Anaheim City Council
August 26, 2025

ANAHEIM CITY COUNCIL
REGULAR MEETING OF JUNE 10, 2025
The regular meeting of June 10, 2025 was called to order at 3:01 p.m. in the Council Chamber of Anaheim City Hall, located at 200 South Anaheim Boulevard. The meeting notice, agenda, and related material were duly posted on June 5, 2025.

MEMBERS PRESENT: Mayor Ashlegh E. Aitken and Council Members Natalie Meeks, Ryan Balius, Norma Campos Kurtz, and Kristen M. Maahs. Council Member Carlos A. Leon and Council Member Natalie Rubalcava joined the meeting during Closed Session.

STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and City Clerk Theresa Bass
ADDITIONS/DELETIONS TO CLOSED SESSION: City Clerk Theresa Bass reported that Closed Session Item No. 1 has been removed from the Closed Session agenda and continued to June 17, 2025.

PUBLIC COMMENTS ON CLOSED SESSION ITEM: None
CLOSED SESSION: At 3:02 p.m., Mayor Aitken recessed to closed session for consideration of the following:

1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Winter Myers v. Anaheim Convention Center; City of Anaheim, USDC Case No. 30-2023-01340784-CU-PO-NJC
Item No. 01 Continued to City Council meeting of June 17, 2025.

2. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Linda Andal, Human Resources Director Name of Employee Organization: Anaheim Fire Association At 4:12 p.m., Mayor Aitken reconvened the City Council.

MEMBERS PRESENT: Mayor Ashleigh E. Aitken and Council Members Natalie Meeks, Ryan Balius, Carlos A. Leon, Natalie Rubalcava, Norma Campos Kurtz, and Kristen M. Maahs
WORKSHOP: Proposed Fiscal Year 2025/26 Budget (Citywide Overview; Administrative Support Departments; Community Services; Housing & Community Development; Public Works; and Public Utilities)
City Manager Jim Vanderpool reported the workshop is the first of two on the City’s proposed budget for FY 2025/26. He noted that the presentation will include a budget overview and presentations from Community Services, Housing and Community Development, Public Works, and Utilities with presentations from public safety, Planning, Economic Development, and Convention, Sports, and Entertainment next week. He shared that the budget upholds funding for the City’s services to the community, which are the most extensive services of any Orange County city. He reported that the balanced budget presented included the use of reserves, bond proceeds, and one-time revenues ITEM # 19
City Council Minutes of June 10, 2025

from the sale of Car Park 2. He explained that the City is experiencing challenges with Transient Occupancy Tax (TOT) revenue growth compared to previous years. He shared that the City is anticipating a modest TOT growth of 2.4% for the next fiscal year. He added that there are higher costs for everything and higher labor costs. He noted that the changes are reflected across other cities and organizations. He further reported that although the payment of 1997 Resort bonds will generate $120 million in annual revenue, the payment is not expected until 2027. He shared that the City projects increased visitor revenues in the following years due to OCVIBE and DisneylandForward.

City Manager Vanderpool shared that the results of the Citywide classification and compensation study and expiring labor agreement pose the prospect of higher labor costs in upcoming years. He noted that staff will continue to monitor the federal budget. He explained that while there would be the potential for cuts to federally funded programs which would impact anticipated revenue after the bonds have been paid. He shared that despite these challenges, the community can be reassured that the City will continue to work through these issues with their input, guidance, and public engagement.

Citywide Overview and Administrative Support Departments Director of Finance Debbie Moreno reported that the proposed budget is aligned with the City’s approved Strategic Plan. She noted that the Strategic Plan has six multi-year goals, and each goal has an associated set of strategies for success and reflects the City’s plans for the next 10 years. She shared that while building the budget, staff considered forecasts from economists and local universities and relied on the professional judgement of staff and industry experts. She reported that the budget includes modest revenue growth and supports the City’s existing levels of service, but does not contemplate a recession or economic downturn. She shared that the national economy has been resilient, inflation has stabilized, and consumer demand is steady, as average earnings have increased. She explained that there are recession concerns due to the effects of potential tariffs on Gross Domestic Product (GDP), increases in unemployment, and changes in consumer confidence levels. She added that luxury spending and travel show signs of strain, and household debt is at an all-time high.

Director Moreno shared that California faces several difficult issues as the State continues to have the highest unemployment rates in the country, instability in the home insurance market, wildfire impacts and a looming budget deficit. She reported that the risk of federal spending cuts could further impact the state budget and could directly impact Anaheim. She noted that in Orange County, development is strong, but travel through John Wayne airport has declined by 10%. She reported impacts to TOT are the result of fewer international and domestic travelers coming to the US and California, who are instead choosing to travel to Asia and Europe. She shared that there may be an increase in tourism with Disneyland’s 70th Anniversary; however, there may be volatility with some months experiencing growth while others decline.

Director Moreno reported that the proposed FY 2025/26 budget includes Citywide expenditures totaling $2.4 billion. She shared that while the General Fund budget is only 22% of the total budget, it is the source of the majority of the City’s discretionary funding and is used to support the City’s core services such as Police, Fire, parks, and libraries. She noted that the remainder of the funds are restricted for specific purposes such as Enterprise operations that include electric, water, and wanitation utilities, and are not available to fund general City services.

Director Moreno reported that the budget includes a proposed Capital Improvement Program (CIP) of $268.6 million. She explained that the CIP is a 5-year fiscal and planning tool that allocates budget for capital projects to rehabilitate, improve, or build new public infrastructure, such as streets, parks, City Council Minutes of June 10, 2025

and libraries. She noted that most projects are supported by restricted funding sources and divided into seven (7) project categories. She reported that the proposed CIP budget includes 5 years of capital needs; however, only the first year will be adopted. She noted that approval of the plan does not guarantee approval of individual projects, and through the development process, projects will be presented to City Council for final approval and contract award.

Director Moreno reported that the General Fund is the main repository of tax revenues and discretionary sources of funding. She noted that the “Big 3” revenues (Transient Occupancy, Sales and Use, and Property Taxes) make up 74% of General Fund revenue sources. She shared that the largest source is Transient Occupancy Tax (TOT) at 39%, followed by Sales and Use Tax at 18%, Property taxes at 17%, and Business License, Fees and Permits, other revenues, and transfers from other funds, making up the remaining revenue.

Director Moreno reported that the proposed TOT budget for FY 2025/26 is $247 million or 39% of the General Fund operating sources. She noted that visitors to the City pay a 15% tax on hotel, motel, and short-term rental stays of 30 days or less. She shared that TOT is the City’s largest source of General Fund revenue and is driven by visitors to the Anaheim Resort and generates a net surplus of more than $140 million after all debt service and resort-related expenses are paid. She noted that it helps fund services to the community that would otherwise be funded by taxes on Anaheim residents.

She reported that the TOT projection is $241 million or 2.8% below the prior year's actuals and 11% below budget. She shared that despite declines, the TOT is expected to grow 2.4% over the next 12 months. She added that the proposed TOT amount of $246.6 million is still below the FY 2023/24; however, staff expect mixed results throughout the year and will monitor performance. She noted that TOT is expected to grow moderately in years 2-5 of the Five-Year forecast with average increases beginning at 3.9% before leveling out at 3-3.4% per year.

Director Moreno reported that the proposed Sales and Use Tax budget for FY 2025/26 is $115 million, or 18% of General Fund operating sources. She explained that Sales and Use Tax is a tax applied to the sale of tangible personal property. She shared that Anaheim’s sales tax rate at 7.75% of retail sales. She noted that the City receives 1 cent of every dollar spent in Anaheim, taxes collected by the state and paid to the City quarterly. She highlighted the City’s diverse and balanced economy, with 30% from general retail and the remaining 70% is shared equally among the food, transportation, construction, and business-to-business categories. She reported that the current year sales tax is projected to be $112 million, 4% over the FY 2023/24 actuals. She noted that sales tax revenues have increased across all sectors except transportation due to the transition from gasoline to electric and hybrid vehicles. She shared that the projected sales tax for FY 2025/26 is $115 million, an increase of 2.5% from the projected FY 2024/25 revenues. She noted that future years increase will increase 3% annually on average based on a moderate, sustained economic growth.

Director Moreno reported that the proposed Property Tax budget for FY 25/26 is approximately $111 million, or 17% of General Fund operating sources. She noted that all real and tangible personal property in the State is subject to a property tax equal to 1% of the value. She shared that the County collects the revenue and distributes it to local taxing entities, noting that the City’s share is 20%. She added that the balance is shared among other local taxing entities, including the County, Schools and special districts. She reported that property tax revenue is projected to be $106 million, 4.4% higher than FY 2023/24. She added that the volume of property sales has slowed with higher interest rates, but property values have remained stable. She noted that FY 2025/26 revenues are estimated to be $110.8 million, a 4.1% increase, or $4.4 million from the current year projection. She noted that increases in the out years are moderate, while tapering to the statutory increase of 2%.

Director Moreno reported on General Fund Uses and Expenditures, noting that nearly half of the uses are dedicated to keeping the City safe (Police and Fire). She noted that 6% of expenditures are City Council Minutes of June 10, 2025

dedicated to Providing the Necessities (Utilities and Public Works), 15% for ensuring quality of life, and 7% towards support departments. She reported that a small portion of transfers go toward Economic Development and other funds, with the majority to support debt. She shared that the bulk of the debt is for Resort Debt or Lease Payment Measurement Revenues (LPMR) that are determined by formula, and equal to a specified portion of TOT, and Sales and Property Tax increments on Disney properties. She added that Convention Center debt, neighborhood improvements for the Convention Center were included in the transfers.

Director Moreno reported that Police make up 40.5% of expenditures. She continued that Fire makes up 24%, Community Services at 10%, Housing and Community Development at 3% which reflects the City’s ongoing commitment to funding homeless shelters and services, Planning and Building at 6%, Public Works at 7%, and Public Utilities at less than 1%. She noted that the expenditure for Public Utilities is mainly for streetlights and support for the 3-1-1 call center. She noted that Administrative and Supporting Activities made up the remaining 9% of expenditures.

Director Moreno reported that labor expenditures totaling $369 million make up nearly 70% of the General Fund budget and include full and part-time salaries, overtime, Fire at minimum staffing and all associated employee benefit costs including medical, dental, workers’ compensation and retirement. She noted that General Fund personnel costs are anticipated to increase 7% over the amended budget due to contractual salary and benefit increases as well as new positions included in the budget. She added that other operating make up 29% of General Fund expenditures and total $154 million, a 4% increase from the amended budget due to normal inflationary increases and intradepartmental service charges related to Information Technology support and Fleet and Facility Maintenance. She shared that debt service and capital outlay make up less than 2% of General Fund expenditures with the majority of debt funding supported by a revenue transfer from the General Fund and paid out of a restricted debt service fund.

