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Home My WebLink About10A - MINUTES - 2-21-17MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA CALLED TO ORDER ATTENDANCE PUBLIC COMMENTS - None FEBRUARY 21, 2017 CLOSED SESSION MEETING COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:10 P.M. COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor (5:15 p.m.) MICHELE MARTINEZ, Mayor Pro Tern P. DAVID BENAVIDES (5:20 p.m.) VICENTE SARMIENTO JOSE SOLORIO JUAN VILLEGAS COUNCILMEMBERS Absent: SAL TINAJERO STAFF Present: GERARDO MOUET, Acting City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:11 p.m. CLOSED SESSION ITEMS The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: 1. Christian Garduno v. City of Santa Ana, Orange County Superior Court Case No. Case No. 30- 2014 - 00737763 CITY COUNCIL MINUTES 1 FEBRUARY 21, 2017 1 0A -1 2. 1901 First Street Owner. LLC v. Tustin Unified School District, Orange County Superior Court Case No.: 30- 2015 - 00803234 -CU -WM -CJC; Court of Appeal of the State of California, Fourth Appellate District, Division Three, Case No.: G054086 3. 1901 First Street Owner LLC v. City of Santa Ana, Orange County Superior Court Case No, 30- 2016 - 00876616 -CU -CR -CJC 4. Brandon Sontag v. City of Santa Ana, et al., Orange County Superior Court, Case No. 30- 2017 - 00902039 -CU -OE -CJC 2. CONFERENCE WITH LEGAL COUNSEL — INITIATION OF LITIGATION pursuant to paragraph (4) of subdivision (d) of Section 54956.9 of the Government Code: One item CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED THE CLOSED SESSION MEETING AT 5:58 P.M. AND CONVENED TO THE REGULAR OPEN MEETING. CITY COUNCIL MINUTES 2 FEBRUARY 21, 2017 1 0A -2 CALLED TO ORDER REGULAR OPEN MEETING COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 6:00 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tern P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO (7:10 P.M.) JUAN VILLEGAS PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS COUNCILMEMBERS Absent: NONE STAFF Present: GERARDO MOUET, Acting City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council MAYOR PULIDO RUPERT VEGA, POLICE CHAPLAIN CERTIFICATES OF RECOGNITION presented by MAYOR PULIDO to Santa Ana Police Cpl. Ricky Velasquez, Officer G. Esparza, Officer E. Elizalde and Officer D. Gonzalez for displaying unwavering heroism and saving three drowning victims. PROCLAMATION presented by MAYOR PRO TEM MARTINEZ to Black Chamber of Commerce of Orange County in recognition of Black History Month. PROCLAMATION presented by MAYOR PRO TEM MARTINEZ to Dr. James Maciel for successfully overcoming life challenges and being a role model for others in the community. CERTIFICATES OF RECOGNITION presented by COUNCILMEMBER SARMIENTO to winners of the Santa Ana Water Conversation Art Contest: Ages 5 -8 Finalists: Grand Prize Winner: Delanna Dinh, Ariana Velazco Devenny Ramirez CITY COUNCIL MINUTES 3 FEBRUARY 21, 2017 1 0A -3 Ages 9 -12 Finalists: Grand Prize Winner: Ages 13 -14 Finalists: Grand Prize Winner: Ages 15 -18 Finalists: Grand Prize Winner: Matthew Bay, Dominic Mendez Laisha Echegoyen Jennifer Barajas, Natalie Rivera Karla Larios Jesusantonio Cervantes, Linda Yanez Alberto Rodriguez PROCLAMATION presented by COUNCILMEMBER BENAVIDES to Comunidad Latina Federal Credit Union in recognition of their 10 -year anniversary of serving the Santa Ana community. PROCLAMATION presented by COUNCILMEMBER SOLORIO to Nati Alvarado of Neutral Ground Services for providing outstanding services to troubled youth. CERTIFICATES OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Marisol Rivera and the SEIU United Service Workers West Board in recognition of their significant contributions in representing service workers. AGENDA ITEM CONSIDERED OUT OF ORDER - BOARDS /COMMISSIONS /COMMITTEES 13A. NOMINATED BY COUNCILMEMBER SOLORIO AS THE WARD 3 REPRESENTATIVE TO THE YOUTH COMMISSION (ALTERNATE POSITION) FOR A FULL -TERM EXPIRING DECEMBER 15, 2020 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Appoint Celeste Duran to the Youth Commission, Alternate position. (Ward 3 resident, replacing M. Bultron). 13B. NOMINATED BY COUNCILMEMBER SOLORIO AS THE WARD 3 REPRESENTATIVE TO THE HISTORIC RESOURCES COMMISSION FOR A PARTIAL -TERM EXPIRING DECEMBER 15, 2020 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Appoint Ed Murashie to the Historic Resources Commission. (Ward 3 resident, replacing M. Tardif). 13C. NOMINATED BY COUNCILMEMBER SOLORIO AS THE WARD 3 REPRESENTATIVE TO THE COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION FOR A FULL -TERM EXPIRING DECEMBER 15, 2020 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office CITY COUNCIL MINUTES 4 FEBRUARY 21, 2017 i MOTION: Appoint Mike Tardif to the Community Redevelopment and Housing Commission (Ward 3 resident, replacing D. Gomez). MOTION: Tinajero SECOND: Benavides VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) CLERK OF THE COUNCIL ADMINISTER OATH OF OFFICE TO: • Ed Murashie Historic Resources Commission • Mike Tardif Community Redevelopment and Housing Commission CLOSED SESSION REPORT- See Item 19A for any reportable actions. PUBLIC COMMENTS • Ilya Tseglin, spoke in opposition to Agenda Item 19C. • Robert Tseglin, also spoke in opposition to same item. CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on Consent Calendar Items 10A through 30B, with the following modifications: • Mayor Pro Tern Martinez, dissented on Agenda Items 25C, 25D, and 25E; pulled Agenda Items 19F and 25A for separate discussion and 19G for comment only. • Councilmember Sarmiento, dissented on Agenda Item 19C and pulled Agenda Item 25E for separate discussion. MOTION: Martinez VOTE: AYES NOES: I'_1= 1.IF_110F SECOND: Sarmiento Benavides, Martinez, Pulido, Sarmiento, Tinajero, Villegas (6) None (0) None (0) CITY COUNCIL MINUTES 5 FEBRUARY 21, 2017 1 0A -5 ABSENT: Solorio (1) ADMINISTRATIVE MATTERS MINUTES 10A. MINUTES FROM THE SPECIAL CLOSED SESSION MEETING OF FEBRUARY 3, 2017 (STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Approve Minutes. 10B. MINUTES FROM THE REGULAR MEETING OF FEBRUARY 7, 2017 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Approve Minutes. MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — City Attorney's Office MOTION: Approve as follow: CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: Christian Garduno v. City of Santa Ana, Orange County Superior Court Case No. Case No. 30- 2014 - 00737763; Motion by Solorio, Seconded by Pulido to approve settlement in the amount of $300,000 by 6 -0 vote (Tinajero absent). 