B LAW COR P OR A T ION · Dear Attorney General Harris and District Attorney Rackauckas: On behalf of Tina Quintana (a registered voter in the City of Anaheim) and Orange County Communi

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BRIGGS LAW CORPORATION

San Diego Of f ice:

814 M orena Boulevard, Suite 107

San Diego, CA 92110

Telephone: 619-497-0021

Facsim ile: 619-515-6410

Inland Em pire Of f ice:

99 East “ C” Street, Suite 111

Upland, CA 91786

Telephone: 909-949-7115

Facsim ile: 909-949-7121

P lease respond to: In land Em pire Off ice BLC File(s) : 1479.08

7 August 2013

Attorney General Kamala HarrisCalifornia Department of Justice1300 “I” StreetSacramento, CA 95814

District Attorney Tony RackauckasCounty of Orange401 Civic Center Drive WestSanta Ana, CA 92701

Re: Request for Prosecution of Anaheim City Councilmembers KrisMurray, Gail Eastman, Lucille Kring, and Jordan Brandman underCalifornia Political Reform Act

Dear Attorney General Harris and District Attorney Rackauckas:

On behalf of Tina Quintana (a registered voter in the City of Anaheim) and Orange CountyCommunities Organized for Responsible Development, and pursuant to Government Code Section91007, I am writing to request that you commence prosecutorial actions against Anaheim CityCouncilmembers Kris Murray, Gail Eastman, Lucille Kring, and Jordan Brandman for violations ofthe Political Reform Act of 1974 (“PRA”).

My clients believe that these four politicians violated the PRA for the following reasons:

(1) All four of them voted in favor of items 23 and 25 on theAnaheim City Council’s agenda for its regular meeting on May 14,2013. See the meeting’s minutes (Ex. “A” hereto), p. 23. The subjectmatter of those items was the GardenWalk Hotel Project, whichreceived a $158 million tax subsidy. The video of the meeting isavailable at http://anaheim.granicus.com/MediaPlayer.php?view_id=2&clip_id=1244.

(2) Councilmembers Eastman and Murray sit on the Support OurAnaheim Resort (“SOAR”) advisory committee with Bill O’Connell.Mr. O’Connell is one of the principals of the GardenWalk HotelProject and thus is a beneficiary of the subsidy. A copy of the “AboutSOAR” web page is attached as Ex. “B”; check the list of advisorycommittee members to see all three of these persons listed. The

California Attorney General Kamala Harris August 7, 2013Orange County District Attorney Tony Rackauckas Page 2

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councilmembers thus have a business relationship with a beneficiaryof the subsidy.

Additionally, SOAR executive director Jill Kanzler spoke in favor ofthe subsidy. See the meeting minutes (Ex. “A”), p. 7. Todd Ament,who co-chairs the SOAR advisory committee, spoke in favor of thesubsidy (see p. 7). Sandra Day and Stan Pawlowski, also members ofthe advisory committee, spoke in favor of the subsidy (see pp. 3 & 5).Again, the councilmembers have a business relationship with thesepersons.

The relationship between SOAR and Mlle. Murray and Eastman wasnot disclosed during the May 14 meeting.

(3) Councilmember Kring’s latest Form 460 (see Ex. “C”) shows thatSOAR’s political action committee gave her $500.00 a few monthsbefore she voted in favor of the subsidy and gave her another $500.00less than two weeks after the vote. A public official may not vote ona campaign contributor’s project within 12 months of receiving thecontribution, and taking such action constitutes an illegal conflict ofinterest. (Even if that were not the rule, my clients believe that therehas been a quid pro quo.)

(4) Councilmember Brandman was endorsed by the SOAR politicalaction committee and received money from it. The endorsementannouncement is attached as Ex. “D.” Mr. Brandman’s Form 460 forthe first half of 2012 (see Ex. “E”) shows that he received $1,800.00from the PAC on June 30, 2012. As with Ms. Kring, his vote on thematter is illegal under the PRA and case law construing. (Again, myclients believe there has been a quid pro quo.)

Please return a file-stamped copy of this letter for my records and be sure to let me know, oneway or the other, whether you decide to take action; under Government Code Section 91007, youhave 120 days from receipt of this request to file suit. My clients intend to file suit if you decide notto do so.

Thank you very much for giving this request the attention it deserves.

Sincerely,

BRIGGS LAW CORPORATION

Cory J. Briggs

Exhibits

REQUEST FOR PROSECUTION

Exhibit “A”

ANAHEIM CITY COUNCIL REGULAR MEETING

AND REGULAR ADJOURNED MEETING

OF MAY 14 2013

The regular meeting of May 14 2013 was called to order at 300 PM in the chambers ofAnaheim City Hall and adjourned to 430 PM for lack of a quorum The regular adjournedmeeting was then called to order at 433 PM by Mayor Tait

The meeting notice agenda and related materials were duly posted on May 10 2013

PRESENT Mayor Tom Tait and Council Members Jordan Brandman Gail Eastman LucilleKring and Kris Murray

STAFF PRESENT Interim City Manager Marcie Edwards Interim City Attorney MichaelHouston and City Clerk Linda Andal

ADDITIONSDELETIONS TO CLOSED SESSION None

PUBLIC COMMENTS ON CLOSED SESSION ITEMS

Cecil Jordan Corcoran Outreach Homeless Ministries updated council on the publishing of hisoverview of the bible

William Fitzgerald Anaheim Home voiced his opinion on the legality of the closed sessionagenda

At 440 PM Council recessed to closed session for consideration of the following item

CLOSED SESSION

1 CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION

Initiation of litigation pursuant to paragraph 4 of subdivision d of Section549569 Seven potential cases

At 501 PM council session was reconvened

INVOCATION Scholar Jasdeep Singh Mann Sikh Council of Southern California

FLAG SALUTE Council Member Jordan Brandman

ACCEPTANCE OF OTHER RECOGNITIONS To be presented at a later date

Recognizing Arthur H Echternacht President CaliforniaHawaii ElksAssociation

Recognizing John Welter Police Chief on his retirement from the City ofAnaheim

Chief Welter thanked council for the recognition and for their support to the departmentthroughout his tenure

City Council Minutes of May 14 2013

Page 2 of 27

Proclaiming May 2013 as Asian American and Pacific Islander HeritageMonth

Cyndi Ting thanked the city for recognizing Asian Americans and Pacific Islanders adding thatshe represented the Magnolia High School United Asian Club She announced that the firstChinese Lion Dance Team from Magnolia school would perform at the Anaheim ChildrensFestival next Saturday In addition she indicated the first Asian AmericanPacific Islander SpiritWeek would kick off next week with each of the clubs on campus representing different culturesfrom Asia and sharing their experiences

Proclaiming May 2013 as Jewish American Heritage Month

Proclaiming May 2013 as National Community Action Month

Rosa Renteria Independencia Family Resource Center accepted the proclamation thankingthe city for recognizing community action organizations and the services they provided

Proclaiming May 1317 2013 as BiketoWork Week

Ken Phipps Orange County Transit Authority OCTA thanked Anaheim for its strongparticipation in and promotion of Bike to Work Week a priority program for OCTA He remarkedthat last year the OCTA board established a 45 million competitive grant program for bikeprojects throughout the county and had awarded funds to 21 projects

Proclaiming May 1317 2013 as Project Management Week

Proclaiming May 1925 2013 as National Emergency Medical ServicesWeek

Proclaiming May 1925 2013 as National Public Works Week

City Engineer Mark Vukojevic remarked the Public Works Department provided for themaintenance and operation of roads bridges public spaces public facilities and theunderground water and sewer systems for the city He added during Public Works Week the250 Anaheim Public Works team would educate and promote the public about the citysinfrastructure engineering construction and maintenance with its goal of improving the qualityof life for its residents businesses and visitors

Proclaiming May 15 2013 as Peace Officer Memorial Day

Interim Police Chief Raul Quezada remarked that Peace Officer Memorial Day had beenestablished by President Kennedy in 1962 to recognize law enforcement officers who lost theirlives in the line of duty for the safety and protection of others thanking council for heighteningawareness of this day

Proclaiming May 22 2013 as Harvey Milk Day

Dr KevinOGrady Gay and Lesbian Community Services Center of Orange County thankedthe city for recognizing Harvey Milk and his significant contribution to civil rights in California

At 514 PM Mayor Tait called to order the Anaheim Housing Authority in joint session with theAnaheim City Council


Page 3 of 27

ADDITIONSDELETIONS TO THE AGENDAS None

PUBLIC COMMENTS all agenda items except public hearing Mayor Tait establishedguidelines for public comments stating they would cover agenda items 1 through 24 includingItem No 23 regarding the proposed economic assistance agreements for the GardenWalk hotelproject He added the Public Hearing for the proposed amendment to the GardenWalk projectdevelopment agreement would occur later during the meeting and the public would be given anopportunity to speak at that time

Russell reported traffic lights on Harbor Boulevard were not set properly to allow pedestrians tocross safely Mayor Tait referred this matter to the Interim City Manager

Cecil Jordan Corcoran Outreach Homeless Ministries discussed the status of his bible reviewproject

Henry Vandermeir Democratic Party of Orange County presented a resolution on behalf of thelocal Democratic Party concerning the adoption of district elections in Anaheim He read thespecifics of the resolution encouraging adoption of eight separate districts and placing thematter on the ballot for the 2014 general election

James Robert Reade resident voiced his opinion on Pauline Eastside Citron and Ponderosagang activity remarking the new Travelersgang was gaining strength throughout the city

William Fitzgerald Anaheim Home spoke on a number of issues related to staff both past andpresent He offered copies of documents he felt would substantiate his allegation that a forgeryoccurred on a contractual agreement with the city

Craig Ferrell resident spoke in support of the proposed GardenWalk hotels remarking therewas no risk to the general fund with no upfront expenditures required by the city In additionthe agreement would not diminish or take away funding from any existing city services whilegenerating future revenues and for those reasons he encouraged councils approval

Carol Latham thanked Anaheim city staff the sponsors and the community for contributing tothe success of the WAND barbeque adding that over3000 attended and enjoyed the WestAnaheim community event

Michael Baker updated council and the community on recent Boys and Girls Club eventsidentifying goals that had been reached and those established for the future adding that thosegoals would not have been possible without the support of the city and the community

Vivian Pham Chair of the Citizens Advisory Committee remarked the committee had finalizedtheir recommendation to city council last Thursday ie to move forward with having the citizensof Anaheim vote on whether to have elections by district or have them remain at large andwhether to increase the council membership Additionally Ms Pham offered her support for aworker retention ordinance to address the Honda Center workers and opposed the proposedGardenWalk hotel tax incentive

Stan Palowski resident spoke in support of the proposed GardenWalk hotels remarking on thesuccess of the baseball stadium and the convention center all built with the prospect ofgenerating future revenues He added the GardenWalk project would grow revenues for futuregenerations

City Council Minutes of May 14 2013Page 4 of 27

Michael Buss Anaheim Arts Council promoted the Anaheim ChildrensArt Festival at CenterStreet Promenade this Saturday featuring a day of free art activity and other events for childrenand their families

Jesse Jessup asked for moment of silence to draw attention to national and local racialprejudice

Jeff resident appealed to city council for the establishment of a worker retention ordinance tohelp Honda Center workers retain their jobs He supported district elections as well andopposed the proposed GardenWalk tax incentive agreement

Jeanette Lister Honda Center employee sought council adoption of a worker retentionordinance remarking Honda Center management had already posted recruitment ads on theirwebsite to fill the positions of Aramark employees who were losing their jobs