Director Moreno outlined the City’s proposed Five-Year Forecast which includes revenue assumptions based on current information and economic forecasts from notable universities, professional consultants, and professional staff judgment. She reported that the proposed operating sources are $608 million, including the big three revenues and other revenues. She added that operating uses are $671.9 million and include salaries and benefits based on current labor agreements, other operating costs and transfers out to other funds, leaving an operating deficit of $63.9 million. She shared that in March 2021, the City Council approved a plan to issue deficit bonds of $138 million to address the structural deficit coming out of the pandemic. She noted that the City is projected to use $50.5 million of working capital bond proceeds to close the year and use the remaining balance of $33.6 million in FY 2025/26. She noted that $10 million previously set aside for debt repayment and $20.3 million in proceeds from the Hilton parking structure sale to balance operating expenditures. She added that the remaining parking structure sale proceeds will be used in FY 2026/27 and will be drawn down on the City’s reserve funds to balance the deficit. She shared that staff is projecting that the LPMR bonds will be paid off in 2027. She added that early payment of the LPMR bonds allows staff to recommend a budget that relies on reserves and one-time money rather than spending cuts that would temporarily reduce services to the community. She explained that even with one-time money and early repayment of LPMR, the reserves fall to 11% of General Fund Expenditures, which is approaching minimum policy levels.

Director Moreno reported that the Five-Year Forecast does not contemplate the threat of recession, or any other risks that could cause the deficit to grow and fund balances to dip below the minimum policy level. She added that any revenue loss associated with a recession could also compromise the projected payoff of the LPMR revenue bonds. She outlined potential impacts on the Big Three revenues if there were a recession. She reported the potential impacts that labor agreements have on the General Fund and an estimated 1% salary adjustment. She noted that the City is a service City Council Minutes of June 10, 2025

organization with 70% of the General Fund paying for the salaries and benefits of the workforce. She added that the Citywide classification and compensation study and expiring memoranda of understanding with several labor groups bring added risk to the Five-Year forecast. She shared additional risks of federal spending cuts, particularly to Community Development Block Grant (CDBG) funds which help support services in the Anaheim community. She explained that if any of the risks materialize and cause an imbalance, the City may need to reprioritize spending or alter service delivery.

Director Moreno outlined the Administrative Departments’ budgets, including City Council, City Administration, City Attorney, City Clerk, Finance, and Human Resources. She shared that City Council, City Administration, City Attorney and City Clerk are predominantly funded by the General Fund and remain largely unchanged from the prior year, aside from contractual increases in salaries and benefits.

Director Moreno reported that the Finance Department has a proposed budget of $110.7 million and Human Resources has a proposed budget of about $363 million. She noted that their General Fund budgets are $17.5 million and $4.3 million, respectively, with the balance comprised of Citywide debt service, Information Services, Insurance, and the Employee Benefits funds. She added that the supporting departments recover approximately 30% of their General Fund budget from cost allocation to Enterprise Funds. She provided an overview of remaining Council workshops, community meetings, and outreach events. She noted that the proposed budget was made available on May 30th and is available on the City’s website.

DISCUSSION: Mayor Pro Tem Meeks requested additional information on the City’s reserve policy.

Director Moreno reported that the reserve policy has remained between 7 to 11% as a minimum. She shared that the reserve level should be higher and has decreased significantly due to the pandemic.

She recommended not falling below 11%, noting the labor agreement and outstanding issues. She shared that the budget does not include a cushion if there is a downturn in the economy.

In response to Mayor Pro Tem Meeks, Director Moreno shared that the City runs at a 6% vacancy rate, which can buy the City time before needing to consider hiring freezes and cuts.

Council Member Maahs inquired how residents were notified about the budget workshops and community meetings.

Director Moreno shared that the Public Information Office advertises the meetings. She noted that they use various social media platforms.

In response to Council Member Maahs, Director Moreno reported that the meeting for Districts 5 and 6 was a special meeting due to the scheduling for the budget adoption. She shared that the City has not received public participation for FY 2025/26. She shared that staff can adjust strategies accordingly for the next fiscal year.

Community Services Department
Director of Community Services Sjany Larson-Cash shared that Community Services is made up of five Divisions consisting of Golf, Libraries, Parks and Capital Development, Recreation Services and Human and Neighborhood Services. She reported that the Department is proposing a budget with 103 full-time employees and 207 full-time equivalent, part-time employees, highlighting the impact part-time staff have on achieving the Department’s mission.

City Council Minutes of June 10, 2025

Director Larson-Cash reported that the Department’s proposed budget is $79.5 million comprised of General Fund, Capital Funds, and Enterprise funds. She shared that the Department’s budget makes up 3.3% of the City’s total budget and 10% of the City’s General Fund budget. She noted that the proposed Operating Budget is $71.6 million, with a General Fund allocation of $52.7 million and the remainder from other non-capital operating funds. She added that the Capital Improvement budget is $7.9 million and supports all capital projects.

Director Larson-Cash outlined the $71.6 million operating budget comprised of 44% Personnel Costs, 56% Other Operating expenses, and less than 1% for Capital Outlay and Debt Service. She shared that the Administration Budget is $1.2 million and is responsible for the oversight of the Department to provide innovative and creative programs, services and facilities that are designed to improve life in Anaheim.

Director Larson-Cash reported that the $15.8 million Golf Operations budget is a fully self-supported enterprise fund. She highlighted the City’s two golf courses, Dad Miller Golf on the west side and Anaheim Hills in the east. She noted that the popularity of golf has continued to rise with a 5% increase. She shared that golf programs include daily golf, tournaments, junior golf, lessons, restaurants and banquet services. She added that an increased demand and revenue have allowed the City to address deferred maintenance at the two courses. She noted that Gallery Food and Libations opened at Anaheim Hills Golf Club with major success and holes 1 and 12 were updated at the course.

Director Larson-Cash reported that the Human and Neighborhood Services Division $9.2 million budget supports the stability, and well-being of Anaheim’s youth, families, and older adults. She noted that Neighborhood Services acts as a single point of contact for residents, helping to resolve neighborhood concerns through district meetings, community cleanups, and the Mobile Family Resource Center program. She shared that the City’s Older Adults Program fosters social engagement to reduce isolation, in partnership with over 100 local organizations offering health and wellness programs tailored to seniors. She added that Family Services continues to prioritize food insecurity, distributing more than 32,000 food boxes through our facilities. She reported that the Mobile Family Resource Center Program, in collaboration with community partners, made over 14,000 resident contacts, connecting underserved families with essential resources. She shared that the Project S.A.Y. Youth Development Program engaged more than 2,100 teens across the junior high and high schools, providing leadership and enrichment opportunities that support healthy development.

Director Larson-Cash reported that the Library Division budget is $18 million and consists of 7 branch libraries, Heritage Services, Founders Park, Mobile Library Services, and Books on the Go. She noted that in FY 2024/25, libraries had over 5.4 million patron visits and circulated over one million items. She shared that over 146,000 participants attended specialized programs of all ages throughout the library system. She highlighted the Library’s promotion of literacy and community engagement through its Summer Reading Program, enrolling over 4,000 participants. She added that Heritage Services welcomed attendees to the 2nd Annual Native Art Festival, a vibrant celebration of Indigenous art, food, literacy, and interactive activities for all. She highlighted AnaCon, Anaheim Library’s celebration of sci-fi and comics, drew over 1,800 fans, and the O.C. Zine Fest’s 10th anniversary with nearly 2,000 visitors.

Director Larson-Cash reported that the $14.7 million Parks budget maintains the division’s commitment to providing clean, safe parks, trails and recreational facilities. She shared that the City maintains 68 parks spanning over 475 acres, plus an additional 325 acres of natural parks and trails.

She added that the 64 playgrounds promote physical activity, social development and healthy lifestyles for children and families. She shared that parks are valuable amenities that enhance the City Council Minutes of June 10, 2025

quality of life in our community. She highlighted the City’s dedication to protecting and growing the urban forest, by planting 171 new trees in parks and providing 600 shade trees to residents through the Tree Power Program. She shared that the City supported active use of parks by issuing 490 athletic field permits and 695 picnic shelter permits. She noted that 10 park improvement projects were completed with the replacement of old and damaged benches, sidewalks, lighting, and landscaping.

Director Larson-Cash reported that the Recreation Services Division operated with an annual budget of $12.6 million, supporting a wide range of programs and activities that promote personal growth, health and community engagement. She noted that the services are accessible to residents of all ages and are delivered in parks, community centers and neighborhoods Citywide. She shared that Recreation Services offers a wide range of activities, including preschool and afterschool programs, special interest classes, day camps, aquatics, sports leagues, cultural arts programs, and special events. She noted that in partnership with Public Works, Pearson Park Amphitheatre received new lighting, sound system, and wooden pergolas in preparation for its 100th birthday in 2027. She added that over 125,000 attended community events such as Fall Festival, July 4th, Tree Lightings and outdoor concerts at Pearson Park Amphitheatre, Reagan Park and Maxwell Park.

Director Larson-Cash shared that the City continues to invest in parks by adding new facilities and improving existing amenities. She reported that the City opened Center Greens and Little Pine Park and added new playgrounds at Paul Revere, Riverdale, and Canyon Rim Parks, giving families even more places to play and connect. She highlighted the opening of La Palma Park Promenade that transformed the corridor into a safe and beautiful route for active transportation and features a new beautiful art mural.

Director Larson-Cash highlighted upcoming projects, including the development of a new skatepark at Boysen Park and the construction of River Park. She noted that the Haskett Library Makerspace is scheduled to open on August 9th and will serve as a creative hub designed to foster innovation and hands-on learning. She shared that progress continues on the Santa Ana River for the future OC River Walk and highlighted the $1.2 million in funding received from the Coastal Conservancy to support ongoing design efforts. She shared that improvements at La Palma Park continue, and construction of the City’s third splash pad will begin at Brookhurst Park. She added that the City is collaborating with KABOOM! for the 18th time to build a new playground at Maxwell Park. She concluded that Community Services works every day to enrich lives, build connections, and create opportunities.

Housing and Community Development Department
Director of Housing and Community Development Grace Ruiz-Stepter reported that the Department seeks to enhance livability in the City by supporting local business through the work of our Workforce Development team, managing the City’s homeless system of care, providing financial support to local non-profits and other City departments, and addressing the housing needs of those who live and work in Anaheim. She shared that the Department includes 83 full-time and 5 part-time employees.

Director Ruiz-Stepter reported that the Department budget represents 8.5% of the City’s total budget.

She noted that the Department administers under $206 million with the majority of funds derived from federal and state entitlement and/or grant funds. She added that the Department received a $14 million allocation in General funds, equal to 7% of the Department’s total available funding. She noted that the general funds in the budget are largely used to reimburse The Salvation Army for the provision of the 325-bed emergency shelter.

Director Ruiz-Stepter reported that the majority of the funds administered by the Department are held by the Anaheim Housing Authority. She noted that the largest program is the Housing Choice City Council Minutes of June 10, 2025

Voucher, and more than 50% of the Department’s proposed FY 2025/26 budget expenditures will be dispersed as rental assistance payments. She shared that there is a 12% downward trend in expenditures in the upcoming budget. She attributed the change to the termination of COVID-era funding and a reduction in planned land acquisitions for affordable housing developments. She noted that the increase in capital improvements is associated with development activities beginning at the Store One site.

Director Ruiz-Stepter reported that labor costs are contained at 8% of total available funds. She shared that 92% of the budget is toward reimbursement of direct services to various non-profits, training programs, and other City departments and to area landlords in the form of rental assistance.

