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Home My WebLink About FULL PACKET_2019-02-05REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: 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) K44 7:(e7X•7�IWig APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 181 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO 1 t � FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager to negotiate an Exclusive Negotiating Agreement (ENA) for the reuse of the YMCA property with Caribou Industries, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The YMCA building located at 203-205 West Civic Center Drive (Site) was purchased by the City in 1992. The building has been vacant since that time and has been in serious disrepair due to age and vandalism. Recent efforts have been taken to remediate several outstanding issues such as asbestos clean-up and the placement of security cameras at the site. Over $1 million dollars in funding was used to remediate these issues. Over the years, the City has made several attempts to market/entertain proposals for the site but the substantial City subsidy required by developers and end users has been an issue. To bring the building up to current City codes, it would require an anticipated investment of up to $5 million dollars for seismic retrofit, fire suppression, electrical/plumbing to current code, and other structural improvements. In November 2015, the City Council approved an option agreement for the sale and renovation of the YMCA with St. Joseph's Health System for the development of a fitness center/community venue for the underserved population living near the downtown. Unfortunately, citing ever-changing dynamics of health and fitness businesses in downtown and an unforeseen project cost estimate over $5 million higher than anticipated, St. Joseph's Health System requested to terminate the Agreement to purchase and rehabilitate the YMCA in December 2017. 19C-1 ENA for YMCA February 5, 2019 Page 2 In February 2018, the City released a Request for Qualifications and Development Concepts (RFP# 18-204) for the renovation and reuse of the former YMCA Building. Four proposals were received in April, 2018 for this solicitation. Evaluation of Proposals Each proposal has been evaluated and additional information was requested from the developers during the months that followed. All proposals were then evaluated by a selection panel which included representatives from the Community Development Agency, Planning and Building Agency, and the Public Works Agency. Criteria included experience of firm and key personnel; financial capacity; development schedule, project concept and completeness of proposal including organization and clarity. As a final step in the evaluation process, all four proposers were invited to present their development proposals to the Economic Development, Infrastructure, Budget and Technology (EDIBT) Council Committee on August 20, 2018. The proposals represented a range of development opportunities listed below. The selection panel completed the review of the proposals and the rankings are as follows: Proposer Score 1. Howard CDM/Orange County High School of the Arts (OCSA) 86.25 e Expansion of OCSA to include a new Design and Art Center 2. Caribou Industries 67.48 e Boutique hotel 3. Community Development Partners/City Fabrik 66.75 e Veteran's Hall project including residential 4. The Sound e A community center/small business start-up incubator 66.00 Committee Direction At the September 10th regular EDIBT Council Committee meeting, the Committee directed staff to take an extra step to reach out to the top two rated proposers (Howard CDM/OCSA and Caribou Industries) to see if the two proposers could team up on pairing their proposal for resubmission to the City. Staff reached out to both parties via telephone on Friday, September 14, 2018. After discussing the potential of a joint proposal, both Howard CDM/OCSA and Caribou Industries agreed that a deal would not work at this time. At the October 8th Special EDIBT Council Committee meeting, the Committee directed staff to proceed with a recommendation to the full Council to enter into an exclusive negotiating agreement with Caribou industries for the renovation and reuse of the YMCA building. Caribou's project, which includes a hotel component, is expected to generate significant tax revenue for the City. The Committee also requested that the Caribou proposal include substantial community benefits, citing examples such as a Sylvia Mendez Museum, a concept utilizing wine and spirits, 19C-2 ENA for YMCA February 5, 2019 Page 3 or shared space for local workers as part of the project. Caribou has also expressed interest in leasing a portion of the YMCA to the Orange County High School of the Arts for their proposed Design and Art Center project. Upon City Council approval of this action, staff will begin the development of a draft Exclusive Negotiating Agreement with Caribou Industries and will work to define the business terms of the agreement for future City Council action. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #3 (Economic Development), Objective #5 (Leverage private investment that results in tax base expansion and job creation citywide), Strategy A (Identify and market underutilized properties for new development that will create new jobs and expand the City's tax base). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibit: 1. Caribou Industries Proposal 19C-3 19C-4 I 1'iSIT _ y Tu "• v s rtx E (V � I i _� 3NNOM317J3J71NJ'M60L'SOL llhN3J 1N3A3 VDWA 035OdONd eow OtWJ35 a E §g l 1 1. us r s s ti z 6 y w d V a 1 Yl c 0 o O 0 o O 0 N 0 Z 0 0 3d5 O M D g 0 a o aYu» O N 8 U O 00 �� w tj ° _sir ad 1 o 0 E _p1 iJ�3 Y I1 1 � � hFj J -r\f f 'tj b 1 ? 2 Nu ma a \Olt IT Z t na CJI Ail 10 l � 7L',.�p�-4,100 j�, In p 10[Z6VO'VNVVINVS ME:] 3NNO S3W3JJW7'M 60L,SOLSUND 1N3A3 VDM 03SOdOVd • O R fi t �T1 avt ♦ Z � E W Y $ f 8 00 0 ° OF v O &� K ' Fa ozz S a = O W W y Z1 Y N � N ®„ �§ O V S e aC> O Q o2S g gH o$ g H Old m O a e mia 4 E-1 i 0 =g N Q1 N a O� sW o °o Uoo o w w o� gWi —,— ret " g$ T m e�o� 53 p6 IOLZ6IO YNY Y.INYS � _ ? �� € 9 U31N3J 1N3A3 IiKJO YOWA 03SOd0 dZ div l tjj YYs zp � i � ZP--vd Fd� ae6< � z !vi a W M Z N d V 0 o¢a J �w0 y � �'� z� X00 V J Z 11 zo—« t 'd p, > O O_ J 0:2 �. 'fir • M COf Z o w�° co u ¢ w0 /I �O� 1S IdUWVJAS HAUN p Q Z Q tn N a + Lli m G g u �Q O o 0z g � 02 o c~ U ®w o L 4 D O U -J U Oo • 00 O J r OL 41Yd WOOS llV99NVSiO 1S3M ONV X3ldWOJ VJWh' NUSIX3 3H1 Ol VONnioS w m '8 AVM3Z3S9 ASOISiH AO 11VM DIS 2A&ClkJMCWJVW O F— O O •QZ O = a LU O O V ND K •e0 0 0 � 6 Z O O Z OOJoc m Z O O� /� O O uz =1 O V) N dipApgg o«YD�YVI� i' E VUNU IN VOW Saoad �oau nxron A s t l° ' M 'Q V eVWw wYw J � w � �U4� �u O<a �;0O OOr z0 ' v N WO* w O J �� ~ W Z Q '1S 3dDWVJAS H1a0N *' � Z 1= j5 O� LLJ Q: --LU pu oc Q o (V ss¢ w > 0 F— Z T a Z LU LU o x: z Q ik: U Q Iu u zLU �Vy W O Y I o y V O 0 o W N O5 _J C m OW m a o LU M O [Z o z 00 QUO <tN OUB 0 o U V eVWw wYw J REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: RECEIVE AND FILE: PUBLIC WORKS AGENCY MONTHLY PROJECT STATUS AND CAPITAL IMPROVEMENT PROGRAM REPORT FOR JANUARY 2019 (STRATEGIC PLAN NO. 5, 1} CITY 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 Receive and file the Public Works Agency Project Status and Monthly Capital Improvement Program Executive Report for January 2019. DISCUSSION The January 2019 Project Status and 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: https://www.santa-ana ore/sites/default/files/pw/documents/Executive-Monthly-CIP-Update-January-2019 pdf The following remarks are provided to note significant matters related to the Public Works Agency: South Main Street Corridor Improvements Plans are underway to implement the "South Main Vision Plan". The Plan calls for greater walkability by implementing traffic calming mechanisms, enhanced crosswalks, pedestrian level street lighting, street trees, landscaping, parklets, site furnishings and metered parking. Survey, geotechnical studies, utility coordination, and traffic studies have been completed. The Contract Documents are currently 60% complete and an internal review is being conducted. Contract Documents are slated to be completed and released for Bid Advertisement in Fiscal Year 2019/20. Raitt Street Rehabilitation (McFadden to Civic Center) This project is in the early design phase, with a tentative completion date scheduled for late Summer or early Fall of 2019. The project includes repair, replacement, and construction of curb and gutter, sidewalk and curb ramp, and reconstruction and replacement of existing pavement. This project intersects with the OC Streetcar project enhancements, as segments of the storm drain system from 1St Street to 5th Street will be improved in a coordinated effort. Construction of 19D-1 Monthly CIP Executive Report for January 2019 February 5, 2019 Page 2 the Raitt Street project will take place after the OC Streetcar project is constructed at the Raitt crossing, which may take up to 3 years. Raitt Street Slurry and Resurfacing (Edinger to McFadden) This project is currently in the design phase with a completion timeframe tentatively scheduled for Summer 2019. The project includes the repair, replacement, and construction of curb & gutter, sidewalk and curb ramp, and application of crack seal, slurry seal and resurfacing of asphalt concrete on Raitt Street from Edinger Avenue to McFadden Avenue. Construction will follow the design -engineering phase and is anticipated to begin in Summer 2019. C -5-F Channel Assessment between Newhope and Harbor The winter storm in January 2017 damaged a drainage channel, identified as C -5-F, located south of First Street between Newhope Street and Harbor Boulevard. The channel runs parallel to and south of First Street. Staff has been working with the Federal Emergency Management Agency (FEMA) and the California Governor's Office of Emergency Services (Cal OES) to secure Federal/State funding for repair work to the drainage channel related to that storm. The channel repair scope of work includes removal and replacement of damaged sections caused by the January 2017 storm event. A Notice of Obligation authorizing Federal/State funding has been issued and the project is currently in the design phase. We don't anticipate further damage by the current winter season, and staff is looking forward to the start of construction Summer of 2019. General Water Main and Sewer Main Progress Report This project is in the design phase and shall be completed in February 2019. The project includes the replacement of 6,300 linear feet of the existing 6" and 8" vitrified clay pipe (VCP) with an 8" and 10" polyvinyl chloride (PVC). These construction improvements include sewer related appurtenances such as: sewer manholes and sewer laterals. 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). FISCAL IMPACT The". no fiscal impact associated with this item O Fuad S`8iss, PE, PLS Executive(rector Public Wor Agency Exhibit: 1. CIP — Executive Summary Schedule may be reviewed at: https://www.santa-ana.org/sites/default/files/pw/documents/Executive-Monthly-CIPhttps://www.santa- sites/default/files/pw/documents/Executive-Monthly-CIP-Update-January-2019�dfJanuary-2019 pdf 19D-2 P_ O a= to 8 a< x 9 -- gi a e I'a 8< W � 1 I J ♦A C_ ' ce J O V p $z H 01� 8< 104 z 008 8 8 88 88888885$888808 8 88 3 i gg 8 J LL a ��HB do 8 mm p N S N u: � v"i rcNe o mo"uocn 8 S 8 p� 8 S p N N N N N Q N N N N 91 o z I"' c C rgi S4 t5 7 e 2 O O i O 2 tA WW 5S g ct i i? u i I? T '^ `4 �mii .�i " " I � a o > s cc '., ry E u y W««« c« m Y 3 n° w Er J G o a" p �«, co i > .fj. X = c n n` 3 voi N E o a n Y° o a a o E o = n. y M n 2 ° E E so za 'c m u u > 09 c n n u'^ m d u« c i r E E m o>> C V 6 c c a Y a m` i' f i i W z" rc m m ��° m 3 3 °i C c � P X P X X X X X X X � � � � � � i = N h = � � � _ = M �0 N •� � 1 WI11 1 r z i M n N N n m E `u E s• i � a f m m � c � E i F n o° E o ` . 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DISCUSSION In 1995, the State of California enacted legislation revising the reporting requirements relative to investment of funds by governmental agencies. California Code Section 53646 (b) states that if a quarterly report is rendered to the legislative body, the quarterly report shall be submitted within 30 days following the end of the quarter covered by the report. In an effort to meet the statutory requirement, Finance & Management Services Agency submits the Report via email for review and distribution to the City Council in advance. The report was emailed for distribution on January 28, 2019. The legislation specifies that this quarterly report contain the seven major elements listed below: 1. Type of investments, 2. Date of maturity, 3. Par and dollar amounts invested in each security, 4. Weighted average maturity of the investments, 5. Market value as of the date of the report, 6. Source of the market value information, and 7. Any funds, investments or programs, including loans, under the management of contracted parties. These specifications include a statement outlining the ability of the City to meet the budgeted expenditures for the subsequent six months be submitted to the City Council on a quarterly basis. Staff performs an end -of -month expenditure analysis to comply with the expenditure requirement and a statement confirming the ability to meet this requirement in the monthly and quarter -ending Treasurer's Report. The information is in compliance with State law and the City's Investment Policy. 19E-1 Quarterly Report of Investments February 5, 2019 Page 2 The attached Treasurer's Report (Exhibit 1) accurately reflects all pooled investments held on behalf of the City as of December 31, 2018. The following two tables represent: (1) percentage limits set by the City's Investment Policy and State Law and shows respective City investment portfolio investment types, amounts, and percentages; and (2) the restricted cash balance as of December 31, 2018. Type of Investment Amount Invested $ Portfolio % COSA Policy Limits % State Law Limits % Certificate of Deposit (CD) $2,974,000.00 1.20% 30% 30% Federal Farm Credit Bank (FFCB) $41,972,660.00 17.00% None None Federal Home Loan Bank (FHLB) $57,676,216.33 23.36% None None Federal Home Loan Mortgage Corp. (FHLMC) $42,233,115.00 17.11% None None Federal National Mortgage Association (FNMA) $37,738,360.00 15.29% None None Local Agency Investment Fund (LAIF) $64,257,777.30 26.03% None None sub -Total $246,852,128.63 100% Cash 1 $19,613,330.74 Total 1 $266,465,459.37 Restricted Cash In $ Restricted Cash t, t2 $4,421,260.11 Total $4,421,260.11 t Restricted cash is held by a Trustee, Bank of New York Mellon, and is segregated from cash used for daily operations. t2 Please note during November 2018 Staff, with City Council concurrence, transferred approximately $5.8 million from its Restricted Cash to complete the refinancing of the former 2003 and 2011 Successor Agency Debt (2018 Refinancing Debt). The following City investment portfolio graph represents percentages within the respective investment types as of December 31, 2018. City of Santa Ana Investment Portfolio Asset Allocation CD December 31, 2018 • CMifiate of Deposit (CD) • Federal Farm CredH Bank (FFCB) • Fedwal Nome Loan Bank (FNIB) ■ Federal Home Loan Mortgage Corp. (FHLMC) • Federal National Wnpp Association (FNMA) • Local Agency Investment Fund (LAIF) The following three tables represent, as of December 31, 2018: (1) the aggregate Effective Rate of Return on the City's investment portfolio, both month to date (MTD) and year to date (YTD); (2) 19E-2 Quarterly Report of Investments February 5, 2019 Page 3 the aggregate Average Market Yield To Date (AMTD); and (3) the breakdown of AMTD by investment type. Aggregate Effective Rate of Return Month To Date (MTD) 1.72% Year To Date (YTD) 1.63% Aggregate Average Market Yield To Date Average Month To Date (AMTD) 1.85% AMTD Breakdown by Type of Investment Par Value of Investments Yield to Maturity % of Portfolio Average Market Yield to Date Certificate of Deposits $2,974,000.00 1.850% 1.20% 0.022% LAIF $64,257,777.30 2.208% 26.03% 0.575% Federal Agency securities $179,620,351.33 1.722% 72.77% 1.253% Total $246,852,128.63 1.850% 1 100.00% 1.850% STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1 (Maintain a stable, efficient and transparent financial environment), Strategy D (Develop a fiscal health analysis tool that informs a department of its financial position in order to assist in its decision making process). FISCAL IMPACT There is no fiscal impact associated with this action. /44� Kathfyn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. 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(||2 |! k _ ) �9' « �; : _ @m@�ra� (#rte■■! ■ a|§§■§|! ! IL ! t!§ ! ! 19E-9 |§ ! § I. (||2 |! | a|§§■§|! ! 19E-9 a r ------------------- y i �NN 1.1. r a �a Z W y m V O w Y W y :c10 T x ii a a H 9 E Y ry`H�'n"vnc❑'u�`Si,9iR0Ho�d�m.`oi u u 0 HHHH " y U d D y W ao N Q C 1^pi n m p rl :c a' Q d U 19E-10 ------------------- �a o� a a ry`H�'n"vnc❑'u�`Si,9iR0Ho�d�m.`oi HHHH o mn mm � ai v"i N'r°nm m •i�� P � d d � N 1^pi n m p rl P d it "Nn O1g Fi N O �( R aa ry' N d � e m C Cpo el C tl � C� C q$cmcq$ C � uNCs� S � m � eSCe+ Q_CQ pCp qCg y��T- Lmcv ��nV o a � 9� m m m v Q 2 f Q E a Q f Q 0 0 0 O p a a J 2 2 0 c o o O ti O ci c9 0 t9 O 'Z�Z o O Ummu U�UJg. W ]RwR� z¢¢Z�Zzz'Z�Z Fq Fp a� m F F F 4 ry FW F1 � U U K W u�Y1� u 2 2 i i i 000 E o v ci E E u LL E a U N a 08 z m d � m0 00 0 U N N N N N m N J J�+ J J J 7 J J J J d n L ryry 0 %' 19E-10 H 0 19E-11 19E-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE APPROPRIATION ADJUSTMENTS AND REALLOCATION OF FUNDS FOR BRISTOL STREET IMPROVEMENTS PROJECT PHASE 3B (PROJECT NO. 11-6740 NONGENERALFUND) (STRATEGIC PLAN NOS. 6, 1G; 3, 2C) CITY MANAGER RECOMMENDED ACTION 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 1. Approve an appropriation adjustment appropriating $600,000 from prior year fund balance in the Select Street Construction revenue account, and appropriating the same amount into the Select Street Construction expenditure account. 2. Approve an appropriation adjustment recognizing $572,000 in Transportation System Improvement Area F revenues, and appropriate the same amount into Transportation System Improvement Area F expenditure account. 3. Authorize the reallocation of $1,252,209 in unspent Fiscal Year 2015-16 Measure M2 Local Fairshare Funds from a completed project to the Bristol Street Improvements Project Phase 3B (Project No. 11-6740). DISCUSSION Bristol Street is a major north -south transportation facility which is designated as a major arterial 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 project that will be constructed in several phases. This segment is between Washington Avenue and Seventeenth Street and is designated as Phase 3B. Improvements include widening the street from two to three lanes in each direction, raised landscape medians, and bike lanes. Since the project is nearly completed, a reconciliation of project revenues found that initial expenditures made by the funding agency (Orange County Transportation Authority) had not been accounted for when the City took over managing the funds. In order to restore project budget levels to their original amounts, the two above appropriation adjustments are recommended. In addition, the third recommended action reallocates unexpended funds from a completed project to make them available for this project. These funds will allow final payments to be made and project closeout to be initiated. 20A-1 Appropriation Adjustment for Bristol Corridor Project February 5, 2019 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 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 There is no environmental impact associated with this action. FISCAL IMPACT Appropriation Adjustment — Select Street Construction The appropriation adjustments will recognize funds as follows: $600,000 of Gas Tax prior year balance in the Select Street Construction revenue account (No. 05917002-50001) and appropriate the same amount into the Select Street Construction expenditure account (No. 05917663-66220). Appropriation Adjustment— Transportation System Improvement Area F $572,000 from the Transportation System Improvement Area F revenue account (No. 03517002- 50001), and appropriate the same amount into the Transportation System Improvement Area F expenditure account (No. 03517660-66220). Project Reallocation Upon approval of the recommended reallocation of unspent Measure M2 Local Fairshare Funds, $1,252,209 will be available in the Measure M2 Local Fairshare Fund (Account No. 03217662- 66220). All funds will be available for expenditure in Fiscal Year 2018-19 for Bristol Street ImpNvements Project Phase 3B (Project No. 11-6740). 0 Fuad Sweiss, PE, PLS Executi Director Public rks Agency FSS/EWG/JG/ST/HG APPROVED AS TO FUNDS AND ACCOUNTS: r/ a�, Kdthryn Downg, CPA �� * Y9 Executive Director;s Finance and Management Services Agency 20A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE APPROPRIATION ADJUSTMENT FOR WORKFORCE INNOVATION AND OPPORTUNITY ACT TITLE I FUNDS FOR PROGRAM YEAR 2018-2019 (STRATEGIC PLAN NO. 2,4) CITY MANAGER RECOMMENDED ACTION Hill ;I.4:N]&%11111.lei IIll =to].IWill APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an appropriation adjustment recognizing additional Workforce Innovation and Opportunity Act, Rapid Response funds from the State of California, Employment Development Department in the amount of $121,033 in revenue account (no. 12318002-52001) and appropriating the same amount to expenditure accounts (no. 12318756 -various) for the period of October 1, 2018 through June 30, 2019. DISCUSSION The federal Workforce Innovation and Opportunity Act (WIOA) was signed into law on July 22, 2014. WIOA is designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. WIOA supersedes the Workforce Investment Act of 1998 and is the first legislative reform of the public workforce system in 15 years. California is a direct recipient of WIOA funding and contracts with the City of Santa Ana as a designated Local Workforce Development Area (LWDA) to address workforce needs of employers and the community. On July 17, 2018, the City Council adopted a resolution authorizing the City Manager to execute a new sub -grant agreement (Exhibit 1) with the State of California, Employment Development Department (EDD) to receive WIOA funds through program year 2021. The adoption of FY 2018-19 budget included estimated amounts for each of the four formula funding sources; Adult, Dislocated Worker, Youth, and Rapid Response. Rapid Response is the only program in which the total allocation from EDD for program year 2018-19 exceeds the total budgeted for this program in the City's budget. The notification from EDD was received after the adoption of the budget, and therefore, an appropriation adjustment is needed to recognize the 20B-1 Appropriation Adjustment for WIOA Rapid Response Funds February 5, 2019 Page 2 funds. The table below reflects the original budgeted amount and the final allocation for the Rapid Response program: The additional $121,033 in Rapid Response funds will be used to support and coordinate efforts to avert layoffs in the effort to save jobs within the city. The funds will also be used in allowable activities in response to layoffs, business closures, and natural disasters. STRATEGIC PLAN ALIGNMENT Approval of this item supports efforts to meet Goal #2 — Youth, Education, Recreation; Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT Approval of the appropriation adjustment will recognize $121,033 in revenue account (no. 12318002-52001) and increase Rapid Response expenditure accounts (no. 12318756 -various) for expenditure in FY 2018-19. APPROVED AS TO FUNDS AND ACCOUNTS: �'=A - i " Steven A. Mendoza Kathryn Downs, CPA Executive Director Executive Director Community Development Agency Finance and Management Services Agency CdIR/bg v Exhibit: 1. Subgrant K9110047, Modification No. 2 20B-2 Rapid Response Final 2018-19 Allocation Amount $463,033 FY 2018-19 Budgeted Amount $342,000 Difference $121,033 The additional $121,033 in Rapid Response funds will be used to support and coordinate efforts to avert layoffs in the effort to save jobs within the city. The funds will also be used in allowable activities in response to layoffs, business closures, and natural disasters. STRATEGIC PLAN ALIGNMENT Approval of this item supports efforts to meet Goal #2 — Youth, Education, Recreation; Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT Approval of the appropriation adjustment will recognize $121,033 in revenue account (no. 12318002-52001) and increase Rapid Response expenditure accounts (no. 12318756 -various) for expenditure in FY 2018-19. APPROVED AS TO FUNDS AND ACCOUNTS: �'=A - i " Steven A. Mendoza Kathryn Downs, CPA Executive Director Executive Director Community Development Agency Finance and Management Services Agency CdIR/bg v Exhibit: 1. Subgrant K9110047, Modification No. 2 20B-2 WIOA SUBGRANT AGREEMENT SANTA ANA WORKFORCE INV BOARD PASS-THROUGH ENTITY: State of California Employment Development Dept. Central Office Workforce Services Division P.O.Box 826880, MIC 69 Sacramento, CA 94280-0001 EXHIBIT 1 SUBGRANT NO: K9110047 MODIFICATION NO: 2 SUBRECIPIENT CODE: SAN UNIQUE ENTITY NO: 083153247 INDIRECT COST RATE: CAP SUBRECIPIENT: SANTA ANA WORKFORCE INV BOARD 801 W. Civic Center Drive r SANTA ANA, CA 92701 GOVERNMENTAL ENTITY: Yes This Subgrant Agreement is entered into by and between the State of California, Employment Development Department, hereinafter the Pass-through Entity, and the SANTA ANA WORKFORCE INV BOARD, hereinafter the Subrecipient. The Subrecipient agrees to operate a program in accordance with the provisions of this Subgrant and to have an approved Workforce Innovation and Opportunity Act (WIOA) Local Plan for the above named Pass-through Entity filed with the Pass-through Entity pursuant to the WIOA. This modification consists of this sheet and those of the following exhibits, which are attached hereto and by this reference made a part hereof. Funding Detail Chart Rapid Response Layoff Aversion Rapid Response by Formula Dislocated Worker Rd 2 Adult Formula Rd 2 ALLOCATION(s) PRIORAMOUNT $1,164,107.00 The Pass-through Entity agrees to reimburse the I INCREASE/DECREASE:, $1,508,852.00 Subrecipient not to exceed the amount listed TOTAL:' $2,672,959.00 hereinafter'TOTAL' TERM OF AGREEMENT Terms of Exhibits areas From:4/1/2018 To: 6/30/2020 designated on each exhibit PURPOSE: The purpose of this modification is to add second round WIOA formula funding for Program Year (PY) 2018-19 into grant codes 202, 293, 502, and 541. - -. - ...---------- k- ----------- APPROVED FOR PASS-THROUGH ENTITY(EDD) !APPROVED FOR SUBRECIPIENT (By Signature) (By ignature) n i Unilateral modification. Subrecipient Signature not ` � £required Na nd Title Name and Title JAI GUTIERREZ CH CEN L OFFICE WORKFORCE SERVICES DIVISION I hereby certify that to my knowledge, the budgeted iThis agreement does not fall within the meaning of Section funds are available for the period and purpose of 110295 of Chapter 2 of Part 2 of Division 2 of the Public expenditures as stated herein !Contract Code of the State of California and pursuant to 58 TOPS Cal. Atty. Gen 586, is exempt from review or approval of ;the Dept. of General Services and the Dept. of Finance Sint of EDD Accounting Officer B.19M Aam: 7100 Fu ;0869 BW90WYAtachmant No Chador. 029 Stable: 2018 FY.18119 r1- Page 7 of 7 EXHIBIT 1 Page 2 of 7 SUBGRANT AGREEMENT FUNDING DETAIL SHEET SANTA ANA WORKFORCE INV BOARD I. Allocation Funding Source ; Prior Amount Increase ;NIIA/VVIOA 25% -Dislocated Worker Rapid Response ...___. __.... _.._.__.._ _._—.. 96219 292 Rapid Response Layoff $17,744,00; $C EXHIBIT 1 SUBGRANT NO: K9110047 MODIFICATION NO:2 Decrease ? Adjusted Allocation i $0.00; $17,744.00 07/01/2018 to 06/30/2019 Prog/Element; 61 /70 Ref 001 Fed Catl-3.78 �.._.. 17 2 I _ _ 293 Rapid Response Layoff --- so. OOi 08429 $89,807.00? Aversion :10/01/2018 to 06/30/2019 Prog/Element': r 61170 Ref... Fed Cath 17.278 96219 540 Rapid Response by Formula $62;912.00: $0.00; 07/01/2018 to 06/30/2019 Prog/Element; 61/70 Ref 001 Fed Catlg 17.278_ P8426__541 Rapid Response by Formula ;10/01/2018 to 06/30/2019 Prog/Element j 61/70 Ref 001 Fed Catlg.17,278 I - Total WIAIWIOA 25% - Dislocated I $80,656.00; $382,377.00! ;__- .___.- . Worker Rapid Response; VVIAIW16A Formula - -�4- 96159 201 Adult Formula RD 1 $134,619.001 $0.001 07/01/2018 to 06/30/2020 Prog/Element= i 61/90 Ref 101 Fed Catlg 17.256 -_ 98289 202 Adult Formula Rd 2 _ $0.00 $715,511.00 10/01/2018 to 06/30/2020 Prog/Element; _- 61/90 Ref 101 Fed Catlg_17.258 _ 96109 301 Youth Formula Rd 1 $862,46.r07 $0.00i 04/01/2018 to 06/30/2020 Proc/Element i 7/01/2018 to 06/30/2020 Prog/Element 61/90 Ref 101 Fed Catic 17.278 /2018 to 06/30/2020 ,126 $82,912.00 $312,570,00. $463,033,00. $715,511. All references are to the Workforce hnovation and Opportunity Act of 2016, Title I, unless Page 3 of 7 otherwise noted. For modifications purposes only. All other terms and conditions of this exhibit EXHIBIT 1 NARRATIVE SUBGRANT NO:Kg110047 MODIFICATION NO: 2 SUBRECIPIENT:SANTA ANA WORKFORCE INV BOARD FAIN NO: AA -32213-18-55-A-6 FEDERAL AWARD DATE: FUNDING SOURCE: Adult Formula Rd 2 - 202 TERM OF THESE FUNDS: 10/01/2018 - 06/30/2020 ............................................................. .Use of funds added by this modification is limited to this period and ; :additionally limited by the recapture provisions applicable to this :funding source. The state may at its discretion recapture funds obligated under this exhibit, if expenditure plans are not being met. ............................................................. Workforce Innovation and Opportunity Act (WIOA) Adult Formula funds are being incorporated Into the Program Year (PY) 2018-19 Subgrant Agreement to support the WIOA Adult Program. The funds in grant code 202 consist of 2nd round funding and are available for expenditure from October 1, 2018 through June 30, 2020. FAIN AA -32213-18-55-A-6 ........................................................................................ .This exhibit adds to and does not replace the terms and conditions of any other exhibit included In this agreement which terms and conditions remain in full force and effect. ....................................................................•----- w1oA (2015) Page 4 of 7 rI- EXHIBIT 1 NARRATIVE SUBGRANT NO: K9110047 MODIFICATION NO: 2 SUBRECIPIENT:SANTAANA WORKFORCE INV BOARD FAIN NO: AA -32213-18-55-A-6 FEDERAL AWARD DATE: FUNDING SOURCE: Dislocated Worker Rd 2 - 502 TERM OF THESE FUNDS: 10/01/2018 - 06/30/2020 ;Use of funds added by this modification is limited to this period and ; ;additionally limited by the recapture provisions applicable to this funding source. The state may at Its discretion recapture funds :obligated under this exhibit, if expenditure plans are not being met. .............................................................. PROGRAM NARRATIVE Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker Formula funds are being incorporated into the Program Year (PY) 2018-19 Subgrant Agreement to support the WIOA Dislocated Worker Program. The funds in grant code 502 consist of 2nd round funding and are available for expenditures from October 1, 2018 through June 30, 2020. FAIN AA -32213-18-55- A-6 ---------------------------------------------- ...--------- .------ I .......... ................. ,This exhibit adds to and does not replace the terms and conditions of any other exhibit included in this :agreement which'terms and conditions remain in full force and effect. ................................................................ NIOA (2015) Page 5 of 7 20B-7 EXHIBIT 1 NARRATIVE SUBGRANT NO:K9110047 MODIFICATION NO: 2 SUBRECIPIENT:SANTAANA WORKFORCE INV BOARD FAIN NO: AA -32213-18-55-A-6 FEDERAL AWARD DATE: FUNDING SOURCE: Rapid Response Layoff Aversion - 293 TERM OF THESE FUNDS: 10101/2018 - 06/30/2019 .. ;Use of funds added by this modification Is limited to this period and ; ;additionally limited by the recapture provisions applicable to this funding source. The state may at its discretion recapture funds ;obligated under this exhibit, if expenditure plans are not being met. ............................................................. PROGRAM NARRATIVE Layoff Aversion funds are being Incorporated into the Program Year (PY) 2018-19 Subgrant Agreement to support the Layoff Aversion Program. These funds will support local areas through a high performing Rapid Response strategy, which will emphasize coordinated efforts to avert layoffs in the effort to save jobs. The term of these funds are from October 1, 2018 through June 30, 2019. FAIN AA -32213-18-55-A-6 ............................................................................................... ;This exhibit adds to and does not replace the terms and conditions of any other exhibit included In this agreement which terms and.conditions remain In full force and effect. WIOA (2015) Page 6 of 7 EXHIBIT 1 NARRATIVE SUBGRANT NO: K9110047 MODIFICATION NO:2 SUBRECIPIENT:SANTA ANA WORKFORCE INV BOARD FAIN NO: AA -32213-18-55-A-6 FEDERAL AWARD DATE: FUNDING SOURCE: Rapid Response by Formula - 541 TERM OF THESE FUNDS: 10/01/2018 - 06/30/2019 ............................... ;Use of funds added by this modification is limited to this period and ; :additionally limited by the recapture provisions applicable to this funding source, The state may at its discretion recapture funds ;obligated under this exhibit, if expenditure plans are not being met. .............................. PROGRAM NARRATIVE These Workforce Innovation and Opportunity Act (WIOA) 25 percent Rapid Response (RR) funds are being incorporated into your Program Year (PY) 2018-19 Subgrant Agreement to support the WIOA Dislocated Worker Program. The funds in grant code 541 consist of 2nd round funding and are available for expenditures from October 1, 2018 through June 30, 2019. These 'formula advanced' Rapid Response funds must be used for the cost of required and allowable Rapid Response activities in response to layoffs, business closures, and natural disasters. FAIN Number AA -32213-18-55-A-6 ............................................................................................... ;This exhibit adds to and does not replace the terms and conditions of any other exhibit included in this :agreement which terms and conditions remain in full force and effect. ,................................................................................................ wloa (2015) rl- • Page 7 of 7 20B-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 05, 2019 TITLE: CONTRACT AWARD TO BRODART COMPANY FOR CATALOGING AND PURCHASE OF BOOKS AND MATERIALS (SPECIFICATION NO. 19-001) (STRATEGIC PLAN NO. 2,3; 5,3,4) �— f A _-- CITY MANAGER 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 Award a contract to Brodart Company for library cataloging and for the purchase of books and materials for a two- year period expiring January 31, 2021, with provision for three, one-year renewals exercisable by the City Manager, in an annual amount not to exceed $285,000, subject to non -substantive changes approved by the City Manager and City Attorney. The Santa Ana libraries provides adult and youth programs to 133,222 card holders annually. Approximately 15,000 books and materials are purchased on an annual basis, including a Spanish concentration of 18 percent. All books and audio/video materials purchased are bar coded, cataloged, and placed directly into the Library database, so materials can be entered into circulation. The books and materials purchased offer a variety of reading material and resources, allowing the City to continuously provide a wide range of educational services and programs to the community. Brodart Company has been the Santa Ana libraries primary materials and services provider for several years, offering the. largest access to Spanish language materials. Industry standard is to contract one book vendor for the primary source of materials and services. This facilitates ordering, discounts and allows for efficient introduction of new materials into the existing catalog on an on- going basis. Brodart's electronic selection and ordering system offers a seamless barcoded, shelf - ready selection of materials. Santa Ana City Ordinance No. NS -2312 authorizes the City to purchase against contracts from any public agency utilizing a competitive bid process. The Palos Verdes Library District's contract with Brodart Company for library cataloging, books and materials was awarded as a result of open, competitive bidding, and meets the City's requirement. 22A-1 Contract Award for Library Cataloging and Purchase of Books and Materials February 05, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports City efforts to meet Strategic Plan Goal #2 Youth, Education, Recreation Objective #3, (expand use of technology as a tool for communication and education in the community). Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #3, (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability in Santa Ana), and Objective #4, (Support neighborhood vitality and livability) FISCAL IMPACT Funds in the amount of $73,000 are available in FY 2018-19 (Feb. — June 2019) in the Library Services accounts as follows: Department Location Account No. FY 2018-19 Technology & Support Services 01111190-66600 $18,750.00 Library Adult Services 01111150-66600 $52,083.00 Library Youth Services 01111160-66600 $35,417.00 Library Young Adult Services 01111180-66600 $6,250.00 Technology & Support Services Misc. 01111190-63001 $6,250.00 $125,000.00 Total $73,000.00 Future years proposed budgets will include allocations as follows: Z), C) LisA RLdloff Executive Director Parks, Recreation, and Community Services Agency APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Dow s, CPA Executive Director Finance and Management Services Agency EGfrl 0 22A'" Anticipated Expenditures Account No. FY 2019-20 12 -months FY 2020721 12 -months FY 2021-22 12 -months FY 2022-23 12 -months FY 2023-24 . (7 -months) 01111190-66600 $45,000.00 $45,000.00 $45,000.00 $45,000.00 $46,250.00 01111150-66600 $125,000.00 $125,000.00 $125,000.00 $125,000.00 $82,917.00 01111160-66600 $85,000.00 $85,000.00 $85,000.00 $85,000.00 $60,333.00 01111180-66600 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $11,250.00 01111190-63001 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $11,250.00 Total 1 $285,000.00 $285,000.00_ $285,000.00 $285,000.00 1 $212,000.00 Z), C) LisA RLdloff Executive Director Parks, Recreation, and Community Services Agency APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Dow s, CPA Executive Director Finance and Management Services Agency EGfrl 0 22A'" REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: AWARD CONTRACT TO QUALITY FENCE CO., INC., FOR CHAIN-LINK FENCE AND GATE INSTALLATION (SPECIFICATION NO. 18-080) {STRATEGIC PLAN NO. 6, 1C} CITY MANAGER 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 Award a contract to Quality Fence Co., Inc., for chain-link fence and gate installation for a one- year period, with provisions for two one-year renewals exercisable by the City Manager, in an annual amount not to exceed $200,000, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Water Resources Division is responsible for maintaining the daily operations of the water and sanitary sewer systems with an average demand of 43 million gallons and 45,000 services per day. The City's system is comprised of approximately 444 miles of water main, 45 million gallons of storage at seven sites, seven Metropolitan Water District connections, 21 groundwater wells, 7 pump stations, 1 elevated tank, 4 pressure regulating stations, and utilizes 2 pressure zones. Services provided under the chain-link fence and gate installation contract will improve security around the water system's wells, reservoir stations, and water facilities. The work shall consist of, but not be limited to, the removal and proper disposal of existing fencing and the construction of fabricated industrial steel fencing and/or vinyl -chloride chain-link fencing at various locations. The Notice Inviting Bids was advertised on November 29, 2018, on the City's online bid management and publication system. A summary of the bid invitation and bids received is as follows: 325 Vendors were notified 4 Santa Ana vendors were notified 25 Vendors downloaded the bid packet 5 Bids received 0 Bids received from a Santa Ana vendor 2213-1 Award Contract for Chain-link Fence and Gate Installation February 5, 2019 Page 2 Bids were opened on December 20, 2018, and evaluated (Exhibit 1). The bid received from Quality Fence Co., 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. 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 $100,000 are available for expenditure in FY 2018-19 in the Water Utility Water Production & Supply account (06017640-62300). Subsequent funding for the two one-year renewal periods will be budgeted and made available in FY 2019-20, FY 2020-21 and FY 2021- 22 as follows: Account No.FY Anticipated Expenditures 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 06017640-62300 $100,000 $200,000 $200,000 $100,000 7 Executive Pirector Public Works Agency Exhibit: 1. Abstract of Bids APPROVED AS TO FUNDS AND ACCOUNTS: 14a� " Kathryn Downs', CPA Executive Director Finance and Management Services Agency 228-2 ABSTRACT OF BIDS CHAIN-LINK FENCING AND GATE INSTALLATION (18-080) BIDDER LOCATION TOTAL Ace Fence Company La Puente, CA $1,090,812.00 Econo Fence, Inc. Riverside, CA $630,920.00 Q Fence & Fabrication, Inc. Chino Hills, CA $622,300.00 Quality Fence Co, Inc. Paramount, CA $518,000.00 Red Hawk Services Perris, CA $885,199.40 EXHIBIT 1 228-3 22B-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: AWARD CONTRACT TO ARAMEXX GROUP INC. FOR THE JEROME CENTER LANDSCAPE DRAINAGE PROJECT (PROJECT NO 19-2703) (STRATEGIC PLAN NO. 6, 1C) CITY 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 Award a contract to Aramexx Group Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $83,155, for the term beginning upon execution of the contract and ending upon project completion, for construction of the Jerome Center Landscape Drainage Project, and authorize the City Manager and the Clerk of the Council to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $100,000 which includes the contract bid amount, administration, inspection and testing, and an authorized contingency of $8,313. The Jerome Center provides several programs forthe community, including recreational basketball activities (Exhibit 1 -Map). In August of 2018, the indoor basketball courts were compromised by water damage, began uplifting and were not usable. Staff quickly assessed the problem and determined that water was infiltrating into the building foundation from the exterior landscaping irrigation system and room drains. Consequently, a project was developed to address these concerns. The scope of work for the project includes drainage improvements to the exterior of the building, modifications to the existing irrigation system, along with regrading and the removal of unnecessary trees and shrubs located adjacent to the building. These improvements should prevent water from intruding into the building foundation and damaging the new basketball court. A Notice Inviting Bids was advertised on January 18 and 23, 2019, and bids were opened on January 29, 2019. The following is a summary of the bid invitations made and the bids received: 23A-1 Award Contract to Aramexx Group Inc. for Jerome Center Landscape Drainage Project February 5, 2019 Page 2 Contractor Participation Data Santa Ana contractors receiving notices 20 Contractors requesting bidding documents 27 Bids received 5 Bids received from Santa Ana contractors 0 Outreach To provide an opportunity for local vendors to submit bids, the City is now utilizing the PlanetBids web -based system. Through this system, 20 qualified local vendors were notified of the opportunity to bid on this project. Bid Results Summary RANK BIDDER'S NAME LOCATION BASE BID 1 Aramexx Group Inc. Claremont $83,155 2 HYM Engineering, Inc. Buena Park $92,630 3 Green Giant Landscape, Inc. La Habra $98,000 4 Ya [CEEMConstruction Covina $109,750 5 Corp. Downey $118,750 A total of five bids were received and all bids were deemed responsive. Aramexx Group Inc. submitted the lowest responsive bid in the amount of $83,155 (Exhibit 2). Based on the bid analysis and a contractor's reference check, staff recommends awarding the construction contract to Aramexx Group Inc. in the amount of $83,155 (Exhibit 3). 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 to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER -2019-10 was filed for the project. 23A-2 Award Contract to Aramexx Group Inc. for Jerome Center Landscape Drainage Project February 5, 2019 Page 3 FISCAL IMPACT Pursuant to the Cost Analysis (Exhibit 4), the estimated total construction delivery cost of the project is $100,000 which includes construction contract, administration, inspection, testing, surveying, and an authorized contingency of $8,313. Funding is available in the PRCSA-Capital Outlay Fund (Cell Tower) for $100,000 (Account No. 05113263-66220) for expenditure in Fiscal Year 2018/19. APPROVED AS TO FUNDS AND ACCOUNT: FuadWeiss, PE, PLS Kath n Downs,CPA3 Executive Director Executive Director Public Wo ks Agency Finance and Management Services Agency WHOWNLIQ/'N 1T.. Executive Director Parks, Recreation, and Community Services Agency EWGlFC/MO Exhibits: 1. Location Map 2. Bid proposal 3. Construction Contract 4. Cost Analysis 23A-3 23A-4 LOCATION MAPA (NOT TO SCALE) SANTA ANA Project No. 19-2703:P`W� Jerome Center Landscape Drainage NBUCWOMSAGBU Project 4U"I, � 23A-6 CITY OF SANTA ANA ADDENDUM NO. l PROPOSAL EXHIBIT 2 PROJECT NO.: 0-2703 JEROME CENTER LANDSCAPE DRAINAGE BID PROPOSAL TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: f; o i1ii510klel.rw The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule: Item P-1 Description Qty Unit Unit Price Amount I Clearing and Grubbing 1 LS $ $ 2 Remove Existing Planter Landscaping Trees 1 LS $ Q �� • $p oo O and / I/ 3 Furnish and Install Waterproofing 380 SF $ $ S- 1 IVO 4 Mulch (3'I 2,300 SF $ $ 5 Remove Existing and Construct PCC Walkway 310 SF $ S $ J (T=4") 11+9 6 Remove Existing and Construct PCC 24 LF $ f Q J $ 2,Z B D Curb & Gutter (A-2-6) 7 Furnish and Install Precast Concrete 8 LF $ �{�� $ Ir600' Splash Block 8 Furnish and Install 4" Perforated PVC Pipe 160 IF $ Z�� $ -�1 u000 9 Furnish and Install 4" PVC Pipe 170 LF $ n ! LSA $ -Iill SD� 10 Furnish and Install 6" PVC Pipe 100 LF $ 3D $ 3000- 000"11 11 Furnish and Install 8" PVC Pipe 170 LF $ 3 r $ q i I 12 Furnish and Install 12"x12" Drain Inlet 2 EA $ Z u $ PO i 13 PCC Parkway Culvert 1 EA $ 2$00' $ ?,$DO 14 Project Advertising Sign I EA $ \0()b' 006-- $ 1006-- P-1 of P-16 23A-7 CITY OF SANTA ANA ADDENDUM NO. 1 PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE Item Description Qty Unit Unit Price Amount 15 Labor Agreement Oversight 1 LS $5,000 $5,000 TOTAL BASE BID The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add -alternate bid items (if any). TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within twenty (20) working days after the commencement date stated in the Notice to Proceed. The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $500 per calendar day. Name of Firm Signature of BI Title (If an individual, so state. If a fain or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. if a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-2 of P-16 23A-8 CITY OF SANTA ANA PROPOSAL PROTECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE BIDDER'S STATEMENT BIDDER understands and agrees that this Bid Proposal, Contract Documents and subsequent Construction Contract Agreement shall constitute the entire agreement between BIDDER and the AGENCY only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Public Works Agency Executive Director or his/her duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to BIDDER or deposited with the United States Postal Service properly addressed to the BIDDER with the correct postage affixed thereto. BIDDER further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish AGENCY all required bonds and certificate of liability insurance within ten (10) business days or the funds, check, draft, or BIDDERS bond substituted in lieu thereof accompanying this proposal shall become the property of the AGENCY and shall be considered as payment of damages due to the delay and other causes suffered by AGENCY because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered is difficult to ascertain; otherwise said funds, check, drafts, or BIDDER'S bond substituted in lieu thereof shall be returned to the undersigned. BIDDER understands that a bid is required for the entire work, the estimated quantities set forth in the bid schedule are solely for the purpose of comparing bids, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. The BIDDER also certifies that the bid is a balanced bid. In accordance with Section 7028.15 of the California Business and Professions Code, the undersigned certifies under penalty of raper ury that the foregoing is true and correct. Name of Firm Amex r4p Inc` Signature of BIDDER Title Salim Samour - President (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. if a corporation, stale legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-3 ofP-16 23A-9 CI'T'Y OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE CONTRACTOR'S LICENSING AND REGISTRATION STATEMENT The undersigned contractor, or corporate officer, declares under penalty of perjury that he/she and all his/her subcontractors are registered with the State of California Department of industrial Relations (DIR), and that the following is true and correct. Contractor's Name: Aramexx GrouD Inc Business Address: 541 wast First et Unit 109 Claremont CA 91711 Business E -Mail Address: infoparamexxgroupinc.com Telephone: 909-746-8066 State Contractor's License No. and Class: Class A # 960305 License Expiration Date: 4/30/19 State Dept. of Industrial Relations (DIR) Registration No.: 100001010179 State Dept. of I us 'al elat is IR) Registration Exratio 6/30/19 Signed: — Title: Salim Samour - President P-4 of P-16 23A-10 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE PREVAILING WAGE COMPLIANCE AND MONITORING STATEMENT Contractor is aware of the requirements of California Labor Code Section 1720, et seq., as well as California Code of Regulations, Title 8, Section 16,000, 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. Since the services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. 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. The undersigned certifies that the foregoing is true and correct. Name of Firm Signature of BE Title Salim Samour - President (if an individual, so state) P-5 of P-16 23A-11 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE LIST OF SUB -CONTRACTORS Section 4100 et. seq. of the Public Contract Code requires listing of all subcontractors with the bid for all subcontract work exceeding the following amount: o Streets, highways including bridge projects: ''/2% of the bid or $10,000, whichever is greater o Buildings, parks, or other projects: Y2% ofthe bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the firms listed below: Name iAAIA 6 License #/Exp. DIR Reg. #/Exp. Location Phone Type Of Work A mount $ Name License #/Exp. DIR Reg.#/Exp. License # Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg.#/Exp. License # Location Phone Type Of Work Amount$.. Signature of Bidder Name License #/Exp. DIR Reg. #/Exp. Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # _ Location _ Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. 4/Exp. License # Location Phone Type Of Work Amount $ P-8 ofP-l6 23A-12 CITY OF SANTA ANA PROPOSAL PROTECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER has performed similar work within the past three years. Ulrich Address of Owner. 610-9410 Name and Telephone Number of person familiar with project. $1.377.816 Landscape & Irrigation Contract Amount Type of Work 2. Cahuilla Band of Indians Anza, CA Name and Address of owner. Jan 2019 Date Completed Name and Telephone Number of person familiar with project. $729,940 Softball Field- Irrigation & Landscape Nov 2017 Contract Amount Type of Work Date Completed of Claremont 207 Harvard Ave., Claremont CA 91711 Name and Address of owner. CariDillman 909-399-5431 Name and Telephone Number of person familiar with project. $296,323 Dog Park Renovations Dec 2017 Contract Amount Type of Work . Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. Pinnacle Surety 151 Lamus Dr Ste A201 Costa Mesa CA 92626 Shawn Blume 951-217-8637 2P39Af PAT CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE ADDITIONAL REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER or Subcontractor has performed similar work in the past five years. City of Anaheim 200 S. Anaheim Blvd, Anaheim CA 90805 Name and Address of Owner. Blair Fickett 562-301-4644 Name and Telephone Number of person familiar with project. $584,710 Landscape, Irrigation, Hardscape 1-26-16 Contract Amount Type of Work Date Completed 2• Monument Sign City of Buena Park 6650 Reach Blvd Buena_ Park Name and Address of owner. Ken Kim 714-562-3688 Name and Telephone Number of person familiar with project. $159,407 Landscape, Sign 9-10-18 Contract Amount Type of Work Date Completed of Victorville 14343 Civic Center Dr Vicorville CA 92392 Name and Address of owner. Bruce Miller 760-955-5085 cq*Td Telephone Number of person familiar with project. Contract Amount Landscape, Irrigation 6-28-16 Type of Work Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. Pinnacle Surety 714-465-5100 151 Kalmus Dr. St A201 Costa Mesa CA 92626 P-10 of P-16 23A-14 CITY OF SANTA ANA PROPOSAL PROTECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE NON-DISCRIMINATION CERTIFICATE The undersigned contractor or corporate.officer, during the performance of this contract, certifies as follows: The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruinrnent or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of die Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. P-12 of P-16 23A-15 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stars. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any contractor of p> ewof�s viaYating this Section is subject to all the penalties imposed for a violation of the C ap er Signed: Title: Salim Samour - President Firm: Aramexx Group Inc Date: 1-29-19 P-13 ofP-16 23A-16 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE STATEMENT REGARDING APPRENTICESHIP REWREMENTS The undersigned BIDDER is familiar with the requirements of Section 1777.5 of the State Labor Code regarding employment of apprentices, and understands that contractors on contracts exceeding $30,000 or 20 working days shall: 1. Apply to the joint apprenticeship committee administering the apprenticeship standards of the craft or trade in the area of the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. 2. Employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the apprenticeship standards. 3. Contribute to the fund or ibnds in each craft or made in which lie/she employs journeymen or apprentices on the public work, in the same amount or upon the same basis and in the same manner as t tier ontra except contractors not signatory to the trust agreement shall pay a like amou toe Cala Apprenticeship Council. Signed: y .�_._.- Title: Salim Samour - President Firm: Aramexx Group Inc Date: 1-29-19 1 P 1 // CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE STATEMENT REGARDING "ANTI -KICKBACK" REQUIREMENTS The undersigned is submitting this proposal for performing by contract the work required by these bid documents, agrees to comply with the Copeland "Anti -Kickback' Act (18 USC 74) as supplemented in the Department of Labor regulations (29 CFR, Part 3). This act provides that each contractor or subcontractor shall be prohibited from inducing, by any means, any person employed in the ce�flsuct' nor" of public work, to give up any part of the compensation to which he/she is otherva e titled. Signed: - Title: Salim Samour - President Firm: Aramexx Group Inc Date: 1-29-19 P-15 of P-16 23A-18 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 19-2703 JEROME CENTER LANDSCAPE DRAINAGE PUBLIC CONTRACT CODE SECTION 10162 OUESTIONNAIRE In conformance with Public Contract Code Section 10162, the BIDDER shall complete, under penalty of perjury, the following questionnaire: Has the BIDDER, any officer of the BIDDER, or any employee of the BIDDER who has a proprietary interest in the BIDDER, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes No x If the answer is yes, explain the circumstances in the following space. iAfPAI9 MAYOR Miguel A. Pulido MAYOR PRO TEM Juarl Viliegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Roman Rayne Vicente Salmlento Jose Solodo January 22, 2019 ADDENDUM NO. ONE CITY OF SANTA ANA 20 Chic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 www.sant"na.OM PUBLIC WORKS AGENCY CITY MANAGER Raul Godinez II CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Hulzar SUBJECT: PROJECT NO. 19-2703: JEROME CENTER LANDSCAPE DRAINAGE The following changes/clarifications have been made for the subject project: Revision 1. Replace page P-1 of P-16 and P-2 of P-16, Proposal. Bid Items have been revised. 2. Replace all sheets of Appendix A, Definition of Bid Items, 3. Replace all sheets of Appendix F, Standard Plans. 4. Replace all sheets of Appendix G, Products. 5. Replace plan sheet 2 of 2, Improvement Plan. Clarification 6. Per page iv, Notice Inviting Bids, Bids are due on January 29, 2019. Correction has been made on PlanetBids. All other terms and conditions remain the same. FOR THF CITY VSANTA ANA Edwin "William" GaWez, P.E. City Engineer SANTA ANA CITY COUNCIL \H2O\ VaW A. PWIdo Juan vmwe Vio Ml SaWemo David PvW= Jme80alo Ru RRayne Cedla Vesim 5myw Mayor Pro Tem, Word 5 Wardd Wanl2 Wad3 Ward Wade rilamae�sardaace ora dcecelma(a�58M159ce Qn hNbrio(@salla-ana.am___.Reme�Osanlaannae ._. ddasimOmnlaane.ma i 23A-20 Z"\ 3 Aramexx aaa55511Construction 101 N. Indian Hill Blvd. Suite C1-201 Claremont, CA 91711 PH: 909.746.8066 - FX: 909,591.4569 1. Department of Transportation Install Vegetation Control Under Guardrail, 08.0114804. Dec 2016—July 2017 172730th Street Construction on state highway in San Bernardino County, In Sacramento, CA 95816 Ontario on route 10 from 0.2 mile East of Vineyard Ave. 951-232-6478 overcrossing to 0.1 mile East of Milliken Ave. and in Chino on David Benson route ED from 0.2 mile West of Mountain Ave. undercrossing to david.benson@dot.m.gov Euclid Ave. undercrossing. 2. Department ul Transportation Install Rock Blanket, 08-0115404. Construction on state highway in Sept. 2016— Jan. 2017 1727 30th Street San Bernardino County In Hesperia and Victorville from 0.2 mile Sacramento, CA 95816 North of Joshua Street overcrossing to 0.2 mile North of Mojave 951-232-6478 Drive overcrossing. David Benson davld.benson@dot.ca.gcv 3. Brea Olinda Unified School Track Replacement Project at Brea Olinda,16003.00. Demolition lune 2016—Aug. 2016 District of old tracks exovatiompaving, installation of synthetic running 1 Civic Center track surface, installation of landscape Irrigation system, storm Level2 drainage, and planting. Brea, CA 92821 909.6"-8009 Noel Garcia ngarcia@mlkl2.00m 4. Cfry of la Habra Heights La Habra Heights Park Irrigation System Upgrade, 2023-05. June 2016—Aug. 2016 1245 N. Hacienda Rd. Upgrade of existing irrigation system. Installation of new new La Habra Heights, CA 90631 controller, new remote control valves, new sprinkler heads, main 562-6946302 line and lateral piping. Lori Askew Iaskew@Lhhclty.org S. Momngo Band of Mission Morongo Roundabout landscape Improvements, 08 -15 -N -LF- Oct 2015—Dec. 2016 Indians - 0337. Installation of new Califomia native landscape and 12700 Pumarra Rd. irrigation, electrical lighting, underground boring, service Banning,CA92220 pedestals, concrete hardscape, cobble paving, fence, point to 951-755-5124 point irrigation, and grading. Karen Woodard kwoodard@momngo-nsn.gov 6. City of Anaheim Uttle Peoples Park Remodel and Improvements, RCP 2015-11137. Oct. 2015—Feb. 2016 200 S. Aneehim Blvd. Demolition of existing concrete walk paths and landscape, Anaheim, CA 92805 irrigation of new wrought Iron fence, natural stone pilasters, brick 714-7653166 pavers, drinking fountains, electrical lighting, site amenities, Blair Flckett basketball court resurface and equipment, wood gazebo, Bfickett@anahelm.net concrete walkways, landscape and irrigation. 7. City of Claremont College Park Landscape and Irrigation Improvements, OP 2015-6. Oct. 2015—Jam 2016 207 Harvard Ave. Baseball field renovations, drip irrigation, palm to point irrigation, Claremont, CA 91711 shrub and rotor Irrigation, DG mulch, DG trails, concrete 909-3935460 walkways, concrete mow curbs, mulch, runningtrack Kristin Mikula kmlkula@ci.claremont.ca.us 23A-21 J Aramexx Construction 101 N. Indian Hill Blvd. Suite C1-201 Claremont, CA 91711 PH: 909.746.8066 - FX: 909.591.4569 8. Metro North Hollywood Sustainable Parking Demonstration Project, IFB Apr. 2015—Sept. 2015 1 Gateway Plaza No. C11326. Construction of temporary parking lot and mull -use Los Angeles, CA 90012 trail, heavy grading and export, compaction, laser grading, 213-922-6268 landscape and irrigation installation, TemPark installation, drive Awny Malak approaches, fencing. utility coordination and installation. malaka@metro.com 9. City of Fontana Foothill Blvd. Median Landscape From Cherry Ave. to Hemlock Mar. 2014—Aug. 2015 8353 Sierra Ave. Ave. 56 -02 -DE -15. Median work, removal and export of soil, Fontana, CA 92335 grading, boring, Irrigation service and electrical service pedestals, 909-350-6649 cobble paving, palm tree planting, point to point Irrigation, Christopher Smethurst natural cobble swales. 10. City of Menifee Newport Rd.Widening-Median work, removal and export of soil, Oct. 2014—Jan. 2015 29714 Haun Road grading, boring, irrigation service and electrical service pedestals, Menifee, CA 92586 cobble paving, point to point irrigation, natural cobble swales. 951-639-1368 Carlos Geronimo or Nino Abad cgemnimo@dtyofinengee.us ' 11. Chaffey School District Ontario High School Quad Mcdemization- Installation of 6' Aug. 2014—Dec.2014 901 West Francis St. mainline, point to point irrigation, tree and shrub landscaping. Ontario, CA Project completed in multiple phasm 909-460-5886 David Rutz druiz@tilden-coil.com 23A-22 Or E OF _:J.,: . i^c• i STATE MMIMMON #JTNCY :,.d hl,q U.,L b� DEPARTMENT OF TRANSPORTATION DISTRICT 8 CONSTRUCTION DIVISON (MSIM) 464 WEST 4TH STREET, 61a FIAOR SAN BERNARDINO, CA 97401-1400 FHONE (909) 383-4563 FAX (909) 383-6913 TTY (909) 383-6300 October 17, 2018 To Whom It May Concern MaWagConse'vaffon a CadfMdaWay of Ufa I write this letter of recommendation for Aramexx Construction. I have had the.pleasure of working with Aramexx Construction on two (2) projects for District 8 (Riverside and San . Bernardino Counties). One in Victorville on I-15 and another on I-10 In Ontario. The contract work included Rock Blanket, Minor Concrete installations and Irrigation Repairs. On both projects Aramexx Construction performed high quality work and were timely required paperwork. They were eager to partner with the department and sincerely endeavor to provide the best . quality work. I have no doubt that Aramexx Construction will perform admirably on all projects on which they are involved. I welcome the opportunity to work with Aramexx Construction on future projects. Sincerely, David Benson Resident Engineer ProWde asV'4'sosw"70 kregmWand4kfeaf hmppa#adon sysfem to mhmme Cartes u amyand 1hWUftry" 23A-23 LANDSCAPE ARCHITECTS February 6, 2017 Subject Aramexx Construction To Whom It May Concern: In my capacity as Consult Project Manager & Landscape Architect for The Morongo Band of Mission Indians, I worked closely with Aramexx Construction on the Morongo Trail / Interstate 10 Roundabout Landscape Improvement Project in early 2016. Aramexx Construction was the successful low bidder and performed construction of the project. Aramexx Construction's work and dedication to the project were a major part of its success and timely completion. Aramexx provided great knowledge of value engineering and constructability methods for this improvement project. With the help and dedication of Aramexx Construction Project Manager Lupe Lainez and Construction Superintendent, Bruce Gallardo, the tribe and Caltrans received a high quality project in a safe and timely manner. Aramexx is a great candidate to perform landscape construction projects for any local agency: Feel free to contact me at (619) 300-2782 if you have any questions. Sincerely, Brett J. Allen Construction Manager/ Project Manager/ Landscape Architect VDLA—Van Dyke Landscape Architects Landscape Architecture 462 Stevens Avenue. Suite 107, Solana Beach, CA 92075-2042 Planning Tel: 619.294.8484 • Fax 619.574.0626 • E-mail: admin@vdla.us • Web: www.vdla.us Water Management Principals: Mitch Phillippe: ASLA, CA LLA #3781 - Yale Hooper, CID, CLIA Graphic Communications Associates: Ling Chan, ASIA, CA LLA #5435, LEED AP 23A-24 ca 23A-25 A s"s s o BaFao E6 ES R R R o eot � bn sg U g b u e s 8 e O p 23A-25 A 23A-26 a E o cO Im y j; �O c z 3wmv�tEm cme cEMam d anda�cca a dG VI. FE 'E gy ye z �� m �E"�sg�e m8 m l E P'u m c U m Mc 00 d m 4 g V m 2n90 °ELL2 an Wa�c � p � OFC� °CSO �' N 4 mQ o U«C4 ml YI -.0 � � mCY6AN iL ... .. a 3$aam Eme Euc=3i E'acc 5 do `�Kdmva a S ix"omE sm E m n S=$ 'y�E c� y �i° Y 2 0 — C C E�S 6s8 �$b G�8 4s� 23A-26 m m r -> m o m c v c =E' ¢tE 83Ut5 cm_ om 3`m8'`� Hmm m B a ccm mW N c �6c pm .- mn �cc om 2mE`m m mem 05 a�� o O�� ,OM f9 p p TJ" r V ym .`0 8E -a .2 ;iple ��o$ Nm m3 U� L°yom Ncmmrn mN ''c $ic m }N $ C 0 H y LL O c E o y c CQ V N m m c c m e 9 m m Vi m, E DR �? U V Um mmo TiN nNopm U aomi2ENtEn ma_a E° c Cl o mm`3� �amm 0-1 D0 � uiiH�Sm 5 EmmmQ mgo T_eE-= oa'iY._ c c o '-^`mom p>> K� m r _�3W aan8E`$mN$p`.m _=No in Ym N Y m « r p (] u L NNN DNp 'O C O .C. c s m E� c YS o cc n at H- C 9 .0 LL. iL DA O NN m O . O _j 3 d ? E L m x. v c G a$ .7 C 6 'Ley - °1 LL N � . 23A-27 I o Mi Ea 98 23A-28 0 v Y - Q T 4- u m 23A-29 2$ i Zm $ E !! ! ) � } } \ } & } { ! 2 !! r : Va \ ci k \) ! t } !/ ]i ! ` c �`* { §f 2 �! 7|ID [ ) 23A-30 � 1 CONTRACTORS LICENSE .�I ! Contractor's License Detail for License # 960305 DISCLAIMER: A license status check provides Information taken from the CSLB license database. Before relying on this Information, you should be aware of the following limitations. Data current as of 9/27/2018 9:43:08 AM Business Information ARAMFJOC GROUP INC dba ARAMEXX CONSTRUCTION 532W FIRST ST UNIT 202 CLAREMONT, CA 91711 Business Phone Number(909) 746-8066 Entity Corporation Issue Date 04/25/2011 Expire Date 04/30/2019 License Status This license Is current and active. MI Information below should be reviewed. -- Classifications A - GENERAL ENGINEERING CONTRACTOR B - GENERAL BUILDING CONTRACTOR C27 - LANDSCAPING Banding Information Contractor's Bond sense Tisa a uomrara Number: 251043C Amount: $15,000 ive Date: 01/0112016 Bond of Qualifying Individual ildual SALIM SALVADOR SAMOUR certified that helShe owns to percent or more o Interest of this company; therefore, the Bond of Qualifying Ind'nriduel Is not required. Date: Insurance to Daft: 12/71/2017 Date: 121=2018 23A-31 OF THE 23A-32 CITY OF SANTA ANA EXHIBIT 3 CONSTRUCTION CONTRACT PROJECT 19-2703 JEROME CENTER LANDSCAPE DRAINAGE PROJECT This CONSTRUCTION CONTRACT is made and entered into this 5'h day of February, 2019 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "CITY"), and Aramexx Group Inc. dba Aramexx Construction (hereinafter "CONTRACTOR"). WITNESSETH: The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: CONTRACTOR agrees to perform all the work and furnish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Jerome Center Landscape Drainage Project (hereinafter referred to as the "WORK OF IMPROVEMENT") identified in and in accordance with the Contract Documents prepared by the City's Public Works Agency and approved by the City Council. 2. The complete Construction Contract consists of the "Contract Documents" as defined by the Standard Specifications for Public Works Construction and which include the following: • Notice Inviting Bids • Information to Bidders • Bid Proposal • Bid Bond • Contract Form • Contract Bonds • General Provisions • Special Provisions • Technical Provisions and Project Plans • Community Workforce Agreement • Appendices In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF 11APROVEMENT the sum total amount not to exceed Eighty -Three Thousand One Hundred Fifty -Five Dollars and No Cents ($83,155.00), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable. mv. 09/01/2017 23A-33 Pagel of3 4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit "A") including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed. 5. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF RVIPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations for this work in accordance with applicable State and Federal law. 6. If applicable, the CONTRACTOR shall adhere to the CITY'S Community Workforce Agreement (CWA), a pre -hire collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City's website at: hUp://www.santa-ana.org/pwa/documents/CWA.pdf CONTRACTOR shall, after award of this Contract, fumish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price. 9. CONTRACTOR shall, after award of this Contract, furnish Certificates of Liability Insurance and Worker's Compensation Insurance as outlined in the General Provisions, to be approved by the CITY. // 23A-34 Page 2 of 3 IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: NORMA MITRE-RAMIREZ Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney R �41;19901,lk Assistant City Attorney FOR APPROVAL: FUAD SWEISS, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA STEVEN A. MENDOZA Acting City Manager CONTRACTOR: Aramexx Group Inc. dba Aramexx Construction NAME: TITLE: 23A-35 Page 3 of 3 23A-36 COST ANALYSIS CONSTRUCTION OF THE PROJECT NO. 19-2703: JEROME CENTER LANDSCAPE DRAINAGE PROJECT Construction Contract $ 83,155.00 Contract Administration $ 3,732.00 Inspection and Testing $ 4,800.00. Contingencies $ 8,313.00 TOTAL ESTIMATED CONSTRUCTION COSTS $ 100,000.00 =:1:11 -iii! 23A-37 23A-38 REQUEST FOR COUNCIL ACTION 103111"*l1lL`[631451=1 =111 III I � "OT111 114 FEBRUARY 5, 2019 TITLE: AWARD CONTRACT TO EBS GENERAL ENGINEERING, INC., FOR OMNIBUS CONCRETE REPAIR (PROJECT NO. 18-6864) (STRATEGIC PLAN NOS. 6, 1B & 1G) -:071- N UL- L/_ CITY 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 1. Award a contract to EBS General Engineering, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $141,240, for the term beginning upon execution of the contract and ending upon project completion, for construction of the Omnibus Concrete Repair Project, and authorize the City Manager and the Clerk of the Council to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $165,490, which includes the contract bid amount, administration, inspection and testing, and an authorized contingency of $14,125. DISCUSSION The Omnibus Concrete Repair Project will provide for replacement of damaged and deteriorated concrete sidewalk, curbs, gutters, cross gutters, wheelchair ramps, driveways approaches, and other concrete pavement at various locations throughout the city (Exhibit 1 -Map). The work will be performed on an as -needed basis. To provide an opportunity for local vendors to submit bids, the City is now utilizing the PlanetBids web -based system. Through this system, 26 qualified local vendors were notified of the opportunity to bid on this project. A Notice Inviting Bids was advertised on October 15 and 17, 2018. The following is a summary of the bid invitations made and the bids received: 2313-1 Award Contract to EBS General Engineering, Inc. for Omnibus Concrete Repair Project February 5, 2019 Page 2 Contractor Participation Data Santa Ana contractors receiving notices 26 Contractors requesting bidding documents 24 Bids received 9 Bids received from Santa Ana contractors 1 Bids were opened on November 6, 2018, and the table below is a summary of the results. Bid Results Summary RANK BIDDER'S NAME LOCATION BASE BID 1 EBS General Engineering, Inc. Corona $141,240 2 SDC Engineering, Inc. Long Beach $154,233 3 Newbuilld Construction and Restoration, Inc. Orange $155,090 4 Golden State Constructors Placentia $159,560 5 Icpaving & Sealing Inc. San Marcos $165,930 6 Leonida Builders, Inc. Santa Clarita $167,990 7 Hardy & Harper, Inc. Santa Ana $170,230 8 Gentry General Engineering Inc. Rancho Cucamonga $205,020 9 Ruiz Concrete and Paving Inc. Long Beach $250,650 A total of nine bids were received and all bids were deemed responsive. EBS General Engineering, Inc., submitted the lowest responsive bid in the amount of $141,240 (Exhibit 2). Based on the bid analysis and a contractor's reference check, staff recommends awarding the construction contract to EBS General Engineering, Inc., in the amount of $141,240 (Exhibit 3). 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 B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe, and aesthetically pleasing for all users), and Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment Plan (e.g., neighborhood streets, traffic improvements, etc.). 