Yesenia Rojas from Anna Drive strongly opposed the proposed GardenWalk tax incentiveagreement citing the need to retain tax dollars to help improve the disenfranchisedneighborhoods in the city

Tefere Gebre Orange County Labor Federation remarked Honda Center employees werebeing dismissed in order for Honda Center management to rehire at a lower rate of pay andreceive a 37440 tax credit per employee due to the fact the Center was in the AnaheimEnterprise Zone He urged council to take action and represent those workers who had novoice in this matter and to stop this type of practice in the enterprise zone

Mark Daniels resident pointed out the Resort District and the Platinum Triangle had their owndesignated street signs with the city seal omitted He felt it was important to include the cityseal on those signs in a prominent manner as motorists traveled through intersections becausethose areas should be identified as being in the City of Anaheim

Jason Gonzales resident opposed the hotel tax incentive agreement remarking revenuesshould be earmarked for other needs such as playgrounds and street signs

Genevieve Chavez Huizar opposed the GardenWalk hotel tax incentive plan which she statedwould take away funds for parks libraries and job growth in the city

Sonia Hernandez discussed the impacts the death of Martin Angel Hernandez had on her familyand neighborhood asking for accountability for the officer involved in his shooting

Damian Ramirez United Survivors of Anaheim supported Honda Center workers who werefighting for their jobs the establishment of council elections by district and opposed theGardenWalk hotel tax incentive

Rick Skinner resident opposed the GardenWalk hotel agreement stating the tax incentiveswere unfair to other hotel operators and residents would lose 158 million in future lostrevenues

John Gillespie resident opposed the GardenWalk hotel agreement stating the hotel site wasone of the most prime real estate properties in the city and it made no business sense to giveaway future revenues on a site that would eventually be developed because of that desirablelocation


Page 5 of 27

Charles Ahlers OC VCB supported the need for fourstar hotels in Anaheim to attract highend conventions and their attendees looking for luxury accommodations Anaheim heremarked had too many smaller hotels and not enough luxury room choices and did not fare aswell as San Francisco San Diego and in many cases Los Angeles for that reason Heemphasized in order to do better the product must change

Duane Roberts resident urged council to adopt the Citizen Advisory Committeerecommendations as it would lead to greater civic engagement and representative governmentfor Anaheim Regarding GardenWalk he was not opposed to tax subsidy incentives onprincipal but felt the developers should be required to pay employees living wages

Patty Gainey resident opposed the GardenWalk Hotel agreement believing it would not benefitthe residents and would continue to have negative impacts for 30 years

German Santos resident believed there was a moral crisis in the nation with regard to racialbias explaining his personal situation and why he believed this to statement to be true

Christopher Smith Honda Center worker urged council to represent its citizens and help savejobs of Honda Center employees

Alexandra Lopez talked of harassment by Anaheim police officers asking that council stop thistype of activity against the community

Theresa inquired why officers were not using recording devices that were purchased in 2011 bythe Police Department devices that could be used to confirm or deny allegations made againstofficers by civilians

Teri Thaxton non resident spoke first to the need for accountability for police officers involvedin shootings and to the need for additional police officer training in all other areas

Sandy Day resident presented statistics regarding the Doubletree Hotel which shared a similarTOT incentive as that offered to GardenWalk hotels In 2011 the Doubletree Hotel collected

and paid8622594 in transient occupancy taxes TOT to Anaheim and received 50 percent ofthat back in rebate ie4311297 In addition there was almost 300000 collected forAnaheim Trails and Improvement District fees in November 2010 She added these funds didnot include sales or property taxes which the city also received job growth through the hiring of132 employees on staff as a mix of full and parttime and the employment of 1200 during 18months of construction She noted Council Member Kring and Mayor Tait were on the councilat that time and voted to approve the Doubletree development agreement in early 2000 andbecause of that vote 140 people had jobs today and this publicprivate partnership had metpromised expectations

Victoria de Gomez expressed distrust that council would make the right decision on theGardenWalk hotel project asking that the citizens be allowed to vote on this proposal

Vern Nelson OJ Blog spoke in opposition to the GardenWalk Hotel development agreementremarking if the developer would wait an additional year he would be able to build the projectwithout any subsidy and Anaheim would receive 100 percent of the TOT He stated if thisagreement was approved other developers would demand the same treatment and he believedthat scenario had already occurred regarding the GardenWalk mall


Renee remarked the people of Anaheim were waiting for action to be taken and for officersinvolved in recent shootings to be held accountable for their acts or at the very least have theirpatrol routes changed from the inner city neighborhood to other sections of the city

Donna Acevedo resident expressed grief over the death of Joel Acevedo remarking on theimpacts to her family She objected to the positions taken by the council majority over recentactions and tax breaks given to big corporations while residents remained disenfranchised

Katie Rollins resident urged council enactment of district elections to allow representation forall Anaheim residents and spoke in support of Honda Center workers asking for assistance withtheir job loss

Trina Rollins Honda Center employee appealed to council to assist the workers whose effortscontributed to making Anaheim event venues a success

Linda Lagados resident objected to the developer tax subsidy asking that council make theneeds of children of low income families a priority along with parks libraries and the homeless

Tina Cortana resident urged the passage of a worker retention ordinance for the Honda Centeremployees Additionally she supported district elections with eight council seats asking thatthis matter go before the vote of the people quickly

Carolyn Johnson resident recommended an election on the GardenWalk hotel development beheld to let the people decide on the use of transient occupancy tax Additionally she proposedthat some of those revenues be used to develop an international sporting club where youthswere helped by professional soccer players while developing their leadership skills as well astheir athletic ability

Ada Briceno Unite Here Local 11 remarked that development subsidies in Los Angeles wereonly offered when assistance was provided for surrounding communities along with a workerretention ordinance to safeguard employees Ms Briceno advocated for a similar ordinance forAnaheim to protect the Honda Center employees and protect against the financial incentivesbrought about by the Anaheim Enterprise Zone

An unidentified female did not feel enough was being done for the poor people of Anaheimciting specific instances to validate her observation

Steve McKay Anaheim Community Coalition objected to the proposed developer incentiveplan remarking future generations would point to this decision as one of the most disastrouspolicy decisions made He urged no action be taken

Cynthia Ward resident requested Agenda Item No 9 be pulled from the consent calendar for afuller understanding of the contract change order Addressing Item No 16 the AnaheimEnterprise Zone she expressed distress that employers within the Enterprise Zone could bedismissed and then those employees replaced for the purpose of being rewarded with a taxcredit for doing so She asked why the Chamber of Commerce was asking for over 1 million inadditional funds to administer the enterprise zone when an audit of their work was not yet beencompleted and whether Chambers staff had met with the Honda Center management tointervene on behalf of the layoffs as required by the enterprise zone contract Ms Wardrecommended the audit be completed before actions were taken on this item


Dr Patricia Adelekan resident urged council to take actions that would benefit all people andharm none

Jill Kanzler SOAR spoke in support of the economic assistance agreement that would createtwo fourstar hotels in Anaheim GardenWalk emphasizing this project would benefit the resortdistrict create thousands of new jobs and millions of dollars in tax revenue as well as breathenew life into the GardenWalk Center She added the SOAR coalition supported this projectbecause it would pose no risk to the general fund while serving as an important step inrevitalizing the citys tourist infrastructure benefiting the city and its citizens as a whole

Ricardo resident stated the developer tax subsidy was dividing the city recommending it beput to a vote of the people and allow the city to heal

Maria Ariz resident explained the realities of working as a dishwasher and fighting for acontract with Disney Corporation She stood in solidarity with the Honda Center employees whowere losing their jobs remarking it was the employees that made these venues successful

Amin David resident citing the outcome of Anaheim council election statistics urged council toput the developer tax incentive on the ballot along with district elections

Alex Lehey Buena Park Library District remarked that in 2009 Los Angeles Alliance for NewEconomy study looked into what a 750 million taxpayer investment in Long Beachstouristindustry yielded and found concentrated poverty as a result He wondered if planned budgetcuts were taking away from the public good and whether so much public money was offered forprivate development when West Anaheim was neglected He asked for positive public serviceson Beach Boulevard as deserving of councilsattention and city resources as the Resort District

Todd Ament Chamber of Commerce remarked the Chamber had a successful year with theAnaheim Enterprise Zone and to date over3000 people had been employed and over 10million was invested in equipment and job growth for the city Addressing the GardenWalkproject he remarked that over the next 20 years over 258 million would be generated for thecity and should the subsidy not be approved the city would get a less dense project that wouldcreate a fraction of the jobs and revenue that is approximately 60 million over that same timeperiod He urged council to approve the project and consider establishing a policy to bring morejobs and create more revenue for the resort

Lawrence Pearson Woodard Sr resident announced that over the next four days 6000members of the Elks would visit Anaheim asking they be welcomed and encouraged to returnin 2017

Brian Chuchua resident was distressed that an unintended consequence of the AnaheimEnterprise Zone was for employers to fire employees and rehire at a lower wage in order toqualify for a tax credit He also urged council to deny the GardenWalk Hotel developmentagreement

Lord Galloway supported a worker retention ordinance to protect current Honda Centeremployees and spoke in opposition to the 158 million tax subsidy for the GardenWalk hotelsShe added as a former council member she understood this agreement how and why it wascreated and who benefited from it and she strongly objected to an agreement that profited a fewwhile ignoring Anaheimsdisenfranchised


Andrea manes invited the community to enjoy the Greek Festival held at St John the BaptistGreek Orthodox Church this weekend

Eric Altman OCCORD spoke against the 158 million tax subsidy stating it did nothing tocreate public resources parks libraries and community centers in neighborhoods thatdesperately needed those resources Mr Altman added this issue was one of the reasons thecommunity was urging city council elections by district rather than at large to allow everyneighborhood to have a voice in how city needs were considered He then urged council toaccept the recommendations of its citizen advisory committee and put a charter amendment onthe ballot increasing the size of this council to six or eight seats and allow for a vote of thepeople

David Rose remarked in 1996 he approached the city with an idea to redevelop a 10 acrechurch site an orange grove two hotels a warehouse and a Chinese restaurant into a projectcalled Anaheim Center for Entertainment Staff rejected that proposal and in 1999 it resurfacedas Anaheim GardenWalk modeled after Universal City Walk but unfortunately he stated thetiming for that project occurred during the economic downturn He emphasized existingconventioneers and sports fans had the resort area bustling with visitors ready to spend moneyand the only thing lacking was enough luxury fourstar hotels to attract those highendspenders He fully supported the GardenWalk Hotel development agreement

Joanne Sosa Take Back Anaheim addressed specific comments to each of the councilmembers ending her remarks stating a rally would be held on July 24 for community membersto celebrate their victory

At 748 PM Mayor Tait recessed the city council meeting to address the Anaheim HousingAuthority agenda Council session was reconvened at 749 PM

CONSENT CALENDAR Council Member Kring removed Item Nos 9 and 16 from the consentcalendar for further discussion Mayor Tait indicated he would record an abstention on ItemNos 4 5 6 7 and 8 as his firm had worked with RJ Noble Company Patriot ContractingEngineering and BP West Coast Products Council Member Kring then moved to waive readingin full of all ordinances and resolutions and to adopt the balanced of consent calendar aspresented in accordance with reports certifications and recommendations furnished each citycouncil member and as listed on the consent calendar seconded by Council Member MurrayRoll Call Vote Ayes 5 Mayor Tait and Council Members Brandman Eastman Kring andMurray Noes 0 Motion Carried

8105 3 Receive and file minutes of the Community Services Board meeting of March 14 2013Cultural and Heritage Commission meeting of March 21 2013 Sister City Commissionmeeting of March 25 2013 and Public Utilities Board meetings of February 27 2013 andMarch 27 2013

