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HomeMy WebLinkAbout10A - MIN JULY 3MINUTES OF, THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA JULY 3, 2018 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:09 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor P. DAVID BENAVIDES VICENTE SARMIENTO (5:11 P.M.) JOSE SOLORIO SAL TINAJERO (5:31 P.M.) JUAN VILLEGAS COUNCILMEMBERS Absent: MICHELE MARTINEZ, Mayor Pro Tem STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS - None COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:09 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: 1. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiators: Peter Brown, Liebert Cassidy and Steven V. Pham, Executive Director of Human Resources CITY COUNCIL MINUTES 1 JULY 3, 2018 10A-1 Employee Organizations: • Santa Ana Police Officers Association (POA) • Service Employees' International Union (SEIU) Part -Time 2. CONFERENCE WITH LEGAL COUNSEL --EXISTING LITIGATION pursuant to paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: a. Theresa Le v. City of Santa Ana, et al., Orange County Superior Court, Case No. 30-2018-00988425-C U -C R -CJ C b. Orange County Catholic Worker, et al. v. Orange County, et al.., U.S. District Court (Central District of California), Case No. SA CV 18 -0155 -DOC (KESx) 3. LIABILITY CLAIMS pursuant to section 54956.95 of the Government Code: Ronald Moreno v. City of Santa Ana; Workers' Compensation Appeals Board case # ADJ11089928 CLOSED SESSION REPORT - The City Attorney will report on any action(s) to be taken at the Regular Meeting which will begin immediately following the Closed Session Meeting. RECESSED CLOSED SESSION AND CONVENED TO THE REGULAR OPEN SESSION. AT 6:13 P.M. CITY COUNCIL MINUTES 2 10A-2 JULY 3, 2018 REGULAR OPEN MEETING CALLED TO ORDER ATTENDANCE PLEDGE OF ALLEGIANCE INVOCATION CEREMONIAL PRESENTATIONS COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 6:21 P.M. COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO JUAN VILLEGAS COUNCILMEMBERS Absent: MICHELE MARTINEZ, Mayor Pro Tem STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council MAYOR PULIDO ERIC WAKELING, POLICE CHAPLAIN • SPECIAL PRESENTATION — Orange County Water District General Manager, Mike Markus. • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Neutral Ground in recognition of the Summer Night Lights program and contributions to the community. • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER TINAJERO to Valley High School's High School Inc. Culinary Arts and Hospitality Academy in recognition of their 2018 Cooking Up Change National Championship. CITY COUNCIL MINUTES 3 JULY 3, 2018 10A-3 CLOSED SESSION REPORT - There was no reportable action. PUBLIC COMMENTS • Emily Perarza, representing Invest in Youth Coalition, opined city budget needs guidelines and asked City Council to think of Santa Ana youth. • Annie Lai, thanked City Council for including funding for legal defense for its residents. Opined service is a vital resource for Santa Ana residents and urged City Council to consider an increase in funding. • Jennifer Koh, opined legal defense funds are well spent and urgently needed. Urged City Council to consider an increase in funding. • Dulce Saavedra, addressed City Council to present guidelines in investing cannabis revenue in youth programs, and to request implementation of a youth advisory board. • Roberto Herrera, opined universal representation is needed and continued support will send a message that all are welcomed in Santa Ana. • George S., expressed concern over Delhi homeless shelter and need for additional law enforcement to patrol area. • Denise S., addressed City Council to request additional law enforcement to patrol area, nightly disturbance, and need to address homeless issue. Councilmember Sarmiento, expressed concern over Board of Supervisors approval of a three- year lease extension of the Delhi homeless shelter over City of Santa Ana's objections, need to address nuisance impact, and dangers created by facility. Councilmember Solorio, opined need to close Delhi facility, inappropriate location, and negative impact on community. Asked staff if $2.6 million in cannabis revenue indicated in budget is already earmarked for other purposes, how additional $5 million projection is earmarked and placed in the general fund, and voting requirements if item is a reserved fund. Opined anticipated cannabis revenue projection should count towards structural deficit. Councilmember Benavides, noted opportunity to negotiate with county to provide private patrol or Orange County Sherriff services in the area. Asked City Attorney if council can draft an ordinance or modify the original motion to ensure youth services fund is established to capture cannabis revenue and creation of new or enhanced services for youth services in community. City Attorney Carvalho, noted City Council can request reconsideration or direct staff to prepare