She noted that the Department is supported by a small administrative section which includes the Director, an Administrative Analyst, and the Department’s fiscal team. She added that costs in the area are largely unchanged except for legal and consulting costs associated with development activities.

Director Ruiz-Stepter reported that the Workforce Development team includes 12 employees. She noted that labor costs have increased as a result of planned Citywide pay rate adjustments. She added that other operating costs include payments for career training programs, resources for wage paid under youth employment programs, and case management services necessary to carry out the State and/or federal goals of the team. She highlighted key performance goals by the Workforce Development Team including participating in 18 recruitment events, interfacing with over 200 Anaheim businesses to increase visibility and job opportunities, assisting 87 adult dislocated workers to connect to training and/or job placement, and supporting 312 youth with career training and/or job placement employment opportunities.

Director Ruiz-Stepter shared that the Housing Authority administers the City’s housing programs. She reported that there are 54 employees, with the largest group assigned to the administration of the Section 8 Housing Choice Voucher Program. She noted that staffing costs are budgeted at $93.3 million and $141 million is allocated to operations. She added that within the operating line item, expenses include rental assistance payments for Section 8 landlords and development activities. She noted that the change is largely due to timing of development activities. She shared that the adopted FY 2024/25 budget was amended to include an additional $4 million to support development activities, including the purchase of Rainbow Inn and the Kettle Motel. She noted that there are no planned acquisitions for FY 2025/26; however, she shared that staff will return to Council for a budget adjustment if an opportunity arises.

Director Ruiz-Stepter highlighted key performance achievements, including working with development partners to secure $135 million in State and federal development funds to complement City assistance, providing loans to developers for an additional 167 affordable housing apartment units, providing rental assistance to over 6,700 families, and maintaining a high performer status for the Section 8 program as rated by the U.S. Department of Housing and Urban Development (HUD).

Director Ruiz-Stepter reported that the Grants Management and Homeless Initiatives area is a nine- person team led by Deputy Director Sandra Lozeau. She shared that the team is tasked with monitoring diverse State and federal grants and overseeing the Anaheim Homeless System of Care, two areas that contribute significantly to enhancing livability standards in Anaheim. She noted that a change to the work group is in the labor category and directly related to the need for new personnel to manage new grants. She shared that three analyst-level positions have been added to assist with administrative and fiscal oversight of homeless services-related grants, primarily in support of the ACCESS (Anaheim Collaborative Court Evaluating Strategies and Solutions) program. She highlighted their work effectively managing the Anaheim homeless system of care, which has grown to include programming for hard-to-serve homeless populations, including the 350 participants in the City Council Minutes of June 10, 2025

ACCESS program. She shared that they have supported the work of non-profit teams and secured $13 million in new funding. She added that the grants have supported over 69,000 individuals in Anaheim, including youth in recreational programs, social services for Seniors, families who made use of the bookmobile or who visited a remodeled park under the direction of Community Services.

She shared that the combined efforts of the Department have led to outreach for 1,270 individuals experiencing homelessness in public spaces, prevention services to 179 individuals before experiencing a destabilizing housing event, assistance to 129 households through rapid rehousing, and the support of 585 people for emergency shelter.

Director Ruiz-Stepter reported that Housing Authority short and long-term rental assistance programs continue to play an integral part in Anaheim’s system of care. She noted that 86 households received short-term assistance, 104 households received assistance from the Section 8 Veteran Affairs Supportive Housing (VASH) program, and 236 homeless individuals and families were provided support to remain permanently housed under the Emergency Housing Voucher Program.

Director Ruiz-Stepter highlighted the recently completed Miraflores development, which is fully leased to 87 low-income families, and the Azure apartments with 89- units which will reopen in October 2025 as permanent supportive housing. She shared that work has begun at the corner of Beach and Lincoln for a new 47-unit senior affordable housing development with construction anticipated to be complete by late 2026. She added that the Department expects to release a Request for Qualifications to identify a master developer for the 6-acre Karcher site and a Request for Proposals (RFP) for sites near Beach and Ball. She shared that in the upcoming year, the Department will be advancing the City Council’s direction by implementing programs under the Local Housing Trust Fund. She explained that the programs include a new downpayment assistance program and continued support of the development of new affordable rental units through the provision of gap financing.

Director Ruiz-Stepter reported that the Department is monitoring the status of federal programs. She shared that federal resources make up a significant portion of the Department’s budget; however, current planning assumes no significant changes. She thanked the Council for their support and acknowledged the Housing and Community Development Department staff.

Public Works Department
Director of Public Works Rudy Emami reported that the Public Works team is dedicated to enhancing the quality of life for residents throughout the City. He shared that Public Works is dedicated to enhancing the quality of life for residents throughout the City. He noted that Public Works provides comprehensive services to meet the City’s complex infrastructure needs, as well as serving as a resource to City Departments to ensure the City provides world-class service to the community.

Director Emami reported that the Department’s core services showcase the mission of planning, building, and preserving the Anaheim community for today and future generations. He noted that they plan improvements that will provide the necessary roadway, storm drain and sewer capacity, and promote alternative modes of mobility. He shared that the proposed budget includes 256 full-time staff and 52 part-time employees.

Director Emami reported that the proposed budget is $298 million, or 12% of the total City budget and 7% of the General Fund. He shared that significant funding sources for the Department include restricted funds, enterprise funds for sanitation, and special revenue funds, including those related to Gas Tax and Measure M2 funding. He noted that Internal Services funds for fleet and facility maintenance make up 18%, and the General Fund makes up 12% of the total Department budget.

City Council Minutes of June 10, 2025

Director Emami reported that the Capital Improvements budget is increasing by 21% due to the timing of multi-year capital projects. He noted that the bulk of the operating budget is spent on “Other Operating” expenses which include expenses for the solid waste and other contracts and intergovernmental services. He noted that labor makes up 24% and capital outlay and debt services make up the remaining 11%.

Director Emami reported that the Administration and Financial Services Division provides planning and management of the Department, budgeting, accounting, and administrative support services, including Engineering records and commuter services. He shared that the Engineering Services Division includes Design, Development Services, Construction Permits, and Traffic and Transportation. He shared that the Operating budget is decreasing by 23% due to the reallocation of insurance charges from Engineering to the Operations division. He added that the Capital Outlay budget is decreasing due to the completion of a capital project in the current year.

Director Emami reported that Public Works Operations performs maintenance for residential streets and sidewalks, street trees, signs, and traffic systems. He added that Operations also provides sanitation services, street sweeping, and administers the Anaheim Resort Maintenance District. He noted that there was a 12% increase in labor costs due to contractually obligated salary and benefit increases and the addition of nine personnel. He added that one of the new positions will support the HALO (Homeless Assessment Liaison Officers) Program and funded by the General Fund. He noted that the remaining positions are funded through enterprise and restricted transportation funds. He added that the Operating budget is increasing by 6% due to the reallocation of insurance charges from Engineering to the Operations division.

Director Emami reported that Fleet & Facility Services maintains and repairs automotive and other equipment, in addition to providing safe and structurally sound buildings and grounds. He noted that the City was recognized as number 26 in the nation by the 100 Best Fleets in the Americas program, which honors top-performing public and commercial fleet operations. He shared that increases are due to contractually obligated salary and benefit adjustments, along with the addition of one Vehicle Technician. He shared that in 2020, the City Council approved the transition from CARE Ambulance Services, Inc. to an in-house emergency transportation model. He shared that the program now operates 18 ambulances, creating the need for an additional vehicle technician to ensure reliable service. He added that the Capital Outlay budget is decreasing by 33% due to the vehicle replacement schedule.

Director Emami reported that Construction Services inspects and surveys all capital improvement projects, inspects privately funded right-of-way improvements, and manages contracts for all capital projects to ensure contract compliance. He noted that Labor is increasing by 12% due to salary and burden increases and the addition of one Construction Contract Specialist, which will be revenue offset.

Director Emami highlighted projects throughout the Public Works Department including Rebuild Beach for median landscaping, traffic system upgrades, sidewalk repairs, and signage enhancements. He noted that work will be phased to coordinate with utility projects, beginning with irrigation, planting, and lighting on medians before resurfacing.

Director Emami reported that the Department currently maintains approximately 47,000 residential and arterial street trees Citywide. He shared that to enhance tree maintenance, the Department is planning to increase the trimming schedule for the City’s palm trees from every two years to annually.

He added that rather than seeking additional funding, staff are reviewing the existing budget to identify efficiencies and cost savings. He noted that staff’s goal is to implement the improvement without impacting other essential City services. He shared that Public Works has published the Citywide tree pruning schedule on the City’s website to provide greater transparency. He noted that City Council Minutes of June 10, 2025

the information displays the current Citywide schedule, and a planned schedule for the next five years.

Director Emami reported that to continue enhancing the appearance, safety, and overall quality of life in the City’s public spaces and critical corridors, the City has established a new weekend cleanup program in conjunction with the HALO program. He shared that the collaborative approach has proven successful, resulting in the removal of 278 tons of debris. He noted that the Public Works team is designing and constructing improvements on Brookhurst Street from Ball Road to La Palma Avenue. He added that the primary focus is to enhance safety through raised landscaped medians to control vehicular movements and reduce conflict points. He reported that additional improvements include bike lane safety measures, concrete and parkway repairs, and pavement resurfacing. He shared that in an effort to reduce broadside and rear-end collisions, protected left-turn signal phasing will be implemented at four intersections, including Ball Road and Western Avenue, Broadway at Manchester Avenue, Orange Avenue and Dale Avenue, and Orange Avenue and Western Avenue.

Director Emami shared that Public Works continues to focus on the community by addressing aging infrastructure throughout the City neighborhoods. He highlighted the Woodsboro Neighborhood in District 6, which was successfully completed using in-house staff. He reported that the Neighborhood Improvement Program utilizes long-term planning to prioritize and deliver improvements in the areas with the greatest needs to improve the existing right-of-way and improve infrastructure. He added that the Avenida and Peary Way Neighborhood projects in District 6 and the Beth-Jackson Neighborhood project in District 5 were completed. He shared that the Norma-Juno Neighborhood Project in District 2 will be completed in the upcoming year. He reported that the Lincoln Avenue widening between East and Evergreen will transform the street from four to six lanes to enhance traffic flow, accommodate current and future traffic volumes, and align with the City’s General Plan. He added that the project will include raised landscaped medians to improve aesthetics and reduce cross-traffic risks. He shared that new sidewalk segments on Acacia Street, La Palma Avenue, Frontera Street, and Santa Ana Canyon Road will address critical sidewalk gaps while improving pedestrian safety.

He concluded that Public Works plays a vital role in maintaining the infrastructure and services that the community relies on daily.

Public Utilities Department
Public Utilities General Manager Dukku Lee shared that the Department’s core services include delivering high-quality water and electricity to customers. He noted that the proposed budget reflects investments in 6 strategic priorities that drive operations, maintenance activities, and reliability projects, while aligning with the City’s strategic plan for supporting public safety, being fiscally responsible, and investing in infrastructure.

General Manager Lee reported that the Department is proposing an increase of five (5) full-time positions, four (4) to support increasing development activity, where the Department’s need additional engineering and inspection staff to meet aggressive schedules, with reimbursements for services provided. He added that one (1) position would be to support necessary water maintenance activities such as pipeline repairs, fire hydrant testing, and exercising water valves.