4 Award the contract to the lowest responsible bidder RJ Noble Company in the amountof 70124708for the Anaheim Boulevard Improvements from the Santa Ana Freeway15 to Ball Road and authorize the Finance Director to execute the Escrow Agreement

AGR7603pertaining to contract retentions

Motion by Council Member Kring to approve seconded by Council Member Murray Roll CallVote Ayes 4 Mayor Pro Tem Eastman and Council Members Brandman Kring andMurray Noes 0 Abstention 1 Mayor Tait Motion to approve carried


5 Award the contract to the lowest responsible bidder RJ Noble Company in the amountAGR7604 of 55534036for the Broadway Improvements from Dale Avenue to Magnolia Avenue

and authorize the Finance Director to execute the Escrow Agreement pertaining tocontract retentions


6 Award the contract to the lowest responsible bidder RJ Noble Company in the amountof103259267for the Knott Avenue Improvements from Orange Avenue to Lincoln

AGR7605 Avenue and the Orange Avenue Improvements from Knott Avenue to Western Avenueand authorize the Finance Director to execute the Escrow Agreement pertaining tocontract retentions


7 Award the contract to the lowest responsible bidder Patriot Contracting Engineeringin the amount of1555190 for the West Anaheim Bike Trail through Edison Powerline

AGR7606 Easement Improvements project from Lola Avenue to Broadway and authorize theFinance Director to execute the Escrow Agreement pertaining to contract retentions


8 Approve an Agreement for Acquisition of Real Property with BP West Coast ProductsLLC in the acquisition payment of 312000 including a nottoexceed 10000reimbursement payment to relocate a shutoff valve for property located at 1801 South

AGR7607 State College Boulevard for a nonexclusive public utility easement and temporaryconstruction easement for the Katella Avenue Improvement 1A project State CollegeBoulevard to Lewis Street RAN ACQ 201100412


10 Approve and authorize the Community Development Director to execute and administerthe Cooperation Agreement CityHousing Authority Loan Agreement by and between

AGR7602 the Anaheim Housing Authority and the City to fund a loan to the Successor Agency ofthe Anaheim Redevelopment Agency

11 Approve and authorize the Community Development Director to execute and administerthe Cooperation Agreement Loan Agreement pursuant to Health and Safety CodeSection 34173hby and between the City and the Successor Agency to the Anaheim

AGR76021 Redevelopment Agency to fund a loan to the Successor Agency of the AnaheimRedevelopment Agency

12 Approve an agreement with Jonathan Price Design in an amount not to exceed 30000AGR33670 annually to design the Anaheim magazine and graphic communication elements for a


term of one year with two oneyear optional renewals and authorize the City Manager toexecute any related documents to administer the agreement

13 Approve the First Amendment of the Canyon Power Project Site Lease and ServicesAgreement with Southern California Public Power Authority and authorize the Public

AGR541011 Utilities General Manager to take the necessary actions to implement and administer theamendment

14 Approve and authorize the Public Utilities General Manager to execute and take thenecessary actions to implement and administer License Agreement Contract No

AGR19550 91798 with Southern California Edison Company SCE for an electric transmissionand fiber optics rightofway and License Agreement Contact No91579 with SCE foran electric overhead and underground distribution rightofway to remain within theBarreVilla Park 220 kV transmission line rightofway

15 Approve and authorize the Human Resources Director to implement and offer anD1541 accelerated separation program for full time employees in classifications assigned to theD1542 Confidential ProfessionalTechnical Middle Management Supervisory and

Administrative Management units employed within the Community DevelopmentDepartment

RESOLUTION NO 2013065 A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ANAHEIM approving a Letter of Understanding between the AnaheimMunicipal Employees Association General and Clerical Units and the City of Anaheim

17 RESOLUTION NO 2013067 A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ANAHEIM authorizing the Director of Community Services or hisAGR7608 designee Director to accept all grants from KaBOOM on behalf of the City of

Anaheim for the installation and maintenance of playground equipment at ModjeskaPark authorizing the Director to execute all required grant documents

Approve the KaBOOM Letter of Intent and authorize the Director of CommunityServices or his designee to act as the agent of the City on all matters concerning thisgrant program and to accept future stipends and funds received from KaBOOM formaintenance of the playground equipment at Modjeska Park

18 RESOLUTION NO 2013068 A RESOLUTION OF THE CITY COUNCIL

R100 OF THE CITY OF ANAHEIM expressing support for the exploration of a formal SisterCity relationship with Pudong China

19 ORDINANCE NO 6274 ADOPTION AN ORDINANCE OF THE CITY COUNCILM142 OF THE CITY OF ANAHEIM amending portions of Chapter 18116 of Title 18 of the

Anaheim Municipal Code nunc pro tunc to make clarifications to andor correct errors oromissions in Ordinance No 6265 previously adopted Introduced at Council meeting ofApril 16 2013 Item No 20

20 ORDINANCE NO 6275 ADOPTION AN ORDINANCE OF THE CITY OFM142 ANAHEIM amending Ordinance No 6235 relating to a pilot program for the operation of

a self service bicycle sharing system within the City of Anaheim Introduced at Councilmeeting of April 30 2013 Item No 24


Page 11 of 27

M14221 ORDINANCE NO 6276 ADOPTIONANORDINANCE OF THE CITY OF

ANAHEIM amending Chapter 1440 of Title 14 of the Anaheim Municipal Code relatingto speed limits on city streets Introduced at Council meeting of April 30 2013 Item No25

D114

22 Approve minutes of the Council meetings of April 16 2013

END OF CONSENT CALENDAR

9 Approve and authorize the Director of Public Works to execute Contract Change OrderAGR651701 No 1 and any related documents in the amount of1100000 in favor of CC Myers

Inc for additional work for the Gene Autry Way Interchange Improvement project

Mark Vukojevic City Engineer reported this item was a contract construction change order thatsummarized all of the additional work that was performed on the Gene Autry Way Interchangeand roadway project Of these items he noted approximately 85 percent were completedexcept for some additional fencing and roadway striping changes that would be finalized uponapproval of the contract change order The work he explained included additional pavementrepairs requested by Caltrans additional pavement on Haster Avenue additional expenses forutility relocations and adjustments to adjacent properties in order to make the project functional

Council Member Kring inquired whether these changes were not anticipated in the originalcontract with Mr Vukojevic replying in the affirmative

Council Member Kring then moved to approve Item No 9 seconded by Mayor Pro TernEastman Roll Call Vote Ayes 5 Mayor Tait and Council Members Brandman EastmanKring and Murray Noes 0 Motion Carried

16 Receive and file the Annual Report pertaining to deliverables for the Year 1 Agreementwith the Anaheim Chamber of Commerce to implement the Anaheim Enterprise Zoneapprove the First Amendment to the Agreement with the Anaheim Chamber of

AGR 71081 Commerce to implement the Anaheim Enterprise Zone and approve the Hiring TaxCredit Voucher Expedited Application Fee in the total amount of 128


THE CITY OF ANAHEIM approving an update of the boundaries of the targetedemployment area for the City of Anaheim Enterprise Zone reflecting new United Statescensus data

Sheri Vander Dussen Planning Director presented a brief review of the first year of theAnaheim Enterprise Zone AEZ along with proposed amendments to the existing contractbetween the City and Chamber for administration of the zone and an update to the CitysTargeted Employment Area a component of the enterprise zone

Last year she reported the California Department of Housing and Community Developmentgranted final designation to the Anaheim Enterprise Zone effective February 1 2012 for aperiod of 15 years For this designation the City made specific commitments to the State thathad to be fulfilled in the first five years of the program and included a minimum budget specificmarketing and outreach activities business visitation and reporting requirements Sheindicated Council subsequently entered into an agreement with the Anaheim Chamber of


Commerce to administer the enterprise zone for an initial period of five years with one option torenew for an additional fiveyear period and that included contract language that identifiedspecific reporting requirements and the scope of work for Year 1 as well as a compensationschedule for each of the five years of the contract

Ms Vander Dussen stated the Chamber submitted its first Annual Report for review by the cityoutlining achievements services and activities for the first year adding that the Chamber metthe provisions outlined in the scope of services of the contract and exceeded them in manyinstances They had processed almost 1500 tax credit vouchers for new employees andimplemented promotional activities for the enterprise zone resulting in over 28000 contacts withbusiness and community groups

Per contract provisions Ms Vander Dussen indicated an independent audit firm evaluated theChambersperformance and the overall performance of the enterprise zone for the first yearincluding assessing program and contract compliance and reviewing internal controls andreporting procedures related to the program She stated although the audit was not yetcomplete initial positive feedback from the audit firm indicated the Chambersperformance andcompliance with the scope of services met or surpassed its obligations The Chamber hadalready initiated changes to its operation in response to minor observations from the auditorrelated to its internal processes controls and procedures and staff expected recommendationsin the final audit report would result in refinements to the operation and administration of theAEZ to attain positive results in future audits by the state

CONTRACT AMENDMENTS

Based on actual costs of applying the enterprise zone for the first year Ms Vander Dussenstated the Chamber had submitted a request to modify the agreement and increasecompensation to more accurately reflect the costs they incurred including the addition of Citysponsorship of key community events the creation of an expedited voucher process andrelated fee and minor clarifications to the wording of the contract She added the originalcontract identified specific payment for each of the five years of the contract based on researchand discussions with other local enterprise zones She added that since all other enterprisezones were operated by government agencies it was difficult for the Chamber and the City toclearly project the actual costs of the program Therefore she explained the Chamber wasrequesting an increase in compensation for Years 2 through 5 to reflect the actual costs of theprogram incurred in Year 1 Those changes to compensation she explained were necessary tofund additional staff to carry out the daytoday enterprise zone tasks and cover higherthananticipated costs related to event planning reporting and tracking activities

In order to minimize the impact of the additional compensation requested by the Chamber itwas proposed to be paid from voucher revenue collected As part of the enterprise zoneprogram Ms Vander Dussen remarked businesses were able to obtain tax credits from theState when qualifying employees were hired She further added that since those tax creditswere processed by the local enterprise zone and submitted to the State the local zone couldcollect fees for voucher processing and use the fees currently set at 100 per voucher to offsetthe costs of enterprise zone administration Based on Anaheimsfirst year of voucher activityand voucher activity of other similar enterprise zones staff projected voucher revenue for thesecond contract year would be roughly 298000 which would cover the additional amountbeing requested by the Chamber For future years she remarked voucher revenue wasexpected to increase and level off at 500000 per year


Ms Vander Dussen noted when the contract was originally approved voucher revenue wasexpected to offset the cost the city incurred to create the enterprise zone over time and toreimburse the General Fund for expenditures to the Chamber Staff anticipated voucherrevenue would still cover all the additional costs being requested over the life of the zonehowever approval of the additional compensation requested would mean that it would takelonger for the City to recover all of its costs She added if the amount of voucher revenuereceived was not enough to cover annual contract costs the city would be able to defer ormodify certain contract tasks to reduce the compensation to the Chamber In no instance sheemphasized would the city be required to pay any amount to the chamber that exceeded thevoucher revenue collected for the contract year and if the Chamber collected more voucherrevenue than what was needed to cover the contracted amount that revenue would be remittedto the city