19B. EXCUSED ABSENCES — None 19C. DESTRUCTION OF OBSOLETE CITY RECORDS {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Approve the requests for the destruction of obsolete records in accordance with the retention schedule outlined in City Council Resolution 2013 -014. The Citywide Records Retention Schedule has specific retention periods for many City documents. The Schedule is CITY COUNCIL MINUTES 6 FEBRUARY 21, 2017 1 0A -6 19D. 19E. modeled after the California Secretary of State's sample for local government and incorporates other statutory periods applicable to Santa Ana. These are minimum retention periods. Each department makes discretionary decisions on whether to retain records past the minimum requirements. *Councilmember Sarmiento dissented on Agenda Item 19C. STRATEGIC PLAN MONTHLY REPORT FOR JANUARY 2017 (STRATEGIC PLAN NO. 5, 1) - City Manager's Office MOTION: Receive and file. FEDERAL AND STATE LOBBYIST YEAR END SUMMARY {STRATEGIC PLAN NO. 1, 2, 3, 4, 5, 6, 7) - City Manager's Office MOTION: Receive and file. Mayor Pro Tern Martinez, pleased that full amount available to non - profit organizations; moving forward staff to review alternate methods to assist non- profit organizations since CDBG funding in jeopardy at the federal level. Councilmember Solorio, thanked staff for augmenting funds available for non- profit organizations. Councilmember Sarmiento, noted that previous item for Council consideration allowed up to $500,000 for non - profit organizations without the federal reporting and eligibility requirements; City will be absorbing costs. MOTION: Receive and file. MOTION: Solorio SECOND: Pulido VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Villegas (5) NOES: Martinez, Tinajero (2) ABSTAIN: None (0) ABSENT: None (0) CITY COUNCIL MINUTES 7 FEBRUARY 21, 2017 1 0A -7 Mayor Pro Tern Martinez, requested staff develop a process to allocate funds for future projects. MOTION: Receive and file. CLERK OF THE COUNCIL ADMINISTER OATH OF OFFICE TO: • Celeste Duran Youth Commission BUDGETARY MATTERS APPROPRIATION ADJUSTMENTS 20A. CONTRIBUTION FOR THE SANTA ANA DELHI DIVERSION CHANNEL PROJECT TO CONSTRUCT AN UNDERGROUND SEGMENT LOCATED ON BRISTOL STREET FROM BAKER STREET TO NEWPORT BOULEVARD (NONGENERAL FUND) (PROJECT NO. 16 -6467) {STRATEGIC PLAN NO. 6, 1 G} - Public Works Agency MOTION: 1. AGMT NO. 2017 -029 - Authorize the City Manager and Clerk of the Council to execute Amendment No. 1 to Cooperative Agreement with the City of Costa Mesa, authorizing Costa Mesa's $600,000. 2. Approve an appropriation adjustment. (Requires five affirmative votes) APPROPRIATION ADJUSTMENT NO. 2017 -090 — Reversing the appropriated anticipated revenues from the City of Costa Mesa, in the Federal Clean Water Protection Enterprise Fund, in the amount of $600,000. GRANTS /APPLICATIONS 21 A. ADULT AND DISLOCATED WORKER CAREER SERVICES PROVIDER {STRATEGIC PLAN NO 2, 4) - Community Development Agency Workforce Development Board approved recommended action on January 19, 2017 by a vote of 12 -0 (12:0 (Davila, Korthuis, Lewis, McGowan, Nishimoto, Perez, Piwnica, Ruiz, Smith absent)). MOTION: CITY COUNCIL MINUTES 8 FEBRUARY 21, 2017 1 0A -8 1. Approve retention of the Adult and Dislocated Worker Career Services internally designating the City of Santa Ana as the administrative entity to be the provider of the services; 2. Authorize the Chair of the Workforce Development Board to sign the Request for Governor Approval; 3. Approve and Authorize the Mayor to sign the Request for Governor Approval to be the Adult and Dislocated Worker Career Services Provider as allowed under the Federal Workforce Innovation and Opportunity Act and Final Regulations. AGREEMENTS POLICING Matter continued from the February 7, 2017 City Council meeting to the February 21, 2017 City Council meeting by a vote of 7 -0. Mayor Pro Tem Martinez, requested clarification on the funding for said project. MOTION: Authorize the City Manager and Clerk of the Council to execute a one -year agreement with Chapman University, for the period of February 21, 2017 through February 20, 2018, for Professional Services to provide a Community Oriented Policing Survey in an amount not to exceed $30,600, subject to non - substantive changes approved by the City Manager and City Attorney. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Tinajero Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) 25B. AGMT NO. 2017 -031 - HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2016 -30 FOR THE PROPERTY LOCATED AT 2108 NORTH GREENLEAF STREET {STRATEGIC PLAN NOS. 5, 2, 3) - Planning and Building Agency Historic Resources Commission approved recommended action on January 26, 2017 by a vote of 6 -0 (Schaefer absent, Murashie abstained). CITY COUNCIL MINUTES 9 FEBRUARY 21, 2017 1 0A -9 MOTION: Authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreement with Robert F. and Michelle A. Donahue, property owners, for the structure located at 2108 North Greenleaf Street, subject to non- substantive changes approved by the City Manager and City Attorney. 25C. AGMT NO. 2017 -032 - APPROVE TENANT INTEREST PURCHASE AGREEMENT FOR BRISTOL STREET IMPROVEMENTS, PHASE 3A (PROJECT NO. 136792 NONGENERAL FUND) {STRATEGIC PLAN NOS. 6, 1 G; 3, 2C) - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement for acquisition of tenant- seller's interest in real property located at 1111 North Bristol Street, Suite M and goodwill (if any) with Maria Piceno DBA Blooming Flower & Gifts, for an amount not to exceed $6,530, subject to nonsubstantive changes approved by the City Manager and City Attorney. *Mayor Pro Tern Martinez dissented on Agenda Item 25C. 25D. AGMT NO. 2017 -033 - APPROVE PURCHASE AGREEMENT FOR REAL PROPERTY ACQUISITION FOR BRISTOL STREET IMPROVEMENTS PHASE 4 (PROJECT NO. 116741, NON - GENERAL FUND) {STRATEGIC PLAN NOS. 6, 1 G; 3, 2C) - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute a purchase agreement for the real property acquisition, temporary construction easement, and goodwill (if any) with the property owners Mario Arevalo, an individual, and Raquel Arevalo, an individual; for the property located at 1302 W. Saint Andrew Place (APN 408 - 332 -01), for a full acquisition, in an amount not to exceed $480,000 listed below, subject to nonsubstantive changes approved by the City Manager and City Attorney. *Mayor Pro Tern Martinez dissented on Agenda Item 25D. 25E. AGENDA ITEM CONSIDERED OUT OF ORDER 25F. AGMT NO. 2017 -034 - SENIOR MEALS PROGRAMS (STRATEGIC PLAN NO. 5, 6E) - Parks, Recreation and Community Services Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Community SeniorServ, Inc in the amount of $15,000 for the period February 21, 2017 through June 30, 2017, subject to non- substantive changes approved by the City Manager and City Attorney. CITY COUNCIL MINUTES 10 FEBRUARY 21, 2017 ffly [f: 25G. AGMT NO. 2017 -035 - RESTROOM STRUCTURE REPAIRS AT ANGELS PARK {STRATEGIC PLAN NO. 6, 1 B} - Parks, Recreation and Community Services Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Naka Engineering Contractors for an amount not to exceed $50,000, which includes a contingency of $5,520 for a term from February 21, 2017 through December 31, 2017 or completion of the project, whichever is sooner, subject to non - substantive changes approved by the City Manager and City Attorney. 