the nonprofits who supported the giveaway.

Council Member Faessel attended Reborn Cabinets Manufacturing Day event. Reborn Cabinets has been in business in Anaheim for almost 35 years. The event is an opportunity for high school aged students throughout Anaheim to see what a career in modern manufacturing looks like. It also provides students with alternate training opportunities if they will not be attending a four-year college.

Next year will be the 10th Anniversary of the event and he will be there as a supporter. Council Member Faessel shared that he along with Council Member Meeks and Mayor Pro Tem Kurtz attended the North Orange County Community College District Statewide Summit. There were several hundred continuing education leaders in attendance, and it was nice to speak to them regarding technical education.

Council Member Leon shared that his office hosted the Second Annual Active Older Adult Appreciation event. There were fun activities, heartwarming performances from the Anaheim Ballet, a photo booth, and Zumba classes to celebrate active older adults for their vitality, good spirits, and their incredible contributions to the community. He thanked community partners, including St. Justin Martyr Church, Anaheim Car Club, Home Depot, and City staff. He noted that his office organized a Resource Fair, in collaboration with Assemblymember Sharon Quirk-Silva's Office, to bring together the diverse community for a day of support and connection. Essential services like food, health care, and valuable resources were provided to help families thrive. He thanked Anaheim residents who attended the event as well as community partners who provided resources to make the fair a reality.

Council Member Leon congratulated Taqueria Los Gueros #2, the September Restaurant of the Month. The restaurant is known for its authentic tacos, vibrant atmosphere, and every meal is crafted with passion and tradition. The Taqueria is located on Lincoln Avenue between Euclid Street and Brookhurst Street and is open every day of the week. Council Member Leon congratulated My-D Pins & Collectibles, the September Business of the Month. The owners, Josh and Jen, opened their shop at a different location in Anaheim, but relocated to their current location off Katella Avenue, a mile from Disneyland. He encouraged everyone to visit My-D Pins & Collectibles if they are searching for vintage pins, Funko Pop figures, the latest action figures, Marvel, G.I. Joe, Transformers, Yu-Gi-Oh, Pokémon, and more. He shared that the owners also host free pin trading events quarterly. My-D Pins & Collectibles has been recognized as the number one gift boutique in Anaheim by the Orange County Register and it is a staple in Anaheim's collector scene. Council Member Leon invited Anaheim residents to a Community Cafecito event that his Office is hosting in collaboration with Assemblymember Avelino Valencia’s Office on Saturday, October 19, 2024, at 10 a.m. at 85 Degrees. He stated it is an opportunity for community members to request local or legislative updates, provide community ideas, connect with neighbors, or just have a friendly conversation.

Council Member Leon invited everyone to his 2nd Annual Trunk or Treat event on Friday, October 25, 2024 from 6:00 p.m. to 9:00 p.m. at the Anaheim Elementary Key Campus. He stated he is excited to partner with Anaheim Car Club, Brown Descents Car Club, and Naranjeros Car Club. He stated that costumes are encouraged.

Council Member Rubalcava stated that she represents approximately 50,000 residents that live in District 3. She shared that Center Greens Park is the 67th park in the City, is the 16th park in District 3, and is located next to City Hall. She noted that District 3 is also home to Pearson Park, the first park in Anaheim as well as La Palma Park, the second park in Anaheim. Council Member Rubalcava City Council Minutes of October 8, 2024

stated that families in District 3 are lucky to have a significant amount of green space. She thanked City staff, including Community Services Director Sjany Larson-Cash and her team for the park improvements because she has received positive feedback from residents in the area. Council Member Rubalcava shared that when she was elected, she was inspired by Tustin Council Member Letitia Clark to implement a Girls in Government Program in Anaheim. In working with City staff, she was able to bring the program to fruition. On Saturday, October 5th her office hosted approximately 80 young ladies and provided them with business etiquette training from Disney, as well as financial literacy from the Orange County Federal Credit Union. There were also two panels, one of which was a professional panel which exposed the young ladies to jobs within government. Community Services Director Sjany Larson-Cash, a representative from Anaheim Fire & Rescue, Police Sergeant Lucy Sandoval who was born and raised in the City of Anaheim, and Human Resources Director Linda Andal were on that panel. It was a good opportunity for the young ladies to learn about things that are going on in the City for exposure to these jobs. She thanked Mayor Pro Tem Kurtz for being on the panel of elected officials along with Assemblymember Sharon Quirk-Silva, and Tustin Council Member Letitia Clark. She thanked the sponsors who helped make the event possible including OCVIBE, AltaMed, Congressman Lou Correa, local Realtor Meghan Shigo, Cal State University, Fullerton, Anaheim Community Foundation, Southern California Gas Company, and the Anaheim Police Association. Council Member Rubalcava thanked Ross Omari, a local business owner, for his contributions to Anaheim High School's volleyball team and for helping the basketball team get to different events.

Mayor Aitken announced that her office in collaboration with Mayor Pro Tem Kurtz’s office will be hosting a pumpkin giveaway on October 23rd from 3:00 p.m. to 5:00 p.m. at the Ponderosa Community Center. She invited her Council colleagues to the event to hand out pumpkins and to see the kids dressed in their cute costumes. Mayor Aitken announced the Fall Festival will be held on October 26th. She stated it is one of her favorite events and this year marks the 100th year of the parade. She reminded everyone to set up their chairs for the parade early on October 26.

CITY MANAGER’S UPDATE:

City Manager Vanderpool shared that for the past month, staff have stepped up efforts to restore public spaces by providing help to homeless individuals encountered while ensuring parks and other spaces are welcoming to everyone. He noted that later in the meeting, Council will be considering updates to the Anaheim Municipal Code regarding citywide efforts with parks being a major focus. In early September, serious drug and other problems at La Palma Park were addressed through a series of interventions by Anaheim Police, security, Anaheim Fire & Rescue, Code Enforcement, Public Works and the City Manager’s Office. La Palma Park was cleared of major issues that prevented many in the community from enjoying all that La Palma Park has to offer. High-visibility cameras at Pearson, Chaparral, John Marshall, Sage, Stoddard, and Twila Reid parks were installed.

The cameras provide a visual deterrent and include loud speakers to remotely warn people about being in the parks after hours or other activity. Staff have been doing nightly cleanups of parks and security is clearing the parks of anyone after closing time and bringing in police as needed. There has been a clear improvement in City parks with positive feedback from residents. Staff also continue to address the challenge of homelessness along railways. City Manager Vanderpool stated that no one should be living along railways because it is dangerous and inhumane. Railways are being cleared each week with a major cleanup between Brookhurst Street and Euclid Avenue in late September. A camera has also been installed on Euclid Street to allow staff to remotely monitor and respond as needed and they are also looking at other rail locations for additional cameras because with parks, railways, and other spaces staff knows issues can return. City Manager Vanderpool noted that the Anaheim Police Department’s Homeless Assistance Liaison Officers team has more than doubled, going from four to eight officers plus two sergeants. He shared that the City was recently awarded nearly $10 million in grants for its ACCESS Program, an innovative collaboration with the courts to City Council Minutes of October 8, 2024

provide real help as an alternative to sentencing and accountability when multiple offers of help are declined. ACCESS is receiving $8 million in a state grant and $550,000 in a federal grant. Funds will go toward expanding services available through ACCESS. He stated that as staff work to restore public spaces, they offer help from the first point of contact or all the way up to going before a judge.

City Manager Vanderpool thanked Council for their leadership and support of this citywide initiative, and he stated that staff will continue efforts on behalf of the community. He shared that on Wednesday, from 10:00 a.m. to 1:00 p.m. at the Honda Center, the City will join with employers to hold a regional career expo and job fair. More than 150 employers are expected, including the Honda Center. Employers are looking to fill immediate openings with job search help available to attendees.

On Monday, October 14th, the City is proud to again mark Indigenous Peoples’ Day with a morning prayer and walk from Anaheim Coves to City Hall starting at 9:00 a.m. On Saturday, October 26th, marks a major milestone for Anaheim with the 100th Halloween Parade through downtown. The parade starts at 7:00 p.m. and will run to about 9:00 p.m. Before that, everyone is invited to the Fall Festival along Center Street Promenade. This will be a special event with the City’s communications team live broadcasting the parade to Anaheim.net/TV for everyone to watch.

CONSENT CALENDAR: At 7:11 p.m., the Consent Calendar was considered.

MOTION: Council Member Faessel 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 Rubalcava.

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 Library Board meeting of August 12, 2024 and the Parks and Recreation Commission meetings of March 23, 2022, April 27, 2022, May 25, 2022, July 27, 2022, August 24, 2022, September 28, 2022, October 26, 2022, December 7, 2022, February 22, 2023, March 22, 2023, April 26, 2023, May 24, 2023, June 28, 2023, July 26, 2023, August 23, 2023, September 27, 2023, October 25, 2023, December 6, 2023, January 24, 2024, February 28, 2024, March 27, 2024, April 24, 2024, May 22, 2024, June 26, 2024, July 24, 2024, and August 28, 2024.