Ms Vander Dussen stated the Chamber also requested to be paid up front in the remainingcontract years in order to address many unanticipated hard costs that occurred in the first yearas it was not uncommon for them to carry thousands of dollars in cost for activities that werescheduled much later in the year Since the Chamber would be required to report on a quarterlybasis with the city tracking progress regularly any performance problem that surfaced sheemphasized would be noticed In addition Ms Vander Dussen pointed out the contract alsoincluded a ten percent withholding for each payment until the annual report was submitted toand approved by the city and staff could withhold more than ten percent if necessary to balancethe cost of tasks not completed Lastly she pointed out if the Chamber failed to complete tasksthere was the option of revoking the contract

Two additional proposals were offered by the chamber The first was an expedited reviewprocess for voucher applications which would guarantee the timeframe for voucher processingand if not met the Chamber would refund the expedited fee of 28 With the expedited fee MsVander Dussen remarked the total cost to process a voucher would be 128 a reasonableamount given the value of a single voucher could be as much as 38000 The second proposalwas to include sponsorship of several community events in this contract The City would pay97000 per year to sponsor the Taste of Anaheim an Economic Development Conference aBusiness Awards program and the Anaheim OC Job Fair and these events would complementthe Chambersenterprise zone activities The City would receive all the benefits of sponsorshipthat were offered to major sponsors for each event and this sponsorship amount would also bepaid from voucher revenue She added should not enough voucher revenue be collected thecity would not be required to sponsor all of the events

As a result of the Chambersefforts she reported 74 Anaheim businesses benefitted from theAEZ in the first year The Chamber fulfilled all of its obligations during that first year sheremarked even dedicating Chamber resources beyond the contracted amount to completeactivities and the proposed changes to the agreement would ensure the Chamber continued tofulfill all of the Citys obligations to the State to retain the AEZ

PROPOSED TARGETED EMPLOYMENT AREA MODIFICATION

In addition to modifying the Chamberscontract the Council was being asked to modify theTargeted Employment Area or TEA As required by the State Ms Vander Dussen pointed outthe TEA boundaries had been updated based on the latest census data Anaheim EnterpriseZone businesses could obtain a hiring tax credit if a resident of a TEA was hired since TEAswere typically areas where a majority of the residents had relatively low incomes As a result of


Page 14 of 27

this update the number of qualifying census tracts for the Anaheim TEA was reduced from 63census tracts to 53 census tracts and the total population with the Anaheim TEA was reducedfrom 272916 residents to 259149 residents These updated TEA boundaries she remarkedwould be effective June 1 2013

Ms Vander Dussen ended her presentation with a recommendation by staff to approve theproposed amendments to the existing contract between the City and Chamber including therevised compensation and payment schedule City sponsorships the expedited processing feeand minor clarifications and to approve the update to the Citys Targeted Employment Area

In answer to Mayor Taits question Ms Vander Dussen responded the audit would becompleted this June Mayor Tait then stated he would prefer to see the results of the auditbefore taking action on this amendment and moved for a continuance of this item until that timeseconded by Council Member Kring for discussion purposes

Mayor Pro Tern Eastman asked staff if a continuance would affect the zone operation with MsVander Dussen replying the Chamber contract year was February through January coincidingwith the granting of the Anaheim Enterprise Zone and while they were continuing to allocate thesame resources as the first year of the contract they were most likely not recovering all of theircosts at this point in time Mayor Pro Tern Eastman inquired whether approval could be grantedprovisionally until the audit was submitted with the city attorney responding it would not beappropriate and discussion was subsequently held on what other options were available to thecity related to audit rights or possible defaults or contract breaches Ms Vander Dussenindicated there were provisions in the contract that allowed the city to terminate this contract atany time without cause by giving 90 days notice in writing to the Chamber and that theChamber could not terminate this agreement except for cause

Mayor Pro Tern Eastman remarked an earlier concern had been raised by members of thepublic regarding possible unintended consequences of the enterprise zone Ms VanderDussen responded the Honda Center was within the boundaries of the Anaheim EnterpriseZone and nothing had been identified by staff that would make them ineligible for tax credits ifthey were to hire eligible employees through the termination of the ARAMARK contract

Roll Call Vote for Mayor Taits motion for continuance of this item seconded by Council MemberKring Roll Call Vote Ayes 1 Mayor Tait and Noes 4 Mayor Pro Tern Eastman andCouncil Members Brandman Kring and Murray Motion Failed

Council Member Kring moved to approve the First Amendment to the Agreement with theAnaheim Chamber of Commerce to implement the Anaheim Enterprise Zone to approve theHiring Tax Credit Voucher Expedited Application Fee in the total amount of 128 and toapprove RESOLUTION NO 2013066 OF THE CITY COUNCIL OF THE CITY OF ANAHEIMapproving an update of the boundaries of the targeted employment area for the City of AnaheimEnterprise Zone reflecting new United States census data seconded by Council MemberMurray Roll Call Vote Ayes 4 Mayor Pro Tern Eastman and Council Members BrandmanKring and Murray Noes 1 Mayor Tait Motion Carried


23 City Council discussion and action onC350


AGR 1491AV THE CITY OF ANAHEIM approving the Fourth Addendum to the previouslyapprovedPointe Anaheim Initial StudyMitigated Negative Declaration for the Anaheim

AGR1491V GardenWalk Project and determining that said addendum together with otherpreviouslyapproved environmental documentation serves as the appropriateenvironmental documentation for the proposed Economic Assistance Agreementsbetween the City of Anaheim and GardenWalk Hotel I LLC for the GardenWalk HotelsProject


THE CITY OF ANAHEIM approving two Economic Assistance Agreements between theCity of Anaheim and GardenWalk Hotel I LLC for the GardenWalk Hotels Project andauthorizing the City Manager to execute and administer the Agreements

The Economic Assistance Agreements that are the subject of the aforementioned CityCouncil Resolutions authorize financial assistance from the City to GardenWalk Hotel ILLC in an amount equal to seventy percent 70 of the transient occupancy taxgenerated by the Hotels as defined in the agreements with such financial assistanceending on the earlier of i payment of the full Feasibility Gap Amount as defined in theagreements for each hotel which between the two Hotels amounts to a total of158000993 in financial assistance ii a 20year period from the date of completion ofeach hotel or iii termination of the agreements

Marcie Edwards Interim City Manager introduced this item stating it was prudent for Anaheimto continually look for new opportunities to help grow a critically important economic engine ofAnaheim specifically the tourism and hospitality business through transient occupancy taxTOT She indicated staffs analysis of the proposed GardenWalk assistance agreement wasthat it would attract larger and highly rated conventions to Anaheim that would help the overalleconomy by filling hotel rooms restaurants and retail shops and creating new monies for thegeneral fund and would not take away from existing city services Currently she added therewere very few ways of raising money for increased investment needs and rather thanrecommend raising taxes or cutting city services this assistance agreement she emphasizedwould enhance the citys revenue stream largely through its visitors These increases inrevenues would help provide support services to neighborhoods and address many of theneeds voiced by Anaheimsresidents The funds to build the hotels would be put up byinvestors and banks and only when those hotels were operating would the city then provide thedeveloper a share of the TOT they generated She added this was structured as aperformancebased incentive and if taxes were not generated the city would not provideeconomic assistance She further added that based on the work of experts in the hoteldevelopment field staff estimated the general fund would be better off by over 250 millionduring the term of the hotel incentives

John Woodhead Community Development Director reiterated that tourism played a significantrole in the economies of California Orange County and Anaheim and accounted for 1064billion in spending statewide and 835 billion countywide in 2012 He pointed out Anaheimcompeted well for tourism revenue generated by such spending and its success had paiddividends to the citys general fund Once service costs and the Anaheim Resort related debtservice was deducted approximately 45 million in net revenues were received by the citys


general fund from 109 million gross transient occupancy tax TOT revenues receivedannually With an adopted general fund budget of 237 million he pointed out the AnaheimResort provided revenue for nearly 20 percent of all general fund services 45 million for 100police officers five fire companies all city parks and libraries and the power generation costs forover 19000 street lights

These resort revenues he emphasized were driven by taxes specifically TOT principally paidby visitors to the city and effectively lowering the tax burden to the residents of Anaheim Inaddition to generating 45 million in net revenue for the general fund annually businesses in theresort were assessed through the Anaheim Resort Maintenance District ARMD in order tocreate and maintain a garden district that offered visitors a unique destination Those specialassessments paid only by the businesses in the resort funded median and parkwaylandscaping resort signage bus shelters special lighting and traffic signals at no cost to thegeneral fund In addition the property owners in the resort and Platinum Triangle approved theAnaheim Tourism Improvement District ATID in 2010 which provided for marketing andpromotion as well as transportation improvements solely funded by the businesses in the resortThe ARMD and ATID annually generated 15 million combined and allowed the resort area toremain selfsufficient

Mr Woodhead discussed the competition between cities to capture tourism revenue He sharedthat while Anaheim had been able to attract and capture a significant portion of tourism revenueit did not attract large upscale convention and tourism business and addressed this issue in1996 by establishing a plan to revitalize the citys tourist serving infrastructure to expand theindustry He added over time this investment nearly doubled TOT revenue over the lastdecade In 2002 in an effort designed to compete for and attract additional higher tierconvention business for Anaheim and to raise the profile of the Anaheim resort councilendorsed an economic incentive program to motivate the development of upscale hotelsSeveral concepts he explained were behind the 2002 hotel development incentive programThe first was to be able to land more convention business which was not only good for upscalehotels but benefitted all the hotels in Anaheim More conventions translated into increasedoccupancy and room revenues for existing hotels which in turn increased TOT revenue for thecity In addition he pointed out conventioneers staying in upscale hotels had more disposableincome and were more likely to spend money in Anaheim ultimately resulting in greater successfor local businesses and generation of sale tax revenue for the city

Under the 2002 hotel development incentive program Mr Woodhead stated Anaheim offeredassistance in an amount not to exceed 50 percent of project generated TOT Unfortunately heremarked no upscale hotels were developed under that program or through various assistanceagreements crafted outside the original parameters of that program over the course of the lastdecade however during this period he noted there were incentives offered by competingcities The Miramar Hotel in Santa Barbara County would receive 70 percent of TOT over a 15year period the Port Lawrence Hotel in Palm Springs would gain 75 percent of TOT over 20years the Wilshire Grand Hotel would get 100 percent for 25 years and the CourtyardResidence Inn for LA Live would receive 50 percent of sales property business and TOT taxesfor 25 years while LA Live downtown hotel would receive 246 million in TOT over 25 yearsplus a 5 million grant and 4 million in permit fee rebates He noted that public assistance insouthern California currently ranged from 148 to 335 percent of total development cost

Because it had been the policy for Anaheim to attract upscale hotels for over a decade andsince the 50 percent incentive yielded limited success with other competing cities gaining


success using more robust incentive plans Mr Woodhead commented staff then entered intonegotiations with a developer proposing to develop two fourstar quality hotel towers on theGardenWalk site The goal was for a balanced incentive proposal that would put the developerin a position to build the needed fourstar hotels while delivering the best financial benefit toAnaheim In January 2012 he noted council approved an economic assistance agreementwith GardenWalk Hotel I LLC which provided assistance from the city to the developer equal to80 percent of the gross TOT generated by the project over 15 years That assistance wasestimated to equal 158 million gross or 75 million in net present value dollars and providedfor a two phased construction with the first phase beginning within two years Mr Woodheadadded since time constraints prevented an effective evaluation of the economic feasibility of theproject staff did not endorse that agreement and subsequent court action invalidated it

Mr Woodhead reported the developer had now returned to staff with a revised proposal for thecitys consideration and staff had four months to negotiate and evaluate its financial aspectswhich would provide for the development of up to 866 hotel rooms of a fourstar caliber in twophases Project development costs were estimated to be 283 million and the agreementsprovided for city assistance in an amount equal to 70 percent of the TOT for the development ofthe convention hotel of not less than 466 rooms and a resort hotel of not less than 350 rooms