an ordinance; projected cannabis revenue are not reserve monies. Deputy City Manager Cortez, noted $2.6 million is identified as a reserve appropriation for youth services and additional $2.6 million is reserve appropriation for enforcement in the general fund. Councilmember Villegas, recommend that a portion of cannabis revenue to be used for youth drug education. CITY COUNCIL MINUTES 4 JULY 3, 2018 10A-4 CONSENT CALENDAR ITEMS MOTION. Approved staff recommendations on Consent Calendar items 10A through 25C. MOTION: Sarmiento SECOND: Benavides VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez (1) ADMINISTRATIVE MATTERS MINUTES 10A. MINUTES FROM THE REGULAR MEETING OF JUNE 19, 2018 {STRATEGIC PLAN NO. 5, 1) — Clerk of the Council Office MOTION: Approved Minutes. ORDINANCES/SECOND READING In the event a Councilmember recorded an "abstention" before consideration of the following ordinance(s) on fust reading, such abstention will also be reflected in the minutes for second reading. 11A. ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA FOR THE ADOPTION OF CITY BUDGET FISCAL YEAR 2018-2019 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office Placed on first reading at the June 19, 2018 City Council meeting and approved by a vote of 5-0 (Benavides and Martinez absent). Published in the Orange County Reporter on June 22, 2018. MOTION: Placed ordinance on second reading and adopted. ORDINANCE NO. NS -2951 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO THE SEVERAL OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2018 CITY COUNCIL MINUTES 5 JULY 3, 2018 10A-5 BOARDS / COMMISSIONS / COMMITTEES 13A. APPOINT ROMAN A. REYNA TO THE PLANNING COMMISSION FOR A PARTIAL -TERM EXPIRING DECEMBER 11, 2018 AS THE WARD 4 REPRESENTATIVE {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Appointed Roman A. Reyna to the Planning Commission as the Ward 4 representative (replaces P. Bacerra). 13B. APPOINT LESLEY LUNA TO THE YOUTH COMMISSION FOR A PARTIAL - TERM EXPIRING DECEMBER 15, 2020 AS THE WARD 3 ALTERNATE REPRESENTATIVE {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION. Appointed Lesley Luna to the Youth Commission as an Alternate Member representing Ward 3 (replaces C. Duran). MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — None MOTION. Approved settlement as follow: LIABILITY CLAIMS pursuant to section 54956.95 of the Government Code: Ronald Moreno v. City of Santa Ana; Workers' Compensation Appeals Board case # ADJ11089928; settlement in the amount of $270,000 approved by 6-0 vote (Martinez absent). 19B. EXCUSED ABSENCES — None 19C. PUBLIC WORKS AGENCY STATUS OF PROJECTS - MONTHLY CAPITAL IMPROVEMENT PROGRAM EXECUTIVE REPORT FOR JUNE 2018 {STRATEGIC PLAN NO. 5, 11 —Public Works Agency The CIP Executive Summary Schedule is available on the City's website at hftp://www.santa-ana.oro/pwa/documents/ExecutiveMonthlyCI PJune2018. pdf MOTION: Received and filed. CITY COUNCIL MINUTES 10A-6 JULY 3, 2018 BUDGETARY MATTERS SPECIFICATIONS — PURCHASE OF EQUIPMENT AND SERVICES 22A. CONTRACT AWARD TO VANTAGE COMPANY FOR SANTA ANA POLICE DEPARTMENT ATRIUM PANEL RETROFIT PROJECT AND VARIOUS CONSTRUCTION PROJECTS - SPEC. NO. 18-051 {STRATEGIC PLAN NO. 6, 21 - Finance and Management Services Agency; and Police Department MOTION: 1. Authorized a one-time purchase and payment of purchase order to Vantage Company to reinforce the wood paneling in two atriums of the Police Department in an amount not to exceed $24,800, subject to non - substantive changes approved by the City Manager and City Attorney. 2. Established a blanket order contract with Vantage Company for the period of July 1, 2018 to June 30, 2019 for various construction projects for the Facilities Maintenance Department in an amount not to exceed $25,000, subject to non -substantive changes approved by the City Manager and City Attorney. PROJECTS/CHANGE ORDERS 23A. ACCEPT CONSTRUCTION COMPLETION FOR THE THORNTON PARK LIGHTING PROJECT (PROJECT NO. 16-2655) {STRATEGIC PLAN NO. 6, 1B & 1 G) — Public Works Agency MOTION: Accepted the Notice of Completion for the construction of the Thornton Park Security Lighting Project. 23B. ACCEPT CONSTRUCTION COMPLETION OF THE ALLEY IMPROVEMENTS IN THE EASTSIDE NEIGHBORHOOD PROJECT (PROJECTS 17-6891, 16- 6865,15-6842) {STRATEGIC PLAN NO. 6, 1 B & 1G) — Public Works Agency MOTION. Accepted the Notice of Completion for the construction of Alley Improvements in the Eastside Neighborhood project. 23C. ACCEPT CONSTRUCTION COMPLETION FOR THE EDINGER AVENUE AND WILLITS/SULLIVAN LANDSCAPE IMPROVEMENTS PROJECT (PROJECT NOS. 16-7521, 16-7522) {STRATEGIC PLAN NO. 6, 1G) — Public Works Agency CITY COUNCIL MINUTES 7 JULY 3, 2018 10A-7 MOTION. Accepted the Notice of Completion for the construction of the Edinger Avenue and Willits/Sullivan Landscape Improvements Project. 