General Manager Lee reported that the proposed budget is $758 million, or 31% of the City budget.

He noted that 0.3% of the General Fund is to provide street lighting to the community and the balance is to reimburse the Public Utilities call center to answer general 311 calls.

General Manager Lee presented the proposed FY 2025/26 budget. He noted that the operating budget reflects cost increases to purchase wholesale power and water, and at a 2.4% variance, the operating budget remains relatively stable. He reported that the largest variance is reflected in the Department’s capital program, where ongoing, multi-year projects are budgeted in the year they are City Council Minutes of June 10, 2025

authorized, and unspent funds are carried over into the Amended Budget until projects are complete.

He added that the proposed $133 million capital budget reflects significant new investments in utility infrastructure, reflecting a 13% increase from the prior year. He shared that the overall department budget is 4% higher than the previous year.

General Manager Lee reported that the majority of the operating budget includes wholesale water and power supplies, as well as contracts and services that make up the ‘other operating’ category. He added that the debt service payments spread the cost of physical assets over their useful life and keep rates stable, and are within industry benchmarks for municipal utilities, so we are not overly reliant on debt. He noted that labor costs are 13%, and capital outlays in the operating budget are related to items such as vehicles, facility improvements, and technology subscriptions.

General Manager Lee reported that there are 5 operating division in the Department. He shared that the Administration & Risk Services Division includes Customer Service groups. He noted that the reduction in the Customer Service budget is due to the completion of technology upgrades as well as a decrease in anticipated uncollected debt. He shared that over the past year, the Department has helped customers in need with payment plans, extensions, and provided $4.7 million in bill assistance from internal and external sources. He reported that mutual aid is essential for regional utilities during emergencies. He noted that Public Utilities responded to an emergency from Glendale Water and Power after 100 mph wind gusts caused widespread outages and wildfires in neighboring Los Angeles communities. He added that the Department performs regular inspections to ensure that systems are fully functional, and field employees conduct regular training exercises with other departments.

General Manager Lee reported that Water Services invests in sustainable supplies with wholesalers, recognizing that droughts occur periodically in Southern California. He shared that in 2024, Public Utilities completed the first two (2) phases of groundwater treatment, restoring full access to our local aquifer, which is the City’s lowest cost resource. He noted that reliability initiatives include maintenance, inspections, and upgrade of water facilities. He reported that the capital budget decrease reflects the completion of the groundwater treatment program at 14 well sites and previously awarded pipeline projects. He shared that new capital projects will focus on facility improvements and replacing aging water infrastructure.

General Manager Lee reported that the Electric Services division, Public Utilities continues to install or upgrade street lights based on requests from customers or other City departments. He shared that 700 street lights were installed, bringing the total number of street lights to 24,000 to illuminate neighborhoods and major cross streets. He noted that there are active maintenance programs to inspect Public Utilities’ electric assets, and crews respond around the clock to safely restore service.

He shared that capital projects require equipment for reliability improvements, to expand the grid, and support new developments. He noted that Public Utilities is collaborating with City Finance and industry partners to address ongoing supply chain challenges. He added that the proposed capital budget includes a new substation, infrastructure replacements, and new circuits to support development projects.

General Manager Lee reported that the Finance and Energy Resources Division manages wholesale power purchases and uses financial tools to keep rates affordable. He explained that as a result, residential electric bills are 40% lower than nearby areas, and water bills are 30% below the Orange County average. He noted that Financial Management costs are increasing due to administrative and professional services to secure new contracts for renewable power, and to update the Department’s comprehensive resource plan, which is submitted to the state for regulatory compliance. He shared that in the Technology area, the lower proposed budget is due to the prior year's award of a new asset management and work order system that is in development. He added that debt service costs City Council Minutes of June 10, 2025

are reflective of scheduled payments, which helps to partially fund Public Utilities’ aggressive capital program. He noted that the Department will reach a major milestone later in the year when it will no longer have coal in the power portfolio.

General Manager Lee reported that General Services administers the Department’s efficiency programs, helping residents and businesses reduce usage and save money on their bills, as well as back-office functions. He shared that in the Community & Sustainability area, the reduction reflects that professional services and exhibits for the Sustainability Education Center were previously awarded as we finish up construction and prepare for activation. He noted that the increase for Anaheim West Tower is due to a planned elevator modernization project. He added that community engagement is an important way to share program information and connect directly with customers at nearly 90 events. He shared that the Department has reached 4,400 students through partnerships with local educators. He noted that Public Utilities have focused programs for elementary, junior high, high school, and college-age students with the same goal to introduce them to rewarding utility careers by serving their community.

General Manager Lee shared current year highlights that align with the Strategic Plan. He noted that Public Utilities has provided over 400 dusk-to-dawn lights to homes and businesses to address dark spots on their properties. He reported that feedback has been very positive, especially after safety walks with residents, Anaheim Police, and other city staff, which identify needed improvements. He added that Public Utilities is working closely with other departments to support the OCVIBE development. He shared that utility infrastructure is under construction for new venues, with costs reimbursed by the developer. He reported that for the groundwater treatment program, Public Utilities was awarded a $10 million State grant to help offset the capital costs. He noted that the first two phases are fully operational, and are now in design for the final phase. He shared that progress continues on major undergrounding projects, including Beach Blvd. and Nutwood/Cerritos, where civil construction is nearly complete and electrical installations are underway. He added that the telecommunications ordinance approved by the City Council is making a difference, with increased activity to remove remaining overhead lines on projects.

General Manager Lee reported that Public Utilities is nearing the completion of the Sustainability Education Center, school districts are eager to bring students to learn about water and energy sustainability, and a dedication event is planned for the fall. He noted that as part of the City’s wildfire mitigation efforts, Public Utilities is working with Anaheim Fire & Rescue to explore new technologies and review the City’s water system for operational and physical improvements. He added that Public Utilities is beginning construction on undergrounding 7 segments in high fire threat zones. He shared that substations are the heart of the electric system, and Public Utilities is upgrading aging infrastructure and planning to expand the Vermont substation to meet growing demand. He reported that Public Utilities is proposing to replace a 50-year-old building that supports field crews and maintenance activities with a new facility. He added that other improvements at the yard include installing a block wall along the rail line to address vandalism and wire theft. He thanked the City Council for their support of the City’s employees.

PUBLIC COMMENTS ON WORKSHOP:

Jeanine Robbins questioned how income is verified for short-term rentals. She shared that there are approximately thousands of short-term rentals despite only approximately 200 operating legally. She suggested investigating the short-term rentals and closing the ones illegally operating.

Mike Robbins commented that the City has been under budget for a number of years. He suggested staff cuts, similar to other cities that are under budget. He shared that the City is short 200 firefighters for the City’s size and noted potential fire problems that could occur.

City Council Minutes of June 10, 2025

Marc Herbert shared the lack of availability of the written budget. He mentioned that it was not available at previous workshops and expressed concern over the workshop's schedule compared to the budget adoption. He expressed concern over the cost of the OC River Walk project and staff time required to research and apply for grants for the project. He commented on funding used for the FY 2025/26 budget that would not be available in the next budget cycle. He questioned the ability to meet the required 9,100 affordable housing units required.

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

DISCUSSION: Council Member Leon inquired if there was a list of potential additional Community Services projects for the upcoming year.

Director Larson-Cash confirmed there is a list of projects available. She noted that it is based on community input, staff’s observations, age of equipment, and new demands for amenities of facilities.

She noted it is separated by district and would only require funding to complete.

Council Member Leon thanked staff for their work at Chaparral Park to address ongoing issues. He shared concerns over the bathrooms, playgrounds, and basketball courts at the park. He highlighted the Housing and Community Development Department and its innovative approach to help the community. He requested a timeline for the street median and rehabilitation improvements on Brookhurst.

Director Emami reported that staff will submit paperwork before the end of the year or early next year to Caltrans for the grant to receive authorization to proceed with design work. He shared that the design process takes 12 to 18 months, with construction to begin after.

Council Member Leon shared residents' interest in adding a traffic signal on Niobe Avenue. He requested confirmation on the addition of a left-turn signal at Magnolia and Broadway. He expressed appreciation for the Public Utilities Department and thanked the entire City staff for their work and dedication to the community.

In response to Council Member Kurtz, Director Ruiz-Stepter explained that cuts associated with federal government cuts are being evaluated on an ongoing basis. She reported that based on current information, the programs in jeopardy are the Community Development Block grant, the HOME program, Housing Opportunities for Persons with AIDS and Emergency Solutions grants, and the Section 8 program. She shared that staff are hearing about potential funding reductions from 30 to 40% and policy updates, which could eliminate funding assistance to mixed families or enforce work requirements and time limits.

Council Member Kurtz requested information on the non-profits that received grant funding.

Director Ruiz-Stepter reported that 15% of the Community Development Block Grant is allocated towards non-profits. She shared that Creative Identities, Alzheimer’s Orange County, YMCA, and Boys and Girls Club received grant funding. Director Larson-Cash added that Access California Services, Senior Meals on Wheels, the Dayle McIntosh Center, and the Legal Aid Society. Director Ruiz-Stepter included the Fair Housing Council which provides tenant assistance.

In response to Council Member Kurtz, Director Emami shared that the schedule for tree trimming and pruning has been posted on the website for two years at the request of Council Member Rubalcava.

He noted that the City’s trees are tracked in GIS and include information on the tree type, when it was last trimmed, and upcoming maintenance. He shared that the public can search “Tree Trimming Schedule” on the City’s website.

City Council Minutes of June 10, 2025

Council Member Kurtz inquired about the changes in the Public Utilities Customer Service budget.

General Manager Lee clarified that Public Utilities was awarded a technology upgrade to the customer information system and would not require additional funding. He added that the Department is anticipating a lower amount on uncollected debt.

In response to Council Member Kurtz, Director Larson-Cash shared that any increases to the Community Services budget are nominal. She attributed other increases to labor increases and maintained that the Department is operating at current service levels with no reductions. She reported that there are carryover funds for the Senior Mobility Program and the Mobile Family Resource Center. She added that the Department will also be addressing items with youth families and senior surveys and include new programming in the future budget.

Mayor Pro Tem Meeks inquired if the City will be receiving or applying for State funding for mental health services and housing.

Director Ruiz-Stepter reported that Proposition 1 funds are competitive. She noted that staff is working with The Salvation Army, who has reviewed different proposals for drug treatment beds. She noted that the latest round of Proposition 1 applications are due in October, and The Salvation Army has been working on a proposal for City Council’s support.

Mayor Pro Tem Meeks requested a memo on the status of the bathrooms at City parks, including necessary upgrades, budget information, and potential grant opportunities.

Director Larson-Cash reported that there are a number of restrooms that require replacement. She noted that staff have been replacing restrooms annually over time, with a current replacement scheduled for the Rio Vista Park restrooms. She confirmed that staff can provide a memo with the information requested.

In response to Council Member Maahs, Director Larson-Cash shared that the Department is prioritizing all of the recommendations from the Needs Assessment Survey. She reported that she can provide a memo with additional information.

Council Member Maahs inquired about the timeline or process to evaluate a potential location for a senior center.