2. Approve recognitions recognizing community leaders for their efforts in the approval of the Little Arabia freeway signs; Oliver Cortez for his contributions to the Chicano Heritage Art Exhibit; and Sofia Romero for her contributions to the Rose Bush Vine neighborhood.

3. Accept the bid from Ortiz Custom Upholstery, Inc., in an amount not to exceed $67,000, for lobby furniture repair services for a one year period with four one-year optional renewals, and authorize the Purchasing Agent, or designee, to execute all necessary documents related to the agreement in accordance with Bid #9819.

4. Accept the bid from Montgomery Hardware Company, in the amount of $215,730, for the removal and replacement of the Anaheim Convention Center Arena doors (Bid #9813).

City Council Minutes of October 8, 2024

5. Ratify an increase of $18,970 in the value of the current Master Agreement with Mesa Energy Systems, Inc., dba Emcor Services Mesa Energy, for repairs to the Hall E chiller unit at the Anaheim Convention Center, raising the not to exceed amount of $95,745 to $114,715, to cover the expenses associated with re-rigging the compressor due to a faulty gasket identified after the initial rigging.

6. Award a purchase order to Amtech Elevator Services, in the amount of $175,000, to replace 166 escalator steps at the Anaheim Convention Center; and authorize the Purchasing Agent, or designee, to execute documents, as necessary, related to the purchase order.

7. Award a contract to the lowest responsible bidder, R.J. Noble Company, in the amount of $1,266,407.95, for the Dale Avenue Rehabilitation Project from Ball Road to Orange Avenue; determine that the Project is Categorically Exempt under the California Environmental Quality Act pursuant to Class 1, Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations; authorize the Director of Public Works to execute the contract and related documents and to take the necessary actions to implement and administer the contract; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

8. Award the construction contract to the lowest responsive and responsible bidder, Aster Construction Services Inc., in the amount of $2,084,225, for the Rio Vista Park Improvements (Re-bid) Project; determine the project is categorically exempt under the California Environmental Quality Act pursuant to Class 2, Section 15302 (Reconstruction), Class 3, Section 15303 (New Construction) and Class 11, Section 15311 (Accessory Structures) of Title 14 of the California Code of Regulations; authorize the Director of Public Works to execute the contract and related documents and to take the necessary actions to implement and administer the contract; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

9. Determine that the proposal submitted by Burns & McDonnell Engineering Company, Inc., dba Burns & McDonnell (BMcD), is the most advantageous to the City and award a Design-Build Agreement to BMcD, in the amount of $27,707,073 plus a 10% contingency, to design and construct the Southwest Substation Upgrade Project and waive any irregularities in any of the proposal documents; determine that the project and related construction activities associated therewith are exempt under the California Environmental Quality Act pursuant to Sections 15301(b), 15302(c), 15303(d), 15303(e), and 15304 of Title 14 of the California Code of Regulations; authorize the Director of Public Works to execute the agreement and related documents and to take the necessary, required, or advisable actions to implement and administer the agreement; authorize de minimis changes to the agreement that do not substantially change the terms and conditions of the agreement, as determined by the City Attorney’s Office, and authorize the Risk Manager to approve changes to the insurance, indemnification, and liability provisions of the agreement as long as the changes are in the City’s best interest; increase Anaheim Public Utilities Department Fiscal Year 2024/25 Electric Capital Improvement Program budget by $27,707,073; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with Public Contract Code Section 22300.

City Council Minutes of October 8, 2024

10. Approve the 2024-01 Amendment to an agreement with Insurity LLC, successor in interest to Systema Software LLC, for continued services of claims management and billing services for a one year extension of the Master Software and Services Agreement, in an amount not to exceed $115,000; and authorize the Director of Human Resources to execute the amendment.

11. Approve Workforce Innovation and Opportunity Act Agreements with the Orange County Conservation Corps and Taller San Jose Hope Builders, dba Hope Builders, in amounts not to exceed $283,290 and $231,783, respectively; each with terms beginning July 1, 2024 through June 30, 2026; to assist local disadvantaged youth to prepare for joining the workforce; and authorize the Director of the Housing & Community Development Department, or designee, to execute and administer the agreements.

12. Approve the Fifth Amendment to Agreement with Frome Developments Omega, LLC, increasing the compensation amount by $137,040, for the lease of a storage facility for police property and evidence, extending the term of the agreement for a three year period beginning December 1, 2024, and ending on November 30, 2027; and authorize the Chief of Police, or designee, to execute the amendment.

13. Approve the Final Map and Subdivision Agreement of Tract No. 19286 with Landsea Homes of California, LLC, for a proposed residential condominium project comprised of 44 attached single-family townhomes with open space, private drives, and landscaped areas, located at 2952-2960 West Lincoln Avenue.

14. Approve Amendment No. 4 to Cooperative Agreement No. C-4-1714 with the Orange County Transportation Authority for the Anaheim Canyon Metrolink Station Improvement Project, increasing the reimbursable funds to the City of Anaheim by $25,950 for a total amount not to exceed $408,950; and increase the Department of Public Works revenue and expenditure budget for FY 2024/25 in the amount of $25,950.

15. Approve Agreement for Public Transportation Services in the City of Anaheim with the Anaheim Transportation Network to document roles in response to the State Controller’s comments regarding its ability to ascertain whether the City is a transit operator that is required to submit Financial Transaction Reports as part of State Transit Assistance funding processes; and authorize the Director of Public Works, or designee, to take the necessary actions to implement and administer the agreement.

16. RESOLUTION NO. 2024-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the acquisition of the Crown Motel located at 1136 N. La Palma Park Way in the amount of $3,488,000, including associated relocation costs, sourced in whole or in part from Community Development Block Grant (CDBG) Funds and the City’s Community Improvement Project Funds; approving an Agreement for Sale of Property and Joint Escrow Instructions by and between the City of Anaheim and Bhagu C. Patel and Damyanti B. Patel, husband and wife, substantially in the form submitted herewith for the purchase of the Crown Motel, in the amount of $3,288,000; authorize the Director of Community Services, or her designee, to execute and administer the agreement on behalf of City Council Minutes of October 8, 2024

the City of Anaheim; and, increase the FY 2024/2025 Community Services Department’s budget by $3,488,000.

17. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 1.04.310 and adding Section 1.04.312 of Chapter 1.04 of Title 1 of the Anaheim Municipal Code relating to the procurement of certain equipment, materials, supplies and services for the Public Utilities Department to address emergency repairs, operations, maintenance, and construction of electric and water utility infrastructure.

Determine that the ordinance relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and therefore is not a project within the meaning of the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, Section 15378(b).

Approve an Agreement with ProcureAbility, Inc., in an average annual not-to-exceed amount of $1,503,704 plus 15% for as-needed extra services, for strategic sourcing and procurement services for a five year term with two two-year optional extensions; authorize the Public Utilities General Manager, or designees, to execute all related documents and to take the necessary or advisable actions to implement, fund, and administer the agreement.

Item No. 17 was withdrawn by staff.

18. Approve minutes of the City Council meeting of March 26, 2024.

BUSINESS CALENDAR:

19. ORDINANCE NO. 6589 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.11 (Obstruction of Public Rights-of-Way and Facilities), to Title 11 (Public Property) of the Anaheim Municipal Code prohibiting interference with the public’s right of access to public streets, sidewalks, rights-of-way and facilities [includes determination that adding Chapter 11.11 to the Anaheim Municipal Code is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations].

ORDINANCE NO. 6590 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.13 (Prohibition on Repair and Sales of Bicycles and Bicycle Parts in Public Areas) to Title 11 (Public Property) of the Anaheim Municipal Code to prohibit bike sales and bike repairs on public property [includes determination that adding Chapter

11.13 to the Anaheim Municipal Code is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations].

ORDINANCE NO. 6591 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 6.30 (Smoking in Public Places) of Title 6 (Public Health and Safety) of the Anaheim Municipal Code to prohibit smoking in public parks and within specified distances of schools, day care centers and transit stops [includes determination that amendments to Chapter 6.30 of the Anaheim Municipal Code are not subject to the California City Council Minutes of October 8, 2024

Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations].

City Attorney Fabela reported that on September 10, 2024, Council Member Meeks, working in conjunction with Council Member Rubalcava, requested to agendize a strengthening enhancement of the City’s anti-camping and similar ordinances to ensure that Anaheim parks and rights-of-way (ROW) are safe and open for their intended use. He explained that the Council Members worked with the Anaheim Police Department (APD) and staff to review what other cities have enacted or are considering after City of Grants Pass v. Johnson, with the intent of bringing back ordinance changes tailored to address Anaheim’s needs. He shared that there are three ordinances presented for consideration and that Chief of Police Rick Armendariz and Chief Assistant City Attorney Kristin Pelletier were also present to answer questions.