23D. APPROVE REVISED COST ANALYSIS FOR GRANT -FUNDED SAFE ROUTES TO SCHOOL ENHANCEMENTS AT WASHINGTON ELEMENTARY [PROJECT NO. 16-6872, ATPL-5063 (161)] {STRATEGIC PLAN NOS. 6, 1B & 1 G} — Public Works Agency MOTION: Approved a revised cost analysis for the grant -funded project, Safe Routes to School Enhancements at Washington Elementary, to utilize additional project grant funding available for traffic safety enhancements, resulting in a net increase of $146,000 in the project contingency budget. AGREEMENTS 25A. APPROVE A FOURTH AMENDMENT TO AGREEMENT WITH WESTBOUND COMMUNICATIONS FOR "READY OC" EMERGENCY PREPAREDNESS AND "IF YOU SEE SOMETHING, SAY SOMETHINGT"'" PUBLIC AWARENESS CAMPAIGNS {STRATEGIC PLAN NO. 1, 6}—Police Department MOTION: Authorized the City Manager and Clerk of the Council to execute a fourth amendment, extending the term with Westbound Communications, Inc. for consultant services in the continuance of the Ready OC Emergency Preparedness Campaign and the "If You See Something, Say SomethingTM11 Public Awareness Campaignfor the period of June 16, 2018 through September 30, 2018, subject to non -substantive changes approved by the City Manager and City Attorney. No additional funding is being requested, as funding needed to complete the additional milestones for the revised term are included in the current $1,500,000 agreement amount (AGMT. No. 2018-171). 25B. APPROVE AN AGREEMENT WITH STANTEC FOR A WATER AND SEWER COST OF SERVICE STUDY (NONGENERAL FUND) {STRATEGIC PLAN NO. 6, 1 H} — Public Works Agency MOTION: Authorized the City Manager and Clerk of the Council to execute an agreement with Stantec to conduct a water and sewer cost of service study for a three-year period beginning July 3, 2018 and expiring July 2, 2021, with provisions for up to two one-year renewal options exercisable by the City Manager and City Attorney, in an amount not to exceed $158,000, including a $138,912 project fee and a contingency of $19,088 for the term of the agreement, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-172). CITY COUNCIL MINUTES 8 JULY 3, 2018 10A-8 25C. APPROVE AN AGREEMENT WITH JONES & MAYER FOR SPECIAL LEGAL COUNSEL SERVICES RELATED TO MUNICIPAL LITIGATION (STRAGIC PLAN NO. 1, 3, 4, 51 — City Attorney's Office and Human Resources Department MOTION: Authorized the City Manager and the Clerk of the Council to execute an agreement with Jones & Mayer, Attorneys at Law, for legal services related to municipal law and litigation, for a three-year term from July 1, 2018 until June 30, 2021, for a maximum amount to be spent of $250,000 subject to non -substantive changes approved by the City Manager and the City Attorney (AGMT. No. 2018-173). **END OF CONSENT CALENDAR** OATH OF OFFICE ADMINISTERED BY CLERK OF THE COUNCIL HUIZAR TO ROMAN REYNA, PLANNING COMMISSIONER AND LESLEY LUNA, YOUTH COMMISSIONER, ALTERNATE REPRESENTATIVE REGULAR BUSINESS CALENDAR RESOLUTIONS 55A. GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 6, 2018; REQUESTING BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE CONSOLIDATE CITY OF SANTA ANA GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO ELECT CERTAIN MUNICIPAL OFFICERS AND SUBMISSION OF A PROPOSED CHARTER AMENDMENT REGARDING BY -WARD ELECTIONS FOR VOTER CONSIDERATION (STRATEGIC PLAN NO. 5, 1} — City Attorney and Clerk of the Council Office Continued from the June 5, 2018 and June 19, 2018 City Council Meetings by a 6-0 vote (Martinez absent). City Council noted that matter would be deferred until Closed Session discussion held on the California Voting Rights Act (CVRA) litigation matter. Clerk of the Council Huizar noted at the conclusion of the Closed Session meeting that matter suspended until July 17, 2018 City Council meeting. 55B. DIRECT STAFF TO PLACE PROPOSED CHARTER AMENDMENT REGARDING MODERNIZATION OF BOARDS AND COMMISSIONS, CAMPAIGN AND GIFT LIMITS - AND., QUALIFICATIONS OF THE FINANCE DIRECTOR ON THE NOVEMBER 6, 2018 ELECTION BALLOT; APPROVE CITY COUNCIL MINUTES 9 JULY 3, 2018 1OA-9 RESOLUTIONS CALLING FOR CONSOLIDATION OF ELECTION WITH THE COUNTY OF ORANGE; AUTHORIZE AND DESIGNATE CITY COUNCILMEMBERS TO FILE ARGUMENT AND REBUTTAL STATEMENTS; AND OTHER ELECTION RELATED ACTIONS (STRATEGIC PLAN NO. 5, 1) — City Manager, City Attorney and Clerk of the Council Office Councilmember Benavides, asked staff if item presented represents recommendations by council at previous meeting. Expressed support to give staff direction to move forward and place item on ballot. Councilmember Sarmiento, asked staff if additional language can be added and deadline to introduce for council consideration. Clerk of the Council Huizar, noted August 10, 2018 is the legal deadline and need to identify councilmembers if more than three wish to sign or author an argument. Informed council item for consideration only includes removal of boards and commissions from charter to municipal code, campaign contribution and gift limits to the municipal code, and finance director qualifications to be consistent with all other directors. Councilmember Solorio, noted item only addresses three items previously presented. Asked staff if item only strikes language pertaining to boards and commissions, gifts, donations, and state law conflicts. City Attorney Carvalho, noted items objected to were removed, any items of substance to be revised would require item to be placed on the agenda for the next meeting, and previous council direction to staff to include any benign items from previous list. MOTION: Directed staff to move forward with placing modernization of Charter provisions as provided for in staff report, and approve actions accordingly. 