Director Larson-Cash shared that staff have different plans for locations for a senior center. She noted that over the year, the Department has expanded senior service programs across the City. She explained that there is no current funding available to build a new facility; however, staff will take the time to plan, strategize, and be ready when a source becomes available.

In response to Council Member Maahs, Director Emami reported that staff prioritizes projects based on urgency, equity, business, and safety. He explained that if there are safety issues, those matters are taken care of right away. He added that other issues may be addressed based on project-specific funding. He provided examples of the Safe Routes to Schools program and the plans for sewer systems, storm drains, and pavement management. He noted that if other Departments are completing projects in an area, they may partner with the Department or delay the proposed project.

He added that community feedback is considered for projects and highlighted various community meetings staff attend.

Council Member Maahs thanked the Public Works Department for being responsive to community concerns and expressed her appreciation for all of the City Departments and staff.

City Council Minutes of June 10, 2025

Council Member Balius thanked the City Manager and Finance Department for their work on the budget. He thanked the public and those who contacted him for providing their feedback. He highlighted the 7.7-mile pavement improvement throughout the City within a year. He inquired if funding from the Sanitation Program could be used to fund an additional HALO officer.

Council Member Rubalcava thanked staff for all their work and for providing meaningful projects and services to the community despite a tight budget. She highlighted the importance of City staff and the purpose they serve in the community, despite recommendations to cut staffing. She suggested evaluating savings in other ways through grants and bonds. She expressed her appreciation for staff’s work.

Mayor Aitken echoed her Council colleagues’ comments and thanked staff for their work.

INVOCATION: City Clerk Theresa Bass
Mayor Pro Tem Meeks asked that, in recognition of Flag Day, to take a moment to honor the flag as a symbol that represents freedom, justice, and promise for a better future.

FLAG SALUTE: Mayor Pro Tem Natalie Meeks
PRESENTATIONS: Recognizing Japanese American Korean War Veteran Norio Uyematsu for his work in promoting the stories of Korean War Veterans
Mayor Aitken recognized Norio Uyematsu for his service to the country. She shared that he is a Japanese American and Korean War veteran. She noted that his service represents courage, sacrifice, and commitment to freedom. She added that beyond his service, he has worked to preserve the voices of Korean War veterans by educating younger generations and advocating for remembrance and awareness. On behalf of the City Council, she thanked Mr. Uyematsu for his service and dedication to education and remembrance.

Norio Uyematsu accepted the recognition. He shared that 1.5 million American soldiers served in the Korean War, which began on June 25, 1950, and ended on July 27, 1953, making it the largest military deployment in United States history. He added that the war lasted three years and resulted in 34,000 American casualties, 247 of whom were Japanese Americans. He expressed his pride in being an Anaheim resident and his appreciation for the recognition.

Recognizing WISEPlace on their grand opening of a new Permanent Supportive Housing Project in Orange County that serves unaccompanied women Mayor Aitken recognized WISEPlace for its recent community opening in the neighboring city of Santa Ana. She shared that the permanent supportive housing community will provide vital services to women experiencing homelessness and provide a path to stability. She noted that the new community includes extensive support services such as counseling, case management, job readiness, and healthcare access. She shared that projects like WISEPlace have a measurable impact on the community to ensure all women in Orange County have a safe place to call home.

Kelsey Brewer, Vice President of Business Development at Jamboree Housing Corporation, on behalf of WISEPlace, accepted the recognition. She shared that it has been an honor to help bring WISEPlace’s services to the Orange County community. She highlighted WISEPlace’s impact on the community and the impact permanent supportive housing will have on women in Orange County. She expressed Jamboree Housing Corporation’s gratitude to partner with WISEPlace and highlighted its experience throughout Orange County and the City of Anaheim.

City Council Minutes of June 10, 2025

Recognizing Anaheim Public Utilities High School Scholarship Recipients Mayor Aitken reported that Anaheim proudly supports the education of students through a wide range of programs designed to empower and inspire the next generation. She highlighted the Anaheim Public Utilities High School Scholarship Program which offers high school seniors the opportunity to pursue higher education in science, technology, engineering and math. She shared that since 2018, the program has helped students better understand Anaheim’s water and energy systems while exploring existing career paths in public utilities. She noted that as part of the application process, students submit essays outlining their career goals and unique perspectives on sustainability. She reported that 22 students have received scholarships to help cover college expenses. She added that Anaheim Public Utilities also partners with the Housing and Community Development team to offer paid summer internships to the students, giving them valuable hands-on experience in a professional setting. She recognized Ximena Hernandez Ramos, who will be attending Cal Poly Pomona to pursue a biotechnology degree, Clarissa Rubio, who will be attending UCLA for computer science and engineering, and Ryan Wilson who will attend UCI to pursue a degree in civil engineering.

Ximena Hernandez Ramos, Clarissa Rubio, and Ryan Wilson accepted the recognition.

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

Recognizing June 6, 2025, as National Gun Violence Awareness Day Recognizing June 8 - 14, 2025, as National Flag Week
Recognizing June 2025, as LGBTQ Pride Month
At 6:07 p.m., Mayor Aitken called to order the Successor Agency to the Anaheim Redevelopment Agency, in joint session with the City Council.

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

City Clerk Bass reported that a total of seven (7) public comments were received electronically prior to 1:00 p.m. [A final total of ten (10) public comments were received electronically, distributed to the City Council, and made part of the official records.] – See Appendix.

R. Joshua Collins thanked Chrysalis for their work to help individuals obtain employment. He requested that Chrysalis visit Maxwell Park on Saturdays. He provided an update on a homeless woman who received housing after speaking with City Net. He questioned the amount of time it takes for individuals to receive assistance. He encouraged the City Council to make more beds available and a walk-in shelter. He inquired about what actions the City would take to protect individuals should a recession occur. He suggested day fines based on income and provided examples of policies used in other countries. He expressed concern over decreased general-purpose funding compared to the capital projects budget.

Mark Loranger, President and CEO of Chrysalis, requested the City Council’s support of Item No. 12.

He shared that Chrysalis expanded to Orange County and selected Anaheim because of the community. He noted that Chrysalis has helped over 1,000 Anaheim residents seeking employment.

City Council Minutes of June 10, 2025

He added that Chrysalis helped over 400 residents in 2025, with 121 already working. He expressed appreciation for the community’s support.

Jorge Gavino encouraged the City Council to appoint Amanda Wortman to the Library Board. He highlighted her advocacy for residents.

Paul Hyek suggested that the City of Anaheim help oversee the Bridges at Kraemer shelter as a walk-in and walk-out shelter.

Mazatl T. Tepehyolotzin thanked the City Council for their help with projects around the City. He suggested constructing a monument in District 3 to recognize Mexican Americans. He spoke on current events taking place in Los Angeles. He thanked Council Member Leon, Senator Ramos, Assemblymember Avelino Valencia, and Congressman Lou Correa for recognizing indigenous people and their culture. He highlighted the mural at El Pollo Fino for its representation of the Mexica culture.

Ruben Greg Soto recited a bible verse and spoke about false accusations against him. He requested housing assistance.

Greg Eisenman, General Manager of the Tropicana and Camelot hotels, shared that the hotels’ interest is to address the housing crisis, particularly for resort and hotel workers. He shared that two years prior, hoteliers, large and small, met to discuss how stakeholders in Anaheim could help the community and unanimously supported the creation of a Housing Trust. He shared that at the time Disney had supported the efforts and would contribute to the Housing Trust, but with no action two years later. He requested that the City Council support the hoteliers’ efforts to move the initiative forward.

Matthew Duncan commented on a social media post by Orange County Supervisor Janet Nguyen and coyotes mimicking dogs' barks. He explained that the information was false and expressed his concerns to Supervisor Nguyen. He shared that Project Coyote has disputed the information and shared that the best way to avoid conflicts with coyotes is to supervise dogs, keep them on leashes, and ensure food and trash are properly stored.

Bryan Kaye echoed Mr. Duncan’s comments and shared that awareness is important. He reminded the Council of elected officials' duties to put constituents' interests ahead of their own. He requested that the City Council stop referring to individuals as protestors, suggesting it escalates situations.

Jeanine Robbins shared residents’ fear of leaving their homes without any assistance from the City.

She referenced recent trips taken by the Mayor despite Anaheim residents' living conditions and food insecurity. She questioned what the City is doing to protect residents in the current political climate.

She inquired if residents are being notified when Immigration and Customs Enforcement (ICE) is in the area. She requested that the City Council protect its residents and fight back against injustice.

Mike Robbins reported that the immigrant community is facing fear, suspicion, and cruelty. He called upon the Council and public to take a stand against injustice.

Marc Herbert provided the definition of a company town. He expressed concern over lack of public engagement, the Anaheim Tourism Improvement District’s budget, and housing priorities. He questioned the City’s priorities listed in the Strategic Plan, placing a new civic center over housing. He suggested that the City Council review the City of Santa Ana’s housing policy.

Kenneth Batiste shared the importance of government employees, in every role, upholding ethical standards. He criticized the prioritization of capitalism over humanity and called upon people to take a stand against injustice.

City Council Minutes of June 10, 2025

COUNCIL COMMUNICATIONS:

Council Member Kurtz shared a PowerPoint slide and highlighted a Safety for Seniors Informative Community meeting that she and Council Member Maahs will be hosting on Tuesday, June 24, 2025 at 11:00 a.m. at the Anaheim United Methodist Church Library located at 1000 S. State College Boulevard. Representatives from the Police Department, Fire & Rescue, Public Utilities, and Code Enforcement will be there to speak about how seniors can protect themselves at home and in the community. Council Member Kurtz stated that it has been two years since the hotel community came to the City to address housing for workers in the hotel community. Now that the Anaheim Housing Trust has been established, within the next few days she will be inviting the 90 plus rate payers to a meeting to move forward with housing initiatives for hotel workers.

Council Member Maahs highlighted and shared photographs of events she attended including the Orange County Conditions of Children's Forum on May 30. The forum focused on aspects of childcare including safety, economics, well-being, education, and health. Council Member Maahs encouraged everyone to visit the Orange County Social Services Agency to review a copy of the report. She thanked Orange County Supervisor Doug Chafee for organizing the forum and she stated it was staggering to hear the rates of depression, anxiety, and suicidal ideation. Council Member Maahs congratulated the graduating classes of 2025. She had the privilege to attend the promotions at James Guinn Elementary School, Benito Juarez Elementary School, and Katella High School. She recognized the parents and Parent Teacher Associations for all their work. Council Member Maahs shared that she and a few of her Council colleagues attended the Anaheim Family YMCA luncheon that was hosted by the Anaheim Chamber of Commerce at Angel Stadium. The YMCA RBI program is for children aged seven to ten years old. During the program they learn the fundamentals of baseball while building teamwork, sportsmanship, and confidence. The Angels Foundation provides uniforms, gloves, and expert coaching so that the program participants can have fun while in a supportive environment. Council Member Maahs thanked Public Utilities for hosting the OC Green Expo. She stated it is an opportunity to see and potentially drive electronic vehicles. There were eco- friendly organizations there to share resources and a lot of free prizes and giveaways. It was a family fun event, and she thanked the City departments that were there to provide resources. Council Member Maahs announced that she will not be at the next Council meeting due to a family commitment prior to being elected. She stated that she tried working with staff to be able to call into the next meeting but was unable to work that out. Council Member Maahs encouraged anyone to contact her with comments or questions.