He pointed out city assistance would end on the earlier date of 20 years from completion ofconstruction or the receipt of TOT assistance up to a not to exceed amount of 158 milliongross adding that the net present value of that maximum assistance was 466 million That466 million he stated reflected 16 percent of development costs which compared favorablywith southern California competitors In addition he remarked there were no upfrontexpenditures required from the city and there was no risk to the citys general fund as provisionof the assistance was contingent upon completion of construction of the hotels andcommencement of operation and the generation of TOT from the hotels

He further explained there had also been extensive analysis of the gap between the cost ofdeveloping and operating the project and what costs the project could finance and viablysupport With current development costs of 283 million the feasibility gap for the project was631 million net present value and it was that cap that the city assistance of 466 million innet present value dollars was intended to partially fill While the city assistance offered topartially offset a cap in financing current development costs it was also important to emphasizethe development operating risks were borne by the developer since city assistance was not dueto the developer until the applicable hotel was constructed and operated as required MrWoodhead indicated construction of the convention hotel was required no later than May 262015 and was to be completed within 30 months with the maximum city assistance to befunded for that hotel at approximately 811 million Construction of the resort hotel must beginno later than November 26 2019 to be completed within 30 months with the maximum cityassistance for that hotel to be about 769 million dollars Based on the developerspro formaand hotel economic analysis and the assumptions which had been validated by the Citysindependent real estate economist Mr Woodhead stated staff determined that an economicfeasibility gap existed given the current financing marketplace and to the extent council desiredto maximize the probability of opening successful high end resort amenities in the near andintermediate term and generate new general fund revenues sooner rather than later staffrecommended approval of the proposed agreements as well as accompanying environmentaldocumentation

Mr Woodhead then compared what could be developed on the GardenWalk hotel sites withoutcity assistance versus the proposed tax incentive In the current economic environment he


remarked it was possible threestar quality hotels could be built without public assistancehowever the development of such hotels without assistance would most likely be Type 4 woodframe construction effectively limiting the number of rooms that could be developed on anygiven site As that limitation related to GardenWalk he stated the two hotel sites couldprobably accommodate development of no more than 250 rooms on each site in contrast to theapproximately 866 that were currently proposed under the incentive agreement Comparing thecitys 100 percent share of TOT revenues for such a threestar development with the citys 30percent share of TOT revenue from the proposed fourstar hotels during the term of theproposed agreement revealed that revenues from the proposed fourstar hotels exceeded thethreestar hotels by 124 million

With the development of GardenWalk hotels Mr Woodhead further explained it wasanticipated that a large number of guests who looked for upscale accommodations in OrangeCountysbeach cities or who were unable to secure accommodations at the upscale DisneyHotels would patronize the new facilities given GardenWalksunique positioning and its highquality facilities and amenities And in addition to the TOT generated directly by the two hotelsMr Woodhead stated the city was expected to receive additional TOT from other hotelsbecause of the new conventions that these fourstar quality hotels would attract and theincrease in value they would have on the Anaheim destination This incremental increase inTOT he pointed out was considered net new and because it was not generated by theGardenWalk hotels it was not subject to the agreements The city also had an existingobligation to pay out amounts reflective of and equal to 20 percent of TOT to the debt servicerelated to the 1997 Anaheim resort expansion and the bonds issued in connection with themThe TOT generated by the convention center hotel the resort hotel and the net new TOTwould result in additional amounts being paid towards the existing debt service All amounts ofTOT generated above and beyond the assisted amounts and the resort debt service obligationwould be available for discretionary use in the general fund to pay for core services such aspolice and fire protection library and recreational services as well as enhance the quality of lifeof the residents businesses and visitors of the city The entire project he remarked wasexpected to generate approximately 4845million in new TOT to the city over the term of theagreements and of that total 2556million or more than half was expected to be retained bythe general fund to be used to provide core services New sales tax and property taxes wouldalso be generated to the city as municipalities received one percent share of all taxable retailsales generated primarily by food and beverage sales Regarding property taxes the city wouldreceive its portion for the one percent levy on assessed value In addition to the citys portion oftax revenue directly attributable to the GardenWalk hotels Mr Woodhead pointed out thedeveloper would also directly contribute to ATID established in 2010 by a vote of propertyowners to selfassess in the amount of two percent of room sales to provide funding for themarketing and promotional services provided by the AnaheimOC Visitor and ConventionBureau and transportation needs

Summarizing this data he stated the agreements were estimated to generate a net 2783million in discretionary revenues available to the general fund to provide core services to all Inaddition 709 million of project tax revenues could be of assistance to pay resort debt servicewhich could potentially pay off existing debt earlier by approximately 25 years He added thispotential early retirement of debt would relieve the general fund of more than 60 million ofannual debt service in the last 25 years Lastly 646 million in additional ATID assessmentswould be available to reinvest in the Anaheim Resort to pay for marketing and promotionalactivities as well as transportation needs As noted in the developers hotel economic analysisand validated by the citys independent real estate economist Mr Woodhead reported hotel


development of a luxury caliber at the GardenWalk site would bring a number of positivebenefits to both the city of Anaheim and the greater hospitality community In addition toincreasing tax revenues enhancing existing hotel supply and attracting highly ratedconventions to the city the hotel development would also create and support approximately1300 permanent local jobs annually as well as 3000 temporary jobs related to constructionMoreover he remarked the proposed GardenWalk hotels would enhance and support retaildining and entertainment outlets at the repositioned GardenWalk Center as originally envisionedand the proposed agreement posed no risk to the general fund while serving as an importantstep in revitalizing the citys tourist infrastructure and enhancing a destination that served as theprimary economic engine of Anaheim and benefited the city as a whole

Mayor Tait remarked it appeared the potential 250 million in TOT was earned through theyears 2016 to 2042 with the vast majority of those funds occurring toward the end of thattimeline In 2031 he stated the developer should get back about 80 for the first hotel with thecity retaining 12 million Mr Jim Rabe Keyser Marston Associates an economic consultantfor the city concurred stating by year 17 of the assistance period the maximum assistancewas basically reached and in the other years of the agreement years 18 19 and 20 the cityshould be receiving 100 percent of the TOT earned Mayor Tait asked how the breakdown ofTOT was rebated to the developer with Mr Rabe indicating the developer would receive 81million for the first hotel and about 75 million for the second hotel a smaller amount becausethe room rates were less but the proportions would be similar and close to 158 million in totalwith the city receiving about 20 million in TOT revenues

Mayor Tait inquired if the agreement outlined specific requirements for the developer to buildfourstar hotels with Mr Rabe replying there were several measures employed to insure qualityhotel construction The first reflected a minimum amount needed to spend on each hotel in hardconstruction dollars for furniture fixtures and equipment FFE a per room minimum that mustbe expended to build the type of quality needed for a fourstar hotel along with a series of hoteloperating standards that must be met those standards taken from various raters of hotelquality Mr Rabe affirmed there was no requirement for a rating agency to confirm the twohotels were fourstar facilities however if the hotels were only earning at a threestar level theargument could be made they were not meeting standards and would not qualify for assistanceMayor Tait expressed his concern that there was no redress in the agreement should theproposed hotels not meet fourstar standards and spoke about the luxury hotel requirement listMr Rabe indicated the list included the following a wakeup call must be delivered within twominutes of the requested time the final bill must be offered to guests for review prior to finalreceipt television must feature premium cable or satellite pay per view movies and there mustbe meeting space in both hotels These requirements he added were not staff generated buthad been developed from AAA and other raters Mayor Tait also inquired whether hotel planshad been submitted and Mr Woodhead responded that schematics had been provided as theywere required under the entitlements and the developer would not be able to deviate from themmuch without deviating from the entitlements and the agreement He then inquired how theland value of 30 million for both hotels was determined asking Mr Rabe if it was worth thatamount Mr Rabe responded that without performing a detailed analysis with comparable landvalues his best guess would place the property at 18 to 22 million Mayor Tait asked why themarket value had not been used rather than a cost value as the developer would be paid backhis cost as opposed to value Mr Rabe indicated the developersacquisition and carrying coststo date was used a choice made during negotiations He added that the developer would stillget the full assistance amount if 22 million was used instead of 30 million as the propertyvalue since there would still be a gap that was not being completely filled


Mayor Tait questioned how the eight percent discount rate was determined with Mr Rabeindicating to compute the gap the return requirements for hotel projects was an 11 percentreturn on costs and over and above that the current lending environment for hotel financingwas more difficult and a lender would only give 50 percent of cost or value with the rest comingfrom equity He added a combination of those reflected the difference between an economicgap and a financing gap for the project as typically lending for hotels might be 65 to 75 percentof value in a normal climate rather than the current 50 percent which was why the gap wassignificant Mayor Tait commented that in this agreement the developer put up the land hadhis cost of the land valued at 30 million and any investor would get a 20 percent return on thatinvestment year in and year out with Mr Rabe responding that 20 percent was required for ahotel investor to underwrite the project

Mayor Tait asked what the average room rate would be to yield anticipated TOT revenues forthe hotels with Mr Rabe responding the Convention Center hotel would run 250 a night andthe resort hotel would command 260 per night Bruce Baltin PKF Consulting remarked thoseroom rates reflected the average daily room rate over the course of the year Mayor Taitindicated he spoke to the Mariott and Hilton asking for room rates and whether they were fourstar establishments The Mariott replied in the affirmative with a room rate of 129 and theHilton indicated they were a 35 star hotel with Mayor Tait pointing out this should be a goodmeasurement of the proposed hotels room rates Mr Baltin commented that the Mariott maybe considered a fourstar but it and the Hilton were older hotels that catered primarily to theconvention business and only secondarily to leisure businesses and their rates were lowerbecause they had more rooms to fill He added after looking at those rates it was determinedthere was a reasonable differential about 47 percent consistent with other markets in SanDiego and Los Angeles

Council Member Kring asked if the room rates were predicated on 70 to 80 percent occupancywith Mr Baltin responding it was based on about 76 percent average occupancy rate Sheresponded to comments of an earlier speaker emphasizing this agreement was not the sameand had more transient occupancy taxes coming to the general fund and therefore she was infavor of the agreement as compared to the agreement last year Discussing the Hilton saleshe indicated that last year when the development agreement was approved a financierbought the Hilton Hotel for 200 million and the only entity to benefit was the previous Hiltonowners The city received no new transient occupancy taxes from that deal

Council Member Murray stated that since 1999 council spent several years doing the sametype of economic research that was done to date and came up with a 50 percent transientoccupancy tax share plus sales tax as an incentive for developers a plan that wasunanimously approved and included the votes of Council Member Kring and Mayor Tait whowere members of the city council at that time

