2018-08-20 ECONOMIC DEVELOPMENT, INFRASTRUCTURE , BUDGET & TECHNOLOGY

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AGENDA DISCUSSION ITEMS MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Martinez, Sarmiento (2) NOES: None (0) ABSENT: Benavides (1) 1. Approval of Minutes from Regular Economic Development, Infrastructure, Budget and Technology Committee Meeting of May 14, 2018. 2. Approval of Minutes from Special Economic Development, Infrastructure, Budget and Technology Committee Meeting of June 14, 2018. (Item 5 taken out of order) 5. Santa Ana Resident Vehicle Incentive Program — Staff Recommendations (Strategic Plan No. 3, 1f) - (CDA) Steven A. Mendoza, Community Development Executive Director, provided presentation on the Santa Ana Resident Vehicle Incentive Program — The Orange County Auto Dealers Association requested from the City to develop a Resident Vehicle Incentive Program where Council Members directed staff to expand the "Shop Local Program". The VIP Program is to offer a $500 rebate to Santa Ana residents who purchases a new or pre -owned automobile from a franchise Santa Ana Auto Dealership. The VIP Program becomes a new component of the "Shop Santa Ana" encouraging residents to spend the $500 in our local shops and restaurants. It will help boost our local economy. It will also provide an opportunity for the local auto dealerships to expand increasing the number of jobs for our residents. Details of how the money will be reimburse to the dealerships still in progress. It will be effective upon Voter approval of Measure X. The VIP Program will exclude leases. Franchised dealerships only within the City boundaries. They will exclude dealers with city agreements. Looking at budgeting $100,000 annually for the rebate and $25,000 for marketing. After feedback tonight, we will come with a final draft at City Council Meeting on September 18th for consideration. And start on April 1st, 2019 with a 5 -year extension. Peter Whittingham, Founder and CEO of Whittingham Public Affairs Advisors spoke in support of the Vehicle Incentive Program. Suggested the program run the length of the sales tax. Mr. Whittingham stated that the rebate will go to the residents not the dealers. Suggested that those dealers that have incentives directly with the City be excluded. The city will still receive the share of the existing sales tax from the proceeds of sales to the Santa Ana residents. Mr. Whittingham encourages to include Leases to the program as these vehicles are higher priced, more money spent, more revenue to the city. Question and answer period ensued. August 20, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes