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HomeMy WebLinkAbout FULL PACKET_2018-12-4MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA NOVEMBER 20, 2018 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:10 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor (5:12 p.m.) MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO (5:11 p.m.) SAL TINAJERO (5:17 p.m.) JUAN VILLEGAS COUNCILMEMBERS Absent: NONE 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 5:11 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: CITY COUNCIL MINUTES 10A-1 NOVEMBER 20, 2018 a. 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) b. City of Santa Ana v. County of Orange, et al., (Cross -Complaint), U.S. District Court (Central District of California), Case No. SA CV 18 -0155 - DOC (KESx) c. Theresa Le v. City of Santa Ana, et al., Orange County Superior Court, Case No. 30-2018-00988425-CU-CR-CJC 2. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiators: Executive Director of Human Resources, Steven V. Pham, and Peter Brown of Liebert Cassidy Whitmore Employee Organizations: Santa Ana Police Officers Association (POA), Service Employees' International Union (SEIU) Full -Time Employees 3. PUBLIC EMPLOYEE - EVALUATION OF PERFORMANCE pursuant to Section 54957(b)(1) of the Government Code: Title: City Manager CLOSED SESSION REPORT — See Agenda Item 19A for reportable action. ADJOURNED CLOSED SESSION AND CONVENED TO THE REGULAR OPEN SESSION AT 6:37 P.M. CITY COUNCIL MINUTES 2 NOVEMBER 20, 2018 10A-2 REGULAR OPEN SESSION CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 6:40 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO JUAN VILLEGAS COUNCILMEMBERS Absent: NONE STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PLEDGE OF ALLEGIANCE MAYOR PULIDO INVOCATION JACK ABEELEN, POLICE CHAPLAIN CEREMONIAL PRESENTATIONS — ITEMS TAKEN OUT OF ORDER • CERTIFICATES OF RECOGNITION presented by MAYOR PRO TEM MARTINEZ recognizing November 1 st as World Vegan Day to The Gypsy Den, Nieves Exquisitas, Taqueria EI Zamorano, Taqueria Venganza, and Vegan by Victoria's for their contributions to the community. • CERTIFICATE OF RECOGNITION presented by MAYOR PULIDO to Nicholas Academic Center for their 10 Year Anniversary and their contributions to the community. • PROCLAMATION presented by COUNCILMEMBER SARMIENTO recognizing Saturday November 24, 2018 as Small Business Saturday to Austin Hardwoods and for their contributions to the community. CITY COUNCIL MINUTES 3 NOVEMBER 20, 2018 10A-3 • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Achievement Institute of Scientific Studies for their contributions to the community. CLOSED SESSION REPORT — No reportable action. PUBLIC COMMENTS — (Non-agendized items take out of order.) • Dale Helvig, expressed concern over lack of transparency and limited time to review Environmental Impact Report. Opposed to project. • Ilya Tseglin, addressed City Council to request assistance in addressing assault on son by group home staff and son's health. • Juan Gonzalez, representing Southern California Gas Company, expressed concern of State legislature to require mandatory use of electrical services; support of providing the consumer the options. CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on the following Consent Calendar items10A through 29B, with the following modifications: • Mayor Pro Tem Martinez pulled Agenda Items 19E and 25E for separate discussion and dissented on Agenda Item 25G. MOTION: Benavides SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) ADMINISTRATIVE MATTERS MINUTES Pulido, Sarmiento, Solorio, 10A. MINUTES FROM THE REGULAR MEETING OF OCTOBER 16, 2018 {STRATEGIC PLAN NO. 5, 11 — Clerk of the Council Office MOTION: Approve Minutes. CITY COUNCIL MINUTES 4 NOVEMBER 20, 2018 10A-4 10B. MINUTES FROM THE ADJOURNED MEETING OF OCTOBER 30, 2018 {STRATEGIC PLAN NO. 5, 1) — Clerk of the Council Office MOTION: Approve Minutes. ORDINANCES/SECOND READING In the event a Councilmember recorded an "abstention" before consideration of the following ordinance(s) on first 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 AMENDING CERTAIN SECTIONS OF CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE (8-7,8-1982, 8-1985, 8-1986) CERTIFICATE OF OCCUPANCY AND FORECLOSURE REGISTRY PROGRAM {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office Placed on first reading at the October 16, 2018 City Council meeting and approved by a vote of 6-0 (Tinajero absent). Published in the Orange County Reporter on November 9, 2018. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS -2957 - AN ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 8 OF THE CITY OF SANTA ANA MUNICIPAL CODE INCLUDING SECTION 8-7 (VIOLATION AND PENALTY) AND 8-9 (REVOCATION AND APPEAL) AND SECTIONS 8-1982, 8-1985, AND 8- 1986 OF THE FORECLOSURE REGISTRY PROGRAM NOTICE OF PUBLIC HEARINGS 12A. DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT — INTENT TO LEVY ASSESSMENT FOR 2019 {STRATEGIC PLAN NO. 3, 4F) — Community Development Agency Approved by the Community Redevelopment and Housing Commission on October 24, 2018 by a vote of 6-0. MOTION: 1. Approve the 2019 Assessment Report for the Downtown Santa Ana Business Improvement District (BID), which is administered by two organizations - the Santa Ana Business Council and Downtown Incorporated. CITY COUNCIL MINUTES 10A-5 NOVEMBER 20, 2018 2. Adopt a resolution. RESOLUTION NO. 2018-079 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO LEW AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT FOR THE YEAR 2019 3. Set a public hearing for Tuesday, December 18, 2018. BOARDS / COMMISSIONS / COMMITTEES 13A. COUNCIL COMMITTEES —AGENDA AND MINUTES {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Receive and file. NAME MEETING DATE Legislative Affairs, Ethics and Transparency Committee 3/28/2018 and 8/15/2018 Economic Development Infrastructure, Budget and Technology Committee 10/8/2018 13B. NOMINATE PATRICIA LIMON TO SERVE ON THE COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION AS THE SANTA ANA UNIFIED SCHOOL DISTRICT STUDENT REPRESENTATIVE FOR A PARTIAL -TERM EXPIRING DECEMBER 8, 2020 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Appoint Patricia Limon to the Community Redevelopment and Housing Commission for a partial -term expiring December 8, 2020 as the Student Representative. 13C. NOMINATE LAWRENCE KLEIN TO SERVE ON THE ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMITTEE AS THE WARD 3 REPRESENTATIVE {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Appoint Lawrence Klein to the Environmental And Transportation Advisory Committee for a partial -term expiring December 8, 2020 as the Ward 3 Representative (replaces B. Bauer). FINAL TRACT MAP NOTIFICATIONS CITY COUNCIL MINUTES 6 NOVEMBER 20, 2018 10A-6 Pursuant to Section 34-183 of the Santa Ana Municipal Code, the City Engineer has received this Final Map and is in the process of reviewing the map for final approval. The City Engineer shall approve or disapprove this map within 10 days of the City Council Meeting. 17A. CERTIFICATION OF APPROVAL BY CITY ENGINEER OF FINAL PARCEL MAP NO. 2016-120 (2001 W. TRASK AVENUE) {STRATEGIC PLAN NO. 3, 2) - Public Works Agency MOTION: Receive and file. MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — NONE 19B. EXCUSED ABSENCES — NONE 19C. STRATEGIC PLAN MONTHLY REPORT FOR OCTOBER 2018 {STRATEGIC PLAN NO. 5, 11 - City Manager's Office The Strategic Plan Monthly Reports are available on the City's website at: https://www.santa-ana.org/cm/creating-our-future-strategic-planni nq- rop cess MOTION: Receive and file. 19D. PUBLIC WORKS AGENCY STATUS OF PROJECTS - MONTHLY CAPITAL IMPROVEMENT PROGRAM EXECUTIVE REPORT FOR OCTOBER 2018 {STRATEGIC PLAN NO. 5, 1) — Public Works Agency The CIP Executive Summary Schedule is available on the City's website at https://www.santa-ana.org/sites/default/files/2018- 11/201810 cip schedule.pdf MOTION: Receive and file. 19E. AUTHORIZATION TO NEGOTIATE AN EXCLUSIVE NEGOTIATING AGREEMENT WITH CARIBOU INDUSTRIES FOR RENOVATION AND REUSE OF THE YMCA PROPERTY LOCATED AT 203-205 W. CIVIC CENTER DRIVE (STRATEGIC PLAN NO. 3, 5A) — Community Development Agency Mayor Pro Tem Martinez indicated item was discussed and thoroughly reviewed at Economic Development, Infrastructure, Budget and CITY COUNCIL MINUTES 7 NOVEMBER 20, 2018 10A-7 Technology Committee (EDBIT); provided City Council with recommendation and requested direction. Councilmember Benavides echoed Mayor Pro Tem Martinez' comments and motioned to enter into an Exclusive Negotiations Agreement with Caribou. Motion by Benavides died for lack of second. Councilmember Villegas motion to continue matter for 30 days, seconded by Mayor Pulido. Councilmember Sarmiento requested clarification with selection process and the criteria used in determining the final outcome. Noted prior agreement with St. Joseph exhausted time due to inability to acquire necessary funding. Executive Director of Community Development Agency, Steven Mendoza, noted that all four proposals were reviewed and all interviewed, and ultimate decision by Committee to select Caribou Industries. Councilmember Sarmiento, requested that delays be avoided and milestones instituted to move project forward. In support of an economic development driven project that would benefit the community. Councilmember Solorio is supportive of approving recommended action today or considering item in 30 days: shared Caribou Industries' past records in rehabbing various older buildings, consideration of economic cycle, and potential to reduce blight in area. MOTION: Continue consideration of matter to the December 18, 2018 City Council Meeting (30 days). MOTION: Villegas VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Pulido Pulido, Martinez, Sarmiento, Solorio, Tinajero, Villegas (5) Benavides (1) None (0) None (0) 19F. QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES JULY 2018 — SEPTEMBER 2018 {STRATEGIC PLAN NO. 5, 3) — Community Development Agency CITY COUNCIL MINUTES 8 NOVEMBER 20, 2018 10A-8 Recommended action approved by the Community Redevelopment and Housing Commission on October 24, 2018 by a vote of 7-0. MOTION: Receive and file. 19G. HOMELESS SERVICES QUARTERLY REPORT FOR JULY 2018 THROUGH SEPTEMBER 2018 (STRATEGIC PLAN NOS. 1, 6; 5, 4; 5, 6) — Community Development Agency MOTION: Receive and file. 19H. QUARTERLY REPORT OF INVESTMENTS AS OF SEPTEMBER 30, 2018 {STRATEGIC PLAN NO. 4, 1D) — Finance and Management Services Agency MOTION: Receive and file. 191. QUARTERLY REPORT OF CONTRACTS VALUED AT $25,000 OR LESS ENTERED INTO BY THE CITY MANAGER AS PERMITTED BY CHARTER SECTION 421 {STRATEGIC PLAN NO. 4, 1} — Finance and Management Services Agency MOTION: Receive and file Quarterly Report of Contracts entered into between July 1, 2018 to September 30, 2018 valued at $25,000 and less. BUDGETARY MATTERS APPROPRIATION ADJUSTMENTS 20A. APPROVE APPROPRIATION ADJUSTMENT TO RECOGNIZE HOMELESS EMERGENCY AID PROGRAM LARGE CITY GRANT FUNDS (STRATEGIC PLAN NOS. 1, 6; 5, 4; 5, 6) — Community Development Agency and City Manager's Office Chris Schmidt, thanked city staff and council for providing a humane housing solution in city. Opined City of Santa Ana has provided various housing options and is opposed to a 600 bed permanent shelter. Reminded City Council and staff the city has a 200 bed occupancy limit per shelter. 1. Approve an appropriation adjustment. (Requires five affirmative votes). CITY COUNCIL MINUTES 9 NOVEMBER 20, 2018 10A-9 APPROPRIATION ADJUSTMENT NO. 2019-037 - Recognizing $3,690,885.84 in funds from the State of California, Business, Consumer Services and Housing Agency in revenue account and appropriate the same amount to expenditure account to address homelessness in the City of Santa Ana. 2. Authorize the City Manager or designee as the approved signatory for the Homeless Emergency Aid Program (HEAP), as required by the terms and conditions of the State of California Homeless Coordinating and Financing Council Business, Consumer Services, and Housing Agency Standard Agreement to receive one-time grant funds in the amount of $3,690,885.84. *Mayor Pro Tem Martinez dissented on Agenda Item 20A. SPECIFICATIONS — PURCHASE OF EQUIPMENT AND SERVICES 22A. CONTRACTS AWARD FOR DELL DESKTOP COMPUTERS, LAPTOPS, MOBILE TABLETS AND RELATED EQUIPMENT (SPECIFICATION NO. 18-074) {STRATEGIC PLAN NO. 6, 1) - Finance and Management Services Agency and Information Technology Department MOTION: Award contracts for the purchase of Dell desktop computers, laptops, mobile tablets and related equipment for a one- year period expiring November 30, 2019, with provision for four one- year renewals exercisable by the City Manager, in an annual aggregate amount not to exceed $400,000, subject to non -substantive changes approved by the City Manager and City Attorney, with the following vendors: Vendor Location 2nd Gear, LLC Costa Mesa, CA Dell Computer Corp. Austin, TX 22B. CONTRACT AMENDMENT WITH ADAMSON POLICE PRODUCTS FOR POLICE CONVERSION COMPONENTS (SPECIFICATION NO. 18-096) {STRATEGIC PLAN NO. 6, 21 - Finance and Management Services Agency MOTION: Amend the contract with Adamson Police Products to increase the aggregate limit by $25,000 for police conversion components for an amount not to exceed $50,000, through June 30, 2019, subject to non -substantive changes approved by the City Manager and City Attorney. CITY COUNCIL MINUTES 10 NOVEMBER 20, 2018 10A-10 22C. AWARD A PURCHASE ORDER TO EAST WEST CONSOLIDATED, LLC FOR BALLISTIC ARMOR PLATES AND PLATE CARRIERS (SPECIFICATION NO. 18-089) (STRATEGIC PLAN NO. 1,5) - Finance and Management Services Agency; and Police Department MOTION: Award a one-time purchase and payment of purchase order to East West Consolidated, LLC for the purchase of 311 ballistic plates and plate carriers in the amount $62,779, plus a $7,874 contingency to be used by the period ending October 31, 2019, for a total amount not to exceed $70,653, subject to non -substantive changes approved by the City Manager and City Attorney. 22D. CONTRACT AWARD TO ZEBRON CONTRACTING, INC., FOR REHABILITATION AND LINING OF SEWER AND WATER STRUCTURES (NON -GENERAL FUND) (SPECIFICATION NO. 18-081) {STRATEGIC PLAN NO. 6, 1 C) - Finance and Management Services Agency; and Public Works Agency MOTION: Authorize a contract to Zebron Contracting, Inc., for rehabilitation and lining of sewer and water structures for a 15 -month period expiring February 28, 2020, with provisions for three, one-year renewals exercisable by the City Manager, in an annual amount not to exceed $115,000, subject to non -substantive changes approved by the City Manager and City Attorney. 22E. AWARD PURCHASE ORDER TO LOS ANGELES TRUCK CENTERS, LLC, FOR THREE COMPRESSED NATURAL GAS DUMP TRUCKS (SPECIFICATION NO. 18-070) {STRATEGIC PLAN NO. 6, 21 - Finance and Management Services Agency; and Public Works Agency MOTION: Authorize a one-time purchase and payment of purchase order to Los Angeles Truck Centers, LLC, for the procurement of three compressed natural gas dump trucks in the amount of $664,370, plus a contingency of $10,000, for a total amount not to exceed $674,370, subject to non -substantive changes approved by the City Manager and City Attorney. 22F. CONTRACT AWARD TO ALL AMERICAN ASPHALT FOR ASPHALT POTHOLE REPAIR (SPECIFICATION NO. 18-092) (STRATEGIC PLAN NO. 6, 1 C) - Finance and Management Services Agency; and Public Works Agency MOTION: Award a contract to All American Asphalt for asphalt pothole repair for a one-year period, with provisions for four, one-year renewals exercisable by the City Manager, in an annual amount not to CITY COUNCIL MINUTES 11 NOVEMBER 20, 2018 10A-11 exceed $550,000, subject to non -substantive changes approved by the City Manager and City Attorney. PROJECTS/CHANGE ORDERS 23A. AWARD CONTRACT TO GREEN GIANT LANDSCAPE, INC., FOR CIVIC CENTER AMERICANS WITH DISABILITIES ACT (ADA) ACCESS RENOVATION PROJECT FOR TWO RAMPS BY THE COUNCIL CHAMBER (PROJECT NO 16-2653) {STRATEGIC PLAN NOS. 6, 1B & 1G) — Public Works Agency; and Parks, Recreation and Community Services Agency MOTION. 1. Award a contract to Green Giant Landscape, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $377,200, for construction of the Civic Center ADA Access Renovation Project, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager and the Clerk of the Council to execute the contract subject to non -substantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $471,500, which includes the contract bid amount, administration, inspection and testing, and an authorized contingency of $37,720. AGREEMENTS 25A. APPROVE LEGAL SERVICES AGREEMENTS WITH TALLEY & TALLY, APC, AND OLIVAREZ MADRUGA LEMIEUX O'NEIL, LLP, RELATED TO ADMINISTRATIVE, LITIGATION, AND PERSONNEL BOARD MATTERS {STRATEGIC PLAN NO. 1, 3, 4, 5) — City Attorney's Office and Human Resources Department MOTION; Authorize the City Manager and Clerk of the Council to execute a legal services agreement with the law firm of Talley & Talley, APC, and Olivarez Madruga Lemieux O'Neil, LLP ("Attorneys") related to administrative, litigation and personnel board matters for a seven (7) month term ending on June 30, 2019, in an amount not to exceed $105,000 (Talley) and $100,000 (Olivarez), subject to non -substantive changes approved by the City Manager and the City Attorney (AGMT. No. 2018-254 and AGMT. No. 2018-255). CITY COUNCIL MINUTES 12 NOVEMBER 20, 2018 10A-12 25B. APPROVE AGREEMENTS WITH NINYO & MOORE, RMA GROUP, AND SCST FOR ON-CALL GEOTECHNICAL ENGINEERING SERVICES (NON -GENERAL FUND) {STRATEGIC PLAN NO. 6, 1G) — Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute agreements with each of the firms listed below, to provide on- call geotechnical engineering services for general engineering projects for a three-year term expiring November 19, 2021, with the option of one two-year extension exercisable by the City Manager and the City Attorney, for a total aggregate amount, for the three contracts combined, of not to exceed $600,000 for the term of the contract, including the optional extension, subject to non -substantive changes approved by the City Manager and the City Attorney: 1. Ninyo & Moore Geotechnical & Environmental Sciences Consultants (Ninyo & Moore) (AGMT. No. 2018-256). 2. RMA Group, Inc. (RMA Group) (AGMT. No. 2018-257). 3. SCST, Inc. (SCST) (AGMT. No. 2018-258). 25C. APPROVE AN AGREEMENT WITH TEXAS A&M ENGINEERING EXTENSION SERVICES FOR EMERGENCY OPERATIONS CENTER (EOC) OPERATIONS TRAINING (FISCAL YEAR 2016 URBAN AREAS SECURITY INITIATIVE (UASI) GRANT FUNDED) {STRATEGIC PLAN NOS. 1 AND 6) — Police Department MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Texas A&M Engineering Extension Service for the period of November 20, 2018 through March 31, 2019, to provide one Emergency Operations Center (EOC) Operations and Planning for All -Hazards Events training course in an amount not to exceed $65,064 subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-259). 25D. APPROVE AN AGREEMENT WITH ENERGY RETROFIT CO. TO INSTALL ENERGY-EFFICIENT LIGHTING FIXTURES AND CONTROLS IN THE ROSS ANNEX PARKING GARAGE (RFP NO. 18-070) AND EXECUTE THE ON -BILL FINANCING AGREEMENT {STRATEGIC PLAN NOS. 4, 3D; 6, 2A) — Finance and Management Services Agency; and Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Marketing Power, Inc. (dba Energy Retrofit Co.), for the term beginning December 3, 2018 through March 29, 2019, to CITY COUNCIL MINUTES 13 NOVEMBER 20, 2018 10A-13 provide and install advanced energy-efficient lighting fixtures and controls in the Ross Annex Parking Garage, in an amount not to exceed $39,928, inclusive of a 5% contingency in the amount of $1,901, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-260). 2. Authorize the City Manager and Clerk of the Council to execute an agreement with Southern California Edison to provide a $13,536 no -interest On -Bill Financing and $1,979 in incentives to fund RFP No. 18-070, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-261). 25E. APPROVE AN AGREEMENT BETWEEN THE CITY AND EASTCOM. CORPORATION TO DEFERTHE PAYMENT OF THE RESIDENTIAL. DEVELOPMENT FEE PURSUANT TO ARTICLE IV, SECTION 35-111 OF THE SANTA ANA MUNICIPAL CODE FOR THE PROPERTY LOCATED' AT 888 N. MAIN STREET (STRATEGIC PLAN NOS. 5, 3) — Planning and Building Agency Mayor Pro Tem Martinez, proposed amendment to staff recommendation to include in the motion that fee be paid by developer upon issuance certificate of occupancy. Motion seconded by Councilmember Villegas. Planning Manager, Vince Fregoso, noted that payment will be due prior to issuance of Occupancy Certificate. AMENDED MOTION: Authorize the City Manager, City Attorney, and Clerk of the Council to execute an agreement with Eastcom Corporation (the "Owner") to defer the payment of the Residential Development Fee pursuant to Article IV, Section 35-111 of the Santa Ana Municipal Code (SAMC) and that Certificate of Occupancy will not be issued until deferred fees are paid, subject to non -substantive changes approved by the City Manager and City Attorney for the property located at 888 N. Main Street (AGMT. No. 2018-262). MOTION: Martinez VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Villegas Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) CITY COUNCIL MINUTES 14 NOVEMBER 20, 2018 1 OA -14 25F. APPROVE AGREEMENT WITH PLACEWORKS FOR CONSULTING SERVICES FOR THE GENERAL PLAN AND ENVIRONMENTAL IMPACT REPORT {STRATEGIC PLAN NOS. 3, 2A; 5, 6} — Planning and Building Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement effective from November 20, 2018 through June 30, 2020 with Placeworks in the amount of $607,884 for the preparation of the General Plan and Environmental Impact Report for the City of Santa Ana, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-263). 25G. APPROVE PURCHASE AGREEMENTS FOR REAL PROPERTY ACQUISITIONS LOCATED 302 E. WARNER AVE. (APN 016-034-01)AND 310 E. WARNER AVE (APN 016-034-26) FOR WARNER AVENUE IMPROVEMENTS PHASE 1 (PROJECT NO. 14-6802) (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 Purchase Agreements for the real property full acquisition and goodwill (if any), with the property owners listed below, subject to non -substantive changes approved by the City Manager and City Attorney: 25H. AGREEMENT WITH SMARTCOVER SYSTEMS FOR REMOTE ALARM MONITORING AND MANAGEMENT SERVICES {STRATEGIC PLAN NO. 6, 1 C} — Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with SmartCover Systems, to provide real-time, two-way wireless communication and continuous remote alarm monitoring management services, for the three-year period beginning CITY COUNCIL MINUTES 15 NOVEMBER 20, 2018 10A-15 Property commonly Property known as I Acquisition Owner location Type Amount Agmt. No. Maria Rosa 302 E. Warner 1. Hernandez Ave. (APN Partial $20,800 2018-264 016-034-01) Armando A. 310 E. Warner 2. and Edith Ave. (APN Partial $6,800 2018-265 Martinez 016-034-26) 25H. AGREEMENT WITH SMARTCOVER SYSTEMS FOR REMOTE ALARM MONITORING AND MANAGEMENT SERVICES {STRATEGIC PLAN NO. 6, 1 C} — Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with SmartCover Systems, to provide real-time, two-way wireless communication and continuous remote alarm monitoring management services, for the three-year period beginning CITY COUNCIL MINUTES 15 NOVEMBER 20, 2018 10A-15 November 20, 2018, and expiring on November 19, 2021, with a provision for one two-year renewal option exercisable by the City Manager and City Attorney, in an amount not to exceed $125,000 annually, for a total agreement amount not to exceed $625,000, including the renewal option, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018- 266). 251. APPROVE COOPERATIVE AGREEMENTS FOR GRANT -FUNDED TRAFFIC SIGNAL SYNCHRONIZATION CORRIDORS ON MAIN STREET AND ON GARDEN GROVE BOULEVARD (PROJECT NOS. 19-6949 & 19- 6950) {STRATEGIC PLAN NO. 6, 1 B) — Public Works Agency RECOMMENDED ACTION: Authorize the City Manager and Clerk of the Council to execute two cooperative agreements (C-8-1800 and 0-8- 1797) with Orange County Transportation Authority identifying each agency's roles and responsibilities, including the City of Santa Ana match requirements of $336,090 to implement the Traffic Signal Synchronization Corridor project on Main Street and $5,420 to implement the Traffic Signal Synchronization Corridor project on Garden Grove Boulevard, for the term beginning upon approval of the City of Santa Ana, Orange County Transportation Authority, and the other participating agencies' boards, and effective until December 31, 2023, with an option to be extended, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-267 and AGMT. No. 2018-268). MISCELLANEOUS - BUDGET 29A. APPROVE DONATION AGREEMENTS WITH VARIOUS ORGANIZATIONS TO SUPPORT COMMUNITY EVENTS AND PROGRAMS {STRATEGIC PLAN NO. 5, 4) — City Council MOTION: 1. Approve a donation form in support of the Movie Night held at Portola Park for residents of the neighborhood, including Hoover Elementary School students, on November 9, 2018 in the amount of $435 in City services credit (Councilmember Tinajero). 2. Authorize the City Manager and Clerk of the Council to execute agreements with various organizations in support of their community events and programs, subject to non -substantive changes approved by the City Manager and the City Attorney, as follows: CITY COUNCIL MINUTES 16 NOVEMBER 20, 2018 10A-16 a. Centro Cultural de Mexico en el Condado de Orange in support of the Noche de Altares event, free to the community, that occurred on November 3, 2018, in a one-time donation amount of $500 (Mayor Pro Tem Martinez); b. Te-Kenjutsu-KanKarate-Do to support the 16th Annual Adlawan Cup Food Drive Karate Championships that will provide supportive items for homeless individuals in the City, in the amount of $500 (Councilmember Solorio); c Centro Cultural de Mexico en el Condado de Orange in support of the Noche de Altares event, free to the community, that occurred on November 3, 2018, in a one-time donation amount of $500 (Benavides). 29B. AUTHORIZATION TO PROCEED WITH PILOT PROJECT WITH SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SLAG) TO ANALYZE ESTABLISHMENT OF POTENTIAL FINANCING DISTRICTS FOR INFRASTRUCTURE PROJECTS {STRATEGIC PLAN NO. 6, 1) — Community Development Agency MOTION: 1. Authorize the City of Santa Ana to proceed with participating in a Pilot Project with the Southern California Association of Governments (SLAG) and Kosmont Companies to evaluate the feasibility for implementation of an Enhanced Infrastructure Financing District (EIFD), Community Revitalization Investment Authority (CRIA), or a similar tool to assist in funding future infrastructure projects and help spur private facility investment. 2. Approve attached map as study area boundaries for the Pilot Project. **END OF CONSENT CALENDAR** CLERK OF THE COUNCIL ADMINISTERED THE OATH OF OFFICE TO THE NEWLY APPOINTED COMMISSIONERS: Community Redevelopment and Housing Commission Patricia Limon Environmental and Transportation advisory Committee CITY COUNCIL MINUTES 17 NOVEMBER 20, 2018 10A-17 Lawrence Klein AGENDA ITEM OUT OF ORDER - PUBLIC HEARING 75A. PUBLIC HEARING: ORDINANCE SETTING NEW WARD BOUNDARIES AND ELECTION SEQUENCE FOR NEW WARDS FOR THE 2020 GENERAL MUNICIPAL ELECTION COUNCIL CANDIDATES {STRATEGIC PLAN NO. 5, 1} - Clerk of the Council Office Legal Notice published in the Orange County Reporter on November 9, 2018. Mayor Pulido opened the Hearing. The following spoke on the matter: • Zeke Hernandez, President of League of United Latin American Citizens (LULAC), involved with other cities on District related elections, in favor of Plan D, stressed the importance of considering the Latin and Vietnamese community in arriving at their decision. • Dale Helvig, supports C-2 and D-2; proposed election sequence on Map C-2, reflected as A -F, to be Wards 1-6; and if D-2 approved that Wards 1, 5, 6, 3, 4, 2 be assigned as the number sequence for A -F. Requested sequences to be considered for a fair process to the incumbent councilmember as incumbents would not be required to go up for re- election in two years. • Alejandra Capistran, member of Orange County Congregation Community Organization (OCCO) and Immaculate Heart of Mary, expressed support for election sequence on Map D-2 be Wards A -F in that order Wards 1-6; also requested that no changes be made to Map D-2. • Maria Ramirez, echoed comments made by Alejandra Capistran, in support of Map D-2, and expressed the following ward sequence: A -C: Wards 1, 3, 5 for year 2020 and D -F: Wards 2, 4, 6 for year 2022. • Carmen Silva, member of OCCO and Our Lady of Heart of Guadalupe DelHi, reaffirmed comments made by previous speakers and noted that voters unanimously approved Measure AA by over 63% of the voters. • Rafael Borja, member of OCCO and Immaculate Heart of Mary, reiterated comments by previous speakers, in support of Map D-2. • Leonel Velazquez, member of OCCO, proposed election sequence: A- C: Wards 1, 3, 5 for year 2020 and D -F: Wards 2, 4, 6 for year 2022. • Karen Rodriquez, in support Map D-2 with no changes as it is a product of community hearings and direct input; and most importantly allows Vietnamese community to exercise their voting powers and elect someone who understands their needs. Support election sequence previously mentioned. CITY COUNCIL MINUTES 18 NOVEMBER 20, 2018 10A-18 Kathy Le, in support Map D-2 with no changes, also in support of election sequence: A -C: Wards 1, 3, 5 for year 2020 and D -F: Wards 2, 4, 6 for year 2022. Theresa Le, echoed previous speakers' comments, expressed strong support for Map D-2 with no alterations, support of proposed election sequence: A -C: Wards 1, 3, 5 for year 2020 and D -F: Wards 2, 4, 6 for year 2022. Kenneth Nguyen, resident of Santa Ana and active community member, expressed that Vietnamese community needs their voice to be heard and have a councilmember of any race advocate for their community. Clarified Vietnamese population reflected on maps, expressed that the voting sequence is not of an interest, however the division of ward map having the largest Vietnamese voting block population is of interest. Mayor Pulido closed the Hearing. Council discussion ensued. City Attorney Sonia Carvalho announced that consultant with Redistricting Partners, Mr. Paul Mitchell, along with special legal counsel of Jones & Mayer, Kimberly Hall Barlow, is present to address questions. Councilmember Solorio, noted past community meetings and hearings, importance of keeping communities of interest together, and indicated proposed map is representative of community. Suggested ward -sequencing order to allow Councilmembers who were elected in 2016 to run in 2020 if they are eligible for reelection and Asian district to run in 2020. 0 e REOIRRRICIINs 00 PARTNERS City of Santa Ana Councilmember Villegas expressed support of Map C-4 as it resembles our current map, C-4 allows for the Vietnamese Community to have their own ward, and keep current councilmember elects out of the same ward. CITY COUNCIL MINUTES 19 NOVEMBER 20, 2018 10A-19 Councilmember Sarmiento requested clarification of map selection process / exercise that was performed at the October 30, 2018 adjourned City Council meeting. City Attorney Carvalho reviewed discussion held on October 30, 2018: 1) Spoke about the idea of sequencing to be addressed at the November 20, 2018 City Council meeting and 2) minor adjustments on map may be considered and proceed with second reading tonight. However, if changes were significant, then map would have to be re -introduced as a new reading. Councilmember Sarmiento, appreciative of Councilmembers efforts to introduce a new map. Noted community north of 17th Street is demographically and socioeconomically different and benefit of keeping it intact. Expressed importance of discussing ward sequence order, map selected will be temporary and will be revisited after Census. In support of process as long as ward A sequence order remains intact and be up for election in 2020 Special Counsel, Barlow, confirmed that the Asian majority community would go first in year 2020 as part of the settlement. The only question is designation for 3 and 5, which will also go in 2020. In terms of sequencing, it was not addressed at the last meeting thus, the recommendation for the map that is adopted tonight, whether it is D-2 or another map, is to proceed with a new first reading as this ordinance includes the sequencing. Recommended in staff report for D2 a sequencing that would be least disruptive to the current sequence; however, final sequencing will be decided by the council. Ideally, you do not want to have someone sit out or run after two years. Councilmember Sarmiento, conveyed that it would have been helpful post - elections to see where those that prevailed reside and council could have had a better idea to make sure they do not have two candidate -elects in the same ward or district. Special legal counsel Barlow agreed and added that as a result the recommendation for sequencing for D-2 changed. In addition, redistricting that will occur after census will likely not occur until 2021 thus; we may not have it done in time due to the time requirements to be in place for 2022. As a result, we may have these boundaries for 2020 and 2022 before the boundaries are changed. Councilmember Solorio motioned to adopt Map C-4; and to minimize disruption along with keeping the Asian majority a 2020 seat, approve staff's CITY COUNCIL MINUTES 20 NOVEMBER 20, 2018 i yAW recommendation to keep A, C and E on the 2020 cycle. Seconded by Councilmember Villegas for discussion. COUNCIL RECESSED AT 8:40 P.M. AND RECONVENED AT 8:49 P.M. WITH SAME MEMBERS PRESENT. Mayor Pro Tem Martinez, requested City Attorney to confirm item would require a second reading. City Attorney Carvalho, conveyed that item would return to the December 18, 2018 City Council meeting for consideration of a second reading since a revised map was introduced and significant revisions were made. Councilmember Benavides, inquired if Map C-4 is potentially approved how will it affect a recently elected councilmember-elect (Ward A) in 2020, within two years. City Attorney Carvalho, conveyed that the councilmember-elect will hold an At -Large seat for four years and their term is not reduced, or may choose to run in two years. In addition, the term -limit language, that is in the charter approved by the voters, indicates that an incomplete term -limit is not counted towards the term limit. One would need to complete three, full four- year terms in order to be termed out of office. Thus, a councilmember could potentially serve fourteen years. Councilmember Benavides, conveyed his preference for Map D-2 along with sequence recommended by staff which was a result of a series of public hearings and community input with a support of D-2. Councilmember Sarmiento concerned with Map C-4 as it reflects a break- up The Downtown from the Civic Center. In addition, pointed out that an area in the Sandpointe is also broken -up. Councilmember Solorio reiterated that based on the recent elections, two incumbents would both be in the same ward for the next four years if Map D-2 is approved. Councilmember Sarmiento, inquired if Map C-3 would cause two incumbents in the same ward; conveyed his preference to approve Map C- 3. City Of Santa Ana Plan C 3 CITY COUNCIL MINUTES 21 NOVEMBER 20, 2018 1 OA -21 PIAN C 3 A B C D E F Po lation 53,852 54.149 54,183 54,798 54,423 53,178 Deviation 246) 51 85 700 325 920 0% 0% 0% 1% 1% .2% IB+CBi7ens(CVAP) 29,010 23,416 18,500 22,837 28,085 18,576 54% 43% 34% 42% 52% 35% Wtino CVAP 11,257 15,302 13.312 17,071 13,869 13,241 39% 65% 72% 75% 49% 71% Whoa CVAP 4.017 4,066 2.545 3.488 10,342 2.934 14% 17% 14% 15% 37% 16% African American CVAP 283 799 430 227 368 457 1% 3% 1% ]% 3% 1% Aslan CVAP 12,851 3.054 2.001 1,771 2.973 1,729 44% 13% I1% 8% Il% 9% Mayor Pro Tem Martinez, introduced a substitute motion to proceed with the approval of Map C-3. Unsupportive of excluding Civic Center. Opined importance to keep Downtown and Civic Center intact. Councilmember Villegas, expressed that he would not want to split the Sandpoint area; and although we would vote on a map that places it in two different wards, it would remain as one association and would support Map C-3 to keep the Civic Center area together. Councilmember Solorio in support friendly amendment to support Map C-3. CITY COUNCIL MINUTES 22 NOVEMBER 20, 2018 1 OA -22 FRIENDLY AMENDMENT TO MOTION: 1. Adopt Map C-3 and confirm sequence of election as follow: Ward A=1 in 2020; Ward E=3 in 2020; Ward C=5 in 2020; Wad B=2 in 2022; Ward D=4 in 2022; and Ward F=6 in 2022. 2. Introduce ordinance for first reading and authorize publication of title (Requires five affirmative votes). ORDINANCE NO. NS -2958 - AN ORDINANCE OF THE CITY OF SANTA ANA ESTABLISHING NEW BOUNDARY LINES OF THE WARDS OF THE CITY OF SANTA ANA AND REPEALING ORDINANCE NO. NS -2826 MOTION: Martinez SECOND: Solorio VOTE: AYES: Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Benavides (1) ABSTAIN: None (0) ABSENT: None (0) BUSINESS CALENDAR ITEMS RESOLUTIONS 55A. RESOLUTION AND AGREEMENT ACCEPTING COMMUNITY EMERGENCY RESPONSE TEAM (CERT) COURSE MANUALS AND EMERGENCY PREPAREDNESS KITS PROVIDED THROUGH FISCAL YEAR 2016 HOMELAND SECURITY GRANT PROGRAM (HSGP) {STRATEGIC PLAN NO. 1, 2F} — Police Department MOTION: 1. Adopt a resolution. RESOLUTION NO. 2018-080 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER, AND THE CHIEF OF POLICE OR HIS DESIGNEE TO OBTAIN 2016 HOMELAND SECURITY GRANT PROGRAM FINANCIAL ASSISTANCE THROUGH THE COUNTY OF ORANGE, AND EXECUTE A TRANSFER AGREEMENT WITH THE COUNTY, CITY COUNCIL MINUTES 23 NOVEMBER 20, 2018 1 OA -23 DOCUMENTS, AND ASSURANCES THAT MAY BE NECESSARY FOR THE HSGP 2. Authorize the City Manager and Clerk of the Council to execute an agreement with the County of Orange, commencing September 1, 2016, and running through August 31, 2019, to receive CERT course manuals and emergency preparedness kits purchased by the County through the FY 2016 Homeland Security Grant Program, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-269). MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Sarmiento Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) 55B. RESOLUTION TO AMEND THE CLASSIFICATION AND COMPENSATION PLAN TO ADD THE POSITIONS OF RISK MANAGEMENT ANALYST, HUMAN RESOURCES CLERK, PRINCIPAL HUMAN RESOURCES ANALYST AND TO CHANGE BENEFITS AND COMPENSATION SUPERVISOR TO BENEFITS AND COMPENSATION MANAGER (STRATEGIC PLAN NO. 7,6) — Human Resources Department Councilmember Tinajero motioned; seconded by Sarmiento. MOTION: Adopt resolution. MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Sarmiento Benavides, Martinez, Solorio, Villegas (6) Solorio (1) None (0) None (0) Pulido, Sarmiento, Councilmember Solorio expressed concerns with resolution pertaining to title and respective pay; and requested reconsideration of vote. CITY COUNCIL MINUTES 24 NOVEMBER 20, 2018 1 OA -24 Executive Director of Human Resources Steven Pham, conveyed to council that at this time he is bringing classifications in line with the marketplace. Will be performing a complete classification review and at that time will address compensation. Councilmember Solorio conveyed that in past practice salary range is changed when elevating the positions; and this does not necessarily mean that the individual will receive a salary increase thus, will be dissenting on item unless colleagues continue item. Prefers a two-week continuance. Director Pham, noted position would not increase responsibilities, position is not titled correctly, and goal to bring it in line with industry. Mayor Pro Tem Martinez, motion to reconsider, seconded by Councilmember Sarmiento with comment. MOTION TO RECONSIDER: MOTION: Martinez VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Sarmiento Martinez, Pulido, Sarmiento, Solorio, Villegas (5) None (0) Benavides, Tinajero (2) Mayor Pro Tem Martinez, inquired from Director Pham based on information provided and what is being asked of him, would his recommendation change. Director Pham, conveyed he would not change the recommended action as it will create compaction issues; simply correcting the title to mirror what is currently reflected in the marketplace. Councilmember Solorio, requested information related to past practice, reclassification policy, and if it common practice in other cities. SUBSTITUTE MOTION: Continue consideration of matter for two weeks to the December 4, 2018 City Council meeting. MOTION: Solorio SECOND: Villegas CITY COUNCIL MINUTES 25 1 OA -25 NOVEMBER 20, 2018 REPORTS 65A. VOTE: AYES: Martinez, Pulido, Sarmiento, Solorio, Villegas (5) NOES: Benavides, Tinajero (2) ABSTAIN: None (0) ABSENT: None (0) PRESENTATION ON NEW CITYWIDE BRANDING PLATFORM {STRATEGIC PLAN NO. 3, 1 E} — Community Development Agency Presentation by Consultant Ed Barlow, Vice President of Strategic Planning for Northstar Destination Strategies to provide an update in respects to citywide branding. Process included intensive research within the community that includes outside perspective Strategic DNA Statement To Whom You Mo9 Apo -L (or@oseacebng the energy of-wh-aM mlmlk seW" Frame of Refm—. W.. A.,Orarge Co.V✓ d...oamJ eoeny-A Pmm oh Dlffereme'. wek.meT Mecelehradooaml and—laming foraU (PoWOe. penpeetivez. rellglonz,ideaz) Derolil: andelroahs.0. amleverYdaY+urntivm im. a.ot-d, vm'd fercaryovpnfmce. CITY COUNCIL MINUTES 26 NOVEMBER 20, 2018 1 OA -26 1 11 ,8waptinebe�e�apmeni ,` �; I CITY COUNCIL MINUTES 27 NOVEMBER 20, 2018 1 OA -27 ,.' SANTA ANA • CALIFORNIA AASANTA NA DOWNTOWN ORANGE COUNTY A SANTA ANA DT -OC W. I, *DT OC• L WEICCIAE TO WEQOME TO NA. SANT ANA. ��SAAANT "1t� ��� SANTA�NA 5.\NTT'e\NA i Brand Action Ideas Ofgarxzatlon rj G_m,•,lunlry YISpOfF IptraVCClUre i3u5mC55 CITY COUNCIL MINUTES 28 NOVEMBER 20, 2018 1 OA -28 Ll!al Via Setl6n SANTA ANA -DOWNTOWN OC - I `SANTA ANA FECONOMIC DEVELOPMENT SANTINA .ECONOMIC DEVELOPMENT. SANTAAW A �+ p CITY COUNCIL MINUTES 29 NOVEMBER 20, 2018 1 OA -29 ® tm tete A.mlebt ie 39th Amus/ cera, Patin CITY COUNCIL MINUTES 30 NOVEMBER 20, 2018 10A-30 0 9 CITY COUNCIL MINUTES 31 NOVEMBER 20,2018 1 OA -31 � � SANTA ANA � !I CITY COUNCIL MINUTES 32 NOVEMBER 20, 2018 1 OA -32 q SANTA ANA CHAMBER OF COMMERCE SANTA C"M C.. E� -ANTAq k CHAMBER' i CITY COUNCIL MINUTES 33 1 OA -33 l - oq 0400' •OTjOC• rDT`VC' •UTOOC• NOVEMBER 20, 2018 yIK A(� 1, 1 i SANTANA•' DINING GUIDE ry -t�tg rN L (I ❑NU US ON Flamm t CITY COUNCIL MINUTES 34 1 OA -34 NOVEMBER 20, 2018 Y N DANA #DTC rl�. CITY COUNCIL MINUTES 35 NOVEMBER 20, 2018 1 OA -35 Infrastructure ,\NIAAN �14- ...e- AvW-1 1040L Congratulations Santa Ana! CITY COUNCIL MINUTES 37 NOVEMBER 20, 2018 1 OA -37 Council discussion ensued. Councilmember Benavides, suggested logo is bold, departs from established urban image, and is unique to Santa Ana. Supportive of brand direction. Councilmember Sarmiento, indicated proposed branding is a drastic departure from current logo, large investment in current logo, and proposed logo is counterintuitive to an urban city. Suggested meeting with Arts and Culture Commission to discuss and obtain feedback. Mayor Pulido, echoed statements made by Councilmember Sarmiento. Unsupportive of proposed brand. Councilmember Villegas motioned and Councilmember Benavides seconded with comment, expressed that at some point staff and/or the Orange Chamber of Commerce, can circulate among the business community and perhaps gain some traction. Requested it be discussed further at the upcoming Economic Development, infrastructure, Budget and Technology Council Committee. MOTION. Receive and file. MOTION: Villegas VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Benavides Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) *Mayor Pulido and Councilmember Sarmiento noted that they had a potential conflict of interest and recused themselves from Agenda Item 65B. They both left the dais and did not participate in the deliberation of said item. Mayor Pro Tem Martinez assumed the Chair. 65B. ORDINANCE ESTABLISHING A CANNABIS PUBLIC BENEFIT FUND TO BE USE SOLELY FOR YOUTH SERVICES AND ENFORCEMENT SERVICES {STRATEGIC PLAN NO. 2; 5, 4} — City Manager's Office City Attorney Carvalho entered into record a correction page, to identify that 1/3 of revenue directed to youth services and 1/3 towards Enforcement services. CITY COUNCIL MINUTES 38 NOVEMBER 20, 2018 1 OA -38 MOTION: Place revised ordinance on first reading and authorize publication of title (include provision for 1/3 sub -funds for Enforcement Services and 1/3 sub -funds for Youth Services). ORDINANCE NO. NS -2959 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Solorio Benavides, Martinez, Solorio, Tinajero, Villegas (5) None (0) Pulido, Sarmiento (2) None (0) 65C. APPROVAL OF TERMS FOR RESIDENT VEHICLE INCENTIVE PROGRAM (VIP) {STRATEGIC PLAN NO. 3, 3C) — Community Development Agency MOTION: Continuation of matter at the request of staff. PUBLIC HEARINGS 75A. AGENDA ITEM CONSIDERED OUT OF ORDER 75B. PUBLIC HEARING: MITIGATED NEGATIVE DECLARATION NO. 2016- 156, GENERAL PLAN AMENDMENT NO. 2018-05 TO CHANGE THE DESIGNATION OF THE PROPERTIES AT 301 NORTH TUSTIN AVENUE, 431 NORTH TUSTIN AVENUE AND 2321 EAST FOURTH STREET, AMENDMENT APPLICATION NO. 2018-08 TO CHANGE THE ZONING OF THE PROPERTIES AT 301 NORTH TUSTIN AVENUE, 325 NORTH TUSTIN AVENUE, 401 NORTH TUSTIN AVENUE AND 2320 EAST FOURTH STREET - RICHARD FINKEL, APPLICANT {STRATEGIC PLAN NO. 3, 2) — Planning and Building Agency Planning Commission approved recommended action on October 8, 2018 by a vote of 5-0 (Mendoza and Nguyen absent). CITY COUNCIL MINUTES 39 NOVEMBER 20, 2018 1 OA -39 Legal Notice published in the Orange County Reporter on November 9, 2018 and notices mailed on said date. Mayor Pulido opened the Hearing. There were no speakers and the Hearing closed. Councilmember Benavides, requested staff to identify implication and reason for zoning changes. Principal Planner Fregoso, indicated request for zone change was made by property owner to allow construction of commercial space. MOTION: 1. Adopt a resolution. RESOLUTION NO. 2018-081 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING MITIGATED NEGATIVE DECLARATION ENVIRONMENTAL REVIEW NO. 2016- 156 AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM RELATIVE TO GENERAL PLAN AMENDMENT NO. 2018-05, AMENDMENT APPLICATION NO. 2018- 08, CONDITIONAL USE PERMIT NO. 2018-18 AND VARIANCE NO. 2018-10 FOR THE PROJECT LOCATED AT 301 AND 325 N. TUSTIN AVENUE 2. Adopt a resolution. RESOLUTION NO. 2018-082 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL PLAN AMENDMENT NO. 2018-05 FOR THE PROPERTIES LOCATED AT 301 NORTH TUSTIN AVENUE, 431 NORTH TUSTIN AVENUE AND 2321 EAST FOURTH STREET 3. Place ordinance on first reading and authorize publication of title. ORDINANCE NO. NS -2960 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-08 REZONING THE PROPERTIES LOCATED AT 301 NORTH TUSTIN AVENUE, 325 NORTH TUSTIN AVENUE, 401 NORTH TUSTIN AVENUE, AND 2320 EAST FOURTH STREET FROM THE PROFESSIONAL (P) TO THE GENERAL COMMERCIAL (C2) ZONING DISTRICT MOTION: Tinajero VOTE: AYES: SECOND: Martinez Benavides, Martinez, Pulido, Sarmiento, CITY COUNCIL MINUTES 40 NOVEMBER 20, 2018 1 OA -40 Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 75C. PUBLIC HEARING: EMERGENCY ORDINANCE OF THE CITY OF SANTA ANA MAKING FINDINGS AND EXTENDING THE MORATORIUM ON THE APPROVAL, COMMENCEMENT, ESTABLISHMENT, OPERATION, RELOCATION OR EXPANSION OF CYBER CAFES AND INTERNET ACCESS BUSINESSES WITHIN THE CITY FOR AN ADDITIONAL TEN (10) MONTHS AND FIFTEEN (15) DAYS, PURSUANT TO GOVERNMENT CODE SECTION 65858 PENDING STUDY AND ADOPTION OF REGULATORY AND ZONING STANDARDS OR OPTIONS (STRATEGIC PLAN NO. 5, 4) — Planning and Building Agency; and Police Department Legal Notice published in the Orange County Reporter on November 9, 2018. Mayor Pulido opened the Hearing. There were no speakers and the Hearing closed. Councilmember Benavides, requested staff to articulate consideration made to legitimate businesses that may. be affected. Code Enforcement Manager Nunez, noted item would allow further analysis to address concerns. MOTION: Adopt an emergency ordinance. (Requires six affirmative votes.) ORDINANCE NO. NS -2961 - AN EMERGENCY ORDINANCE OF THE CITY OF SANTA ANA MAKING FINDINGS AND EXTENDING THE MORATORIUM ON THE APPROVAL, COMMENCEMENT, ESTABLISHMENT, OPERATION, RELOCATION OR EXPANSION OF CYBER CAFES AND INTERNET ACCESS BUSINESSES WITHIN THE CITY FOR AN ADDITIONAL TEN MONTHS AND FIFTEEN DAYS PENDING STUDY AND ADOPTION OF REGULATORY AND ZONING STANDARDS MOTION: Martinez SECOND: Solorio VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, CITY COUNCIL MINUTES 41 NOVEMBER 20, 2018 1 OA -41 Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) JOINT SESSIONS OF THE CITY COUNCIL AND THE HOUSING AUTHORITY 80A. APPROVE COMMITMENT TO RESUBORDINATE THE EXISTING AFFORDABLE HOUSING LOANS FOR THE CORNERSTONE APARTMENTS TO $8,700,000 IN DEBT TO FUND REHABILITATION COSTS {STRATEGIC PLAN NO. 4, 5) — Community Development Agency MOTION: Authorize the City Manager and Executive Director of the Housing Authority to execute a commitment letter to: 1. Resubordinate the current affordable housing loans for the Cornerstone Apartments at 805-904 South Minnie Street, Santa Ana, California to tax-exempt multifamily bonds (Bonds) in an amount not to exceed $8,700,000. The Bond funds will be used to substantially rehabilitate the Project. 2. Authorize the City Manager and Executive Director of the Housing Authority to execute the necessary documents to level all rents onsite at the 50% ICAC rents instead of the existing Health and Safety Code rents. MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Sarmiento Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) CITY COUNCIL MEETING RECESSED AT 9:45 P.M. AND CONVENED THE HOUSING AUTHORITY MEETING. CITY COUNCIL MEETING RECONVENED WITH SAME MEMBERS PRESENT AT 9:46 P.M. CITY COUNCIL MINUTES 42 NOVEMBER 20, 2018 1 OA -42 COMMENTS 90A. CITY MANAGER'S COMMENTS City Manager Godinez, advised public of abandonment of interest to acquire property located at 3100-3120 West Central for any purpose including a homeless shelter and has no present or future intent to acquire the site that was originally contemplated under the MOU between the City and the County of Orange. Introduced newly appointed Finance and Management Services Executive Director Kathryn Downs and Parks, Recreation and Community Services Executive Director Lisa Rudloff to City Council. 9013. CITY COUNCILMEMBER COMMENTS Councilmember Sarmiento, commented on homeless problem, County not addressing issue, and opined City can no longer absorb other cities problems. Directed staff to be vigilant and verify origin of homeless referred to shelter and direct those who did not originate in the city to their home city. Noted shelter segregated families from single men, provided a safe space for children, and addressed all of his concerns. Adjourned in memory of Manuel Joseph Pena, Jr. Councilmember Tinajero, welcomed new executive directors, opined need to have cultural shift in Parks, Recreation, and Community Services, and to become more customer service oriented. *Councilmember Tinajero left the meeting at 9:57 p.m. Mayor Pro Tem Martinez, commented on importance of putting political differences aside to accomplish moving the city forward, working with other entities to address homeless issue, and homeless shelter is a model for cities across the country. Councilmember Solorio, noted successful Plaza Navidena and Christmas Tree lighting event, new shelter will provide a humanitarian relief, and opportunity for police to enforce anti -camping laws to clean up City. Wished everyone a Happy Thanksgiving. Councilmember Villegas, commented on successful Plaza Navidena event. Thanked staff and Councilmembers for their work in opening new homeless shelter. Happy Veteran's Day and expressed gratitude to Com -Link for allowing him to share his experience in the military. Wished everyone a Happy Thanksgiving. Councilmember Benavides, spoke on community effort to address homeless issue and opined Link homeless shelter project is a CITY COUNCIL MINUTES 43 NOVEMBER 20, 2018 1 OA -43 compassionate and dignified project that will service the needs of those facing homelessness. Mayor Pulido, adjourned in memory of Manny Pena, commented on upcoming Orange County Street Car ground breaking ceremony, positive addition to the City, and effort made to create homeless shelter. ADJOURNED- 10:19 P.M. - The next meeting of the City Council is scheduled for Tuesday, December 4, 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. ADJOURN MEETING IN MEMORY OF MANUEL "MANNY" PENH Maria D. Huizar Clerk of the Council FUTURE AGENDA ITEMS • 2019 City Council and Council Committee Meeting Schedule • Regional Board Appointments • Mid -Year Budget Review • Trash Contract • Policy on Use of General Reserve and Enterprise Funds CITY COUNCIL MINUTES 44 NOVEMBER 20, 2018 1 OA -44 0 441 tole CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: ORDINANCE SECOND READING: ESTABLISHING NEW BOUNDARY LINES OF THE WARDS, ELECTION SEQUENCE AND REPEALING ORDINANCE NO. NS -2826 (STRATEGIC PLAN NO. 5,1) CIT MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 13' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Place ordinance on second reading and adopt Map C-3 approved at the November 20, 2018 City Council Meeting by 6-1 vote (Benavides dissented). (Requires five affirmative votes). Note: Ward numbering and sequence of election as follow: Ward A = 1 and hold election on November 3, 2020; Ward B = 2 and hold election on November 8, 2022; Ward C = 5 and hold election on November 3, 2020; Ward D = 4 and hold election on November 8, 2022; Ward E = 3 and hold election on November 3, 2020; and Ward F = 6 and hold election on November 8, 2022. DISCUSSION On November 20, 2018, the City Council held a Public Hearing to consider the first reading and authorized staff to publish the title and map of new Ward boundaries; it was approved by a vote of 6-1 (Benavides dissented): ORDINANCE NO. NS -2958 - AN ORDINANCE OF THE CITY OF SANTA ANA ESTABLISHING NEW BOUNDARY LINES OF THE WARDS OF THE CITY OF SANTA ANA AND REPEALING ORDINANCE NO. NS -2826 Adoption of the ordinance establishes new boundaries of the Wards of the City of Santa Ana effective with the November, 2020 General Election. The City Council has held a series of community meetings and public hearings to consider Ward Boundaries including the most recent held on November 20, 2018 in which Map C-3 was approved 11 A-1 Second Reading of Ordinance: Council Ward Boundaries December 4, 2018 Page 2 by 6-1 vote. Map C-3 includes slight changes to Map C that was presented to the community with initial maps on August 25, 2018. Pursuant to the Settlement Agreement entered by the City of Santa Ana and plaintiff, consistent with California Elections Code section 10010(b), the Ward with the highest percentage of Asian - American citizens of voting age shall be designated among the three Wards (1, 3 and 5) subject to election on November 3, 2020, with Wards 2, 4 and 6 to be subject to election on November 8, 2022; and any special elections after November 3, 2020 shall be By—Ward. Based on Asian CVAP populations, and minimal disruption to the existing election cycle, the proposed Ward numbers and term expirations are provided for in map C-3 (exhibit to Ordinance). The City Charter provides that an ordinance adjusting ward boundaries must be approved by a 2/3 affirmative vote requirement and be adopted no later than 120 days before an election in order to be effective for that election. While the City Charter currently limits ward boundary adjustments as needed to ensure equality of population among the wards, the settlement agreement recognized the need to comply with the California Voting Rights Act, which applies to both general law and charter cities. In addition, the City's ballot measure to revise the City Charter in this regard was approved by the voters in the November 6, 2018 election, the results of which will be certified on December 11, 2018, shortly after the effective date of Ordinance NS -2958. This proposed re -boundary process is categorically exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15320 — Class 20 (Changes in Organization of Local Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, since it involves a proposed reorganization of the City Council Wards and does not change the geographical area in which previously existing powers are exercised. STRATEGIC PLAN Approval of this item allows us to meet Goal #5. Community Health, Livability, Engagement & Sustainability, Priority #1, Establish a comprehensive community engagement initiative exhibit to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities. FISCAL IMPACT There is no fiscal impact associated with this action. . 'D • �i/ Maria D. Huizar Clerk of the Council Exhibit: 1. Ordinance with Map C-3 and election sequence 11 A-2 ORDINANCE NO. NS -2958 AN ORDINANCE OF THE CITY OF SANTA ANA ESTABLISHING NEW BOUNDARY LINES OF THE WARDS OF THE CITY OF SANTA ANA AND REPEALING ORDINANCE NO. NS -2826 WHEREAS, By certified letter received on March 14, 2018, the Asian -Americans Advancing Justice advised the City that it believes the City's current at -large method of electing City Councilmembers violates the California Voting Rights Act ("CVRA"). WHEREAS, On July 17, 2018 the City Council by a vote of 6-0 approved Resolution No. 2018-056 to place a Charter Amendment on the ballot to transition from At -Large City Councilmember elections to By -Ward elections on the November 6, 2018 General Municipal Election. The resolution also mandated that Ward Boundaries be re- drawn in accordance with federal and state law. WHEREAS, Several Community Meetings and four (4) Public Hearings were held to receive input from the community, include their "communities of interest", provide criteria for mapping of new Ward boundaries and consider proposed Ward Maps. WHEREAS, The City Charter provides that an ordinance adjusting ward boundaries must be approved by a 2/3 affirmative vote requirement and be adopted no later than 120 days before an election in order to be effective for that election. WHEREAS, A Settlement Agreement entered by the City of Santa Ana and plaintiff specifies that, consistent with California Elections Code section 10010(b), the Ward with the highest percentage of Asian -American citizens of voting age shall be designated among the three Wards (1, 3 and 5) subject to election on November 3, 2020, with Wards 2, 4 and 6 to be subject to election on November 8, 2022; and any special elections after November 3, 2020 shall be by—Ward. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: That the boundaries and numbers of the wards of the City of Santa Ana are hereby changed and established as set forth on the map and description attached hereto and incorporated herein by reference as Exhibit 1. Metes and bounds of each district are attached hereto and incorporated herein by reference as Exhibit 2. SECTION 2: That the Clerk of the Council shall cause a map diagram showing the new boundary lines of each and every ward to be published in the Orange County Register not less than thirty (30) days prior to the 2020 general municipal election. 11 A-3 SECTION 3: This ordinance shall take effect and be in force immediately from and after the date of its passage. ADOPTED this day of 2018 Miguel A. Pulido Mayor APPROVED AS TO FORM: By: Sonia R. Carvalho, City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS -2958 to be the original ordinance adopted by the City Council of the City of Santa Ana on December 4, 2018, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 11 A-4 0 Ya �/2 Miles City of Santa Ana City Council Wards Adopted December 4, 2018 Ward 1 = Election on November 3, 2020 Ward 2 = Election on November 8, 2022 Ward 3 = Election on November 3, 2020 Ward 4 = Election on November 8, 2022 Ward s =Election on November 3, 2020 Ward 6 = Election on November 8, 2022 1 fAHjgIT 1 11 A-6 vo�astreeq PXoxe'A6u-8686 saceamento. ca gg8a6 inEo�eedietrtctingpartneo.cam Santa Ana Plan C 3 - Metes and Bounds District A. The region bounded and described as follows: Beginning at the point of intersection of Unnamed and S Euclid St, and proceeding easterly along Unnamed to Rhonda Ave, and proceeding easterly along Rhonda Ave to Taft St, and proceeding northerly along Taft St to Unnamed, and proceeding northerly along Unnamed to Hazard Ave, and proceeding easterly along Hazard Ave to Euclid St, and proceeding northerly along Euclid St to Westminister Blvd, and proceeding easterly along Westminister Blvd to Unnamed, and proceeding southerly along Unnamed to Westminister Blvd, and proceeding easterly along Westminister Blvd to Clinton St, and proceeding southerly along Clinton St to Unnamed, and proceeding southerly along Unnamed to Clinton St, and proceeding southerly along Clinton St to Unnamed, and proceeding westerly along Unnamed to W 5th St, and proceeding westerly along W 5th St to N Jackson St, and proceeding northerly along N Jackson St to Hazard Ave, and proceeding westerly along Hazard Ave to N Harbor Blvd, and proceeding southerly along N Harbor Blvd to W 1st St, and proceeding easterly along W 1st St to Unnamed, and proceeding southerly along Unnamed to W 1st St, and proceeding easterly along W 1st St to Unnamed, and proceeding southerly along Unnamed to W McFadden Ave, and proceeding easterly along W McFadden Ave to S Mohawk Dr, and proceeding southerly along S Mohawk Dr to W McFadden Ave, and proceeding easterly along W McFadden Ave to S Huron Dr, and proceeding northerly along S Huron Dr to W McFadden Ave, and proceeding easterly along W McFadden Ave to S Fairview St, and proceeding southerly along S Fairview St to W Dahl Ln, and proceeding easterly along W Dahl Ln to S Fairview St, and proceeding southerly along S Fairview St to W Borchard Ave, and proceeding westerly along W Borchard Ave to S Fairview St, and proceeding southerly along S Fairview St to W St Gertrude PI, and proceeding easterly along W St Gertrude PI to S Fairview St, and proceeding southerly along S Fairview St to W Warner Ave, and proceeding easterly along W Warner Ave to S Diamond St, and proceeding northerly along S Diamond St to W Warner Ave, and proceeding easterly along W Warner Ave to S Raitt St, and proceeding southerly along S Raitt St to Raitt St, and proceeding southerly along Raitt St to W Alton Ave, and proceeding westerly along W Alton Ave to S Greenville St, and proceeding southerly along S Greenville St to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to S Fairview St, and proceeding southerly along S Fairview St to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to S Fairview St, and proceeding northerly along S Fairview St to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to S Harbor Blvd, and proceeding southerly along S Harbor Blvd to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to Unnamed, and proceeding northerly along Unnamed to Macarthur Blvd, and proceeding northerly along Macarthur Blvd to Unnamed, and proceeding northerly along Unnamed to W Lehnhardt Ave, and proceeding westerly along W Lehnhardt Ave to Unnamed, and proceeding westerly along Unnamed to Sterling Ct, and proceeding southerly along Sterling Ct to Lilac Ave, and proceeding westerly along Lilac Ave to W Lilac Ave, and proceeding westerly along W Lilac Ave to W Edinger Ave, and proceeding westerly along W Edinger Ave to Unnamed, and proceeding westerly along Unnamed to W Edinger Ave, and proceeding westerly along W Edinger Ave to Unnamed, and proceeding northerly along Unnamed to S Euclid St, and proceeding northerly along S Euclid St to Unnamed, and Exhibit 2 11 A-7 aaa]�street PMN, 9a66am8686 j)5. "p sacvameneo. ea 90a6 infoeredietaictingputcera.com proceeding easterly along Unnamed to S Euclid St, and proceeding northerly along S Euclid St to the point of beginning. District B. The region bounded and described as follows: Beginning at the point of intersection of S Harbor Blvd and Harbor Blvd, and proceeding northerly along S Harbor Blvd to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to S Fairview St, and proceeding southerly along S Fairview St to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to S Fairview St, and proceeding northerly along S Fairview St to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to S Greenville St, and proceeding northerly along S Greenville St to W Alton Ave, and proceeding easterly along W Alton Ave to Raitt St, and proceeding northerly along Raitt St to S Raitt St, and proceeding northerly along S Raitt St to W Warner Ave, and proceeding westerly along W Warner Ave to S Diamond St, and proceeding southerly along S Diamond St to W Warner Ave, and proceeding westerly along W Warner Ave to S Fairview St, and proceeding northerly along S Fairview St to W St Gertrude PI, and proceeding westerly along W St Gertrude PI to S Fairview St, and proceeding northerly along S Fairview St to W Edinger Ave, and proceeding northerly along W Edinger Ave to S Fairview St, and proceeding northerly along S Fairview St to W Borchard Ave, and proceeding easterly along W Borchard Ave to S Fairview St, and proceeding northerly along S Fairview St to W Dahl Ln, and proceeding westerly along W Dahl Ln to S Fairview St, and proceeding northerly along S Fairview St to W McFadden Ave, and proceeding westerly along W McFadden Ave to S Huron Dr, and proceeding southerly along S Huron Dr to W McFadden Ave, and proceeding westerly along W McFadden Ave to S Mohawk Dr, and proceeding northerly along S Mohawk Dr to W McFadden Ave, and proceeding westerly along W McFadden Ave to Unnamed, and proceeding northerly along Unnamed to S Fairview St, and proceeding southerly along S Fairview St to Willits St, and proceeding easterly along Willits St to W Willits St, and proceeding easterly along W Willits St to Diamond St, and proceeding easterly along Diamond St to W Willits St, and proceeding easterly along W Willits St to S Raitt St, and proceeding northerly along S Raitt St to W 1st St, and proceeding easterly along W 1st St to Bristol St, and proceeding southerly along Bristol St to W Bishop St, and proceeding easterly along W Bishop St to S Shelton St, and proceeding southerly along S Shelton St to Unnamed, and proceeding southerly along Unnamed to S Shelton St, and proceeding southerly along S Shelton St to W McFadden Ave, and proceeding westerly along W McFadden Ave to Bristol St, and proceeding southerly along Bristol St to W McFadden Ave, and proceeding westerly along W McFadden Ave to S Pacific Ave, and proceeding southerly along S Pacific Ave to W Wilshire Ave, and proceeding westerly along W Wilshire Ave to S Spruce St, and proceeding southerly along S Spruce St to W Edinger Ave, and proceeding westerly along W Edinger Ave to Unnamed, and proceeding southerly along Unnamed to W Edinger Ave, and proceeding westerly along W Edinger Ave to S Raitt St, and proceeding southerly along S Raitt St to W Occidental St, and proceeding easterly along W Occidental St to Unnamed, and proceeding easterly along Unnamed to W Warner Ave, and proceeding easterly along W Warner Ave to Bristol St, and proceeding southerly along Bristol St to Unnamed, and proceeding westerly along Unnamed to Bristol St, and proceeding southerly along Bristol St to Sunflower Ave, and proceeding westerly along Sunflower Ave to S Bear St, and proceeding northerly along S Bear St to W Wakeham PI, and proceeding westerly along W Wakeham PI to Wakeham Ave, and proceeding westerly along Wakeham Ave to Sunflower Ave, and proceeding westerly along Sunflower Ave to Unnamed, and proceeding westerly along Unnamed to S Fairview St, and proceeding southerly along S Fairview St to 11 A-8 2207 Gstr"t, PHONE 9a66an-8656 sacrnmenM, en 958x6 1nf.o.diatri0ingpavt"rsx0w Fairview Rd, and proceeding southerly along Fairview Rd to Sunflower Ave, and proceeding westerly along Sunflower Ave to Unnamed, and proceeding northerly along Unnamed to Harbor Blvd, and proceeding northerly along Harbor Blvd to the point of beginning. District C. The region bounded and described as follows: Beginning at the point of intersection of Hazard Ave and N Harbor Blvd, and proceeding easterly along Hazard Ave to N Jackson St, and proceeding southerly along N Jackson St to W 5th St, and proceeding easterly along W 5th St to Unnamed, and proceeding northerly along Unnamed to Mar Les W, and proceeding northerly along Mar Les W to Unnamed, and proceeding northerly along Unnamed to W 17th St, and proceeding easterly along W 17th St to N Ross St, and proceeding southerly along N Ross St to W 17th St, and proceeding easterly along W 17th St to E 17th St, and proceeding easterly along E 17th St to Unnamed, and proceeding easterly along Unnamed to E 17th St, and proceeding easterly along E 17th St to Unnamed, and proceeding easterly along Unnamed to E 17th St, and proceeding easterly along E 17th St to Lincoln Ave, and proceeding southerly along Lincoln Ave to 1- 5, and proceeding easterly along 1- 5 to Burlington Northern Santa Fe Rlwy, and proceeding southerly along Burlington Northern Santa Fe Rlwy to Stafford St, and proceeding westerly along Stafford St to Civic Center Or E, and proceeding westerly along Civic Center Or E to Unnamed, and proceeding northerly along Unnamed to E Washington Ave, and proceeding westerly along E Washington Ave to Unnamed, and proceeding westerly along Unnamed to E Washington Ave, and proceeding westerly along E Washington Ave to N Main St, and proceeding southerly along N Main St to W 1st St, and proceeding westerly along W 1st St to Bristol St, and proceeding northerly along Bristol St to W 1st St, and proceeding westerly along W 1st St to S Raitt St, and proceeding southerly along S Raitt St to W Willits St, and proceeding westerly along W Willits St to Diamond St, and proceeding westerly along Diamond St to W Willits St, and proceeding westerly along W Willits St to Willits St, and proceeding westerly along Willits St to S Fairview St, and proceeding westerly along S Fairview St to Unnamed, and proceeding westerly along Unnamed to W 1st St, and proceeding westerly along W 1st St to Unnamed, and proceeding southerly along Unnamed to W 1st St, and proceeding westerly along W 1st St to Unnamed, and proceeding northerly along Unnamed to W 1st St, and proceeding westerly along W 1st St to N Harbor Blvd, and proceeding northerly along N Harbor Blvd to the point of beginning. District D. The region bounded and described as follows: Beginning at the point of intersection of S Raitt St and W Occidental St, and proceeding northerly along S Raitt St to W Edinger Ave, and proceeding easterly along W Edinger Ave to Unnamed, and proceeding northerly along Unnamed to W Edinger Ave, and proceeding easterly along W Edinger Ave to S Spruce St, and proceeding northerly along S Spruce St to W Wilshire Ave, and proceeding easterly along W Wilshire Ave to S Pacific Ave, and proceeding northerly along S Pacific Ave to W McFadden Ave, and proceeding easterly along W McFadden Ave to Bristol St, and proceeding northerly along Bristol St to W McFadden Ave, and proceeding easterly along W McFadden Ave to S Shelton St, and proceeding northerly along S Shelton St to W Cubbon St, and proceeding northerly along W Cubbon St to S Shelton St, and proceeding northerly along S Shelton St to 11 A-9 2]0 7 c Street, Pffom 9x66.2-8666 bi aM' euramento. ce 958.6 inEoeredi¢tdctlngparmers.com i1I "t W Bishop St, and proceeding westerly along W Bishop St to Bristol St, and proceeding northerly along Bristol St to W 1st St, and proceeding easterly along W 1st St to S Main St, and proceeding southerly along S Main St to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to S Flower St, and proceeding southerly along S Flower St to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to Unnamed, and proceeding northerly along Unnamed to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to Unnamed, and proceeding southerly along Unnamed to Macarthur Blvd, and proceeding westerly along Macarthur Blvd to Bristol St, and proceeding northerly along Bristol St to Unnamed, and proceeding easterly along Unnamed to Bristol St, and proceeding northerly along Bristol St to W Warner Ave, and proceeding westerly along W Warner Ave to Unnamed, and proceeding northerly along Unnamed to W Occidental St, and proceeding westerly along W Occidental St to the point of beginning. District E. The region bounded and described as follows: Beginning at the point of intersection of Unnamed and W 17th St, and proceeding easterly along Unnamed to Fairview St, and proceeding northerly along Fairview St to Unnamed, and proceeding easterly along Unnamed to Garden Grove Blvd, and proceeding easterly along Garden Grove Blvd to The City Dr S, and proceeding easterly along The City Dr S to W Memory Ln, and proceeding easterly along W Memory Ln to Unnamed, and proceeding northerly along Unnamed to N Hesperian St, and proceeding northerly along N Hesperian St to Unnamed, and proceeding northerly along Unnamed to 1- 5, and proceeding northerly along 1- 5 to Unnamed, and proceeding northerly along Unnamed to 1- 5, and proceeding northerly along 1- 5 to Unnamed, and proceeding northerly along Unnamed to 1- 5, and proceeding southerly along 1- 5 to Unnamed, and proceeding easterly along Unnamed to Bronson St, and proceeding easterly along Bronson St to S Main St, and proceeding southerly along S Main St to N Main St, and proceeding southerly along N Main St to Unnamed, and proceeding easterly along Unnamed to S Tustin St, and proceeding southerly along S Tustin St to Unnamed, and proceeding westerly along Unnamed to E Fairhaven Ave, and proceeding easterly along E Fairhaven Ave to Unnamed, and proceeding easterly along Unnamed to Ponderosa St, and proceeding southerly along Ponderosa St to Unnamed, and proceeding westerly along Unnamed to N Tustin Ave, and proceeding southerly along N Tustin Ave to E 17th St, and proceeding easterly along E 17th St to Unnamed, and proceeding northerly along Unnamed to E 17th St, and proceeding easterly along E 17th St to Unnamed, and proceeding southerly along Unnamed to N Tustin Ave, and proceeding southerly along N Tustin Ave to Tustin Ave, and proceeding southerly along Tustin Ave to Unnamed, and proceeding westerly along Unnamed to E 1st St, and proceeding easterly along E 1st St to Unnamed, and proceeding southerly along Unnamed to 1- 5, and proceeding westerly along 1- 5 to Unnamed, and proceeding westerly along Unnamed to E Main St, and proceeding westerly along E Main St to Unnamed, and proceeding southerly along Unnamed to S Lyon St, and proceeding southerly along S Lyon St to Unnamed, and proceeding southerly along Unnamed to Burlington Northern Santa Fe Rlwy, and proceeding westerly along Burlington Northern Santa Fe Rlwy to S Grand Ave, and proceeding northerly along S Grand Ave to S McClay St, and proceeding northerly along S McClay St to E 1st St, and proceeding westerly along E 1st St to N Grand Ave, and proceeding northerly along N Grand Ave to E 1st St, and proceeding westerly along E 1st St to Union Pacific RR, and proceeding northerly along Union Pacific RR to E 4th St, and proceeding easterly along E 4th St to Burlington Northern Santa Fe Rlwy, and proceeding northerly along Burlington Northern Santa Fe Rlwy to 1- 5, and proceeding westerly along 1- 5 11A-10 uay a street, Fx.g a6 6.-8686 sacraments, a 958a6 inf9Lmdistrktingpartnerawm to Lincoln Ave, and proceeding northerly along Lincoln Ave to E 17th St, and proceeding westerly along E 17th St to 1- 5, and proceeding westerly along 1- 5 to E 17th St, and proceeding westerly along E 17th St to Penn Way, and proceeding westerly along Penn Way to E 17th St, and proceeding westerly along E 17th St to W 17th St, and proceeding westerly along W 17th St to N Ross St, and proceeding northerly along N Ross St to W 17th St, and proceeding westerly along W 17th St to the point of beginning. District F. The region bounded and described as follows: Beginning at the point of intersection of Bristol St and Sunflower Ave, and proceeding northerly along Bristol St to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to Unnamed, and proceeding northerly along Unnamed to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to Unnamed, and proceeding southerly along Unnamed to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to S Flower St, and proceeding northerly along S Flower St to Macarthur Blvd, and proceeding easterly along Macarthur Blvd to S Main St, and proceeding northerly along S Main St to Unnamed, and proceeding northerly along Unnamed to S Main St, and proceeding northerly along S Main St to N Main St, and proceeding northerly along N Main St to E Washington Ave, and proceeding easterly along E Washington Ave to Unnamed, and proceeding easterly along Unnamed to E Washington Ave, and proceeding easterly along E Washington Ave to Unnamed, and proceeding southerly along Unnamed to Civic Center Dr E, and proceeding easterly along Civic Center Dr E to Stafford St, and proceeding easterly along Stafford St to Burlington Northern Santa Fe Rlwy, and proceeding southerly along Burlington Northern Santa Fe Rlwy to E 4th St, and proceeding westerly along E 4th St to Union Pacific RR, and proceeding southerly along Union Pacific RR to E 1st St, and proceeding easterly along E 1st St to N Grand Ave, and proceeding southerly along N Grand Ave to E 1st St, and proceeding easterly along E 1st St to S McClay St, and proceeding southerly along S McClay St to S Grand Ave, and proceeding southerly along S Grand Ave to Burlington Northern Santa Fe Rlwy, and proceeding easterly along Burlington Northern Santa Fe Rlwy to S Lyon St, and proceeding northerly along S Lyon St to Unnamed, and proceeding easterly along Unnamed to McFadden Ave, and proceeding easterly along McFadden Ave to Costa Mesa Fwy, and proceeding southerly along Costa Mesa Fwy to Unnamed, and proceeding southerly along Unnamed to at and Sf Rlwy, and proceeding southerly along at and Sf Rlwy to Unnamed, and proceeding southerly along Unnamed to Edinger Ave, and proceeding easterly along Edinger Ave to Unnamed, and proceeding westerly along Unnamed to Costa Mesa Fwy, and proceeding southerly along Costa Mesa Fwy to Warner Ave, and proceeding easterly along Warner Ave to Red Hill Ave, and proceeding southerly along Red Hill Ave to Alton Pkwy, and proceeding westerly along Alton Pkwy to Unnamed, and proceeding westerly along Unnamed to Main St, and proceeding northerly along Main St to Sunflower Ave, and proceeding westerly along Sunflower Ave to the point of beginning. 11A-11 11A-12 CITY COUNCIL MEETING DATE: DECEMBER 4, 2015 TITLE: ORDINANCE SECOND READING: ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND (STRATEGIC PLAN NO. 5,1) r6qA q�%�fYY' � CIT ANAGER Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On November 20, 2018, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 5-0 (Pulido and Sarmiento abstained): ORDINANCE NO. NS -2959 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND In summary, the Cannabis Fund will be used to fund new or additional Youth Services but, will not be used to supplement existing Youth Services. The Cannabis Fund will also be used to fund community enforcement and code enforcement. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). FISCAL IMPACT There is no fiscal impact associated with this action. Maria 0. Huizar Clerk of the Council Exhibit: 1. Ordinance No. NS -2959 11B-1 11 B-2 11 B-3 11 B-4 SRC 11/20/18 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section XX is hereby added to Chapter 13 of the Santa Ana Municipal Code and shall read as follows: ARTICLE XX.- CANNABIS PUBLIC BENEFIT FUND. Sec. 13-200. - Establishment of the Fund. There is hereby established within the City of Santa Ana the "Cannabis Public Benefit Fund", which shall be two sub -funds, one for Enforcement Services and one for Youth Services, within the City's General Fund (the "Cannabis Fund"). Sec. 13-201.- Purpose. The Cannabis Fund shall be used to fund new or additional Youth Services, as of the date of the fund creation, for City of Santa Ana residents. The Cannabis Fund shall not be used to supplement existing Youth Services. The Cannabis Fund shall also be used to fund community enforcement and code enforcement. Sec. 13-202.- Definitions. For the purposes of this Article, the following words and phrases shall be construed as having the following definitions: Adult Use- shall have the same meaning as that set forth in Santa Ana Municipal Code ("SAMC") section 40-2(2) as may be periodically amended. At the time of adoption of this Article, meaning cannabis or cannabis products that are intended to be used for non -medicinal purposes by a person twenty-one (21) years of age or older. Commercial Cannabis Activity — shall have the same meaning as that set forth in SAMC section 40-2(9) as may be periodically amended. At the time of adoption of this Article, meaning the cultivation, possession, manufacture, distribution, processing, storing, laboratory, packaging, labeling, transportation, delivery or sale of cannabis or cannabis products as provided for in this Chapter Ordinance No. NS -XXX Page 1 of 4 11B-5 [Chapter 40]. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of this Chapter [Chapter 40]. Enforcement Services — any and all services provided by City staff for the prevention, detection, investigation and violations of the City's codes and ordinances intended to prevent public nuisances or activities that are detrimental to the health, safety and welfare of the community. Medicinal/Medical Cannabis- shall have the same meaning as that set forth in SAMC section 40-2(27) as may be periodically amended. At the time of adoption of this Article, meaning cannabis or a product containing cannabis, including, but not limited to, concentrates, and extractions, intended to be sold for use by medicinal cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the California Health and Safety Code. Medical cannabis retail is regulated by Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. Operating Agreement- shall have the same meaning as that set forth in SAMC section 40-1C as may be periodically amended. At the time of adoption of this Article, meaning a legally binding written agreement between each commercial cannabis business operator and the City, executed by the City Manager, or his or her designee, and in a form or substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. A distinct Commercial Cannabis Operating Agreement shall be required for each location and type of commercial cannabis business activity taking place at an approved Commercial Cannabis Business. Youth Services- any and all services provided to residents of the City under the age of 24 for athletic, recreational, health, educational, or human services, directly by City staff or through partnerships with third parties. This may include City facility improvements, maintenance and equipment needs related to youth services. Sec. 13-203. - Cannabis Revenue Funding. A. Automatic Deposit of Cannabis Tax Revenues into the Cannabis Fund. The Cannabis Fund shall be funded by an automatic deposit of twe *n.� (213) one-third (1/3) of all cannabis tax revenues generated each year for Enforcement Services and one-third (1/3) of all cannabis tax revenues generated each year for Youth Services, commencing with the Fiscal Year Budget for 2018-20 and continuing thereafter in the budget for each Fiscal Year, from all of the following: 1) Operating Agreements for Commercial Cannabis businesses and 2) Any newly adopted Cannabis Business License Tax. For purposes of this subsection, in addition to the descriptions provided directly above in this paragraph, the phrase "cannabis tax revenues' means all revenues generated from any new or increased cannabis tax which has been approved by the voters of the City on or after the effective date of this Chapter and any increase of the cannabis tax authorized by the Santa 2 Ordinance No. NS -XXX 11 B-6 Page 2 of 4 Ana Municipal Code and approved by the City Council. Tax revenue from Medicinal/Medical Cannabis shall not go into the Cannabis Fund. Funds in this these sub -funds shall be carried over from year-to-year. B. Discretionary Deposits into Cannabis Fund not Prohibited. Nothing in this Chapter shall prohibit the City Council, as part of the budgeting process, from contributing additional revenues to the Cannabis Fund, as determined in the City Council's sound legislative discretion. C. Expenditures from the Cannabis Fund. Funds in the Cannabis Fund shall be restricted to 1) Youth Services: expenditures for new, additional or enhanced, as of the date the Cannabis Fund is created, Youth Services for City of Santa Ana residents and 2) Enforcement Services: expenditures for Enforcement Services. Sec. 13-204.- Presentation to City Council. At least two times per year the City Manager shall make a presentation to the City Council and report on the revenue that has been deposited in the Cannabis Fund and expenditures from the Cannabis Fund. Sec. 13-205. - Procedure for Amending, Suspending or Rescinding Ordinance. This ordinance may only be amended, suspended or rescinded by an affirmative vote of at least two-thirds of the City Council after making findings that a structural deficit exists in the same manner as required to access the Economic Uncertainty Account as set forth in the City's Budget and Financial Policy. Section 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of 2018. Miguel A. Pulido Mayor Ordinance No. NS -XXX 3 Page 3 of 4 11 B-7 APPROVED AS TO FORM //Sonia R. Carvalho// SONIA R. CARVALHO City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2018, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 11 B-8 Ordinance No. NS -XXX Page 4 of 4 CLEAN VERSION 11 B-9 11B-10 SRC 11/20/18 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section XX is hereby added to Chapter 13 of the Santa Ana Municipal Code and shall read as follows: ARTICLE XX.- CANNABIS PUBLIC BENEFIT FUND. Sec. 13-200. - Establishment of the Fund. There is hereby established within the City of Santa Ana the "Cannabis Public Benefit Fund", which shall be two sub -funds, one for Enforcement Services and one for Youth Services, within the City's General Fund (the "Cannabis Fund"). Sec. 13-201.- Purpose. The Cannabis Fund shall be used to fund new or additional Youth Services, as of the date of the fund creation, for City of Santa Ana residents. The Cannabis Fund shall not be used to supplement existing Youth Services. The Cannabis Fund shall also be used to fund community enforcement and code enforcement. Sec. 13-202.- Definitions. For the purposes of this Article, the following words and phrases shall be construed as having the following definitions: Adult Use- shall have the same meaning as that set forth in Santa Ana Municipal Code ("SAMC") section 40-2(2) as may be periodically amended. At the time of adoption of this Article, meaning cannabis or cannabis products that are intended to be used for non -medicinal purposes by a person twenty-one (21) years of age or older. Commercial Cannabis Activity — shall have the same meaning as that set forth in SAMC section 40-2(9) as may be periodically amended. At the time of adoption of this Article, meaning the cultivation, possession, manufacture, distribution, processing, storing, laboratory, packaging, labeling, transportation, delivery or sale of cannabis or cannabis products as provided for in this Chapter Ordinance No. NS -XXX Page 1 of 4 11B-11 [Chapter 401. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of this Chapter [Chapter 40]. Enforcement Services — any and all services provided by City staff for the prevention, detection, investigation and violations of the City's codes and ordinances intended to prevent public nuisances or activities that are detrimental to the health, safety and welfare of the community. Medicinal/Medical Cannabis- shall have the same meaning as that set forth in SAMC section 40-2(27) as may be periodically amended. At the time of adoption of this Article, meaning cannabis or a product containing cannabis, including, but not limited to, concentrates, and extractions, intended to be sold for use by medicinal cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the California Health and Safety Code. Medical cannabis retail is regulated by Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. Operating Agreement- shall have the same meaning as that set forth in SAMC section 40-1 C as may be periodically amended. At the time of adoption of this Article, meaning a legally binding written agreement between each commercial cannabis business operator and the City, executed by the City Manager, or his or her designee, and in a form or substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. A distinct Commercial Cannabis Operating Agreement shall be required for each location and type of commercial cannabis business activity taking place at an approved Commercial Cannabis Business. Youth Services- any and all services provided to residents of the City under the age of 24 for athletic, recreational, health, educational, or human services, directly by City staff or through partnerships with third parties. This may include City facility improvements, maintenance and equipment needs related to youth services. Sec. 13-203. - Cannabis Revenue Funding. A. Automatic Deposit of Cannabis Tax Revenues into the Cannabis Fund, The Cannabis Fund shall be funded by an automatic deposit of one-third (1/3) of all cannabis tax revenues generated each year for Enforcement Services and one-third (1/3) of all cannabis tax revenues generated each year for Youth Services, commencing with the Fiscal Year Budget for 2018-20 and continuing thereafter in the budget for each Fiscal Year, from all of the following: 1) Operating Agreements for Commercial Cannabis businesses and 2) Any newly adopted Cannabis Business License Tax. For purposes of this subsection, in addition to the descriptions provided directly above in this paragraph, the phrase "cannabis tax revenues" means all revenues generated from any new or increased cannabis tax which has been approved by the voters of the City on or after the effective date of this Chapter and any increase of the cannabis tax authorized by the Santa Ana Municipal Code and approved 2 Ordinance No. NS -XXX 11B-12 Page 2 of 4 by the City Council. Tax revenue from Medicinal/Medical Cannabis shall not go into the Cannabis Fund. Funds in this these sub -funds shall be carried over from year-to-year. B. Discretionary Deposits into Cannabis Fund not Prohibited. Nothing in this Chapter shall prohibit the City Council, as part of the budgeting process, from contributing additional revenues to the Cannabis Fund, as determined in the City Council's sound legislative discretion. C. Expenditures from the Cannabis Fund. Funds in the Cannabis Fund shall be restricted to 1) Youth Services: expenditures for new, additional or enhanced, as of the date the Cannabis Fund is created, Youth Services for City of Santa Ana residents and 2) Enforcement Services: expenditures for Enforcement Services. Sec. 13-204.- Presentation to City Council. At least two times per year the City Manager shall make a presentation to the City Council and report on the revenue that has been deposited in the Cannabis Fund and expenditures from the Cannabis Fund. Sec. 13-205. - Procedure for Amending, Suspending or Rescinding Ordinance. This ordinance may only be amended, suspended or rescinded by an affirmative vote of at least two-thirds of the City Council after making findings that a structural deficit exists in the same manner as required to access the Economic Uncertainty Account as set forth in the City's Budget and Financial Policy. Section 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of 2018. Miguel A. Pulido Mayor Ordinance No. NS -XXX 3 Page 3 of 4 11B-13 APPROVED AS TO FORM //Sonia R. Carvalho// SONIA R. CARVALHO City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2018, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 4 Ordinance No. NS -XXX 11B-14 Page 4of4 CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: ORDINANCE SECOND READING: APPROVING AMENDMENT APPLICATION NO. 2018-08 REZONING THE PROPERTIES LOCATED AT 301 NORTH TUSTIN AVENUE, 325 NORTH TUSTIN AVENUE, 401 NORTH TUSTIN AVENUE, AND 2320 EAST FOURTH STREET FROM THE PROFESSIONAL (P) TO THE GENERAL COMMERCIAL (C2) ZONING DISTRICT (STRATEGIC PLAN NO. 5,1) CIT*JMANAGER Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO I�I��►1�1@I�igzt On November 20, 2018, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 7-0: ORDINANCE NO. NS -2960 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-08 REZONING THE PROPERTIES LOCATED AT 301 NORTH TUSTIN AVENUE, 325 NORTH TUSTIN AVENUE, 401 NORTH TUSTIN AVENUE, AND 2320 EAST FOURTH STREET FROM THE PROFESSIONAL (P) TO THE GENERAL COMMERCIAL (C2) ZONING DISTRICT In summary, the ordinance will change the zoning district of the properties located at the northeast and southeast corners of Tustin Avenue and Fourth Street from Professional (P) to General Commercial (C2). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). 11C-1 Second Reading Ordinance: Approving Amendment Application No. 2018-08 December 4, 2018 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Maria D. Huizar Clerk of the Council Exhibit: 1. Ordinance No. NS -2960 11C-2 LS 11.20.18 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-08 REZONING THE PROPERTIES LOCATED AT 301 NORTH TUSTIN AVENUE, 325 NORTH TUSTIN AVENUE, 401 NORTH TUSTIN AVENUE, AND 2320 EAST FOURTH STREET FROM THE PROFESSIONAL (P) TO THE GENERAL COMMERCIAL (C2) ZONING DISTRICT THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A, Richard Finkel (Applicant), representing Russell Fischer LP, has filed Amendment Application No. 2018-08 with the City of Santa Ana to change the zoning designation of the parcels located at 301 and 325 North Tustin Avenue from Professional (P) to General Commercial (C2) in order to facilitate construction of a new multi -tenant commercial building with ancillary drive-through service at 301 North Tustin Avenue and a service station at 325 North Tustin Avenue. B. in addition, the City of Santa Ana is proposing to amend the zoning designation of 401 North Tustin Avenue and 2320 East Fourth Street from Professional (P) to General Commercial (C2). C. General Plan Amendment No, 2018-05 was filed concurrently with the Amendment Application for consistency with the General Plan. D. On October 8, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt an ordinance approving Amendment Application No. 2018-08 which is consistent with the General Plan, as amended by General Plan Amendment No. 2018-05. E. The City Council has reviewed applicable general plan policies and has determined that this proposed rezoning is consistent with the purpose of the general plan. F. The City Council, prior to taking action on this ordinance, held a duly noticed public hearing on November 20, 2018. G. The City Council also adopts as findings all facts presented in the Request for Council Action dated November 20, 2018 accompanying this matter. Ordinance No. NS•XXXX Page 1 of 3 11C-3 H. For these reasons, and each of them, Amendment Application No. 2018- 08 is hereby found and determined to be consistent with the intent and purpose of Chapter 41 of the Santa Ana Municipal Code, thus changing the zoning district is found to be consistent with the General Plan of the City of Santa Ana and otherwise justified by the public necessity, convenience, and general welfare. Section 2. The Planning Commission of the City of Santa Ana recommends that the City Council adopt an ordinance rezoning the real properties located at 301, 325 and 401 North Tustin Avenue and 2320 East Fourth Street and Amended Sectional District Map number 9-5-9 showing the above described change in use district designation (AA No. 2018-08), This recommendation is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Planning Commission and Council Action dated October 8, 2018 and November 20, 2018, respectively and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Section 3. The City Council has reviewed and considered the information contained in the Mitigated Negative Declaration (Environmental Review No. 2016-156) prepared with respect to this project. The City Council has, as a result of its consideration of the record as a whole and the evidence presented at the hearings on this matter, determined that, as required pursuant to the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, Environmental Review No. 2016- 156 meets all the requirements of CEQA. Section 4. The zoning designation of the real properties located at 301 North Tustin Avenue, 325 North Tustin Avenue, 401 North Tustin Avenue and 2320 East Fourth Street is hereby reclassified from Professional (P) to General Commercial (C2). An amended Sectional District Map, showing the above described changes in use district designation, is hereby approved and attached hereto as Exhibit A, and incorporated by this reference as though fully set forth herein. Section 6.' This ordinance shall not be effective unless and until Resolution No. 2018- (Environmental Review No. 2016-156 and General Plan Amendment No. 2018-05) is adopted and becomes effective. If either resolution and/or ordinance are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. Section 7. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Ordinance No. NS-XXXX Page 2 of 3 11C-4 Section 8. The Applicant agrees to indemnify, hold harmless, and defend the City of Santa Ana, its officials, officers, agents, and employees, from any and all liability, claims, actions or proceedings that may be brought arising out of its approval of this project, and any approvals associated with the project, including, without limitation, any environmental review or approval, except to the extent caused by the sole negligence of the City of Santa Ana. ADOPTED this day of , 2018. Miguel A. Pulido Mayor Sonia R. Carvalho City Attorney F By: isa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2018 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 11C-5 Ordinance No. NS-XXXX Page 3 of 3 RI 11TH ST cl rtx rt 4TH ST 7ANING DISTRICTS r m ....1 1 1 1 1• 1 1 1 1 1 1 1 1 1 1 i 1 I VINE BLVD 1 Al GENERAL AGRICULTURAL CSM SOUTH1VIANSTREETCOMME2CWLDST. R2 TV4O FAMLYRESIDFNCE -B PARKNGMODFICATDN C1 COWAUNITYCON4.ERCIAL GC GOVETNMENTCENTR R3 MULTIPLE-FAMILYRESDENCE -OZ OVENLAYZONE CAD COMMUNITY COMMERCIAL - MUSEUM DST. Mi LDHTWDUSTRIAL R4 SUBURBANAPARTMENT PRD PLANNEDRESDENR4L C2 GENERALCOMMERCIAL M2 HEAVY INDUSTRIAL RE RESIDENTIAL ESTATE DEVE-OPM 04 PLANNEDSHOPPWGCePE2 O OPENSPACE ED SPECFICOEVELOPMENT -1-102 HBGHTDSTRCTU C5 ARTERIAL COMMERCIAL P PROFESSIONAL SP SPECFICPLAN CR COVAIMCIAL RESDEN IAL RI SINGLE-FAMLYRESDENCE SECTIONAL DISTRICT MAP: 9-5-9 e CITY OR SANTA ANA, CALIFORNIA M. 11C-6 0 • f A • CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: ADOPT A RESOLUTION OF INTENT TO VACATE BREEDEN STREET AND A PORTION OF THIRD STREET, ABANDONMENT NO. 18-03 {STRATEGIC PLAN NO. 3,2) CI -V MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution which declares the City's intent to vacate Breeden Street and a portion of Third Street, and which sets a public hearing for January 15, 2019. DISCUSSION The requested street vacation along with the street dedication of Standard Avenue will allow for the realignment of Standard Avenue, greatly improving vehicular circulation and access along Standard Avenue between First Street and Fourth Street as shown on Exhibit 1. The realignment is consistent with the City's Specific Plan Street Alignment (SPSA) No. 56 as shown in Exhibit 2 adopted by City Council in 1995. The proposed alignment will provide a direct connection from First Street to Fourth Street as compared to the current street alignment which is an indirect connection. The realignment will be achieved through the a) street vacation of Breeden/Third and b) offer of dedication of Standard Avenue as part of Tom's Truck Center's residential development project. In order to allow the Tom's Truck Center residential development to proceed, the developer is requesting that the City vacate Third Street between Standard Avenue and Breeden Street, and all of Breeden Street as shown on Exhibit 3. The street vacation and associated street offer of dedication are conditions of Tentative Tract Map No. 2017-03 as shown in Exhibit 4, and said tentative map includes the requirement that the developer dedicate and build an extension of Standard Avenue from Third Street to Fourth Street. The Tentative Tract Map was approved by the City's Planning Commission on January 22, 2018 to allow a 117 -unit residential development on the Tom's Truck Center site located at 905 East Second Street; 910, 927, 928 and 1000 East Third Street; and 1026 East Fourth Street. ANALYSIS According to a title report submitted by the applicant, the City owns a street easement over the east half of Breeden Street, which if vacated would revert to the Extra Space Storage property at 1030 East Fourth Street. The remainder of the property to be vacated — the west half of Breeden Street 12A-1 Resolution of Intent to Vacate Breeden Street and Third Street December 4, 2018 Page 2 and all of Third Street - is owned in fee by the City of Santa Ana as shown in Exhibit 5. After vacation, the property will be incorporated into the adjacent properties. Third Street and the west half of Breeden Street will be incorporated into the Tom's Truck Center development. The additional land area reduces the site's constraints and improves overall site function, such as setbacks, building location, and site accessibility. The east half of Breeden Street will revert to the Extra Space Storage property at 1030 East Fourth Street. Representatives for Extra Space Storage have indicated concurrence with the request to vacate, and have expressed a desire to incorporate the vacated right-of-way into their site. While the City has not received a site plan for the expanded Extra Space Storage property, any expansion proposed for the site would be subject to City development requirements. Utilities, other government agencies, and City agencies have been advised of the street vacation. In addition, the Tom's Truck Center developer would be required to complete any necessary utility relocations, dedicate the right-of-way and build Standard Avenue, and coordinate with Extra Space Storage to remove remnants of Breeden Street before the vacation of the streets becomes effective. The final vacation resolution to be considered for adoption by City Council will include these conditions. The recommended action adopts a resolution of City Council's intent to vacate the streets and sets a public hearing date for January 15, 2019 (Exhibit 6), at which time the order to vacate may be approved by the City Council. STRATEGIC PLAN ALIGNMENT This item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). There6s rio fiscal impact associated with this action. I I Fuad S -S Executive Public Wo FSS/EWG/TH ISS, PE, PLS Agency Exhibits: 1. Realignment Map 2. City's Specific Plan Street Alignment (SPSA) No. 56 3. Street Vacation Area Map 4. Tentative Tract Map 5. Reversionary Rights Map 6. Resolution of Intent 12A-2 R L XX WBreeden X W U Q J a^ zU) ZOZ W H0 Q W QW _ ry 0 m LJ a o �:y FU ° EXHIBIT 1 c� 12A-3 C O w any pleNUIS N c a o ZLL 00 Q Qz o- U co O W W 0 @ w WW N m XX WBreeden X W U Q J a^ zU) ZOZ W H0 Q W QW _ ry 0 m LJ a o �:y FU ° EXHIBIT 1 c� 12A-3 C O w any pleNUIS N c Y U dl O Q rm N m c .Q � r O > OD n o a E O Y N V V M in LL U1 V` 12A-4 '1S N1XIS O/N .009 01'3AV imispN0 WONT '3Atl OUVONtl1S 1N3WNO11V 133819 01d103dS 86161. 103fOFld na Qa e A t It J8a t L N� d - an q }4 g, & 'nl , LU z DOE LLJ 00 0 Z Z LLJ � S r VFLr�,� U�[ uj LU pQ W o aFM. w Q CO��,� Pj LI'LJa I 'Wl' o W Z� p�0- > Q. y� WCC Q < Q OLLZo cQ D Z NA a < a i-- �ji� v U LLJ CC lL W �J EZ ii r __..,. -1_ LL �F F w, I LA IM I L t 8616 art I'�o°a"a s"�' Jl1 0 12''9 12 A T - OH! Split JAI 12 A T - OH! JAI 12 A T - OH! mmx TiLzSfi-.— .� 12Ac'"`tsn �aares 4TH STREET SCALE, 10-50' - — p.aa N9978'07"W 60,00' 30' 30' r"J PA RM 2 Q4 PARCEL MAP 90--120 D, z w o. w w INST. N0. 94-0670320 m PARCEL I o Q' 0.565 AC.� Q N893548"W 107.39' 300 0 Jo z 3 p STREET N69 35'48"tM 168.01' 30' 1 30' ( 1,34501641 U.fi, � P.M.R. 233127'-28 ,EXHIBIT 11311 SKETCH TO ACCOMPANY LEGAL FSANT AN`A SHEET 1 OF f SHEET STREF,T ARANOONMENT OCTOSER 3, 2016 GE-SA18236 12A-9 12A-10 IA mom 0 0 u u E: 14 Luu pq m 0 0 WO 0 Z - Lu YN Z U>" IL 0 U; < tD z uOR Q o --k ZZ 0 ..Qu oz� Z U, 0 ZZ 'ie OOZ EE< < .1c z "'.11 �J I Il I 1 15* d 1251 T I N F It I U FtEsTANDAR15SThkfiTIiEESHhTh HI 'b DE ICA Fn innate nf RRrrnr: ti if it !U 41f T- zh If. it R if fm I. 14 W js"4- Z AR z 9 r 4 1511 iiifu 131 1 I z:3 Pit 9 j if -lilt gl? 13 it "', gi lilt vi;IW2 ftl� iii li "'.11 �J I Il I 1 15* d 1251 T I N F It I U FtEsTANDAR15SThkfiTIiEESHhTh HI 'b DE ICA Fn innate nf RRrrnr: ti if it !U 41f T- zh If. it R if fm I. 14 W js"4- Z AR z 9 r 4 1511 iiifu 131 1 I z:3 Pit 9 j if -lilt gl? 13 it "', gi lilt vi;IW2 ftl� 12A-1-2 iii 4TH STREET SCALE.•? =50' P.O.B. PARCEL 2 �G QQ�q• q TOM'S TRUCK CENTER PROPERTY 1Nsr. N0, e Q N& _Z °o 0 � z 6 � N89: 30' 30' EXHIBIT 115" SKETCH TO ACCOMPANY A LEGAL DESOMPDON FOR CITY OF SANTA ANA STREET ABANDONMENT 94-0670820 107.39' 1345x/647 D.R. 12A-13 N8978'07'W 60.00' EXTRA SPACE STRAGE PROPERTY PARCEL MAP 93-120 CITY OWNED STREET EASEMENT. ® CITY OWNED FEE TITLE.+ PARCEL 1 0.565 ACf P.M.B. 233/21-28 SHEET i OF 1 SHEET 12A-14 Jmf 11120/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO VACATE ALL OF BREEDEN STREETAND A PORTION OF THIRD STREET BETWEEN STANDARD AVENUE AND BREEDEN STREET, SETTING A PUBLIC HEARING THEREON, AND DIRECTING NOTICE THEREOF TO BE POSTED AND PUBLISHED (ABANDONMENT NO. 18-03) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In accordance with Chapter 3 of Part 3 of Division 9 of the Streets and Highways Code of the State of California, the City Council of the City of Santa Ana hereby declares Its intention to vacate all of Breeden Street and a portion of Third Street between Standard Avenue and Breeden Street. The areas proposed for vacation are shown on the map attached as Exhibit A. B. Notice is hereby given that on January 15, 2019, at 5:45 P.M. or as soon as possible thereafter, in the Santa Ana City Council Chambers, 22 Civic Center Plaza, Santa Ana, California, a public hearing will be held by the City Council at which time any and all persons interested in or objecting to the proposed vacation described above may appear and be heard. Section 2. The Clerk of the Council is hereby directed to cause this Resolution to be published twice, once in each of the two successive weeks prior to the above -referenced hearing, in a newspaper of general circulation in the City. Section 3. The Executive Director of the Public Works Agency is hereby directed to post conspicuously, In the manner prescribed by law, notice of the adoption of this Resolution, containing the statement of the day, hour, and place of hearing set forth above, and describing the areas to be vacated at least two weeks before the day set for said hearing, Sectlon 4. This Resolution shall take effect immediately upon Its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2018.XXX Page 1 of 2 12A-15 jmf 11/20/18 ADOPTED this day of 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Udf. f John M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018- to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 12A-16 Resolution No. 2018 -XXX Page 2 of 2 1 4rH STREET �ti PA/'M J114f' .98-12a9 Lc A d"f NO. zi4 Ffr7Gr"PU I t�+ Y PARCEL 1 I n..sys aµe 14 JRD STREET I i Exhibit "A" 1 L+,Wi�l.+GtYH1,�iTM�'a�vlA4 MY (Y SkMA_ ava SHEET ? OF 1 Z E'i 12A-17 12A-18 REVISED 10/19/18 CITY OF SANTA ANAL SPECIAL COUNCIL COMMITTEE MEETING AGENDA ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY COMMITTEE OCTOBER 22, 2018 4:00 PM CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Michele Martinez, Chairperson P. David Benavides Vicente Sarmiento PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee. AGENDA ITEMS 1. Approval of Minutes of October 8, 2018 Special Meeting {Strategic Plan No. 5, 11 2. Affordable Housing Funding Solutions (Strategic Plan No. 5,3; 5,41 (Mayor Pro Tem Martinez) • Presentation by Ted Chandler and Ernesto Medrano, AFL-CIO Housing Investment Trust and LA/OC Building and Construction Trades Council 3. Tax Increment Financing Study {Strategic Plan No. 6,1) (Mayor Pro Tem Martinez) • Presentation by Kimberly Clark, Regional Planner — Data & GIS Southern California Association of Governments 4. Citywide and Mixed -Use Economic Assessment and Supplemental MEMU Design Policy Implementation Programs (Strategic Plan Nos. 3,2,3,4; 5,31 (Minh Thai, PBA) 5. FY 2018-19 First Quarter General Fund Update (Strategic Plan Nos. 4, 1) (Sergio Vidal, FMSA) 6. Food Truck Island Permit Process (Strategic Plan Nos. 3,3c) (Councilmember Benavides) 7. Housing Opportunity Ordinance (Strategic Plan Nos. 5,3b,3c) (Councilmember Benavides) Santa Ana City Council Miguel A. Pulido, Michele Martinez, Vicente Sarmiento, Jose Scions, P. David Benavides, Juan Villegas, Sal Tinajero, Mayor Mayor Pro Tem, Ward 2 1 Ward 1 Ward 3 Ward 4 Ward 5 Ward 6 MPulltlo(eRsanta-anaorq I MMadnearasanta-anaorq VSamlantorolsantaxnaoa Jsolono(oasanta-ana.org Manavldasronsanta-ana oro I Nillegi ST'nalero(alsen City Hall, 20 Civic Center Plaza s P.O. Box 1988 o Santa Ana, California 92702 Mayor & Council Telephone: 714-647.6900 a AgenI TX_4as: 714-647-5363 s Website: www.santa-ana.ora STAFF COMMENTS COMMITTEE MEMBER COMMENTS ADJOURNMENT — The next regular meeting is scheduled for Monday, November 12, 2018 at 5 PM If you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647- 5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title II, 28 CFR 35.102] The complete Strategic Plan document is available at htfp://www.santa-ana.org/strategic-planning/ ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET 2 n OCTOBER 22, 2018 AND TECHNOLOGY AGENDA 13A-2 CITY OF SANTA ANA CITY COUNCIL COMMITTEE ON ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY SPECIAL MEETING MINUTES _.._. s s .:r :..: ATTENDANCE: MEMBERS ABSENT: OCTOBER 22, 2018 City Hall 20 Civic Center Plaza, Room 1600 Santa Ana, CA 4:12 p.m. Council Committee members: P. David Benavides (4:21 PM) Michele Martinez, Chairperson Vicente Sarmiento None STAFF PRESENT: Raul Godinez II, City Manager Robert Cortez, Deputy City Manager Steven A. Mendoza, CDA Executive Director Minh Thai, PBA Executive Director Jack Ciulla, Chief Technology Innovations Officer Sergio Vidal, FMSA Acting Executive Director Ryan Hodge, Assistant City Attorney Candida Neal, Planning Manager Alvaro Nunez, Code Enforcement Manager Bianca L. Zurita, Recording Secretary PUBLIC COMMENTS Tc3��1�7�r7f.Y�llf.'�y[�7.�kY��!iF.l Approval of Minutes of Economic Development, Infrastructure, Budget and Technology Committee Special Meeting of October 8, 2018. MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Martinez, Sarmiento (2) NOES: None (0) ABSENT: Benavides (1) October 22, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-3 (Item #5 taken out of order) 5. FY 2018.19 First Quarter General Fund Update {Strategic Plan No. 4,1) (Sergio Vida, FMSA) Sergio Vidal, Acting Executive Director of Finance and Management Services provided summary of the General Fund Budget Summary, FY 2018-19 General Fund First Quarter Revenue and Expenditures, Vacancy Report and next steps for financial information for the current year for the City, Council Committee question and answer period ensued. Affordable Housing Funding Solutions (Strategic Plan No. 5,3; 5,4) (Mayor Pro Tem Martinez) • Presentation by Ted Chandler and Ernesto Medrano, AFL-CIO Housing Investment Trust and LAIOC Building and Construction Trades Council Mayor Pro Tem Martinez brought this item forward seeking housing solutions and funding options. Mr. Ted Chandler, (via telephone) Chief Operating Officer of the AFL-CIO Housing Investment Trust and Mr. Ernesto Medrano, Council Representative of Los Angeles and Orange Counties Building and Construction Trades Council presented opportunities for investment partners and funding options for Santa Ana affordable housing developments. Mayor Pro Tem Martinez thanked Mr. Chandler and Mr. Medrano for their time. She looks forward working with them. Staff will work with Mr. Chandler and Mr. Medrano on the next steps. 3. Tax Increment Financing Study (Strategic Plan No. 6,1) (Mayor Pro Tem Martinez) • Presentation by Kimberly Clark, Regional Planner— Data & GIS Southern California Association of Governments (SCAG) Mayor Pro Tem Martinez introduced Ms. Kimberly Clark, Regional Planner Specialist of Southern California Association of Governments (SCAG). Mayor Pro Tem Martinez wanted to introduce this Pilot SCAG project to City Council for about a year. SCAG has agreed to fund a study using Mr. Joseph Dieguez, Senior Vice President of Kosmont Companies to create a tax increment financing study area, which could provide an opportunity to fund infrastructure. Ms. Clark, provided the background on Tax Increment Financing Study Areas while Mr. Dieguez provided information on the Santa Ana study area. The Committee considered the map and added the Opportunity Zone overlay and the grade separation area on 17th Street from the Santa Ana freeway east to Grand Avenue. Mayor Pro Tem Martinez thanked Mr. Mendoza and Mr. Thai, SCAG staff and Kosmont Companies. Mayor Pro Tem Martinez reminded the Committee that the City October 22, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes on 13A-4 of Santa Ana is not paying for this pilot project, but SCAG procured Kosmont Companies to initiate this study. Mayor Pro Tem Martinez asked to move forward to City Council to initiate the Pilot project. Council Committee Member Benavides expressed gratitude to SCAG's expertise and talent on assisting the City on a project that will benefit the community. MOTION: Benavides SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Sarmiento (3) NOES: None (0) ABSENT: None (0) 4. Citywide and Mixed -Use Economic Assessment and Supplemental (MEMU) Design Policy Implementation Programs (Strategic Plan Nos. 3,2,3,4; 5,3) (Minh Thai, PBA) Candida Neal, Planning Manager of Planning and Building, presented an overview in response to Council Committee Members concerns for the MEMU expansion and requested economic impact assessment. They are looking at the economic assessment to have a citywide approach. The first part is Economic Assessment Framework and the second part is Design Policy Implementation Program. The Development Capacity Report assesses the impact of the proposed project of the MEMU. Ms. Neal explained that the principles of the MEMU Design Goals and Policies were implemented per Council Committee request. Council Committee Member Sarmiento requested to include in the framework the type of unit mix to avoid, misperception at the end of the process. Council Committee Member Benavides thanked staff for implementing the intent and interest on the MEMU expansion as previously discussed. Mayor Pro Tem Martinez stated she will provide comments in writing directly to Planning and Building staff. 6. Food Truck Island Permit Process (Strategic Plan Nos. 3,3c) (Councllmember Benavides) Council Committee Member Benavides reminded the Committee about discussions at previous City Council meetings and at EDIBT about how food trucks can apply for permits to run the business in a private property over someone selling on a public street or public -right-of-way. Alvaro Nunez, Code Enforcement Manager clarified that food trucks are allowed to operate on private property via the land use certificate process as a temporary approval. Mr. Nunez reminded the Committed that staff is looking to implement a pilot program, instituting some type of food truck island permit, to allow set up on October 22, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-5 private property or city -owned property. The permit will allow food trucks that have a contract with private property owners to operate after hours. The research is complete and staff is looking into the details to establish a requirement or process for City Council consideration. Council Committee Member Benavides asked what the timeline is for Council. Mr. Nunez stated they are working with the City Manager and City Attorney's office to have the pilot program in place possibly in 30 -days or sooner. The Pilot program will allow them to eliminate any concerns and have something palpable for the community. Council Committee Member Sarmiento suggested that mobile vending could sell more fruits and vegetables allowing them to sell closer to schools as a way to offer healthy alternatives. 7. Housing Opportunity Ordinance (Strategic Plan Nos. 5,3b,3c) (Councilmember Benavides) Council Committee Member Benavides clarified from other conversations, tools available with City Council intent to increase the affordable housing. Candida Neal, Planning Manager of Planning and Building stated that an ordinance revising the Housing Opportunity Ordinance (HOO) would be considered by the Planning Commission in November and then City Council in December for update and direction on possible revisions. Council Committee Member Benavides recommended to colleagues a special meeting to discuss and understand the HOO and other ideas and tools that might be consider to support affordable housing in the city. The City Manager will follow up with the City Clerk to schedule a special council meeting on the HOO. ITEMS MOVED TO NEXT COMMITTEE MEETING None COMMITTEE MEMBER COMMENTS: None October 22, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-6 NEXT MEETING: • Monday, November 26, 2018 Adjournment — 6:17 PM Audio of meeting available at: httr)s://www.santa-ana,org/cc/city-meetings Bianca L. Zurita Recording Secretary, CDA October 22, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-7 13A-8 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: RECEIVE AND FILE — FISCAL YEAR 2018-19 FIRST QUARTER BUDGET UPDATE AND VACANCY REPORT (STRATEGIC PLAN NO. 4, 1) 1 i\ Cly MANAGER RECOMMENDED ACTION Receive and file the following: Fiscal year 2018-19 First Quarter Budget Update. Fiscal year 2018-19 First Quarter Vacancy Report. DISCUSSION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER As part of City Council direction, staff is presenting a quarterly fiscal review for FY 2018-19, for the General Fund, and an update on current citywide vacancies. FISCAL YEAR 2018-19 General Fund: 1St Quarter Update (Exhibit 1) General fund revenues collected during the first quarter (July — September) amounted to approximately $25.5 million representing 9.6% of the general fund budget, slightly below the first quarter historical trend of ten percent (10%). This is $3 million higher than fiscal year 2017-18 of $22.5 million and is largely attributable to increases in sales tax ($300 thousand) permits and plan check (approximately $700 thousand), jail revenue ($1 million) and Adult -Use Retail cannabis revenue ($712 thousand). Top Six General Fund Revenues Sales Tax received in the first quarter represents only one payment. In October 2018, the City began to receive the unprocessed payments related to fiscal year 2017-18 from the California Department of Tax and Fee Administration (CDTFA) formerly the BOE. These unprocessed payments are combined with the City's regular sales tax allocation. Staff is currently working with the City's consultant to determine the amounts related to the prior fiscal year. An update will be provided as part of the Mid -Year (Second Quarter) Review. Property Tax received represents a minimal amount of $673 thousand, primarily consisting of unsecured and supplemental property tax and is slightly below the three-year trend of 2.3%. The 19C-1 Fiscal Year 2018-19 First Quarter Budget Update December 4, 2018 Page 2 majority of Property Tax collected occurs in the months of December (Second Quarter) and April (Fourth Quarter) and will be reflected in future budget updates. Similarly, fifty percent (50%) of the Property Tax in Lieu of VLF is received in January (Third Quarter) and May (Fourth Quarter). Business License continues to remain steady and is slightly above first quarter projections. The majority of Business License collected occurs in the month of March (Second Quarter) and April (Third Quarter). Hotel Visitors Tax (HVT) is near first quarter projections and with the recent opening of a new hotel in August and construction of a new hotel during the fiscal year, HVT should continue to meet projections. The City's Utility User Tax continues to decline by nearly four percent (4%) since fiscal year 2015-16 primarily due to a reduction in the telecommunication sector. Other General Fund Revenues: Jail Revenue is projected to meet estimated revenue as a result of continued housing of inmates from the US Marshals and Federal Bureau of Prisons. The first quarter amount of $2.2 million reflects only two months of billing for jail housing but is significantly higher than last year by $1 million largely as a result of the ramp -up in operations at the facility. As reflected in the first quarter revenue, Commercial Cannabis revenue has not been received. This is due in part, that the commercial cannabis industry is in its infancy stages and businesses have commenced the registration and permit process only. Additionally, the Adult Use — Retail cannabis operations continues to evolve and it is anticipated that more businesses will be entering the industry by the end of the current fiscal year. The current amounts received reflects approximately two months of revenue; however, revenues will continue to be monitored throughout the fiscal year. The Business Tax component on medical cannabis is projected to plateau this fiscal year in comparison to last fiscal year at $2.3 million. The introduction of the Adult Use — Retail has affected the medical cannabis as consumers' activities have shifted away from medical cannabis. Key permit and plan check revenue remain steady. These revenues remain largely cyclical with most revenues collected during the third quarter (January — March). Upcoming development projects such as Heritage Village, Magnolia at the Park, Raising Cane's Restaurant and Tapestry by Hilton will continue to improve permit and plan check revenues. Overall, general fund revenues have increased in comparison to last fiscal year. In addition, the one-time revenue from the sale of land of $2.075 million occurred in November and will be reflected in the Mid -Year (Second Quarter) Review along with previously mentioned Sales Tax payment and Property Tax revenue that will be received in December 2018. General Fund Expenditures Overall first quarter expenditures of $63 million exceeded last year's expenditures of $56 million by $7 million or thirteen percent (13%). This is largely attributable to an increase in overall labor costs such as salaries ($1.3 million increase) and retirement costs ($2.5 million increase). Most departments are trending at or below expenditure trends of twenty-four percent (24%) for the first 19C-2 Fiscal Year 2018-19 First Quarter Budget Update December 4, 2018 Page 3 quarter with the exception of the Fire suppression/EMS Services and Community Development Agency. The current expenditures for the Fire suppression/EMS Services appear higher because of an advanced payment made in July and thus represent four months of payments as required by the Orange County Fire Authority contract. The report shown also reflects no expenditures for Youth Programs and Cannabis Enforcement. These programs are related to anticipated Commercial Cannabis revenues of $5.2 million which, if the Ordinance is adopted on December 4th, these funds will be budgeted beginning in FY 2019-20 in a separate fund. Since revenues have not been collected to date, no monies have been appropriated and/or expended for youth programs and Cannabis Enforcement activities respectively. Expenditures will continue to be monitored throughout the fiscal year and will be reported out in the Mid -Year (Second Quarter) Review. CURRENT FINANICAL TRENDS FOR FISCAL YEAR 2018-2019 Since fiscal year 2013-14, general fund revenues have increased on average by 2%. While the "Top Six" general fund revenues have increased by 3%, other general fund revenues have primarily remained unchanged. Furthermore, general fund expenditures have risen by 5% due to increasing labor costs such as salaries and retirement. An update on pension costs will be provided during the Mid -Year Review (Second Quarter) in February. FISCAL YEAR 2017-2018 Vacancy Status (Exhibit 2) The City has a total of 191 citywide vacancies across all funds with 134 vacancies in the general fund. These general fund vacancies include 57 unfunded positions. Staff expects to request the City Council to reconsider (fund, remove or amend) these positions and other organizational changes during the fiscal year 2019-20 budget process. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1, (Maintain a stable, efficient and transparent financial environment). FISCAL IMPACT There is no fiscal impact associated with this action. ^� � �✓YY7 Ka hryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Fiscal Year 2018-2019 First Quarter Budget Update 2. Fiscal Year 2018-2019 Vacancy Report 19C-3 19C-4 40i f,t-1 / r 1. 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N LL y a) Q f6 c � a) > 0)cu i' _ CL + x U U d z LL CCS C3 > «S N E Z) N m m m _ a) X U o �— E +, w sZ Q O U � o 194-91 1§C.10 Lu-� E k k \ < / \ f / % / 7 ƒ § / j / / , w g R R f k r R o a / I e\ m m m r o o o/ w n r\/% o 7 R e/% \§ m -® I& t l'® RCY) 4/ 22 & Q m o i ® F ^ \ / < o k / \ / / § k \ / « / 9 R 7 E 0 w a /® q \© o / k/k\/ \ \ ® f / i \m | / r% r e a/\/% w E \¥ . _ / 0 { & » E 2 \ < >1 _ 0 @ ( » < / / o f _ 2 c± E/ E§ 2 t _ \$ c y G ® M= e o m 2 b\ E/ § _ @ U- , 0 t § 2 ƒ \ } § . % a 7 _ 2 ® ° 2 % = m \ / E ' ° E o ! § ) / @ a 4-- § & o \ $ O m < E@®o% e u k§°» 2 m 3 I/_{\ a e§ 3 \ f % E 2 / a o = E E a- 0 2 (n3 = \ k 2 1§C.10 Lu-� U m N O U Ol O U 19C-11 cn -4 O N Ln i i N 0000 CNO L.- 4-1 -- ca � N D LL N 00 }' N O 00 06 r-1 L i V c� G U m N O U Ol O U 19C-11 cn -4 O N Ln i i N 19C-12 N W r -4 H 0 0 0 0 o o Ln 0 ri 0 LA -a CJ N � u LL � U N o r- m oo Ln u� m M H 0 ; 19C-14 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 20, 2018 TITLE: RECEIVE AND FILE PUBLIC WORKS AGENCY STATUS OF PROJECTS - MONTHLY CAPITAL IMPROVEMENT PROGRAM EXECUTIVE REPORT FOR NOVEMBER 2018 (STRATEGIC PLAN NO. 5, 1) 9 CITY ANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 21d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the Public Works Agency Status of Projects - Monthly Capital Improvement Program Executive Report for November 2018. DISCUSSION The November 2018 Capital Improvement Program (CIP) Executive Summary (Exhibit 1) provides Public Works Agency activity in alignment with the City's Strategic Plan. The report includes tasks, next steps, outcomes, and percentage completed for each project. The CIP Executive Summary Schedule for all projects is available on the City's website at: htti)s://www.santa-ana.org/sites/default/files/2018-11/201811 cip schedule pdf The following remarks are provided to note significant matters related to the Agency: Freeway 1-5 HOV Lanes Between SR -55 and SR -22 This project is anticipated to start construction the first quarter of 2019 to add a High Occupancy Vehicle (HOV) carpool lane in each direction, and remove the Northbound On and Southbound Off HOV Ramps at Main Street. The four existing general purpose on and off ramps at Main Street will be retained. The removal of Main Street's HOV structure will occur early in construction with a detour that will divert traffic to the SR -22 and SR -55. More specific information will be provided before the removal is scheduled. Several outreach meetings about the permanent removal of Main Street's HOV ramps were held with the community and stakeholders during the Environmental phase of this project. Interested parties may sign-up for regular freeway notifications at OCTA's Freeway Updates. 19D-1 Monthly CIP Executive Report for November 2018 December 4, 2018 Page 2 STRATEGIC PLAN ALIGNMENT This item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #1 (establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). There is Fuad Swe Executive Public We impact associated with this item. 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C n55 n N C V W aa", G F Q8 T Q 3 C° �1 C r S•0 y n N O£ K C C b' MjC C q F" Q N a 3�' oi)N'- v°i33a3m`333 m`3.^r."" rsN M N N N N N r C '.si.8�eis.sY 4.$$ �I ......�... WOR 1§D- � . .�. .. , , a , LU _ \\ IA § �.■, -, � � :_ ���`\ k§| j iRtAll \ ! — ■■„ ■■■■■...,�. - z § t `k####\#" ###K/ § | « o z 2;=§!®;i k�z� 0 § II I1\1!i\§!,,§ |||\!§/\\\!�\�� > § E ` �| � ® # � •E - � ,|a • k � � )��§!) 7 \f!�`` ■||!;■&«![!!�!f | )UM:< „ l�:,5�■ | 1§D- REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 4, 2018 TITLE: RECEIVE AND FILE NEXT STEPS FOR IMPLEMENTATION OF THE NOVEMBER 2018 VOTER APPROVED BALLOT MEASURES (STRATEGIC PLAN NO. 1 TO 7) 4 RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Receive and file next steps for implementation of the four municipal ballot measures. DISCUSSION The City Council approved placing four ballot measures for consideration by the voters of Santa Ana on the November 6, 2018 municipal election. While the election results have not yet been certified, the preliminary results indicate that a majority of voters has approved all four measures. Based on the preliminary results, staff wanted to provide the City Council with the anticipated next steps and important information toward implementation. Measure X: Santa Ana Neighborhood Safety, Homeless Prevention and Essential City Services Enhancement Measure Measure X establishes a local sales and use tax of 1.5 cent beginning April 1, 2019 through March 30, 2029, then going down to 1 cent through March 30, 2039, before being restored to the current rate of 7.75 cents for every dollar of qualified purchases. The effective date of the tax is April 1, 2019, as it coincides with the quarterly taxation cycles established by the State of California. The City will need to enter into a local sales tax agreement with the California Department of Tax and Fee Administration to collect and remit the local tax back to the City. This process simplifies collection and reporting to business operators that collect and remit sales tax to the State. In order to complete the agreement, the City Council must also adopt Resolutions that will be presented at a future Council Meeting prior to February 1, 2019. Although the tax will become effective April 1St, we expect there will be a transition period for collection of the tax. Therefore, the impact on FY 18-19 revenue is expected to be relatively insignificant. Moving forward, starting with Fiscal Year 2019/20, the full estimated revenue from the 19E-1 Receive and File Next Steps for Implementation of Voter Approved Ballot Measures December 4, 2018 Page 2 1.5 cent increase, $60 million, should be realized. Staff will continue to work closely with its sales tax consultants to refine the estimated revenue amount. The City Manager will be working with the City Council to establish the process by which these funds will be allocated and prioritized. With current and anticipated expenditures, staff will prepare a more comprehensive economic forecast with the City's new Executive Director of Finance and Management Services to present a holistic approach to the FY 2019/20 budget. It is important to note that the City does have a structural deficit and that funding of new or enhanced programs will need to be closely evaluated. Part of the safe guards that were included into the Ballot Measure for Measure X, was the formation of a Citizens Oversight Committee. Staff will be preparing a comparison of other committees in various agencies and will present a recommendation at a future Council Meeting. This will include the roles and responsibilities of the committee as well the composition and selection of members. The new revenue and expenditures will be audited annually. Staff is evaluating the changes required to highlight the open checkbook portal on the City's website to show the new revenue to the public. Measure Y: Approve Ordinance Regarding a Marijuana/Commercial Cannabis Business License Tax Approval of this business license tax measure for Adult -Use Commercial and Retail Cannabis will not increase revenue for Fiscal Year 2018/19, as the budget includes the revenue estimates in the form of Operating Agreement fees. The implementation of the business license tax will take place on January 1, 2019. Existing Operating Agreements will remain valid for those sections not related to remittance of a fee. Staff has been in communication with the local cannabis industry to discuss the implementation and next steps to issue business licenses in accordance with the approved measure. Following certification of the election, the Ordinance will be codified into the City's Municipal Code. The effective rates established in ordinance approved by the voters are as follows: CornrnercW Cannabis Business Gross Receipts Gross Square !Activity Tax Rate Footage Tax Rake Adutt-use Cannabis Retail Business (including Delivery). 8% $ 25.00 Cultivation 6% $ 10.00 Distribution 6% $ 4.00 Manufacturing 6% $ 10.00 Testing Facility or Tenting 5% $ 1.50 Laboratory 19E-2 Receive and File Next Steps for Implementation of Voter Approved Ballot Measures December 4, 2018 Page 3 Measure Z: City Charter Modernization and Update of Administrative Provisions Measure Z amended the City Charter to remove language regarding gifts, campaign contributions; language regarding boards and commissions; and qualifications, powers and duties for the Finance Director. The Charter Amendment repeals section 425, 1107, 704 and Article IX in its entirety from the City Charter. Staff will bring forward the requisite ordinances to establish the boards and commission in a comprehensive manner at a future meeting. Until such a time, staff will continue to operate the impacted boards and commission as currently provided for in Article IX of the City Charter. Measure AA: Require By -Ward Nomination and Election of Councilmembers and Redrawing of Ward Boundaries to Comply with State and Federal Law The Charter Amendment to section 400 changed to a Ward -Based Election System in which councilmembers are both nominated and elected by electors in their respective Ward. In addition, a minor revision to section 101.2 ensured that ward boundaries are drawn and redrawn to comply with state and federal law, as well as to equalize population. The ward re -boundary process is underway and expected to be approved at the December 4, 2018 City Council Meeting. The change in the method of voting will require an extensive public information campaign prior to the 2020 General Election, to inform the public about the change and what they can expect to see on future council member ballots. In order to effectively communicate the changes, staff will be making a supplemental budget recommendation to fund an outreach campaign as part of the FY 19/20 and FY 20/21 budgets. STRATEGIC PLAN ALIGNMENT This item supports the City's effort to meet the Five -Year Strategic Plan adopted by the City Council. FISCAL IMPACT This is no fiscal impact associated with this item. E. City the City Manaqer 19E-3 19E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 4, 2018 TITLE: RECEIVE AND FILE THE IMPLEMENTATION OF A SIX-MONTH PILOT PROGRAM PERMITTING FOOD TRUCK VENDING ON PRIVATE AND PUBLIC PROPERTIES {STRATEGIC PLAN NO 5,41 P CIT MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the implementation of a six-month Pilot Program permitting food truck vending on private and public properties. DISCUSSION Food Vending Vehicles benefit our community by providing services to those who live and work in areas where food may not be readily available. In addition, they also offer an entrepreneurial opportunity to open a small business and provide unique foods that may not be available at brick - and -mortar restaurants. During the November 26, 2018, Economic Development, Infrastructure, Budget & Technology Committee meeting, the City Council sub -committee provided input to the City Manager to develop a six-month Pilot Program that would create a permit process to establish Food Truck Islands/Pods and allow food trucks and Pop -Up temporary food businesses to be able to operate on private property and create public property options for extended time -periods. Currently, the Santa Ana Municipal Code (SAMC) allows food vending businesses to be able to vend on private property once they have obtained a Land Use Certificate (LUC) and/or Special Event permit. Under current zoning restrictions, the activity is limited to six (6) days in a one-year period. The existing regulations while limiting in scope, offers the opportunity for the use of city - established procedural processes as the template for the City to institute a six-month Pilot Program that would allow temporarily permit Food Truck Vending Islands on city -owned and private properties as well as Pop -Up temporary food businesses under a pilot program. The introduction of this six-month Pilot Program will allow the City to identify impacts and unintended effects and evaluate best practices to minimize potential impacts to brick and mortar businesses and surrounding neighborhoods, while encouraging entrepreneurial enterprises. 19F-1 Establishment of Mobile Food Vending Business 6 -Month Pilot Program December 4, 2018 Page 2 Program The Pilot Program would allow the Planning and Building Agency Executive Director to extend to time -period to the existing permitting process during the six-month pilot program and impose conditions on the permit relating to public health, safety, and welfare. Notwithstanding the requirements already outlined in the Municipal Code regarding LUC's, the conditions to extend the time -period for food vending vehicles and Pop -Up businesses may include, but are not limited to: • the number of food vending businesses on a site • City business license requirement • regulations on the time of operations • request of a parking study • security measures • sanitation and general maintenance • access to restrooms and outdoor furniture • proximity to similar brick & mortar uses • noise mitigation and lighting Key language would also allow the City during this trial -period to deny and/or revoke the LUC based on the operation of a food vending business on the subject property likely to cause a public safety problem, create a public nuisance, or would otherwise be contrary to the public interest. City Staff has identified the following City -owned properties for the use and implementation of this six-month Pilot Program: 1. Prentice Park (SAZOO) 2. Santa Ana Regional Transit Center (SARTC) 3. Main/Pine Public Parking Lot 4. Civic Center Area (Plaza of the Sun) 5. Cesar Chavez Park In addition, City Staff is working with the Hot Food Truck Vendors Association to select up to six (6) private property locations for the Pilot Program. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement and Sustainability; Objective #4 (Support neighborhood vitality and livability). 19F-2 Establishment of Mobile Food Vending Business 6 -Month Pilot Program December 4, 2018 Page 3 FISCAL IMPACT To be determined during the implementation of the 6 -month Pilot Program using the current land use certificate and special event permit process. r Minh Thai Executive Director Planning and Building Agency AN 19F-3 19F-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: CLERK OF COUNCIL USE ONLY: F.15-T:50�-91 RECEIVE AND FILE REPORT ON EFFORTS ❑ As Recommended TO REPLENISH THE INCLUSIONARY ❑ As Amended HOUSING FUND USED TO CREATE THE 171 Ordinance on Reading El Ordinance on 2nd Reading SANTA ANA INTERIM HOMELESS ❑ Implementing Resolution SHELTER ❑ Set Public Hearing For_ {STRATEGIC PLAN NO. 5, 31 CONTINUED TO FILE NUMBER CITY I�ANAGER RECOMMENDED ACTION Receive and file report on efforts to replenish the Inclusionary Housing Fund used at the Santa Ana Interim Homeless Shelter. DISCUSSION At the September 18, 2018 City Council meeting, the City Council approved an agreement with Mercy House Living Centers, Inc., to operate an interim Emergency Homeless Shelter in Santa Ana for a period of one-year in the amount of $3.1 million. The source of funding for this agreement includes fiscal year 2018/19 and 2019/20 Inclusionary Housing Funds. City Council also directed staff to evaluate methods to replenish these funds. The efforts made thus far to replenish the Inclusionary Housing Fund include: The City submitted an application to the Orange County Continuum of Care (CoC), as the designated Fiscal Agent for the County of Orange Homeless Emergency Aid Program (HEAP) funds to receive $3 million to replenish the Inclusionary Housing Funds used for capital improvements and emergency shelter services at the Link, Santa Ana's Interim Homeless Shelter. HEAP was authorized by Senate Bill 850, which was signed into law by Governor Brown in June 2018, to provide one-time funding to Continuum of Care (CoCs) and Large Cities with populations over 330,000 for immediate emergency assistance to people experiencing homelessness. Although the City was awarded $3,690,885.84 in HEAP funding as one of the Big 11 Cities, these funds were designated by City Council for the permanent shelter site. Therefore, the City submitted an application to the CoC for $3 million specifically to replenish the Inclusionary Housing Funds used for the Interim Shelter at the Link. The CoC did not fund the City's request. 19G-1 Receive and File Report on Efforts to Replenish the Inclusionary Housing Fund December 4, 2018 Page 2 2. Staff analyzed the SB2 bill and guidelines which establishes a fluctuating, yet permanent on-going source of funding dedicated to affordable housing development. While actual funding amounts are unknown at this time, the City anticipates receiving approximately $1.9 million per year based on current estimates of SB2 revenue received by the State. Options to use the funds to replenish the Inclusionary Housing Fund for work already performed at the Link or to backfill other housing funds in the City's housing portfolio that are SB2 eligible are being evaluated. 3. Staff is evaluating the option to use approximately $75,000 in unexpended 2017/18 Emergency Solutions Grant (ESG) funds recaptured for redistribution to replenish the Inclusionary Housing Fund. HUD has various regulatory requirements that may not all this and as such staff will continue to research. Staff will continue to pursue options to replenish the Inclusionary Housing Fund following the investment by City Council in September 2018. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement and Sustainability, Objective #3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. :2:A-- [ - y Steven A. Mendoza -� Executive Director Community Development Agency 19G-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROPRIATION ADJUSTMENT ACCEPTING U.S. DEPARTMENT OF JUSTICE OFFICE OF JUSTICE PROGRAMS 2018 BULLETPROOF VEST PARTNERSHIP PROGRAM GRANT {STRATEGIC PLAN NO. 1, 3B} CIT'AYANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an appropriation adjustment recognizing $39,999.69 in Department of Justice, Office of Justice Programs Bulletproof Vest Partnership Program grant funds in the Department of Justice Grant Fund revenue account (no. 12714002 52000) and appropriate same to the Department of Justice Grant Fund — Programs expenditure account (no. 12714411 - 63001). DISCUSSION The United States Department of Justice, Office of Justice Programs has awarded the Santa Ana Police Department a 2018 Bulletproof Vest Partnership (BVP) Program grant. The Bulletproof Vest Partnership was created by the Bulletproof Vest Partnership Grant Act of 1998. The BVP program reimburses counties, federally recognized tribes, cities, and local jurisdictions up to 50% of the cost of body armor vests purchased for police officers. Since 1999, the BVP program has provided federal funds to more than 13,000 jurisdictions for the purchase of over one million bulletproof vests. The BVP grant will facilitate the Santa Ana Police Department's ability to purchase armor vests for police officers by providing the City with a fifty percent reimbursement for each vest purchased. The performance period of the grant is April 1, 2018 through August 31, 2020. During FY 2018-19, the Police Department anticipates purchasing approximately 60 vests, at an estimated cost of $1,000 per vest, for a total cost of $60,000. Of this amount, the City will be reimbursed $30,000. During FY 2019-20, the grant will reimburse the City for half of the purchase cost of 20 vests, or approximately $10,000. STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #1 — Community Safety, Objective #3B (Promote ongoing efforts to obtain grant funding for activities that will assist in preventing, enforcing and reducing criminal activity and traffic collisions. 20A-1 2018 Bulletproof Vest Partnership Appropriation Adjustment December 4, 2018 Page 2 FISCAL IMPACT The appropriation adjustment will recognize $39,999.69 in Department of Justice, Office of Justice Programs Bulletproof Vest Partnership Program grant funds in the Department of Justice Grant Fund revenue account (no. 12714002 62000) and appropriate same to the Department of Justice Grant Fund — Programs expenditure account (no. 12714411 - 63001) for the following fiscal years. avi Valentin Chief of Police Santa Ana Police Department FY 2018-19 $30,000.00 FY 2019-20 $9,999.69 Total $39,999.69 APPROVED AS TO FUNDS AND ACCOUNT: `tea Kathryn Do s, CPA Executive Director Wo`- 6 -+) Finance and Management Services Agency 20A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROPRIATION ADJUSTMENT AND AGREEMENT ACCEPTING U.S. DEPARTMENT OF JUSTICE BODY - WORN CAMERA POLICY AND IMPLEMENTATION GRANT FUNDS, AND AGREEMENT AMENDMENT WITH AXON ENTERPRISE, INC. FOR BODY -WORN CAMERA EQUIPMENT AND SERVICES (STRATEGIC PLAN NO. 1, 3A) CIJMANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an appropriation adjustment recognizing $99,291 in U.S. Department of Justice Body -Worn Camera Policy and Implementation grant funds in the Department of Justice Grant Fund revenue account (no. 12714002 52000) and appropriate same to the Department of Justice Grant Fund — Programs expenditure accounts (nos. 12714410 - various). 2. Authorize the City Manager and Clerk of the Council to execute the attached Grant Award and Special Conditions documents with the U.S. Department of Justice, Office of Justice Programs accepting $99,291 in U.S. Department of Justice Body -Worn Camera Policy and Implementation grant funds to enhance the Santa Ana Police Department's body - worn camera program, for the period of October 1, 2018 through September 30, 2021, subject to non -substantive changes approved by the City Manager and City Attorney. 3. Authorize the City Manager and Clerk of the Council to execute an agreement amendment with Axon Enterprise, Inc. to provide body -worn camera equipment and services for the Santa Ana Police Department, in the amount of $358,041.92 (including a $20,000 contingency), subject to non -substantive changes approved by the City Manager and City Attorney. The term of the agreement will remain May 2, 2017 through May 1, 2022. DISCUSSION The Department of Justice (DOJ) recognizes body -worn cameras as a law enforcement strategy aimed at improving public safety, reducing crime, and improving public trust between police and 20B-1 Body Worn Camera Program Appropriation Adjustment and Agreements December 4, 2018 Page 2 the citizens they serve. Law enforcement agencies across the country and worldwide are using body -worn cameras (BWC) as a promising tool to improve law enforcement interactions with the public. On May 2, 2017 the City Council approved an agreement with Axon Enterprises, Inc. (formerly Taser, Inc.) for body -worn camera equipment and services, and on September 1, 2017 the Santa Ana Police Department's body -worn camera program went live. This initial body -worn camera program roll-out included all Patrol Officers, the Gang Unit, and the Canine Unit. The Santa Ana Police Department is the only Orange County agency with not only a defensible program policy, but also a first to have a supporting audit procedure and a critical incident procedure. The Police Department has facilitated site visits to demonstrate our implementation strategy, procedures, and equipment infrastructure for over 15 police agencies, including the largest Sheriffs Department in the Nation. In addition, the video evidence provided by the program has been beneficial to court proceedings, investigations, evaluation of personnel complaints and field performance of newly hired personnel. The U.S. Department of Justice Body -Worn Camera Policy and Implementation grant in the amount of $99,291 will allow the Police Department to expand the body -worn camera program to Detectives, Crime Scene Investigators, Animal Services and Parking Control. The funds will be used to pay for 60 additional cameras, 60 licenses and supporting equipment. The grant performance period will run from October 1, 2018 through September 30, 2021. The Police Department will receive $99,291 in grant funds, and the grant requires a 50 percent match ($99,291), for a total Body -Worn Camera Policy and Implementation grant program budget of $198,582. The Axon agreement amendment includes $338,041.92 for licensing and maintenance costs for 80 additional licenses and 12 additional docks that are needed to support the program (Years 2- 5). The amendment also includes a $20,000 contingency for unanticipated equipment, licensing, and or services that may be needed to support the program, for a total Axon agreement amendment amount of $358,041.92. The U.S. Department of Justice Body -Worn Camera Policy and Implementation grant requires the City to issue an RFP for the body -worn cameras and services that will be funded under the grant. The Police Department will bring that proposed agreement to the City Council for consideration once the RFP evaluation process has been completed. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #1 Community Safety, Objective #2 (Broaden communications, information sharing and community awareness of public safety activities.) FISCAL IMPACT The appropriation adjustment will recognize $99,291 in U.S. Department of Justice Body -Worn Camera Policy and Implementation grant funds in the Department of Justice Grant Fund revenue account (no. 12714002 52000) and appropriate same to the Department of Justice Grant Fund — 20B-2 Body Worn Camera December 4, 2018 Page 3 Program Appropriation Adjustment and Agreements Programs expenditure accounts (nos. 12714410 - various) for the following fiscal years as follows: FY 2018-19 35,827.00 FY 2019-20 31,732.00 FY 2020-21 31,732.00 Total 99,291.00 The $99,291 grant match is available in the Supplemental Law Enforcement Services Account (12814407 62300). Funds for the Axon Enterprises, Inc. agreement amendment will be budgeted for the following fiscal years in the Supplemental Law Enforcement Services Account (12814407 62300) as follows: FY 2018-19 89,510.48 FY 2019-20 8_9,510.48 FY 2020-21 89,510.48 FY 2021-22 89,510.48 Total 358 041.92 David -ata ntin Chief of Police Santa Ana Police Department APPROVED AS TO FUNDS AND ACCOUNTS: /IL -a4. Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Agreement with U.S. Department of Justice, Office of Justice Programs 2. Agreement with Axon Enterprises, Inc. r1- r�- Woo orthe Assistant Attorney General September 26, 2018 The I lonorable Miguel Pulido city orsaula Ann 60 Civic Center Plaza Santa Ann. CA 92701 Doan Mayor Pulido US. Department of.lustice O1'lice or Justice Programs 111 .01ingun4 D.C. 20531 Exhibit 1 Oil tichal for Attorney General Jefferson Sessions 111, it is my pleasure to inform you that the Office of Justice Programs bas approved your application for funding trader the FY 18 Body -Worn Corners Policy nod Implementation Program in Ute amount ol'09,291 I'or City ol'Stmta Ann. Enclosed you will find the Gran Award and Special Conditions documents. This award is subject to all administrative and financial requirements, including the timely submission or all financial and programmatic reports, resolution oral) interim nudit findings, and the maintenance Ora ntininmnn level orcash-on4mlid. Should you not Whom to these requirements, you will be in violation of the terms of this agreement and the award will be subject to termination for cause or other administrative action as Appropriate. Ifyou have questions regarding this award, please contact; Program Questions, Lauren Troy, Program Manager at (202) 598-7739; and Financial Questions, the Office of lho Chief Financial Officer, Customer Service Center (CSC) at (800) 458.0786, or you may contact the CSC at ask.ocIb@usdoj.gov. Congratulations, and wo look limvard to working with you. Sincerely, Malt Dunnnennalh Principal Depuly Assistant Attorney General Enclosures r1- OFFICE FOR CIVIL RIGHTS Office of Justice Programs 41= U.S. Department of Justice 810 701 Street, NW Washington, DC 20531 Tel: (202) 30M690 TTY: (202) 307.2027 6•ntnil: askOCR n usdoj.gov Website: wvww.ojp.usdoj.gov/ocr OCR Letter to All Recipients September 26, 201 g The Iionoornbie Miguel Polido City of Santa Ana 60 Civic Center Plaza Santa Ana, CA 92701 Dear Mayor Pulido: Cmrgratolations on your recent award. In establishing financial assistance programs, Congress linked tate receipt of federal finding to compliance With World civil rights Imus. The Office firr Civil flights (OCR), Office of Justice Programs (oil,), lJs. Department orlustice (DOJ) is responsible liar ensuring that recipients of financial assistance front the OJP, the Office of Contnrunity Oriented Policing Services (COPS), and the Office on Violence Against Women (OV W) comply With the applicable federal civil rights laws. Went the OCR are available to help you laid your organization meet the civil rights requirements chat come with DOJ finding. Irnsaring Access to Federally Assisted Programs Federal laws that apply a recipients of financial assistance train the DO.) prohibit discrimination on the basis of race, color, national origin, religion, sex, or disability in funded programs or activities, not only in employment bill also in the delivery of services or benefits. A federal law also prohibits recipients from discriminating on the basis of age in the deliver), of services or benefits. In March of 2013, President Charon signed the Violence Against Women Reauthorization Act of2013. The statute amends the Violence Against Women Act of 1994 (VA WA) by including a nondiscrimination grant condition ilia prohibits discrimination based on actual or perceived race, color, national origin, religion, sex, disability, sexual orientation, or gender identity. q'he new nondiscrimination grant condition applies to certain programs funded alter October 1, 2013. The OCR and the OV W have developed answers to some frequently asked questions about this provision to assist recipients of VA WA finds to understand their obligations. The Frequently Asked Question are available at hops://ojp.gov/aboan/ocr/vawtd'ngs.hun. Enforcing Civil Rights La Ws All recipients of I'edeml financial assistance, regardless of the particular funding source, the amount of the grant award, or the number of employees in the workforce, are subject to prohibitions against unhuvfhl discrimination. Accordingly, the OCR investigates recipients that are the subject of discrhnf nition complaints hone both individuals and groups. In addition, based on regulatory criteria, the OCR selects a number of mcipicnts each year fin compliance reviews, aadils that require recipiets to submit alma showing that they are providing services equihdty to all segments oftheir service population and that their employment practices meet equal opportunity standards. rl- Providing Services to [.foil ted English Proficiency (LEP) Individuals hp accordance with DOJ guidance pertaining to Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d, recipients of federal financial assistance mast lake reasonable steps to provide meaningful access to their programs and activities f'or persons with limited English proficiency (LEP). See U.S. Department of Juslice, Guidonce to Federal Financial Assistance Recipients Regarding Title Vi Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, 67 Ped. Reg. 41,455 (2002). For more information on the civil rights responsibilities that recipients have In providing language services to LEP Individuals, please see the websito Mips://www.lcl).gov. Ensuring Equal Treatment of Faith -Based Organizations and Safeguarding Constitulioual Protections Related to Religion The DO.1 regulation, Pa9nerships with Faith -Based and Other Neighborhood Organizations, 28 C.P.R. pt. 38, updated in April 2016, prohibits all recipient organizations, whether they are Inv enforcement agencies, governmental agencies, educational insti(utions, houses of worship, or faith -based organizations, from using Financial assistance from the DOJ to find explicitly religious activities. Explicitly religious activities include worship, religious instruction, or proselytization. While funded organizations may engage in non -funded explicitly religious activities (e.g, prayer), they must (told them separately frnn the activities funded by the DOJ, and recipients cannot compel beneficiaries to participate in them. The regulation also makes clear that organizations participating in programs funded by the DO.1 are not permitted to discriminate in the provision of services on the basis of a beneficiary's religion, religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice. Funded lnilh•based organizations roust also provide written notice to beneficiaries, advising them That if they should object to the religious character of the funded faith based organization, lire funded Ihith-based organization will take reasonable stops to refer the beneficiary to an alternative service provider, For more information on the regulation, please see the OCR's website at littl)s://ojp.gov/lbotiL/ocr/1),rtiictsltlpti.iilnl. SAAB and frith based organizations should also note that the Omnibus Crime Control and Sale Streets Act (Safe Streets Act) of 1968, as amended, 34 U.S.C. § 10228(c); the Violins of Crime Act of 1984, as amended, 34 U.S.C. § 2011 i(e); the Juvenile Justice and Delinquency Prevention Act of 1974, as amended, 34 U.S.C. § I 1182(6); and VAWA, as amended, 34 U.S.C. § 1229 I(b)( 13), contain prohibitions against discrimination on the basis of religion in employment. Despite these nondiscrimination provisions, the DOJ has concluded that it may construe tie Religious Freedom Restoration Act (RPRA) on a case-by- case basis to permit some faith -based organizations to receive DOJ funds while taking into account religion when hiring staff, even ff the statute that authorizes the finding program generally forbids recipients fion considering religion in employment decisions. Please consult with the OCR if yon have any questions about the regulation or Ibe application of RPRA to the statutes that prohibit discrimination in employment. Using Arrest and Conviction Records fn Making Employment Decisions 'Ile OCR issued an advisory document fur recipients on the proper use of arrest and conviction records in making hiring decisions. See Advisory for Recipients of Financial Assistance from the U.S. Depi nnteol ol'Justice on the U.S. Equal Employment Opportunity Commission's Enfincenenl Guidance: Consideration ofdrresl and Conviclion Recoch in Enplopnma Decisions hurler Tille V/1 oflhe Civil Riglvs Act of 1964 (June 2013), available at littl)s://ojp.gov/about/ocr/pdfs/UscolCotiviction Advisory.pdr. Recipients should be mindful dint the misuse of arrest or conviction records to screen either applicants for employment of employees for retention of promotion may have a disparate impact based on race or national origin, resulting in unlawful employment discrimination. In light of the Advisory, recipients should consult local counsel int ievimving their employment practices, If warranted, recipients should also incorporate an analysis of the use olarrem and conviction records in their Equal Employment Opportunity Plans (EEOPs) (see below). Complying with the Safe Streets Act An orgaoization that is a recipient of financial assistance subject to the nondiscrimination provisions of the Salle Streets Act, must npect two obligations: (1) complying with the federal regulation pertaining to the development of an EEOP (see 28 C.ER. Ill. 42, subpt. E) and (2) submitting to the OCR lindings of discrimination (see 28 C.F.R. §§ 42204(c), .205(c)(5)). 20B-7 Alecting the EEOP Requirement An HGOP is a comprehensive doatunont that analyzes a recipient's relevant labor market data, as well as the recipient's employment practices, to identily possible barriers to the participation ofwonnor and minorities in all levels of a reeipient's workforce. As a recipient of DO.) finding, you may In required to submit an CEOP Certification Report or an L•HOP Utilization Report to the OCR. Formore infbrmatlon on whother your organization is subject to the HHOP requirements, sec littps://ojp.gov/ibouVocr/ceol),Iitm. Additionally, you may request technical assistance Iborn all SHOP specialist at the OCR by telephone to (202) 616-1771 or by a -nail at GfiOPfonns rt usdoj.gov. 91ectiag the Requirement to Subunit Findings orDiscriminntion If in life three years prior to the date of the grant award, your organization has received all adverse finding ordiscriminatior based on race, color, national origin, religion, or sex, after a due -process bearing, from a sone or federal court or from a state or federal administrative agency, your organization must send a copy of the finding to Hie OCR. Ensuring the Compliance of Subrecipients SAAB must have standard assurances to notify subrecipients of their civil rights obligations, written procedures to address discrimination complaints filed against subrcciplunts, methods to monitor subrecipients' compliance with civil rights requirements, and a program to train subrecipients on applicable civil rights laws. fn nddilion, SAAB must submit to the OCR every three years written Methods of Administration (MOA) that summarize the policies and Procedures that they have Implemented to unsure the civil rights compliance or subrecipients. For more information on the MOA requirement, see h(Ips://ojp.gov/Ibnding/Hxplore/StateMethodsAdniin-FY2017update.btm. Irthe OCR can assist you in oily way in fulfilling yon orgnnization's civil rights responsibilities as a recipient of federal financial assistance, please Vontact un. Sincerely, Michael L. Alston Director cc: Orant Manager Financial Analyst U.S. Depilinenl ol'Juslice Office ol'Juslice Progr:uns y r A PAGE I OF 13 bureau of Justice Assistance Grant LRECIPIEN'TNAMF. AND ADDRESS (bwlodin97.ip Code) ......................... - - - LAWARDNUMBER: 2018-13GBR-0016 Chy of Smoo Ana 60 Civic Ccnur Ploao 5. PROJECT PERIOD: FROM 10/012018 TO 09/308021 Snnln Ann, CA 92701 BUDGET PERIOD: FROM 10/01/2018 '1'0 09/]0/2021 6.AWARDDATE 09126/2018 8. SUPPLEMENTNUMBER 7, ACTION Initial 2n. GRAN'T'ER IRS/VENDOR NO, 956000785 .__.._......................_..........___..____.—.__.__,_�_ 0f 2b. GRANTER DUNS NO. 9.1'REVIOUSAWARDAMO INT S0 083153247 3. PROJECT"I'N LE 10. AUOUNTOF'I'I41S AWARD S 99.291 Body \Yom Comm, culmo iocot I'mion 11. T'OT'AL AWARD S99,291 _._—.__._....... .__...... __.._—_—._--__._.—. .._..._ Q. SI'ECIAl. CONDI "PIONS TI1E ABOVE GRANT PROJECTIS AIRROVED SUBIEC'I" l'O SUCI I CONDITIONS OR LIMIT'A'TIONS AS A RE SET 1`0121'11 ON TI It: A'I'T'ACI IRV PAOE(SL 13, ST'AI U"I'ORY AUT'110R1'I'Y FOR GRANT' This 1wojccl n np 1moled under 1'Y I8(13JA - Plod) Worn Comm Probrmn) Pub, L. No. 115.141, 132 Soa 348,422 _____. _._.___ ..__._ _____.... — ---- I N CATALOG 01 DO\IRST'IC FEDERAL ASSISTANCE (CPDA Nmnber) l 16.833 • i3ody 1Vom Cenrem Policy anA Rnplenlenlntion Progenm 115 ME IT IOU OI' PAYMEN r CPRS ACENCI'AI'PROVAL � GRANTEE ACCEPTANCE 16111ED NAME AND TI'T'LE OF APPROVING OFFICIAL 18. TYPED NAME ANDI'I'ILE OF AUTHORIZED GRANT EE OFFICIAL \Mu Don nwroluih Migoel Polido Principal Deploy Assismne Harney Oenmd Mayor 17 SION�AI UyRRR OF APPROVING OFFICIAL 19. SIGNA'I'URIT OF AUTIIORIZED RCCIPIENTOFFICIAL 19A. DATE AGENCY USI! ONLY 20 AC(OUN'I'INOCLASSIFICA'1'IONCODI:S FISCAL FUND BUD. DIV. [211—lbC1301,0229 YEAR CODE ACT. OFC. REG. SUB, PObIS AMOUNT' --� - n -- tic so ou eb --- 99291�I ------- ---- 011' FORM 4000/2 (REV. 5.87) PREVIOUS EDITIONS ARE OBSOLI31 r. OJT' FORM 400012 (REV. 4.88) rl- • U.S. Department orAlStice aPim'OfiimeofJustieeProgras AWARD CONTINUATION Ilnrcauof,IusticcAssisttmce SHEET rnaL z OFIJ Grunt ' PROXCIl'NUMBER 201s.13C-11X-0016 AWARD OA rf 09r26aols SPECIAL COAmD]T/OeVS I I. Requirements ofthe mvarch remedies I'or non-c0mplimhce or I'or materially false s(ntemeols The conditions of this award are material requirements of the avurd. Compliance with any certifications or assurances submitted by or oil behalf of the recipient that relate to conduct during the period of performance also is a material requirement of this award. Failure to comply wi(h any one or more of these award requirements— whether a condition set out in fill] below, a condition incorporated by reference below, or a certification orassurance related to conduct during the award period -- may resn]t in the Office of.11stice Programs ("0.111") taking appropriate action with respect to the recipient and (he award. Among other things, the CUP may withhold award funds, disallow costs, or suspend or lemminme (he avmrd. The Department of.luslice (" DO.1'), including OJP, also army take other legal action as appropriate. Any materially Illse, Ilctillous, or f(alldnler( Statement to (Ire federal government related to (his award (or concealment or omission of a malerial fact) may be the subject of criminal prosecution (including under 18 U.S.C. 1001 and/or 1621, and/or 34 U.S.C. 10271-10273), and also may lead to imposition orcivii penalics and adminis(rreivc remedies for false claims or Otherwise (including ander 31 U.S.C. 3729-3730 and 3801.3812). Should any provision Of a requirement of this award be held to W invalid or unenforceable by its terms, that provision shall first be applied vitt a limited cmvslnlction so as 10 give it the maximum el'leel permitted by law. Should it be held, instead, Ila( the provision is utterly invalid or -unenforceable, such provision shall be deemed severable from this award. 2. Applicability of Part 200 Uniform Requirements The thmif0mm Administrative Requirements, Cost Principles, and Audit Requirements in 2 C.P.R. Part 200, as adopted and supplemented by DOJ in 2 C.P.R. Part 2800 (together, the "Part 200 Unil'enn Requirements") apply (o this FY 2018 award from OAP. 'fire Part 200 Uniform Requiromells were first adopted by DOJ on December 26, 2014, 1I'this FY 2018 award supplements rinds previously awarded by OJP under the same award number (e.g., fiords awarded during or belorc December 2014), the Part 200 Unilbrin Rcquireniens apply with respect to all funds trade that award number (regardless of the award date, and regardless of whether derived hom the initial award or a supplemental Award) that are obligated on or after the Acceptance date ol'this rY 2018 award. mor more information and resources on the Part 200 Uniform Requirements as they relate to 0.I11 awards and subawards ("suhgranl1'), see the OJP websitc at haps://o-IP gov/finding/PArt2000nift'rnliequiremells.hhn. Record retention slid Access: Records peroneal to the Award that the recipient (and Any subrecipie t ("subgrantee") at any tier) must retain •- typically for a period of 3 years from the date of submission of the final expenditure report (SP 421), unless a diflereat retention period applies .. and to which the recipient (and mhy subrecipient ("subgrantee") at say tier) must provide access, include performance measurement information, in Addition to the financial records, supporting documents, statistical records, and other pertinent records indicnied at 2 C.F.R. 200.333. It the event (list an award -related question in from documents or othermaceials prepared or distributed by OJP that tray appeal' to conflict with, or differ in some way lion, the provisions ofthe Part 200 Uniform Requirements, the recipient is to contact OR promptly for clarification. 0111 FORM 400012 (RLV. 4-83) 20B-10 11.S. Department of Justice a'ryvT, Gillet of Justice programs 3•^',ra ;; Boman of Justice Assistance S PROJL'CTNUM131i1k 2013.13C -13X-0016 AWARD CONTINUATION SHEET Grant AWARE) DA'rE 00/761IMs SPECIAL CONDITIONS 3. C'olnplianee with DOJ Gmnls financial Guide PAOr. 3 Or 13 licf'crcnccs to the DO.I Grants Financial Guide ore to the DOJ Grants financial Guido as posted on the OJP website (correctly, the "D0.1 Grants Financial Guide" available at bops://o,IP•gov/financitalguide/DOJ/indes.hun), including any updated Ver'sioi that roily be posted doling (lie period ofpel'formaace. Mlle 1'eclplt it agrees W comply with the DU Grants Financial Guide. 4. Reclassification ofvarious statutory provisions to it new'fide 34 of n3C Unhod Stapes Code On Soptembo I, 2017, various statutory provisions previously codified elsewhere in (he t1.S. Code %Vere editorially reclassified to it new'fidc 34, entitled "Crime Control and Law Enforcement."'rhe reclassilication encompassed it number of statutory provisions pertinent to OJP invards (that is, 0.I1) grants and cooperative agreements), including many provisions previously codified in Tide 42 of the US, Code. Effective as ol'September I, 2017, any rviercnce in this award document to a statutory provision thm has been reclasiMcd to the new'I'ille 34 oflhe U.S. Code is to be read as a reference to that statutory provision is reclassified to 'fide 34. This rate ofcoustnlution sptcitically iacludesrelciences set out io mvard conditions, references set out in material incorponned by reference through mvard conditions, and references set am in other award requirements. S. Required training fir Point ofConlact and all Finanoild Points ofContacl (loth the Point of Contact (POC) and all Financial Points ofContact (FPOCs) lir this award must have successfully completed an "OJI' financial management and grant administration training" by 120 days alter the date of the rccipienl's acceptance ot'tile awiad. Successful completion of such it training on or after January I, 2016, will satisfy this condition. In file event that cider the POC oall 17 POC I'or this amad changes during the period of peribrmance,.tie neev.POC or FPOC Most Iiavt successlidly completed all "OJP liliancial management and gram administration training" by 120 calendar days alter-- (1) the date of OJP's approval of the "Change Grantee Contact" GAN (in the case of it new POC), or (2) the dale clic POC enters information on the new FPOC in GMS (in the case of a new FPOC). Sl1CCM1111 completion ol'such a training of or alter January I, 2016, will satisly this condition. A list of OJP a'ainings that 011) will consider "OR financial management and grant administration training" Ibi purposes of %las condition is available at haps:/hvww.o,IP gov/trlining/fints.hun. All lrainings that satisfy this condition include it session on grant rhuld prevention and detection. The recipient should anticipate that OR will immediately withhold ("freeze") award funds iflhc recipient fails to comply with this condition. The recipient's failure to comply also rally lead OR to impose additional appropriate coalitions oil this award. 6. I(equimacnls related to "dc minimis" indirect cost rale A recipient that is eligible tauter the Part 200 Unifiimt liequiremenls laid other applicable law to tae the "dc minimis" indirect cost rate described in 2 C.F.R. 200.414(f), and that elects to us the "de minimis" indirect cost rate, must advise OJP in writing of -both its eligibility and its election, and must comply with all associated requirements in the Part 200 thaifiimn Requirements. The "de minimis" ane may In applied only to modified total direct costs (MTDC) as defined by the Part 200 Unifirrm RequirCmonts. OJP FORM 400M (RI -V.4 -da) 20B-11 U.S. Deportment oriustice j F Office oflustimPrograms AWARD CONTINUATION J% � ij Bureau of Justice Assistance SHEET PACE 4 01: 11 Grant Plt011iC:'1'NUMtEl4 ?VIa-OC-nX 0016 —� _— _— — AWAILUDA'rr 07/2v/2018 - _---��-_— SPFCMLC0ND17701VS 7. Requirement to report potentially duplicative funding If the recipient ctn'rently has other active awards of federal funds, or if the recipient receives any other award of federal funds during the period of pedbrmance for (his award, the recipient promptly must determine whether foods from may of those other federal awards have been, are being, or arc to be used (in whole or In pa -0 for one or more of the identical cost items for which funds are provided under this award If so, the recipient Rost promptly notify the DOJ awarding agency (OJP or OV W, as appropriate) in welting of the potential duplication, and, if so requested by the DOJ awarding agency, mus( seek a budget-modilication or change -of -project -scope grant adjustment notice (GAN) to eliminate any inappropriate duplication of funding. S. Requirements related to System for Award Management and Universal Identifier Requirements 'rile recipient must comply with applicable requirements regarding the System for Awird Management (SAM), currently accessible at llilps://Avww.sam.gov/. -Phis includes applicable requirements regarding registration with SAM, as well as maintaining the currency ofinlbnnation in SAM. 'I'hc recipienl also mast comply with applicable restrictions on subawards ("subgrants") to lust -tier subrecipients (Ilrsaticr "subgranlecs"), including restrictions on subawards to entities that do not acquire and provide (to ate recipienl) the unique entity identllicr required Ibr SAM registration. The details of5he recipient's obligations related to SAM and to unique Wilily identifiers arc posted on the OJP well site at hulas://ujp.gov/I'undingl8splore/S`AM.Inni (Award condition: System Ibr Award Management (SAM) and Universal IdenliJior Requiiennents), and are incoaporated by reference hero. This condition does not apply to an award to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 9. Requirement to report actual or inmminew brunch of personally identifiable information (Pal) l'hc recipient (and city "subrecipicnr' at any tier) must have written procedures in place to respond in the event of an actual or imminent bn:ach" (OMB M.17.12) if it (or a subrecipient) - 1) creates, collects, uses, processes, stores, maintains, disseminates, discloses, or disposes of"personally identifiable inlbrnmtion (I'll)" (2 CPR 200.79) within the scope of an O,IP gran( -funded program or activity, or 2) uses or operates a "Federal information system" (OMD Circular A-130). The recipient's breach procedures roust include a requirement to report actual or imminent breach of I'll to an 0,I1, program Manager no tater than 24 haus alter all occurrence of an actual breach, or the detection of an imminumt breach. 11. All subovards ("subgntnts") must [have specilic federal authorization The recipiem, and any subrecipier ("subgrantee') at any tier, muss comply with all Applicable requirements Ibr althm'izalion of any subavard. 'Phis condition applies to agreements that — for purposes ol'fedural grants adminislrnuve roquircntcn(s -- 0111 consides it "subavid" (and therefore does mol consider n procurement "contract'). The details of the requirement for authorization of any subaward are posted on the OJP web site tit hops://ajp.gov/tlnuling/Implore/SubnwacdAuthorirnNon.hlR (Award condition: All subawards ("subgrants') nus( have specific federal authorization), and are incorporated by reference here. 0111FOR\I 40eQi2 (RFV. 4.8S) 20B-12 U.S. Department ol'Justice Office orJustice programs ,4RI'I Bureau of Justice Assistance AWARD CONTINUATION SH EET Grant GAOL' 5 Of u PROMC1'NUMmllt 2018-11C-aS-0016 AwARDDRrli 01MM2019 1 SPECIAL CONUfI'IONS I I. Specilic/ost-award aq>proval require) to use a nencompditive approach in any procuremem caudata that would exceed $150,000 'The recipient, and any subrecipient ("subgrantee") at any tier, most comply with all applicable requirements to obtain specific advance approval to use a noncompetitive approach in any procurement contract that would exceed the Simplified Acquisition'Ihreshold (currently, $150,000). 'Phis condition applies to agreements that-- for purposes of federal grants administrative requirements -- 0.111 considers a procurement "contract" (mad Iherolore does not consider a subawaid). The details of the requirement for advance approval to use it noncompetitive approach in a procurement contract under an OR award are posted on the OJP web site alhops;//ojp.gov/limding/Gxplore/NoneompelilivcProcnrcmunt.hun (Award condition: Specific post -award approval required to use: rnoncompelitive approach fit it procurement contract (irconuact would exceed $150,000)), and are incorporated by reference here. 12, Requirements pertaining to prohibited conduct related to trafficking in persons (including reporting requirements and OJP authority to terminale award) The recipient, and any subrocipica ("subgrantee") at any tier, must comply with all applicable requirements (including requireaonts to report allegations) pertaining to prohibited conduct related to the trafficking orpersons, whether on the part of recipients, subrecipients ("sullgi ail tees"), or individuals defined (ler purposes of this condition) as "employees" of the recipient or ol'any subrecipient. The deafls of (lie recipient's obligations related to prohibited conduct related to aaflickhng fn persons are posted on the O,IP wcb site al Iaq)S:Hojp.gov/fun(ling/rxl)lore/1'ro[iibitedConduct=I'raflickiiig.litiii (Award condition: Prohibited conduct by recipients and subrecipients related to trafficking in persons (including reporting requirements and OJP authority to terminate award)), mid are incorporated by reference here, 13. Compliance vial applicable rules regarding approval, planning, and reporting of conlerences, meetings, trainings, laid Oiler cmas The recipient, and any subrecipient ("subgrantue") at any tier, must comply with all applicable hues, regulations, politics, aad official DOJ guidance (including specific cost limits, prior approval and reporting requirements, where applicable) governing the use or Icderal funds for expenses related to co» finences (as that term is defined by DOJ), Including the provision of food and/or beverages at such conferences, and costs of attendance al such coNerencus. Information on the pertinent DO.I definition of conferencos and the odes applicable to this award appears in the DOJ Grants Financial Guide (currently, its section 3.10 of"'Poslavard Requirements" in the "D0,1 Grants Financial Guide"). 14. Requirement fur data on perkarmance and effectivetcss under the award The recipient must collect and maintain data that measure the perlimmnnce and effectiveness of svoik tinder this award 'I lie data mast be provided to 0.11, in the manner (including within the limefmnies) specified by 0.11) in the program solicitation or other applicable written guidance. Data collection supports compliance with the Government Performance and Results Act (GPRA) and the GPRA Modernization Act ol'2010, and other applicable laws. 15, 03 PTrafning Guiding Principles Ali), training or training nnncriMs that the recipient -- orally sabrccipicnt ("subgrantee") at any tier --develops or delivers with QIP award funds must adhere to the OJI)'I'mining Guiding principles for Grantees and Subgrunces, available ill luq)s://ojp.gov/fin)ding/InnplemenVl'ratiniugPrinciplesForGrnntees-Snbgrnntces.hun. O PaORN1400012(Iia V.4-aH) 20B-13 U.S. Department of Justice Office oriustice Programs AWARD CONTINUATION P its, _ _'.' Burealn of Justice AssistarnCe SHCCT PAGE e OF 13 Grant I'ROJEC'I'NUmmfiR 2018-aC.BXm01e AWARD DATE 09/242019 SPECIAL CONDITIONS 16. fiFlecl of failure to adda'ess audit issues 'file reelplcllt understands and agrees that Ilse DOJ awarditlgagency (OAP or OVW, as appropriate) may withhold award funds, or Amy impose other related requirements, ir(as determined by the DO) awarding agency) Ute recipient does not satisfactorily and promptly address outstanding issues from audits required by the I'mt 200 Uniform Requirements (or by the terns of this Rival d), or 0111el'oWSla ldittg ISSIICS that at'ise in connection With audit% investigations, or reviews of DOJ awards. 17. Polenliai imposition ofadditional requirements I lie recipient agrees to comply Ivith any additional requirements that neap be imposed by file DOJ awarding agency (O.IPor OV W, as appropriate) during the period or perfonuance liar lb is award, if the recipient is dsignaled is" 11 igll- risk" s"bigh- risk" Ibr purposes oflhe DOJ high-risk grantee list. 18, Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.P.R. Purl 42 The recipient, and tiny subrecipient ("subgrantee') at may tier, most comply with all applicable requirements or28 CCr.R. Part 42, specifically including any applicable requirements in Subpart E of 28 C.F.R. Pmt 42 that reline to an equal employment opportunity program. 19. Compliance with DOJ regulations pertaining to civil rights and nondiscrimination -28 C.F.R. Part 34 '11re recipient, and any subrecipicnl ("subgrantee') at any tier, most comply with all applicnblcrequirennenls of 28 C.F.R. Part 34, which relates to nondiset imination on the basis orses in certain "education programs." 20. Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 CYA. Part 38 The recipient, and any subrecipient ("subgrutee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 38, specifically including any applicable requirements regarding svrilien notice to program beneficiaries and prospective program beneficiaries. Among other things, 28 C.P.R. fart 38 includes rules that prohibit specific forms ordiscriminadon on the basis of religion, a religious bclicl: a refusal to hold a religious belief, or refusal to Intend or participate in a religious practice. Part 38 also sets out rules and requirements that pertain to recipient and subrecipient ("subgrantee") organizations that engage in orconducl explicitly religious activities, as well as rules and mquirenaoats that pertain to recipients and subrecipienls that are Inftla-based or religious organizations. *i lie test of the regulation, now entitled"Partnerships with Faith -(fused and Other Neighborhood Organizations," is available via the Hectronic Code of Federal Regulations (currently accessible at blips://www.ecli.gov/egi- bin/ECFRIpage=browse), by browsing to 'ride 28 -Judicial Administration, Chapter 1, Part 38, undere-CFR "current" data. OJP FORA -1,1000/2 (REV. 4.88) 20B-14 U.S. Department of Juslicc %a ��� Office ol'Justice Programs x Bureau of Justice Assistance .. PROJI-XI NUxlttnit 2018.1IC-Il\-0016 21. Restrictions on "lobbying" AWARD CONTINUATION SHEET Grant AwARU DAT11 07/2613018 SPECIAL CONDITIONS In general, a; at matter or federal law, federal tands awarded by Ohl ntay not be used by the recipient, or any subrecipienl ("subgranncc") at any tier, either directly or indirectly, to support or oppose the enactment, repeal, modification, or adoption ofany Imv, regulation, or policy, al any level ol'governntent. Sec 18 11,S.0 1913, (There nmy be exceptions Iran applicable federal statute specifically onhorizes certain activities that otherwise would be barred by law.) Another Ibderal law generally prohibits federal funds n yarded by OJP limn being used by the recipient, or any suhrecipicnl at any tier, to pay may per son to influence (or talempt to influence) it flfdcral agency, a Member of Congress, or Congress (or an official or employee of any orlhem) with respect to the awarding of a federal grant or cooperative agrcontent, subgrant, contrnet, subcontract, or loan, or with respect to actions such as renewing, extending, or modifying any such award. See 31 U.S.C. 1352. Certain exceptions to this law apply, including an exception that applies to Indian Tribes and tribal or ganizations. Should any question arise as to whether a particular use of federal lands by a recipient (or subrecipicnt) would mmight fall within the scope or these prohibitions, the recipicnl is to contact O.IP l'or 8uidance, and nay act proceed withoul the express prior written approval 0 r0J P. 22. Compliance with general appropriations -lav restrictions on the use of federal foods (FY 2018) The recipient, and any subrecipienl ("subgrantee') at any tier, laud comply with all applicable restrictions on the use of federal funds set out in federal appropriations startles. Pertinent rest iclions, including front various "general provisions" in the Consolidated Appropriations Act, 2018, tare set out art haps://oiVBov/lint<ling/f?yolore/PYIBApproprintionsRestriclions.hint, and tare incorporated by reference here. Should n question arise as to whether it particular use of federal lands by It recipient (or it subrecipienl) would or neigh( Pill within the scope of on oplaOpriationsdaw restriction, tire recipicnl is to contact OJ P for guidance, and only nal proceed without the express prior written approval of OJP. 23, Reporting Potential Fraud, Waste, and Abuse, and Similar Misconduct The recipient and any subrecipienls (" subgrantees") must promptly roller to the DO.I Office of the Inspector Genual (010) any credible evidence that it principal, employee, agent, subrecipicnt, contractor, subcontractor, or other person has, in connection with funds ander (his mvard -- (I) submitted a claim that violates the False Claims Act; or (2) conmilled a ointinal or civil violation of laths pertaining to fraud, cotnict of interest, bribery, graluity, or similar misconduct. Potential fraud, Waste, abuse, or misconduct involving or rdtaing to lands under this award should be repotted to the OIO by-- (1) mail directed tot Office ofthe Inspector General, U.S. Department or.lustice, Investigations Division, 1425 Nov York Avenue, N.W. Sidle 7100, Washington, DC 20330; anrVor (2) the DOJ OIG hotline: (contact irliblo lion in English amt Spanish) al (800) 869-4499 (phone) or (202) 616-9881 (fox). Additional iufommlion i5 available from the DOJ OIC website al Mips://oig.justice.gov/hotline. OlP MI M 400012 (IMV. 4.88) 20B-15 U.S. Department 0l7ustioc office of Justice Paogrnms AWARD CONTINUATION & sig Miami of.lustice Assistance SHUT PAOG s or 13 C rmrl I'RO1r.CTNUAIii61i 2018•11G41X,0016 ------ AwARDOA'M 09/162018 ---^ SPGCIAI, CONDITIONS 24. Resiriclions and certifications regardling nondlisolusoro agroemonts and related nurtlax No recipicnl or subrecipidnt ("s-ubgrnntoe") muter this nward, or entity that receives a prncuncnlcnl conlnlof or subcontract with any finds under this award, may require any employee or contractor to sign illi internal Coll fldcnliality ngrcementor statement that probibits or otherwise restricts, or purports to prohibit or restrict, file reporting (in accordance with law) ofwasle, Itaud, or abuse to an investigative or how enlio-comas representative orn federal department or agency authorized to receive such inrornration. The foregoing is not intended, and shall not be understood by the agency making this award, to contravene requirements applicable to Standard Donn 312 (which relates to classified infoi'nlation), Form 4414 (which relates to sensitive compartmented fiAnrnation), aany other Farm issuwi by it ledend department or agency governing the nondisclosure of classll and information. L In accepting this award, Elie recipient -- a. represents that it neither requires nor has milked internal confidentiality agreements or statonrcats from employees or contactors that eurrcridy prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reposing waste, franc, or abuse as described above; and b. certifies that, Wit knolls or is notified that it is or bas been requiring its anployocs or contractors to execute agnomens or statunrents tint prohibit or otherwise restriet (or purport to prohibit or restrict), reporting of waste, thud, or abuse as desa'ibod above, It will immediately stop any further obligations of award lands, will provide prompt wl blen notification to the federal agency ranking this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that ligancy. 2. if the recipient does or is autha'iud under this nward to make subawa'ds ("subgraas"), procurement contracts, or both.. a. it represents that -- (1) it has detennlned that no other aunty that tine recipient's application proposes may or will receive award Rants (whether through it subaward (" subgranl"), proeuroment contract, or subcontract under a procurement contract) dither requires or has required internal eonfidenlnlby agreunrwrts or statements front employees or contractors that currently prohibit or otherwise currently rcsh'ict (or porporl to prohibit or restrict) employees or contractors from reporting waste, Fraud, or abuse as described above; and (2) it has made approprlate Inquiry, or otha'wise has all adequate factual basis, to support this representAlloil; and b. it certifies on , irit lea ms or is notifia i that any subrecipiaa, contrnetor, or subcontractor entity that receives rands umlor this award is or bas been requiring its employees or contractors to caecuc agreements or statements that prohibit or otherwise rata lot (m' puglort to prohibit or restrict), reporting of waste, riaud, or abase its described above, it will aunediately stop any Further obllgntions oraward foods to or by that entity, hill provide prompt written notlfc¢uiou to Ne 1''edc1111 agency narking this award, tad will resume (or permit resumption ot) such obligations only ifexpressly authorized to do so by that agency. O1P FORi1400W2(RlzV.4•sa) 20B-16 U.S. Departnto It oGtushce a Office ol'Justicel'rograms AWARD CONTINUATION y f t3nrcall tf Justice Assistance SHEET PAGE: 9 or to Grant i i PROJITTNUMmiR 2018-13C-mX-0016 AWARD DAIT e9J20018--_ v — SPECIAL COND7770A'S 25. Comp] hence with 41 U.S.C. 4712 (including In on reprisal; notice to employees) 'Ile recipient (and any subrecipient at any tier) Ansa comply with, and Is subject to, till applicable provisions of 41 11.S.C.4712, inclu<Intg all tq>pllcable provisions that prmhibil, soder specite<I ciromnat:ueos, discrinilnation agatmst an employee as reprisal Ibr the employee's disclosure of information related to gross mismanagement of a federal grant, a gross waste of federal funds, at abuse of authority relating to a federal grant, a substantial and specific danger to public lealth or safety, or it violation of law, rile, or regulation related to a federal grant. The recipicnt also must inform its employees, in writing (and in the preclo ninant native language of (he workforce), of employee rights and remedies tinder 41 U.S.C. 4712. Should a question arise as to the applicability orthe provisions 01'41 U,S.C, 4712 to this award, the recipient is to contact the DOJ awarding agency (0.111 or OV W, as approprinte) for guidance. 20, Encouragmmcul of policies to ban lost mossaging while driving Pursuant to Pscunive Order 13513, "federal Leadership on Reducing Text Messaging While Driving;' 74 Ped. Reg. 51225 (October 1, 2009), DOJ encourages recipients and subrccipients ("subgrnnlees") to adopt and cnlbrce policies banning employees from text messaging white driving any vehicle during the course of perforating weak Ilmded by this award, nod to establish workplace snl-ety policies and conduct education, awareness, and other outrench to decrease crashes pursed by distracted drivers. 27. Requirement to disclose whether recipient is designated "high risk" by a federal grant -making agency outside of DOJ If the recipient is designated "high risk" by it federal grant -making agency outside of DOJ, currently oral any time during the coe:ec OC111C period arperformance under this award, the recipient must disclose that Fact and certain related tnfinnurtioan to OJP by cnraii al OJP,QunplianceRepor[ing(t)oip-usdoJ,gov. For poq)pses orans disclosure, high risk includes any slams under which a fedcod awarding agency protides additional oversight due to l6e recipient's past lieri'olnuuhcc, or other programmatic or financial comeems with the rucipieut. "I'he rucipicn('s disclosure must include the following: 1.'f ice l4deral awarding agency that currently designates the recipient high risk, 2. The date the recipient was designated high risk, 3. The high-risk point of contact at that federal awarding agency (name, phone number, and email address), and 4, The rphsons for the high-risk status, as set out by the fedoral awarding agency. 28, T he award recipient agrees to participate in a data collection process measuring program outputs and outcomes. The data elements ler this process will be outlined by the Office of Justice Programs. 29, C'onildcmitilily0fdala The rwipiont (And a y subreeipicni nt any tier) must comply with all confidentiality requirements of 42 U.S.C. 371lgg mad 28 C.F.R. Pala 22 that arc applicable to collection, use, and revelation of data or inibmunion. The recipient further agrees, as it Condition ofmvsrd approval, to submit a Privacy Certificate thin is in record With requirements ol'28 C.F.R. Pall 22 and, in particular, 28 C.F.R. 22.23. 30. The aecipieut agrees to cooperate with any assessments, national evaluation efforts, or iul'mrtualiou or chtla collection requests, hhcluding, bill not limited to, the provision of any infornution r¢quiml Ibr the assessment or evalualion orally activities within this project. 0.111 FORM 40000,2 (REV. 4.88) 20B-17 U.S. Department of Justice Ofliceol'JusticeFlograms AWARD CONTINUATION Bureau of,InsUce Assistance S6IIiGT PAGto or la C+t-alit PR JECTNUNnGR 2018.13(74M0016 --_-AWARD DA'I'S W261201s _-_---� SPEC/A!. CONDITIONS 31. Justification ofcousoI(all l mle Approval of this award does not indicate approval of any consultant rate in excess of $650 perday. A detailed Justification most be submitted to and approved by the OR program office prior. to obligation or expenditure ofsnoh liutds. 32. RATA reporting: Subaavarcis and executive compensation "file recipient must comply with applicable requirements to report first-tior submvards ("subgrants") or.$25,000 or mare and, in certain circumstances, to report the names and total connpeasalinn 01,1110 live most highly compensated executives ofthelceipiclt and tent-tiw'subrecipients(first-tier"subgrtutees") oPmvard finds. Thcdetails ofrecipient obligations, which derive trona the Federal Funding Accountability and'fransparency Act of 2006 (FFATA), are postal nn the O.IP Web site it luq>s:Aojp.gov/funding/Gxpiore/FFATA.hnn (Award condition: Repotting Subaavnrds tilt(] Executive Compensation), and are Incorporated by iclorence here. 9'11bs condition, including its reporting requirement, does not apply to-- (1) an award of less than $25,000, or (2) en cover(] nand¢ to an individual Who received the award as a annual person (i.e., unrelated to tiny business or non-profit organization that he or she may own or operate in his or hor name). 33. VOLH1 6011 and updating of recipleat contact information The recipient must vurily its Point orcontact(POC), Financial Point of Contact (FPOC), and Authorized Representative contact information in GMS, including telephone number till(] c -mail address. If any information is incorrect or Inc; changed, a Grant Adiusmxunt Notice (GAN) must be submitted via the Grants Manugellent Systunn (GMS) to doauvenl changes. 34. 'file recipient agrees to comply Widp.OJP grant mmllitoingguidelines, protocols, and procedures, and to Cooperate with WA and OCEO on nil grant monitoring requests, including requests rotated to dosleroviews, enhanced pmgran nanalc desk mvicays, and/or site visits. `l7ae recipient agrees to provide to 13JA sad OCFO till documentation necessary to complete monitoring tas(fs, including documentation relined to any subawards mado under Ill Is award. Further, tits recipient agrees to abide by reasonable deadlines set by BJA and OCTO for providing the requesed documents. Failure to cooperate with WA's/OM's gait monitoring activities any result in sanctions anneling the recipient's DOJ awards, including, but not limited to: withimldhtgs and/orother restrictions on the incipient's access to grant fbnds: reicirai to the onico of the Inspector Genoral for audit review; designation of the recipient as it DOJ High Risk grmaee; or termination dans award(s). (7JP IrORM1I 9f1 W:a (liCa'. �I-85) U.S. Department ol'Justice Office oriustice Programs AWARD CONTINUATION E ray Bureau of Justice Assisfance SIi11C'P Prue 11 OF r Cl -ant PaO.ILCT NUMBER 2013-IlC-IIX-0016 A\\S\RD DATP aTMV2e18 SPECIAL COADI'77ONS 35. Copyright Data rights The recipient acknowledges that OJP reserves it roya]lydive, non-exclusive, and irrevocable license to reproduoc, publish, or otherwise use, and authorize others to use (ill whole or in part, including in connection still derivative works), for Federal purposes: ( I ) ally work subject to copyright developed under an award or subaward; and (2) any rights of copyright to which a recipient or subrecipient purchases ownership with Federal support. 'rhe recipient acknowledges thal OJP has the right to (1) obmin, reproduce, publish, or otherwise use the data first produced under run award or subaward; and (2) authorize others to receive, reproduce, publish, or otherwise ase such chin for Federal purposes, "Dana" includes data as defined In Federal Acquisition Regulation (FAR) provlsiou 52.227- 14 ()lights in Dale - General). It is the responsibility ol'the recipient (and of each subrecipient, if app] icable) to ensure that this condition is Included in any subaward aider this award. The rociplcnl tins the responsibility Ia obtain flnm subrocipienls, contractors, and Subcontractors (iflmp•) all right.$ and data necessary to fid fill the recipient's obhgatioas to the Government under this award Ira proposed subrecipient, conh'actol, or subeonhnctor refuses to accept terms affording the Government such rights, the recipient shall promptly bring such rofusnl In the attention or the OJP program manager forthe award and not laocced with the agreement in question \without htrthcr authorization from the O.IP program office. 36, Any Web site that is finided in whole or in part under this award lutist include the following stmcanant on the home pate, on lilt major troy pages (ic., pages (exclusive ofdocuments) whose primary pwpose Is to navigate the user to interior content), nud on ally pages heal which it visitor miry access or use a Web -bused service, including any pages that provide resells or outptas from (he service: ['his Web site Is funded in whole or in part through it grant pool the Dunne ol'Juasiice Assistance, Office orJuslice Programs, U.S. Deparlmaot o0ustice. Neither the U.S. Department of ,justice not ally of its components operate, control. are responsible Cor, or necessarily enclose, this Web site (lactating, without limitation, its conical, technical infrastructure, and policies, and any services or tools provided)." The full test of tato fmvgoing shaement must be clearly visible oil rine home page, (,tin other pages, the statement may be Included through it link, emitted "Notice of Federal Funding and Federal Disclaimer," to tine fill] text of the statement. 37. The recipient agrees to submit to DJA f'or review and approval ally c tiTleadn, training materials, proposed publications, repels. or any other written intact iols that will be published, including web -based materials and well site content, through (ands from this grime at least thirty (30) working days prior to the targeted dissemination date. Any written, visual, or nodio publications, \\Atli the exception of press releases, whether published at the grantee's or government's expense, shall contain the following statements: "this project was supported by Crani No. 201 8 -DC -13X-001 G awarded by the bureau of,lustice Assisumce.'['lie 13t11'eal OCRIslice Assistance Is it competent ol'the Department of .1u31ica's Office ol'Atilice programs, which also includes the 13ur'eau ol'Justice Statistics, the National himinac of Justice, the 017ice of.luvouile Justice and Dehnquencv Prevention, the Office for Victims of Crime, and the SMART OI'liw. Points ol'view m' opinions in this document aro those ol'the author and do not necessarily represent the official position or policies ol'the U.S. Department of.htslice." The current edition of the DOJ Ganes Financial GLlf(le provides guidnnec on allowable printing and publication activities. 3S. Recipient untesmnds and agues than it most submit qunrtel'ly Fadoral Financial Reports (SF -425) and scall -annual performance roports through GMS (haos:/lgrantsojp.ust(Ij.gov), and that it must submit qumter]y performance mchics 1vporl$ through D.I A's Performance Muasurcment Tool (PNIT) website For nitro detailed information on reporting and other requirements, refer to 13JA's website. Failure to submit required roports by ustnbdished dcadlinos nary resort in the hroezing ofgranl foods and High Risk designation. OJP FP2\t d00o:2 (RI -V -1-38) 20B-19 U.S. Department of Justice ` "w. 017iceofJusticeP]ogretns AWARD CONTINUATION y.. ' Bureau of Justice Assistance I SHTsl;'f rncE 12 ar u 4 Grant I PROJECA'NUMBER 2018.13('.3X•0016 AWARD DATE 09/26/2018 SPECMc COND177ONS 39. '1 lie t'ccipient is authorized to obligate, expend, or doov down birds in tar amount not to exceed 10% of Ibis award for the sole purpose ofdoveloping it Body-Wortr, Camera (B WC) policy. nuc IJ WC policy must be submitted no Iain than 180 days 01'11vard acceptance, unless an extension for good cause shown has been granted by MA. The recipient is not authorized to incur tiny additional obligations, male any additional expenditures, or (haw (Iowa any additional finds until INA Imsappioviul the weipienl's completed B WC policy and has issued It Gran Adjustment Notice (GAN) I'ellloving this condition. 40. Required attendance lit WA -sponsored events The recipiont(taxi its subreciplcnts at any tier) must participate in BJA-sponsored training events, technical assistance events, or conferences held by I3JA or its designees, upon BJA's request. 41. 1 l igh risk: Withholding - Completion of"O.IP financial arrangement and grtmt administration training" required The recipient may not obligate, experul, or dram clown funds under this award until— (1) 0.11? determines that the recipient's Point ol'Contacl (POC) and all Financial Points of Contact (FLIM) fot'this awalyd hove sucecsslLlly completed tin "OJP financial nlmnagemen and grant administration training" on or after January I, 2016, and (2) OJP issues a Gram AdjumUncnt Notice (GAN) to modify or remove this special condition. Once both the POC and III FPOCs have successfully completed the training required by this condition, the recipient may co tact the designated grant manager Ibr Iha nwnrd to request inithtiml ofa GAN to remove this condition. A list ol'the O.111lrainings ORR OJPtvill consider an "0311 financial manllgemenl and grmnC administration U'ainitg" for purposes of this condition Is available at haps:/lojp.gov/training/I'mts.htm. All trabrings that satisfy this condition includca session on grant fraud prevention mud detection. 42. The mcipicnl agrees promptly to provide, upon request, financial or progr inumalilrrclated documpntation.related to this mvard, including documentation ol'expondinucs and ichieve n sits. 43. The rccipient understands that it will be subject to additional linancinl and progralmnatic on-site monitoring, which uuty be on short notice, and agrees that it will cooperate with ally such monitoring. Ad. Rceipient rally not obligale, uxpcud, or drawdmvn funds until the Bureau of Justice Assistance, 0I'tleeo0tuaice Programs has reviewed and approved the Budget Ninative portion of the application and his issued a Grant Adiustnwnt Notice (GAN) intinming lire recipient of the approval. 43. Recipient may not obligate, expend or dmN4'IMVII Fluids until the Belleau of Ju%ice Assistance, Offtec of LIStlee Pregranis has received and approved the required application aaachnlcnt(s) and has issued a Grunt Adjusamcut Notice (GAN) releasing this special condition. 031' FOW 4000/2 (I EV.4.88) 20B-20 U.S. Department ofJoslice �w Office of.lustice Programs q Bureau of Justice Assistance AWARD CONTINUATION SHEET Grant PAGa 13 OF 13 I'IkOJCC'1'NUA1ntilt 2018-mC-IiS-0016 AWARDJWE 09126/2018 i ,SPECIA11 COND77'IOrV.S 46. Withholding of llurds: Disclosure ofpmrding applications "file recipient may not obligate, expend, or draw down any arvard foods until: (1) it has provided to the grant manager Por this OJP nrvard either an "appliaurl disclosure of pending applications" for federal finding ora speclPc affirmative statement that no such pending applications (whether direct or indirect) exist, in accordance with the detailed instructions in the program solicitation, (2) Of 1) has completed its ravicw of the information provided and of' any supplemental in fornmrtion it nay request, (3) the recipient has made any adjustmmlls to lire award that OJP any rroqubc to preveol or eliminate any inappropriate duplianion of funding (e.g., budget modification, project scope adjustment), (4) irappropriaw adjustments to it discrot ionary award cannot be made, the recipient has agi ced in writing to any necessary reduction ol'the toward anrormt in tiny anroua sullicienl to prevent duplication (ice determined by 0.I11), and (5) a Grant Adjustment Notice has been issued to remove this condition. 47. 'file recipient is amhori-red to incur obligations, expend, nod draw down foods for travel, lodging, and per diem costs only, in an amount not to exceed $15,000, lot the sole purpose of attending it required OR conference associated with this grunt Lovaid. The grantee is not authorized to incur any additional obligations, or make any additional expenditures or draw downs until theawarding agency and rhe Office of the Chief Financial Ofticor (OCPO) has reviewed and approved the rucipitims budget and budget narrative, and it Groat Adjusanma Notice (GAN) has been issued to remove this special condition. 0J0 F0R%l doom! (env. 1,88) 20B-21 U.S. Department of,tustice @*:qt'rj Off ce of Justice Programs Bureau nfAstice Assistance 11',uhmp,, DC. 2O531 Metuoralicit, in'po: Official Grant File Front: Orbin Terry, NEPA Coordinator Subject: Categorical Exclusion for City of Santa Ana Awards under this program will be used to plan or implement a body worn camera program. None of the following activities will be conducted whether under the Office of Justice Programs federal action ora related third party action: (1) New construction. (2) Any renovation or remodeling of it property located in tin environmentally or historically sensitive area, including property (a) listed on or eligible for listing on the National Register of Historic Places, or (b) located within a 100 -year flood plain, a wetland, or habitat for an endangered species. (3) A renovation which will change the basic in use of a facility or significantly change its size. (4) Research and technology whose anticipated and future application could be expected to have an effect on the environment. (S) Implementation of a program involving the use of chemicals. Additionally, the proposed action is neither a phase nor a segment of a project which when reviewed in its entirety would not meet the criteria for a categorical exclusion. Consequently, the subject federal action meets the Office of Justice Programs' criteria for a categorical exclusion as contained in paragraph 4(b) of Appendix D to Part Gl of Title 23 of the Code of Federal Regulations. 20B-22 US, Departillent 01'Justice GRANT MANAGER'S MEMORANDUM, PT. 1: a Orfien or'lumico Pron was �PROJ �gg ECT SUMMARY Burenni or,itistico Assistance s Grant PROJFCf N ON IHER PACE: I 01� I 20l&BC43x-ooI6 is project is supper led under FYI 80A, Body -Worn Center a Program) Put L. No. H5.141,132 SM0,18,422 4111iren ftoy DteidVulenfla (2111111,1139 Cluaturl'olice 60 Civic Center Saula Ana, CA 92701 (714) 245-8003 3a. TITLE OF F) IF PROGRAM 3b. POMS CODE (SEE INS'T'RUCTIONS ON REVERSE) Calegoty 3; Implementation Or FWatision of BWC Progrnans or Large Agencies 4.,rl'1LE 017 PROIECI Body Wom Caner, Flibancoment Proamm 5, NAME ADD1117SS Or GRANTEE 6. NAME & ADRESS OF SUBGRANTEE City ol'Sman Ann 60 Civic Center I'liter, Santa Ann, CA 92701 7. PIKOGRANI PERIOD 8.131JI)C' ET PERIOD FROM. 110100018 'j'0 09/.30/2021 FROM: 10,'01/2018 '10: 09500021 9, ANIOUNT OF AWARD 10. DATE OF AWARD S 99,291 09/26/2019 11. SECOND YEAR'S BUDOLI 12. SECOND YEAR'S BUDGE fAMOUNT fl 1116 - — -F — F H )TAWS IUDGFIFAZIMM 15. SLIN INIARY DESCRIPTION OF mtwibcr (see instruction on reverse) *file Fairly Wool Ounce policy and Implementation prooraill ill PIP)provide binding (a looked public noenclas (i.e., sines, unts oflocal government, (Including 11 ibal government, racognized by the Secretary of ilio Interior), tumbinnlbns of Hoch states or units, at any delou [area(, agency, at instrumentality of the foregoing), Quit jun fault criminal justice functions; and national and nogininal public end a ivine, entities, Including flar,prefit (rouninneraind) and noriprollt o%anizations (including It bat nonprofit or far-proth oronizetiona), faitb-basal wad community at punizalions, And institutions all education (including tribal inciamous, oFinaher education) turn support initiatives in improve the Functioning of Ile, C, iminal police SYSTC111. F01'-pYQAI 0Tcflu7,Ri0aS Roan flioce tO forpli) tally jurifill ar ... antigeniont Ice. The FIWC VIP, fiarded under the 2017 Depainuent ot Justice Appoint loners Act (P,l- 115-31), twill Support the 111IFlumentintion ol'body-warn Central Innotanat* in la" enfrarcencent agencies across the country. 1,110 uncia ofthe plogiall) is to ]tell, agencies develop, implement, and evultuire it 13WC propirm its one, anol in it Itiev - ---------- ---- — ---- - ------- — OJT' FORM 400012 (RFV. 4.89) 20B-23 cnrorcnmmlt agency's compruhaasive problem solving appr'unch to enhance.1rcor safety and build connnunitY trnsi, Genmms of such an oppronch Include: implententmion ol'n ❑ WC pl ognnn developed in a planned and phased approach; collaborndon than leverages paivrerships with crossmgoncy crinti ud Just ico smkeholders including prosecnlors and advocacy organizations; inspletnenmtinn ofapproprime privacy policies; linplementalioo oroperniional procedures and trucking mechanisms; training ol'olYieors, adminisurmors, and associated agencies requiring ncecss to digital multimedia evidece; and the adoption ol'pructices and deployment of@WC prop mos appropriately addressing operational requirentmus. C'ANU 20B-24 ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARV City Attorney By: TAMARA BOGOSIA Assistant City Attorney RECOMMENDED FOR APPROVAL: DAVID VALENTIN Chief of Police 20B-25 20B-26 Exhibit 2 THIS SECOND AMENDMENT to the above -referenced agreement is entered into on December 4, 2018, by and between Axon Enterprise, Inc., a California corporation ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The parties entered into Agreement #A-2017-1.13, dated May 2, 2017 ("Agreement"), by which Consultant agreed to provide software licenses in support of the Body Worn Camera equipment utilized by the Santa Ana Police Department. The term of the Agreement runs through May 1, 2022, and is still in effect. B. In August 2017, the parties entered into a First Amendment to the Agreement (#A-2017.113- 01) by which the parties agreed to memorialize the change in the Consultant's name to Axon Enterprise and to utilize $25,000 of the contingency funds, previously approved by the City and include additional finds to cover the remaining balance for the purchase of 80 additional Evidence.com unlimited licenses for one year during the term of the original Agreement. C. The body worn camera system and the software licenses for the use of the body worn cameras are utilized through a system called Evidence.com. The license provides security and encryption of the data accessed from the body worn cameras to prevent unauthorized use or access to the evidence or data obtained by the equipment. D. Per the terms of the Agreement, City purchased twelve (12) docks and purchased the first year of a maintenance program provided by the Consultant for the body worn camera. program. E. The parties now wish to further amend the Agreement to increase the overall compensation to allow the City to exercise its option and engage the Consultant for the annual maintenance costs for the additional 80 Evidence.com unlimited licenses and the 12 docks for Years 2-5 of the Agreement. In addition, the parties agree that any costs for services rendered from the expiration of the First Amendment until the execution of the Second Amendment are covered for and paid by the City. The Parties therefore agree: 1. Exhibit A to the original Agreement shall now include Axon Quotation numbers Q-134092-2 and Q-149041-43116.665MC, which shall be identified as Exhibit A-3, to accept and implement the maintenance costs for Optional years 2 through 5 for the 12 docks previously purchased by the City. 2. Exhibit A-2, shall be amended to accept and implement the maintenance costs for Optional years 2 through 5 for the use of 80 additional Evidence.com unlimited licenses, and storage as listed in Exhibit A-2. Page ] of 2 20B-2% 3. The total sum to he expended for the payment of the additional software licenses and maintenance referenced in this Second Amendment shall not exceed $358,041.92. This cost includes a contingency find of $5,000 a year for four (4) years for projects to be approved at the sole discretion of the City. The five-year not -to -exceed Agreement amount will be increased from $1,531,522.26 to $1,889,564.18. 4. Except as modified by this Second Amendment, all terms and conditions of the Agreement and the First Amendment to the Agreement, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above. ATTEST MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM Assistant City Attorney RECOMMENDED FOR APPROVAL DAVID VALENTIN Chief of Police CITY OF SANTA ANA RAUL GODINEZ II City Manager CONSULTANT Name: Title: Page 2 of 2 rl- Axon Enterprise, Inc. Protect Life. 17800 N 85th St. Scottsdale, Arizona 85255 United States Phone: (800) 978-2737 Fax: (480)991.0791 Milce Gonzalez (714)245.8665 (714)245-8606 rrgonza1ez@sinta­ana.org Ship To: Mlle Gonzalez Sana Ann Police Dep( - CA 60 CIVIC CENTRR PLAZA SANTA ANA, CA 9270:1 US Exhibit A-2: Change Order - AXON First Amendment to MSA B111TO: Santa Ana Police Dept -CA PO BOX 1981 SAN'T'A ANA, CA 92702 (is QUotat.l017 Quote: Q-126518.7 Date: 8/7/2017 12:37 PM Quote Expiration: 9/29/2017 Effective Date*: 9/1/2017 Contract Number: 00011822 Contract Expiration Date: 6/30/2022 Ax Account Number: 105857 *'These subscriptions have been fret atad for (he duration of the, existing contrac(and will be up 1'or renewal at the expiration date lister) above. Year 1 Due Net 30 OTY ITEM # DESCRIPTION NET UNIT PRIGS NET TOTAL 80 85123 EVIDENCE.COM UNLIMITED LICENSE YEAR 1 PAYMENT USD 790.00 USD 63,200.00 3,200 85110 EVIDENCE.COM INCLUDED STORAGE USD 0.00 USD 0.00 Year 2 -Optional Tax Amount: Year 2 -Optional Not Amount Due Including Taxes: Year 1 Tax Amount: Year 1 Net Amount Due Including Taxes: m.-�. USD 4,898.00 USD 08,098.00 Year 2 -Optional QTY ITEM # DESCRIPTION NET UNIT PRICE NET TOTAL 80 85124 EVIDENCE.COM UNLIMITED LICENSE YEAR 2 PAYMENT USD 048.00 USD 75,840.00 3,200 85110 EVIDENCE.COM INCLUDED STORAGE USD 0.00 USD 0.00 Year 2 -Optional Tax Amount: Year 2 -Optional Not Amount Due Including Taxes: USD 5,877.60 USD 81,717.60 Year 3-Op(lonal QTY ITEM # DESCRIPTION NET UNIT PRICE NET TOTAL 80 85125 EVIDENCE.COM UNLIMITED LICENSE YEAR 3 PAYMENT USD 948.00 USD 75,840.00 Page 1 of 3 20B-29 QTY ITEM# DESCRIPTION NETUNITPRICE NETTOTAL 320p &5110 EVIDENCE.COM INCLUDED STORAGE USD 0.00 USD 0.00 Year 3.Optlonal Tax Amount: USD 5,877.60 Year 3.Optional Net Amount Due Including Taxes: USD 81,717.60 Year 4-Ootinnal QTY ITE M# DESCRIPTION NETUNITPRICE NETTOTAL 80 85126 EVIDENCE.COM UNLIMITED LICENSE YEAR 4 PAYMENT USD 948.00 USD 75,840.00 3,200 85110 EVIDENCE.COM INCLUDED STORAGE USD 0.00 USD 0.00 Year 4.Optlonal Tax Amount:. Year 4 -Optional Not Amount Due Including Taxes: USD 5,877.60 USD 81,717.60 V.ar r,.n�ti� i QTY ITEM# DESCRIPTION NETUNITPRICE NETTOTAL _ 80 85127 EVIDENCE.COM UNLIMITED LICENSE YEAR 5 PAYMENT USE 048.00 USD 75,840.00 3,200 85110 EVIDENCE.COM INCLUDED STORAGE USD 0.00 USD 0.00 Year S -Optional Tax Amount: Year 5 -Optional Net Amount Due Including Taxes: USD 5,877.60 USD 81,717.60 Subtotal USD b3,2U0.0U Estimated Shipping & Handling Cost USD 12.96 Estill] atcd Tax U,SD 28,408.40 Oraud Total USD.)1,621.3b Page 2 of 3 20B-30 Hardware Shipping Estimate Typically, hardware shipment occurs between 4 — G weeks alter pit GIUMe (into. Product avnilabiI ily for noir or high demand products may impact delivery time. Those licenses will not be allotted any TAP Rclicshm nim Axon Enterprise, Inc.'s Sales Terms and Conditions for Direct Sales to End User Purchasers By signing this Quote, you are entering into it contract kind you celiify that you have rears laid agree to the provisions set Porth in this Quota sad Axon's Master Services and Purchasing Agreement pasted at aselt.eotn/JczaVSfdoJ—Ara?kof l( g9.11ditiaat. You represent [hill you are horridly able to enter into contracts slid if you are entering into this agreomcnt for all entity, such as the company, municipality, or government agency you work for, you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, do not sign this Quote, Signature: Name (Print): POO (if needed): Date: Title: Quote: Q-126518-7 Please sign and emall to Chad Kapler at ckaplcr@axomcoin or fax to THANK YOU FOR YOUR BUSINESS! 'Protect urev and "TASE'R0 are registered badenmrks of Axon Enterprise. Inc, registered in the U.S. 493013 Aron Enterprise, Inc, All rlghls resmcd. Page 3 of 3 20B-31 Exhibit A-3: Second Amendment to the MSA m j- C)4 Axon 1 nterpz ise, Inc. nNlT -'Cf.m Pra2neLlfo. DISC(((( UNT(S) M00 N 85th St, tedtArizona A525S A I0 UniteeS d Staa tex United Picnic: (800) 973.2737 Pax: (480) 991-0791 Sorgio ttmtryuez (714)245.8665 Qwtcatioil (714) 245.8606 Quiet Q-134992-2 sonriqutax a Banta-ana,org Datm 9(18/201711;12 AM . BV1DriNCR,(AMDgCiC Qvinto Expiration: 10/31/2017 Effective Date*1 11/1/2017 e. fa'M-#- Contract Number: 00011822 ..,.USD ContractEXPIrAtton Dole; 6/30/2022 USD 0,00. AX Account Numdeu; Your Q'1'Y YTUffi!f DI,$U1211"rAUN UNIT,` `POTAY,B$PORfy DISL'QUN1'(S} � NIe'1'9'U2'Al, 7 570)6 TASYIRA$&URANCEPLANDOCK2 ANNUALPAYMUN'T YYUC,td 1)ASCOUN'1' Wi5d.0. USD 1,512.00 7 '37026 " TASKS ASSURANCUPI.ANDOCK 2 - - ' USD816,00 USD 1,41200 U800,00- - "I". VSD 1161080 ANNUALPAYMBN'P .. :. ..rte... Yonr 8 TnsNwumb USD 117,18 Your;l Not Amomit Due Molu0ln8 Taxest USD 1,629,18 Yoar4 QTY YTDMd DrSCRIP'PIOIY ... � yUNYT . P.D1CU 'PUPAL UUFORU DtSCQUNI' DY.S000NT ($) . XZT TOTAL 7 570)6 TASYIRA$&URANCEPLANDOCK2 ANNUALPAYMUN'T USD'd16.00 USU l,S1200 Wi5d.0. USD 1,512.00 Yenr4 Tax AnmmLLl Yea' a Not AmnuntDuo Lm6ldlugTaxell USD 117.18 USD 1,629.18 Your S QTY 1TPhIA UPSCIUPTTON _ UN1T PRICE TDTALBEFORB .UYSCIOUNT IQCOUNT($) Nrrl'OtAL 7 8/04( . 'fASiiR ABSi}IkANC.B PLAN LOCK 2 ANNUAL PAYMUNT USI)%16,00 USU 111120 0.00 USU 1,513,80 Yxxr S'A'xx Amnuntl Year $ Nat Anmune Dna DmhelinSTox0l M USD 11718 USI)11619,18 Suhtntn U8D 17,'164.00 Rsthantad Shlpphg.4 fraadiing QlrlQ GSD 139,27 Afillnmtud Tax USU 1,974,87 Oralt((Tatol USU 19,282,10 Hardware Sldpplag Ustintatr[ Ty0lcally, hnrdwatrc; shipment unauru between d -- 6 weeks aRor puralteso data Prodaat avullnhllily foraow or Idgh domand products may hnpae dellmy thve,: Pn(;o 2 al' 3 20B-33 �� AXON QUOTE: 0-149041.43116.865MC Quote Explratloc olf3wo-48 i Axon enterprise. A1C. Ported Llfe. 17800 N 85th st Start Data: 02/01/2018 ScalIndale , Arizona , 05259 Payment Terms: Net 30 PlnStates Delivery Method: Fedex- Ground hoa ( 0.2737 Contract Number: 00011822 Salus Roorasontallvoi Primary Contacb Mark Canenguez Sergio Enriquez 800.078.2737 (714) 245-8065 moanengue4@taseccorn senriquoz a Santa-ana,org BILL TO: SHIP TO: Santa Ann Police Dept - CA Sergio Enrlquez CITY OF SANTA ANO Sante Ana Police Dept - CA PURCHASING DIVISION M16 60 CIVIC CENTER PLAZA 20 CIVIC CENTER PLAZA Santa Ana, CA 92703 RM 429 U5 SANTA ANA, CA 02701 us Year Itna Desoription Quantity Not Unit Price Tota((USD) Axo,ns & P 87026TASER ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT 5 • 90 001 450.00E Flatrdwaro 74008 AXON DOCK, 6 SAY 9• CORE, AXON BODY 2 5 1,480.05 7,400.25 Subtotal 7,850.25 Estimated Shipping 0.00 Taxes 0.00 Total 7,85025 Year 2 Item Description - Quantity Not Unit Price Total (USD) .. Axon Plans & Packages 87026 TASER ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT 5 216.00(',.r�"` 1,880 00 Subtotal `�-,_ "0.80'00"" Taxes 0.00 Total 11060.00 Year 3 Description _ Quantity , Net Unit PriceTotal (USD) 1 - Mon Plans & Packages 87026 TASER ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT 6 216.00 11080,00 Subtotal 1,080.00 Taxes 0.00 Total 1,080.00 0-1.49041.4911.6. fib SMG 1 20B-34 Year 4 Item Description Axon Plans & Packages 87026 TASER ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT Year 5 Item Description Axon Plans & Packages 67026 TASER ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT Q-149041 4 3 7.16.66 5 M C 2 20B-35 Quantity Not Unit Price Total (USD) 5 216.011,080m Subtotal 1,080.00 Taxes 0.00 Total 1,080.00 Quantity Not Unit Price Total (USD) 6 216.00 1,080.00 Subtotal 1,080.00 Taxes 0.00 Total 1,080.00 Grand Total 12,17tli2'6� AXON Discounts luso) Quote Expiration: 0113012013 List Amount 12,245.00 Discounts '. 74:75 Totai 12;174,25 "Total excludes applicable taxes and shipping Summary of Payments Payment Amount (USD) . Year 1 7,850.25 Year 2 1,080.00 Year 3 1,080.00 Year4 1,080.00 Year 5D QO ..-Grand Total Hole -those subscriptions have been prorated for the duration of the contract and expire with the existing contract. Axon Enterprise, Inc.'s Sales Terms and Conditions for Direct Sales to End User Purchasers By Signing this Quote, you are entering Into a contract and you certify that you have read and agroo to the provisions set forth In this Quote and Axon's Master Servtoes and Purchasing Agroomont posted athttoaa/vnMv,axon.ra,(i g, aVr�9pIQa+;(yt!B,9 antl-sondtlons You represent that you are lawfully able to enter Into contracts and if you are entering Into thisa regiment for an entity, such as the company, mm municipality, or ovornant agency you work for, you represent to Axon that you have legal au1hy6tY�V-Vn a e . fyoua4g_Ot have :11180 horfty, do not ebn trite Vote, signature: / " A Datw Name (Print)'—t�^y- ���g yufy Title: PO# (or write NIA): Quote: 0.149041-43116.665 MC 'Protect Llfe'q and TASER®are registered trademarks of Axon Enterprise, Inc, registered In the U.S. 02013 A=n Enterprise, Inc. All rights reserved. (1449041431.16.66 S M C 4 20B-37 pqpljiMoo REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROVE LICENSE AGREEMENT WITH EAST END REALTY PARTNERS, LP TO CONSTRUCT NEW DOWNTOWN SKATE PARK (STRATEGIC PLAN NO. 3,4) ON 00- ��WMMTICJM_m RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: /_111=159 01 ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a license agreement with East End Realty Partners, LP to construct and maintain a new skate park in Downtown Santa Ana for a five year period effective on the date of City's execution of the agreement, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing $10,000 from East End Realty Partners, LP in revenue account (no. 02710002-57990) and appropriate the same amount to expenditure account (no. 02710133-66200) to be used for the completion of parking structure improvements at the 5th and Spurgeon garage. DISCUSSION Skateboarding has gained popularity in Southern California as an active mode of transportation. In 2020, the Tokyo Olympics will now feature skateboarding as an official competitive sport. In Santa Ana, the City currently only has one skate park located at Centennial park that is available to youth and residents. Many of Santa Ana's youth use skateboards as a way to get to and from school by traversing through the downtown area. Some areas of the downtown have seen an increase in the damage to curbs, benches, and planters from skateboarders. By creating a community space for skateboarding in the downtown, youth in the City will be provided an recreational opportunity that both nmvides a healthy lifestyle and potentially alleviate future damage to this downtown infrastructure. The skate park would also aim to decrease the likelihood of skateboard and pedestrian injuries and fatalities. Placemaking inspires cities to collectively reimagine a public space into a community asset that promotes health, safety, and active transportation. East End Realty Partners, LP, owners of several properties in the downtown area, have approached the City with a request for placemaking to 20C-1 Downtown Skate Park License Agreement December 4, 2018 Page 2 design and construct a skate park in the alley behind the parking structure on the southwest corner of French St. and Spurgeon St. (Exhibit 1). Adding a skate park to the downtown also creates an amenity for attracting more visitors to the downtown area. These visitors will continue to eat and shop in the downtown which in turn increases revenues to the City. Upon City Council approval of the License Agreement, East End Realty Partners, LP will fund the design and construction of a skate park in the alley behind the city -owned parking structure at 5th and Spurgeon. Currently, the alley is used by service trucks for the adjacent businesses to exit when they enter through Spurgeon drop off goods for the businesses. The construction of the skate park will ultimately eliminate that exit. To accommodate these trucks, additional modifications to remove overhead wires at the structure will need to take place. East End Realty Partners, LP have agreed to contribute $10,000 towards those modifications to the City parking structure. The license agreement has a 5 -year term and the ownership of the property remains with the City. The downtown skate park operations will comply with the Santa Ana Municipal Code section 31-5 under Skate Park Facility Regulations. It is anticipated that the skate park design and construction will be completed within 150 days of the final improvements to the parking structure. The Planning and Building Agency and Public Works Agency have been consulted on this project and will continue to provide guidance during the construction of the skate park. No city funding will be used for this project. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #4 (Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination). FISCAL IMPACT The $10,000 contribution from East End Realty Partners, LP will be deposited into the Parking Operations Miscellaneous Income revenue account (no. 02710002-57990) for expenditure in the Downtown Enhancements, Building Improvement expenditure account (no. 02710133-66200) in FY 2018-19. APPROVED AS TO FUNDS AND ACCOUNTS: Com, iwaa�;Z Steven A. Mendoza Kathryn Do ns, CPA c; -F, Executive Director Executive Director Community Development Agency Finance and Management Services Agency Exhibits: 1. License Agreement 2. Proposed location and moM092 EXHIBIT 1 RIGHT OF ENTRY AND LICENSE AGREEMENT This Right of Entry and License Agreement C Agreement") is made and entered into as of this_day of , 2018, by and between the CI'T'Y OF SANTA ANA, a charter city and municpal corporation of the State of California C City'), and EAST ENI) REALTY PARTNERS, LP, a California limited partnership ("Licence'). RECITALS A. The City is the owner of certain real property in the form of an alley located behind the parking structure on the southwest comer of French and Spurgeon, in the City of Santa Ana (APN #398-326.11), described as set forth in Exhibit A attached herewith and incorporated herein by reference (" Property" ). B. Licensee, owners of several properties in the downtown area, approached the City with a request to enter onto the Property owned by the City to fund the design, construction and maintenance of a new Skate Park in Downtown Santa Ana C'Project"). C. The City wishes to grant Licensee a right of entry and license to design, construct and maintain the Project on the Property on a non-exclusive basis upon certain terms and conditions. NOW, THEREFORE, for good and valuable consideration, City and Licensee do hereby agree as follows: 1. Right of Entry and License. Provided that all of the terms and conditions of this Agreement are fully satisfied, as of the Effective Date of this Agreement the City hereby grants to Licensee and its employees, agents and contractors the nonexclusive, nonassignable, personal right and license to enter upon the Property to design, construct, and maintain the Project, and for no other purposes without the prior written approval of the City. The Project shall include a Skate Park and complementary uses, including, but not limited to, special events, competitions, and trade shows as allowed pursuant to City event permits, as required. Licensee shall operate the Project according to the operational standards attached herewith as Exhibit B and incorporated herein by reference. It is expressly understood that this Agreement does not in any way whatsoever grant or convey any rights of possession, easement or other cognisable property interest in the Property. Upon termination of this Agreement, any improvements constructed by Licensee on the Property shall be the property of the fee title owner of the Property. 2. Term. This Agreement shall commence on the Effective Date and terminate after five (5) years, unless an extension or renewal is granted by City. Notwithstanding the foregoing or any other provision of this Agreement, either City or Licensee may terminate this Agreement with or without cause, or for any reason, at any time, by giving the other party thirty (30) days written notice of termination at the address provided herein. 20C-3 2.1. Surrender of Possession. At the expiration or termination of this Agreement, whether with or without cause, Licensee shall promptly quit and surrender the Property in a good state of repair. 2.2 Waiver of Liability on Termination. Licensee hereby waives all damages or claims for damage that may be caused by any action of City in terminating this Agreement, whether with or without cause, or takingpoasossion of the Property as provided in this Agreement or at law, and Licensee waives all claims for damages to or loss of such property of Licensee as may be in or upon the Property upon the termination of this Agreement. 3. Compensation. The parties hereto agree that the Licensee shall be authorized to use the Property for the purposes set forth herein at no cost. The parties agree that the benefit that will acme to the citizens of Santa Ana through the Project is commensurate with the value of Licensee for the use of the Property. 4. General Provisions. By execution of this Agreement, Licensee agrees for itself and on the behalf of oil Licensee Parties as follows: 4.1. Licensee, together with its employees, agents, representatives, and all persons entering the Property, by, through, or at the direction or invitation of Licensee, are collectively referred to herein as the "Licensee Parties." Licerim shall be responsible for causing the Licensee Parties to comply with the terms of this Agreement. 4.2. All acts and things done by Licensee on the Property will be done in a careful and reasonable manner, in accordance with all federal, state and local laws, ordinances, and regulations, and permits. Specifically, Licensee shall operate the Project in accordance with all skate park facility regulations found in Santa Ana Municipal Code § 31-5. Licensee shall obtain any and all governmental permits, approvals, licenses or other authorizations that may be required in connection with the use of the Property as set forth in this Agreement. No approval or consent given under this Agreement by City shall affect or limit Licensee's obligations hereunder, nor shall any approvals or consents given by City, in its capacity as a party to this Agreement, be deemed to be approval as to compliance or conformance with any applicable governmental codes, laws, orders, rules or regulations. 43. Licensee agrees and acknowledges that nothing herein is intended; nor shall it be interpreted, as to bind the City to issue or grant may permits or entitlements needed to perform the work specified in this Agreement. 4.4. That Licensee will not maintain, commit or permit the maintenance or commission of any dangerous condition or waste or any nuisance (as defined in California Civil Code §3479) to be created on the Property, and Licensee shall not use or permit the use of the Property for any unlawful purpose. 4.5. Licensee shall enter the Property entirely at its own cost, risk and expense. City makes no representation or warranty of any kind as to the condition of the Property or any other matter relating to Licensee's use of the Property. Licensee hereby disclaims and 20C-4 waives any and all objections to the physical and other characteristics and conditions ofthe Property. Licensee acknowledges and agrees that the use of the Property will be on the basis of Licensee's own investigation of the condition of the Property. The license to use the Property shall be granted on an "AS -IS," "WITH ALL FAULTS" basis, without representation or warranty expressed or implied by City, or by operation of law. City expressly disclaims, which Licensee hereby acknowledges and accepts, any implied warranty of condition or fitness for a particular purpose or use. Licensee's use of the Property shall be subject to the Property being in a usable and safe condition at the time of Licensee's use, and Licensee shall be responsible for determining whether the Property is in such condition. In connection therewith, in the event that the Property or access thereto is damaged or obstructed or the use by Licensee is otherwise impaired, prevented or limited, City shall have no obligation or duty to repair the damage or rectify the condition to make the Property usable or safe. 4.6. Licensee shall not permit any mechanics', materialmen's or other liens of any kind or nature ("Liens') to be filed or enforced against the Property in connection with this Agreement. Licensee shall indemnify, defend and hold harmless City from all liability for any and all liens, claims and demands, together with costs of defense and reasonable attorneys' fees, arising from any Liens. City reserves the right, at its sole cost and expense, at any time and from time to time, to post and maintain on the Property, or any portion theroot or on the improvements on the Property, any notices of non responsibility or other notice as may be desirable to protect City against liability. In addition to, and not as a limitation of City's other rights and remedies under this Agreement, should Licensee fail, within ten (10) days of written request from City, either to discharge any Lien or to bond for any Lien, or to defend, indemnify, and hold harmless City from and against any loss, damage, injury, liability or claim arising out of a Lien, then City, at its option, may elect to pay such Lien, or settle or discharge such Lien and any action or judgment related thereto and all costs, expenses and attorneys' fees incurred in doing so shall be paid to City, as applicable, by Licensee upon written demand. 4.7. Licensee shall not have any interest in the Property or be entitled to any reimbursement or repayment for any work performed upon the Property pursuant to this Agreement. 4.8. Licensee shall take all necessary precautions to prevent the import and/or release into the environment ofany "hazardous material, "`hazardous waste" or "hazardous chemicals" as those terms are used in CLRCLA (42 U.S.C. § 9601(14)) or SARA (42 U.S.C. § 110211(e)) or any similar Federal, State, or local law, statute, ordinance, regulation or order, which are imported to, in, on or under the Property during this right of entry. If such hazardous materials are imported onto the Property, Licensee shall be solely responsible for removing such imported hazardous materials in conformance with all governmental requirements. Licensee shall report to City, as soon as possible after each incident, any unusual or potentially important incidents with respect to the environmental condition of the Property. 20C-5 4.9. Licensee shall be solely responsible for obtaining all utility service and for the payment of all utility charges, including but not limited to water and power, supplied to the Property that is necessary for the purpose of carrying out the Project. 4.10. City's Downtown Clean Team shall provide all janitorial services to the Property, subject to inclusion in the yearly Downtown HID Clean and Safe budget, and approval by the City Council, which is not guaranteed by reference in this Agreement. If Downtown Cleats Team cannot provide janitorial services to the Property for any reason, Licensee shall at its own cost and expense provide all janitorial services to the Property. Licensee shall during the term of this Agreement at Licensee's cost and expense keep the Property, and every part thereof, in good order, condition and repair. 4.11. Licensee hereby acknowledges the title of City in and to the Property, including the real property fixtures and improvements existing or erected thereon, and Licensee hereby covenants and promises never to assail, contest or resist City's title to the Property. 4.12. City's Downtown Safe Team shall monitor the Property as part of general Downtown patrol, subject to inclusion in the yearly Downtown BID Clean and Safebudget, and approval by the City Council, which is not guaranteed by reference in this Agreement. Licensee acknowledges that City makes no representation or warranty, express or implied, regarding the security of the Property or the need for or propriety of any security measures at the Property, and Licensee further acknowledges that City shall have no obligation whatsoever to provide guard service or any other security treasures. Licensee expressly assumes all responsibility for the protection and security of the Property, Licensee, Licensee's designees and property within the Skate Park from any and all acts of any third party 4.13. As a condition precedent to the effectiveness of this Agreement, Licensee agrees to comply with the provisions of Education Code § 10911.5, Penal Code § 1105.3 and Public Resources Code § 5164 with respect to the fingerprinting of participants, volunteers, staff, and other invitees of Licensee. 4.14. City or its authorized representatives shall have the right at all reasonable times to enter upon the Property and inspect the general condition of the Property to determine if Licensee is complying with the terms, conditions, requirements and provisions of this Agreement. City shall at all times retain the right to raise issues or concerns with Licensee regarding the fitness of the Property for the intended use, order the Licensee to cease use of the Property, in the City's sole discretion, until Licensee has sufficiently addressed the issues or concerts to the City's satisfaction, or to take such other actions as deemed reasonably necessary to ensure the safety of any persons entering the Property. 5. Legal Relations and Responsibilities. City and Licensee understand and agree that the only relationship between them created by this Agreement is that of Licensor and Licensee, and that this Agreement does not create, and shall not be construed to create, any agency, partnership, joint venture, landlord -tenant or other relationship between City and Licensee. 20C-6 5.1. No Obligation to Third Pardee. Execution and issuance of this Agreement shall not be deemed to confer any rights upon, directly, indirectly or by way of subrogation, not obligate either of the parties hereto to, any person or entity other than City and Licensee. 6. Insurance. Prior to undertaking performance of work under this Agreement, Licensee shall maintain and shall require all contractors performing improvement work at the Property, to obtain and maintain insurance as described below: 6.1. Commercial General Liability Insurance. Licensee shall maintain commercial general liability insurance naming the City of Santa Ana and their officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Licensee's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000.00 per occurrence. Licensee shall supply City with a fully executed additional insured endorsement upon execution of this Agreement and shall be approved in form by the City Legal Counsel, 6.2. Worker's Compensation Insurance as required by California law. 6.3. Comprehensive Automobile Liability Coverage, including as applicable owned, non -owned, and hired autos, in an amount of not less than $1,000,000 per occurrence, combined single limit, written.in an occurrence form. 6.4. Professional Liability (errors and omissions) Insurance, with a combined single limit of not less than $1,000,000 per claim, as applicable. 6.9. The following requirements apply to the insurance to be provided by Licensee pursuant to this section: i. Following completion of the Work and thereafter during operation of the Project, the insurance to be maintained by Licensee pursuant to Section 6.1 shall provide secondary coverage as to City, with City's separately maintained insurance providing primary coverage as to City and as to Licensee Parties as additional named insureds. Licensee shall maintain all msurance required above in full force and effect for the entire period covered by this Agreement. ii. Certificates of insurance shall be furnished to the City and Licensee upon execution of this Agreement and shall be approved in form by Licensee and by the City Legal Counsel. 20Ci-7 iii. Certificates and policies shall state that the polices shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. 6.6. City reserves the right, throughout the Term of this Agreement, to review and change the amount and We of insurance coverage it requires in connection with this Agreement. 6.7. If Licensee fails or refases to produce or maintain the insurance required by this section or fails or refuses to finuish City with required proof that insurance has been procured and is in force and paid for, City shall have the right, at its election, to forthwith terminate this Agreement. 7. Construction of Project. Licensee shall provide all necessary construction, maintenance, reconstruction, installation, restoration, alteration, repair, replacement or removal ("Work") for the Project on the Property. A list of the Work to be completed by Licensee is attached herewith as Exhibit C and incorporated herein by this reference. Prior to commencement of Work, Licensee shall submit work plans and specifications ("Plans") to City for review. Any such Work must be carried out pursuant to Plans approved in writing by City. All construction work performed or caused to be performed by Licensee on the Property shall be performed: (a) at Licensee's sole cost and expense; (b) in accordance with any and all applicable laws, rules and regulations (including State Labor Code Prevailing Wage Laws and Public Contract Code); and, (c) in a manner which: (i) meets or exceeds the then applicable standards of the industry for such Work; and, (ii) is satisfactory to City. Licensee shall contract with a qualified Skate Park designer/builder ("Contractor"). In addition, Licensee shall provide City and all holders of underground utility facilities located within the Property with at least ten (10) calender days' written notice prior to commencement of any Work on the Property, except in cases of emergency, in which event Licensee shall notify City's representative pasonally or by phone prior to commencing any Work. Contractor shall be responsible for security, maintenance, and cleanliness of the Property during Work. City shall at all times retain the right to stop Work, order the Contractor off of the Property, or to take such other actions as deemed reasonably necessary to ensure the safety of workers or equipment. 7.1 City Improvements to Parking Structure. As the Property currently allows service trucks for the adjacent businesses the ability to enter on Spurgeon and exit through the alley, the construction of the Project will eliminate that exit. To accommodate these trucks, additional modifications to widen the entries and remove the overhead wires at the parking structure will need to take place ("City lmprovemcnts`�. Licensee agrees to split the cost of such City Improvements with the City, up to $10,000 towards those modifications to the City parking structure. 7.2. Completion of Work. Licensee agrees to commence the Work provided herein immediately upon the completion ofthe City Improvements to the parking structure and City issuance of any and all required approvals and permits, and to continue in a due and diligent, workmanlike manner, without interruption, and to complete the Project within five (5) months ("Completion Date'). The Completion Date shall be deemed to have occurred when Licensee delivers a certificate to City stating that, to the best of the 0 20Ci-8 Licensee's knowledge based upon the representation of contractors, subcontractors, architects, engineers, vendors or other consultants, the Project has been constructed. The Licensee shall certify to City that the Project is complete and in substantial conformity with the Plans as approved by City, Upon Completion, Licensee shall provide City with a completed ad of as -built drawings. Additionally, unless otherwise requested by City, upon completion of any Work, Licensee shall restore the surrounding Property to its condition immediately preceding the commencement of such Work. 7.3. Ownership of Lnrprovements. Ali improvements constructed or placed on or within the Property by Licensee, including, but not limited to, electrical and other utilities, listed or not, shall, upon the completion of Work, installation or placement within the Property, be free and clear of all liens, claims and liability for payment for labor and material and shall be owned by and considered the property of the City. 8. Maintenance and Repair of Project. Licensee, at Licensee's sole expense, shall maintain, repair and renew the Property, and appurtenances, in a condition satisfactory to City during the Temi of this Agreement and shall perform all maintenance and clean-up of the Property as necessary to keep the Property in good order and condition, subject to City's prior approval and satisfaction, and in accordance with applicable City codes. 8.1. Licensee's Obligation to Maintain Property. City's Downtown Clean Team shall provide all janitorial services to the Property, subject to inclusion in the yearly Downtown BID Clean and Safe budget, and approval by the City Council, which is not guaranteed by reference in this Agreement. If Downtown Clean Team cannot provide janitorial services to the Property for any reason, licensee shall at all time during the tam of this Agreement, at its sole cost and expense, remove all trash and debris from the Property. Licensee shall also keep and maintain in good condition and in substantial repair (all to the satisfaction of City, in,its sole discretion), the Property and all appurtenances and every part thereof, including raised planters and improvements of any kind erected, installed or made on or within the Property. Ucensee shall at all times in the maintenance and use of the Property and the raised planters, buildings, structures, facilities, improvements and equipment thereon (if any), comply with all laws, ordinances and regulations pertaining thereto, and all conditions and restrictions setforthherein. Licensee expressly agrees to maintain the Property W a safe, clean, wholesome, and sanitary condition and free of trash and debris, to the complete satisfaction of City and in compliance with all applicable laws. 8.2. Vandalism. Licence shall repair all vandalism dauucge to the Property within five (S) days of occurrence of said damage. Licensee shall also remove any graffiti within the Property within twenty-four (24) hours of either observing the graffiti or of being notified by City to remove it, whichever occurs fast. 83. Licensee's Default. In the event that licensee fails, neglects or refuses to remove trash or debris deposited by Licensee or Lcensee's invitees on the Property or to maintain or make repairs or replacements as required by this Agreement, City shall notify Licensee in writing ofsuch failure orrefinal, in the event City determines in its sole discretion that such repairs or replacements are necessary for the health and safety of persons on the Property, any and all use of the Property shall cease until such repairs or replacements are 7 20C-9 completed to the satisfaction of City. Should Licensee fail or refuse to correct such default within ten (10) days of receipt of such written notice from City, City may, but shall not be required to, itself or by contact, undertake the necessary maintenance, repair or replacements; and the cost thereof; including but not limited to the cost of labor, materials and equipment and procurement of insurance, plus an administrative fee in the amount of fifteen percent (15%) of the sum of such costa, shall be paid by Licensee to City within. ten (10) days of Licensee's receipt of a statement of such costs fire m City. Any such maintenance, repair or replacement by or on behalf of City shall not be doomed to be a waiver of Licensee's default under this Agneemout, and shall not in any way impair, prevent or restrict Qtyfrom exercising any of its rights or remedies set forth in ibis Agreement or otherwise provided at law. 9. Indemnification, Defense, Hold Harmless. 9.1. Public Venue. At any time the Property is open for use by the general public, each Party shall have no obligation to indemnify the other for claims, actions, demands, suits, losses, liabilities, judgments, expenses or costs (including attorneys fees) made by third parties arising out of or related to the operation of the Property or related services for this Agreement. Each Party hereby expressly disclaims any such indemnification obligation. 9.2. Private Events. At any time the Property is being used for Licensee's private evcnt, Licensee agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Licensee, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the use of the Property described in this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or off" arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms ot, or effects, arising from this Agreement. 9.3 Validity of Agreement. Licensee firther agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agrcement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terns of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. 10. Miscellaneous. 10.1. Entire Agreement, Walver and Amendments. This Agreement incorporates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to the 20C-10 subject matter of this Agreement. All waivers ofthe provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to be charged. Any amendment or modification to this Agreement must be in writing and executed by the appropriate authorities of the City and Uccauussce. 10.2. Severability. Ifany temi, provision, covenant, or condition ofthis Agreement is heldbya court of competent jurisdiction to be invalid, void, or unenforceable, theremaining provisions of the Agreement shall continue in full force and effect, unless and to the extent the rights and obligations of one or both parties has been materially altered or abridged by such holding. 