1. Adopted resolutions. RESOLUTION NO. 2018-046 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CALLING FOR AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF SANTA ANA ON NOVEMBER 6, 2018 TO ELECT CERTAIN MUNICIPAL OFFICERS AND FOR SUBMISSION TO THE VOTERS OF THE QUESTION OF WHETHER THE CITY CHARTER SHOULD BE AMENDED TO MODERNIZE AND REMOVE OUTDATED LANGUAGE TO REFLECT CHANGES OR CONFLICTS IN THE CITY OR STATE LAW CONCERNING GIFTS AND CAMPAIGN CONTRIBUTIONS AND DESIGNATED CITY FUNDS; CREATE CONSISTENCY IN Wo -THE) iMUNICIPAL CODE REGARDING BOARDS . AND COMMISSIONS; AND MOVE THE QUALIFICATIONS FOR THE CITY COUNCIL MINUTES 10 JULY 3, 2018 10A-10 FINANCE DIRECTOR TO THE MUNICIPAL CODE AND REQUESTING THE BOARD OF SUPERVISORS OF ORANGE COUNTY CONSOLIDATE THE CITY'S GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION fl. RESOLUTION NO. 2018-047 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SETTING FORTH THE LANGUAGE OF A BALLOT TITLE REGARDING WHETHER THE CITY CHARTER SHOULD BE AMENDED TO MODERNIZE AND REMOVE OUTDATED LANGUAGE TO REFLECT CHANGES OR CONFLICTS IN THE CITY OR STATE LAW CONCERNING GIFTS AND CAMPAIGN CONTRIBUTIONS AND DESIGNATED CITY FUNDS; CREATE CONSISTENCY IN THE MUNICIPAL CODE REGARDING BOARDS AND COMMISSIONS; AND MOVE THE QUALIFICATIONS FOR THE FINANCE DIRECTOR TO THE MUNICIPAL CODE TO BE INCLUDED ON THE BALLOT FOR THE 2018 GENERAL ELECTION TO BE HELD ON NOVEMBER 6, 2018 iii. RESOLUTION NO. 2018-048 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING WRITTEN ARGUMENTS FOR PROPOSED AMENDMENTS TO THE SANTA ANA CHARTER REGARDING WHETHER THE CITY CHARTER SHOULD BE AMENDED TO MODERNIZE AND REMOVE OUTDATED LANGUAGE TO REFLECT CHANGES OR CONFLICTS IN THE CITY OR STATE LAW CONCERNING GIFTS AND CAMPAIGN CONTRIBUTIONS AND DESIGNATED CITY FUNDS; CREATE CONSISTENCY IN THE MUNICIPAL CODE REGARDING BOARDS AND COMMISSIONS; AND MOVE THE QUALIFICATION FOR THE FINANCE DIRECTOR TO THE MUNICIPAL CODE. a. Designated Councilmembers Villegas, Solorio and Benavides to author an Argument and Rebuttal statement. b. Directed City Attorney to prepare Impartial Analysis. C. Directed Clerk of the Council to publish legal notices as required by law. MOTION: Benavides SECOND: Sarmiento VOTE: AYES: NOES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) None (0) . Y..... . CITY COUNCIL MINUTES 11 JULY 3, 2018 10A-11 ABSTAIN: ABSENT: None (0) Martinez (1) 55C. DIRECT STAFF TO PLACE AN ADD ON SALES AND USE TAX MEASURE FOR MUNICIPAL SERVICES ON THE NOVEMBER 6, 2018 GENERAL ELECTION BALLOT FOR VOTER CONSIDERATION; SELECTION OPTION AND ADOPT RESOLUTION CALLING FOR CONSOLIDATION OF ELECTION WITH THE COUNTY OF ORANGE; AUTHORIZE AND DESIGNATE CITY COUNCILMEMBER(S) TO FILE ARGUMENT AND REBUTTAL STATEMENTS; AND RELATED ACTIONS (STRATEGIC PLAN NO. 5, 1) — City Manager's Office Jorge Garcia, Assistant to the City Manager presented staff report. Background • March 20, 2018- City Council Authorized staff to enter into agreements to evaluate revenue generating options • May 1, 2018- City Enters into Agreement with MuniServices — Contract Covers two tax measures: Sales Tax and Adult Use & Commercial Cannabis Tax —Additional Consultant Team • Strategy Consultant- GrassrootsLabs (Mike Madrid) • Polling Consultant- FM3/Fairbanks, Maslin, Maullin, Metz (John Fairbanks) What is a sales and use tax? • Definition — The sales tax is imposed on retail transactions. It applies to all retail salesof tangible personal property. The use tax Is Imposed on consumers of tangible personal property that Is used, consumed, or stored. — Sales tax is the common term used to describe both. -- I4,,x' 'I'v it'i," -Rale J'urud1a7wn Purpose US% slate Coes to Stab's Gawal Fund 0.25% state Goes to SlaW5 Gsaeral Fund 0.80% state Goes to La al Fublk Barer/ fund b ssppost Irel criminal stce acaNEes Owl 0.64% state Goes to local 7moenao Fuad 1e support Ictal keeath arA social seNm Programs 1991 Real amen 1.00% stab Goes to Local Ro, a Favid 011 1.25% local % Goes to cant/ portercn f%rids EaSons % Coes m cay a county 0.50% local lttasuxe Mtransportaten Total' 7.70% state+Local Total slatenke Bas= sales and Use Tax Rale Pi iL CITY COUNCIL MINUTES 12 JULY 3, 2018 10A-12 What is Sales and Use Tax NOT Applicable to? Five General Exemption Categories — Necessities of Life • Food products (unless heated), purchases made with CALFRESH Benefits, health related, housing (i.e. utilities, rental of