Council Member Kring concurred and offered background from her perspective In 1999 sheexplained on a unanimous vote by council GardenWalk was approved and was to consist ofthree hotels highend dining and retail public art displays and the possibility of a publicaquarium In addition 400 time share units were also planned above the hotel parkingstructure Included in the footprint of that project she remarked was the Anaheim Plaza Resortwhich would have given the mall a frontage on Harbor Boulevard across from Disneyland After911 the economy suffered a period of uncertainty that halted much building and the developerof this project did not have the funds to buy the hotel and the main entrance of the mall ended


up on Katella She noted there were a few starts and stops because of the economy and themall opened in June 2008 with about 65 percent occupancy Six restaurants had all openedbetween November 2007 and April 2008 including Council Member Krings business and theoriginal deal approved by council gave the developer 50 percent of the sales tax to help with theparking structure that was to be available for overflow parking from the convention center Theywere also to receive 50 percent of the TOT and 20 percent of sales tax from the hotelsGradually she remarked the food court restaurants closed along with her wine bar businessand various retailers With the current plan for the proposed GardenWalk hotels she indicatedthere would be a 70 percent rebate of TOT with a two year window period before startingconstruction Unlike the former agreement of 1999 there would be no sales tax rebates tohoteliers and unless the hotels were built and successful no funds would ever be returned to

the developer Property tax would continue to be paid the developer would receive his rebateand 20 percent of the TOT would be used to pay off the Anaheim Resort Bonds with 10 percentgoing into the general fund As the hotels were more successful she remarked the revenuefrom these percentages would also increase She added the subsidy was not openended butwas for a time certain and was necessary for the developer to be able to obtain the constructionloan She emphasized the city had a history of helping with economic assistance and in theearly 2000swhen hotel brands were going to Garden Grove because they gave away free landTOT and sales tax no revenues were coming to Anaheim and at that time it was determined a50 percent rebate on TOT be offered for any new hotel construction She noted Mayor Tait andshe were members of the council at that time as they were in 1999 and the vote wasunanimous in support of this plan She added only one hotel took advantage of this theDoubletree Suites which had proven to be a successful venture She believed the twoGardenWalk hotels would help visitors and conventioneers stay in Anaheim attract larger andhigher end conventions and grow revenues for the future

Council Member Murray emphasized with the substantial amount of research detail and twoindependent economic studies that had been provided she believed the data wasoverwhelmingly in favor of the proposed agreement with extraordinary numbers of new netrevenue to the City of Anaheim over the life of this development agreement and zero impact toservices If the hotels were not built to the construction quality of fourstar service hotels sheadded the developer would not receive the tax benefit And with California having gonethrough one of the worst recessions with high unemployment rates in Anaheim and the statefinding ways to divert every other source of revenue from local government she stated this wasan option that reduced the tax burden on residents and businesses and would generatehundreds of millions of dollars of new revenue over the term of the agreement She added thathotels were multi generational and when the tax increment benefit the city would receive wascalculated it was in the hundreds of millions of dollars and would come directly to the city andcould not be diverted by the state This decision for her she explained was made based on theinformation provided and the need to insure the city was financially safe in the long term andshe would support the agreements

Mayor Tait announced he would not support this project citing the risk to the future general fundthrough the loss of 70 percent TOT revenues earned by these hotels Those feasibility gappayments would commence 90 days after the initial operation year and would be made monthlyfrom that point on until the 158 million cap was reached He believed if this was a viableproject financiers would be looking to invest He added currently there were seven hotelsunder construction or in the planning stages in the City of Anaheim with over 1200 rooms allbeing constructed without tax incentives which meant this site would not remain vacant shouldthe GardenWalk hotels not be built Additionally he believed this process was the opposite of a


free market and good government and the development agreement contained no requirementthat the hotels be rated as fourstar with no plans yet approved Mayor Tait pointed out withthreestar hotels 100 percent of the TOT would go to the city and offered no risk to the futureHe believed at the very least the citizens should vote on this project and made a motion to doso No second was offered and the motion failed

Council Member Murray asked staff to respond as to whether there was a potential risk to thefuture general fund John Woodhead replied that other cities provided assistance to thefinancing of a project and if there was some problem along the way financing could put amunicipality at risk This project would create a future revenue stream from transient occupancytax monies generated by the project and against that future revenue stream the developer wasable to get financing The financing he explained was done by private parties and should anyproblems arise the city would have no risk under this scenario since it would receive 100percent of the benefit for every new dollar generated Council Member Murray remarked thatGarden Grove built a number of new hotels over the last few years by offering incentives andwere getting that TOT revenue only because of the nearness to Anaheimsresort districtThose incentives included giving away free land offsetting permits and fees a TOT share andin the most recent agreement their voters approved revenue bonds that their residents were onthe hook for to fund those hotels and these actions had taken place she pointed out with noopposition from the residents Council Member Murray referred to Mayor Taits approval of adevelopment agreement in 1999 which included 50 percent TOT share and 50 percent sales taxshare pointing out the current agreement only addressed TOT

Mayor Tait concurred that he had voted for Point Anaheim in 1999 pointing out that what waseventually built in 2006 did not reflect that agreement He added there was also a sales taxagreement in 2006 in which the retail sales tax at Garden Walk Center was reinstituted Withregard to Garden Grove he stated those were redevelopment agreements and his engineeringfirm had worked for that city under contracts dealing with drainage and utility locations notfinancing Location was important in development he emphasized and Anaheim had locationjust as Laguna Beach and Newport Beach did

Mayor Pro Tern Eastman remarked one of the reasons the city was looking at incentives was tobe able to build a higher quality hotel and fill in what was missing in the resort district and asconfirmed by Mr Wood the monies received from the fourstar hotels receiving economicassistance would exceed the revenues from threestar hotels receiving no assistance andgenerating 100 percent of its TOT to the city She was supportive of this project because of theneed in Anaheimsmarket place to attract higherend conventions and ultimately more revenueShe was also supportive of a general policy in which the city would consider giving subsidies todevelopers willing to provide a higher level of product

Council Member Kring reported plans were being discussed on expanding the conventioncenter to book bigger and higherend conventions and these proposed luxury rooms wereneeded to house the conventioneers She also pointed out a special election to have the votersconsider this project would cost the taxpayers 200000 to 300000 adding that having citizensvote on proposed projects would put a halt to any new businesses coming to Anaheim becauseof the delay and uncertainty She added the city councils purpose was to make those harddecisions for the city and she would be supporting this projectCouncil Member Murray affirmed she would also support this project because of the marketdecisions presented to council that the project would grow the convention center and resortbased businesses a revenue stream that was unique to Anaheim home to the largest


convention center on the west coast The data was based on two independent economicstudies and Anaheimsprofessional staff that showed there was a net positive gain with thisproject and no future risk to the city She asked that staff bring back an ordinance for futurecouncil consideration that would offer these same terms available to anyone willing to build thistype of property in Anaheim Mr Houston recommended that request be offered during councilcommunications

Council Member Brandman commented he had met with the applicant the representatives thetrades and those who were in favor and against the project during the course of discussion anddeliberation on this project Based on the fact that a threestar hotel with 100 percent TOTremitted to the city would generate 111 million while a fourstar hotel with TOT assistancewould generate 235 million and the fact that the GardenWalk hotels would be required to havegood paying construction jobs as part of this package because of the public assistance givenhe would support this project He discussed the history of progressive decisions made inAnaheim that saw Disneyland Angel Stadium and the Convention Center followed by majorimprovements to those venues to leverage population boom even utilizing Anaheim Union HighSchool District bonding revenues He expressed confidence that by moving forward with thisproject Anaheim would insure its competitiveness with other cities and was critical to be able toreinvest in the neighborhoods

Mayor Tait inquired if the developer had talked to the applicant about a certain percentage ofAnaheim labor being hired Mr Woodhead responded staff asked the applicant to work closelywith labor to come to some type of understanding and that the agreement stated owner and citywish to encourage local hiring practices where possible in connection with the construction ofhotels Owner will notify that tax incentives are available for local hiring through the AnaheimEnterprise Zone

Council Member Murray moved to adopt RESOLUTION NO 2013069 OF THE CITY

COUNCIL OF THE CITY OF ANAHEIM approving the Fourth Addendum to the previouslyapproved Pointe Anaheim Initial StudyMitigated Negative Declaration for the AnaheimGardenWalk Project and determining that said addendum together with other previouslyapproved environmental documentation serves as the appropriate environmentaldocumentation for the proposed Economic Assistance Agreements between the City ofAnaheim and GardenWalk Hotel I LLC for the GardenWalk Hotels Project seconded by MayorPro Tern Eastman Roll Call Vote Ayes 4 Mayor Pro Tern Eastman and Council MembersBrandman Kring and Murray Noes 1 Mayor Tait Motion Carried

Council Member Murray moved to adopt RESOLUTION NO 2013070 OF THE CITY

COUNCIL OF THE CITY OF ANAHEIM approving two Economic Assistance Agreementsbetween the City of Anaheim and GardenWalk Hotel I LLC for the GardenWalk Hotels Projectand authorizing the City Manager to execute and administer the Agreements seconded byMayor Pro Tern Eastman Roll Call Vote Ayes 4 Mayor Pro Tern Eastman and CouncilMembers Brandman Kring and Murray Noes 1 Mayor Tait Motion Carried

24 Approve conducting a review of the Citys Charter direct staff to commence a CharterM100 review process and direct staff to prepare a resolution for City Council consideration

that outlines the creation of a citizens advisory committee referred to as the Charter


Review Committee scope of work of such committee including potential areas ofamendment to the Charter for committee reviewrecommendation and define atimeframe for delivery of a final report with the Committeesrecommendations andauthorize staff to receive applications for the selection and appointment of a CharterReview Committee

Paul Emery Deputy City Manager remarked that Council Member Brandman had requestedstaff look into the reestablishment of a charter review committee on December 18 2012 Sincethat time he stated staff reviewed how Anaheim conducted charter reviews in the past andhow nearby cities addressed that subject He indicated larger cities similar to Anaheimreviewed city charters every 10 years created citizen advisory committees made up ofcommunity members who were committed and knowledgeable about how government operatedwith some retaining consultant services to assist with outreach efforts

Since it had been more than 13 years since Anaheim considered changes to the charter staffwas seeking approval to conduct a fifth charter review establish a seven member advisorycommittee and allow staff to begin accepting applications from residents interested inparticipating in committee and take the necessary steps to pursue a charter review process Headded staff was prepared to bring back a resolution on the May 28 agenda outlining themakeup of the committee with five direct appointments and two at large appointments selectedby the council and to further define the scope of the work of the committee to provide a finalreport that would consist of possible charter review amendments for councils review andconsideration

Council Member Brandman appreciated staffs efforts on this issue and recommended a policyfor a charter review be conducted every ten years Mr Emery indicated proposed time framesfor this task would be laid out in the resolution to allow for a June election for any revisions forthe charter with an anticipated ten community meetings occurring in the fall in anticipation ofhaving a charter election in June Council Member Brandman remarked when the CaliforniaIndependent Redistricting Commission was adopted by voters those commissioners wereappointed by the state auditor and the balance were appointed by the commissioners which hefelt offered an independent commission makeup suggesting a similar structure be consideredfor Anaheim

Council Member Kring approved Item No 24 seconded by Council Member Murray Roll CallVote Ayes 5 Mayor Tait and Council Members Brandman Eastman Kring and MurrayNoes 0 Motion Carried

PUBLIC HEARING

25 City Council discussion and action on

C350 AMENDMENT NO 4 TO SECOND AMENDED AND RESTATED DEVELOPMENT

AGREEMENT NO 9901 DEV201300025AGR146324 OWNER GardenWalk Hotel I LLC 333 City Boulevard West Suite 1900 Orange Ca

92868

APPLICANTAGENT Ajesh Patel GardenWalk Hotel I LLC 333 City Boulevard WestSuite 1900 Orange Ca 92868LOCATION 1775 South Clementine Street and 300 West Disney Way


Page 25 of 27

Amendment No 4 to the Second Amended and Restated Development Agreement No9901 as it pertains to the construction of two hotels that are approved as part of theAnaheim GardenWalk project The proposed Amendment would extend the requiredconstruction start date by two years and allow phased constructionEnvironmental Determination The previouslyapproved Disneyland Resort SpecificPlan Environmental Impact Report No 311 the 1999 Pointe Anaheim Initial Study andMitigated Negative Declaration ISMND the First Addendum to the ISMND the2006 Second Addendum to the ISMND the Third Addendum to the ISMND and aproposed Fourth Addendum to the ISMND dated March 27 2013ACTION TAKEN BY THE PLANNING COMMISSION