23B-2 Award Contract to EBS General Engineering, Inc. for Omnibus Concrete Repair Project February 5, 2019 Page 3 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER -2018-138 was filed for the project. FISCAL IMPACT As indicated in the Cost Analysis (Exhibit 4), the estimated total construction delivery cost of the project is $165,490, which includes construction contract, administration, inspection, testing, surveying, and an authorized contingency of $14,125. Funding in the amount of $25,190 is available in the Select Street Construction Gas Tax Fund (Account No.05917663-66220) and $140,300 is available in the Measure M2 Local Fairshare Fund (Account No. 03217662-66220) for expenditure in Fiscal Year 2018-19. Fuad S. S Executive Public We 9 PE, PLS Agency FSS/EWG/TC/MO Exhibits: 1. Location Map 2. Bid 3. Construction Contract 4. Cost Analysis APPROVED AS TO FUNDS AND ACCOUNTS: lla4v�- ZF-V� Kat ryn Downs, CPA (# 3y Executive Director �1 Finance and Management Services Agency 23B-3 23B-4 CITY OF SANTA ANA PROPOSAL Exhibit 2 PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT INSTRUCTIONS TO BIDDERS FOR PROPOSAL SUBMISSION INTENT OF PROPOSAL The purpose of this Proposal is to identify a Prime Contractor to enter into a contract with the City of Santa Ana, referred to as AGENCY, to complete the Work shown on the Contract Documents. The intent of this project is to make citywide concrete repairs. The repairs have already been identified and listed in Appendix G. PROPOSAL The Proposal shall be submitted in accordance with the Notice Inviting Bids and shall be accompanied by the following documents: 1. Bid Proposal 2. Bidder's Statement 3. Contractor's Licensing and Registration Statement 4. Prevailing Wage Compliance and Monitoring Statement S. Ownership Affidavit 6. Bid Bond 7. List of Sub -Contractors 8. References 9. Additional References 10. Non-CollusionAffidavit 11. Non -Discrimination Certificate 12. Statement Regarding Apprenticeship Requirements 13. Statement Regarding `Anti -Kickback" Requirements 14. Public Contract Code Section 10162 Questionnaire The Proposal may be considered non-responsive if any of these documents or forms is not included. The bid package shall be submitted as instructed in the Notice Inviting Bids. It is the BIDDER'S responsibility to ensure submittal of their Proposal on PlanetBids. CALIFORNIA STATE LABOR CODE As outlined in the Notice Inviting Bids, this project is subject to compliance monitoring and enforcement by the State of California Department of Industrial Relations, per Section 1771.4.a.1. BIDDERS are required to inform themselves fully of the conditions relating to construction and labor under which the work will be performed. Any contract entered into pursuant to this notice will incorporate the provisions of the California State Labor Code. Per Section 171.4.a.2, Contractors are required to post job site notices, as prescribed by regulation. EXAMINATION OF CONTRACT DOCUMENTS AND PROJECT SITE BIDDERS shall satisfy themselves by personal examination of the work site, Contract Documents including the Plans and Specifications (and by any other means as they believe necessary) as to the actual physical conditions, requirements, and difficulties under which work must be performed. CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT DISCREPANCIES AND MISUNDERSTANDINGS No BIDDER shall at any time after submission of a proposal make any claim or assertion that there was any misunderstanding or lack of information regarding the nature or amount of work necessary for the satisfactory completion of the job. Any errors, omissions, or discrepancies found in the Contract Documents including the Plans and Specifications shall be called to the attention of the AGENCY as a Request for Clarification and addressed prior to the submission of bid proposals. REQUESTS FOR INTERPRETATION OF CONTRACT DOCUMENTS Requests for interpretation must be submitted online through PlanetBids and received at least five (5) days prior to the bid opening date. Answers to questions will be posted online for all interested bidders to review. Bidders who have downloaded bid documents by the time that the questions are responded to will receive an automated email notifying them of additional information and/or addendums that have been posted to the website. The person submitting the request will be responsible for its prompt delivery. Any interpretation or correction of the documents will be made only by an Addendum. ADDENDA All addenda issued during open bid advertisement periods will be posted on PlanetBids and shall become part of the Contract Documents. Before submitting a Proposal, each BIDDER is responsible to be aware of addenda issued via PlanetBids. WITHDRAWAL OF PROPOSAL A Proposal may be withdrawn by submitting a written request signed by the BIDDER. Such requests must be delivered to the AGENCY'S Public Works Agency Executive Director prior to the bid -opening hour stipulated in the Notice Inviting Bids. Proposals may not be withdrawn after said hour without forfeiture of the proposal guarantee which shall remain in effect for 60 days after opening bids. The withdrawal of the bid proposal will not prejudice the right of the BIDDER to submit a new bid proposal, providing there is time to do so, or to submit a new bid proposal if the is a rebidding of the same project. BID PROTEST Any bid protest must be submitted in writing to Executive Director of Public Works Agency, City of Santa Ana, 20 Civic Center Plaza M-21, Santa Ana, CA 92701 before 5:00 p.m. of the 5th business day following bid opening. Bid protests sent via mail or overnight carrier must be received by the AGENCY by 5:00 pm of the 5th business day following bid opening in order to be deemed timely. Hand delivered protests must be provided to the receptionist in the City Hall Annex/Public Works Counter on the first floor of the City Hall Annex. a. The initial protest document shall contain a complete statement of the basis for the protest. b. The protest shall refer to the specific portion of the Contract Document which forms the basis for the protest. c. The protest shall include the name, address, and telephone number of the person representing the protesting party. CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT d. The party filing the protest shall concurrently transmit a copy of the initial protest document and any attached documentation to all other parties with a direct financial interest, which may be adversely affected by the outcome of the protest. Such parties shall include all other BIDDERS or proposers who appear to have a reasonable prospect of receiving an award depending upon the outcome of the protest. If staff is aware a protest has been filed prior to the opening of bids, the AGENCY shall announce at bid opening who such parties shall be. e. Should a written bid protest be filed in a timely fashion, a protest hearing shall be held before the Executive Director of Public Works or designee by the 10th business day from receipt of protest. All interested parties may appear and offer testimony at this bid protest hearing. Formal rules of evidence shall not apply at this hearing, nor shall testimony under oath be required. The burden of proof shall be on the party submitting the protest to demonstrate that the staff's determination of proposed low BIDDER is arbitrary and capricious, or unsupported by substantial evidence in the record. f. All BIDDERS are advised that if you challenge the AGENCY's award of contract in court, you may be limited to raising only those issues you or someone else raised at the public hearing described above, or in written correspondence delivered to the Executive Director of Public Works at or prior to the public hearing. g. The Executive Director of Public Works or designee will issue a written decision to the City Council on the protest, which shall also be promptly provided to all interested parties. If the Executive Director of Public Works or designee determines that a protest is frivolous, the party originating the protest may be determined to be irresponsible and that party may be determined to be ineligible for future contract awards. h. The procedure and time limits set forth in this paragraph are mandatory and are the BIDDER's sole and exclusive remedy in the event of Bid protest, and failure to comply with these procedures shall constitute a waiver of any right to further pursue the bid protest, including filing a Government Code Claim or legal proceedings. BID PROPOSAL The definitions for Bid Items that are identified in the Bid Proposal form are provided in Appendix A. The AGENCY will check each bid item unit price and amount for all the bids submitted. In case of a discrepancy between the correct product of the quantity multiplied by the unit price and the subtotal amount entered by the BIDDER, the correct unit price shall prevail and the product will be correctly accordingly. In case of a discrepancy between the correct sum of the individual subtotal amounts and the total bid amount entered by the BIDDER, the correct sum shall prevail. If a unit price is not legible or is missing, the amount for that contract bid item shall be divided by the quantity to arrive at the unit price. The bid total shall be corrected and the results shall be considered as representing the bidder's intention. Proposals in which the prices are obviously unbalanced may be rejected. If a Bid contains discrepancies that make it difficult or impossible to determine the bidder's intention, then such Bid may be considered unresponsive, in which case the bid may be rejected. CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The time for completion of this project, and the liquidated damages amount when/if the time for completion is exceeded, is included in the Bid Proposal Section of these Contract Documents. BIDDERS STATEMENT In accordance with Section 7028.15(e) of the Business and Professions Code, a licensed contractor shall not submit a bid to the public agency unless his or her contractor's license number appears clearly on the bid, the license expiration date is stated, and the bid contains a statement that representations made therein are made under penalty of perjury. Any bid not containing this information or a bid containing information, which is subsequently false, shall be considered non-responsive and shall be rejected by the public agency. Format for these statements are included in the Bid Proposal section of these Contract Documents. In accordance with the Section 3300 of the California Public Contract Code, the Agency has determined that the BIDDER shall possess a license in the classification specified in the Notice Inviting Bids. OWNERSHIP AFFIDAVIT An Ownership Affidavit is required to be completed and submitted with the Bid Proposal. A form is provided in the Bid Proposal section of these Contract Documents. PROPOSAL GUARANTY Each bid shall be accompanied by a Proposal Guaranty as instructed in the Notice Inviting Bids AND PlanetBids. A sample Bid Bond is included in the Bid Proposal Section of these Contract Documents. LIST OF SUB -CONTRACTORS The State of California Public Contract Code requires listing of all subcontractors who intend to perform work which is %2 % of the bid or $10,000 (streets, highways and bridge projects), whichever is greater, or %2 % of the bid (buildings, parks, or other projects). A form for this information is provided in the Bid Proposal section of these Contract Documents. REFERENCES/ADDITIONAL REFERENCES BIDDER shall include a list of three public agencies for which BIDDER has performed similar work within past three (3) years, and three public agencies for which BIDDER and/or his Subcontractor has performed similar work within the past five (5) years. A form for this information is provided in the Bid Proposal section of these Contract Documents. NON -COLLUSION AFFIDAVIT In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106, the AGENCY shall require all bidders to execute and submit a non -collusion affidavit with the Bid Proposal. A copy of the Non -Collusion Affidavit is provided in the Bid Proposal section of these Contract Documents. NON-DISCRIMINATION CERTIFICATE Attention is directed to Section 1735 of the California Labor Code, as added by Chapter 643, Statutes of 1939, which reads as follows: 2 -se -110 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT "No discrimination shall be made in the employment of persons upon public works because of the race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, or sex of such persons except as provided in Section 1420, and every contractor for Public Works violating this Section is subject to all penalties imposed for a violation of the Chapter." A copy of the Certification of Nondiscrimination by Contractors is provided in the Bid Proposal section of these Contract Documents. STATEMENT REGARDING APPRENTICESHIP REQUIREMENTS Bidders shall be familiar with the requirements of Section 1777.5 of the California State Labor Code regarding employment of apprentices and shall submit a Statement Regarding Apprenticeship Requirements with the Bid Proposal. A copy of the Statement is provided in the Bid Proposal section of these Contract Documents. STATEMENT REGARDING "ANTI -KICK -BACK" REQUIREMENTS Bidders shall be familiar with, and shall agree to comply with, the Copeland "Anti -Kickback" Act (18 USC 74) as supplemented in the Department of Labor regulations (29 CFR, Part 3), and shall submit a Statement Regarding "Anti -Kickback" Requirements with the Bid Proposal. A copy of the Statement is provided in the Bid Proposal section of these Contract Documents. CONSTRUCTION CONTRACT AGREEMENT. BONDS & INSURANCE The Construction Contract Agreement, Sample Bonds and Insurance Requirements are all included as appendices in the project Contract Documents. Following authorization by City Council to award a Construction Contract, written notification will be given by the AGENCY to the successful BIDDER who will, within ten (10) business days, submit to the Agency the completed and signed Construction Contract Agreement, a Performance Bond, a Payment Bond, and evidence of Worker's Compensation Insurance. Failure to execute a contract and submission of acceptable bonds and insurance as provided herein within the time limit above may be just cause for the annulment of contract award and the forfeiture of the bid proposal guarantee. No contract shall be binding upon the AGENCY until it has been completely executed by the Contractor, approved by the City Attorney, and executed by the AGENCY. After the AGENCY executes the Contract and approves the bonds and certificates of liability insurance, the AGENCY will send the successful BIDDER a copy of the fully executed Construction Contract Agreement. RETURN OF PROPOSAL GUARANTIES Within ten (10) days after the award of the contract, the AGENCY will return the proposal guaranties, other than Bid Bonds, except any guaranties that have been forfeited. 23 EM11 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT BID PROPOSAL TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: EBS General Engineering, Inc. REQUIREMENT: The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule: Item Description Qty Unit Unit Price Amount 1 Remove and Construct 4" PCC 3,300 SF $ $ Sidewalk 10 33,000 2 PCC Grinding 60 LF $ 50 $ 3,000 3 Root Shave 60 EA $ 500 $ 30,000 4 Remove and Construct Curb and 290 LF $ 65 $ 18,850 Gutter (A-2-6) 5 Remove and Construct PCC Curb 20 LF $ $ And Gutter (A-2-8) 65 1,300 6 Remove and Construct PCC Curb 50 LF $ $ (B-1) 65 3,250 7 Remove and Construct PCC Curb 3,300 SF $ $ Ramp 12 39,600 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT Item Description Qty Unit Unit Price Amount 8 Remove and Construct 6" PCC 1,020 SF $ 12 $ 12,240 Driveway TOTAL BASE BID $ 141,240.00 The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add -alternate bid items (if any). The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. f This bid item is considered a Specialty Item per Section 2-3.2 of the Standard Specifications. TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within number (100) working days after the commencement date stated in the Notice to Proceed. The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $200 per calendar day. Name of Firm EBS General Engineering, Inc. Signature of BIDDER Title (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) 23SE13 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT BIDDER'S STATEMENT BIDDER understands and agrees that this Bid Proposal, Contract Documents and subsequent Construction Contract Agreement shall constitute the entire agreement between BIDDER and the AGENCY only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Public Works Agency Executive Director or his/her duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to BIDDER or deposited with the United States Postal Service properly addressed to the BIDDER with the correct postage affixed thereto. BIDDER further agrees that upon delivery (as defined above) of the accepted agreement he/she will fumish AGENCY all required bonds and certificate of liability insurance within ten (10) business days or the funds, check, draft, or BIDDERS bond substituted in lieu thereof accompanying this proposal shall become the property of the AGENCY and shall be considered as payment of damages due to the delay and other causes suffered by AGENCY because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered is difficult to ascertain; otherwise said funds, check, drafts, or BIDDER'S bond substituted in lieu thereof shall be returned to the undersigned. BIDDER understands that a bid is required for the entire work, the estimated quantities set forth in the bid schedule are solely for the purpose of comparing bids, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. The BIDDER also certifies that the bid is a balanced bid. In accordance with Section 7028.15 of the California Business and Professions Code, the undersigned certifies under penalty of perjury that the foregoing is true and correct. Name of Firm EBS General Engineering, Inc. Signature of BIDDER G Title Joseph A. Nanci, President (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) 23844 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT CONTRACTOR'S LICENSING AND REGISTRATION STATEMENT The undersigned contractor, or corporate officer, declares under penalty of perjury that he/she and all his/her subcontractors are registered with the State of California Department of Industrial Relations (DIR), and that the following is true and correct. Contractor's Name: EBS General Engineering, Inc. Business Address: 1320 E. Sixth St., Ste 100 Corona CA 92879 Business E -Mail Address: bids aoebsg neral rnm Telephone: 951-279-6869 State Contractor's License No. and Class: 720016 A License Expiration Date: 3/31/20 State Dept. of Industrial Relations (DIR) Registration No.: State Dept. of Industrial Relations (DIR) Registration Expiration Date: Signed: Title: President 1000005295 6/30/19 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT PREVAILING WAGE COMPLIANCE AND MONITORING STATEMENT Contractor is aware of the requirements of California Labor Code Section 1720, et seq., as well as California Code of Regulations, Title 8, Section 16,000, 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. Since the services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. 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. The undersigned certifies that the foregoing is true and correct. Name of Firm EBS General Engineering, Inc. Signature of BIDDER L �� Title President (if an individual, so state) CITY OF SANTA ANA PROPOSAL PROJECT NOS,: 16-6864 AND 18-6864 OMNMUS CONCRETE REPAIR PROJECT AJ► ' 11_' :__ 19 s STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF SANTA ANA ) Joseph A. Nanci being duly swum, deposes and says: ❑ INDIVIDUAL That he/she is the party moking the foregoing proposal: ❑ PARTNERSHIP That he/she is a member of the co -partnership firm designated as: and who has been and Is duly vested with the authority to make and execute instruments for the co -partnership by: who constitute the other members of the co -partnership, .CORPORATION That he is of. EBS General Engineering, Inc. a corporation which is making the foregoing proposal: ❑ JOINT VENTURE That he is oil. one of the parties making the foregoing proposal as a joint venture, and the he/she has been and Is duly vested with the authority to execute instruments for an on behalf of the parties making said bid who are: that such a bid is genuine and not collusive or sham, and has not in any manner sought by collusion to secure any advantage gainstthe City of Santa Ana or any person interested in the proposed contract, for himself or g y other person. of to before me this A day of \'W- 20 � D Administering Oath (Notary Public) P-11 of P-21 23B-17 f YK, FAIRWEATHER Note; Public - Callfornla qy =m Riverside County a Commission # 2149313 M Comm Ex iresA x21,2020+ CITY OR SANTA ANA BOND #3—B PROPOSAL PREMIUM: NIL PROJECT NOS.: 16-6861 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT BID BOND KNOW ALL PRESL'•Nf that. _EBS GENERAL ENGINEERING. INC. , as 131DDER, and SURETEC INSURANCE COMPANY ,as SU ItET-Y, are held and firmly bound unto the CITY OF SANTA ANA, as AGENCY, in the penal sum of_ TEN PERCENT OF AMOUNT BID Dollars ($ 109 ), which is ten percent (10%) of the total amount bid by BIDDER to AGENCY for the above -stated project, for the payment of which sum, BIDDER and SURETY agree to be bound, jointly and severally, firmly by these presents. THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas BIDDER is about to submit a bid to AGENCY for the above -stated project, if said bid is rejected, or if said bid is accepted and a contract is awarded and entered into by BIDDER in the manner and time specified, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY. IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seal this 31ST day of OCTOBER -12018. A BIDDER* 1320 E. -SIXTH ST., #100 Joseph Fl.,Nanci, President CORONA, CA 92879 (951) 279-6869 SURETY* 3131 CAMINO DEL RIO N., #1450 CHARLES L. FLIkE, ATTORNEY-IN7 T__ SAN DIEGO, CA 92108 - - 19) 400-4100 )scribed and sworn to before me ,20—. Signature: this Notary Public in and for the County of State of _ .'""..... * Provide BIDDER/ SURETY name, address, and telephone number and the �Tne;'titie; address, and telephone number of authorized representative. _ AUTHORIZED REPRESENTATIVE: CULBERTSON INSURANCE SERVICES, INC. ! "' 5500 E. SANTA ANA CANYON RD. 11201 '. c ANAHEIM, CA 92807 J < (714) 921-0530 ...• P-12 of P-21 23B-18 JURAT FORM 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 COUNTY OF 'ORANGE ) Subscribed and swom to (or afiiimed) before me on this 31ST day of OCTOBER 720 18 by CHARLES L. FLARE proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. LEXIS SHE 03287 COMM.S2203287 ; i i7eCL+J6�tiI'� (NOTARY SEAL) NOTARYFeeuc*UUFORMA NO YPUBLiC SIGNATURE ORANGE COUNTY Comm. Exp, JULY27, 21)21 OPTIONAL INFORMATION THIS OPTIONAL INFORMATION SECTION IS NOTREQUIRED BY LAW BUT MAY BE BENEFICIAL TO PERSONS RELYING ON THIS NOTARIZED DOCUMENT. TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT When executing aiurat, a notary shall administer an oath of affirmation to the affiant and shall determine, from satisfactory evidence, that the atliant is the person executing the document. The affiant shall sign the document in the presence of the notary. To order supplies, please contact McGlone Insurmce Services, Inc. at (916) 484 0804. 23B-19 CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT 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 o that document. STATE OF CALIFORNIA COUNTYOF Riverside On November2, 2018 before me, K. Fairweather Date Insert Name and Tkle of the officer Public, personally appeared Joseph Nanci Name(s) of Signer(s) 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(les), 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. A K. FAIRWEATHER 7 Notary Public - California WITNESS my hand an official seal. Z -m Riverside County Z Zy Commission #2148313 f l — My Comm. Expires Apr 21, 2020 t Signat re: --•••___.....—_.....—............. —. OPTIONAL --------------------- •----••--- — — — — Though this section Is optional, completing this Information can deter alteration of the document or fraudulent attachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signers Name: ❑ Corporate Officer — Titles) ❑ Partner- ❑ Limited ❑ General ❑ Individual ❑Attorney In Fact ❑ Trustee ❑Guardian or Conservator ❑ Other: Signer is Representing: Signers Name: ❑ Corporate Officer—Title(s) ❑ Partner - ❑ Limited ❑ General ❑ Individual ❑Attorney in Fact ❑ Trustee ❑Guardian or Conservator ❑ Other: Signer is Representing: 23B-20 FOAM: 510123 SureTec Insurance Company LEYRTED POWER OF ATTORNEY Snow All Men by These Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and existing trader the laws of the State of Texas, and having its principal office in Houston, Harris County, Texas, does by these presents make, constitute and appoint Charles L. Flake, David L. Culbertson, Spencer Flake, Heather Willis , its true and lawful Attorney-in-fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recog uizances, undertakings or other instruments or contracts of suretyship to include waivers to the conditions of contracts and consents of surety for, providing the bond penalty does not exceed Ten Million and 001100 Dollars ($10,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bond were signed by the President, sealed with the corporate seal of the Company and duly attested by its Secretary, hereby ratifying and confirming all that the said Attorney -in -Fact may do in the premises. Said appointment shall continue in force until 8/1=02o and is made under and.by authority of the following resolutions of the Board of Directors of the SlreTec Insurance Company: Be it Resolver( that the President, any Vice -President, any Assistant Vice -President, any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Attomey(s)-in-Fact to represent and act for and on behalf of the Company subject to the following provisions: Attorney -in -Fact may be given full power and authority for and in the name of and of behalf of the Company, to execute, acknowledge and deliver, any and all bonds, recoguizances, contracts, agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attomey4n-Fad shall be binding upon the Company as if signed by the President and sealed mrd effected by the Corporate Secretary. Be it Resolved that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile, and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a meeting held on 20'* of April, 1999.) In Witness Whereof, SURETEC INSURANCE COMPANY has caused these presents to be signed by its President, and its corporate seal to be hereto affixed this 8th day of August , A.D. 2017 . uw;nr; sllR}uTEc 11�T, . A1QY mCi X 9 By: w w John Xuo ., resi nt State of Texas ss: 7� g County of Harris On this 8th day of August , A.D. 2017 before me personally came John Knox Jr., to me known, who, being by me duly sworn, did depose and say, that he resides in Houston, Texas, that he is President of SURETEC INSURANCE CONTANY, the company described in and which executed the above instrument; that he lmows the seal of said Company; that the seal • affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto by like order. =="e ENIA CHAVEZ ublic, State of Texas Expires 09.10.2020ry ID 129117fi69 X a avez, Notary Puhil y commission expires September 10, 2020 I, M. Brent Beaty, Assistant Secretary of SURETEC INSURANCE COMPANY, do hereby certify thatthe above and foregoing is a true and coned copy of a Power of Attorney, executed by said Company, which is still in full force and effect; end furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney arc in full force and effect Given under my hand and the seal of said Company at Houston, Texas this 31ST da of OC 2018 A.D. r nt B ,Assistant Se efary Any Instrument Issued In excess of the penally stated above Is totally vold and without any validity. For vertfiration of the authority of this power you may call (713) 812-0800 any business day between 8:00 am and 8:00 pm CST. 23B-21 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT LIST OF SUB -CONTRACTORS Section 4100 et. seq. of the Public Contract Code requires listing of all subcontractors with the bid for all subcontract work exceeding the following amount: o Streets, highways including bridge projects: %z% of the bid or $10,000, whichever is greater o Buildings, parks, or other projects: '/,% of the bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of Industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the firms listed below: Name No License #/Exp. DIR Reg. #/Exp. Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # Location Phone Type Of Work Amount $ Signature of Bidder Name License #/Exp. DIR Reg. #/Exp. Location Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # _ Location _ Phone Type Of Work Amount $ Name License #/Exp. DIR Reg. #/Exp. License # _ Location _ Phone Type Of Work Amount $ L31§Ek CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER has performed similar work within the past three years. 01 3. See attached reference list Name and Address of Owner. Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount Type of Work Date Completed Date Completed Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. Culbertson Insurance Services: 5500 E. Santa Ana Canyon Rd., Ste 201 Anaheim CA 92807 Invensure Insurance Brokers: 17991 Cowan Irvine CA 92614 (949) 756-4100 3 YEAR REFERENCES — PUBLIC WORKS :t Name 2017 Arterial and Minor Streets Maintenance Project Address Owner Various Locations City of Riverside Principal Contact Phone Steve Howard, Construction Project Manager (951) 826-5708 Price of Contract Type of Work Dates $4,594,000 Streets Maintenance 9/2017 —on going Z Project Concrete Street Rehabilitation, FY 2015-16 Project Address Owner Various Locations City of Orange Contact Phone Matthew Lorenzen, Project Manager (714) 744-5566 Price of Contract Type of Work Dates $574,850 Minor Concrete, Street Improvements 7/2016 to 10/2016 3. Project Washington Square Residential Street Improvements Proiect Address Owner Grand Ave. from First St. to Fourth St. City of Santa Ana Contact Phone Tyrone Chesanek, Principal Civil Engineer (714) 647-5074 Price of Contract Type of Work Dates $984,925 Minor Concrete, Street Improvements 4/2016 to 10/2016 4. Project ADA Access Improvements Del Cerro/Burma Rd Entrance to PV Nature Preserve Project Address Owner Del Cerro/Burma Rd. City of Rancho Palos Verdes Contact Phone James Flannigan, Asst Eng. (310) 544-5295 Price of Contract Type of Work Dates $99,470 Exposed Agg. Sidewalk, Ramps, Drive approach 1/2017 to 3/2017 23B-24 3 YEAR REFERENCES — PUBLIC WORKS !ct /16 Curb Access Ramp Installation Project Address Owner Various Locations City of Huntington Beach Contact Phone Jim Escutia, Public Works 714) 536-5525 Price of Contract Type of Work Dates $327,200 Curb Ramps, Domes 5/2016 to 6/2016 6. Project Rancho Santa Fe Road ADA Curb Ramp Reconstruction Project Address Owner Rancho Santa Fe Rd City of San Marcos Contact Phone Duane Neyes, Construction Mgr. (760) 744-1050 Price of Contract Type of Work Dates $290,100 Ramps, Sidewalk, Gutter, Domes 6/2016 to 7/2016 23B-25 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT ADDITIONAL REFERENCES The following are the names, addresses, and telephone numbers for THREE public agencies for which the BIDDER or Subcontractor has performed similar work in the past five years. 1 • See attached reference list Name and Address of Owner. 3. Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount Name and Address of owner. Type of Work Name and Telephone Number of person familiar with project. Contract Amount of Work Date Completed Date Completed Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds. See info on P-14 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non -collusion Affidavit is part of the Proposal. BIDDERS are cautioned that making a false certificatio may subject the certifier to criminal prosecution. Signed State of Ca ' orpta County of 6 Subscribed and sworn to (or affirmed) before me on thisday of -� -Ad to me on the basis o satisfactory Notary P-16 of P-21 23B-27 Joseph A. Nanci, President k '20A by evidence to be the K. FAIRWEATHEH Notary Public • California Riverside County Commission # 2149313 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT NON-DISCRIMINATION CERTIFICATE The undersigned contractor or corporate officer, during the performance of this contract, certifies as follows: 1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply, with all provisions of Executive Order 1 J246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. 238E28 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT 7. The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: L Title: President Firm: EBS General Engineering, Inc. Date: CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT STATEMENT REGARDING APPRENTICESHIP REQUIREMENTS The undersigned BIDDER is familiar with the requirements of Section 1777.5 of the State Labor Code regarding employment of apprentices, and understands that contractors on contracts exceeding $30,000 or 20 working days shall: 1. Apply to the joint apprenticeship committee administering the apprenticeship standards of the craft or trade in the area of the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. 2. Employ the number of apprentices or the ratio of apprentices to joumeymen stipulated in the apprenticeship standards. 3. Contribute to the find or funds in each craft or trade in which he/she employs journeymen or apprentices on the public work, in the same amount or upon the same basis and in the same manner as the other contractors, except contractors not signatory to the trust agreement shall pay a like amount to the California Apprenticeship Council. Signed: Title: President Date: 11/1/18 I+ 1 CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT STATEMENT REGARDING "ANTI -KICKBACK" REQUIREMENTS The undersigned is submitting this proposal for performing by contract the work required by these bid documents, agrees to comply with the Copeland "Anti -Kickback" Act (18 USC 74) as supplemented in the Department of Labor regulations (29 CFR, Part 3). This act provides that each contractor or subcontractor shall be prohibited from inducing, by any means, any person employed in the construction or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Signed: L ✓._ Title: President Finn: EBS General Engineering, Inc. Date: 11/1/18 2JEIPJ I CITY OF SANTA ANA PROPOSAL PROJECT NOS.: 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT PUBLIC CONTRACT CODE SECTION 10162 OUESTIONNAIRE In conformance with Public Contract Code Section 10162, the BIDDER shall complete, under penalty of perjury, the following questionnaire: Has the BIDDER, any officer of the BIDDER, or any employee of the BIDDER who has a proprietary interest in the BIDDER, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes No _ V If the answer is yes, explain the circumstances in the following space. MpEtJ CITY OF SANTA ANA Exhibit 3 CONSTRUCTION CONTRACT PROJECTS 16-6864 AND 18-6864 OMNIBUS CONCRETE REPAIR PROJECT This CONSTRUCTION CONTRACT is made and entered into this 5' day of February, 2019 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "CITY'), and-. EBS, General Engineering, hie. (hereinafter "CONTRACTOR'). WITNESSETH: The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: 1. CONTRACTOR agrees to perform all the work and furnish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Omnibus Concrete Repair Project (hereinafter referred to as the "WORK OF IMPROVEMENT") identified in and in accordance with the Contract Documents prepared by the City's Public Works Agency and approved by the City Council. 2. The complete Construction Contract consists of the "Contract Documents" as defined by the Standard Specifications for Public Works Construction and which include the following: • Notice Inviting Bids • Information to Bidders • Bid Proposal • Bid Bond • Contract Form • Contract Bonds • General Provisions • Special Provisions • Technical Provisions and Project Plans • Community Workforce Agreement • Appendices In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF IMPROVEMENT the sum total amount not to exceed One Hundred Forty-one Thousand Two Hundred Forty Dollars and No Cents ($141,,240.00), -as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable. rev. 09/01/2017 23B-33 Page 1 of 4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit "A") including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed. 5. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF IMPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations for this work in accordance with applicable State and Federal law. 6. If applicable, the CONTRACTOR shall adhere to the CITY'S Community Workforce Agreement (CWA), a pre -hire collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City's website at: http://www.santa-ana.org/pwa/documents/CWA.Pdf CONTRACTOR shall, after award of this Contract, furnish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY. 8. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price. 9. CONTRACTOR shall, after award of this Contract, furnish Certificates of Liability Insurance and Worker's Compensation Insurance as outlined in the General Provisions, to be approved by the CITY. Page 2 of 3 23B-34 IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: i/ F J5ANFUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: FUAD SWEISS Executive Director Public Works Agency CITY OF SANTA ANA STEVEN A. MENDOZA Acting City Manager CONTRACTOR: EBS General Engineering Inc. JOSEPH A. NANCI President 23B-35 Page 3 of 3 23B-36 COST ANALYSIS CONSTRUCTION OF THE PROJECT NO. 16-6864 & 18-6864: OMNIBUS CONCRETE REPAIR PROJECT Construction Contract $ 141,240.00 Contract Administration $ 2,500.00 Inspection and Testing $ 7,625.00 Contingencies $ 14,125.00 TOTAL ESTIMATED CONSTRUCTION COSTS $ 165,490.00 EXHIBIT 4 23B-37 23B-38 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE AN AMENDMENT TO THE AGREEMENT WITH STANTEC TO INCLUDE A CAPITAL FACILITY CHARGE STUDY FOR THE WATER AND SEWER ENTERPRISES (NONGENERAL FUND) (STRATEGIC PLAN NO. 6, 1H) CITY MANAGER 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 Authorize the City Manager and Clerk of the Council to amend the agreement with Stantec to conduct a water and sewer enterprise capital facility charge study by increasing the compensation by an amount not to exceed $27,000, for a total agreement amount not to exceed $185,000, subject to nonsubstantive changes approved by the City Manager and City Attorney. On July 3, 2018, at the conclusion of a competitive bid process, the City entered into an agreement with Stantec to perform a cost of service study for the water and sewer enterprises. The primary tasks of the agreement are to create a financial plan for each enterprise, perform a cost -of -service analysis, and provide a recommended five-year rate structure for Council consideration. Throughout the course of the study, it has been identified that there is a need to develop and update Capital Facility Charges, otherwise known as Connection Fees, for the water and sewer enterprises, respectively. These types of charges are fees imposed by public utilities on new developments wishing to connect to the existing public water or sewer system, or on existing users that wish to upsize their current connection or increase the capacity by a change in their operation. The revenue collected from these charges are restricted and may only be used to construct new infrastructure, construct infrastructure capacity enhancements, reimburse the utility for past expansion projects, or for acquiring access to new water supplies. Staff recommends that the existing agreement with Stantec be amended to expand their scope of work to include a Capital Facility Charges study. Stantec will be able to provide this service on a cost-effective and expedient time frame due to work already performed for the cost -of -services studies (Exhibit 1 - Amendment). 25A-1 Approve an Amendment to the Agreement with Stantec to Include a Capital Facility Charge Study for the Water and Sewer Enterprises February 5, 2019 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 maintain a Community Investment Plan for all City assets), Strategy H (complete water/waste water rate study to ensure adequate resources to capture critical long-term capital needs). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and available in the Water Administration and Engineering Account (No. 06017645-62300). Funds are estimated to be spent as follows: Fiscal Year Amount FY 2018/19 $27,000 TOTAL $27,000 101 Fuad S. SW eiss, PE, PLS Executiveirector Public Wor s Agency Exhibit: 1. Amendment to Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs Executive Director Finance and Management Services Agency 25A-2 FIRST AMENDMENT TO AGREEMENT TO PERFORM COST OF SERVICE STUDY FOR WATER AND SEWER ENTERPRISES THIS FIRST AMENDMENT to the above -referenced agreement is entered into on February 5, 2019, by and between Stantec ("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 No. A-2018-172, dated July 3, 2018, by which Consultant agreed to perform a cost of service study for the City's water and sewer enterprises ("Agreement"). B. The Agreement remains in effect through July 2, 2021, with provision for extension, and the parties now wish to amend the Agreement to expand the scope of services and to increase the maximum expenditure under the Agreement to compensate for the additional services. The Parties therefore agree: 1. Section 1, Scope of Services, is amended to include the performance of a capacity charge study for the City's water and sewer enterprises, as described in Exhibit A. 2. Section 2.a., Compens_ation, is amended to increase the total sum to be expended under the Agreement by $27,000 to cover the cost of the capacity charge study as reflected on Exhibit A, which includes a contingency of approximately ten percent. 3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: �wr� JGYN M. FUNI Assistant City Attorney STEVEN A. MENDOZA Acting City Manager CONSULTANT Name: Title: - signatures continue on next page - Page 1 of EXHIBIT 1 25A-3 RECOMMENDED FOR APPROVAL FUAD S. SWEISS, PE, PLS Executive Director Public Works Agency Page 2 of 2 25A-4 EXHIBIT A Stantec Consulting Stantec December 7, 2018 City of Santa Ana Attn: Rudy Rosas Public Works Agency, City Corporation Yard 215 South Center Avenue, Building A Santa Ana CA 92703 Re: Capacity Charge Study for Water and Sewer Enterprises Dear Mr. Rosas, Scope of Work for Capacity Charge Study On behalf of Stantec Consulting, we are pleased to submit the attached scope of work and fee to conduct a Water and Sewer Capacity Charge Study for the City of Santa Ana as an extension of our current rate study project for the City. Much like the current water and sewer rate study, we propose to have Hildebrand Consulting as a subconsultant (as the Project Manager).The study is intended to develop Capacity Charges for the water utility and update the capacity charge for the sewer utility. A capacity charge, also known as Capital Facility Charges and Connections Fees, Is a charge imposed by a public utility on new development wishing to connect to the watedsewer systems or on existing users that wish to upsize their connection or Increase required capacity within the system. The revenue collected from a capacity charge is restricted (see California Government Code 66000 at. seq.) and can only be used to increase the capacity of utility infrastructure, reimburse the utility for past expansion projects, or for acquiring access to new water supply (e.g. purchasing water rights). We will review the existing system assets for both water and sewer and review their respective capital improvement plans to determine the portion of the costs eligible for recovery within such capital recovery charges to ensure that a rational nexus exists between the capital costs and the benefits to new customers. The following describes our proposed scope of work. Task 1-A—Project Initiation & Data Collection To initialize the study, we will conduct a Kick-off Meeting conference call to discuss the goals of the project, data requirements, communication preferences, and the overall project schedule and key milestones for deliverables. Prior to the Kickoff Meeting, we will provide an initial data request list, which will Include the asset register for both systems, system capacity information, and capital spending information. We may already have some of this Information from our existing work. Upon receipt we will review all data received to confine its completeness. As part of our data review, and prior to the Kickoff Meeting, we will review origin and basis for the City's existing Water Availability Fees. Task 1'-B: Evaluate Existing Assets and Planned Growth Projects We will evaluate the value of the water and sewer system assets through the City's asset register. Based on original cost and age, we will assign each asset both a value and a function such that the value of each component of the existing water system Is determined. Our methodology for calculating the value of the system 25A-5 Stantec Consulting Scope of Work for Capacity Charge Study accounts for any outstanding debt and for third -party capital contributions that should offset the recorded value of system assets. In order to understand the value of the system's existing capacity we will evaluate the amount of capacity required to meet the demands of existing customers. The capacity is often measured In the form of 'equivalent residential units or'ERUs°. In order to be efficient, we propose to make simple assumptions regarding the capacities of the respective systems, as opposed to attempting a complex engineering analysis of the systems' capacities. We will also review the City's planning capital spending program as it relates to growth projects (if applicable). We will determine the cost of expanding the infrastructure by understanding the project costs and the capacity associated with the total capital program. Task 1-C: Capacity Charge Study Report Based on the above analysis, our team will develop Capacity Charge schedules for both water and sewer and summarize our methodology and findings in a Capacity Charge StudyReport. We will provide the draft report to City staff for review and Input. Price Proposal We propose to complete the two capacity charge studies for a lump sum amount of $24,839, to be invoiced monthly based on percent completion. The table below show the basis for the lump sum fee, both in terms of hourly rates (which are identical to the rates for our current rate study) and number of hours. Please let us know if you have any questions or comments regarding this proposal. We appreciate the opportunity to be of continued service to the City. Sincerely, David Hyder Principal, Financial Services Signing Authority 25A-6 AF0 Mark Hildebrand Hildebrand Consulting, LLC Project Manager REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: AMEND AGREEMENTS WITH PROJECT PARTNERS, INC., INTERWEST CONSULTING GROUP, AND PENCO ENGINEERING, INC., TO INCREASE THE AGGREGATE LIMIT FOR ON-CALL ENGINEERING, TECHNICAL, AND ADMINISTRATIVE SUPPORT SERVICES {STRATEGIC PLAN NO. 6, 1C} CITY MANAGER 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 Authorize the City Manager and Clerk of the Council to execute amendments to the agreements with Project Partners, Inc., Interwest Consulting Group, and Penco Engineering, Inc., to increase by $500,000, the shared aggregate not -to -exceed amount to $1,000,000 for Engineering, Technical, and Administrative Support Services, for the remaining term of the agreement, beginning February 5, 2019 through September 3, 2021, including the two-year renewal option, if needed, subject to nonsubstantive changes approved by the City Manager and the City Attorney. DISCUSSION On September 4, 2018, City Council authorized the City Manager and Clerk of the Council to execute agreements with Project Partners, Inc., Interwest Consulting Group, and Penco Engineering, Inc., for on-call engineering, technical, and administrative support staffing services in Public Works Agency. The purpose of these consultant services is to augment Public Works Agency staff and thereby maintain development services responsiveness during peak development activity periods which exceed existing staff capacity. The three approved agreements were authorized to share an aggregate not to exceed amount of $500,000 until September 3, 2021. Beginning in Fiscal Year 2016/2017, Public Works staff began experiencing unprecedented levels of plan checking and inspection workloads related to sustained land development activity and increased volume of utility permits and wireless antenna installations. The on-call support staffing contracts are intended to respond to the increased activity. However, based on recent additional increases in development activity trends and our current rate of expenditures, the contract limit will be expended by March of 2019. 2513-1 Amend the Aggregate Limit for On-call Support Services Agreements February 5, 2019 Page 2 In anticipation of continued peak workloads which exceed the Public Works Agency capacity, staff recommends increasing the shared aggregate not to exceed amount from $500,000 to $1,000,000 (Exhibits 1-3, Amendments). This will help maintain time -sensitive project delivery schedules, meet commitments related to private property development activity, and meet the agency goals. The plan checking and permit fees that the City charges developers are based on cost recovery, and the on-call nature of the recommended contracts assures that the City can maintain responsiveness. The table shown in Exhibit 4 summarizes the plan checking and permitting activity level experienced by Public Works Agency Development Engineering and associated revenues received over the last 13 fiscal years. The length of time in the table includes the last period of increased development activity in the mid -2000s. The last two fiscal years and the current year-end projection actual revenues exceed or will exceed the estimated/budgeted revenue by over $1,000,000 each year. Prior to issuing a notice to proceed to any of these three consultants for plan checking and/or permitting work, Public Works and Finance staff would verify that sufficient revenues have been received to support the costs. Each of the accounts listed in the Fiscal Impact (below) have funds budgeted and/or available for temporary staff support services. Staff recommends approval of this Recommended Action to allow all Public Works operations the ability to access the services provided through the agreements as needed. 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 There is no fiscal impact at this time. Prior to utilizing any of these on-call services, Public Works staff must receive Finance & Management Services Agency approval of funding and accounts to ensure that funds are available under the authorization and aggregate limit of these agreements. Upon successful completion of this fiscal review, a corresponding Notice to Proceed containing specific scope and maximum expenditure for the task order will be issued to a firm. Funds are available for expenditure in FY 2018-2019 in the following Public Works Contract Services -Professional Accounts: 25B-2 Amend the Aggregate February 5, 2019 Page 3 Limit for On-call Support Services Agreements Division Account Traffic and Transportation Engineering 01117620-62300 Traffic Signal Maintenance 02917620-62300 Sanitary Sewer Service 05617640-62300 Fed Clean Water Protection 05717640-62300 Residential Street Improvement 05817660-62300 Water Admin/Engineering 06017645-62300 Construction Engineering 08617611-62300 Design Engineering 08617612-62300 Administrative Services 10117601-62300 Development Engineering 10117605-62300 CIP Project Funding Various n APPROVED AS TO FUNDS AND ACCOUNTS: Fuad S. Seiss, PE, PLS Kathryn Downs, CPA Executive irector Executive Director Public Wor Agency Finance and Management Services Agency FSS/EWG Exhibits: 1. First Amendment to Agreement with Project Partners 2. First Amendment to Agreement with Interwest Consulting Group 3. First Amendment to Agreement with Penco Engineering, Inc. 4. Summary of Public Works Plan Check & Permitting Revenues 25B-3 25B-4 FIRST AMENDMENT TO AGREEMENT TO PROVIDE ENGINEERING, TECHNICAL, AND ADiVHNISTRATIVE SUPPORT SERVICES FOR PUBLIC WORKS PROJECTS (PROJECT PARTNERS) THIS FIRST AMENDMENT to the above -referenced agreement is entered into on February 5, 2019, by and between Project Partners ("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. Following City's issuance of Request for Proposal No. 18-047, the parties entered into Agreement No. A-2018-213, dated September 4, 2018, by which Consultant agreed to provide engineering, technical, and administrative support services on an on-call basis for the City's Public Works Agency ("Agreement"). B. Consultant was one of three consultants selected to provide services on an as -needed basis under RFP No. 18-047. The total compensation for services provided by all consultants selected under RFP No. 18-047 was not to exceed a shared aggregate amount of $500,000 during the term of the Agreement, including any extension periods. C. The Agreement remains in effect through September 3, 2021, with provision for extension, and the parties now wish to amend the Agreement to increase the maximum shared aggregate expenditure under the Agreement. The Parties therefore agree: 1. Section 2.a., Compensation, is amended to increase the total compensation for services provided by all consultants selected under RFP No. 18-047 by the shared aggregate amount of ;$500,000 during the term of the Agreement, including any extension periods. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. NORMA MITRE STEVEN A. MENDOZA Acting Clerk of the Council Acting City Manager - signatures continue on next page - Page 1 of 2 Exhibit 1 25B-5 APPROVED AS TO FORM SONIA R CARVALHO City Attorney By: 7VL,. -f,.L HN M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL FUAD S. SWEISS, PE, PLS Executive Director Public Works Agency CONSULTANT Name: Title: Page 2 of 2 r FIRST AMENDMENT TO AGREEMENT TO PROVIDE ENGINEERING, TECHNICAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR PUBLIC WORKS PROJECTS (INTERWEST CONSULTING) THIS FIRST AMENDMENT to the above -referenced agreement is entered into on February 5, 2019, by and between Interwest Consulting Group; hic. ("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. Following City's issuance of Request for Proposal No. 18-047, the parties entered into Agreement No. A-2018-214, dated September 4, 2018, by which Consultant agreed to provide engineering, technical, and administrative support services on an on-call basis for the City's Public Works Agency ("Agreement"). B. Consultant was one of three consultants selected to provide services on an as -needed basis under RFP No. 18-047. The total compensation for services provided by all consultants selected under RFP No. 18-047 was not to exceed a shared aggregate amount of $500,000 during the term of the Agreement, including any extension periods. C. The Agreement remains in effect through September 3, 2021, with provision for extension, and the parties now wish to amend the Agreement to increase the maximum shared aggregate expenditure under the Agreement. The Parties therefore agree: 1. Section 2.a., Compensation, is amended to increase the total compensation for services provided by all consultants selected under RFP No. 18-047 by the shared aggregate amount of $500,000 during the term of the Agreement, including any extension periods. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. MARIA D. HUIZAR Clerk of the Council RAUL GODINEZ II City Manager - signatures continue on next page - Page 1 of 2 29T2 APPROVED AS TO FORM SONIA R. CARVALHO City Attorney JOHN M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL FUAD S. SWEISS, PE, PLS Executive Director Public Works Agency CONSULTANT Name: Title: Page 2 of 2 FIRST AMENDMENT TO AGREEMENT TO PROVIDE ENGINEERING, TECHNICAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR PUBLIC WORKS PROJECTS (PENCO ENGINEERING) THIS FIRST AMENDMENT to the above -referenced agreement is entered into on February 5, 2019, by and between Penco Engineering (a Cannon Company) ("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. Following City's issuance of Request for Proposal No. 18-047, the parties entered into Agreement No. A-2018-215, dated September 4, 2018, by which Consultant agreed to provide engineering, technical, and administrative support services on an on-call basis for the City's Public Works Agency ("Agreement"). B. Consultant was one of three consultants selected to provide services on an as -needed basis under RFP No. 18-047. The total compensation for services provided by all consultants selected under RFP No. 18-047 was not to exceed a shared aggregate amount of $500,000 during the tern of the Agreement, including any extension periods. C. The Agreement remains in effect through September 3, 2021, with provision for extension, and the parties now wish to amend the Agreement to increase the maximum shared aggregate expenditure under the Agreement. The Parties therefore agree: 1. Section 2.a., Compensation, is amended to increase the total compensation for services provided by all consultants selected under RFP No. 18-047 by the shared aggregate amount of $50000 during the term of the Agreement, including any extension periods. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager - signatures continue on nextpage - Page 1 of 2 • APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: J HN M. FUNK Assistant City Attorney FOR APPROVAL FUAD S. SWEISS, PE, PLS Executive Director Public Works Agency CONSULTANT Name: Title: Page 2 of 2 25B-10 PWA DEVELOPMENT ACTIVITY 2006-2019 E5B11 PWA DEVELOPMENT PLAN CHECKS 2000 1500 1500 — 1000 Soo — 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 (Projected) FISCAL YEAR 0 0 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/38 18/19 (Pmjeaed) IPm)eded) FISCAL YEAR E5B11 PWA STREET AND UTILITY PERMITS ISSUED 4,000,000 1500 1000 — 500 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 (Projected) FISCAL YEAR 0 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/38 18/19 IPm)eded) FISCAL YEAR E5B11 PWA PERMIT RELATED REVENUE 4,000,000 3,000,000 2,000,000 1,000,000 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 (Projected) FISCAL YEAR E5B11 25B-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE SECOND AMENDMENT TO AGREEMENT WITH MERCY HOUSE LIVING CENTERS, INC. FOR THE LINK SHELTER {STRATEGIC PLAN NOS. 1,6; 5,4; 5,6} - kA� Jnr CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute a second amendment to the agreement with Mercy House Living Centers, Inc., to authorize the expenditure of an additional amount not to exceed $250,000 in Year 1 for the Santa Ana interim Emergency Homeless Shelter (The Link), subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On September 18, 2018, the City Council approved an agreement with Mercy House Living Centers, Inc. (Mercy House) to operate an interim Emergency Homeless Shelter in Santa Ana for a period of one year in the amount of $3,121,700, with the option to renew for up to one additional year. The total maximum amount of the agreement was $6 million, which included a contingency amount of $250,000 per year for additional services and reimbursable items. On October 16, 2018, the agreement was amended to provide additional indemnification in favor of Mercy House related to their lease agreement for the Link Shelter site. The original agreement was based on an estimated annual budget with a provision for $250,000 in contingency costs each year. The first year contingency funds were for building tenant improvements to the Link Shelter, and have already been paid to Mercy House. The total cost of tenant improvements exceeded the original amount anticipated in the first year budget. Therefore, Mercy House has requested that the second year contingency funds be moved to the first year to reimburse Mercy House for the additional expenses. The agreement expenditure will be modified as follows: Year 1 Year 2 Total $3,371,700 $2,628,300 $6,000,000 25C-1 Second Amendment to Agreement with Mercy House Living Centers, Inc. February 5, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #1 - Community Safety, Objective #6 (Enhance Public Safety Integration, communication and community outreach); Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability) and Objective #6 (Focus projects and programs on improving the health and wellness of all residents). FISCAL IMPACT The initial funding plan for the second year of the agreement (if necessary), was to use a variety of sources including California's Building Homes and Jobs Trust Fund for Senate Bill 2 (Building Homes and Jobs Act), Inclusionary Housing Fund, and the Emergency Solutions Grant (ESG) from the U.S. Department of Housing and Urban Development. However, funds are not yet available from Senate Bill 2 and ESG at this time. Funds in the amount of $250,000 are available in the Inclusionary Housing Fund, Contract Services -Professional account (no. 41718820-62300). APPROVED AS TO FUNDS AND ACCOUNTS: 14 �y,-a� Steven A. Mendoza Ka h n Downg, CPA F po Executive Director Executive Director Community Development Agency Finance and Management Services Agency Exhibit: 1. Second Amendment to Agreement with Mercy House Living Centers, Inc. 25C-2 SECOND AMENDMENT TO AGREEMENT WITH MERCY HOUSE LIVING CENTERS TO OPERATE AN INTERIM EMERGENCY HOMELESS SHELTER THIS SECOND AMENDMENT to the above -referenced agreement is entered into on February 5, 2019, by and between Mercy House Living Centers, hic. ("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 parties entered into Agreement No. A-2018-221, dated September 18, 2018, by which Contractor agreed to administer and operate an interim, low barrier emergency homeless shelter in the City of Santa Ana ("Agreement"). B. On October 16, 2018, the parties entered into First Amendment to Agreement No. A-2018-251 to provide additional indemnification in favor of Contractor relating to certain of Contractor's obligations under the separate, written lease entered into by Contractor to secure the premises for its obligations under the Agreement. C. The Agreement remains in effect, and the parties now wish to farther amend the Agreement to increase the amount of funds to be expended in Year 1 of the Agreement due to additional start-up costs incurred by Contractor for improvements made to the premises. The Parties therefore agree: Section 3(c), Start -Up Funding and Compensation, is amended to increase the total sum to be expended under Year 1 of the Agreement by up to $250,000, upon receipt from Contractor of proper invoices evidencing costs for services and reimbursable items to be provided by Contractor under the Agreement. hi the event City and Contractor agree to extend the Agreement for any period of time beyond its original term of one year, there shall be no contingency amount available for such extension period. 2. Except as modified by this Second Amendment, and all prior amendments, all terms and conditions of 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 NORMA MITRE Acting Clerk of the Council CITY OF SANTA ANA SEVEN A. MENDOZA Acting City Manager Page 1 of 2 25C-3 APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: °° JU14N M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL STEVEN A. MENDOZA Executive Director Community Development Agency MERCY HOUSE LIVING CENTERS, INC. Name: Title: Page 2 of 2 25C-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE AND AGREEMENT WITH WILLDAN HOMELAND SOLUTIONS TO PROVIDE A REVISION TO THE ORANGE COUNTY ACTIVE SHOOTER INCIDENT DRILL TOOLKIT (STRATEGIC PLAN NO. 1,6) 'kk-- Lr CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15t Reading ❑ Ordinance on 20d 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 Willdan Homeland Solutions for the period of February 5, 2019 through March 31, 2019, to provide one revision of the Orange County Active Shooter Incident Drill Toolkit in an amount not to exceed $28,950, subject to non -substantive changes approved by the City Manager and City Attorney. The United States Department of Homeland Security has developed the Urban Areas Security Initiative (UASI) funding program. UASI is designed to address the unique planning, equipment, training, and exercise needs of high -threat, high-density urban areas and provides funds to local emergencyfirst responders that assist in building an enhanced and sustainable capacity to prevent, protect, respond to, mitigate and recover from acts of terrorism. The grant specifically provides funding for anti -terrorism equipment, planning, training, exercises and technical assistance. Santa Ana has been designated as an Urban Area Core City since 2003. As such, for selected grant years, Santa Ana is the fiduciary for the region and manages projects which include, providing training and procuring equipment utilized by the 34 jurisdictions in Orange County. In 2015, UASI grant program funds were utilized to develop the Orange County Active Shooter Incident Drill Toolkit (Toolkit) as part of the UASI Regional Training & Exercise Program. The toolkit was design to be a planning resource for Orange County public safety agencies and organizations to facilitate the design and delivery of an active shooter drill. During 2017 and 2018, the Anaheim/Santa Ana Urban Area (ASAUA) conducted five (5) regional Active Shooter Drills. The exercise planning teams, to include multi -agency staff and a consultant, were instructed to utilize the Toolkit in an effort to test the practical application of the planning guides and core resources. On October 23, 2018, the Police Department issued a request for proposals (RFP #18-095) for a revision to the Orange County Active Shooter Incident Drill Toolkit. On November 14, 2018, the 2501-1 Agreement with Willdan Homeland Solutions February 5, 2019 Page 2 City received proposals from three firms, Willdan Homeland Solutions, Constant & Associates, and Vigilance Risk Solutions. An evaluation committee consisting of representatives the Anaheim/Santa Ana Urban Area (ASAUA) reviewed and rated the three proposals based on established evaluation criteria outlined within the RFP. A revision to the current Toolkit was requested by the ASAUA to incorporate feedback and lessons learned from the utilization of this planning resource during the five (5) abovementioned exercises. The revision will be shared with all regional partners and agencies for assistance in conducting single and multi -jurisdictional active shooter exercises in an effort to enhance terrorism response capabilities within the Urban Area. The results of the RFP evaluation are as follows: Vendor Score Willdan Homeland Solutions 98 Constant & Associates 76 Vigilance Risk Solutions 74 100 point max Willdan Homeland Solutions was the most responsive and capable respondent. Willdan brings valuable expertise and knowledge in Active Shooter training and planning for large-scale emergency situations. The agreement will cover the period of February 5, 2019 through March 31, 2019. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 1 Community Safety, Objective #6, (Enhance Public Safety integration, communications and community outreach). FISCAL IMPACT Funds in the amount of $28,950 are available in the FY16 UASI Grant Program fund accounts (no. 12514491-62300-17425001186-3498). APPROVED AS TO FUNDS AND ACCOUNTS: Davi ntin Kath n Downs, CPA „ CmsD tux) Chief of Police Executive Director Santa Ana Police Department Finance and Management Services Agency Exhibit. 1. Agreement with Willdan Homeland Solutions 25D-2 AGREEMENT WITH WILLDAN HOMELAND SOLUTIONS TO REVISE THE ACTIVE SHOOTER DRILL TOOLKIT THIS AGREEMENT is made and entered into on this 5th day of February, 2019 by and between Willdan Homeland Solutions, wholly owned subsidiary of the Willdan Group, Inc., a Delaware 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. On October 23, 2018, the City issued a Request for Proposal 18-095 ("RFP") by which the City, on behalf of the Anaheim/Santa Ana Urban Area (ASAUA), sought a consultant to conduct an in-depth review and revision to the Orange County Active Shooter Incident Drill Toolkit (Toolkit). The Toolkit was designed to be a planning resource for Orange County public safety agencies and organizations to facilitate the design and delivery of an active shooter drill. B. Consultant submitted a responsive proposal which has been selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that is included in RFP No. 18-095 and attached as Exhibit A C. In undertaking the performance of this Agreement, Consultant represents it is knowledgeable in its field and any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting 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 a. During the term of this Agreement, Consultant shall perform 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 Exhibit A, attached hereto and incorporated by reference. Consultant's proposal, dated November 14, 2018, is also incorporated by reference as though fully set forth herein, except as to the revised deadline and schedules set forth in subsection (b) below. b. The parties to the Agreement agree and understand that the following dates and deadlines provided in the RFP and the Consultant's responsive proposal shall be scheduled as follows: i. First draft of revised Toolkit for the City's review shall be delivered by March 15, 2019. ii. City will submit suggested edits and feedback of revised Toolkit to Consultant by March 22, 2019. iii. Final approved revision of the Toolkit shall be delivered by March 29, 2019. Pagel of 8 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Exhibit B, attached hereto and incorporated by reference. The total amount to be expended under this Agreement shall not exceed $28,950. 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 which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and continue until March 31, 2019, unless terminated earlier in accordance with Section 15, below. 4. INDEPENDENT CONTRACTOR Consultant 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 Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant 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. 5. 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 Consultant under this Agreement ("Documents & Data"). Consultant 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. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant 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 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant 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 Consultant'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 S 1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, and representatives as additional insured(s); (b) be primary and not contributory 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 provisions of Section 3700 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self- insurance. Prior to. commencing the performance .of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than 51,000,000 per accident, d. If Consultant 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. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: i. Consultant 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 canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. iv. Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this Agreement, the amounts provided by the certificates of insurance shall be incorporated by reference into the Agreement. Page 3 of 8 25D-5 V. Consultant shall supply City with a fully executed additional insured endorsement. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish 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 Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 7. INDEMNIFICATION Consultant 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 Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section l 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 terns 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 Consultant 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 Consultant'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 out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements Page 4 of 8 25D-6 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 Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant 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. Consultant 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 Consultant under this Agreement. 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant 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 information 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 Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, 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. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, 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 Consultant. The parties agree that any Page 5 of 8 25D-7 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 Consultant 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 is not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant 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 null 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 consultants retained by City. 15, TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant 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 Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant 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. 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. 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. Page 6 of S 25D-8 18. PROFESSIONAL LICENSES Consultant 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 Santa Ana and all other governmental agencies. Consultant 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. 19. 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 communication 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) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Chief of Police City of Santa Ana 60 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 Fax: To Consultant: Willdan Homeland Solutions 2401 E. Katella Ave. Suite 300 Anaheim CA 92806 Fax: 714-940-4930 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 Page 7 of 8 25D-9 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 time frames, weekends, federal, state, County or City holidays shall be excluded. 20. 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, including the Federal Grant Contract Provisions identified in Exhibit C, attached hereto and incorporated herein, shall be incorporated as if fully 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: Norma Mitre -Ramirez Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attomey By:` 1IFvYTVvWV r Tamara Bogosian Assistant City Attorney RECOMMENDED FOR APPROVAL: David Valentin Chief of Police CITY OF SANTA ANA STEVEN A. MENDOZA Acting City Manager CONSULTANT: By: Title: 25D-10 Page 8 of 8 EXHIBIT A SCOPE OF SERVICES 25D-11 EXHIBIT A CITY OF SANTA ANA REQUEST FOR PROPOSALS FOR ORANGE COUNTY ACTIVE SHOOTER INCIDENT DRILL TOOLKIT REVISION SCOPE OF SERVICES I. DESCRIPTION AND SCOPE OF WORK The City of Santa Ana, on behalf of the Anaheim/Santa Ana Urban Area (ASAUA), is seeking a consultant who can conduct an in-depth review and revision to our Orange County Active Shooter Incident Drill Toolkit (Toolkit). The Toolkit was designed to be a planning resource for Orange County public safety agencies and organizations to facilitate the design and delivery of an active shooter drill. During 2017 and 2018, the ASAUA region conducted (5) regional Active Shooter Drills. The exercise planning teams, to include multi -agency staff and a consultant, were instructed to utilize the Toolkit in an effort to test the practical application of the planning guides and core resources. The consultant would be responsible for reviewing all documentation related to the Toolkit, conducting interviews with the planning teams who coordinated the five regional drills, and providing a revised planning resource that incorporates feedback and lessons learned from the utilization of the toolkit during the abovementioned active shooter exercises. A. BACKGROUND INFORMATION The requested revision will be paid in part or in full with funding from the United States Department of Homeland Security's Urban Areas Security Initiative (UASI) grant. Funding from this grant is applied to homeland security related training, exercises, equipment, and projects in the ASAUA. The ASAUA is comprised of the County of Orange, 34 incorporated cities, and two universities with a population of over 3 million people. The ASAUA has approximately 12,000 public safety emergency responders from the fire service, law enforcement, and public health. UASI grant management support is provided by the two largest cities in the ASAUA, Santa Ana and Anaheim. These two cities alternate fiscal responsibility and administration of the UASI grant. The City of Santa Ana, through the Santa Ana Police Department, administers the ASAUA Homeland Security Regional Training and Exercise Program. B. OBJECTIVE Proposed Toolkit revision should maintain, or build on, the following key components: I. Module 1 — National Preparedness Cycle a. Plan b. Organize & Equip c. Train d. Exercise e. Evaluate and Improve II. Module 2 — How to Use the Toolkit a. How -To Documents b. Core Documents III. Module 3 — Master Task List a. Design & Development City of Santa Ana — RFP 18-095 for Active Shooter Incident Drill Toolkit Revision 2912 b. Conduct c. Evaluation d. Improvement Planning C. PERFORMANCE SCHEDULE First draft of revised Toolkit for the City's review must be delivered by February 15, 2019. City will submit suggested edits and feedback of revised Toolkit to consultant by February 27, 2019. Final approved revision of the Toolkit must be delivered by March 8, 2019 to align with performance goals and objectives of the UAWG Harbor Region and deadlines put forth by the UASI grant program. The City anticipates the final award of agreement to the vendor on December 18, 2018. D. MINIMUM REQUIREMENTS 1. Proposer shall have substantial knowledge of the Homeland Security Exercise and Evaluation Program (HSEEP). 2. Proposer shall have five years or more of experience in planning and training for active shooter incidents. 