25H. ON -CALL DEMOLITION SERVICES FOR CAPITAL IMPROVEMENT PROJECTS (NON - GENERAL FUND) {STRATEGIC PLAN NO, 6, 1C} - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute agreements for a three -year term beginning February 21, 2017, and expiring February 20, 2020, with provisions for one, two -year renewal option exercisable by the City Manager and City Attorney, in an aggregate amount not to exceed $2,200,000, subject to nonsubstantive changes approved by the City Manager and City Attorney. 1. AGMT NO. 2017 -036 — With with J &G Industries, 2. AGMT NO. 2017 -037 — With National Demolition Contractors, and 3. AGMT NO. 2017 -038 — With Interior Demolition, Inc. 251. AGMT NO. 2017 -039 - ANNUAL SOFTWARE MAINTENANCE AND SUPPORT FOR THE POLICE DEPARTMENT'S CRIME ANALYSIS SOFTWARE {STRATEGIC PLAN NO. 1, 5A} - Police Department MOTION: Authorize the City Manager and Clerk of the Council to execute the attached one -year agreement with TriTech Software Systems, Inc., for the period of November 17, 2016 through November 16, 2017, in an amount of $5,150 subject to non - substantive changes approved by the City Manager and City Attorney, 25J. OCCUPATIONAL, ENVIRONMENTAL HEALTH, AND SAFETY TRAINING AND CONSULTING SERVICES {STRATEGIC PLAN NO. 7, 6} - Personnel Services Agency MOTION: 1. AGMT NO. 2017 -040 - Authorize the City Manager and Clerk of the Council to execute an agreement with Dr. Maureen Sassoon for the term beginning February 21, 2017 through June 30, 2018, in an amount not to exceed $75,000, subject to non - substantive changes approved CITY COUNCIL MINUTES 11 FEBRUARY 21, 2017 1 0A -11 by the City Manager and City Attorney. The agreement includes a provision for a one -year term extension exercisable by the City Manager and City Attorney. 2. Authorize payment for services performed October 1, 2016 through December 31, 2016, under which the City exhausted all funds provided under a previous agreement. City intends that any sums owed to Dr. Maureen Sassoon shall be covered by this agreement. MISCELLANEOUS - BUDGET 29A. DONATION AGREEMENT FOR THE MINI - TOWNSEND COMMUNITY RESOURCE FAIR EVENT {STRATEGIC PLAN NO. 5, 41 - Councilmember Tinajero MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Neighborhood Housing Services of Orange County, Inc. for a one -time donation amount of $500, subject to nonsubstantive changes approved by the City Manager and the City Attorney. 29B. DONATION AGREEMENT FOR THE MINI - TOWNSEND COMMUNITY RESOURCE FAIR EVENT (STRATEGIC PLAN NO. 5, 4) - Councilmember Benavides MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with the Neighborhood Housing Services of Orange County, Inc. for a one -time donation amount of $500, subject to non - substantive changes approved by the City Manager and the City Attorney. 29C. DONATION AGREEMENT FOR ON -GOING COMMUNITY OUTREACH AND ADULT EDUCATION CLINICS — PROJECT KINSHIP {STRATEGIC PLAN NO. 5, 4) - Mayor Pro Tern Martinez MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with the Charitable Ventures of Orange County Inc. for a one -time donation amount of $1,000, subject to non - substantive changes approved by the City Manager and the City Attorney. 29D. DONATION AGREEMENT FOR THE SANTA ANA HIGH SCHOOL FOOTBALL TEAM EVENT {STRATEGIC PLAN NO. 5, 4} - Mayor Pro Tern Martinez MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with the Santa Ana Athletic Foundation for a one -time donation amount of $1,000, subject to non - substantive changes approved by the City Manager and the City Attorney. CITY COUNCIL MINUTES 12 FEBRUARY 21, 2017 re7. 29E. DONATION AGREEMENT FOR SANTA ANA SITES PUBLIC CONCERTS {STRATEGIC PLAN NO. 5, 4) - Mayor Pulido MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Arts Orange County for a one -time donation amount of $3,500, subject to non - substantive changes approved by the City Manager and the City Attorney. LAND USE MATTERS DEEDS — TRANSFER OF PROPERTY 30A. TRANSFER OF WATER LINE EASEMENT (2700 NORTH MAIN STREET; ASSESSOR PARCEL NO. 002 - 210 -44) {STRATEGIC PLAN NO. 3, 2) - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute Quitclaim Deed No. 8609 relinquishing the City's interest in a water line easement at 2700 North Main Street to 2700 N Main LLC, a California limited liability company. 30B. TRANSFER OF PUBLIC UTILITY EASEMENT (2800 NORTH MAIN STREET; ASSESSOR PARCEL NO. 002 - 221 -52) {STRATEGIC PLAN NO. 3, 2) - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute Quitclaim Deed No. 8610 relinquishing the city's interest in a water line easement at 2800 North Main Street, to MainPlace Shoppingtown LLC, a Delaware limited liability company. * *END OF CONSENT CALENDAR ** BUSINESS CALENDAR ITEMS ORDINANCES /FIRST READING 50A. AMEND SANTA ANA MUNICIPAL CODE SECTION 5 -72.1 DEFINTIONS REGARDING POTENTIALLY DANGEROUS AND VICIOUS DOG TO BE CONSISTENT WITH CURRENT STATE LAW {STRATEGIC PLAN NO. 7, 5E} - City Attorney's Office CITY COUNCIL MINUTES 13 FEBRUARY 21, 2017 fflh l MOTION: Place ordinance on first reading and authorize publication of title. ORDIANANE NO. NS -2912 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SANTA ANA MUNICIPAL CODE SECTION 5 -72.1 DEFINTIONS REGARDING POTENTIALLY DANGEROUS AND VICIOUS DOG MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN: ABSENT: RESOLUTIONS SECOND: Martinez Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) 55A. AUTHORIZING SUBMISSION OF AN APPLICATION TO CALIFORNIA PUBLIC UTILITIES COMMISSION FOR ACQUISITION OF THE STREETLIGHT SYSTEM FROM SOUTHERN CALIFORNIA EDISON (NON- GENERAL FUND) {STRATEGIC PLAN NO. 6, 1 C} - Public Works Agency Mayor Pro Tern Martinez, need to consider 12 million as one -time allocation. Executive Director of Public Works, Fred Mousavipor explained proposal and benefits to the City in owning street lights. Councilmember Solorio, broader vision is to offer citywide wi -fi and become a gigabit city. MOTION: Adopt a resolution. RESOLUTION NO. 2017 -007 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE EXECUTIVE DIRECTOR OF THE PUBLIC WORKS AGENCY TO PURSUE CALIFORNIA PUBLIC UTILITIES COMMISSION APPROVAL TO PURCHASE APPROXIMATELY 7,800 STREETLIGHTS FROM SOUTHERN CALIFORNIA EDISON; SUBJECT TO