furnishings) — General Public Benefit • Alternate energy, museums and public art exhibits, non -profits, out-of-state military purchases — Industry Benefit • Transportation related Industry (i.e. motor vehicle fuel, air carriers, entertainment Industry) — Exclusions by Definition • Admission charges, sales price/gross receipts, services — Others Exemptions, Exclusions, or Credits Why should Santa Ana consider an add on sales and use tax? • Placing the measure on the ballot allows voters to decide what level of service they would like • A service level deficit currently exists • Improve police response times and address crime • Address homelessness related concerns • Address deferred maintenance • Provide quality youth services Additional needs and priorities • Quality of Life Team & Homeless Enterprise Fund Compliance =------ -- -- • More Youth Programing • Worker's Compensation ---------------------- ------------------------= • Funding to Enhance Economic Dev. f • Liability Increases • Additional Police Officer Recruitments • City Hall Seismic Retrofit • Maintain Reserve Policy Funding levels I • SARTC Improvements • Facility Deferred Maint. & Vehicles•PERS Challenges • InformationTechnology Infrastructure -- --- - -- - - -- -- -- .- ------ - -_ - -- ---' CITY COUNCIL MINUTES 13 JULY 3, 2018 10A-13 Status Quo Forecast `Addressed through the use of S10.2M in one-time fund ingsources 100% Success Rate in 2016 in Orange County Add On Sales Tax Measures • Voters approved local sales and use tax in five Orange County cities • Other cities are evaluating similar options for 2018 How will consumers respond? Reaffirmed in 2026 • Consumers do not generally comparison shop for better sales tax rates —They prefer to shop local • Costs to go beyond city limits generally not considered worth the extra effort • Historically passage of add on sales tax measures has not led to a decline In sales tax revenue especially if it is clear how the additional tax revenue will be spent (i.e. homelessness, public safety, quality of life, and infrastructure) . ..� i J �11Vi•� ui �.. CITY COUNCIL MINUTES 14 JULY 3, 2018 1 OA -14 Fountain Volley 1% W Palma 1% ``'Stanton • 4VCStmInSLCt J �. 1% M 1% to Habra 0.50% Reaffirmed in 2026 • Consumers do not generally comparison shop for better sales tax rates —They prefer to shop local • Costs to go beyond city limits generally not considered worth the extra effort • Historically passage of add on sales tax measures has not led to a decline In sales tax revenue especially if it is clear how the additional tax revenue will be spent (i.e. homelessness, public safety, quality of life, and infrastructure) . ..� i J �11Vi•� ui �.. CITY COUNCIL MINUTES 14 JULY 3, 2018 1 OA -14 M • Poll Conducted by FM3 June 7-17, 2018 — 642 respondents by Santa Ana voters — 95% confidence interval with t 4% margin of error — Poll conducted via telephone and online survey via email • Poll questions prepared by team of consultants • Draft/Preliminary Results received by CAO June 20t" Councilmember Questions from June 19, 2018 • Sales Tax Revenue at different intervals — Y = $20 million —Y4 _ $30 million — i = $40 million — 1 % = $60million • Were other options evaluated? • Staff recommendation based on: — Timing, probability of success, and funding opportunity Councilmember Questions from June 19, 2018 • Sunset Option — Typically used to finance fixed project or capital Infrastructure — Typically used to address temporary or term specific needs — Can polarize electorate by temporary providing services and having them go away — May require re -authorization by electorate • Addressing Economic Development & Development Impact — Branding Study. Business Attraction and Retention, Shop Local Program, Financial Incentives, Site Selection, Small Business Development, Jab Training through WorkCenter — Planning & Building Aprency has begun Including a section titled "Economic Development Benefits' on the Planning Commission staff reports. The objective is to Identify the economic benefits for each new development. The economic benefits of each development projects will vary dependingon the Jpe of use, but generally the reports will capture estimates of: new jobs, projected sa es tax revenue, and the Increases in property valuations, infrastructure impacts, and core service impacts. CITY COUNCIL MINUTES is JULY 3, 2018 10A-15 Councilmember Questions from June 19, 2018 (cont'd) • Analysis on Housing Impact — The City imposes impact fees on land development projects to mitigate general impacts to city Infrastructure, such as parks, library, transportation, sewer, and storm drainage systems. The primary objective of a development Impact fee (DIF) program Is to ensure that new development pays the capital costs associated with growth. — The City Is completing a study is to establish the Infrastructure expansion that Is needed to mitigate general impacts from anticipated land development projects, and to quantify those mitigations Into dollars. Funds collected will be used to pay for increasing the infrastructure's capacity in support of development. — The fees are limited to fair share proportional costs for capital and may not be used for Infrastructure maintenance. Council member Questions from June 19, 2018 (cont'd) • What other City ballot measure are being considered — Current Pending Items • owcouncilmember Elections • Adult Use& Commercial Cannabis Tax • CharterAmendments • District Elections • What other Impacts to rate payers are pending — November Election • SAUSDpotential school bond — Other considerations • PoseldonDesallnationPlant • Gas Tax Repeal Ballot Initiative • Electricity, Refuse, Water, and Sevier rates • Reduction of Sanitation Rates What will the revenue be used for? • Quality of Life Team & Homeless , • Enterprise Fund Compliance r • More Youth Programing • Worker's Compensation • Funding to Enhance Economic Dev. ; • Liability Increases • Additional Police Officer Recruitments I • City Hall Seismic Retrofit • Maintain Reserve Policy Funding levels I • SARTC Improvements • Facility Deferred Maint. & Vehicles I • PERS Challenges • Information Technology Infrastructure Other City Council and Community Priorities CITY COUNCIL MINUTES 16 JULY 3, 2018 10A-16 Ensuring Fiscal Transparency • Oversight Board • Annual Independent Audit • Disclosure of expenditures Councilmember Villegas expressed his support on item to maintain a level of service. The following spoke on the matter: • Alexis Teodoro, opined need to have conversation on how to use proposed tax revenue, need to use tax in a manner that will benefit the residents in an efficient way, and proposed a co -sharing leadership in the decision making process over tax measure revenue. • Carolyn Cavecche, CEO and President of Orange County Tax Payer's Association, opined raising taxes to meet financial obligations is hard, tax increase will hurt businesses and residents, and sales tax increases is a regressive tax. Requested City Council to agendize a charter amendment that would bring City of Santa Ana into compliance with proposition 62. • Peter Whittingham, on behalf of Orange County Auto Dealers Association, expressed concern over sales tax increase. Opined auto dealers have experience a decrease in sales after a sales tax increase is imposed, sales tax increase would place Santa Ana dealerships at a competitive disadvantage, and offered shop local rebate program idea to help offset regressive nature of a tax increase. • Ivan Enriquez, addressed City Council to request consideration of working class residents when discussing tax revenue and to provide oversight. Council discussion ensued. Councilmember Villegas, noted there are over 189 vacancies in the city, 61 funded police vacancies, and reduced services as a result of vacancies. Opined insufficient amount of tax revenue to maintain the same level of services, consequences of not passing tax increase, and responsibility of council to keep city safe. Councilmember Tinajero, need to address structural deficit, to promote businesses, promote revenue, and opportunity to have residents to vote on tax measure. Noted City of Santa Ana is one of the few cities with a large population and a small police force. Asked council to consider an eight-year limit on tax measure and to City Attorney Carvalho if council can support placing a tax measure on the ballot without choosing available options. CITY COUNCIL MINUTES 17 JULY 3, 2018 10A-17 Councilmember Solorio, expressed opposition to item. Opined insufficient amount of outreach has been conducted, sales tax increases are regressive, and tax increase affects poor and working class. Asked City Attorney to clarify amount of votes required. City Attorney Carvalho, noted four votes are required to adopt item and place on ballot, five vote requirement only applies to general law cities, and council support to place tax measure on ballot without choosing specific option would be largely symbolic and would require adoption before resolution can take effect. Mayor Pulido, commented that other cities have higher tax rates, eight-year provision would be a shock to the system and may have devastating results. Expressed support to form an ad hoc committee to create better options including a "Buy Santa Ana Campaign". City Manager Godinez, indicated that 12 -year horizon provision was included to address potential economic downturn and expressed interest from council. Councilmember Sarmiento, stated that measure to increase services and not to approve pay raises; need to change fiscal and reserve policy. Councilmember Benavides, concerned with financial situation for the next council and opined budget chart does not paint a positive fiscal picture. MOTION. Support a 1% add on sales and use tax and directed staff to bring back matter to the next City Council Meeting to either ratify position or select other option provided on the Santa Ana Neighborhood Safety and Essential