3. Proposer shall have prior experience in planning and training for multi -disciplined, unified responses to emergency situations and events. City of Santa Ana — RFP 18-095 for Active Shooter Incident Drill Toolkit Revision 25®x'13 EXHIBIT B COMPENSATION Fee Proposal including Dourly rates if applicable 25D-14 EXHIBIT B CITY OF SANTA ANA REQUEST FOR PROPOSALS FOR ORANGE COUNTY ACTIVE SHOOTER INCIDENT DRILL TOOLKIT REVISION PROPOSERS CERTIFICATION and PROPOSAL ITEM PRICING Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Exhibit A) and am familiar with the scope of work locations. I am familiar with all the existing conditions and limitation that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. Proposal Item Price - Pricing shall be based on the scope of services described in Exhibit A. LINE DESCRIPTION QUANTITY UNIT UNIT UNIT EXTENDED QUANTITY PRICE TOTAL PRICE 1 OC Active Shooter Incident Drill 1 1 1 $26,950.00 $28,950.00 Toolkit Revision 2 Total Extended Cost (Add Lines 1 and 2): $28,950.00 Willdan Homeland Solutions 714.940.6370,714.940.4930 LEGAL NAME OF COMPANY PHONE AND FAX NUMBERS 2401 E. Katella Avenue, Suite 300, Anaheim, CA 92806 BUSINESS ADDRESS SIGNA ORIZED AGENT TITLE DATE and CEO Not Applicable Not Applicable FEDERAL ID NUMBER (IF APPLICABLE) CONTRACTOR LICENSE NUMBER (IF APPLICABLE) THIS FORM MUST BE COMPLETED AND City of Santa Ana — RFP 18.095 for Active Shooter Incident Drill Toolkit Revision 25D-15 EXHIBIT C FEDERAL GRANT CONTRACT PROVISIONS 25D-16 EXHIBIT C CITY OF SANTA ANA REQUEST FOR PROPOSALS FOR ORANGE COUNTY ACTIVE SHOOTER INCIDENT DRILL TOOLKIT REVISION FEDERAL GRANT CONTRACT PROVISIONS CERTIFICATIONS a. Debarment and Suspension— Contractor will comply, and all its contractors will comply, with applicable federal suspension and debarment regulations including, but not limited to, Executive Orders 12549 and 12689, and 2 Code of Federal Regulations (CFR) §200.212 and codified in 2 CFR Part 200. b. Section 504 of the Rehabilitation Act of 1973 (Handicapped) - All recipients of federal funds must comply with Section 504 of the Rehabilitation Act of 1973 (The Act). Therefore, the federal funds recipient pursuant to the requirements of The Act hereby gives assurance that no otherwise qualified handicapped person shall, solely by reason of handicap be excluded from the participation in, be denied the benefits of or be subject to discrimination, including discrimination in employment, in any program or activity that receives or benefits from federal financial assistance. The Contractor agrees it will ensure that requirements of The Act shall be included in the agreements with and be binding on all of its contractors, subcontractors, assignees or successors. C. Americans with Disabilities Act of 1990 - (ADA) Contractor must comply with all requirements of the Americans with Disabilities Act of 1990 (ADA), as applicable. d. Lobbying and Political Activity - None of the funds, materials, property, or services provided directly or indirectly under this agreement shall be used for any partisan political activity, or to further the election or defeat of any candidate for public office, or otherwise in violation of the provisions of the "Hatch Act". C. Contractor will comply with all applicable lobbying prohibitions and laws, including those found in United States Code Title 31, § 1352, et seq., and agrees that none of the funds provided under this award may be expended by the Contractor to pay any person to influence, or attempt 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 any federal action concerning the award or renewal of any federal contract, grant, loan, or cooperative agreement. f. Contractor will comply, and all its contractors will comply, with all requirements of the Byrd Anti - Lobbying Amendment (31 U.S.C. 1352), as applicable. g. Non -Discrimination and Equal Opportunity - Contractor will comply, and all its contractors will comply, with Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1964, as amended; Subtitle A, Title 11 of the Americans with Disabilities Act (ADA) (1990); Title DC of the Education Amendments of 1972; the Age Discrimination Act of 1975, as amended; Drug Abuse Office and Treatment Act of 1972, as amended; Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, as amended; Section 523 and 527 of the Public Health Service Act of 1912, as amended; Title Vlll of the Civil Rights Act of 1968, as amended; Department of Justice Non -Discrimination Regulations, 28 CFR Part 42, Subparts C, D, E, and G; and Department of Justice regulations on disability discrimination, 28 CFR Part 35 and 39. In the event a Federal or State court, Federal or State administrative agency, or the Contractor makes a finding of discrimination after a due process hearing on the grounds of race, color, religion, national origin, sex, or disability against a recipient of funds, the Contractor will forward a copy of the findings to CITY which will, in tum, submit the findings to the Office of Civil Rights, Office of Justice Programs, U.S. Department of Justice. It. Contractor will comply, and all its contractors will comply, with all requirements of the Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity." as amended by City of Santa Ana — RFP 18-095 for Active Shooter Incident Drill Toolkil Revision Page 21 25D-17 Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR chapter 60), as applicable. i. Contractor will comply, and all its contractors will comply, with all requirements of the California Public Contract Code Section 10295.3, as applicable. j. Contractor will comply, and all its contractors will comply, with all requirements of the Copeland "Anti -Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3), as applicable. k. Contractor will comply, and all its contractors will comply, with all requirements of the Davis -Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented by Department of Labor regulations (29 CFR Part 5), as applicable. 1. Contractor will comply, and all its contractors will comply, with all requirements of Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708) as supplemented by Department of Labor regulations (29 CFR Part 5), as applicable. M. Contractor will comply, and all its contractors will comply, with all applicable standards, orders or requirements issued under Section 306 of the Clean Air Act (42 U.S.C. 1857(h)), Section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and the Environmental Protection Agency regulations (40 CFR part 15), as applicable. n. Contractor will comply, and all its contractors will comply, with all requirements of the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871), (53 FR 8078, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19645, Apr. 19, 1995), as applicable. o. Contractor will comply, and all its contractors will comply, with all requirements of Section 6002 of the Solid Waste will Act, as amended by the Resource Conservation and Recovery Act, as applicable. P. Contractor will comply with the Federal Water Pollution Control Act (33 U.S.C. 1251-1387) as applicable. q. Contractor agrees that the Department of Homeland Security shall have the authority to seek patent rights for any process, product, invention or discovery developed and paid for with funding through this Agreement based on the requirements of 37 CFR§ 401, as applicable. r. Pursuant to 2 CFR section 200.315, Contractor may copyright any work that is subject to copyright and was developed, or for which ownership was acquired, under a Federal award. The Federal awarding agency reserves a royalty -free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so. The Federal government has the right to: (1) Obtain, reproduce, publish or otherwise use the data produced under a Federal award; and (2) Authorize others to receive, reproduce, publish, or otherwise use such data for Federal purposes. Contractor will provide information pursuant to 2 CFR section 200.315(e) for response to a Freedom of Information Request when applicable. Gly of Santa Ana - RFP 18-095 for Active Shooter Incident Drill Toolkit Revision Page 22 25D-18 S. Contractor will comply with the provisions of 2 C.F.R. section 200.315 regarding the use of intangible property. t. Contractor will comply with all applicable local, state and federal statutes, codes and regulations regarding the use ofstate or federal grant funds and property acquired with those grant funds. U. If the product is defective, does not function as represented or advertised, City is entitled to either a full refund of the purchase price or replacement of the product for a new product at the City's election. City of Santa Ana — RFP 18-095 for Active Shooter Incident Drill TDolkit Revision Page 23 25D-19 25D-20 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: RESOLUTION APPROVING THE CENTRAL SANTA ANA COMPLETE STREETS PLAN {STRATEGIC PLAN NO. 5,613) 2�— 1\A— CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt a resolution approving the Central Santa Ana Complete Streets Plan. 2. Direct staff to incorporate the findings of the Central Santa Ana Complete Streets Plan into the City's Active Transportation Plan. More than 50 percent of Santa Ana residents do not have access to a personal car. In an effort to provide Santa Ana residents with alternative need mobility options, the Santa Ana City Council directed staff, through the City's Five-year Strategic Plan, to develop a master plan of bicycle and pedestrian infrastructure to ensure Santa Ana residents have access to safe streets, regardless of their transportation mode. On March 3, 2015, the City Council approved implementation of an Active Transportation Program grant awarded by the California Transportation Commission for the development of a Complete Streets Plan in Central Santa Ana. Following a Request for Proposals process, the City Council approved an Agreement with KTU&A Planning and Landscape Design to develop the Central Santa Ana Complete Streets Plan. Outreach for this community-based plan began in the spring of 2016 and concluded in the spring of 2017. The outreach effort identified top priority corridors in Central Santa Ana (Exhibit 1 — Map). The Central Santa Ana Complete Streets Plan developed recommendations, conceptual renderings, and cost estimates for those 11 top priority corridors (Exhibit 2). City staff will use the final plan to pursue grant funds for the implementation of the proposed projects outlined in the plan. One of the requirements of the grant for this project is to have Council approve a resolution recognizing the final plan (Exhibit 3). Staff is requesting approval of this recommended action in 55A-1 Resolution Approving the Central Santa Ana Complete Streets Plan February 5, 2019 Page 2 order to update the City's Active Transportation Plan and begin project implementation. Additionally, when pursuing grant funding, projects identified in an adopted plan compete better. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. Individual environmental reviews will be conducted for each recommended improvement at the time of implementation. Those types of projects typically qualify for Categorical Exemptions, which can be done by staff. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #6 (focus projects and programs on improving the health and wellness of all residents), Strategy B (incorporate the improvement of walking and biking lanes as well as the development of a citywide bike master plan into the Circulation Element of the City's General Plan). FISCAL IMPACT There j%no fiscal impact associated with this action F Fuad S.! Weiss, PE, PLS Executiv Director Public W I ks Agency FSS/EWG/TH/CW Exhibits: 1. Central Santa Ana Complete Streets Top Priority Corridors Map 2. Central Santa Ana Complete Streets Plan and Appendices A — D 3. Resolution 55A-2 CENTRAL SANTA ANA COMPLETE STREETS PLAN TOP 11 PRIORITY PROJECTS MAP Top Proms O Study Area Exhibit 1 55A-3 School Park " � r0 eet elf) 55A-4 CENTRAL SANTA ANA COMPLETE STREETS PLAN Central Santa Ana Complete Streets Plan is available here: Appendices A - D are available here: https•llwww santa-ana ora/sitesldefaulUfileslpwldocuments/CSACS-Appendices-Final- Report-Nov-2018.pdf Exhibit 2 55A-5 y jmf 1/16/19 RESOLUTION NO. 2019 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE CENTRAL SANTA ANA COMPLETE STREETS PLAN 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 term "Complete Streets" describes a comprehensive, integrated transportation network with infrastructure and design that allows safe and convenient travel along and across streets for all users, including pedestrians, users and operators of public transit, bicyclists, persons with disabilities, seniors, children, motorists, users of green modes, and movers of commercial goods. B. The Santa Ana City Council recognizes that the planning and coordinated development of Complete Streets infrastructure provides benefits for local governments in the areas of infrastructure cost savings, public health, and environmental sustainability. C. The City Council also acknowledges the benefits and value for the public health and welfare of reducing vehicle miles traveled and increasing transportation by walking, bicycling, and public transportation. D. On March 3, 2015, the City Council recognized an Active Transportation Program grant from the California Transportation Commission for the development of a Complete Streets Plan in Central Santa Ana. The Plan was completed, with the assistance of community outreach, in November 2018. E. A balanced transportation system that includes Complete Streets is conducive to streets that are lively with people walking and bicycling to everyday destinations, such as schools, shops, restaurants, businesses, parks, transit, and jobs, which in tum enhances neighborhood economic vitality and livability. F. Numerous California counties, cities, and agencies have adopted Complete Streets plans, policies, and legislation in order to further the health, safety, welfare, economic vitality, and environmental well-being of their communities. Exhibit 3 Resolution No. 2010,)= Page 1 of 3 55A-7 jmf 1/16/19 G. The Central Santa Ana Complete Streets Plan includes cost estimates for each project corridor to aid the City in pursuing future grant funding opportunities and to facilitate implementation of safety features. H. Following approval of the Central Santa Ana Complete Streets Plan by the City Council, City staff will work with the appropriate City agencies to implement the recommendations outlined in the Complete Streets Plan. Section 2. The City Council of the City of Santa Ana hereby approves the Central Santa Ana Complete Streets Plan, a copy of which is attached as Exhibit A and will be on file at the offices of the Public Works Agency of the City for public inspection. 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 ADOPTED this _ day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By. John M. Funk Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 4111 .01 Miguel A. Pulido Mayor '• • Resolution No. 2019 -XXX Page 2 of 3 jmf 1/16/19 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Mitre, Acting Clerk of the Council, do hereby certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana Me, Date: 2019. Clerk of the Council City of Santa Ana e Resolution No. 201&)00( 55A-9 Page 3 of 3 55A-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE REVISED CITY SPECIAL EVENT SPONSORSHIP POLICY {STRATEGIC PLAN NO. 5,41 CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1e Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution of the City Council of the City of Santa Ana approving the revised City Special Event Sponsorship Policy to streamline the process in providing sponsorship funds to qualifying nonprofits and neighborhood associations with the approval from the respective Councilmember(s) and process payment under the authority'of the City Manager. DISCUSSION Effective 2015, the City Special Event Sponsorship Policy provides Councilmembers with an allocation of $10,000, respectively, per fiscal year to sponsor events organized by qualifying nonprofits or neighborhood associations that provide a public purpose that benefits the community. On election years, Councilmembers may spend no more than half of the allocation prior to December 31St, in order to reserve at least half of the allocation for incoming Councilmembers. Since the adoption of the City Special Event Sponsorship Policy, the City of Santa Ana has supported numerous nonprofits and neighborhood associations. The current process to issue funds is extensive and takes up to two months, requiring that the Donation Request Form first be approved by the respective Councilmember, then be approved at a City Council Meeting and processed as an agreement with the Clerk of the Council and finally submitted to the Finance Department for payment processing. The revised City Special Events Sponsorship Resolution (Exhibit 1) and the Revised City Special Event Sponsorship Policy (Exhibit 2) will make the process more efficient, and provide the much- needed funds to nonprofits and neighborhood associations in a more reasonable timeframe. The revised resolution and policy would allow Donation Request Forms to be pre -approved by the respective Councilmember(s) and then approved for payment by the City Manager, within the existing signing authority. The new process will eliminate the need to execute individual agreements for each sponsorship, which requires intensive staff time and delays the turn -around time in providing sponsorship payments to qualifying non-profit organizations and/or neighborhood 5513-1 1J Adopt the Resolution to Approve the Revised City Special Event 'Sponsorship Policy February 5, 2019 Page 2 associations. For your convenience, the redline versions of the policy has been included in this staff report as Exhibit 3. In the effort to uphold transparency and accountability, staff will provide the City Council with a quarterly report (Exhibit 4) outlining the approved City Special Event Sponsorships with the designated funds, dates, amounts, and event details. Council may request reports or available funding levels at any time to the City Manager's Office. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). FISCAL IMPACT There is no fiscal impact associated with this action. Exhibits: 1. Resolution — City Special Event Sponsorship 2. Policy — Revised City Special Event Sponsorship Policy 3. Redline Version — City Special Event Sponsorship Policy 4. Report — Fund Balances for City Special Event Sponsorship 55B-2 jmf 1/31/19 RESOLUTION NO. 2019 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE REVISED CITY SPECIAL EVENT SPONSORSHIP POLICY WHEREAS, the City Special Event Sponsorship Policy was adopted by the City Council by Resolution No. 2015-042 on August 4, 2015, and has been effective since that time, benefiting the community by establishing guidelines for City support of special events conducted in the City by qualifying nonprofit entities and neighborhood associations; and WHEREAS, under the current policy, disbursement or use of funds to eligible non- profit organizations and neighborhood associations is subject to approval of the respective Councilmember, at his or her discretion for each funding request, and then is later presented for Council approval by use of an agreement in compliance with the current policy; and WHEREAS, the City Council desires to streamline the current City Special Event Sponsorship Policy through the use of an updated form that will include the City's required terms and conditions, as authorized by the City Council, to award funds without the need for additional City Council approval, thereby achieving greater efficiency in the policy's administration and expediting the needed resources for the community; and WHEREAS, the revised policy will continue to implement and establish procedures in accordance with the City's annual budget processes, requirements for Council approvals, and the funding amounts and restrictions provided in Resolution No. 2015-042 for community groups and nonprofit entities to request an appropriation of available funds, when the City Council has allocated funding for this purpose; and WHEREAS, under the revised policy, the City will continue to make funds available for allocation to qualified nonprofit organizations or recognized City neighborhood associations that actively and effectively enhance the quality of life for Santa Ana residents and businesses; and WHEREAS, on a quarterly basis, the City Council will be provided with a report that indicates each Councilmember's approved sponsorships including organization name, amount approved, and event/purpose. 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: 1. The City Council approves the revised City Special Event Sponsorship Policy attached hereto as Exhibit 1. Resolution No. 2019-xxx EXHIBIT 1 Page 1 of 2 55B-3 jmf 1/31/19 2. In accordance with the revised policy, neighborhood associations and/or non- profit entities shall submit a Donation Request Form, attached hereto as Exhibit 2, and as may be amended from time to time, for staff review of eligibility and approval from the respective Councilmember. 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 February, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: By: V ,Uhn M. Funk, Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Clerk of the Council, do hereby attest to and certify that the attached Resolution No. 2019 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Norma Mitre Acting Clerk of the Council 55B-4 Resolution No. 2019-xxx Page 2 of 2 PURPOSE To establish a City Council Special Event Sponsorship Policy and guidelines for disbursement of discretionary funds approved by City Councilmembers to sponsor city programs, services, and special events produced by qualified nonprofit organizations and/or City recognized neighborhood associations. BACKGROUND In August 2015, the City Council approved the Special Event Sponsorship fund providing the Mayor and Councilmembers with the opportunity to allocate sponsorship, up to $10,000 per fiscal year (contingent upon annual City Budget approval), for special events conducted by qualified nonprofit organizations or City -recognized neighborhood associations. The resolution, as adopted in August 2015, specifies that, "during an election year, each Councilmember may spend no more than half of the allocated amount prior to December 31 sc." POLICY This policy governs the approval of sponsorships by the City of Santa Ana ("City') of special events, programs and services conducted by external local entities. Pursuant to this policy, and as approved by the respective Councilmember, the City will consider entering into sponsorship agreements that further the City's mission by providing monetary or in-kind benefits for special events conducted by external groups in the City. However, the City recognizes that the public trust and perception of its integrity and impartiality may be damaged by sponsorships that: a) establish, or are perceived as establishing an inappropriate association; City Council Special Event Sponsorship Policy 1 EXHIBIT 2 55B-5 0 City of Santa Ana Original City Council Adoption Administrative August 4, 2015 Policies and Procedures City Council Special Event Sponsorship Adopted as Revised: Policy February 5, 2019 PURPOSE To establish a City Council Special Event Sponsorship Policy and guidelines for disbursement of discretionary funds approved by City Councilmembers to sponsor city programs, services, and special events produced by qualified nonprofit organizations and/or City recognized neighborhood associations. BACKGROUND In August 2015, the City Council approved the Special Event Sponsorship fund providing the Mayor and Councilmembers with the opportunity to allocate sponsorship, up to $10,000 per fiscal year (contingent upon annual City Budget approval), for special events conducted by qualified nonprofit organizations or City -recognized neighborhood associations. The resolution, as adopted in August 2015, specifies that, "during an election year, each Councilmember may spend no more than half of the allocated amount prior to December 31 sc." POLICY This policy governs the approval of sponsorships by the City of Santa Ana ("City') of special events, programs and services conducted by external local entities. Pursuant to this policy, and as approved by the respective Councilmember, the City will consider entering into sponsorship agreements that further the City's mission by providing monetary or in-kind benefits for special events conducted by external groups in the City. However, the City recognizes that the public trust and perception of its integrity and impartiality may be damaged by sponsorships that: a) establish, or are perceived as establishing an inappropriate association; City Council Special Event Sponsorship Policy 1 EXHIBIT 2 55B-5 b) are perceived to be politically oriented; c) are offensive to segments of its citizenry; or d) are aesthetically displeasing. Therefore, the City will only consider sponsorships in limited circumstances as outlined in this policy. L Sponsorship Opportunities A. Available Funds - Each Councilmember will be allotted $10,000 per fiscal year (contingent upon annual City Budget approval), to sponsor Special Events for eligible applicants whose events and programs support the City's mission and provide a community benefit. The respective Councilmember will have the authority to approve sponsorship requests and staff will process the sponsorship request(s) accordingly. Applicants (nonprofit organizations or city recognized neighborhood associations) may request sponsorship funds via Direct Payment or City Service Credit by submitting a Donation Request Form ("DRF") to the City Council, a sample of which is attached to this policy. All sponsorships are subject to the terms and conditions appearing on the reverse of the DRF. B. Eligible Applicants 1. Nonprofit Organizations: Qualifying nonprofit organizations that are incorporated as a nonprofit charitable organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code are eligible for sponsorship funds via direct payment or City Service Credit. a. If not a non-profit organization, applicants may qualify for City Service Credit. City Service Credit varies and if approved, credit may or may not cover full cost of requested City services. 2. Neighborhood Associations: In the absence of 501(c)(3) status, City - recognized neighborhood associations may be eligible for sponsorship funds via City Service Credit or in the form of a direct payment to a 501(c)(3) entity acting as a fiscal sponsor for the association. C. Ineligible Applicants: 1. Entities that promote the sale or consumption of tobacco products; 2. Entities that promote the sale or consumption of illegal drugs; 3. Entities that promote gambling; City Council Special Event Sponsorship Policy 2 EXHIBIT 2 55B-6 4. Entities that promote the sale or consumption of alcoholic beverages, or that primarily sell alcoholic beverages such as bars, but not including restaurants; 5. Sexually oriented businesses as defined in Chapter 41, Article XVII of the City Code, and entities that promote the sale or dissemination of erotic materials or services; 6. Political parties or political advocacy groups; 7. Inappropriate expenditures such as professional sporting events, alcohol or jewelry. D. Use of Sponsorship Funds -The sponsorship Direct Payment or City Service credit may be applied towards the following: 1. Special Event expenses; 2. On-going program costs/expenses; 3. Special Events Application or Permit fee; 4. Reservation fees for facilities and equipment owned by the City; 5. City staff time, if required, including Police Department staff services; 6. Liability Insurance Fee (if acquired from the City). E. Donation Request Form — A DRF may be accessed via the City of Santa Ana website or the CMO. When submitted, a DRF must include the following information: 1. Contact Information; 2. Organization Information, must indicate valid Tax ID #; 3. Must select City Service Credit or Direct Payment Amount a. City Service Credit Amount; or b. Direct Payment Amount; c. Event Location; d. Description of Event/Purpose; e. Community Benefit (identify how the event, program, service will benefit the community and/or the event participants, briefly describe the positive impact to the community). 4. Applicant Signature & Date; 5. Applicants must submit a current W-9 Form with pertinent information and signature. City Council Special Event Sponsorship Policy 3 EXHIBIT 2 55B-7 IL Eligibility Criteria The City shall consider the following non-exclusive criteria: 1. Whether the expenditure is normal and customary; 2. The relationship and importance of the event to the City's mission; 3. Whether, and the extent to which, the event furthers one or more of the City Council's adopted focus areas; 4. Whether and the extent to which the event will create financial or administrative burdens on the City or require additional personnel; 5. The extent and prominence of communications to the public regarding the event; 6. The aesthetic characteristics of communications to the public regarding the event; 7. Whether the sponsorship will establish, or will be perceived as establishing an inappropriate association; 8. Whether the event is, or will be perceived to be politically oriented; 9. Whether the event is, or will be perceived to be religiously oriented; 10. Whether the event is, or will be perceived to be offensive to segments of the City's citizenry; 11. Whether the persons or organizations affiliated with the event manufacture products, take positions, or otherwise engage in activity that is/are inconsistent with local, state, of federal law, or city policies, city mission, or council's focus areas; 12.Otherfactors that might undermine public confidence in the city's impartiality or interfere with the efficient delivery of city services or operations. 1. Initial Review & Eligibility — Applicants must submit a Donation Request Form to the CMO at City Hall 8t' floor or via email at donationreauest(d-)santa-ana.org. DRFs are available on the City of Santa Ana's webpage and at the CMO located at 20 Civic Center Plaza, Santa Ana, CA 92701 or may be emailed by calling (714) 647-5200. a. City Manager's staff will review the DRF for eligibility and verify that the non- profit organization is listed and in good standing with the IRS. b. CMO will forward DRFs to the City Councilmember(s) from whom the donation was requested to obtain pre -approval of donation amount. 2. Pre -Approval — DRF must be pre -approved by the City Councilmember via email in order to grant the donation request. City Council Special Event Sponsorship Policy 4 EXHIBIT 2 55B-8 3. Approval — Once the CMO staff verifies that the Donation Request Form meets the eligibility criteria and the respective Councilmember approves the request, then the CMO will contact the Applicant via email to notify them of the approval and explain the payment process. 4. Direct Payment Voucher (DPV) — The CMO will fill out the "City Use Only' section of the DRF, obtain City Manager's signature on the Donation Form, then process the Donation Request Form via the City's Direct Payment Voucher process through the City's Finance Department. a. Journal Entry for City Service Credit — DRFs that indicate City Service Credit will be processed through Journal Entry Forms with the Finance Department in order to transfer the funds from the City Manager's Office to the department ensuring the costs/fees/staff time for the Applicant's event as outlined in the DRF. 5. Payment Confirmation — CMO will confirm that the Applicant has received the sponsorship payment, update the tracking spreadsheet, and inform the respective Councilmembers of their available balance for that fiscal year. 6. Election Years — CMO will be responsible for sending a reminder, in July, to Councilmembers that, "during an election year, each Councilmember may spend no more than half of the allocated amount prior to December 31st," as outlined in the resolution. 7. Oversight — CMO is responsible for providing the City Council with quarterly updates of approved sponsorships, using a Receive & File agenda item to the City Council. CMO staff will manage and track each Councilmember's allocation per fiscal year and obtain review by the Finance Department for each approved DRF and on the Council quarterly update. 8. Questions/Concerns — should be directed to the CMO staff. City Council Special Event Sponsorship Policy 5 EXHIBIT 2 55B-9 City of Santa Ana 559 Special Event Sponsorship Donation Request Form ChyManagers Office–M-31 20 Civic Center Have P.O Boz 1988 Santa Ana. CA 92702 (714) 647-5200 .Contactr r Nam¢: Tttle. Address: Phone: Fm Email: Donation r Pre -Approved by Councilmember City SemI 'ces Credt f61 ount Request ed: —� Ih i S. teba Needed: h1a rfCouncilmember. IPlE+asie Choose From the Cat Belc ' – -,I I _. 1 I___ _ ._ _ •J DireM Par yment Amount ��— �IEvent Requested. `S IEveM Date: Time: Approved Amount: Event Location- AMMS; City, State, Dp Description of Eventl Purpose: CommunOy Benefit Bysignfng, I have read and agree to behc and bythe terns and conditions included on the reverse side of this Donation Request Form. - - Applicant Signature: Date: Mail: City Managers office–M•31 Email: donationrequeslQgsanta-anaorg 20 Civic Center Plaa Fax: (714) 667-6916 P.O- Boz 1988 Santa Ana• CA92702 Revised 01131/1010 City Council Special Event Sponsorship Policy 6 EXHIBIT 2 55B-10 Pre -Approved by Councilmember ❑yE5 ❑SFO Pre -A oval Date: pW City Manager Signature: Approved Amount: Date: DPv 0: Revised 01131/1010 City Council Special Event Sponsorship Policy 6 EXHIBIT 2 55B-10 TERMS AND CONDITIONS Use of Fund;. The City has chosen to provide Recipient with fund; as noted on the Donation Request Form for an event to be held in the community because the City has determined that there is a public purpose to be served in supporting the Community Benefit C -Agreement"). In executing this Agreement and receiving the fimds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to we the funds for such purpose or otherwise comply fully with the terms of this Agreement. City shall have the right to termmate this Agreement and demand the return of the fimds pursuant to Section 3.2 below. Term; Termination of Agreement This Agreement shat take effect on the date first above written and remain in effect through Recipient's full expenditure of the fiords. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds protided to Recipient pursuant to this Agreement, as well as interest at the mate of ten percent (100%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiation or termination of this Agreement. Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be wed for a purpose which may cause a significant rUof injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiverfrelease protections. This right shall be on-going and may be implemented by the City at any time, and all m --save and warverhelease forms shall be provided on forms, in amounts and with provisions acceptable to City. No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval ofthe Community Benefit or any activities conducted by the Recipient. Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the posability of death or serious trauma or injury. To this end. therefore, Recipient shall defend, indemnify and hold City and its officials, officer, employees, agents and volunteers fine and harmless from and against any and Al claims, demands, causes of action, costs, expenses, liabilities, losses, damages or iajmies, in law or equity, to property or persons, including wrongful death, in any runner arising out of or incident to any and all acts, omission, willfid misconduct or other activities of the Recipient or its officials, officer,, employees, agents, guests, participants attendees, and contractors, including. the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claim , demands, causes of action, costs, expenses, liabilities, losses, damages or injuries cawed by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, it- officials, officers, employees, agents, or volunteers. Recipient shall pkv and satisfy any judgment, award or decree that may be tendered against the City or its officials, officers. employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, andlor volunteers, for any and all legal expenses and costs incurred by each of them is connection therewith or in enforcing the indemnity herein provided Recipient's obligation to indemnity- shall not be restricted or limited by insurance proceeds, if my, received by the City, its official, officer., employers, agents or volunteer. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement Entire Contract/r�fodification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof; and supersedes all prior negotiations, understandings or agreements. The tern and conditions of this Agreement may be altered, modified or amended only by uaitten agreement signed by both Parties. Authority to Enter Agreement. The person executing on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct it: business and to execute, deliver and perform this Agreement. Each Party warrants that the individual- who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. City Council Special Event Sponsorship Policy 7 EXHIBIT 2 55B-11 55B-12 City of Santa Ana Administrative City Council Adoption February 5, 2019 Policies and Procedures City Special Event Sponsorship Policy effective: January 1. 201 Sity-6eunsilSpecial EveRt SpenGeFsh p Policy Adepted-on- August -4, 2016. BACKGROUND In August 2015. the City Council approved the Special Event Soonsorshio fund providing each year. each Councilmember may spend no more than half of the allocated amount prior to December 31st." POLICY Possess This policy governs the approval of sponsorships of the City of Santa Ana ('City" > and city programs and services by external entities. Pursuant to this policy, the City will consider agreemerits nsorshio with eligible; %,ants that further the City's mission by providing monetary or in-kind support for City programs or services. However, the City recognizes that the public trust and perception of its integrity and impartiality may be damaged by sponsorships that: (a) establish, or are perceived as establishing an inappropriate association; - -- -- { Famutbd: Indent First line: 0.41' (b) or are perceived to be politically oriented; (c) are offensive to segments of its citizenry; or (d) are aesthetically displeasing. Le) When the City loses public trust and public perception of integrity and impartiality, its ability to govern effectively in the interest of its citizens is impaired. Therefore, the City will only consider sponsorships in limited circumstances as a means to generate funds or in-kind support for improving or expanding City programs and services. Therefore, the City will only consider sponsorships in limited circumstances as outlined in this policy. A. Available Funds - Each Councilmember will be allotted $10,000 per fiscal year (contingent uponFamotbd: Fontuvt. Not sold annual City Budget approval) to sponsor Special Events for eligible applicants that are that fomrthd: FMt12 EXHIBIT 3 55B-13 support the City's mission and provide a community benefit. The respective Councilmember will have the authority to approve sponsorship requests and staff will process the sponsorship request accordingly. Applicants (nonprofit organizations or city recognized neighborhood associations) may request sponsorship funds via Direct Payment or City Service Credit by submitting a Donation Request Form ("DRF") to the City Council (reference: Donation Request Form as attached in this olic . r --- I Fomatgd: Indent left 0.5', No bullets or numbering B. Eligible Applicants 1. Nonprofit Organizations: Qualifying nonprofit organizations that are incoroorated as a nonprofit charitable organization that is tax exempt under section 501(63 of the internal revenue code are eligible for sponsorship funds via direct payment or City Service Credit. a. If not a non-profit organization, applicants may Qualify for City Service Credit. City Service Credit vary and if approved, credit may or may not cover full cost of requested City services. 2. Neighborhood Associations: City -recognized neighborhood associations would are eligible for sponsorship funds via City Service Credit or in form of a direct payment through a fiscal sponsor 501(c)3 nonprofit organizations only. C. ' Ineliaible Applicants fierce-soensershia- •------ F,mmtted: Numbered+ Level: l+ Numbering Style: entities that are ineligible for co-sponsorship A, B, C.... + Start at 1 + Alignment Left + Aligned at 1. Entities that promote the sale or consumption of tobacco products 0.25-+ Indent at 0.5- _. 2. Entities that promote the sale or consumption of illegal drugs 3 Entities that promote gambling D. Use of Sponsorship Funds - The sponsorship Direct Payment or City Service credit may be a lied towards the following: 1. Special Event expenses: 2. On-going program costs/expenses: 3. Special Events Apolication or Permit fee: 4. Reservation fees for facilities and equipment owned by the City: 5. City staff time. "if required, including Police Department staff services: 6. Liability Insurance Fee (if acquired from the City). -" Fonnattad: indent Left 0.75-, No bullets or E. Donation Request Form - may be accessed via the City of Santa Ana website or the CMO. DRF numbering must include the following information: 1. Contact Information Fee at Font 12 pt Not Bold .EXHIBIT 3 Fomathmb Centered 55B-14 2. Organization Information, must indicate valid Tax ID # 3. Donation Request, must select City Service Credit or Direct Payment Amount a. City Service Credit Amount: or b. Direct PavmentAmount c. Event Location d. Description of Event/Purpose e. Community Benefit (identify how the event, program, service will benefit the community and/or the event participants, briefly describe the positive impact to the community) 4. Applicant Signature & Date 5 Applicants must submit a current W-9 Form with pertinent information and signature 2-.1_Whether the expenditure is normal and customary; 3-.2. The relationship and importance of the event to the City's mission; 43 Whether and the extent to which the event furthers one or more of the City Council's adopted focus areas, 5. Whether and the extent to which the event will create financial or administrative burdens onthe 4_City, or require additional personnel; 6,5, The extent and prominence of communications to the public regarding theevent; 7.6. Whether the sponsorship will establish, or will be perceived as establishing an inappropriate association; 37_Whether the event is, or will be perceived to be politically oriented; 48 Whether the event is, or will be perceived to bereligiously oriented, 3&9_Whether the event is, or will be perceived to be offensive to segments of the City's citizenry; 41-10. TThe aesthe', 1mUn GallORS to !he pub! 6 regarding -the event 42-11. Whether the person s or organizations{ affiliated with the event manufactures products, takes positions, or otherwise engages in activity that is inconsistent with local, sState, or (Federal law, or CltygollcieS, 6i'. , Council's focus areas; 4,3,12. Other factors that might undermine public confidence in the City's impartiality or interfere with the efficient delivery of City services oroperations. XHIBIT 3 55B-15 Formatted: Indent left 0" Formatted: Font 115 pt Bold Thick underline Formatted: Font: 11.5 pt Bold Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: 1, If HL... + Start at 1 + Alignment Right + Aligned at 0.25" + Indent at 0.5" 'Il Formatted: Numbered + Level: 1 + Numbering Style: A, B. C,,,, + Start at: I + Alignment Left + Aligned at: di 0.11" + Indent at: 0.36" Formatted Numbered +LevN:l+Numbenng Style: 1, 2, 3, ... + Start at:1 + Alignment Left + Aligned at: 0.36'+Indent at 0.61' 'Formatted: Numbered + Level:1 + Numbering Style: 1, 2,3, ... + Start at 1 + Alignment Left + Aligned at 0.11" + Indent at: 0.36' Formatted: List Paragraph, Space Before: 0 pt Line spacing: Exactly 12.3 pt Numbered + Level:1 + Numbering Style: 1, 2,3.... + Start at 1 + Alignment Left + Aligned at 0.11" + Indent at 036", Tab stops: 0.61', Left + 0.61", Left Formatted: Numbered + Level: 1 + Numbering Style: 1, 2, 3, ... + Start at. l + Ngnment Left + Aligned at 0.11" + Indent at 036" -- - Formattek Numbered + Ievel:1 + Numbering Stye: L L 3.... + Start at 1 + Alignment Left + Aligned at 0.11'+Indent at 036' Formatted: Font 12 pt Not Bold Fomrttak CMtM'.d 6"I( GOURGII Gp_apOnnnrnA n nn1 n nn1 Gan be app! 'ed to the fn n 21.The oost of the Yspea al events permitfee,' ---' Formatted: Numbered + Level: l + Numbedng Style: L 2 3.... + Start at 1 + Alignment Lek + Aligned at 23m City staff time, if requiFed, Rdwding PGIlG9 DepaFtment staff 6 0.11'+Indent at 036' 24. Wability -fee: Qeq nqqnuptpd %vith nt.nnt bnr: Gann PROCEDURE a. City Manager's staff will review the DRF for eligibility and verify that the non-profit organization is listed and in good standing on the IRS website: https://apps.irs.gov/app/eos/. b. CMO will forward DRF's to the City Councilmember(s) from which the donation was requested to obtain pre -approval of donation amount. 2. Pre -Approval — DRF must be ore -approved by the City Councilmember via email in order to grant the donation reauest. Fomwtad: Fant 12 pt Not Bold Fomwttad: fantod .EXHIBIT 3 55B-16 cntena and the respective Councilmembers ore -approve the request, then the CMO will contact the Applicant via email to notify them of the approval and explain the payment process. a. Journal Entry for City Service Credit — DRF that indicate City Service Credit will be processed through Journal Entry Forms with the Finance Department in order to transfer the funds from the City Manager's Office to the department ensuring the costs/fees/staff time for the Applicant's event as outlined in the DRF. 5_ Payment Confirmation — CMO will confirm that the Applicant has received the sponsorship payment, update the tracking spreadsheet, and inform the respective Councilmembers of their available balance for that fiscal year. B. Questions/Concems - may be directed to the CMO staff. 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P E (i E k ;i$ $ - / as wm!!! 55B-20 2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: ADOPT RESOLUTION ESTABLISHING THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE AND ITS RELATED BYLAWS {STRATEGIC PLAN NO. 7,2) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: •:• o ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt the attached resolution establishing the Santa Ana 2018 Measure X Citizen Oversight Committee and its bylaws. DISCUSSION On November 6, 2018, the City's voters approved Measure X (Santa Ana Neighborhood Safety, Homeless Prevention, and Essential City Services Enhancement Measure) to increase the City's sales tax rate by 1.5 cents. Measure X established Santa Ana Municipal Code Section 35-214, which requires the City Council to establish a Citizen Oversight Committee (Committee) by resolution. Section 35-214 — Oversight Committee, as follows: 'The City Council shall, by resolution establish a citizen oversight committee to act in an advisory role to the City Council in reviewing the annual revenue and expenditures of funds from the tax authorized by this article. The resolution shall establish the committee members' terms, qualifications and duties, and the committee's scope of authority." On January 15, 2019, the City Council provided direction to staff regarding the Committee. The proposed resolution reflecting City Council direction is attached to this report for City Council consideration. The resolution includes ratification of each committee member appointment by a majority of the City Council. If the resolution is adopted by Council, the Clerk of the Council will make available volunteer applications for residents. Applications will be provided to the applicable Council Members for consideration of appointment. Although the intent is to have nine (9) members on the committee, once the minimum quorum of 5 members have been appointed, meetings can be scheduled. The 55C-1 Resolution — Adoption of the Measure X Citizen Oversight Committee and its related Bylaws February 5, 2019 Page 2 first regularly scheduled meeting will be March 13, 2019; which will be used to provide the new committee members with an orientation. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #2 (Establish communication plans to engage and inform employees and the community about City activities). FISCAL IMPACT Staff expects the current year budget, Management and Support Services Operating Materials and Supplies account 01110100-63001, can absorb the minimal expense associated with Committee activity for the current fiscal year which is estimated to be up to $2,500. No additional appropriation is requested at this time. However, the proposed FY19-20 budget will include a small appropriation request to provide administrative support such as minute -taking, photocopying, and an annual presentation from both the City's sales tax consultant and the City's independent financial statement auditor estimated to be $15,000 and will be budgeted in the Management and Support Services account (01110100 -various). APPROVED AS TO FUNDS AND ACCOUNTS: 140 Kathryn Downs, CPA Executive Director -f,� Finance and Management Services Agency Exhibit: 1. Resolution KD 55C-2 EXHIBIT 1 RESOLUTION NO.2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ESTABLISHMENT OF AND BYLAWS FOR THE TRANSACTIONS AND USE TAX MEASURE X CITIZEN OVERSIGHT COMMITTEE 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 conclusively finds, determines and declares as follows: WHEREAS, on November 6, 2018, the voters of the City of Santa Ana approved Measure X (Santa Ana Neighborhood Safety, Homeless Prevention, and Essential City Services Enhancement Measure). WHEREAS, Measure X established Santa Ana Municipal Code Section 35-214; which includes a requirement for the City Council to adopt a resolution to establish a citizen oversight committee to act in an advisory role to the City Council in reviewing the annual revenue and expenditures of funds from the tax authorized by Measure X; and the committee members' terms, qualifications and duties, and the committee's scope of authority. WHEREAS, on January 15, 2019, the City Council directed staff to prepare a resolution based upon staff recommendation establishing the citizen oversight committee and its bylaws. NOW, THEREFORE, it is hereby ORDERED, RESOLVED and DETERMINED, as follows: Section 2. Establishment of Committee Member Qualifications and Selection, and Member Terms. A. The Measure X Citizen Oversight Committee ("Committee") shall be established. The name of the Committee shall be the SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE. The Committee shall be comprised of 9 members. All Committee Members must be residents of the City of Santa Ana. B. Each of the City Council Members shall select one Committee Member, who shall be a resident from the ward the City Council Member represents. The Mayor shall select three Committee Members at large, each of whom must have financial expertise. Financial expertise is defined as minimum education equal to a four-year accredited college or university degree in Finance, Accounting, Economics or a related finance subject major, with two -year's minimum related working experience in the private or 55C-3 governmental sector. All selections put forth for appointment shall be ratified by a majority of the City Council during a regular City Council meeting. C. Each Committee member shall have a term that coincides with the City Council Member who appointed the Committee Member. D. Residents who desire to serve on the Committee must submit an application with the Clerk of the Council, pursuant to a process established by the Clerk. The Clerk of the Council shall furnish completed applications to the applicable City Council Member for consideration. E. Committee members are volunteers, and are not paid compensation by the City for serving on the Committee. Section 3. Meetings. A. The Committee shall be subject to California open meetings law, which is the Ralph M. Brown Act (California Government Code Section 54950 et seq.). B. Five members shall constitute a quorum for meetings. C. The Committee shall self -elect a Chair to preside over meetings, authorize calls for any special meetings subject to the availability of Finance and Management Services Agency staff, execute the Committee's annual report, and attend the City Council meeting where the Committee's annual report is presented. The Committee shall also self -elect a Vice -Chair to serve in the absence of the Chair. D. In the absence of both the Chair and Vice -Chair, the Committee shall, as the first order of business, nominate a member to Chair the meeting. E. The Executive Director of Finance and Management Services shall appoint an employee to serve as the Recording Secretary of the Committee, who shall take minutes, issue notice of all regular and special meetings, and perform other duties associated with the role. F. The current edition of Robert's Rules of Order shall be the authority on all questions of parliamentary procedure, unless in conflict with the Santa Ana Municipal Code or state law. G. Regular meetings shall be held quarterly, on the second Wednesdays of March, June, September, and December; which are the months immediately following the availability and analysis of quarter -end sales tax data. Meetings will generally be held at 6:00 pm in a publicly -available room at City Hall, which shall be listed on each meeting agenda publicly posted prior to the meeting in accordance with state law. Additional meetings shall be scheduled as needed, or by direction of City Council. 55C-4 Section 4. Committee Member Orientation. Committee Members shall receive an orientation including overviews of the following topics: compliance with the Brown Act; this establishing resolution and any subsequent amending resolutions; sales, transactions and use tax law and processes; and the City's budget and financial position. Section 5. Committee Support. A. The Finance and Management Services Agency shall supply the staff support for the Committee, including attendance at meetings, and preparation of the agenda and meeting presentations. B. The City Council shall appropriate a small annual budget sufficient for administrative support such as photocopying, minute -taking, and an annual presentation from the City's sales tax consultant. Section 6. Duties. A. Pursuant to Santa Ana Municipal Code Section 35-214, the Committee shall act in an advisory role to the City Council. B. The Committee shall review summaries of quarterly and year-to-date revenue generated by Measure X, as detailed sales tax data for each business is confidential pursuant to state law. C. The Committee shall review budgeted and actual expenditures appropriated from the Measure X revenue source. D. During its December meeting, the Committee shall receive annual presentations from the City's sales and use tax consultant and the City's independent financial statement auditor. E. During its March meeting, the Committee shall prepare an annual report to City Council, including recommendations, in time for City Council consideration during the budget process for the upcoming fiscal year. Section 7. Committee Member Absences. If a Committee Member is absent from two consecutive regular meetings, unless by permission of the Committee expressed in its official minutes, or is convicted of a crime involving moral turpitude, or ceases to be a qualified Committee Member, the seat shall become vacant and shall be so declared by the City Council. A notification of non-attendance to the Recording Secretary by either email or phone call may be deemed as an "excused absence" after consideration and vote of a majority of the Committee. Failure to give notification of non- attendance shall be deemed an unexcused absence. Section 8. Amendment of Bylaws. The bylaws included herein can only be amended by resolution of the City Council. 55C-5 Section 9. The bylaws for the Santa Ana 2018 Measure X Citizen Oversight Committee, as described herein, are approved. Section 10. 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 5t" day of February, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: By: :Zd L&w,l rfYls— Sonia R. Carvalho City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Mitre, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on February 5, 2019. Date: Acting Clerk of the Council City of Santa Ana 55C-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ADOPT A RESOLUTION SUPPORTING THE ❑ As Recommended FOURTH AMENDMENT TO THE ORANGE El E] E]OOrrdinance 1n' Reading 1 $42,558,883 on COUNTY FIRE AUTHORITY OCFA (OCFA) JOINT El Ordinance on 2"a Reading POWERS AUTHORITY AGREEMENT ❑ Implementing Resolution (STRATEGIC PLAN NO. 1, 5) ❑ Set Public Hearing For n (� CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution related to the Fourth Amendment to the Orange County Fire Authority (OCFA) Joint Powers Agreement to formalize OCFA's pension liability paydown plan. 2. Authorize the City Manager and Clerk of the Council to execute a fourth amendment to the Joint Powers agreement with Orange County Fire Authority, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Orange County Fire Authority (OCFA) was formed in 1995 to provide regional fire protection and related services to the County of Orange and 18 member cities. Subsequent to formation, 6 additional cities have become members of the OCFA. On March 5, 2012, the City entered into a Joint Powers Agreement (JPA) with the Orange County Fire Authority (OCFA) to provide fire services and emergency medical services. OCFA began providing fire and medic services starting on April 20, 2012. Below is a synopsis of the agreement and also for each amendment that has been previously executed with OCFA. OCFA Joint Powers Agreement (JPA): • Term: 20 years (original OCFA agreement executed June 30, 2010) with option to withdraw at each ten-year interval (June 30, 2020 and June 30, 2030) • Current FY 2018/19 Value of Agreement: $40,698,188 plus annual CPI adjustments capped at 4.5%. The following is a forecast provided by OCFA: Fiscal Year I FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Est. Annual Cost 1 $42,558,883 $44,450,449 $46,442,845 $48,479,520 • Services provided: OCFA shall provide to the City fire suppression, prevention, investigation, emergency medical, rescue and related services, hazardous materials response, community safety, and education services. • OCFA Governing Board: Santa Ana is provided one (1) Director to the OCFA Board of Directors. 55D-1 Fourth Amendment to OCFA Joint Powers Agreement February 5, 2019 Page 2 • JPA divided into two types of member agencies: o Structural Fire Fund - payment via property tax funds transferred directly from OC Tax Assessor o Cash Contract Cities - remit payment based on invoice for services rendered • Santa Ana is a Cash Contract member • Previous JPA Contract Amendments: o Amended Agreement (September 23, 1999) Agreement of membership and JPA terms o First Amended Agreement (July 1, 2010) Established a five-year short fall for Cash Contract Cities, increased the annual cost adjustment to 4.5%/vear. added automatic renewal language for 20 year terms o Second Amended Agreement (February 10, 2014) - Changes to the agreement to allow refund to Structural Fire Fund cities for overpayment o Third Amended Agreement (July 7, 2015) — Changes to the agreement to eliminate alternate Directors to the OCFA Board The original JPA was amended on September 23, 1999, and renewed in 2010 by the First Amendment, which provided for a term that runs through 2030. In 2013, OCFA's members approved a Second Amendment to the Amended JPA, in attempt to address these same "Overpayment" concerns by the City of Irvine; however, the Second Amendment was subsequently invalidated by court judgment. On July 7, 2015, the Santa Ana City Council adopted a resolution related to the Third Amendment to the OCFA Joint Powers Agreement to eliminate alternate Board directors and authorized the City Manager and Clerk of the Council to execute the amendment with OCFA. Following this action, a Third Amendment was approved by OCFA's members, which eliminated alternate Directors to the OCFA Board. On October 25, 2018, the Orange County Fire Authority (OCFA) Board of Directors approved a proposed Fourth Amendment to the OCFA Joint Powers Authority (JPA) Agreement to formalize the OCFA's commitment to its accelerated pension liability paydown plan. Following this action, OCFA is now seeking approval from its member agencies for a Fourth Amendment to formalize the OCFA's commitment to its "snowball" accelerated pension liability paydown plan (Exhibit 1) with a passage of a resolution of the City Council (Exhibit 2) supporting such action. In order to become effective, the Fourth Amendment must be approved by at least two-thirds (e.g., 16 of 24) of the member agencies' governing bodies. As of January 22, 2019, the following 14 member agencies have approved resolutions in support of the Fourth Amendment: City of Aliso Viejo City of Buena Park City of La Palma City of Laguna Hills City of Laguna Woods City of Los Alamitos City of Mission Viejo City of Rancho Santa Margarita City of San Juan Capistrano City of Stanton City of Tustin City of Villa Park City of Westminster City of Yorba Linda OCFA's Accelerated Pension Paydown Plan At its meeting of September 26, 2013, the OCFA Board of Directors adopted an accelerated pension liability paydown plan, otherwise known as the "snowball" plan. The snowball plan calls for the OCFA to accelerate payment of its unfunded pension liability more quickly than the 55D-2 Fourth Amendment to OCFA Joint Powers Agreement February 5, 2019 Page 3 timeframe required for payment by the Orange County Employees Retirement System (OCERS), thereby saving future interest costs and improving the funding status of the OCFA's pension plan. Since the plan was adopted, the OCFA's unfunded pension liability has steadily declined from $473.8 million to $400.6 million, and the funding status has consistently improved from 65% to 79%. Per OCERS' actuary, OCFA is on track to achieve an 85% funding level by December 2020, and has achieved interest savings to date totaling $18.3 million. City of Irvine's June 13 Proposal and June 27 Notice of Withdrawal On June 13, 2018, the City of Irvine provided a proposal to the OCFA requesting, among other proposal elements, that OCFA commit to a pension pay down strategy. On June 21 and June 25, the OCFA responded to the City's proposal reiterating its commitment to OCFA's accelerated pension liability paydown plan, in addition to other commitments made by OCFA regarding proposed service enhancements. On June 27, 2018, the City provided OCFA with a Notice of Withdrawal seeking the initiation of good faith negotiations. OCFA desires to retain Irvine as a member agency, and OCFA staff will continue to negotiate in good faith, as requested by Irvine. At the same time, OCFA desires to continue progress on the commitments made in its June 21 and June 25 responses to the City. The OCFA is hopeful that, with these continued actions honoring its commitments, the City will elect to rescind its Notice of Withdrawal. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #1 — Community Safety, Objective #5 (Provide high quality Police and Fire/Emergency Medical Services response within the City of Santa Ana). FISCAL IMPACT There is no fiscal impact associated with this action. The proposed fourth amendment to the JPA to accelerate payment of its unfunded pension liability will not affect the total costs for fire services charged to the City of Santa Ana by OCFA. The total charges for Fiscal Year 2018/19 includes a base service charge, vehicle replacement and station maintenance costs. The base cash contract service charge calculation excludes accelerated payments for OCFA's unfunded liabilities, which accrued prior to Santa Ana becoming a member of OCFA. In the event of termination or expiration of the agreement with OCFA, the City is required to pay OCFA the amount of the unfunded pension liability that had accrued during the term of the Agreement. This would be payable upon separation. The City would be required to pay 50% of the cost to calculate such an amount would have 15 years to make the necessary payments with interest assuming a rate of return assumed by OCERS as its return of investment. This provision survives termination or expiration of the Agreement. An actuary study will be required in order to determine the value of the unfunded liability associated with the former Santa Ana Fire Department employees. The unfunded liability may fluctuate over time based on market conditions, benefit changes and disability retirements. Exhibits: 1. Fourth Amendment to the Amended Orange County Fire Authority Joint Powers Agreement 2. Resolution 55D-3 55D-4 FOURTH AMENDMENT TO AMENDED JOINT POWERS AUTHORITY AGREEMENT ORANGE COUNTY FIRE AUTHORITY This Fourth Amendment ("Fourth Amendment") to the Amended Joint Powers Authority Agreement is made and entered into by and between the following public entities (collectively referred to as "members"): Aliso Viejo, Buena Park, Cypress, Dana Point, Irvine, La Palma, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (collectively referred to as "Cities" and individually as "City") and the County of Orange (referred to as the "County"), each of whom is a member of the Joint Powers Authority, Orange County Fire Authority ("the Authority"). This Fourth Amendment requires the approval of two thirds of the members to go into effect, and it shall be effective when approved by a sixteenth member. RECITALS WHEREAS, the Authority presently provides fire protection, prevention and suppression services and related and incidental services (collectively, "Fire Services") to Cities as well as to the unincorporated area of the County and State Responsibility Areas ("SRA"); and WHEREAS, the County and several of the Cities entered into a Joint Powers Authority Agreement to form the Authority as of February 3, 1995, pursuant to the provisions of Article 1, Chapter 5, Division 7, Title I (commencing with Section 6500) of the Government Code of the State of California ("Joint Powers Statutes"); and WHEREAS, pursuant to the Joint Powers Statutes the members are authorized to jointly provide for the methods of the provision of Fire Services, including the method of financing the provision of Fire Services; and WHEREAS, on September 23, 1999, the members entered into an amended Joint Powers Authority Agreement ("1999 Amended Agreement") which superseded all prior agreements between the members and is incorporated herein by reference; and EXHIBIT 1 1328404.2 1 55D-5 WHEREAS, pursuant to the 1999 Amended Agreement the members provided for the provision of Fire Services and the joint financing of Fire Services; and WHEREAS, on July 1, 2010, the members entered into the First Amendment to the Amended Joint Powers Agreement ("First Amendment") which amended several provisions of the 1999 Amended Agreement; and WHEREAS, on April 20, 2012, the City of Santa Ana joined the Authority and became a party to the 1999 Amended Agreement and the First Amendment; and WHEREAS, on November 18, 2013, the required number of member agencies approved the Second Amendment to the Amended Joint Powers Agreement ("Second Amendment") which amended several provisions of the 1999 Amended Agreement. However, a final court judgment subsequently invalidated the Second Amendment, so the Second Amendment became, and remains, inoperative; and WHEREAS, on July 14, 2015, the required number of member agencies approved the Third Amendment to the Amended Joint Powers Agreement ("Third Amendment") to eliminate alternative Board Directors; WHEREAS, the Amended Joint Powers Agreement, as amended by the First Amendment and Third Amendment, is referred to herein as the "Amended Joint Powers Agreement And Its Operative Amendments"; WHEREAS, the members wish to adopt this Fourth Amendment to the Amended Joint Powers Agreement And Its Operative Amendments to formalize the OCFA's commitment to its "snowball" accelerated pension liability paydown plan on the terms and conditions set forth herein. NOW THEREFORE, the members agree to amend the Amended Joint Powers Agreement And Its Operative Amendments as follows: 13284042 2 55D-6 AGREEMENT 1. Article IV of the Amended Joint Powers Authority Agreement And Its Operative Amendments is amended to add Section 7, to read as follows: 7. Payments to Reduce Unfunded Pension Liability. A. Except as provided in subsection C, the OCFA Board shall appropriate funds in its budget annually consistent with, or greater than, the budgetary payments called for in the "snowball" accelerated pension liability paydown plan approved by the OCFA Board of Directors on September 26, 2013, and amended on November 19, 2015, November 17, 2016, and March 23, 2017. B. Payments will be greater than those appropriated in the OCFA's budget annually when triggered by a Net General Fund Surplus (per the Financial Stability Budget Policy). Payments from the "Net General Fund Surplus" are hereby deemed as derived from revenues received by overfunded structural fire fund cities as determined by the equity calculation required under Article IV, Section 4 — Equity. C. Appropriations and payments required by subsection A and B may be reduced to the extent the Board determines, by vote approved by two-thirds of the Board, is necessary to address a fiscal hardship. 1) For purposes of this section, "fiscal hardship" shall refer to a substantial reduction in OCFA anticipated revenue and/or a significant increase in anticipated expenses that are beyond the reasonable control of the OCFA Board. 2. This Fourth Amendment amends the 1999 Amended Agreement And Its Operative Amendments, and except as specifically amended herein, the 1999 Amended Agreement And its Operative Amendments shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGES] 13284042 3 55D-7 Dated: ATTEST: Norma Mitre Acting Clerk of the Council NOTICE TO CITY TO BE GIVEN TO: City Manager City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Phone: (714)647-5200 Fax: (714)647-6954 APPROVED AS TO FORM: SONIA R. CARVALHO CITY ATTORNEY By: v fi J hn M. Funk Assistant City Attorney Dated: 1-30-19 CITY OF SANTA ANA STEVEN A. MENDOZA Acting City Manager (Signatures Continued on Page 221 21 55D-8 jmf 1/30/19 RESOLUTION NO. 2019 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE FOURTH AMENDMENT TO THE ORANGE COUNTY FIRE AUTHORITY AMENDED JOINT POWERS AUTHORITY AGREEMENT AND AUTHORIZING EXECUTION THEREOF BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: WHEREAS, the Orange County Fire Authority (OCFA) is a California Joint Powers Authority that was formed in 1995 to provide regional fire protection and related services to the County of Orange and its member cities; and WHEREAS, the original Joint Powers Authority Agreement was superseded by an "Amended Joint Powers Authority Agreement" ("Amended JPA Agreement") entered into by the member cities on September 23, 1999; and WHEREAS, the Amended JPA Agreement has been further amended three times, in 2010, 2013, and 2015; and WHEREAS, a final court judgment subsequently invalidated the Second Amendment, so the Second Amendment became, and remains, inoperative; and WHEREAS, the City of Santa Ana became a member of.the OCFA in 2012, is a party to the Amended JPA Agreement and all prior amendments thereto, and is represented on the OCFA Board of Directors by a Director selected by the City Council; and WHEREAS, the OCFA Board has approved the attached "Fourth Amendment to Amended Joint Powers Authority Agreement" to formalize OCFA's commitment to its "snowball" accelerated pension liability paydown plan, and has requested that the governing bodies of OCFA's member agencies, including the City Council of the City of Santa Ana, consider and approve such amendment as attached. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Santa Ana does hereby: Approve the "Fourth Amendment to Amended Joint Powers Authority Agreement" as proposed by the OCFA and attached herein, and EXHIBIT 2 Resolution No. 2019 -XXX Page 1 of 2 5501-9 2. Authorize the City Manager and Clerk of the Council to execute the "Fourth Amendment to Amended Joint Powers Authority Agreement'. ADOPTED this 5s' day of February, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney 11"By: Yw ✓ JOV M. Funk Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on , 2019. Date: Resolution No. 2019 -XXX Page 2 of 2 Clerk of the Council City of Santa Ana 5501-10 FOURTH AMENDMENT TO AMENDED JOINT POWERS AUTHORITY AGREEMENT ORANGE COUNTY FIRE AUTHORITY This Fourth Amendment ("Fourth Amendment") to the Amended Joint Powers Authority Agreement is made and entered into by and between the following public entities (collectively referred to as "members"): Aliso Viejo, Buena Park, Cypress, Dana Point, Irvine, La Palma, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (collectively referred to as "Cities" and individually as "City") and the County of Orange (referred to as the "County"), each of whom is a member of the Joint Powers Authority, Orange County Fire Authority ("the Authority"). This Fourth Amendment requires the approval of two thirds of the members to go into effect, and it shall be effective when approved by a sixteenth member. RECITALS WHEREAS, the Authority presently provides fire protection, prevention and suppression services and related and incidental services (collectively, "Fire Services") to Cities as well as to the unincorporated area of the County.and State Responsibility Areas ("SRA"); and WHEREAS, the County and several of the Cities entered into a Joint Powers Authority Agreement to form the Authority as of February 3, 1995, pursuant to the provisions of Article 1, Chapter 5, Division 7, Title I (commencing with Section 6500) of the Government Code of the State of California ("Joint Powers Statutes"); and WHEREAS, pursuant to the Joint Powers Statutes the members are authorized to jointly provide for the methods of the provision of Fire Services, including the method of financing the provision of Fire Services; and WHEREAS, on September 23, 1999, the members entered into an amended Joint Powers Authority Agreement ("1999 Amended Agreement") which superseded all prior agreements between the members and is incorporated herein by reference; and 1328404.2 1 55D-11 WHEREAS, pursuant to the 1999 Amended Agreement the members provided for the provision of Fire Services and the joint financing of Fire Services; and WHEREAS, on July 1, 20101 the members entered into the First Amendment to the Amended Joint Powers Agreement ("First Amendment") which amended several provisions of the 1999 Amended Agreement; and WHEREAS, on April 20, 2012, the City of Santa Ana joined the Authority and became a party to the 1999 Amended Agreement and the First Amendment; and WHEREAS, on November 18, 2013, the required number of member agencies approved the Second Amendment to the Amended Joint Powers Agreement ("Second Amendment") which amended several provisions of the 1999 Amended Agreement. However, a final courtjudgment subsequently invalidated the Second Amendment, so the Second Amendment became, and remains, inoperative; and WHEREAS, on July 14, 2015, the required number of member agencies approved the Third Amendment to the Amended Joint Powers Agreement ("Third Amendment") to eliminate alternative Board Directors; 1. WHEREAS, the Amended Joint Powers Agreement, as amended by the First Amendment and Third Amendment, is referred to herein as the "Amended Joint Powers Agreement And Its Operative Amendments"; WHEREAS, the members wish to adopt this Fourth Amendment to the Amended Joint Powers Agreement And Its Operative Amendments to formalize the OCFA's commitment to its "snowball" accelerated pension liability paydown plan on the terms and conditions set forth herein. NOW THEREFORE, the members agree to amend the Amended Joint Powers Agreement And Its Operative Amendments as follows: 1128404.2 2 5501-12 AGREEMENT 1. Article IV of the Amended Joint Powers Authority Agreement And Its Operative Amendments is amended to add Section 7, to read as follows. 7. Payments to Reduce Unfunded Pension Liability. A. Except as provided in subsection C, the OCFA Board shall appropriate funds in its budget annually consistent with, or greater than, the budgetary payments called for in the "snowball" accelerated pension liability paydown plan approved by the OCFA Board of Directors on September 26, 2013, and amended on November 19, 2015, November 17, 2016, and March 23, 2017. B. Payments will be greater than those appropriated in the OCFA's budget annually when triggered by a Net General Fund Surplus (per the Financial Stability Budget Policy). Payments from the "Net General Fund Surplus" are hereby deemed as derived from revenues received by overfunded structural fire fund cities as determined by the equity calculation required under Article IV, Section 4 — Equity. C. Appropriations and payments required by subsection A and B may be reduced to the extent the Board determines, by vote approved by two-thirds of the Board, is necessary to address a fiscal hardship. 1) For purposes of this section, "fiscal hardship" shall refer to a substantial reduction in OCFA anticipated revenue and/or a significant increase in anticipated expenses that are beyond the reasonable control of the OCFA Board. 2. This Fourth Amendment amends the 1999 Amended Agreement And Its Operative Amendments, and except as specifically amended herein, the 1999 Amended Agreement And its Operative Amendments shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGES] 1328404.2 3 55D-13 CITY OF SANTA ANA Dated: By: ATTEST: Norma Mitre Acting Clerk of the Council NOTICE TO CITY TO BE GIVEN TO: City Manager City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Phone: (714) 647-5200 Fax: (714)647-6954 APPROVED AS TO FORM: SONIA R. CARVALHO CITY ATTORNEY By: ✓ I J hn M. Funk Assistant City Attorney Dated: 1-30— 1 9 STEVEN A. MENDOZA Acting City Manager [Signatures Continued on Page 22] 21 55D-14 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: ANNUAL REVIEW OF COUNCIL COMMITTEES AND APPOINTEES — DISCUSS AND CONSIDER RESTRUCTURING COMMITTEE, ESTABLISH MEETING SCHEDULE AND APPOINT MEMBERS; (STRATEGIC PLAN NO. a,, 1) �' CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 13' Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Review and approve the list of established Council Committees, and make changes, as needed. 2. Review and approve the current list of appointees to Council Committees and make changes, as needed. 3. Review and approve the council committee schedule. DISCUSSION The City Council first established Council Committees in 1999. Since then, they are periodically reviewed to ensure that the diverse issues and challenges facing the City are adequately addressed. Currently the City Council has four established committees as follow (Exhibit 1): 1. Economic Development, Infrastructure, Budget and Technology 2. Public Safety, Code Enforcement & Neighborhood Empowerment 3. Youth, Education and Community Services Committee — (same committee members serve on the Joint Santa Ana Unified School District and City Council Committee) 4. Legislative Affairs, Ethics, Transparency and Communications At the January 15, 2019 City Council Meeting the matter was agendized for discussion and staff direction. Based on the feedback received from Councilmembers, the following committees and members have been included in the table below. Staff recommends that the standing meetings convene quarterly or biannually, as provided for on the table, with the understanding that additional special meetings may be scheduled and authorized pursuant to the Brown Act. Also, for your convenience, staff has proposed meeting dates and times, but subject to change at the request of the committee members. If committee names change from list provided below, staff will prepare a resolution for City Council approval and agendize for Council at a subsequent meeting. Upon Council approval the annual calendar 65A-1 Annual Review City Council Committees February 5, 2019 Page 2 will be posted on the City's website. City Council Committee Meetings are held at City Hall, Ross Annex, Room 1600, 20 Civic Center Plaza or at Santa Ana Unified School District sites at various times and as posted on the agenda. The proposed committees for 2019 -2020 are as follow: Economic 1. Iglesias Every other Month Quarterly Community Development, 2. Penaloza Jan., Mar., May, July, Feb., May, Aug., Nov. Development Infrastructure, 3. Solorio Sept., Nov. Budget and Advisory: Technology 2nd Monday, 5:00 pm. 2nd Monday, 5:00 pm. • Planning & Building • Public Works • Finance • Information Technology Public Safety, Code 1. Penaloza Every other month Quarterly Police Department Enforcement and 2. Villegas Jan., Mar., May, July, Mar., June, Sept., Dec. Neighborhood Sept., Nov. Advisory: Empowerment 2nd Tuesday, 5:30 pm. Planning & Building 2nd Tuesday, 5:30 pm. Legislative Affairs, 1. Reyna Quarterly Biannually City Manager's Office Ethics, 2. Jan., Mar., June, Feb. & Aug. Transparency and Sept. Communications Advisory: 4th Wednesday, 12 4th Wednesday, 12 • City Attorney noon noon • Clerk of the Council Youth, Education 1. Iglesias Quarterly Biannually Parks, Recreation and and Community 2. Reyna Jan., April, July, Oct. May & Oct. Community Services Services Committee 3. Villegas 41h Monday, 5:30 p.m. AND 41h Monday, 5:30 p.m. Joint Santa Ana Biannuafly Unified School May & Oct. District and City Council Committee 41h Monday, 5:30 p.m. Note: "Joint SAUSD and Council Committee to meet quarterly. 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). 65A-2 Annual Review City Council Committees February 5, 2019 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. c w �zz Norma Mitre Acting Clerk of the Council 65A-3 65A-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT AND SEWER TRANSFER AGREEMENT WITH THE ORANGE COUNTY SANITATION DISTRICT (NON -GENERAL FUND) (STRATEGIC PLAN NO. 6, 21 CITY MANAGER 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 1. Authorize the City Manager and Clerk of the Council to execute an agreement with the Orange County Sanitation District for the transfer of certain local sewer systems to the City of Santa Ana, subject to nonsubstantive changes approved by the City Manager and City Attorney. 2. Approve an Appropriation Adjustment recognizing revenue from the Orange County Sanitation District in the amount of $23,229,000 into the Sewer Capital Recovery Revenue Account, and appropriating the same into the Sewer Capital Recovery—Reserve Appropriation Expenditure Account. DISCUSSION The City of Santa Ana sanitary sewer system is comprised of approximately 390 miles of sewer mains, 2 sewer lift stations, 48,500 sewer laterals, and 8,000 sewer manholes that collectively convey all sewer effluent from the city to the Orange County Sanitation District (OCSD). The OCSD owns and maintains approximately 54 miles of sewer trunk lines within the City of Santa Ana, which act as main arteries to the treatment plant accepting wastewater from the City's collection system. On July 27, 2011, the OCSD Board of Directors approved Resolution 11-11 (Exhibit 1) adopting a policy regarding the transfer of OCSD local sewers. OCSD staff was directed to work with cities and local sewer districts to transfer certain OCSD sewer facilities that met their definition of local sewers: primarily sewers that started and terminated within a single city or district and sewers that directly connect and serve private sewer laterals. Staff has been working with OCSD staff since 2012 to identify and evaluate which OCSD sewer mains could be transferred to the City on mutually beneficial terms. OCSD staff has identified nine pipeline reaches (Reaches A through 1) totaling approximately 17 miles of pipeline ranging in size from 8" to 33" and aged between 42 and 66 years old (Exhibit 2). City staff, with the help of an engineering consultant, evaluated the nine reaches to determine the risks, costs, and benefits associated with the potential transfers. As a result, staff recommend accepting an 6513-1 Appropriation Adjustment and Sewer Transfer Agreement with Orange County Sanitation District February 5, 2019 Page 2 agreement (Exhibit 3) to transfer Reaches A, B, and C, totaling approximately 8.5 miles of sewer main, along with their associated capital sinking funds, totaling $23,229,000, to be deposited into the City's Sewer Enterprise accounts. The City is already contractually obligated to maintain the subject sewer mains, therefore there are no additional operating expenditures incurred as a result of the proposed transfer. The additional assets will be incorporated into future City sewer master plans which identify and prioritize capital improvement projects. By accepting the transfer under the proposed terms, the City benefits from the ability to have direct control of sewer facilities serving areas undergoing major redevelopment and public infrastructure projects such as the Downtown, Station District, and OC Streetcar projects. The City also benefits from the immediate deposit of funds into its sewer capital recovery account that will allow the City's Sewer Enterprise to make a number of sewer infrastructure improvements across the City as identified in the 2016 Sewer Master Plan. Additionally, the parcels currently served via a direct connection to the subject sewer mains will save $108 annually as a result of not being subject to the OCSD local sewer service fee. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). ENVIRONMENTAL IMPACTS There is no environmental impact associated with this action. FISCAL IMPACT The recommended appropriation adjustment will recognize revenue from the sewer transfer in the amount of $23,229,000 into the Sewer Capital Recovery Revenue Account (No. 05417002- 57990) and appropriate the same into the Sewer Capital Recovery—Reserve Appropriation Expenditure Account_(No. 05417647-69011) for future capital improvement projects. APPROVED AS TO FUNDS AND ACCOUNTS: Fv�� SVD-YI%-YtO Fuad eiss, PE, PLS Kath n Downg, CPA sy Executive irector Executive Director Public Wo s Agency Finance and Management Services Agency Exhibits: 1. OCSD Resolution 11-11 2. Map of Reaches A through 1 3. Agreement 65B-2 RESOLUTION NO. OCSD 11-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING A POLICY REGARDING THE TRANSFER OF LOCAL SEWERS WHEREAS, the core function of the Orange County Sanitation District ("Sanitation District") is to treat and dispose of wastewater generated within its jurisdiction, a 463 -square - mile area of central and northwest Orange County. The Sanitation District operates a regional network of trunk sewers that delivers the area's wastewater to the Sanitation District's treatment and disposal facilities. A "trunk sewer" is a sewer that receives wastewater from many tributary sewers over a large area. Cities, sanitary districts, and one water district within the Sanitation District's jurisdiction operate local networks of tributary sewers that convey wastewater from individual properties to the Sanitation District's regional collection system; and WHEREAS, over the years the Sanitation District and/or its predecessor agencies have, for a variety of site-specific reasons, acquired and operated certain local sewer facilities. Today, the Sanitation District owns and operates approximately 176 miles of local sewers, which represents about 3% of the local sewers within the Sanitation District's service area. The remaining ninety-seven percent (97%) of the local sewers within the Sanitation District are owned and operated by cities, sanitary districts, and one water district; and WHEREAS, in the interest of efficiency, the Sanitation District should focus its resources on the regional network of trunk sewers, and leave operation of local sewers to the cities, sanitary districts, and the water district. The Sanitation District should own and operate local sewers only in exceptional situations, such as when no qualified provider of local sewer service is available; and WHEREAS, one of the goals set forth in the Sanitation District's current Five Year Strategic Plan is to transfer to cities and sanitary districts all "local sewer assets that are not serving a true regional purpose" by Fiscal Year 2012-2013. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby resolve, determine, and order as follows: Section 1: Sanitation District staff shall work with cities and sanitary districts to transfer all local sewer facilities to the appropriate city or sanitary district. Section 2: For purposes of this Resolution, the term "local sewer facilities" generally includes, but is not necessarily limited to, the following: Sewers that connect directly to parcels and/or private sewer laterals; Tributary sewers that feed into the Sanitation District's regional trunk sewers; Any sewer for which a city or sanitary district charges a user fee to operate or maintain. 766336.2 EXHIBIT 1 For purposes of this Resolution, the term "local sewer facilities" generally does not include trunk sewers that collect and convey wastewater from two or more jurisdictions to one of the Sanitation Districts two wastewater treatment plants. Section 3: In those exceptional cases where the Sanitation District deems it necessary to own and operate a local sewer, the Sanitation District should, where feasible, recover the costs of constructing, operating, and/or maintaining the local sewer through a user fee imposed on those users who benefit from the local sewer. PASSED AND ADOPTED at a reRular meeting held Julv 27.2011. ATTEST: Clerk Vf the BoaAl FI-IM1rxa Local Sewers Proposed for Transfer to the City of Santa Ana A. First Street 21 -inch VCP Sewer a. 15 Manholes and 3,914 Linear Feet b. There are direct lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose. B. North Bristol Street 8 -inch to 24 -inch VCP sewer a. 37 Manholes and 9,392 Linear Feet b. There are direct lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose. e. Per the agreement dated April 5, 1968, the City is responsible for maintaining this sewer. f. This sewer may be impacted by the City s Guideway Project. C. Broadway. Main. Fruit Street Trunk 15 -inch to 33 -inch VCP sewer a. 98 Manholes and 31,592 Linear Feet b. There are direct lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose. e. Per the agreement dated January 21, 1970, the City is responsible for maintaining this sewer. f. This sewer may be impacted by the City's Guideway Project. D. Warner Sub -Trunk 12 -inch to 24 -inch VCP sewer a. 7 Manholes and 1,547 Linear Feet b. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. c. The sewer serves only a local purpose. E. Bristol Trunk 24 -inch to 30 -inch VCP sewer a. 15 Manholes and 4,528 Linear Feet b. There are direct lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. L• d. The sewer serves only a local purpose. F. Bear and Plaza and Santa Ana Gardens Channel 8 -inch to 15 -inch VCP sewer a. 24 Manholes and 6,175 Linear Feet b. There appear to be lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose G. Raiff Street Trunk 21 -inch to 30 -inch VCP sewer a. 26 Manholes and 17,012 Linear Feet b. There do not seem to be lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose H. Greenville Trunk 18 -inch to 30 -inch VCP sewer a. 42 Manholes and 16,984 Linear Feet b. There are direct lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose. I. Fairview 8 -inch VCP sewer a. 6 Manholes and 2,640 Linear Feet b. There appear to be lateral connections to the sewer. c. The City may currently be collecting local sewer user fees from the parcels draining to this sewer. d. The sewer serves only a local purpose. The total assets proposed for transfer to the City of Santa Ana include 270 manholes and 93,784 linear feet (17.76 miles). 10/27/11 Prepared by Ann Crafton, OCSD J/ y, Ll I — C p I LSI 1AM-I.R- 1 j CIT F OF [01 :A71[A 11-/ � i cl � l�-. � 1-1 IM 71. r � � � - 17Sb(\y a ° o tt YYY 7 i I eaF — GISDBA ,jor 9 % Orange County Sanitation District Proposed Sewer Transfers 1 , A. N to City of Santa Ana wa e W+E S 65B-7 �NO 1m n -i �){ Vf(T��`(Cri7J Orange County Sanitation District Proposed Sewer Transfers ...� to City of Santa Ana N WE .� S EXHIBIT 2 65B-9 .: �.z� ► r� ,.. MINIMUM NEW n -i �){ Vf(T��`(Cri7J Orange County Sanitation District Proposed Sewer Transfers ...� to City of Santa Ana N WE .� S EXHIBIT 2 65B-9 65B-10 RECORDING REQUESTED BY AND RETURN TO ORANGE COUNTY SANITATION DISTRICT P. O. Box 8127 Fountain Valley, California 92728 Attn: Clerk of the Board (Space Above This Line for Recorder's Use) Exempt from recording fee — California Government Code Section 6103 QUITCLAIM SEWER TRANSFER AGREEMENT BETWEEN ORANGE COUNTY SANITATION DISTRICT AND THE CITY OF SANTA ANA THIS AGREEMENT for the transfer of certain sewers and appurtenant facilities (hereafter, "Agreement") is made and entered into this day of , 2019, by and between Orange County Sanitation District, a County Sanitation District organized under the laws of the State of California ("Grantor"), 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 ("Grantee"). Grantor Is a regional operator of sewage collection facilities. Grantor also Incidentally owns certain local sewers including, but not limited to, the local sewers which are the subject of this Agreement. Grantee operates a local sewage collection system within its jurisdiction. This Agreement shall document and memorialize a factual understanding of all of the facilities to be transferred to Grantee, and a one-time payment being made by Grantor to Grantee in connection therewith. Grantee will maintain and operate the sewers which are the subject of this Agreement as part of its local sewage collection system and shall have sole responsibility therefor following transfer to the Grantee. NOW THEREFORE BE IT RESOLVED that the Grantor and Grantee agree as follows: 1. Grant of Sewer Pipelines For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor does hereby grant, convey and transfer by quitclaim deed, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, to Grantee all of its rights, title, and Interests In all sewer lines and appurtenant sewer facilities covered by this Agreement (collectively, "Facilities") owned by Grantor, which Facilities are described and depicted in Exhibit "B" and shown visually in Exhibit "C," attached hereto and incorporated herein by reference. In the event of any 1345312.2 EXHIBIT 3 65B-11 discrepancy between Exhibit "B" and Exhibit "C," Exhibit "B" shall control. This Agreement shall also convey any underlying right of way necessary to operate and maintain the Facilities within the City of Santa Ana. 2. Facilities Maintenance Grantor and Grantee further agree that future rehabilitation and repairs to these Facilities will be required. Grantor previously reserved $23,229,000 in anticipation of such improvements and now, in consideration of the age and condition of the Facilities, Grantor shall, as sole, full, and final satisfaction of any obligation to inspect, maintain, repair, or rehabilitate any such Facilities, or any portion thereof, and in consideration for conveying the quitclaim deed, shall make a one-time payment to Grantee of twenty-three million, two -hundred twenty nine thousand dollars ($23,229,000), no later than ten (10) business days after recordation of this Agreement, which funds shall be used by Grantee to make any such inspections, repairs, or rehabilitations of the Facilities as may be necessary or appropriate as determined by Grantee. Should the cost of any future inspections, maintenance, repairs, or rehabilitations exceed $23,229,000, Grantee waives all claims against Grantor for the payment of any additional sum therefor or with respect to the condition of title and Grantor shall in no way be obligated to make any additional payment therefor. 3. Waiver and Release Grantee, on behalf of Grantee and Grantee's officers, directors, managers, affiliates, successors and assigns ("Grantee Related Parties") hereby expressly, fully and forever releases and discharges (which release and discharge shall be continuing and shall survive the transfer of the Facilities) Grantor and Grantor's officers, directors, managers, affiliates, employees, representatives, successors and assigns from any and all losses, expenses, claims, costs, damages, rights of subrogation, debts, attorneys' fees, actions, suits, judgments, awards, obligations and/or liabilities of any kind, whether foreseeable or unforeseeable, known or unknown, or suspected or unsuspected, with respect to or in any way relating to, or indirectly or directly arising out of the current condition of the Facilities, any repair or replacement work required with respect to such Facilities, and/or any deferred maintenance. Grantee, on behalf of itself and the Grantee Related Parties, agrees, represents and warrants that the matters released above are not limited to matters which are known, suspected or disclosed and hereby knowingly and voluntarily waives and relinquishes any and all rights and benefits under Section 1542 of the California Civil Code (as such Civil Code may apply to the release above), which provides: 2 1345312.2 65B-12 "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." 4. No Warranty of Title or Condition Grantor makes no warranty or representation of any kind regarding Its title to the Facilities, the condition of the Facilities or the suitability of the Facilities for any purpose. Grantee has been granted an opportunity to fully inspect the Facilities and has done so. Subject only to receipt of the one-time payment described above, Grantee accepts the Facilities "as is," and as subject to all covenants, conditions, burdens, restrictions, reservations, and obligations existing as of the date of transfer. Grantee hereby accepts and assumes all ownership and responsibility for such transferred Facilities, and agrees to indemnify, defend, and hold Grantor harmless from any liability, claim, cost, expense, or damage hereafter arising from the ownership or use of the Facilities. 5. Assignment The benefits and burdens of this Agreement shall be binding upon and inure to all successors -in -Interest and assignees of the parties. 6. Amendment Any amendment of this Agreement or its Exhibits must be in writing, signed, and acknowledged by the Grantor and Grantee and duly recorded in the Official Records of the County Recorder of the County of Orange, State of California. 7. Entire Agreement This Agreement (including any attached exhibits) contains the entire agreement between Grantor and Grantee regarding the subject matter of the Agreement, including all representations and warranties between them, and supersedes any prior or contemporaneous agreement, representation, warranty or understanding with respect to the subject matter thereof. 8. Notices 13453122 Notices relating to this Agreement must be in writing and sent to the addresses set forth below. A party may change its address for notices by giving notice as required by this section. A written notice will be 65B-13 considered given (i) when personally delivered, or (ii) two business days after deposit in the United States Mail as first-class mail, certified or registered, return receipt requested with postage prepaid, or (iii) one business day after deposit with a reputable overnight delivery service for next business day delivery, or (iv) on the business day of successful transmission by email. The parties' addresses for notice are as follows: To Grantor: Orange County Sanitation District Attn: General Manager P.O. Box 8127 Fountain Valley, CA 92728-8127 With a copy to: Woodruff, Spradlin & Smart, APC ATTN: Bradley R. Hogin 555 Anton Blvd., Suite 1200 Costa Mesa, CA 92626 To Grantee: City of Santa Ana Attn: Clerk of the Council 20 Civic Center Plaza Santa Ana, CA 92701 With a copy at the same address to: Executive Director of Public Works 9. Authority Each of the undersigned represents and warrants that they are duly authorized to execute this Agreement and have the legal authority to bind each respective party. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date written above 1345312.2 [Signatures on the following page.] 65B-14 CITY OF SANTA ANA: By: Printed Name: STEVEN A. MENDOZA Title: Acting City Manager Date: ATTEST: By: Printed Name: NORMA MITRE Title: Acting Clerk of the Council Date: APPROVED AS TO FORM: By: �44,fei� Printed arae: John M. Funk Title: Assistant City Attorney Date: 1-1-11 ORANGE COUNTY SANITATION DISTRICT: By: Printed Name: David Shawver Title: Chairman of the Board of Directors Date: ATTEST Printed Name: Kelly Lore Title: Clerk of the Board Date: APPROVED AS TO FORM: By: Printed Name: Bradley R. Hogin Title: General Counsel Date: 1345312.2 65B-15 RECORDING REQUESTED BY WHEN RECORDED RETURN TO: EXHIBIT A QUITCLAIM DEED Recorder's Use FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, and without making any claim or warranty with respect to its interest in the property, if any, the Orange County Sanitation District, a County Sanitation District organized under the laws of the State of California ("Grantor), does hereby remise, release, and quitclaim to the City of Santa Ana, a municipal corporation ("Grantee"), all right, title, and interest in the local sewer lines and appurtenant sewer facilities situated in the City of Santa Ana, County of Orange, State of California described and depicted as follows: See Exhibit "B" description(s) attached hereto and made a part hereof. Executed on this day of , 2019. GRANTOR Orange County Sanitation District 0 TIMi'i 3- Title: 13453122 65B-16 ACKNOWLEDGEMENT 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 ) COUNTY OF On before me, _ Notary Public, personally appeared 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 1345312.2 7 65B-17 (Seal) EKHI BIT B LIS F OF ASSETS -PROPOSED TRANSFER OF SEWERS FROM ORANGE COUNTY SANITATION DISTRICT TO CITY OF SANTA ANA REACH STREET DOWNSTREAM MH STATION# PROJECT# UPSTREAMMH STATION Is PROJECT# MATERIAL DIA in LEN ft SLOPE MAP A A 1Sr ST NHPO100-0035 152+50.00 3-D NHP010D-0040 158+34.36 3-D VCP 21 633 0.15% 3834 A IST ST NHP0100.0030 145+90.36 3-D NHP01DO-003S 152+50.00 3-D VCP 21 619 0.15% 3834 A 157ST NHP0300.0025 145+03.36 3-D NHP0100-0030 145+90.36 3-D VCP 21 100 0.15% 3834 A 1STST NHP010M020 143+82.00 3-1) NHP0300.002S 145+03.36 3-D VCP 21 113 0.15% 3834 A SSTST NHP0I00-OD15 139+37.36 3-D NHP010D-0020 143+82.00 3-D VCP 21 445 0.15% 3834 A ISTST NHPOIOG-0013 135+56.28 3-D NHP0100.0015 139+37.36 3-D VCP 21 381 0.15% 3833 A SSTST NHP0100.0010 135+35.70 3-D NHP0100-0013 135+56.28 3-D VCP 21 21 0.15% 3833 A IST ST NHP0100.0005 132+17.00 3-D NHP0100.0010 135+35.70 3-D VCP 21 318 0.15% 3833 A 1STST 'NHP0300.0000:A 132+11.00 3-D NHP0100-0005 132+17.00 3-D VCP 21 6 0.15% 3834 A IST ST EUA0170 O25 112+50.00 3-1) EUA0170-W30 118+51.00 3-D VCP 21 601 0.15% 3833 A 1ST ST EUA0170-0020 111+85.00 3-D EUA0170-0025 112+50.00 3-D VCP 21 65 0.15% 3832 A SSTST EUA0170-0015 107+55.00 3-D EUA01]0-0020 111+85.00 3-D VCP 21 430 0.15% 3832 A 15T ST EUA0170-0010 105+94.12 1 3-D EUA0170-0015 107+55.00 I 3-D I VCP 1 21 161 0.15% 3832 A SSTST EUA0170-ODOS 105+81.62 1 3-D EUA0170-0010 105+94.12 1 3-D I VCP 1 21 13 0.15% 3832 A IST ST -EUA0170-0OOD 184+70.00 1 2-10.7 EUA0170-0005 105+81.62 1 3-D I VCP 1 21 14 0.15% 3832 8 BRISTOLST SUN0070-0170 0+00.00 1.10 SUN0070-0325 0+05.00 1-10 VCP 21 8 LINK 3938 B BRISTOLST SUN0070-0317 86+95.00 1.10 SUN0070-0320 91+46.00 1.10 VCP 30 451 0.38% 3538 B BRISTOLST SUNOD70.0315 82+86.00 1-10 SUN0070-0317 86+95.00 1.10 VCP 18 409 0.38% 3538 8 BRISTOLST SUN0070.0310 78+09.86 1-10 SUND070-0315 82+86.00 1-10 VCP 21 476 0.20% 3638 B BRISTOLST SUN0070-0305 76+40.52 1-10 SUND070-0310 78+09.86 1-10 VCP 21 169 0.20% 3638 B BRISTOLST SUN0070.0300 73+76.40 1-10 SUN0070-0305 76+40.52 1-10 VCP 21 264 0.20% 3638 B BRISTOLST SUN0070-0295 70+84.50 1-10 SUN0070-0300 73+76.40 1-10 VCP 21 291 0.20% 3638 8 BRISTOLSr SUND070.0290 69+39.80 1.10 SUN0070.0295 70+84.50 1-10 VCP 21 151 0.20% 3638 B BRISTOL ST SUND070.0285 69+20.53 1-10 SUN0070-0290 69+39.80 1.10 VCP 21 20 0.20% 3638 B BRISTOLST SUN0070-0280 67+73.00 1-30 SUN0070-0285 69+20.53 1-30 VCP 21 148 0.20% 3638 B BRISTOLST SUN0070-0275 66+63.00 1-10 SUN0070.0380 67+73.00 1-10 VCP 21 110 0.20% 3638 B BRISTOLST SUN0070.0270 61+30.00 1-10 SUN0070-0275 66+63.00 1-10 VCP 21 533 0.20% 3638 B BRISTOL ST SUN0070-0265 55+99.00 1-10 SUN0070-0270 61+30.00 1-30 VCP 21 531 0.20% 3638 B BRISTOL ST SUND070-0260 51+01.00 1.10 SUN0070.0265 55+99.00 1-10 VCP 498 0.20% 3738 B BRISTOL ST SUND070.0255 50+47.84 1.10 SUN0070-0260 51+01.00 1.10 VCP _21 18 53 0.81% 3738 B BRISTOLST SUN0070.0255 50+47.84 1-10 SUN0070.0260 51+01.00 140 VCP 18 54 0.80% 3738 B BRISTOL ST SUN0070.0250 45+26.60 1-30 SUN0070-0255 50+47.84 1-10 VCP 21 521 0.20% 3738 B BRISTOLST SUNO070.0245 42+42.80 1.10 SUN0070-0250 45+26.60 1.10 VCP 21 284 0.20% 3738 B BRISTOLST SUN0070-0240 35+52.50 1-30 SUND070.0245 42+42.80 1-10 VCP 21 690 0.20% 3738 B BRISTOLST SUND070-0237 34+58.50 1-10 SUN0070-0240 35+52.50 1-10 VCP 21 94 0.38% 3738 B BRISTOL ST SUN0070.0235 33+08.47 1-10 70-023] 34+58.50 1-30 VCP 21 150 0.38% 3738 B BRISTOL Sr SUN0070.0230 31+18.28 1-10 ]0.0235 33+08.47 1-30 VCP 21 190 0.38% 3738 B BRISTOL ST SUND070.0225 28+74.00 1-10 70-0230 31+18.28 1-30 VCP 21 244 0.38% 3838 B BRISTOL ST SUND070-0220 25+66.35 1.10 70-0225 28+74.00 1.10 VCP 21 310 0.40% 3838 B BRISTOLST SUN0070-0215 24+SO.OD 1-10 70.0220 25+66.35 1-10 VCP 21 86 0.40% 3838 B BRISTOLST SUN0070.0230 22+30.00 1-10 70.0215 24160.00 1-10 VCP 21 247 0.40% 3838 B BRISTOLST SUN0070.0205 19+25.00 1-10 0-0210 N 22+30.00 1-10 VCP 21 3080.40%83B BRISrOLST SUN0070-0203 17+27.00 1 -SO 0-0205 19+25.00 1-10 VCP 21 198 0.40% 3B BRISTOLST SUN0070-0200 16+20.00 1-10 0-0203 17+27.00 1-30 VCP 21 107 0.40% 3838 B BRISTOLST SUND070-0195 13+21.70 1.10 0.0200 16+20.00 1-10 VCP 21 298 0.40% 3838 B BRISTOLSr5UN0070.019012+60.00 1.10 ]G-0195 13+21.70 1-30 VCP 8 64 0.47% 3838 B BRISi0L5T SUN0070.0190 12+60.00 1-10 70.0195 13+21.70 1-30 VCP 21 62 0.49% 3838 B BRISTOL ST SUN0070.0185 9+95.00 1-10 SUN0070.0190 12+60.00 1.10 VCP 24 265 0.20% 3838 B BRISTOLSr SUN0070.0180 6+63.00 1.10 SUN0070.0185 9+95.00 1-10 VCP 24 332 0.20% 3838 Assets marked in' are retained by OCSD and not included in this transfer.61/9 19 Exhibit 8 EXHIBIT B LIST OF ASSETS - PROPOSED TRANSFER OF SEWERS FROM ORANGE COUNTY SANITATION DISTRICT TO CIN OF SANTA ANA REACH STREET DOWNSTREAM MH STATION# PROIECT# UPSFREAMMH STATION# PROJECT# MATERIAL DIA in UEN(ftI SLOPE MAP B BRISTOLST SUN0070.0175 3+31.00 1-10 SUN0070.0180 6+63.00 1-10 VCP 24 332 0.20% 3838 B BRISTOL ST SUN0070-0170 0+00.011 1-10 SUN0070-0175 3+31.00 1-10 VCP 24 318 0.20% 3938 B BRISTOLST ISUN0070.0165 0+63A1 1-10 SUN0070-0170 0+00.00 1-10 1 VCP 1 8 1 63 10.53% 13938 B BRISTOLST ISUN007MI65 0+63.01 1 1-10 ISUN007MI70 0+00.00 1-10 1 VCP 1 21 1 63 10.53% 13938 C 17TH ST SUND140-0525 14+75.00 1-8 SUN0140-0530 18+60.00 1-8 VCP I 15 385 0.44% 3641 C 17TH ST SUN0140.0520 10+90.00 1-8 SUN0140-0525 14+75.00 1.8 VCP 15 385 0.44% 3641 C 17TH ST SUN0140-0515 7+22.80 1-8 SUN0140-0520 10+90.00 1.8 VCP 15 367 0.44% 3641 C 17TH ST SUN0140-0510 3+63.00 1-8 SUN0140-0515 7+22.80 1.8 VCP 15 360 0A4% 3640 C 17TH Sr SUN0140-0455 125+94.60 1-8 SUN0140-0510 3+63.00 1.8 VCP 15 363 0.44% 3640 C MAIN ST SUN0140-0485 145+83.00 1-8 SUN0140-0490 147+78.60 1-8 VCP 10 196 0.48% 3640 C MAINSr SUN0140-0490 142+30.00 1-8 SUN0140-0485 145+83.00 1.8 VCP 10 353 0.24% 3640 C MAIN ST SUN0140.0475 138+80.00 1-8 SUN0140-0490 142+30.00 1.8 VCP 30 350 0.24% 3640 C MAIN ST SUN0140O470 135+20.00 1-8 SUN0140.0475 138+80.00 1.8 VCP 10 360 0.24% 3640 C MAIN ST SUN0140-0467 133+19.37 1-8 SUN0140-0470 135+20.00 1-8 VCP 10 201 0.24% 3640 C MAIN ST SUN0140-0465 130+08.90 1.8 SUN0140.0467 133+19.37 1-8 VCP 10 310 0.24% 3640 C MAIN ST SUN0140.0460 126+31.60 1-8 SUN0140-046S 130+08.90 1-8 VCP 10 377 0.24% 3640 C MAIN Sr SUN0140-0455 125+94.60 1-8 SUN014D-0460 126+31.60 1-8 VCP 10 37 1.49% 3640 C MAIN ST SUN014041455 125+94.00 1-8 SUN0140.0460 126+31.60 1-8 VCP 10 37 1.49% 3640 C MAIN ST SUN0140.0450 121+98.60 1.8 SUN0140.0455 125+94.60 1-8 VCP 18 396 0.40% 3640 C MAIN ST SUN0140-0445 117+98.50 1-8 SUN0140.0450 121+98.60 1-8 VCP 18 400 0.40% 3640 C MAIN ST SUN0140.0440 114+02.00 1-8 SUN0140.0445 117+98.50 1-8 VCP IB 397 0.40% 3740 C MAIN ST SUND140.0435 109+93.40 1-8 SUN0140.0440 114+02.00 1-8 VCP IB 409 0.40% 3740 C MAIN ST SUND140.0430 105+15.70 1.8 SUN0140-043S 109+93.40 1-8 VCP 21 478 0.48% 3740 C MAIN S< SUN0140.0425 104+18.20 1-8 SUN0140.0430 105+15.70 1-8 VCP 21 98 0.48% 3740 C MAIN ST SUN0140.0420 102+O6.00 1-8 SUN0140.0425 104+18.20 1-8 VCP 21 212 0.48% 3740 C MAIN ST SUN0140-0415 97+86.00 1-8 SUN014041420 102+06.00 1-8 VCP 21 420 0.48% 3740 C MAIN ST SUN0140.0410 93+49.63 1.8 SUN01404u115 97+86.00 1-8 VCP 21 437 0.48% 3740 C MAIN ST SUND140-0275 88+52.36 1-7 SUN0140-0410 93+49.63 1-8 VCP 21 494 0.48% 3740 C GRAND AV SUND140.0400 73+24.80 1.9 SUN0140-0405 77+58.50 1-9 VCP 15 434 10.59% 3642 C GRAND AV SUN0140-0395 70+02.80 1-9 SUN0140-0400 73+24.80 1-9 VCP 15 322 0.59% 3642 C GRAND AV SUN0140.0390 67+40.63 1-9 SUN0140-0395 70+02.80 1-9 VCP 15 262 0.59% 3742 C GRAND AV SUND140-0387 64+31.50 1-9 SUN0140-0390 67+40.63 1-9 VCP 15 309 0.59% 3742 C GRAND AV SUN0140-0385 61+97.50 1-9 SUN0140-0387 64+31.50 1-9 VCP IS 234 0.59% 3742 C GRAND AV SUN0140-0380 58+00.00 1-9 SUN0140-0385 61+97.50 1.9 VCP 15 398 0.59% 3742 C GRAND AV SUN0140-0375 53+70.55 1-9 SUN0140-0380 58+00.00 1.9 VCP 15 429 0.59% 3742 C GRAND AV SUN0140-0370 51+41.60 1-9 SUN0340-0375 53+70.55 1-9 VCP IS 229 0.59% 3742 C GRAND AV SUN0140.0365 50+09.78 1-9 SUN0140-0370 51+41.60 1-9 VCP 15 126 0.59% 3742 C FRUITST SUN0140.0360 46+93.30 1-9 SUN0140-0365 50+09.78 1.9 VCP 21 316 0.24% 3742 C FRUITST SUN0140-0355 41+12.17 1-9 SUN0140.0360 46+93.30 1-9 VCP 21 581 0.24% 3742 C FRUITST SUN0140.0350 37+90.54 1-9 SUN0140-0355 41+12.17 1.9 VCP IB 322 0.60% 3742 C FRUITST SUN0140-0345 37+04.00 1-9 SUN0140.0350 37+90.54 1.9 VCP 18 87 0.60% 3741 C FRUITST SUN0140-0340 34+42.50 1-9 SUN0140-0345 37+ AD 1-9 VCP 18 262 0.60% 3741 C FRUITST SUN0140-0335 31+88.68 1-9 SUN0140-0340 34+42.50 1-9 VCP IB 250 10.60% 3741 C SANTA ANA AV SUN0140-0333 29+89.21 1-9 SUN014040335 31+88.68 1-9 - VCP SB 198 0.60% 3741 C SANTA ANA AV SUN0140-0330 27+73.25 1-9 SUN0140.0333 29+89.21 1-9 VCP 18 216 0.60% 3741 C SANTA ANA AV SUN0140-0375 23+83.40 1.9 SUN0140-0330 27+73.25 1-9 VCP 18 390 0.60% 3741 C SANTA ANA AV SUN0140-0320 21+86.00 I-9 1111140-0325 23+83.40 1.9 VCP 21 197 0.28% 3741 C SANTA ANA AV SUN0140-0315 20+03.15 1-9 SUN0140-0320 21+86.00 1-9 VCP 21 183 0.28% 3841 C SANTA ANA AV SUN0140.0310 15+83.20 1 1-9 SON0140-0315 20+03.15 1 1-9 VCP 21 420 0.28% 3841 Assets marked in• are retained By OCSD and not Included in this transfer. 6691-991 9 Exhibit EXHIBIT B LIST OF ASSETS- PROPOSED TRANSFER OF SEWERS FROM ORANGE COUNTY SANITATION DISTRICTTO CITY OF SANTA ANA REACH STREET DOWNSTREAM MH STATION# PROTECT# UPSTREAM MH STATION# PROJECT# MATERIAL DIAin LENR SLOPE MAP C SANTAANAAV SUNO14O-O3O5 12+52.65 1-9 SUNO140-0310 15+83.20 1-9 VCP 21 331 0.28% 3841 C SANTA ANA AV SUNO140O30O 10+43.20 1-9 SUNO14O-0305 12+52.65 1-9 VCP 21 209 0.28% 3841 C SANTA ANA AV SUNO14O-0295 10+29.33 1-9 SUN0140O3O0 10+43.20 1-9 VCP 21 18 0.28% 3841 C SANTAANAAV SUNO14O.0290 9+35.35 1-9 SUN014O-0295 10+29.33 1-9 VCP 18 94 0.50% 3841 C SANTAANAAV SUN0140.0285 6+24.55 1-9 SUNO14O-O29O 9+35.35 1-9 VCP 18 311 0.50% 3840 C SANTAANAAV SUN014O-028O 3+14.88 1-9 SUNO14O-0285 6+24.55 1-9 VCP 18 310 0.71% 3840 C SANTAANAAV SUN014O-0275 88+52.36 1-7 SUNO14O0280 3+14.86 1-9 VCP 21 319 0.21% 3840 C SANTAANAAV SUNOI4 027O 86+68.06 1-7 SUNO140-0275 88+52.36 1-7 VCP 24 184 0.44% 3840 C SANTA ANA AV SUNO14O0265 85+42.60 1.7 SUNO140O27O 86+68.06 1-7 VCP 24 125 0.40% 3840 C SANTAANAAV SUN014O-0260 82+21.94 1.7 SUN014O0265 85+42.60 1-7 VCP 24 311 0.40% 3840 C BROADWAY SUN014M255 79+11.90 1-7 SUN014O-026O 82+21.94 1-7 VCP 24 310 0.60% 3840 C BROADWAY SUN014D-0250 75+91.70 1-7 SUNO140.O255 79+11.90 1-7 VCP 24 320 O.6D% 3840 C BROADWAY SUNO140O245 72+70.00 1-7 SUNOI4U-0250 75+91.70 1-7 VCP 24 322 0.60% 3840 C BROADWAY SUNO14O-024O 70+50.00 1-7 SUNO14O-0245 72+70.00 1-7 VCP 24 220 0.60% 3840 C BROADWAY SUNO140-O235 68+37.30 1.7 SUNO14O-024O 70+50.00 1-7 VCP 24 230 0.60% 3840 C BROADWAY SUNO140O230 68+20.00 1-7 SUNO140O235 68+37.30 1-7 VCP 24 17 0.60% 3840 C BROADWAY SUN014O.0225 66+49.80 1.7 SUN0140O23O 68+2O.0O 1.7 VCP 24 170 0.60% 3840 C BROADWAY SUN014O.022O 62+79.50 1-7 SUN014O-0225 66+49.80 1-7 VCP 24 370 0.60% 3840 C BROADWAY SUND1400215 59+09.70 1-7 SUNO14O-022O 62+79.50 1.7 VCP 24 370 0.60% 3840 C BROADWAY SUN0140O21O 55+67.00 1-7 SUNO14O0215 59+09.70 1-7 VCP 24 343 0.60% 3940 C BROADWAY SUNO140O205 49+49.40 1 1-7 SUNO14OO21O 55+67.00 1-7 VCP 24 618 0.60% 3940 C BROADWAY SUNO14O-0200 44+70.40 1-7 SUNO140-O2O5 49+49.40 1-7 VCP 24 479 0.60% 3940 C BROADWAY SUNO14O.0195 40+79.00 1-7 SUNO14002O0 44+70.40 1-7 VCP 24 391 0.60% 3940 C BROADWAY SUNO14O.0190 36+19.00 1.7 SUN0140O195 40+79.00 1.7 VCP 24 460 0.60% 3940 C BROADWAY SUN0140.0185 31+54.00 1-7 SUN014O-0190 36+19.0O 1.7 VCP 24 465 0.88% 3940 C BROADWAY SUN0140018O 26+78.40 1.7 SUNO14O-0185 31+54.00 1-7 VCP 24 476 0.56% 4040 C BROADWAY SUN0140O175 20+18.50 1-7 SUNO14O-0190 26+78.40 I-7 VCP 24 660 0.56% 4040 C BROADWAY SUNO14O-0170 13+20.30 1-7 SUNO140-0175 20+18.50 1-7 VCP 27 698 0.28% 4040 C BROADWAY SUNO14O-0165 6+60.09 1-7 SUNO140-0170 13+20.30 1-7 VCP 27 660 0.28% 4040 C BROADWAY SUNO14O-0160 0+15.00 1-7 SUNO14O-0165 6+60.09 1-7 VCP 27 645 0.28% 4140 C BROADWAY SUNO14O-0155 70+45.62 1-11 SUN0140O16O 0+15.00 1-7 VCP 27 76 5.95% 4140 C BROADWAY SUN014G-015O 64+00.30 1-11 SUN014O-0155 70+4S.62 1-11 VCP 27 645 0.56% 4140 C BROADWAY SUN014M148 62+35.40 1-11 SUN014O-015O 64+00.30 1.11 VCP 27 150 0.56% 4140 C BROADWAY SUND1400147 59+60.40 1-11 SUNO14O-0148 62+35.40 1-31 VCP 27 272 0.56% 4140 C BROADWAY SUND140O145 57+60.40 1-I1 SUNO14O-0147 59+60.40 1-11 VCP 27 218 0.56% 4140 C BROADWAY SUN0140O14O 54+42.50 1-I1 SUNO140O145 57+60.40 1-11 VCP 27 318 0.56% 4140 C BROADWAY SUNO14M1O135 53+70.00 1 -IS SUNO140OI4O 54+42.50 1-11 VCP 24 73 1.26% 4140 C BROADWAY SUNO14O-0130 49+00.00 1-11 SUNO1400135 53+70.00 1-11 VCP 27 470 0.48% 4140 C BROADWAY SUN014"125 44+70.00 1-11 SUN0140O13O 49+00.00 1-31 VCP 27 493 0.48% 4240 C BROADWAY SUN014O.0120 37+05.72 1-11 SUN014M1O125 44+70.00 1-11 VCP 27 661 0.48% 4240 C BROADWAY SUN01400315 35+88.97 1-11 SUNO14O-012O 37+45.72 1-11 VCP 30 164 0.28% 4240 C BROADWAY SUN0140011O 32+49.00 1-11 SUNO14O-0115 35+88.97 1-31 VCP 30 340 0.28% 4240 C BROADWAY SUN0140O1O5 28+96.70 1-11 SUNO14O-0I10 32+49.00 1-11 VCP 30 357 0.28% 4240 C MAIN ST SUNO14O-0100 26+99.00 1-I1 SUNO140-0105 29+96.7O 1-11 VCP 30 198 0.28% 4240 C MAIN ST SUNO14O-0095 26+59.00 1-I1 SUNO14O-010O 26+99.00 1-11 VCP 24 40 1.57% 4240 C MAIN ST SUNO14O-0095 26+59.00 1-11 SUN0140010O 26+99.00 1-11 VCP 12 41 1.55% 4240 C MAIN ST SUNO14O.0090 22+44.54 1-11 SUN0140O095 26+59.00 1-11 VCP 30 414 0.36% 4240 C MAIN ST SUNO140-0085 18+79.44 1-11 SUN014O--O09O 22+44.54 1-11 VCP 30 365 0.36% 4240 C MAINST SUN014O.0090 14+37.34 1-11 SUN014M1O085 18+79.44 1-11 VCP 33 442 0.20% 4340 C MAI SUN01400O75 9+00.00 1-11 SUNO14O-0080 14+37.34 1-11 VCP 33 537 0.20% 4340 C MAIN ST SUN014O.007O 4+73.00 1-11 SUNO14O-0075 9+00.00 1 -Il VCP 33 427 0.20% 4340 C MAIN ST •SUN014O-0065 0+05.00 1.11 SUNO140-0070 4+73.00 1-11 VCP 33 468 0.20% 4340 10 Assets marked in' are retained by OCSD and not included in this transfer.}/y(=p1992o Exhibit CITY OF "WTA ORANGE oAaoExeaove `�/� � CITY OF s 'GARDEN GROVE 0 - 15t aN:1�39 Waffle 4„ O C I. CITY OF FOUNTAIN VALLEY YIARNFA / d CITY OF ° SANTA ANA 0 a a r, MAcAaTaua - 'CITY.OF )STA MESA CITY�QF IRVINE PPE. 9y z {Ii B arx I wvwe GIITY OF- TUSTIN :-L Orange County Sanitation District _ ReaNA-istSUeet Read B - BrlslalStreel Proposed Sewer Transfers _ R..00-MainSUBentaAfuBlV mad. SVGranEAw to City of Santa Ana CRtt1AME ALF d rvs w +�' sA>aAArvA N � oaARCE RUBE WE Q r Dm ca $ C� FWWA VA EY 0 COSTAMESA e5 a 43 Mcg CITY�QF IRVINE PPE. 9y z {Ii B arx I wvwe GIITY OF- TUSTIN :-L Orange County Sanitation District Proposed Sewer Transfers to City of Santa Ana Reach A Legend • Proposed Local Manholes to be transferred • OCSD Manhole to be retained Proposed Local Sewers to be transferred ° "° •!"'+� N W + E 12 5 Exhibit C2 ¢n on o v 15T ST NHPOIOO-0005 - NHP0100-0000:A enosl-ut :.[ -.. (O CSO) PMHERE, Gar.0 .::inanlnWors, • nEYeetMap - Na GIS I¢ e: onrnevry I - C 1ST o o o _ LU a. U rcSLY%W CIO _ - _ _ - :.,(vnpCl!AY£ _ I .. •.: !tiUIDOiN AIL i U �. ..:L'CR4 PL :: I IY.IIT A.F n I Esrl. HERE, Gamin, 00pM50eeVvlap con0ibutprs, mId Ne GIS ma cp°unl :tiry Orange County Sanitation District Proposed Sewer Transfers to City of Santa Ana Reach A Legend • Proposed Local Manholes to be transferred • OCSD Manhole to be retained Proposed Local Sewers to be transferred ° "° •!"'+� N W + E 12 5 Exhibit C2 ¢n on SANTA CLARA AVE wxmmmm 1 13 14 F - 17TH ST. - TI, Two, T, T04 I-,! -7,rRr ll T, • f TI IST ST MYRTLE ST Orange County Sanitation District Legend Proposed Sewer Transfers • Proposed Local Manholes to be transferred to City of Santa Ana Proposed Local Sewers to be transferred Reach B N W+E S ass 0 of Exhibit C3 13 Orange County Sanitation District Proposed Sewer Transfers to City of Santa Ana Legend Reach C � Proposed Local Manholes to be transferred OCSD Manhole to be retained - Proposed Local Sewers to be transferred N e9 FI YFf,P W + E SS us 0 0.0 Exhibit C4 65B-24_- SUNOYaO!!5 SUNOH1 90 -•' SUNOf1a0g5 . r ' . - • •� .• g g g - SUN01100n0 d , : .... 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LeelMap conlnbNors. rvd Ne GIS mer cemm,aiy Orange County Sanitation District Proposed Sewer Transfers to City of Santa Ana Legend Reach C � Proposed Local Manholes to be transferred OCSD Manhole to be retained - Proposed Local Sewers to be transferred N e9 FI YFf,P W + E SS us 0 0.0 Exhibit C4 65B-24_- REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: RECEIVE AND FILE — FISCAL YEAR 2018-19 MID -YEAR BUDGET UPDATE, VACANCY REPORT; APPROVE APPROPRIATION ADJUSTMENT (STRATEGIC PLAN NO. 4, 1) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: _ -c• k' ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Receive and file Mid -Year Budget Report, which includes the 2nd Quarter update and Vacancy Report. 2. Approve an Appropriation Adjustment (Exhibit 1) for various adjustments to revenue and expenditures in selected funds. DISCUSSION The purpose of this report is to provide a Mid -Year update of revenue estimates and significant expenditure variances. The report also includes Mid -Year funding requests from Departments. Please note the revised expenditure appropriations of $251.1 million (noted below) do not include the impact for negotiated increases to employee compensation related to the Santa Ana Police Officers Association. The negotiated increases and related fiscal impact are addressed in a separate report on this same agenda. FISCAL YEAR 2018-19 General Fund: Mid -Year Update A summary of the adjustments at Mid -Year and the impact on fund balance follows. 65C-1 in millions Original Revised Fiscal Year 201&19 Budget at Midyear Estimated Revenue $ 254.1 $ 262.6 Transfers In 0.3 0.3 Appropriated Expenditures (252.3) (251.1) Transfers Out (12.3) (12.3) Net General Fund Activity $ (10.2)1 $ (0.6)� 65C-1 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 2 The City began the fiscal year 2018-19 with an approved budget, which included a one-time use of the General Fund balance in the amount of $10.2 million to balance the budget. With the updated revenue estimates, and appropriation amendments at Midyear, the estimated use of General Fund balance has decreased to $0.6 million. A summary of the estimated ending General Fund balance compared to the City Council reserve policy follows. The City Council's General Fund reserve policy requires an Operating Reserve of 16.67% to 20% of operating revenues or expenditures. The minimum calculated Operating Reserve is $43.4 million (16.67% of $262.6 million revenue, less one-time sale of land). The reserve policy also requires an Economic Uncertainty Reserve of 1% to 10% of recurring revenues. The minimum calculated Economic Uncertainty Reserve is $2.6 million (1% of General Fund revenues). The estimated ending fund balance at June 30, 2019 of $55.8 million is compliant with the General Fund reserve policy when combining both the operating reserve, economic uncertainty and unallocated accounts. Revised Revenue Projections General Fund revenues for FY 2018-19 are projected to total $262.6 million, an increase of $8.5 million from the adopted budget in the amount of $254.1 (total resources, less transfers -in and one-time use of the General fund balance). This includes a $15 million estimate of new Measure X revenue for April through June 2019. Staff has updated revenue estimates based on the Midyear analysis, and recommends budget adjustments for the significant variances (see Exhibit 1). Some updated estimates are insignificant and no budget adjustment is recommended at this time. The City's major revenue sources (Sales Tax -including Measure X, Property Tax, Property Tax - VLF Utility Users Tax, Business License and Hotel Visitors Tax) represent 68% of the total General Fund revenues. Other "Key revenues" for the City, include Cannabis, Jail, Parking Fines, Plan Check and Permitting, which amount to another 14% of the forecasted budget. Revised projections were made for the following revenues sources and are listed: 65C-2 Original Revised in millions Budget at Midyear Beginning Fund Balance 7/1/18 $ 56.4 $ 56.4 Net Activity (10.2) (0.6) Estimated Ending Fund Balance 6/30/19 $ 46.2 1 $ 55.81 Operating Reserve (16.67% operating revenue) $ 42.0 $ 43.4 Economic Uncertainty Reserve (1% revenue) 2.5 2.6 Total Reserve Requirement $ 44.6 $ 46.1 Estimated Ending Fund Balance 46.2 56.1 Excess/(Shortfall) $ 1.6 The City Council's General Fund reserve policy requires an Operating Reserve of 16.67% to 20% of operating revenues or expenditures. The minimum calculated Operating Reserve is $43.4 million (16.67% of $262.6 million revenue, less one-time sale of land). The reserve policy also requires an Economic Uncertainty Reserve of 1% to 10% of recurring revenues. The minimum calculated Economic Uncertainty Reserve is $2.6 million (1% of General Fund revenues). The estimated ending fund balance at June 30, 2019 of $55.8 million is compliant with the General Fund reserve policy when combining both the operating reserve, economic uncertainty and unallocated accounts. Revised Revenue Projections General Fund revenues for FY 2018-19 are projected to total $262.6 million, an increase of $8.5 million from the adopted budget in the amount of $254.1 (total resources, less transfers -in and one-time use of the General fund balance). This includes a $15 million estimate of new Measure X revenue for April through June 2019. Staff has updated revenue estimates based on the Midyear analysis, and recommends budget adjustments for the significant variances (see Exhibit 1). Some updated estimates are insignificant and no budget adjustment is recommended at this time. The City's major revenue sources (Sales Tax -including Measure X, Property Tax, Property Tax - VLF Utility Users Tax, Business License and Hotel Visitors Tax) represent 68% of the total General Fund revenues. Other "Key revenues" for the City, include Cannabis, Jail, Parking Fines, Plan Check and Permitting, which amount to another 14% of the forecasted budget. Revised projections were made for the following revenues sources and are listed: 65C-2 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 3 Sales Tax The Sales Tax revenue estimate has been increased by $3.4 million and the budget will be adjusted accordingly. The updated estimate is largely a result of receiving $1.9 million of previously unprocessed tax returns related to the prior fiscal year; as well as an increasing trend in general retail sales, transportation sales, and construction and business sales. NEW Sales Tax — Measure X (1.5% transactions and use tax) The City's Sales Tax consultant previously provided a revenue estimate of $60 million for annual revenue derived from Measure X. Staff has included $15 million in the adjusted budget for April through June 2019, as the new tax becomes effective April 1st. Staff will provide revenue estimate updates upon receipts of the first revenues expected to occur during June 2019. Utility Users Tax The City's Utility User Tax continues to fall short of budgeted projections specifically within the telecommunication, due to lower than anticipated sales and/or usage related to cellular and landline phones. As such, staff is adjusting the estimated revenue by $2.3 million to offset impact of reduced fees received from telecommunications sector. Business License Tax Business License tax revenue continues to remain steady and is slightly above second quarter projections. The majority of Business License collection occurs in March and April. Based upon activity to date, staff has increased the revenue estimate by $0.8 million for the current year. Hotel Visitor's Tax Hotel Visitor's Tax (HVT) collections are projected to meet or slightly exceed last year's amount of $9.2 million. The City's hotels continue to experience increased occupancy rates. As a result, HVT's collections through December 31, 2018, approximately $4.0 million, mirror the first six months of the previous fiscal year (July 2017 -December 2017). Thus, the forecast for FY 2018- 19 will be increased by $0.8 million (from original budget of $8.5 million to $9.3 million). The forecast reflects the City's new hotel, Holiday Inn, which opened in September 2018 and recent closing of another operated hotel. Another new hotel is still in the preliminary stages and is more likely to impact FY 19-20. Santa Ana Residual Revenue from the Redevelopment Property Tax Trust Fund (update) Because of the refinancing of the former Redevelopment Agency Tax Bonds (2018 Refinancing), the City's is projected to receive up to $3.5 million in increased residual revenue over the next three fiscal years. This is the City's share of the revenue that was formerly tax increment, and is now distributed to taxing entities from the Redevelopment Property Tax Trust Fund. Less of the tax increment revenue is needed to pay for bond debt service; and therefore, more is available to distribute to the taxing entities. Staff has received a preliminary estimate that $1.0 million will likely be received during the next twelve months, but we do not yet have enough information to know if it will impact FY 18-19 or FY19-20. Staff is currently confirming the information with County of Orange. Upon receipt of more information, a report will be provided to City Council for 65C-3 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 4 consideration. Therefore, at this time, the revised General Fund revenue estimate does not yet include the $1.0 million discussed herein. Other General Fund Revenues: Jail Revenue(s) Jail Revenue is projected to meet the revenue estimate of $16.0 million due to continued housing of inmates from both the US Marshals (Los Angeles and San Diego) and Federal Bureau of Prisons. However due to the Federal Government shutdown (Shutdown), the City is not in receipt of $1.3 million in cash (approximate monthly revenue) since December. With the re- opening of government, staff fully expects the City to be made whole. Commercial Cannabis Tax (manufacturing, distribution, testing, etc.) - Revenue has not been received yet, due to the industry being in its infancy stages and businesses have just recently commenced the registration and permitting process. Thus, Staff does not expect to receive the $7.8 million revenue estimate for FY18-19, and is conservatively revising the estimate to $0.6 million. Medical Cannabis - The introduction of the Adult Use Cannabis has affected the Medical Cannabis tax revenue as consumers' activities have shifted away from medical cannabis. Based on receipts to date, staff estimates the revenue derived from Medical Cannabis tax will be $0.8 million less than the original budget amount. Adult Use Cannabis — 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 five months of revenue; however, revenues will continue to be monitored throughout the fiscal year. At this time, staff is not adjusting the revenue estimate of $5.5 million. Parking Fines Revenues received through December 2018 have not met budgeted projections, as maximum parking enforcement staffing levels have not been achieved. Both the Police Department and Human Resources Department(s) will continue to collaborate in recruiting qualified individuals to meet this operational need. Therefore, projected revenues are being reduced by $1.2 million with estimated revenues to be received of $4.1 million. Plan Check and Permit Revenue Plan Check revenue(s) received through December 31, 2018 have exceed the amount collected through December 31, 2017 by approximately $1.0 million. The increase is attributable to an increase in Building Plan Check. Furthermore, Permit Revenue has also exceeded actual revenues collected through December 31, 2018 in the amount of $1.1 million. Both plan check and permitting revenues remain largely cyclical with most revenues collected during the third quarter (January — March) and are also dependent on city-wide development activity. Development projects which commenced during the current fiscal year, such as AMG 65C-4 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 5 Residential Project, Tiny Tim Plaza, Eight Eight 8, and Metro East Mixed Use Overlay have contributed to the increase plan check and permitting revenue(s). The current year budget estimate is aggressive compared to actual FY17-18 receipts, and at this time staff is not comfortable recommending a further increase of the estimated revenue for FY 18-19. Non -General Fund Revenues: Highway Users Fees (Gas Tax) As of January 2019, the League of California Cities fiscal policy consultant has revised statewide estimates related to the following Gas Tax Revenues: Section 2103 $2,616,930 $1,199,846 <$1,400,000> RMRA $5,668,325 $5,363,588 <$305,000> The estimated spendable fund balance at June 30, 2019 will decrease from $14.5 million to $12.8 million for the Special Gas Tax Fund, because of the reduction in revenue (noted above) in the amount of $1.7 million. Staff will continue to monitor any revisions to the projections related to Gas Tax and adjust the current year Capital Improvement Program (CIP) accordingly. General Fund Expenditures Overall General Fund expenditures through December 31, 2018 (July 2018 through December 2018) total $126.0 million, which is a $7.2 million increase from the prior year (Exhibit 3). The increase is largely because of increase of the City's payment to CalPERS for the unfunded liability. Specific expenditures are discussed below. If there is no discussion, then there is no significant variance expected for a budgeted expenditure. Department Expenditure Analysis Police Department overall is under budget (48%) through the second quarter. However, for the first half of the year, the Department has incurred $1.0 million in overtime expenditures that exceed the budget. This is consistent with prior years, where overtime expenditures exceed the budget and staff vacancy savings are used to pay for it. The budget for vacant police officer positions is $2.8 million, which appears to be sufficient to pay for expected overtime in excess of budget during FY18-19 of roughly $2 million. The Police Department expects to hire staff prior to June 30, 2019, and will have the remaining $0.8 million of the $2.8 million available. A majority of departments are trending at or below expenditure norms of forty-nine percent (49%) through the second quarter (July 2018 — December 2018) with the exception of the Fire suppression/EMS Services; City Council; and City Attorney. The current expenditures for the Fire suppression/EMS Services represent seven months of payments during the first half of the year as required by the Orange County Fire Authority contract. Both City Council and City Attorney departments have experienced increases in Salary and Contractual Services during the first quarter respectively. Staff will monitor expenditures in the upcoming quarter. However, at this time, no budget adjustments are proposed. 65C-5 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 6 As a reminder, 2/3 of the Commercial Cannabis tax revenue or $5.2 million was earmarked for Youth and Enforcement programs. No expenditures for Youth Programs and Cannabis Enforcement have been incurred through December 31, 2018, as no Commercial Cannabis tax revenue has been collected. Below is a summary of the Commercial Cannabis revenue and expenditure plan as adopted: Fiscal Year Budget Actual/Expected Revenue 2018-19 $7.8 million $0.6 million Expenditure General Fund 2018-19 <$2.6 million> <$2.6 million> Expense Enforcement 2018-19 <$2.6 million> $0.0 million Expense Recreation 2018-19 <$2.6 million> $0.0 million Finally, there are other projects and budget assumptions have not been implemented through December 31, 2018. Specifically, minimal expenditures have been incurred in the Public Works Agency -Sanitation program related to enterprise compliance through December 31, 2018 budgeted at approximately $1.6 million. In addition, forecasted labor savings of $1.5 million has not been realized and an adjustment to the appropriated budget is recommended. Non -General Fund Expenditures: Gas Tax Expenditures As a result of the lower than anticipated Gas Tax revenues (see above), we will need to reduce the expenditures by the same amount. Staff will work with Public Works to identify the impacted projects. City Services As a result of cannabis enforcement efforts of illegal dispensaries, settlements have been collected in the amount of $137,500. To continue enhancing these efforts, these monies are recommended to be utilized for staff training and contracts related to the cannabis program. As additional fines are collected, these monies will be collected and appropriated in future budget years. General Fund Balance Summary The Fiscal year 2018-19 Budget began with a planned $10.2 million use of General Fund balance. After Midyear revenue and expenditure adjustments, the estimated use of general fund balance has been decreased to $0.6 million, as outlined below. 65C-6 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 7 Summary of Changes to General Fund Net Activity Original Planned Use of Fund Balance $ (10.2) Sales Tax Estimate Increase 3.4 NEW Measure MSales Tax 15.0 Business License Tax Estimate Increase 0.8 Hotel Visitor Tax Estimate Increase 0.8 Utility UserTax Estimate Decrease (2.3) Parking Fines Estimate Decrease (1.2) Medical Cannabis Tax Estimate Decrease (0.8) Commercial Cannabis Tax Estimate Decrease (7.2) Commercial Cannabis Related Expenditures 5.2 Unrealized Cost Savings (1.5) _ Net Impact of Adjustments Priorto Midyear _ (1.6) Midyear Budget Requests (1.0) Revised Net Activity 1 $ (0.6)1 FY 18-19 Mid -Year Budget Adjustments (Exhibit 1) The Mid -Year Budget review provides an opportunity for city staff to review and evaluate current revenue and expenditure trends. The requests by Department are as follows: City Manager's Office Adjustment for $0.4 million (General Fund and Non -General Fund) is requested to fund contractual services related to community outreach and information gathering (Census), support the 150th City Anniversary, office upgrades and computer equipment and support for the cannabis program. Parks, Recreation & Community Agency Adjustment to fund three (3) administrative and inspection positions through the year -ended June 30 by unfunding existing vacancies. The ongoing annual fiscal impact of adding these 3 positions is cost neutral. A resolution will be presented at the February 19, 2019 City Council meeting to reflect the additions of these positions. Planning & Building Agency Adjustment for $0.6 million is requested to fund contract inspectors to reduce backlog in inspections and permitting along with legal expenditures related to work on Special Projects. Additional consulting services will be used to conduct a parking study, develop a billboard ordinance and technology updates for retention of building plans. This request is commensurate with the uptick in expected revenue. 65C-7 Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 8 Police Department Adjustment of $0.02 million is requested to fund the addition of one (1) position and the reallocation of one (1) jail management position. The ongoing annual fiscal impact of these positions is $0.16 million. A resolution will be presented at the February 19, 2019 City Council meeting to reflect the additions of these positions. Human Resources Office Adjustment for $0.1 million is requested to fund the addition of three (3) analytical and administrative personnel and for consulting service related to Executive Recruitments. The ongoing annual General Fund fiscal impact of adding these 3 positions is $0.4 million. A resolution will be presented at the February 19, 2019 City Council meeting to reflect the additions of these positions. FISCAL YEAR 2017-2018 Vacancy Status (Exhibit 7) The City has 214 citywide vacancies across all funds with 134 vacancies in the general fund. Of these 134 vacancies, only 77 were funded in the FYI 8-19 budget. The City Council will have the opportunity to re -visit staffing levels 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 The fiscal impact of the recommended changes outlined in this Midyear report is an improvement of $9.6 million to the General Fund budget, including the new Measure X revenue estimate of $15 million. APPROVED AS TO FUNDS AND ACCOUNTS: 4=�_ �� Kathryn Down6, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Appropriation Adjustment (Fiscal Impact) 2. Revised Revenue Projections — FY 2018-19 3. Revised Appropriated Expenditures — FY 2018-19 4. Additional Requests (Mid -Year) — FY 2018-19 5. Beginning Fund Balance 6. Fiscal Year 2018-19 Mid -Year Budget Update 7. Vacancy Report 65C-8 FY 18-19 Mid -Year Budget Requests EXHIBIT 1 �P`lice Department —-----_, _-- $ —..,`$ 26,535 01114475 61000-61180 Salaries and Benefits $ 10,181 01114400 61000-61180 Salaries and Benefits $ 16,354 _ � _..-_ -� — -_ $ Revenue Expenditures Accounting Unit Account Description Increase/(Decrease) I Increase/(Decrease) hanger's Office _ _ $____, 260,g00j 01103100 62300 Contractuals $ 260,000 Recreation & Community Services 62300 Contractuals $ 01113200 61000-61180 Salaries and Benefits $ 28,333 01113250 61000-61180 Salaries and Benefits $ 65,370 01118180 6100061180 Salaries and Benefits $ (93,703) �P`lice Department —-----_, _-- $ —..,`$ 26,535 01114475 61000-61180 Salaries and Benefits $ 10,181 01114400 61000-61180 Salaries and Benefits $ 16,354 (Human Resources _ � _..-_ -� — -_ $ $— -- 622,000 01116500 62300 Contractuals $ 40,000 01116510 62300 Contractuals $ 170,000 01116520 62300 Contractuals $ 250,000 01116530 62300 Contractuals $ 150,000 01116540 62300 Contractuals $ 162,000 01116520 6100061180 Salaries and Benefits $ (102,000) 01116550 6100061180 Salaries and Benefits $ (48,000) (Human Resources _ � _..-_ -� — -_ $ -- 93,296 1 01109050 62300�Contractuals $ 40,000 01109050 6100061180 Salaries and Benefits $ 53,296 01102002 Total General Fund Department Requests: $ $ 1,001,831 1 City_Manager's Office- NON -GENERAL FUND_ 05303002 55100 Cannabis Fines $ 137,500 05303021 62120/62300 Training/Contractuals $ 137,500 Human Resources _NON_GENERAL FUND —____—__ --- _ _ _ _ _ _ -___� 08009051 6100061180 —Salaries and Benefits � $ 9,810 08209054 6100061180 Salaries and Benefits $ 22,890 !Public Works`NON-GENERAL FUND_(Gas'Tax)__—_—_ 02917002 52320 Highway User Tax Alloc.(Sec. 2103) $ (1,400,000) 02917002 52321 Road Maintenance 8 Rehab (RMRA) $ (305,000) Total Non -General Fund Department Requests: $ (1,567,500) $ 170,200 1 TOTAL DEPARTMENT REQUESTS $ (1,567,500) $ 1,172,031 1 General Fund Budget Revenue andd Expenditure Adjustments — _ _ $ 8,586,199 $_ (3,7 0000 O, 01102002 50020 Sales Tax $ 3,375,298 01102002 50022 Sales Tax - Measure X $ 15,000,000 01102002 50031-50035 Utility Users Tax $ (2,300,000) 01102002 50030 Hotel Visitor's Tax $ 800,000 01102002 50046 Medical Cannabis $ (760,000) 01102002 5110051103 Commercial Cannabis $ (7,175,000) 01102002 50045 Business Tax $ 800,000 01114002 55000 Parking Fines $ (1,154,100) 01113203 69011 Youth Programs/Cannabis Enforcement $ (5,200,000) 01105015 69090 Cost Savings $ 1,500,000 I I GRAND TOTAL: $ 7,018,698 $ (2,527,989) 65C-9 65C-10 N F T00 d. 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'u c v c c c v a O O >> M v c E no v, N p v c v > Y Q U v > O ~ a ° YMO C L m C iO Y co N Cm coO '� 7 aJ t0 c C L Q Y E CU c E c0 '� U� _U Y Y N E C W L � O U G 3 lJ u i2 S d d d a a 65C-31 gI m 65C-32 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: AGREEMENT WITH THE SANTA ANA POLICE OFFICERS ASSOCIATION (SAPOA) {STRATEGIC PLAN NO. 7,4 & 6} CITY MANAGER 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 1. Adopt a Memorandum of Understanding (Attachment 1) with the Santa Ana Police Officers Association (SAPOA) regarding wages and other terms and conditions of employment. 2. Approve an Appropriation Adjustment to fund the estimated first year cost of $4.3 million. (Requires five affirmative votes per City Charter Section 609) DISCUSSION The City and the SAPOA recently completed contract negotiations resulting in a new three-year Memorandum of Understanding (MOU). The MOU covers July 1, 2018 through June 30, 2021. The major provisions of this agreement include: Term: A three-year term, from July 1, 2018 through June 30, 2021. 2. Salary: Effective retroactively to July 1, 2018 and January 1, 2019, the base salary of employees covered by this MOU shall be increased by two and a half percent (2.5%). Effective July 1, 2019, the base salary of employees covered by this MOU shall be increased by four percent (4%). Effective July 1, 2020, the base salary of employees covered by this MOU shall be increased by four percent (4%). The MOU therefore provides for a total increase of 13%. 3. Career Development: Career Development pay for both sworn and non -sworn employees for having certain educational credentials such as a college degree or training units as currently specified in the MOU will be available to all employees in the bargaining unit upon hire with no years of service required for eligibility. 4. Longevity Pay: Effective retroactively to July 1, 2018, longevity pay for sworn employees shall increase from 2.5% to 5% of the base monthly salary step for 15-19 years of service and from 5% to 10% of the base monthly salary step for completion of 20 years of service or more. Longevity credit shall include sworn law enforcement service from any law enforcement agency. On average, this amounts to an increase of $1,310,939. 6513-1 Agreement with SAPOA 2018-2021 February 5, 2019 Page 2 5. Retiree Health Insurance: Effective retroactively to October 1, 2018, the City's contribution toward retiree health insurance shall increase from .75% to 2% of the base salary plus incentives (excluding overtime) for all employees covered by this MOU. The contribution is paid directly to the Santa Ana Police Officers Association which maintains a fund for the purpose of providing retiree health insurance premium reduction assistance. Estimated annual payments to the SAPOA over the term of this agreement will be an increase of approximately $2,059,415. 6. Training Officer Assignment Pay: Effective retroactively to July 1, 2018, employees covered by this MOU who are assigned to the Training Division as the training coordinator shall receive 2.5% above the base monthly salary step. 7. Medical Insurance: Effective July 1, 2019, the City's contribution toward medical insurance shall increase from $1,510 per month to $1,575 per month for all employees covered by this MOU. The contribution for members is paid directly to the Santa Ana Police Officers Association for the purpose of providing health, dental and long-term disability benefits for employees covered by this MOU and their eligible dependents. 8. Vacation Carry -Over: Effective January 1, 2019, any vacation not used by December 31St of each calendar year that is above the maximum carry-over amount shall be cashed out at a straight -time rate. 9. Correctional Officer Special Assignments: Effective January 1, 2019, special assignments for Correctional Officers other than Classification Officer shall be based on seniority, initiated by employees during the shift change sign-up period. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #4, Establish employee compensation that attracts and retains a highly qualified workforce and Objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success. FISCAL IMPACT The estimated cost of this agreement has been summarized below. The estimated cost is based upon the 465 SAPOA positions filled as of March 30, 2018 and does not include the impact to vacant SAPOA positions. 65D-2 Agreement with SAPOA 2018-2021 February 5, 2019 Page 3 in millions Original FY18-19 FY19-20 FY20-21 9-, Totals 2.5% Increase 7/1/18 All POA_ $ 2.0 $ 2.0 $ 2.1 Totals $ 6.1 2.5% Increase 1/1/19 a.a�o Increase 7/1/19 All POA _ All POA 1.2 1.2 3.8 1.3 4.0 (255.3) 3.7 7.8 14.00/a Increase 7/1/20 All POA (12.3) ,Net General Fund Activity 1 3.6 $ (0.6)1 3.6 Longevity Pay Increase 7/1/18 Sworn Only 0.5 0.5 0.6 1.6 Retiree Health Increase 10/1/18 All POA 0.6 0.7 0.7 _ 2.1 Medical Insurance Increase 7/1/19 All POA 0.4 0.4 0.7 Total Additional Costs by Fiscal Year $ 4.3 1 $ 8.61 $ 12.7 1 1 $ 25.6 1 With approval of the MOU, the additional $4.3 million necessary for fiscal year 2018-19 will be appropriated in the applicable personnel accounts, as shown below. If the MOU is approved, the proposed budgets for fiscal years 2019-20 and 2020-21 will include the increased compensation to comply with the MOU. Funding for SAPOA employee compensation is primarily paid by the General Fund. The estimated fiscal impact to the General Fund is outlined below. inmillions Original FY18-19 FY19-20 FY20-21 F$E24. General Fund 9-, $ 4.2 $ 8.4 $ 12.3 Approval Ot�Funds 2.8% 0.1 0.2 0.4 0.7 Totals 0.3 1$ 4.31$ 8.61$ 12.71 _� I$25.6I SAPOA salary and benefits are recorded in the 61000 series expenditure accounts of: • 24 General Fund programs in the Police Department series 011144; • Special Revenue Funds - Police Special Revenue General 02414400, Police Special Revenue Programs 02414410, Civic Center Security 07414400, Urban Areas Security Initiative 12514407 and 12514491, COPS Hiring Grants 12714409 and 12714406, Supplemental Law Enforcement Services Account 12814407, and Equitable Sharing DOJ 16614455; and • Enterprise Fund for Parking - Downtown Enhancement 02710133. The Midyear Budget Report is included on this same City Council agenda. If the MOU is approved, an updated overview of the General Fund budget is outlined below. in millions Original I Revised With MOU _ Fiscal year 2018-19 Budget at Midyear Approval Estimated Revenue $ 254.1 $ 262.6 $ 262.6 _ _ Transfers In 0.3 0.3 0.3 Appropriated Expenditures (252.3) (251.1) (255.3) Transfers Out (12.3) (12.3) (12.3) ,Net General Fund Activity 1 $ (10.2)1 $ (0.6)1 $ (4.8)1 65D-3 Agreement with SAPOA 2018-2021 February 5, 2019 Page 4 We began fiscal year 2018-19 with a budgeted $10.2 million use of the General Fund balance. With updated revenue estimates (including Measure X) and proposed amendments to appropriated expenditures at Midyear, and the additional cost of this MOU, the use of the General Fund balance is expected to decrease to $4.8 million for fiscal year 2018-19. The estimated impact to the projected General Fund balance at June 30, 2019 and the City Council policy reserve requirement is outlined below. Unless the structure of the General Fund budget is changed for fiscal year 2019-20 and beyond, the SAPOA employee compensation increase and any other increases negotiated by labor groups may be funded by Measure X revenue in future years. The MOU includes salary adjustments retroactive to July 1, 2018, as opposed to salary increases becoming effective upon approval of the agreement. The City's payroll system is aged; and due to the complexity of SAPOA employee compensation, retroactive pay must be manually calculated for 465 employees. The retroactive calculation is further complicated by schedule changes and overtime pay reported after each pay period. In addition, the CaIPERS pension reports will need to be resubmitted for each semi-monthly pay period (a total of approximately 288 hours of staff time, or one dedicated payroll employee for more than 7 weeks with no interruptions). Due to these factors, we expect to process SAPOA salary increases by the end of March 2019 and retroactive payments by the end of June 2019. The upgrade of the payroll system will be placed on hold until the retroactive calculations and CaIPERS reporting are complete. Once the payroll system upgrade resumes (likely in July 2019), the project may be completed by the end of fiscal year 2019-20. Unfortunately, the current payroll system will no longer be supported by the software company as of March 31, 2019, and the City's payroll system will be at risk of failure until the upgrade is complete. 6501-4 Original Revised With MOU in millions Budget at Midyear Approval Beginning Fund Balance 7/1/18 $ 56.4 $ 56.4 $ 56.4 Net Activity (10.2) (0.6) (4.8) _ Estimated Ending Fund Balance 6/30/19 $ 46.2 $ 55.8 $ 51.6 Operating Reserve (16.67% operating revenue) 1 $ 42.0 $ 43.4 $ 43.4 Economic Uncertainty Reserve (1% revenue) 2.5 2.6 2.6 Total Reserve Requirement $ 44.6 $ 46.1 $ 46.1 Unless the structure of the General Fund budget is changed for fiscal year 2019-20 and beyond, the SAPOA employee compensation increase and any other increases negotiated by labor groups may be funded by Measure X revenue in future years. The MOU includes salary adjustments retroactive to July 1, 2018, as opposed to salary increases becoming effective upon approval of the agreement. The City's payroll system is aged; and due to the complexity of SAPOA employee compensation, retroactive pay must be manually calculated for 465 employees. The retroactive calculation is further complicated by schedule changes and overtime pay reported after each pay period. In addition, the CaIPERS pension reports will need to be resubmitted for each semi-monthly pay period (a total of approximately 288 hours of staff time, or one dedicated payroll employee for more than 7 weeks with no interruptions). Due to these factors, we expect to process SAPOA salary increases by the end of March 2019 and retroactive payments by the end of June 2019. The upgrade of the payroll system will be placed on hold until the retroactive calculations and CaIPERS reporting are complete. Once the payroll system upgrade resumes (likely in July 2019), the project may be completed by the end of fiscal year 2019-20. Unfortunately, the current payroll system will no longer be supported by the software company as of March 31, 2019, and the City's payroll system will be at risk of failure until the upgrade is complete. 6501-4 Agreement with SAPOA 2018-2021 February 5, 2019 Page 5 Steven V. Pham Executive Directgf Human Resources Department APPROVED AS TO FUNDS AND ACCOUNTS: 9�4�� K hryn Downs, CPA Executive Director Finance and Management Services Exhibit: 1. SAPOA MOU for July 1, 2018 through June 30, 2021 65D-5 ,; M MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA l3klul THE SANTA ANA POLICE OFFICERS ASSOCIATION JULY 19 2018 - JUNE 309 2021 65D-7 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA POLICE OFFICERS ASSOCIATION FOR FISCAL YEARS 2018-21 TABLE OF CONTENTS ARTICLE I RECOGNITION 1 ARTICLE II NON-DISCRIMINATION CLAUSE 2 ARTICLE III ATTENDANCE, WORK PERIOD, WORK SCHEDULE & WORKDAY 3 ARTICLE IV SALARIES 8 ARTICLE V ASSIGNMENT AND OTHER SPECIAL PAY ADDITIVES 13 ARTICLE VI CAREER DEVELOPMENT PROGRAM 19 ARTICLE VII TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM 23 ARTICLE VIII OVERTIME 26 ARTICLE IX HOLIDAYS 33 ARTICLE X VACATION 35 ARTICLE XI OTHER LEAVES OF ABSENCE 39 ARTICLE XII EMPLOYEE INSURANCE 47 ARTICLE XIII RETIREMENT 49 ARTICLE XIV RELEASE TIME FOR ASSOCIATION REPRESENTATIVE 52 ARTICLE XV RESIDENCY 54 ARTICLE XVI DISCIPLINE 55 ARTICLE XVII GRIEVANCE REVIEW PROCEDURE 57 ARTICLE XVIII DUES DEDUCTION AND INDEMNIFICATION 60 ARTICLE XIX CITY RIGHTS 61 ARTICLE XX STRIKES AND WORK STOPPAGES 63 ARTICLE XXI LAYOFFS 64 ARTICLE XXII SOLE AND ENTIRE AGREEMENT 65 ARTICLE XXIII WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 66 ARTICLE XXIV SEPARABILITY PROVISION 67 ARTICLE XXV TERM OF MOU 68 EXHIBIT A BASIC SALARY AND WAGE SCHEDULE MATRIX 71 EXHIBIT B UNIFORM ALLOWANCE BY CLASSIFICATION 73 ro o• W ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provisions of the Meyers-Milias-Brown Act, Government Code Section 3500, et seq., the City of Santa Ana (hereinafter called the "City") has recognized the Santa Ana Police Officers Association (herein called the "Association") as the recognized representative of the bargaining unit which includes full-time police department employees in the sworn, "safety -member" classifications and assignments of Police Officer, Police Sergeant, and full-time police department employees in the non -sworn, "miscellaneous -member" classifications and assignments of Animal Service Officer I and II, Background Investigator, Communications Services Officer, Correctional Officer, Correctional Supervisor, Crime Research Aide, Crime Research Analyst, Emergency Operations Coordinator, Firearms Examiner, Forensic Services Supervisor, Forensic Specialist I and II, Parking Control Officer, Police Athletic/Activities League Assistant Director, Police Communications Supervisor, Police Community Services Specialist, Police Evidence and Supply Specialist, Police Evidence and Supply Supervisor, Police Investigative Specialist, Police PhotoNideo Specialist, Police Property and Evidence Supervisor, Police Recruit, Police Service Officer, Police Services Dispatcher, Range Master, Senior Parking Control Officer, and Traffic Services Specialist, as well as such classifications as may be added hereafter by resolution of the City Council. All other classifications not specifically listed are excluded from representation by the Association. 1 65D-9 ARTICLE II 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and Association agree that they shall not discriminate against any employee in violation of State or Federal law. The City and the Association shall reopen any provision of this MOU for the purpose of complying with any order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provisions of this MOU in compliance with State or Federal anti -discrimination laws. 2.2 Whenever reference is made to the masculine gender, it shall be understood to include the feminine gender, unless expressly stated otherwise. 65D-10 3.1 3.2 ARTICLE III 3.0 ATTENDANCE, WORK PERIOD, WORK SCHEDULE & WORKDAY Attendance. Employees covered by this MOU shall be in attendance at their work location during hours prescribed by the Police Chief or his designee(s) and shall not absent themselves during prescribed hours without approval of the Police Chief or his designee(s). Definitions. A. Standard Work Period. The Standard Work Period shall consist of a consecutive seven (7) day, 168 hour period. B. Alternative Work Period -207(k) Exemnt Emnlovees. The Alternative Work Period shall apply to all members of the Association who are peace officers, correctional officers or correctional supervisors who are subject to the partial overtime exemption provided by the Fair Labor Standards Act (FLSA) pursuant to Section 207(k). The 207(k) employees' Work Period shall consist of a consecutive 28 day, 672 hour time period. In conformance with the FLSA, members who are peace officers, correctional officers, or correctional supervisors shall not be eligible for FLSA overtime, as defined under the FLSA for employees assigned to the Alternate Work Period until they have worked in excess of 171 hours in the Alternate Work Period. Nothing in this section shall prevent a peace officer, correctional officer or correctional supervisor from earning overtime and being compensated for overtime based on the overtime provisions as stated in Article VIII of this MOU. All overtime shall be paid at one and one-half (1 1/2) times the regular rate of pay. Regular Rate of Pay: Shall mean the base rate of pay and any Assignment and Other Special Pay Additives, Career Development Program Pay, Call -Back -Duty and Court Appearance pay as listed in Article V, VI and VIII. C. Work Hours. Work hours are the regularly scheduled hours of work as determined by the Police Chief or his designee. A "day" is defined as any consecutive 24 hour period. D. Work Schedules. At this time, the Police Chief has established the following work schedules. These schedules may be changed by the Police Chief based on operational need. The City will negotiate over any impacts of schedule changes. Standard Work Period Schedules. a. 5/40 Work Schedule. Employees shall work five (5) eight hour workdays per seven (7) consecutive days, 168 hour Standard Work Period. Each workday shall consist of eight (8) hours of work and a 30 minute unpaid meal period. b. 4/10 Work Schedule. Employees shall work four (4) 10 hour days 65D-11 2. per seven (7) consecutive days, 168 hour Standard Work Period. Each workday shall consist of 10 hours of work, and either a 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. C. 9/80 Work Schedule. Employees shall work four (4) nine hour days and one (1) four hour day in each seven (7) consecutive days, 168 hour Standard Work Period. Each nine (9) hour workday shall consist of nine (9) hours of work and either a 30 minute or one (1) hour unpaid meal period. For employees who work a 9/80 work schedule, their FLSA work period shall begin exactly four hours after the start time of their eight hour workday. The eight hour workday shall be divided by either a 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. d. 12/40 Work Schedule. Employees shall work three (3) 12 hour and 30 minute workdays and one (1) four hour workday in each seven (7) consecutive day, 168 hour Standard Work Period. Each workday shall consist of 11 hours and 30 minutes of work, and a one (1) hour meal period, 30 minutes of which shall be paid and 30 minutes of which shall be unpaid, for a total of 12 hours and 30 minutes. The four (4) hour workday shall consist of four (4) hours of work. Alternate Work Period Schedules -207(k) Exempt Employees. a. 207(k) 3/12.5 Work Schedule — Patrol/Canine. Employees shall work thirteen 12 hour and 30 minute workdays in each 28 day FLSA Work Period. Of the 13 workdays, an employee assigned to this schedule shall be required to work one (1) 12 hour and 30 minute "payback" day each 28 day FLSA Work Period, scheduled or assigned pursuant to the Department's work schedule policy. Each workday shall consist of 12 hours of work and a 30 minute paid meal period. During each 28 day FLSA Work Period, employees shall work 162.5 hours. Upon completion of this work schedule, employees will earn an additional two (2) hours and 30 minutes of vacation time, provided they do not take leave without pay during that Work Period. Employees assigned to this schedule are compensated for their meal periods. Consequently, if an employee is unable to take his or her meal period, or is interrupted during his or her meal period, he or she shall not receive further compensation. b. 207(k) 7/12.5 Work Schedule - Detention. Employees shall work three (3) 12 hour and 30 minute workdays in one (1) seven day 65D-12 period and four (4) 12 hour and 30 minute workdays in the next seven (7) day period, or alternatively, four (4) 12 hour and 30 minute workdays in the first seven (7) day period and three (3) 12 hour and 30 minute workdays in the following seven (7) day period. This cycle shall be repeated twice each 28 day FLSA Work Period. Each workday shall consist of 11 hours and 30 minutes of work and a one (1) hour meal period, 30 minutes of which shall be paid and 30 minutes of which shall be unpaid, for a total of 12 hours and 30 minutes. During each 28 day FLSA Work Period, employees assigned to the 207(k) 7/12.5 Work Schedule shall earn one (1) hour of vacation time if they do not take leave without pay during that Work Period. Correctional Officers will be compensated at the time and a half overtime rate for all time worked in excess of their regular work shift of 12.5 hours per workday. The overtime compensation will apply only to actual time worked beyond the regular shift and calculated in increments of six (6) minutes. C. 207(k) 4/10.5 Work Schedule -Detention Administration. Employees shall work seven (7) ten hour and 30 minute workdays and one (1) ten hour workday during each two (2) week period. This pattern will recur twice during the 28 day FLSA Work Period. Each 10 hour and 30 minute workday shall consist of 10 hours and 30 minutes of work and either a 30 minute or one (1) hour unpaid meal period. The 10 hour workday shall consist of 10 hours of work and either a 30 minute or one (1) hour unpaid meal period. The determination as to a thirty (30) minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. d. 207(k) 4/10 Work Schedule. Employees shall work 16 ten hour workdays in each 28 day FLSA Work Period. Each workday shall consist of 10 hours of work and either a 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by the Police Chief or his designee. e. 207(k) 9/80 Work Schedule. Employees shall work five (5) nine hour workdays in one (1) seven (7) day span and three (3) nine hour workdays and one (1) eight hour workday in the second seven (7) day span, or alternatively three (3) nine hour workdays and one (1) eight hour workday in the first seven (7) day span and five (5) nine hour workdays in the second span. This cycle shall be repeated twice each 28 day FLSA Work Period. Each nine (9) hour workday shall consist of nine (9) hours of work and either a 30 minute or one (1) hour unpaid meal period. The eight (8) hour workday shall consist of eight (8) hours of work and either a 30 minute or one (1) hour unpaid meal period. The determination as to a 30 minute or one (1) hour unpaid meal period shall be made by 5 the Police Chief or his designee. 207(k) 9/81 Work Schedule. Employees shall work 81 hours in a consecutive 14 day, 336 hour period. This cycle shall be repeated twice each 28 day FLSA Work Period. Employees shall work five (5) nine hour workdays in one (1) seven (7) day span and four (4) nine hour workdays in the second seven (7) day span. Each nine hour workday shall consist of nine (9) hours of work and either a 30 minute or one (1) hour unpaid meal period. While assigned to the 9/81 schedule, an officer shall earn two (2) hours of overtime during each 28 day FLSA Work Period, unless he or she takes leave without pay during the 28 day, 672 hour period. During the term of this agreement upon request from the City, the Union agrees to a reopener to discuss changes to the schedules listed above. 3.3 Part Time Employment. During the term of this MOU, no presently existing full-time positions will be eliminated as the result of the use of part-time employee(s) and, to the extent possible, when the workload of any one or more part-time employee(s) would justify the addition of a full-time position or positions, the parties will meet and confer regarding the addition of a full-time position or positions, subject to City Council approval. 3.4 Code Seven. Except for those employees assigned to Patrol, other employees who do not receive a paid meal period whose meal periods are interrupted by the performance of job related duties, will receive another full, uninterrupted meal period or will be compensated for their meal period at their overtime rate of pay at time and one-half their regular rate of pay. For purposes of this section, "interrupted" shall mean a significant interruption of more than a few minutes (de minimis). For employees who receive a one-hour lunch period (half of which is paid) overtime compensation shall apply only to the unpaid half- hour. Unless exigent circumstances exist beyond the Department's control, employees assigned to Patrol shall be provided a 30 minute paid meal period. Should an employee's meal period be interrupted, every effort shall be made to allow the affected employee to resume his/her meal period for the remaining unused time, not to exceed the 30 minute total meal period. 3.5 Detective Redeployment All employees assigned as detectives (investigators) shall work one (1) day per month in the patrol function of the Field Operations Bureau pursuant to a schedule as determined by the Chief of Police or his designee. Once each calendar year the Chief of Police shall conduct a review of the organization of the Police Department to determine whether positions and assignments currently in the Investigations Bureau represent a deployment of resources that best enables the department to provide police services to the city. The Chief of Police may, as a result of this review, remove positions and assignments 65D-14 from the Investigations Bureau and assign them, and the individuals who occupy them, to other bureaus or eliminate them and assign the individuals who occupy them to other positions and assignments in the department. The annual review and any re -assignment made as a result of the review shall be completed, including the appeal thereof outlined below, sufficiently in advance of the annual patrol deployment sign-up to enable those who will be assigned to Patrol to make use of their seniority when choosing patrol shifts and days off. Any employee who is informed that he or she will be removed from the Investigations Bureau and lose the Investigations assignment pay differential may appeal to the Chief of Police. Said appeal constitutes the sole administrative appeal of the Chiefs decision, shall be conducted in an informal manner and the decision of the Chief shall be final. 7 65D-15 ARTICLE IV 4.0 SALARIES 4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all members of the Santa Ana Police Officers Association who are now employed or will in the future be employed in any of the designated classifications of employment listed in this MOU and its attachments. 4.2 Salary Schedule. The basic salary schedule, attached hereto in a matrix format as Exhibit "A", and made a part hereof as though set forth in full herein, provides numerous salary rate ranges, each comprised of five (5) steps or rates of pay. The respective rate ranges are identified by a three (3) digit number. The steps within each range are identified by the letters "A" through "E" inclusive, with the "A" step being the lowest step in the range. The purpose of each step and the length of service required for advancement to the next higher step within a particular salary rate range is summarized as follows: Step A Normal beginning pay rate Step B Automatic Increase — After 6 months' service in next lower step. Also optional hiring rate Step C Automatic Increase — After 12 months' service in next lower step. Also maximum hiring rate Step D Automatic Increase—After 12 months' service in next lower step. Step E Merit Rate — After 12 months' service in next lower step. Specific regulations governing advancement within salary rate ranges are set forth in Section 4.8 of this MOU. The assignment of classes to salary rate ranges is listed in the City's salary schedule and class and compensation plan as periodically amended. During the term of this MOU, it is the City's intent to eliminate the salary matrix and create a salary schedule. The parties acknowledge and agree that elimination of the salary matrix and implementation of the salary schedule is a meet and confer issue. Once the City is ready to move forward with elimination of the salary matrix and creation of the salary schedule, it will provide its proposal to the Association and the parties will promptly meet and confer and no change will be made until the negotiations process has been completed. The parties acknowledge that such a change will require modification to language in several provisions of this MOU. 4.3 Salary Adjustments. Although there are some retroactive compensation adjustments included in this 2018- 2021 MOU, all compensation adjustments provided for in this MOU shall apply only to those employees who are employed on the day in which the City Council approves this MOU. This applies to compensation adjustments in any Article of this MOU. Effective in the pay period, which includes July 1, 2018, the base salary of employees 65D-16 covered by this MOU shall be increased by five (5) salary rate ranges (approximately 2.5%). Effective in the pay period, which includes January 1, 2019, the base salary of employees covered by this MOU shall be increased by five (5) salary rate ranges (approximately 2.5%). Effective in the pay period, which includes July 1, 2019, the base salary of employees covered by this MOU shall be increased by eight (8) salary rate ranges (approximately 4.0%). Effective in the pay period, which includes July 1, 2020, the base salary of employees covered by this MOU shall be increased by eight (8) salary rate ranges (approximately 4.0%). 4.4 Longevity Pay. Effective July 1, 2018 sworn employees will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her base monthly salary step for the completion of 15 years of law enforcement service through 19 years of service. At the beginning of 20 years of law enforcement service or more, sworn employees will be paid an additional rate set ten (10) salary rate ranges (approximately 5%) above his or her base monthly salary step. 4.5 Application of Basic Compensation Plan. The salary rate ranges and steps contained in Exhibit A are monthly salary rates. All officers and employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, except that an employee hired for temporary work in a position which has an anticipated duration of less than six (6) months shall be paid at. a rate per hour for actual time spent in the performance of the duties of his or her employment. Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate plus pay additives by 173.33. In determining the hourly rate as herein provided, computation shall be made to the nearest whole cent and a computation resulting in exactly one-half cent or higher shall fix the rate at the next higher whole cent. 4.6 Beginning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "A" in the salary rate range allocated to the class of employment for which he or she has been hired. In special instances where such new employee possesses unique and exceptional education, training and/or experience qualifications, the department head under whom the employee will serve, may submit a written request and justification to the City Manager for authorization to place such new employee on Step "B" or Step "C" within the allocated salary rate range, provided that such employee shall be assigned such salary step upon the commencement of his or her service in the classification of employment to which the salary rate range applies and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article. 4.7 Service. The word "service" as used in this MOU shall be deemed to mean continuous, full-time service in the classification in which the officer or employee is being considered for salary advancement, service in the higher classification or service in a classification 65D-17 allocated to the same salary rate range and having generally similar duties and requirements. Employees hired after the first (1 st) working day of the month shall not be credited with "time -in-service" for that month when determining the length of service required for salary step advancement. A lapse of service by an officer or employee for a period of time longer than thirty (30) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such officer or employee for the purpose of this MOU and any such officer or employee reentering the service of the City shall be considered as a new officer or employee, except that he or she may be reappointed within one (1) year and may be placed in the same salary step in the appropriate salary range as he or she was at the time of termination of employment. 4.8 Advancement Within Ranges. The following regulations shall govern salary advancement within rate ranges: A. Length of Service Advancements. After the salary of an officer or employee has been first established and fixed under this plan, such officer or employee shall be advanced from Step "A" to Step "B" or from Step "B" to Step "C" or from Step "C" to Step "D," whichever is the next higher step to that on which the officer or employee has been previously paid, effective the first day of the month following the date of completion of the length of service for such advancement as provided in Section 4.2 of this MOU. B. Merit Advance. An officer or employee shall be considered for advancement from Step "D" to Step "E" upon the completion of 12 months' the required length service as provided in Section 4.2 of this MOU. The effective date of such merit increase, if granted, shall be on the fust day of the month following the completion of 12 months' service. Advancement to Step "E" may be granted only for continued meritorious and efficient service and continued improvement by the officer or employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: 1. There shall be on file in the office of the chief personnel officer a copy of each periodic efficiency or performance report required to be made on the officer or employee by the Santa Ana Municipal Code and/or the City Manager during the period of service time of such officer or employee subsequent to this last salary advancement. 2. The Police Chief, at least twenty (20) calendar days prior to the anticipated completion of such officer's or employee's required length of service, shall file with the City Manager a statement recommending the granting or denial for the merit increase and supporting such recommendations with specific reasons therefore. 3. No advancement in salary above Step "D" shall become effective until approved by the City Manager, except when placement on a salary step above Step "D" results from promotion under the provisions of Section 4.10 of this Article. 10 65D-18 C. Length of Service Required When Advancement Denied. When an officer or employee has not been approved for advancement to the merit step E, he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for such advancement after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the same actions as provided in Subparagraphs B (2) and B (3) of this Section. 4.9 Reduction in Salary Steps. Any officer or employee who is being paid on merit step E may be reduced to Step 'D" of the appropriate salary range, upon the recommendation of the Police Chief, and the approval of the City Manager. Procedure for such reduction shall follow the same procedure as outlined for merit advancements in Section 4.8 above, and such officer or employee may be considered for re -advancement under the same provisions as contained in Subsection C of Section 4.8. 4.10 Promotional Salary Advancement. When an officer or employee is promoted to a position in a higher classification from a position in a lower classification in the same occupational career ladder, he or she shall be reassigned to Step "A" in the appropriate salary rate range for the higher classification; provided however, that if the base salary step currently being paid such officer or employee is already equal to or higher than said Step "A," he or she will be placed in the lowest step in the appropriate salary rate range as will grant that officer or employee an increase of at least one (1) salary step (approximately 5%) over his or her current base salary step including all assignment pay, pay additives, and premiums in place at the time of promotion. Pay additives which the employee is currently receiving and for which the employee is eligible in the new classification shall not be included in determining the starting point. 4.11 Demotion. When an officer or employee is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification in accordance with the following provisions: A. The salary rate shall be reduced by at least one (1) step. B. The new salary rate must be within the appropriate salary rate range. C. The new salary rate shall not be higher than the salary step to which the officer or employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. D. If the salary rate recommended by the Police Chief is lower than the maximum step permissible under Subsection C above, such recommendation shall be considered a reduction in pay in addition to the demotion and shall be handled in accordance with the provisions for salary reductions (Section 4.9, above). 4.12 Reallocation of Salary Rate Ranges. Any officer or employee who is employed in a classification which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in 11 65D-19 such step towards advancement to the next higher step. 12 65D-20 ARTICLE V 5.0 ASSIGNMENT AND OTHER SPECIAL PAY ADDITIVES 5.1 Assignment Pay Differentials. Assignment pay differentials, as listed herein and throughout the contract, will, in each case, be added individually and separately to the employee's base salary. In no event shall one assignment pay differential be added to the employee's base salary as a basis for the calculation of an additional pay differential. A. An incumbent in the class of Police Services Dispatcher who is continuously and regularly assigned to and actually performing in a lead supervisory and trainer capacity over an assigned shift of Police Services Dispatchers will be paid at a rate set ten (10) salary rate ranges (approximately 5.0%) above his or her then current base monthly salary step. B. Personnel in the class of Forensic Specialist I, who are regularly and continuously assigned to and actually performing duties in a "lead" supervisory capacity over a primary functional unit of Forensic Specialist I employees, will be paid at a rate set ten (10) salary rate ranges (approximately 5.0%) above their then current base monthly salary step. C. An incumbent in the class of Police Officer who is continuously and regularly assigned to and actually performing duties of a Corporal will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. If a Corporal is assigned to lead a work unit without a Sergeant, he or she will be paid an additional five (5) salary rate ranges (approximately 2.5%) above his or her base monthly salary step for such assignment. At the present time, Directed Patrols and Civic Center Patrol units are examples of such assignments. D. An incumbent in the class of Correctional Officer who is continuously and regularly assigned to and actually performing duties of a Senior Correctional Officer will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. E. The Police Chief at his discretion and based on the department's need may assign sworn officers to standby status for non -work days or other days as determined by the Police Chief. Officers thus assigned will be compensated at the rate of two (2) hours of straight time per day of standby duty. Officers assigned to standby status on non -work days will not lose their standby pay when called to duty, if they have been on call for at least six (6) hours when called. If officers on standby status are called to duty after having been on call for less than six (6) hours, they will be paid for their response to work, but not for their standby status. Employees on standby status shall provide the department with a telephone number at which he/she can be reached. The employee must be able to return to the department 13 65D-21 within the amount of time he/she would be able to return if traveling from home. An employee on standby/on-call shall remain fit for duty. Employees on standby are also subject to the requirements of the Investigations Bureau Order # 09, which sets forth the guidelines for standby status. F. An employee who is continuously and regularly assigned as a Training Officer working in Field Operations, the Detention facility, as a Forensic Specialist H, or as the Training Coordinator will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. G. An employee who is continuously and regularly assigned to and actually performing duties of an Internal Affairs Officer will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. H. An employee who is continuously and regularly assigned to perform training functions as a Parking Control Officer will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. Effective July 1, 2018, a Police Officer who is continuously and regularly assigned as a Canine Officer will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. This pay shall be considered compensation for the care and feeding of the dog off-duty and is for the thirty (30) minutes of time each day for such purpose. The City and. the Association understand and agree that this additional compensation is intended to compensate canine officers for all off duty hours spent caring, grooming, feeding and otherwise maintaining their canine unit, in compliance with the FLSA. The parties acknowledge that the FLSA, which governs the entitlement to compensation for canine duties, entitles the parties to agree to a reasonable number work hours for the performance of off duty canine duties. The work hours (30 minutes per day) derived at in this agreement were determined after an actual inquiry of the officers assigned in the canine assignment as addressed by Leaver v. City of Carson City, 360 F.3d 1014 (9`h Cir. 2004). It is the intent of the parties through the provisions of this section to fully comply with the requirements of the FLSA. In addition, both parties believe that this section of the MOU does comply with the requirements of the FLSA. J. A Police Officer who is continuously and regularly assigned to and actually performing duties of a Motor Officer assigned to the Traffic Division will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary, step. The City and the Association understand and agree that this additional compensation is intended to compensate Motor Officers for all off duty hours 14 65D-22 spent maintaining their Motor, in compliance with the FLSA. K. An incumbent, identified by the Police Department, who is continuously and regularly assigned to and actually performing duties of a Detective/Investigator assigned to the Investigations Division or Special Investigations Units as well as Police Investigative Specialist, Background Investigator, Collision Investigator, and Graffiti Task Force Investigator, will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. L. Employees in the class of Correctional Officer or Correctional Supervisor, who are continuously and regularly assigned to either the 207(k) 7/12.5 Corrections Work Schedule, or the 4/10.5 Corrections Administration Work Schedule, shall be paid at a rate set six (6) salary rate ranges (approximately 3%) above his or her then current base monthly salary step. This assignment pay is compensation for the additional 30 minutes work or briefing time each day. Ca1PERS has determined this pay additive does not qualify as special compensation under CCR 571(a) and as such, is not reportable as final compensation when calculating retirement benefits. M. Personnel in the class of Firearms Examiner who are regularly and continuously assigned to and actually performing duties in a "lead" supervisory capacity over a primary functional unit, will be paid at a rate set ten (10) salary rate ranges (approximately 5.0%) above their then current base monthly salary step. N. Notwithstanding the specific provisions of Article V, Section 5.1, A — M, an incumbent who is. regularly, and continuously assigned to lead a functional unit which includes positions in the same or lower classifications as the incumbent, may be compensated for said duties upon mutual agreement of the City and POA and approval of the Police Chief and the Executive Director of Personnel Services. This compensation shall be referred to as "lead pay." O. An incumbent in the class of Forensic Specialist I or Forensic Specialist H who is continuously and regularly assigned as a Tenprint — AFIS Technician will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. P. An incumbent in the class of Forensic Specialist I or Forensic Specialist H who is continuously and regularly assigned as a Fingerprint Analyst will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. In no event shall an incumbent receive more than ten (10) salary rate ranges (approximately 5%) more than his or her then current base monthly salary step for performing the duties of both the Tenprint — AFIS Technician and Fingerprint Analyst. 5.2 Shift Differential, A. Non -Sworn Personnel. Each employee in the classes of Animal Service Officer I, 15 65D-23 Animal Service Officer II, Forensic Specialist I, Crime Research Analyst, Forensic Specialist II, Police Communications Supervisor, Police Investigative Specialist, Police Property & Evidence Specialist, Police Service Officer, Police Evidence and Supply Specialist, Police Services Dispatcher, Communications Services Officer, Correctional Officer, Correctional Supervisor and Parking Control Officer who is continuously and regularly assigned to a schedule of work which requires that he or she actually work a minimum of four and one-half (4 1/2) hours between the hours of 5:00 P.M. and 7:00 A.M. will be paid a shift differential at a rate set ten (10) salary rate ranges (approximately 5.0%) above his or her then current base monthly salary step. B. Each Sworn employee covered by this Agreement who is continuously and regularly assigned to a schedule of work that requires that he or she actually work a minimum of four and one-half (4 %) hours between the hours of 5:00 P.M. and 7:00 A.M. will be paid a shift differential at a rate set at five (5) salary rate ranges (approximately) 2.5% above his or her base monthly salary. 5.3 Bilingual Pav. Qualified employees who meet the following criteria shall be paid a monthly pay differential, above his or her base monthly salary step, as follows: A. Assignment by the Police Chief or his designee to a position requiring bilingual capability in both English and any other languages designated by the Orange County Registrar of Voters as necessary for official voting information and or Federal Voting Rights Act; and B. Certification by the.chief personnel officer as having satisfactorily demonstrated the required level of fluency in both languages. C. Sworn: Street Level Proficiency in Spanish. A Police Officer or Sergeant who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a bilingual pay differential in an amount equal to the product obtained by multiplying the Step "E" base salary rate of Police Officer by five (5) salary rate ranges (approximately 2.5%). Employees receiving "Street Level Proficiency" incentive pay may be required, as a condition of continued eligibility to receive such incentive pay, to successfully complete an eight (8) hour refresher course once every twelve months from the date of initial certification. D. Sworn: Complex Level Proficiency in Designated Languages. A Police Officer or Police Sergeant who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a bilingual pay differential in an amount equal to the product obtained by multiplying the Step "E" base salary rate of Police Officer by ten (10) salary rate ranges (approximately 5%). E. Non -Sworn: Secondary Level Proficiency in Designated Languages. A non - 16 65D-24 sworn employee who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a monthly differential of forty dollars ($40) above his or her then current base monthly salary step. F. Non -Sworn: Primary Level Proficiency in Designated Languages. A non -sworn employee who successfully demonstrates the required level of bilingual fluency as determined by the chief personnel officer shall be paid a monthly differential of one hundred seventy-five dollars ($175) above his or her then current base monthly salary step. 5.4 All assignments to positions set forth in Sections 5.1, 5.2, 5.3 above of sworn and non - sworn personnel shall be made or revoked in a fair manner at the discretion of the Police Chief. 5.5 Temporary Upgrade Assignment Pay. The parties acknowledge that from time to time it may be necessary for the department to fill a temporarily vacant, full-time budgeted, higher-level position due to the temporary absence of the incumbent. The parties agree that such a position may be filled by an eligible unit member for an initial period of up to six (6) months, and at the discretion of the Chief of Police, for an additional six (6) months; and that the employee assigned to fill such a position shall receive Temporary Upgrade Assignment Pay as set forth below: A. Eligibility. Full -rime employees shall be assigned to fill a vacant, full-time budgeted, higher- level position, and shall receive Temporary Upgrade Assignment Pay for filling that position, when the occupier of that position is not performing the duties of that position for a period of two (2) consecutive calendar weeks or more. An employee filling a position under this section who is absent for two (2) days or less during the two (2) consecutive calendar week period will not lose his or her eligibility for Temporary Upgrade Assignment Pay; however, the days of absence shall not be counted in the computation of the two week period. In computing qualifying service or temporary upgrade assignment pay, only full days of actual duty shall be included. Partial days shall not be combined to make full days unless they are holiday hours. Holiday time off will be included in computing actual duty days. Employees holding the position immediately subordinate to the vacant, full-time, budgeted, higher-level position to be filled shall be given first consideration to said position consistent with the operational needs of the department. When there is more than one (1) employee holding the position immediately subordinate to the vacant, full-time, budgeted, higher-level position to be filled, the most senior employee holding one of the immediately subordinate positions shall be assigned to said position consistent with the operational needs of the department. Non -permanent employees (probationary, part-time, seasonal, etc.) and 17 65D-25 employees performing work above their regular class in a training capacity shall not be assigned to a vacant, full-time, budgeted, higher-level position in accordance with this section unless specifically authorized by the City Manager. B. Compensation. 1. After an employee has served two (2) consecutive calendar weeks in a vacant, full-time, budgeted, higher-level position, he shall be compensated at the TemporaryUpgrade Assignment Pay rate for each full day that he is assigned to the higher-level position, retroactive to the first (lei) day of said assignment. 2. An employee serving in a Temporary Upgrade Assignment will be paid a temporary assignment pay premium at a rate set ten (10) salary rate ranges (approximately 5%) above their then current base monthly salary step. 3. An employee assigned to a vacant, full-time budgeted, higher-level position not represented by this bargaining unit will retain all fringe benefits afforded to members of this bargaining unit, if the employee remains eligible for such pay while in the temporary assignment, in accordance with this MOU, but will not be eligible for any benefits afforded to members of the bargaining unit for the position to which he or she is temporarily assigned. 4. An employee assigned to a vacant, full-time, budgeted, higher-level position will continue to accrue, and have recorded, general, special, or normal salary. step increases in the employee's permanent position; however, such salary increase will be paid only to maintain the minimum ten (10) salary rate range (approximately 5%) differential required by this section. 5.6 Correctional Officer Assignments Correctional Officer assignments shall be made whenever shift change sign-ups occur and based on seniority in the classification of Correctional Officer. The assignment of Classification Officer is recognized as a special assignment. If the parties to this MOU mutually agree, additional special assignments for the classification of Correctional Officer (following the meet and confer process) can be created. W. 65D-26 ARTICLE VI 6.0 CAREER DEVELOPMENT PROGRAM 6.1 Definitions. For the purpose of clarifying the criteria for the Police Career Development Program designations set forth in Sections 6.2 through 6.8 of this Article, the following definitions apply. It is the responsibility of the employee regardless of rank or classification, to notify the police department human resources of the completion of any Career Development Pay requirements and to provide the required proof of completion or eligibility. Any Career Development pay additive shall not commence until the department is notified by the employee of obtaining eligibility and all required proof of eligibility is received by the department. A. Educational Units. One (1) completed "semester" unit in an academic course of instruction approved by the Police Chief and in an accredited college or university shall equal one (1) educational unit. One (1) "quarter" unit achieved in an educational institution as above shall equal two-thirds (2/3) of an educational unit. "Trimester" units or other standards of measurement used as a basis in awarding scholastic credits will be accorded the same evaluation and weight as provided by the respective accredited college or university. Only completed coursework credited with a letter grade "C" or better or a grade of "Pass" when evaluated by the "Pass/Fail" method will be accepted. If such ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. B. Training Units. Twenty (20) classroom hours or its equivalent of approved police training shall equal one unit. Regular, periodic, on-the-job training programs shall not be considered as fulfilling this requirement. Neither shall the special training required for Crime Scene Investigators and Advanced Officers or other similar mandatory training (e.g., First Aid, C.P.R. Recertification, etc.) nor the basic introductory training or similar training given an employee during his or her probationary period be given credit for the awarding of training units. 1. When college credit is awarded for special training in police work, such units of credit may be counted for either training units or educational units as the officer may select. 2. Training units may be earned by the assignment to and performance of sworn police officer duties (other than uniformed field patrol work in Field Operations Division) with one (1) full and continuous month of such assignment equal to one (1) training unit. Credit for experience in assignments other than patrol work in Field Operations shall not be given, unless at least three (3) full and continuous months of such assignment have been completed. Not more than six (6) units of training through assignment to non -patrol duties may be earned in any one (1) year and not more than fifteen (15) such training units by assignment shall be used in meeting the criteria for the Police Career Development Program 19 65D-27 designations as set out in this Article. C. The Senior Police Officer I -III and Senior Police Sergeant I -III provisions set forth in sections 6.3 — 6.8 below apply to swom employees in the bargaining unit hired by the City of Santa Ana into a swom position prior to January 1, 2014. The Career Development Pay provided for in section 6.10 below is for sworn members of the bargaining unit hired into a sworn position with the City of Santa Ana on or after January 1, 2014. 6.2 Crime Scene Investigator (C.S.I.). Any sworn, safety -member Police Officer who attains the following educational and experience requirements and the approval as set out below shall be paid an additional five (5) salary rate ranges (2.5%) above his or her then current base monthly salary step. The criteria for such designation shall be as follows: A. Completion (acquisition) of at least thirty (30) educational and/or training units. B. Assignment to and actual performance of the duties and responsibilities of a C.S.I. C. Completion of a special training course for Crime Scene Investigators as developed and administered by the Santa Ana Police Department or such alternative course as designated for such purpose by the Police Chief. D. Approval of the Police Chief. The number of such designations as C.S.I. shall be no larger than the requirements of the department as determined by the Police Chief. 6.3 Senior Police Officer I'Any sworn, safety -member Police Officer, regardless of duty assignment, who completes (acquires) at least sixty (60) educational/training units fulfills the requirements established in this section shall be designated as a Senior Police Officer I and shall, upon approval of the Police Chief, be paid at a rate set fifteen (15) salary rate ranges (approximately 7.5%) above his or her then current base monthly salary step. 6.4 Senior Police Officer II. Any sworn, safety -member Police Officer, regardless of duty assignment, who completes (acquires) at least ninety (90) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional thirty (30) or more educational/training units shall be designated as a Senior Police Officer II and shall, upon approval of the Police Chief, be paid at a rate set twenty-five (25) salary rate ranges (approximately 12.5%) above his or her then current base monthly salary step in the Police Officer classification. 6.5 Senior Police Officer III. Any swom, safety -member Police Officer, regardless of duty assignment, who completes (acquires) at least one hundred and twenty (120) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional sixty (60) or more educational/training units shall, upon approval of the Police Chief be designated as a Senior Police Officer III and shall be paid at a rate set thirty (30) salary rate ranges (approximately 15%) above his or her then current base monthly salary step in the Police Officer classification. 20 65D-28 6.6 Senior Police Sergeant I. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who completes (acquires) at least sixty (60) educational/training units; shall be designated as a Senior Police Sergeant I and shall, upon approval of the Police Chief, be paid at a rate set fifteen (15) salary rate ranges (approximately 7.5%) above his or her then current base monthly salary step. 6.7 Senior Police Sergeant II. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who completes (acquires) at least ninety (90) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional thirty (30) or more educational/training units shall, upon approval of the Police Chief, be designated as a Senior Police Sergeant II and shall be paid at a rate set twenty-five (25) salary rate ranges (approximately 12.5%) above his or her then current base monthly salary step in the Police Sergeant class. 6.8 Senior Police Sergeant III. Any officer holding the rank of Police Sergeant in the Santa Ana Police Department, regardless of duty assignment, who completes (acquires) at least one hundred and twenty (120) educational/training units; or possession of an Associate of Arts degree from an accredited college with an additional sixty (60) or more educational/training units shall, upon approval of the Police Chief, be designated as a Senior Police Sergeant III and shall be paid at a rate set thirty (30) salary rate ranges (approximately 15%) above his or her then current base monthly salary step in the Police Sergeant class. 6.9 Career Development Program - Non -Sworn. An incumbent in one of the classes designated as "non -sworn" covered by this MOU shall earn an additional amount as follows: A. Upon attainment of an Associate in Arts Degree, employee will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. For employees hired after July 1, 2017, the pay in this paragraph shall only apply to employees in classifications which do not require a degree. B. Upon attainment of a Bachelor of Arts or Science Degree, an employee will be paid at a rate set an additional (15) salary rate ranges (approximately 7.5%)) above his or her then current base monthly salary step. If the employee obtains a Bachelor's Degree without attaining an Associate in Arts Degree, he or she will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. For employees hired after July 1, 2017, the pay in this paragraph shall only apply to employees in classifications which do not require a degree for any employee hired after July 1, 2017. C. Upon attainment of a Masters in Arts Degree, an employee will be paid at a rate set twenty (20) rate ranges (approximately 10%) above his or her then current base monthly salary step. This pay is not stacked with the pay in paragraphs A and B above. For employees hired after July 1, 2017, the pay in this paragraph 21 65D-29 shall only apply employees in classifications which do not require a degree. 6.10 Career Development Pay -Sworn Effective at the beginning of the pay period following City Council approval, sworn Employees hired on or after January 1, 2014 shall be eligible to receive Career Development Pay as follows: A. Level One - Upon attainment of an Associate in Arts Degree employees will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step. B. Level Two - Upon attainment of an Associate in Arts Degree and an additional thirty (30) educational units toward a declared Bachelor's degree, employees will be paid at a rate set an additional (10) salary rate ranges (approximately 5%) for a total of 20 salary rate ranges (approximately 10%) above his or her then current base monthly salary step. If such employee obtains a Bachelor's Degree without attaining an Associate in Arts Degree, he or she will be paid at a rate set twenty (20) salary rate ranges (approximately 10%) above his or her then current base monthly salary step. C. Level Three. - Upon attainment of a Bachelor of Arts or Science Degree employees will be paid at a rate set an additional (10) salary rate ranges (approximately 5%) for a total of 3 0 salary rate ranges (approximately 15 %) above his or her then current base monthly salary step. 22 65D-30 ARTICLE VII 7.0 TRAINING AND EDUCATIONAL ASSISTANCE PROGRAM 7.1 Purpose. A. To encourage the employees of the City of Santa Ana to take college courses and special training courses, which will better enable them to perform their present duties and prepare them for increased responsibilities. B. To provide financial assistance to eligible employees for education and training. C. To establish eligibility requirements, conditions and procedures whereby such assistance may be provided. 7.2 Eligibility. A. Applications for tuition reimbursement will be considered only from full-time, permanent City employees who have completed probation. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, etc. C. Applications will be approved only for courses directly related to the employee's job or directly related to a promotional position in the employee's occupational specialty. D. Courses not ostensibly related to the employee's job, but which are required to qualify for a degree that is directly related to his or her job may be reimbursable only after all required occupationally related courses have been completed. E. Prior to receiving tuition reimbursement, employees must submit documentary proof of having received a grade of not less than "C" for the course. If objective ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. F. Approval will be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of the various Boards of Education. Workshops, seminars, conferences and similar activities not identifiable as a formal course of instruction within the curriculum of a recognized educational institution, do not fall within the purview of this program but may be authorized and funded by the interested department without coordination with the Human Resources Department. G. When an employee is required by the Police Chief to attend a particular course or seminar, the expense shall be home entirely by the City. H. For specifics regarding this Article, please refer to Santa Ana Police Department 23 65D-31 Training Bulletin 02-07 - Scheduling of Training Days and Travel Time Compensation. 7.3 Reimbursement. A. Reimbursement will be based on the cost of tuition or registration fees and all required texts, eBooks and related material for each course. Additional expenses such as meals and parking fees are not reimbursable. B. Costs for required texts and eBooks are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 1. For textbooks: a duplicate of the required textbook(s) was unavailable for loan from the departmental libraries prior to the commencement of coursework; 2. For textbooks: any textbook(s) purchased by the City shall be submitted to the employee's respective departmental library in order that such text(s) may be made available to all employees. C. Tuition or registration costs of one hundred dollars ($100.00) or less are eligible for one hundred percent (100%) reimbursement. Tuition costs in excess of one hundred dollars ($100.00) are eligible for seventy-five percent (75%) reimbursement. Maximum tuition reimbursement per semester is five hundred dollars ($500.00) with a maximum of $1,500 a year. NOTE: Summer and winter sessions shall be counted as separate "semesters" for purposes of the program. D. Employees shall be limited, for purposes of tuition reimbursement, to a maximum of two (2) collegiate level courses of not more than a total number of units which is equivalent to six (6) "semester" units per semester. One (1) "quarter" unit shall equal two-thirds (2/3) of one (1) "semester" unit. 7.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete an Application for Training and Educational Assistance form and submit it to the Police Chief. B. The Police Chief will recommend approval or disapproval and forward the application to the Human Resources Department. It is advisable that the applicant accomplish the procedures so far described prior to the inception of the course or disbursement of personal funds in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy. C. Within three months after he/she has completed the course and received his/her final grade, the employee must include official verification of his/her final grade with appropriate receipts for tuition and textbook costs to the Human Resources Department. These will be returned to the employee upon request. Applications 24 65D-32 not submitted to the Human Resources Department within three months following completion of the course become void. D. Upon receipt of the required documentation, the Human Resources Department will determine whether the completed course of instruction is compatible with the provisions of Sections 2 and 3 of this Article. If found to be compatible, the Human Resources Department will compute the amount of reimbursement, authenticate the application, and forward it to the Police Chief. E. The Police Chief will then authorize the Finance and Management Services Department to reimburse the employee the approved amount out of the budget of the Police Department. 25 65D-33 ARTICLE VHI 1 • C lul 8.1 General Policy for Overtime Work. Whenever it shall be determined to be in the public interest for employees to perform overtime work, or in an emergency situation, the City Manager, the Police Chief, or an authorized representative of the City Manager or Police Chief, may require an employee to perform overtime work. 8.2 Definition. A. Standard Work Period Overtime. Overtime for those employees assigned to the Standard Work Period shall be authorized or required time worked in excess of those hours assigned to their particular Standard Work Period Schedule workday or hours in excess of 40 hours per Work Period. However, subject to Article 8.3 below, if an employee uses sick leave or personal necessity leave as provided for in this MOU in the same Standard Work Period in which he/she works hours in addition to his/her regular hours, the sick leave and/or personal necessity leave shall not count as work hours which shall mean that the additional hours worked shall be paid at straight time if they are less than or equal to the number of sick leave or personal necessity leave hours used in the Standard Work Period. The use of such leave hours shall not affect overtime earned in accordance with Article 8.16 of this MOU. B. Alternative Work Period Overtime. Pursuant to this MOU, employees assigned to the Alternate Work Period (the 28 day FLSA work period per Section 7(k) of the FLSA) shall earn overtime for authorized or required time worked in excess of those hours assigned to their particular Alternative Work Period Schedule workday or hours in excess of his or her Alternative Work Period Schedule hours in a consecutive 28 day, 672 hour period. However, subject to Article 8.3 below, if an employee uses sick leave or personal necessity leave as provided for in this MOU in the same Alternative Work Period in which he/she works hours in addition to his/her regular hours, the sick leave and/or personal necessity leave shall not count as work hours which shall mean that the additional hours worked shall be paid at straight time if they are less than or equal to the number of sick leave or personal necessity leave hours used in the Alternative Work Period. The use of such leave hours shall not affect overtime earned in accordance with Article 8.16 of this MOU. 8.3 Computation of a Workday and Work Period. Paid leave for holidays, vacation, and other time off with pay, except for sick leave and personal necessity, shall be credited towards the total time worked in computing a regular workday, and/or a work period, as defined herein. Sick leave and personal necessity shall not count as hours worked towards the total time worked in computing a regular workday and/or a work period. Work amounting to less than six (6) minutes shall not be considered time worked. Overtime worked for six (6) or more minutes shall be calculated in six (6) minute intervals. Leave without pay shall not be credited towards the total time worked in computing a regular workday, and/or a work period, as defined herein. 26 i 8.4 Compensation for Overtime. A. The preferable method by which overtime shall be compensated is by monetary payment, at one and one-half (1 1/2) times the employee's regular rate of pay. B. Should the Police Chief determine that the best interests of the City will be served thereby, he or his designee may permit an employee to be compensated for overtime work by earning compensatory time off at the rate of one and one-half (1 1/2) hours for each hour of overtime worked. This time, hereinafter identified as "comp time" shall be accrued as set forth below. C. There are two Comp Time banks. The first bank is the Non-FLSA Comp -Time Bank established under the 2013-2015 MOU. Those employees hired after July 1, 2015 or those employees with less than 100 hours of Comp -Time at the time the banks were created will not have a Non-FLSA Comp -Time Bank. The second bank is the FLSA Comp -Time Bank. The Non-FLSA Comp Time Bank can never have hours added to it. The hours in that bank can only be used as leave time and when using such leave will not cause the City to have to pay another employee overtime to fill behind the employee using the leave. The comp time in this bank cannot be cashed out during employment, only at the time the employee leaves City employment. If an employee uses the comp time in this bank during employment and exhausts the entire accrual in this bank, the employee's Non-FLSA Comp Time Bank will be closed as no additional hours may accrue into this bank. 2. The FLSA Comp Time Bank has a maximum accrual of one -hundred (100) hours. An employee who has 100 hours in this bank will earn overtime paid at time and one half the employee's regular rate of pay for overtime earned in accordance with this MOU and the FLSA. An employee who works overtime and who has less than 100 hours in his/her FLSA Comp Time Bank may be able to accrue hours (at the rate of 1.5 hours for each hour of overtime worked) in accordance with subdivision (B) above. The Comp time in this bank can be cashed in accordance with the provisions detailed below. Each affected employee who has accrued comp time credits in the FLSA Comp Time Bank, may elect to convert up to twenty (20) hours of such accrued time each calendar year quarter to the cash equivalent thereof, to a maximum of eighty (80) hours per calendar year. D. Use of Comp Time from the FLSA Comp Time Bank. 1. When an employee submits a request for time off using accrued compensatory time, and that employee has found a qualified replacement, the time off request will be granted. A qualified replacement means that the replacement officer or employee is able to fulfill the requirements of 27 65D-35 the position to which the requesting officer is assigned. a. Compensatory time off requests made for consideration during the monthly scheduling meetings will be treated as any other time off and granted only on the basis of seniority. b. Pursuant to the 3-12 Operating Rules, officers may trade work days with other officers within the 28 -day deployment period. Any trades must be approved by the affected Commanders and the Field Operations Bureau Commander. 2. When an employee submits a request to take time off using accrued compensatory time and the officer deployment is above minimum staffing for the day requested, then the request will be granted without further conditions. However, if the number of officers scheduled to work on the day(s) of the request is at or below minimum staffing as defined by the department, the compensatory time off request will be granted only if a qualified replacement has volunteered and committed to work the assignment left open by the request for time off. The volunteer may exchange days off with the requesting employee within the 28 -day deployment period, whichever applies, or may elect to receive overtime compensation. 3. Requests for use of compensatory time off during holidays as defined by this MOU, must be submitted in time to be considered during the monthly scheduling meeting held by bureau and division commanders for the upcoming month. These, requests will be considered by seniority and will be granted only if officer deployment is above minimum staffing. The policy of the department has been, and will continue to be, that compensatory time off requested during a City -designated holiday will be treated as any other time off request and will be granted in order of seniority as long as minimum staffing levels are met. The replacement policy in 8.4 DA below will not apply to compensatory time off requests submitted for consideration during monthly scheduling meetings. 4. Although it is always preferable for the officer to find a qualified replacement when requesting the use of compensatory time off, if provided sufficient notice of a request for time off, the department will work with employees to find a qualified replacement. Sufficient notice and reasonable period will be defined as follows: a. Seventy-two (72) hours' notice for one (1) day or less of time off requested. b. Five (5) calendar days' notice for more than one (1) workday up to one (1) workweek. C. Fourteen (14) calendar days' notice for more than one (1) week 28 65D-36 compensatory time off request. 5. If an employee has provided sufficient notice of a compensatory time off request, the department will work with the employee to find a qualified replacement in the following manner: a. The watch commander will maintain a calendar of time off that has been requested in accordance with the guidelines listed above. Qualified employees will be allowed to volunteer to work these shifts. In the future, the department may develop, at its own discretion, an automated schedule that will contain this information. b. If an employee volunteers and signs up to work for another employee who has requested compensatory time off, that volunteering employee will be held responsible for working that full shift without further reminder. Employees who do not show up to work, or retract their offer to replace another officer, may be subject to disciplinary action and may not be permitted to volunteer to work in this manner in the future. 6. The watch commander shall send out an e-mail message to all officers requesting a volunteer to cover the shift by switching days off or working on overtime. When a compensatory time off request is made in a manner that does not comply with this policy, and granting that request would unduly disrupt the operations of the department, the department may deny that request. 8.5 Incremental Usage. Time off with pay to compensate for overtime worked may be taken in increments as small as one-half (1/2) hour. 8.6 No Effect on Other Benefits. Overtime work shall not apply to the earning of employee benefits (retirement, holidays, vacation accrual, sick leave accrual and employee insurance benefits), toward the completion of probationary period or to progression within a salary rate range. 8.7 Overtime Work to be Apportioned. To the extent that he is reasonably able to do so, the Police Chief shall arrange work programs to minimize overtime work; necessary overtime work shall be apportioned among employees of like classification and assignment. 8.8 Advance Compensation for Overtime. Time off with pay as compensation for overtime may not be granted or taken in advance of the overtime work for which the time off compensates. Before compensatory time off with pay may be taken, as herein provided, the overtime worked must have been recorded on official payroll records at or about the time the overtime work was performed. In the absence of such recording, no compensatory time off with pay will be permitted. 29 65D-37 8.9 Compensation for Overtime: Overtime pay or comp time shall be allowed an employee for attendance at conventions, conferences, seminars or the like, as long as prior authorization is received. Overtime pay or comp time pay shall be permitted only for attendance which is ordered on such employee's normal days off or for time beyond a normal workday's duration. Please refer to Santa Ana Police Department Training Bulletin 02-07 for details. 8.10 Call -Back -Duty. A. Employees who are on call during their off-duty time due to their assignment (i.e., Homicide Investigators, Internal Affairs Sergeants, Crimes Against Persons Sergeants, etc.) and are called back to work will be paid for their travel time at the overtime rate from the time they leave their home until the time they return home, or until their regularly scheduled shift begins. Only that period of time devoted to work will be compensated. If employees are not home when they are called back to duty, they will receive their normal home to work travel time or if closer to City than their home, travel to that location and back. B. Employees who are ordered back to work while off-duty because of an emergency or other unforeseen event will be paid for travel time at the overtime rate from the time they leave their home until they return home, or until their regularly scheduled shift begins. Only that period of time devoted to work will be compensated. C. Employees who are called at home and offered voluntary overtime work, and elect to accept the offer, will not. be compensated for travel time in any manner. Similarly, employees who sign up for voluntary overtime, or who have advance notice that they will have to work during their off-duty time on an overtime basis, will not be compensated for travel time. 8.11 Accrued Compensatory Time Off Paid Upon Promotions or Upon Separation. Upon an employee's appointment to a position in which overtime may not be earned or upon an employee's separation from employment with the City by resignation, retirement, layoff or otherwise, he or she shall forthwith be compensated for any overtime accumulated to the time immediately preceding such promotion or separation. 8.12 Court Appearance. Compensation for court appearance by personnel covered by this MOU shall be as follows: A. For each required court appearance made by an employee during his or her off- duty time in regard to City business, employees shall be paid overtime for the period of time from their arrival at court until they are released from court or the court session closes for that day. However, in no case, shall an employee receive less than two (2) hours overtime for a court appearance. If court appearances are made both in the morning and afternoon of a particular day, two (2) hours overtime will be allowed for each session attended. If the employee is not released and must remain available for afternoon court, the employee shall be 30 1: paid overtime for all hours the court is in session that day. The employee must provide a copy of the subpoena requiring his or her attendance to initiate payroll procedures. B. A subpoenaed employee scheduled to appear in court on City business during off- duty time may be placed on stand-by status by the Police Chief or his authorized representative if the employee can respond to the court, if called, within 60 minutes of the employee's notification. In the event such off-duty employee is on stand-by status during any court session and is not required to appear in court, such employees shall be compensated two (2) hours on a straight time basis, for each court session. Such employee may elect, in lieu of paid time, two (2) hours of comp time off for standby time and not appearing in court, with the approval of the Police Chief. If such off-duty employee on stand-by actually appears in court, he or she shall be compensated as provided in Subsection A. C. Employees assigned to the 3/12.5-7/12.5, or 3/12-4/12 Work Schedule who appear in court during their regularly scheduled workweek, and who, as a result, do not receive adequate rest (because of the hours of the day they work), will be allowed to flex their scheduled shift start time up to four hours, with the approval of the employee's immediate supervisor and watch commander, or immediate supervisor and section commander. Alternatively, the employee may be allowed to use up to four hours from his/her "Comp Time Banks" at the beginning of their scheduled shift to ensure adequate rest. An employee whose work shift ends or starts within thirty minutes of a mandatory court appearance shall be compensated for those thirty minutes at an overtime rate. 2. Employees assigned to a Watch 3 who are required to appear in court following the end of his/her shift will have the option of remaining on duty or ending their shift. Employees that continue active duty will be compensated at time and one half while on duty. Employees that end their shift will be unpaid prior to their court appearance. D. Employees who are on call for court during off-duty time, and who are called to testify, will be paid at the overtime rate of time and a half of their regular hourly rate, to include actual travel time from their home to court and back, or until their regularly scheduled shift begins. Travel time will be limited to a maximum of one (1) hour each way. Only that period of time devoted to work will be compensated. Time spent on personal pursuits or other non -work related activity will not be compensated. E. Those employees who have advance notice of their required appearance in court, have arranged an appearance time with the District Attorney's Office, or who otherwise have advance notice of mandatory court appearances, will not be compensated for travel time in any manner. 31 65D-39 F. Employees who appear in court during off-duty hours may elect to start their normal work shift early as specified herein. G. A subpoenaed employee scheduled to appear in court on City business during off- duty time and placed on standby status by the Police Chief or his authorized representative will be compensated two (2) hours on a straight time basis if he or she is not advised of the cancellation of his or her appearance within five (5) Court business days of said appearance. 8.13 Creation of Association Comp Time Bank. A. Any member of the Association who works overtime, or has accrued but unused holidays, can designate that he or she will contribute the value of such time to a bank for use by members of the Association for the purposes and subject to the restrictions provided herein. B. Any member of the Association may receive time off for the welfare of officers, community service and any lawful activity of the Association with pay drawn from the bank described in Subsection A of this Section, provided that said employee first gains approval for said use by the executive board of the Association in the manner specified by its rules as adopted from time to time, and subject to the approval or disapproval of the Police Chief consistent with the operational needs of the Police Department. C. No withdrawal or use of such bank may be made by or on behalf of an employee ordered to take time off without pay for discipline imposed by the Police Chief or his designee. D. The City agrees to provide the SAPOA with a quarterly accounting (at the end of March, June, September and December) of all Association Comp Time accrued and used. 8.14 Compensation of Voluntary Contract Overtime. Exclusive of other provisions of this Article, except Section 8.7 (No Effect on Other Benefits) , Police Officers and Police Sergeants who voluntarily agree to perform contract security services at games, parades, dances and similar public events shall be compensated at the rate of one and one-half (1 1/2) times the employee's regular rate of pay. However, the hours worked do not constitute hours worked under the FLSA. The Police Chief shall determine how many off-duty police officers should serve as security officers at each event. Police Officers and Sergeants represented by the Association shall be given fust opportunity to volunteer for such off-duty assignments. If, after a reasonable period of time, an insufficient number of police officers have volunteered to work such assignments, the Police Chief may offer the remaining "openings" to any person(s) he deems capable of performing the work at whatever straight -time pay rate the City considers to be appropriate. 32 65D-40 ARTICLE IX 9.0 HOLIDAYS 9.1 Legal holidays observed by full-time permanent and probationary employees covered by this MOU are as follows: • January 1 st - New Year's Day. • Third (3rd) Monday in January - In observance of Martin Luther King Jr.'s Birthday. • Third (3rd) Monday in February - In observance of Presidents' Day. • Last Monday in May - In commemoration of Memorial Day. • July 4th - In observance of Independence Day. • First (1st) Monday in September - In observance of Labor Day. • November 1 lth - In observance of Veteran's Day. • Fourth (4th) Thursday in November - In observance of Thanksgiving Day. • The Friday immediately following Thanksgiving Day. • December 25th - In observance of Christmas Day. • Last working day before Christmas Day, unless Christmas falls on a Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. • One (1) Floating Holiday - Any workday selected by the employee with prior permission of the employee's supervisor. • Every day proclaimed by the Mayor of the City as a holiday for City employees. Any holiday which falls on a Sunday will be observed on the following Monday. Any holiday, which falls on a Saturday, will be observed on the Friday preceding the Holiday. 9.2 Full-time, permanent and probationary employees covered by this MOU shall be entitled to receive 96 hours off during the calendar year in lieu of the twelve (12) holidays specified in Section 9.1. Said hours, up to a maximum of 80 hours, may be carred over from one calendar year to the next and shall be cashed out upon separation from employment, not to exceed a maximum of 160 hours. An employee who works ton a 33 65D-41 City observed "legal' holiday shall be paid at his or her straight time rate. However, if an employee who separated from the service of the City has taken time off for holidays in advance of the date or day the holiday actually occurred, he or she must pay the City the cash value for such used but unearned holiday time off benefits prior to or at the time of separation. 9.3 Cash Option. Employees covered by this MOU shall be given an option twice per calendar year to receive cash compensation ("cash out') computed on a straight time basis in exchange for eighty (80) hours of their annual holiday leave benefits set forth in Section 9.2 above. Specifically, employees may cash out up to 40 hours of holiday leave benefits in April of each calendar year and an additional 40 hours of holiday leave benefits in November of each calendar year. An employee that does not cash out holiday leave benefits in April may cash out a maximum of 80 hours of holiday leave benefits in November. The City shall provide a separate payment in addition to the regular pay for each employee who elects to receive holiday cash compensation ("cash out'), during the months of April and November per calendar year. 9.4 All employees must actually work at least one day preceding the day a holiday listed in Section 9.1, actually occurs in order to receive credit for such holiday. The employee will then be credited with all remaining holidays in the year occurring after the appointment. An employee separating from the service of the City must actually work at least one day following the day a holiday listed in Section 9. 1, actually occurs in order to receive credit for that holiday. A newly. appointed employee must complete six. (6) months of continuous, full-time service in order to receive credit for the Floating Holiday listed in Section 9.1 above. 9.5 This "time off," as defined in Article X, Section 10.6, may be taken in increments as small as one half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one half (1/2) hour. 9.6 A maximum of one (1) year of Holiday benefits may be carried over from one calendar year to the next. An employee terminating employment with the City may cash out accumulated, unused Holiday leave benefits, not to exceed a maximum of 160 hours. 34 65D-42 ARTICLE X 10.0 VACATION 10.1 Purpose. It is the policy of the City to grant employees vacation leave in order to provide them with a break in their regular work schedule, and this purpose will be used as a guide in the administration of the provisions of this Article. 10.2 Vacation. A. Members shall accrue vacation with pay on a monthly basis as set forth in the following table. Beginning Years Annual Vacation Accrued Monthly Acckual2: Rate„ ; 1 80- 2 80 &'61V- 3 3 120 104006- 4 120 i_ 10t00v: s 120 101.100 6 124 _ j 1'0433 7 128 j 10167 8 132 u140t:: 9 136 11.33 10 140 11.67; 11 144 42WO..._ 12 148 13 152 j 12"07- 14 156 13uQ0 _ 15 160 131:33 16 168 14.w 17 176 18 184 19 192 20 or more 200 16°67 B. An employee who has completed less than one year's service during the calendar year shall receive a proportionate fraction in accordance with the amount of service to his or her credit during the year; provided, however, no employee shall be entitled to use any vacation until he or she has completed six (6) months of continuous service. C. On or after the first (1st) day of the month following completion of six (6) months of continuous full-time service, an employee may be allowed to take all or a proportionate fraction of his or her earned vacation, subject to scheduling 35 65D-43 approval of the employee's supervisor. D. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days shall not be considered as service for vacation accrual purposes. E. Computation of Vacation. In computing vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had he or she not been on vacation, shall be deducted from the computation so that ten (10) additional hours of vacation shall be allowed to the employee unless departmental practice provides some other manner of compensating for municipal holidays. Should an employee be confined to a hospital for sickness or injury while on authorized vacation, each full day of such confinement, when confirmed by a physician's statement and approval of the Police Chief, may be deducted from the computation of vacation expended and charged against the employee's accumulated sick leave. 2. A period of earlier service does not apply toward vacation accumulation when an employee has had a break in continuous service, unless the break in service is concluded by reappointment, as provided in Section 9-114 of the Santa Ana Municipal Code or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Article XI, Section lE (Sick Leave -Extended) and Section 11.8 (Authorized Absence Without Pay - Long Term), Section 11.11 (Catastrophic Leave Donation) herein, does not constitute a break in continuous service as used in this section; however, the leave of absence period shall not be applied toward the accumulation of longevity vacation. Absence on military leave followed by reinstatement, as provided in Section 9-143 of the Santa Ana Municipal Code does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of longevity vacation. F. Vacation Buy -Back. Employees covered by this MOU are eligible to require the City to buy-back up to sixty (60) hours of their banked vacation, computed on a straight time basis, once per calendar year. Additionally, any member who has taken a minimum of eighty (80) hours of vacation time off during the calendar year (not including the sixty (60) hours of allowed vacation cash -out) shall have the ability to require the City to buy-back an additional forty (40) hours of their banked vacation, computed on a straight time basis, once during the same calendar year that the leave is taken. 10.3 Limitation on Vacation. A. With the exception of a retiring employee, no employee is granted, and no employee shall be allowed to take, any vacation leave with pay in excess of 400 36 65D-44 hours in any one year. 10.4 Vacation Carry -Over. A. No employee may carry over from one (1) calendar year to the next, more than the maximum vacation carryover as set forth in the following table. Effective December 31, 2018, any vacation not used beyond the maximum carryover amount from year to year will be paid off by the City at the end of the calendar year at the employee's base rate of pay so that at the beginning of the following calendar year, the employee will have the maximum carryover amount of vacation in their vacation bank. Completed Years Max Carryover into 2018 Max Carryover into 2019 and beyond 1 80 80 2 160 160 3 280 280 4 320 320 5 1 360 360 6 364 364 7 372 372 8 381 380 9 390 388 10 399 396 11 408 404 12 417 412 13 426 420 14 435 428 15 444 436 16 457 448 17 474 464 18 492 480 19 510 496 20 528 512 21 538 520 22 540 520 23 540 520 24 540 520 25 540 520 10.5 Use of Accrued Time (Vacation, Holidays and Compensatory Time Off). Time off by use of vacation, holiday leave or compensatory time off may be taken in increments as small as one half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one half (1/2) hour. 37 65D-45 Each affected employee shall be afforded the opportunity to submit selection(s) for use of accrued vacation, holiday leave or compensatory time off and the Police Chief or his designee shall make every reasonable effort to accommodate the employee's preference(s). The time at which an employee shall take his or her leave (vacation, holidays or compensatory time off) shall be determined by the Police Chief, with due regard for the wishes of the employee and particular regard for the needs of the service. 65D-46 ARTICLE XI 11.0 OTHER LEAVES OF ABSENCE 11.1 Sick Leave. A. Definition. Except as otherwise provided below, sick leave shall be deemed to mean absence from duty of an employee because of non -industrial illness or injury that prevents the employee from performing the duties of his or her position and shall be deemed to include time in quarantine resulting from non - duty related exposure to a contagious disease. B. Accrual. Each employee shall be entitled to, and shall earn, eight (8) hours of sick leave for each full calendar month of service in which he or she is employed by the City with full pay; provided, however, any absence on sick leave for a period of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not be considered to be service entitling an employee to earn sick leave as aforesaid. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used. Notwithstanding the foregoing, employees on leave of absence for service - connected illness or injury who are covered by the provisions of Labor Code Section 4850, shall continue to accumulate eight (8) hours of sick leave for each full calendar month of service for which he or she is employed by the City with full pay during said absence for service -connected illness or injury. C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows: Sick leave is not a right which an employee may use at his or her discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection J below. 2. With respect to "miscellaneous -member" employees covered by this MOU, when such an employee's absence is caused by an industrial illness or injury, for which benefits are required to be provided under the State Workers' Compensation Insurance and Safety Act, the City shall pay 100% of salary for the first three (3) days of such absence and sick leave shall not be debited. D. Limit. The maximum total accumulation of sick leave with pay shall be 1600 hours. Sick leave usage of less than a full day shall be charged in minimum increments of one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2). E. Extended. The City Manager may grant leave up to six months without pay to an employee who has exhausted all of his or her accrued sick leave if a licensed physician designated by the City Manager indicates that the employee will be sufficiently recovered to return to his or her employment within a six (6) months 39 65D-47 period. Prior to the expiration of the additional time, the employee may return to his or her position provided that he or she has a certificate from one of the above mentioned physicians stating that the employee is able to perform all the duties of his or her position without qualification. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year without pay. F. Extension by Use of Vacation. After an employee's sick leave has been exhausted, he or she may be granted permission to take any earned vacation he or she may have accrued. G. Notice. The employee taking sick leave shall notify his or her immediate supervisor not less than one (1) hour prior to the time he or she is scheduled to report for duty. When the absence is more than three (3) consecutive working days, the employee must present to the Police Chief a physician's certificate stating that, in the physician's opinion, the employee could not report to work because of illness or injury and that the employee is sufficiently recovered to safely return to work. Such certificate shall be transmitted to the chief personnel officer with the report of the return of the employee to work. A physician's certificate or other satisfactory written evidence of actual illness or injury may be required after an absence of any duration of less than three (3) days. H. Denial. No employee shall be entitled to sick leave with pay while absent from duty because of sickness or injury purposely self-inflicted or caused by willful misconduct; or sickness or disability sustained while engaged in employment other than employment by the City, for -monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation. I. Excess Usage. If sick leave is used in excess of that due and available to an employee, such excess sick leave, will first be deducted from any available compensatory time off benefit; second, from any available vacation leave benefit; third, from any available holiday leave benefits; and finally, deducted from the next scheduled wage or salary payment. J. Personal Necessity Leave. Each employee shall be afforded the opportunity to use up to 66 hours of sick leave per calendar year, on a non -cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, spouse or registered domestic partner of the employee. As used in this section, "child" means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; and "parent" means a biological, foster, adoptive parent, a stepparent, or a legal guardian. Up to three (3) days of this personal necessity leave may be used: (a) to attend to a serious accident to members of the employee's immediate family; (b) childbirth; (c) to cope with imminent danger to the employee's home or other valuable 40 MMi property; or (d) when the existence of external circumstances beyond the employee's control make it impractical for him or her to report for duty. For the purposes of this section only, a "day" shall be defined as the number of hours of work that an employee is required to work according to his or her specific workday schedule. K. Payment for Unused Sick Leave. Definition. All employees, except for those involved in disciplinary termination, shall be entitled to payment under the following provisions: After ten (10) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for one-third (1/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of 427 hours, at the rate of pay in effect on the date of such termination. a. At his or her option, an employee may convert the above lump sum payment option into the retiree health account fund, held by the SAPOA for the purposes of retiree health insurance or long term care insurance premiums to the extent necessary to provide the employee and his or her designated eligible dependents, if any, with benefits under the health insurance program maintained by the Association. For unused sick leave benefits had this option not been elected, not to exceed a maximum of 640 hours. 2. After 15 years of cumulative full-time service with the City, each qualified employee shall be entitled to credit for two-thirds (2/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of 1,066 hours, calculated at the rate of pay in effect on the date of such termination. This credit shall be applied into the retiree health account fund, held by the SAPOA for the purposes of retiree monthly health insurance premiums or toward long- term care insurance premiums, beginning on the effective date of termination. After 20 years of cumulative full-time service with the City, each qualified employee shall be entitled to one of two options: (a) payment for 1/3 of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of 533 hours, at the rate of pay in effect on the date of such termination, or (b) credit for 2/3 of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of 1,066 hours. 4. After 25 years of cumulative full-time service with the City, each qualified employee shall be entitled to one of two options: (a) payment for 2/3 of the total sick leave benefit credited to his or her account upon the effective 41 date of such termination, not to exceed a maximum limit of 1,066 hours, at the rate of pay in effect on the date of such termination, or (b) credit for 2/3 of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of 1,066 hours, as defined in "2" above. 5. A lump sum payment shall be made to the beneficiaries of any eligible employee whose death occurs while such employee is an active employee of the City, such payment to be in the amount of 1/3 of the total sick leave benefit credited to the employee's account at the time of his or her death, and at the rate of pay effective on the date of death. 6. Upon the death of any retired employee receiving a benefit under this provision, said benefit will continue to be provided through the Association on behalf of said retired employee to his or her beneficiary. 11.2 Bereavement Leave. An employee shall be granted up to three (3) days leave without loss of pay in case of death of a member of the employee's immediate family. For purposes of this Section only, a "day" shall be defined as the number of hours of work that an employee is required to work according to his/her specific workday schedule. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: A. Any relative by blood or marriage who is a member of the employee's household; B. A parent, parent -in-law, stepparent, spouse, registered domestic partner, child, brother, stepbrother, sister, stepsister, grandparent or grandchild of the employee, regardless of residence; 11.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if he or she furnishes the Chief Personnel Officer satisfactory proof of his or her orders to report for duty. Upon return and upon showing proof of actual service pursuant to such orders, he or she will be reinstated as provided in Section 9-143 of the Santa Ana Municipal Code. B. Temnorarv. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code and Section 9-144 of the Santa Ana Municipal Code, will be granted leave with pay, not to exceed thirty (30) working days in each calendar year after one year's service with the City upon presenting satisfactory proof of orders to and from such temporary active duties. 11.4 Jury and Witness Leave. When an on -duty employee is called to serve as a juror or a non-party witness in any court action he or she shall be allowed leave for the time actually required for such service, without loss of pay. Each on -duty employee called for such service shall present to the Police Chief for examination the subpoena calling him or 42 65D-50 her to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any. Refer to Departmental Order 396 - Jury Duty for specifies. 11.5 Examination Leave. Employees participating in examinations conducted during their normal working hours for positions in the competitive service of the City of Santa Ana will be granted leave with pay for the time actually required, without loss of any accrued vacation or compensatory time off benefits. 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Absence from duty without leave for five (5) consecutive working days shall be deemed a resignation from the service; provided, however, if upon return to duty the person so absenting himself makes an explanation satisfactory to the Police Chief of the cause of his absence, the Police Chief may restore him to his position, with the City Manager's approval. 11.7 Authorized Absence Without Pay. Absence without pay not to exceed five (5) consecutive working days' may be authorized by the Police Chief. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the department with the approval of the City Manager. Such absences may be authorized only if in the judgment of the Police Chief they serve the best interest of the City. 11.8 Authorized Absence Without Pay - Lone Term. Upon receipt of a written request from an employee having permanent status plus action by the Police Chief recommending approval of the request, the City Manager may grant a leave of absence for up to six (6) months. An employee returning to duty with the City shall inform the Police Chief and chief personnel officer of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) months period or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Police Chief will take steps necessary to restore the employee to his or her former position. 11.9 Administrative Leave. The City Manager is authorized to grant, at his discretion, administrative leave with or without pay for permanent employees if, in his opinion, such a leave is in the interests of the City. 11.10 Industrial Leave. A. Each "safety member" employee covered by the provisions of Labor Code Section 4850 who is compelled to be absent from duty because of an illness or injury covered by the State of California Workers' Compensation Insurance and Safety Act shall, in lieu of temporary disability compensation payable under the aforementioned Act, continue to be paid his or her normal salary and accrue other benefits in accordance with the provisions of Labor Code Section 4850. B. Any period of time during which an employee is required to be absent from his or her position by reason of an industrial injury or industrial illness for which he or 43 65D-51 she is entitled to receive compensation shall not be considered a break in continuous service for the purpose of his or her right to salary adjustment or to the accrual of vacation and seniority. 11.11 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of a catastrophic, non -industrial medical condition or injury, the City and Association agree to implement a Catastrophic Leave Donation Program. A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. 1. Employees may donate vacation or compensatory time or holiday leave time to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two-week period to submit donations. Donations received after this two-week period shall not be processed. The two-week period for each case shall be designated by the Police Chief or his designee as provided herein below. If all previous time donated has been exhausted, the recipient may request a new donation period be designated by the Police Chief or his designee as provided herein below. 3. All vacation, compensatory time or holiday leave time donations must be made in two (2) hour increments. There is no limit on the amount of the donation that can be made. 4. Any authorization of donations not made in accordance with the procedures outlined in Section C, subparagraph 2 below, will not be processed. 5. All donations shall be irrevocable. 6. In the event the recipient returns to work before leave donations have been exhausted, any balance on the books shall be accrued by the recipient and designated as sick leave and may be used pursuant to Article XI, Sections 11.1A through 11.1K above. B. Eligibility. Full-time employees shall be eligible for catastrophic leave donations if the following criteria are met: When it is reasonably foreseeable that all accrued time on the books, such as sick leave, compensatory time, vacation, and in lieu holidays, will be exhausted and the employee's illness will continue past the time when the employee will be on paid status. 2. The Police Chief or his designee has approved a written request for donations accompanied by a medical statement from the employee's attending physician. The attending physician's statement must verify the employee's need for an extended medical leave and an estimate of the 44 65D-52 time the employee will be unable to work. C. Procedure. Upon receipt of a valid request for donations from an eligible employee, the Police Chief or his designee shall post a notice of the eligible employee's need for donations on bulletin boards accessible to employees. No confidential medical information shall be included in the posted notice. 2. Employees wishing to donate time to an eligible employee must sign his or her authorization of the transfer of such donated time and provide: a. His or her name, department name, and employee number; b. The number of hours of compensatory, holiday or vacation time of the donation within the limitations of Section A, subparagraph 3 above; C. The name, department, and employee number of the recipient; d. A statement indicating that the donor understands such donation of time is irrevocable. At the close of the two-week donation period, the department shall verify that each donating employee has accrued vacation, holiday and/or comp time balances sufficient to cover the designated donation. 4. The department shall submit all approved donation authorizations for an eligible employee at one time for processing. No donation authorizations for the eligible employee will be processed after this period. However, employees who receive donations under this procedure and who exhaust all donated hours may request an additional donation period subject to the provisions of Section A, herein. The City shall add the donated time to the recipient's sick leave account. D. Upon the death of any active employee receiving a benefit under this provision, the City agrees to pay any unused Catastrophic Leave Donations remaining on the books to the surviving beneficiary. E. For those current employees with unused catastrophic leave on the books, the City agrees to convert said unused catastrophic leave to sick leave for use in accordance with the provisions of Article XI, Sections 11.1A through ll.1K above. 11.12 Assienment Departmental Seniority Employees covered by this MOU who are authorized to be on an unpaid medical leave 45 65D-53 for twelve (12) weeks or less shall continue to accrue seniority related to their particular assignment, as it relates to the badge number list or for any other purpose concerning Police Department Operations for which seniority is considered. Once such leave of absence exceeds twelve (12) weeks, the employee will no longer accrue seniority (for all purposes, including, but not limited to his/her classification, assignment or rank). While such employee will not lose any of the seniority he/she has previously earned, by not continuing to accrue seniority at that point, others who previously were less senior may become more senior than such employee for seniority purposes in the Department. M 65D-54 ARTICLE XII 12.1 During the term of this MOU, the City will contribute toward the payment of premiums for health, dental and long-term disability insurance plans administered by the Association for the benefit of the employees represented by the Association as follows: A. Medical Insurance. The City will contribute $1,510.00 per month ($1,575.00 effective July 1, 2019) to the Santa Ana Police Officers Association Medical Insurance Trust Fund for each affected employee enrolled in medical insurance plans provided by the Association for its bargaining unit members and their eligible dependents. Any contributions necessary to maintain benefits under the plans in excess of the aforementioned amount per month shall be home entirely by the Association and/or the enrollee. Members of the bargaining unit who are not Association members and therefore not eligible to purchase insurance through the Trust will receive from the City up to $1,575.00 per month to be used only for the purchase of medical insurance for themselves and eligible dependents. The Association will provide the City with proof that each of the employees in the Association who have enrolled in insurance are receiving insurance. The Association will also provide the City (once each quarter) with a list of the group insurance plan and rates for medical, dental and Long Term Disability. B. Life Insurance. The City shall maintain in effect for the term of this MOU its existing life insurance plan for employees covered by this MOU on the same basis as said plan was.offered to employees as of December 31, 1988 except the term life insurance coverage for each affected employee will be in the amount of thirty thousand dollars ($30,000), plus twenty thousand dollars ($20,000) accidental death and dismemberment (AD + D) coverage, at no cost to the employee. 12.2 Retiree Health Contribution. All employees covered by this MOU will contribute two percent (2%) of their regular rate of pay through payroll deduction to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. Effective October 1, 2018, and on October 1 of each year the City shall contribute an amount equal to two percent (2%) of each employee's regular rate of pay (base pay plus additional forms of pay paid each pay period) of each active employee who is covered by this MOU as of October 1 of each year to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. 12.3 Employees on unpaid leave of more than fifteen (15) calendar days shall not receive the City's contribution toward any insurance coverage. The Police Department will notify the Association of all employees on unpaid leave or who separate from City employment M 65D-55 within three (3) working days. The City will continue the payment of contribution for insurance coverage until the end of the month in which the Association had received notice from the City of the employee's separation from employment. M 65D-56 ARTICLE XIII C�177ylYI�T1�I�YY 13.1 General. The City shall continue to make contributions to the California Public Employees' Retirement System (CaIPERS) in accordance with its contract with CaIPERS for employees covered by said contract as amended. 13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on behalf of each employee covered by this MOU in accordance with the following schedule: A. For Safety employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall pay the nine percent (9%) member contribution and report it to CalPERS as compensation eamable. B. For Miscellaneous employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) the City shall pay the eight percent (8%) member contribution and report it to CalPERS as compensation eamable . Such payments shall be credited to the individual employee's CalPERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this MOU shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and thus, will not withhold federal or state income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, not ordinary income. In the event that the City receives a subsequent ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each affected employee shall forthwith be increased by eighteen (18) salary rate ranges (9.0%) for Sworn Safety employees who do not qualify as "Flew Members" and sixteen (16) salary rate ranges (8.0%) for Miscellaneous employees who do not qualify as "Flew Members" covered by this MOU. For the purpose of reporting an employee's compensation to CalPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 CaIPERS Fourth Level of 1959 Survivors Benefits. The City will provide CalPERS fourth level of 1959 Survivors Benefit to all eligible employees in the unit. 13.4 CalPERS Pre -Retirement Optional Settlement 2 Death Benefit. The City shall provide the CalPERS Pre -Retirement Optional Settlement 2 Death Benefit to all employees 49 65D-57 covered by this MOU. 13.5 Military Service Credit as Public Service. Safety employees, and Miscellaneous employees, respectively, may elect to purchase up to four (4) years of service credit for any continuous active military or merchant marine service prior to employment. The employee must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service. The City agrees that, as soon as practicable following Council approval of this MOU and amendment to the CalPERS contract, employees who elect to purchase service credit may do so on a "pre-tax" basis. 13.6 3% at 50 Service Retirement Benefit for Safety employees. The City contracts with CalPERS to provide Safety employees who do not qualify as "New Members" under PEPRA with the 3% at 50 Service Retirement benefit. All Safety employees who do not qualify as "New Members" under PEPRA shall pay twelve percent (12%) compensation eamable to pay for the employer portion of the City's CalPERS contribution. This payment shall be paid in accordance with Government Code Section 20516(f). Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.7 2.7% (a, 57 Service Retirement Benefit for "New Member" Safety emnloyees. The City agrees to provide Safety employees who are defined as "New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA) of 2013 with the 2.7% @ 57 Service Retirement benefit. Final compensation will be based on the highest annual average compensation eamable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. Employees covered under the 2.7% @ 57 retirement formula shall pay one half of the normal cost rate as established each year by CalPERS. Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.8 2.7% at 55 Service Retirement Benefit for Miscellaneous employees. The City contracts with CalPERS to provide Miscellaneous employees who do not qualify as "New Members" under PEPRA with the 2.7% at 55 Service Retirement benefit. The employee's contribution rate for Miscellaneous employees who do not qualify as "New Members" under PEPRA will be to eight (8%) percent compensation eamable. All employee contributions for retirement benefits are paid to the employer portion of the City's CalPERS contribution. This payment shall be paid in accordance with Government Code section 20516(f). 50 65D-58 Pre -Taxable Benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.9 2% Cad 62 Service Retirement Benefit for "New Member" Miscellaneous emolovees. The City agrees to provide Miscellaneous employees covered by this MOU who are defined as "New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA) of 2013 with the 2% @ 62 Service Retirement benefit Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. Employees covered under the 2% @ 62 retirement formula shall pay one half of the normal cost rate as established each year by Ca1PERS Pre -Taxable Benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.10 Credit for Unused Sick Leave. All employees covered by this MOU can have unused accumulated sick leave at the time of retirement converted to additional service credit, pursuant to Government Code section 20965. The City must report only those hours of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date of retirement is within four (4) months of separation from employment. 13.11 Uniform Allowance. With respect to Safety and Miscellaneous employees who do not qualify as "New Members" under the California Public Employees' Pension Reform Act (PEPRA), the City shall report to Ca1PERS the monetary value of uniforms and uniform maintenance for those employees required to wear uniforms. The monetary value by classification is listed in Exhibit B, entitled "Uniform Allowance by Classification." The value of the Uniform Allowance shall be determined by the City and will be reported to the California Public Employees' Retirement System (CalPERS) for retirement purposes only. Under CCR 571(a), Uniform allowance is defined as "Compensation paid or the monetary value for the purchase, rental and/or maintenance of required clothing, including clothing made from specially designed protective fabrics, which is a ready substitute for personal attire the employee would otherwise have to acquire and maintain. This excludes items that are solely for personal health and safety such as protective vests, pistols, bullets and safety shoes. 51 65D-59 ARTICLE XIV 14.0 RELEASE TIME FOR ASSOCIATION REPRESENTATIVE During the term of this MOU, the City agrees to grant full-time release from duty for one (1) Association representative for the conduct of Association affairs subject to the following: 14.1 The POA Association President cost shall be paid one hundred percent (100%) of salary including any salary additives, such as career incentive pay, confidential premium pay, benefit costs and pension cost. All Association members shall donate one floating holiday annually to city as reimbursement for 100% of the cost of the Association President salary, additives, such as career incentive pay, pension and benefit costs. A. The City shall pay the POA President a "Confidential Premium" in lieu of 20 hours per pay period at time and one-half. This premium is contained in the California Public Employees' Retirement Law (PERL) and is described as "compensation to rank and file employees who are routinely and consistently assigned to sensitive positions requiring trust and discretion." The parties agree that the value of this premium shall be equivalent to 28 hours of pay at straight time per pay period. The rate paid shall be tied to the incumbent's rank. The POA agrees that the acceptance of said compensation as "PERSable" is subject to PERS approval. B. The Police Chief shall allow on -duty time, (up to three days) for five board members, once per year, to attend the Peace Officers' Memorial. The Police Chief shall allow on -duty time (up to four days) for five board members, once per year, to attend the Fraternal Order of Police ("FOP") training. POA will pay for all costs for the board members attendance at said events, including per diem, travel, hotel, etc. If the Memorial or FOP falls on a board members normal day off, they will not receive on -duty pay for attendance. C. The City agrees to grant up to a total of sixty hours (60) per fiscal year on a non- cumulative basis to enable the POA members, officers, worksite leaders/stewards, to conduct Union business and assist other bargaining unit employees in processing grievances under the Grievance Review Procedure; provided, however, that such POA members officers, worksite leaders/stewards and aggrieved employees shall make advance arrangement with their supervisors prior to absenting themselves for such purpose. The officers, worksite leaders/stewards and aggrieved employees shall be required by the City to record and report to their supervisors the work time spent in assisting other bargaining unit employees pursuant to this provision of the MOU. 14.2 The Association shall provide an insurance policy or policies, or certificate of such insurance, naming the City of Santa Ana, its officers, employees and agents as insured or additional insured, which provides coverage against liability for any and all claims and/or suits for damages or injuries to persons or property resulting from or arising out of any act or omission of said Association representative. Said policy or policies of insurance shall provide coverage for both bodily injury and property damage in not less than the 52 following minimum amounts: One million dollars ($1,000,000.00) combined single limit or its equivalent. Said policy or policies shall also contain a provision that no termination, cancellation or change of coverage of insured or additional insured shall be effective until thirty (30) days' notice thereof has been given in writing to the City of Santa Ana. 14.3 The Association shall provide the City of Santa Ana with an insurance certificate from a workers' compensation insurance carrier certifying that it carries primary workers' compensation insurance on behalf of said Association representative and the policy shall not be cancelled nor the coverage reduced except upon ten (10) days' prior notice to the City of Santa Ana. 14.4 The Association shall indemnify and save harmless the City of Santa Ana, its officers and employees, from and against any and all damage to property or injuries to or death of any person or persons, including property and employees or agents of the City of Santa Ana, and shall defend, indemnify and save harmless the City of Santa Ana, its officers and employees, from any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers' compensation claims, resulting from or arising out of the negligent acts, errors, or omissions, or arising out of the intentional or malicious acts of Association's representative. 14.5 The Association and the City of Santa Ana agree that the Association's representative will not be required to carry out any peace officer's duties during such time that the Association's representative is on such full-time release from duty. The Association's representative will be required to comply with the Rules and Regulations of the Santa Ana Police Department as they apply to off-duty employees, except such representative will not be required to report for duty for any purpose. 14.6 Upon return to duty from such full-time release, the Association's representative shall be restored to the same position without loss of any benefits as he or she would have occupied or accrued if there had been no disruption in duty status. The Association agrees that since the Association representative does not report for duty or account to the City for his or her sick leave or vacation time, that vacation and sick leave accruals shall be treated as follows: A. The Association representative shall accrue eight (8) hours of sick leave each month until the accrued sick leave total reaches a maximum of 1600 hours. B. Vacation shall be accrued pursuant to Article X of the POA MOU. 53 65D-61 ARTICLE XV 15.0 RESIDENCY 15.1 At the discretion of the Police Chief, selected special duty assignments may be designated as rapid response assignments. In those instances, the Police Chief may apply specific requirements upon members assigned to those positions to live within a certain distance of City Hall. 54 65D-62 ARTICLE XVI 16.0 DISCIPLINE 16.1 Any permanent employee covered by this MOU may only be disciplined in accordance with the standards and procedures and subject to all rights of appeal set forth in Santa Ana Municipal Code Sections 9-9, 9-10, 9-118.1, et seq. Any probationary employee covered by this MOU may be disciplined in accordance with the standards and procedures set forth in Santa Ana Municipal Code Sections 9-90, 9-91, 9-118, and subject to review in accordance with the grievance review procedure contained in this MOU. The City and the Union agree that for suspension, demotion and termination the employee may appeal imposed discipline to the Personnel Board. However, the employee and the City may by mutual agreement, delegate the hearing of the appeal to a Hearing Officer. The Hearing Officer shall be a neutral individual with training and experience in administrative law and due process who shall conduct an evidentiary hearing and make findings on employee disciplinary appeals. The City will request a list of hearing officers from the State Mediation and Conciliation Service and will jointly strike names to select the hearing officer. The first strike will be determined by a flip of a coin. Such findings and recommendations shall be submitted to the Personnel Board. The Personnel Board shall consider the Hearing Officer's report within sixty days after it is issued. The Personnel Board has the power to adopt, modify or reject the findings and recommendations of the Hearing Officer based upon the record. The City shall pay for the Hearing Officer. Per Government Code section 3304.5, the Parties also agree that for any form of "punitive action" as defined by the. Public Safety Officers' Procedural Bill of Rights not addressed above and which does not result in the loss of property, the appeal of such punitive action is an appeal to the Chief of Police. The Chief s decision following the appeal is the final decision in the City, subject to review in court per Code of Civil Procedure section 1094.5. 16.2 In addition, a new section shall be added to the Municipal Code to provide as follows: A. In the event an employee is ordered to absent himself from the job based on probable cause and it is subsequently determined by the Police Chief, the City Manager, Personnel Board or a court of competent jurisdiction, that cause did not exist for the ordered absence, the employee shall have restored to him any paid leaves of absence against which such absence may have been charged, and he shall be granted a retroactive leave of absence with pay for the time during which he was prohibited from performing the duties of his position, less any compensation paid to him by the City during such ordered absence unless such employee waives his/her rights to retroactive pay. B. In the event an employee is reduced, suspended and/or discharged, and upon appeal the City Manager, Personnel Board or a court of competent jurisdiction does not sustain such reduction, suspension, and/or discharge, the employee shall be entitled to his base rate or salary including all additives, vacation, and sick 55 65D-63 leave as if such unsustained reduction, suspension, or discharge had not been invoked. However, in no event shall an employee be entitled to any salary or credit for vacation and sick leave for any period of time covered by a suspension sustained on appeal or for any period of time waived by the employee as a condition to the granting of a continuance of any hearing on appeal. C. If, during an absence for which an employee is paid pursuant to this Section, he earned any money which he would not have earned had he continued to perform the duties of his position, such sum shall be deducted from the salary otherwise payable to him pursuant to this Section. 56 65D-64 ARTICLE XVII 17.0 GRIEVANCE REVIEW PROCEDURE 17.1 Definition of Grievance. A grievance shall be defined as a timely complaint by an employee or group of employees or the Association concerning the interpretation or application of specific provisions of this MOU, or of the rules and regulations governing personnel practices or working conditions of the City; except, however, those matters specifically assigned to the jurisdiction of the City Personnel Board by provision of the City Charter and the Civil Service Rules and Regulations. No employee shall suffer any reprisal because of filing or processing of a grievance or participating in the Grievance Review Procedure. 17.2 Informal Process. A. An employee must fust attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor without undue delay, but in no case, beyond a period of ten (10) calendar days after the occurrence of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. If the employee's grievance is directed against the actions of his or her immediate supervisor, the employee may initiate his or her grievance with his or her Division Commander. In such cases, the employee shall file his or her grievance directly with the Division Commander within ten (10) calendar days of the event. Response time lines will continue as designated for Division Commander and above. If the grievance is directed toward the Division Commander, the employee may file directly with the Bureau Commander. B. The Supervisor will respond to the grievance within seven (7) calendar days of receiving the grievance. C. If the grievance is not resolved at the immediate supervisor level, the employee, within ten (10) calendar days of the supervisor's response, will attempt to resolve the grievance on an informal basis through discussion with his or her Division Commander. The Division Commander will respond to the grievance within seven (7) calendar days of receiving the employee grievance. D. Every effort shall be made to find an acceptable solution to the grievance through this informal process. E. If the grievance is not resolved at the informal level, the employee shall then set forth the grievance in writing, indicate the nature of the action desired, sign it, and submit it in duplicate to his or her Bureau Commander. At this point, the grievance review process becomes formal. Should the grievant fail to file a written grievance, and in the manner specified above, within ten (10) calendar days after receiving the response from his or her Bureau Commander, the 57 grievance shall be barred and waived. 17.3 Formal Process. A. If the grievance is not resolved through the informal process, and a written grievance is filed within the time limits set forth above, the grievant's immediate supervisor and Division Commander will add their comments and any justification they consider proper, sign it, and forward it to their Bureau Commander without undue delay, or in no case, more than seven (7) calendar days after receiving the formal grievance. A copy shall be provided to the employee. B. The Bureau Commander, after study of the case, shall attach his or her decision and reasons therefore, and return them to the employee within seven (7) calendar days after receipt of the written grievance. C. If no satisfactory settlement has been reached at the division level, the employee may, within seven (7) calendar days after receipt of the Bureau Commander's decision may, in writing, request a meeting with the Police Chief to pursue the employee's grievance. Failure of the grievant to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the Bureau Commander's response. D. If the grievant files a written grievance to the Police Chief in the matter and within the time limits specified in "C" above, then a conference shall be held at the request of the employee or the Police Chief. E. The Police Chief shall inform the employee of his action within fourteen (14) calendar days of the filing of the written grievance with the Police Chief or the date the conference is held between the employee and the Police Chief. F. If no satisfactory settlement has been reached at the departmental level, the employee may, within seven (7) calendar days after being informed by the Police Chief of his decision on the matter, and the reasons thereof, submit the grievance in writing to the City Manager, or his duly authorized representative, for determination. Failure of the grievant to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the Police Chief s response. The City Manager, or his representative, after careful review, shall render a final decision on the merits of the grievance, in writing, and return it to the grievant within twenty-one (2 1) calendar days after receiving the grievance. A copy of the written grievance to the City Manager, and of the City Manager's decision, shall be filed in the Personnel Records of the department and the grievant's personnel jacket maintained in the Human Resources Department. G. After the procedure set forth in this Article has been exhausted, the grievant, the Association, and the City shall have all rights and remedies to pursue said 58 65D-66 grievance under the law. 59 65D-67 ARTICLE XVIII 18.0 DUES DEDUCTION AND INDENINIFICATION 18.1 Dues Deduction. The City shall deduct dues, on a regular basis, from the pay of all employees recognized to be represented by the Association, who voluntarily authorize such deduction, in writing, on a form to be provided for this purpose by the City. The City shall remit such funds to the Association within thirty (30) days following their deduction. 18.2 Indemnification. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of actions, or lawsuits instituted by a member or members of the Association arising out of the deductions or transmittal or such funds to the Association, except the intentional failure of the City to transmit, to the Association, monies deducted from the employees pursuant to this Article. �I M • • ARTICLE XD{ 19.0 CITY RIGHTS 19.1 The City reserves, retains, and is vested with, solely and exclusively, all rights of Management which have not been expressly abridged by specific provision of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of Management, as they are not abridged by this MOU or by law, shall include but not be limited to the following rights: A. To manage the City generally and to determine the issues of policy. B. To determine the existence or non-existence of facts which are the basis of the Management decision. C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. To determine methods of financing. F. To determine types of equipment or technology to be used. G. To determine and/or change the facilities, methods, technology, means, and size of the work force by which the City operations are to be conducted. H. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. I. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments. J. To relieve employees from duties for lack of work or similar non -disciplinary reason, subject to the provisions of the City Charter, Municipal Code, federal and state law and this MOU. K. To establish and modify productivity and performance programs and standards. L. To discharge, suspend, demote, or otherwise discipline employees for proper cause in accordance with the provisions and procedures set forth in the City Charter and Santa Ana Municipal Code. M. To determine job classifications and to reclassify employees. 61 65D-69 N. To hire, transfer, promote, and demote employees for non -disciplinary reasons in accordance with this MOU. O. To determine policies, procedures, and standards for selection, training, and promotion of employees. P. To establish employee performance standards including, but not limited to, quality and quantity standards and to require compliance therewith. Q. To maintain order and efficiency in its facilities and operations. R. To establish and promulgate and/or modify rules and regulations to maintain order and safety in the City which are not in contravention with this MOU. S. To take any and all necessary action to cavy out the mission of the City in emergencies. 19.2 Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on a significant number of employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in the MOU. .The City and Association agree that upon the expiration of this contract and during the good faith negotiations for a subsequent contract, salary and benefits shall continue at the then current rate. N 65D-70 ARTICLE XX 20.0 STRIKES AND WORK STOPPAGES 20.1 Prohibited Conduct. A. The Association, its officers, agents, representatives, and/or members agree that during the term of this MOU, they will not cause or condone any unlawful strike, walkout, slowdown, sick-out or any other unlawful job action by withholding or refusing to perform services. B. Any employee who participates in any conduct prohibited in Subsection A above shall be subject to suspension, demotion or dismissal by the appointing authority. C. In addition to any other lawful remedies or disciplinary actions available to the City, if the Association fails, in good faith, to perform all responsibilities listed below in Section 20.2, Association Responsibility, the City may suspend any and all rights and privileges, accorded to the Association in this MOU, including but not limited to suspension of the Grievance Review Procedure and dues deduction. 20.2 Association Responsibility. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 20.1A of this Article, Prohibited Conduct, the Association shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and unlawful, and they must immediately cease engaging in conduct prohibited in said Section 20.1A, and return to work. 63 65D-71 ARTICLE XXI 21.0 LAYOFFS 21.1 All layoffs within the competitive service occasioned by abolishment of a position, the combination of duties of two (2) or more positions, or the reduction in numbers of employees in a given class, shall be governed by seniority in the class. Reemployment shall be in reverse order of layoff. 21.2 Any promotional probationary employee laid off under these procedures who held permanent status in a lower class shall retain seniority rights in the previously held classification provided that it is still listed in the City's current basic classification and compensation plan. 21.3 Any permanent, full-time employee laid off under the above provisions may request a demotion to a position in a lower class provided he/she meets reasonably related qualifications required for placement in the class and the position is vacant. 21.4 In lieu of layoff, an employee may elect to work in a lower level classification, in which he or she has served, providing that classification is within the same job family/career ladder. In that event, the employee's length of service in the next lower classification will be added to his or her length of service in the affected classification, and said combined seniority shall be used to bump down into the next lower classification. This method of combining seniority shall be applied to subsequent lower classifications. 21.5 For positions that were advertised in the Police Department as "open and promotional" or "promotional only" which are open to Police Department employees only, there will be created a "job ladder" such that those employees in positions to be eliminated through layoff shall be entitled to return to the POA job classification in the Police Department from which they promoted, "bumping" any employee in that job class with less cumulative years of service in that job class than the bumping employee had in that job class prior to promotion. 21.6 Notice of Service. On request, a laid off employee shall receive a statement certifying that his/her services have been satisfactory. Layoff shall not be used in lieu of a disciplinary dismissal. M 65D-72 ARTICLE =I 1 _ • : ► � ►Y IC : ul ►YI 22.1 It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements and memoranda of agreement, or memoranda of understanding, or contrary salary and/or personnel rules and regulations or administrative codes, provisions of the City, oral and written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with federal or state law or the City Charter. 22.2 The City will continue to administer its employee relations and its personnel policies and procedures in accordance with duly -adopted ordinances and resolutions, and the affected employees will continue to be governed thereby during the term of this MOU. 65 65D-73 ARTICLE XXIH 23.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU 23.1 During the term of this MOU, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours, and terms and conditions of employment, whether or not covered by the MOU or in the negotiations leading thereto, unless required by specific provisions of this MOU, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU. r] 65D-74 ARTICLE XXIV 24.0 SEPARABILITY PROVISION 24.1 Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU, provided that if any such affected provisions invalidate or void any benefits of employees covered hereunder, the parties shall forthwith commence negotiations to replace the invalidated benefits with benefits of comparable value. 67 65D-75 ARTICLE XXV 25.0 TERM OF MOU 25.1 The term of this MOU shall be from July 1, 2018 through June 30, 2021. �l 65D-76 CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: MAYOR Dated: By: ACTING CITY MANAGER Dated: By: ATTEST: ACTING CLERK OF THE COUNCIL APPRO- AST ORM: Peter J. Brown Liebert Cassidy Whitmore LEGAL COUNSEL FOR CITY OF SANTA ANA 69 65D-77 EXECUTIVE DIRECTOR OF HUMAN RESOURCES This MOU has been ratified by the membership of the Santa Ana Police Officers Association. Dated: SANTA ANA POLICE OFFICERS ASSOCIATION 0 Gerry Serrano PRESIDENT 70 65D-78 BASIC SALARY AND WAGE SCHEDULE 0 1 2 3 4 5 6 7 8 9 41 1542 1549 1557 1565 42 1619 1627 1635 1643 43 1700 1708 1717 1725 44 1785 1793 1802 1811 45 1874 1883 1892 1902 46 1968 1977 1987 1997 47 2066 2076 2086 2097 48 2169 2179 2190 2201 49 2277 2288 2299 2311 50 2391 2402 2414 2427 51 2511 2523 2536 2548 52 2637 2650 2663 2676 53 2769 2782 2796 2810 54 2907 2921 2936 2950 55 3052 3067 3082 3098 56 3205 3221 3237 3253 57 3365 3381 , 3398 3415 58 3533 3550 3568 3586 59 3710 3728 3747 3765 60 3896 3915 3935 3954 61 4091 4111 4132 4152 62 4296 4317 4339 4360 63 4511 4533 4556 4579 64 4741 4764 4787 4810 65 4978 5002 5026 5051 66 5226 5252 5278 5304 67 5488 5515 5542 5569 68 5762 5790 5818 5847 69 6050 6080 6110 6140 70 6353 6384 6415 6446 1573 1580 1651 1659 1734 1742 1820 1830 1911 1921 2007 2017 2107 2118 2212 2223 2322 2334 2439 2451 2561 2574 2690 2703 2824 2838 2965 2980 3113 3129 3269 3285 3432 3449 3604 3622 3784 3803 3974 3994 4173 4194 4382 4404 4601 4624 4834 4858 5076 5101 5330 5356 5596 5623 5876 5905 6170 6200 6478 6510 71 Ar o •ll L• 1588 1596 1604 1612 1668 1676 1684 1693 1751 1760 1769 1778 1839 1848 1857 1866 1930 1940 1950 1960 2027 2037 2048 2058 2128 2139 2150 2160 2234 2246 2257 2268 2346 2357 2369 2381 2463 2475 2488 2500 2587 2600 2613 2626 2717 2730 2744 2758 2853 2867 2881 2896 2995 3010 3025 3040 3144 3160 3176 3192 3302 3318 3335 3352 3467 3484 3501 3519 3640 3658 3676 3695 3822 3841 3861 3880 4014 4034 4054 4074 4215 4236 4257 4278 4426 4448 4470 4493 4648 4671 4694 4718 4882 4906 4930 4954 5126 5151 5176 5201 5382 5408 5434 5461 5650 5678 5706 5734 5934 5963 5992 6021 6230 6260 6291 6322 6542 6574 6606 6638 71 6670 6702 6735 6768 6801 6835 6869 6903 6937 6971 72 7005 7039 7073 7107 7141 7176 7211 7247 7283 7319 73 7355 7391 7427 7463 7499 7535 7571 7609 7647 7685 74 7723 7761 7799 7837 7875 7913 7951 7989 8029 8069 75 8109 8149 8189 8229 8269 8309 8349 8389 8431 8473 76 8515 8557 8599 8641 8683 8725 8767 8809 8853 8897 77 8941 8985 9029 9073 9117 9161 9205 9250 9296 9342 78 9388 9434 9482 9529 9577 9625 9673 9721 9770 9819 79 9857 9906 9955 10005 10055 10105 10156 10207 10258 10309 80 10350 10401 10453 10506 10558 10611 10664 10717 10771 10825 81 10868 10922 10976 11031 11086 11142 11198 11254 11310 11366 82 11411 11468 11525 11583 11640 11699 11757 11816 11875 11934 83 11982 12041 12102 12162 12223 12284 12345 12407 12469 12532 84 12581 12643 12707 12770 12834 12898 12963 13027 13093 13158 85 13210 13275 13342 13409 13476 13543 13611 13678 13748 13816 86 13871 13939 14009 14079 14150 14220 14292 14362 14435 14507 87 14565 14636 14709 14783 14858 14931 15007 15080 15157 15232 88 15293 15368 15444 15522 15601 15678 15757 15834 15915 15994 72 65D-80 UNIFORM ALLOWANCE BY CLASSIFICATION Job Title Monthly Uniform Allowance Animal Service Officer I $15.42 Animal Service Officer II $15.42 Communications Services Officer $14.58 Correctional Officer $14.34 Correctional Supervisor $14.34 Forensic Specialist I $14.34 Forensic Specialist II $14.34 Parking Control Officer $14.58 Police Communications Supervisor $14.58 Police Community Services Specialist $14.58 Police Investigative Specialist $14.58 Police Property & Evidence Supervisor $14.58 Police Recruit $14.58 Police Officer $20.84 Police Sergeant $20.84 Police Officer (with Motor Officer Premium) $24.16 Police Sergeant (with Motor Officer Premium) $24.16 Police Service Officer $14.58 Police Services Dispatcher $14.58 Senior Parking Control Officer $14.58 Traffic Services Specialist $14.58 73 65D-81 65D-82 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: PUBLIC HEARING - ADOPT MITIGATED NEGATIVE DECLARATION RESOLUTION FOR SANTA ANA UNITED METHODIST CHURCH PROJECT LOCATED AT 609 NORTH SPURGEON STREET; ADOPT A RESOLUTION SUPPORTING NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA SUBMITTAL OF AN APPLICATION FOR THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM; AND APPROVE DENSITY BONUS AGREEMENT {STRATEGIC PLAN NO. 3,2; 5, 3 & 6} CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1"Reading ❑ Ordinance on 2°d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt a resolution adopting Mitigated Negative Declaration Environmental Review No. 2018- 134 and a Mitigation Monitoring and Reporting Program relative to Density Bonus Agreement 2018-01. 2. Adopt a resolution supporting National Community Renaissance of California's submittal of a funding application for the Affordable Housing and Sustainable Communities Grant Program in the amount not to exceed $20,000,000 for the Santa Ana United Methodist Church project located at 609 North Spurgeon Street, and if awarded, authorizing the City of Santa Ana to enter into an agreement with National Community Renaissance of California utilizing grant funds to construct the transportation related infrastructure for the project, 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 a Density Bonus Agreement with National Community Renaissance of California, or assigns, for a 55 -year term, for the development of the Santa Ana United Methodist Church project located at 609 North Spurgeon Street, subject to non -substantive changes approved by the City Manager and City Attorney. 75A-1 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 2 PLANNING COMMISSION ACTION At its regular meeting on January 14, 2019, the Planning Commission considered draft Mitigated Negative Declaration No. 2018-134 and recommended approval of the Density Bonus Agreement No. 2018-01 by City Council as conditioned by a vote of 5:2 (Commissioner Nguyen and Cano opposed). On January 15, 2019 City Council authorized the City Manager and Clerk of the Council to execute a pre -loan commitment letter with National Community Renaissance of California ("National CORE") with Mercy House Living Centers ("Mercy House") as the service provider for $3,170,547 in Inclusionary Housing Funds for the development of the Santa Ana United Methodist Church affordable housing project located at 609 N Spurgeon Street, Santa Ana ("Legacy Square"). The Housing Authority also approved an award of eight (8) project -based vouchers and authorized the Executive Director of the Housing Authority and the Recording Secretary to execute an Agreement to enter into a Project -Based Vouchers Housing Assistance Payments Contract with National CORE for the development of the project. In order for National CORE to develop Legacy Square, the developer will need a Resolution authorizing them to pursue grant funds from the State of California; a Density Bonus Agreement authorizing them to build the number of units that they are proposing; and a Resolution adopting the required California Environmental Quality Act (CEQA) documents. A general introduction for each action is provided below with more detail thereafter. In regards to the project financing, National CORE estimates the total development costs for the project to be $46,729,000. A large portion of National CORE's financing for the project includes applying for up to $20,000,000 in Affordable Housing and Sustainable Communities ("AHSC") funds made available through the State of California Department of Housing and Community Development (HCD). Administered by the Strategic Growth Council and implemented by HCD, the AHSC Program funds land -use, affordable housing, transportation, and land preservation projects to support infill and compact development that reduce greenhouse gas ("GHG") emissions. The deadline for the application is February 11, 2019. A resolution of the City Council supporting the submittal of the application for funding and, if awarded, authorizing the City to enter into an agreement with the developer for the use of the funds is included as Exhibit 1. The AHSC Implementation Agreement is included as Exhibit 2. Additional details on this Resolution and Implementation Agreement are provided below. In regards to land use, Santa Ana Municipal Code Section 41-1607 requires that the Planning Commission review a Density Bonus Agreement when a waiver or modification from local development standards are requested pursuant to the state density bonus law. On January 14, 2019, the Planning Commission recommended approval of a resolution by a vote of 5:2 approving Density Bonus Application No. 2018-01 as conditioned. A Density Bonus Agreement is required for the project to be fully entitled. The development will be 100% affordable to households earning less than 60 -percent Area Median Income or approximately $52,470 for a family of four. The approval of Density Bonus Agreement Application No. 2019-01 as conditioned will accomplish the goal of providing affordable housing opportunities in the City consistent with the purpose of the underlying zone and applicable designation in the General Plan land use element. The approval of the Density Bonus Agreement does not bind the City in any form to provide future funding for 75A-2 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 3 the development of the project, in the event the additional sources of funding do not materialize. The Density Bonus Agreement is included as Exhibit 4. Additional details on this Agreement are provided below. Furthermore, in regards to land use, the project must comply with the provisions of CEQA requiring the evaluation of environmental impacts in connection with proposals for discretionary projects. An Initial Study and Mitigated Negative Declaration (IS/MND) with technical studies (geotechnical study, traffic study, infiltration study, Phase I Cultural Resources Inventory, Noise and Phase I site assessment), was prepared for the project. No areas of significant impact were determined from the construction or operation of the proposed project with the implementation of the mitigation measures for aesthetics, biological, cultural, noise, public services, hazards, and tribal cultural resources. In addition, a Mitigation Monitoring and Reporting Program (MMRP) has been prepared to ensure compliance with and effectiveness of the mitigation measures. The CEQA Resolution is included as Exhibit 6. Additional details on this Resolution are provided below. This Staff Report consolidates the above three City actions required to develop the Legacy Square affordable housing project at 609 N Spurgeon Street. Affordable Housing and Sustainable Communities Resolution and Agreement On November 1, 2018, HCD announced the availability of approximately $395 million in funding for the AHSC Program. The AHSC Program funds are offered through a Notice of Funding Availability that provides funding for projects that reduce GHG emissions by supporting more compact, infill development patterns, encouraging active transportation and transit usage, and protecting agricultural land from sprawl development. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund, an account established to receive auction proceeds from the California Cap -and -Trade Program. The application for AHSC funds to be submitted by National CORE (the "Developer") is not to exceed $20,000,000, of which up to $16,465,511 is requested for the Affordable Housing Development (AHD) at Legacy Square and up to $3,534,489 is requested for: • Sustainable Transportation Infrastructure (STI) - capital projects that result in the improvement or addition of infrastructure that encourages mode -shift from single occupancy vehicles by enhancing: 1) public transit service, 2) pedestrian networks, or 3) bicycle networks within the defined Project Area. • Transit -Related Amenities (TRA) - capital improvements that are publicly accessible and provide supportive amenities to pedestrians, cyclists and transit riders (i.e. bike parking, bus shelter, benches, street trees, etc.) within the defined Project Area; and • Program (PGM) activities - New active transportation, transit ridership, and/or workforce development programs or expansion of existing programs to serve new populations. The Legacy Square project is a 93 -unit new construction affordable housing development at 609 N. Spurgeon Street in Santa Ana targeting low-income families making 30% to 60% Area Median Income (Project). The development will also include 33 units of housing with supportive services. The AHSC Grant will be for a portion of the AHD and the STI and TRA improvements related to the Project. The STI and TRA improvements around the project include Class II buffered bicycle lanes on Civic Center Boulevard between Broadway and Santiago Street, Class IV bicycle lanes 75A-3 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 4 on Santiago Street between Civic Center Boulevard and the Santa Ana Regional Transportation Center (SARTC), and pedestrian and mobility improvements as shown on the map in Exhibit 3. The project is consistent with the goals set forth in the Southern California Association of Governments' 2012-2035 Regional Transportation Plan/Sustainable Communities Strategy, which places great importance on sustainable and smart growth, as well as the interconnectivity of land use and transportation planning. The Resolution supports the submission of an application for funding under the AHSC Program (Exhibit 1). Contingent on the award of funds, the resolution authorizes the City Manager to enter into an agreement with the Developer to utilize those AHSC funds in an amount up to $3,081,360 to develop the surrounding transportation -related improvements around the Project. The AHSC Implementation Agreement is a minimum threshold requirement for the AHSC application (Exhibit 2). The remaining $453,129 is allocated to transit programs and transit -related amenities to build and operate a bicycle kiosk, car share program, three (3) years of transit passes for each household, and onsite urban greening components. Density Bonus Agreement National CORE requires approval of a Density Bonus Agreement (DBA) to allow the construction of Legacy Square (Exhibit 4). The Planning Commission recommended approval of the Density Bonus Agreement on January 14, 2019 by a vote of 5:2 (Commissioner Nguyen and Cano opposed) (Exhibit 5). As proposed, the project will take advantage of waivers from development standards and/or development concessions pursuant to California Government Code sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Section 41-1600 through 41-1607. The request satisfies the purpose and intent of the Transit Zoning Code (TZC) to promote a pedestrian -oriented environment with a mix of land uses and will provide additional affordable housing stock to an underserved segment of the region's population. The project is proposed to be entirely affordable with ninety-two (92) units available to households earning less than 60 -percent of the Area Median Income (AMI). The last remaining unit will be a dedicated manager's unit. Table 1 provides a complete breakdown of the unit affordability mix proposed by the developer for the project: Table 1: Unit Affordability Mix 75A-4 Permanent Extremely Low - Supportive Low- Very Low Income Housing - Income - Income —60% Total 30% AMI 30% AMI 50 /o AMI AMI 1 -bedroom 30 30 2 -bedroom 3 6 20 12 41 3 -bedroom 5 11 5 21 3 -bedroom Manager I i i 1 Total 1 33 1 11 1 31 17 93 75A-4 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 5 Density Bonus Calculation The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on-site housing units in exchange for providing affordable units on-site. To help make constructing on-site affordable units feasible, the law allows developers to seek up to three incentives/concessions and request an unlimited number of waivers, which are essentially variances from development standards to support the project to be developed without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers for 100 -percent affordable developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. Due to the project's 100 -percent affordability rate the developer can seek up to three density bonus concessions and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, the City's Housing Opportunity Ordinance (HOO) allows developers to request up to two concessions to facilitate construction of affordable housing. Pursuant to Sec. 41-1904.1 of the HOO, the developer is requesting a 35 -percent density bonus. As outlined by Table 2 below, the maximum unit yield for the 1.74 -acre site using the TZC standards and both City and State density bonus is 94 units. Table 2: Density Bonus Calculation NEW"in—sit_or Bonus AllowediforiP,ro ec Proviaed 52 units (1.74 acres x 30 units/acre Base Density base density based on Courtyard 52 Units Housing type, which is the most "intense" type allowed in UN -2). 35 -Percent State Density Bonus 70 units 52 x 0.35 +18 Units 35 -Percent Bonus Provided by the 94 units (70 x 0.35) +24 Units Housin O or unit Ordinance Total Units 94 units maximum 93 units pro osed The purpose of the HOO and the State Density Bonus Law is to encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within new developments. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested concessions and waivers and is preempted from denying the Density Bonus Agreement application. Although the City has analyzed the project, the conditions of approval proposed for the project are intended to address any of the project's potential impacts. Table 3 outlines the incentives/concessions and waivers requested by the applicant. 