FURTHER APPROVAL BY THE CITY COUNCIL OF A PURCHASE AND SALE AGREEMENT BETWEEN THE PARTIES MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) CITY COUNCIL MINUTES 14 FEBRUARY 21, 2017 1 OA -14 NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 55B. CONDEMNING THE JANUARY 2017 PRESIDENTIAL EXECUTIVE ORDERS ON IMMIGRATION ENFORCEMENT AND REFUGEES {STRATEGIC PLAN NO. 5, 6F} - City Manager's Office The following spoke in opposition to item: • Ahmed Radwan and Sean Tu, representing the Islamic Center of Santa Ana. MOTION: Adopt a resolution. RESOLUTION NO. 2017 -008 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONDEMNING THE JANUARY 2017 PRESIDENTIAL EXECUTIVE ORDERS ON IMMIGRATION ENFORCEMENT AND REFUGEES MOTION: Benavides SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero (6) NOES: Villegas(1) ABSTAIN: None (0) ABSENT: None (0) REPORTS 65A. RESTRUCTURE CITY COUNCIL COMMITTEES, ESTABLISH MEETING SCHEDULE AND APPOINT MEMBERS (STRATEGIC PLAN NO. 5, 1) — City Manager's Office MOTION: 1. Adopt resolution. RESOLUTION NO. 2017 -009 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REPEALING RESOLUTION NO. 2013 -020 AND ESTABLISHING CERTAIN COMMITTEES OF THE CITY COUNCIL 2. Appoint the following Committee members, as follow: CITY COUNCIL MINUTES 15 FEBRUARY 21, 2017 1 0A -15 RM Community Services (and Joint Santa Ana Unified 1. Benavides School District and City Council Committee) 2. Villegas 3. Solorio Public Safety, Code Enforcement & Neighborhood 1. Villegas Empowerment 2. Tinajero 3. Solorio Economic Development, Infrastructure, Budget 1. Sarmiento and Technology 2. Benavides 3. Martinez Legislative Affairs, Ethics and Transparency 1. Tinajero 2. Sarmiento 3. Martinez MOTION: Tinajero SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) FISCAL YEAR 2016 -17 MID -YEAR BUDGET PRESENTATION — City Manager's Office; and Finance and Management Services Overview by Acting City Manager Mouet. Budget presentation by Executive Director of Finance and Management Services Francisco Gutierrez: ] Mid -Year Budget Review Table of Content I. Path to Fiscal Stability II. FY 16 -17 Economic Overview III. FY 16 -17 General Fund Projected Year -End Balance IV. Fiscal Year Ending Operating Balance V. Assigned Balances VI. Next Steps Path to Fiscal Stability • Understanding the City's Budget • FY 2008 -2009 • 1,785 Full Time Employees (FTE) CITY COUNCIL MINUTES 16 FEBRUARY 21, 2017 1 0A -16 • $239.1M General Fund Budget • Consolidation of Departments (e.g. Library Services merged with Parks and Rec. Services) • FY 2012 -2013 • 1,203 Full Time Employees (FTE) • $196.5M General Fund Budget • Outsourcing of the Fire Department to OCFA • Due to effective resource utilization and strong management, the City generated a positive ending operating balance. • Results in lower expenditure base • Increase in actual revenues Economic Overview FY 2016 -s7 OPERATING BUDGET On June 21, 2o16, the City Council adopted the FY 2o16-17 Budget General Fund Total Citywide Budget 7 General Fund Operations: Mid -year Report QUARTERLY REVENUE AND EXPENDITURES PER QUARTER Revenues 10% 23% 28 °k 39% Expenditures 24% 26% 23% 27% CITY COUNCIL MINUTES 17 FEBRUARY 21, 2017 1 0A -17 General Fund Operations: Budget to Actuals Comparison JULY - DECEMBER 2016 JULY - DECEMBER 2015 FY 2oi6 - 2oi7 General Fund s2 Revenue Sources Estimated Revenues: $226,970,000 AWi .e if.d Gen...IF.MN.. OxolYmp,M" CNrinv .T¢ W, ,Man) General Fund Revenues: Top 6 BUDGETTO ACTUALS JULY• DECEMBER 2016(50 %) CITY COUNCIL MINUTES 18 FEBRUARY 21, 2017 1 0A -18 General Fund Revenues: Top 6 Actuals Vs. Actuals FY iS -16 v. FY 16 -17 JULY - DECEMBER 2016(50 %) rw....wn..a.....a . ruw,..r Positive Development Activity JULY - DECEMBER 2016 7�, 51,_'92,84- S ;15,33 5149,43 54353 SI21,33 53'.6,293 umdng Men Check $45,9 5178,563 Total $1,609,58 $3,687,53 General Fund Revenues: BUDGETTO ACTUALS COMPARISON JULY - DECEMBER 2016 Projected Revenues as of December is 5225,673.,339• Current Year -End revenue shortfalls include: i) Water Overhead Transfer: (32.4M) 2) UUT: ($2.2M) 3) Jail Rental Facility: (f2.4M) Top General Fund Revenues Sales Tax Sales Tax Base by Category General Retail 23.8% Transportation 22.6% CITY COUNCIL MINUTES 19 FEBRUARY 21, 2017 1 0A -19 Business to Business 20.7% Food Products 17.9% Construction 13.9% Other 1.1% Top General Fund Revenues Property Tax Property Tax Overview City of Santa Ana Assessed Valuation 201G2017 3],436,896,16] 1, "9,2&1,188 24,856,126,355 1896 N115-2016 21525,905,507 1,484,31],]01 23,013,226,208 0.2% 3014301s 20, 432.992,347 1642.391147 21015,MA94 0.5% 30132014 19,5]9,938,214 1539.7".991 21319,653,205 18% 2012 -2013 18,829,MIM 3.509,850,095 30,335,T/9,135 1.2% 2011 -2012 18,509,ST2,539 1591,286,9]0 X M1,5 "A59 S urt ! O ngeC unry Audkor-Cmn &rQflkeAss ed Valuations Property Tax Overview A majority of the assessed basic property value is derived from residential, commercial and industrial parcels. Net Taxable Value Residential 59.4% Commercial 21.2% Industrial 12.1% Total: 92.7° Top General Fund Revenues Property Tax in Lieu of Vehicle License Fee (VLF) Property Tax In Lieu of Vehicle License Fee (VLF) • Property Tax (VLF) is the third largest general fund revenue source. • In 2004, the California Legislature approved a VLF for property tax swap. • The result was a reduction of the VLF from 2% to 0.65% and the difference in the reduction was backfilled to cities and counties with property tax. Top General Fund Revenues Utility User Tax CITY COUNCIL MINUTES 20 FEBRUARY 21, 2017 1 OA -20 Utility User Tax (QUIT) Overview Utility Users Tax represents the fourth largest revenue source forthe City The UUT is applied to four categories: •Electncity (48.0 %oftotal UUTrevenues) •Telephone (34.1 %0ft0tal UUT revenues) •Water (9.6% of total UUT revenues) •Gas (8.3% of total UUT revenues) FY3016171UL-0EC m H301S361UL -0EC Variance Report Top General Fund Revenue Business License Business License • Business License represents the fifth largest revenue source for the City Number of Business Licenses: o 2016 = 30,593 vs. 2015 = 29,107 Top General Fund Revenues Hotel Visitors' Tax (HVT) Hotel Visitors' Tax (HVT) -Hotel visitors' Taxis the sixth largest general fund revenue - HVT Rate since January 2005 is 11% -Total number of hotels is 36. -The top 10 generate 75% of the City's Hotel Visitom'tax. aestWevhm Omn eCOUn AI wlxaM Ce�erloeE Suxes CourtriecusyMarplattilantafitra GoubletreeClub Hotel Oaubletraelloal SenteAna Grarpe CouNMNMpri FinM Sidles Wm nIYn SSuRes 1100 Inn Ore Cp, n 1-e0uinteirourN06 SouffiCoastMaInGCourtyand General Fund Operating Budget CITY COUNCIL MINUTES 21 FEBRUARY 21, 2017 1 OA -21 IIIIIIIIIIP' f" �IIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIII� s ua..0 u Top General Fund Revenue Business License Business License • Business License represents the fifth largest revenue source for the City Number of Business Licenses: o 2016 = 30,593 vs. 2015 = 29,107 Top General Fund Revenues Hotel Visitors' Tax (HVT) Hotel Visitors' Tax (HVT) -Hotel visitors' Taxis the sixth largest general fund revenue - HVT Rate since January 2005 is 11% -Total number of hotels is 36. -The top 10 generate 75% of the City's Hotel Visitom'tax. aestWevhm Omn eCOUn AI wlxaM Ce�erloeE Suxes CourtriecusyMarplattilantafitra GoubletreeClub Hotel Oaubletraelloal SenteAna Grarpe CouNMNMpri FinM Sidles Wm nIYn SSuRes 1100 Inn Ore Cp, n 1-e0uinteirourN06 SouffiCoastMaInGCourtyand General Fund Operating Budget CITY COUNCIL MINUTES 21 FEBRUARY 21, 2017 1 OA -21 FY 2016 -2017 General Fund 11 Appropriations $ 228,970,000 IkoCepvmroni5pP36b611 plq lipid <MIJUe 50I.,E5(R2Ay �o�x+�mms+asenpn ;kn an cmooiwa rei Saari n.M.