Council Member Balius announced that the first concert of this year's Concerts in the Park series is taking place Thursday, June 12 at Maxwell Park. He invited everyone to an exciting evening featuring a lively performance by a local Anaheim dance studio from 6:00 p.m. to 6:30 p.m. and then an energetic set by the band Pop Vision playing pop rock favorites from 6:30 p.m. to 8:00 p.m. He shared that there will be a variety of food trucks, including Arenita Gourmet Kitchen, Baby’s Burgers, Kona Ice, and Drizzle. Council Member Balius shared that the Haskett Branch Library will be hosting a craft booth, offering free books, sharing community resources, and providing fun lawn games for all ages. He encouraged the community to celebrate the start of summer at Maxwell Park on June 12th.

Council Member Leon stated that earlier this year he was proud to lead his Council colleagues in unanimously reaffirming Anaheim’s Welcoming City status. It was a commitment and a promise that every resident, no matter where they come from, deserves dignity, safety, and respect. He emphasized the importance of knowledge and awareness of rights for immigrants, especially during uncertain times.

Council Member Leon stated that under California state law, police officers, firefighters, and paramedics are there for safety, not immigration enforcement. He encouraged members of the community to call for help with confidence. He encouraged the community to stay informed, not just City Council Minutes of June 10, 2025

through social media, but through trusted groups like the ACLU of Southern California, CHIRLA, and the Immigrant Legal Resource Center. He shared that they have resources in multiple languages to help inform community members of their rights. Council Member Leon asked community members to please speak out peacefully, powerfully, and with purpose if they choose to. He stated that no one should be stressed or afraid when they drop their kids off at school or answer their front door. Council Member Leon stated that this is not just about policy, it is about people, neighbors looking out for each other, and it is about a city that refuses to turn its back on the very people who keep it going. He stated that the community’s strength is in unity, and a commitment to justice and peace. Council Member Leon repeated his comments in Spanish.

Council Member Rubalcava highlighted and shared photographs of events she attended. She stated she serves on the North Net Task Force and her alternate is Council Member Maahs. She shared a mural that was recently commissioned at the North Net building to highlight the work that is being done through North Net and the risk that firefighters take. She recognized all the volunteers who help mitigate fire issues in District 6 and throughout the City and noted that many of the volunteers are District 3 residents. Council Member Rubalcava referenced the City’s Transient Occupancy Tax revenue and noted that conventions generate revenue for the City’s General Fund because people attending a convention typically stay in Anaheim hotels and pay a 15% occupancy tax. She stated the Democratic Party hosted their 2025 State Convention in Anaheim and it was peaceful.

Assemblymember and former Council Member Avelino Valencia, Assemblymember Cottie Petrie- Norris, Representative Derek Tran, and Labor Activist Dolores Huerta were in attendance. Council Member Rubalcava thanked Public Works Director Rudy Emami for reallocating funds to trim palm trees in District 3, addressing a long-standing community issue. She noted that it made District 3 residents, including herself extremely happy. Council Member Rubalcava shared that the Boys and Girls Club has been acquired by a collaborative club but is still focused on youth in Anaheim. They are doing really good work and working closely together to integrate into Anaheim elementary schools. She along with Lieutenant Pena and Police Association President Jose Duran attended the Ready Annual Summit to show support because there are a lot of youth in Anaheim who need resources, whether it is gang prevention and intervention or just opportunities to get more engaged at the college bound level. Council Member Rubalcava attended the National Hispanic Medical Association Conference as a guest speaker. She stated it was a good opportunity to speak to medical practitioners who are interested in policy and how it impacts the Latino community. They were able to speak about health and how Hispanics can access it and ensuring that youth who are entering the education system know that there are opportunities within the medical industry. Council Member Rubalcava attended the 30th Annual Anaheim Flag Day Parade and Celebration and stated that Flag Day is a really important time to celebrate the country and flag. She noted that volunteers host the event in the Colony District. Council Member Rubalcava mentioned that the Mayor and all Council Members were at the event, but did not discuss any Council business and there were no Brown Act violations. She stated it was a good opportunity to visit with residents and celebrate the country.

Council Member Rubalcava highlighted some of the immigration challenges the community is currently facing. She stated that California is the center for immigration enforcement and there is a month-long emphasis in different states. Council Member Rubalcava shared that she is working with a coalition of policy makers including Congressman Lou Correa, labor leaders, law enforcement, and her Council colleagues to discuss a collaborative approach to keep the community safe. She stated they are encouraging residents, especially the youth in the community, to keep any demonstrations peaceful because nothing will be accomplished if businesses are being destroyed. She encouraged everyone to express their voices in a positive way that creates sustainable change. Council Member Rubalcava shared that what is happening in Los Angeles impacts the Anaheim workforce because there is a significant amount of immigrant workers who work in hotels and other areas in the City, and they need to know their rights. Council Member Rubalcava shared that the coalition is looking into legal defense funds to help ensure immigrant workers' rights are protected and providing a City Council Minutes of June 10, 2025

sustainable pathway to citizenship so that families are not separated. Council Member Rubalcava stated that Anaheim was segregated in the 1900s and in 1994 with Proposition 187 and the City will get through this as well, but it must be done peacefully to protect the City’s workforce and community.

Council Member Rubalcava requested to adjourn the meeting in memory of Officer Samuel Riveros, who unfortunately passed away last week. He was a Baldwin Park police officer who was killed in the line of duty. She noted that several Anaheim police officers worked with him at Baldwin Park and were friends with him. Council Member Rubalcava stated that when somebody in law enforcement loses their life, it impacts everyone.

Mayor Aitken highlighted and shared photographs of events she attended including the Mayors and CEOs for U.S. Housing Investment meeting in Washington, D.C. to advocate for federal funding for affordable housing for working families, seniors, and others. She expressed concern about the potential loss of housing funds and encouraged the public to support housing initiatives. She stated that Anaheim has done so much to get individuals off the street and now families are in danger of losing their housing vouchers. Mayor Aitken encouraged everyone who is concerned about housing in Anaheim, to reach out to federal leaders to share support for all housing initiatives that make a difference in Anaheim. She thanked Senator Adam Schiff, Senator Alex Padilla, Congressman Lou Correa, Congressman Ted Lieu, and Congressman Pete Aguilar for budget and housing initiatives, and for meeting with mayors to discuss streamlined processes for housing. Mayor Aitken thanked the team who organized the Flag Day Parade and Celebration as well as everyone who attended the event in District 3 including the veteran community and volunteers. It was a fun family event recognizing the history of the American flag. Mayor Aitken thanked the Disneyland Resort for the invitation to the State of the Resort to learn about exciting projects and their economic impact, not just throughout Anaheim, but throughout the entire region. She stated it was an informative and wonderful evening. Mayor Aitken stated that she is deeply concerned about the recent immigration actions that are going on in the Southern California area. While Anaheim has not seen any significant actions taking place, surrounding cities are seeing a dramatic uptick. She reassured the community that Anaheim remains a Welcoming City that values the contributions of the immigrant community. Mayor Aitken stated that to be an immigrant does not make someone a criminal or an enemy of the State, and it is imperative that all residents in Anaheim know that City staff, the Police Department, Anaheim Fire & Rescue, as well as our City facilities stand ready to provide services regardless of immigration status and if assistance is needed, individuals should not fear reaching out as immigration status will not be asked. Mayor Aitken emphasized the importance of treating each other with kindness and supporting neighbors who may be living in fear. Whether it is going grocery shopping for a neighbor, checking in on neighbors, or dropping off kids at camp or school. She asked the community to stick together in uncertain times and to look out for one another.

CITY MANAGER’S UPDATE:

City Manager Vanderpool shared that Friday marks the exciting launch of the Summer Nights Under the Stars Series at Pearson Park Amphitheatre for family entertainment every Friday night through July 25th. Friday night kicks off with an astonishing performance by Magician Ian. Visitors can expect a memorable evening with a free face painter for kids and Dragon Dogs food truck onsite to complement concession stand. It is the perfect opportunity to gather with friends and family for an unforgettable and affordable night of fun, as each week promises a unique showcase of talent and culture.

At 7:11 p.m., Mayor Aitken recessed the City Council to address the Successor Agency to the Redevelopment Agency agenda and reconvened at 7:21 p.m.

CONSENT CALENDAR: The Consent Calendar was considered with Council Member Kurtz pulling Item No. 12 for separate consideration.

City Council Minutes of June 10, 2025

MOTION: Mayor Pro Tem Meeks moved to waive reading of the ordinance and resolutions and adopt the balance of the consent calendar as presented, in accordance with reports, certifications, and recommendations furnished each City Council Member, seconded by Council Member Leon. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0. Motion carried. [Item No. 16: Council Member Balius recorded an abstention for Item No. 16. MOTION: Mayor Pro Tem Meeks moved to approve the Consent Calendar, seconded by Council Member Leon. ROLL CALL VOTE: AYES – 6 (Mayor Aitken and Council Members Meeks, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0; ABSTAIN - 1 (Council Member Balius). Motion carried.]

3. Receive and file minutes of the Public Utilities Board meeting of March 26, 2025.

4. Approve recognitions recognizing Canyon High School Track and Field athlete’s Jayden Legaspi and Madison Gallacher for qualifying for the Division 1 CIF State Championships; El Rancho Charter School’s Sydney Tran who competed in the 100th Scripps National Spelling Bee; and Richard Stein’s appointment to the California Arts Council.

5. Award a Contract Work Order to the lowest responsive and responsible bidder, Mike Prlich and Sons, Inc, in the amount of $1,145,350, for the Catalpa Avenue Sanitary Sewer Line Replacement Project; authorize the Director of Public Works to execute the work order via the existing Sewer and Storm Drain Maintenance, Construction and Immediate Response Service Master Agreement and related documents and to take the necessary actions to implement and administer the work order; determine that the project is categorically exempt from the California Environmental Quality Act pursuant to Class 2, Section 15302 (c) (Replacement or Reconstruction) of Title 14 of the California Code of Regulations; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions.

6. Award a construction contract to the lowest responsive bidder, Henkels & McCoy West, LLC, in the amount of $3,613,824 plus a 10% contingency, for the Harbor Substation Line Extension Project Phase 1; authorize the Director of Public Works, or designees, to execute the contract and related documents, including any cost-neutral amendments of the contract and any documents contemplated by the contract, and to take such actions as are necessary, required, or advisable to implement and administer the contract; determine that the project is categorically exempt from the California Environmental Quality Act pursuant to Sections 15301(b), 15302(c), and 15303 of Title 14 of the California Code of Regulations; and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with Public Contract Code Section 22300.

7. Approve the Delegated Maintenance Agreement with the State of California Department of Transportation (State) which identifies specific mission-critical maintenance services to be performed on and around the State right of way within the City’s jurisdictional limits; authorize the Director of Public Works to execute the agreement and related documents, including any amendments, and to take any and all actions as are necessary to implement and administer the agreement; and determine that the projects to be performed under the agreement shall be categorically exempt under the California Environmental Quality Act, Section 15308 of Title 14 of the California Code of Regulations.