10.3. No Assigmttant. Licensee shall not assign or transfer or otherwise convey any interest in this Agreement to any party without the express prior written consent of City, which consent maybe withheld in City's sole and absolute discretion. 10A. Choice of Law. This Agreement is to be governed by, and construed in accordance with, the laws of the State of California. Venue shall be in the County of Orange. 105. Remedies. Either party shall, in addition to all other rights provided herein or as may be provided by law, be entitled to the remedies of specific performance and injunction to onf trce its rights bereunder, except to the extent expressly provided to the contrary in this Agreement. All rights and remedies under this Agrecmcnt are cumulative and no one of them shall be exclusive of any other, and each party shall have the right to pursue any one or 0 of such rights and remedies or any other remedy which may be provided bylaw, whether or not stated in this Agreement, except to the extent aTressly provided to the contrary in this Agreement. 10.6. Disputes. In the event that any action is commenced by a party to this Agreement against the other to enforce its rights or obligations arising from this Agreement or seeking to interpret this Agreement, the prevailing party in such action, in addition to any other relief and recovery ordered by the court, shall be entitled to recover all statutory costs, plus reasonable attorneys' fees. 10.7. Counterparts. This Agreement may be executed in two (2) or mora counterparts, each of which shall be deemed an original, but all of winch together shall constitute one and the some instrument. 10.8. Nom -Liability of Public 0liicials. No officer, employee, member, agent or representative of the City shall be personally liable to Licansee, or any successor in interest, in the event of any default or breach by the City, or for any amount which may become due to Licensee or its successor, or for anybreach of any obligation ofthe teras ofthis Agreement. 10.9. Effective Date. This Agreement shall become effective on the date of City's execution of this Agreement. 10.10. Notices. Anynotices, requests, or approvals given under this Agreement from one party to another shall be in writing and shall be personallydelivered or deposited with the United States Postal Service for mailing, postage prepaid, by certified mail, return receipt 20C-11 requested, to the addresses of the other party as stated in this section, and shall be deemed to have been received at the time of personal delivery or three (3) days after the deposit for mailing. Notices shall be sent to: If to Licensce; Ryan Chase President Fast End Realty Partner, LP 129 West Wilson Street, Suite 100 Costa Mesa, CA 92627 If to Licensor. Clerk of City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702.1988 10.11. Headings. The titles and headings of sections and paragraphs of this Agreement, as herein set forth, have been inserted for the sake of convenience only, and are not to betaken, deemed or construed to be any part ofthetam, covenants or conditions of this Agreement, or to control, limit or modify any of the terms, covenants or conditions hereof 10.12. Time of Essence. Time is of the essence of this Agreement. Failure to comply with any requirement, including, but not limited to, any time requirement, of this Agreement shall Constitute a material breach of this Agreement. 10.13. Construction. This ?agreement shall be construed, interpreted, governed and enforced in all respects as if dratted by both City and licensee. 10.14. Further Assurances. Each of the parties hereto shall execute and deliver any and all additional papers, documents and other assurances and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent of the parties hereto. 10.15. Authority. The persons executing this Agreement on behalf of the parties hereto represent and warrant to the other party that they are duly authorized to execute and deliverthis Agreement onbehalf ofsuchparty, and by so exeeutingthisAgreement said party is formallybound to the provisions of this Agreement. {Signatures on follo)Wngpage) IE 20C-12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: CITY OF SANTA ANA Raul Godinez II City Manager Sonia R. alho 77i cty � � EAST END REALTY PARTNERS, LP B Ryan dAdie Assistant rty Att y Ryan Chase, President of East End Realty Partners GP, General Partner RECOMMENDED FOR APPROVAL: Steven A. Mendoza Executive Director Community Development Agency 11 20C-13 ,ea;r 12 20C-14 SKATE PARK QnBAT— ONS • Proposed Hours: (10am— lOpm), other than for special events. Hours canbe adjusted upon mutual agreement of the parties. Park Closure: East End Realty Partners LP to close Skate Park for special events and private parties, subject to obtaining any required permits from the City. East End Realty Partners -LP will pay for all-out of pocket expenses for cleanup of alley after any City sponsored events only. + City shall also be permitted access to Skate Park for private events in coordination with East End Realty Partners LP events. City will pay for all out of pocket expenses for cleanup of alley after any City sponsored events only. • Sponsorships — City approval of sponsorships required prior to East End Realty Partners LP events. No adult usetunder 18 materials (drugs, liquor, political organizations, etc.) shall be permitted. • Upon review and approval by the City, and East End Realty Partners LP obtaining all necessary building and safety permits, East End Realty Partners LP to hang and place signage above the Skate Park from East End Realty Partners LP property (305 East Fourth Street) to City parking structure at East End Realty Partners LP's sole cost and expense. • Standard safety and liability signage mutually agreed upon by the parties shall be posted throughout the Skate Park. • Must comply with Santa Ana Municipal Code § 31-5 — Skate park facility regulations. 13 20C-15 LICENSEE PROPERTY IMPROVEMENTS hnprovements by East End Realty Partners LP (subject to City review and approval prior to installation or completion of work): • Lighting on Best End Realty Partners LP owned buildings; • East End Realty Partners LP to paint murals on City structure. City must review and approve content prior to installation, and can remove if contract terminates; • At its election, But Bad Realty Partners LP may demolish City Planters/landscaping off both sides of Spurgeon Street adjacent to its 219 East Fourth Street and 305 East Fourth Strut holdings, provided it replaces said plantera/landscaping with high quality new planter, landscaping, or patio, or for building exiting, subject to meeting safety codes and allowing for pedestrian flow on sidewalk meeting public works minimum requirements; • At its election, East End Realty Partners LP may relocate City bike but to another mutually agreed upon location at East End Realty Partners LP cost; • At its election, East End Realty Partners LP may remove, replace or relocate its flagpole near Fourth/Spurgeon to another location at East End Realty Partners LP; and, East End Realty Partners LP will relocate dumpsters servicing 219 and 305 East Fourth Street from alley to mutually agreed upon and specified location in adjacent Plaza next to 305 Bast Fourth Street. East End Realty Partners LP will be responsible for constructing an enclosure around the dumpsters that will blend into the aesthetics of the Plaza. Final layout and construction plans must be approved by the City. 14 20C-16 z Lo N W O J Q H U Q H O z Q z R LU O z W Y v O w J a Q 20C-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROVE APPROPRIATION ADJUSTMENT AND PURCHASE AND SALE AGREEMENT FOR PORTIONS OF CITY -OWNED REAL PROPERTY AT 1301 AND 1305 WEST 12TH STREET FOR BRISTOL STREET IMPROVEMENTS PROJECT PHASE 3A (PROJECT NO. 136792 NONGENERAL FUND) (STRATEGIC PLAN NOS. 6, 1G; 3,2C) CI MANAGER CLERK OF COUNCIL USE ONLY: UIT00-00675IT11 ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a purchase and sale agreement with Marshall -Kelley LLC, a California corporation, for the sale of City -owned property located at 1301 and 1305 West 12th Street in the amount of $233,400, subject to nonsubstantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing revenue in the amount of $159,879 in the Select Street Construction Fund revenue account for fiscal year 2018-19 from the sale of City - owned property located at 1301 and 1305 West 12th Street and appropriating the same to the OCTA Bristol Street Corridor Improvements expenditure account. Receipt of Measure M Street Construction proceeds in the amount of $73,521 will be disbursed to the Orange County Transportation Authority (OCTA). BACKGROUND The subject properties at 1301 and 1305 West 12th Street (APN 004-113-34 and APN 004-113- 19, respectively) were acquired as part of Bristol Street Improvements Project, Phase 3A from Civic Center to Washington. The Bristol Improvements include constructing a cul-de-sac located on Bristol and 12th Street. Those improvements will result in the subject remnant parcels being too small and irregularly shaped to independently develop (Exhibit 1). Moreover, the subject parcels, zoned Commercial, are considered "landlocked" due to their small size for its zoning (7,780 square feet) and no independent utility access. Immediately to the north of the two subject properties, the City obtained a partial acquisition from a portion of the parking lot at 1220 North Bristol Street. The property owners of 1220 North 20D-1 Purchase and Sale Agreement of Portions of City -owned Real Property at 1301 and 1305 W. 12th Street December 4, 2018 Page 2 Bristol, hereby referred to as "Marshall -Kelley," approached the City and are interested in acquiring the subject "landlocked" properties, in order to regain the parking spaces lost and upgrade their overall site. DISCUSSION During the course of the Bristol Street Improvements, the Public Works Agency has acquired numerous properties along the corridor. The subject properties were acquired as part of Bristol Street Improvements Phase 3A. The purchase prices of the two properties acquired by the City were based on appraised values prepared by a state licensed appraiser. The portions of these properties that will remain after the Bristol Street Improvements are completed, and which will not be used by the project, are being held for purposes of exchange or sale. Marshall -Kelley has agreed to acquire the subject properties for the appraised amount of $233,400 (Exhibit 2). Sale of City Owned Parcels- Legal Authority Under the Santa Ana Municipal Code (SAMC) Section 2-706, surplus real property may be sold after Council approval to the highest bidder, subject to final confirmation by the Council and with notice of the sale provided by newspaper publication. SAMC section 2-709, however, provides an exemption to this procedure and permits a sale on direct negotiation without the need for public auction or competitive bidding, upon 2/3 vote of the City Council after a duly noticed public hearing. The sale of these properties will return them to the property tax rolls as part of the larger commercial property. The subject parcels have a total combined area of approximately 7,780 square feet and would otherwise present a challenge to the City to market and sell to parties other than the adjacent property owner. For these reasons, City Council adopted a resolution on October 16, 2018 to allow direct negotiations with Marshall -Kelley. Staff recommends approval of the Purchase and Sale Agreement. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). 20D-2 Purchase and Sale Agreement of Portions of City -owned Real Property at 1301 and 1305 W. 12th Street December 4, 2018 Page 3 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The proceeds of $233,400 from this sale of land are restricted and will be used to reimburse monies to the granting agency, per agreed upon terms, and to fund improvements within the Bristol Corridor Project. Approval of the recommended Appropriation Adjustment will recognize the receipt of $159,879 into the Select Street Construction Fund revenue account (No. 05917002-57071) and appropriate the same into the OCTA Bristol Street Corridor Improvements Fund expenditure account (No. 05917661-66100). These funds will be available for expenditure on the Bristol Street Improvement Project. The remaining proceeds of $73,521 will be received in the Measure M Street Construction Fund (Account No. 03201001-20215) for disbursement to OCTA. /1 9 Fuad S. Speiss, PE, PLS Executive Pi rector Public Wo ks Agency FM/EWG/JG/ST Exhibits: 1. Location Map 2. Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Kath ryn Do s, CPA Executive Director Finance and Management Services Agency 20D-3 20D-4 Q ( NTS) WASH NOMN AVENUE SUMCI PROPERTIES �N CRAp�g )( KBIT 1 v SANT PURCHASE AND SALE AGREEMENT FOR �PORTIONS OF CITY -OWNED REAL PROPERTY P PWA AT 1301 AND 1305 WEST 12TH STREET (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6,1G� 3, 2C) PAGE 1 OF 1 20D-5 4110M AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBERS: 004-113-19 and 004-113-34 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2018, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and Marshall -Kelley, LLC, a California limited liability company ("Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos, (APN) 004-113-19, and 004-113-34, located at 1301 and 1305 West Twelfth Street, in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibits "A-1" and "A-2", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property, B. A copy of the Grant Deeds for APN Nos. 004-113-19, and 004-113-34, filed with the County of Orange as Document Nos. 2016000282070 and 2017000086484, are attached hereto as Exhibit "B-1" and "B-2" and incorporated herein by this reference. C. The subject Property was acquired by Seller in 2016 and 2017 as part of the Bristol Street Improvement Project. These parcels are vacant and are not needed for public use or improvements. D. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. AGREEMENT The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder'), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between 5207.01 -PSA -1112188 r such instructions and this Agreement, this Agreement shall control unless the parties expressly agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 2.1 Purchase Price The total purchase price for the Property shall be the sum of Two Hundred Thirty Three Thousand Four Hundred Dollars ($233,400.00) ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit of Ten Thousand Dollars ($10,000.00) ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Closing Payment. The Purchase Price, as adjusted by the application of the Escrow Deposit and by the proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(b) being herein called the "Closing Payment"). (c) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") within thirty (30) days following the expiration of the Due Diligence Period or as soon as possible thereafter. 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an CLTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine a CLTA title commitment (the "Title Commitment") binding the Title Company to issue the Title Policy to Buyer. 2.4 Escrow and Closing Costs 5207.01 -PSA -111218R 20D-8 Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer; and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buver's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have fifteen (15) calendar days from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within five (5) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents, encumbrances, service contracts, leases, rental agreements, and any other agreements, documents, or 3 5207.01 -PSA -1 I 1MR 20D-9 information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. (f) Seller agrees at Seller's sole cost to remove and relocate the power pole located on the Property, as depicted as "Existing SCE Power Pole" on the "Power Pole Exhibit" attached as Exhibit "C" hereto (the "Power Pole"), to the location designated as "approximate location of pole, 2' from property line" on Exhibit "C" hereto, promptly after Close of Escrow. Such obligation shall survive the Close of Escrow. The parties each acknowledge and agree that the Power Pole Exhibit indicates that the Power Pole will be relocated to an area on or adjacent to a planned trash enclosure which is located in the area depicted with diagonal lines on the Power Pole Exhibit, and that as a result thereof such trash enclosure area shall be required to be relocated to another location on the Property which shall designated by Buyer and approved by Seller prior to Close of Escrow, which approval shall not be unreasonably withheld, conditioned or delayed. The parties shall cooperate in good faith in finalizing the relocation of such trash enclosure area. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement, 2.8 License to Enter Property During Due Diligence Period Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property 5207.01 -PSA -111215R 20D-10 required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent, Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) To Seller's actual knowledge, no litigation and no governmental, administrative or regulatory act or proceeding regarding the 5207.01 -PSA -111218R 20D-11 environmental, health and safety aspects of the Property is pending, proposed or threatened; and (c) Seller will not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (d) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (e) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Buyer hereby represents and guarantees that it will complete construction and development of the Property for a parking lot at 1220 N Bristol Street substantially in accordance with the development plan approved by Seller's Planning Division Seller under Master I.D. 2018-142774, attached hereto as Exhibit "D" (the "Development") within six (6) months following the later of (a) the Closing Date, or (b) the relocation of the Power Pole per Section 2.6(f), or (c) issuance of the building permit by the City's Planning Department for the Development (the "Development Period"). The Development Period shall be toiled by any delays directly attributable to the actions or inactions of the Seller, by any natural causes outside the control of either party ("Force Majeure"), or by mutual agreement of the parties. Seller shall cooperate in good faith with Buyer in facilitating the completion of the Development, including without limitation promptly issuing any and all required City inspections, permits and approvals requested by Buyer in connection therewith. If Buyer does not complete the Development prior to the expiration of the Development Period, as the same may be extended in accordance herewith, the Seller shall have the option to repurchase the Property from Buyer by delivering written notice to Buyer of its election to repurchase the property (the "Repurchase Notice") within thirty (30) days after the expiration of the Development Period, time being of the essence. In the event Seller timely delivers such Repurchase Notice, title to the Property shall be transferred back to the Seller by grant deed on or before the date which is thirty (30) days after Buyer's receipt of such Repurchase Notice, including any and all improvements to the Property completed by Buyer, subject to and in exchange for payment by the Seller to Buyer of eighty percent (80%) of the Purchase Price, to be paid on or before the date of such transfer. Notwithstanding the foregoing, Buyer shall have the right to nullify such right to repurchase by completing the Development within thirty (30) days after receipt of 5207.01 -PSA -111218R 20D-12 Seller's written notice of exercising its repurchase option. The rights and obligations of Buyer and Seller set forth in this Section shall survive the Close of Escrow. (b) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (c) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. ACKNQWLEDGEMENT OF FULL BENEFITS By execution of this Agreement, Seiler hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for damages, interest, loss of goodwill, severance damages, or any other compensation or benefits other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property. REMEDIES If Seller defaults under this Agreement, then Buyer may, without prejudice to any otherwise available remedies at law or in equity or as set forth in this Agreement, either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Molder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Seller's Initials Buyer's Initials 5207.01 -PSA -111218R 20D-13 6. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that, subject to Seller's representations, warranties, covenants and obligations set forth in this Agreement, including without limitation the relocation of the Power Pole, Buyer is purchasing the Property on an "AS- IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 8. MISCELLANEOUS 8.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Fuad S. Sweiss, PE, PLS Executive Director, PWA Facsimile: (714) 647-5662 E-mail: FSweiss@santa-ana.org Buyer: Marshall -Kelley, LLC Linda Kelley and Richard Marshall 219 S. Hart Place 5207.0h -PBA -111218R 20D-14 Fullerton, California 92831 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 8.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 8.3 Assignment Neither this Agreement, nor any interest herein, nor any post -closing obligations of either party, shall be assignable by any party without prior written consent of the other, non -assigning party hereto, except as otherwise expressly set forth herein, For Seller, the Executive Director of Public Works Agency shall have the authority to review and approve or deny any request for assignment. Notwithstanding the foregoing, Buyer shall have the right to assign this Agreement including any rights or obligations set forth herein to (a) an entity that is wholly owned or controlled by Buyer, Linda Kelly, and/or Richard Marshall, provided Buyer shall give Seller at least five (5) days prior written notice of such assignment to Seller, and Buyer shall not be released from its obligations as a result of such assignment, and/or (b) to a subsequent purchaser of the Property after Close of Escrow, provided such purchaser assumes any outstanding post closing obligations of Buyer in a signed writing delivered to Seller. 8.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 8.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 5207.01-PSAA MI SR 20D-15 8.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 8.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 8.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement, subject to the reasonable approvals of the party or parties executing the same. 8.9 No Merger All warranties, representations, acknowledgements, releases, covenants and obligations contained in this Agreement shall survive delivery and recordation of the grant deed. 8.10 Authoritv to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 8.11 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 620201 -PSA -111218R 20D-16 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBERS: 004-113.19 and 004-113.34 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Raul Godinez II City Manager ATTEST: By: Maria Huizar Clerk of the Council APPROVED AS TO FORM: By: On M. Funk Assistant City Attorney BUYER: Marshall -Kelley, LLC a California Limited Liability Company BY �I Ir,g�- "ZZ -"—V d") kt 11 8207.01 -PSA -111218R 20D-17 EXHIBITS "A-1 & A-2" LEGAL DESCRIPTION OF THE PROPERTY 11 20D-18 EXHIBIT `A-1' LEGAL DESCRIPTION FOR RIGHT OF WAY PURPOSES — AP No. 004-113-19 IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, BEING A PORTION OF LOT 14 OF TRACT NO. 1256, PER MAP RECORDED IN BOOK 41, PAGE 48 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, LYING NORTHWESTERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE INTERSECTION OF TWELFTH STREET AND BRISTOL STREET AS SHOWN ON SAID MAP; THENCE, ALONG SAID CENTERLINE OF TWELFTH STREET, NORTH 89°31'48" WEST, 169.05 FEET; THENCE, PERPENDICULAR TO SAID CENTERLINE, NORTH 00028'12" EAST, 30.00 FEET, TO A POINT ON THE NORTH RIGHT OF WAY LINE OF SAID TWELFTH STREET, SAID POINT ALSO BEING ON A NON -TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 95.10 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 21014'42" EAST, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING; THENCE, NORTHEASTERLY ALONG SAID NON -TANGENT CURVE 38.68 FEET THROUGH A CENTRAL ANGLE OF 23°18'09" TO A POINT OF REVERSE CURVATURE WITH A CURVE, CONCAVE TO THE SOUTHEAST AND HAVING A RADIUS OF 43.00 FEET; THENCE, NORTHEASTERLY AND EASTERLY ALONG SAID REVERSE CURVE 34.78 FEET THROUGH A CENTRAL ANGLE OF 46020'55" TO THE EAST LINE OF SAID LOT 14; CONTAINING AN AREA OF 4871 SQUARE FEET, MORE OR LESS. ALL AS SHOWN ON EXHIBIT `B', ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF, SUBJECT TO COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, EASEMENTS OF RECORD, AND RIGHTS OF WAY, IF ANY. TI -IIS DESCRIPTION HAS BEEN PREPARED BY ME ON SEPTEMBER 12T' 2016 ANTHONY C. CUOMO, PLS 6042 20D-19 ��¢�g1ANpou �G v M#tinny Cuomo No42 OF EXHIBIT `A-2' LEGAL DESCRIPTION FOR RIGHT OF WAY PURPOSES — AP No. 004-113-34 IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, BEING A PORTION OF LOT 15 OF TRACT NO. 1256, PER MAP RECORDED IN BOOK 41, PAGE 48 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, LYING NORTHERLY AND WESTERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE INTERSECTION OF TWELFTH STREET AND BRISTOL STREET AS SHOWN ON SAID MAP; THENCE, ALONG SAID CENTERLINE OF TWELFTH STREET, NORTH 89031'48" WEST, 169.05 FEET; THENCE, PERPENDICULAR TO SAID CENTERLINE, NORTI--I 00028'12" EAST, 30.00 FEET, TO A POINT ON THE NORTH RIGHT OF WAY LINE OF SAID TWELFTH STREET, SAID POINT ALSO BEING ON A NON -TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 95.10 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 21014'42" EAST; THENCE, NORTHEASTERLY ALONG SAID NON -TANGENT CURVE 38,68 FEET THROUGH A CENTRAL ANGLE OF 23018'09" TO A POINT OF REVERSE CURVATURE WITH A CURVE, CONCAVE TO THE SOUTHEAST AND HAVING A RADIUS OF 43.00 FEET; THENCE, NORTHEASTERLY AND EASTERLY ALONG SAID REVERSE CURVE 34.78 FEET THROUGH A CENTRAL ANGLE OF 46°20'55" TO A POINT ON THE WEST LINE OF SAID LOT 15, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE, CONTINUING EASTERLY AND SOUTHEASTERLY ALONG LAST SAID CURVE 38.95 FEET THROUGH A CENTRAL ANGLE OF 51°54'21" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 5.00 FEET, THE NORTHEASTERLY TERMINUS OF SAID CURVE BEING A POINT OF TANGENCY WITH A LINE, SAID LINE BEING PARALLEL WITH AND 64.00 FEET WEST OF SAID CENTERLINE OF BRISTOL STREET; THENCE, SOUTHERLY, EASTERLY, AND NORT1 FERLY ALONG LAST SAID CURVE 12.42 FEET THROUGH A CENTRAL ANGLE OF 142'16'12" TO SAID POINT OF TANGENCY WITH SAID PARALLEL LINE; THENCE, NORTH 1°31'41" EAST ALONG SAID PARALLEL LINE 74.43 FEET TO THE NORTH LINE OF SAID LOT 15; CONTAINING AN AREA OF 2909 SQUARE FEET, MORE OR LESS. 20D-20 ALL AS SHOWN ON EXHIBIT `B', ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. SUBJECT TO COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, EASEMENTS OF RECORD, AND RIGHTS OF WAY, IF ANY. THIS DESCRIPTION HAS BEEN PREPARED BY ME ON SEPTEMBER 12TH, 2016 S ANTHONY C. CUOMO, PLS 6042 c`v/' kd mnyCuomo j Na. 42 ) OF CNL,TS5;// 20D-21 0 0 20D-22 30' m N0028'12"E NS = 30,00' N013141"E 93,69' 4" too mZ �3vlC 0 7 1 0 r 0 yq�z A Z>Y o Oct R. G �.. N A y v�mZ (A o r �� � ma SIO ✓ � V RCP N O�w vo -Ti w w p g N OO J ` N0131'41"E 93.69' g®� 0 33.68' 60.01' ® F' o z w n 'lOT vo O hoz � N013141E 74,43' �(-----"—" TOW v 2 0—I N a O � q e N013141 "E 78.96' o I` r Ro I I0+1 I O I A_ n k BRISTOL ST �Zu I i I N0l31'41"E r n� 0 o® r o An o Q Q Oy Z mOm �� Z �,$ Y OFF. AiyrSSo N ra o A A��� n a A � * 2 � 'S /ate, Q y �- cn cn W a i'.v cn M:E 0 r $ O O� p~p Q O im t` N01= Z m �P OC W N W m D� �I D 20D-22 EXHIBIT "B-1 & B- 2" [attached behind this page] 12 20D-23 EXIfilalr eI i3't 1 Kecorueu in uncial Kecorus, arrange t;ounry 4t1111tWrIvI t#t Q f 'Company Hugh Nguyen, Clerk -Recorder I When recorded, please mail this dill l l Milli 111 hill hill hill illll lllll11] 11111111111111 llll l I ElNO FEE instrument and tax statements to: $ R o 0 o s a e s 0 1 9 $ 2016000282070 4:06 pm 06121116 Clerk of the Council 63 4.06 G02 F13 A04 7 City of Santa Ana 0,00 0.00 0.00 0.00 18.00 0.00 0.00 0.00 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by THE CfrYOF SANTAANAPER ., GOVERNMEM CODE SECTI N6I SPACE ABOVE THIS LINE FOR RECORDER'S USE CANCEL TAXER I APPROVED AS TO MRMBYA'lTY. APPROVEDBY DIRECTOR I DESCRIPTION W rKENBY DESCR@ ION CEECKED-O,K. A.P. NIJMRER 004-113-19 RAN MAP NUMBER PROJECT NUMBER X 1305W12th 3V0gt, Santa Me, CA 92703 DEEDh ER ?006:5) *7 GRANTDEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Jose Sergio Bravo, a married man, as his sole and separate property, Marco Antonio Bravo, a single man, Martin Slivestre Bravo, a single man, all as joint tenants Do Hereby Grant to the CITY OF SANTA ANA, a charter City and municipal corporation duly organized under the Constitution and laws of the State of California, for public roadway purposes, all that real property in the City of Santa Ana, Orange County, State of California, located at 1305 W. 12th Street, Santa Ana, CA 92703 ,described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF• t hf5 comvttjt~t'ica Y�(f38�&YS (1?�1�tf f�Yl PJa4e171�; �(W�tmY1tYlPtt�O+� Dated : 3 17�P � Dated : 3 //3 /! a Dated : 3// / 3 ` 1 b By: 1&4cw Q471s'n 0 Marco Antonio Bravo 20D-24 Martin Siivestre Bravo Commonwealth Land Title Company When recorded, please malt this instrument and tax statements to: Clerk of the Council City of Santa Ann 20 C'% of Center Plaza, M-30 Santa Ana, California 92701 A.2D164 67 -Kecora" mvrncuu Mecorus,-Qran-ge courny — — Hugh Nguyen,Clerk-Recorder 11111111111111111111111111111II 1� 111111111111111111111111111$1111111111 NO FEE $ R 0 0 0 9 0 9 8 7 7 8$ +* 2017000086484 1:08 pm 03101117 217 406 1302 A04 6 0.00 0.00 0.00 0.00 15.00 0.00 0.00 0.00 Free recording requested by THE WY OF SANTA ANABER ' SPACE ABOVE TEES LINE FOR RECORDER'S USE GOVERNMENT CODE SECTION 6103. CANCEL APPROV A$TO APPROYEOHY D86CRnh10N bESCRR'TiON AP. RIW MAP PA07HCT TARS POnMHYATTY. DMHWOR WRTCTENHY CHHCRGb-0.IG 004113.34 NUMDHR NOMEER X ]yJ 1301 West 1201 Sheet, Santa Ana, CA 42703 AHe5 0 161(051 L FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Jose M. Marquez and Cecilia M, Marquez, husband and wife as joint tenants Do Hereby Grant to the CITY OF SANTA ANA, a charter City and municipal corporation duly organized under the Constitution and laws of the State of California, for public roadway purposes, all that real property in the City of Santa Ana, Orange County, State of California, located at 1301 West 12th Street, Santa Ana, CA 92703, described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF; Dated : (� -- I LA — Dated: By: a7 Q Jcfie M. Marquez 20D-25 Cecilia M. Marquez [EXHIBIT "C" Power Pole Location ] 20D-26 `l,enc` �-- --�--- -- --�- � \ | i � / ) [ADD EXHIBIT D DEVELOPMENT PLAN Master ID 2018-1427741 20D-28 Ep, N— fiag ER INS OR OR HO 019 giri j 1 1 1 �"j� 5 t 13 WEI m [a L -U in z Lu CL CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROVE APPROPRIATION ADJUSTMENT AND AGREEMENT WITH OFFICE OF TRAFFIC SAFETY FOR PEDESTRIAN AND BICYCLE SAFETY PROGRAM (STRATEGIC PLAN NO. 1, 3B) CITV MANAGER Approve an appropriation adjustment to Pedestrian and Bicycle Safety grant funds Traffic Safety Grants revenue account and Safety PWA expenditure accounts. ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER recognize Office of Traffic Safety (OTS) in the amount of $50,000 in the OTS -PWA appropriate the same to the OTS -Bicycle 2. Authorize the City Manager and Clerk of the Council to execute a one-year agreement with the State of California Office of Traffic Safety for Pedestrian and Bicycle Safety Program funds, in an amount not to exceed $50,000 for a one-year period from October 1, 2018 through September 30, 2019, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The Santa Ana Public Works Agency has been awarded a $50,000 Pedestrian and Bicycle Safety Program grant from the State of California Office of Traffic Safety (OTS). These funds will be used to address pedestrian and bicycle safety through a series of bicycle safety education workshops and events. The goal of the program is to reduce the number of deaths and injuries in traffic collisions involving bicycles and pedestrians. The bilingual education program is intended to reach all members of the community. The program will include family friendly bicycle safety skills classes taught by League of American Bicyclists Certified Instructors; night time light, helmet, and safety equipment distribution events aimed at pedestrians and bicyclists; and youth pedestrian and bicycle traffic safety fairs at community events. 20E-1 Office of Traffic Safety Grant Application December 4, 2018 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows supports the City's effort to meet Goal #1 for Community Safety; Objective #3 (promote fiscal accountability to ensure financial responsibility at all levels of the organization); Strategy B (promote ongoing efforts to obtain grant funding for activities that will assist in preventing and reducing criminal activity and traffic collisions). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Grant funds will be accepted into OTS -PWA Traffic Safety Grants revenue fund (Account No. 16517002-52001) and appropriated into the OTS -Bicycle Safety PWA expenditure fund (Account No. 16517611-66220, Project No. 19-6952) for expenditure as follows: FISCAL YEAR ESTIMATED EXPENDITURE 1 • �,�/ 111 1 • 1 ', 1 111 APPROVED AS TO FUNDS AND ACCOUNTS: Fuad S. SJ PE, PLS Kathryn Do ns, CPA Executive irector Executive Director %- cGvs7 Public Wo s Agency Finance and Management Services Agency CW Exhibit: 1. Agreement with the State of California Office of Traffic Safety 20E-2 State of California — Office of Traffic Safety GRANT AGREEMENT GRANT NUMBER PS19031 1. GRANT TITLE Pedestrian and Bicycle Safety Program 2. NAME OF AGENCY 3. Grant Period Santa Ana From: 10/01/2018 4. AGENCY UNIT TO ADMINISTER GRANT Santa Ana Public Works Agency To: 09/30/2019 5. GRANT DESCRIPTION Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving pedestrians and bicyclists. The funded strategies may include classroom education, bicycle rodeos, community events, presentations, and workshops. These countermeasures should be conducted in communities with high numbers of pedestrian and/or bicycle related collisions including underserved communities, older adults, and school -aged children. Coordinated efforts such as Safe Routes to School' initiatives, Vision Zero campaigns, and working with community based organizations are highly encouraged to prevent fatalities and injuries of vulnerable non -motorized road users. 6. Federal Funds Allocated Under This Agreement Sball Not Exceed: $50,000.00 7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement: • Schedule A— Problem Statement, Goals and Objectives and Method of Procedure • Schedule B — Detailed Budget Estimate and Sub -Budget Estimate (if applicable) • Schedule B -I — Budget Narrative and Sub -Budget Narrative (if applicable) • Exhibit A — Certifications and Assurances • Exhibit B* — OTS Grant Program Manual *Items shown with an asterisk (*), are hereby incorporated by reference and made a par of this agreement as if attached hereto. These documents can be viewed at the OTS home web page under Grants: www.ots.ca.sov. We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the above described Grant terms and conditions. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. 8. Approval Signatures A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL OF AGENCY NAME: Zdenek Kekula PHONE: (714) 647-5606 - NAME: Raul Godinez II PHONE: (714) 647-5200 TITLE: Senior Civil Engineer FAX: (7l4) 647-5616 TITLE: City Manager FAX; ADDRESS: 20 Civic Center Plaza ADDRESS: 20 Civic Center Plaza Santa Ana, CA 92702 Santa Ana, CA 92702 EMAIL: zkekula@santa-ana.org EMAIL: rgodinez@smta-ma.org (Signature) (Date) (Signature) (Date) C. FISCAL OR ACCOUNTING OFFICAL D. AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETY NAME: Kathryn Downs PHONE: (714) 647-5420 NAME: Rhonda L. Craft PHONE: (916) 509-3030 TITLE: Executive Director of FAX: (714) 647-6956 Finance & Management TITLE: Director FAX: (916) 509-3055 Services ADDRESS: 20 Civic Center Plaza M-17 ADDRESS: 2208 Kausen Drive, Suite 300 Santa Ana, CA 92702 Elk Grove, CA 95758 EMAIL: kdowns@santa-ana.org EMAIL: dionda.craft@ots.ca.gov Si nature (Date) (Si nature) (Date) E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY 9, DUNS INFORMATION NAME: Carolyn Vu DUNS #: 083153247 ADDRESS: 2208 Kausen Drive, Suite 300 REGISTERED ADDRESS: 20 Civic Center Plaza Elk Grove, CA 95758 CITY:Santa Ana ZIP+4:92702-4058 Exhibit 1 11/13/2018 7:45:45 AM 20E-3 Page 1 of 13 10. PROJECTED EXPENDITURES FUND CFDA ITEM/APPROPRIATION F,Y. CRAFTER STATUTE PROJECTED EXPENDITURES 402PS-19 20.600 0521.0890-101 2018 2018 29/18 $50,000.00 AGREEMENT TOTAL $50,000.00 AMOUNT ENCUMBERED BY TATS DOCUMENT $50,000.00 I CERTIFY uporr that the budgeted fiords for own personal knowleblefor the the cttrrentbtrdgetyearare availalilefa'theperiodandprnporeofthe et PRIOR AMOUNT ENCUMBERED FOR THIS expenditure stated above. AGREEMENT $ 0.00 OTS ACCOUNTING OFFICER'S SIGNATURE DATE TOTAL AMOUNT ENCUMBERED TO DATE SIGNED es $50,000.00 Approved as to form Sonia R. Carvalho, City Attorney vomv IV L M. •un A istant City Attorney 10/30/2018 3:45:02 PM Attest Marla D. Huizar Clerk of the Council 20E-4 , Recommended for approval Fua Weiss, E, Executive Director Public Works Agency Page 2 of 13 State of California — Office of Traffic Safety GRANT AGREEMENT Schedule A GRANT NUMBER PS19031 1. PROBLEM STATEMENT With a population of just under 330,000; the City of Santa Ana is one of the fourteen highest population cities in the State (Group A). The City is approximately 27.1 square miles. Santa Ana has a large volume of motor vehicle traffic, with the arterials carrying 30,000 to 40,000 vehicles per day. There are also four freeways that converge within the city and a total of 450 miles of streets. Relative income and vehicle ownership levels within the City are significantly lower than statewide averages. The City population's median age is the youngest of the seven largest cities in Orange County and the residential density is one of the highest in the State. Transit ridership in Santa Ana is the highest in the County with several of the busiest OCTA bus lines serving the City. As a result of climate and demographics, bicycle dependent population is relatively high when compared to other communities in the County or the State. Also, a significant portion of the adult bicyclists may not speak English or understand the rules of the road. In 2015 the City of Santa Ana ranked 2/15 for bicycle involved collisions and 8/15 in bicycle collisions (under 15). In addition, collisions involving bicyclist riding at night increased from 35 in 2015 to 43 in 2016. Finally, bicycle involved collisions remained steady with 172 in 2015 and 176 in 2016. 2. PERFORMANCE MEASURES A. Goals: 1. Reduce the number of persons killed in traffic collisions. 2. Reduce the number of persons injured in traffic collisions. 3. Reduce the number of pedestrians killed in traffic collisions. 4. Reduce the number of pedestrians injured in traffic collisions. 5. Reduce the number of pedestrians killed under age 18 in traffic collisions. 6. Reduce the number of pedestrians injured under age 18 in traffic collisions. 7. Reduce the number of pedestrians killed over age 65 in traffic collisions. 8. Reduce the number of pedestrians injured over age 65 in traffic collisions. 9. Reduce the number of bicyclists killed in traffic collisions. 10. Reduce the number of bicyclists injured in traffic collisions. 11. Reduce the number of bicyclists under age 18 killed in traffic collisions. 12. Reduce the number of bicyclists under age 18 injured in traffic collisions. 13. Increase bicycle helmet usage. 14. Reduce the number of night-time pedestrian collisions 15. Reduce the number of night-time bicycle collisions B. Objectives: Target Number 1. Issue a press release announcing the kick-off of the grant by November 15. The kick-off 1 press releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at pio@ots.ca.gov, and copied to your OTS Coordinator, for approval 14 days prior to the issuance date of the release. 2. Participate in traffic safety fairs and/or community events with an effort to reach 4 individuals. 3. Work closely with community-based organizations at both the neighborhood and 1 community level with an effort to reach individuals. 4. Participate in the following campaigns, National Walk to School Day, National Bicycle 3 Safety Month and California's Pedestrian Safety Month. 5. Conduct pedestrian and/or bicycle safety presentations at community groups with an effort 4 to reach individuals. 6. Conduct pedestrian and/or bicycle safety courses with an effort to reach community 4 members. 7. Distribute pedestrian safety equipment to children that may include reflective armbands 1 and/or zipper pulls. 8. Distribute bicycle headlights and tail lights during bicycle safety community events or 1 bicycle safety courses. 11/13/2018 7:45:45 AM 20E-5 Page 3 of 13 9. Participate in Safe Routes to School coalition meetings. 4 10. Conduct pre and post -grant bicycle helmet usage surveys during the months of October 2 (start of the grant) and September (end of the grant). A pre -survey will be required to determine the base year helmet use rate and a post -survey will be required to determine the operational rate. 11. Conduct bicycle rodeos with an effort to reach individuals. 4 12. Distribute and properly fit bicycle helmets at bicycle rodeos, workshops, and community 400 events. 13. Conduct bicycle helmet inspections and make necessary adjustments at schools and 1 community events. 14. Conduct community bicycle rides promoting safe bicycling in the community with an 4 effort to reach bicyclists. 15. Hold quarterly meetings with countywide pedestrian and/or bicycle safety stakeholders to 4 collaborate on events, share best practices, and leverage resources. 16. Collaborate with law enforcement agencies to increase knowledge and awareness of 1 pedestrian and bicycle safety. 3. METHOD OF PROCEDURE A. Phase 1— Program Preparation (I" Quarter of Grant Year) • Develop operational plans to implement the "best practice" strategies outlined in the objectives section. • All training needed to implement the program should be conducted this quarter. • All grant related purchases needed to implement the program should be made this quarter. Media Requirements • Issue a press release announcing the kick-off of the grant by November 15, but no earlier than October 1. If unable to meet the November 15 date, communicate reasons to your OTS Coordinator. The kick-off press releases and any related media advisories, alerts, and materials must be emailed for approval to the OTS Public Information Officer at piokots.ca.gov, and copied to your OTS Coordinator, 14 days prior to the issuance date of the release. B. Phase 2 —Program Operations (Throughout Grant Year) • Conduct 4 Family Cycling 101 Courses • Conduct 7 Operation Lights Alive Events • Conduct 4 Traffic Safety Fairs/Bike Rodeos Media Requirements • Send all grant -related activity press releases, media advisories, alerts and general public materials to the OTS Public Information Officer (PIO) at piona ots.ca.eov, with a copy to your OTS Coordinator. The following requirements are for grant -related activities and are different from those regarding any grant kick-off release or announcement. • If an OTS -supplied, template -based press release is used, there is no need for pre -approval, however, the OTS PIO and Coordinator should be copied when at the same time as the release is distributed to the press. • If an OTS -supplied template is not used, or is substantially changed, a draft press release shall be sent to the OTS PID for approval. Optimum lead-time would be 10 days prior to the release distribution date, but should be no less than 5 working days prior to the release distribution date. • Press releases reporting the immediate and time -valued results of grant activities such as enforcement operations are exempt from the recommended advance approval process, but still should be copied to the OTS PIO and Coordinator when the release is distributed to the press. • Activities such as warrant or probation sweeps and court stings that could be compromised by advanced publicity are exempt from pre -publicity, but are encouraged to offer embargoed media coverage and to report the results. • Use the following standard language in all press, media, and printed materials: Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration. • Email the OTS PIO at piona ots.ca.gov and copy your OTS Coordinator at least 30 days in advance, a short description of any significant grant -related traffic safety event or program so OTS has sufficient notice to arrange for attendance and/or participation in the event. • Submit a draft or rough -cut of all printed or recorded material (brochures, posters, scripts, artwork, trailer graphics, 11/13/2018 7:45:45 AM 20E-6 Page 4 of 13 etc.) to the OTS PIG at pio@ots.ca.aov and copy your OTS Coordinator for approval 14 days prior to the production or duplication. • Space permitting, include the OTS logo, on grant -funded print materials; consult your OTS Coordinator for specifics and format -appropriate logos. • Contact the OTS PIO or your OTS Coordinator, sufficiently far enough in advance of need, for consultation when deviation from any of the above requirements might be contemplated. C. Phase 3 — Data Collection & Reaortin¢ (Throughout Grant Year) • Invoice Claims (due January 30, April 30, July 30, and October 30) • Quarterly Performance Reports (due January 30, April 30, July 30, and October 30) • Collect and report quarterly, appropriate data that supports the progress of goals and objectives. • Provide a brief list of activity conducted, procurement of grant -funded items, and significant media activities. Include status of grant -funded personnel, status of contracts, challenges, or special accomplishments. • Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities. • Collect, analyze and report statistical data relating to the grant goals and objectives. 4. METHOD OF EVALUATION Using the data compiled during the grant, the Grant Director will complete the "Final Evaluation" section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant's accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an ex lanation of why objectives were not com leted. 5. ADMINISTRATIVE SUPPORT This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion. 11/13/2018 7:45:45 AM 20E-7 Page 5 of 13 State of California — Office of Traffic Safety GRANT AGREEMENT Schedule B GRANT NUMBER PS19031 FUND NUMBER CATALOG NUMBER FUND DESCRIPTION TOTAL AMOUNT Positions and Salaries Full -Time (CFDA) $0.00 Overtime 402PS-19 20.600 State and Community Highway $50,000.00 $0.00 Category Sub -Total Safety $0.00 COST. CATEGORY CFDA TOTAL COST TO GRANT A. PERSONNEL COSTS Positions and Salaries Full -Time $0.00 Overtime $0.00 Part -Time $0.00 Category Sub -Total $0.00 B. TRAVELEXPENSES $0.00 $0.00 Category Sub -Total $0.00 C. CONTRACTUAL SERVICES Pedestrian and Bicycle Safety Consultant- $50,000 20.600 $0.00 Family Cycling Skills 101 20.600 $12,000.00 Pedestrian/Bicycle Rodeos 20.600 $16,000.00 Operation Lights Alive 20.600 $14,000.00 Bicycle Helmets 20.600 $4,000.00 Bicycle Safety Equipment 20.600 $2,400.00 Pedestrian Safety Equipment 20.600 $800.00 Educational Materials 20.600 $800.00 Category Sub -Total $50,000.00 D. EQUIPMENT $0.00 Category Sub -Total $0.00 E. OTHER DIRECT COSTS $0.00 Category Sub -Total $0.00 F. INDIRECT COSTS $0.00 Category Sub -Total $0.00 GRANT TOTAL $50,000.00 11/13/2018 7:45:45 AM 20E-8 Page 6 of 13 State of California — Office of Traffic Safety GRANT AGREEMENT Schedule B-1 GRANT NUMBER PS19031 BUDGET NARRATIVE PERSONNEL COSTS QUANTITY TRAVEL EXPENSES CONTRACTUAL SERVICES Pedestrian and Bicycle Safety Consultant- $50,000 - Work rendered by consultant needed to 1 accomplish the grant goals and objectives to include bicycle and pedestrian safety outreach, presentations, and bicycle rodeos. Family Cycling Skills 101 - Costs include all instructors and materials for 4 classes. Costs will be 4 invoiced at $4,000 per class. Pedestrian/Bicycle Rodeos - Cost to include outreach, organization, and instruction of 4 4 pedestrian/bicycle rodeos in partnership with Santa Ana Police Department. Each event includes all instructors and materials. Costs will be invoiced at $3,000 per event. Operation Lights Alive - Costs include outreach, recruitment, organization, and coordination of teams 7 to conduct 7 Operation Lights Alive events. Costs will be invoiced at $2,000 per event. Bicycle Helmets - Helmets to be distributed during bicycle rodeos and other bicycle safety related 400 events. 400 Helmets x $10 per = $4,000 Bicycle Safety Equipment - Safety equipment such as bicycle headlights/taillights, reflectors, and 1 reflective arm and leg bands to be distributed during bicycle rodeos and other bicycle safety related events. Pedestrian Safety Equipment - Costs to include reflective arm bands and reflective zipper pulls. 1 Additional items may be purchased with OTS approval. Educational Materials - Costs of purchasing, developing or printing brochures, pamphlets, fliers, 1 coloring books, posters, signs, and banners associated with grant activities, and traffic safety conference and training materials. Items shall include a traffic safety message and if space is available the OTS logo. Additional items may be purchased if ap2roved bX OTS. EQUIPMENT OTHER DIRECT COSTS INDIRECT COSTS STATEMENTS/DISCLAIMERS There will be no program income generated from this grant. 11/13/2018 7:45:45 AM 20E-9 Page 7 of 13 State of California – Office of Traffic Safety GRANT AGREEMENT Exhibit A GRANT NUMBER PS19031 CERTIFICATIONS AND ASSURANCES HIGHWAY SAFETY GRANTS (23 U.S.C. CHAPTER 4 AND SEC. 1906, PUB. L. 109-59, A5 AMENDED) Failure to comply with applicable Federal statutes, regulations, and directives may subject Grantee Agency officials to civil or criminal penalties and/or place the State in a high-risk grantee status in accordance with 49 CFR § 18.12. The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies and laws in effect with respect to the periods for which it receives grant funding. Applicable provisions include, but are not limited to, the following: • 23 U.S.C. Chapter 4—Highway Safety Act of 1966, as amended • 49 CFR Part 18—Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments • 23 CFR Part 1300—Uniform Procedures for State Highway Safety Grant Programs NONDISCRIMINATION (applies to subrecipients as well as States) The State highway safety agency will comply with all Federal statutes and implementing regulations relating to nondiscrimination ("Federal Nondiscrimination Authorities"). These include but are not limited to: • Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin) and 49 CFR part 21; • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal -aid programs and projects); • Federal -Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex); • Section 504 of the Rehabilitation Act of 1973, (29 U. S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27; • The Age Discrimination Act of 1975, as amended, (42 U. S.C. 6101 et seq.), (prohibits discrimination on the basis of age); • The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terns "programs or activities" to include all of the programs or activities of the Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federally -funded or not); • Titles It and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38; 11/13/2018 7:45:45 AM 20E-10 OC_1O Page 8 of 13 • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low - Income Populations (prevents discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations); and • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (guards against Title VI national origin discrimination/discrimination because of limited English proficiency (LEP) by ensuring that funding recipients take reasonable steps to ensure that LEP persons have meaningful access to programs (70 FR 74087-74100). The State highway safety agency— Will take all measures necessary to ensure that no person in the United States shall, on the grounds of race, color, national origin, disability, sex, age, limited English proficiency, or membership in any other class protected by Federal Nondiscrimination Authorities, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any of its programs or activities, so long as any portion of the program is Federally -assisted; • Will administer the program in a manner that reasonably ensures that any of its subrecipients, contractors, subcontractors, and consultants receiving Federal financial assistance under this program will comply with all requirements of the Non -Discrimination Authorities identified in this Assurance; • Agrees to comply (and require its subrecipients, contractors, subcontractors, and consultants to comply) with all applicable provisions of law or regulation governing US DOT's or NHTSA's access to records, accounts, documents, information, facilities, and staff, and to cooperate and comply with any program or compliance reviews, and/or complaint investigations conducted by US DOT or NHTSA under any Federal Nondiscrimination Authority; • Acknowledges that the United States has a right to seek judicial enforcement with regard to any matter arising under these Non -Discrimination Authorities and this Assurance; • Agrees to insert in all contracts and funding agreements with other State or private entities the following clause: "During the performance of this contract/funding agreement, the contractor/funding recipient agrees— a. To comply with all Federal nondiscrimination laws and regulations, as may be amended from time to time; b. Not to participate directly or indirectly in the discrimination prohibited by any Federal non- discrimination law or regulation, as set forth in appendix B of 49 CFR part 21 and herein; c. To permit access to its books, records, accounts, other sources of information, and its facilities as required by the State highway safety office, US DOT or NHTSA; d. That, in event a contractor/funding recipient fails to comply with any nondiscrimination provisions in this contract/funding agreement, the State highway safety agency will have the right to impose such contract/agreement sanctions as it or NHTSA determine are appropriate, including but not limited to withholding payments to the contractor/funding recipient under the contract/agreement until the contractor/funding recipient complies; and/or cancelling, terminating, or suspending a contract or funding agreement, in whole or in part; and e. To insert this clause, including paragraphs (a) through (e), in every subcontract and sub agreement and in every solicitation for a subcontract or sub -agreement, that receives Federal funds under this program. 11/13/2018 7:45:45 AM 20E-1 1 Page 9 of 13 POLITICAL ACTIVITY (HATCH ACT) (applies to subrecipients as well as States) The State will eomplywith provisions of the HatchAct (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal fiends. CERTIFICATION REGARDING FEDERAL LOBBYING (applies to subrecipients as well as States) Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that; 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, 'Disclosure Form to Report Lobbying," in accordance with its instructions; 3. The undersigned shall require that the language of this certification be included in the award documents for all sub -award at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. RESTRICTION ON STATE LOBBYING (applies to subrecipients as well as States) None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., "grassroots") lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal. CERTIFICATION REGARDING DEBARMENT AND SUSPENSION (applies to subrecipients as well as States) Instructions for Primary Tier Participant Certification (States) 1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200. 11/13/2018 7:45:45 AM ,20E_12 Page 10 of 13 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment. 4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7. The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled "Instructions for Lower Tier Participant Certification" including the "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction," provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200. S. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website (mss://www.sam.¢ov/). 9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CPR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal government, the department or agency may terminate the transaction for cause or default. Certification Regarding Debarment, Suspension, and Other Responsibility Matters -Primary Tier Covered Transactions (1) The prospective primary tier participant certifies to the best of its knowledge and belief, that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency; 11/13/2018 7:45:45 AM 20E-13 Page 11 of 13 (b) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, malting false statements, or receiving stolen property; (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or Local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and (d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default. (2) Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal. Instructions for Lower Tier Participant Certification 1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment. 3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled "Instructions for Lower Tier Participant Certification" including the "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion— Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award ManagementExclusionswebsite(hlWs://www.sam.gov/). 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 11/13/2018 7:45:45 AM 20E_14 Page 12 of 13 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-- Lower Tier Covered Transactions: 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency. 2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. BUY AMERICA ACT (applies to subrecipients as well as States) The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation. PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to subrecipients as well as States) The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists. LAW ENFORCEMENT AGENCIES All subrecipient law enforcement agencies shall comply with California law regarding profiling. Penal Code section 13519.4, subdivision (e), defines "racial profiling" as the "practice of detaining a suspect based on a broad set of criteria which casts suspicion on an entire class of people without any individualized suspicion of the particular person being stopped." Then, subdivision (f) of that section goes on to provide, "A law enforcement officer shall not engage in racial profiling." 11/13/2018 7:45:45 AM 20E-15 Page 13 of 13 20E-16 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: CONTRACT AWARD TO MIKE PRLICH AND SONS, INC., FOR CONCRETE COLLAR REPLACEMENTS (SPECIFICATION NO. 18-068) {STRATEGIC PLAN NO. 6, 1, C & F} CITY NAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize a contract to Mike Prlich and Sons, Inc., for concrete collar replacements for water and sewer appurtenances for a three-year period beginning December 4, 2018, and ending December 3, 2021, with provisions for one two-year renewal exercisable by the City Manager, in an annual amount not to exceed $315,250, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana operates a sanitary sewer collection system comprised of approximately 390 miles of sewer mains, 2 sewer lift stations, 48,500 sewer laterals, and 8,000 sewer manholes that are used to convey all sewer effluent from the city into the Orange County Sanitation District (OCSD) system for treatment. The City of Santa Ana also operates a water distribution system comprised of approximately 490 miles of water main, 10,000 valves, and 45,000 service connections. This contract provides for concrete collar replacement for sewer manholes, sewer cleanouts, water valves and related water appurtenances. These repairs will provide for better long term protection of manholes, cleanouts and valves. The Notice Inviting Bids was advertised on September 13, 2018, on the City's online bid management and publication system. A summary of the bid invitation and bids received is as follows: 425 Vendors were notified 5 Santa Ana vendors were notified 22 Vendors downloaded the bid packet 4 Bids received 1 Bid received from Santa Ana vendor 22A-1 Contract Award for Concrete Collar Replacements December 4, 2018 Page 2 Bids were opened on October 11, 2018, and evaluated (Exhibit 1). The bid received from Mike Prlich and Sons, Inc., is responsive to the specifications, meets the City's requirements, and complies with prevailing wage requirements. The annual amount is based on staffs projection for the next contract year. Outreach Efforts The Purchasing Division advertised the project on the City's online bid management and publication system which directly notified five Santa Ana vendors. One Santa Ana vendor submitted a bid packet for consideration. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard), and also Strategy F (perform periodic measurements to monitor and update each asset's condition and ensure adequate funding for repair and/or replacement costs in future budgets). FISCAL IMPACT Funds in the amount of $315,250 are budgeted and available for expenditure in FY 2018-19 as follows: $156,125 in the Sanitary Sewer Service Enterprise account (No. 05617640-62300) and $156,125 in the Water System Maintenance account (No. 06017641-62300). Subsequent funding of $315,250 annually will be budgeted in these accounts in FY 2019-20, FY 2020-21, FY 2021-22, and FY 2022-23 if the renewal option is exercised. APPROVED AS TO FUNDS AND ACCOUNTS: Fuad Weiss, PE, PLS Kathryn Downs, CPA zyA Executiv Director Executive Director Public W rks Agency Finance and Management Services Agency FSS/NS/af/sm/sp 22A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: CONTRACT AWARD TO HARDY & HARPER, INC. FOR ASPHALT STREET MAINTENANCE (SPECIFICATION NO. 18-084) (STRATEGIC PLAN NO. 6, 1C) CITY I NAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to Hardy & Harper, Inc. for asphalt street maintenance for a one-year period, with provisions for four, one-year renewals exercisable by the City Manager, in an annual amount not to exceed $990,000, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Maintenance Services Division is responsible for maintaining approximately 400 miles of roadway within the City of Santa Ana. Services provided under the asphalt street maintenance contract include the repair of existing roadway pavement, crack sealing and concrete repairs. In addition, the contract provides for water and sewer system maintenance by performing utility service trench repairs, water valve box repairs and adjustment of manhole frames and covers to grade. The Notice Inviting Bids was advertised on September 24, 2018, on the City's online bid management and publication system. A summary of the bid invitation and bids received is as follows: 392 Vendors were notified 6 Santa Ana vendors were notified 26 Vendors downloaded the bid packet 3 Bids received 2 Bids received from Santa Ana vendors Three bids were received and opened on October 22, 2018, and evaluated. The results are as follows: Vendor Location Hardy & Harper, Inc. Santa Ana, CA 2213-1 Amount $2,458,962.00 Contract Award for Asphalt Street Maintenance December 4, 2018 Page 2 Ben's Asphalt, Inc. Santa Ana, CA $2,860,654.50 All American Asphalt Corona, CA $3,497,200.00 The bid received from Hardy & Harper, Inc. is responsive to the specifications, meets the City's requirements, and complies with prevailing wage requirements. The annual amount is based on staffs projection for next contract year. Outreach Efforts The Purchasing Division advertised the project on the City's online bid management and publication system which directly notified six Santa Ana vendors. Two Santa Ana vendors submitted bid packets for consideration. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). FISCAL IMPACT Funds in the amount of $577,500 are available for expenditure in FY 2018-19 (Dec. 2018 — June 2019) Public Works Agency Roadway Maintenance account (02917660-62300), Sanitary Sewer Service account (05617640-62300) and Water System Maintenance account (06017641-62300). Funds for years two through five of the contract will be budgeted and made available in FY 2019-20, 2020-21, 2021-22, 2022-23 and 2023-24 (July — Dec. 2023) as follows: Account No. Anticipated Expenditures FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 02917660-62300 $87,500 $150,000 $150,000 $150,000 $150,000 $62,500 05617640-62300 $140,000 $240,000 $240,000 $240,000 $240,000 $100,000 06017641-62300 $350,000 $600,000 $600,000 $600,000 $600,000 $250,000 APPROVED AS TO FUNDS AND ACCOUNTS: Fuad S I Sweiss, PE, PLS Kathryn Dow s, CPA ,.YB Executi a Director Executive Director Public VVorks Agency Finance and Management Services Agency SM 228-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: AWARD PURCHASE ORDER TO METRON- FARNIER LLC, FOR FIRE HYDRANT WATER METERS WITH VERIZON SOLUTION REGISTER (SPECIFICATION NO. 18-077) {STRATEGIC PLAN NO. 6, 1C} A07 . RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize a one-time purchase and payment of purchase order to Metron-Famier LLC, for the procurement of 65 fire hydrant meters with Verizon solution register in the amount of $106,807, plus a contingency of $10,680, for a total amount not to exceed $117,487, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency Water Resources Division routinely installs construction fire hydrant water meters for use by contractors and developers performing construction activities. The Water Resources staff make monthly on-site construction visits to the various construction meters installed throughout the City and manually read each meter register for water usage. Replacement of existing and installation of new fire hydrant meters with cellular enabled registers will allow staff the ability to view water usage data on a continuous basis, which will facilitate billing and oversight of water use. Additionally, staff will be able to locate meters at all times if ever lost or stolen through the new GPS feature included. The Notice Inviting Bids was advertised on October 3, 2018, on the City's online bid management and publication system. A summary of the bid invitations and bids received is as follows: 98 Vendors were notified 1 Santa Ana vendor was notified 10 Vendors downloaded the bid packet 1 Bids received 0 Bid received from a Santa Ana vendor 22C-1 Award Purchase Order for Fire Hydrant Meters December 4, 2018 Page 2 The bid was opened on October 24, 2018, and evaluated. The bid submitted by Metron-Farnier, LLC, is responsive to the specifications and meets the City's requirements. To allow for unanticipated charges, a $10,680 contingency has been included in the award amount. Outreach Efforts The Purchasing division advertised the project on the City's online bid management and publication system which directly notified one Santa Ana vendor. The Santa Ana vendor did not submit a bid packet for consideration. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). FISCAL IMPACT Funds in the amount of $117,487 are available for expenditure in FY 2018-19 Water Quality & MeasurWent account (No. 06017644-63001). APPROVED AS TO FUNDS AND ACCOUNTS: Fuad S ss, PE, PLS Kakfiryn Downs, CPA yz� Executiv Director Executive Director Public W ks Agency Finance and Management Services Agency M 22Ci-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROVE EXCHANGE OF REAL PROPERTY FOR BRISTOL STREET IMPROVEMENTS PHASE 3A (PROJECT NO. 136792, NON - GENERAL FUND) (STRATEGIC PLAN NOS. 6, 1G; 3,2C) 1 r CITY 14ANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute Agreements for the Exchange of Real Property listed below and goodwill (if any) with the following property owners, subject to nonsubstantive changes approved by the City Manager and City Attorney: No. Property Owner Property commonly Acquisition Amount known as / location Type Southern California 1217 N. Bristol St. Exchange $0 Edison Company (APN 405-274-11) DISCUSSION Bristol Street is a north -south transportation corridor designated as a major arterial highway in the City's Circulation Element of the General Plan. Improving the 3.9 -mile Bristol Street segment from Warner Avenue to Memory Lane has been a long-term priority that is being constructed in several phases. Improvements include widening the street from two to three lanes in each direction, raised landscape medians, and bike lanes. The City is acquiring properties for the development of Phase 3A, bounded by Civic Center Drive and Washington Avenue. Property acquisitions for this phase are expected to be completed by spring 2019 and construction is anticipated to begin in summer 2019. The property exchange is necessary to accommodate the improvements and widening for Phase 3A. Southern California Edison (SCE) has a power substation situated on property that fronts Bristol just south of Washington. In order to accommodate the improvements for Phase 3A, SCE has agreed to relocate their substation to a portion of City -owned property within the same block (Exhibit 1). The City has agreed to exchange the rear portion of City -owned 911 North Bristol with SCE. Under the Agreement (Exhibit 3), the parties will exchange fee interests in their respective properties with no further compensation. The appraised values of the two properties are 25A-1 Property Exchange Bristol Street Improvements Phase 4 December 4, 2018 Page 2 consistent with each other. To settle the matter would also avoid litigation costs of around $50,000 - $75,000. This property exchange will ensure the relocated substation provides continued electrical grid stability while also enhancing the aesthetic of the corridor by removing it from its current location adjacent to the intersection of Washington and Bristol, to a location further down the block. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). ENVIRONMENTAL IMPACT In 1990, City Council approved the Bristol Street Final Environmental Impact Statement/Environmental Impact Report (FEIS/EIR No. 89-01). Due to several minor design modifications in Phase 4, which lies between Warner Avenue and St. Andrew Place, an Addendum to the FEIS/EIR was prepared and adopted pursuant to the California Environmental Quality Act by City Council on April 7, 2015. FISCAL IMPACT There is,0o fiscal impact associated with this action. 9 Fuad Sweiss, PE, PLS Executi Director Public Viorks Agency FM/EW G/JG/ST Exhibits: 1. Location Map 2. Property Exchange Agreement APPROVED AS TO FUNDS AND ACCOUNTS: 4 Kathryn Downs, CPA Executive Director Finance and Management Services Agency 25A-2 14 (NTS) MATCHLINE SEE BELOW PAGK 10TH STREET 9TH STREET I— w W F C0 J 0 65 rr M . . . . . . . . . . . . . . li power WASHINGTON AVENUE 12TH STREET Location of existing power substation CIVIC CENTER DR. I O �--- MATCHUNE SEE ABOVE LEFT FZZJ `SUBJECT PROPERTIES 4A,114 �SANTA ANA PWA ■ APPROVE EXCHANGE OF REAL PROEPRTY FOR BRISTOL STREET IMPROVEMENTS PHASE 3A (PROJECT NO. 136792 NON—GENERAL FUND) PIRB. c .uus .BERrr STRATEGIC PLAN NOS. 6, 1G; 3, 2C 25A-3 25A-4 AGREEMENT FOR EXCHANGE OF REAL PROPERTY This Agreement for Exchange of Real Property ("Agreement') is entered as of the day of 2018, by and between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California ("City"), and SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation. The City and SCE are hereinafter sometimes referred to collectively as the "Parties." RECITALS A. City owns certain real property commonly known as Orange County Assessor Parcel No. 405-262- 24, located at 911 N. Bristol Street in the City of Santa Ana, County of Orange, State of California, as more particularly described and depicted in the Legal Description attached hereto as Exhibit A and incorporated herein by reference ("City Property"), B. SCE owns certain real property commonly known as Orange County Assessor Parcel No. 405-274- 11, located at 1217 N. Bristol Street in the City of Santa Ana, County of Orange, State of California, as more particularly described and depicted in the Legal Description attached hereto as Exhibit B and incorporated herein by reference ("SCE Property"), C. The Parties desire by this Agreement to provide the terms and conditions for the exchange of fee interests in the City Property and the SCE Property, together with all rights, easements and appurtenances thereto. AGREEMENT THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject to the terms, conditions and provisions of this Agreement, the Parties agree as follows: 1. Exchange of Real Property 1.1. Conveyance by City. City agrees to convey the City Property to SCE by Grant Deed, and SCE agrees to accept the same from the City. 1.2. Conveyance by SCE. SCE agrees to convey the SCE Property to City by Grant Deed, and City agrees to accept the same from SCE. 2. Consideration 2.1 Consideration. In full and complete payment for the exchange of fee interests in the City Property and the SCE Property, City shall provide to SCE a signed grant deed for the City Property in the form attached as Exhibit C, and SCE shall provide to City a signed grant deed for the SCE Property in the form attached as Exhibit D. 3. Escrow 3.1 Escrow Agent. Within five (5) days from and after the execution of this Agreement by all Parties, City agrees to open an escrow at the office of Commonwealth Title Company at 4100 Page 1 of 15 EXHIBIT 2 25A-5 Newport Place Dr. Suite 120, Newport Beach, California ("Escrow Agent'). This Agreement constitutes the joint escrow instructions of the Parties and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow ("Effective Date"). 3.2 Escrow Agent Authortion. The Escrow Agent hereby is empowered to act under this Agreement and the General Escrow Provisions, attached hereto as Exhibit E and incorporated herein by reference, and upon indicating its acceptance of this Agreement and the General Escrow Provisions, in writing, delivered to the Parties within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. 3.3 Escrow Agent Liability. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under this Agreement. 3.4 Closing Costs. City agrees to bear, and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of SCE Property to City. City and SCE agree to split, and Escrow Agent is hereby authorized to charge equally to the City and SCE, the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of City Property to SCE. 3.5 Title Insurance. The Parties agree to deliver, concurrently with the conveyance of said real properties, within the time and at the place hereinabove specified for said conveyance of said real property, a policy of title insurance (oath, the "Title Policy") to be issued by the above mentioned title company, with the receiving Party therein named as the insured, in an amount equal to the appraised value of the subject property, insuring the title to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as the receiving Party may hereinafter expressly agree to take subject to. Acceptance by the receiving Party of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by the receiving Party of its right to such insurance as is herein required of the granting Party, nor a waiver by the receiving Party of any rights of action for damages or any other rights which may accrue to the receiving Party by reason of the failure of the giving Party to convey title or to provide title insurance as required in this Agreement. 3.6 Property Taxes. (a) Such real property taxes, if any, on the subject real properties for the fiscal year within which said real property is conveyed to the receiving Party as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. (b) The granting Party shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on said real property for said fiscal year which have been paid prior to the date the deed conveying said real property to the receiving Party is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying said real Page 2 of 15 25A-6 properly to the receiving Party is recorded and made uncollectible if unpaid by reason of Section 5086 of the Revenue and Taxation Code of the State of California. To the extent that the granting Patty has prepaid any taxes or assessments attributable to the subject real property, the granting Party shall be solely responsible for obtaining any refund due thereon from the taxing authority. Upon written request, the receiving Patty shall assist the granting Party, at the granting Party's sole cost, in obtaining said refund, if any; however, in no case shall the receiving Party credit or otherwise pay the granting Party for that refund, if any, through or outside of Escrow. (c) All unpaid taxes on either property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by the granting Party before conveyance of said real property to the receiving Party. 3.7 Deposit of Funds and Documents. (a) Prior to Close of Escrow (as defined below), the Parties shall deposit into Escrow (i) all escrow and Closing Costs as described above; and (ii) such other documentation as is necessary to close Escrow; (b) Prior to the Close of Escrow, each Party shall deposit into Escrow (i) the properly executed grant deed for conveyance of each Property; (ii) a duly executed bill of sale, assignment and assumption agreement with respect to the tangible and intangible personal property included in each Property; and (iii) such other documents and sums, n any, as are necessary to close Escrow in conformance herewith. 3.8 Conditions Precedent to Close of Escrow. The obligation of the Patties to exchange the Properties as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: (a) All representations and warranties of each Parry set forth in this Agreement shall be true and correct as of the date of the Close of Escrow; (b) Each Party shall timely perform all obligations required by the terms of this Agreement to be performed by it; (c) The irrevocable and unconditional written agreement of Title Company to record the grant deeds at the Close of Escrow and to issue the Title Policy to the receiving Patty, effective as of the date and time the deed is recorded; and, (d) No material adverse physical change to either Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 3.9 Close of Escrow. The Escrow Agent is hereby authorized to close escrow upon and after (a) receipt of the documents and funds in Section 3.7 and (b) confirmation of the approval of the Close of Escrow by the City and SCE ("Close of Escrow"), at which time the Escrow Agent shall: (a) Record the Grant Deed conveying the City Property and the Grant Deed conveying the SCE Property in the Official Records of Orange County; Page 3 of 15 25A-7 (b) Disburse the funds deposited into escrow by the Parties in accordance with the closing statements executed by the Patties; (c) Deliver to the City (a) promptly following the Close of Escrow, one (1) original of the bili of sale, assignment and assumption agreement for each Property, (b) within one (1) business day following recordation a conformed copy of (i) the City Property grant deed and (ii) the SCE Property grant deed; and (c) when issued, the Title Policy for the SCE Property; and (d) Deliver to SCE (a) promptly following the Close of Escrow, one (1) original of the bill of sale, assignment and assumption agreement for each property, (b) within one (1) business day following recordation a conformed copy of (i) the City Property grant deed and (ii) the SCE Property grant deed; and (c) when issued, the Title Policy for the City Property. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third patties in either Property that cannot be resolved in Escrow, then either Party may, at its option, request cancellation of Escrow and this Agreement and return of any funds it has deposited into escrow, Thereupon, all obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such request is made, Escrow shall be closed as soon as possible thereafter. Subject to satisfaction of the conditions to Closing set forth in this Agreement, the Close of Escrow shall occur on or before December 31, 2018. 4. Representations and Warranties 4.1 Representations and Warranties of Com. City makes the following representations and warranties with respect to the City Property, each of which shall survive Close of Escrow: (a) The execution and delivery of this Agreement, performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which the City is at present a party or by which the City is bound. (b) To City's actual knowledge, no litigation and no governmental, administrative or regulatory act or proceeding regarding the environmental, health and safety aspects of the City Property is pending, proposed or threatened. (c) City will not enter into any agreements or undertake any new obligations prior to Close of Escrow that will in any way burden, encumber or otherwise affect the City Property without the prior written consent of SCE. (d) City is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the City Property. City warrants and represents to Page 4 of 15 25A-8 SCE that City is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the City Property. (e) To the best of City's knowledge the City Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean. Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the City, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. (f) City, as a government agency, has not been subject to real property tax assessment on the City Property. Transfer of title to the City Property to SCE at the Close of Escrow may subject the City Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of SCE henceforth. 4.2 Representations and Warranties of SCE. SCE makes the following representations and warranties with respect to the SCE Property, each of which shall survive Close of Escrow: (a) The execution and delivery of this Agreement, performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which SCE is at present a party or by which SCE is bound. (b) To SCE's actual knowledge, no litigation and no governmental, administrative or regulatory act or proceeding regarding the environmental, health and safety aspects of the SCE Property is pending, proposed or threatened. (c) SCE will not enter into any agreements or undertake any new obligations prior to Close of Escrow that will in any way burden, encumber or otherwise affect the SCE Property without the prior written consent of the City. (d) SCE is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the SCE Property. SCE warrants and represents to the City that SCE is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the SCE Property, except as disclosed in Section 6.2 below. (e) To the best of SCE's knowledge and except as disclosed in Section 6.2 below, the SCE Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Page 5 of 15 25A-9 Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the City, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 5. Right of Possession 5.1 Right of Possession. The Parties agree to deliver to each other quiet and peaceful physical and legal possession of the respective Properties, free of all personal property, effective as of the Close of Escrow. 6. As -Is Condition 6.1 As -Is Condition. Parties shall rely solely and exclusively upon the results of their own Due Diligence Investigations of the subject Properties with regard to any physical condition or state of the Properties. By completing the exchange of the Properties, Parties evidence their unconditional acceptance of the condition of each respective Property. Parties acknowledge and agree that each is acquiring its respective Property on an "AS -IS," "WHERE -IS" basis. Parties are not offering to acquire the respective Property based on any representation by the other Party, or a third party, except those expressly set forth in this Agreement. Parties hereby acknowledge that the exchange of the Properties is without warranties of any kind from the other Party, expressed or implied, except as expressly set forth in this Agreement, as to the condition of the subject Property or its improvements, if any, including, without implied limitation, soils, access to the subject Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the subject Property. Parties do not warrant that either Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 6.2 SCE Disclosure; Post -Closing Testing. SCE conducted environmental testing on the SCE Property, which produced three samples at 0.5 feet with arsenic concentrations of 6.4, 8.6 and 13 mg/kg, SCE has agreed to do additional testing of the SCE Property after the Close of Escrow once the City has demolished and removed the existing substation, including its foundation and slab. SCE will take eight (8) additional soil samples at 0.5 and 2.0 feet. SCE's consultant will calculate the 95% upper control limit ("UCL") of the mean for the two previous and the eight new samples at 0.5 feet using the Environmental Protection Agency's distributed program ProUCL 5.1. The result will be compared to the California Department of Toxic Substances Control's criteria of 12 mg/kg for school sites. If the 95% UCL of the mean is less than the screening criteria, (a) the SCE Property will be immediately available for use by the City and (b) SCE will not remediate the SCE Property. If the 95% UCL of the mean exceeds the criteria, then a shallow soil excavation and haul remediation plan will be developed and implemented by SCE. The SCE Property will be available for City use upon the completion of the SCE remediation plan. The City shall issue a temporary entry permit to SCE for such testing and remediation. The obligations of this Section 6.2 shall survive the Closing. Acknowledgement of Full Benefits Page 6 of 15 25A-10 7.1 Full Benefits. By execution of this Agreement, the Parties hereby acknowledge that this Agreement provides full payment for the acquisition of the subject Properties, and each Party hereby expressly and unconditionally waives any claim for damages, interest, loss of goodwill, severance damages, or any other compensation or benefits other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the subject Properties. 8. Remedies 8.1 Remedies. If either Party defaults under this Agreement, and such default is not cured within thirty (30) days following the date of written notice of default, then the other Party may either: (f) terminate this Agreement by written notice, whereupon this Agreement and the obligations of the Parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. 9. Miscellaneous 9.1 Notice All notices or other communication provided for under this Agreement shall be in writing, and shall be delivered personally, sent by reputable overnight mail equivalent carrier, or sent by registered or certified mail, return receipt requested, postage prepaid, addressed to the person to receive such notice or communication at the following address and sliall be effective upon the earlier of actual receipt or refusal to accept delivery: If to the City: The City of Santa Ana Clerk of the Council 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 With a copy to: City Attorney 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, CA 92702 If to SCE: Southern California Edison Company 2 Innovation Way PIV 2, 2nd Floor Pomona, California 91768 Phone: 909-2741896 E-mail: richard.fujikawa@sce.com With a copy to; Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California 91770 Attention; Claire Keane, Esq. Phone: 626-302-6654 E-mail: elaire.keane@sce.com Page 7 of 15 25A-11 Notice of change of address shall be given by written notice in the manner set forth in this subsection. 9.2 Time is of the Essence. Time is of the essence with respect to each and every provision hereof. 9.3 Waivers. The waiver by either Panty of any breach of any covenant or agreement herein contained on the part of the other Party shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 9.4 Assigmnent. Neither this Agreement, not any interest herein, shall be assignable by any Party without prior written consent of the other, non -assigning Party hereto. 9.5 Inurement. Subject to the restrictions against assignment as herein contained, this Agreement, and all the terms, covenants, and conditions hereof, shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of the respective parties hereto. 9.6 Governing Law. All questions with respect to this Agreement, and rights and liabilities of the Parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 9.7 Attorney Fees. In the event of any controversy, claim or dispute between the Parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 9.8 Entire Agreement. The Agreement contains the entire agreement of the Parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the.Pgrties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 9.9 Additional Documents, All Parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 9.10 No Merger. All warranties, representations, acknowledgements, releases, covenants and obligations contained in this Agreement shall survive delivery and recordation of the grant deeds. 9.11 Contingenc, . It is understood and agreed between the Parties hereto that the completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City herein. The execution of these documents and the delivery of same to Escrow Agent constitute said acceptance and approval. 9.12 Modification and Amendment. This Agreement may not be modified or amended except in writing signed by the Patties. 9.13 Partial Invalidity. Any provision of this Agreement that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this Page 8 of 15 25A-12 Agreement shall have no effect, but all the remaining provisions of this Agreement shall remain in full force. 9.14 Captions. Captions and headings in this Agreement, including the title of this Agreement, are for convenience only and are not to be considered in construing this Agreement. 9.15 No &Iiance by One Pauly on the Other. Each Party has received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions hereof. The provisions of this Agreement shall be construed as to their fair meaning, and not for or against any Party based upon any attribution to such Party as the source of the language in question. 9.16 No Third Party Beneficial v. This Agreement is intended to benefit only the Parties hereto and no other person or entity has or shall acquire any rights hereunder. 9.17 Duty to Cooperate Further. Each Party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form acid substance reasonably acceptable to the Party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this Agreement, without cost. 9.18 Incomoration of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 9.1 ", Authority to Execute Agreement. The persons executing this Agreement and the instruments referenced herein on behalf of City and SCE hereby represent and warrant that such persons have the right, power and authority to bind City and SCE, respectively. SCE shall indemnify City billy, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 9.20 Counterparts. This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] Page 9 of 15 25A-13 written, SIGNATURE PAGE TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above CITY: CITY OF SANTA ANA, a California charter city and municipal corporation By: Raul Godinez II City Manager ATTEST: in Maria Huizar Clerk of the Council APPROVED AS TO FORM: By: QITL IJo M. Funk A istant City Attorney RECOMMENDED BY: go Fuad S. Sweiss, Executive Director Public Works Agency Southern California Edison Company, a California corporation: By: Name: Title: Page 10 of 15 25A-14 CITY PROPERTY EXHIBIT A Page 11 of 15 25A-15 EXHIBIT 'A' LEGAL DESCRIPTION WESTERLY PORTION OF A.P. No. 405-262-24 IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, BEING A PORTION OF THE UNDERLYING PARENT PARCEL AS DESCRIBED IN THE GRANT DEED RECORDED AUGUST 16TH, 2016, AS INSTRUMENT No. 2016000384991, OFFICIAL RECORDS OF SAID COUNTY, SAID BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS% ALL THAT CERTAIN REAL, PROPERTY SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: THAT PORTION OF "LOURIE'S SUBDIVISION OF PORTION OF HEDGES ADDITION TO SANTA ANA" IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 5, PAGE 12 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: THE WEST ONE-HALF (WI/2) OF THE SOUTH 50 FEET OF THE NORTH 124 FEET OF THE FOLLOWING DESCRIBED LAND: BEGINNING AT A POINT 325 FEET WEST OF THE NORTH-EAST CORNER OF LOT 4 IN BLOCK "A" OF HEDGES ADDITION TO SANTA ANA, AS SHOWN ON A MAP RECORDED IN BOOI{ 31, PAGE 48 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; THENCE NORTH PARALLEL TO THE WEST LINE OF BAKER STREET 374 FEET; THENCE WEST 325 FEET TO THE EAST LINE OF BRISTOL STREET, AS SAID STREET EXISTED ON MAY 26,1908; THENCE SOUTH ALONG THE EAST LINE OF SAID BRISTOL STREET, 374 FEET TO THE NORTH-WEST CORNER OF LOT 19 IN BLOCK "B" OF SAID HEDGES ADDITION; THENCE EAST 325 FEET TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PORTION OF SAID LAND CONVEYED TO THE CITY OF SANTA ANA FOR STREET PURPOSES BY DEED RECORDED JANUARY 6, 1.927 IN BOOK 7, PAGE 40, OF OFFICIAL RECORDS OF SAID ORANGE COUNTY. SAID PORTION BEING DESCRIBED MORE PARTICULARLY HEREIN AS THE SOUTH 17.00 FEET, TOGETHER WITH THE EAST 69.00 FEET, OF THAT PORTION OF SAID UNDERLYING PARCEL LYING WEST OF A LINE, THE NORTH TERMINUS OF SAID LINE BEING THE SOUTHEAST CORNER OF THAT PARCEL DESCRIBED IN THE GRANT DEED RECORDED JUNE If", 2016, AS INSTRUMENT No. 2016000256217, OFFICIAL RECORDS OF SAID COUNTY, SAID CORNER ALSO BEING THE SOUTHWEST CORNER OF THAT PARCEL DESCRIBED IN THE GRAND DEED RECORDED MARCH 8T", 2004, AS INSTRUMENT No. 2004000181968, OFFICIAL RECORDS OF SAID COUNTY, THE SOUTH TERMINUS OF SAID LINE BEING THE NORTHEAST CORNER OF THAT PARCEL DESCRIBED IN THE GRANT DEED RECORDED NOVEMBER 29TH, 2016, AS INSTRUMENT No, 2016000601396, OFFICIAL RECORDS OF SAID COUNTY, SAID 25A-16 CORNER ALSO BEING THE NORTHWEST CORNER OF THAT PARCEL DESCRIBED IN THE GRAND DEED RECORDED MAY 18TH, 2012 AS INSTRUMENT No. 2012000286972, OFFICIAL RECORDS OF SAID COUNTY; EXCEPTING FROM SAID PORTION MORE PARTICULARLY DESCRIBED HEREIN ABOVE THOSE LANDS LYING WESTERLY FROM A LINE, SAID LINE BEING CONCENTRIC WITH AND 64.00 FEET EASTERLY FROM THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE CENTERLINE INTERSECTION OF 9TH STREET AND BRISTOL STREET, SAID BEING SHOWN ON THE MAP OF TRACT No. 1262, FILED IN BOOK 39, PAGE 6, OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY; THENCE NORTH 1°31'41" EAST, 390.07 FEET ALONG SAID CENTERLINE OF BRISTOL STREET TO A POINT OF CUSP WITH A CURVE, SAID CURVE BEING CONCAVE WESTERLY AND HAVING A RADIUS OF 2000.00 FEET, SAID POINT OF CUSP BEING THE TRITE POINT OF BEGINNING; THENCE SOUTHERLY ALONG SAID CURVE 223.68 FEET THROUGH A CENTRAL ANGLE OF 6024'29" TO A POINT OF REVERSE CURVATURE, SAID REVERSE CURVE BEING CONCAVE EASTERLY AND HAVING A RADIUS OF 2000.00 FEET; THENCE SOUTHERLY ALONG SAID CURVE 223.63 FEET THROUGH A CENTRAL ANGLE OF 6024'23" TO SOUTHERLY TERMINUS HEREINABOVE DESCRIBED PARCEL CONTAINING AN AREA OF 4,466 SQUARE FEET, MORE OR LESS; SUBJECT TO COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS, AND RIGHTS OF WAY OF RECORD, IF ANY; ALL SHOWN ON EXHIBIT `A-1', ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF THIS DESCRIPTION WAS PREPARED BY JOHNSON -FRANK & ASSOCIATES, INC., UNDER�a�r THE DIRECT SUPERVISION OF ANTHONY C. � A CUOMO, PLS 6042, ON FEBRUARY 22ND, 2017. AolhanYt Como W UI 25A-17 Sc� dO \29a N \ `1�9sSnX i^j c' 's - c 9� r x I �Vld 4 Sp o �pc\c, 9� X F.' 6p sem\ XZ �b'y SOX rD oy 8�a Z 3,,0,06'.zON X, �`` o c 9� r X �dp�,9`Orb Sp o �pc\c, 9� X F.' vl'i 90, OZ,ZON 53i G y pb <p 0 N rn M a' � Imo, Ir, N Wb N U hM �M.� t7 4J O 10 10 t8, CIO ^ G> hl 1 K o f7— r'i b Sip . �9' 2 FK W w°p R 0 ml= a 25A-18 N N 0 0 2\ Sp X F.' vl'i O rn M � � N Wb N U hM �M.� t7 4J oq � 4 rn w o,o o N U 25A-18 N N 0 0 SCE PROPERTY EXHIBIT B Page 12 of 15 25A-19 EXHIBIT "A" LEGAL DESCRIPTION APN 405-274-11 SERIAL 71376A THE SOUTHERLY 40 FEET OF THE LOT 32, iN TRACT NUMBER 923, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 29, PAGE 14 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. CONTAINING 3,853 SQUARE FEET OR 0.09 ACRES, MORE OR LESS. ALL FOUND MONUMENTS DESCRIPTIONS, BASIS OF BEARINGS, COURSES, ETC. ARE AS SHOWN ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. PREP ED BY ME OR UNDER MY DIRECTION �SctON d 4y�� BRIAN W. MOORE, P.L.S. Na. 7533 � g�tnrdW SOUTHERN CALIFORNIA EDISON COMPANY 25A-20 W I �O^ I oy I I o *- I I I w gEVon * k 25A-21 CITY PROPERTY DEED EXHIBIT C Page 13 of 15 25A-22 RECORDING REQUESTED BY WHEN RECORDED MAIL TO SOUTHERN CALIFORNIA EDISON COMPANY 2 INNOVATION WAY, 2ND FLOOR POMONA, CA 91768 ATTN; TITLE & VALUATION GRANT DEED LOCQdon: City of Santa Ana A.P.N. 405-262.24 RP rile No: ACQ203334782 SCP; Document: 514156 LINE FOR RECORDER'S USE _.... Servleu Order 80149 e OR PUTEDCOMPUTED ED FULL LL VALUE PROPERTY CtlNVETED APPROVED --„-.. OR COMPUYED ON FULL VALUE LESS LIE NS AND ENCUMBRANCES REMAINING AT TIME OF SALE Rm'I Progenias Uopanment SIGNATURE pF DECLARANT OR AGENT DETERMINING TAX FIRM NAME By GS DATE 091E11 FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CITY OF SANTA ANA, a charter City and municipal corporation duly organized under the Constitution and laws or the State of California, (hereinafter referred to as "Grantor"), hereby GRANTS to SOUTHERN CALIFORNIA EDISON COMPANY a corporation (hereinafter referred to as °Grantee") that certain real property in the City of Santa Ana, County of Orange, State of California, described as follows: Said property is more particularly described In the Exhibit "A" and more particularly depicted on the Exhibit "A -I", both attached hereto and by this reference made a part hereof. SUBJECT TO current real property taxes and to covenants, conditions, restrictions, reservations, exceptions, rights and easements of record. EXECUTED this-_.._.dayof_._...__--._.__._-__....,20,_,__, CITY OF SANTA ANA, a charter city and municipal corporation By: _._._�..... _.. Raul Godinez it._.__ -_----- City Manager MAIL TAX STATEMENTS TO: C/O David Lee 2244 Walnut Grove Avenue Rosemead, CA 91770 (Attn: Tax Dept.) 25A-23 Grant Deed City of Santa Ana, to S.C.E. Co., a corp. Serial No. 71377A RP File No.: ACQ203334792 It notary Public or other officer completing this certlficate venires only the identity oi` the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that dnrnmrnr State of California County of On _..�_�. before me, a Notary Public,basis Personally appeared who proved to me on the basis off satisfactory ovfdence to be the parsons) whose names) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ics), and that by bis/her/their signature(s) on the instrument the person(s), m• the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature N ivorary Puouo or other officer completing this certificate verifies only the identity aithe individual or a signed the t dorsi n# to which this certificate is attached, and not the truthfulness, accuracy, or validity of that doruxnPnt. state of California County of _�._.-,__�..W.._........) Oil before me, - Personally appeared a Notary Public, basis of satisfactory evidence to be the person(s) whose names) is/are subscribedwho to me on the to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(fcs), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature -2- 25A-24 SCE PROPERTY DEED EXHIBIT D Page 14 of 15 25A-25 RECORDING REQUESTED BY SOUTHERN CALIFORNIA EDISON COMPANY WHEN RECORDED MAIL TO CLERK OF THE COUNCIL CITY OF SANTA ANA 20 CIVIC CENTER PLAZA, M30 SANTA ANA, CALIFORNIA 92701 FREE RECORDING REQUESTED BY THE CITY OF SANTA ANA PER GOVERNMENT CODE 6103 I907ef+.:. •. W Location: City of Santa Ana A.P.N. 405-274-11 RP File Na. 13RT203334782 Affects SCE Doc. No. 83619 SPACE AaOVE THIS LINE FOR RECORDER'S USE AOCUMENTARYTRANGFCft TA#5 .,,__,,, COMPUTED ON FULL VALUE OF PROPERTY CONVEYED Serlai No. Y1Ji6A Service Ord r$01490345 APPROVED OR COMPUTED ON FULL VALUE LESS LIENS AND REAL PROPERTIES ._.._.. _ ENCUMSRANCES REMAINING AT TIME OF SALE DEPARTMENT A IF N BY 05 DATE OOf011'IE SIGNATURE OF DECLARANT OR AGENT DETERMINING TAX FIRM MAME FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, )hereinafter referred to as "Grantor") hereby GRANTS to the CITY OF SANTA ANA, a charter city and municipal corporation drily organized under the Constitution and laws of the State of California thereinafter referred to as "Grantee"), that certain real property in the City of Santa Ana, County of Orange, State of California, described as follows: Said property is more particularly described on the Exhibit "A", and more particularly depicted on the Exhibit "B', both attached hereto and by this reference made a part hereof. The real property hereby conveyed is not necessary or useful in the performance of the duties of said Southern California Edison Company to the public. SUBJECT TO current real property taxes and to covenants, conditions, restrictions, reservations, exceptions, rights and easements of record. MAIL TAX STATEMENTS TO: 25A-26 Grant Deed S.C.E. Co., a carp., to City of Santa Ana Serial No. 71376A Affects SCE Document No, 83619 IN WITNESS WHEREOF, said Southern California Edison Company ties caused this instrument to be executed this .,.-itixf day of ,_ .__ . 20_9._. A Notary Public or other officer can who signed the document to which validity of that document. State of California County of r . bri ) On1e2p (� _T before me, personally appeared___A,)qM+r l w • �' basis of satisfactory evidence to be th, instrument and acknowledged to me authorized capacity(tf, and that by hl; the entity upon behalf of which the nersc SOUTHERN CALIFORNIA EDISON COMPANY, a corporation BY NESTOR MARTINEZ Vice President Engineering & Technical Services ng this certificate verifies only the identity of the individual certificate is attached, and not the truthfulness, accuracy, or a Notary Public, who proved to me on the whose �aameX is/aA subscribed to the within ive/twy executed the same in Iris/llfr/t it signatureA on the instrument the person(,vf, or executed the instrument. I certify under PENALTY OF PER.IURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. STEPHANIA f TUBA Notary public • California i Signature ,_,,,t ^"�. --' i -. Rlrerslde County Commission M 2167118 M Comm. Ea Tres Oct 8.2020 25A-27 EXHIBIT E (Commonwealth Land Title) GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the date on which instruments referred to herein are filed for record. All adjustments are to be made on the basis of a 30,day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized. There shall be no proration of any existing insurance policies in this escrow, You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys. Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any or the parties hereto, or any money or property deposited herein affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you in connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, u suit in interpleader brought by you. In the event you file a suit in interpleader, you shall ipso facto be fidly released and discharged from all obligations imposed upon you it, this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. Page 15 of 15 25A-28 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 4, 2018 TITLE: APPROVE SUBORDINATION AGREEMENT WITH CALIFORNIA HOUSING FINANCE AGENCY FOR THE SANTA ANA VETERANS VILLAGE PROJECT {STRATEGIC PLAN NO 5, 3} r Cit MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance onI�Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a Subordination Agreement to a $2.912 million loan from the County of Orange provided through the California Housing Finance Agency, for the Loan Agreement with Santa Ana Village LP (c/o Jamboree Housing Corporation) for $352,962.90 in HOME Investment Partnerships Program funds, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On August 21, 2018, the City Council authorized the City Manager and the Clerk of the Council to execute a Loan Agreement with Santa Ana Village LP (c/o Jamboree Housing Corporation) for $352,962.90 in HOME Investment Partnerships Program (HOME Program) funds to create 75 units of permanent supportive housing at 3312 West 1st Street in Santa Ana. On that same date, the City Council also authorized the City Manager and Clerk of the Council to execute a Subordination Agreement with Union Bank as the senior lender for the project. Following the approvals on August 21, 2018, Jamboree requested the City to execute a second Subordination Agreement to a $2.912 million loan from the County of Orange provided through the California Housing Finance Agency (CaIHFA). Through this $2.912 million loan, the County of Orange will have an additional layer of eligibility criteria on 20 of the 75 units for Mental Health Services Act eligible homeless veterans. This additional financing is necessary for the project to be financially feasible and to secure a 9% low-income housing tax credit award. Nonetheless, the Housing Authority's 75 project -based vouchers, approved by the Housing Authority Board on April 4, 2017, will have the superior eligibility criteria to all of the other financing for the project. The City's $352,963 HOME Program loan for this project is approximately 1.2% of the total Project budget of $29,355,487 (Exhibit 1). As a subordinate loan for a large multifamily affordable housing project such as this one, it is not uncommon for a senior lender to request a Subordination Agreement for the City's smaller Loan Agreement that allow the senior lender to complete their underwriting and 2513-1 Loan Agreement with Santa Ana Village LP December 4, 2018 Page 2 commit their financing for the project's capital stack. The City's HOME Program loan is already subordinate to the private market loan from Union Bank as a senior lender. This second Subordination Agreement will also allow CaIHFA as another senior lender to commit their financing for the Project. If the Subordination Agreement is not approved by City Council, CalHFA will not be able to commit their $2.912 million to the project and Jamboree will need to find another source of financing to fill this financial gap before the expiration of their 9% low-income housing tax credits. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy C (Provide that Santa Ana residents, employees, artists and veterans receive priority for affordable housing created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed under state law). FISCAL IMPACT There is no fiscal impact associated with this action Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Project Budget 2. Subordination Agreement with CaIHFA 25B-2 EXHIBIT 1 Santa Ana Veterans Village Protect Budget 25B-3 ftrotlenWl R°Me1 CampareM LOYf COSTS gammemYl CamporeM CNb TeYI Oavabpnwrt COSY a..00 LIXTCEgdry U90C Bk Yz nMlY PefnureM Wn-V[IOC Leval OC yammur3lF F-MNbn FUNDING SOURCES Lxtl Laval CIIy oIBD O...PFu.. MCNOO aHXP FOMe Fab, P.. qXp PM¢Y ONaReO Oewbpv Fee sw4Kw Home Oepaf Fou &Wn 80URCE8 TOTRL LeSmoILeMCaSlw Velre NeW#u L1W,[W wAl2W] 5552 NMI[. Laatlfl Lbvry Co9a w w Ve1?adeC Cw6 A110 W> 3319.] 9WWY1 N)f4000 w .111-.111-w Afgom .1o. 31.5]Sp51 S;wyOW SN;� w w w ..3AY N,]54ow EaY Im .am w w pr w w TeYl Fcqu611bn 3471¢,0W w M]Sa,000 w Sf.+ssA3] f2wlpx p52w1 w w w SI.1t40w Fermanenl Rab-atim w w TeYI RaKK°Ibn w w w w b w p w w b w w OB Slle lm awm w w SN WM Iaro asY 191!>w SO Nl!)W Stlucbres IONm95 St30l5 rot St2A)ilwp -10 .1-11 w.Ipp,Wn wSe,KJ f9ll,P']l {f3➢)6.ttY FVnwlnWn 3:47 p7 S. .1.7 (menlfl a Lu>T] ".1 w91.A1 S60>Jl> Sy),SJ) .1.1 Lcnlmzlw0.emea5 i0 N CM1xlw ho(M1 w q Ge'eml Lad Avaase S3¢a,xp 31N.VA , 5311.uM TOYIGombuelbn w N.111Sll,1119+ 39,7900. 31949® w w w w 1590..6 116.1 N.IN Po ' n 3150.w] 315o,o5J S1f0,P10 5 w w TaYI RrcM1XxMaIWY w 3)w.Ow i]w.OW w N w w w w w f>50.w0 E rev NOOWI Nw.WI NN.pY Nw.ttO ioYl Su flE I Nw.0. w SYO.oA' w w N w w w WO,wO fnsl Can- f!PS>,>ID 61 Wl]e] i1671.1w SI.W>.TA SnXCow CmY w35N5 wi5N5 w]5m3 SI36.N6 Teul Wnu Ore cwY s;Nal>s w w N w w w w sf...➢1s cYamn�La.n lMmaM we7.om sveo..6 wepam Oe6m Fee slie,l6 ifao.651 s+1oh7 110,. floes. clealFinallwmeola Fea w w a9e¢w cp6dlpi6on w w vYwR w pN.b w w Imuaree tmarrtisn Sm.aa w0.0[o w0.om Sw.alro TNaM Rsmrol Fees YW.IXO w9.IX0 3DAW QUIZ WIk t]S,IXO f36.IXp wS,WP S!3¢45a w 5!3645v ff:364:$N w w N ff.XtSN Lmn w11.w2 SIO2b] fl0>.Y3 b9>;Y3 Ab eM xwQi R Td i15.W3 Sts,gp wS.IW 5+5;W] TeY1Polm°lal[FWnz 310 Po w 3162N3 w¢;y3 w w w w w 3162Ni C I-Wn LeMZLe w90,W] S1BO.IXO S1B].W3 w 9 L Fw¢ w w TOYI Le °IFm 5180,000 w w w w w w w 31W.OW lia-av YYJJ,01< 4193014 TMeI C° MIWERnervai wOJo>a w wOJo>e .1114 w w w .0. Y!Fm - 3- 11 1'Ap S2So Emewme Sw.0.0 SW,W] SW,IXO 1t6,OW A5,IX0 T. eYfte N891utlkz I Sfoa, m w 310o,Ow wo0.M0 w w w b w S+OO.WO iCPG ./Mc/Mwelor Fees SIJSWJ f1J5.WJ SIJ[IW Sn5¢p LaY PonnllFms SR+.TA 481,3. f3B1%U iRt,NJ Mane' /Lre w M /Lu 11f0,OT aftO.W] S+t O.pn i110 UT v.n¢a ftpve¢WI w w w w T TraIFU Fr¢ w w waw camel w w w oIM11me IFm¢ wu6N w . ! wf1,R1 Fun - N114W wJ9A. .1Nan1.4a0 NJ&4m w w w ]tirtdllfudei w S 31525. 315;w1 T,W O1FurCwY 11. Sy030.]l 111. $3.030.>N 12021N w w w w w w S"ll., SUS 9UOTOTRL a13.f00.6ll w.M0A00 Nwopoo Sinf30o0 315;9m w w 1Wo.mo 131,155.4] Cewb of FedOnfOeaLPfafil i]]00 WJ 52A0A[U 3'R3 Wf $1. S55o.0.e TOYIOaveb W56 3;w0.000 w f3:3U0A00 w w w 5160.0. ww.Ow w i2 -A00 T0TRLOEVELOPAEM C08T i3.996aY1 N iM?65.Yi it3A00,Y5 w.]f0,m 3l .woAoo 1'MoWl 3553,e. Si50.o. ..l. Sw0..0 25B-3 25B-4 DRAFT— DO NOT EXECUTE FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 Recording requested by and when recorded return to: CALIFORNIA HOUSING FINANCE AGENCY Office of General Counsel P.O. Box 4034 Sacramento, CA 95812-4034 (space above this line for Recorder's use) SUBORDINATION AGREEMENT SNHP EXHIBIT 2 NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIENS) OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT dated as of December 1, 2018 for informational purposes, is entered into by and between City of Santa Ana, a charter city and municipal corporation (the "Locality"), Santa Ana Village LP, a California limited partnership ("Borrower"), and the California Housing Finance Agency ("Agency") a public instrumentality and political subdivision of the State of California in connection with a loan by the Agency to Borrower to finance a multifamily residential rental housing project on real property located in the City of Santa Ana, County of Orange, California and more particularly described on Exhibit A attached hereto and incorporated herein by this reference ("Project"). Unless otherwise noted, references to instruments recorded in "Official Records" refer to instruments recorded in the Office of the County Recorder of the County of Orange. RECITALS A. WHEREAS, Borrower and the Locality have or will encumber the Project with the following documents related to the financing and/or development of the Project: 1. That certain Affordability Restrictions on Transfer of Property dated as of (the "Locality Regulatory Agreement') by and between the Locality and the Borrower to be recorded in the Official Records substantially concurrently herewith; SNHP.Subordination Agreement (City of Santa Ana) Santa Ana Veteran Village; Cal[IFA No. 17-047-M 11/09/2018.PCS/jad-# -1- 25B-5 DRAFT— DO NOT EXECUTE 2. A HOME Loan Agreement dated as of August 21, 2018 (the "Locality Loan Agreement') by and between the Locality and the Borrower, recorded on September 18, 2018 in the Official Records as Instrument No. 2018000341750, securing a loan by the Locality to the Borrower; 3. A City Home Deed of Trust and Assignment of Rents dated as of (the "Locality Deed of Trust') by and between the Locality, as beneficiary, and the Borrower, to be recorded in the Official Records substantially concurrently herewith, securing a loan by the Locality to the Borrower; The Locality Loan Agreement, the Locality Deed of Trust and any other documents, recorded or unrecorded pertaining to the Project and the Locality loan, with the exception of the Locality Regulatory Agreement, are collectively referred to herein as the "Locality Documents." B. WHEREAS, the Agency is making, contemporaneously with the making of this Agreement, a loan to Borrower (the "SNHP Loan"). The SNHP Loan is evidenced by a promissory note from the Borrower to the Agency in the face amount of Two Million Nine Hundred Twelve Thousand and No/100s Dollars'. ($2,912,000.00);, titled "California Housing Finance Agency, SNHP Promissory Note, Ca1HFA Development No. 17-047-M " (the "SNHP Promissory Note") and secured by a deed of trust. The deed of trust was executed by Borrower, as trustor, to , as trustee, in favor of the Agency, as beneficiary, and is titled "California Housing Finance Agency, SNHP Deed of Trust With Assignment of Rents, Security Agreement and Fixture Filing, CalHFA Development No. 17-047-M" dated December 1, 2018 (the "SNHP Deed of Trust") to be recorded in the Official Records contemporaneously with this Agreement. The Project shall also be regulated and encumbered by a regulatory agreement executed by Borrower and the Agency titled "California Housing Finance Agency, SNHP Regulatory Agreement, Ca1HFA Development No. 17-047-M" dated as of December 1, 2018 (the "SNHP Regulatory Agreement') to be recorded in the Official Records contemporaneously with this Agreement. The SNHP Regulatory Agreement, SNHP Promissory Note, SNHP Deed of Trust and related unrecorded documents, including but not limited to that certain SNHP Loan Disbursement Agreement (if applicable), and the Capitalized Operating Subsidy Reserve Agreement (if applicable), shall hereafter be collectively referred to herein as the "SNHP Loan Documents"; C. WHEREAS, it is a condition precedent to the Agency malting the SNHP Loan that the SNHP Loan Documents have priority over the Locality Documents; and D. WHEREAS, it is beneficial to all parties that the Agency make the SNHP Loan, and the parties are willing to subordinate the Locality Documents in order that the SNHP Loan be made. NOW THEREFORE, In consideration of the foregoing and other consideration the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Agency to make the SNHP Loan, the parties hereto agree as follows: SNHP.Subordination Agreement (City of Santa Ana) Santa Ana Veteran Village; CaIHFA No. 17-047-M 11/09/2018.PCS/jad-# r -2- DRAFT — DO NOT EXECUTE 1. Subordination of Locality Documents. (a) The Locality and Borrower hereby unconditionally subordinate the Locality Documents to the SNHP Loan Documents, including all extensions, modifications, incremental disbursements of the original amount of the SNHP Loan if made during construction, or additional advances made thereunder, but specifically excluding the Locality Regulatory Agreement, which is intended hereby to be senior to the SNHP Loan Documents. Hereafter, the SNHP Loan Documents shall unconditionally be, and remain at all times, liens and encumbrances on the Project prior and superior to the encumbrances of the Locality Documents and to all rights and privileges of the parties thereunder, and the liens and encumbrances of the Locality Documents together with all rights and privileges of the parties thereunder shall hereby be subject to and made subordinate to the liens and encumbrances of the SNHP Loan Documents. In the event of a judicial or non judicial foreclosure of the SNHP Loan Documents, the lien of the Locality Documents shall be extinguished. (b) The Agency agrees that it shall use its best efforts to provide Locality with a copy of all initial notices of default provided to Borrower under the SNHP Loan Documents, provided, the Agency shall have no liability to Locality and/or Borrower for its failure to do so, nor shall failure to do so constitute grounds for any restraining order, injunction, or other prohibition against or delay in the Agency's exercise of its remedies under the SNHP Loan Documents. The Agency shall not record a Notice of Default related to such initial notice during the period ninety (90) days after the date of such initial notice if such notice relates to a nonmonetary default or defaults under the SNHP Loan Documents. During the term of such period Locality shall have the right, but not the obligation, to cure any nonmonetary default under such initial notice. Notwithstanding the foregoing, if at any time following the date of the initial notice, there shall occur or be continuing a default in the payment of any amount due to the Agency under the SNHP Loan Documents, the Agency shall have the right to, and in its sole discretion may, record a Notice of Default and proceed to foreclosure based upon any such nonpayment regardless of any extended cure period with respect to nonmonetary defaults. (c) Locality has read, understands and approves the SNHP Loan Documents and agrees to be bound thereby in the event of its foreclosure or acquisition of the Project. 2. Representations. Locality hereby represents and warrants to the Agency that at the time of execution of this agreement, the Borrower is in substantial compliance with its obligations to the Locality under the terms of the Locality Documents, and Locality has read and understands the SNHP Loan Documents and agrees that in the event the Agency determines there is a conflict of terms between the SNHP Loan Documents and Locality Documents, the terms of the SNHP Loan Documents shall prevail. 3. Attorneys Fees & Costs. If any party shall take any action to enforce or otherwise relating to this Agreement, the prevailing party or parties shall be entitled to recover reasonable attorney's fees and costs from the other party or parties. -3- SNU Subordination Agreetnent (City of Santa Ana) Santa Ana Veteran Village; Caff[ ANo. 17-047-M 1 U09/2018.1 CS/jad-# 25B-7 DR xt FT- DO NOT EXECUTE 4, Amendments. Amendments to this Agreement shall be in writing and signed by all the parties hereto. 5. Govemine Law. This Agreement shall be construed in accordance with and be governed by the laws of California. 6. C,:ountgparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. 7. Severabil!y. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, it shall not invalidate or render unenforceable any other part of this Agreement. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF TETE LAND. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. LOCALITY: CI'T'Y OF SANTA ANA, a charter city and municipal corporation Narnc. Attest: Cleric of the Council Attorney SNI R' Subordination Agrcemem (City or Sam Ana) Santa Ana Veteran Village; C2I1117A No, 17-047•M I Vt1929t8.PCs%jud-H r -4- BORROWER: SANTA ANA VILLAGE LP, a Califorlua limited partnership By: JHC-Santa Ana Vilhige LLC, a California limited liability company Its: managing general partner By: Jamboree Housing Corporation, California nonprofit public benefit corporation Its: manager Nalne__kt I LtkrC . iVl� SS i a Title: WCC4� Sfi71 nSj DRAFT— DO NOTE RECUT E By: Aa • ej' -- Dated: 11/as/19, Recommended For Approval: Steven A. Mendoza Executive Director Community Development Agency AGENCY: CALIFORNIA HOUSING FINANCE AGENCY, a public instrumentality and political subdivision of the State ofCali fornia By:.__..__ Name SNID',SuWalinatian AgMmIent (City of Santa Ann) Sawa Mm veteran Village Cnin FA No. I7 -047-M 11109!201 SR's/Jac" ACKNOWLEDGEMENTS -5- 25B-9 DRAFT— DO NOT EXECUTE SNUP.Subordinatlon Agreement (City of Santa Ana) Santa Ana Veteran Village; Ca1HFA No. 17-047-M 11/09/20I8.PCS/jad-# EXHIBIT A Legal Description 0 25B-10 Form No. 1068-2 ALTA Plain Language Commitment 1. 2. Ki 21 �fN 01111 411111a1 Commitment Date: January 30, 2018 at 7:30 A.M. Policy or Policies to be issued: (A) ALTA Owner's Policy To Be Determined Proposed Insured: To Be Determined (B) ALTA Loan Policy ALTA Extended Loan Policy Proposed Insured: To Be Determined Commitment No.: NCS-824396-A-SAl Page Number:4 (A) The estate or interest in the land described in this Commitment is: Fee (B) Title to said estate or interest at the date hereof is vested in: Santa Ana Village LP, a California Limited Partnership Amount $To Be Determined $To Be Determined The land referred to in this Commitment is situated in the City of Santa Ana, County of Orange, State of California, and is described as follows: PARCEL "B" AS SHOWN ON LOT LINE OF ADJUSTMENT NO. 91-01, AS EVIDENCED BY DOCUMENT RECORDED JUNE 17, 1991 AS INSTRUMENT NO. 91-306696 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEING ALL OF PARCEL 1 OF PARCEL MAP FILED IN BOOK 80, PAGES 32 AND 33 OF PARCEL MAPS, RECORDS OF SAID ORANGE COUNTY, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, TOGETHER WITH A PORTION OF SAID LOT "I" OF TRACT NO. 13804, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHERLY TERMINUS OF THAT CERTAIN COURSE IN THE WESTERLY LINE OF SAID LOT "I" SHOWN AS "N 0038'52" W 102.24"' ON SAID MAP; THENCE NORTH 890 21'08" EAST 8.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 891 21' 08" EAST 6.00 FEET; THENCE SOUTH 00 38' 52" EAST 25.42 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 61.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 21° 02' 22" AN ARC LENGTH OF 22.40 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 59.00 FEET, THENCE SOUTHERLY ALONG SAID CURVE, FROM AN INITIAL RADIAL LINE WHICH BEARS NORTH 680 18'46" EAST, THROUGH A CENTRAL ANGLE OF 210 02' 22" AN ARC LENGTH OF 21.67 FEET; THENCE SOUTH 00 38' 52" EAST 40.58 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 110.00 FEET; THENCE SOUTH EASTER12 gf§G lAf CURVE, THROUGH A CENTRAL ANGLE OF Form No. 1068-2 ALTA Plain Language Commitment Commitment No.: NCS -824396 -A -SAI Page Number: 5 190 14'30" AN ARC LENGTH OF 36.94 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 50.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE, FROM AN INITIAL RADIAL LINE WHICH BEARS SOUTH 70° 06,38" WEST, THROUGH A CENTRAL ANGLE OF 240 54'33" AN ARC LENGTH OF 21.74 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 110.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE, FROM AN INITIAL RADIAL LINE WHICH BEARS SOUTH 450 12' 05" WEST, THROUGH A CENTRAL ANGLE OF 22° 02-09-- AN ARC LENGTH OF 42.31 FEET TO A POINT IN THAT CERTAIN COURSE IN THE EASTERLY LINE OF SAID LOT "I" SHOWN AS "NORTH 00 40' 13" WEST 132.34"' ON SAID MAP; SAID POINT LYING 7.00 FEET NORTHERLY ALONG SAID COURSE, FROM ITS SOUTHERLY TERMINUS; THENCE SOUTH 00 40' 13" EAST 7.00 FEET TO SAID SOUTHERLY TERMINUS, THENCE ALONG THE SOUTHERLY, EASTERLY AND NORTHERLY LINES OF SAID PARCEL 1 THE FOLLOWING COURSES: NORTH 890 32' 17" EAST 268.75 FEET; NORTH 00 35'48" WEST 211.42 FEET; SOUTH 890 33'30" WEST 317.87 FEET; AND WESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 17.00 FEET, THROUGH A CENTRAL ANGLE OF 900 12' 22" AN ARC LENGTH OF 26.76 FEET TO THE TRUE POINT OF BEGINNING. EXCEPT ALL OIL, GAS AND OTHER HYDROCARBONS AND MINERALS NOW AND HEREAFTER IN, ON AND UNDER THAT PART OF SAID LAND BUT WITHOUT ANY RIGHT OF ENTRY UPON SAID LAND OR WITHIN SAID TOP 500 FEET THEREOF FOR ANY PURPOSES WHATSOEVER, AS RESERVED BY THE ROMAN CATHOLIC ARCHBISHOP OF LOS ANGELES, A CORPORATION SOLE, IN THE DEED RECORDED MAY 28, 1976 IN BOOK 11753, PAGE 849 OF OFFICIAL RECORDS. EXCEPTING THEREFROM ALL OIL, GAS AND OTHER HYDROCARBONS AND MINERALS NOW AND HEREAFTER IN, ON AND UNDER THAT PART OF SAID LAND BUT WITHOUT ANY RIGHT OF ENTRY UPON SAID LAND OR WITHIN SAID TOP 500 FEET THEREOF FOR ANY PURPOSES WHATSOEVER, AS RESERVED IN A DEED RECORDED MAY 28, 1975 IN BOOK 11754, PAGE 935 OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM ALL OIL, MINERAL, GAS AND OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FEET UNDER SAID LAND, WITHOUT RIGHT OF SURFACE ENTRY, AS RESERVED BY D&D DEVELOPMENT COMPANY, A CALIFORNIA CORPORATION, IN DEED RECORDED JULY 10, 1991 AS INSTRUMENT NO. 91-356825 OF OFFICIAL RECORDS. APN: 144-341-07 (Affects: Portion of said land) and 144-551-51 (Affects: Portion of said land) 25B-12 DRAFT— DO NOT EXECUTE ACKNOWLEDGEMENTS A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ss. County of On Public, personally appeared before me, a Notary , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) SNHP.Subordination Agreement (City of Santa Ana) Santa Ana Veteran Village; CaIACA No. 17-047-M I 1/09/2018.PCS/j ad -;i -7- 25B-13 DRAFT— DO NOT EXECUTE ACKNOWLEDGEMENTS A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ss. County of On before me, a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) SNHP.Subordination Agreement (City of Santa Ana) Santa Ana Veteran Village; Ca1HFA No. 17-047-M 11/09/2018.PCS/jad4 M 25B-14 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROVE AGREEMENT WITH SEDARU, INC. FOR COMPUTER WATER MODELING LICENSING AND SUPPORT SERVICES (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6, 1C) CI MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Sedaru, Inc., to provide computer water modeling licensing and support services, for a three-year period expiring December 3, 2021, with provisions for one two-year renewal option exercisable by the City Manager and City Attorney, in an amount not to exceed $150,000 annually for a total agreement amount not to exceed $750,000, including renewal option, subject to nonsubstantive changes approved by the City Manager and City Attorney. The City's water enterprise provides high quality, safe drinking water to all of Santa Ana's residents and businesses via a network of wells, pumps, reservoirs and 450 miles of pipelines. In order to assure overall water system reliability and better evaluate current and future system hydraulic operations and needs, industry best practices are to create and maintain a water system hydraulic computer model. In 2014, the City Council authorized the creation of such a model and awarded a contract to Sedaru, Inc. (formerly IDModeling, Inc.), at the conclusion of an open competitive bid process. One of the primary benefits of the water model solution offered by Sedaru is the SEDARU® web portal which allows for the water model to be controlled remotely and reduces the amount of staff time and training necessary to maintain and effectively utilize the computer model. Additionally, the SEDARU web portal allows staff to perform capital planning and monitor system performance live. Approval of this recommended action will allow for the continued use of the SEDARU software and support services for the evaluation and analysis of the City's water system for reliability, system hydraulic operations, and future development -driven needs. An important industry best practice is to sustain, support and improve a water system hydraulic computer model that applies flexible technology to assist in the optimization of daily operations and to identify hydraulically deficient areas where the water system and residents would benefit from future capital 25C-1 Agreement with Sedaru, Inc. for Computer Water Modeling Licensing and Support Services December 4, 2018 Page 2 improvements. The water enterprise requires ongoing licensing and support of the SEDARU software and its various suites to optimize the following operational, engineering and managerial tasks: 1. Continued hydraulic simulations and recalibration of the model; 2. Review of proposed development projects and ability of City to meet user needs; 3. Analysis pipeline deficiencies for replacement projects; 4. Simulations of water production controls; 5. Track, trend, monitor and report on system production and energy usage; 6. Plan capital improvement projects; and 7. Provide predictive water operational simulations to determine water quality within the system and potentially reduce field related water quality sampling. Staff recommends that the agreement be approved in order to continue to utilize modern technology for the effective management of the City's water system. Sedaru, Inc. has performed exceptionally well, has delivered a comprehensive water model and met all of the City's requirements. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are available in the Water Administration and Engineering Account (06017645-62300) and will be budgeted in subsequent fiscal years. Funds will be spent according to the estimated spending plan below. FISCAL - FY 2018/19 (December— June) AMOUNT $75,000 FY 2019/20 (July — June) $150,000 FY 2020/21 (July —June) $150,000 FY 2021/22 (July — June) $150,000 FY 2022/23 (July — June) $150,000 FY 2023/24 (July — December) $75,000 TOTAL: $750,000 `If renewal option is exercised 25C-2 Agreement with Sedaru, Inc. for Computer Water Modeling Licensing and Support Services December 4, 2018 Page 3 Fuad Sw iss, PE, PLS Executiv Director Public Wrks Agency FS/NS/RR Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNTS: 6a�- �-� K ry on D wns, CPA q>st Executive Director Finance and Management Services Agency 25C-3 25C-4 AGREEMENT TO PROVIDE WATER SYSTEM COMPUTER MODELING AND ENGINEERING SERVICES THIS AGREEMENT is made and entered into this 4th day of December, 2018 by and between Sedaru, formerly known as ID Modeling, Inc. ("Contractor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The City has previously purchased hydraulic modeling and engineering services from Contractor, including the design and creation of a water system computer model. B. The City desires to purchase from Contractor additional services, including model updates and software maintenance and support. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Contractor shall perform during the term of this Agreement the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a, City agrees to pay, and Contractor agrees to accept as total payment for its services under this Agreement, the rates and charges identified in Exhibit A. The total annual sum to be expended under the term of this Agreement, including any extension periods, shall not exceed $150,000. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures, Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. EXHIBIT 1 Page 1 of 8 25C-5 3, TERM This Agreement shall commence on the date first written above and terminate on December 3, 2021, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extendedfor one 2 -year period upon a writing executed by the City Manager and City Attorney, 4. PREVAILING WAGES Contractor is aware of the requirements of California Labor Code Section 1720, et seq,, and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects, if the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Contractor agrees to firliy comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. S. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor rurder this Agreement ("Documents & Data"). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City, City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk, Page 2 of 8 25C-6 7. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions, b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. c. Worker's Compensation Insurance. In accordance with the California Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to timdertake self-insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. Q. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City, (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by Contractor, without thirty (30) days prior written notice to the City. Page 3 of 8 25C-7 (iv) Contractor shall supply City with a frilly executed additional insured endorsement. f If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Contractor agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor or its subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement, This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement, City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. 9. INTELLECTUAL PROPERTY INDEMNIFICATION Contractor shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or documents provided by Contractor to the City pursuant to this Agreement. Page 4 of S 25C-8 10. RECORDS Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. 11. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential infonnation disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City, 12. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with perforrnance of services specified under this Agreement. 13. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic commtmication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) Page 5 of 8 25C-9 P,O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Copy to: Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) F.O. Box 1988 Santa Ana, CA 92702 Fax 714-647-5635 To Contractor: Sedans 168 E. Arrow Hwy, #101 San Dimas, CA 91773 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address, If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these timeframes, weekends, federal, state, County or City holidays shall be excluded. 14. EXCiLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered mill and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other contractors retained by City. Page 6 of 25C-10 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Contractor shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations, 19. JURISDICTION -VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 20. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Page 7 of 8 25C-11 Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All exhibits referenced herein and attached hereto shall be incorporated as if fatly set forth in the body of this Agreement, IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: .L'I J n M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA RAUL GODINEZ 1I City Manager CONTRACTOR Name: Title: Page 8 of 8 25C-12 Sedaru Proposal for City of Santa Ana on-going water System Computer Model Solutions TV !gA ZSN 00 Submitted to: Submitted by: W, I ... .. ... SEDF)RU 9L rF'pB� Sedaru 168 E Arrow Hwy, Suite 101 Son Dimas, CA 91773 sedaru,corn Office: 626.244.0700 info@sedaru.com September 14, 2018 Mr. Rudy Rosas, P.E. Senior Civil Engineer City of Santa Ana 220 S. Daisy Ave. M-85 Santa Ana, CA 92703 Subject: Proposal to Provide Ongoing Water System Computer Model Solutions, 3 -year initial term, with optional renewal for 2 years Dear Mr. Rosas, Sedaru, Inc, (Sedaru) is pleased to submit this proposal to the City of Santa Ana (City) to provide software and services to the City's water engineering department. This proposal serves as a continuation of services provided under Sedaru's Water System Computer Model Solutions contract from 2015-2018, wherein Sedaru delivered solutions from hydraulic modeling, to engineering analysis and applications designed to maximize the input, output, and recommendations from the City's calibrated water system computer model. Background: Sedaru has provided engineering solutions for the City since 2015, incorporating the City's institutional knowledge, while gaining a unique and valuable understanding of the City's water system hydraulic challenges, performance characteristics, infrastructure condition and opportunities for efficiency. Unique, City -specific Experience: Sedaru has delivered a comprehensive range of engineering and operations related solutions, as summarized below. • Built and calibrated the City's water system hydraulic model, • Supported hydraulic simulations for the City's 2016 Water System Master Plan, including: o System -wide fire flow analysis to understand and plan -for system redundancy and adequate minimum fire flow protection, o Criticality analysis to identify the City's most vulnerable corridors & related system valves o Energy management analysis to assist with efficient use of existing system capacity, o Water quality analysis to identify areas of system stagnancy across the system, where high disinfectant bi-products may form. • Analyzed multiple water quality and operational related analyses to ensure acceptable minimum water age under varying demand conditions, • Delivered analysis, results, and a Technical Memorandum with recommendations for the County Administrative Block hydraulic Feasibility Study, • Completion of a water system flushing program, • Delivery of the Hydraulic Model and GIS -based solution "Sedaru" to City Engineering & Operations staff to support ongoing, in-house: o Hydraulic Simulations (Sedaru Modeling) for utility -focused analysis such as fire flows, o SCADA trending & alarms (Sedaru OMNI), integrated In the same Model interface, o Facility Inspections from an app, w/automated production reporting (Sedaru Fieldforce) o Identification of optimal pipeline replacement strategies for the City's high return on its capital investment (Sedaru CIP). Services to implement this tool included: Integration of multiple system hydraulic and Infrastructure condition assessment criteria such as fire flows, leaks, valve criticality, pipeline age, material, and more. The above represents a significant collection of institutional knowledge gained by our staff to develop the City's first-ever hydraulic model, with the application of that model to the City's Water System Master Plan, and deployment of upgraded technology to support a more Integrated, dynamic, and informed decision making process for engineering. Proposed Scope and Terms for Ongoing Solutions: By approval of this proposal and subsequent contracting of this proposed scope, the City authorizes Sedaru to provide maintenance and support for engineering software for a 3 -year initial term, with an optional renewal for 1. years. Annualized support Includes 2 categories of solutions: 1) ongoing software maintenance and support for the solutions authorized within the 2015-2018 Water System Computer Model Solutions contract, and 2) continued engineering related services to provide similar services to those described herein, Including updates to the City's current water model. These solutions have been summarized below: 1. $75,000 per year for maintenance and support of the Sedaru engineering software, inc.: a. Sedaru Modeling: Run fire -flow analysis, size pipelines, evaluate pumps out of service. b. Sedaru OMNI & SCADA Connect: Track, trend, monitor, and report -on system performance, including notifications and alarms of facilities running out of range. c. Sedaru Fieldforce & Auto -Reporting: Collect condition and performance data on key facilities In real-time, to automatically generate production reports. d. Sedaru CIP: Access condition and performance data from GIS, Hydraulic Model, Street Paving. Rank, weight, quantify & prioritize pipeline replacement projects with high ROL e. Sedaru Ops: Predict operations to determine water age, and trace water supply to and from any point in the system to reduce the need for future water quality sampling. 2. $75,000 per yearfor ongoing engineering consulting services, delivered on an as -needed basis, utilizing the rate schedule Included herein as Exhibit A. Consulting services may include and not be limited to: a. Updates to the City's water system hydraulic model, and related calibration efforts, to ensure reasonable water model results as compared to field or SCADA measurements. b. Updates may also Include water quality parameters to support the City's annual flushing program to maintain acceptable levels of water quality. c. Ongoing fire flow capacity analysis for developer requests, deficiency analysis to ensure high value return -on -Investment on pipeline replacement projects, and simulations of water system operations including pump controls, water quality, and more. d. Hydraulic model updates and related model results will provide the City's Sedaru software with the latest information on City Infrastructure and operations to support optimal software performance overtime. Total annual value of the contract is $150,000, and software maintenance is to be billed and paid in advance of each contract year. Consulting services billed on a percent complete basis. Proposed Project Team: Sedaru proposes a Project Team with a collective 100+ years of experience in delivering water system planning, operations, and technical software solutions, in addition to nearly 2 decades of experience with City -specific projects. Please see resumes Included for the City's consideration in Exhibit B. We look forward to a continuing to deliver valued engineering and water system computer model solutions to the City's Engineering Department. Please do not hesitate to contact me with any questions at all, at any time. Sincerely, Paul Hauffen, City of Santa Ana Customer Service Manager Sedaru, Inc. Phone: (626)3$4-7003 Emall: paulhauffenPsedaru.com Exhibit A: Rates: Sedaru proposes the following rates for services rendered from July 1, 2018 through June 30, 2019. Rates will increase 3% annually per year. Classification Not to Exceed Hourly Rate Principal......................................................................................................... TechnicalAdvisor/QA-QC............................................................................... Senior Project Manager/GIS Systems Integrator/Developer ......................... ProjectManager............................................................................................ Senior Project Engineer/Modeler/Senior GIS Technician .............................. Project Engineer/Modeler/GIS Technician.................................................... ProjectAccountant........................................................................................ WordProcessing........................................................................................... $215 $200 $185 $170 $160 $150 $90 $75 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: DECEMBER 4, 2018 TITLE: APPROVED APPROVE AGREEMENT WITH THE ❑ As Recommended CITY OF FOUNTAIN VALLEY FOR El El THE SANTA ANA POLICE ElOOrdinance on Reading E]2n Ordinance on tl Reading DEPARTMENT TO PROVIDE JAIL ❑ Implementing Resolution BOOKING SERVICES FOR CITABLE ❑ Set Public Hearing For OFFENDERS {STRATEGIC PLAN NO. 1, 4} CONTINUED TO f FILE NUMBER CI MANAGER RECOMMENDED ACTION Authorize the City Manager and the Clerk of the Council to execute a two-year agreement with the City of Fountain Valley to receive jail booking services for the period of December 3, 2018 through December 4, 2020 in the amount of $146 per prisoner day, subject to non -substantive changes approved by the City Manager and City Attorney. The City of Fountain Valley is requesting the Santa Ana Police Department provide jail services to process, cite and release arrestees charged with being intoxicated or under the influence of drugs who were not accepted bookings by the County jail. The Jail will be providing jail services to book arrestees charged with California Penal Code 647(f) under the influence of alcohol, drugs or other controlled substance for a booking fee of $146 per arrestee. As part of the booking process, Jail staff will fingerprint, photograph, and have the arrestee sign their citation. These arrestees are typically released within 6-8 hours or the next day when they are no longer intoxicated and are able to care for themselves. The City has a similar agreement with the City of Irvine, which produced approximately $5,000 in annual revenue. This agreement is projected to generate approximately $5,000 per year for the City, which will help recover Jail operational costs. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #1 - Community Safety, Objective #4 - Modify the Santa Ana jail business model and identify short- and long-term goals to effectively meet the needs of the community through contract negotiations with outside agencies, evaluation of staffing needs and increasing operational efficiency. 25D-1 Agreement with the City of Fountain Valley December 4, 2018 Page 2 FISCAL IMPACT Funds for this agreement will be deposited in the Police Department Jail Facility Rental revenue account (no. 01114002 57460) for the following fiscal years: / in Chief of Police FY 2018-19 $2,500 FY 2019-20 $5,000 FY 2020-21 $2,500 Total $10,000 APPROVED AS TO FUNDS AND ACCOUNTS: KathNn Downs, CPA Executive Director eO) Santa Ana Police Department Finance and Management Services Agency Exhibit 1: Agreement with the City of Fountain Valley 25D-2 AGREEMENT FOR THE DETENTION IN THE SANTA ANA CITY JAIL OF PERSONS TAKEN INTO CUSTODY BY THE CITY OF FOUNTAIN VALLEY POLICE DEPARTMENT THIS AGREEMENT made and entered into December 3, 2018, by and between the City of Fountain Valley, a municipal corl)oration duly organized and existing under the Constitution and laws of the State of California (hereinafter "Agency"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS A. Agency desires to use the facilities and personnel of the Santa Ana City Jail (hereinafter collectively "Detention Facility") to house detainees held in custody by the City of Fountain Valley Police Department for violation of California Penal Code §647(0, being under the influence of alcohol, drugs or other controlled substance (hereinafter "§647(f) detainees"). B. City leas availability in its Detention Facility to house detainees of Agency. C. The parties agree to utilize the Detention Facility tinder the terms and conditions set forth herein. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: TERM The term of this Agreement commences upon execution of this Agreement and continues for two years until December 4, 2020. This agreement may be terminated by either party upon thirty (30) days written notice without cause. 2. SCOPE OF SERVICES City agrees to provide the housekeeping, safekeeping and subsistence of §647(t) detainees of Agency in accordance with this Agreement. 3. COMPENSATION a. Agency agrees to pay, and the City agrees to accept as total payment for housing Agency detainees, the Daily Jail Rate of One Hundred Forty -Six Dollars ($146.00) per prisoner day. Agency agrees to reimburse the City, separate from the Daily Jail Rate, for emergency medical costs, routine and non -routine, as set forth in Section 4, below. 25Q;,J,.. b. Payment by Agency shall be made within thirty (30) days following receipt of proper invoice from City. 4. SUPPORT AND MEDICAL SERVICES a. City agrees to accept and provide for the secure custody, care and safekeeping of Agency's detainees in accordance with state and local laws, standards, policies, procedures and court orders applicable to the operation of City's facilities. City agrees to provide Agency's detainees with the same level of on-site medical care and services provided to City's prisoners. Agency shall reimburse City for expenses incurred by City in providing transportation and security for detainees requiring removal from the Detention Facility for emergency medical or mental health services. b. Original invoices for all costs associated with hospital or health care services provided to Agency' s detainees outside City' s Detention Facility shall be submitted to Agency for direct payment by Agency to the service provider. City shall notify Agency as soon as possible of all emergency medical or mental health cases requiring removal of detainee from City' s Detention Facility and to obtain prior authorization for removal for all other medical or mental health services required. c. City shall provide routine over-the-counter pharmaceutical and routine prescription care for Agency detainees. Long- term medication for chronic care, including HIV and psychotropic medications shall be the responsibility of the Agency. d. Persons injured or ill prior to arrival at the City's Detention Facility must have amedical clearance issued by a doctor or hospital of Agency' s choice. If the detainee requires further medical or mental health treatment due to such injury or illness, Agency shall be responsible for all required transportation and treatment. e. Agency shall be responsible for all testing of blood, breath or urine. 5. INSURANCE Each party represents that it is self-insured for up to at least one (1) million dollars for general liability ( including property damage and bodily injury) as well as worker's compensation claims. Each party agrees to provide the other with a letter setting forth their respective self-insured retention and any additional excess insurance coverage prior to the start of services under this Agreement if requested by the other party. G. INDEMNIFICATION AND HOLD HARMLESS Agency agrees to and shall indemnify and hold harmless the City, its officers, agents, employees and consultants from liability for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including health, and claims for property damage, which may arise from the direct operations of the Agency or its contractors, agents, employees, or other persons acting on their behalf which relates to the services 25D-4 described in this Agreement. City agrees to and shall indemnify and hold harmless the Agency, its officers, agents, employees and consultants from liability for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including health, and claims for property damage, which may arise from the direct operations of the City or its contractors, agents, employees, or other persons acting on their behalf which relates to the services described in this Agreement. 7. NOTICE Any communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication in the mariner provided in this Section, to the following persons: To City: Cleric of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702- 1988 Facsimile (714) 647- 6956 With courtesy copies to: And: Chief of Police City of Santa Ana 60 Civic Center Plaza (M-97) P.O. Box 1988 Santa Ana, California 92702 Facsimile (714) 245- 8007 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P. O. Box 1988 Santa Ana, California 92702 Facsimile ( 714) 647- 6515 25D-5 To Agency: City Clerk City of Fountain Valley 10200 Slater Avenue Fountain Valley, CA 92708 Facsimile ( 714) 593-4551 and: Chief of Police City of Fountain Valley 10200 Slater Avenue Fountain Valley, CA 92708 Facsimile (714) 593- 4453 A party may change its address by giving notice in writing to the other party. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by facsimile, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 8. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Agency, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terns of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and the Agency. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Agency nor the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 9. JURISDICTION — VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 25D-6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. CITY OF SANTA ANA RAUL GODINEZ II City Manager ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO Citi Attorney A n Assistant City Attorney RECOMMENDED FOR APPROVAL: DAVID VALENTIN Chief of Police CITY OF FOUNTAIN VALLEY ROBERT IIOUSTON City Manager ATTEST: KATHY HEARD Deputy City Clerk APPROVED AS TO FORM: ALEXANDRA M. HALFMAN Attorneys for City INITIATED AND APPROVED: KEVIN L. CHILDE Chief of Police 25D-7 25D-8 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: ADOPT AN ORDINANCE TO AMEND CITY MANAGER'S CONTRACTING AUTHORITY FOR NON-PUBLIC WORKS AND PUBLIC WORKS CONTRACTS {STRATEGIC PLAN NOS. 4, 1; 7,51E) 1% MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt an ordinance seeking to amend and re -organize provisions of the municipal code relating to the City Manager's authority to bind the city to any one non-public works and public works contracts under Chapter 2, Article VII of The Santa Ana Municipal Code as follows: deleting section 2.1 of Chapter 2, Article 1 relating to the City Manager's authority to approve change orders; ii) deleting Section 2-801 of Chapter 2, Article VI I relating to the City Manager's authority to bind the City to any one written contract for an amount not exceeding $25,000; iii) deleting Section 33-201 of Chapter 33, Article VIII of the Santa Ana Municipal Code relating to the City Manager's authority to bind the City to any one written contract for emergency public works construction in an amount not exceeding $10,000; iv) amending Section 2-748 of Chapter 2, Article VII concerning the City Manager's contracting authority (1) for non-public works contracts to increase from $25,000 to $100,000; (2) for public works contracts to increase from $25,000 to $250,000; and (3) for emergency public works construction to increase from $10,000 to $100,000 and (4) to amend his/her contracting authority for public works change orders. 50A-1 Amend City Manager's Contracting Authority for Non -Public Works and Public Works Contracts December 4, 2018 Page 2 DISCUSSION Pursuant to Sections 421(b) (non-public works contracts) and 422(c) (public works contracts) of the City of Santa Ana Charter, the City Council may, by ordinance, authorize the City Manager to bind the City on contracts at amounts that may be established from time to time by the City Council. Currently, the City Manager is authorized to bind the City to non-public works and public works contracts in an amount not to exceed twenty-five thousand dollars ($25,000). All contracts and agreements over $25,000 must be approved by the City Council. Regardless of the contract amount, all contracts and agreements must comply with the City's Purchasing Policies & Procedures designed to ensure fair, transparent, and competitive procurement practices. When an agency identifies a need to enter into a contract to purchase materials and supplies or an agreement for services, the agency budgets for those items. The recently adopted Public Works Agency's FY 18-19 budget, for example, has approved $43,082,785 in contract expenditures. On average, the Council is presented with over 250 contracts and agreements for approval annually. Due to the nature of the services provided by the Public Works Agency (PWA), nearly half of these contracts and agreements are for PWA -related materials and services. In order to obtain City Council approval of a contract or agreement in excess of $25,000, staff must prepare a Request for Council Action (RFCA) report. Preparing an RFCA takes a substantial amount of staff time and effort from various agencies within the City. Specifically, the RFCA is first prepared by the initiating division and approved by the initiating agency. The document must then be reviewed and approved by the City Attorney and other affected agencies. The RFCA's are then submitted to the City Manager Office (CMO) for consideration and final review of the report's content. Upon approval from the CMO, the Finance and Management Services Agency reviews and approves the RFCA for consistency with the approved budget and accounts. Once all financial -related matters have been reviewed and approved, the RFCA is finally submitted to the Clerk of the City Council to be included in the City Council meeting agenda documents. The above-described process is lengthy and requires substantial staff time from various City agencies for each contract approval. Thus, significant savings in staff time will be achieved by reducing the number of contracts and agreements that must be presented to the City Council for approval. Additionally, Staff has determined that streamlining the process to execute PWA contracts and agreements for the construction, rehabilitation, maintenance, testing and inspection of public infrastructure would improve the City's ability to provide efficient and timely service delivery. The City Council last adopted an Ordinance revising the City Manager's contracting authority on July 3, 2006, when it increased the City Manager's authority from $10,000 to the current $25,000 level for all contracts and agreements. Costs of goods, services, and construction are on the rise in recent years. A $25,000 contract requires a lot of administration costs and does not buy much in services or goods. Staff surveyed Orange County cities (Exhibit 2) and others in the region and found that the City Manager contracting authority ranges widely from a low of $20,000 (Stanton and Seal Beach) to a high of $1,000,000 (Irvine). All of the cities comparable to Santa Ana in 50A-2 Amend City Manager's Contracting Authority for Non -Public Works and Public Works Contracts December 4, 2018 Page 3 population such as Anaheim, Irvine and Long Beach, have City Manager contracting authority averaging $100,000. The proposed action will increase the City Manager's authority to enter into contracts and agreements for non-public works contracts to $100,000. The proposed action would also increase the City Manager's contracting authority for public works contracts to $250,000, which would include contracts for maintenance and repair, the procurement of materials, supplies and services relating to projects for the erection or improvement of public buildings, streets, drains, sewers, and/or parks. The Council is also being asked to amend the municipal code to increase the City Manager's authority to execute change orders to public works contracts to a maximum of 10% of the original contract amount or $25,000, whichever is greater. In the case of a City Manager executed contract, the total maximum would be $275,000 ($250,000 + 10% or $25,000). In the case of a City Council approved contract, the change order could be more (e.g. 10% of a $3 million contract is $300,000). As stated above, all procurement activity would still be subject to the same bid thresholds and stringent procurement policies and procedures in effect. The proposed Ordinance also includes City Manager authority to authorize emergency contracts up to $100,000. Emergency contracts do not require formal bids. The proposed action will increase the City Manager's authority to approve contracts and agreements in an effort to improve efficiency within City processes, improve the delivery of services necessary for the continued enhancement and preservation of public infrastructure and help meet Strategic Plan objectives. Upon presentation of a contract to the City Manager for signature, staff shall identify budgeted funds including account numbers in the existing fiscal year budget covering the contract period. All contracts shall be reviewed and approved as to form by the City Attorney regardless of amount. The City Manager will prepare and submit to City Council on a quarterly basis a report outlining all contracts approved by the City Manager along with corresponding amounts, purpose/scope, contractor/vendor name, etc. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment), and Goal #7 - Team Santa Ana, Objective #5 (create a culture of innovation and efficiency within the organization), Strategy E (identify best practices and opportunities for process improvement and automation across City departments in order to provide effective and efficient delivery of City services to the community). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action Amend City Manager's Contracting Authority for Non -Public Works and Public Works Contracts December 4, 2018 Page 4 FISCAL IMPACT There will be significant savings of staff time that cannot be quantified at this time. 7 Fuad SjHeiss, P.E., P Executi Director Public orks Agency Exhibit: 1. Proposed Ordinance 2. Survey of Orange County Cities thryn Downs, CPA Executive Director Finance and Management Services Agency SC 12.4.2018 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 2-1, SECTION 2-801, AND SECTION 33-201 OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE CITY MANAGER'S AUTHORITY TO BIND THE CITY TO NON-PUBLIC WORKS AND PUBLIC WORKS CONTRACTS, AND REORGANIZING THE CITY MANAGER'S CONTRACT AUTHORITY UNDER CHAPTER 2, ARTICLE VII OF THE SANTA ANA MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Pursuant to Sections 421(b) (non-public works contracts) and 422(c) (public works contracts) of the City of Santa Ana Charter, the City Council may, by ordinance, authorize the City Manager to bind the City on contracts at amounts that may be established from time to time by the City Council. B. Currently, the City Manager is authorized to bind the City to both non-public works contracts and public works contracts in an amount not to exceed twenty- five thousand dollars ($25,000). All contracts and agreements over $25,000 must be approved by the City Council. C. Regardless of the contract amount, all contracts must comply with the City's Purchasing Policies & Procedures designed to ensure fair and competitive procurement practices. D. On average, the City Council is currently presented with over 250 contracts and agreements for approval annually. The process to obtain City Council approval can be lengthy and requires a substantial amount of City staff time. This process also adversely impacts the City's ability to provide efficient and timely delivery of services to its constituents and businesses. E. Increasing the City Manager's contracting authority for both non-public works and public works contracts and change orders to such contracts will free staff time to devote to other necessary public services. F. Increasing the City Manager's contracting authority for both non-public works and public works contracts and change orders to such contracts will also streamline the process to execute Public Works Agency contracts and agreements for the construction, rehabilitation, maintenance, testing and inspection of public infrastructure, thereby improving the delivery of services Exhibit l ;. 1 SC 12.4.2018 necessary for the continued enhancement and preservation of such public infrastructure. G. Reorganizing the City Manager's contracting authority from three different articles in the Municipal Code into one Article will provide a concise and organized location within the Municipal Code for City Staff and the public to reference this delegation of authority by the City Council to the City Manager, as provided under the City Charter. Section 2. Section 2-1 of Chapter 2, Article I of the Santa Ana Municipal Code is hereby amended to read as follows: Section 3. Section 2-801 of Chapter 2, Article VII of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 2-801. — Reserved. Section 4. Section 33-201 of Chapter 33, Article VIII of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 33-201. — Reserved. emGFgGRGY publiG.... kis GE)Rst etian on a.. amount net e)( -ending the 61 m nf_tPR Section 5. Chapter 2, Article VII of the Santa Ana Municipal Code is hereby amended to read as follow: ARTICLE VII. — RESERVED CITY MANAGER'S CONTRACTING AUTHORITY Section 2-748. — Resewed. City manager's contracting authority. y 1 M ..... Section 3. Section 2-801 of Chapter 2, Article VII of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 2-801. — Reserved. Section 4. Section 33-201 of Chapter 33, Article VIII of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 33-201. — Reserved. emGFgGRGY publiG.... kis GE)Rst etian on a.. amount net e)( -ending the 61 m nf_tPR Section 5. Chapter 2, Article VII of the Santa Ana Municipal Code is hereby amended to read as follow: ARTICLE VII. — RESERVED CITY MANAGER'S CONTRACTING AUTHORITY Section 2-748. — Resewed. City manager's contracting authority. y 1 M SC 12.4.2018 (a) Non-public works contracts The city manager is authorized to bind the City to any one or more written non-public works contract, per vendor, in an amount or amounts not exceeding the sum of one hundred thousand dollars ($100,000.00). For purposes of this section, a non-public works contact shall mean any contact not deemed to be a public works contract under subsection (b)(1). (b) Public works contracts The city manager is authorized to bind the City to any one or more written public works contract, per vendor, in an amount or amounts not exceeding the sum of two hundred and fifty thousand dollars ($250,000.00). For purposes of this section, a public works contact shall be deemed to mean a project for the erection, improvement, and/or maintenance and repair of public buildings, streets, drains, sewers, or parks.. The city manager is authorized to bind the city to any one written contract for emergency public works construction in an amount not exceeding the sum of one hundred thousand dollars ($100,000.00). The city manager of the City of Santa Ana is hereby authorized to bind the City of Santa Ana on change orders to any one public works contract, per vendor, without previous city council approval when such change order for any one (1) public works contract, together with any previously approved change orders for said contract, do not cumulatively amount to an increase of the city's expenditure obligation under said contract of more than ten (10) per cent of the original contract amount, .or the amount of twenty-five thousand dollars ($25,000.00), whichever is the greater. Section 2-749 — Reserved. Section 6. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 7. Effective Date. This ordinance shall become effective thirty (30) days following its second reading and its adoption. 50A-7 SC 12.4.2018 Section 8. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of Santa Ana, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. ADOPTED this —day of December, 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: -z— Sonia Carvalho City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: ABSENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Maria D. Huizar Clerk of the Council City of Santa Ana y 1 m • City or District Authorized CM Limits Population Irvine $1,000,000 276,176 Westminster $175,000 94,476 Newport Beach $120,000 87,182 Long Beach $100,000 478,561 Huntington Beach $100,000 202,648 Anaheim $50,000 357,084 Garden Grove $50,000 176,896 Costa Mesa $50,000 115,296 Fountain Valley $50,000 56,920 San Juan Capistrano $45,000 36,759 La Habra $35,000 62,850 Seal Beach $33,000 25,984 Buena Park $30,000 83,995 Rancho Santa Margarita $30,000 49,329 Orange $29,999 141,952 Brea $25,000 44,890 Cypress $25,000 49,978 La Palma $25,000 15,948 Placentia $25,000 52,755 San Clemente $25,000 65,543 Santa Ana $25,000 338,247 Tustin $25,000 82,334 Fullerton $24,999 144,214 Stanton $20,000 39,470 , 2 • y 50A-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: RESOLUTION AUTHORIZING GRANT FUNDING REQUEST UNDER MEASURE M2 COMPREHENSIVE TRANSPORTATION FUNDING PROGRAM (STRATEGIC PLAN NO. 6, 1G) dTf MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1'' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing the City of Santa Ana to submit applications for funding consideration under the Measure M2 Comprehensive Transportation Funding Program. 2. Direct staff to amend the Seven -Year Capital Improvement Program to incorporate the new Comprehensive Transportation Funding Program projects. DISCUSSION The Orange County Transportation Authority (OCTA) issued a call for projects under the Measure M2 Comprehensive Transportation Funding Program (CTFP) for Fiscal Year (FY) 2019/20. Funding in the amount of $32 million will be awarded on a countywide competitive basis for two programs: (a) Regional Capacity and (b) Traffic Signal Synchronization. Adoption of the recommended resolution and amending the Seven -Year Capital Improvement Program is a qualifying requirement for grant eligibility. The City will be submitting two applications totaling $1,170,000 in grant fund requests for the Regional Capacity program, which requires a match rate commitment of 25 percent. Existing and future local funding sources, including but not limited to Transportation System Improvement Area Fund (TSIA) and Gas Tax Fund, will be used to provide the required matching funds for the recommended projects. Staff is requesting authorization to apply for the following projects: RECOMMENDED PROJECTS PHASE GRANT - $ FY Bristol Street Improvements: Right -of -Way $792,000 19/20 Memory Lane Intersection Fairview Street Improvements Design $378,000 19/20 from 17th Street to Trask Avenue 5513-1 Resolution — FY 2019/20 Measure M2 CTFP Grant Applications December 4, 2018 Page 2 Staff carefully considered the grant funding criteria and strategically selected projects that will score high enough, region -wide, to be considered for funding. Given the need for these street improvements and the project eligibility requirements defined by OCTA, staff recommends that the City Council adopt a resolution authorizing submittal of these project applications for funding consideration and direct staff to incorporate the projects into the Seven -Year CIP. Staff anticipates a response to the grant applications in March 2019 and confirmation of any grant funds via OCTA Board action in May 2019. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There i, iso fiscal impact associated with this action. Executi a Director Public VWorks Agency FS/EWG/KN/HG Exhibit: 1. Resolution 55B-2 jmf 11/7/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE COMPREHENSIVE TRANSPORTATION PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows; A. The City of Santa Ana desires to implement the transportation improvements listed below. B. The City of Santa Ana has been declared by the Orange County Transportation Authority to meet the eligibility requirements to receive Measure M2 "Fair Share" funds. C. The City's Circulation Element is consistent with the County of Orange Master Plan of Arterial Highways. D. The City of Santa Ana will provide matching funds for each project as required by the Orange County Comprehensive Transportation Funding Programs Guidelines. E. The Orange County Transportation Authority intends to allocate funds for transportation improvement projects within the incorporated cities and the County. F. The City of Santa Ana will not use Measure M2 funds to supplant Developer Fees or other commitments. G. The City of Santa Ana will use Arterial Highway Rehabilitation Funding as a supplement to the existing pavement management program. H. The City of Santa Ana will include all projects funded by M2 Net Revenues in its seven-year Capital Improvement Program, as part of the Measure M2 Ordinance eligibility requirements. Section 2. The City Council of the City of Santa Ana hereby approves the formal submissions of the projects described below to the Orange County Transportation Resolution No. 2018 -XXX EXHIBIT 1 Page 1 of 3 55B-3 jmf 11/7118 Authority for funding under the OCTA's Comprehensive Transportation Funding Program and requests that the OCTA allocate funds in the amounts specified In the City's submissions. Said funds shall be matched by funds from Santa Ana as required and shall be used as supplemental funding to aid the City in the improvement of the following street(s). "ICE" shall mean Intersection Capacity Enhancement, and "ACE" shall mean Arterial Capacity Enhancement, PROJECT PROGRAM FY Bristol St. and Memory Ln. Intersection Improvements ICE 19/20 Fairview St. Improvements from 171h St. to Trask Ave. ACE 19/20 Section 3. The City of Santa Ana authorizes a formal amendment to the seven- year Capital Improvement Program to add projects approved for Measure M2 funding upon approval from the Orange County Transportation Authority Board of Directors. Section 4. The City Council appoints the City Manager, or the Executive Director of the Public Works Agency or his or her designee, as agent for the City of Santa Ana to conduct all negotiations, and execute and submit all documents, including but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for allocation of the requested funds to Santa Ana. Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: John M. Funk Assistant City Attorney Miguel A. Pulido Mayor 55B-4 Resolution No. 201 S -XXX Page 2 of 3 Imf 11/7/18 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018 - to be the original resolution adopted by the City Council of the City of Santa Ana on .2018. Date: Clerk of the Council City of Santa Ana 55B-5 Resolutlon No. 2018 -XXX Page 3 of 3 55B-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: DECEMBER 4, 2018 Warner Avenue to St. Andrew Place TITLE: APPROVED ADOPT A RESOLUTION AUTHORIZING ❑ As Recommended THE SUBMISSION OF APPLICATIONS EI As Amended Or ❑ Ordinance on 15' Reading FOR BICYCLE CORRIDOR ❑ Ordinance on 2n° Reading IMPROVEMENT PROGRAM GRANTS ❑ Implementing Resolution (STRATEGIC PLAN NO. 1, 313) ❑ Set Public Hearing For CONTINUED TO r FILE NUMBER CI 1ANAGER RECOMMENDED ACTION Adopt a resolution authorizing the Executive Director of the Public Works Agency to submit six applications for Bicycle Corridor Improvement Program grants. DISCUSSION The Orange County Transportation Authority (OCTA) issued a call for Bicycle Corridor Improvement Program (BCIP) applications for federal Fiscal Years 2019-20 through 2023-24. BCIP is a federally funded program which provides construction funds for projects that improve safety and convenience for bicycle commuters. In response to this call, staff prepared and submitted six applications for the following projects: • Protected Bike Lanes on Bristol Street: Warner Avenue to St. Andrew Place • Protected Bike Lanes on Bristol Street: St. Andrew Place to Edinger Avenue • Protected Bike Lanes on Bristol Street: First Street to Washington Avenue • Protected Bike Lanes on Bristol Street: Civic Center Drive to Washington Avenue • Protected Bike Lanes on Warner Avenue: Oak Street to Grand Avenue • Protected Bike Lanes on Memory Lane: The City Drive to Flower Street The grant program guidelines require submission of an authorizing resolution (Exhibit 1) to complete the applications. The project descriptions include estimated costs (Exhibit 2) and the general locations of the projects shown in the project location map (Exhibit 3). The proposed projects will provide needed bicycle infrastructure, including protected bike lanes. These projects will improve traffic safety, encourage active transportation, and increase mobility. Although the application deadline is November 15, 2018, the grant program guidelines allow the authorized resolution to be submitted after the application deadline. 55C-1 Resolution Authorizing Grant Applications Bicycle Corridor Improvement Program December 4, 2018 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #1 — Community Safety, Objective #3 (promote fiscal accountability to ensure financial responsibility at all levels of the organization), Strategy B (promote ongoing efforts to obtain grant funding for activities that will assist in preventing, enforcing and reducing criminal activity and traffic collisions). ENVIRONMENTAL IMPACT Pursuant to Section 15061(b)(3) of the California Environmental Quality Act, this action is exempt from further review as there is no potential for any environmental impact. FISCAL IMPACT For any project that is approved for funding, the BCIP Program will cover 88 percent of the eligible costs and the City will need to provide the remaining 12 percent match. If all projects are funded, $1,360,130 will provide 12% of the total project cost as match to the requested $9,974,284 in OCTA BCIP funds for a total project cost estimated to be $11,334,414. The City's portion of Measure M Fairshare or other funding source will be budgeted in a future Capital Improvement Program in the Select Street Construction Fund (Account No. 05917660-66220). APPROVED AS TO FUNDS AND ACCOUNTS: p 1A�. Fuad S. eiss, PE, PLS K thryn Do ns, CPA #15 o d Executive Director Executive Director Public Wo ks Agency Finance and Management Services Agency Exhibits: 1. Resolution 2. Project Description & Cost 3. Location Map 55C-2 Jmf 11/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING APPLICATION FOR FUNDS FOR THE BICYCLE CORRIDOR IMPROVEMENT PROGRAM FUNDED WITH CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM FUNDING UNDER THE FIXING AMERICA'S SURFACE TRANSPORTATION FEDERAL TRANSPORTATION ACT WHEREAS, the United States Congress enacted the Fixing America's Surface Transportation (FAST) Federal Transportation Act on December 4, 2015, which mal<es Congestion Mitigation and Air Quality Improvement Program (CMAQ) funds available to the Orange County Transportation Authority (OCTA); and WHEREAS, OCTA has established the procedures and criteria for reviewing proposals; and WHEREAS, the City of Santa Ana possesses authority to nominate bicycle projects funded using Congestion Mitigation and Air Quality Improvement Program funding and to finance, acquire, and construct the proposed projects; and WHEREAS, by formal action, the City Council of the City of Santa Ana authorizes the nomination of the projects listed below, including all understanding and assurances contained therein, and authorizes the person identified as the official representative of the City to act in connection with the nomination and to provide such additional information as may be required; and WHEREAS, the City of Santa Ana will maintain and operate the property acquired, developed, rehabilitated, or restored for the life of the resultant facility(ies) or activity; and WHEREAS, with the approval of the California Department of Transportation (Caltrans) and/or OCTA, the City of Santa Ana or its successors in interest in the property may transfer the responsibility to maintain and operate the property; and WHEREAS, the City of Santa Ana will give Caltrans andlor OCTA's representatives access to and the right to examine all records, books, papers or documents related to the bicycle projects; and WHEREAS, the City of Santa Ana will cause project work to commence within six months following notification from the State or OCTA that funds have been authorized to proceed by the Federal Highway Administration or Federal Transit Administration and that the projects will be carried to completion with reasonable diligence; and Exhibit 1 Resolution No. 2018 -XXX Page 1 of 3 55C-3 jmf 11/14/18 WHEREAS, the City of Santa Ana commits $1,360,130 of Measure M Fairshare or other funding source to be identified in future Capital Improvement Program and will provide 12% of the total project cost as match to the requested $9,974,284 in OCTA CMAQ funds for a total project cost estimated to be $11,334,414; and WHEREAS, the City of Santa Ana may elect to commit additional funds to the projects to fund an expanded scope which provides additional quantifiable benefits. The City is required to notify OCTA to grant approval prior to commencing on the additional scope; and WHEREAS, the City of Santa Ana will comply where applicable with provisions of the California Environmental Quality Act, the National Environmental Policy Act, the American with Disabilities Act, Federal Title VI, Buy America provision, and any other federal, state, and/or local laws, rules and/or regulations; and WHEREAS, the City Council of the City of Santa Ana authorizes the execution of any necessary cooperative agreements between the City and OCTA to facilitate the delivery of the projects; and WHEREAS, the City of Santa Ana will amend the agency Capital Improvement Program (CIP) to include the projects if selected for funding. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City of Santa Ana hereby authorizes the Executive Director of Public Works as the official representative of the City to apply for the Congestion Mitigation and Air Quality Improvement Program funding under the Fixing America's Surface Transportation Act for the following projects: • Protected Bike Lanes on Bristol Street: Warner Avenue to St. Andrews Place • Protected Bike Lanes on Bristol Street: St. Andrews Place to Edinger Avenue • Protected Bike Lanes on Bristol Street: First Street to Civic Center Drive • Protected Bike Lanes on Bristol Street: Civic Center Drive to Washington Avenue • Protected Bike Lanes on Warner Avenue: Oak Street to Grand Avenue • Protected Bike Lanes on Memory Lane: The City Drive to Flower Street Section 2. The City of Santa Ana agrees to fund its share of the project coats and any additional costs over the identified programmed amount. Resolution No. 2018 -XXX Page 2 of 3 55C-4 jmf 11/14/18 Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of , 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By. lYV T John M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018 - to be the original resolution adopted by the City Council of the City of Santa Ana on .2018. Date: Clerk of the Council City of Santa Ana 55C-5 Resolution No. 2018-)= Page 3 of 3 55C-6 Bicycle Corridor Improvement Program Bicycle Facilities Locations Recommended for Grant Application FY 2018-2019 Project Description Cost Bristol Street Protected Bike Install protected/buffered bike lanes and lane $2,003,873 Lanes: Phase II narrowing on Bristol Street from Warner Avenue to St. Andrews Place. Bristol Street Protected Bike Install protected/buffered bike lanes and lane $1,341,630 Lanes: Phase III narrowing on Bristol Street from St. Andrews Place to Edinger Avenue. Bristol Street Protected Bike Install protected/buffered bike lanes and lane $1,918,593 Lanes: Phase V narrowing on Bristol Street from First Street to Civic Center Drive. Bristol Street Protected Bike Install protected/buffered bike lanes and lane $1,105,380 Lanes: Phase IV narrowing on Bristol Street from Civic Center Drive to Washington Avenue Warner Avenue Protected Bike Install protected/buffered bike lanes and lane $1,442,205 Lanes narrowing on Warner Avenue from Oak Street to Grand Avenue. Memory Lane Protected Bike Install protected/buffered bike lanes and lane $3,522,733 Lanes narrowing on Memory Lane from The City Drive to Flower Street. Total $11,334,414 Exhibit 2 55C-7 55C-8 Memory Lane: The City Drive to Flower Street Bristol Street: Washington Avenue to Civic Center Drive 22 I � Bristol Street: St. Andrews Place to Edinger Avenue 1 Lu Bristol Street: Warner Avenue to St. Andrews Place SANTA ANA � City Council Agenda Date FU9LCMRKS AGERCVA,Ex,y December 4, 21 Bristol Street: Washington Avenue to Civic Center Drive 155 Fairhaven r � 215i o' 17th tre t ° M Washington Ove PlBI® Blvd. _--"I--I-------__ Warner Avenue: Oak Street to Grand Avenue RESOLUTION AND AUTHORIZATION FOR 6 BICYCLE CORRIDOR IMPROVEMENT PROGRAM APPLICATIONS 55C-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: ADOPT RESOLUTIONS TO SUPPORT THE REDUCTION OF GREENHOUSE GAS EMISSIONS BY SUPPORTING THE REDUCTION OF PLASTIC STRAW WASTE AND BY ENCOURAGING RESIDENTS TO CONCURRE MORE HEALTHY PLANT - BASED FOODS IN THEIR DIET (STRATEGIC PLAN NO.5) 1 CITYVAANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on is' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution supporting the reduction of the use of plastic drinking straws and encouraging local businesses to provide alternative options to reduce straw waste in the City; and 2. Adopt a resolution encouraging Santa Ana residents to include more healthy plant -based foods in their diet and improve efforts to reduce greenhouse gas emissions. DISCUSSION California has adopted a wide variety of regulations aimed at reducing the State's greenhouse gas (GHG) emissions. In addition to the efforts at the State level, local governments have broad influence and, in some cases, exclusive jurisdiction over activities that contribute to significant GHG emissions through their planning and permitting processes, local ordinances, outreach and education efforts, and municipal operations. As a result, many communities throughout the state are taking responsibility for planning to reduce energy use and emissions. Through proactive measures in land use, transportation, energy efficiency, green building, waste diversion, water conservation and more, local governments help residents and businesses save money while improving quality of life and reducing emissions in their communities. In 2007, the City of Santa Ana signed the U.S. Mayors' Climate Protection Agreement, committing to reduce GHG emissions. Santa Ana, in addition to more than 1,000 local governments worldwide, joined International Council for Local Environmental Initiatives (ICLEI) — Local Governments for Sustainability, an association for local governments to share knowledge and successful strategies toward increasing local sustainability. ICLEI provides a CAP framework and methodology for local governments to identify and reduce GHG emissions: (1) Conduct an inventory and forecast of local GHG emissions; (2) Establish GHG emissions reduction targets; (3) Develop a CAP for achieving the emissions reduction targets; (4) Implement the CAP; and (5) Monitor and report on progress. 55D-1 Adopt Resolutions to Support the Reduction of Greenhouse Gas Emissions and Reduce Plastic Straw Waste December 4, 2018 Page 2 On December 15, 2015, the Santa Ana City Council approved a Climate Action Plan (CAP) to demonstrate its leadership in sustainability efforts. By completing the CAP, the City developed a roadmap to save energy and resources, improve quality of life, and quantify achievement of Council -approved greenhouse gas (GHG) emissions reduction goals. With a 2008 baseline of 5.5 metric tons of CO2 emissions per capital, Council approved reduction targets at 15 percent of 2008 levels by 2020, and 30 percent of 2008 levels by 2035. Following direction received on the August 15, 2018 Legislative Affairs, Ethics, Transparency and Communications (LAETC) Council Committee meeting, the City Manager is recommending that the City Council adopt two supporting resolutions to further the goals of the CAP and place the City on a path to reduce annual community -wide GHG emissions by 15% below 2008 baseline emission levels by 2020 and 30% by 2035. This recommendation reaffirms Mayor Pro Tem Martinez's discussion of a resolution to support green plant foods to reduce greenhouse gas emissions during comments on the October 17, 2018 LAETC meeting. At that same meeting, Councilmember Sarmiento concurred and recommended a resolution to reduce straw waste in the City. The recommendation is to adopt a resolution supporting the reduction of the use of plastic drinking straws and encouraging local businesses to provide alternative options to reduce straw waste in the City. The State of California recently adopted Assembly Bill 1884, which goes into effect on January 1, 2019 and restricts the use of plastic straws at sit-down restaurants. Neighboring municipalities and businesses throughout the State have since sought to reduce the use of plastic straws through resolutions, ordinances or updated businesses policies. The next recommendation is to adopt a resolution encouraging Santa Ana residents to include more healthy plant -based foods in their diet and improve efforts to reduce greenhouse gas emissions. This resolution would be an extension of the recent efforts that the State of California has taken to establish policies and programs to preserve and protect its environment, combat climate change, provide for the health and well-being of all people, and show compassion to and support the humane treatment of animals. Specifically, numerous studies have shown that increasing the consumption of plant -based foods and reducing consumption of meat and dairy serve to protect and preserve the environment by reducing the impact on greenhouse gas emissions, improving water conservation, and reducing habitat degradation and deforestation. The resolutions will also further the efforts outlined in the CAP, which seeks, through proactive measures, ways for the City to take responsibility to address waste diversion and to help residents and businesses to save money while improving the quality of life in the community. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement & Sustainability. ENVIRONMENTAL IMPACT There are no environmental impacts associated with this action 55D-2 Adopt Resolutions to Support the Reduction of Greenhouse Gas Emissions and Reduce Plastic Straw Waste December 4, 2018 Page 3 FISCAL IMPACT There is no fiscal impact at this time. Exhibits: 1. Resolution Supporting the Reduction of the Use of Plastic Drinking Straws and Encouraging Local Businesses to Provide Alternative Options to Reduce Straw Waste 2. Resolution Encouraging Santa Ana Residents to Include More Healthy Plant -based Foods In Their Diet and Improve Efforts To Reduce Greenhouse Gas Emissions 55D-3 55D-4 EXHIBIT 1 SC 11.05.2018 RESOLUTION NO. 2018-xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING THE REDUCTION OF THE USE OF PLASTIC DRINKING STRAWS AND ENCOURAGING LOCAL BUSINESSES TO PROVIDE ALTERNATIVE OPTIONS TO REDUCE STRAW WASTE IN THE CITY OF SANTA ANA WHEREAS, it is estimated that in the United States that the average person uses 1.6 plastic straws per day, which results in 500 million plastic straws thrown out daily; and WHEREAS, plastic straws are not compostable or biodegradable, but instead photodegrade into smaller pieces which are then ingested by land and sea animals and can eventually make their way into our food chain and clean water supply; and WHEREAS, alternatives to the use of plastic straws include the use of paper straws which decompose within 45-60 days; and WHEREAS, recognizing the negative environmental impact of plastic straws, many restaurants and other establishments in California and around the United States have voluntarily stopped providing plastic straws or implemented a "Straws upon Request" policy; and WHEREAS, the State of California has adopted Assembly.Bill 1884 which shall go into effect on January 1, 2019 and restricts the use of plastic straws in sit-down restaurants; and WHEREAS, neighboring municipalities and businesses throughout the State have sought to reduce the use of plastic straws through resolutions, ordinances or updated business policies; and WHEREAS, the City of Santa Ana's Climate Action Plan seeks through proactive measures ways for the City to take responsibility to address waste diversion and to help residents and businesses to save money while improving the quality of life in the community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City of Santa Ana hereby supports the reduction of the use of plastic drinking straws in the City of Santa Ana and encourages local businesses to Resolution No. 2018-xxx Page 1 of 2 55D-5 SC 11.05.2018 provide alternative options to reduce plastic straw waste and promote environmentally friendly and conscientious practices in our community. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of December, 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: By:3e�✓'%!{ Sonia R. Carvalho City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018-xxx to be the original resolution adopted by the City Council of the City of Santa Ana on December 2018. Clerk of the Council City of Santa Ana Resolution No. 2018-xxx Page 2 of 2 5501-6 EXHIBIT 2 SC 11.05.2018 RESOLUTION NO. 2018-xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ENCOURAGING SANTA ANA RESIDENTS TO INCLUDE MORE HEALTHY PLANT - BASED FOODS IN THEIR DIETAND IMPROVE EFFORTS TO REDUCE GREENHOUSE GAS EMISSIONS WHEREAS, the State of California has taken significant steps to establish policies and programs to preserve and protect its environment, combat climate change, provide for the health and well-being of all people, and show compassion to and support the humane treatment of animals; and WHEREAS, California continues to lead the nation in adopting practices and policies to protect and preserve the environment and natural resources, and as the world's population continues to grow, California should continue to demonstrate how the world's population can reduce its impact on the environment; and WHEREAS, a growing amount of research has demonstrated the health, environmental, and humane benefits of a plant -based diet; and WHEREAS, reports published by the National Institutes of Health, public health organizations, and colleges and universities have extolled the virtues and benefits of a plant -based diet and the benefits it presents medically, societally, and environmentally; and WHEREAS, a plant -based diet is one that emphasizes plant -based foods in a person's diet, making foods such as vegetables, fruits, legumes, beans, seeds, and whole grains the centerpiece of a meal; and WHEREAS, plant -based diets have been proven to help lower cholesterol, increase the consumption of fiber and naturally occurring vitamins and minerals, and lower the risk of cancer, heart disease, diabetes, and other chronic health conditions; and WHEREAS, numerous scientific studies have shown that increasing the consumption of plant -based foods and reducing consumption of meat and dairy serve to protect and preserve the environment by reducing the impact on greenhouse gas emissions, improving water conservation, and reducing habitat degradation and deforestation; and WHEREAS, increased plant -based food production helps improve the world's ability to meet future food supply demands; and Resolution No. 2018-xxx Page 1 of 3 55D-7 SC 11.05.2018 WHEREAS, the City of Santa Ana is committed to improving the health and well- being of its residents. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City of Santa Ana hereby recognizes that making plant -based foods the emphasis of one's diet has been proven to have a positive impact on the environment, individual health, and society as a whole, and therefore encourages the citizens of Santa Ana, along with all Californians, to include more plant -based foods in their diet. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this APPROVED AS TO FORM: By:.�,t l5 Sonia R. Carvalho City Attorney day of December, 2018. AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: 55D-8 Miguel A. Pulido Mayor Resolution No. 2018-xxx Page 2 of 3 SC 11.05.2018 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018-xxx to be the original resolution adopted by the City Council of the City of Santa Ana on December_, 2018. Date: Clerk of the Council City of Santa Ana 55D-9 Resolution No. 2018-xxx Page 3 of 3 55D-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: ADOPT RESOLUTION AUTHORIZING A GRANT APPLICATION TO THE DEPARTMENT OF NATURAL RESOURCES FOR ADVANCED METERING INFRASTRUCTURE [NONGENERAL FUND] (STRATEGIC PLAN NO. 6, 1G) M�:� 615 r RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing the Executive Director of Public Works Agency to submit a $4,000,000 grant application for the Advanced Metering Infrastructure project to the California Department of Natural Resources. DISCUSSION On June 27, 2018, Governor Brown signed the fiscal year 2018-19 State Budget which included $4,000,000 in funding for the City of Santa Ana's Advanced Meter Infrastructure (AMI) project. The City's proposed AMI project involves the replacement of the City's existing water meters with new smart meters which are capable of being read automatically and provide the consumer with up-to-date information on their water use. The proposed project is extensive involving the replacement of approximately 45,000 meters, the integration of new software and database systems and the installation of a network of data collectors and transmitters. Staff has completed a feasibility study and is in the process of developing a comprehensive implementation plan. Receipt of this grant will allow the City to procure and integrate an AMI system, install the network of data collectors and transmitters and install the initial set of smart meters. The California Natural Resources Agency has been delegated the responsibility for the administration of the grant project and setting up necessary procedures for the City to receive the $4,000,000 grant. The procedures established by the Natural Resources Agency require submission of an authorizing resolution (Exhibit 1) to complete a formal application. 55E-1 Resolution Authorizing a Grant Application to the Department of Natural Resources for Advanced Metering Infrastructure December 4, 2018 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and mair assets), Strategy G (develop and implement coordination with the Community Investment and ENVIRONMENTAL IMPACT Iain a Community Investment Plan for all City the City's Capital Improvement Program in Deferred Maintenance Plans There is no environmental impact associated with this action. FISCAL IMPACT At.this time there is no fiscal impact associated with this Council action. The City is pursuing a grant in the amount of $4,000,000 to implement the proposed Advanced Metering Infrastructure Proj ct. When awarded, that amount would be appropriated into the City's budget as part of a futuCouncil action to accept the funds. 0 i. Sweiss, PE, PLS :ive Director Works Agency FS/NS/RR Exhibit: 1. Authorizing Resolution 55E-2 jmf 10/31/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE ADVANCED METERING INFRASTRUCTURE PROJECT WHEREAS, the Legislature and Governor of the State of California have approved grant funding for the project shown above; and WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of this grant project, establishing necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require a resolution certifying the approval of application(s) by the applicant's governing board before submission of said application(s) to the State; and WHEREAS, the applicant, if selected, will enter into an agreement with the State of California to carry out the project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City Council approves the filing of an application fcr grant funding for the City's Advanced Metering Infrastructure Project. Section 2. The City Council approves the acceptance of general fund allocation for local assistance for the above project. Section 3, The City Council certifies that the City of Santa Ana, as the applicant, understands the assurances and certification in the Project Information Form. Section 4. The City Council certifies that the City will have sufficient funds to operate and maintain the project or will enter into an agreement with another entity to perform said operation and maintenance. Section S. The City Council certifies that the City has reviewed and understands the General Provisions contained in the Project Agreement shown in the Procedural Guide. Section 6. The City Council appoints Nabil Saba, Water Resources Manager, or his designee, as agent to conduct all negotiations, execute and submit all documents including, but not limited to Project Information Form, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project. Resolution No. 2018 -XXX Page 7 of 2 EXHIBIT 1 55E-3 jmf 10/31/18 Section 7. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 4th day of December, 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:n F ohM. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018- to be the original resolution adopted by the City Council of the City of Santa Ana on December 4, 2018. Date: Clerk of the Council City of Santa Ana 55E-4 Resolution No. 2048 -XXX Page 2 of 2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: APPROVE A RESOLUTION EXTENDING CONDITIONAL USE PERMIT NOS. 2016-29, 2016-30 AND 2016-33 FOR THE MAJESTY RESTAURANT LOCATED AT 5015 WEST EDINGER AVENUE, UNIT V {STRATEGIC PLAN NO. 3,2) CITYkj•NAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution approving a one-year extension of Conditional Use Permit Nos. 2016-29, 2016-30 and 2016-33 for the Majesty Restaurant located at 5015 West Edinger Avenue, Unit V. DISCUSSION In November 2016, the City Council affirmed the Planning Commission's decision to approve three conditional use permits for The Majesty Restaurant located at 5015 West Edinger, Unit V. Specifically, the conditional use permits were to allow the sale and consumption of alcoholic beverages within an adjacent tenant space that the restaurant leased (Unit Z), allow the after-hours operation of the restaurant (until 2 a.m.), and allow a banquet facility within the existing restaurant. Due to a transition in management and ownership of the restaurant, the applicant has been unable to move forward with the permitting for the restaurant expansion. As a result, the entitlements for the site are ready to expire. Pursuant to Section 41-647 of the Santa Ana Municipal Code (SAMC), conditional use permits (CUP) automatically become void should the property owner fail to institute an action to comply with the provisions of the CUP within two years of its approval. This section of the code also allows the property owner to request an extension of the entitlement up to a period of three years from the date of expiration. Although the permitting process has yet to begin, the applicant would like to maintain the entitlements for the conditional use permit and is requesting a one-year extension of the CUP. The applicant has secured the expertise of an architect and is expecting to submit plans into building plan check before the end of the year. Since the applicant is planning to move forward with the project, the Planning Division recommends that the entitlements for the restaurant be extended by a period of one year from the date of City Council approval. 55F-1 Extension of CUP Nos. 2016-29, 2016-30 and 2016-33 The Majesty Restaurant December 4, 2018 Page 2 CEQA COMPLIANCE In accordance with the California Environmental Quality Act, this project is exempt from CEQA per Section 15061 (b)(3). This determination has been made as it has been found that the proposed action does not have the potential to cause a significant effect on the environment. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). FISCAL IMPACT There is no fiscal impact associated with this action. O ` Minh Thai Executive Director Planning and Building Agency VF: s1RFCA\CUP Nos. 2016-29,30 & 33 extension Exhibit: 1. Resolution 55F-2 LS 12.4.18 RESOLUTION NO. 2018-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA EXTENDING CONDITIONAL USE PERMIT NOS. 2016-29, 2016-30 AND 2016-33 FOR ONE YEAR FOR THE MAJESTY RESTAURANT LOCATED AT 5015 WEST EDINGER AVENUE, UNIT V BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In November of 2016, the City Council affirmed the Planning Commission's recommendation to approve Conditional Use Permit No. 2016-29 to allow The Majesty Restaurant to sell alcoholic beverages for on -premises consumption within a tenant space that the restaurant expanded into at 5015 West Edinger Avenue, Unit V. B. Further, in November of 2016, the City Council also affirmed the Planning Commission's recommendation to approve Conditional Use Permit No. 2016-30 to allow The Majesty Restaurant the ability to operate after hours (until 2 a.m.) at 5015 West Edinger Avenue, Unit V. C. Finally, in November of 2016, the City Council affirmed the Planning Commission's recommendation to approve Conditional Use Permit No. 2016-33 to allow The Majesty Restaurant the ability to operate a banquet facility at the restaurant located at 5015 West Edinger Avenue, Unit V. D. Due to a change in ownership and management, the Applicant has been unable to move forward with the improvements on-site and is requesting an extension for the conditional use permits. It is the Planning Division's policy to recommend no more than one-year extensions, in an effort to encourage the timely construction of previously approved projects. E. The Applicant has secured the necessary team of experts, including an architect and project manager, to prepare construction plans for submittal into Building plan check. The Applicant expects to submit into Building plan check by the end of the year and start construction early next year. F. Pursuant to City of Santa Ana Municipal Code Section 41-647, where construction does not commence, these types of entitlements expire after two (2) years unless the applicant applies for, and the City Council approves, an extension, Resolution No. 2018-xx 55F-3 Page 1 of 3 G. The extension request came before the City Council on December 4, 2018. H. In accordance with the California Environmental Quality Act, this project is exempt from CEQA per Section 15061(b)(3). This determination has been made as it has been determined that the proposed action does not have the potential to cause a significant effect on the environment. Section 2. Conditional Use Permit Nos. 2016-29, 2016-30 and 2016-33 are hereby extended for a period of one (1) year from the date of the original approval to November 2019. This decision is based upon the evidence submitted, which includes, but Is not limited to: the Request for Council Action dated December 4, 2018, and exhibits attached thereto, and any public testimony, all of which are incorporated herein by this reference. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of December, 2018. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:1 Lisa Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers Resolution No. 2018 -XXX Page 2 of 3 Miguel A. Pulido Mayor 55F-4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018- to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date; Clerk of the Council City of Santa Ana Resolution No. 2018-xx 55F-5 Page 3 of 3 55F-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 4, 2018 TITLE: RECEIVE AND FILE CITY OF SANTA ANA GENERAL PLAN UPDATE - STATUS REPORT AND POLICY FRAMEWORK DOCUMENT (STRATEGIC PLAN NO. 3, 2A) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file City of Santa Ana General Plan Policy Framework report including Vision Statement, Core Values, Goals, Policies and draft Focus Area Map. DISCUSSION Background The General Plan Update was reinitiated in November 2015 as a result of a key strategy identified as part the 5 -Year Strategic Plan. This Plan identified completion of a comprehensive update of the Citys General Plan including the development of policies and implementation measures that directly relate to the goal of equitable economic development. In response, the City's Planning Division conducted an extensive community outreach program between December 2015 and July 2016 (Phase 1). Designed to define the character of our city, the first outreach effort asked community members what they enjoy most about their neighborhood and City as a whole. Participants were also prompted to describe their greatest concerns. Contributors included residents, local leaders, the business community, and advocacy group representatives. In addition, a summer program led by local youth focused on youth concerns. In all, over 40 public meetings and events were held with over 450 participants. The results were summarized in the Santa Ana General Plan Update Community Outreach Executive Summary distributed to City Council in October 2016. In order to hold the plan accountable to the community's stated goals and vision as part of the first phase, a General Plan Advisory Group (GPAG) was formed as part of Phase II in January 2017 to review, extrapolate, and incorporate the input from the initial community outreach effort. The 18 individuals invited to participate in the General Plan Advisory Group reflect our diverse community with senior, youth, business, neighborhood, and other community organizations. The General Plan Advisory Group also included members of City Boards and Commissions. As a 65A-1 City of Santa Ana General Plan Update December 4, 2018 Page 2 result of 14 meetings held in 2017, the GPAG developed a vision for the future of Santa Ana and identified core values of special importance to the community. In addition, the GPAG reviewed and refined draft goals and policies for each General Plan element and produced a conceptual focus area map. In order to affirm direction, staff presented a summary report of the advisory group's work product to the City Council in June 2018 and highlighted the Vision and Core Values at a separate meeting in July 2018. Following the City Council affirmation of the Vision and Core Values, staff held a series of pop-up events throughout the City to share the statement and values with the community. The community was supportive of the vision and the various pop-up events ultimately highlighted each core value. In Summer 2018, staff formed an interagency General Plan Technical Advisory Committee (GP TAC) with representatives from the City Manager's Office, City Attorney's Office, Community Development Agency, Parks, Recreation and Community Services, Public Works, Police Department and key representatives from the Orange County Fire Authority (OCFA). The role of the GP TAC is to provide informed feedback on draft goals, policies, and programs while assisting in resource collection and peer review of background data and maps in respective areas of specialty. To date, a total of seven meetings have been held to cover each General Plan element and subject area. Results of the initial community outreach effort and the work of the GPAG and GPTAC were used to develop the General Plan Policy Framework which serves as an outline to guide the General Plan document. The Policy Framework contains three parts, each section of which was derived from the work products produced by the Community Outreach Executive Summary, General Plan Advisory Group, General Plan Technical Advisory Committee, and requirements from the State Office of Planning and Research (OPR). 1) General Plan Purpose 2) Santa Ana's Shared Vision and Focus Areas 3) Element Goals and Policies The attached Policy Framework includes an introduction to the General Plan which describes the purpose behind the document, Vision Statement, Core Values and Goals and Policies for each of the proposed General Plan Elements. A separate Implementation Plan will specify programs, implementation actions, responsible agencies, financial resources, timelines and serve as a measurement tool to ensure successful execution of the Goals and Policies established as part of the New General Plan. The following are key milestones and next steps towards completion of the General Plan: • EIR Technical Studies Kickoff (December 2018) • Land Use Focus Area Charrettes (January/February 2019) • EIR Project Description Complete (March 2019) • Draft General Plan (Summer 2019) • Draft EIR - Circulate/Public Review (October -December 2019) 65A-2 City of Santa Ana General Plan Update December 4, 2018 Page 3 • Final EIR -Complete (February 2020) • Adoption of General Plan Update (March 2020) The Planning & Building Agency remains committed to completion of the update to the Santa Ana General Plan. Staff will continue to explore additional funding sources for the General Plan Update similar to the SCAG grant and use of AQMD funds as they become available. Based on the work effort and funding allocation needs, staff anticipates adoption of the General Plan and Final Environmental Impact Report (EIR) in 2020. STRATEGIC PLAN ALIGNMENT The General Plan Update supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (Create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance Policies), Strategy A (Complete a comprehensive update of the City's General Plan including the development of policies and implementation measures that directly relate to equitable economic development). FISCAL IMPACT There is no fiscal impact associated with this action. Minh Thai Executive Director Planning and Building Agency Exhibit: 1. General Plan Policy Framework 65A-3 65A-4 HEAL EQUITY i ---,NTA 65A-6 INTRODUCTION We're excited to introduce the Santa Ana General Plan: A Shared Vision. This policy framework serves as an outline to our New General Plan which will comply with State law and serve as a blueprint to guide the future development of our City. The Santa Ana General Plan will serve as a tool for achieving our Shared Vision by communicating the vision, values and goals for physical development, sustainability and quality of life for the entire community. Santa Ana is the world-class capital of Orange County that celebrates diversity, neighborhoods, cultural heritage and will be the leader in creativity, sustainability, and that will continue to foster a sense of community. Santa Ana embraces its history and promotes sustainability by creating open space, investing in education, celebrating neighborhoods, and supporting equitable business opportunities. These affirmative statements were drafted by our own community and refined by our General Plan Advisory Group. These aspirations are forward facing, ambitious, and inspiring. They are a reflection of our community values and contain emergent themes of sustainability, culture, diversity, and equity. Our community of ambassadors expects us to follow through with our promise with a New General Plan that holds every stakeholder, business and resident responsible for: Our Shared Vision The Policy Framework contains three components: 1) General Plan Purpose, 2) Santa Ana's Shared Vision, and 3) Element Goals and Policies. GENERAL PLAN PURPOSE Plan Organization Santa Ana's General Plan will be a dynamic working document with new elements to embrace forward looking topics, practices, and philosophies. The new document is based on a Vision Statement and Five Core Values established as part of an extensive community outreach effort. The plan will serve to reflect an inclusive community effort. The Santa Ana General Plan will be organized by three Sections and will cover all seven required elements as required by State Law. These sections are Services and Infrastructure (I), Natural Environment (II), and Built Environment (III). Within these volumes, a total of 12 elements will serve to replace a total of 16 existing elements last revised comprehensively in 1982. Four optional elements will be added to cover topic areas of special or unique relevancy to our city. Two existing elements, which include the Circulation and Housing Elements are being amended separately at this time or will be revised as required by State Law*. The planning horizon year for this sustainably new community vision is 2040. General Plan Policy Framework 1 65A-7 • Community Element • Conservation Element • Economic Prosperity Element • Historic Preservation Element • Land Use Element • Noise Element December 4, 2018 • Open Space Element • Public Services Element • Safety Element • Urban Design Element • Housing Element* • Mobility/Circulation Element* A General Plan is the affirmation of a city's future development goals and provides policy statements to achieve those goals. Each element within the three sections will contain individual goals and multiple policies. Goals are statements of desired future conditions toward which efforts and use of resources are directed. Policies are statements that guide decision-making and specify an intended level of public commitment on a subject. Goals and policies are structured within a General Plan according to elements with each element containing its own set of goals and policies. Implementation actions related to each Goal or Policy will be included as a separate Implementation Plan to ensure successful monitoring of our progress as a community. Five Core Values will apply to all Elements and be found throughout all Goals and Policies as part of the New General Plan. These Core Values will form part of the framework of the General Plan and establish the guiding principles that are embedded at every level of a plan and form its foundation. The purpose of the General Plan Update is to comprehensively update the 1982 plan to reflect current conditions, establish a shared vision of the community's aspirations and create the policy direction to guide Santa Ana's long-term planning and growth over the next two decades. Legal Requirements Santa Ana's General Plan will be compliance with the requirements of Government Code Section 65300 et seq. The General Plan provides the framework for management and utilization of the City's physical, economic and human resources. California State law requires that each city prepare General Plan and adopt a comprehensive, long-term General Plan for its future development. State law permits cities to include optional elements in their General Plans, beyond the seven mandated elements, thereby providing local governments with the flexibility to address the specific needs and unique character of their jurisdiction. By providing a basis for rational decision-making, this document guides civic decisions regarding land use, design of buildings and open spaces, the conservation of existing housing and the addition of new dwelling units, the provisions of supporting infrastructure and public services, protection of environmental resources, allocation of fiscal resources, and the protection of residents from natural and human -caused hazards. General Plan Policy Framework 2 65A-8 Introduction December 4, 2018 Table 1 provides a summary on compliance with legally required General Plan Elements as well as how optional elements will correspond to one another. In addition, the new General Plan will comply with California's Office of Planning and Research requirements and appropriate environmental documentation in conformance with the latest provisions of the California Environmental Quality Act (CEQA). The Voice of our Community The Policy Framework was developed following over one year of extensive community outreach (2016), one-on-one interviews with the City Council, General Plan Advisory Group dialogue (2017), Interagency Technical Advisory Committee guidance and constant community feedback through multiple outreach efforts throughout the process. The following bullet - points summarize various meetings and outreach activities conducted throughout the development of the Policy Framework. In total, the effort resulted in the creation of a Vision Statement, Five Core Values, 37 Goals, 288 Policies and Five Focus Study Areas. 2016 — Initial Community Outreach • General Plan Video • 40 Meetings • Youth Summer Program • Pop-up events Citywide • Summarized in Community Outreach Executive Summary 2017 — General Plan Advisory Group (GPAG) • 14 GPAG Meetings • Issues Identification Review • Draft Vison Statements • Draft Goals and Policies • Land Use Study Areas • Summarized in GPAG Report to City Council 2018 — General Plan Technical Advisory Group (GPTAC) • Seven GPTAC Meetings • Refined Draft Goals and Policies • Resource Collection of Existing Conditions • Land Use Focus Study Areas • Summarized in GPAG Report to City Council • Presented Vision and Core Values to City Council • Second Community Outreach Effort General Plan Policy Framework 3 65A-9 Introduction December 4, 2018 SANTA ANA'S SHARED VISION A Shared Vision Based on our community values, the following statement expresses our aspirations for the future in order to enhance quality of life for all: "Santa Ana is a city that promotes the health & wellness of all residents, it has a civic culture that actively embraces the power of diversity; our city invests in resources that create economic opportunities for the next generation, and it is a community that celebrates our past while working together to create a sustainable future." Our Core Values Core values are traits or qualities that represent an individual's highest priorities. They influence a person's decisions and shape who they are and become. When this concept is applied to a General Plan, core values establish the guiding principles that are embedded at every level of a plan and form its foundation. Through an iterative process of reviewing the feedback gathered during earlier community outreach efforts, the following five principles, or "Core Values," emerged as the highest priorities of the Santa Ana community: Health, Equity, Culture, and Education. These core values will be discussed and expressed throughout each of the elements and sections of the new General Plan and will become key principles that guide future decision-making. The following descriptions were established by the GPAG to help define the draft core values: Health The people of Santa Ana value a physical environment that encourages healthy lifestyles, a planning process that ensures that health impacts are considered, and a community that actively pursues policies and practices that improve the health of our residents. Our residents value taking all necessary steps to ensure equitable outcomes, expanding access to the tools and resources that residents need, and to balance competing interests in an open and democratic manner. Santa Ana values land use decisions that benefit future generations, plans for the impacts of climate change, and incorporates sustainable design practices at all level of the planning process. Culture Our community values efforts that celebrate our differences as a source of strength, preserve and build upon existing cultural resources, and nurture a citywide culture of empowered residents. Education We are a city that values the creation of lifelong learners, the importance of opening up educational opportunities to all residents, and investing in educational programs that advance our residents' economic wellbeing. General Plan Policy Framework 4 65A-10 Introduction December 4, 2018 Focus Areas Following their review of the Community Outreach Executive Summary and draft Goals and Policies related to the Land Use Element, the General Plan Advisory Group participated in an exercise to identify areas suited for future development or overall improvement. Members of the General Plan Advisory Group were then asked to markup provided maps to identify areas. In general, the areas identified by the GPAG are located along major travel corridors, the future OC Streetcar line, the Willowick Golf Course, and are in line with feedback received during the initial outreach phase that focused on protecting existing neighborhoods from future development impacts. These maps were then taken to the City's Land Use consultant for evaluation and discussion with City Staff, General Plan Technical Advisory Committee (GPTAC), City Council Subcommittee (EDBIT) and presented to City Council as a Study Session in October 2018. A comprehensive drill -down evaluation of these Focus Areas by the City Council is scheduled for early 2019. A total of five study areas were identified: 1) OC Streetcar Neighborhood, 2) 55 Dyer South, 3) Grand/17th, 4) South Main Street, and 5) MainPlace Mall. The five areas identified and mapped are included below. ,:-IC. Na9hbrvhvod .�I.Yer Snnh v Sornh MYn __Sri M1raAaee AlA %PiY.dI. Ex'rhng Vlan Ncas 0 HarMMrN lhelranrM1CmmNr SpvM1S %an Moro F xr hN �etl Uss OvnUy $urc O ir.nn[zrcrpm cae OMarnwn rlan © Maptiv<Peuae rm�eplrcMOue Mem ® &is1a111reNCnnitlur SFrrcIM%en Bau Mapiartum ••O Same A- P,—ATramwrWtiun Cenls ••O" IXSLeercerend5tauprrlYlennaJl �^— Gry BwndaN —�� S4Jureollu9umae Unla All Pirn General Plan Policy Framework 5 65A-11 Introduction ELEMENT GOALS AND POLICIES December 4, 2018 The New General Plan will include a total of 12 Elements organized into three sections (Services and Infrastructure, Natural Environment, and Built Environment). Below are Goals and Policies pertaining to each element including a brief background discussion followed by respective goal(s) and policies. Each Policy is followed by characters: C (Culture), H (Health), Eq (Equality), S (Sustainability) and Ed (Education) where respective Core Values have been embedded into the statement. General Plan Policy Framework 6 65A-12 The Community Element reinforces the City's values of recreation, culture, education, health and wellness and cultivates opportunities for improved quality of life for all residents. This goal can be made operational through efforts to promote activities and events throughout the city and through partnerships with local organizations. The Community Element is an optional General Plan element. Section 65303 of the California Government enables a county or city to adopt "any other elements or address any other subjects, which, in the judgment of the legislative body, relate to the physical development of the county or city." An optional element must be consistent with the seven mandatory elements and, once adopted, carries the same legal weight as any of the mandatory elements. Community Considerations Through the community engagement process for this General Plan, participants identified numerous community considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Improving quality of life • Equitable access to programs and local attractions • Maintaining a diverse culture • Great Downtown • Young Population • Increase community participation • Educational opportunities for youth • Lack of open space • Need for more senior services • Healthy food options • Strong sense of community • Resolve homelessness General Plan Policy Framework 65A-1 3 7 Community Element December 4, 2018 GOAL 1: Provide opportunities for public and private recreation and cultural programs that meet the needs of Santa Ana's diverse population. Policy 1.1 Access to Programs. Provide and maintain access to recreational and cultural programs within walking distance of residential areas. I Eq Policy 1.2 Community Input. Engage residents and community facility users to provide input for facility improvements and programming. I Ed Policy 1.3 Equitable Programs. Encourage cultural programs and activities of local interest that are inclusive and affordable to all. I Eq Policy 1.4 Shared Use. Expand community activities and programs at City facilities and throughout the community through shared use or cooperative agreements. Policy 1.5 Equitable Recreational Spaces. Promote the development and use of municipal buildings, indoor facilities, sports fields, and outdoor spaces for recreation that serve residents throughout the City. I Eq Policy 1.6 Recreation on Private Property. Promote the development and use of privately - owned recreation and entertainment facilities that are affordable and meet the needs of Santa Ana residents. I Eq Policy 1.7 Connections to Facilities. Support efforts to connect residents and visitors to local and regional cultural, educational, and natural environments. I C Policy 1.8 Developer Involvement. Promote developer participation in the provision of community facilities to meet the recreational needs of residents. I Eq Policy 1.9 Art and Cultural Programming. Promote art and cultural programs of local interest to provide educational and cultural awareness opportunities. I C Policy 1.10 Community Attractions. Incorporate placemaking elements and technology into existing and new parks and facilities to encourage use of public spaces, access to educational resources, and community led activities. I S Policy 1.11 Program Incentives. Incentivize use of privately owned property to promote recreation, health, wellness, and culture programs. I E General Plan Policy Framework 8 65A-14 Community Element December 4, 2018 GOAL 2: Provide exceptional, accessible, and diverse educational programs and facilities to meet community needs. Policy 2.1 Supporting Organizations. Collaborate with both private and public organizations that support early childhood education programs to optimize and expand service capacity. I Ed Policy 2.2 Educational Facilities Capacity. Partner with local school districts, non-profit organizations, and other educational providers regarding land use and policy changes to ensure available educational facilities. I Ed Policy 2.3 Partnerships with Schools. Strengthen partnerships with local schools to promote safe, supportive, and effective learning environments that foster school and community pride. I Ed Policy 2.4 Parent Participation. Support education, recreation programs, and after school activities that involve parent participation to increase high school graduation and college attendance rates. I Ed Policy 2.5 Training Opportunities. Promote and partner with local businesses, schools, and non- profits offering education, job training, internship, and apprenticeship opportunities for Santa Ana youth and residents. I Ed Policy 2.6 Educational Funding. Enhance educational opportunities in the community by expanding and maintaining access to libraries, learning centers, and technology through innovative funding sources. I Ed Policy 2.8 Lifelong Learning. Encourage lifelong learning beyond the traditional classroom environment by promoting lectures, learning circles, self-directed discussion groups, and other educational opportunities at local libraries, historical societies, cultural centers, and public spaces. I Ed General Plan Policy Framework 65A-1 5 9 Community Element December 4, 2018 GOAL 3: Promote the health and wellness of all Santa Ana residents. Policy 3.1 Supporting Health Services. Collaborate with and provide support to organizations engaged in improving public health and wellness, expanding access to affordable quality health care, and providing medical services for all segments of the community. I H, Eq Policy 3.2 Healthy Neighborhoods. Continue to support the creation of healthy neighborhoods by addressing public safety, improving the built environment, and maintaining building code standards. I H Policy 3.3 Healthy Residential Programs. Invest in programs and public improvements that educate residents about opportunities to increase their physical activity and improve their health. I H, Ed Policy 3.4 Safe Mobility. Promote the overall safety of multi -modal streets by developing local and regional programs that educate and inform motorists of non -motorized roadway users. I Ed Policy 3.5 Community Spaces. Encourage positive community interactions and neighborhood pride to create secure communities and promote safe public spaces. I C Policy 3.6 Healthy Options. Promote access to affordable, fresh, and healthy food options citywide through efforts such as community gardens, culinary classes, and neighborhood farmers markets. I H, Eq Policy 3.7 Active Lifestyles. Support programs that create safe routes to schools and other destinations to promote walking, biking and active lifestyles. I H General Plan Policy Framework 65A-16 10 The Conservation Element identifies the community's natural resources and communicates the benefits for retention, enhancement and development of these reserves towards improving quality of life and the environment as a whole. The Conservation Element will guide the City in its efforts to prioritize sustainability and enhance the environment for current and future generations. The Conservation Element is a mandated component of all general plans in the State per Government Code Section 65302(d). This element will address conservation goals and policies related to natural resources, water resources, mineral resources, air quality, and energy resources. Additionally, conservation goals related to open space areas and land uses are found in the Open Space and Land Use Elements, respectively. Community Considerations Through the community engagement process for this General Plan, participants identified numerous conservation related considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Sustainable buildings • Water resources • Preserving the natural environment • Supporting renewable resources • Healthy urban forest General Plan Policy Framework 65A-17 11 Conservation Element December 4, 2018 GOAL 1: Protect air resources, improve regional and local air quality, and minimize the impacts of climate change. Policy 1.1 Regional Planning Efforts. Coordinate air quality planning efforts with local and regional agencies to meet State and Federal ambient air quality standards in order to protect all residents from the health effects of air pollution. I Eq, H Policy 1.2 Climate Action Plan. Consistency with emission reduction goals highlighted in the Climate Action Plan shall be considered in all major decisions on land use and investments in public infrastructure. I H, S Policy 1.3 Education. Promote efforts to educate businesses and the general public about air quality standards, health effects, and best practices they can make to improve air quality and reduce greenhouse gas emissions. I Ed, H Policy 1.4 Development Standards. Support new development that meets or exceeds standards for energy-efficient building design and site planning. I S Policy 1.5 Sensitive Receptor Decisions. Consider potential impacts of stationary and non - stationary emission sources on existing and proposed sensitive uses and opportunities to minimize health and safety risks. I H Policy 1.6 New and Infill Residential Development. Promote development that is mixed- use, pedestrian -friendly, transit oriented, and clustered around activity centers. I S Policy 1.7 Housing and Employment Opportunities. Improve the City's jobs/housing balance ratio by supporting development that provides housing and employment opportunities to enable people to live and work in Santa Ana. I Eq Policy 1.8 Promote Alternative Transportation. Promote use of alternate modes of transportation in the City of Santa Ana, including pedestrian, bicycling, public transportation, car sharing programs and emerging technologies. I S, Ed Policy 1.9 Public Investment Alternative Transportation Infrastructure. Continue to invest in infrastructure projects that support public transportation and alternate modes of transportation in the City of Santa Ana, including pedestrian, bicycling, public transportation, car sharing programs, and emerging technologies. I S Policy 1.10 Transportation Management. Continue to support and invest in improvements to the City's Transportation Management System, including projects or programs that improve traffic flow and reduce traffic congestion. I S Policy 1.11 Public Investment in Low- or Zero Emission Vehicles. Continue to invest in low - emission or zero -emission vehicles to replace the City's gasoline powered vehicle fleet and to transition to available clean fuel sources such as bio -diesel for trucks and heavy equipment. I S General Plan Policy Framework 65A-18 12 Conservation Element December 4, 2018 Policy 1.12 Sustainable Infrastructure. Encourage the use of low or zero emission vehicles, bicycles, non -motorized vehicles, and car -sharing programs by supporting new and existing development that includes sustainable infrastructure and strategies such as vehicle charging stations, drop-off areas for ride -sharing services, secure bicycle parking, and transportation demand management programs. I S Policy 1.13 City Contract Practices. Support businesses and contractors that use reduced - emissions equipment for city construction projects and contracts for services, as well as businesses that practice sustainable operations. I S Policy 1.14 Transportation Demand Management. Require and incentivize projects to incorporate Transportation Demand Management (TDM) techniques. I S, Ed, H General Plan Policy Framework 65A-1 9 13 Conservation Element December 4, 2018 GOAL 2: Preserve and enhance Santa Ana's natural and environmental resources while maintaining a balance between recreation, habitat restoration, and scenic resources. Policy 2.1 Native Wildlife Habitat Protection. Protect and enhance natural vegetation in parks and open spaces for wildlife habitat, erosion control, and to serve as noise and scenic buffers. I S Policy 2.2 Biodiversity Preservation. Collaborate with State and County agencies to promote biodiversity and protect sensitive biological resources. I S Policy 2.3 Resource Management. Efficiently manage soil and mineral resource operations to eliminate significant nuisances, hazards, or adverse environmental effects on neighboring land uses. I S, H Policy 2.4 Scenic Linkages. Ensure that development and travelways surrounding key destinations, historic sites, recreational areas, and open space preserve and create scenic linkages. I S, H General Plan Policy Framework 65A-20 14 Conservation Element December 4, 2018 GOAL 3: Reduce consumption of and reliance on non- renewable energy, and support the development and use of renewable energy sources. Policy 3.1 Interagency Coordination. Consult with regional agencies and utility companies to pursue energy efficiency goals and expand renewable energy strategies. I S, Ed Policy 3.2 Education Programs. Support education programs to provide information on energy conservation and alternatives to non-renewable energy sources. I S, Ed Policy 3.3 Development Patterns. Promote energy efficient -development patterns by clustering mixed use developments and compatible uses adjacent to public transportation. I S, H Policy 3.4 Site Design. Encourage site planning and subdivision design that incorporates the use of renewable energy systems. I S Policy 3.5 Landscaping. Encourage the planting of native and diverse tree species to reduce heat island effect, reduce energy consumption, and contribute to carbon mitigation. I S Policy 3.6 Life Cycle Costs. Encourage construction and building development practices that use renewable resources and life cycle costing in construction and operating decisions. IS Policy 3.7 Energy Conservation Design and Construction. Incorporate energy conservation features in the design of new construction and rehabilitation projects. I S Policy 3.8 Energy -Efficient Public Facilities. Promote and encourage efficient use of energy and the conservation of available resources in the design, construction, maintenance, and operation of public facilities, infrastructure, and equipment. I S Policy 3.9 Energy Generation in Public Facilities. Encourage and support the generation, transmission, use, and storage of locally -distributed renewable energy in order to promote energy independence, efficiency, and sustainability. I S Policy 3.10 Energy Conservation in Public Projects. Work with businesses and contractors that use energy-efficient practices in the provision of services and equipment for city construction projects. I S Policy 3.11 Energy -Efficient Transportation Infrastructure. Continue to support public and private infrastructure for public transportation such as bus routes, rail lines, and the OC Streetcar. I S General Plan Policy Framework 65A-21 15 Conservation Element December 4, 2018 GOAL 4: Conserve and replenish existing and future water resources. Policy 4.1 Water Use. Encourage and educate residents, business owners, and operators of public facilities to use water wisely and efficiently. I Ed, S Policy 4.2 Landscaping. Encourage public and private property owners to plant native or drought -tolerant vegetation. I Ed, S Policy 4.3 Recycled Water Systems. Continue to coordinate with the Orange County Water District, Orange County Sanitation District, and developers for opportunities to expand use of reclaimed water systems. I S Policy 4.4 Irrigation Systems. Promote irrigation and rainwater capture systems that conserve water to support a sustainable community. I Ed, S Policy 4.5 Water Supply. Continue to collaborate with Orange County Water District and Metropolitan Water District to ensure reliable, adequate, and high quality sources of water supply at a reasonable cost. I S Policy 4.6 Water Quality. Work with public and private property owners to reduce storm water runoff and to protect the water quality percolating into the aquifer and into any established waterway. I S General Plan Policy Framework 65A-22 16 The purpose of the Economic Prosperity Element is to ensure Santa Ana's local economy, and its role in the broader regional economy, expands, maintains, and enhances job opportunities, attracts and retains a balance of business types, provides sufficient revenue for public services, and contributes to the overall quality of life experienced by the City's residents. The Economic Prosperity Element is an optional General Plan element. Section 65303 of the California Government Code enables a county or city to adopt "any other elements or address any other subjects, which, in the judgment of the legislative body, relate to the physical development of the county or city." An optional element must be consistent with the seven mandatory elements and, once adopted, carries the same legal weight as any of the mandatory elements. Community Considerations Through the community engagement process for this General Plan, participants identified numerous economic prosperity related considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Skilled workforce • Developing local talent • Broad economic goals • Business friendly environment • Living wage jobs • Successful businesses are important • Downtown Investment • Citywide Investment • Highlight unique attractive qualities • Employment opportunities for youth • Supporting small businesses • Creating attractive environment for businesses General Plan Policy Framework 65A-23 17 Economic Prosperity Element December 4, 2018 GOAL 1: Foster a dynamic local economy that provides and creates employment opportunities for all residents in the City. Policy 1.1 Protect Industrial. Protect industrial uses that provide quality job opportunities including middle-income jobs; provide for secondary employment and supporting uses; and maintain areas where smaller emerging industrial uses can locate in a multi -tenant setting. I Eq, S Policy 1.2 Attract Business. Strengthen and expand citywide business attraction efforts in order to achieve the City's full employment potential. I Eq, S Policy 1.3 Living -wage Employment. Promote new and retention of existing job -producing businesses that provide living -wage employment opportunities. I Eq, S Policy 1.4 Job Skills. Pursue available financial and tax incentives to improve residents' employment skills and workforce preparation. I Eq, Ed Policy 1.5 Access through Education. Support education and employment training on a citywide basis to improve access to higher -wage and emerging occupations. I Eq, Ed Policy 1.6 Comprehensive Approach. Collaborate with chambers of commerce, educational institutions, and other partners to prepare residents to seek and thrive in current and emerging employment environments. I Ed Policy 1.7 Targeted Resources. Target business attraction and retention resources to firms with high positive net revenue implications for local government, particularly those engaged in business -to -business taxable sales transactions. I S Policy 1.8 Growing Tax Base. Collaborate with the City chambers of commerce to promote fiscal stability and growth of sales tax and employment generating businesses in the City. I S Policy 1.9 Avoid Conflict of Uses. Avoid potential land use conflicts by prohibiting the location of sensitive receptors and noxious land uses in close proximity. I H, Eq, S Policy 1.10 Creative Class. Target the attraction of arts and culture related industries to create jobs, attract investments, and stimulate the local economy through tourism. I C, S General Plan Policy Framework 65A-24 18 Economic Prosperity Element December 4, 2018 GOAL 2: Maintain and enhance the diversity and regional significance of the City's economic base. Policy 2.1 High-growth Businesses. Promote economic development opportunities in high- growth business clusters that match the changing skillset of the City's resident population. I Eq, S Policy 2.2 Deliberate Investment. Pursue business attraction and retention prospects in sectors which broaden and strengthen the local economy. I Eq, S Policy 2.3 Complementary Businesses. Encourage the development of mutually beneficial and complementary business clusters within the community. I S Policy 2.4 Community -led Economic Development. Support community-based economic development initiatives, such as buy -local campaign, marketing strategies, and worker cooperatives. I Eq, S, Ed Policy 2.5 Sufficient Industrial Land. Ensure sufficient availability of industrial zoned properties and businesses that provide employment opportunities for the City's resident population. I Eq, S Policy 2.6 Small Business Assistance. Support and encourage small business development, incubators, and microenterprises through start-up assistance and identification of fiscal resources for entrepreneurship. I Eq, S, Ed Policy 2.7 Infrastructure as an Amenity. Provide state-of-the-art infrastructure systems with sufficient capacity to attract emerging businesses, encourage efficient public service delivery, and foster a sustainable community. I C, S Policy 2.8 Emerging Businesses. Pursue and grow emerging business and industry that further fiscal and environmental sustainability of the community. I S Policy 2.9 Energy Conservation. Collaborate with utility providers and regional partners to encourage business and industry to improve performance in energy efficiency, water conservation, and waste reduction. I S Policy 2.10 Green Business. Support the growth of a diverse green business sector that facilitates and promotes environmental sustainability and creates a competitive advantage for business attraction activities. I H, S Policy 2.11 Goods Producing Sector. Support economic development initiatives and land use strategies that preserve and foster an environment that allows the goods producing sector to thrive. I S General Plan Policy Framework 65A-25 19 Economic Prosperity Element December 4, 2018 GOAL 3: Promote a business friendly environment where businesses thrive and build on Santa Ana's strengths and opportunities. Policy 3.1 Leverage Historic and Cultural Assets. Market the City's historic and cultural assets to increase the attraction of businesses and their employees to Santa Ana's places and destinations. I C, S Policy 3.2 City Branding. Promote Santa Ana as a "Smart City" and regional leader in sustainability, equity, innovation, place making, collaboration, and community pride in products Made in Santa Ana. I C, Eq, S Policy 3.3 Mitigate Impacts. Promote sustainable and equitable land uses that proactively mitigates negative impacts on existing residents and businesses. I H, Eq, S Policy 3.4 Complete Communities. Encourage the development of "complete communities" that provide a range of housing, services, amenities, and transportation options to support the retention and attraction of a skilled workforce and employment base. I C, H, Eq, S Policy 3.5 Simplify the Process. Provide a streamlined development process and assist businesses with permit processing. I Eq, Ed Policy 3.6 Responsive to Trends. Maintain flexible and up-to-date land use regulations that are responsive to changing business trends, best practices, technological advancements, and community needs. I Eq, Ed Policy 3.7 Facilitating Investment. Promote a solution -based customer focus in order to facilitate additional development and investment in the community. I Eq, S, Ed Policy 3.8 Comprehensive Analysis of Land Use. Pursue a balance of fiscal and qualitative community benefits when making land use decisions. I H, Eq, S Policy 3.9 Civic Culture and Community Service. Facilitate a business culture that encourages community service and wellness programs for residents and employees. I C, H, Eq, S, Ed Policy 3.10 Rethinking Strip -commercial. Promote the creation of distinctive neighborhood serving districts through the renovation or redevelopment of existing strip -commercial development. I S Policy 3.11 Improve Image. Create vibrant public spaces through arts and culture projects that enhance urban quality of life, expand the tax base, and improve regional and community image. I C, H, S General Plan Policy Framework 65A-26 20 Economic Prosperity Element December 4, 2018 GOAL 4: Promote strategies that create an economic development mindset integrated throughout City Hall. Policy 4.1 Economic Development Responsibility. Promote a spirit in which economic development is the responsibility of each elected official, appointed official, and City employee. I C, Ed Policy 4.2 Economic Development Training. As financial resources are available, invest in economic development training for staff, elected and appointed officials, and key community stakeholders. I Ed Policy 4.3 Business Visitation. Encourage frequent dialogue between City representatives and owners and managers of businesses operating in Santa Ana. I S, Ed Policy 4.4 Economic Development Strategy. Adopt and regularly update a comprehensive economic development strategic plan, either as a stand-alone plan or as part of the City's Strategic Plan. I C Policy 4.5 Economic Development Partners. Collaborate effectively with regional economic development partners to achieve specific measurable goals for Santa Ana. I Ed Policy 4.6 Public-private Partnerships. Prioritize municipal initiatives and investments in areas in which private sector businesses and property owners are voluntarily providing private funding through special financing districts (such as assessment districts and business improvement districts). I S General Plan Policy Framework 65A-27 21 The purpose of this Historic Preservation Element is to provide guidance in developing and implementing activities that ensure that identification, designation, and protection of architectural, historical, cultural, and archaeological resources are part of the City's planning, development, and permitting processes. Through general plan historic preservation policies and programs, Santa Ana's heritage and diversity will continue to be a source of community pride. The Historic Preservation Element is an optional General Plan element. Section 65303 of the California Government Code enables a county or city to adopt "any other elements or address any other subjects, which, in the judgment of the legislative body, relate to the physical development of the county or city." An optional element must be consistent with the seven mandatory elements and, once adopted, carries the same legal weight as any of the mandatory elements. Community Considerations Through the community engagement process for this General Plan, participants identified numerous historic preservation considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Rich cultural and architectural history • Unique neighborhoods • Protect existing neighborhoods from intrusive development • Maintain character, sense of place, and identity • Pride in neighborhoods • Adaptive reuse of buildings General Plan Policy Framework 65A-28 22 Historic Preservation Element December 4, 2018 Goal 1: Preserve and enhance Santa Ana's historic areas and resources to maintain a unique sense of place. Policy 1.1 Architectural and Design Standards. Preserve unique neighborhoods and structures in Santa Ana through implementation of the Citywide Design Guidelines and historic preservation best practices. I C, S Policy 1.2 Federal Standards for Rehabilitation. Ensure rehabilitation of historic buildings comply with the Secretary of Interior's Standards for the Treatment of Historic Properties and that new construction in historic districts is compatible with context. I C, S, Ed Policy 1.3 Historic Districts and Design Standards. Explore opportunities to preserve neighborhoods with largely intact historic buildings and character through the creation of historic districts or neighborhood design standards. I C, Eq, S Policy 1.4 Protecting Resources. Support land use plans and development proposals that actively protect historic and cultural resources. I C, Eq, S Policy 1.5 Structure and Systems Maintenance. Encourage maintenance, care, and systems upgrades of historic resources to avoid the need for major rehabilitation, prevent loss of historic resources, and remediate health concerns such as lead based paint and mold. H, Eq, S, Ed Policy 1.6 Lead by Example. Ensure that all City -owned historic resources and cultural facilities reflect exceptional architecture and historically appropriate features to celebrate Santa Ana as a world-class city. I C, H, Eq, S, Ed Policy 1.7 Preserving Human Element. Encourage participation in oral history programs to capture Santa Ana's historic and cultural narrative. I C, Eq, Ed Policy 1.8 Reuse of Historic Buildings. Support flexible land use standards to facilitate the adaptive reuse of historic buildings with a variety of economically viable uses, while minimizing impacts to the historic value and character of sites and structures. I C, H, S Policy 1.9 Historic Downtown. Strengthen the image and identity of Downtown through unifying design and architectural themes that are compatible with existing historic fabric. I C General Plan Policy Framework 65A-29 23 Historic Preservation Element December 4, 2018 GOAL 2: Promote the City's cultural and historic resources to advance Santa Ana's role in Southern California history. Policy 2.1 Resource Stewardship. Expand community outreach to educate property owners and businesses regarding responsibilities and stewardship requirements of the City's historic resources. I H, Eq, S, Ed Policy 2.2 Educational Awareness. Provide educational opportunities to foster community awareness and pride in Santa Ana's history. I C, Eq, Ed Policy 2.3 Commemorating History. Support efforts to identify and commemorate historic structures and sites in Santa Ana through murals, plaques, and educational exhibits. I C, Eq, Ed Policy 2.4 Local and Regional Partnerships. Strengthen relationships and programs with local and regional institutions to promote the appreciation, maintenance, rehabilitation, and preservation of Santa Ana's historic and cultural resources. I C, H, Eq, S, Ed Policy 2.5 Economic Development Tool. Promote economic development through heritage education and the promotion of tourism. I Ed Policy 2.6 Center Core. Promote Santa Ana's identity as the cultural and historic downtown of Orange County. I C, Ed General Plan Policy Framework 24 65A-30 Historic Preservation Element December 4, 2018 GOAL 3: Develop, implement, and maintain a nationally recognized historic preservation program. Policy 3.1 Historic Resource Survey. Maintain a comprehensive program to inventory and preserve historic and cultural resources. I Eq, S, Ed Policy 3.2. Incentivize Preservation. Support incentive programs that promote restoration, rehabilitation, salvage, and adaptive reuse of historic buildings. I C, H, Eq, S Policy 3.3 Accessible Preservation Program. Explore strategies to promote a historic preservation program that is robust, equitable, and accessible. I C, Eq, S, Ed Policy 3.4 Preservation Program Certification. Maintain Santa Ana's status as a Certified Local Government (CLG) to further the City's historic resource program and pursue all available funding for preservation. I C, S Policy 3.5 Local Preservation Groups. Collaborate with the Santa Ana Historical Preservation Society, community groups, and individuals to promote public awareness and educational opportunities that highlight historic preservation. I C, Eq, S, Ed Policy 3.6 Staff Development. Collaborate with local and regional historic preservation groups to maintain a training program that promotes best practices in preservation techniques. I C, Ed General Plan Policy Framework 65A-31 25 The goal of the Land Use Element is to provide a long-range guide for land use and physical development in the City to reflect the community's vision for a quality of life. This element is a tool to promote public health, reduce infrastructure costs, enhance local economies, and address long-term environmental issues such as climate change and water resources. This element guides the distribution, location, and size of new development; and ensures that future growth is sustainable and minimizes potential conflicts. It is key element in identifying areas for residential, commercial, industrial and mixed-use zones for Santa Ana to thrive. A robust land use element is a vital part in ensuring that develop patterns reflect community values and needs. Community Considerations Through the community engagement process for this General Plan, participants identified numerous land use considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Strong sense of community • New development should enhance quality of life • Increase recreational public open space • Create linkages to transportation options Leverage established local attractions • Affordable housing Development to have net community benefit • Overcrowding Variety of housing • Address aging infrastructure • Density is an issue • Cost of housing General Plan Policy Framework 65A-32 26 Land Use Element December 4, 2018 GOAL 1: Provide a land use plan that improves quality of life and respects our existing community. Policy 1.1 Compatible Uses. Foster compatibility between land uses to enhance livability and promote healthy lifestyles. I H Policy 1.2 Homeownership Opportunities. Support innovative development policies to expand homeownership opportunities at all income levels. I Eq Policy 1.3 Equitable Distribution of Open Space. Promote the creation of new open space and community serving amenities in park deficient areas. I H, Eq Policy 1.4 County Seat. Support the location of new and enhanced regional, state, and federal governmental facilities in the Civic Center to reinforce Santa Ana as the County Seat. I S Policy 1.5 Diverse Housing Types. Incentivize quality infill residential development that provides a diversity of housing types and accommodates all income levels and age groups. I Eq, S Policy 1.6 Transit Oriented Development. Encourage residential mixed-use development, within the City's District Centers and Urban Neighborhoods, and adjacent to high quality transit. I S, H Policy 1.7 Active Transportation Infrastructure. Invest in active transportation connectivity between activity centers and residential neighborhoods to encourage healthy lifestyles.1 H,S,C Policy 1.8 Development Tradeoffs. Ensure that new development projects provide a net community benefit. IS, Eq Policy 1.9 Public Facilities and Infrastructure. Evaluate individual new development proposals to determine if the proposals are consistent with the General Plan, and to ensure that they do not compound existing public facility and service deficiencies. I Eq, S Policy 1.10 Downtown Orange County. Balance development within the downtown to continue to serve as a cultural and economic hub for existing and future residents. I C, S General Plan Policy Framework 65A-33 27 Land Use Element December 4, 2018 GOAL 2: Provide a balance of land uses that meet Santa Ana's diverse needs. Policy 2.1 Employment Opportunities. Provide a broad spectrum of land uses and development that offer employment opportunities for current and future Santa Ana residents. I Eq, S Policy 2.2 Capture Local Spending. Encourage a range of commercial uses to capture a greater share of local spending, and offer a range of employment opportunities. IS, Ed Policy 2.3 Supportive Spaces. Provide a diversity of land uses that support residents, visitors, and businesses, such as open space, areas for community gatherings, and outdoor entertainment venues.1 H, C, S Policy 2.4 Cost and Benefit of Development. Balance the benefits of development with its fiscal impacts on the City and on quality of life. I S Policy 2.5 Benefits of Mixed Use. Encourage infill mixed-use development at all ranges of affordability to reduce vehicle miles travelled, improve jobs/housing balance, and promote social interaction. I Eq, H, C Policy 2.6 Encourage Investment. Promote rehabilitation of properties and encourage increased levels of capital investment to create a safe and attractive environment. I Ed, H Policy 2.7 Business Incubator. Support land use decisions that encourage the creation, development, and retention of businesses in Santa Ana. I S, Eq Policy 2.8 City Image. Encourage land uses, development projects, and public art installations that promote the City's image as a cultural and business friendly regional center.1 C, Ed, S Policy 2.9 Open Space Needs. Provide sufficient open space and recreational opportunities for Santa Ana Residents and visitors. I H, S, Eq Policy 2.10 Smart Growth. Focus high density residential in mixed-use villages, designated planning focus areas, Downtown Santa Ana, and along major travel corridors. General Plan Policy Framework 65A-34 28 Land Use Element December 4, 2018 GOAL 3: Preserve and improve the character and integrity of existing neighborhoods and districts. Policy 3.1 Community Benefits. Support new development which provides a net community benefit and contributes to neighborhood character and identity. I S, C, Ed Policy 3.2 Empower Community. Facilitate community engagement and dialogue in policy decisions and outcomes affecting land use and development. I Ed, Eq Policy 3.3 Enforcement of Standards. Maintain a robust and proactive code enforcement program that partners with community stakeholders and is responsive to community needs. I Eq, H, S Policy 3.4 Compatible Development. Ensure that the scale and massing of new development is compatible and harmonious with the surrounding built environment. I S Policy 3.5 Adaptive Reuse. Encourage the preservation and reuse of historical buildings and sites through flexible land use policies.1 S, C, Ed Policy 3.6 Focused Development. Facilitate the transformation of the transit corridors through focusing medium and high density pedestrian -oriented mixed-use development at key intersections.1 S, H Policy 3.7 Attractive Environment. Promote a clean, safe, and creative environment for Santa Ana's residents, workers, and visitors.1 C, S, H Policy 3.8 Sensitive Receptors. Avoid the development of sensitive receptors in close proximity to land uses that pose a hazard to human health and safety, due to the quantity, concentration, or physical or chemical characteristics of the hazardous materials that they utilize, or the hazardous waste that they generate or emit. I H, S, Eq Policy 3.9 Improving Health. Improve the health of residents by discontinuing the operation of noxious, hazardous, dangerous, and polluting uses that are in close proximity to sensitive receptors. 