�u.xsw�,aev W M+Y. m amsa n�ri rn.r Y. —pmTn n�r� General Fund Expenditures: BUDGETTO ACTUALS July — December (So%) General Fund Expenditures: ACTUALS TO ACTUALS FY 15 -16 v. FY 16 -17 CITY COUNCIL MINUTES 22 FEBRUARY 21, 2017 1 OA -22 FY 16 Departmental Expenditures Annual Fy 16 -17 Budget -17 7uly - Dec. Actuals % Expended ErW �IIIIIIIII!W' General Fund Expenditures: ACTUALS TO ACTUALS FY 15 -16 v. FY 16 -17 CITY COUNCIL MINUTES 22 FEBRUARY 21, 2017 1 OA -22 General Fund Operating Budget Projected Year End General Fund Operations PROJECTED YEAR -END FY 16 -17 Projected Net Operating Balance: ($3,3.79,684) Pending items: i) Christmas Sales z) Additional major development 3) Additional utility usage 4) Expenditure Trends FISCAL YEAR ENDING OPERATING BALANCE cereal c +"elsllzl�ae: '�`6j +- �'•�°'•r'""�•• 11 funtl ll- GmnaliuM s ]j fund M- COUII[IlSpecUi 'i �e � • � eAl «n a� Iu�d l3.- SVaraBicNm c am ..a. .Ilvmae.�rrb.r d eoaawy balanc reL -.-.. �+ ^4 '1^'E_ �•' ^� 3..i °.y` FY 15 -16 GENERAL FUND ENDING OPERATING BALANCE Revenues Expenditures FY 15 -16 Ending Operating Balance $3.5M CITY COUNCIL MINUTES 23 FEBRUARY 21, 2017 1 OA -23 FY 2015 -16 SURPLUS CALCULATION C M $3 Ending Operating Balance • 7 (without triple -flip) Triple -Flip Payment • onlune 24,20161he WFaireded he store Cetuaneim • transfer pebral Triple Flip oaymentto the counties The County Audiun ,W60d.". make the Not WY...p,. odes todcutnue, • On Inty 15,1016tM1e Oct received fiwl Tripk -Fhp payment of Final Ending Operating Fund $9.1m Balance (with triple -flip) 37 FY 14 -15 GENERAL FUND ENDING OPERATING BALANCE Revenues Expenditures FY 14 -15 Ending Operating Balance FY 14 -15 Surplus Allocation Surplus Allocation Monies of $11.BM in October 2015 Technology - $2,553,600 • Computer /Technology Replacements and Software Enhancements • Communication Upgrades Investment In City- $1,550,000 • General Plan Update • Branding Study • Pension Stability City Facility(Assets - $2,885,000 • HVACProjects— Library and Community Centers • Vehicle Replacement • Calle fuatro /plaza Calls Capita • Parks - $1,810,200 • Playground Equipment and Basketball Courts ail Resurfacing • Restroom Renovations • pubRcsofery 1Semrrty- $1,290,000 • 200Bady Camera; • Secant,Lightsateightpinks • Homeless e]Jcrts • 20 %Operaling Reserv, $500R CITY COUNCIL MINUTES 24 FEBRUARY 21, 2017 1 OA -24 Assigned Balances s6M FUND BALANCEAMOUNT EXPLANATION $2.5 M From encumbrance and project savings $3.5M From Prepaid Savings (OCFA) $6.OM Available Fund Balance Assigned Programs as of June 30, 2016 (GENERAL FUND) Community Engagement 5001W0 - N�'MxNnnr.Rx .enx'wn. Rn srsse —ttM2Ie a*'^ Encumbrance omoa-^ m! ^wu.+.•^o^x�xv^^^+^,^*weamw.w�s procedure occurs +.ro- ...exaa.a..c+. ws..exerr�.we... annually 17th Sneer Business Corridor Sands) max- erwxa- a.mmamew�s. Pension stability Fund 6o..a.�— vv.e.m*eaw..wn,x.mme.�gew.n+ara Orange County Animal Sheller xa.aw.e e,�..awe. ewa..m c.x4e w.m..ra.m u. xm7 Jail Revenue Stability Pond dial Ecmmmic Devocipment/Intra,mmiure: SABTC (YnMwww,ewb�.s+ vsq.w.b IDSlnppwpeubvninrAtaf1Y Additional Police Officers (June 21 Council Meeting) awrrmaa Subtotal General Fund Assigned Programs as of 6/3012016 Iamtl— b®,—mry`ltmptl,ae,mlgaw erwga 1 l IRi?I NI ASSIGNED PRnCRAP BALANCE drrlo sal Imta PRYYNa�aSal /ym sapw WntlbrbecwYf'�'alil[ TrtrtrBndbrxaamrywaa9nxm M1PN I'aID.e+twrl'Str�e R+m:aigN- 4ga?4dyv wXe_ TIT Yelnr TY Ce_a em:+ ' tv-sll '., a -mme. rgrr . PVJ Yr ID+9N mMm dyw mnMlga[mwsdl eth.N �M.[V�ah'.P'?M -G'x0e NIML1MNf. x,m lu wLd " Awwei:Ai1' au..ti.srors ne.. _. ro.nNe/n'n iwwf+N b»H. SBtimab + —seo.- fvnnnaoaas I hvN4 tmaq- +O'ne,gvurn j - smnsnw. Assigned Programs as of June 30, 2016 (GENERAL FUND) Community Engagement 5001W0 So. Main, Downtown, Harbor Blvd, 17th 5l. Business Corridor 1,600,000 South Main Development 5400R1 DOV /nlm rm S,t)0g) Harbor 30ulevard(54001(1 17th Sneer Business Corridor Sands) Pension stability Fund sCU,WO Orange County Animal Sheller 550,000 Jail Revenue Stability Pond 1,WO,Onp Ecmmmic Devocipment/Intra,mmiure: SABTC 4001000 Additional Police Officers (June 21 Council Meeting) 1.5000(10 Subtotal General Fund Assigned Programs as of 6/3012016 6,050,000 1 l IRi?I NI ASSIGNED PRnCRAP BALANCE City Council Approved Fund Balance Items (GENERAL FUND) Civic Center Safety /Ho—less- O9/20/2o16CCM 1731,836) AnordShelshaPs,mort 01117 /2017CCM _L750Qq Subtotal (1,481,836) Remaining Aaallable General Fund Balance 4 5668 44 42 4B CITY COUNCIL MINUTES 25 FEBRUARY 21, 2017 1 OA -25 NEXT STEPS • Development and adoption of FY 2017 -2018 Balanced Budget by June • Key Elements • Available monies are onetime only monies • Importance of maintaining the 20% operating reserve ($42.4M) and a healthy Economic Uncertainty Account ($38M) • All Bargaining Units MOU`s are scheduled to expire June 2017 • Conduct CommunityOutreach Meetings 45 Council discussion ensued. Mayor Pro Tem Martinez, proposed that a Mid -Year budget be considered on an annual basis. Councilmember Villegas, clarified that the City outsourced the Fire Department in April of 2012, the economy was stronger in 2013 and also departments made significant concessions to allow for us to have a healthier budget. Councilmember Solorio, concerned that former administrators made cuts without City Council approval; City expects a $3,000,000 deficit; prior transfers may impact sanitation fees; tree trimming is $4.3 million and $7 million sanitation fees are being transferred to general fund; important to fill budgeted positions. Mayor Pulido, potential opportunity to streamline permit approval process and inspections as economic development incentive. 