City Council Minutes of June 10, 2025

8. Waive Council Policy 4.1 and approve a Master Services Agreement with RailPros Field Services, Inc., in an amount not to exceed $500,000, which will allow for an estimated five years of services, for railroad safety training and flagging services; and authorize the Public Utilities General Manager, or designees, to execute the agreement and related documents, including any cost-neutral amendments of the agreement and any documents contemplated by the agreement, and to take the necessary or advisable actions to implement, fund, and administer the agreement.

9. Approve an agreement with Allison A. Martin, dba Blueblossom Consulting, in an annual amount not to exceed $90,000 plus a 10% contingency for as-needed extra services, for educational consulting services for the Sustainability Education Center for a three year term with two one-year optional extensions; and authorize the Public Utilities General Manager, or designees, to execute the agreement and related documents, including any cost-neutral amendments of the agreement and any documents contemplated by the agreement, and to take the necessary or advisable actions to implement, fund, and administer the agreement.

10. Approve the First Amendment to Professional Services Agreement with Kosmont Real Estate Services dba Kosmont Realty to increase the not to exceed contract amount from $200,000 to $400,000 for on-call broker services to support current and future economic development activities; and authorize the City Manager, or designee, to execute and administer the amendment.

11. Approve a License Agreement with Higher Ground Youth and Family Services Inc. to use a portion of Lincoln Park, located at 1535 E. Broadway, to provide services to children and families for a seven year term, and authorize the Director of Community Services, or designee, to execute and administer the agreement.

13. RESOLUTION NO. 2025-043 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM concerning the status and update of the Circulation Element, Mitigation Fee Program for the Measure M (M2) Program.

RESOLUTION NO. 2025-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM concerning the status and update of the Pavement Management Plan for the Measure M2 (M2) program.

Adopt a Seven-Year Capital Improvement Program and authorize staff to submit it to the Orange County Transportation Authority.

14. RESOLUTION NO. 2025-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a portion of public utility easement located at 1024 West Romneya Drive pursuant to California Streets and Highways Code Section 8330, et seq. — Summary Vacation (ABA2025-00436).

15. ORDINANCE NO. 6612 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending various sections of Chapter 16.40 of Title 16 of the Anaheim Municipal Code relating to the designation of Very High Fire Hazard Severity Zones.

City Council Minutes of June 10, 2025

Determine that the proposed amendments are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2), 15060(c)(3), 15378, and 15061(b)(3) of Title 14 of the California Code of Regulations.

16. Approve minutes of the City Council meetings of November 13, 2024 and November 19, 2024.

Item No. 16: Council Member Balius recorded an abstention for Item No. 16. MOTION: Mayor Pro Tem Meeks moved to approve the Consent Calendar, seconded by Council Member Leon. ROLL CALL VOTE: AYES – 6 (Mayor Aitken and Council Members Meeks, Leon, Rubalcava, Kurtz, and Maahs); NOES - 0; ABSTAIN – 1 (Council Member Balius). Motion carried.

BUSINESS CALENDAR:

12. Approve a Lease Agreement, in substantial form, with The Chrysalis Center dba Chrysalis to provide office and program space at 290 South Anaheim Boulevard at no cost, in exchange for providing workforce development services and a commercial corridor cleaning pilot program, for a two year term commencing July 1, 2025 through July 1, 2027, with an option to extend the lease for up to one additional one year term; authorize de minimis changes that do not substantially change the terms and conditions of the agreement, as determined by the City Attorney’s Office; and authorize the Economic Development Director to execute and implement the terms of the agreement.

Approve an Operating Agreement, in substantial form, with The Chrysalis Center dba Chrysalis for purposes of implementing the commercial corridor cleaning pilot program, for a two year term commencing July 1, 2025 through July 1, 2027, with an option to extend for up to one additional one year term; authorize de minimis changes that do not substantially change the terms and conditions of the agreement, as determined by the City Attorney’s Office; and authorize the Economic Development Director to execute and implement the terms of the agreement.

Director of Economic Development Sergio Ramirez reported that the City approved a Memorandum of Understanding (MOU) with Chrysalis in 2018, for the use of 290 S. Anaheim Boulevard for the operation of the Chrysalis employment program. He shared that Chrysalis has delivered job readiness programs and transitional employment opportunities. He noted that in lieu of rental costs, Chrysalis made significant building improvements to the ground floor of the building.

Director Ramirez reported that in 2022, the City Council approved an extension to the MOU to a term expiring June 20, 2025. He explained that Chrysalis requested to enter into a lease agreement to formalize the occupancy of the space for two years with an optional one-year renewal. He shared that in lieu of rental costs, Chrysalis agreed to continue to provide job readiness and employment services to Anaheim residents. He noted that Chrysalis served approximately 500 Anaheim residents and over 1,300 individuals. He added that they will provide staffing and services for a new pilot program for the continued beautification of the City’s commercial corridors. He reported that the program, named Anaheim Clean Team, would provide street cleaning services, in addition to work provided by Public Works staff, to enhance commercial corridors. He shared that the program would be coordinated through Public Works, with services provided for an eight-hour period every two weeks. He added that the work would be completed by three workers and a supervisor with several corridors targeted each day. He noted that the service would not include the cleanup of homeless encampments but would be focused on sidewalks and street cleaning outside the Resort. He shared that City jobs would not be affected by the pilot program.

City Council Minutes of June 10, 2025

Director Ramirez reported that Chrysalis is aware of the condition of the building and that the site was identified as a future development site. He explained that a 90-day termination provision was included in the lease if the City is required to develop the property.

DISCUSSION: In response to Council Member Kurtz, Director Ramirez confirmed that Chrysalis served 500 Anaheim residents in 2024. He explained that Chrysalis provides an array of services, in addition to temporary job services.

Mark Loranger, President and CEO of Chrysalis, reported that since opening in 2018, Chrysalis has served 1,400 individuals, with 466 finding employment.

In response to Council Member Kurtz, Mr. Loranger shared that Chrysalis offers trauma-informed case management services, including whole-person care. He explained that the first objective is to assess each individual and then build a plan to help navigate barriers to employment. He shared that case managers spend a quarter of the time discussing employment and the remainder discussing barriers to employment.

Council Member Kurtz requested clarification that the Clean Team service would not take away from the work completed by Public Works employees.

Director of Public Works Rudy Emami confirmed that the Clean Team would provide additional support and enhance the work of the Public Works Department. He assured that the Clean Team would not impact other Public Works positions.

Council Member Rubalcava expressed her support for the item. She shared that she served on Chrysalis’ advisory council when they first expanded into Orange County from Los Angeles. She noted that Chrysalis works with different employers and highlighted their services. She inquired if there would be impacts to Chrysalis’ programming with the State cutting funding for Caltrans.

Mr. Loranger reported that Chrysalis offers temporary, transitional jobs to clients. He noted that Caltrans is a customer, and they are currently negotiating a contract renewal. He shared that the Governor’s Office mentioned that the services are a priority.

Council Member Rubalcava requested that Chrysalis participate in community events in Orange County. She expressed her support for the continued relationship. She requested weekly power washing on the Broadway commercial corridor.

Director Ramirez clarified that the maintenance would take place every two weeks. He confirmed that staff would work with the Council to identify areas that need attention. He added that Economic Development would work with Code Enforcement to ensure that the property owner of the apartment complex is contributing to the effort.

In response to Council Member Leon, Director Ramirez clarified that all Successor Agency properties were assigned for future development or government use. He explained that the subject property was identified for a future development opportunity due to previous interest for hotel developments or mixed-use development properties. He noted that the City can transfer the property for government use; however, if the property is sold, the City would not retain all the proceeds. He reported that the proceeds would transfer to the affected taxing entities that were assigned to redevelopment areas when they were established, including the State’s Department of Finance and the County of Orange.

City Council Minutes of June 10, 2025

Council Member Leon clarified that the City would be required to follow the State’s direction if it determined that the property needed to be developed.

Director Ramirez added that the City has a fiduciary duty to sell or use redevelopment properties. He noted that the longest project for the City is 39 Commons. He explained that if a property can be sold and a Disposition and Development Agreement could be established, a new project would need to be developed.

Council Member Leon expressed his support for the item.

MOTION: Council Member Kurtz moved to approve a Lease Agreement, in substantial form, with The Chrysalis Center dba Chrysalis to provide office and program space at 290 South Anaheim Boulevard at no cost, in exchange for providing workforce development services and a commercial corridor cleaning pilot program, for a two year term commencing July 1, 2025 through July 1, 2027, with an option to extend the lease for up to one additional one year term; authorize de minimis changes that do not substantially change the terms and conditions of the agreement, as determined by the City Attorney’s Office; and authorize the Economic Development Director to execute and implement the terms of the agreement and approve an Operating Agreement, in substantial form, with The Chrysalis Center dba Chrysalis for purposes of implementing the commercial corridor cleaning pilot program, for a two year term commencing July 1, 2025 through July 1, 2027, with an option to extend for up to one additional one year term; authorize de minimis changes that do not substantially change the terms and conditions of the agreement, as determined by the City Attorney’s Office; and authorize the Economic Development Director to execute and implement the terms of the agreement, seconded by Council Member Leon. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0. Motion carried.

17. RESOLUTION NO. 2025-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring Anaheim an Early Childhood Friendly City and supporting to foster an environment where every child can thrive and reach their full potential.

Senior Administrative Analyst Alyssa Guerrero reported that at the May 13, 2025 Council meeting, Council Member Maahs requested an item to declare the City of Anaheim an Early Childhood Friendly City. She shared that earlier in the year, First 5 Orange County launched the Early Childhood Friendly City Initiative, an effort designed to help cities create neighborhoods and communities where young children and their families can thrive. She noted that the initiative provides cities with data, early childhood expertise, and partnerships needed to prioritize early childhood development in education, health, housing, and community services. She highlighted the City’s programs and resources aimed at fostering early childhood development, including the Tiny Tots Academy, a recreational program for children aged 3-5 that focuses on foundational skills, socialization, and kindergarten readiness and a diverse range of courses for youth and families throughout the year, including sports, music, and educational programs. She shared that the Anaheim Public Library also actively supports early literacy, offering families emergent resources to cultivate a strong reading foundation through positive engagement in its programs. She noted that the Library offers story times for children aged 0-5, sensory story times for neurodivergent children, and bilingual story times in Spanish, Vietnamese, and Arabic, all designed to develop essential pre-reading skills. She concluded that the proposed Resolution formally declares the City of Anaheim an Early Childhood Friendly City and affirms its commitment to continue providing resources and programs that promote the healthy development and well-being of children.

DISCUSSION: Council Member Maahs acknowledged the Human Services division in the Community Services Department and their collaboration with 90 non-profits and organizations. She highlighted City Council Minutes of June 10, 2025

the importance of early childhood development to the well-being and future success of children in the community. She shared that a community partnership involving schools, stakeholders, and the City would leverage and align resources to create new spaces and opportunities for organizations and individuals to allow every child in Anaheim to reach their full potential.

Council Member Leon thanked Council Member Maahs for bringing the item forward. He shared that as a product of the City’s programs, he supports continuing to provide resources and programs to the community.