City Attorney Fabela reported that the City’s Municipal Code (AMC) prohibits camping on public property, storage of personal property in public areas, and detailed procedures for the empowerment and return of any property unlawfully stored in public areas. He explained that the AMC does not specifically address individuals who are not camping, but are nonetheless blocking or impeding access to public rights-of-way and facilities, preventing their intended use by the public. He added that it does not prohibit or address the health hazard created by individuals smoking in or near areas frequented by children, such as parks, schools, and day care facilities, or the increase in criminal activity caused by the theft and resale of bikes and bike parts. He explained that the proposed ordinances apply to everyone in the City, however, staff recognizes that the ordinances will impact the unhoused population using the public ROW as living spaces. He referenced the City Manager’s Report provided, which highlighted that the City has been a local leader in developing innovative ways to offer assistance and services to its unhoused population, including dedicating a team of mental health and law enforcement personnel to provide resources to such individuals, and funding shelters which make hundreds of beds available to individuals without housing. He added that the City Attorney’s Office has pioneered ACCESS (Anaheim Collaborative Court Evaluating Strategies and Solutions), offering mental health, substance abuse, and other services to unhoused individuals who find themselves in the criminal justice system. He reported that the City recognizes that residing on public property without adequate shelter, facilities, or resources creates health and safety risks to both unhoused individuals and the public at large, and can facilitate criminal activity.

City Attorney Fabela presented the first ordinance, which is the addition of Chapter 11.11 to prohibit activity that is impeding access to public rights-of-way and facilities. He explained that if adopted, it will prohibit leaving personal property unattended in or on a public ROW; sitting on chairs or similar items, or sleeping or lying down on a public ROW; sleeping, sitting or lying down, or storing personal property, in a median, parkway or improved landscaped area; obstructing a ROW if doing so violates the Americans with Disabilities Act (ADA), is within close proximity to items like driveways, ramps, fire hydrants, ATMs, buildings, intersections, schools or day care facilities, or unreasonably interferes with the use of a ROW by pedestrians, bikes or vehicles; and sleeping or lying down on bus benches or park tables, benches or equipment.

City Attorney Fabela reported that another chapter being proposed is to curtail criminal activity related to the trade of stolen bikes and bike parts. He explained that the Anaheim Police Department frequently encounters bicycle chop shops in and around City parks and public spaces, where bicycles and parts are traded for illegal drugs and other items, contributing to the attraction of additional criminal activities in these areas. He reported that over the past five years, over 250 bikes have been reported stolen annually, and these bikes are often disassembled for the resale of their constituent parts. He explained that if adopted by the Council, the proposed ordinance will prohibit assembling, disassembling, selling, or distributing i) three or more bikes, ii) a bike frame without gear cables, iii) two bikes with missing parts, or iv) five or more bike parts, on City property.

City Council Minutes of October 8, 2024

City Attorney Fabela reported that the final proposed ordinance, amending the City’s existing smoking ban (AMC Chapter 6.30), would expand the AMC to prohibit smoking in public parks, as well as within twenty-five feet of bus benches and two hundred feet of schools and day care centers. He explained that the dangers of secondhand smoke are well-documented, and broadening the City’s existing smoking ban to protect children, members of the public, and the areas they frequent is necessary to promote public health and safety. He added that the ordinance also highlights that smoking cannabis, weed, and plant products in public areas is prohibited by the AMC (and State law), and notes the increase in such activity since the legalization of recreational cannabis in 2016. He concluded that under the proposed ordinances, the emphasis and goal will be compliance rather than punishment.

He reported that the Anaheim Police Department will continue to have discretion to issue citations or arrests, and under State law, the City prosecutors will continue to have discretion to prosecute violators. He noted that for violators experiencing homelessness, services for shelter, health, and housing will continue to be offered as an alternative enforcement, on the spot or via ACCESS, in lieu of traditional prosecutions.

DISCUSSION: Council Member Faessel expressed his support for the item. He reported that Anaheim’s first 100-bed shelter, built in 14 days, was located in District 5. He noted the City continues to offer the unhoused population a variety of services. He expressed concerns about comments on whether an influx of unhoused individuals were coming from other cities and inquired if that was the case.

Chief Armendariz responded that over the past weeks, APD has been more collaborative and collected more information. He noted that APD is observing, specifically in the Resort area, contacts with individuals who are not from Anaheim or Orange County, including Riverside, San Bernardino, and the Los Angeles County area. He added that there are a few bus routes that end in the Resort area, specifically on Katella Avenue. He reported that APD will be working with regional transportation to review the situation and come up with solutions to ensure services are provided to those who are visiting and workers who use public transportation
Council Member Faessel explained that since 2014, the City has spent beyond $100 million to address the homeless situation, noting that addressing the issue with unhoused individuals from other communities is a larger burden. He expressed appreciation for the update.

In response to Mayor Pro Tem Kurtz, Chief Assistant City Attorney Pelletier explained that to qualify for Section 8 Housing Vouchers, individuals must have a connection to Anaheim. She added that for shelters, the City is looking for a connection to Anaheim.

In response to Mayor Pro Tem Kurtz, Chief Armendariz explained that when individuals come from other jurisdictions, staff will act accordingly. He explained that the City will provide services and shelter to Anaheim residents. He added that there are other services that the City can provide and additional contacts with the County of Orange. He noted that if there is a crime that is being enforced and the behavior remains unchanged, the APD will issue a citation or make an arrest, if necessary.

He added that APD can connect individuals to other County services, or reconnect them to services where they are from, or verify if enforcement is needed.

Mayor Pro Tem Kurtz referenced comments about hotel employees' safety. She inquired if the Police Department had addressed the issue.

Chief Armendariz reported that the APD has increased the number of Tourist Oriented Policing Officers (TOPS). He explained that there are two full-time officers and a full-time supervisor. He added that those officers are being supplemented with four officers working daytime and evening to City Council Minutes of October 8, 2024

ensure that early morning issues are addressed and also in the evening. He added that APD’s primary focus is safety, health, and the proper use of sidewalks and bus benches.

In response to Mayor Pro Tem Kurtz, Chief Assistant City Attorney Pelletier reported that the provision cited by a public commenter regarding whether the proposed action could be challenged contains an exception. She explained that if someone is lawfully engaged in First Amendment activity, the exception would apply. She added that the proposed action prevents people from using furniture like chairs to sit, sleep, or lie down and blocks the public right-of-way. She read a portion of the ordinance, “other than as part of a lawful event taking place along the public right-of-way”. She added that the ordinance is not designed to impact speech, explaining it is content-neutral, adding that other factors, including time, place, and manner restrictions, would be considered.

Mayor Pro Tem Kurtz expressed her support for the ordinances.

Council Member Meeks expressed her appreciation for staff bringing forward the item expeditiously.

She highlighted the importance of the item and emphasized that safety is a priority for her. She explained that the community deserves safe facilities. She shared that as the former Public Works Director, bus benches were removed to address the homeless situation. She highlighted the importance of the proposed regulations to provide amenities safely to residents, workers, and visitors.

MOTION: Council Member Meeks moved to introduce ORDINANCE NO. 6589 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.11 (Obstruction of Public Rights-of-Way and Facilities), to Title 11 (Public Property) of the Anaheim Municipal Code prohibiting interference with the public’s right of access to public streets, sidewalks, rights-of-way and facilities [includes determination that adding Chapter 11.11 to the Anaheim Municipal Code is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations], ORDINANCE NO. 6590 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.13 (Prohibition on Repair and Sales of Bicycles and Bicycle Parts in Public Areas) to Title 11 (Public Property) of the Anaheim Municipal Code to prohibit bike sales and bike repairs on public property [includes determination that adding Chapter 11.13 to the Anaheim Municipal Code is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations], ORDINANCE NO. 6591 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 6.30 (Smoking in Public Places) of Title 6 (Public Health and Safety) of the Anaheim Municipal Code to prohibit smoking in public parks and within specified distances of schools, day care centers and transit stops [includes determination that amendments to Chapter 6.30 of the Anaheim Municipal Code are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations], seconded by Mayor Pro Tem Kurtz.

DISCUSSION: Council Member Diaz explained that homelessness is extremely complicated, and his constituents request information on what the City is doing to prevent and eradicate homelessness. He shared that Proposition 47 reduced crimes to misdemeanors, which resulted in a lack of accountability for people committing crimes. He mentioned that the City does not remove anyone from the sidewalks during events or protestors. He added that the City will continue to offer services. He shared concerns about the obstruction of sidewalks, bike sales or repairs in parks, and smoking in public spaces. He expressed his strong support for the item.

Council Member Rubalcava echoed Council Member Meeks’ gratitude to the Chief, City Attorney’s Office, and City Manager. She explained that the proposed ordinances are a result of feedback from residents. She shared that it is the Council Members' responsibility, as policymakers, to provide the APD and Public Works with the tools to support the needs of the community. She provided La Palma City Council Minutes of October 8, 2024

Park as an example of increased drug activity and noted a significant number of people living in the park creating unsafe conditions. She added that the APD and other City departments have taken the initiative to clean the parks and offer people services. She emphasized that while the City is creating policies to enhance the tools available to law enforcement to better serve the City, it is a comprehensive approach. She noted the proposed ordinances are necessary to keep the community safe. She provided an example of a youth whose phone was stolen in La Palma Park. She expressed her gratitude for her Council colleagues' support of the ordinance. She requested information on APD’s training priorities for the proposed ordinances.