65C. CONTINUE ITEM: ADOPT THE FISCAL YEAR 2015 -16 YEAR END OPERATING BALANCE AND APPROVE APPROPRIATION ADJUSTMENT {STRATEGIC PLAN NOS. 1, 1; 2, 1, 2) - Finance and Management Services Consideration of matter continued from the December 20, 2016 City Council meeting by a vote of 6 -0 (Tinajero dissented). Consideration of matter continued from the January 17, 2017 City Council meeting to the February 21, 2017 City Council meeting by a vote of 6 -0 (Sarmiento absent). MOTION: Continue matter to the March 7, 2017 City Council Meeting at the request of staff. MOTION: Benavides SECOND: Solorio CITY COUNCIL MINUTES 26 FEBRUARY 21, 2017 1 OA -26 VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 65D. THIRD AND BROADWAY PROPOSED DEVELOPMENT UPDATE AND COUNCIL AD HOC COMMITTEE RECOMMENDATION {STRATEGIC PLAN NO. 3, 5A) — City Attorney's Office Mayor Pulido, noted that Ad Hoc Committee has met and provided recommendations. Councilmember Solorio, noted that recommendations are reasonable to continue dialogue with developer. City Attorney Carvalho, indicated that recommendation was to implement the recommendation of the Ad Hoc committee which is to enter into an Exclusive Negotiation Agreement (ENA) and continue with due diligence; if Council approved option 1 would return with ENA for approval, otherwise will be on hold until formal action taken by majority of the City Council; option 2 is to bring a development agreement for consideration or option 3 is to approve the resolution as proposed by the developer. Councilmember Solorio, seconded by Mayor Pulido motion to approve option 1 to prepare an ENA for City Council consideration. The following spoke on the matter: • Gilad Salmon, opposed to the project in its entirety; provided background, proposed open space or affordable housing at location. • John Spiak, spoke on behalf of Grand Central Art Center; concerned with limited parking in the area. • Hugo Munoz, echoed sentiments and concerns expressed earlier. Council discussion ensued. Councilmember Solorio, asked about parking. Executive Director of Planning and Building Haghani, indicated that developer is proposing to replace public parking and will allow for tenant parking. City Attorney Carvalho, mentioned that ENA would address some questions and scope of development and allow City to be on track; provisions may include a reimbursement element that would need to be replenished as needed. CITY COUNCIL MINUTES 27 FEBRUARY 21, 2017 1 OA -27 Councilmember Benavides, commented that project has been many years in the making; need to bring to resolution. Mayor Pulido, will need to continue Ad Hoc committee. Councilmember Tinajero, asked if developer was selling property, opposed to giving public land since developer has not delivered on other projects; developer was supposed to pay for election costs associated with One Broadway Referendum Election; does not support ENA. Councilmember Sarmiento, stated that said project was supposed to be a priority, thorough procurement process lacking; need to have specific direction by the City Council; requested developer's financial information; Ad Hoc Committee should request and validate financial information, but not ENA. Mayor Pro Tern Martinez, concerned with process; supports a community benefit agreement; supports starting process over. Mayor Pulido, concluded that ENA would be for specified information and will bring financial information for City Council consideration; supports moving forward with developer. Councilmember Sarmiento presented substitute motioned, seconded by Councilmember Tinajero to enter into negotiations with Mr. Harrah or any other developer wiling to propose a project that is financially viable. Councilmember Benavides, asked difference between ENA and other type of agreement. City Attorney Carvalho, stated that ENA may include a reimbursement component that the City could draw from for expenses such as environmental analysis; will demonstrate commitment to develop site if approved. Councilmember Solorio, explained why he would not support substitute motion, ENA would be for a finite period and City may restart process; noted that Santora Building, Original Mike's, OCSART, Masonic Temple and other projects have been successfully developed. SUBSTITUTE MOTION: Enter into negotiations with Mr. Harrah or any other developer willing to propose a project that is financially viable. MOTION: Sarmiento SECOND: Tinajero VOTE: AYES: Martinez, Sarmiento, Tinajero (3) NOES: Benavides, Pulido, Solorio, Villegas (4) ABSTAIN: None (0) CITY COUNCIL MINUTES 28 FEBRUARY 21, 2017 1 OA -28 ABSENT: None (0) 'Motion failed. FRIENDLY AMENDED MOTION: Accept Ad Hoc Committee recommendation to enter into an Exclusive Negotiating and Reimbursement Agreement with Caribou Industries for 90 days. MOTION: Solorio VOTE: AYES: NOES: ABSTAIN ABSENT: PUBLIC HEARINGS SECOND: Villegas Benavides, Pulido, Sarmiento, Solorio, Villegas (5) Martinez, Tinajero (2) None (0) None (0) 75A. PUBLIC HEARING — GENERAL PLAN AMENDMENT NO. 2016 -03 AND AMENDMENT APPLICATION NO. 2016 -03 FOR A PROPOSED PARK AT 415 AND 423 SOUTH RAITT STREET — CITY OF SANTA ANA PARKS, RECREATION AND COMMUNITY SERVICES AGENCY, APPLICANT {STRATEGIC PLAN NO. 5, 4A} - Planning and Building Agency Planning Commission approved recommended action on January 23, 2017 by a vote of 6 -1 (Contreras -Leo dissented). Legal Notice published in the Orange County Reporter February 10, 2017 and notices mailed on February 9, 2017. Staff report presented by Planning Manager Candida Neal. EXISTING PROPOSED L F CITY COUNCIL MINUTES 29 FEBRUARY 21, 2017 1 OA -29 Ci(y siNs 36yea� leau Rezone required with RSMD, apprwM by ti ln.Iiie all oeparinem of interior poomoeio� lend RPi NamstaRS= ereemion to flSCfA. 1BR Y_ . 303a y015 ]__vTi 2011 RSCCO contract espies. NPS WyconaMS mined W,.1,.Whun of deed Cnyv(ma(mement wan Cenlennlal eSr tdone. RSCW is Vented ai RSCCO to wo'k on Park from year eslenspn Conversion Plan Oepeamenl de fete ", Planning commission Action • On January 23, 2017, by a vote of 6:1, the Planning Commission recommended that the City Council: • Adopt a Resolution approving General Plan Amendment No. 2016 -03, and • Adopt an Ordinance approving Amendment Application No. 2016 -03 Recommendation • Approve General Plan Amendment No. 2016 -03 and Application Amendment No. 2016 -03 CITY COUNCIL MINUTES 30 FEBRUARY 21, 2017 1 OA -30 Mayor Pulido opened the Hearing. The following spoke on the matter: • Isuri Ramos, Community Organizer for Kennedy Commission, expressed support for proposed action. • Nancy Mejia, representing Latino Health Access, support rezoning of parcel. There were no other speakers and the Hearing closed. MOTION: 1. Adopt a resolution. RESOLUTION NO. 2017 -010 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL PLAN AMENDMENT NO. 2016 -03 FOR THE PROPERTY LOCATED AT 415 AND 423 SOUTH RAITT STREET 2. Place ordinance on first reading and authorize publication of title. ORDINANCE NO. NS -2913 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2016 -03 REZONING PROPERTY LOCATED AT 415 AND 423 SOUTH RAITT STREET FROM SINGLE - FAMILY RESIDENTIAL (R -1) TO OPEN SPACE LAND (0) MOTION: Sarmiento SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Solorio(1) AGENDA ITEM OUT OF ORDER — AGREEMENT 25E. AGMT NO. 2017 -041 - INCLUSIONARY HOUSING AGREEMENT IN THREE PHASES FOR THE HERITAGE VILLAGE APARTMENTS LOCATED AT 2001 E. DYER ROAD {STRATEGIC PLAN NO. 5, 3B} - Community Development Agency Matter continued from the February 7, 2017 City Council meeting to the February 21, 2017 City Council meeting by a vote of 5 -1 (Solorio dissented and Martinez absent). CITY COUNCIL MINUTES 31 FEBRUARY 21, 2017 1 OA -31 Councilmember Sarmiento, summarized that agreement will allow developer to submit payment in three installaments that have now been adjusted; important to note in the staff report any material changes that should be highlighted when an item is continued and brought back to City Council for consideration. MOTION: Authorize the City Manager and Clerk of the Council to execute an Inclusionary Housing Agreement with Heritage Village OC, LLC for The Heritage Village Apartments, in an amount not to exceed $9,695,725.60, subject to non - substantive changes approved by the City Manager and City Attorney. MOTION: Solorio SECOND: Tinajero VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero (5) NOES: Martinez, Villegas (2) ABSTAIN: None (0) ABSENT: None (0) JOINT SESSION OF THE CITY COUNCIL AND THE HOUSING AUTHORITY 80A. CITY OF SANTA ANA CONDITIONAL LOAN AGREEMENT AND HOUSING SUCCESSOR AGENCY LOAN AGREEMENT WITH AMCAL MULTI - HOUSING, INC. FOR THE FIRST STREET APARTMENTS PROJECT; AND APPROPRIATION ADJUSTMENTS FOR THE LOAN AGREEMENTS {STRATEGIC PLAN NO. 5,3C) Consideration of matter continued from the February 7, 2017 City Council meeting by a vote of 6 -0 ( Villegas absent). At its regular meeting on January 25, 2017, by a vote of 6 -0 the Community Redevelopment and Housing Commission recommended that the City Council and Housing Authority approve the recommended actions. The following spoke on the matter: • Isuri Ramos, representing Kennedy Commission, spoke in support of affordable housing. • Joese Hernandez, member of OCCORD, requested citizenship fairs and public comments to be at the beginning of the meeting; request affordable housing in light of sanctuary city designation. • Nancy Mejia, representing Latino Health Access, requested quality housing. • Roberto Herrera, spoke on behalf of residents that need dignified housing options. • Alexis Teodoro, member of Resilience OC, expressed strong support for access to land and organizations that support those efforts. CITY COUNCIL MINUTES 32 FEBRUARY 21, 2017 1 OA -32 • Ana Urzua, representing Building Healthy Communities, opined that proposed project would bring City forward much like other actions taken by this City Council. • Mario Turner, representing AMCAL, noted that 4 bedroom units will be of great benefit to the community. • Ryan Ogulnick, Heritage Village developer, commented that Agenda Item 19G indicated that 16 projects have been funded. Council discussion ensued. Councilmember Sarmiento, opined that sole source of proposed project approved to avoid risk and expedite project; companion project was also approved as good faith to produce two housing projects; recounted actions in support of this project taken by the Planning Commission and City Council; surrounding cities also develop affordable housing projects similarly. Mario Turner, noted that market rate and affordable housing projects will provide much needed housing units. Councilmember Benavides, supports affordable and market rate housing; need resolution to allow applicants to apply for tax credits. Councilmember Tinajero, backs project that will be direct benefit and provide dignified housing for the families in our community. Mayor Pulido, asked City Attorney if funds needed when applying for State tax credits; next deadline to apply is March 1 and then July 1. City Attorney Carvalho, not involved in negotiations; State requires pre - commitment to be in place before developer applies for tax credit, may be in the form of HOME or CDBG funds or the City to have on hand. Councilmember Benavides, asked if loan was sufficient to help bridge. City Attorney Carvalho, clarified that loan from Housing Authority in addition to funds from Heritage Project; pre commitment letters are widely used and regulations require the funds on hand. Councilmember Solorio, asked developer if agree; developer confirmed that expectation was to apply in July when all funds available; suggested an Ad Hoc committee to retain a consultant to do a gap analysis on subsidy and other affordable housing projects in cue, also, if use of successor agency funds require paying prevailing wage. Mario Turner, indicated that analysis has been prepared by Keyser Marsten that requested amount was justified; commit to apply in March without funding from Heritage Project with City funding commitment and subsidy analysis may be provided if requested. CITY COUNCIL MINUTES 33 FEBRUARY 21, 2017 1 OA -33 Mayor Pulido recessed at 11:22 p.m. and reconvened at 11:39 p.m. with same members present. Councilmember Solorio, proposed motion, seconded by Mayor Pro Tern Martinez, how to move forward on this and other affordable housing projects on cue and return to the City Council for consideration at the first or second meeting next month. Councilmember Benavides, proposed substitute motion, seconded by Councilmember Sarmiento, to support applicant's proposal to allow applicant to apply by March 1, 2017. SUBSTITUTE MOTION: Support applicant's proposal as submitted. MOTION: Benavides VOTE: AYES: NOES: ABSTAIN: ABSENT: *Motion failed. SECOND: Sarmiento Benavides, Sarmiento, Tinajero (3) Martinez, Pulido, Solorio, Villegas (4) None (0) None (0) ORIGINAL MOTION: Establish an Ad Hoc Committee to provide recommendations on how to move forward on this and other affordable housing projects on cue and return to the City Council for consideration at the first or second meeting next month. MOTION: Solorio SECOND: Martinez VOTE: AYES: Martinez, Pulido, Solorio, Villegas (4) NOES: Benavides, Sarmiento, Tinajero (3) ABSTAIN: None (0) ABSENT: None (0) COUNCIL AGENDA ITEMS Pursuant to Santa Ana Charter Section 411, any member of the City Council may place items on the City Council Agenda to be considered by the City Council. 