75A-5 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 6 Table 3: Requested Incentives/Concessions TZC1StanttaYd '� #Re uirement; IP.ropided A Hybrid Court Building Type is Maintaining the required 10'-0" front yard setback would involve the significant loss of (Incentive/Concession) Sec. 41-2020 & 41-2040 — The UN -2 land use designation only proposed at this location which is not Permitted Building Type and permits the Hybrid Court Building permitted, pursuant to the TZC — Architectural Style Type in certain locations. Requires Waiver, Cal. Gov't Code of construction (steel -frame versus wood), further increasing development costs. In Sec. 65915 (e)(1) Sec. 41-2014 —Building Setbacks 10 feet (front), 10 feet (street side), 0 feet (front) and 10 feet (side) — Requires Concession (1 of 2), Cal. 15 feet (rear) Gov't Code Sec. 65915 (d)(1) Maintaining the maximum encroachment of 2'-0" into the required street side setbacks Sec. 41-2014 of the TZC allows a Proposed deck design encroaches 6'-0" into the required 10'-0" street maximum encroachment of 2'-0" into side setback along Spurgeon and Sec. 41-2014 — Encroachments the required street side setback, French Street —Requires subject to a minimum vertical Concession (2 Cal. Gov't parking, resulting in increased construction costs and/or a loss of additional units. clearance of 12'-0". Code Sec. 659155 (dd) 1 In addition, the site is parked in compliance with California Government Code Section 65915(p)(3)(A) and AB 744, and provides 1.1 spaces per unit, inclusive of handicapped and guest parking. Analysis of the Issues The following subsections analyze the applicant's request for the Density Bonus Agreement application. Table 4: Analysis of the Requested Incentives/Concessions (2) and Waiver (1) IStandard [%ttlat sis Building Setbacks Maintaining the required 10'-0" front yard setback would involve the significant loss of (Incentive/Concession) mixed-use space and the loss of six (6) three-bedroom units. In addition, implementing the required front yard setback standard would result in the building being set back an additional 6-7 feet from the front property line, resulting in a significant loss of parking area and common open space. In order to maintain the current proposed unit count, the developer would be required to construct an additional level, resulting in a different type of construction (steel -frame versus wood), further increasing development costs. In addition, in order to maintain the current parking count the developer would be required to construct additional parking (above- or below -grade), resulting in increased construction costs and/or a loss of additional residential units. Encroachments Maintaining the maximum encroachment of 2'-0" into the required street side setbacks (Incentive/Concession) would result in the significant loss of the required private open space balconies. Implementing the required standard would result in the building being setback an additional 5-6 feet along the eastern and western property lines, resulting in a significant loss of parking area, common open space and residential units. To maintain the current parking count and open space, the developer would be required to construct additional parking, resulting in increased construction costs and/or a loss of additional units. Permitted Building Type The proposed building is required to be designed as one of the building types and and Architectural Style architectural styles permitted by the UN -2 zone. Pursuant to the TZC, the building type (Waiver) and architectural style are considered development standards that are eligible to be waived if they physically preclude the construction of the project. The project proposes a Hybrid Courtyard Building Type and Main Street Commercial architectural style, which are only permitted in the UN -2 zone in certain locations of the TZC, but not permitted on the project site. However, if the projectwere designed as any other permitted building type or architectural style the project would result in a significant loss of residential units and a loss of any retail, service or office use. As a result, a waiver from the allowable building a and architectural style is required. 75A-6 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 7 When analyzed cumulatively, the two requested concessions could be avoided if the project were designed using a different site plan or constructed using a different type of construction (steel- frame/Type I versus wood/Type III). If the project were designed with a multi-level parking and/or subterranean parking structure, or if the applicant used different building materials to construct a taller project, additional area on site would become available to provide open space and parking, and would allow the project to meet the required front yard setback. However, these changes would substantially increase the project's total development costs and result in a project that would exceed the maximum permitted building height, resulting in the affordable housing project becoming financially infeasible due to the significantly increased financial implications of an alternative construction type. Key Terms in the Density Bonus Agreement The following is a list of key terms agreed upon in the Density Bonus Agreement: 1. Term of Agreement. The term of the Agreement shall commence on February 5, 2019 and shall continue until the date that is fifty-five (55) years after the City issues the last certificate of occupancy for the Project. 2. Project. Developer shall develop, operate, and maintain the property as a ninety-three (93) unit affordable residential rental community, with ninety-two (92) affordable units and one (1) unrestricted unit (Manager's Unit). Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than fifty-five (55) years 3. Unit Mix. No less than seventy-five (75) Affordable Units in the Project shall at all times during the term of the agreement be rented to, or held vacant and available for immediate occupancy by Very Low Income Tenants (< 50% AMI) and no less than seventeen (17) Affordable Units in the Project shall at all times be rented to, or held vacant and available for immediate occupancy by Low Income Tenants (<60% AMI). 4. Affordable Rent Schedule. The rents shall be determined by the regulatory agreements entered into between the developer and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee governing the project. 5. Selection of Tenants. Developer shall give preference in leasing units to households that live and/or work in the City of Santa Ana or who have an active Housing Choice Voucher. 6. Application and Financial Preparedness. Developer shall submit for review and approval by the City a booklet to inform interested persons regarding minimum application and eligibility requirements and to assist interested persons with application and financial preparedness and eligibility for residency at the Project at the initial leasing of the units. Developer shall also work with the City to hold a minimum of two workshops to be coordinated by the Developer at least 12 months prior to the initial leasing of the units. 7. Marketing Program. Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval of a marketing program for the leasing of the Affordable Units at the Project. 8. Onsite Supportive Services, Programs and Amenities. Developer shall provide residents of the Project access to discounted or no -cost onsite supportive services, programming, and amenities that promote child development, youth development, senior independent living, and economic mobility and include but are not limited to: health and wellness services, transportation services, social activities, and physical or recreational amenities. 9. Local Sourcing Plan. Developer agrees to make a good faith effort to encourage contractors and suppliers to hire and procure locally. Prior to issuance of building permit, Developer shall develop and submit to the Community Development Agency a local sourcing plan for the Project targeting, to the extent feasible, the hiring of qualified workers, construction contractors, or the purchasing of goods locally within the City of Santa Ana. 75A-7 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 8 10. Maintenance. Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project. 11. Property Maintenance Agreement. Developer shall execute a maintenance agreement with the City of Santa Ana prior to occupancy which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. 12.Management Plan. Prior to Certificate of Occupancy, Developer shall submit for the reasonable approval of the City a "Management Plan" which sets forth in detail Developer's property management duties, a tenant selection process in accordance with this Agreement, a security system and crime prevention program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules and regulations for the Property and manner of enforcement, a standard lease form, an operating budget, the identity and emergency contact information of the professional property management company to be contracted with to provide onsite property management services at the Property, and other matters relevant to the management of the Property. 13.Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. In recognition of the City's desire to optimize the energy efficiency of the project, Developer agrees to consult with the project design team, a CABEC certified 2016 Certified Energy Analyst, a LEED AP Homes (low-rise and mid -rise), LEED AP BD+C (high rise), National Green Building Standard (NGBS) Green Verifier, or GreenPoint Rater (one person may meet both of these latter qualifications) early in the project design process to evaluate a building energy model analysis and identify and consider energy efficiency or generation measures beyond those required by the TCAC minimum construction standards. 14. Crime Free Housing. Developer shall work with City Staff to develop a crime free housing policy, procedure, and design plan. 15.Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the Planning and Building Agency a Parking Management Plan. The Density Bonus Agreement has been signed by the developer indicating their acceptance of the terms. The agreement is not considered final until the City Council has reviewed and approved the agreement and the agreement is executed by all parties. California Environmental Quality Act (CEQA) Resolution Pursuant to the requirements of the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) was prepared and certified in 2010 in order to address the potential environmental impacts associated with the Transit Zoning Code. However, development of the Legacy Square project would have potential environmental impacts to an eligible but unlisted historical resource (Sanctuary and Anderson Court Complex, 1964-1966, and the Educational Building, 1928- 75A-8 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 9 1929) which was not addressed in the 2010 EIR. Therefore, an Initial Study has been prepared and a Mitigated Negative Declaration (IS/MND) Resolution is requested for approval pursuant to the requirements of CEQA (Exhibit 6). The project was found to have a less than significant impact on the following environmental categories when proposed mitigation measures are implemented: • Aesthetics • Noise • Biological Resources • Public Services • Cultural Resources • Tribal Cultural Resources • Hazards and Hazardous Materials The IS/MND's analysis determined that the above-mentioned environmental categories would cause no substantial adverse change to the environment with the inclusion of environmental commitments, or other enforceable measures, that would be adopted by the City. All mitigation measures in the original EIR and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and are carried over within the IS/MND, with exception of Tribal Cultural Resources and Cultural Resources which required new mitigation measures. Tribal Cultural Resources Assembly Bill 52 (AB 52) requires meaningful consultation with California Native American Tribes on potential impacts on tribal cultural resources (TCRs), as defined in Public Resources Code Section 21074. TCRs are sites, features, places, cultural landscapes, sacred places, and objects with cultural value to a California Native American tribe that are either eligible or listed in the California Register of Historical Resources or local register of historical resources. In order minimize impacts on potential TCRs, the IS/MND outlined mitigation measure TCR -1 requiring consultation of a qualified archaeologist and the local Native American representative, if unanticipated discoveries are made during construction activities. With implementation of mitigation measure TCR -1, potential project impacts on TCRs would be less than significant. Cultural Resources The City has determined the Educational Building to be a "historical resource" for CEQA-compliance purposes and determined that it requires proper mitigation of potential impacts from the proposed demolition. In addition, because the Sanctuary and Anderson Court Complex has also reached the commonly recognized 50 -year age threshold for potential "historical resources," and the two buildings are integral parts of the same religious establishment, the IS/MND recommends that the Sanctuary and Anderson Complex should also be considered a component of the "historical resource." To reduce potential impacts of the proposed demolition to a less than significant level, the IS/MND outlined mitigation measure CUL -1 which is consistent with the TZC EIR which required 'written and photographic recordation of the resource in accordance with the level of Historic American Building Survey (HABS) documentation that is appropriate to the significance (local, state, national) of the resource." Prior to demolition, the developer will be required to document the buildings to Historic American Building Survey (HABS) -like documentation for the historical resources slated for demolition. The HABS-like package will document in photographs and descriptive and historic narrative the historical resources slated for demolition. Documentation prepared for the package will 75A-9 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 10 draw upon primary and secondary source research and available studies previously prepared for the project. Mitigation Monitoring and Reporting Program (MMRP) A Mitigation Monitoring and Reporting Program (MMRP) was prepared pursuant to CEQA Guidelines. The CEQA Guidelines states that, when adopting a mitigated negative declaration, the lead agency shall adopt a program for reporting on or monitoring the changes that it has either required in the project or made a condition of approval to reduce or avoid significant environmental effects. The purpose of this MMRP is to ensure compliance with and effectiveness of the mitigation measures set forth in the Legacy Square project. The MMRP prepared consists of a list of mitigation conditions and/or verifications required for incremental implementation of the project and specifies the following: (1) the responsibility for implementation; (2) the timing for implementation; (3) the mechanisms of monitoring activities, including the frequency, contact and format for reporting requirements; and (4) the content, requirements and ultimate disposition of a final MMRP. The IS/MND's Notice of Intent (NOI) was published in the Orange County Register and posted to the County Clerk on January 8, 2019, for the required 20 -day public comment period. The IS/MND was made available for public review at the City Hall Planning counter, Santa Ana Library in the Civic Center and on the City website (Exhibit 7). The public review period ended on January 29, 2019, which allowed the City to respond to any comments received and incorporate comments and responses into the IS/MND before the City Council public hearing. As of this printing, only two comments or communications from the public have been received on the IS/MND. The public comments received have been included as Exhibit 8. If the MND and MMRP are adopted and approved, a Notice of Determination will be prepared and filed with the County Clerk of the County of Orange in a manner required by law. Table 5: Public Notification & Community Outreach Public Notification & Communi ,;Outreach Required Measures A public notice was posted on the project site on January 4, 2019. Notification by mail was mailed to all property owners and occupants within 500 feet of the project site on January 4, 2019. Newspaper posting was published in the Orange County Reporter on January 4, 2019. The applicant held a Sunshine Ordinance community meeting on the evening of November 27, 2018. This meeting was publicly noticed in the OC Register, posted on the City's website, and invitation mailers were sent to all addresses within a 500 -foot radius of the project site, as well as local community organizations. The meeting included a presentation on the project as well as a question and answer period to address concerns and collect feedback. Approximately 50 individuals attended the meeting. The project applicant has held monthly meetings with the United Methodist Church congregation and United Methodist Church leadership to provide project updates and collect input on the design and amenities to serve the wider neighborhood. Meetings were held in 2018 on July 19th, August 26th, September 23rd, October 28th, and December Community Outreach 2nd. Concurrently, the applicant and the United Methodist Church have worked & Additional collaboratively regarding the coordination of relocation assistance and outreach to local Measures nonprofit organizations to better align and leverage resources. In the last six months, the applicant has had one-on-one meetings with half a dozen local organizations to discuss the project including, but not limited to: the Ebell Club, Vecindad Lacy en Accion (VELA), Kennedy Commission, Latino Health Access, Taller San Jose Health Builders, and the Santa Ana Unified School District. 75A-10 AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 11 STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal # 3 (Economic Development) Objective # 2 of creating new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies; 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) and Objective # 6 (Focus projects and programs on improving the health and wellness of all residents). FISCAL IMPACT There is no fiscal impact associated with this action at this time. If the application for AHSC funding is approved, and National CORE is awarded AHSC funds for Transportation Related Infrastructure, the City of Santa Ana will enter into a contract with the Developer to utilize those funds in an amount up to $3,081,360 to develop specific improvements of the Transportation Related Infrastructure component of the project. At that time, an appropriation adjustment will be recommended to City Council to recognize AHSC Program grant funds in revenue account no (41818002-52025) and appropriating the same to the AHSC Program expenditure account no. (41818832-66220) for the project. A local match is not required for the AHSC Program grant funds. 1:az— J" - Steven A. Mendoza Executive Director Community Development Agency inh Thai M, Executive Director Planning and Building Agency Exhibits: APPROVED AS TO FUNDS AND ACCOUNTS: /44t4'� " Kailftyn Dow s, CPAP po Executive Director Finance and Management Services Agency 1. Affordable Housing and Sustainable Communities Resolution 2. Affordable Housing and Sustainable Communities (AHSC) Agreement 3. Map of AHSC Grant Improvements around the Project 4. Density Bonus Agreement 5. Planning Commission Staff Report from January 14, 2019 6. Mitigated Negative Declaration Resolution a. Exhibit A - Mitigation Monitoring and Reporting Program 7. Initial Study and Mitigated Negative Declaration 8. Public Comments Received 75A-11 75A-12 EXHIBIT 1 ROH — 02/05/19 RESOLUTION NO. 2019-xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING THE SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM OF NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA, AND, IF AWARDED, AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH DEVELOPER UTILIZING THE FUNDS TO CONSTRUCT TRANSPORTATION RELATED INFRASTRUCTURE FOR THE LEGACY SQUARE PROJECT 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 Strategic Growth Council's ("SGC") Affordable Housing and Sustainable Communities ("AHSC") Program funds land -use, housing, transportation, and land preservation projects to support infill and compact development that reduces greenhouse gas ("GHG") emissions. These projects facilitate the reduction of the emissions of GHG's by improving mobility options and increasing infill development, which decrease vehicle miles traveled and associated greenhouse ,gas and other emissions, and by reducing land conversion, which would result in emissions of greenhouse gases. B. On November 1, 2018, the Department of Housing and Community Development ("HCD") announced availability of approximately $395 million in funding for the AHSC Program, also known as the Cap & Trade Program. C. The State of California, SGC, and HCD issued a Notice of Funding Availability ("NOFA") dated November 1, 2018, under the AHSC Program, established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund, an account established to receive Cap -and -Trade auction proceeds. D. SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, and Standard Agreement. HCD is authorized to administer the approved funding allocations of the AHSC Program. Resolution No. 2019-xxx Page 1 of 4 75A-13 Mcuar0 E. On December 4, 2018, the Housing and Neighborhood Development Division recommended the award of a pre -loan commitment to the Developer of Inclusionary Housing Funds not to exceed $3,170,547 and eight (8) HUD-VASH Project -Based Vouchers (PBVs). Section 2. The City of Santa Ana wishes to support National Community Renaissance of California ("Developer") application to receive an allocation of $20,000,000 in funds through the AHSC Program for the development of a multi -family new construction affordable housing development and transportation related infrastructure. The Application comprises of a request for a loan (the "AHSC Loan") not to exceed $16,465,511 for an Affordable Housing Development (AHD) and a grant (the "AHSC Grant") in an amount not to exceed $3,534,489 for Housing -Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit -Related Amenities (TRA) or Program (PGM) activities as defined the AHSC Program Guidelines adopted by SGC on October 29, 2018. Section 3. If the application for AHSC funding is approved, and the Developers are awarded AHSC funds for Transportation Related Infrastructure, the City of Santa Ana will enter into a contract with the Developer to utilize those funds in an amount up to $3,081,360 to develop specific improvements of the Transportation Related Infrastructure component of the project, which involves Class II buffered bicycle lanes on Civic Center Boulevard between Broadway and Santiago Street, Class IV bicycle lanes on Santiago Street between Civic Center Boulevard and the Santa Ana Regional Transportation Center (SARTC), and pedestrian and mobility improvements as shown in Exhibit 1. Section 4. The City Manager, or his designee, .is authorized and empowered to execute in the name of the City of Santa Ana all necessary applications, contracts, payment requests, agreements, amendments or any other documents related to, and in furtherance of, the Developer's application for the purposes of securing funds and to carry out the purposes specified in the AHSC application and agreement. 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 , 2019. Miguel A. Pulido Mayor Resolution No. 2019-xxx Page 2 of 4 75A-14 EXHIBIT 1 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney _ By: 1' Ryan"odod Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATION OF ATTESTATION AND ORIGINALITY I, :, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on '2019. Date: Clerk of Council City of Santa Ana 75A-15 Resolution No. 2019-xxx Page 3 of 4 EXHIBIT 1 EXHIBIT 1 AHSC Funding Improvements Resolution No. 2019-xxx Page 4 of 4 75A-16 N I1! c 1S IIaPeIIeH 1S O6ellueS N w acO /-�A'N^c7 w. c 04 O lob ( err,'6 �a �o 0 p yL 3S 3 d N « I ?� e!liasulod' w 5 A� ■ v t_._ w .�Nci tP 7S >lap �` ) w ql� <II COC O r m u w ° �� t � w c CO .`mat(11Sf SZ jui 1S aide c .+, Oil O JH pV 3 w 7S 4? _Ji I' nn 1 I any aBuejp 7S uoeBinds N in w y 7S uOG61 r f w w ❑ any ssejd63 m 7S 4sn8 N t� W"L ILIFIFILI,,1S uleW N D -111L. - is uleW S JIFT I, _ 7S aJowe06S N F-1 F -w ri IS aloemCS S N N �t r Rempeo�8 6en�peoi8 S 0 II NN I ; c c C 3S N M LLI 1S luejn0 N m d al O T T >_ c r 3 3 m any v w m d o aw,anla Li c @ c m Y Y m y M - c m IS ue60I \ dN any any Plepue7S S PJepue7S N O w A LL s JLI c m N 7S ialsno y tm C 05 I N (n iS+eP O 3 N I1! c 1S IIaPeIIeH 1S O6ellueS N w acO /-�A'N^c7 w. c 04 O lob ( err,'6 �a �o 0 p yL 3S 3 d N « I ?� e!liasulod' w 5 A� ■ v t_._ w .�Nci tP 7S >lap �` ) w ql� <II COC O r m u w ° �� t � w c CO .`mat(11Sf SZ jui 1S aide c .+, Oil O JH pV 3 w 7S 4? _Ji I' nn 1 I any aBuejp 7S uoeBinds N in w y 7S uOG61 r f w w ❑ any ssejd63 m 7S 4sn8 N t� W"L ILIFIFILI,,1S uleW N D -111L. - is uleW S JIFT I, _ 7S aJowe06S N F-1 F -w ri IS aloemCS S N N �t r Rempeo�8 6en�peoi8 S 0 II NN I ; c c C 3S N M LLI 1S luejn0 N m d al O T T >_ c r 3 3 m any v w m d o aw,anla Li c @ c m Y Y m y M - c m 3 dN w O O w LL O c m N tm C N N (n 3 m - 5 3 d .N tr 'a m U m E c L 3 E„ . any ss c .al o a n v aa) ai al c r r ur J►I Im z 0 to Of Un to v) U In 2 '-1 CO CDd 1S uolied N L C. d , : , ' I I' , IF J IS AOSUJBD N 75A-17 LEGACY SQUARE - CITY OF SANTA ANA AHSC BUDGET Transit Improvements STI #1 -Bike Lanes Civic Center Dr Bike lane Class II between Broadway and Santiago St Bike lanes Class IV on Santiago St between Washington Ave to Trans Ctr. STI #2 Traffic Calming Flashing beacon @ 6th/Mortimer Speed cushion on 5th St. between Mortimer/Minter Speed cushion between Porter St./Lacy St Rapid flashing beacon @ 4th/Garrield Mortimed6th Pocket Park French St. sidewalk widening/road diet STI#3 Improved Walkways and Crossings Repair sidewalk at 6th St. between Minter/Porter Repair sidewalk at Santa Ana Blvd. between Lacy/alley Repair sidewalk between 5th/alley Construct sidewalk on the SE comer at 6th/Garfield Repair sidewalk NW corner @ 4th/Garfield EXHIBIT 1 STI TRA $ 200,000 $ 160,000 57,600 4,800 4,800 57,600 200,000 146,560 115,200 115,200 115,200 115,200 115,200 Four (4) high visibility continental crosswalks @ 6th/Mortimer $ 9,600 Four (4) high visibility continental crosswalks @ Garfield/Brown $ 9,600 Two (2) high -visibility continental crosswalks at 6th /Brown/Lacy $ 4,800 One (1) high -visibility continental crosswalk @ 6th/Garfield $ 2,400 Four (4) high visibility continental crosswalks @ 4th/Lacy St. $ 9,600 One (1) high -visibility continental crosswalk @ 4th/Garfield $ 2,400 Two (2) red curb near crosswalk on NW comer at 6th/Brown $ 19,200 Two (2) curb ramps at east end @ 6th/Garfleld $ 19,200 Four (4) curb extensions @ 4th/Lacy St. $ 256,000 One (1) curb extension NW and SW @ 4th/Garfleld $ 64,000 Four (4) curb extensions @ 3rd/Lacy St $ 256,000 Four (4) curb extensions @ 3rd/Gafeld St $ 256,000 Lighting improvements @ Brown/Lacy/Garfield/4th St. around Garfield Elementary $ 631,200 TRA #1 Six (6) Bus Shelters Subtotal City STUTRA Subtotal 75A-18 $ 134,000 $2,947,360 $134,000 $3,081,360 EXHIBIT 2 AHSC IMPLEMENTATION AGREEMENT THIS AHSC IMPLEMENTATION AND MUTUAL INDEMNITY AGREEMENT (the "Agreemenf') is made and entered into as of February 5, 2019, between City of Santa Ana ("Agency"), and National Community Renaissance of California, a California nonprofit public benefit corporation ("Developer", and collectively with the Agency, the "Parties", or individually, a "Party"), upon the basis of the following facts, understanding and intentions of the parties: A. The State of California, the Strategic Growth Council ("SGC") and the Department of Housing and Community Development ("HCD") issued a Notice of Funding Availability dated November 1, 2018 (the "AHSC NOFA"), under the Affordable Housing and Sustainable Communities ("AHSC") Program established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200. B. Developer is applying for AHSC funds in response to the AHSC NOFA to provide funding for (A) construction of Legacy Square, a 93 -unit affordable housing project located at 609 N. Spurgeon Street in the City of Santa Ana (the "Housing Project"); (B) the construction of certain housing related infrastructure (the "HRI Improvements"); (C) the construction of certain sustainable transportation infrastructure (the "STI Improvements"); (D) the construction of certain transit related amenities (the "TRA Improvements"); and (E) certain costs related to educational programs (the "AHSC Programs"). These improvements are described in more detail in the Final Application to be submitted by February 11, 2019 (collectively, the "AHSC Application"). C. The AHSC Application seeks an award to the Developer in an aggregate amount of $20,000,000 in AHSC funds including a loan (the "AHSC Loan") not to exceed $16,465,511 for an Affordable Housing Development (AHD) and a grant (the "AHSC Grant") in an amount not to exceed $3,534,489 for Housing -Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit -Related Amenities (TRA) or Program (PGM) activities as defined the AHSC Program Guidelines adopted by SGC on October 29, 2018. The AHSC Grant funds will be disbursed to the Developer. If awarded AHSC Grant funds, up to $3,081,360 thereof shall be transferred to the City for the purpose of constructing STI Improvements and TRA Improvements as shown in Exhibit 1. D. The Agency and Developer are required to enter into this Agreement in order to comply with the specific AHSC Program Threshold Requirement stated in Section 106 (a) 12 (A) of the 2018 AHSC Program Guidelines dated October 29, 2018 (the "Transportation Agency Prior Experience Threshold Requirement"). This section of the guidelines dictates that applicants must demonstrate prior experience by providing evidence of at least two prior projects that are similar to the proposed AHSC project in scope and size, which have been completed by the applicant, or joint applicant, during the ten (10) years preceding the application due date. This section of the guidelines also states that the applicants may demonstrate the requisite experience by using the past experience of work completed of a non -applicant so long as the applicants can provide an executed agreement with that specific non -applicant for the completion of the related work in the AHSC Application for which funding is sought. The purpose of this Agreement is to, amongst other things, comply with the Transportation Agency Prior Experience Threshold Requirement. 75A-19 EXHIBIT 2 E. The Agency is a non -applicant, but, as set forth herein, shall implement the specific STI Improvements and TRA Improvements, included in the AHSC Application as set out in Exhibit 1 attached hereto (collectively, the "Transit Obligations"). F. The Developer shall be responsible for constructing and developing the Housing Project, HRI Improvements, Educational Programs and TRAs or STI's not included in Exhibit 1 (together, the "Developer Obligations"), and for all costs and expenses related thereto and the Agency shall be responsible for developing and constructing the Transit Obligations, and for all costs expenses related thereto. In connection with the AHSC Grant and AHSC Loan, Developer is required to enter into standard agreements, disbursement agreements, and regulatory agreements with HCD where Developer will be liable for the full and timely performance by the parties to complete the obligations set forth therein, including completion of the Housing Project, completion of the HRI, STI and TRA Improvements, and funding of the AHSC Programs, as described in the AHSC Application. The AHSC Application and all standard agreements, disbursement agreements, regulatory agreements and any other agreements required by HCD in connection with the AHSC Grant and AHSC Loan shall be collectively referred to herein as the "AHSC Documents". NOW, THEREFORE, in consideration of the recitals, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: AGREEMENT 1. Obligations. The Agency shall complete the Transit Obligations in accordance with the terms of the AHSC Documents and the approved design and construction documents. The Developer shall, in its sole responsibility, complete the Developer Obligations in accordance with the terms of the AHSC Documents and the approved design and construction documents. 2. Indemnification. (a) Agency Indemnity. Agency shall indemnify, defend, protect, and hold harmless the Developer and its affiliates, directors, officers, partners, members, agents and employees (each, a "Developer Indemnified Party") against any and all third -party suits, actions, claims, causes of action, liabilities, costs, and expenses (including attorneys' fees) as incurred (collectively "Damages") arising out of or in connection with Agency's performance of or failure to perform the Transit Obligations and/or obligations hereunder, in the manner and within the time periods, and to otherwise perform any covenants, set forth in the AHSC Documents applicable to the Transit Obligations or its obligations hereunder. However, in no event shall a Developer Indemnified Party be indemnified hereunder for any Damages resulting from such party's sole negligence or willful misconduct. Agency agrees to pay all of the costs and expenses of the Developer Indemnified Parties, including attorneys' fees, which may be incurred in any effort to enforce any term of this Agreement, including, but not limited to, all such costs and expenses which may be incurred by any Developer Indemnified Party in any legal action, reference or arbitration proceeding brought by HCD or other third party. (b) Developer Indemnity. Developer shall indemnify, defend, protect, and hold harmless the Agency and its affiliates, directors, officers, partners, members, agents and 75A-20 EXHIBIT 2 employees (each, an "Agency Indemnified Party") against any and all Damages arising out of or in connection with Developer's performance of or failure to perform its Developer Obligations to complete construction and development of the Housing Development, in the manner and within the time periods, and to otherwise perform any covenants, set forth in the AHSC Documents. However, in no event shall the Agency Indemnified Party be indemnified hereunder for any Claims resulting from such party's sole negligence or willful misconduct. Developer agrees to pay all of the costs and expenses of the Agency Indemnified Party, including attorneys' fees, which may be incurred in any effort to enforce any term of this Agreement, including, but not limited to, all such costs and expenses which may be incurred by any Agency Indemnified Party in any legal action, reference or arbitration proceeding brought by HCD or other third party. (c) Notwithstanding the generality of the foregoing, neither party is liable to the other party (including any person or entity claiming through the other party) for the other party's lost profits or special, incidental, indirect, consequential, or exemplary damages arising out of or in any manner connected with this agreement or its subject matter, regardless of the form of action and whether or not the non -claiming party has been informed of, or otherwise might have anticipated, the possibility of damages. However, the limitations of liability set forth in this section 2(c) or elsewhere in this agreement do not apply to, or take into account, damages: (i) resulting from the gross negligence, bad faith, or the willful or intentional misconduct of a party or its personnel; or (ii) stemming from personal injury, death, or property damage caused by a party or its personnel. 3. Schedule of Performance: Progress Reports. The Agency shall comply with the schedule of performance set forth on Exhibit 2 attached hereto for the completion of the Transit Obligations hereunder (the "Schedule of Performance"). 4. Cost Overruns. Developer shall be responsible for paying all costs required to complete the Housing Project, irrespective of whether such costs exceeds the AHSC Loan and the portion of the AHSC Grant designated for the HRI Improvements. Agency shall be responsible for paying all costs required for the Transit Obligations irrespective of whether such costs exceed the portion of the AHSC Grant designated for the Transit Obligations. 5. Disbursement of AHSC Grant Funds. Developer and Agency agree that the AHSC Grant funds shall be disbursed directly to the Partnership. 6. Notices. Formal notices, demands, and communications between the parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the parties as follows: Agency: City Manager City of Santa Ana 20 Civic Center Plaza, Santa Ana,CA 92701 75A-21 EXHIBIT 2 Developer: Michael Finn Chief Financial Officer National Community Renaissance of California 9421 Haven Avenue Rancho Cucamonga, CA 91730 7. Events of Default. The occurrence of any of the following events shall constitute an "Event of Default' under this Agreement: (a) A Party fails to perform any of its obligations under this Agreement, and does not cure such failure within 30 days after written notice of such failure has been delivered to the defaulting party, or (b) A Party purports to revoke this Agreement or this Agreement becomes ineffective for any reason (other than by virtue of the application of clauses (i) or (ii) of Section 8). 8. Termination. This Agreement shall terminate upon the earlier of. (i) completion of the all obligations under the AHSC Documents; or (ii) mutual agreement of the parties hereto; or (iii) the occurrence of an Event of Default. 9. Third Party Beneficiary. The Partnership shall be a third party beneficiary of this Agreement and shall be entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party to this Agreement. 10. Miscellaneous. (a) Nothing in this Agreement shall be construed to limit any claim or right which any party may otherwise have at any time against an indemnifying Party under Section 2 or any other person arising from any source other than this Agreement, including any claim for fraud, misrepresentation, waste, or breach of contract other than this Agreement, and any rights of contribution or indemnity under any federal or state environmental law or any other applicable law, regulation, or ordinance. (b) If any party delays in exercising or fails to exercise any right or remedy against a Party, that alone shall not be construed as a waiver of such right or remedy. All remedies of any Party against the other Party are cumulative. (c) This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective representatives, heirs, executor, administrators, successors, and assigns. This Agreement may not be amended except by a written instrument executed by the parties hereto. (d) This Agreement shall be deemed to have been delivered and accepted in the State of California and governed exclusively by the internal substantive laws of the State of California as the same may exist at the date hereof. The parties hereto hereby agree that any action hereon between the parties hereto and their successors in interest may be maintained in a 75A-22 EXHIBIT 2 court of competent jurisdiction located in the State of California, and consent to the jurisdiction of any such California court for the purposes connected herewith. (e) Each party hereto intends that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person other than the parties hereto and the Partnership. (f) This Agreement may be executed in multiple counterpart copies, any one of which when duly executed, with all formalities hereof, shall be fully binding and effective as the original of this Agreement. (g) This Agreement shall be effective as of the date first written above, provided however that in the event that the Developer does not receive an award of the AHSC Loan and AHSC Grant, this Agreement shall automatically terminate and be of no further force or effect. (h) The provisions of this Agreement that, by their nature and content, must survive the completion, rescission, termination, or expiration of this Agreement in order to achieve the fundamental purposes of this Agreement will so survive and continue to bind the Parties. Without limiting the generality of the foregoing, the Parties specifically acknowledge that the provisions of Section 2 will survive and continue to bind the Parties. [Signatures on following page) 75A-23 EXHIBIT 2 Each of the undersigned hereby executes this Agreement in the spaces provided below to evidence their respective agreement to the terms of this Agreement. Agency: By: Name: Its: Developer: TO FORM Attorney National Community Renaissance of California By: � F I4 Name: Steve PonTell Its: President and Chief Executive Officer 75A-24 EXHIBIT 2 EXHIBIT 1 Transit Obligations Ex 1 1169A42V16693152 75A-25 IS ue6OJ H a `o t 3S iaisno w IS iuejnd N IS uoeBjndS N in L t c L L w w is 4sng N w Wil �I jI II 3S u!eW N IS ajoweoAS N is A IS Aesweo N any pJepueiS S V � IS yep' p 11 is FepelleH (� Cl) N N L� w w is xeO o IS elde o I. any a6ueio any ssajdA3 uiew 3S uiew S IVI i� - IV[ is ajow"e'o7Cs s1 75A-26 IL-- _J8 6empeoig N -ter- t N''. w ReMPeoig S c c °m o 0 m w m OL �_ U) V a3 m m U LL N C N C a N y N Y w _O LL L O CM C m m c C n y o m C C .y Y O O c D. = n o y C M ~ m m U m y a0i o °� m a)3 'a m o `m a o a m N o m> C H a Z U w aa)i w w w 4 w U w 2 J m 75A-26 EXHIBIT 2 LEGACY SQUARE - CITY OF SANTA ANA AHSC BUDGET Transit Improvements STI STI #1 -Bike Lanes Civic Center Or Bike lane Class II between Broadway and Santiago St $ 200,000 Bike lanes Class IV on Santiago St between Washington Ave to Trans CV. $ 160,000 STI #2 Traffic Calming Flashing beacon @ 6th/Mortimer $ 57,600 Speed cushion on 5th St. between Mortimer/Minter $ 4,800 Speed cushion between Porter St./Lacy St $ 4,800 Rapid flashing beacon @ 4th/Garfield $ 57,600 Mortimed6th Pocket Park $ 200,000 French St. sidewalk widening/road diet $ 146,560 STI#3Improved Walkways and Crossings Repair sidewalk at 6th St. between Minter/Porter $ 115,200 Repair sidewalk at Santa Ana Blvd. between Lacy/alley $ 115,200 Repair sidewalk between 5thlalley $ 115,200 Construct sidewalk on the SE comer at 6th/Garfield $ 115,200 Repair sidewalk NW comer @ 4th/Garfield $ 115,200 Four (4) high visibility continental crosswalks @ 6th/Mortimer $ 9,600 Four (4) high visibility continental crosswalks @ Garfield/Brown $ 9,600 Two (2) high -visibility continental crosswalks at 6th /Brown/Lacy $ 4,800 One (1) high -visibility continental crosswalk @ 6th/Garfield $ 2,400 Four (4) high visibility continental crosswalks @ 4th/Lacy St. $ 9,600 One (1) high -visibility continental crosswalk @ 4th/Garfield $ 2,400 Two (2) red curb near crosswalk on NW comer at 6th/Brown $ 19,200 Two (2) curb ramps at east end @ 6th/Garfield $ 19,200 Four (4) curb extensions @ 4th/Lacy St. $ 256,000 One (1) curb extension NW and SW @ 4th/Garfield $ 64,000 Four (4) curb extensions @ 3rd/Lacy St $ 256,000 Four (4) curb extensions @ 3rd/Garfield St $ 256,000 Lighting improvements @ Brown/Lacy/Garfield/4th St. around Garfield Elementary $ 631,200 TRA #1 Six (6) Bus Shelters Subtotal City STI/TRA Subtotal 75A-27 TRA $ 134,000 $2,947,360 $134,000 $3,081,360 EXHIBIT 2 EXHIBIT 2 Schedule of Performance 75A-28 EXHIBIT 2 Exhibit 2: Schedule of Performance Note: It is acknowledged that some of the following milestones may have already been achieved. For those milestones which have previously been met, the month and year completed has been provided. For those milestones not yet completed, a projected completion date (MMIM for each of the applicable items is provided below. STI MILESTONES STI Capital Project Milestone Schedule Date Executed binding agreement between the Recipient and developer of the proposed development detailing the terms and conditions of the Project development 07119 Site Control of site(s) by proposed developer. 07119 Completion of all necessary environmental clearances, including those required under CEOA and NEPA. 12/19 Obtaining all necessary and discretionary public land use approvals. 12119 Submission of Final Construction Drawings and Specifications to the appropriate local permitting authority. 12120 Commencement of construction. 09121 Construction completion and closeout. 04122 Program funds fully disbursed. 06122 TRA MILESTONES TRA Capital Project Milestone Schedule Date Executed binding agreement between the Recipient and developer of the proposed development detailing the terms and conditions of the Project development 07/19 Site Control of site(s) by proposed developer. 07119 Completion of all necessary environmental clearances, including those required under CEOA and NEPA. 12/19 Obtaining all necessary and discretionary public land use approvals. 12/19 Submission of Final Construction Drawings and Specifications to the appropriate local permitting authority. 12/20 Commencement of construction. 09121 Construction completion and closeout. 04122 Program funds fully disbursed. 06122 75A-29 75A-30 IS ue6o-1 w 9 O w m IS ialsno io IS O6ellueS N Oa elllasulOd N v w Q t c v LU c t 3 LU iS luejna N d Q C r c any piepue1S N is uoa6jndS N iO w L L N t Y w w m is 4sn8 N w w S4 3S uieW N JL IS woweoAS N f IS uolied N any ABMPeOA N c 0 a) 01 3 CL N U) 0 O in :L- (n 'a c C � :g SAV PJepue3S S N N V � lS iep, 6 IS AePelleH N (h w O N � N O UI 3 w is Mao _ O to LO IS alde o w 0 c o In U ui Na) -p m N U ca N al N C l0 C 0I Y Y m "C w o LL OW .0 c 00 m m a � m y a N O` u) C (n F fa .�. v 3 (D a 0 m U m E m N L _ u CD O i 0- U N N 'U C 0 m 7 o m 0 0 ro 0_ a > m o a z U fn x N !n !n U U) m I�I any a6ueip IS uoa6rodS 11 any ss++ajdAO uieW _ lg ^II II ii 'g uieW S I, �I IS aioweO6S S.. IIII W 19. xeMptoig S c o In U ui Na) -p m N U ca N al N C l0 C 0I Y Y m "C w o LL OW .0 c 00 m m a � m y a N O` u) C (n F fa .�. v 3 (D a 0 m U m E m N L _ u CD O i 0- U N N 'U C 0 m 7 o m 0 0 ro 0_ a > m o a z U fn x N !n !n U U) m 75A-32 RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Santa Ana Clerk of the Council 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702 Attention: Clerk of the Council EXHIBIT 4 Free Recording pursuant to Government Code 27383 DENSITY BONUS HOUSING AGREEMENT This DENSITY BONUS HOUSING AGREEMENT ("Agreement"), made and entered into this 5h day of February, 2019 ("Effective Date"), by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"), and National Community Renaissance of California, a California nonprofit public benefit corporation, or its assignee, ("Developer"). City and Developer are sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS A. Santa Ana United Methodist Church is the owner of certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 609 North Spurgeon Street, Santa Ana, California, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full ("Property"). B. Developer has entered into an agreement for a long-term ground lease with property owner. C. Developer is proposing to develop a ninety-three (93) unit affordable apartment complex on the Property as more particularly set forth in Density Bonus Application No. 2018-01 ("Project"). Without the density bonuses, Developer would only be permitted to build fifty-one 51 units on the Property. D. Santa Ana Municipal Code sections 41-1600, et seq. ("City Density Bonus for Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density Bonus Law"), set forth a process to provide increased residential densities to property owners who guarantee that a portion of their residential development will be available to low income, very low- income, or senior (also known as "qualified") households. These regulations are intended to materially assist the housing industry in providing adequate and affordable housing for all economic segments of the community and to provide a balance of housing opportunities for very low-income, low income and senior households throughout the city. E. Additionally, the City's Housing Opportunity Ordinance provides inclusionary 75A-33 EXHIBIT 4 housing development incentives forproduction of affordable units on-site. Specifically, Santa Ana Municipal Code section 41-1904.1 includes a density bonus concession up to a maximum of thirty- five percent (35%) to provide affordable housing options for residents of the City of Santa Ana. F. For the purpose of implementing State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance concessions in response to Developer's request for two (2) density bonuses, as well as additional concessions and incentives, Developer has agreed to restrict ninety-two (92) Units in the Project, except for one (1) manager's unit, to Eligible Households, which includes Very Low Income and Low Income Tenants. G. The Project complies with the affordable housing requirements set forth in the State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance. For purposes of this Agreement, the Project shall be the "housing development" as defined in the State Density Bonus Law. H. In light of the purpose of the State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance, and the express provisions of Government Code section 65915(n), as well as Santa Ana Municipal Code section 41-1904.1, the City has determined to grant Developer's application for density bonuses and related concessions and incentives. I. This Agreement, and the exhibits attached hereto and incorporated herein by reference, is intended to set forth the terms and conditions for the implementation of the Project's requirement to provide affordable housing units in exchange for receiving the Density Bonus Units and additional concessions and incentives set forth herein. J. The. Developer has paid the City's Density Bonus Setup fee in the amount of $46,705.86. NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: DEFINITIONS AND EXHIBITS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth in Section 42(g)(2)(C)(i) and (ii) of the Internal Revenue Code of 1986, as amended from time to time, in administering the low income housing tax credit program. 1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement. 75A-34 EXHIBIT 4 1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits) for the required number/percentage of the total number of units in the Project which are to be rented or available for rent to very low or low income tenants. Said Affordable Rent Schedule shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and shall be created in accordance with the Orange County, California Primary Metropolitan Statistical Area ("PMSA") as published by the United States Department of Housing and Urban Development ("HUD"), adjusted for family size appropriate to the unit. 1.1.4 "Affordable Units" means ninety-two (92) units which shall be comprised of thirty 30 one (1) bedroom Units, forty-one 41 two (2) bedroom Units, and twenty-two (22) three (3) bedroom Units of which one (1) will be an Unrestricted Unit (i.e. one (1) manager's unit). 1.1.5 "Agreement" means this Density Bonus Housing Agreement. 1.1.6 "Base Units" means the fifty-one (51) Units that Developer would be authorized to develop on the Property without application of the State Density Bonus Law and City Housing Opportunity Ordinance density bonus. 1.1.7 "City" means the City of Santa Ana, California 1.1.8 "City Council" means the City Council of the City of Santa Ana. 1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana. 1.1.10 "City Manager" means the City Manager for the City of Santa Ana. 1.1.11 "City's Planning Commission" means the Planning Commission for the City of Santa Ana. 1.1.12 "Density Bonus Housing Agreement Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 6.1 below. 1.1.13 "Density Bonus Units" means the forty-two (42) Units in addition to the Base Units that Developer shall develop pursuant to the density allowance in the State Density Bonus Law, the City Housing Opportunity Ordinance density bonus, and the terms and conditions of this Agreement, of which Developer would not be entitled to develop without providing the Affordable Units. 1.1.14 "Developer" means National Community Renaissance of California, and its permitted successors and assigns to all or any part of the Property. 1.1.15 "Effective Date" means the date the City Council of City approves this Agreement and from then on this Agreement shall be in full force and effect. 75A-35 EXHIBIT 4 1.1.16 "Eligible Household" means a Household whose income does not exceed the qualifying limit for a "very low income tenant" or "lower income tenant" as defined herein, which means persons and families whose income does not exceed the qualifying limit for very low income or lower income households. 1.1.17 "Household" means all persons residing in a Unit. 1.1.18 "Low Income Tenant" means persons and families whose income does not exceed eighty percent (80%) area median income for the Orange County, California PMSA, adjusted for household size appropriate to the unit, as published by the California Tax Credit Allocation Committee. 1.1.19 "Median Income" means the Orange County, California area median income, adjusted for family size appropriate to the unit, as periodically published by the California Tax Credit Allocation Committee. 1.1.20 "Monthly Rent" means the total of monthly payments for (a) use and occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, and (d) possessory interest taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public orprivate entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent for that type of utility charge. 1.1.21 "Project" means that certain residential development as more particularly described in Recital C and Section 2 of this Agreement. 1.1.22 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon. 1.1.23 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date. 1.1.24 "Unit" means a residential dwelling unit within the Project to be constructed by Developer pursuant to this Agreement. 1.1.25 "Unrestricted Units" means the Units within the Project to be constructed by Developer to a Household without restriction (i.e. —one (1) manager's unit). 1.1.26 "Very Low Income Tenant" means persons and families whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by the California Tax Credit Allocation Committee. 0 75A-36 EXHIBIT 4 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: 1.2.1 Exhibit A — Legal Description of the Property 1.2.2 Exhibit B — Tenant Verification 1.2.3 Exhibit C — Resolution No. 2019 -XX 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain the Property as a ninety- three 93 Unit affordable residential rental community, with ninety-two (92) Affordable Units and one 1 Unrestricted Unit. 2.2 Density Bonus. The Project shall have ninety-three (93) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is utilizing a thirty-five percent (35%) density bonus increase provided by the State Density Bonus Law (51 Base Units x 35% = 18 State Density Bonus Units) for a total of 69 units, as well as a thirty-five percent (35%) density bonus provided by the City's Housing Opportunity Ordinance 69 Units x 35% = 24 City DensityBonus Units). Developer shall not construct or develop, or otherwise claim a right to construct or develop, more than forty-two (42) State and/or City Density Bonus Units on the Property. 2.3 Development Concessions and Incentives. As set forth in the City entitlements, Developer petitioned for and was granted the following concessions and incentives as part of the _.-. approval of Density Bonus Agreement No. 2019-01 for the Project: 2.3.1The parking requirements for the Project shall be reduced in accordance with Government Code Section 65915(p)(3)(A), such that the total of all parking spaces required for the Project shall not exceed 92 spaces. 2.3.2The development standards for this Project shall be waived in accordance with Government Code Section 65915(e)(1), such that the Hybrid Courtyard Building Type shall be a permitted building type for the project. 2.3.3The building setback requirements for the Project shall be reduced in accordance with Government Code Section 65915 (d)(1), such that the minimum required front yard setback shall be 0'-0" feet. 2.3.4The maximum allowable encroachments into required setbacks for the Project shall be increased in accordance with Government Code Section 65915 (d)(1), such that the maximum allowable encroachment shall not exceed 6'-0" into required setbacks. 2.4 In exercising the rights granted to the developer under AB 744 the Barb requirements for the Project shall be reduced in accordance with Government Code Section 75A-37 EXHIBIT 4 65915(p)(3)(A), such that the total of all parking spaces required for the Project shall not exceed 92 spaces. 2.5 No Further Concessions or Incentives. Developer acknowledges and agrees that the waivers and incentives set forth in section 2.3 above fully satisfy any duty City may have under the Santa Ana Municipal Code, the Density Bonus Law, or any other law or regulation applicable to the Project, to provide any development incentive or to waive any building, zoning, or other requirement. By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City's obligation to waive requirements of or provide development incentives pursuant to any state, federal, or local law, rule, or regulation applicable to the Project. 2.6 Unrestricted Unit. The Project, for purposes of this Agreement, may have no more than one 1 Unrestricted Unit (i.e. —one (1) manager's unit) with unit sizes as may be determined by the Developer. 2.7 Affordable Units. The Project, for purposes of this Agreement, shall have no less than ninety-two (92) Units designated as Affordable Units pursuant to the terms and conditions of this Agreement. The Affordable Units shall be consistent with all City approvals, and shall be located throughout the Project. 2.8 Minimum Development Standards for Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for the Unrestricted Unit. 2.9 Permits and Processing Compliance with Laws. Developer at its sole cost and expense shall secure or cause to be secured any and all permits that may be required by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, Developer shall carry out and perform the development, operation, and maintenance of the Project in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City's sole determination, then City shall have the option to declare this Agreement null and void in its sole discretion. 2.10 Relocation Prior to Development of Project. If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all 75A-38 EXHIBIT 4 alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project. 2.11 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does not delay the overall project development schedule. Prior to issuance of building permit, Developer shall develop and submit to the Community Development Agency (the "CDA") a local sourcing plan for the Project targeting, to the extent feasible, the hiring of qualified workers, construction contractors, or the purchasing of goods locally within the City of Santa Ana. The plan must be reviewed and approved by the CDA which if not granted or denied within five (5) Business Days, shall be deemed approved (with such approval not to be unreasonably withheld) and be implemented for the construction of the project prior to issuance of Building Permit. 2.12 Mechanic's Liens, Indemnification. Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non -responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer. AFFORDABILITY 3.1 Total Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on the date that the Affordable Unit receives all required occupancy permits from the City. By way of explanation of the foregoing two sentences, it is possible that the Total Affordability Period for one Affordable Unit will neither commence on the same date nor terminate on the same date as another Affordable Unit, and it is possible that the Total Affordability Terms for all Affordable Units will commence on different days and terminate on different days. 3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep detailed records of the commencement date of the Total Affordability Term for each Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the initial 75A-39 EXHIBIT 4 Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Total Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control. 3.3 Levels of Affordabilitv. 3.3.1 Very Low Income Tenants. Developer covenants that no less than seventy- five 75 Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or held vacant and available for immediate occupancy by Very Low Income Tenants, at a rent that does not exceed thirty percent (30%) of fifty percent (50%) of the area median income, as adjusted for household size appropriate to the unit, including an allowance for utilities. 3.3.2 Low Income Tenants. Developer covenants that no less than seventeen (17) Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or held vacant and available for immediate occupancy by Lower Income Tenants, at a rent that does not exceed thirty percent (30%) of sixty percent (60%) of the area median income, as adjusted for household size appropriate to the unit, including an allowance for utilities. 3.4 Affordable Rental Schedule. The Affordable Rental Schedule shall be determined by the regulatory agreements entered into between the Developer and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) governing the project. 4. OWNERSHIP AND OPERATION OF THE PROJECT BY OWNER 4.1 Recording of Documents. No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and the Project. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law, City Density Bonus Law, and the City Housing Opportunity Ordinance, and to ensure the continued supply of Affordable Units in the Project. 4.2 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Total Affordability Term. 75A-40 EXHIBIT 4 4.3 Location of Affordable Units. During the Density Bonus Housing Agreement Term, the Affordable Units shall be disbursed throughout the Project in accordance with the terms and conditions set forth in this Agreement. 4.4 Occupancy Levels. The number of persons permitted to occupy each Affordable Unit shall not exceed the occupancy permitted pursuant to the requirements of the United States Department of Housing and Urban Development. In the event that a household residing in an Affordable Unit exceeds the permitted number of persons, then that household shall be placed on the waiting list for the appropriate -sized unit and be eligible for transfer when that unit becomes available. If the household refuses to transfer to the appropriate -sized unit then the Owner will have grounds to terminate that household's lease. 4.5 Use of the Property. All uses conducted on the Property, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the term of this Agreement be used as an apartment complex and none of theAffordable Units in the Project shall at any time be utilized on a transient basis, nor shall the Property or any portion thereof ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project's residents shall be available on an equal, nondiscriminatory basis to residents of all Affordable Units at the Project. 4.6 Maintenance. Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project. If at any time Developer fails to maintain the Project or the Property in accordance with this Agreement and such condition is not corrected within five (5) days after written notice from City with respect to debris and waste material, or thirty (30) days after written notice from City with respect to general maintenance, landscaping and building improvements, then City, in addition to whatever remedy it may have at law or at equity, shall have the right to enter upon the applicable portion of the Project or the Property and perform all acts and work necessary to protect, maintain, and preserve the Project and the Property, and to attach a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by City and/or costs of such cure, including a reasonable administrative charge, which amount shall be promptly paid by Developer to City upon demand. 4.6.1 Property Maintenance Aereement. Subject to review and applicability by the Planning and Building Agency (the "PBA"), the CDA, the Public Works Agency (the "PWA"), and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Developer (and the leasehold interest owner of the property upon which the authorized use and/or authorized improvements are located if different from the applicant) shall execute a maintenance agreement with the City of Santa Ana prior to occupancy which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City 75A-41 EXHIBIT 4 Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (b) Compliance with ongoing operational conditions, requirement and restrictions as applicable, the proper storage and disposal of trash and debris, and/or restrictions on certain uses; (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; (d) Ongoing maintenance, repair and upkeep of the Property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about the Property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Developer and the leasehold interest owner of the property are different (e.g., if the applicant is a tenant or licensee of the property or any portion thereof), both the applicant and the leasehold .interest ownerof the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms; (f) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement; (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City; and, 10 75A-42 EXHIBIT 4 (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of the Certification of Occupancy. 4.7 Marketing Program. Each Affordable Unit shall be leased to Eligible Households selected by Developer who meet all of the requirements provided herein. Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval, which approval shall not be unreasonably withheld, of a marketing program for the leasing of the Affordable Units at the Project ("Marketing Program"). The leasing of the Housing Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with City's prior written approval, which approval shall not unreasonably be withheld. Upon request, Developer shall provide City with periodic reports with respect to the leasing of the Affordable Units. 4.8 Management Plan. Prior to Certificate of Occupancy, Developer shall submit for the reasonable approval of City a "Management Plan" which sets forth in detail Developer's property management duties, a tenant selection process in accordance with this Agreement, a security system and crime prevention program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules and regulations for the Property and manner of enforcement, a standard lease form, an operating budget, the identity and emergency contact information of the professional property management company to be contracted with to provide onsite property management services at the Property ("Property Manager"), and other matters relevant to the management of the Property. The Management Plan shall require Developer to adhere to a fair lease and grievance procedure. The management of the Property shall be in compliance with the Management Plan as approved by City. If City determines that the performance of the Property Manager is deficient based upon the standards set forth in the approved Management Plan and in this Agreement, City shall provide written notice to Developer of such deficiencies and Developer shall use its best efforts to correct such deficiencies. In the event that such deficiencies have not been cured within thirty (30) days, or, if cure is not reasonably possible within 30 days, then unless actions to commence a cure are taken within 30 days and continued thereafter with diligence, City shall have the right to require Developer to immediately remove and replace the Property Manager with another property manager or property management company which is reasonably acceptable to the City Manager, which is not related to or affiliated with Developer, and which has not less than five (5) years experience in property management, including significant experience managing housing facilities of the size, quality and scope of the Project. 4.9 Selection of Tenants. 4.9.1 Developer shall be responsible for the selection of tenants for the Affordable Units in compliance with lawful and reasonable criteria and the requirements of this Agreement. Developer agrees that all of Affordable Units will be available to qualifying residents. 4.9.2 Local preference for Santa Ana residents and workers in tenant selection shall be a requirement of the Project. Subject to applicable laws and regulations governing nondiscrimination and preferences in housing occupancy required by the State of California, the 11 75A-43 EXHIBIT 4 Developer shall give preference in leasing units to households that live and/or work in the City of Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority. 4.9.3 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein. 4.10 Income Verification and Certification. Owner covenants to City that it will at all times abide by all specific compliance standards set forth in the regulatory agreements entered into between the Owner and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC), including but not limited to such standards as relate to the number of very -low and low income affordable units by number of bedrooms, standards for qualifying household incomes and other qualifying criteria. Owner shall provide City with a certified copy of each of the recorded Regulatory Agreements applicable to the Project. The compliance standards set forth in said Regulatory Agreements are hereby incorporated by reference as fully set forth herein. In the event of a conflict between this Agreement and the Regulatory Agreements: (1) the more stringent requirement shall prevail if such interpretation eliminates the relevant conflict; or (2) the Regulatory Agreements, or any of them, shall prevail. Developer agrees to make a good faith effort to verify that the income and asset statement provided by an applicant in an income certification is accurate by taking at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay .period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 4.11 Monitorine and Recordkeepine. Throughout the Term of this Agreement, Developer shall annually complete and submit to City a Certification of Continuing Program Compliance in the form provided by City. Owner agrees to pay a reasonable fee, as set by City resolution, for the purpose of paying the actual costs associated with the City's obligation to monitor Owner's compliance with the affordability restrictions contained in this Agreement related to the Density Bonus units, not to exceed monitoring costs for up to 82 units. The City shall first start with the review of all reports and monitoring prepared by Owner for the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) each year. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation, upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project and to conduct an independent audit or inspection of such records at the Property, or, if unavailable at the Property, at a location within the City that is reasonably acceptable to the City. Developer agrees to 12 75A-44 EXHIBIT 4 cooperate with City in making the Property and the records of the Project available for such inspection or audit. Developer agrees to maintain each record of the Project for no less than five (5) years after creation of each such record. Developer shall allow the City to conduct annual inspections of each of the Affordable Units on the Property after the date of construction completion, with reasonable notice. Developer shall cure any defects or deficiencies found by the City while conducting such inspections within ten (10) Business Days of written notice thereof, or such longer period as is reasonable within the sole discretion of the City. 4.12 Application and Financial Preparedness. Developer shall submit for review and approval by the CDA and the PBA, a booklet completed by the Developer at least 12 months prior to the initial leasing of the units. This booklet can be made available at the Property Manager's office or at another location agreed upon by the Owner, the CDA, and the PBA. The purpose of this booklet is to inform interested persons regarding minimum application and eligibility requirements and to assist interested persons with application and financial preparedness and eligibility for residency at the Project at the initial leasing of the units. Developer shall also work with CDA to hold a minimum of two workshops to be coordinated by the Developer at least 12 months prior to the initial leasing of the units. 4.13 Onsite Supportive Services, Programs and Amenities. Throughout the Term of this Agreement, and to the extent such can be coordinated with and largely supplied by philanthropic and other social welfare providers, Developer shall provide residents of the Project access to discounted or no -cost onsite supportive services, programming, and amenities that promote child development, youth development, senior independent living, and economic mobility and include but are not limited to: health and wellness services, transportation services, social activities, and physical or recreational amenities. 4.14 Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. While not a condition of the project's Density Bonus, in recognition of the City's desire to optimize the energy efficiency of the project, Developer agrees to consult with the project design team, a CABEC certified 2016 Certified Energy Analyst, a LEED AP Homes (low-rise and mid -rise), LEED AP BD+C (high rise), National Green Building Standard (NGBS) Green Verifier, or GreenPoint Rater (one person may meet both of these latter qualifications) early in the project design process to evaluate a building energy model analysis and identify and consider energy efficiency or generation measures beyond those required by the TCAC minimum construction standards. Prior to the meeting, the energy analyst shall complete an initial energy model based on either current T24 standards or, if the project is eligible, the California Utility Allowance Calculator using best available information on the project. To the extent financially feasible for the project, Developer agrees to incorporate and optimize energy efficient building materials, methods, and amenities. 4.15 Reserved. 13 75A-45 EXHIBIT 4 4.16 Onsite Property Manager. The Project shall to have 24-hour on-site Property Management services and personnel. Up-to-date 24-hour contact information for the on-site personnel shall be provided to the following City agencies on an ongoing basis: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.17 Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.18 Crime Free Housing. Developer shall work with City Staff to develop a crime free housing policy, procedure, and design plan (the "CFH Plan"). Developer shall submit and obtain approval from the PBA the CFH Plan meeting the requirements of this Subsection 4.18 prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Property Management. 4.19 Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the "PMP") meeting the requirements of this Subsection 4.21. The approved PMP shall be adhered to and be enforced by the Project at all times. 5. [INTENTIONALLY RESERVED] 6. TERM OF THIS AGREEMENT 6.1 Term. The term of this Agreement ('Density Bonus Housing Agreement Term") shall commence on the Effective Date and shall continue until the date that is fifty-five (55) years after the City issues the last certificate of occupancy for the Project. 7. DEFAULT AND TERMINATION: INDEMNIFICATION 7.1 Default. Subject to the Force Majeure provisions of Section 9.14 of this Agreement, failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of written notice from the other Party 14 75A-46 EXHIBIT 4 specifying the default (or such other period specifically provided herein), constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (3 0) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 7.3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or omission of Developer in connection with its obligations under this Agreement, except to the extent caused by the active negligence or willful misconduct of Indemnitees. ASSIGNMENT; COVENANTS RUN WITH THE LAND 8.1 Assignment by Developer. 8. 1.1 Prohibited Transfers or Assignments. Except as authorized in Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, without City's prior written approval, which shall not be unreasonably withheld. Except for Permitted Transfers set forth in Section 8.1.2 below, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other agreement) in a form approved by City and executed by Developer and its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of Developer's covenants and obligations set forth herein with respect to the Property or the portion thereof so transferred. Any request for transfer or assignment of the Agreement by Developer shall require the payment of fees or a deposit to compensate the City for approximate expenses incurred by Developer to City, as applicable, for the City's review of the request. 8.1.2 Permitted Transfer. Notwithstanding the provisions of Section 8. 