Chief Armendariz reported that the Homeless Assessment Liaison Officers (HALO) have been training other officers on basic information, including what services are available, who to contact and how, applicable laws and enforcement, and alternative options. He echoed Council Member Rubalcava’s comments about the balanced approach to providing services and enforcing the law for those who refuse and continue to violate the law. He reported that the ordinance allows the City Attorney’s Office to provide alternative services and a diversion through the ACCESS program. He noted that the proposed ordinances will provide staff with a significant tool to keep the community safe.

Council Member Rubalcava mentioned that the City Attorney toured the City and its most impacted areas. She shared that they were able to bridge the gap on enforcement and ensure that law enforcement can enforce the laws and ensure that the community is safe.

Council Member Leon thanked staff for addressing public safety and homelessness concerns in the City. He noted that the City is taking a multi-pronged approach to address the issues. He stressed the importance of addressing illegal activities in public parks. He referenced comments by Deputy Director of Housing and Community Development Sandra Lozeau to pause and acknowledge the positive work the City is doing. He quoted two residents who reached out to him, the first stating, “It is so heartwarming to see city officials recognize a problem and are willing to take action to do something about it. Please, know I'm not the only one in this neighborhood grateful for this.”, the second stating “Cameras are working great. We have gone twice thus far to Chaparral Park, and not only is it clean, but we felt safe. We didn't have to tell our toddler, don't go over there, to avoid drug users who were strung out.” He expressed his support for the item.

Mayor Aitken echoed her Council colleagues’ comments. She shared that the current Council and prior Councils have dedicated a lot of resources to address the very complex issue. She highlighted that Anaheim is a leader in providing services to the unhoused, including the multi-faceted shelter approach, addressing transitional age youth, and working towards placing people in permanent supportive housing. She highlighted the CalOptima program that offers primary care medicine on the streets. She thanked staff who worked on the item.

MOTION: Council Member Meeks moved to introduce ORDINANCE NO. 6589 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.11 (Obstruction of Public Rights-of-Way and Facilities), to Title 11 (Public Property) of the Anaheim Municipal Code prohibiting interference with the public’s right of access to public streets, sidewalks, rights-of-way and facilities [includes determination that adding Chapter 11.11 to the Anaheim Municipal Code is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations], ORDINANCE NO. 6590 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.13 (Prohibition on Repair and Sales of Bicycles and Bicycle Parts in Public Areas) to Title 11 (Public Property) of the Anaheim Municipal Code to prohibit bike sales and bike repairs on public property [includes determination that adding Chapter 11.13 to the Anaheim Municipal Code is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations], ORDINANCE NO. 6591 City Council Minutes of October 8, 2024

(INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 6.30 (Smoking in Public Places) of Title 6 (Public Health and Safety) of the Anaheim Municipal Code to prohibit smoking in public parks and within specified distances of schools, day care centers and transit stops [includes determination that amendments to Chapter 6.30 of the Anaheim Municipal Code are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), and Section 15378 of Title 14 of the California Code of Regulations], seconded by Mayor Pro Tem Kurtz.

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

20. ORDINANCE NO. 6592 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 17.24 (Underground Utilities) of the Anaheim Municipal Code to establish a timeline for removal of overhead facilities, declare a public nuisance, and authorize enforcement and penalties associated with the removal of overhead telecommunication facilities within Underground Utility Districts [includes determination that amendments to Chapter 17.24 of the Anaheim Municipal Code are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(3), 15378, 15301, 15302, 15303, and 15304 of Title 14 of the California Code of Regulations].

Public Utilities General Manager Dukku Lee reported at the July 23, 2024, City Council meeting, staff provided City Council with information on overhead facilities. He explained that staff were asked to return with a proposal to set a completion timeframe. He noted that under the current section of the Municipal Code, utilities with overhead facilities are compelled to complete their work in a timely manner, but it does not specify a time frame for removal. He reported that staff evaluated the previous ten (10) projects, and collectively, telecommunication carriers are averaging 2.4 years to complete the removals. He noted that there are four projects with the majority of overhead facilities still in place. He displayed photos of poles with electrical lines on top and telecommunication lines at the lower level of overhead poles. He explained that once Anaheim Public Utilities (APU) removes the electrical lines, the poles are cut down to the communications level, which requires agencies to transfer customers to their new underground lines before removal. He shared that the longer it takes to complete the projects, the longer it takes for residents to achieve the full benefits of undergrounding, in addition to electric reliability improvements and increased traffic visibility and aesthetics to major roadways.

General Manager Lee reported that staff conducted a survey of other agencies to see if there are other solutions that have sped up removals. He shared that the City of San Diego has similar views to Anaheim’s and is seeking similar remedies. He detailed the City of Pasadena’s approach to withholding permits until poles are removed, but cautioned that it may not be a good long-term solution. He outlined staff’s recommendations, including declaring a pole that remains in the roadway for an extended period of time and is no longer inspected or maintained by APU, a public nuisance.

He shared that 12 months was determined to be reasonable, considering that underground projects take nearly four years to construct, allowing telecommunication companies to prepare accordingly. He mentioned that APU takes, on average, eight months to remove electrical lines following completion of a project.

General Manager Lee reported that following the Public Utilities Board review, staff had additional conversations with several carriers and included language to accommodate very large projects by separate agreement, since 12 months would be challenging for such projects. He added that there are no proposed changes to Chapter 1.20, which establishes the civil citation process that will be followed, including a formal process for notification, review, and appeal. He reported that staff recommends establishing an incentive for those who are able to meet the 12-month timeframe, by having APU pay for certain project-related costs. He explained that if the 12-month timeframe is not City Council Minutes of October 8, 2024

met, after following the due process outlined in Chapter 1.20, the fines would increase. He outlined the telecommunications companies with overhead lines within underground districts over the past decade. He noted that some companies change ownership, which can add to the complexity of having the projects completed.

General Manager Lee reported that two public comments were submitted at the September 25th Public Utilities Board meeting. He noted that Charter (Spectrum) requested language stating that after the City’s contractor completes the conduits and APU begins the 12-month timeframe, they are requesting additional time for other conduits, after the 12-month period begins. He noted that the City does not build Charter’s conduits outside of the design they provide. Additionally, he explained that Charter is able to inspect construction activities at any time if they have field changes to their design or to make any corrections. He reported that staff’s review of the language is that it confuses the timing of reducing certainty, but can accommodate extenuating circumstances as-needed through the provisions in the Code. He added that AT&T submitted a comment to establish a project-by-project schedule, which would essentially render 12 months an aspirational goal rather than an enforceable standard. He noted that AT&T referred to errors that are made by the City’s contractor, but just like with Charter, the City’s contractor builds designs submitted by AT&T when the construction bid package is issued, and can accommodate change orders if there is an oversight or correction needed due to field conditions. He shared that AT&T is invited to project status meetings that are open to all project participants, where the status of construction and progress billings are discussed. He explained that permitting is always a consideration, and if there are extenuating circumstances, APU would take that into consideration, but would ask that AT&T start applying for permits early on. He added that AT&T’s letter addresses several legal concerns pertaining to discrimination against the telecommunications industry and a violation of due process. He explained that APU is following Chapter 1.20, which outlines procedures to review or appeal the City’s determination. He noted the Public Utilities Board reviewed both comments and questioned staff on the legal issues raised, and subsequently recommended the actions unanimously.

General Manager Lee reported that AT&T submitted a letter to the City Council and provided public comments to address vague language in the ordinance and a request for consideration for project- specific circumstances, and that AT&T should determine a reasonable deadline for each project. He added that the term ‘reasonable deadline’ is as uncertain as the proposed ‘in a timely manner’ language. He added that if AT&T determines that a ‘reasonable deadline’ differs from the City’s, there is no remedy proposed. He addressed the confusion on when the 12-month period would begin, and explained that the projects are long-term, taking one to two years, and are reviewed bi-weekly by City staff with the contractor and project participant. He added that AT&T can monitor the progress with their inspector, make corrections to plans, and City’s contractors can complete the conduit systems for all parties involved. He shared that when the final as-built drawings are accepted by the Public Works Department, which oversees all construction activities in the right-of-way, APU will issue a notice beginning the 12-month timeframe. He added that the next comment has multiple components, which stated that the City may be overreaching its authority to establish a timeframe. He explained that the ordinance was prepared by the City Attorney’s Office, similar to other sections of the Code, which are enforceable. He reported that AT&T makes assertions about the hundreds of poles in the City, which are not electrical lines and are maintained and not a public nuisance. He addressed AT&T's concerns that the ordinance could cause harm, stating that the ordinance only speaks to underground districts. He added that APU owns 17,000 poles in the City, with the majority of poles in underground districts owned by the City, and when electrical lines are removed, the City no longer inspects or maintains the poles. He reported that the City is not infringing on AT&T’s State obligations and would not prohibit them from inspecting and replacing poles in underground districts and then removing them 12 months later. He explained that if AT&T challenged the timing, staff would refer them to Chapter 1.20 of the Code which outlines due process, including administrative and judicial remedies.