85A. DIRECT STAFF TO ESTABLISH AN INDEPENDENT REVIEW OR CITIZEN REVIEW BOARD TO REVIEW POLICE FORCE INCIDENTS, PROCEDURES CITY COUNCIL MINUTES 34 FEBRUARY 21, 2017 1 OA -34 AND POLICIES AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL — Mayor Pro Tern Martinez MOTION: Continue consideration of matter to the March 7, 2017 City Council Meeting. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Pulido Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) 85B. DIRECT STAFF, IN CONSULTATION WITH THE CITY ATTORNEYS' OFFICE, TO COLLABORATE WITH STATE AND COUNTY GOVERNMENTS, AS WELL AS LEGAL SERVICE PROVIDERS AND PRIVATE STAKEHOLDERS, INCLUDING ORGANIZATIONS SUCH AS RESILIENCE OC AND ORANGE COUNTY IMMIGRANT YOUTH UNITED, TO PREPARE TO LAUNCH A COORDINATED INITIATIVE TO PROVIDE ACCESS TO LEGAL REPRESENTATION TO SANTA ANA RESIDENTS CURRENTLY AT RISK OF REMOVAL AND WHO CANNOT AFFORD AN ATTORNEY AND FURTHER INSTRUCT STAFF TO PROVIDE AN ANALYSIS OF ALL LEGAL, FISCAL AND ORGANIZATIONAL ISSUES PRESENTED, AND REPORT BACK TO CITY COUNCIL WITH RECOMMENDATIONS — Councilmember Sarmiento The following spoke on the matter: • Sabrina Rivera, representing Western State Law School, urged support for matter. • Faby Jacome, member of Orange County Immigrant Youth United, deportation defense organizer, request support for matter, also terminate the ICE contract. • Hugo Munoz, concerned that deportation with destabilize families. • Roxana Rosas, opined that sanctuary city has obligation to protect families. • Hairo Cortes, member of member of Orange County Immigrant Youth United, support universal representation. • Carlos Perea, member of ROC, supports direct advocacy. • David Carbajal, need to exit detention center services with ICE. • Stefany Urrea, member of Orange County Immigrant Youth United, need to provide legal representation for all residents and social justice. • Roberto Herrera, supports representation for transgenders detained at the Santa Ana Jail. • Luis Ramirez, member of CLUE, supports proposal. • Sarah Sundberg, supports legal representation services. CITY COUNCIL MINUTES 35 FEBRUARY 21, 2017 1 OA -35 • Nathalie Cedeno, student at Western State Law School, have been working on universal representation initiative; applauded City's efforts. • Hugo Salazar, Policy Analyst at OCLF, request for representation has increased since November, need support services. • Jennifer Rojas, representing ACLU of Southern California, spoke in support of initiative. • Brennan Lowe, representing UCI Law Immigrant Rights Clinic, supports efforts by the City. • Andani Alcantara Diaz, representing UCI Law Immigrant Rights Clinic, willing to collaborate with City on efforts. • Annie Lai, representing UCI Law Immigrant Rights Clinic, in full support of program and willing to meet with donors; urged support to fund program and represent all. • Sylvia Kim, Asian Americans Advancing Justice, Orange County Regional Representative, opined that City is trail blazer and should continue to lead in this area. Council discussion ensued. Councilmember Sarmiento, asked that legal and fiscal impact be included in comprehensive recommendations for City Council consideration; suggested that residual funds from voter outreach program may be used for this effort; pledged $1,000 discretionary funds to support program. Councilmember Benavides, thanked all speakers; supports proposal. Councilmember Villegas, opposed to providing legal assistance although referrals are acceptable. Councilmember Solorio, would be in support of an internal office to have more control, concerned that ACLU, UCI Law Clinic and other organizations were not included; Los Angeles focused on Dreamers and Veterans would support similar program; opposed to assisting those with criminal records; does not support item as proposed. Mayor Pro Tern Martinez, supports establishing a process and use of one -time funds; important to maintain civility by all. MOTION: Direct staff and City Attorney to prepare comprehensive recommendations with legal, fiscal, and organizational impacts for City Council recommendation. MOTION: Solorio SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) CITY COUNCIL MINUTES 36 FEBRUARY 21, 2017 1 OA -36 ABSTAIN ABSENT: None (0) None (0) Councilmember Tinajero left at 12:39 a.m. and did not return. ADJOURNED THE JOINT MEETING AT 12:39 A.M. AND CONVENED THE HOUSING AUTHORITY MEETING; RECONVENED THE CITY COUNCIL MEETING AT 12:40 A.M. WITH SAME MEMBERS PRESENT. COMMENTS PUBLIC COMMENTS • Mike Tardif, commented on granny flats; City following State regulations. • John M. Raya, concerned that Community Enhancement Project Funds were not approved and replaced with CDBG process. • Joseph Cha, Simplee /Cleen Farms business owner, propose career opportunities in cannabis industry. • Yarnee Arias, Simplee /Cleen Farms, Mr. Cha's business partner, echoed comments. 90A. CITY MANAGER'S COMMENTS - None 90B. CITY COUNCILMEMBER COMMENTS Mayor Pro Tern Martinez: • Noted that June 2016 report presented to the City Council the Community Enhancement Program funds were not allocated; concerned with inconsistent process; willing to support technology projects. Councilmember Solorio: • Request meeting be adjourned in memory of Whitter Police Officer Boyer; • Food truck ordinance; consider fines rather than misdemeanors for violations; • General Plan to consider identifying areas for food islands and improve entrepreneurs options; • Have attended neighborhood association meetings — main concern has been the need to have more park rangers, patrol officers and code enforcement, traffic calming, lack of parking, should do a citywide parking needs assessment and possibly offer incentives for parking; and CITY COUNCIL MINUTES 37 FEBRUARY 21, 2017 1 OA -37 • 400 block of 4t" Street has parking lot that has fencing that prohibit access; address and proactively look into item. Councilmember Benavides: • Commented on CDBG funding and the Community Enhancement program; • First Presbyterian Church will host Trinity Conference; invited all to attend; • Support local economy; and • Adjourn in memory of "Cato" Roman. Mayor Pulido: • Adjourn in memory of Whitler Police Officer Boyer and Mr. Roman. ADJOURNED- 1:05 a.m. - The next meeting of the City Council is scheduled for Tuesday, March 7, 2017 at 5:00 p.m. for the Closed Session Meeting immediately followed by the Regular Open Business Meeting at 5:45 p.m. in the Council Chamber, 22 Civic Center Plaza, Santa Ana, California. Adjourn In Memory of Jose Roman Sr. and Whittier Police Officer Keith Boyer Maria D. Huizar, Clerk of the Council FUTURE AGENDA ITEMS • Community Engagement Program • Drone Regulations CITY COUNCIL MINUTES 38 FEBRUARY 21, 2017 1 OA -38