2017-09-18 ECONOMIC DEVELOPMENT, INFRASTRUCTURE , BUDGET & TECHNOLOGY

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(Item 4 was taken out of order.) 4. Business License Review: Schedule and Plan {Strategic Plan No. 4, 1} Mayor Pro Tern Martinez stated that this item was brought to her attention by one of her constituents, a Santa Ana small business owner. She stated that specifically for home business licenses, the fee is particularly high. Chair Martinez stated that the City wants to be supportive of the over 31,000 small businesses in Santa Ana, and promote new businesses in our community, and encourage entrepreneurs. Chair Martinez' focus is making fees relate to the market and local community, and suggested surveying local business owners to inquire about the process. Francisco Gutierrez, Finance and Management Services Executive Director, presented a comprehensive analysis of our business tax and rate structure. This analysis was also compared to other cities. Mr. Gutierrez stated that the City plans to meet with the Chamber to Commerce to hear their input and include their feedback. Mayor Pro Tem Martinez stated that the City should also look deeper into Airbnb license revenue. Santa Ana has approximately 8,000 residential rental properties with the potential of being an opportunity. Resident Gil Salmon stated that there are currently requirements that make building a business in Santa Ana difficult. For example, the home occupancy permit for renters need home owner approval to operate a home based business. He also pointed out that Airbnb is all over the City. Mr. Salmon stated that Airbnb automatically remits bed taxes, and noted that revenue can be taxed at the same rate as hotels. 2. Update on Fiber Optic Utility Infrastructure / Gigabit Santa Ana {Strategic Plan No. 6, 1C; 1E; 1G; 1l} (William Galvez, PWA) William Galvez, City Engineer, provided an update for the City's plan to bring dark fiber to Santa Ana, including resident and business use. In April 2016 with the Master Plan update, funding was not provided with the current proposals. Currently, funding is not available. This program is also contingent on the purchase of street lighting. Finance, Public Works and IT are also looking into a combined fiber with wireless capability to make the project sustainable. Mayor Pro Tem Martinez stated that she has been excited for this project, and is looking forward to the next steps. She suggested not being deterred by lack of funding, and should be looking into small cell sites, or partnering with vendors such as Crown Castle, to tie into their fiber. Assistant to the City Manager, Jorge Garcia stated that SB-649 (This bill would provide that a small cell, as defined, is a permitted use, subject only to a specified permitting process adopted by a city or county, if the small cell meets specified requirements) passed legislature and should be signed mid-October. He also stated that 13 states currently have this, and 12 more states are on the docket. The City has reached out to both AT&T and Verizon to get the most value for our citizens. Mayor Pro Tem Martinez requested an update be provided to Council. Economic Development, Infrastructure, Budget&Technology Minutes 1 -2 September 18, 2017