City Council Minutes of October 8, 2024

General Manager Lee highlighted that the City is not seeking criminal penalties but rather compliance with the time frame. He added that for the four (4) projects that have been stagnant, staff is recommending a six (6) month grace period for completion, with the full effect of the ordinance in place for current projects, including Beach and Cerritos, and future projects. He displayed an image of Brookhurst Street between Ball and Katella, completed in 2013 in conjunction with a street widening project, noting that the project was completed within less than six months in collaboration with the carriers, the City, Public Works, and the communications companies.

DISCUSSION: In response to Mayor Pro Tem Kurtz, General Manager Lee confirmed the length of time it takes for the telecommunications companies to remove overhead facilities.

Mayor Pro Tem Kurtz explained that the City is asking telecommunication companies to participate as partners to improve the community. She expressed her support for the item.

Council Member Meeks thanked APU for their thoroughness and for moving forward and addressing the issue. She explained ‘a timely manner’ would not hold anyone accountable and stressed the importance of completing the projects in a specific time. She highlighted APU’s understanding regarding large, complex projects and working with people and different agencies to move forward.

In response to Council Member Leon, General Manager Lee explained that staff is proposing changes to the undergrounding ordinance and setting specific time frames. He referenced Chapter

1.20, which outlines the civil citation process. He noted the intent is to have specificity and enforceability. He echoed Mayor Pro Tem Kurtz’s comments regarding a partnership with telecommunications companies to find ways to help them if there are obstructions. He clarified that the City is not changing the process.

In response to Council Member Leon, General Manager Lee explained that staff realizes that undergrounding projects for telecommunication carriers are not a high priority, but recognizes that the projects need to be completed.

Council Member Rubalcava expressed her appreciation for APU addressing the concerns of telecommunications companies.

In response to Council Member Rubalcava, General Manager Lee explained that APU contacted the six telecommunications companies within the underground districts, with AT&T being the most vocal and Charter submitting a comment. He added that APU had conversations with Charter to clarify their concerns. He added that the other carriers presented minor points but nothing of contention. He shared that Charter’s comment assured that 12 months was reasonable.

Council Member Rubalcava reported that she does receive correspondence from residents inquiring about the poles. She expressed her appreciation for the plan and incentives with no immediate penalties.

Council Member Diaz reported that he met with AT&T via Zoom and highlighted the current undergrounding on Beach Boulevard. He explained that any concerns he had were addressed, including extending the timeframe for removal if needed. He expressed his support for the item.

Council Member Faessel expressed his support for the item. He expressed disappointment that the Dale Avenue project has not been completed in seven years. He commented that the 2.4 year average shows some projects can be completed more quickly than others. He reported that over 30 years ago, the City Council enacted the undergrounding program with success on major City Council Minutes of October 8, 2024

thoroughfares. He shared that this process is a small setback that needs to be addressed. He inquired about the utility coordination meetings.

General Manager Lee clarified that all carriers were invited to the meetings, with some experiencing confusion. He explained that APU switched to project-based meetings. He provided an example of Beach Boulevard and explained that all participants would be focused on that project. He added that those meetings have been very effective because participants can review drawings and view where conduits are placed and determine any obstructions. He mentioned APU has been successful with other carriers, with AT&T attending some meetings but not all.

Council Member Faessel explained that 12 months is a good place to begin. He noted that if any of the companies discover a hiccup, they would be able to work with APU.

General Manager Lee explained that the proposed language would give staff a tool for enforcement.

He noted that the incentive portion was added to the ordinance because it is staff’s goal to work with the telecommunications companies and treat them as partners.

In response to Council Member Faessel, General Manager Lee clarified that the 12-month period begins when the conduits are complete and as-built drawings are turned over to the companies. He added that staff can coordinate with the companies around the City’s high-voltage contractors due to the project's distance. He explained that it would not be a barrier to the companies, and coordination meetings are held to address obstructions that may come up.

Mayor Aitken thanked staff for their hard work on the item. She understood the impacts on the telecommunications providers; however, she explained that residents wait years for undergrounding and then continue to view remnant poles years after. She applauded Council Member Meeks for highlighting the issue and agendizing the item.

MOTION: Council Member Meeks moved to introduce ORDINANCE NO. 6592 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 17.24 (Underground Utilities) of the Anaheim Municipal Code to establish a timeline for removal of overhead facilities, declare a public nuisance, and authorize enforcement and penalties associated with the removal of overhead telecommunication facilities within Underground Utility Districts [includes determination that amendments to Chapter 17.24 of the Anaheim Municipal Code are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(3), 15378, 15301, 15302, 15303, and 15304 of Title 14 of the California Code of Regulations], seconded by Council Member Rubalcava. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES – 0. Motion carried. Ordinance introduced.

21. ORDINANCE NO. 6593 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adding Chapter 17.40 to Title 17 of the Anaheim Municipal Code establishing inclusionary housing requirements for new residential projects [includes determination that this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule) and is not considered a project as defined pursuant to Public Resources Code Section 21065].

Director of Housing and Community Development Grace Ruiz-Stepter reported that the item is for consideration of an ordinance introducing new affordable housing tools for the City. She explained that at the conclusion of the Affordable Housing Production workshop held on September 10, 2024, Mayor Aitken agendized consideration of an ordinance that would establish an affordable housing requirement for new residential development projects. She added that during discussions in April City Council Minutes of October 8, 2024

2024, staff outlined the benefits and creation of a local housing trust fund, and ultimately established the Anaheim Local Housing Trust Fund on August 13, 2024. She reported that on August 20, 2024, at the Mayor’s direction, staff presented an item to continue the discussion of affordable housing development policies, which included a review of Resolution No. 2018-106, affirming that affordable housing is a priority for the City and encourage collaboration between developers and staff to produce affordable housing. She explained that the current local affordable housing development program, Housing Ambassador Program, is voluntary and does not set specific development goals or provide alternatives to spur affordable housing production. She reported that in response, staff was directed to explore additional policy options, including a more structured inclusionary housing program, and to present detailed information on how such a production program could be structured in Anaheim. She shared that the information was presented to Council at the workshop held on September 10, 2024, which discussed key decision-making points on applying the policy to housing product type, size of development, affordability levels, and potential in-lieu fee options. She noted staff also reviewed examples from three Orange County jurisdictions demonstrating variation and flexibility in crafting a policy that best meets local conditions.

Director Ruiz-Stepter reported that following the workshop, Mayor Aitken worked with staff to draft an ordinance for Council consideration. She outlined the proposed policy, which applies to any proposed for-sale or for-rent residential or mixed-use project with twenty (20) or more dwelling units. She shared that small developments, defined as up to 20 units, are specifically excluded as the production of affordable housing in these developments may be difficult to accomplish and/or may not be financially feasible. She announced that State of California Assembly Bill (AB) 1505, authorizes the legislative body of any city or county to adopt an inclusionary housing ordinance that includes residential rental units affordable to lower and moderate-income households. She explained that in establishing on-site affordable production requirements, jurisdictions must provide alternative methods to satisfy the inclusionary housing requirements. She outlined the City’s proposed policy which allows developers to choose to provide the requisite number of units at the low or very-low- income levels or choose to pay an in-lieu fee for providing the units on-site, hereto referred to as an in-lieu fee. She explained that any fees collected would be deposited into the Anaheim Local Housing Trust Fund, which the Housing Authority will use to support the affordable housing development pipeline. She added that AB 1505 provides other methods included in the draft ordinance for consideration, including off-site construction of required units and land donation to accommodate the production of the required units. She reported that the ordinance includes provisions for a 55-year covenant on for-rent developments and a covenant for the initial buyer on for-sale development that requires an equity share should the initial buyer sell at a market price, which mirrors State Density Bonus Law. She added that the ordinance provides opportunities for flexibility in design standards, proportional allocation of unit types, distribution of units throughout the development, and an Anaheim preference for individuals who live or work in the City.

Director Ruiz-Stepter reported that if approved, the ordinance would take effect 30 days following the second reading. She shared that for development projects in which a formal entitlement application or building plan check was formally submitted to the City on or after October 8, 2024, would be subject to the proposed Inclusionary Housing requirements. She added that staff do not recommend encumbering projects currently undergoing the entitlement process or building plan check process.

She shared that an inclusionary housing ordinance represents a key component of Anaheim’s broader equitable development strategy, but it is not the sole solution to addressing the city’s affordable housing challenges. She explained that meeting the housing needs of lower-income families will continue to require public capital and subsidies and must be integrated with a comprehensive set of strategies that provide housing stability, increase housing supply, and subsidize housing costs. She reported that the action aligns with the Strategic Plan by fostering inclusive communities, expanding housing opportunities for all income levels, supporting economic stability, and promoting long-term sustainable growth. She concluded that the goal of the policy is to City Council Minutes of October 8, 2024

facilitate the production of affordable housing to the extent that a developer elects to pay in-lieu fees, in place of developing affordable units, with the fees being used to provide additional funding for the Anaheim Local Housing Trust Fund. She introduced Deputy City Manager/Director of Planning and Building Ted White, Deputy Director of Housing and Community Development Andy Nogal, and Community Investment Manager Kevin Clausen to address any questions.

DISCUSSION: Mayor Aitken highlighted the group efforts that have contributed to the item. She noted Council Member Faessel suggested reconciling the Housing Committee, Mayor Pro Tem Kurtz recommending creation of a Housing Trust, and additional input from the City Council. She added that staff considered comments from the audience and the developer community to draft a policy that is generally accepted. She expressed her appreciation for her Council colleagues’ input and guidance during the process.

Council Member Diaz explained that taxing developers will not produce more affordable housing. He shared that those taxes will create difficulties recouping the funds on for-sale units. He explained that increasing taxes will limit the sale of goods and provided an example of taxes on tobacco. He explained that taxing developers will have a negative effect on production and on the homeowners.

He added that increased taxes will limit a homeowner’s investment in their property. He expressed that the high cost of housing is due to the lack of production. He explained that zoning is another barrier to housing production, with the City primarily zoned for single-family residential. He added that increased taxes will create challenges for the developer to secure loans. He added that another barrier to housing production is the California Environmental Quality Act (CEQA). He expressed his support for housing production, but could not support the proposed ordinance.

Council Member Rubalcava expressed disappointment that feedback presented during previous discussions was not included in staff’s recommendation, including the proposed 20-unit definition for small developments.

Director Ruiz-Stepter explained that staff worked with the Mayor to prepare the recommendation. She added that the 20 units were referenced from another jurisdiction and were presented to highlight key decision-making points for policy decisions. She explained that staff tried to balance the feedback from the Council’s previous discussions.

Council Member Rubalcava requested clarification on which cities use a 20-unit threshold. She explained that she will support an inclusionary housing policy if it is the best decision for the City. She mentioned her previous request for a clear plan outlined in the ordinance on the use of the in-lieu fees. She inquired about the process for collecting in-lieu fees and how the fees will be used to offset the need for affordable housing.

Director Ruiz-Stepter reported that the in-lieu fee is intended to produce affordable housing, to be deposited into the Housing Trust Fund. She added that the funds will be used to assist with the Housing Authority’s gap financing. She explained the Housing Trust Fund serves as a source to influence production, while the in-lieu fee serves as a production program.

Council Member Rubalcava explained that she previously requested that the City remain competitive to maintain an area where people want to develop.

Director Ruiz-Stepter explained that staff reviewed the City’s zoning and determined that 13 to 18 units per acre was considered a small development. She added that if a density bonus is requested that more units would be developed, but that would include affordable housing units.

City Council Minutes of October 8, 2024

In response to Council Member Rubalcava, Director Ruiz-Stepter confirmed that the number is based on current densities. Deputy City Manager White clarified that the numbers are based on development intensities that are allowed by the City’s General Plan and Zoning Code. He explained that the 18 units are established due to current typical developments in the Residential Low-Medium category.

In response to Council Member Rubalcava, Deputy City Manager White clarified that the Hills Preserve (SALT Development) is 498 units on a unique 70-acre site, the development on Loara and Broadway is 315 units, and the Mill Townhome project has 56 units.

Council Member Rubalcava expressed concern about the analysis per acre. She reiterated her request for a specific plan on the use of in-lieu fees because the Housing Trust Fund could apply the fees to any program.

Director Ruiz-Stepter explained that the Housing Trust Fund budget would be presented for approval to the Council on an annual basis. She added that the City Council can direct staff to control where the in-lieu fees are applied.

Council Member Rubalcava explained that the fastest way out of poverty is through homeownership.

She shared that restricting the benefits on sales would not benefit low-income families. She proposed that if the action includes for-sale properties, to limit it to moderate housing to exclude the covenant requirement. She explained that if there was a moderate for-sale property, the in-lieu fee would be included, but not for affordable units.

Director Ruiz-Stepter explained that the program is structured to mirror the City’s Density Bonus Program. She added that the model used at the 100 West affordable housing property is an equity share model, which means that when equity increases, the City receives a portion for its contribution and assistance.

In response to Council Member Rubalcava, Director Ruiz-Stepter clarified that through the adoption of the policy, the City can contribute to programs to assist homebuyers.

Council Member Rubalcava requested not to limit opportunities for affordable for-sale units compared to moderate units.

In response to Mayor Pro Tem Kurtz, Community Investment Manager Clausen explained the hypothetical presented. He explained that for a 240-unit for-rent development, the set aside for affordable units would be 10%, broken into two sub-categories: 7% for low-income at 80% of Area Median Income (AMI), and 3% for very-low at 50% of AMI, for a total of 24 units being affordable. He added that if the developer chose not to develop those units, they would pay the in-lieu fee. He reported that the in lieu-fee would be based on the average unit square footage and the in-lieu fee.

He explained that an average unit is 875 square feet, multiplied by the total of 240 units, then multiplied by the proposed $10 per square foot, would require the developer to pay $2.1 million in lieu of providing the 24 affordable units.

Mayor Pro Tem Kurtz clarified that the developer would be paying the in-lieu fee for the entire project and not only the affordable units. Director Ruiz-Stepter clarified that if the developer was building the affordable units, they would spread them across the project. She explained that the cost of producing affordable units would impact the overall development.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter clarified that the Housing and Community Development Department would add the set-aside affordable units during the 55-year covenant to the City Council Minutes of October 8, 2024

stock the Department already monitors. She shared that the developer is building affordable units in return for incentives from the City. She explained that Staff Analyst Monica Pinto monitors the units for vacancies, inspections, and rentals.

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter reported that, on occasion, staff will follow up with apartment owners for reports and spot checks for the affordable units.

Mayor Pro Tem Kurtz inquired if any cities are using a 20-unit standard for in-lieu fees.

Director Ruiz-Stepter explained that the number varied by city. She shared that the City of Costa Mesa recently adopted a model for 50 units. She reported that the City of Santa Ana is lower than 20, with a variety of other cities higher or lower. She explained that staff reviewed development in the City and determined what qualified as a small development based on a one-acre site. She added that anything beyond 20 units would involve assembling sites for a larger project. She emphasized that the number provided was for discussion purposes, explaining that 50 units was adopted by the City of Costa Mesa.

Mayor Pro Tem Kurtz requested clarification on Santa Ana’s method based on a sliding scale for the habitable area.

Community Investment Manager Clausen explained that the habitable area excludes common recreation areas within the building, including laundry rooms, laundry facilities, purely based on the square footage that the unit is occupying.

In response to Mayor Pro Tem Kurtz, Community Investment Manager Clausen clarified that the City of Costa Mesa’s scale would be based on the building footprint, which could include hallways and laundry rooms. He further clarified that each city can define the area differently, but it is generally assumed that hallways and laundry rooms are included.

In response to Council Member Meeks, Director Ruiz-Stepter confirmed that staff conducted an analysis of the cost of affordable housing projects.

Council Member Meeks inquired whether staff conducted an analysis on the impact of the in-lieu fee on developers.

Director Ruiz-Stepter explained that there is an analysis of the affordability gap.

Council Member Meeks expressed support for affordable housing but requested solutions for funding that would not burden the middle class.

Director Ruiz-Stepter clarified that staff evaluated new developments and compared the rents for those to moderate income. She added that most of the new construction is far above market rates.

Council Member Meeks concurred that the presentation did not include many previous topics of discussion. She explained the importance of incentivizing developers to build for-sale units. She inquired if there were other concepts that staff were reviewing, including adjusting the City’s affordable housing standards. She explained that she could not support the item, but would be open to exploring other alternatives.

Council Member Leon thanked Director Ruiz-Stepter and the Housing and Community Development Department for their continued efforts in addressing affordable housing in the City. He requested additional information on projects currently in process, including for-sale and for-rent projects.

City Council Minutes of October 8, 2024

Deputy City Manager White reported that the Hills Preserve Project is forthcoming, a proposed larger 450 residential unit apartment complex at the Festival Shopping Center, and OCVIBE. He shared that apartment projects are experiencing challenges with financing due to interest rates. He noted that the market is very sensitive to different variables and explained that the City will continue to see a mix of multi-family and for-sale products over the next ten (10) years.

In response to Council Member Leon, Director Ruiz-Stepter confirmed that developers can participate in the City’s Housing Ambassador Program. She explained that staff discuss density bonuses, the City’s needs, and a potential partnership.