Recommended City Council approval of Amendment No 4 to the Second Amendedand Restated Development Agreement No 9901 Dev201300025Vote 60 Chair Pro Tempore Persaud and Commissioners Agarwal BostwickFaessel Lieberman Persaud and Seymour voted yes Chair Ramirez was absentPlanning Commission meeting of April 8 2013


THE CITY OF ANAHEIM approving the Fourth Addendum to the previouslyapprovedPointe Anaheim Initial StudyMitigated Negative Declaration for the AnaheimGardenWalk project and determining that said addendum together with otherpreviouslyapproved environmental documentation serves as the appropriateenvironmental documentation for the proposed Amendment No 4 to the SecondAmended and Restated Development Agreement No 9901 between the City ofAnaheim and GardenWalk Hotel I LLC for the GardenWalk Hotels Project

ORDINANCE NO 6277 INTRODUCTION AN ORDINANCE OF THE CITYCOUNCIL OF THE CITY OF ANAHEIM approving Amendment No 4 to SecondAmended and Restated Development Agreement No 9901 by and between the City ofAnaheim and GardenWalk Hotel I LLC making certain findings related thereto andauthorizing the Mayor to execute said agreement for and on behalf of the City

Sheri Vander Dussen Planning Director reported this item was a request to amend thedevelopment agreement associated with the construction of two hotels which were the subjectof the Economic Assistance Agreements discussed earlier this evening The proposedamendment she explained would change the required timing of construction to be consistentwith the Economic Assistance Agreements approved during this meeting In addition thePlanning Commission had reviewed this request on April 30 and unanimously recommendedCity Council approval

Mayor Pro Tern Eastman opened the public hearing remarking there was a five minute timelimit for any member of the public desiring to speak on this legislative item

William Fitzgerald Anaheim Home stated while he had no objections to this item there was nota legal quorum here to vote on this item citing and outlining in his opinion conflicts of interestsby members of council

With no other public comments offered Mayor Tait closed the public hearing

Council Member Murray responding to Mr Fitzgeraldscomments stated they were completelyfalse and she had no conflict of interest on this matter and would be voting on the item Mayor


Pro Tem Eastman also remarked she had no criminal conflict of interest and would be voting aswell In addition Council Member Brandman announced he had no criminal conflict of interestas alleged by Mr Fitzgerald and was comfortable voting on this project

Mayor Tait reaffirmed he would be voting against the amendment as he believed the argumentsfor the incentive to create jobs now was lost as the developer would not be building the secondhotel into late 2019 With this incentive offered he believed construction should start as soon aspossible rather than delayed

Mayor Pro Tem Eastman moved to adopt RESOLUTION NO 2013071 OF THE CITY

COUNCIL OF THE CITY OF ANAHEIM approving the Fourth Addendum to the previouslyapproved Pointe Anaheim Initial StudyMitigated Negative Declaration for the AnaheimGardenWalk project and determining that said addendum together with other previouslyapproved environmental documentation serves as the appropriate environmentaldocumentation for the proposed Amendment No 4 to the Second Amended and RestatedDevelopment Agreement No 9901 between the City of Anaheim and GardenWalk Hotel I LLCfor the GardenWalk Hotels Project seconded by Council Member Kring Roll Call Vote Ayes4 Mayor Pro Tem Eastman and Council Members Brandman Kring and Murray Noes 1

Mayor Tait Motion Carried

Mayor Pro Tem Eastman then moved to introduce ORDINANCE NO 6277 AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Amendment No 4 to SecondAmended and Restated Development Agreement No 9901 by and between the City ofAnaheim and GardenWalk Hotel I LLC making certain findings related thereto and authorizingthe Mayor to execute said agreement for and on behalf of the City seconded by CouncilMember Kring Roll Call Vote Ayes 4 Mayor Pro Tem Eastman and Council MembersBrandman Kring and Murray Noes 1 Mayor Tait Motion Carried

REPORT ON CLOSED SESSION ITEMS

Michael Houston Interim City Attorney reported on Item No 1 stating by a vote of 50 with allcouncil members voting yes direction to initiate litigation was given on seven matters Theaction defendants and other particulars shall once formally commenced be disclosed to anyperson upon inquiry unless doing so would jeopardize the citys ability to serve process on anydefendant

COUNCIL COMMUNICATIONS

Council Member Brandman addressed his attendance at the following events Cinco de Mayobreakfast dedication of the Anaheim Water Sustainability Campus on May 7 the WANDbarbeque on May 11 at Twila Reid Park and the Fire Services Day festivities at the NorthMetTraining Center He announced the upcoming 7th Annual Health Fair at Magnolia Hospital andthanked Police Chief John Welter for his service to the city highlighting his accomplishments

Council Member Murray also spoke to Chief John Welters accomplishments during his tenurewith the city In addition she reported on the recent California Supreme Court ruling in favor ofmunicipalitysrights to ban marijuana dispensaries within city borders remarking that todayAnaheim had less than 10 dispensaries versus 120 that were operating in 2011 She thankedthe grass roots community efforts for taking a hard stance against those establishmentsCouncil Member Murray also announced the upcoming ChildrensArt Festival on May 18 at


Center Street Promenade a free event for family and the Veterans Memorial Dedication alsoheld on May 18 She as well thanked the Citizen Advisory Committee for Elections and CivicEngagement for their work and dedication and addressed the proposed GardenWalk projectand the commitment of developer BillOConnell

Council Member Kring requested an ordinance be prepared to address economic developmentprograms for all hotels in Anaheim and that staff look at opportunities to create a pocket parkfor children at a specific location she identified on Haster Street She then announced theupcoming Greek Festival and spoke of her attendance at the Family Justice Center gala

Mayor Pro Tern Eastman reported on her travel plans to Washington DC representing Anaheimas a member of the Orange County Transportation Authority board She thanked the Cultural

and Heritage Commission for another successful Art Crawl and thanked staff for distributingmeeting decorum information prior to the start of the meeting She also announced that the useof speaker cards would be implemented at the next council meeting and an informationalbrochure related to council sessions would be available for interested persons

Mayor Tait appreciated Mayor Pro Tern Eastmansimplementation of speaker cards andexpressed his support for discussion of a proposed ordinance regarding hotel economicdevelopment He reported on his participation on the following events UBM Cannon andBusiness4Better Conference American Cancer SocietysRelay for Life at Canyon High Schoolthe Cinco De Mayo festival the American National Day of Prayer at St Justin Martyr and the 5KTaylor Wish fundraiser in the Canyon area Mayor Tait also announced the Veterans DayMemorial on Memorial Weekend and the start of a new tradition of raising a flag in honor ofdeparted veterans

Adjournment AT 1101 PM with no other business to conduct Mayor Tait adjourned theMay 14 2013 city council meeting

Re tfully submitted

dV14fDLinda N Andal CMCCity Clerk


Exhibit “B”

HOME ABOUT SOAR NEWS MEDIA SOAR PAC CONTACT

SOAR is a broad coalition of local business owners, community leadersand Anaheim residents. Its mission is to educate area residents aboutthe Resort District and the critical services it funds such as police, fire,and paramedics.

SOAR has an active and committed Advisory Board comprised of formerelected officials, homeowner association members and business leadersrepresenting all regions of Anaheim.

Through community events, the coalition seeks to educate and engageresidents in future of the Resort District.

SOAR also has a political action committee, SOAR PAC, to supportcandidates that align with the business- and visitor-friendly district.

SOAR Advisory Committee Members

Todd Ament, Co-ChairAnaheim Chamber Of Commerce and Member,Anaheim Planning Commission

Gail Eastman, Co-ChairAnaheim City Councilmember

Larry Slagle, Co-ChairYellow Cab of Greater Orange County

Mitchell CaldwellPresident, Anaheim Neighborhood Association

Sandy DayAnaheim Hills Neighborhood Leader

Craig FarrowRetired Anaheim Police Sergeant

Frank & Sally FeldhausWest Anaheim Neighborhood Leaders

Bill GundersonAnaheim Marriott

Jimmie D. KennedyFormer Chief, Anaheim Police Department

Paul KottPaul Kott Realtors

Carrie NocellaDisneyland Resort

Gloria Ma’aeRancho Anaheim Neighborhood Leader

Andrea ManesThe Fun Starts Here!

Kris MurrayAnaheim City Councilmember

Frances NoteboomSouth Anaheim Neighborhood Leader

Bill O’ConnellStovall Hotels of Anaheim

Stan PawlowskiPacific Western Bank

Pat PepperChairman, Anaheim Budget AdvisoryCommittee

Shaun Robinson

Overview History The Resort District

About SOAR | Support Our Anaheim Resort Area http://www.soaranaheim.com/index.php?page=about-soar

1 of 2

Sign up to receive updates from SOAR

First Last

Name

Email

SOAR Praises Anaheim City Councilfor Restoring City Services andExpanding Public Safety

SOAR applauds the Anaheim City Council, who onTuesday unanimously approved a balanced budgetof $1.55 billion. Their actions reaffirm theircommitment to neighborhood improvements,public safety restoration and infrastructureinvestment.

READ MORE

SOAR is on Facebook and FlickrStaying connected has never been easier.

Anaheim Hilton

Reed RoyaltyPresident, Orange County TaxpayersAssociation

About SOAR | Support Our Anaheim Resort Area http://www.soaranaheim.com/index.php?page=about-soar

2 of 2


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COMMITTEE NAME/I.D. NUMBER

Lucille Kring for Council ID# 1288900

NAME OF TREASURER

Ronald Kring

CONTROLLED COMMITTEE?

YES

COMMITTEE ADDRESS STREET ADDRESS (NO P.O. BOX)

CITY STATE ZIP CODE AREA CODE/PHONE

Anaheim

CA

92802

(714) 530-2366

__________________________________________________________________________________________________________________________________________________

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01/01/2013

06/30/2013


1346936

21,972.00

21,972.00

-37,500.00

37,500.00

-15,528.00

59,472.00

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01/01/2013

06/30/2013


1346936

01/03/2013

Abdulmageed Abdulrahman

Anaheim, CA 92804

XEngineer

State of California

-150.00

22.00G2012

$172.00

03/02/2013

Abdulmageed Abdulrahman

Anaheim, CA 92804

XEngineer

State of California

172.00

22.00G2012

$172.00

02/07/2013

ACCPAC (ID# 900659)

Anaheim, CA 92805

X

1,000.00

1,000.00G2012

$1,500.00

02/07/2013

Terry Adams

Newport Coast, CA 92657

XMetals Recycler

SA Recycling

500.00

500.00G2012

$500.00

02/07/2013

Anaheim Arena Management, LLC

Anaheim, CA 92806

X

1,800.00

1,800.00G2012

$1,800.00

3,322.00

21,972.00

0.00

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620

01/01/2013

06/30/2013


1346936

05/29/2013

Anaheim Chamber of Commerce

Anaheim, CA 92805

X

500.00

500.00

G2012

$500.00

05/29/2013

Anaheim Park Place Inn LTD

Anaheim, CA 92802

X

1,000.00

1,000.00

G2012

$1,500.00

01/14/2013

Arcadis

Highlands Ranch, CO 80129

X

250.00

250.00

G2012

$250.00

02/13/2013

ASC-Anaheim, LLC

Anaheim, CA 92805

X

250.00

250.00

G2012

$250.00

05/29/2013

Barrios and Associates LLC

Lake Forest, CA 92630

X

250.00

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$250.00

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720

01/01/2013

06/30/2013


1346936

02/13/2013

Stephen Batcheller

Newport Beach, CA 92660

XPartner

Panattoni

1,000.00

1,000.00

G2012

$1,000.00

05/29/2013

Blackwood, LLC


X

500.00

500.00

G2012

$500.00

02/07/2013

Carol Bostwick

Anaheim, CA 92807

XRetired

Retired

500.00

500.00

G2012

$500.00

03/16/2013

Brookfield Los Angeles Builders Inc.