City Services Protection Measure. MOTION: Tinajero SECOND: Villegas VOTE: AYES: Pulido, Sarmiento, Tinajero, Villegas (4) NOES: Solorio (1) ABSTAIN: Benavides (1) ABSENT: Martinez (1) **Mayor Pulido and Councilmember Sarmiento abstained on Agenda Item 551): Mayor Pulido's campaign consultant is active in the cannabis industry. Councilmember Sarmiento is legal counsel for public agencies and assists in drafting cannabis policies. CITY COUNCIL MINUTES 18 10A-18 JULY 3, 2018 55D. DIRECT STAFF TO PLACE A PROPOSED COMMERCIAL CANNABIS BUSINESS LICENSE TAX MEASURE FOR VOTER CONSIDERATION ON THE NOVEMBER 6, 2018 BALLOT; ADOPT RESOLUTION CALLING FOR CONSOLIDATION OF ELECTION WITH THE COUNTY OF ORANGE; AUTHORIZE AND DESIGNATE CITY COUNCILMEMBERS TO AUTHOR AND FILE AN ARGUMENT AND REBUTTAL STATEMENTS; AND RELATED ACTIONS {STRATEGIC PLAN NO. 5, 1} — City Manager's Office Councilmember Solorio, asked if item requires four or five votes, if members of the Santa Ana Cannabis Association were consulted, and if support for item was expressed. Directed staff to strike "reserve' reference from page 55D regarding enforcement and youth services to avoid confusion. Assistant to the City Manager Garcia, noted supportive communication with Santa Ana Cannabis Association, recommendation made as to cap amounts, council authority to increase or decrease amounts, and addition of language to ordinance to allow council to make administrative changes as the industry changes. Councilmember Benavides, asked if item is specific to commercial and adult use cannabis and council ability to adjust tax rate. Directed staff to have adult use and commercial cannabis funds allocated to youth services, enforcement, and to general fund. Clerk of the Council Huizar, noted item allows for up to five councilmembers to file arguments and need to identify participating councilmembers. MOTION. Directed staff to move forward with placing a commercial cannabis business license tax measure on the ballot as provided for in staff report, and approve actions accordingly. 1. Adopted resolution. RESOLUTION NO. 2018-049 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CALLING FOR A GENERAL MUNICIPAL ELECTION ON NOVEMBER 6, 2018 AND THE PLACEMENT ON THE BALLOT OF A MEASURE FOR THE NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE REGARDING A COMMERCIAL CANNABIS BUSINESS LICENSE TAX AND REQUESTING THAT THE ORANGE COUNTY BOARD OF SUPERVISORS CONSOLIDATE THE CITY'S GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO TAKE PLACE ON NOVEMBER 6, 2018; AND PROVIDING FOR THE FILING OF ARGUMENT AND REBUTTAL STATEMENTS 2. Authorized the filing of Argument and Rebuttal Statements. CITY COUNCIL MINUTES 19 JULY 3, 2018 10A-19 a. Designated Councilmembers Benavides, Tinajero, Villegas and Solorio to author an Argument and Rebuttal statement. 3. Directed City Attorney to prepare Impartial Analysis. 4. Directed Clerk of the Council to publish legal notices as required by law. MOTION: Villegas SECOND: Tinajero VOTE: AYES: Benavides, Solorio, Tinajero, Villegas (4) NOES: None (0) ABSTAIN: Pulido, Sarmiento (2) ABSENT: Martinez (1) ADMINISTRATIVE MATTERS - BUSINESS .M •II: RECEIVE AND FILE THE REAL PROPERTY DISPOSITION ADMINISTRATIVE POLICY {STRATEGIC PLAN NO. 3, 5A) - Community Development Agency Continued from the May 1, 2018 City Council meeting by a vote of 5-0 (Martinez and Pulido absent) and from the June 5, 2018 City Council meeting by a vote of 6-0 (Martinez absent). MOTION., Staff requested continuation of matter. MOTION: Benavides SECOND: Pulido VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez (1) LEAGUE OF CALIFORNIA CITIES VOTING DELEGATE {STRATEGIC PLAN NO. 5, 1) — Clerk of the Council Office CITY COUNCIL MINUTES 20 JULY 3, 2018 1 OA -20 MOTION. Designated Mayor Pro Tem Michele Martinez as a voting delegate for the League of California Cities' Annual Conference's General Assembly scheduled for September 14, 2018. MOTION: Solodo VOTE: AYES: NOES: ABSTAIN ABSENT: PUBLIC HEARINGS SECOND: Tinajero Benavides, Pulido, Sarmiento, Solorio, Tinajero (5) None (0) None (0) Martinez, Villegas (2) 75A. PUBLIC HEARING — RECOVERY OF UNCOLLECTED COSTS FOR ABATEMENT OF DANGEROUS AND ABANDONED BUILDINGS AND APPROVAL OF APPROPRIATION ADJUSTMENT {STRATEGIC PLAN NO. 5, 4) - Planning and Building Agency Legal Notice published in the Orange County Reporter on June 22, 2018 and notices mailed on June 21, 2018. Mayor Pulido opened the Hearing. There were no speakers and the Hearing closed. MOTION. 