MOTION: Council Member Maahs moved to approve RESOLUTION NO. 2025-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring Anaheim an Early Childhood Friendly City and supporting to foster an environment where every child can thrive and reach their full potential, seconded by Council Member Leon. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0. Motion carried.

18. Consider (re)appointments to fill scheduled vacancies on the Library Board, for terms expiring June 30, 2025, to a four year term ending June 30, 2029.

Library Board:
[RE] APPOINTMENT: Amanda Wortman (term ending June 30, 2029)
(Incumbent, Michelle K. Dang)
Council Member Kurtz nominated Amanda Wortman. She highlighted Ms. Wortman’s work experience with an education non-profit and her advocacy for Anaheim’s public libraries. She shared that her organization received grants focused on helping library staff develop and evaluate teen programs.

NOMINATION: Council Member Kurtz nominated Amanda Wortman. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0.

Nomination approved.
[RE] APPOINTMENT: Jackie Filbeck (term ending June 30, 2029)
(Incumbent, Jackie Filbeck)
Council Member Rubalcava nominated incumbent Jackie Filbeck. She highlighted her support for youth in the City and her service on the Library Board.

NOMINATION: Council Member Rubalcava nominated Jackie Filbeck. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0.

Nomination approved.

19. Consider District 1 appointment to the Cultural and Heritage Commission to serve a term ending December 31, 2028.

City Council Minutes of June 10, 2025

Cultural and Heritage Commission:

DISTRICT 1 APPOINTMENT: Saul Contreras (term ending December 31, 2028) NOMINATION: Council Member Balius nominated Saul Contreras. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0.

Nomination approved.

PUBLIC HEARING:

20. Public Hearing on the status of City vacancies, recruitment, and retention efforts, pursuant to Assembly Bill 2561 (Government Code Section 3502.3).

Receive and file the report on the status of City vacancies, recruitment, and retention efforts, pursuant to Assembly Bill 2561 (Government Code Section 3502.3).

Director of Human Resources Linda Andal reported that effective July 1, Assembly Bill 2561 amended the Meyers-Milias-Brown Act, mandating public agencies to present data on vacancies and recruitment and retention efforts. She shared that the State legislature determined that high vacancy rates could adversely affect public service and increase employees' workloads. She explained that the goal of the bill was to address vacancy rates which could lead to burnout and increased turnover and exacerbate staffing challenges. She added that it aims to promote transparency and encourage proactive strategies to maintain adequate staffing levels to mitigate those challenges.

Director Andal reported that public agencies are required to present the status of vacancies and efforts in recruitment and retention at a public hearing prior to the adoption of the annual budget. She shared that if vacancies with a bargaining unit exceed 20%, the City shall provide additional detailed information upon the request of each bargaining unit. She noted that on May 22nd, each bargaining unit were notified of the hearing and their respective vacancy rates and their right to present at the public hearing. She shared that the Anaheim Municipal Employees Association (AMEA) would be presenting following staff’s presentation.

Director Andal presented the City’s bargaining units and respective vacancy rates for the calendar year 2024. She noted that vacancies fluctuate throughout the year with the percentage increasing near the end of the year due to retirements. She shared that the City’s vacancy rate within a single bargaining unit does not exceed the 20% threshold of authorized full-time positions. She added that despite not exceeding the threshold, the City recognizes the recruitment and retention challenges within the various bargaining units and is committed to finding solutions to address the challenges.

Director Andal reported that in 2024, Human Resources conducted over 930 recruitments, resulting in 235 full-time promotions and 116 external full-time hires. She noted that promotions continue to be a key workforce strategy that supports Strategic Plan Goal D – Fostering a high-performing organization, Strategy One to build a pipeline of new talent and support professional growth, and Strategy Two to demonstrate a commitment to employees’ careers. She shared that promotional opportunities maintain institutional knowledge and sustained productivity, higher employee morale, increased retention, quicker onboarding of employees, and lower recruitment costs. She added that the average time to hire from posting to placement is 60 to 90 days, including public safety. She highlighted recruitment strategies used, including an automated onboarding process, use of social media platforms, detailed job postings with salary increases and benefits highlighted. She added that City Council Minutes of June 10, 2025

the City partners and collaborates with departments to fill unique positions when targeted recruitment is necessary. She highlighted outreach at career fairs and job expos to diversify candidate pools.

Director Andal shared that the City and other neighboring cities are facing labor market competition in a tight job market and evolving workforce expectations. She explained that there is a shift to focus on skills compared to traditional educational backgrounds. She reported that due to the Class and Compensation study, the City’s classification specifications are under review and revisions must be approved by the respective labor groups. She noted that key initiatives to enhance recruitment efforts include internships and apprenticeships. She added that staff plans to work with schools and organizations to cultivate early career paths and create long-term employment pathways. She shared that other strategies include targeted outreach to enhance recruitment efforts in underrepresented communities and ensure diverse candidate pools, investment in an applicant tracking system, and employer branding and showcasing the Anaheim Way.

Director Andal reported that during the 2024 calendar year, the City’s overall retention rate was 93% reflecting the City’s commitment to creating a supportive and engaging work environment. She shared that retention is a multi-faceted approach that includes compensation, employee engagement, employee morale, healthy work environments, and leadership. She highlighted on-site workshops, biometric screening, vision exam pop-ups, and the annual health fair to enhance employee well-being and lunch and paint days to support employee mental health.

Director Andal reported that the Class and Compensation study is being finalized to ensure job classifications and salary structures are at market and competitive with other cities. She noted coach and mentorship opportunities to identify and nurture future leaders. She highlighted employee recognition and engagement events, including service awards, the annual Employee Appreciation Picnic, and decorating contests. She shared that Human Resources was recognized at the 14th Annual Giles-O’Malley leadership luncheon for its excellence in leadership development. She noted that Anaheim was the first city to receive the distinction in the past 14 years. She added that the Department is dedicated to continuing initiatives that address staffing needs and retention, including expanding professional development programs, refining and developing new pipelines, implementing formal check-ins with new hires, and exploring cross-departmental initiatives. She concluded with an employee testimony from Annie with Public Works, Jeffrey Martinez with Code Enforcement, and Ross Johnson with the Convention Center, who highlighted their experience working in Anaheim.

Labor Representative Presentation:

Jonnae Barreras, President of the Anaheim Municipal Employees Association (AMEA), representing the General and Clerical bargaining units, shared that despite the vacancy rate not reaching 20%, there are consequences to City vacancies, particularly in public safety communications. She explained that out of 32 positions, 10 are vacant, resulting in a 26.3% vacancy rate. She explained that for six months, AMEA has raised concerns about the urgency of retaining employees who are leaving for cities with lower call volumes and significantly higher pay. She reported that Fire Dispatch has four vacancies with the Police Department moving in the same direction. She explained that they do not receive incentives, reclassifications, or additional staffing support. She recognized the City’s efforts to support recruitment; however, the efforts require long-term solutions. She noted that the positions are critical to the public safety of the community. She added that AMEA supports the development and investment in the workforce and strategic goals; however, appreciation events do not fill vacancies or retain employees. She shared that the Classification and Compensation could help with the issue; however, it is taking a considerable amount of time to complete. She added that the City will continue to lose employees before adjustments take effect.

In response to Mayor Aitken, Ms. Barreras confirmed that dispatchers are part of the Clerical bargaining unit.

City Council Minutes of June 10, 2025

DISCUSSION: Council Member Rubalcava shared that, despite AB 2561 targeting bargaining units, job classifications are more relevant for vacancy rates. She expressed concern about the dispatcher vacancy rate and residents' experience with dispatch due to a lack of resources or staffing. She called to identify a solution and evaluate the Police Department’s budget for potential funding. She advocated for additional funding to support the Police Department.

Council Member Kurtz shared her experiences with calling dispatch and officers responding to dispatch calls due to a lack of staffing. She explained that an officer answering dispatch calls takes away from their role patrolling the streets.

At 8:02 p.m., Mayor Aitken opened the public hearing.

Marc Herbert highlighted the detailed presentation and expressed his support. He questioned whether staff are limited by the direction of the City Council. He mentioned vacancies in other departments and a lack of personnel to fulfill duties. He noted that employee retention includes not overworking employees and expressing appreciation for them. He explained that the Council has not explored options for additional funding for housing and hiring additional employees. He questioned the lack of public engagement and the Housing and Community Development Commission’s missed meetings.

City Clerk Theresa Bass reported that no electronic public comments were received related to Public Hearing Item No. 20.

At 8:07 p.m., Mayor Aitken closed the public hearing.

Council Member Leon echoed his Council colleagues' comments. He thanked staff for the presentation and AMEA for addressing the Council with their concerns. He supported bringing an item forward to address the concerns related to dispatchers.

Council Member Rubalcava expressed her appreciation for the presentation. She inquired about writing to the State regarding the purpose of the bill. She thanked staff for their investment in employees and highlighted the employee appreciation events. She emphasized reviewing specific areas to address certain positions, especially when bargaining units have been advocating for months. She requested to find solutions to fund the dispatcher positions despite the limited budget.

Mayor Pro Tem Meeks thanked staff for their work. She shared her support for the Classification and Compensation study and for fairly compensating employees. She shared that the goal, once funds become available, is to fairly compensate employees.

Council Member Balius echoed Mayor Pro Tem Meeks’ comments. He inquired if flexible schedules contributed to the 93% employee retention rate.

In response to Council Member Balius, Director Andal shared that flexible schedules are available and that the schedules have benefitted retention. She explained that there are options for a 9/80, 3/12, or 4/10, and a work-from-home day. She added that the benefits help for recruitment.

MOTION: Mayor Pro Tem Meeks moved to receive and file the report on the status of City vacancies, recruitment, and retention efforts, pursuant to Assembly Bill 256, seconded by Council Member Balius. ROLL CALL VOTE: AYES – 7 (Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz, and Maahs); NOES – 0. Motion carried.

City Council Minutes of June 10, 2025

REPORT ON CLOSED SESSION ACTIONS: City Attorney Robert Fabela reported that Closed Session Item No. 1 was removed from the Closed Session agenda and continued to the Council meeting of June 17, 2025.

PUBLIC COMMENTS (non-agenda items): None
COUNCIL AGENDA SETTING:

Council Member Leon highlighted that Consent Calendar Item No. 5 regarding the Catalpa Avenue Sanitary Sewer Line Replacement Project also covers project work under the Community Workforce Agreement with construction scheduled to begin soon and will be completed later in the fourth quarter. He shared that as the City’s representative for the Orange County Sanitation District, he has learned a lot about sanitary sewers and processes.

Council Member Rubalcava requested to work with the City Attorney on an emergency services first right of refusal policy. She stated that she would like an ordinance or policy that prevents businesses and organizations from outsourcing police, fire, and emergency services to a bigger agency.

Mayor Pro Tem Meeks stated that there are many diverse communities across the City and she does not believe a single senior center for the City is appropriate. She requested to agendize a senior center discussion regarding feedback staff has received from the senior community related to their desires for a senior center.

ADJOURNMENT: With no further business before the City Council, Mayor Aitken adjourned the City Council meeting at 8:17 p.m., in memory of Officer Samuel Riveros.

Respectfully submitted,
Theresa Bass, CMC
City Clerk