Costa Mesa, CA 92626

X

250.00

500.00

G2012

$1,300.00

06/29/2013

Brookfield Los Angeles Builders Inc.


X

250.00

500.00

G2012

$1,300.00

2,500.00

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all C

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mitt

ee

IND

CO

MO

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C

IND

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IND

CO

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IND

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66/A

SK

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-377

2)

ww

w.n

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le.c

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820

01/01/2013

06/30/2013


1346936

05/29/2013

Tony Bruno

Yorba Linda, CA 92886

XRetired

Retired

250.00

250.00

G2012

$400.00

02/18/2013

Building Industry Assoc. of So. Calif. ID#

741733

Los Angeles, CA 90010

X

800.00

800.00

G2012

$1,800.00

05/29/2013

Cabco Yellow, Inc.

Santa Ana, CA 92707

X

250.00

250.00

G2012

$1,250.00

05/29/2013

Center of the Universe LLC


X

500.00

500.00

G2012

$500.00

05/29/2013

Sandra Day

Anaheim, CA 92808

XNew Business Development

Marketing & Sales

Plastics Paint Production

100.00

100.00

G2012

$100.00

1,900.00

Pag

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f

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ink.

Am

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may

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FILE

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920

01/01/2013

06/30/2013


1346936

02/07/2013

Development Advisors LLC

Anaheim, CA 92806

X

250.00

500.00

G2012

$1,050.00

05/29/2013

Development Advisors LLC

Anaheim, CA 92806

X

250.00

500.00

G2012

$1,050.00

05/29/2013

Faubel Public Affairs

Lake Forest, CA 92630

X

250.00

250.00

G2012

$250.00

01/11/2013

FSB Core Strategies

Sacramento, CA 95814

X

500.00

500.00

G2012

$500.00

02/09/2013

Ryan Gatchalian

Laguna Niguel, CA 92677

XDivision President

Lennar

100.00

100.00

G2012

$100.00

1,350.00

Pag

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f

Typ

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ink.

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ww

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10

20

01/01/2013

06/30/2013


1346936

05/29/2013

Griffin Structures, Inc.

Laguna Beach, CA 92651

X

500.00

500.00

G2012

$750.00

04/06/2013

Margaret Hoien

Anaheim, CA 92807

XSr. Policy Aide

City of Anaheim

250.00

250.00

G2012

$725.00

03/16/2013

Donna Kelly

Fountain Valley, CA 92708

XCommunity Services

Lennar

200.00

200.00

G2012

$200.00

03/04/2013

Joel Landau

Santa Monica, CA 90403

XReal Estate

Dominion Property LLC

-200.00

-200.00

G2012

$800.00

02/13/2013

John Lewis

Orange, CA 92867

XPresident

Lewis Consulting Group

250.00

250.00

G2012

$250.00

1,000.00

Pag

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f

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ink.

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ww

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11

20

01/01/2013

06/30/2013


1346936

03/22/2013

Steven Lodge

Anaheim, CA 92808

XVice President

Hill International

250.00

250.00

G2012

$250.00

02/18/2013

Louis Metro, Inc.

Anaheim, CA 92802

X

250.00

250.00

G2012

$1,000.00

02/13/2013

Patrick Mahoney

Anaheim, CA 92806-1221

XWest Coast Arborists

President

500.00

500.00

G2012

$750.00

05/29/2013

NDC Realty Resources, INc.


X

500.00

500.00

G2012

$500.00

02/07/2013

Orangewood LLC

Anaheim, CA 92802

X

250.00

250.00

G2012

$500.00

1,750.00

Pag

e o

f

Typ

e o

r p

rin

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ink.

Am

ou

nts

may

be

rou

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wh

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do

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NA

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FILE

R

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(C

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d

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UM

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SC

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ww

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12

20

01/01/2013

06/30/2013


1346936

02/07/2013

Pacific West Property Services, Inc.

Anaheim, CA 92805

X

350.00

350.00

G2012

$350.00

06/20/2013

Paul Kott Realtors, Inc.

Anaheim, CA 92805

X

500.00

500.00

G2012

$1,000.00

06/29/2013

Prime Healthcare Services, Inc.

Ontario, CA 91761

X

500.00

500.00

G2012

$1,000.00

02/07/2013

Quick Service Towing, Inc.

Anaheim, CA 92801

X

1,000.00

1,000.00

G2012

$1,000.00

05/29/2013

John Ramirez

Ladera Ranch, CA 92694

XAttorney

Rutan and Tucker

500.00

500.00

G2012

$500.00

2,850.00

Pag

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f

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r p

rin

t in

ink.

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ou

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ww

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13

20

01/01/2013

06/30/2013


1346936

05/29/2013

Mike Rubin

Santa Ana, CA 92705

XAttorney

Rutan and Tucker

250.00

250.00

G2012

$250.00

02/13/2013

Save Our Anaheim Resort PAC (SOAR PAC) ID#

1323921


X

500.00

1,000.00

G2012

$1,500.00

05/25/2013

Save Our Anaheim Resort PAC (SOAR PAC) ID#

1323921


X

500.00

1,000.00

G2012

$1,500.00

02/07/2013

Ben Seybold

Corona Del Mar, CA 92625

XVice President

CB Richard Ellis

250.00

250.00

G2012

$250.00

02/07/2013

Larry Slagle

Norco, CA 92860

XPresident

Yellow Cab of Greater

Orange County

250.00

500.00

G2012

$1,000.00

1,750.00

Pag

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f

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Am

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ww

w.n

etfi

le.c

om

14

20

01/01/2013

06/30/2013


1346936

05/29/2013

Larry Slagle

Norco, CA 92860

XPresident

Yellow Cab of Greater

Orange County

250.00

500.00

G2012

$1,000.00

06/12/2013

South Coast Apartment Assoc.California

Apartment Assoc. ID# 745208


X

250.00

250.00

G2012

$250.00

02/07/2013

William Steiner

Orange, CA 92867

XConsultant

Self - William Steiner

250.00

250.00

G2012

$400.00

02/18/2013

Stovall's Inn LLC

Anaheim, CA 92802

X

300.00

300.00

G2012

$1,800.00

06/12/2013

SunCoast Properties

Irvine, CA 92618

X

500.00

500.00

G2012

$1,500.00

1,550.00

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ww

w.n

etfi

le.c

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15

20

01/01/2013

06/30/2013


1346936

05/29/2013

T2 Development, LLC


X

500.00

500.00

G2012

$500.00

02/07/2013

The Criscom Company

Chatsworth, CA 91311-4011

X

500.00

500.00

G2012

$1,500.00

03/16/2013

Willdan Group, Inc.

Anaheim, CA 92806

X

250.00

250.00

G2012

$250.00

06/12/2013

William Witte

Laguna Beach, CA 92651

XReal Estate

Related California

500.00

500.00

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1,750.00

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ww

w.n

etfi

le.c

om

16

20

01/01/2013

06/30/2013


1346936

R.G. Kring and L.E. Kring Family Trust

Anaheim, CA 92802 X

50,000.00

0.00

X

37,500.00

0.00

12,500.00

03/28/2013

0

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09/28/2012

-37,500.00

G2012 75,000.00

R.G. Kring and L.E. Kring Family Trust

Anaheim, CA 92802 X

25,000.00

0.00

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04/19/2013

0

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G2012 75,000.00

0.00

37,500.00

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0.00

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-37,500.00

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ww

w.n

etfi

le.c

om

17

20

01/01/2013

06/30/2013


1346936

Card Services

Philadelphia, PA 19101-3337

See Schedule G itemization

566.01

Card Services

Philadelphia, PA 19101-3337

See Schedule G for itemization

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Naber Mole & Associates


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18

20

01/01/2013

06/30/2013


1346936



FND

5.38



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01/01/2013

06/30/2013


1346936



FND

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1346936

01/07/2013

City of Anaheim

Anaheim, CA 92805

Refund of excess candidate filing/ballot fee

479.00

479.00

479.00

20.00

0.00

499.00


Exhibit “D”

HOME ABOUT SOAR NEWS MEDIA SOAR PAC CONTACT

S.O.A.R. PAC Endorses Jordan Brandmanfor Anaheim City CouncilJun 22, 2012

ANAHEIM, CA – Today, Support Our Anaheim Resort District (S.O.A.R.) PAC, announced itsfirst endorsement for Jordan Brandman for Anaheim City Council. After carefulconsideration, S.O.A.R. PAC endorsed Brandman because of his proven track record as atrustee of the Anaheim Union High School District, his extensive community background,and his diverse regional support.

Brandman understands the importance of the Anaheim Resort District and its nexusbetween Anaheim’s neighborhoods and city services. The Anaheim Resort District is theeconomic engine of the city and represents less than 5% of the land, yet it generates 50%of the City’s general fund which funds police, fire, parks and libraries.

“S.O.A.R. PAC is proud to stand behind Jordan Brandman for Anaheim City Council. Webelieve Jordan’s visionary leadership will allow for responsible growth and economicdevelopment” said S.O.A.R. Executive Director, Jill Kanzler. “Jordan Brandman cares aboutAnaheim and has broad support throughout the community and all of Orange County. Weare proud to stand with so many others and publicly announce our support for Jordan.”

“I am honored to receive S.O.A.R. PAC’s endorsement for Anaheim City Council,” saidJordan Brandman. “I am committed to job creation, transportation projects anddevelopment all the while protecting and beautifying our neighborhoods, parks andlibraries. Supporting the Anaheim Resort District is paramount in maintaining vital cityservices like police and fire.”

“The fact that Brandman earned the S.O.A.R. PAC endorsement two months ahead of theofficial filing deadline is a tribute to his community involvement and strong campaign,”continued Kanzler. “There are other qualified candidates and additional residents might stillannounce for city council. We will continue to dialogue with the other candidates anddiscuss a potential second endorsement in the coming months.”

S.O.A.R. PAC is the political arm of S.O.A.R., a broad grassroots coalition of over 10,000members which include local business owners, community leaders and Anaheim residents.Its mission is to educate area residents about the Anaheim Resort District and the criticalservices it funds such as police and fire, park and libraries. S.O.A.R. has an active andcommitted Advisory Board comprised of former elected officials, neighborhood leaders andbusiness leaders representing all regions of Anaheim.

Sign up to receive updates from SOAR

First Last

Name

Email

SOAR Praises Anaheim City Councilfor Restoring City Services andExpanding Public Safety

SOAR applauds the Anaheim City Council, whoon Tuesday unanimously approved a balancedbudget of $1.55 billion. Their actions reaffirmtheir commitment to neighborhoodimprovements, public safety restoration andinfrastructure investment.

READ MORE

SOAR is on Facebook and FlickrStaying connected has never been easier.

Media | Support Our Anaheim Resort Area http://www.soaranaheim.com/index.php?mact=News,cntnt01,detail,0&cnt...

1 of 1


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Documents

B LAW COR P OR A T ION · Dear Attorney General Harris and District Attorney Rackauckas: On behalf of Tina Quintana (a registered voter in the City of Anaheim) and Orange County Communi