In response to Council Member Leon, Director Ruiz-Stepter explained that the contribution amount is voluntary and up to the developer’s discretion. She added that the City works to reduce the burden for developers to develop in Anaheim. She shared that the City has taken on certain costs that are typically paid by the developer. She noted that when staff meet with developers, they highlight the benefits of cost savings to develop in Anaheim compared to other cities and discuss the opportunity to include affordable housing.

Council Member Leon inquired if there are opportunities to reevaluate the policy in the future. Director Ruiz-Stepter explained that the City Council, as the policy-making body, has the authority to review and make adjustments accordingly.

Council Member Leon reported that the proposed policy is a good starting point for the City. He added that there will be opportunities to review the policy in the future.

In response to Mayor Aitken, Director Ruiz-Stepter confirmed that the City tracks costs per square foot for affordable units. She clarified that when staff evaluated that the cost is more than $5 per square foot to build a home ownership unit. She explained that the in-lieu fee should be enough for the City to produce an affordable unit off-site. She added that if the cost reflected the actual amount to produce a unit, it could make production prohibitive and hurt the for-sale market.

Mayor Aitken reported that the intent behind the proposed policy was to reach a decision-making point. She added that the action serves as an invitation to the development community to participate in affordable housing production and be a true partner to the City. She cited examples from the DisneylandForward and OCVIBE projects as examples of developers who have partnered with the City. She noted that the City has requested that hoteliers contribute Anaheim Tourism Improvement District (ATID) funds to build affordable housing. She explained that it was only reasonable to request participation from the for-profit developers in the City. She explained that an in-lieu fee is an important part of for-sale residential development and keeping the units to moderate income. She noted that it is important for the City to remain competitive in for-rent residential development. She explained that the Council is evaluating what is best for the City. She echoed Council Member Leon’s comments that the proposed policy is a good starting point for the City.

Council Member Faessel congratulated Mayor Aitken for bringing the item forward. He expressed concern over the inclusion of for-sale units but remained interested in advancing the item. He explained that the inclusion of for-sale units will create barriers for people purchasing homes by placing the additional price on developers, which will, in turn, place the burden on homeowners. He referenced public commenters suggesting to review the City of Santa Ana’s policy. He noted that the policy may be too complicated for Anaheim. He expressed concern over the 20-unit threshold, adding that the proposed $10 per square foot fee would be better suited for a development with 60 or more dwelling units. He explained that the City of Costa Mesa’s model, with a few adjustments, would be a better starting point.

City Council Minutes of October 8, 2024

In response to Mayor Pro Tem Kurtz, Director Ruiz-Stepter explained that the in-lieu fees collected can be deposited into the Housing Trust Fund. She explained that the City Attorney’s Office will need to verify if the funds can be restricted to affordable housing production.

City Attorney Fabela advised that the structure of the trust fund would need to be reviewed to determine if the funds can be restricted.

Mayor Pro Tem Kurtz echoed Council Member Faessel’s concerns regarding including for-sale units and the 20-unit threshold. She added that she would like to implement a policy soon that is simple to follow. She requested information on the average number of units the City receives request for.

Deputy City Manager White explained that there is a range of units for residential development projects.

Director Ruiz-Stepter clarified that staff did review the City of Costa Mesa’s model and explained that developers may opt for a density bonus instead of inclusionary housing, given the similarity of the models.

In response to Mayor Pro Tem Kurtz, Community Investment Manager Clausen explained that to receive a density bonus, 10% of the units must be low and 5% very-low. He explained that staff structured the percentages to ensure a density bonus is not automatically triggered.

In response to Council Member Rubalcava, Director Ruiz-Stepter explained that staff reviewed legislation and determined that funds are collected and spent according to the specific ordinance.

Council Member Rubalcava inquired if the City can create a separate trust for the in-lieu fees to track and measure the funds. She expressed concern over the production of affordable housing units if the City is only collecting in-lieu fees. She expressed support for Council Member Faessel’s remarks to act now.

Council Member Leon recommended 35 or 40 units as the threshold. He also supported a separate trust for the in-lieu fees. Mayor Pro Tem Kurtz requested clarification on if the funds could be restricted.

In response to Mayor Aitken, City Attorney Fabela clarified that for revisions made during a first reading, it is important that the revisions or changes are easy to define to still introduce the ordinance. He noted the for-sale units could be separated from the ordinance and convert the 20 units to 35 or 40 to preserve the first reading.

MOTION: Council Member Leon moved to introduce ORDINANCE NO. 6593 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adding Chapter 17.40 to Title 17 of the Anaheim Municipal Code establishing inclusionary housing requirements for new residential projects [includes determination that this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule) and is not considered a project as defined pursuant to Public Resources Code Section 21065], to establish inclusionary housing requirements for new residential projects of 35 units or more and to restrict the funds deposited into the Affordable Housing Trust Fund to create affordable housing units.

DISCUSSION: City Attorney Fabela clarified that if the funds are deposited into the trust fund, the trust fund parameters can be addressed separately. He advised that if the funds are deposited into a separate fund, the ordinance could not be presented as a first reading.

City Council Minutes of October 8, 2024

In response to Council Member Leon, City Attorney Fabela explained that if staff encounters obstacles between the first and second reading, staff would return to Council for direction to move forward with a second reading.

MOTION: Council Member Leon moved to introduce ORDINANCE NO. 6593 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adding Chapter 17.40 to Title 17 of the Anaheim Municipal Code establishing inclusionary housing requirements for new residential projects [includes determination that this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule) and is not considered a project as defined pursuant to Public Resources Code Section 21065], to establish inclusionary housing requirements for new residential projects of 35 units or more and to restrict the funds deposited into the Affordable Housing Trust Fund to create affordable housing units, seconded by Council Member Faessel. ROLL CALL VOTE: AYES – 5 (Mayor Aitken and Council Members Kurtz, Leon, Rubalcava, and Faessel); NOES – 2 (Council Members Diaz and Meeks). Motion carried. Ordinance introduced, as amended.

Following the vote, Council Member Faessel thanked his Council colleagues for listening to one another and the Mayor for introducing the item.

Mayor Aitken thanked Council Member Faessel for his comments. She explained that the policy is for Anaheim residents and another tool for the City to use. She thanked the Council Members who supported the item.

22. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting the State of California take emergency action to strengthen and stabilize California’s marketplace for property insurance.

Senior Administrative Analyst Alyssa Guerrero reported at the September 10, 2024 City Council meeting, Council Member Natalie Meeks requested a resolution to urge the State of California to take emergency action to strengthen and stabilize the state’s marketplace for property insurance. She explained that in 1988, California voters passed Proposition 103, which established strong consumer protections aimed at maintaining fair and affordable insurance rates to foster a competitive marketplace. She noted recently, two of the State's largest insurance companies, accounting for over 27% of the admitted insurance market, announced they would cease issuing new homeowners and commercial property policies in California, and several other companies, representing over 36% of the market, indicated plans to restrict new policies. She explained that the reduction in available insurance options significantly impacts consumer access to coverage, leaving property owners across the State unable to secure new policies or have limited options for property insurance. She reported, as stated in the resolution, that the City of Anaheim has a unique disposition with neighborhoods located near wildfire areas, which can potentially put homeowners at risk of losing or obtaining insurance policies that protect their properties. She explained that for those unable to secure coverage, homeowners are compelled to apply for the California Fair Access to Insurance Requirements (FAIR Plan), a state-established risk pool designed to provide temporary coverage.

She explained that the limited insurance options for consumers have resulted in a steady increase in FAIR Plan enrollment over the past five years, which jeopardizes the plan’s stability. She reported that the proposed resolution urges the State to take emergency action to strengthen and stabilize California’s marketplace for property insurance. She added that recently the San Bernardino County Board of Supervisors and City of Yorba Linda adopted resolutions urging the State to take immediate action to address the property insurance crisis. She noted that if approved, the resolution will be transmitted to the Insurance Commissioner, State Legislature, and Governor.

City Council Minutes of October 8, 2024

DISCUSSION: Council Member Meeks shared that the insurance crisis is affecting people in high fire hazard areas. She explained that insurance plans are becoming unaffordable. She explained that increased insurance rates impact development.

MOTION: Council Member Meeks moved to approve RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting the State of California take emergency action to strengthen and stabilize California’s marketplace for property insurance, seconded by Mayor Pro Tem Kurtz.

DISCUSSION: Council Member Leon requested clarification that the response is to a Statewide problem and not restricted to a portion of the City or one city.

Mayor Aitken expressed concerns with the proposed resolution as opposed to sending a letter from one Council Member or a group of Council Members. She explained that the action may be interpreted as advocating for deregulation and weakening of Proposition 103, which ensures transparency on how insurance rates are set and determined. She explained that when Proposition 103 was enacted, insurance companies were allowed to include different factors to determine rates.

She noted that the Insurance Commissioner was elected and started regulating insurance companies, and it was to advocate for consumers who had been taken advantage of by the insurance industry. She provided an example in the state of Florida when insurance rates were deregulated and increased two and a half times. She shared that she would not support the item and preferred that a letter be sent by Council Members who support the item.