1. Adopted resolution. RESOLUTION NO. 2018-050 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONFIRMING THE COSTS OF SECURINGAND/OR DEMOLITION OF VARIOUS STRUCTURES DECLARED TO BE PUBLIC NUISANCES; MAKING, CONFIRMING AND LEVYING ASSESSMENTS FOR SUCH COSTS; AND ORDERING SUCH COSTS TO BE RECORDED WITH THE ORANGE COUNTY RECORDER'S OFFICE 2. Approved an appropriation adjustments. (Requires five affirmative votes) APPROPRIATION ADJUSTMENT NO. 2019-003 - Recognizing $28,332.87 in the Special Repair and Demolition Fund revenue account for fiscal year 2018-19 and appropriating the same in the expenditure account. CITY COUNCIL MINUTES 21 JULY 3, 2018 1 OA -21 MOTION: Benavides SECOND: Sarmiento VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez, Villegas (2) 75B. PUBLIC HEARING — RECOVERY OF UNCOLLECTED COSTS FOR WEED ABATEMENT PUBLIC NUISANCES FOR FISCAL YEAR 2017-2018 {STRATEGIC PLAN NO. 5, 4E) — Public Works Agency Legal Notice published in the Orange County Reporter on June 22, 2018 and notices mailed on June 21, 2018. Mayor Pulido opened the Hearing. There were no speakers and the Hearing closed. MOTION: Adopted resolution. RESOLUTION NO. 2018-051 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONFIRMING THE COSTS OF WEED, RUBBISH, AND GARBAGE ABATEMENT; MAKING, CONFIRMING, AND LEVYING ASSESSMENTS FOR SUCH COSTS; AND ORDERING A COPY OF THE REPORT THEREOF TO BE FILED WITH THE COUNTY AUDITOR, ASSESSOR, AND TAX COLLECTOR MOTION: Benavides SECOND: Solorio VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez, Villegas (2) COUNCIL AGENDA ITEM 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. DISCUSS AND DIRECT STAFF TO PREPARE AN EMERGENCY�' ORDINANCE ON PERMANENT SUPPORTIVE HOUSING AN011JEW1`IFY!"'" CITY COUNCIL MINUTES 22 JULY 3, 2018 1 OA -22 POTENTIAL SITES; AND AN EMERGENCY ORDINANCE AND IDENTIFY KEY SITES FOR MOTEL CONVERSION (Mayor Pro Tem Martinez) Continued from the June 5, 2018 City Council Meeting by a 6-0 vote (Martinez absent) and from the June 19, 2018 City Council Meeting by a 4-0 vote (Martinez, Sarmiento, and Tinajero absent). MOTION. Continued matter to allow Mayor Pro Tem Martinez to present item. MOTION: Sarmiento SECOND: Benavides VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez, Villegas (2) RECESSED CITY COUNCIL MEETING AT 8:58 P.M. TO THE HOUSING AUTHORITY MEETING AND RECONVENED WITH SAME MEMBERS PRESENT AT 8:59 P.M. COMMENTS PUBLIC COMMENTS • Dale Helvig, requested Councilmember Solorio to take a position to support Park Santiago residents against 2525 Main Street development. o Councilmember Solorio, asked City. Attorney Carvalho if it is appropriate for councilmembers to take a position before environmental review is completed. o City Attorney Carvalho, advised councilmembers who wish to participate in the decision process on 2525 Main Street development to not formulate a position on the issue or risk a violation of due process. • Steve Gorgone, opined 2525 Main Street development is not a solution to housing crises, negative impact on surrounding areas, any new development must add beauty to the neighborhood. • Miguel Hernandez, expressed support for conversion to district elections and need for change as soon as possible. • Rory Kirk, express concern over 2525 Main Street development; Park Santiago would be negatively impacted if development is approved. • Sue McDonald, opined Park Santiago is special because of its history, past city efforts to preserve neighborhood, and negative impact to neighborhood. ; - CITY COUNCIL MINUTES 23 JULY 3, 2018 1 OA -23 • Perla Dionicio, expressed concern over American History Walk event attendance by groups that have performed atrocious acts of violence against immigrant groups. Read social medial post to City Council from Committee Member Moreno stating the need to have I.C.E. based in Santa Ana and need to deport all illegal aliens. Asked City Council to remove Moreno as a committee member. • Ivan Enriquez, expressed concern over hate groups attendance at city sponsored American History Walk event, Committee Member Moreno's invitation of hate groups, and public safety in general. o Councilmember Tinajero, expressed concern over safety of individual and need to respect residents. • Billy Leigh, expressed opposition to 2525 Main Street development and opined need to conduct environmental impact and light pollution study. • Dan Escamilla, informed City Council of police officer misconduct resulting in revocation of his conceal weapon permit, intent to file legal tort claim against the city, and pending internal investigation. • Laura Perez, expressed concern over hate group attendance at American History Walk event and Committee Member Moreno's statements indicating her membership with the Minuteman group. Opined future volunteers should be screened and live scanned to ensure they have a clean background and need to have event organized by the youth program or local high school students. RECESSED CITY COUNCIL TO RECONVENE TO THE CLOSED SESSION MEETING AT 9:28 P.M. THERE WAS NO REPORTABLE ACTION. ADJOURNED - 10:50 P.M. - The next meeting of the City Council is scheduled for Tuesday, July 17, 2018 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.. Maria D. Huizar, Clerk of the Council FUTURE AGENDA ITEMS • Policy on Use of General Reserve and Enterprise Funds • Amendment to Metro East Mixed -Use Overlay District • Jail Reuse Study CITY COUNCIL MINUTES 24 JULY 3, 2018 1 OA -24