1 H, S, Eq Policy 3.10 Community Attractions. Support the development of regional land uses that allow for entertainment, sports and unique venues that benefit the local community and attract a wide range of visitors. General Plan Policy Framework 65A-35 29 Land Use Element December 4, 2018 GOAL 4: Support a sustainable Santa Ana through improvements to the built environment and a culture of collaboration. Policy 4.1 Complementary Uses. Promote complete neighborhoods by encouraging a mix of complementary uses, community services, and people places within a walkable area. IS,H Policy 4.2 Public Realm. Maintain and improve the public realm through quality architecture, street trees, landscaping, and other pedestrian -friendly amenities. I Eq, S, H Policy 4.3 Sustainable Land Use Strategies. Encourage land uses and strategies that reduce energy and water consumption, waste and noise generation, air quality impacts, and light pollution. ; S, Ed Policy 4.4 Natural Resource Capture. Encourage the use of natural processes to capture rainwater runoff, sustainable electric power, and passive climate control. I S, Ed Policy 4.5 VMT Reduction. Concentrate development along high quality transit corridors to reduce vehicle miles traveled and transportation related carbon emissions. I S Policy 4.6 Healthy Living Conditions. Support diverse and innovative housing types that improve living conditions and promote a healthy environment. I S, Eq, Ed Policy 4.7 Diverse Communities. Promote mixed -income developments with mixed housing types to create inclusive communities and economically diverse neighborhoods. jEq, S, C Policy 4.8 Community Partnerships. Collaborate with property owners, community organizations, and other local stakeholders to identify opportunities for additional open space and community services, such as community gardens and gathering places. I Eq, H, S, C Policy 4.9 Recreational Amenities. Encourage public and commercial recreational facilities in areas that are park and open space deficient. I Eq, H, C Policy 4.10 Thriving Downtown. Encourage new development and enhancement of Downtown Santa Ana through creative, sustainable, and innovative design solutions. General Plan Policy Framework 65A-36 30 The goal of the Noise Element is to appraise noise levels in the community, prepare noise contours to guide land use decisions, and establish measures that address current and future noise problems. This element works to ensure that the City limits the exposure of the community to excessive noise levels in noise -sensitive areas and at noise -sensitive times of day. The Noise Element is a mandated component of all general plans in the State per Government Code Section 65302(f). A noise element identifies and evaluates sources of noise problems in the community. The noise element is intended to analyze and quantify current and projected noise levels for all of the following sources: (A) Highways and freeways (B) Primary arterials and major local streets. (C) Railroad operations (D) Aviation operations, aircraft overflights, and ground functions related to airport operations. (E) Local industrial plants. (F) Stationary noise sources identified by local agencies as contributing to the community noise environment. Community Considerations Through the community engagement process for this General Plan, participants identified numerous noise considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Traffic noise • Noise from overcrowded residential structures • Noise generated by industrial facilities • Noise generated by commercial uses General Plan Policy Framework 65A-37 31 Noise Element December 4, 2018 GOAL 1: Ensure that existing and future land uses are compatible with current and projected local and regional noise conditions. Policy 1.1 Noise Standards. Utilize established Citywide Noise Standards and guidelines to inform land use decisions and guide noise management strategies. I Eq, Ed Policy 1.2 Sound Design. Encourage functional and attractive designs to mitigate excessive noise levels. 1 H, Ed Policy 1.3 Regional Noise Impacts. Collaborate with local and regional transit agencies and other jurisdictions to minimize regional traffic noise and other sources of noise in the City. i Eq, H Policy 1.4 Sensitive Uses. Protect noise sensitive land uses from excessive, unsafe, or otherwise disruptive noise levels. I Eq, H General Plan Policy Framework 65A-38 32 Noise Element December 4, 2018 GOAL 2: Reduce the impact of known sources of noise and vibration. Policy 2.1 Transportation Related Noise. Reduce noise generated from traffic, railroads, transit, and airports to the extent feasible. I Eq, H Policy 2.2 Stationary Related Noise. Minimize noise impacts from commercial and industrial facilities adjacent to residential uses or zones where residential uses are permitted. I Eq, H Policy 2.3 Temporary and/or Nuisance Noise. Minimize the effects of intermittent, short-term, or other nuisance noise sources.1 Eq, H, Ed General Plan Policy Framework 65A-39 33 Noise Element December 4, 2018 GOAL 3: Protect sensitive land uses from airport related noise impacts. Policy 3.1 Residential Development. Residential development within the John Wayne Airport (JWA) 65 dB(A) CNEL Noise Contour or greater is not supported. I Eq Policy 3.2 Flight Paths. Advocate that future flight path selection be directed away from existing noise sensitive land uses. I Eq, H Policy 3.3 Residential Mitigation. Require all residential land uses in 60 dB(A) CNEL or 65 dB(A) CNEL Noise Contours to be sufficiently mitigated so as not to exceed an interior standard of 45 dB(A) CNEL. I Eq, H, Ed General Plan Policy Framework 65A-40 34 The purpose of the Open Space Element is to identify and preserve open space areas that provide value to the community and enrich the quality of life. Such lands or waters provide value in the form of recreation, health, biodiversity, wildlife conservation and aesthetics. Additionally, open spaces are used for climate change mitigation and adaption, flood risk reduction, managed natural resources production, agricultural production, and protection from hazardous conditions. The Open Space Element will guide the City in its efforts to plan for open space lands in what is largely a built -out, urban environment. The Open Space Element is a mandated component of all general plans in the State of California pursuant to Government Code Section 65560. This Element will address open space issues related to natural resources, managed production of resources, outdoor recreation, and public health and safety. Open space goals related to conservation of natural resources and land uses are found in the Conservation and Land Use Elements, respectively. Community Considerations Through the community engagement process for this General Plan, participants identified numerous open space considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Insufficient open space for population • Inequitable distribution of open space • Unsafe parks • ADA accessibility • Lack of facility maintenance • Need for more community centers • More public events and programming • Senior services needed • Great cultural amenities (Bowers, Discovery Science Center, Zoo) General Plan Policy Framework 65A-41 35 Open Space Element December 4, 2018 GOAL 1: Provide a safe, accessible, sustainable, and diverse park and facility system with recreational opportunities accessible to all residents. Policy 1.1 Park Master Plan. Create and maintain a Santa Ana parks master plan that incorporates data on need, demographics, and health outcomes. I H, Eq, S Policy 1.2 Parks and Recreation Network. Establish a comprehensive and integrated network of parks, open space, and recreational facilities that maintains and provides a variety of active and passive recreational opportunities that meets the needs of all Santa Ana residents, regardless of age, ability, or income. I H, Eq, S Policy 1.3 Park Standard. Achieve a minimum park standard of two acres per 1,000 residents in the city. I H, Eq, S Policy 1.4 Park Connectivity. Establish and enhance options for residents to access existing and new park facilities through safe walking, bicycling, and transit routes. I H, Eq, S Policy 1.5 Development Amenities. Ensure all new development provides open space and effectively integrates pedestrian and multi -modal travelways to promote a quality living environment. I H, Eq, S Policy 1.6 Sustainable Landscape. Promote citywide use of drought tolerant landscape and development practices for wise water use and energy consumption. I S Policy 1.7 Community Building. Ensure that park facilities and programs reflect the priorities of residents in the surrounding neighborhoods, with attention to place -making elements that foster social interaction and community pride such as art, landscape, monuments, murals, play equipment, and seating. I C, Eq Policy 1.8 Creative Solutions. Develop creative and flexible solutions to create infill parks in neighborhoods where traditional pocket, neighborhood, and community parks are not feasible. I H, Eq, S Policy 1.9 Funding Sources. Explore and pursue all available funding for the acquisition of parkland, the development of park facilities, programming, and maintenance of existing and new parks, including nontraditional funding sources. I H, Eq Policy 1.10 Shared Use. Collaborate with school districts, faith -based communities, and community serving organizations to expand shared use facilities through cooperative agreements, as well as pursuing multiple use strategies of publicly owned land. I H, Eq Policy 1.11 Accessibility. Design new and renovated existing parks, recreation facilities, and trails to provide access to residents of all physical abilities. I H, Eq Policy 1.12 Neighborhood Needs. Consider unique neighborhood needs in the development of open spaces and programs. I H, Eq General Plan Policy Framework 65A-42 36 Open Space Element December 4, 2018 GOAL 2: Provide a system of parks, open spaces, and community centers that are well-maintained, safe, and healthy environments for all users. Policy 2.1 Safety. Create a safe environment through implementation of crime prevention through environmental design (CPTED) principles in public spaces. I H Policy 2.2 Neighborhood Engagement. Encourage residents, neighborhood groups, businesses, schools, organizations, and public agencies to partner in the creation and maintenance of safe and well maintained publicly -owned park and recreation facilities. H, Eq, Ed Policy 2.3 Hazardous Materials. Reduce or eliminate, as feasible, the use of pesticides and herbicides that negatively impact human health at park facilities and publicly accessible open spaces. I H, S Policy 2.4 Urban Forest. Maintain, preserve, and enhance the city's urban forest as an environmental, economic, and aesthetic resource to improve residents' quality of life. IH,S Policy 2.5 Urban Agriculture. Expand urban agriculture opportunities in private development and public spaces, including home gardens, community gardens, and urban farms. I H Policy 2.6 Facility Maintenance. Ensure all park facilities and open spaces are well maintained. H, Eq General Plan Policy Framework 65A-43 37 Open Space Element December 4, 2018 GOAL 3: Preserve, expand, and create additional open space areas and linkages throughout the City to protect the natural and visual character of the community, and to connect to local and regional activity centers. Policy 3.1 Recreational Corridors. Establish and maintain an integrated recreational and multi- modal commuter corridor network linking open spaces, housing, community services, and employment centers. I H, Eq, S Policy 3.2 Linking Development. Promote bicycle and pedestrian linkages and amenities throughout new and existing development to promote use of alternative modes of transportation and active lifestyles. I H, S Policy 3.3 Publicly Owned Land. Maintain and explore options for publicly owned land for the creation of open space pathways and corridors. I H, Eq, S Policy 3.4 Greenway Corridors. Coordinate with government and private sector to explore opportunities to incorporate pedestrian, multi -modal, and landscape amenities along the OC Streetcar route, flood control channels, and other underutilized sites. I H, Eq, S Policy 3.5 Visual Corridors. Protect visual corridors of and adjacent to public open spaces from intrusive and incompatible development. I S Policy 3.6 Naturalizing the Santa Ana River. Explore opportunities to reintroduce natural habitat along the Santa Ana River to provide natural habitat and educational and recreational opportunities. I S General Plan Policy Framework 65A-44 38 The Public Services Element aims to provide Santa Ana's diverse population with quality services and infrastructure for the existing and future population of the City. With growth comes the necessity to fulfill community needs and to ensure proper management of those needs. Therefore, it is important that public facilities and services are equitably distributed and maintained at sustainable levels throughout the community. The Public Services Element is an optional General Plan element. Section 65303 of the California Government Code enables a county or city to adopt "any other elements or address any other subjects, which, in the judgment of the legislative body, relate to the physical development of the county or city." An optional element must be consistent with the seven mandatory elements and, once adopted, carries the same legal weight as any of the mandatory elements. Community Considerations Through the community engagement process for this General Plan, participants identified numerous public services considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that are addressed by this Element: • Gang activity • Community oriented policing • Homelessness • Traffic control and safety • More public events • Senior services needed • Need better maintained facilities • Aging infrastructure • Crime affects City image • Restoring trust in Police Department • Clean drinking water • Efficient use of resources General Plan Policy Framework 65A-45 39 Public Services Element December 4, 2018 GOAL 1: Provide quality and efficient facilities that are adequately funded, accessible, safe, and strategically located. Policy 1.1 Maintenance and Design. Provide and maintain public facilities that reinforce community identity through high quality design. I C, S Policy 1.2 Equitable Distribution. Ensure public services and facilities reflect changing population needs and are equitably distributed. I Eq Policy 1.3 Cultural Centers. Support the expansion, creation, and continued operation of cultural institutions and organizations that serve Santa Ana residents. I C Policy 1.4 Civic Center Enhancements. Explore opportunities to activate the Civic Center by incorporating social, cultural, entertainment venue programming, and improving infrastructure and connectivity to Downtown and surrounding neighborhoods. I C Policy 1.5 Community Benefit. Collaborate with community stakeholders to expand recreational, educational, cultural opportunities, promote active lifestyles, and maximize community benefit. I H, Eq Policy 1.6 Facility Locations. Support land use decisions related to community facilities that preserve quality of life for the City's residents and surrounding community. I H, Eq Policy 1.7 Sustainable Practices. Use sustainable and energy efficient building and maintenance practices as part of the development or rehabilitation of any public facility or capital improvement. I S Policy 1.8 Access for All. Improve Connectivity and ADA accessibility at all public facilities. I Eq Policy 1.9 Supportive Housing. Collaborate with community stakeholders to identify and encourage the development of suitable sites for housing with support services. I Eq Policy 1.10 Fair Share. Require that new development pays its fair share of providing improvements to existing or creation of new public facilities and their associated costs and services. I Eq, S General Plan Policy Framework 65A-46 40 Public Services Element December 4, 2018 GOAL 2: Preserve a safe and secure environment for all people and property. Policy 2.1 Public Safety Agencies. Collaborate with the Police Department and the Fire Authority to promote the implementation of crime prevention through environmental design principles for all development projects. I Ed, S Policy 2.2 Code Compliance. Require all development to comply with the provisions of the most recently adopted fire and building codes and maintain an ongoing fire inspection program to reduce fire hazards. I Ed Policy 2.3 Crime Prevention. Coordinate, partner, and build relationships with community members and stakeholders to develop and implement crime prevention strategies through restorative practices that focus on rehabilitation, community service, and public safety. I Ed, Eq Policy 2.4 Community Partnerships. Provide alternative methods to improve police services that support community partnerships, build public trust, and proactively address public safety issues. I Ed, Eq Policy 2.5 Safety Programs. Promote early childhood education and prevention programs that improve public safety and maintain ongoing community education opportunities. I Ed Policy 2.6 School Safety. Collaborate with local schools to establish and implement comprehensive and coordinated services that enhance the security and safety of students, educators, and administrators on and off campus. I Ed Policy 2.7 Staffing Levels. Maintain staffing levels for sworn peace officers, fire fighters, emergency medical responders, and civilian support staff to provide quality services and maintain an optimal response time citywide. I Eq Policy 2.8 Efficiency Standards. Ensure that equipment, facilities, technology, and training for emergency responders are updated and maintained to meet modern standards of safety, dependability, and efficiency. I S Policy 2.9 Quality Employees. Enhance public safety efforts by actively seeking a diverse and talented pool of public safety candidates who possess the values and skills consistent with those of the community. I Eq, Ed General Plan Policy Framework 65A-47 41 Public Services Element December 4, 2018 GOAL 3: Supply, maintain, and expand City services and infrastructure improvements through innovative funding options and sustainable practices. Policy 3.1 Service Partnerships. Partner with service providers to ensure access to a wide range of state-of-the-art telecommunication systems and services for households, businesses, institutions, public spaces, and public agencies. I Eq, S Policy 3.2 Wastewater Service. Provide and maintain wastewater collection facilities which adequately serve existing land uses and future development projects while maximizing cost efficiency. I Eq, S Policy 3.3 Wastewater Technology. Explore new technologies that treat and process wastewater that reduce overall capacity needs of centralized wastewater systems. I S Policy 3.4 Drainage Facilities. Expand and maintain storm drain facilities to accommodate the needs of existing and planned development. I Eq Policy 3.5 Green Infrastructure. Incorporate sustainable design and Low Impact Development (LID) techniques for storm water facilities and new development to achieve multiple benefits, including enhancing preserving and creating open space and habitat and improving runoff water quality. I S Policy 3.6 Water Service. Provide water quality and service that meets or exceeds State and Federal drinking water standards. I S, H Policy 3.7 Emergency Connections. Maintain emergency connections with local and regional water suppliers in the event of delivery disruption. I H, S Policy 3.8 Conservation Strategies. Implement cost effective conservation strategies and programs that increase water use efficiency. I S Policy 3.9 Household Recycling. Expand household recycling services and educational awareness programs. I Ed, S Policy 3.10 Development Projects. Encourage new development and reuse projects to incorporate recycling and organics collection activities aligned with state waste reduction goals. I S Policy 3.11 Waste Collection. Support infill development projects that provide adequate and creative solutions for waste and recycling collection activities. I S Policy 3.12 Sewer and Water. Maintain and upgrade sewer and water infrastructure through impact fees from new development and exploring other funding sources. I H, S General Plan Policy Framework 65A-48 42 ELI uxweanrovno The goal of the Safety Element is to eliminate and minimize risks associated with natural and man-made hazards including floods, droughts, earthquakes, fires, and climate change. By assessing and preparing for levels of risk, the City can endure the range of safety hazards and adapt to changes over time. The Safety Element is a mandated component of all general plans in the State per Government Code Section 65302(g). This element will address safety issues related to natural disasters and environmental hazards. Safety goals and policies related to police, fire, and health services can be found as part of the Public Services Element. Community Considerations Through the community engagement process for this General Plan, participants identified numerous safety considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that should are addressed by this Element: • Mitigation of environmental vulnerabilities • Flooding • Hazardous materials • Seismic hazards • Resilient utility system General Plan Policy Framework 65A-49 43 Safety Element December 4, 2018 GOAL 1: Protect life and minimize property damage, social and economic disruptions caused by flood and inundation hazards. Policy 1.1 Regional Collaboration. Continue to consult with agencies to maintain the most current flood hazard and floodplain information; use the information as a basis for project review and to guide development in accordance with regional, state, and federal standards. I S Policy 1.2 Climate Change. Evaluate the need to expand the capacity of flood control facilities to minimize flood hazards to people, property, and the environment based on changing weather conditions associated with climate change. I S Policy 1.3 Storm Drain Infrastructure. Update the Drainage Master Plan to prioritize improvements to existing system deficiencies, and plan for infrastructure needs that support the General Plan land use vision. I S Policy 1.4 Critical Infrastructure. Design, construct, and retrofit critical public facilities and utilities located in flood -prone areas to maintain their structural and operational integrity during floods. I S Policy 1.5 Flood Awareness. Promote education of flooding hazards and bring awareness to resources and programs that assist property owners, residents, and businesses to protect their homes and property from flood damage. I Ed Policy 1.6 Alternative Flood Control Methods. Explore and encourage natural flood control infrastructure and techniques that create new open areas to capture storm water, recharge aquifers, prevent flooding, and that expand recreation opportunities. I S Policy 1.7 Surface Water Infiltration. Encourage site drainage features that reduce impermeable surface area, increase surface water infiltration, and minimize surface water runoff during storm events on private and public developments. I S Policy 1.8 Development in Flood Zone. Continue to implement federal, state, and regional requirements related to new construction in flood plain areas to ensure that future flood risks to life and property are minimized. I H, S General Plan Policy Framework 65A-50 44 Safety Element December 4, 2018 GOAL 2: Protect residents and environmental resources from contaminated hazardous material sites and minimize risks associated with the use, production, storage, transport, and disposal of hazardous materials. Policy 2.1 Regional Collaboration. Consult and collaborate with federal, state, and regional agencies to identify and regulate the disposal and storage of hazardous materials, and prevent the illegal transportation and disposal of hazardous waste. I H, S Policy 2.2 Hazardous Waste Generators. Collaborate with appropriate agencies to identify and inventory all users and handlers of hazardous materials to proactively mitigate potential impacts. I H, S Policy 2.3 Transportation and Storage. Coordinate with the County of Orange, the California Department of Transportation, and other relevant parties to enforce state and local laws regulating the storage and transport of hazardous materials within the City of Santa Ana, and limit truck routes through the City to arterials streets away from natural habitats and sensitive land uses. I Eq Policy 2.4 Planning and Remediation. Determine the presence of hazardous materials and/or waste contamination prior to approval of new uses and require that appropriate measures be taken to protect the health and safety of site users and the community. Eq, H Policy 2.5 Education and Best Practices. Improve public awareness of best practices for and participation in household hazardous waste management and disposal. I Ed Policy 2.6 Existing Sensitive Uses. Partner and collaborate with property owners, businesses, and community groups to develop strategies to protect and minimize risks from existing hazardous material sites to existing nearby sensitive uses. I Eq, Ed General Plan Policy Framework 65A-51 45 Safety Element December 4, 2018 GOAL 3: Provide a safe environment for all Santa Ana residents and workers while minimizing risk of injury, loss of life, property damage, and social and economic impacts caused by geologic and seismic hazards. Policy 3.1 Hazard Identification. Explore opportunities to identify and encourage the upgrade of structures and facilities that are at risk from seismic hazards. I H, S Policy 3.2 Seismic and Geotechnical Standards. Ensure that all new development abides by the current city and state seismic and geotechnical requirements and that projects located in areas with potential for geologic or seismic hazards prepare a hazards study. H Policy 3.3 Key Public Facilities and Systems. Coordinate with relevant utility service providers to ensure that major utility systems remain resilient in the event of a major earthquake and are seismically upgraded. I S Policy 3.4 Multiagency Education Campaign. Develop cooperative partnerships and strengthen communication among public agencies, residents, nonprofit organizations, and businesses to promote sharing of educational information regarding seismic and geologic hazards and safety. I Ed General Plan Policy Framework 65A-52 46 �N7 The Urban Design Element establishes the long range vision for the physical design, visual qualities, and sensory experience of the City. This Element, in coordination with other Elements of the General Plan, orchestrates a safe, functional, and aesthetically pleasing urban environment. Specifically, the Urban Design Element addresses the public realm, building form, and establishes programs and measures to improve the physical setting in which community life takes place while curtailing obsolete, dysfunctional, and chaotic development. The Urban Design Element is an optional General Plan element. Section 65303 of the California Government Code enables a county or city to adopt "any other elements or address any other subjects, which, in the judgment of the legislative body, relate to the physical development of the county or city." An optional element must be consistent with the seven mandatory elements and, once adopted, carries the same legal weight as any of the mandatory elements. Community Considerations Through the community engagement process for this General Plan, participants identified numerous urban design considerations and values that they believe should form the basis of and be addressed by this element. Specifically, participants highlighted the following topics, areas of concern, and community strengths that should are addressed by this Element: • Architectural heritage • Maintain City streetscape • Maintain well designed private property • Graffiti and trash • Trees and greenscape • Creative development • Compatible development • Well designed and accessible public open space • Safe attractive mobility system • People places • Architectural diversity • Sustainable design • Attractive and healthy urban forest. General Plan Policy Framework 65A-53 47 Urban Design Element December 4, 2018 GOAL 1: Improve the physical character and livability of the City to promote a sense of place, positive community image, and quality environment. Policy 1.1 Design Quality. Ensure all developments feature high quality design, materials, finishes, and construction. I Eq Policy 1.2 Public Art. Require public art as part of major developments and the public realm improvements. I C Policy 1.3 Delineation of Public Spaces. Encourage site design that clearly defines public spaces through building placement and orientation. I Eq, Ed Policy 1.3 Safety through Design ..ncorporate crime prevention design features into private and public developments to prevent loitering, vandalism and other undesirable activities. H, Eq Policy 1.5 Attractive Public Spaces. Encourage community interaction through the development and enhancement of plazas, open space, people places, and pedestrian connections with the public realm. I C, H, Eq Policy 1.6 Active Transportation Infrastructure. Support the creation of citywide public street and site amenities that accommodate and promote an active transportation -friendly environment. I H, Eq, S Policy 1.7 Visual Clutter. Promote the beautification and accessibility of the public realm through the undergrounding of utility lines and aboveground equipment. I Eq General Plan Policy Framework 65A-54 48 Urban Design Element December 4, 2018 GOAL 2: Improve the built environment through sustainable development that is proportional and aesthetically related to its setting. Policy 2.1 Enhanced Public Realm Experience. Encourage development to enhance the existing environment through the use of creative architectural design and sustainable streetscape treatments that are consistent on each corridor. I C, S Policy 2.2 Compatibility with Setting. Encourage the compatibility of new development with the scale, bulk, and pattern of existing development. I Eq Policy 2.3 New Life for Old Buildings. Encourage the preservation and reuse of historic and architecturally significant structures to maintain urban fabric and reduce overall energy consumption associated with new construction. I C, S Policy 2.4 Intentional Design. Encourage design and architecture on private and public property that accentuate focal points, activity nodes, and historic areas. I C Policy 2.5 Relation to Surroundings. Ensure new development exhibits a functional, comfortable scale in relation to its neighborhood. I C, Eq Policy 2.6 Preserve Neighborhood Character. Preserve the character and uniqueness of existing districts and neighborhoods. I C, S Policy 2.7 Building and Strengthening Identity. Collaborate with community stakeholders to strengthen and foster development of community identity and district character through complementary architecture, unique streetscapes, and programming. I C, S Policy 2.8 Innovative Development Strategies. Explore development and subdivision options that promote new opportunities for sustainable, livable, and affordable development. Eq, S Policy 2.9 Visual Aesthetic of Built Environment. Ensure that on and off -premise signs and communication equipment are situated to minimize detrimental impacts to the aesthetic quality, character, and image of the surrounding area. I H, Eq Policy 2.10 Greening the Built Environment. Promote planting of shade trees and require, where feasible, site design that uses appropriate tree species to shade parking lots, streets, and other facilities with the goal of reducing the heat island effect. I H, S Policy 2.11 Sustainable Practices. Encourage sustainable development through the use of drought tolerant landscaping, permeable hardscape surfaces, and energy efficient building design and construction. I S General Plan Policy Framework 65A-55 49 Urban Design Element December 4, 2018 GOAL 3: Create and maintain safe and attractive travelways through coordinated streetscape design. Policy 3.1 Landscaped Travelways. Promote visually appealing and sustainable landscaping along freeway corridors, roadway medians, and parkways. I H, S Policy 3.2 Activate Paths. Strengthen and activate the design of paths and adjacent development through enhanced and cohesive streetscapes, architectural themes, and landscaping. I H, S Policy 3.3 Foster Community Building. Promote a safe environment that facilitates social interaction and improves active transportation along corridors. I C, H Policy 3.4 Improvements to Streetscape. Promote streetscape improvement plans that are responsive to community needs, the nature of adjacent uses, path characteristics, street classification, pedestrian scale, and view corridors. I H, Eq Policy 3.5 Activity Node Linkages. Promote streetscape designs that link major destination points, landmarks, and local activity nodes. I H, S Policy 3.6 Linear Park System. Support open space improvements along roadways and non- vehicular paths, such as bike or multi -use trails. I H, Eq, S Policy 3.7 Natural Recreational Amenities. Enhance natural and recreational features of Santiago Creek and the Santa Ana River corridors and provide linkages throughout the community. I H, S Policy 3.8 Pleasant Travel Experience. Maximize the use of street trees and parkway landscaping to create a pleasant travel experience and positive City image. I H, S Policy 3.9 Scenic Views. Preserve and enhance scenic views along corridors and other travelways. I C, S Policy 3.10 Coordinated Street Improvement Plans. Coordinate citywide landscape medians and street trees with land use plans and development projects. I H, S Policy 3.11 Urban Forest. Create a diverse urban forest with a variety of sustainable trees in medians, parkways, public open space, and private development. I H, S General Plan Policy Framework 65A-56 50 Urban Design Element December 4, 2018 GOAL 4: Create nodes and urban hubs throughout the City to foster community, education, arts and culture, business activities, entertainment, and establish Santa Ana as a vibrant center. Policy 4.1 Intentional Development. Support development growth in nodes consistent with the City's vision as the dynamic urban center of Orange County. I C, S Policy 4.2 Image Making through Architecture. Promote development within nodes to reflect the significance of the area and cultivate a positive image of Santa Ana through high quality architecture. I C, S Policy 4.3 Activate Open Space. Ensure architectural and landscape design activates open space, as a means to promote community interaction and enhance the aesthetic quality of development. I C, H, S Policy 4.4 Vibrant Street Life. Encourage development within nodes that promote pedestrian activities, enhanced amenities, and engaging designs that allow for discovery, excitement, and social interaction. I H, Eq, S Policy 4.5 Open Space at Nodes. Promote creative, multi-purpose public space within nodes, major development projects, and people places. I H, Eq Policy 4.6 Community Led Installations. Provide for opportunities to incorporate distinctive, innovative and community informed public art in plazas and open spaces, to promote pedestrian activity. I C, Eq General Plan Policy Framework 65A-57 51 Urban Design Element December 4, 2018 GOAL 5: Create focal points at major intersections to enhance community identity and open space. Policy 5.1 Building Presence at Intersections. Create a strong presence at focus intersections by locating intense building mass and open space areas along the street that include high quality design and materials. I C Policy 5.2 Linkages Between Public Art. Promote public art in conveniently accessible and prominent places to physically and visually link development with streetscape and paths. IC,Eq Policy 5.3 Activating Intersections. Encourage projects at focal intersections that incorporate vertical design features or mixed-use development as a means to provide visual presence and encourage pedestrian activity in these areas. I C, S Policy 5.4 Intersections for all Travel Modes. Strengthen active transportation connections and amenities at focal intersections to promote a pleasant and safe experience for non - motorized forms of travel. I H, Eq, S General Plan Policy Framework 65A-58 52 Urban Design Element December 4, 2018 GOAL 6: Create new and protect existing City landmarks and memorable places that convey positive images. Policy 6.1 Design with Landmarks. Strengthen the design of development to frame and enhance landmarks, natural features, and view corridors. I C, S Policy 6.2 Appropriate Design Near Landmarks. Ensure development near existing landmarks is supportive and respectful of architecture, site, and other design features of the landmark. I C, Eq, S Policy 6.3 Create New Landmarks. Encourage new development that will lead to the creation of new landmarks in the City and bolster community pride. I C General Plan Policy Framework 65A-59 53 Urban Design Element December 4, 2018 GOAL 7: Create and strengthen gateways into the City that promote a sense of arrival. Policy 7.1 First Impression. Strengthen the architectural design of developments near gateways to communicate a sense of arrival and inspire positive images of the City. I C Policy 7.2 Streetscape Improvements. Enhance Santa Ana's gateways to include unique and distinctive streetscape improvements. I C Policy 7.3 Improved Freeway Interface Design. Collaborate with Caltrans and adjacent jurisdictions to enhance freeway interchanges that create a sense of place and arrival. Ed, C Policy 7.4 Monuments at Gateways. Promote imaginative and distinctive features, such as entry monuments, public art, decorative landscape, directional signs, landscape statements, and architectural elements that project a positive image and community character at City gateways. I C Policy 7.5 Transit Corridor Beautification. Improve transit and rail corridors and interfaces to create a welcoming experience for all travelers. I C, Eq, S General Plan Policy Framework 65A-60 54 HEAL EQUITY i ---,NTA 65A-62 INTRODUCTION We're excited to introduce the Santa Ana General Plan: A Shared Vision. This policy framework serves as an outline to our New General Plan which will comply with State law and serve as a blueprint to guide the future development of our City. The Santa Ana General Plan will serve as a tool for achieving our Shared Vision by communicating the vision, values and goals for physical development, sustainability and quality of life for the entire community. Santa Ana is the world-class capital of Orange County that celebrates diversity, neighborhoods, cultural heritage and will be the leader in creativity, sustainability, and that will continue to foster a sense of community. Santa Ana embraces its history and promotes sustainability by creating open space, investing in education, celebrating neighborhoods, and supporting equitable business opportunities. These affirmative statements were drafted by our own community and refined by our General Plan Advisory Group. These aspirations are forward facing, ambitious, and inspiring. They are a reflection of our community values and contain emergent themes of sustainability, culture, diversity, and equity. Our community of ambassadors expects us to follow through with our promise with a New General Plan that holds every stakeholder, business and resident responsible for: Our Shared Vision The Policy Framework contains three components: 1) General Plan Purpose, 2) Santa Ana's Shared Vision, and 3) Element Goals and Policies. GENERAL PLAN PURPOSE Plan Organization Santa Ana's General Plan will be a dynamic working document with new elements to embrace forward looking topics, practices, and philosophies. The new document is based on a Vision Statement and Five Core Values established as part of an extensive community outreach effort. The plan will serve to reflect an inclusive community effort. The Santa Ana General Plan will be organized by three Sections and will cover all seven required elements as required by State Law. These sections are Services and Infrastructure (I), Natural Environment (II), and Built Environment (III). Within these volumes, a total of 12 elements will serve to replace a total of 16 existing elements last revised comprehensively in 1982. Four optional elements will be added to cover topic areas of special or unique relevancy to our city. Two existing elements, which include the Circulation and Housing Elements are being amended separately at this time or will be revised as required by State Law*. The planning horizon year for this sustainably new community vision is 2040. General Plan Policy Framework 1 65A-63 • Community Element • Conservation Element • Economic Prosperity Element • Historic Preservation Element • Land Use Element • Noise Element December 4, 2018 • Open Space Element • Public Services Element • Safety Element • Urban Design Element • Housing Element* • Mobility/Circulation Element* A General Plan is the affirmation of a city's future development goals and provides policy statements to achieve those goals. Each element within the three sections will contain individual goals and multiple policies. Goals are statements of desired future conditions toward which efforts and use of resources are directed. Policies are statements that guide decision-making and specify an intended level of public commitment on a subject. Goals and policies are structured within a General Plan according to elements with each element containing its own set of goals and policies. Implementation actions related to each Goal or Policy will be included as a separate Implementation Plan to ensure successful monitoring of our progress as a community. Five Core Values will apply to all Elements and be found throughout all Goals and Policies as part of the New General Plan. These Core Values will form part of the framework of the General Plan and establish the guiding principles that are embedded at every level of a plan and form its foundation. The purpose of the General Plan Update is to comprehensively update the 1982 plan to reflect current conditions, establish a shared vision of the community's aspirations and create the policy direction to guide Santa Ana's long-term planning and growth over the next two decades. Legal Requirements Santa Ana's General Plan will be compliance with the requirements of Government Code Section 65300 et seq. The General Plan provides the framework for management and utilization of the City's physical, economic and human resources. California State law requires that each city prepare General Plan and adopt a comprehensive, long-term General Plan for its future development. State law permits cities to include optional elements in their General Plans, beyond the seven mandated elements, thereby providing local governments with the flexibility to address the specific needs and unique character of their jurisdiction. By providing a basis for rational decision-making, this document guides civic decisions regarding land use, design of buildings and open spaces, the conservation of existing housing and the addition of new dwelling units, the provisions of supporting infrastructure and public services, protection of environmental resources, allocation of fiscal resources, and the protection of residents from natural and human -caused hazards. General Plan Policy Framework 2 65A-64 Introduction December 4, 2018 Table 1 provides a summary on compliance with legally required General Plan Elements as well as how optional elements will correspond to one another. In addition, the new General Plan will comply with California's Office of Planning and Research requirements and appropriate environmental documentation in conformance with the latest provisions of the California Environmental Quality Act (CEQA). The Voice of our Community The Policy Framework was developed following over one year of extensive community outreach (2016), one-on-one interviews with the City Council, General Plan Advisory Group dialogue (2017), Interagency Technical Advisory Committee guidance and constant community feedback through multiple outreach efforts throughout the process. The following bullet - points summarize various meetings and outreach activities conducted throughout the development of the Policy Framework. In total, the effort resulted in the creation of a Vision Statement, Five Core Values, 37 Goals, 288 Policies and Five Focus Study Areas. 2016 — Initial Community Outreach • General Plan Video • 40 Meetings • Youth Summer Program • Pop-up events Citywide • Summarized in Community Outreach Executive Summary 2017 — General Plan Advisory Group (GPAG) • 14 GPAG Meetings • Issues Identification Review • Draft Vison Statements • Draft Goals and Policies • Land Use Study Areas • Summarized in GPAG Report to City Council 2018 — General Plan Technical Advisory Group (GPTAC) • Seven GPTAC Meetings • Refined Draft Goals and Policies • Resource Collection of Existing Conditions • Land Use Focus Study Areas • Summarized in GPAG Report to City Council • Presented Vision and Core Values to City Council • Second Community Outreach Effort General Plan Policy Framework 3 65A-65 Introduction December 4, 2018 SANTA ANA'S SHARED VISION A Shared Vision Based on our community values, the following statement expresses our aspirations for the future in order to enhance quality of life for all: "Santa Ana is a city that promotes the health & wellness of all residents, it has a civic culture that actively embraces the power of diversity; our city invests in resources that create economic opportunities for the next generation, and it is a community that celebrates our past while working together to create a sustainable future." Our Core Values Core values are traits or qualities that represent an individual's highest priorities. They influence a person's decisions and shape who they are and become. When this concept is applied to a General Plan, core values establish the guiding principles that are embedded at every level of a plan and form its foundation. Through an iterative process of reviewing the feedback gathered during earlier community outreach efforts, the following five principles, or "Core Values," emerged as the highest priorities of the Santa Ana community: Health, Equity, Culture, and Education. These core values will be discussed and expressed throughout each of the elements and sections of the new General Plan and will become key principles that guide future decision-making. The following descriptions were established by the GPAG to help define the draft core values: Health The people of Santa Ana value a physical environment that encourages healthy lifestyles, a planning process that ensures that health impacts are considered, and a community that actively pursues policies and practices that improve the health of our residents. Our residents value taking all necessary steps to ensure equitable outcomes, expanding access to the tools and resources that residents need, and to balance competing interests in an open and democratic manner. Santa Ana values land use decisions that benefit future generations, plans for the impacts of climate change, and incorporates sustainable design practices at all level of the planning process. Culture Our community values efforts that celebrate our differences as a source of strength, preserve and build upon existing cultural resources, and nurture a citywide culture of empowered residents. Education We are a city that values the creation of lifelong learners, the importance of opening up educational opportunities to all residents, and investing in educational programs that advance our residents' economic wellbeing. General Plan Policy Framework 4 65A-66 Introduction December 4, 2018 Focus Areas Following their review of the Community Outreach Executive Summary and draft Goals and Policies related to the Land Use Element, the General Plan Advisory Group participated in an exercise to identify areas suited for future development or overall improvement. Members of the General Plan Advisory Group were then asked to markup provided maps to identify areas. In general, the areas identified by the GPAG are located along major travel corridors, the future OC Streetcar line, the Willowick Golf Course, and are in line with feedback received during the initial outreach phase that focused on protecting existing neighborhoods from future development impacts. These maps were then taken to the City's Land Use consultant for evaluation and discussion with City Staff, General Plan Technical Advisory Committee (GPTAC), City Council Subcommittee (EDBIT) and presented to City Council as a Study Session in October 2018. A comprehensive drill -down evaluation of these Focus Areas by the City Council is scheduled for early 2019. A total of five study areas were identified: 1) OC Streetcar Neighborhood, 2) 55 Dyer South, 3) Grand/17th, 4) South Main Street, and 5) MainPlace Mall. The five areas identified and mapped are included below. ,:-IC. Na9hbrvhvod .�I.Yer Snnh v Sornh MYn __Sri M1raAaee AlA %PiY.dI. Ex'rhng Vlan Ncas 0 HarMMrN lhelranrM1CmmNr SpvM1S %an Moro F xr hN �etl Uss OvnUy $urc O ir.nn[zrcrpm cae OMarnwn rlan © Maptiv<Peuae rm�eplrcMOue Mem ® &is1a111reNCnnitlur SFrrcIM%en Bau Mapiartum ••O Same A- P,—ATramwrWtiun Cenls ••O" IXSLeercerend5tauprrlYlennaJl �^— Gry BwndaN —�� S4Jureollu9umae Unla All Pirn General Plan Policy Framework 5 65A-67 Introduction ELEMENT GOALS AND POLICIES December 4, 2018 The New General Plan will include a total of 12 Elements organized into three sections (Services and Infrastructure, Natural Environment, and Built Environment). Below are Goals and Policies pertaining to each element including a brief background discussion followed by respective goal(s) and policies. Each Policy is followed by characters: C (Culture), H (Health), Eq (Equality), S (Sustainability) and Ed (Education) where respective Core Values have been embedded into the statement. General Plan Policy Framework 6 65A-68 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 4, 2018 TITLE: RECEIVE AND FILE REPORT ON THE EFFECTIVENESS OF THE HOUSING OPPORTUNITY ORDINANCE AND NEXT STEPS IN DEVELOPING POLICY OPTIONS FOR FUTURE CONSIDERATION (STRATEGIC PLAN NO 5,3) Cd II :7:(•1� •PJ.NItl11&i=Eel :IWA APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO r FILE NUMBER CI ANAGER RECOMMENDED ACTION Receive and file report on the effectiveness of the Housing Opportunity Ordinance and next steps in developing options for future consideration. On November 28, 2011, City Council adopted the Housing Opportunity Ordinance (Ordinance) to encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within new developments or the conversion of rental units to condominium ownership when the number of units exceeds the densities permitted under the General Plan. The Ordinance was amended by the City Council on October 6, 2015 to increase the in -lieu fee among other key changes. (See Exhibit 1 for a more detailed history.) Under the Ordinance, developers may elect to satisfy their inclusionary unit requirements for a project, in whole or in part, by payment of a fee in -lieu of constructing some or all of the required inclusionary units on-site or off-site. The amount of the in -lieu fee depends on the total number of housing units in the project. In the case of a residential project containing between five (5) and. twenty (20) residential lots or residential units, the fee is five dollars per square foot ($5.00/SF) of the sum total of the number of habitable square feet within the entire project. In the case of a residential project comprised of more than twenty (20) residential lots or residential units, the amount of the fee is fifteen dollars per square foot ($15.00/SF) of the sum total of the number of habitable square feet within the entire project. In accordance with Section 41-1910 of the Ordinance, 'Between July 1, 2018 and December 31, 2018, staff shall report on the effectiveness of the Housing Opportunity Ordinance and provide options for council cons'deration on the components of this ordinance, including, but not limited to, the monetary amount of inclusionary in -lieu fee per square foot." Staff has prepared the following report on the effectiveness of the Ordinance followed by policy areas staff will evaluate. 6513-1 Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 2 Effectiveness of the Ordinance On -Site Development: Since 2011, a total of 33 units have been developed on-site as a result of the Ordinance, including 23 ownership units for -sale and 10 rental units: Units Built On -Site Ownership Rental TOTAL 23 10 33 In -Lieu Fees Generated. A total of $13,885,436 in in -lieu fees have been generated since October 2011 as a result of the Ordinance. These fees were generated from a total of 9 projects that opted to pay the in -lieu fee instead of building units on-site. If those 9 projects had instead built the inclusionary housing units on-site, a total of 393 low-income units or 263 very low-income units would have been created. By comparison, there were 2,589 market -rate units produced or are under construction. (See Exhibit 2 for more detailed information.) Affordable Housing Units under Construction / Pre -Construction with In -Lieu Fees: A total of 108 units are under construction / pre -construction with an investment of in -lieu fees generated. This includes a $4,775,000 loan of in -lieu fees to develop 57 units of affordable housing at the Santa Ana Arts Collective and a pre -loan commitment of $1.3 million of in -lieu fees to develop 51 units of affordable housing at the Tiny Tim Plaza project: Units Under Construction / Pre -Construction with In -Lieu Fees Project # of Units TOTAL Santa Ana Arts Collective 57 108 Tiny Tim Plaza 51 In addition, $3,131,700 of in -lieu fees was committed by City Council on September 14, 2018 to create 200 emergency shelter beds at the Link interim emergency shelter. An update on staff efforts to replenish the in -lieu fees provided for the Link is provided in a separate staff report for the December 4th City Council meeting. The remaining balance of in -lieu fees generated was made available by City Council on June 19, 2018 in RFP # 18-056 for Affordable Housing Development. A recommendation is forthcoming by a Review Panel formed by staff on the award of these remaining in -lieu fees. 65B-2 Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 3 FEEDBACK PROVIDED BY THE EDIBT COMMITTEE At the November 26, 2018, Economic, Development, Infrastructure, Budget and Technology Council Committee (EDIBT) meeting, the Committee provided feedback regarding areas of the Ordinance to be evaluated by staff. The feedback provided by the Committee included the following options for future consideration: 1) On -Site Development: a. Require inclusionary units to be built on-site. b. Require all developments to comply with the Ordinance instead of only those projects that trigger the Ordinance when the number of units exceeds the densities permitted under the General Plan. However, exclude adaptive -reuse projects that are more difficult to develop. c. Remove the option for developers to build 10% of the units on-site for very low- income families and only permit developers to develop 15% of the units on-site for low-income families. 2) In -Lieu Fees: a. Establish a more competitive in -lieu fee option with criteria. 3) Density Bonus Concession: a. Make the concession merit -based to provide more very low-income units on-site, serve special needs populations and/or provide deeper affordability. NEXT STEPS AND POLICY AREAS STAFF WILL EVALUATE For the next steps, staff will conduct stakeholder outreach with the private market developer community and nonprofit community before returning to City Council for a Work Study session in early Spring 2019. Using the feedback from the EDIBT Committee, staff has prepared a non - exhaustive list of five key policy areas to evaluate for the City Council. By fiscal year end, staff anticipates to have an amended Ordinance ready for City Council review and consideration that incorporates revisions proposed through stakeholder feedback and the Work Study session. Following are the five policy areas and options that will be evaluated: L City Density Bonus Concession: The current Ordinance allows second density bonus on top of State density bonus, which can almost double the base density permitted. Staff is unable to negotiate additional project requirements that match the General Principles adopted by City Council on March 20, 2018 in the Affordable Housing Funds Policies and Procedures because the density bonus concession in the Ordinance allows a developer to receive the concession without any further merit -based requirements or criteria. Therefore, regarding the density bonus concession, staff will study the following policy options for future City Council consideration: 1) No change. 2) Remove the City Density Bonus Concession. L• Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 4 3) Modify the concession so that a Density Bonus has merit -based criteria to align with policy priorities adopted by City Council on March 20, 2018 in the Affordable Housing Funds Policies and Procedures to provide more very low-income units on-site, serve special needs populations and/or provide deeper affordability. Il. In -Lieu Fee Payment versus On -Site Development Requirement: The current Ordinance allows a developer to opt -out of building inclusionary housing units on-site by paying the in -lieu fee. Since the creation of the Ordinance in October 2011, only 33 affordable housing units have been developed on-site and 108 units are currently under construction. This is a total of 141 affordable housing units. (Staff do not currently have an estimate on how many additional affordable housing units will be produced through RFP # 18-056.) Meanwhile, as stated above, if the same 9 developers who opted to pay the in -lieu fee had built the units on-site, the city would have approximately 393 low-income units or 263 very low-income units. This is nearly two or three times the amount of affordable housing units created. Every private market decision by a developer is based on the economics of their project and their profit margin. Specifically, if it is more cost effective for a developer to pay the in -lieu fee versus developing the affordable housing units on-site with restrictive rental/ownership covenants, a developer will choose the option to pay the in -lieu fee. Therefore, regarding the calculation of the in -lieu fee payment option versus on-site development requirement, staff will study the following policy options for future City Council consideration: 1) No change. 2) Eliminate the in -lieu fee entirely as an option thereby requiring the development of units on-site or off-site. 3) Modify the in -lieu fee to be more comparable to other cities. Ill. In -Lieu Fee Payment Timing: The current Ordinance requires a developer to pay their in -lieu fee prior to issuance of a building permit. The timing of the in -lieu fee payment has become an issue for some developers of multi- phase and single-phase projects. In one case, a developer requested to phase their in -lieu fee payment in three phases such that they could close on their financing. In another case, a developer requested to pay their in -lieu fee at the issuance of their certificate of occupancy instead of their building permit. In addition, for large phased developments, it can be difficult for the City to administer and a burden for the developer to finance. Therefore, regarding the timing of the in -lieu fee payment, staff will study the following policy options for future City Council consideration: 1) No change. 2) Allow the payment of in -lieu fees in phases based on a developer's project schedule, to be negotiated by staff. 3) Allow the payment of in -lieu fees at the issuance of the certificate of occupancy or when the building permit is finalized. L. Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 5 IV. Applicability of the Ordinance - a. General Plan Update Completion: The current ordinance only applies to projects when the number of units exceeds the densities permitted under the General Plan. As a result, there are various projects that do not trigger the Ordinance. Specifically, this does not allow the City to require inclusionary housing for residential projects in residential zones. It is anticipated that with the adoption of the new General Plan, all housing projects will be in residential zones. Generally, since the adoption of the Ordinance more affordable housing units would have been created if all of the projects had been required to build on-site. Therefore, regarding the applicability of the Ordinance, staff will study the following policy optio s for future City Council consideration: 1) No change, recognizing that revenues and housing units will decrease once the General Plan is update completed. 2) Modify the ordinance to apply to all housing projects. b. Adaptive Reuse: The current Ordinance requires adaptive reuse projects toy provide onsite affordable housing or pay an in -lieu fee. Simultaneously, the City's Adaptme Reuse Ordinance allows developers to convert vacant or underused existing office or commercial space to residential uses. Certain incentives are provided to encourage the provision of housing in this way. Therefore, regarding the applicability of the Ordinance, staff will study the following policy options for future City Council consideration: 1) No change. 2) Create a reduced requirement for adaptive reuse projectts. 3) Eliminate the applicability of the Ordinance on adaptive reuse projects. c. Non -Residential Uses - The current Ordinance only applies to residential projects. Some cities require inclusionary housing fees for non-residential projects. (Therefore, regarding the applicability of the Ordinance, staff will study the following policy options for future City Council consideration: 1) No change. 2) Modify the Ordinance to create an inclusionary housing fee for non-residential uses. V. Percent Set -Aside for On -Site Units: The current Ordinance allows developers the option to develop 10°/q units on-site for very low- income families or 15% units on-site for low-income families. If only the higher threshold of 15% is applied, the City will receive more affordable housing units than the 10% alternative. Therefore, regarding the percentage of units to be built on-site, staff ill study the following policy options for future City Council consideration: 1) No change. 2) Modify to allow a reduced percent set-aside for very low-income as well as other housing including Special Needs Housing or housing types that meet oiu Regional Housing Needs Assessment requirements. L• Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 6 3) Remove the option for developers to build 10% of the units on-site for very low-income families thereby only permitting developers to develop 15% of the units on-site for low- income families. To facilitate Council consideration of additional policy areas not listed above, staff has provided comparisons of other inclusionary housing ordinances as provided in Exhibits 3 and 4. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy C (Provide that Santa Ana residents, employees, artists and veterans receive priority for affordable housing created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed under state law). FISCAL IMPACT There is no fiscal impact associated with this action. �M Steven A. Mendoza Minh Thai Executive Director Executive Director Community Development Agency Planning and Building Agency Exhibits: 1. History of the Housing Opportunity Ordinance 2. Detailed Breakdown of In -Lieu Fee Payments and On -Site Units 3. Summary Comparison of other Inclusionary Housing Ordinances 4. Staff Report from the City of San Diego on other Inclusionary Housing Ordinances EXHIBIT 1 History of the Housing Opportunity Ordinance The first version of the Housing Opportunity Ordinance (HOO) was brought before the City Council as a Work Study Session on January 18, 2011. The initial proposal was conducted as part of the Housing Element update process. The draft HOO proposed that 15% of new housing should be set aside as affordable for 45 years (owner -occupied) and 55 years (rental). This draft HOO would be triggered by any applications for up -zoning, increases in residential density, increases in percentage of residential development, conversion of commercial or industrial to residential uses, and conversion of rental units to condominium ownership due to the Palmer court case. Other development options included the payment of in -lieu fees, substantial rehabilitation of existing apartments, or the construction of off-site units. A Planning Commission work-study session on March 14, 2011 included a technical study by Kathe Head with Keyser Marston and Associates (KMA) that provided a market-based formula for determining the in -lieu fee. On March 28, 2011 the Planning Commission recommended Zoning Ordinance Amendment (ZOA) No. 2011-01. Staff presented this proposal to the Community Redevelopment and Housing Commission on April 5, 2011. On May 9, 2011 an ad-hoc committee was formed and held two meetings on June 7 & 30, 2011 to discuss the proposed ordinance in detail. This discussion included a debate between the merits of a fixed fee vs. a market conditions fee. This proposal required developments of five or more residential units to include a 15% set-aside of affordable units on-site while accepting in -lieu fees only under unique conditions. On November 7, 2011 the City Council reviewed Item # 75B to adopt ZOA No. 2011-01. The Mayor and Council amended the proposed ordinance and voted 6-1 in favor of Ordinance NS - 2825. On November 28, 2011 the City Council held a second reading and adopted the first version of the Housing Opportunity Ordinance. [In a related action, on December 2, 2014 the City Council passed the Adaptive Reuse Ordinance (NS -2874) which required reuse projects to follow the HOO requirements.] A special meeting to revise the HOO was held by the Planning Commission on July 20, 2015. They voted 3-2 to recommend ZOA No. 2015-03 making the following changes to the ordinance: the fees would be assessed on a square footage basis, all affordability restrictions were to last 55 years, allowance for 15% moderate income of ownership projects, an explicit exemption for projects submitted prior to the 2011 HOO adoption, adding an exemption for adaptive reuse projects, adding exemptions for retrofitting, and requiring a 1 for 1 sq. ft. match for off-site construction. The City Council reviewed the proposals on August 4, 2015. Following additional revisions, a second reading was held on September 1, 2015 and formally adopted as Ordinance NS -2881. A minor revision clarifying administrative procedures and the applicability of the HOO was adopted as Ordinance NS -2885 on October 6, 2015. 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In addition, information on the effect of recently enacted legislation, Chapter 376 of Statutes of 2017 (AB 1505) was requested. AB 1505 allows cities to require that rental residential development include a certain percentage of affordable rental units and provide alternative means of compliance. This bill supersedes a court decision that deemed inclusionary zoning policies for rental residential development in conflict with the state's Costa -Hawkins Rental Housing Act. BACKGROUND What is Inclusionary Housing? Inclusionary housing refers to programs and strategies that promote the creation of affordable housing when new development occurs.' This includes fee-based policies such as housing impact or linkage fees, which are fees assessed on new development intended to mitigate a resulting demand in affordable housing. Inclusionary zoning is a type of inclusionary housing strategy that requires or encourages a certain portion of affordable housing units to be provided within market - rate projects.2 ' Thaden, Emily and Ruoniu, Wang, "Inclusionary Housing in the United States: Prevalence, Impact, and Practices," Lincoln Institute of Land Policy, September 2017. 'United States Department of Housing and Urban Development, Office of Policy Development and Research, "Inclusionary Zoning and Mixed -Income Communities," httus://www.huduser. ov portal/periodicals/em/snringl3/highlight3.html, OFFICE OF THE INDEPENDENT BUDGET ANALYST 202 C STREET MS 3A SAN DIEGO, CA 92101 Tel; (619) 23&V1M13J.Xt3)-236-6556 EXHIBIT 4 Methodology According to the most recent survey available of inclusionary programs available, 149 jurisdictions in California were identified with inclusionary housing programs,3 This report is limited to the six most populated cities with reported inclusionary housing policies. Chula Vista was also selected to provide a regional comparison to the City of San Diego. The report discusses the most significant elements of each city's policy in a general format beginning with some background, the main or base requirement of the policy, alternatives to the base requirement, and impacts of city policies. FISCAL/POLICY DISCUSSION Recent Legislation — AB 1505 AB 1505 authorizes a city or county to require, as a condition of development of residential rental units, that the development include a certain percentage of units that are affordable to moderate and lower-income households. The new law became operative in January 2018 and supersedes a 2009 court decision in Palmer/Sixth Street Properties v. City of Los Angeles (Palmer) that inclusionary zoning for rental residential development conflicts with the state's Costa -Hawkins Rental Housing Act. The Costa -Hawkins Rental Housing Act gives rental housing owners the right to set initial and all subsequent rental rates for a unit built after 1995. In response to the Palmer decision, many jurisdictions suspended their inclusionary zoning ordinances for rental housing development. As shown in this report, many jurisdictions have also changed the structure of the policy to be fee-based and allow, as an alternative to the fee, the production of affordable units within a development project, in order to comply with the Costa -Hawkins Rental Housing Act. A summary of some of the identified impacts from AB 1505 are provided at the end of this report. An overview of inclusionary housing programs is provided below. City of San Diego Inclusionary Housing Ordinance Back rg ound: The City of San Diego's fee-based Inclusionary Housing Ordinance was passed in 2003 and is one of several ways that affordable housing is created and preserved in throughout the city. According to the Inclusionary Affordable Housing Ordinance the purpose of the program is "to encourage diverse and balanced neighborhoods with housing available for households of all income levels." Base requirement: San Diego's Inclusionary Housing Program requires that all new residential development that is at least two units is subject to an Inclusionary Affordable Housing Fee. These fees are collected and placed in the Affordable Housing Fund. Instead of the fee, the developer can provide affordable units on or off-site of the project. Off-site units are allowed if they assist in 7 Thaden, Emily and Ruoniu, Wang, "Inclusionary Housing in the United States: Prevalence, Impact, and Practices," Lincoln Institute of Land Policy, September 2017. 65B-14 EXHIBIT 4 meeting the goal of providing economically balanced communities and the goal of providing transit -oriented development. Fee: For residential developments under 10 units, the fee rate per square foot is on a sliding scale and increases for each additional unit. For projects that are 10 units or more, the current rate is $10.82 per square foot. The fee is calculated by multiplying the per square foot rate and the aggregate gross floor area of all units within the development. Alternative: Instead of paying the fee, developers of for -sale unit projects may provide 10% of the total number of dwelling units in the project affordable to households earning up to 100% of the area median income of a family (AMI). Exemptions: An exemption is provided for residential development, receiving a financial or other form of assistance, with at least 10% of total dwelling units affordable to, and occupied by households earning up to 65% of AMI. Impact: Since the inception of the Inclusionary Housing Program, $133.3 million has been collected in fees. In addition, 2,531 affordable units have been built with inclusionary fees and 957 affordable units have been built by developers under this ordinance and through other incentive programs. There are also 907 affordable units in the pipeline to come. City of Los Angeles Measure JJJ— Affordable Housing Requirements and In -Lieu Fee Back rg oun : The City of Los Angeles uses many ordinances and policies to promote housing development for residents of all incomes. The City had been working on a mixed -income housing ordinance but it was stalled with the Palmer decision.4 However, voters approved different affordable housing requirements and an in -lieu fee through Measure JJJ in November 2016. Basic Requirement: The measure requires developers of certain residential projects to provide affordable units or pay a fee instead. Projects subject to Measure JJJ are those that are at least 10 units and need changes to land uses or maximum building height that results in an increase in residential density of more than 35%, or allows a residential land use which was previously not allowed. Projects must meet one of the on-site affordability provisions or one of the specified alternative options. In addition, the measure includes various labor requirements related to pay, training, and local hiring for construction done on the project. Affordability Provisions: Affordability requirements vary depending on whether the project produces rental units or for -sale traits. For rental projects, affordability requirements also depend on: 1) whether they increase residential density by more than 35%; 2) whether it creates residential use where it was previously not allowed; and 3) what household incomes are targeted. Lower 4 City of Los Angeles, Development of a Mixed Income Housing Ordinance, report to the Housing, Community and Economic Development Committee February 3, 2010, htto://clkrep.lacity.org/onlinedoes/2008/08-2614 rot plan 2- 3-10.ndf e Through a General Plan amendment or zone change 3 65B-15 EXHIBIT 4 affordability requirements exist for rental projects that result in an increase in residential density beyond 35%, as opposed those that result in new residential land use. Affordability requirements for for -sale projects increase depending on the household income targeted — the lower the income, the lower the percentage required since they require the greatest subsidy. Table 1 below summarizes these requirements. Alternatives: A developer can satisfy affordable housing requirements by building affordable units off-site of the project if affordability levels are comparable to those required for units provided on- site, and they are provided in proximity of the project. Other alternatives include acquiring and preserving a property containing at -risk affordable units, or paying an "in -lieu fee". In -Lieu Fee: The rental fee varies depending upon the unit size and affordability level. The for - sale fee depends on the size, affordability level, which community plan area the project is located, and housing type. According to the affordability gaps study, fee rates for for -sale units vary significantly: from a few hundred dollars per market -rate unit to over $400,000 per unit assuming the lowest rate that satisfies the affordability requirements. Additional Incentives: In addition to increased residential density or attaining new residential use for the development, a project under this program that satisfies the affordable housing requirements is also entitled to three incentives included in the state's density bonus program. Table 1: City of Los Angeles Measure JJJ Affordable Housing and Fee Requirements Rental Pro'ects` �_ For -Sale Proiects' Affardable UnitPercentagesr _ _ Increase in Residential Density 5% for extremely low income and 11 % for very low income; or Over 35%!. either: 20% for lower income; or 6% for very low income or 40% for moderate income 15% for lower income Residential Use Where Not : 5% for extremely low income and Same as above Previously Allowed either: 11 % very low income or 20% for lower income In -Lieu Fee Increase in Residential. Density Example: $46,350 per one bedroom i Could range between a few hundred Over 35% ! unit assuming .5%for extremely low ; to over $400,000 permarket-rate income and 60/for very low income j unit Residential Use Where Not Example: $66,585 per one -bedroom Same as above Previously Allowed'.. unit assuming 5% for extremely low income and 11% for very low ' The affordability unit percentages indicate the minimum percentage of affordable units required within a residential development. Affordable units must have rents or prices set at a level that is affordable to the specified targeted household income. 