Council Member Meeks clarified that the item is not advocating deregulation. She explained that the Insurance Commissioner's office was taking months or years to approve rates for insurance companies. She added that it has caused insurance markets to leave California. She clarified that the request is for the State to become more proactive in addressing and acknowledging the issue. She emphasized that the item is not about deregulation or weakening protections for residents.

Mayor Aitken referenced comments from the State Legislature commissions to advocate for protection for 85% of homeowners in endangered areas, with a new requirement for 5%. She expressed her concern that heightened rates will go into effect without any public process. She reiterated her request for a letter rather than a resolution.

Council Member Rubalcava reported that at the State level, there were complaints and concerns about the insurance landscape. She shared that there are residents in District 3 who are getting their insurance canceled, and insurance companies are no longer taking new policies. She highlighted the expanded coverage for customers referenced in the resolution. She explained that if the issue is limited to Council Members, the issue will become political. She expressed her support for the item.

Mayor Aitken expressed concern over the request to adjust the rate approval process, which conflicts with Proposition 103.

Council Member Faessel asked Mayor Aitken if there were any sections that could be removed that would lead her to support the item.

Mayor Aitken suggested continuing the item to the next City Council meeting to reach a compromise.

Council Member Meeks reported that she would work with Mayor Aitken on recommended revisions and continue the item at the next City Council meeting.

MOTION: Council Member Meeks withdrew her original motion to approve and moved to continue the City Council Minutes of October 8, 2024

item to October 29, 2024, seconded by Mayor Pro Tem Kurtz. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES - 0. Motion carried.

23. Discuss and provide direction to staff on (1) whether to present for the Council’s consideration a local ordinance restricting the acceptance of gifts from certain restricted sources, and (2) the general nature and scope of the restrictions of any ordinance so presented.

City Attorney Fabela reported that at the request of Council Member Leon, in collaboration with Council Member Diaz, staff is bringing forth a discussion on gift restrictions, outlining what exists under current State law and what the Council can consider to bolster restrictions under a local ordinance. He introduced Assistant City Attorney/Ethics Officer Artin Berjikly, to provide additional input.

City Attorney Fabela reported that under State law, there are restrictions on accepting gifts. He explained the emphasis under State law is on public disclosure and transparency rather than banning gifts or low monetary limits. He provided the definition of a bribe, accepting gifts in exchange for local action, which is illegal. He reported that State law specifically allows for more stringent local restrictions. He explained that, under State law, a gift is anything of monetary value that confers a personal benefit on the recipient to the extent that consideration of equal or greater value is not received. He added that the State rules are that anything over $590 from a single reportable source in a calendar year is prohibited. He clarified that the amount is adjusted every two years by the Consumer Price Index. He reported that anything over $50 must be reported on a Form 700. He outlined exceptions to the State’s restrictions on gifts, including gift returns within 30 days without having to report or count against the annual maximum from a single source, and tickets received under the City’s ticket disclosure policy. He explained that the tickets are disclosed on Form 802 with the City Clerk’s Office. He added that gifts from close or personal friends or family members are also excluded. He shared that some cities implement enhanced restrictions. He reported that some cities have set the gift limit to lower amounts, or to any reportable source, or to apply to lobbyists or those with business before the agency.

City Attorney Fabela reported that in consultation with Council Members Leon and Diaz and the Ethics Officer, he outlined local restrictions that could be considered effective in limiting the perception of undue influence. He shared that the limit could be lowered from lobbyists or those with business with the City, or restricted sources, to $50 or another number less than the State maximum.

He explained the gift restriction could apply to elected officials or all Form 700 filers within the City, which is typical among other agencies. He reported that the City Council can also apply the gift restriction to all City employees. He added that the gift restriction can be expanded to all gifts, not only ones from lobbyists and restricted sources, but also to any reportable source, such as an Anaheim business owner.

City Attorney Fabela outlined possible restricted sources, including those seeking a City contract within the past 12 months, current City contractors, those seeking a building license, permit, or other entitlement within the past 12 months, and registered lobbyists. He advised that enforcement is required if the City Council proceeds with a local gift restriction. He suggested that any gift restriction be included as part of the Sunshine Ordinance with an emphasis on compliance with a warning to cure within 30 days, versus strict enforcement. He explained that if there is a desire for harsher consequences, the City Council can ensure that intentional or illegal behavior is referred to an outside law enforcement agency. He added that internally, penalties could be censure or employee discipline.

He outlined the City Council’s options to move forward with a local ordinance, set a monetary limit, City Council Minutes of October 8, 2024

potentially lower the monetary limit to all reportable sources or restricted sources, and finally decide what enforcement options would apply.

Council Member Leon thanked the City Attorney and Ethics Officer for their work and research on the item. He reported that the intention is to strengthen the Sunshine Ordinance to continue to restore public trust in the City. He noted that the current gift limit from a restricted source, lobbyist, or someone doing business with the City is $590. He proposed a $50 limit on gifts from restricted sources and registered lobbyists. He explained that the goal is compliance, transparency, and accountability and not punishment. He expressed interest in applying the restriction to all Form 700 filers. He reiterated that the item is an opportunity to reestablish trust, encourage transparency and accountability, eliminate any ambiguous situations that could be construed as undue influence, and prevent conflicts of interest.

Council Member Diaz expressed his support for the $50 gift limit, a 30-day grace period to return gifts, and that the policy applies to restricted sources or lobbyists.

In response to Mayor Aitken, City Attorney Fabela confirmed that City Council Aides, full-time and part-time independent contractors, Department Heads, City Council, and the City Manager’s Office file Form 700s.

Assistant City Attorney/Ethics Officer Berjikly reported that there are approximately 600 to 700 Form 700 filers. He clarified that there are designated filers under the Conflict of Interest Code pursuant to Government Code Section 87300. He added that there are high-level filers pursuant to Government Code Section 87200, which includes elected officials, Planning Commissioners, and certain Department Heads.

In response to Mayor Aitken, Assistant City Attorney/Ethics Officer Berjikly clarified that the 87200 filers report all sources of gifts. He added that the Conflict of Interest Code designates filing requirements for filers under Government Code Section 87300.

Mayor Aitken expressed support for the increased requirements. She inquired if there was an easier method to search for Form 700s on the City website.

City Clerk Theresa Bass reported that the Form 700s for elected officials are linked on the City’s transparency website. She clarified that the webpage only includes Form 700s for the City Council and Council Aides, and not all Form 700 filers.

In response to Mayor Aitken, City Clerk Bass explained that the only Form 700s filed with the State are the 87200 filers, including elected officials, Planning Commissioners, the City Manager, City Treasurer, and City Attorney. She noted that Form 700s for 87300 filers are only filed with the City Clerk’s Office and are not publicly posted.

In response to Mayor Aitken, City Clerk Bass confirmed the Form 700s for 87300 filers would be requested through a Public Records Act Request.

Mayor Pro Tem Kurtz suggested that the City consider a chat box for accessibility.

Council Member Faessel indicated that the current policy was acceptable.

Council Member Diaz explained that the proposed restrictions demonstrate transparency to the public.

City Council Minutes of October 8, 2024

MOTION: Council Member Leon moved to direct staff to come back with an ordinance at a future meeting to reduce the current $590 gift limit from restricted sources to $50 for all Form 700 filers, seconded by Council Member Rubalcava.

DISCUSSION: Council Member Meeks expressed her support for the proposed restrictions. She provided an example of a gift being provided and having to determine the cost of the gift.

Assistant City Attorney/Ethics Officer Berjikly clarified that the proposed ban would apply to lobbyists and restricted sources. He explained that the State outlines 25 exceptions and some situations may not apply to the proposed restriction. He noted that the City Council can discuss restricted sources and timing in more detail at a later date.

In response to Mayor Pro Tem Kurtz, City Attorney Fabela clarified that the item included potential direction to staff, which allows staff to move forward to present a proposed ordinance at a later date.

MOTION: Council Member Leon moved to direct staff to come back with an ordinance at a future meeting to reduce the current $590 gift limit from restricted sources to $50 for all Form 700 filers, seconded by Council Member Rubalcava. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES – 0. Motion carried.

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

Council Member Meeks requested a memorandum listing the affordable housing standards for the City, how those compare to current market rate units that are being built, and the cost to develop an affordable housing unit in the area.

Council Member Rubalcava requested to agendize an assessment from Chief of Police Armendariz regarding street takeovers, including the City’s process, affiliation with the Orange County Task Force, the number of police officers focused on the initiative, and if social media is monitored. She requested an assessment regarding development linkage fees including what other cities that have linkage fees tied to development are doing. She requested recognizing Nathan Bowman and Brian Chwan from the Community Services Department for their efforts on behalf of Girls in Government Day.

ADJOURNMENT: At 10:16 p.m., Mayor Aitken adjourned the City Council in memory of Dr.

James “Jim” Kline.

Respectfully submitted,
Theresa Bass, CMC
City Clerk