2 Rental income thresholds: Extremely low-income units target household incomes up to 30% of AMI; very low-income units target households up to 50% of AMI, and lower-income units target households up to 80% of AMI.6 3 For -sale income thresholds: very low-income targets households up to 50% of AMI, lower-income targets households up to 80% of AMI, and moderate -income targets households up to 120% of AMI. 6 In -Lieu Fee Study for Compliance with City of Los Angeles Measure JJJ, Affordability Gaps Study, March 13, 2017, htti)s://planniniz.lacity.org/ordiiiances/does/TOC/LA Measure JJJ Affordability Gap Analysis 03132017 Edit.pdf 4 65B-16 EXHIBIT 4 Impact: City staff indicate that initial results of Measure JJJ show a significant decline of proposed housing units through General Plan amendments and zone changes, which may be due to a confluence of factors. However, staff have also seen positive results emerging from a separate program that originated from Measure JJJ, called the Transit Oriented Communities Affordable Housing Incentive Program (TOC Program). The TOC Program promotes affordable housing development located in a one-half mile radius around a major transit stop by providing incentives such as additional density and reduced parking. There are varying levels of affordability required targeting extremely -low income households, very low-income households, and lower income households. Additional incentives could be granted if certain labor standards are met, but this is discretionary. Los Angeles also has an affordable housing linkage fee program which became operational in June 2018. For -sale and rental housing development are exempt from the fee if they include affordable units where at least 40% are for moderate -income households; 20% are for low-income households; 11% are for very low-income households; or 8% are for extremely low-income households. The fee per square foot varies by size of the development project, but ranges between $1 in a low market area and $18 in a high market area .7 Since the linkage fee has just gone into effect, there is no information available on its impacts. However, city staff estimate that the fee could generate about $110 million per year that would go towards affordable housing. City of San Jose Inclusionary Housing Ordinance Background: San Jose's Inclusionary Housing Ordinance was adopted in January 2010. However, its implementation was stalled because it was challenged by the California Building Industry Association claiming that it was an unconstitutional exaction. In 2015, the city's ordinance was upheld by the California Supreme Court which instead characterized residential inclusionary zoning ordinances as "land use restrictions", and therefore not subject to special scrutiny triggered by exactions.' This ruling allowed San Jose's Inclusionary Housing Ordinance to be reactivated after a grace period, but only for for -sale units (not for rental units) due to the Palmer court decision. San Jose's Inclusionary Housing Ordinance kept the requirements related to rental units in law but made its operation contingent upon the Palmer decision being overturned, or the state legislature authorizing control of rents of inclusionary units. With the enactment of AB 1505, San Jose has only recently been able to fully implement its Inclusionary Housing Ordinance for both for -sale and rental units even though it has been on the books since 2010. Base Requirement: The ordinance requires that all residential development projects that are 20 units or more include 15% of the housing on-site at a cost that is affordable to specified income 7 City of Los Angeles, Affordable Housing Linkage Fee, Ordinance Background and Frequently Asked Questions, February 2017. s California Building Industry Association v. City of San Jose, March 10, 2016 https://harvardlawreview.ore/2016/03/California-buildine-industry-assn-v-city-of-san-ig e/, accessed July 6, 2018. 5 65B-17 EXHIBIT 4 levels. Projects that create for -sale units must provide units at an affordable sales price to households earning up to 110% of AMI. Projects that provide new rental units must satisfy the 15% obligation with the following breakdown: • 9% of the total dwelling units at an affordable rent for moderate income households earning up to 80% of AMI • 6% made affordable to very low-income households earning up to 50% of AMI. hicentives: The program offers developers incentives to provide housing on-site such as: an increase in project density that would otherwise not be allowed; reduction in parking requirements; reduction in minimum setback requirements; the ability to provide an alternative unit type as compared to the market rate units; the ability to provide alternative, but functionally equivalent, amenities than market rate units; and additional assistance from the city for such things as selling and renting affordable units to qualified households. Alternatives: The program allows for the alternatives listed below. Off-site: Developers may provide affordable units off-site if at least 20% of the total units in the residential development are affordable. For -sale affordable units must be available to households earning no more than 110% of AMI. Rental projects must also satisfy the 20% obligation, but by providing 12% of the total dwelling units in the project affordable to lower-income households earning up to 60% of AMI, and 8% for very low-income households earning up to 50% of AMI. In -Lieu Fee: Developers may pay a fee instead of constructing the affordable units within the project. The current fees are $167,207 per inclusionary home and $125,000 per inclusionary unit through June 30, 2019. These rates reflect the average city subsidy per unit, which is then applied to the 20% requirement for the proportion of affordable units within the residential development. Other alternatives include: • Dedication of land instead of constructing inclusionary units • Purchase or transfer of affordable housing credits between developers • The acquisition and rehabilitation of existing market rate units for conversion to affordable units • Allowing developers to provide affordable units that are restricted by an agreement between the developer and the United States Department of Housing and Urban Development • Allowing a developer to propose a combination of options outlined above. Impact: Since San Jose's inclusionary program has only recently begun to fully operate, there is no information currently available on how many affordable units have been created attributed to the city's inclusionary housing program. Housing Impact Fee Program San Jose also established a Housing Impact Fee Program in 2014 and started collecting fees in 2016. The affordable housing impact fee applies to new small residential rental development (with M• EXHIBIT 4 3 to 19 dwelling units) at a fee of $17.83 per square foot. The impact fee does not apply to for -sale unit developments. San Francisco Inclusionary Housing Program Back rg ound: San Francisco has had an inclusionary housing program since 1992, which was discretionary up until 2002. It was recently amended in the fall of 2017 and is currently transitioning to becoming fully operational by 2028. Base Requirement: All residential development projects that are at least 10 units pay an Affordable Housing Fee. The Affordable Housing Fee is different for each unit type. The fee is calculated by multiplying the fee per unit (i.e. a one -bedroom unit has a fee of $268,960) by the number of units of that type in the project, times the fee rate. The fee rate is 30% or 33% since it reflects the off- site affordable unit percentage requirement for either rental units or for -sale units. Alternatives: As an alternative to paying the fee, a developer can construct affordable units on or off-site of the residential development. Affordability requirements vary depending upon the size of the project and whether the units are for -sale or for rent. These requirements are summarized in Table 2 below. On-site: The city is currently phasing in increases to affordable housing obligations for on-site projects. For small for -sale and rental unit projects (10 to 24 units), the number of affordable units required to be constructed on the project site is 12.5% of all units and must be available for low- income households. This percentage will be increased annually until it reaches 15% in 2024. For large projects (25 units or more), 21% of all units within for -sale unit projects must be affordable, with certain proportions targeting low-income households, moderate -income households, and middle-income households. For rental unit projects, 19% of all units are required to affordable, with a breakdown similar to for -sale units. Off-site: If developers elect to construct affordable units at a different site than the development, the affordability obligation increases from 12% to 20% for small projects. For large for -sale unit projects, the required number of affordable units is 33% of all units in the development, broken down by low-income, moderate -income, and middle-income households. Similarly, 30% of all units within a rental unit project are required to be affordable with a comparable breakdown by household income. The following table summarizes the details of San Francisco's Inclusionary Housing Program. 7 65B-19 EXHIBIT 4 Table 2: Summary of San Francisco's Affordability Requirements',' Small For -Sale Units Small Rental Units Large For -Sale Units Large Rental Units On-site 12.5% for low income' 12.5% for low income' 2104 19%, 10% for low 10% for low 5% for moderate 4% for moderate 5%%for middle 4% for middle Off-site 20% for low income 1 20% for low income 33% 30% 18% for low 18% for low 8%for moderate 6% for moderate 'Affordable for -sale units for low-income households earn up to 80% of AMI, moderate -income households earn up to 105% of AMI, and middle-income households cam up to 130% of AMI. 'Affordable rental units for low-income households earn up to 55% of AMI, moderate -income households earn up to 80% of AMI, and middle-income households earn up to 110% of AMI. 315% at full implementation 426% at full implementation 524% at full implementation In act: It is too early to identify the impacts of the city's new Inclusionary Housing Program. However, the most recent housing inventory report indicates that in 2017, 421 inclusionary units were added which accounts for 28.8% of all affordable units provided through all city programs.9 City of Sacramento Mixed Income Housing Ordinance Background: In 2015, the Sacramento City Council modified its Mixed Income Housing Ordinance to a fee-based policy in compliance with the Palmer decision. Prior to 2015, Sacramento had a project -percentage requirement of 5% of total dwelling units to be affordable to low-income households earning up to 80% of AMI and 10% for very low-income households with income up to 50% of AMI. These units were required to be built on the site of the development project, to the extent possible. The City cites one of the reasons for moving away from the project -percentage approach was the difficulty of marketing for -sale inclusionary units due to a limited range of qualified buyers. 10 Base Requirement: The Ordinance requires that an affordable housing impact fee be assessed for all new market rate housing units, with the intent of providing housing for a variety of incomes and family types. Residential developments larger than 100 acres are additionally required to develop a Council -approved mixed -income housing strategy. The strategy demonstrates how the project provides housing for variety of incomes and family types. It may also provide for fee credits for land dedication, construction of affordable units, or another mechanism that leads to affordable housing. 12017 San Francisco Housing Inventory, San Francisco Planning Department, http•//defaultsfl)lanningorg/publications reports/2017 Housing Inventonypdf 11 City of Sacramento City Council Report, Mixed Income Housing Ordinance Update, Report ID: 2015-00668, 65B-20 EXHIBIT 4 Affordability requirements: The ordinance states that multi -dwelling development projects constructed for fee credit may contain any proportion of affordable dwelling units. Affordable units must be targeted to low-income households earning up to 80% of AMI. It also provides that the maximum number of affordable dwelling units in a multi -unit residential development project is 150. Fee: The fee is $2.85 per square foot for housing units up to a certain density. For multi -unit dwellings, the fee is reduced to $0 at 40 dwelling units per acre, with the intent to incentivize such development. Dwelling units located in a specified Housing Incentive Zone are charged $1.23 per square foot. The fee is adjusted annually for inflation. Exem to ion: The ordinance exempts various development projects from paying the impact fee, including projects in which at least 10% of the dwelling units are affordable for a duration of no less than 30 years. Impact: According to the most recent annual report on the Mixed Income Housing Ordinance, $1.7 million in fees and interest have been collected since the implementation of the ordinance in 2015. There have not been expenditures on development of affordable housing yet." City of Oakland Affordable Housing Impact Fee Background: The Oakland City Council adopted development impact fees for affordable housing, transportation, and capital improvement in May 2016 and they went into operation in September of that year. The Affordable Housing Impact Fees are being phased in over three years 12 which will largely be completed by fiscal year 2019. The impact fee is intended to compensate for the increased demand for affordable housing generated by market -rate residential development projects within the City of Oakland. Base Requirement: As a condition of a building permit for new housing units, the developer must pay the impact fee or provide affordable housing units on-site or off-site of the project. Fee: The fee varies by housing type and in which of the three "impact fee zones" the project takes place. The payable fee is the product of the fee per housing unit, and the number of additional housing units. The bottom of the range for the fee per housing unit in Table 3 reflects the zone that has the most affordable housing costs, while the top end of the range reflects areas that are the most expensive. Zone 2 lies between these figures. 11 City of Sacramento City Council Report, Annual Reports of the Housing Trust Fund, Mixed Income Housing Ordinance, and HOME Investment Partnerships Program, June 26, 2018, http://sacramento.granicus.com/MetaViewer.phhp?view id=21&event id=3250&meta id=527433. 12 City of Oakland Transportation, Capital Improvements, and Affordable Housing Impact Fees Summary, ham://www2.oaklandnet.com/oakeal /groups/ceda/documents/report/oak063468.pddf 9 65B-21 EXHIBIT 4 Table 3: City of Oakland Affordable Housing Impact Fees Housing Type Fee Per Housing Unit FY 2019 Multi -family ____ Fee ranges from $3,000 to $221000 Townhome Fee ranges from $1,000 to $20,000 Single-family ___ Fee ranges from $1,000 to $23,000 Alternatives: To be exempt from the impact fee, the developer may instead provide on-site or off- site affordable housing units. On-site: Developers can choose any of the following options for providing affordable housing: 13 • 10% of the total number of housing units in the project are moderate -income units; • 10% are low-income units; or • 5% are very low-income units. Off-site: For affordable units provided off-site, the requirements outlined above apply and the units must be located within one half mile of the development project, unless otherwise exempted. Impact: The impact fee report for FY 2017 includes partial -year information on the initial implementation of the Affordable Housing Impact Fee as it is being phased in. The city collected $478,000 in fees and there is an additional $7.2 million in revenue assessed but is not due yet. 14 At the time of the report, 10 development projects were including on-site affordable housing in lieu of paying the impact fee. These projects translate to 152 affordable units. 15 City of Chula Vista Balanced Communities Policy Background: Chula Vista's Inclusionary Housing program was adopted in 1981 and applies to all residential development of 50 units or more. It is intended to increase affordable housing in new communities in the eastern part of the City. Base Requirement: The program requires that 10% of the total number of dwelling units in a residential development project are to be affordable. At least 5% must be affordable to low-income households and 5% are affordable to moderate -income households. The policy encourages construction of affordable units on the site of the project for for -sale developments. A developer of a rental project who has not received any city assistance may voluntarily fulfill this obligation to not conflict with Costa -Hawkins. 13 Moderate income units are affordable to households earning up to 120% of AMI, low income units are affordable to households earning up to 80% of AMI, and very low-income units are affordable to households earning up to 50% of AMI. 14 Fees are paid in two installments: 50% due prior to issuance of a building permit and 50% prior to issuance of a certificate of occupancy (i.e. project completion). 11 City of Oakland Impact Fees Annual Report Agenda Report, November 2017, littp://www2 oaklandnet com/sovernmeiit/o/PBN/OurOrganization/PlanningZoning/s/Impac Tee/index.htm 10 65B-22 EXHIBIT 4 The city uses the following income categories for determining affordable rents and prices: very low-income households earn up to 50% of AMI, low-income households earn between 50% and 80% of AMI, and moderate -income households earn between 80% and 120% of AMI. Alternatives: A developer may use any combination of alternatives to satisfy the inclusionary requirements. A developer can elect to provide affordable units off-site. This can be done through construction of new affordable units; acquiring and rehabilitating existing market rate units to affordable units; transfer of affordable housing credits from another developer; and through special needs housing projects or programs such as shelters and transitional housing. hi -Lieu Fee: The in -lieu fee is currently set at $124,220 per unit and is multiplied by number of affordable housing units required. It applies to both moderate and low-income households for either rental or for -sale units. The fee is based upon the affordability gap of what low and moderate - income households can afford to pay for a home and the median sales price of a home in Chula Vista. Exem tp ions: To avoid increasing low-income housing concentrations, the program exempts designated census tracts called "Area of Low/Moderate Income Concentration" in which the median income is below the citywide median income and it also falls within the Low to Moderate Income Boundary as defined by the federal government. Anecdotally, City of Chula Vista staff indicated that they have seen more market -rate development in those areas, which would have the effect of diluting the concentration of affordable housing. Incentives: The policy encourages production of affordable housing for very low and low-income households over housing targeting moderate income households by reducing the required affordable housing requirement. For example, low-income units count for a 1.5 unit credit when it is provided in place of a moderate -income unit. Therefore, for every additional low-income unit provided more than the requirement, the obligation to provide moderate -income reduces by 1.5 traits each. Similarly, if very low-income units are provided, each one counts as a 2.0 unit credit in place of a moderate -income unit. Impact: No recent data was available at the time of this report that reflects how many affordable units or fees have been collected because of this policy. However, the Housing Element of the city's General Plan adopted in 2013 stated that during the 2005-2010 reporting period, the city constructed or entered into inclusionary agreements for the addition of 334 low-income and 183 moderate income housing units in the city. 16 Impacts of AB 1505 Because AB 1505 became operative in January 2018, little is known about how cities have reacted or intend to react in response. The bill would allow cities to implement inclusionary zoning policies for rental units that are based in prescribed project -percentages of affordable units, as opposed to the common fee-based structure. The policies included in this review currently have requirements for rental units but are structured in a way that they are in compliances with Costa -Hawkins. Through conversations with jurisdictions in this report, many cities have recently amended their " City of Chula Vista, Housing Element of the General Plan, 2013 htip://www.chulavistaca.gqv/home/`.showdocuinent?id=5503. 11 65B-23 EXHIBIT 4 inclusionary housing policies before AB 1505 was enacted, which tools significant political will to get adopted. These cities appear to be currently focusing on implementing these measures and monitoring their progress as opposed to contemplating adopting revised inclusionary zoning policies in response to AB 1505. However, both San Francisco and San Jose have already adjusted their policies in response to AB 1505. Prior to enactment of AB 1505, San Francisco allowed developers to build affordable rental units on-site or off-site if they waive their Costa -Hawkins rights through an agreement. The city has removed references to this requirement in municipal code as these agreements are no longer necessary. San Jose has had inclusionary requirements for rental units in law for many years but they have not been operative because they were contingent upon a change in the Palmer ruling or a legislative change. The enactment of AB 1505 makes these provisions operative. Also, San Jose used to place a Housing Impact Fee on large rental unit projects but now these projects have been incorporated into the requirements of the Inclusionary Housing Ordinance. CONCLUSION As evident in this report, inclusionary housing programs vary widely in structure and complexity. The policies reflect the unique needs and priorities of each jurisdiction. Los Angeles' Measure JJJ lead to the creation of an incentive program that is starting to see preliminary positive results in encouraging affordable housing near major transit stops. San Jose provides developers numerous incentives to provide affordable units on-site as well as many alterative options. San Francisco targets middle and moderate incomes, because as stated in its Housing Element Plan, "public subsidies tend to fund very low and low-income housing, with very limited grants allocated for moderate -income home buyers." Sacramento's policy places value on higher density development by exempting high density projects from fees. Chula Vista encourages developers to develop in certain areas by not charging fees in areas that already have a high concentration of affordable housing. It also provides additional incentives when units for low- income households are provided over units for moderate -income households. Finally, San Diego's policy is the most focused policy in comparison to other jurisdictions, targeting low and median - income households. Many of the policies reviewed in this report have been recently modified so it is difficult to assess the outcomes of the programs and whether they are fulfilling their intended purpose. This report can be used as a reference to compare the City of San Diego's inclusionary policy to how other jurisdictions have structured their policies. Additional research could be done in the future to assess whether the City of San Diego's policy is fulfilling its intended purpose and whether it reflects and addresses our greatest local needs. r i Kissee e Fi l & Policy Analyst APPROVED: Andrea Tevlin Independent Budget Analyst 12 65B-24 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 4, 2018 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF AQUA APARTMENTS AND NEW RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATEGIC PLAN NO. 5,3) -X0XM ��WMANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 131 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Conduct a new Tax Equity and Fiscal Responsibility Act Hearing in consideration of the issuance of tax exempt bond financing by the California Statewide Communities Development Authority on behalf of Aqua Housing LP (the `Borrower"), for the benefit of Aqua Apartments (the "Project') to finance the acquisition, rehabilitation, improvement, and equipping of the Project, a 57 -unit multifamily rental housing project located at 317 East 17th Street, Santa Ana, California. 2. Adopt a new resolution approving the issuance of revenue bonds by the California Statewide Communities Development Authority in an amount not to exceed $30,000,000 for the purpose of financing the acquisition, rehabilitation, improvement and equipping of Aqua Apartments, a 57 -unit multifamily rental housing project. DISCUSSION On December 19, 2017, City Council conducted a TEFRA hearing in consideration of the issuance of tax exempt bond financing by the California Statewide Communities Development Authority for the benefit of the Borrower and adopted a resolution approving the issuance of bonds. However, the project is expected to close on their financing after December 19, 2018 which is when the prior TEFRA approval expires. TEFRA approvals are only valid for one year and the prior hearing was held on December 19, 2017. Therefore, staff is requesting City Council to approve a new resolution to allow the project to have a valid TEFRA approval at the time of their closing. Community Development Partners (the "Developer') has requested that the California Statewide Communities Development Authority ("CSCDA" or the "Authority") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal 75A-1 Aqua Apartments — TEFRA Hearing December 4, 2018 Page 2 amount not to exceed $30,000,000 (the "Bonds") for the acquisition, rehabilitation, improvement and equipping of a 57 -unit multifamily rental housing project located at 317 East 17th Street, Santa Ana, California, generally known as Aqua Apartments. However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. The bonds to be issued by the Authority are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of the project. California Statewide Communities Development Authority CSCDA is a joint powers authority sponsored by the League of California Cities ("League") and the California State Association of Counties ("CSAC"). CSCDA was created by the League and CSAC in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 members, including the City of Santa Ana. CSCDA has issued more than $60 billion through 1,400 plus financings since 1988 and consistently ranks in the top 10 of more than 3,000 nationwide public issuers of tax-exempt debt, as measured by annual issuance amount. Both the League and CSAC continue to sponsor CSCDA. Issuance fees are shared with both the League and CSAC which have kept member dues unchanged and provide other benefits to all city and county members. Backoround on the Proiect The Aqua Apartments project includes the acquisition and demolition of an underutilized, blighted motel site to construct 57 units of permanent supportive housing targeting chronically homeless individuals and small families. The project is located at 317 E. 17th Street. The approximately 34,000 square foot development will provide 12 studio and 45 one -bedroom apartment homes (including one manager's unit) with open space, a community room, offices for property management and Mercy House Living Centers staff who will provide on-site case management and services coordination for each resident. Rent levels at the property will be restricted for 55 years to households earning at or below 60% of the Area Median Income. Additionally, the property will have a Project -Based Voucher Housing Assistance Payments Contract in place further restricting eligibility to chronically homeless individuals. 75A-2 Aqua Apartments — TEFRA Hearing December 4, 2018 Page 3 The property is situated along the north side of 17th Street, with the 1-5 freeway bordering the property to the east and single family and multifamily buildings to the west. The building design includes one level of an on -grade structured garage with 36 parking stalls along with guest parking near the entrance to the property. There are two 4 -story residential buildings, the first of which includes the management and services offices along 17th street, in the commercial zoned section of the property. Buildings are connected by a catwalk and serviced by an elevator. Interior units will be improved with energy efficient appliances, low -flow plumbing fixtures, solid surface countertops, vinyl plank flooring, A/C and heat. The owner will pay utilities and common area laundry will be provided. The project will be financed through 4% federal low-income housing tax credit equity, permanent hard debt, Affordable Housing Program funds, Mental Health Services Act funds, and deferred developer fee. Fifty-six Project -Based Vouchers (PBVs) from the Santa Ana Housing Authority have been awarded, which will ensure all residents have rental assistance and pay no more than 30% of their income. Mercy House and the property management company will follow a Housing First model and make every effort to help applicants get approved for and then maintain housing. Mercy House will take applicant referrals from the Coordinated Entry System and work with applicants to secure housing. The Project received site plan / design review approval on June 20, 2017, and received an allocation of 4% low-income housing tax credits in October 2018. Construction start is anticipated by February 2019 with completion in April 2020. The Housing Element of the City's General Plan contains various goals and policies which are intended to provide a diversity of quality housing, affordability levels and living experiences that accommodate Santa Ana's residents to foster an inclusive community. Additionally, the General Plan encourages development of affordable rental and ownership housing for seniors, people with disabilities, families with children, and people needing emergency, transitional or supportive housing options. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The City received a payment of $832.40 in November 2018 to hold a TEFRA Hearing for this project that was deposited into Account # 01102002-53902. APPR VED AS TO FUNDS AND ACCOUNTS: Steven A. Mendoza Ka hryn Downs, CPAP Executive Director Executive Director Community Development Agency Finance and Management Services Agency Exhibits: 1. Resolution 2. Notice to Applicant 75A-3 75A-4 EXHIBIT 1 RESOLUTION NO. 2018- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE AQUA APARTMENTS WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the "Agreement'), among certain local agencies throughout the State of California, including the City of Santa Ana (the "City'), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Aqua Housing LP or a partnership created by Community Development Partners (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds (the "Bonds") in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $30,000,000 in outstanding aggregate principal amount, to finance or refinance the acquisition, construction and development of a 57 - unit multifamily rental housing project located at 317 E. 171h Street, Santa Ana, California, generally known as Aqua Apartments (the 'Project') and operated by Solari Enterprises, Inc.; and WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986(the "Code");,and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the members of this City Council (this "City Council") are the applicable elected representatives of the City; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and WHEREAS, such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project (the 'Refunding Bonds"), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and 75A-5 EXHIBIT 1 WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority. It is the purpose and Intent of the City Council that this resolution constitute approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. Section 3. The issuance of the Bonds shall be subject to approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to repayment or administration of the Bonds. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to: (i) provide any financing with respect to the Project; (li) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary with respect to the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The City Manager and applicable Executive Directors of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing approved hereby. Section 6. This resolution shall take effect immediately upon adoption. ADOPTED this 01 day of December, 2018. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney a Miguel A. Pulido Mayor 75A-6 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 75A-7 EXHIBIT 1 75A-8 MAYOR Miguel A. Pulido MAYOR PRO TEM Michele Martinez COUNCILMEMBERS P. David Benavides Vicente Sarmiento Jose Solorio Sal Tinalero Juan Villages November 14, 2018 Kyle Paine, President 3416 Via Oporto, Suite # 301 Newport Beach, CA 92661 CITY OF SANTA ANA 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 W vW.santa-ana.oro Subject: Notice to Applicant Regarding Request for TEFRA Hearing Dear Mr. Paine, EXHIBIT 2 CITY MANAGER Raul Godinez II CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar This is in response to your request for the City of Santa Ana to conduct a Tax Equity and Fiscal Responsibility Act Hearing in consideration of the issuance of tax exempt bond financing by the California Statewide Communities Development Authority on behalf of Community Development Partners for the benefit of Aqua Apartments. The TEFRA Hearing has been placed on our City Council agenda for December 4, 2018 per your request. This TEFRA Hearing is not being considered by City Council as a recommended action per our staff. Instead this item is being considered as an applicant requested action. hi addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of your project. If you have any questions regarding this notice, I can be reached by telephone at (714) 667-2241 or by e-mail at'bri ounxnusatita-ana.org. Sincerely, Judson Brown Housing Division Manager SANTA ANA CITY COUNCIL Miguel A. Pulido Michele Martinez Vicente Sarmiento Jose Solorio P. Davld BenaAse Juan Villegas Sal Tinajero Mayor Mayor Pro Tem, Ward 2 Ward Ward Ward Ward Ward moulido(o)santa-ana.ora ffl1M9ine4(dsarAa-ana.om vsarmiento(a)saro-ana.ora Isolorio(o� n -an-. dbenavitles(alsanla-ana.ora ivilleaslidganta-ane.ora stinaiero(ol5anta-ane org 75A-10 ORDINANCE NO. NS 2018 -XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REQUIRING JUST CAUSE FOR TENANT EVICTIONS WITHIN THE CITY OF SANTA ANA THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: SECTION 1 FINDINGS The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: (a) Pursuant to Article XI, Section 7 of the California Constitution, the City of Santa Ana may make and enforce all regulations and ordinances using its police powers. (b) According to findings by the National Law Center on Homelessness and Poverty, "[flaws that ...prevent unjust evictions ...directly address the underlying causes of housing instability and homelessness."' While the People of the City of Santa Ana seek to promote the development of affordable housing, and to provide robust and effective services to residents experiencing chronic homelessness, the People of the City of Santa Ana recognize that policies designed to prevent individuals and families from losing their housing by prohibiting unjust evictions are critical tools for addressing homelessness in the City of Santa Ana. (c) There is a shortage of decent, safe, affordable, and sanitary housing in the City of Santa Ana resulting in a quickly gentrifying city that is pushing out valuable, long-term residents. As a result of this shortage of moderately priced rental space, freedom of contract and the ability of tenants to bargain in the setting of rents have become illusory. (d) The City of Santa Ana currently does not regulate evictions, rental amounts, or rent increases in residential housing. As a result of this lack of regulation, it has led to housing insecurity and excessive rent increases for the most vulnerable residents in the City of Santa Ana, and increases the likelihood of an increase in displacement and homelessness of low-income families in the City of Santa Ana. (e) The City of Santa Ana's housing vision affirms and supports a vibrant housing Santa Ana that comprises a socially and economically diverse community of renters and homeowners. (f) Notwithstanding this vision, however, high rental costs also make it increasingly difficult, if not impossible, for rental households in the City of Santa Ana to become first time homeowners. According to national studies, Orange County has the second lowest homeownership rate in the country. According to a recent report by the Southern California Association of Governments, the City of Santa Ana has a homeownership rate of just over forty - 'National Law Center on Homelessness and Poverty, Protect Tenants, Prevent Homelessness (Mar. 2018), available at https://www.nlchy.orgARroteetTenants20l8 (last accessed November 27, 2018). .o m seven percent (47%), compared to a homeownership rate of over fifty-nine percent (59%) in Orange County generally in 2016. (g) Tenants who play by the rules should not have to worry constantly about being evicted from their homes for no reason. Common-sense protections against unfair evictions are needed in the City of Santa Ana to protect long-time and low-income residents from landlords who try to game the system to take advantage of all-time high rents. (h) The City of Santa Ana is the second (2nd) largest of the 34 cities in Orange County. In 2010, the City of Santa Ana's estimated population of 324,528 represented approximately 11 percent of Orange County's total population, ranking the City of Santa Ana as the second most populated city in Orange County behind Anaheim. As of the 2010 Census, the City of Santa Ana has 76,896 housing units. Multi -family housing comprises 41 percent of all housing, of which 10 percent are duplexes, triplexes, and fourplexes. (i) The People of the City of Santa Ana recognize the value of homeownership, and specifically the value of local ownership of rental housing. As such, the Ordinance seeks to balance tenant protections with the rights and interests of residents in the City of Santa Ana who own their homes. 0) Since the mid -2000s, residents in the City of Santa Ana have proactively expressed their concerns to the City Council regarding displacement, gentrification, and rising rents in the City of Santa Ana. During this same time period, residents in the City of Santa Ana began hosting educational forums for residents on the issues of rent control and just cause eviction protections. (k) According to the U.S. Census Bureau 2016 American Community Survey, residents in the City of Santa Ana have a median household income of just over $54,062, compared to a median income of more than $78,145 for Orange County. The average rent for two bedroom apartment in Santa Ana is $1,876, a four percent (4%) increase compared to the previous year of 2017, when the average rent was $1,813. At the same time, according to city and census reports, the median household income fell by 1.5 percent during that time period in the City of Santa Ana. (1) Renter households are more likely to be low-income than families who own their homes. The City of Santa Ana's 2014-2021 Housing Element states that more than fifty percent of households (54%) in the City of Santa Ana have incomes that are less than 80 percent (80%) of the Area Median Income (AMI), the low-income threshold as defined by the U.S. Housing and Urban Development Department. (in) A household is considered rent burdened if it spends more than 30 percent (30%) of its gross income on housing costs. According to the City of Santa Ana's 2014-2021 Housing Element, approximately fifty-seven percent (57%) of all renter households in the City of Santa Ana are low-income and rent burdened, which is approximately 21,496 households in the City of Santa Ana. (n) The increasing housing rent burden and poverty faced by many residents in the City of Santa Ana threatens the health, safety, and welfare of its residents by forcing them to choose between paying rent and providing food, clothing, and medical care for themselves and their families. (o) The State of California's Housing Element Law (Gov. Code §§65580-65589.8, and §§65751-65761 (including the State of California's Housing Accountability Act, Gov. Code §65589.5, §65598.6), requires that the City of Santa Ana encourage the production of a variety of housing types; and identify adequate sites for affordable housing for persons at extremely low - very -low, low-, and moderate -income levels. (p) The City of Santa Ana has a Regional Housing Needs Allocation (RHNA) for 2014-2021 of 204 units with a carryover from the previous planning period of 201 lower income units, for a combined RHNA total of 405 units divided into four income groups (very-low,(which includes extremely -low), low-, moderate-, and above -moderate income). This number includes 156 units for very -low, 122 units for low-, 37 units for moderate-, and 90 units for above - moderate income households. Given the challenges in meeting the existing and projected housing needs lower-income residents in the City of Santa Ana, the regulation of rents is a vital tool to maintain the affordability of a significant portion of the housing supply within a reasonable time frame. (q) The City of Santa Ana's 2014-2021 Housing Element, citing to recent American Community Survey Reports, states many low-income residents in the City of Santa Ana experience overcrowding, overpayment, or both. Approximately thirty-three (33%) percent of residents in the City of Santa Ana live in overcrowded living conditions. Approximately twenty- one percent (21 %) of homeowners in Santa Ana live in overcrowded conditions, as compared to forty-three (43%) percent of renters in the City of Santa Ana. Approximately forty-three (43%) percent of residents in the City of Santa Ana overpay for their housing. The prevalence of housing overpayment in the City of Santa Ana is far greater among renters, as fifty-seven (57%) percent of residents overpay in housing costs, compared to thirty-nine (39%) percent of homeowners in the City of Santa Ana. (r) The City of Santa Ana is the 7th largest school district in California, and the largest in Orange County. Approximately ninety-one (91 %) percent of the student population enrolled in the Santa Ana Unified School District is eligible for free or reduced -price meals. In 2016-2017, there were 55,144 children enrolled in the Santa Ana Unified School District. Of this number, 7,306, or 13.2% identified as homeless. Evictions and displacement impose an especially high burden on school -aged children and their families, including increased absences from school and other educational disruption that can have long-lasting effects such as impacts on mental and physical health, as well as school and social hardships for the children and their families? Eviction's Fallout., Housing, Hardship, and Health, (Feb. 2015), Social Forces, available at htti)://nlihc.ore/sites/default/files/DesmondKimbro Evictions Fallout SF2015.ndf (last accessed November 27, 2018). .O W (s) Additionally, homelessness in Orange County rose at a faster pace since 2015, ticking up eight (8%) since the last one-night count. The most recent Point -In -Time Count & Survey, a federally mandated snapshot, conducted on January 28, 2017, showed that there are approximately 4,792 homeless persons in the county, more than half living in a shelter. (t) Furthermore, tenants who are displaced by landlord actions are subject to serious adverse impacts. Such actions can include evictions, which impose unfair burdens on tenants when they are evicted through no fault of their own. The financial impacts of displacement, include, but are not limited to: packing, moving, and storage costs, as well as lost wages and time due to taking time off of work or missing school to search for alternative housing, which includes finding a comparable school, if the tenants have school-age children. It also includes the cost of applying to alternative housing, change of address expenses, and temporary housing expenses required until the displaced tenants locate and obtain suitable long-term alternative housing. Additionally, landlords often require that prospective tenants pay the equivalent of three months' rent up front to secure a lease—generally representing the first and last month's rent, and a security deposit. The total accumulated cost imposed on a displaced household generally exceeds $10,000 and can frequently reach $20,000 or greater. Tenants who are seniors, persons with disabilities, or have children incur even higher costs due to their particular circumstances. Low- and moderate -income tenants cannot afford such sudden and costly expenses, and they often experience homelessness as a direct consequence of eviction, which itself imposes further financial, social, health, and emotional costs. The severe financial impacts of displacement on tenants pose a threat to the public health, and safety, and welfare of the residents in the City of Santa Ana. (u) Based upon the above-described facts and circumstances, and for these same reasons, the City Council for the City of Santa Ana finds that this Ordinance is necessary as a measure to preserve public peace, health and safety, and therefore that it may be introduced and adopted at one and the same meeting, and shall take effect immediately upon its adoption. SECTION 2 DEFINITIONS Unless further defined elsewhere in this Ordinance, the following words or phrases as used in this Ordinance shall have the following meanings: (a) City Council. The term City Council refers to the City Council of the City of Santa Ana. (b) City Attorney. The term City Attorney refers to the City Attorney for the City of Santa Ana. (c) Covered Rental Unit. All Rental Units not specifically exempted under Section 3 (Exemptions - Fully Exempt) or Section 4 (Additional Homeowner Protections) herein. (d) Disabled. A person with a disability. The term "disability" is defined in California Government Code Section 12955.3. 4 (e) Housing Services. Housing Services include, but are not limited to, repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, Utility Charges that are paid by the Landlord, refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants, and any other benefit, privilege, arrangement or facility provided or contracted for in connection with the use or occupancy of any Rental Unit. Housing Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building in which the Rental Unit is contained. (f) Landlord. An owner, lessor, sublessor or any other person entitled to receive Rent for the use and occupancy of any Rental Unit, or an agent, representative, predecessor, or successor of any of the foregoing. (g) Owner. A person who holds a 50 percent or greater recorded ownership interest in real property. (h) Notice to Terminate a Tenancy. Any notice required under state law or this Ordinance for a Landlord to lawfully cause a Tenant to vacate a Rental Unit. (i) Notice to Quit. A notice specifically required by California Code of Civil Procedure sections 1946, 1161, et seq., for a Landlord to lawfully cause a Tenant to vacate a Rental Unit. 0) Primary Residence. The occupant's usual place of return. Factors that indicate Primary Residence, include, but are not limited to: (1) The occupant carries on basic living activities at the subject premises for extended periods; (2) The subject premises are listed with public agencies, including but not limited to federal, state, and local taxing authorities, as the occupant's primary residence; (3) Utility Charges and other charges and fees associated with usage of the structure are billed to and paid by the occupant at the subject premises; (4) The occupant does not file for a homeowner's tax exemption for any different property; (5) The occupant is not registered to vote at any other location; and (6) Ownership is held in the name of the occupant claiming Primary Residence and not held by a Limited Liability Corporation or other corporate or business entity structure. (k) Proper . All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership. (1) Qualified Tenant. Any tenant who satisfies any of the following criteria on the date of service of the written notice of termination described in California Civil Code Section 1946: has attained age 62; is handicapped as defined in Section 50072 of the California Health & Safety Code; is disabled as defined in Title 42 United States Code § 423; or is a person residing with and on whom is legally dependent (as determined for federal income tax purposes) one or more minor children. (in) Relocation Assistance. Financial assistance in the amounts, as set forth in Section 5, infra. (n) Rent. All periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Housing Agreement concerning the use or occupancy of a Rental Unit and premises and attendant Housing Services, including all payment and consideration demanded or paid for parking, Utility Charges, pets, furniture, and/or subletting. (o) Rental Housing Agreement. An agreement, oral, written, or implied, between a Landlord and Tenant, or a Landlord and a Tenant for use or occupancy of a Rental Unit and for Housing Services. For the purpose of this Ordinance, the terms "Rental Housing Agreement' and "Lease" are interchangeable. (p) Rental Unit. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for residential purposes, whether or not such units possess a valid Certificate of Occupancy for use as rental housing, together with all Housing Services connected with use or occupancy of such Property, such as common areas and recreational facilities held out for use by the Tenant, which is offered or available for rent. (q) Single -Family Home. A detached building containing a single residential dwelling unit separately alienable from any other dwelling unit. (r) Tenant. A Tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Housing Agreement or this Ordinance to the use or occupancy of any Rental Unit. (s) Utility Charges. Any charges for gas, electricity, water, garbage, sewer, telephone, cable, internet, or other service relating to the use and occupancy of a Rental Unit. (t) Written Notice to Cease. A written notice provided by a Landlord that gives a Tenant an opportunity to cure an alleged violation or problem prior to initiating legal proceedings to terminate tenancy. Any Written Notice to Cease must: (1) Be in a language that the Tenant can interpret or understand; (2) Provide the Tenant a reasonable period to cure the alleged violation or problem; (3) Inform the Tenant that failure to cure may result in the initiation of eviction proceedings; (4) Inform the Tenant of the right to request a reasonable accommodation; and (5) Include a specific statement of the reasons for the Written Notice to Cease with sufficient detail to allow a reasonable person to cure the alleged violation or problem, or understand the circumstance(s) that form the basis for the Landlord's decision to evict the Tenant(s) from the Rental Unit. SECTION 3 EXEMPTIONS (a) Fully Exempt (Exempt from Just Cause for Eviction). The following Rental Units are exempt from all provisions of this Ordinance: (1) Units in hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient guests for a period of fewer than thirty (30) days, including all units subject to the transient occupancy tax, codified at Article V, Section 35-127 of the Santa Ana Municipal Code and Charter; (2) Rental Units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged, or dormitory owned and operated by an accredited institution of higher education; (3) Rental Units owned or operated or managed by a not-for-profit organization pursuant to a tax credit program; (4) Rental Units which a government unit, agency or authority owns, operates, or manages, or in which government -subsidized Tenants reside, if applicable federal or state law or administrative regulation specifically exempt such units from municipal rent control, provided that upon termination of the government subsidy, the provisions of this Ordinance shall apply and the Base Rent shall be the amount set before such termination; (5) Rental Units additionally exempted pursuant to Section 4 (Additional Homeowner Protections); (6) Rental Units in buildings of three or fewer units where the Owner is a natural person whose Primary Residence is at the same Property, and where the Owner has made their Primary Residence at the Property for at least 36 consecutive months. (b) Partially Exempt (Just Cause for Eviction Applies). The following Rental Units are not exempt from the provisions this Ordinance: (1) Any Rental Units exempt from regulation of rental rates pursuant to state law, including the Costa -Hawkins Rental Housing Act (California Civil Code Section 1954.50, et seq.), so long as it is in effect. (2) Condominiums. Condominiums specified in California Civil Code Section 1954.52(a)(3)(A). (3) Duplexes and Triplexes. Rental Units in a single structure with fewer than four dwelling units being used as residential housing. The term "dwelling unit" is used as defined in Santa Ana Municipal Code and Charter Section 41-192(b).) (4) Accessory Dwelling Units. Small second units located on the same lot as a Single -Family Home as may be defined in and permitted under the Santa Ana Municipal Code and Charter, Section 41-194, et seq., but not including Senior Citizen Accessory Units (Santa Ana Municipal Code and Charter, Section 41-1325); (5) Single-family Homes, condominiums, and any other Rental Units which are separately alienable from any other Rental Unit, where the Owner is a natural person whose Primary Residence is in the City of Santa Ana and owns no more than two separately alienable Properties. (6) To the extent required by state law, Rental Units in a single structure with four or more dwelling units used as residential housing with a certificate of occupancy issued after February 1, 1995 and before the effective date of this Ordinance. (c) Notwithstanding Section 3(b) above, if the Costa -Hawkins Rental Housing Act is repealed, amended, or invalidated by court or statute, this Ordinance shall fully apply to the following previously partially exempt units, and the City Council shall authorize the City Attorney for the City of Santa Ana to prepare a supplemental Ordinance for enactment by the City Council, to ensure such application to the extent allowable under state law as follows: (1) Rental Units with a certificate of occupancy issued after February 1, 1995. (2) Single-family homes, condominiums, and any other Rental Units which are separately alienable from any other Rental Unit, except for those that are Fully Exempt under Section 3(a)(6) and Partially Exempt, as referenced above in Section 3(b) of this Ordinance. SECTION 4 ADDITIONAL HOMEOWNER PROTECTIONS Homeownership is of great importance to the residents of the City of Santa Ana. In addition to the Rental Units exempted in Section 3(a) of this Ordinance, the following Rental Units are also exempt from all provisions of this Ordinance: (a) Single -Family Homes. Single -Family Homes as specified in California Civil Code Section 1954.52(a)(3)(A), except in the event that Section 3(b) herein applies. .• • (b) Senior Citizen Accessory Units. A Rental Unit that is permitted and in compliance with Santa Ana Municipal Code and Charter Section 41-1325. (c) Temporary Rentals Allowed. A homeowner who is the Primary Resident of a Single -Family Home may create a temporary tenancy. The temporary Tenant must be provided, in writing at the inception of the tenancy, the length of the tenancy and a statement that the tenancy may be terminated at the end of the temporary tenancy and relocation shall not be provided. This subsection only applies to tenancies lasting no more than twelve consecutive months. (d) Renting of a Room Unregulated. The tenancy where the Tenant shares a bathroom or kitchen with the homeowner shall be exempt from this Ordinance if the home is the Primary Residence of the homeowner. SECTION 5 JUST CAUSE FOR EVICTION PROTECTIONS; FAMILY PROTECTIONS (a) No Landlord shall take action to terminate any lawful tenancy, including but not limited to, making a demand for possession of a Rental Unit, threatening to terminate a tenancy orally or in writing, serving any Notice to Terminate Tenancy, Notice to Quit, or other eviction notice, or bringing any action to recover possession, or be granted recovery of possession of a Rental Unit unless at least one of the following conditions exists. This prohibition on impermissible evictions is intended to apply to the fullest extent permitted by law to all Notices to Terminate a Tenancy, Notices to Quit, or other eviction notice that were served on a tenancy before the effective date of this Ordinance. (1) Failure to Pay Rent. The Tenant has failed to pay the Rent to which the Landlord is legally entitled under the Rental Housing Agreement, this Ordinance, or any other state or local law. (2) Breach of Lease. The Tenant has continued, after the Landlord has served the Tenant with Written Notice to Cease, in a language that the Tenant can have interpreted or understand, to substantially violate any of the material terms of the Rental Housing Agreement, other than a violation based on: (A) The obligation to surrender possession upon proper notice; or (B) The obligation to limit occupancy, provided that the additional Tenant who joins the occupants of the unit thereby exceeding the limits on occupancy set forth in the Rental Housing Agreement is either the first or second dependent child to join the existing tenancy of a Tenant of record, the sole additional adult Tenant, or is a replacement Tenant who moved in after an approved Tenant has vacated the Rental Unit. For purposes of this subsection, multiple births shall be considered as one child. The Landlord, however, has the right to approve or disapprove the prospective additional or replacement Tenant, who is not a minor dependent child, provided that the approval is not unreasonably withheld. If the Landlord fails to respond to the Tenant in writing with a description of the reasons for the denial of the request within 14 days of receipt of the Tenant's written request, the Tenant's request shall be deemed approved by the Landlord; or (C) Notwithstanding any contrary provision in this Section, a Landlord shall not take any action to terminate a tenancy based on a Tenant's sublease of the Rental Unit if all of the following requirements are met: i. The Tenant continues to reside in the Rental Unit as his or her Primary Residence; and ii. The sublease replaces one or more departed Tenants under the Rental Agreement on a one-for-one basis; and iii. The Landlord has unreasonably withheld the right to sublease following written request by the Tenant. If the Landlord fails to respond to the Tenant's written request, the Tenant's request shall be deemed approved by the Landlord. A Landlord's reasonable refusal of the Tenant's written request may not be based on the proposed additional occupant's lack of creditworthiness, if that person will not be legally obligated to pay some or all of the Rent to the Landlord. A Landlord's reasonable refusal of the Tenant's written request may be based on, but is not limited to, the ground that the total number of occupants in a Rental Unit exceeds the maximum number of occupants as determined under Section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922. (D) Protections for Families. Notwithstanding any contrary provision in this Section, a Landlord shall not take any action to terminate a tenancy as a result of the addition to the Rental Unit of a Tenant's child, foster child, stepchild, parent, grandchild, grandparent, aunt, uncle, niece, nephew, sibling, or the spouse or partner of such relatives, or the spouse or partner of such relatives, or as the result of the addition of the spouse or partner of a Tenant, so long as the number of occupants does not exceed the maximum number of occupants as determined by Section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922. The City Council may authorize the City Attorney for the City of Santa Ana to amend this Ordinance to include language that will further protect families and promote stability for school -aged children. (3) Nuisance. If, after the issuance of a Written Notice to Cease in a language that the Tenant can interpret or understand, the Landlord may terminate a tenancy if the Tenant is committing or permitting to exist a nuisance in, or 10 is causing substantial damage to, the Rental Unit or to the unit's appurtenances, or to the common areas of the Property containing the Rental Unit, or is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the Property. The tern "nuisance" as used in this subsection includes, but is not limited to, any gang -related crime, violent crime, unlawful weapon or ammunition crime or threat of violent crime, illegal drug activity, any documented activity commonly associated with illegal drug dealing, such as complaints of noise, steady traffic day and night to a particular unit, barricaded units, possession of weapons, or drug loitering as defined in California Health & Safety Code Section 11532. For purposes of this subsection, gang -related crime is any crime motivated by gang membership in which the perpetrator, victim or intended victim is a known member of a gang. Violent crime is any crime which involves use of a gun, a deadly weapon or serious bodily injury and for which a police report has been completed. A violent crime under this subsection shall not include a crime that is committed against a person residing in the same Rental Unit as the person committing the crime. Unlawful weapon or ammunition crime is the illegal use, manufacture, causing to be manufactured, importation, possession, possession for sale, sale, furnishing, or giving away of ammunition or any weapon listed in subsection (c)(1)-(5) of Section 3485 of the California Civil Code. The threat of violent crime is any statement made by a Tenant, or at his or her request, by his or her agent to any person who is on the premises or to the owner. of the premises, or his or her agent, threatening the commission of a crime which will result in death or great bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is so unequivocal, immediate and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or her immediate family's safety. Such a threat includes any statement made verbally, in writing, or by means of an electronic communication device and regarding which a police report has been completed. A threat of violent crime under this subsection shall not include a crime that is committed against a person who is residing in the same Rental Unit as the person making the threat. Immediate family means any spouse, whether by marriage or not, parent, child, any person related by consanguinity of affinity within the second degree, or any other person who regularly resides in the household, or who, within the prior six 11 85B-11 months, regularly resided in the household. Electronic communication device includes but is not limited to, telephones, cellular telephones, video recorders, fax machines, or pagers. Electronic communications has the same meaning as the term is defined in subsection 12 of Section 2510 of Title 18 of the United States Code, except that electronic communication for purposes of this definition shall not be limited to electronic communication that affects interstate or foreign commerce. Illegal drug activity is admissible evidence of a violation of any of the provisions of Chapter 6 (commencing with Section 113 50) or Chapter 6.5 (commencing with Section 11400) of the California Health & Safety Code. (4) Illegal Purpose. The Tenant is using, or permitting a Rental Unit, the common areas of the Property containing the Rental Unit to be used for any illegal purpose. The term "illegal purpose" as used in this subsection includes, but is not limited to, admissible evidence of violations of any of the provisions of Division 10, Chapter 6 (commencing with Section 11350) and Chapter 6.5 (commencing with Section 11400) of the California Health & Safety Code, and does not include the use of housing accommodations lacking a legal approved use or which have been cited for occupancy or other housing code violations. (5) Refusal to Execute New Lease. The Tenant, who had a Rental Housing Agreement which terminated on or after the effective date of this Ordinance, has refused, after written request or demand by the Landlord in a language that the Tenant can interpret or understand to execute a written extension or renewal thereof for a further term of like duration with terms which are materially the same as in the previous Rental Housing Agreement and provided that such terms do not conflict with any provision of this Ordinance or any other provision of law. (6) Failure to Give Access. The Tenant, after service of proper notice in a language that the Tenant can interpret or understand, has refused the Landlord reasonable access to the unit for the purpose of making repairs or improvements, or for the purpose of inspection as permitted or required by law, or for the purpose of showing the Rental Unit to any prospective purchaser or mortgagee. The notice shall inform the Tenant that if they are unable to comply based on a disability -related reason, they have the right to request a reasonable adjustment or change in the Landlord's policies or practices to accommodate the Tenant's disability. (7) Subtenant in Sole Possession. The person in possession of the Rental Unit at the end of a lease term, after the Landlord provides written notice 12 85B-12 to said person in a language that said person can interpret or understand, is not a subtenant approved by the Landlord. (8) Owner Move -in. The Landlord seeks, after providing written notice in a language that the Tenant can interpret or understand to the Tenant pursuant to state law, to recover possession of the Rental Unit in good faith for use and occupancy as a Primary Residence by the Landlord, or the Landlord's spouse, partner, children, grandchildren, parents or grandparents. (A) As used in subsection (a)(8) herein, Landlord shall only include a Landlord that is a natural person and has at least a fifty percent (50%) recorded ownership interest in the Property. (B) No eviction may take place under this subsection if the same Landlord or enumerated relative already occupies a unit on the Property, or if a vacancy already exists on the Property. If a comparable unit does become vacant and available before the recovery of possession, the Landlord shall rescind the notice to vacate and immediately dismiss any action filed to recover possession of the premises. (C) Any notice terminating a tenancy pursuant to this subsection shall contain the name, address and relationship to the Landlord of the person intended to occupy the Rental Unit and the rights pursuant to Subparagraph (E) herein. (D) The Landlord or enumerated relative must intend in good faith to move into the Rental Unit within sixty (60) days after the Tenant vacates and to occupy the Rental Unit as a Primary Residence for at least thirty-six (36) consecutive months. (E) If the Landlord or relative specified on the notice terminating tenancy fails to occupy the Rental Unit within sixty (60) days after the Tenant vacates, the Landlord shall: (i) Offer the Rental Unit to the Tenant who vacated it at the same Rent in effect when the Tenant vacated; and (ii) Pay to said Tenant all reasonable expenses incurred in moving to and from the Rental Unit. (F) Eviction Protection for Elderly or Disabled Tenant. A Landlord may not evict a Tenant pursuant to Subsection (a)(8) herein if the Tenant (1) has resided in the Rental Unit for at least five (5) years and is either at least sixty-two (62) years old or Disabled; or (2) is certified as being terminally ill by the Tenant's treating physician. 13 85B-13 Notwithstanding the above, a Landlord may evict a Tenant who qualifies for the exemption herein if the Landlord or enumerated relative who will occupy the Rental Unit also meets the criteria for this exemption and there are no other units are available. (G) Notwithstanding Section 5(a)(8)(F), at all times, a Landlord may request a reasonable accommodation from the Tenant, if the Tenant or enumerated relative is Disabled and another unit or Rental Unit in the City of Santa Ana is necessary to accommodate the Tenant's or enumerated relative's disability. (9) Necessary and Substantial Repairs Requiring Temporary Vacancy. The Landlord, after having obtained all necessary permits from the City of Santa Ana, and having provided written notice to the Tenant, seeks in good faith to undertake substantial repairs that are necessary to bring the Rental Unit into compliance with applicable codes and laws affecting the health and safety of Tenants of the building, provided that: (A) The repairs necessitate that the Tenant vacate the Rental Unit because the work will render the Rental Unit uninhabitable for a period of not less than thirty (30) days; (B) The Landlord gives advance notice to the Tenant of the right to elect between: (i) The right of first refusal to any comparable vacant Rental Unit owned by the Landlord at -the same Rent, if such comparable vacant unit exists; or (ii) The first right of return to reoccupy the Rental Unit upon completion of the repairs at the same Rent charged to the Tenant before the Tenant temporarily vacated the Rental Unit. (iii) In the event that the Tenant elects to accept an offer to move to a comparable vacant Rental Unit at the same Rent, the Tenant is not eligible for any Relocation Assistance pursuant to Section 5(c) herein, however the length of tenancy shall continue to be calculated from the date the tenant first entered into a Rental Housing Agreement at the Property. (C) In the event the Landlord files a Petition for Individual Rent Adjustment within six (6) months following the completion of the work, the Tenant shall be party to such proceeding as if he or she were still in possession, unless the Landlord submits with such 14 application a written waiver by the Tenant of his or her right to reoccupy the premises pursuant to this subsection. (10) Withdrawal of the Unit Permanently from Rental Market. To the extent required by California Government Code Section 7060 et seq., the Landlord may seek in good faith to recover possession to withdraw all Rental Units of an entire Property from the rental housing market. Tenants affected by this provision shall be entitled to a minimum of 120 -day notice or one (1) year in the case Tenants are defined as senior or Disabled. Notice times may be increased by regulations, if state law allows for additional time. (11) Government Order. The Landlord seeks in good faith to recover possession of the Rental Unit to comply with a governmental agency's order to vacate, order to comply, order to abate, or any other order that necessitates the vacating of the building housing the Rental Unit as a result of a violation of the Santa Ana Municipal Code and Charter or any other provision of law. (12) Vacating an Unpermitted Rental Unit. The Landlord seeks in good faith to recover possession of an unpermitted Rental Unit in order to terminate the unpermitted use. (b) Tenant Protections during Foreclosure. Notwithstanding anything to the contrary in Sections 4 or 5 herein, a Landlord who obtains title through foreclosure to Property containing Rental Units subject to this Ordinance may bring an action to recover possession of the Rental Unit from a Tenant whose tenancy commenced on or before the date that the Landlord obtained title, only upon the grounds set forth in Section 5. To recover possession of the Rental Unit from a Tenant, the Landlord must comply with all of the requirements and provisions of this section, including, without limitation, the payment of Relocation Assistance required, pursuant to the provisions of Section 5(c). (c) Relocation Assistance. (1) A Landlord seeking to recover possession under Subsections (a)(8)-(12) above shall provide Relocation Assistance to affected Tenant households in an amount equal to six (6) times the current Fair Market Rent for a similar Rental Unit in Orange County as determined by the U.S. Department of Housing and Urban Development. Tenant households with at least one Qualified Tenant shall be entitled to an additional payment equal to one (1) times the current Fair Market Rent for a similar Rental Unit as determined by HUD as part of their Relocation Assistance. To the extent permitted by law, the Relocation Assistance required herein shall be a minimum amount. (2) The Landlord shall notify the affected Tenants of their rights under this subsection, if any, at the time of the service of any notice terminating the 15 85B-15 tenancy. The Relocation Assistance shall be paid to Tenant households who vacate a Rental Unit no later than the time that they vacate the Rental Unit. (d) Right of Return and First Right of Refusal. All Tenants whose tenancy is terminated on a basis enumerated in Subsections (a)(8)-(12) herein shall have the first right of refusal to return to the Rental Unit if that Rental Unit is returned to the market by the Landlord or successor Landlord to the maximum extent permitted by state law. Rent for the Rental Unit shall be the Rent lawfully paid by the Tenant at the time the Landlord gave notice of termination based upon Subsections (a)(8)-(12) herein to the maximum extent permitted by state law. (e) Withdrawal of Rental Unit Permanently from the Rental Market. The Landlord seeks in good faith to recover possession to withdraw all Rental Units of an entire Property from the rental housing market. Tenants affected by this provision shall be entitled to a minimum of 120 -day notice, or a notice of not less than one (1) year in the case of Tenants defined as seniors or Disabled under Government Code Section 12955.3. (f) Retaliation is Barred. No Landlord may threaten to bring, or bring, an action to recover possession of the Rental Unit, cause the Tenant to quit the unit involuntarily, serve any Written Notice to Cease or Notice of Termination of Tenancy/Notice to Quit, or other eviction notice, decrease any services or increase the Rent where the Landlord's partial motive is retaliation against the Tenant for the Tenant's assertion or exercise of rights under this Ordinance. Such retaliation shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the Tenant for actual and punitive damages and injunctive relief. A Tenant may assert retaliation affirmatively or as a defense to the Landlord's action regardless of the period of time which has elapsed between the Tenant's assertion or exercise of rights under this Ordinance and the alleged act of retaliation. The City Council shall designate its Community Redevelopment and Housing Commission for the City of Santa Ana to maintain a repository of complaints received regarding violations of this Ordinance, and the Community Redevelopment and Housing Commission, shall upon Tenant request, make certified copies of the records of complaints initiated by Tenant. (g) Harassment is Prohibited. No Landlord may threaten to bring, or bring, an action to recover possession, cause the Tenant to quit the unit involuntarily, serve any Written Notice to Cease, Notice of Termination of Tenancy/Notice to Quit, or other eviction notice, decrease any services, refuse to accept or acknowledge receipt of a Tenant's lawful Rent pursuant to this Ordinance, or interfere with the Tenant's quiet enjoyment of the Rental Unit and common areas as part of an attempt to increase the Rent above the maximum allowable Rent permitted under this Ordinance, either by obtaining such excessive Rent from the Tenant or by creating a vacancy and increasing the Rent to a new Tenant. Such harassment shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the Tenant for actual and punitive damages and injunctive relief. (h) Notice to Specify Basis for Termination. Any notice purporting to terminate tenancy on any of the bases specified in this section must state with specificity the basis on which the Landlord seeks to terminate the tenancy. 16 .o • (i) Landlord Compliance with this Ordinance. In any action brought to recover possession of a Rental Unit subject to this Ordinance, the Landlord shall allege compliance with this Ordinance. 0) Failure to Comply. A Landlord's failure to comply with any requirement of this section, including without limitation, the failure to serve any of the required notices, is a complete and affirmative defense in an unlawful detainer or other action brought by the Landlord to recover possession of the Rental Unit. :9ReY[1RE111DWI TO111yDid IDWI rW Olo)a1Ila) :7V The City, at its sole discretion, may choose to enforce the provisions of this Ordinance through administrative fines and any other administrative procedures as set forth in Chapter 1, Section 1- 21 et seq., of the Santa Ana Municipal Code and Charter. The City's decision to pursue or decline enforcement of any kind regarding a violation of this Ordinance, shall not affect a Tenant's rights to pursue civil remedies associated with enforcing the Sections of this Ordinance. SECTION 7 CIVIL REMEDIES A Tenant may bring a civil suit in the courts of the State of California alleging that a Landlord has violated any of the provisions of this Ordinance or any regulations promulgated hereunder including that the Landlord has demanded, accepted, received, retained a payment or payments in excess of the lawful Rent, failed to maintain a Rental Unit in compliance with applicable health and safety and building codes, including but not limited to, California Civil Code section 1941.1 et seq., and California Health and Safety Code sections 17920.3 and 17920. 10, or decreased Housing Services. In a civil suit, a Landlord found to violate this Ordinance shall be liable to the Tenant for all actual damages, including but not limited to, the damages described in this Section. A prevailing Tenant in a civil action brought to enforce this Ordinance shall be awarded reasonable attorneys' fees and costs. Additionally, upon a showing that the Landlord has acted willfully or with oppression, fraud, or malice, the Tenant shall be awarded treble (triple) damages. No administrative remedy need be exhausted before filing suit pursuant to this Section. SECTION 8 SEVERABILITY If any section, subsection, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, or portions be declared invalid or unconstitutional. SECTION 9 CONFLICTING CHARTER PROVISIONS To the extent that any of the provisions of this Ordinance conflict with other provisions of the Santa Ana City Municipal Code and Charter, the provisions of this Ordinance 17 85B-17 shall govern. This Ordinance, however, is, not intended to revise, repeal, or supersede any other provisions of the Santa Ana City Municipal Code and Charter regarding matters not addressed herein. As such, this Ordinance shall have the effect of amending the Santa Ana City Municipal Code and Charter as necessary for the City Attorney to exercise his or her authority and fulfill his or her responsibilities as specifically identified herein, but this Ordinance shall not otherwise amend the Santa Ana City Municipal Code and Charter with respect to the powers and limitations of other boards and commissions. SECTION 10 CODIFICATION The City Clerk and the City Attorney shall take all necessary steps to ensure the proper and efficient codification of this Ordinance into the Santa Ana City Municipal Code and Charter. This authority shall include making any necessary revisions to the numbering and revising or substituting any references herein to other provisions of the Santa Ana Municipal Code and Charter or State law, and similar non -substantive items. In exercising this authority, the City Clerk and City Attorney shall not alter the substantive provisions of this Ordinance, nor take any action that contradicts the express terms and purpose of this Ordinance. :y 0[40IMegg 8alyyarigI&'/as17:11Y This Ordinance shall take effect immediately following its adoption by the City Council. SECTION 12 ENVIRONMENTAL DETERMINATION The City Council finds that adoption and implementation of this Ordinance are exempt from the provisions of the California Environmental Quality Act under Section 15061(b)(3) in that the City Council finds there is no possibility that the implementation of this Ordinance may have significant effects on this environment. 18 .O •