1.1 above, the following actions shall constitute permitted transfers of Developer's interest in the Property or Project or Developer's rights and obligations under this Agreement, in whole or in part, without City's prior written approval (each a "Permitted Transfer" and collectively, the "Permitted Transfers"; "Transfer" shall include sale, transfer, 15 75A-47 EXHIBIT 4 assignment or, as indicated, grant of any lesser interest or grant of an encumbrance): (a) transfer of all or any portion of Developer's ground leasehold interest in the Property, or Developer's interest hereunder, to a limited partnership the general partner of which is Developer, a nonprofit entity affiliated with Developer, or a limited liability company of which Developer or a nonprofit entity affiliated with Developer is the manager, and such limited partnership has been formed to be an entity to receive capital contributions resulting from the syndication of federal low-income tax credits which may be awarded to Developer, the Project or to such limited partnership (such limited partnership is referred to herein as a "Tax Credit Limited Partnership"); (b) the granting of any temporary or permanent easements, rights, licenses or rights-of-way which are necessary to facilitate construction of the improvements constituting the Project, providing only that the grant of such easements, rights, licenses or rights-of-way must be in furtherance of the development of the Project; (c) recordation of a memorandum of ground lease, and, as may be applicable, one or more reciprocal easement agreements between Developer and the owner of fee title to the Property relating to common use and maintenance of the Property or other similar matters; (d) the pledge of the ground leasehold interest of Developer or of a successor Tax Credit Limited Partnership as security for financing necessary to acquire and/or construct and/or operate the affordable housing project on the Property including necessary construction and/or permanent loans; (e) a Transfer only to a person or entity that as of the date of Transfer holds an equity interest in the entity whose equity interest is being transferred; (f) a collateral pledge of the equity interest of the Tax Credit Limited Partnership to a lender providing construction and/or permanent loans for the Project; (g) issuance of previously unissued or new equity interests in a Tax Credit Limited Partnership that increase the amount of outstanding equity interests therein by less than 10%; (h) a Transfer by the tax credit investor of its limited partnership interest in a Tax Credit Limited Partnership to a syndicated equity fund for the purposes of syndication. of the tax credit equity; (i) removal of the general partner of the Tax Credit Limited Partnership by the tax credit investor in accordance with the Partnership Agreement of the Tax Credit Limited Partnership and replacement of such general partner with a general partner which is the tax credit investor or an affiliated entity or, if different, with a general partner reasonably approved by the City, approval of which shall not be unreasonably withheld; 0) the grant and exercise of an option and/or right of first refusal from the tax credit investor to the general partner of the Tax Credit Limited Partnership in accordance with the Partnership Agreement upon the anticipated exit of the tax credit investor from the Tax Credit Limited Partnership at or around the expiration of the tax credit compliance period; or (k) a Transfer or sale of the Property and Project at approximately the end of the tax credit compliance period established by virtue of the award of tax credits to the Tax Credit Limited Partnership, the Developer or for the Project, or at the end of a later tax credit compliance period arising from subsequent issuance of tax credits, in which or which is: (i) not a sale to an unrelated or unaffiliated third party, but is a Transfer or sale to a new limited partnership satisfying the requirements of subparagraph (a) above or is Developer or a nonprofit entity affiliated with Developer, (ii) the purchase or Transfer as funded in part by an award of new tax credits or tax exempt bonds or other similar financing source, (iii) the Transfer or purchase occurs in order to buy out the equity interest of the tax credit investor or its successor in interest in the Tax Credit Limited Partnership as well as to generate funding 16 75A-48 EXHIBIT 4 to renovate, repair and/or reposition the Property and the Project, (iv) all affordability restrictions in favor of the City which are contained in this Agreement remain in senior position to such new financing and remain unchanged, (v) such Transfer/sale will reasonably yield to the seller at closing only enough cash proceeds to pay off senior obligations to institutional lenders and to pay the exit cost of the tax credit investor and any additional sale proceeds to the seller thereunder from such Transfer/sale would be evidenced by a residual receipts promissory note in such principle amount, bearing interest at a rate not -to -exceed 3% simple interest per annum, held by the selling entity or general partner of the selling entity which residual receipts promissory note is secured by a deed of trust on the leasehold interest in the Property (which deed of trust will also be treated as a permitted encumbrance under this Agreement) but which would be junior to the deeds of trust securing a new loan from an institutional lender as well as to the deeds of trust securing loan obligations assumed by such new owner. 8.1.3 Sale of Property/Change of Use: Developer agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute covenants which run with the land and shall be binding on Developer and its successors and assigns, and all parties having or acquiring any right, title or interest in, or to any part of the Property or Project. Developer further understands and agrees that the Density Bonus permit approvals received for this Project have been made on the condition that Developer and all subsequent owners, or other successors and assigns of the Property and/or Project lease and rent the Units in accordance with the terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of 55 consecutive years commencing upon the date that the Project is first occupied. 8.1.4 Subsequent Assignment. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement. 8.1.5 Unnermitted Assignments Void. Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments. 8.2 Covenants Run with the Land. The Property shall be held, sold, conveyed, hypothecated, encumbered, used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the 17 75A-49 EXHIBIT 4 parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. However, all such covenants and restrictions shall be deemed to run in favor of all real property owned by City which real property shall be deemed the benefited property of such covenants and this Agreement shall create equitable servitudes and covenants appurtenant to all real property owned by City and running with the Property in accordance with the provisions of Civil Code Section 1468. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 9. MISCELLANEOUS 9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.2 Amendment.. Any.alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance approved by the City Council and signed on behalf of each Party. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City's review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Property in the Official Records of Orange County, California. 9.3 Notices. 9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next -day document delivery service (such as Federal Express), charges 18 75A-50 EXHIBIT 4 prepaid and delivery scheduled next -day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the fust business day following the date of transmittal of any facsimile and/or electronic transmission, provided confirmation of successful facsimile transmittal is retained by the sending Party or the sending Party does not receive notice that an electronic transmission could not be delivered. All notices shall be addressed as follows: If to City: City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) P.O. Box 1988 Santa Ana, California 92702 Attention: Housing Manager With a copy to: Office of the City Attorney City of Santa Ana 20 Civic Center Plaza, 7th Floor (M-29) Santa Ana, California 92702 If to Developer: National Community Renaissance of California 9421 Haven Avenue Rancho Cucamonga, California 91730 Upon request, a Party Will confirm data for facsimile and electronic transmission. Counsel for a Party can give notice with the same effect as if the notice was given by a Party. 9.3.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 9.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 9.5 Interpretation and Governing Law. This Agreement and any dispute hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 9.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 19 75A-51 EXHIBIT 4 9.7 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 9.8 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers. 9.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 9.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week except Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a) or successor statute, and any days in which Santa Ana City Hall is closed for business. 9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 9.12 Non -Discrimination. Except as necessary to comply with the provisions of this Agreement and of recorded regulatory agreements on the Project, in performing its obligations under this Agreement, Developer shall not discriminate because of race, color, creed, religion, 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 related activities. Developer affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement. 9.14 Force Maieure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party's control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City's failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Parry of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 20 75A-52 EXHIBIT 4 9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 9.17 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument. 9.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 9.19 Proiect as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the developer of such property. 9.20 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements as may be necessary or proper to fulfill the City's obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 9.21 Estonnel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement 21 75A-53 EXHIBIT 4 certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification, except as may be represented by the requesting Party, and that there are no uncured defaults in the performance of the requesting Party, except as may be represented by the requesting Party. 9.22 No Subordination. City's approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density Bonus Law, City Housing Opportunity Ordinance, and the terms and conditions of this Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project. 9.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 9.24 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. (Signatures on following page) 22 75A-54 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho City Attorney By: Ia&an 60Hodge Assistant City Attorney RECOMMENDED FOR APPROVAL: Steven A. Mendoza Executive Director Community Development Agency CITY OF SANTA ANA STEVEN A. MENDOZA Acting City Manager NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION � —pidk By: Steve PonTeu, President and Chief Executive Officer (title) 75A-55 EXHIBIT 4 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL A: ALL THOSE PORTIONS OF LOTS 4 AND 5 OF THE THOMAS ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER LINE INTERSECTION OF STAFFORD STREET AND FRENCH STREET AS SHOWN ON A MAP OF THE FRUIT ADDITION TO SANTA ANA EAST, IN THE CITY OF SANTA ANA, RECORDED IN BOOK 5, PAGE 186, MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; THENCE ALONG SAID CENTER LINE OF FRENCH STREET SOUTH 000 15'06" WEST A DISTANCE OF 99.95 FEET; THENCE NORTH 890 44'54" WEST A DISTANCE OF 30.00 FEET TO THE INTERSECTION OF THE WEST LINE OF FRENCH STREET WITH A LINE PARALLEL WITH AND DISTANT 15.00 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM THE NORTH LINE OF SAID LOT 5, BEING THE TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 890 44' 54" WEST A DISTANCE OF 91.29 FEET; THENCE NORTH 630 48'2 1 " EAST A DISTANCE OF 61.60 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE 1160 26' 45" AN ARC DISTANCE OF 50.81 FEET TO A TANGENT LINE, BEING SAID WEST LINE OF FRENCH STREET; THENCE ALONG SAID WEST LINE, SOUTH 00° 15' 06" WEST, A DISTANCE OF 5.05 FEET TO THE TO THETRUE POINT OF BEGINNING. PARCEL B: THE SOUTH 35 FEET OF LOT 5 AND THE NORTH 20 FEET OF LOT 8 OF THE THOMAS ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, 24 75A-56 EXHIBIT 4 STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. EXCEPT THEREFROM THAT PORTION OF SAID LOT 5 DESCRIBED IN THE DEED TO THE CITY OF SANTA ANA, A MUNICIPAL CORPORATION, RECORDED FEBRUARY 25, 1974 IN BOOK 11081, PAGE 466 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL C: THE SOUTH 30 FEET OF LOT 8 AND THE NORTH 20 FEET OF LOT 9 OF THOMAS' ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. PARCEL D: THE NORTH 20 FEET OF LOT TWELVE AND THE SOUTH 30 FEET OF LOT 9 OF THE THOMAS ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. PARCEL E: LOT ELEVEN AND THE SOUTH 14 FEET OF LOT TEN OF THE THOMAS ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. PARCEL F: THOSE PORTIONS OF LOTS 12 AND 13 OF THOMAS' ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, BOUNDED AND DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE EASTERLY LINE OF SAID LOT 13, DISTANT THEREON 15 FEET NORTH OF THE SOUTHEAST CORNER OF SAID LOT 13, AND RUNNING THENCE NORTHERLY ALONG THE EASTERLY LINE OF SAID LOTS 13 AND 12, A DISTANCE OF 65 FEET; THENCE WESTERLY, PARALLEL WITH THE SOUTHERLY LINE OF SAID LOT 12,125 FEET TO THE WESTERLY LINE OF SAID LOT 12; 25 75A-57 EXHIBIT 4 THENCE SOUTHERLY ALONG THE WESTERLY LINE OF SAID LOTS 12 AND 13, 65 FEET; THENCE EASTERLY 125 FEET TO THE POINT OF BEGINNING. PARCEL G: BEGINNING AT A POINT 85 FEET NORTH OF THE SOUTHEAST CORNER OF LOT 19 OF THOMAS' ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; THENCE NORTH 55 FEET; THENCE WEST 125 FEET; THENCE SOUTH 55 FEET; THENCE EAST 125 FEET TO THE POINT OF BEGINNING, BEING THE SOUTH 15 FEET OF LOT 13, THE NORTH 40 FEET OF LOTS 18 AND 19 AND THE NORTH 40 FEET OF THE EAST ONE-HALF OF LOT 17 OF SAID ADDITION. PARCEL H: LOTS 14, 15, 16 AND 17 AND THE SOUTH 85 FEET OF LOTS 18 AND 19 OF THOMAS' ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, . AS PER MAP RECORDED IN BOOK- 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. EXCEPTING THEREFROM THE NORTH 40 FEET OF THE EAST 25 FEET OF SAID LOT 17 APN(s): 398-236-03, 398-236-04 pro 75A-58 EXHIBIT 4 EXHIBIT B TENANT VERIFICATION 27 75A-59 EXHIBIT 4 EXHIBIT B INCOME COMPUTATION AND CERTIFICATION NOTE TO APARTMENT OWNER: This form is designed to assist you in computing Annual Income in accordance with the method set forth in the Department of Housing and Urban Project ("HUD") Regulations (24 CFR 813). You should make certain that this form is ate all times up to date with the HUD Regulations. Re: Santa Ana, California I/ We, the undersigned state that I/we have read and answered fully, frankly and personally each of the following questions for all persons who are to occupy the unit being applied for in the above apartment project. Listed below are the names of all persons who intend to reside in the unit: 1. 2. 3. 4. Name of Members Relationship of the to Head of Social Security Household Household Age Number HEAD SPOUSE Income Computation 5. Place of Employment 6. The total anticipated income, calculated in accordance with the provisions of this Certification, of all persons over the age of 18 years listed above for the 12 -month period beginning the date that I/we plan to move into a unit is $ Included in the total anticipated income listed above are: (a) all wages and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation for personal services, before payroll deductions; (b) the net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization of capital indebtedness or any allowance for depreciation of capital assets), (c) interest and dividends (including income from assets excluded below); (d) the full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including any lump sum payment for the delayed start of a periodic payment; RIM 75A-60 EXHIBIT 4 (e) payments in lieu of earnings, such as unemployment and disability compensation, workmen s compensation and severance pay; (f) the maximum amount of public assistance available to the above persons other than the amount of any assistance specifically designated for shelter and utilities; (g) periodic and determinable allowances, such as alimony and child support payments and regular contributions and gifts received from persons not residing in the dwelling; (h) all regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is the head of the household or spouse; and (i) any earned income tax credit to the extent that it exceeds income tax liability. Excluded from such anticipated income are: (a) casual, sporadic or irregular gifts; (b) amounts which are specifically for or in reimbursement of medical expenses; (c) lump sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and workmen s compensation), capital gains and settlement for personal or property losses; (d) amounts of educational scholarships paid directly to the student or the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships or payments to veterans not used for the above purposes are to be included in income; (e) special pay to a household member who is away from home and exposed to hostile fire; (f) relocation payments under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; (g) foster child care payments; (h) the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1977; (i) payments to volunteers under the Domestic Volunteer Service Act of 1973; 0) payments received under the Alaska Native Claims Settlement Act, (k) income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; (1) payments or allowances made under the Department of Health and Human Services Low - Income Home Energy Assistance Program; B- 2 75A-61 EXHIBIT 4 (m) payments received from the Job Training Partnership Act; (n) income derived from the disposition of funds of the Grand River Band of Ottawa Indians; (o) the first $2,000.00 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the Court of Claims; and (p) at the discretion of Housing Authority of the City of Santa Ana all other income exclusions recognized by the HUD Section 8 Certificate and Voucher Programs. 7. Do the persons whose income or contributions are included in item 6 above: (a) have savings, stocks, bonds, equity in real property or other form of capital investment (excluding the values of necessary items of personal property such as furniture and automobiles and interests in Indian trust land)? No Yes (b) have they disposed of any assets (other than at a foreclosure or Credit Bankruptcy sale) during the last two years at less than fair market value? No Yes (c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets owned or disposed of by all such persons total more than $5,000? No Yes (d) If the answer to (c) above is yes, state: (1) the amount of income expected to be derived from such assets in the 12 -month period beginning on the date of initial occupancy in the unit that you propose to rent (2) the amount of such income, if any, that was included in item 6 above: 8. (a) Are all of the individuals who propose to reside in the unit full-time students*? No _ Yes *A full-time student is an individual enrolled as a full-time student during each of 5 calendar months during the calendar year in which occupancy of the unit begins at an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance and is not an individual pursuing a full-time course of institutional or farm training under the supervision of an accredited agent of such an educational organization or of a state or political subdivision thereof. M 75A-62 EXHIBIT 4 (b) If the answer to 8(a) is yes, is at least 1 of the proposed occupants of the unit a husband and wife entitled to file a joint federal income tax return? No Yes 9. Neither myself nor any other occupant of the unit I/we propose to rent is the owner of the rental housing project in which the unit is located (hereinafter the "Owner'), has any family relationship to the Owner, or owns directly or indirectly any interest in the Owner. For purposes of this paragraph, indirect ownership by an individual shall mean ownership by a family member, ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership, estate or trustee held by the individual or a family member; and ownership, direct or indirect by a partner of the individual. 10. This certificate is made with the knowledge that it will be relied upon by the Borrower to determine maximum income for eligibility to occupy the unit, and I/we declare that all information set forth herein is true, correct and complete and based upon information I/we deem reliable and that the statement of total anticipated income contained in paragraph 6 is reasonable and based upon such investigation as the undersigned deemed necessary. 11. I/we will assist the Owner in obtaining any information or documents required to verify the statements made herein, including either an income verification from my/our present employer(s) or copies of federal tax returns for the immediately preceding calendar year. 12. I/we acknowledge that I/we have been advised that the making of any misrepresentation or misstatement in this declaration will constitute a material breach of my/our agreement with the Owner to lease the unit and will entitle the Owner to prevent or terminate my/ our occupancy of the unit by institution of an action for ejection or other appropriate proceedings. I/ we declare under penalty of perjury that the foregoing is true and correct. Executed this day of in the City of . California. Applicant Applicant [Signature of all persons over the age of 18 years listed in number 2 above required] 75A-63 EXHIBIT 4 FOR COMPLETION BY APARTMENT OWNER ONLY: 1. calculation of eligible income: a. Enter amount entered for entire household in 6 above: $ b. (1) If answer to 7(c) above is yes, enter the total amount entered in 7(d)(1), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance ($ ); (2) Multiply the amount entered in 7(c) times the current passbook savings rate to determine what the total annual earnings on the amount in 7(c) would be if invested in passbook savings ($ ), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance (3) Enter at right the greater of the amount calculated under (1) or (2) above: $ C. TOTAL ELIGIBLE INCOME Line l.a plus line l.b(3)): $ 2. The amount entered in 1.c: Qualifies the applicant(s) as a Low Income Tenant(s). Does not qualify the applicant(s) as a Low Income Tenant(s). 3. Number of apartment unit assigned: Bedroom Size: _ Rent: $ 4. This apartment unit [was/was not] last occupied for a period of 31 consecutive days by persons whose aggregate anticipated annual income as certified in the above manner upon their initial occupancy of the apartment unit qualified them as Low Income Tenants. 5. Method used to verify applicant(s) income: Employer income verification. Copies of tax returns. Other Manager IN 75A-64 EXHIBIT 4 INCOME VERIFICATION (for employed persons) The undersigned employee has applied for a rental unit located in a project financed under the Housing Authority of the City of Santa Ana Multifamily Housing Revenue Bond Program for persons of low income. Every income statement of a prospective tenant must be stringently verified. Please indicate below the employee's current annual income from wages, overtime, bonuses, commissions or any other form of compensation received on a regular basis. Annual wages Commissions Total current income Overtime Bonuses I hereby certify that the statements above are true and complete to the best of my knowledge. Signature Date Title I hereby grant you permission to disclose my income to in order that they may determine my income eligibility for rental of an apartment located in their project which has been financed under the Housing Authority of the City of Santa Ana Multifamily Revenue Bonds. Signature Please sent to: B- 6 75A-65 Date EXHIBIT 4 INCOME VERIFICATION (for self-employed persons) I hereby attach6 copies of my individual federal and state income tax returns for the immediately preceding calendar year and certify that the information shown in such income tax returns is true and complete to the best of my knowledge. Signature 75A-66 Date EXHIBIT 4 EXHIBIT C RESOLUTION NO. 2019-01 fm 75A-67 EXHIBIT 4 RESOLUTION NO. 2019-01 LS 1.14.19 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING DENSITY BONUS AGREEMENT APPLICATION NO. 2018-01 AS CONDITIONED FOR A NEW MIXED-USE FAMILY AFFORABLE RENTAL RESIDENTIAL AND COMMERCIAL DEVELOPMENT FOR THE PROPERTY LOCATED 609 NORTH SPURGEON STREET BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: Alexa Washburn, representing National Community Renaissance of California ("National CORE", hereinafter referred to as "Applicant'), is requesting approval of Density Bonus Agreement Application No. 2018- 01, as conditioned, to allow the construction of a new mixed-use 93 -unit family affordable rental residential and commercial development at 609 North Spurgeon Street. 2. The Transit Zoning Code was adopted in 2010 to provide the zoning necessary to support the long-term development of a successful transit program. The regulating plan, which establishes land uses and development standards, allows a variety of housing and commercial projects, including mixed-use residential communities, live/work units, service and retail, and professional offices. 3. The California Density Bonus law allows developers to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek incentives/concessions or waivers that would help the project be built without significant burden and without detriment to public health. On January 14, 2019, the Planning Commission of the City of Santa Ana held a duly noticed public hearing regarding the density bonus application and at that time considered all testimony, written and oral. 5. Section 41-1607 of the Santa Ana Municipal Code (SAMC) requires an application for a density bonus agreement containing deviations (incentives/concessions and/or waivers) to be approved by the Planning Commission. Resolution No. 2019-01 Page 1 of 9 75A-68 EXHIBIT 4 6. The Planning Commission determines that the following findings, which must be established in order to grant this Density Bonus Agreement application pursuant to SAMC Section 41-1607, have been established for Density Bonus Agreement No. 2018-01 to allow construction of the proposed project: The proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city. The proposed development will provide 92 affordable rental family housing units, contributing toward the City's rental housing stock to serve the needs of diverse and underserved populations. The area in which the project is proposed, the Transit Zoning Code, currently contains an affordable mixed-use community and market -rate multi- family housing. The construction of this project will contribute toward an economically balanced community by providing housing for different demographic and income levels in an area rich with employment opportunities, commercial development, and market -rate housing. 2. The development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element. The project site is in an area already identified in both the City's Zoning Code (the Transit Zoning Code) and General Plan (the Land Use and Housing elements) for new residential communities. Moreover, the City's General Plan land use designation for the project site is Urban Neighborhood which applies to primarily residential areas with pedestrian oriented commercial uses, schools and small parks. This designation allows for a mix of residential uses and housing types, such as mid to low rise multiple family, townhouses and single-family dwellings; with some opportunities for live work, neighborhood serving retail and service, public spaces and use, and other amenities. Lastly, the proposed density of 53.4 units is below the density bonus provisions in the California Density Bonus Law for family-oriented projects (35 -percent density bonus) and in the City's Housing Opportunity Ordinance (35 -percent density bonus). 3. The deviation is necessary to make it economically feasible for the Applicant to utilize a density bonus authorized for the development pursuant to section 41-1603. Resolution No. 2019-01 Page 2 of 9 75A-69 EXHIBIT 4 The proposed project requires two deviations through incentives/concessions: building setbacks (front) and encroachments, as well as one deviation through a waiver in permitted building types and architectural styles. The three deviations are described as follows: First, maintaining the required 10'-0" front yard setback would involve the significant loss of mixed-use space and the loss of six (6) three-bedroom units at approximately 1,185 sq. ft. In addition, implementing the required front yard setback standard would result in the building being set back an additional 6-7 feet from the front property line, resulting in a significant loss of parking area and common open space. In order to maintain the current proposed unit count, the Applicant would be required to construct an additional level, resulting in a different type of construction (steel -frame versus wood), further increasing development costs. In addition, in order to maintain the current parking count the developer would be required to construct additional parking either above- or below -grade, resulting in increased construction costs and/or a loss of additional residential units. Second, maintaining the maximum encroachment of 2'-0" into the required street side setbacks would result in the significant loss of the required private open space balconies. In. addition; implementing the required standard would result in the building being setback an additional 5-6 feet along the eastern and western property lines, resulting in a significant loss of parking area, common open space and residential units. In order to maintain the current parking count and open space, the Applicant would be required to construct additional parking, resulting in increased construction costs and/or a loss of additional residential units. Third, the proposed building is required to be designed as one of the building types and architectural styles permitted by the UN -2 zone. Pursuant to the TZC, the building type and architectural style are considered development standards that are eligible to be waived if they physically preclude the construction of the project. The project proposes a Hybrid Courtyard Building Type and Main Street Commercial architectural style which are only permitted in the UN -2 zone in certain locations of the TZC, but not permitted on the project site. However, if the project were designed as any other permitted building type or architectural style the project would result in a significant Resolution No. 2019-01 Page 3 of 9 75A-70 EXHIBIT 4 loss of residential units and a loss of any retail, service or office use. As a result, a waiver from the allowable building type and architectural style is required so the development standards do not physically preclude the construction of the project. The two requested concessions could be avoided if the project were constructed using a different site plan and building type. If the project were designed with a multi-level parking and/or subterranean parking structure, or if the Applicant used different building materials (non-combustible, Type 1) to construct a taller project, additional area on site would become available to provide parking and to meet the required front yard setback. However, these changes would increase development costs, resulting in the affordable housing project becoming financially infeasible due to the significantly increased financial implications of using Type I construction. 7. 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. Section 2. In accordance "with the California Environmental Quality Act (CEQA), Sections 15070 to 15075 of the CEQA Guidelines, an Initial Study and Mitigated Negative Declaration (IS/MND) has been prepared which discloses the environmental impacts associated with implementing the proposed project and includes mitigation measures that can reduce potential impacts to the extent possible or to below a level of significance. Impacts from components such as agriculture and forestry resources, air quality, geology and soils, greenhouse gas emissions, hydrology and water quality, land use and planning, mineral resources, population and housing, recreation, transportation and traffic, and utilities and service systems were found to have no impacts or impacts considered less than significant. However, the project was found to have a less than significant impact on the following environmental categories when proposed mitigation measures are implemented: aesthetics, biological resources, cultural resources, hazards and hazardous materials, noise, public services, and tribal cultural resources. The IS/MND's analysis determined that the above-mentioned environmental categories would cause no substantial adverse change to the environment with the inclusion of environmental commitments, or other enforceable measures, that would be adopted by the City. All mitigation measures in the original Transit Zoning Code (TZC) EIR and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and are carried over within the IS/MND, with exception of Tribal Cultural Resolution No. 2019-01 Page 4 of 9 75A-71 EXHIBIT 4 Resources and Cultural Resources which required new mitigation measures. A traffic impact analysis was performed to analyze any potential changes in area traffic as a result of the proposed development. The study concluded that no additional significant impacts would trigger the requirement for additional environmental review. Assembly Bill 52 (AB 52) requires meaningful consultation with California Native American Tribes on potential impacts on tribal cultural resources (TCRs), as defined in Public Resources Code Section 21074. TCRs are sites, features, places, cultural landscapes, sacred places, and objects with cultural value to a California Native American tribe that are either eligible or listed in the California Register of Historical Resources or local register of historical resources. In order minimize impacts on potential TCRs, the IS/MND outlined mitigation measure TCR 1 requiring consultation of a qualified archaeologist and the local Native American representative, if unanticipated discoveries are made during construction activities. With implementation of mitigation measure TCR 1, potential project impacts on TCRs would be less than significant. A cultural resources study was also performed to analyze the two existing buildings of the First United Methodist Church of Santa Ana, the Sanctuary and Anderson Court Complex (1964-1966) and the Educational Building (1928-1929) located on the property. The study included systematic field recordation of the existing buildings on the property, historical background research on the buildings, and consultation with local historical organizations. The study determined the Educational Building to be a "historical resource" for CEQA-compliance purposes and determined that it requires proper mitigation of potential impacts from the proposed demolition. In addition, because the Sanctuary and Anderson Court Complex have also reached the commonly recognized 50 -year age threshold for potential "historical resources," and the two buildings are integral parts of the same religious establishment that has occupied this location for more than a century, the Sanctuary and Anderson Complex should also be considered a component of the "historical resource." To reduce potential impacts of the proposed demolition to a less than significant level, the IS/MND outlined mitigation measures consistent with the Transit Zoning Code EIR which required "written and photographic recordation of the resource in accordance with the level of Historic American Building Survey (NABS) documentation that is appropriate to the significance (local, state, national) of the resource." In addition, prior to demolition, the developer will be required to document the buildings to Historic American Building Survey (NABS) -like documentation for the historical resources slated for demolition. The HABS-like package will document in photographs and descriptive and historic narrative the historical resources slated for demolition. Documentation prepared for the package will draw upon primary and secondary source research and available studies previously prepared for the project. Specifically, the specifications for the HABS-like package will include photographs focusing on the historical resources/features slated for demolition, with overview and context photographs for the campus and adjacent setting. In addition, the historian or architectural historian will prepare descriptive and historic narrative of the historical resources/features slated for demolition with physical descriptions detailing each Resolution No. 2019-01 Page 5 of 9 75A-72 EXHIBIT 4 resource, elevation by elevation, with accompanying photographs, and information on how the resource fits within the broader campus during its period of significance. As outlined in the accompanying staff report, the project is consistent with the City's General Plan and the Transit Zoning Code regulating plan. Further, it is consistent with the density bonus provisions outlined in the City's Housing Opportunity Ordinance. The project site is located within city limits and is less than five acres in size. It is already in an urbanized setting surrounded by urban uses, and the project has not been identified as habitat for endangered, rare or threatened species. Section 3. The Planning Commission of the City of Santa Ana, after conducting the public hearing, hereby approves the Density Bonus Agreement Application No. 201 B-01 as conditioned in Exhibit A attached hereto and incorporated as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this 140' day of January, 2019 by the following vote: AYES: Commissioners: ALDERETE, BENAVIDES, CONTRERAS-LEO, MCLOUGHLIN, VERINO (5) NOES: Commissioners: CANO, NGUYEN (2) ABSENT: ABSTENTIONS: Commissioners: Commissioners: APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: 62�LZ Lisa Storck Assistant City Attorney M rk McLoughlin hairperson 75A-73 Resolution No. 2019-01 Page 6 of 9 EXHIBIT 4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, SARAH BERNAL Recording Secretary, do hereby attest to and certify the attached Resolution No. 2019-01 to be the original resolution adopted by the Planning Commission of the City of Santa Ana on January 14, 2019. Date: 0 / Cpwwo� 45V Yid Recording Secretary City of Santa Ana Resolution No. 2019-01 Page 7 of 9 75A-74 EXHIBIT 4 EXHIBIT A Conditions for Approval for Density Bonus Agreement Application No. 2018-01 Density Bonus Agreement Application No. 2018-01 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval: The Applicant must comply with each and every condition listed belownp for to exercising the rights conferred by the Density Bonus Agreement. The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may result in the revocationttermination of the Density Bonus Agreement. A. Planning Division All proposed site improvements must conform to the Development Project Review approval of DP No. 2018-44. 2. Any amendment to the DP No. 2018-44, including modifications to approved materials, finishes, architecture, site plan, landscaping, unit count, mix, and square footages must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the Development Project Review must be amended. 3. A residential property manager shall live on site, and the Applicant and onsite management shall at all times maintain a 24-hour emergency contact and contact information on file with the City. 4. All mechanical equipment shall be screened from view from public and courtyard areas. 5. A final detailed amenity plan must be reviewed and approved prior to issuance of any building permits. The plan shall include details on the hardscape design, lighting concepts and outdoor furniture for amenity, plaza, or courtyard areas as well as an installation plan. The exact specifications for these items are subject to the review and approval by the Planning Division. 6. Prior to installation of landscaping, the Applicant shall submit photos and specifications of all trees to be installed on the project site for review and approval by the Planning Division. Specifications shall include, at a minimum, the species, box size (24 inches minimum), brown trunk height (10 -foot minimum), and name and location of the supplier. b` ,t Resolution No. 2019-01 Page 8 of 9 75A-75 :Elallk�l 7. After project occupancy, landscaping and hardscape materials must be maintained as shown on the approved landscape plans. B. Prior to issuance of building permits, the Applicant shall submit a construction schedule and staging plan to the Planning Division for review and approval. The plan shall include construction hours, staging areas, parking and site security/screening during project construction. Resolution No. 2019-01 Page 9 of 9 75A-76 EXHIBIT 4 75A-77 75A-78 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: JANUARY 14, 2019 TITLE: PUBLIC HEARING — DENSITY BONUS AGREEMENT APPLICATION NO. 2018-01 TO ALLOW CONSTRUCTION OF A 93 -UNIT AFFORDABLE MULTI -FAMILY RESIDENTIAL PROJECT WITHIN THE TRANSIT ZONING CODE AT 609 NORTH SPURGEON STREET — NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA, APPLICANT (STRATEGIC PLAN NOS. 3, 2; 5,3) Prepared by Pedro Gomez Executive Director PLANNING EXHIBIT 5 SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED Zoning Designation ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO Planning Mana er RECOMMENDED ACTION Adopt a resolution approving Density Bonus Agreement Application No. 2018-01 as conditioned. Executive Summary Alexa Washburn, representing National Community Renaissance of California ("National CORE"), is requesting approval of a density bonus agreement (DBA) to allow the construction of an affordable 93 -unit rental family-oriented, mixed-use commercial and residential community known as Legacy Square. As proposed, the project will take advantage of waivers from development standards and/or development concessions through the density bonus agreement pursuant to California Government Code sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Section 41-1600 through 41-1607. The request satisfies the purpose and intent of the Transit Zoning Code (TZC) to promote a pedestrian -oriented environment with a mix of land uses and will provide additional affordable housing stock to an underserved segment of the region's population. As a result, staff recommends approval of the DBA. Table 1 • Proiect and Location Information 75A-79 -Information Pro ect Address 609 North S ur eon Street Nearest Intersection French Street and Santa Ana Boulevard General Plan Designation Urban Neighborhood (UN) Zoning Designation Transit Zoning Code (SD -84) with Urban Neighborhood 2 (UN -2) land use desi nation Surrounding Land Uses Single- and Multi -Family Residential North Commercial and Religious Institution East Multi -Family Residential South Spurgeon Station Post office/Commercial est 75A-79 DBA No. 2018-01 January 14, 2019 Page 2 EXHIBIT 5 Item Information Site Size 1.74 acres combined Existing Site Development The site contains two existing church buildings and a large surface lot parking Use Permissions Mixed-use projects permitted by right by the UN -2 designation; DBA will address concessions and waiver Zoning Code Sections Affected Uses UN -2, Table 2A — Use Standards Development Standards UN -2, Sec. 41-2014; Sec. 41-2020; Sec. 41- 2025 Project Description The project includes demolition of two church structures and construction of an affordable rental mixed-use community, consisting of 93 residential units, 7,267 square feet of flex mixed-use space and a 2,576 -square -foot community center. The project will contain a 4 -story building with two-story townhomes and flats/apartment units over an at -grade parking area with a total of 102 parking stalls to accommodate residents, visitors and staff. The project will include 30 one -bedroom units, 41 two- bedroom units, and 22 three-bedroom units, ranging in size from 612 to 1,742 square feet. Seven of the two-bedroom units and seven of the three-bedroom units will be two-story townhomes accessible__ from the street while the remaining 79 units will be flats/typical apartment units located on the 2nd, 3rd and 4th floors over the ground level parking. All units will contain full kitchens, bedrooms, bathrooms, in -unit storage, and open/common (living) areas. Open space will be provided through a publicly -accessible entry plaza and grand staircase entry along Santa Ana Boulevard leading to an interior courtyard. The design and layout of the proposed building creates several unique outdoor areas within the courtyard including both passive and active spaces and amenities. The project's flex mixed-use space area and leasing office will also front Santa Ana Boulevard, activating the street frontage and interfacing with the proposed Santa Ana Streetcar platform to be located at the comer of Santa Ana Boulevard and French Street. The proposed community center and laundry rooms will provide additional amenities to residents and visitors. The project features a modem Main Street Commercial and Mission Revival architectural style common of many multiple -family or mixed-use residential communities under construction in Santa Ana and the region. The Main Street modem design complements the OC Streetcar and activate the street frontage, while the Mission Revival respects and complements the surrounding neighborhoods. The proposed materials include smooth stucco finishes, brick veneer, metal awnings and railing trim, wood post/railings, Tierra y Fuego Mexican Tile accents, and a clay mission style roof. Additionally, the design incorporates a color palette that would consist of earth -tone colors, contrasted with the accent brick veneer bases and Mexican tile accents. Overall, the project will include solid materials that will ensure that the project ages well for the duration of the building's lifetime. Affordability Mix The project was originally proposed as a mixed -income project with eighty-one (81) units proposed as affordable to households earning less than 60 -percent of the Area Median Income (AMI), integrated with 10 -percent market rate units. However, upon review by the Community 75A-80 EXHIBIT 5 DBA No. 2018-01 January 14, 2019 Page 3 Redevelopment and Housing Commission the unit mix was changed. The project is now proposed to be entirely affordable with ninety-two (92) units available to households earning less than 60 -percent AMI, of which thirty-three (33) units will be set-aside for Permanent Supportive Housing. The last remaining unit will be a dedicated manager unit. Table 2 provides a complete breakdown of the unit affordability mix proposed by the developer for the -project. Table 2: Unit Affordability Mix Income Limit Category 1 -Bedroom 2 -Bedroom 3 -Bedroom Total Permanent Supportive Housing >30% AMI 30 3 33 Extremely Low Income (>30% AMI) 5 5 Very Low Income >40% AMI 60 6 Very Low Income (>50% AMI) 20 11 31 Low Income >60% AMI 12 5 17 Exempt Managers Unit 1 1 Total 30 41 22 93 Density Bonus The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek up to three incentives/concessions and an unlimited number of waivers, which are essentially variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers for 100 -percent affordable developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. Due to the project's 100 -percent affordability rate the developer can seek up to three density bonus concessions and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, the City's Housing Opportunity Ordinance (HOO) allows developers to request up to two concessions to facilitate construction of affordable housing. Pursuant to Sec. 41-1904.1 of the HOO, the developer is requesting a 35 -percent density bonus. As outlined by Table 3 below, the maximum unit yield for the 1.74 -acre site using the TZC standards and both City and State density bonus is 94 units. Table 3: Density Bonus Calculation ,Density or -Bonus Allowed for Project . Provided. Base Density 52 units (1.74 acres x 30 units/acre 52 Units base density based on Courtyard Housing type, which is the most "intense" type allowed in UN -2). 75A-81 EXHIBIT 5 DBA No. 2018-01 January 14, 2019 Page 4 35 -Percent State Density Bonus 1 70 units 52 x 0.35 +18 Units 35 -Percent Bonus Provided by the Housing Opportunity Ordinance 94 units (70 x 0.35) +24 Units Total Units 194 units maximum 93 units Dr000sed The purpose of the HOO and the State Density Bonus Law is to encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within new developments. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested concessions and waivers and is preempted from denying the Density Bonus Agreement application. Although the City has analyzed the project and has identified several areas of concern, the conditions of approval proposed for the project are intended to address any of the project's potential impacts. Table 4 outlines the incentives/concessions and waivers requested by the applicant. Table 4: Requested Incentives/Concessions TZC Standard Requirement Provided. A Hybrid Court Building Type is Sec. 41-2020 & 41-2040 — The UN -2 land use designation only proposed at this location which is not Permitted Building Type and permits the Hybrid Court Building permitted, pursuant to the TZC — Architectural Style Type in certain locations. Requires Waiver, Cal. Gov't Code Sec. 65915 (e)(1 Sec. 41-2014 —Building Setbacks 10 feet (front), 10 feet (street side), 0 feet (front) and 10 feet (side) — Requires Concession (1 of 2), Cal. 15 feet (rear) Gov't Code Sec. 65915 (d)(1) Sec. 41-2014 of the TZC allows a Proposed deck design encroaches maximum encroachment of T -O" into 6'-0" into the required 10'-0" street Sec. 41.2014.— Encroachments the required street side setback, side setback along Spurgeon and subject to a minimum vertical French Street— Requires clearance of 12'-0". Concession (2 of 2), Cal. Gov't Code Sec. 65915 (d)(1) In addition, the site is parked in compliance with California Government Code Section 65915(p)(3)(A) and provides 1.1 spaces per unit, inclusive of handicapped and guest parking. Analysis of the Issues Pursuant to Section 41-1607 of the SAMC, an application for a density bonus agreement is required to be approved by the Planning Commission for any project containing "deviations" (incentives/concessions and/or waivers). The Planning Commission's review of the density bonus agreement is based on the following findings: 1. The proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city. 2. The development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element. 75A-82 EXHIBIT 5 DBA No. 2018-01 January 14, 2019 Page 5 3. The deviation is necessary to make it economically feasible for the applicant to utilize a density bonus authorized for the development pursuant to section 41-1603. Because the project does not require a Site Plan Review Application, review and analyzes of the proposed project's land use, site planning and architectural design is not within the Planning Commission's purview. Therefore, the following subsections analyze the applicant's request for the Density Bonus Agreement application only. Table 5: Analysis of the Requested Incentives/Concessions (2) and Waiver (1) Standard Analysis Building Setbacks Maintaining the required 10'-0° front yard setback would involve the significant loss of (Incentive/Concession) mixed-use space and the loss of six (6) three bedroom units. In addition, implementing the required front yard setback standard would result in the building being set back an additional 6-7 feet from the front property line, resulting in a significant loss of parking area and common open space. In order to maintain the current proposed unit count, the developer would be required to construct an additional level, resulting in a different type of construction (steel -frame versus wood), further increasing development costs. In addition, in order to maintain the current parking count the developer would be required to construct additional parking (above- or below -grade), resulting in increased construction costs and/or a loss of additional residential units. Encroachments Maintaining the maximum encroachment of 2'-0' into the required street side setbacks (Incentive/Concession) would result in the significant loss of the required private open space balconies. Implementing the required standard would result in the building being setback an additional 5-6 feet along the eastern and western property lines, resulting in a significant loss of parking area, common open space and residential units. To maintain the current parking count and open space, the developer would be required to construct additional parking, resulting in increased construction costs and/or a loss of additional units . Permitted Building Type The, proposed building is required to be designed as one of the building -types and and Architectural Style architectural styles permitted by the UN -2 zone. Pursuant to the TZC, the building type (Waiver) and architectural style are considered development standards that are eligible to be waived if they physically preclude the construction of the project. The project proposes a Hybrid Courtyard Building Type and Main Street Commercial architectural style which are only permitted in the UN -2 zone in certain locations of the TZC, but not permitted on the project site. However, if the project were designed as any other permitted building type or architectural style the project would result in a significant loss of residential units and a loss of any retail, service or office use. As a result, a waiver from the allowable building a and architectural style is required. When analyzed cumulatively, the two requested concessions could be avoided if the project were designed using a different site plan or constructed using a different type of construction (steel- framerrype I versus woodrrype III). If the project were designed with a multi-level parking and/or subterranean parking structure, or if the applicant used different building materials to construct a taller project, additional area on site would become available to provide open space and parking, and would allow the project to meet the required front yard setback. However, these changes would increase development costs and result in a project that would exceed the maximum permitted building height, resulting in the affordable housing project becoming financially infeasible due to the significantly - increased financial implications of an alternative construction type. 75A-83 EXHIBIT 5 DBA No. 2018-01 January 14, 2019 Page 6 California Environmental Quality Act (CEQA) Analysis Pursuant to the requirements of the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) was prepared and certified in 2010 in order to address the potential environmental impacts associated with the Transit Zoning Code. However, development of the Legacy Square project would have potential environmental impacts to an eligible but unlisted historical resource (Sanctuary and Anderson Court Complex, 1964-1966, and the Educational Building, 1928-1929) which was not addressed in the 2010 EIR. Therefore, an Initial Study and Mitigated Negative Declaration (IS/MND) has been prepared pursuant to the requirements of CEQA and has been attached to this report as Exhibit 11. The project was found to have a less than significant impact on the following environmental categories when proposed mitigation measures are implemented: • Aesthetics • Noise • Biological Resources • Public Services • Cultural Resources • Tribal Cultural Resources • Hazards and Hazardous Materials The IS/MND's analysis determined that the above-mentioned environmental categories would cause no substantial adverse change to the environment with the inclusion of environmental commitments, or other enforceable measures, that would be adopted by the City. All mitigation measures in the original EIR and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and are carried over within the IS/MND, with exception of Tribal Cultural Resources and Cultural Resources which required new mitigation measures. Tribal Cultural Resources Assembly Bill 52 (AB 52) requires meaningful consultation with California Native American Tribes on potential impacts on tribal cultural resources (TCRs), as defined in Public Resources Code Section 21074. TCRs are sites, features, places, cultural landscapes, sacred places, and objects with cultural value to a California Native American tribe that are either eligible or listed in the California Register of Historical Resources or local register of historical resources. In order minimize impacts on potential TCRs, the IS/MND outlined mitigation measure TCR -1 requiring consultation of a qualified archaeologist and the local Native American representative, if unanticipated discoveries are made during construction activities. With implementation of mitigation measure TCR -1, potential project impacts on TCRs would be less than significant. Guttural Resources The City has determined the Educational Building to be a "historical resource" for CEQA-compliance purposes and determined that it requires proper mitigation of potential impacts from the proposed demolition. In addition, because the Sanctuary and Anderson Court Complex has also reached the commonly recognized 50 -year age threshold for potential "historical resources," and the two buildings are integral parts of the same religious establishment, the IS/MND recommends that the Sanctuary and Anderson Complex should also be considered a component of the "historical resource." 75A-84 EXHIBIT 5 DBA No. 2018-01 January 14, 2019 Page 7 To reduce potential impacts of the proposed demolition to a less than significant level, the IS/MND outlined mitigation measure CUL -1 which is consistent with the TZC EIR which required "written and photographic recordation of the resource in accordance with the level of Historic American Building Survey (NABS) documentation that is appropriate to the significance (local, state, national) of the resource." Prior to demolition, the developer will be required to document the buildings to Historic American Building Survey (HABS) -like documentation for the historical resources slated for demolition. The HABS-like package will document in photographs and descriptive and historic narrative the historical resources slated for demolition. Documentation prepared for the package will draw upon primary and secondary source research and available studies previously prepared for the project. The IS/MND's Notice of Intent (NOI) was published in the Orange County Register and posted to the County Clerk on January 8, 2019, forthe required 20 -day public comment period. The IS/MND is also available for public view at the City Hall Planning counter, Santa Ana Library in the Civic Center and on the City website. The public review period ends on January 29th, which will allow the City to respond to any comments received and incorporate comments and responses into the IS/MND before the City Council public hearing, tentatively scheduled on February 5th. As of this printing, no comments or communications from the public have been received on the IS/MND. Table 5• Strategic Plan Alignment and Public Notification & Community Outreach Strategic Plan Alignment, and Public Notification & Community Outreach Strategic Plan Alignment Goal(s) and Policy(s) Approval of this item supports the City's efforts to meet Goal No. 3 (Economic Development) Objective No. 2 of creating new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies. The item also supports Goal 5 (Community Health, Livability, Engagement & Sustainability) Objective No. 3 to facilitate diverse housing opportunities and support efforts to preserve and im rove the livabilit of Santa Ana neighborhoods. Public Not & Communit Outreach Required Measures P public notice was posted on the project site on January4, 2019. Notification by mail was mailed to all property owners and occupants within 500 feet of the promect site on January 4, 2019. Newspaper posting was published in the Orange County Reporter on January 4, 2019. The applicant held a Sunshine Ordinance community meeting on the evening of November 27, 2018. This meeting was publicly noticed in the OC Register, posted on the City's website, and invitation mailers were sent to all addresses within a 500 -toot radius of the project site, as well as local community organizations. The meeting included a presentation on the project as well as a question and answer period to address concerns and collect feedback. Approximately 50 individuals attended the meeting. Notes from the meeting are attached to this report as Exhibit 9. The project applicant has held monthly meetings with the United Methodist Church congregation and United Methodist Church leadership to provide project updates and Community Outreach collect input on the design and amenities to serve the wider neighborhood. Meetings were &Additional held on July 19th, August 26th, September 23rd, October 28th, and December 2nd. Measures Concurrently, the applicant and the United Methodist Church have worked collaboratively regarding the coordination of relocation assistance and outreach to local nonprofit organizations to better align and leverage resources. In the last six months, the applicant 75A-85 DBA No. 2018-01 January 14, 2019 Page 8 EXHIBIT 5 f has had one-on-one meetings with half a dozen local organizations to discuss the project including, but not limited to: the Ebel] Club, Vecindad Lacy en Accion (VELA), Kennedy Commission, Latino Health Access, Taller San Jose Health Builders, and the Santa Ana Unified School District. Conclusion Based on the analysis provided within this report, the proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in the city and will consistent with the purpose of the underlying zone and applicable designation in the general plan land use element. In addition, the proposed deviations are necessaryto make the project economically feasible for the applicant to utilize a density bonus authorized for the development pursuant to section 41- 1603. Therefore, staff recommends that the Planning Commission adopt a resolution approving Density Bonus Agreement Application No. 2018-01 as conditioned. PG:sb S:Wlanning Commission120191 DBA18-01 Legacy Square 609 N Spurgeon sLpc Exhibits 1. Resolution 2. Vicinity Zoning and Aerial Map 3. Site Photo 4. Site Plan 5. Unit Floor Plans 6. Building Elevations 7. Building Perspectives 8. Landscape Plans 9. Sunshine Ordinance Community Meeting Minutes 10. Draft Density Bonus Agreement 11. IS/MND 75A-86 EXHIBIT 6 LS 2.5.19 RESOLUTION NO.2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING MITIGATED NEGATIVE DECLARATION ENVIRONMENTAL REVIEW NO. 2018-134 AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM RELATIVE TO DENSITY BONUS AGREEMENT 2018-01, FOR THE PROJECT LOCATED AT 609 NORTH SPURGEON STREET 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. Alexa Washburn, representing National Community Renaissance of California ("National CORE", hereinafter referred to as "Applicant"), is requesting approval of Density Bonus Agreement Application No. 2018-01, to allow the construction of a new mixed-use 93 -unit affordable rental residential and commercial development at 609 North Spurgeon Street. B. The provisions of the California Environmental Quality Act of 1970 (CEQA), Public Resources Code Sections 21000 et. seq., as amended, require the evaluation of environmental impacts in connection with proposals for discretionary projects. C. Pursuant to the Guidelines for the Implementation of the California Environmental Quality Act, an Initial Study relative to the proposed project concluded that implementation of the project could result in potentially significant effects on the environment and identified mitigation measures that would reduce the significant effects to a less -than -significant level. D. The City of Santa Ana prepared an Initial Study and Mitigated Negative Declaration (IS/MND), Environmental Review No. 2018-134 for the proposed project which reflects the City's independent judgement and analysis as lead agency for the project. The Initial Study and Mitigated Negative Declaration concluded that the project would have a less than significant environmental impact with implementation of mitigation measures. Mitigation measures are included to address potential impacts on aesthetics, biological, cultural, hazard and hazardous materials, noise, public services, and tribal cultural resources. E. On January 8, 2019, Notice of Intent to adopt the Initial Study and Mitigated Negative Declaration, Environmental Review No. 2018-134 was published in 75A-87 EXHIBIT 6 the OC Register newspaper, circulated to interested agencies, organizations and parties, and the Orange County Clerk Recorder. F. The documents related to the Initial Study and Mitigated Negative Declaration were made available for a 20 -day public review and comment period at the Santa Ana City Hall, the Main Library, and on the project webpage on the City's website. G. Comments received were addressed in a Response to Comments document that provides sufficient information to demonstrate that the environmental conclusions and mitigation measures remain valid as disclosed in the Mitigated Negative Declaration. H. The mitigation measures set forth in Mitigated Negative Declaration are fully enforceable and will be implemented using the Mitigation Monitoring and Reporting Program attached hereto as Exhibit A, and incorporated herein by reference. I. On January 14, 2019, the Planning Commission of the City of Santa Ana held a duly noticed public hearing. During its deliberations, the Planning Commission considered the environmental analysis and mitigation measures described in the draft Mitigated Negative Declaration Environmental Review No. 2018-134 and adopted a resolution approving Density Bonus Agreement Application No. 2018-01 as conditioned. J. On February 5, 2019, the City Council of the City of Santa Ana held a duly noticed public hearing to consider all testimony, written and oral, related to Initial Study and Mitigated Negative Declaration, Environmental Review No. 2018-134, at which time all persons wishing to testify were heard, the project was fully considered, and all other legal prerequisites to the adoption of this Resolution occurred. Section 2. The City Council has independently reviewed and analyzed the information contained in the Initial Study and the Mitigated Negative Declaration, Environmental Review No. 2018-134, prepared with respect to this project. The City Council has, as a result of its consideration 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, the MND adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no substantial evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment and the MND reflects the independent judgment and analysis of the City Council. Section 3. The City Council hereby adopts and approves the Mitigation Monitoring and Reporting Program attached hereto and incorporated herein as Exhibit A, consistent with Public Resources Code section 21081.6; makes implementation of the Mitigation Measures contained in the Mitigation Monitoring and Reporting Program 75A-88 EXHIBIT 6 a condition of approval of the Project. and adopts the Mitigation Monitoring and Reporting Program, and directs that the Notice of Determination be prepared and filed with the County Clerk of the County of Orange in the manner required by law. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated February 5, 2019, and exhibits attached hereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. Pursuant to Title XIV, California Code of Regulations (CCR) § 735.5(c)(1), the City Council has determined that, after considering the record as a whole, there is no evidence that the proposed project will have the potential for any significant adverse effect on wildlife resources or the ecological habitat upon which wildlife resources depend. The proposed project exists in an urban environment characterized by paved concrete, roadways, surrounding buildings and human activity. However, pursuant to Fish and Game Code § 711.2 and Title XIV, CCR § 735.5, the payment of Fish and Game Department filing fees in conjunction with this project is at the discretion of the State of California Department of Fish and Wildlife. Section 5. The Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program, as well as all supporting documents are on file and available for public review at Santa Ana City Hall, 20 Civic Center Plaza, Santa Ana, California 92702. Section 6. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. 75A-89 EXHIBIT 6 Section 7. This decision rendered by the City Council of the City of Santa Ana is final and is subject to judicial review pursuant to California Code of Civil Procedure section 1094.6. The Planning and Building Agency shall give direct notice to the Applicant of the City Council's decisions and these findings. ADOPTED this day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: e -r C -- Lisa Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Acting Clerk of the Council City of Santa Ana 75A-90 EXHIBIT 6 EXHIBIT A Mitigation Monitoring and Reporting Program 75A-91 EXHIBIT 6 •J SECTION 7.0 - MITIGATION MONITORING AND REPORTING PROGRAM 4- 7.0 7.0 MITIGATION MONITORING AND REPORTING PROGRAM The Mitigation Monitoring and Reporting Program (MMRP) has been prepared in conformance with § 21081.6 of the Public Resources Code and § 15097 of the CEQA Guidelines, which requires all state and local agencies to establish monitoring or reporting programs whenever approval of a project relies upon a MND or an EIR. The MMRP ensures implementation of the measures being imposed to mitigate or avoid the significant adverse environmental impacts identified through the use of monitoring and reporting. Monitoring is generally an ongoing or periodic process of project oversight; reporting generally consists of a written compliance review that is presented to the decision-making body or authorized staff person. It is the intent of the MMRP to: (1) provide a framework for document implementation of the required mitigation; (2) identify monitoring/reporting responsibility; (3) provide a record of the monitoring/reporting; and (4) ensure compliance with those MM that are within the responsibility of the City and/or Applicant to implement. The following table lists impacts, mitigation measures adopted by the City of Santa Ana in connection with approval of the proposed project, level of significance after mitigation, responsible and monitoring parties, and the project phase in which the measures are to be implemented. Only those environmental topics for which mitigation is required are listed in this Mitigation Monitoring and Reporting Program. 6095/City of Santa Ana Legacy Square Page 7-1 Initial Study/Mitigated Negative Declaration January 2019 75A-92 I r6 i 75A-93 EXHIBIT 6 F � u Z 4 Q w zz _ z z_ N Cu FV FW yc5� c., ovY OZ zz Ztq oc noc ZCw7 � ttj O y mom a aoud r y 1: uoc�aoa o a a N N M + N M z Z O O O � w J tl N 0 a Q - � �� w N y •i 9 � Uud6 M •� 3 .. s id. u ,•�^ d o y m � c� m c"cF�d a'ic w�< y=>' > O ? C G O q C 9 CZ h CL NR 3 :'1. 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L O a `o L u g o o V F a F u u A `n u c 0 ; 3 u �, 3; 9n. 47 p.d O L Y Q < O Y N ^. u U 1' N O U 9 F U n F W G➢ O 00 a > L c o$ c_=° c 6 a F O y " v� 7 •_ w ° L d U O cEi L i° n C ti �' u° io Z H U 0 O y a L L L> E> Z G L ° a` 3 w.� O G j Op En C R U u 'O G ' Lm a�o a__o°o`. „`o_ odLFYEovE ca"iu Eu=.5u ° yoL _ 3 L �' o C" 1 u0.... 0 a`+ x" NF"u F a G•°E U O y x n.0 SFV' �'oo�3c" ou0� ay�y'L a'i oumo.y .��c°,yo .a`uu o o> i C N G O E u Y 0 U 3 W U O CyJ md d L a aY aL CI m N U o�Ea"i oac3c°i jp' c =ocll':° " OUC y"F�,d EL., mOaU_ o L V L T a u .2=0 v 1 N 3 9 es °= a a F a ti < a c� 'a = O F 75A-96 75A-97 m b d A b d C 0 A dAu � �n .amu `m Eo Z,W„b �H�c A A e 9 o G. `—' C E u o„ o� < c L y F�d •E y� W A O > u N A >' y •L V t L O C u =9_�p O.0 C o, .O. L A 3 CC)¢ .ate a ¢doo v_ min C o A A E x m Od d er E my ?�y+�' A> V b> V O L t A � 3°-❑ z 3� m c EXHIBIT 6 z z O N O ma Ser �a H N t'1 Q z ER o_. FG ZQ 0 75A-97 m b d A b d C 0 A dAu � �n .amu `m Eo Z,W„b �H�c A A e 9 o G. `—' C E u o„ o� < c L y F�d •E y� W A O > u N A >' y •L V t L O C u =9_�p O.0 C o, .O. L A 3 CC)¢ .ate a ¢doo v_ min C o A A E x m Od d er E my ?�y+�' A> V b> V O L t A � 3°-❑ z 3� m c EXHIBIT 6 41 75A-98 EXHIBIT 6 F F m FZ Fy �cEH mca OZ o'y-.a ��=D�o o`»DD 9 [c W C o m n T O u y U 2 i2 O _o F � � OQ �� O ^J W J D7 ` O Q c ly C u o o a n. ¢ 9 U U.. O L�O��mF E DO U O u V` DOC V U L^ t— d .U.7B-Z� 7'O LSFu mmmo� m 0 u S o '; yRu "_ LB a .. m i U" L C O W N O O H O E M V W •a �..ew>o"::o ua'-c o.u.aEa c" 'czc �u'u oLs `a nc�E=.u.s m�du Y. env m oou��=oa°`V"'o'cmOuo¢`s'`ov��3� cy G 0 u 0 '0 ¢ ya P:EoS o'o� H G L R g m H r0 O W C y lVj C U ry N .d 9 C N Z 3 U d V G 0uoL so c. m u Y. u o 9 N u o .7 >� d n L G C E C DND N C i m U tvi 0 0 2 u C E - y d15 p. E .� V Y L UI Q Q 7 h c o E wS ci a o S O F w v � 75A-98 EXHIBIT 6 EXHIBIT 6 75A-99 A Z V V � Z 6 < < <= C < _z C tl G C U O ➢ U C C u O V} O} ON e°j C E N E V C1 O LJ VF) C E N= y F L y 'n d° U y Cp E y CD E O Z. Z Z Z V] O G F 0-2 u DL 2; G C n'� ,C ti u II O C n 0 •E ti zto O u OQ 2 0 a 2 u._ d p �`@ n�` A 4L o'er _� 41Q �Q FG - C)Gp V app u F i.)cp VCpp aG F U6pijap Z C Op O FO ryO LL W ' ..d tl Ncc L Z C O Q d V N V F • d II II CLF d G w y Dj II y d d FII d F r Y O V O G U 'Lomsv::3 Y. L3'oa U O F C i L �' F P my>$..oyaEo�IIUn O G C Z ``G'cII ��F�O •CU4o oen=EmII c=° M F. m�,�°"°. v'23•o va>,n9y m'°-3m6='ed+SE ebicF=� y w �OL' v .. y a .':.o E ai a 9 0 V_ •c on. o o o F d _. VOd `o>>Gi a�u•c •'o Ey.d. dY- FoE oLc—N�° WICu F O F O II �'-• V y VO ,O •` Z> OV C L A L y L L p C F F n u C y C t = •� u A _m V wMM u0.. G F V II F F F• i. F G u" C GO u d' Z r. - F C 9 i `pVp M tTJ d L j Z O• U ' uo°nEc10> ."o�Fuy=m_cs'o odE °• O LII u DDC O "-• c2c-d. =•'a O O d F u E EM= y c a �n O fn u ,- d G u c m° v M co�nw4.us_uo'>D°i D�i2ao_�..�r 0 onnz ads`�a"o<LWy �UFEF o =Woo Dui $uFw� uuL34F nu O O m V II II O tl y F Z F u0. V O Y F y° y � 1` C y U C MHEum '.- CUd U ocDE 'R —V F<:..vdoad�c_IIawo >�;�F DLc s3o..Fw L L Vl U v L'O � G o •ry. N O �. n"� 4.n u C C Y O $•U F G— F F r0 r1 Z V N U G F d V >. U �•o v=u��r,� �vIIcumc•�o'F+s '�•`o �V e>, �o 2un� V w u E c `Lo v `° n. o v> c F •° c..c n •C (" V c my°yms ^�ocomo S=oi3: .0 CF4:.d i-II—cII3-C`w °J�s .d--3 Sv��e>ic G L N � F Q L V L S � V N 15 m OiD� y.CF+ rd•0p is ca y9 pp V G L a F G y O a F d V O L: DL L F - O L F II DO v O Z F II CDL 7 Z Dyi t. U L F V F fn F n F U F N F n F p II n L � 75A-99 A EXHIBIT 6 75A-100 � G r. r. c W z z v c < < v c O u U C Ci V cc .OZ Z Z z4�f CO L 'u G u.. O.L L O C ^•> z 41 O O 47Q f Q �6 m u m V cava Op u Z C O o F m c Z (Y z a a u � � u m b y •• � ^ 4 U U C V C = O m y m — O m o L L^ ac c o m ay c c L. my Y+o 3 .•Or Z a 3 F ccb L voi u« ma b .m. a v L O zoov y 9 9 U N y u o cQv v Lb c a, 0 3 w u r3 'n b" vi m m L y 0 .a E cc x 0 aE °ouo .c um �'. ... E c c�dc«'3� WE C L n L i d L .b, « E y o v �� _ 6'O � O �n ✓ U 9 t N b 9 u N 0� R a i n E pLCj q`? b F b aa. C O O b LE mcoym cdN vE `o cNcc uctO'..�3ac��3v.To E m S m 10 cya°E> ctn=°c F'zc a.o,.. vsy cE<V.a. E=_'L«colo '' EOR • •• •• o �� .�^+ c e a v E o c C Yn � o� o Lam` c c 'z y o3 p;a a -4o a c o c E m i b tQ 9 ii C y^ E c c `u � 'O N 9 O C o .La•� t ? c c ^ t = E o 0 75A-100 � G WA MS I 1 0.11910 75A-101 w z z �_ `z�y �m = = ?aA 52 m^ A eac = =N Cd F_ V _F 4]>c z Z O O Z.T. u^ r. n y 0 E L Z {.i {.i m¢ 8a �a b L' UCOVn.�a°v:3ua i3aC�aGou �� 'T. C 2 O o c y G F � N F O L O L c O O u o a a s 2 u V A u � A y (4111 W r^ O C C O c c 0 b � 6 U V C V t J cw Ot b ^ A r3S Qcn 3w'.b-��`z ie°bV1ry EeNEy M N �aci3E°'u o3sE�a�Aa c a n.y'c nC G y 9 u E A m 47 u n O C C O w A L° a u N j w1 o..°,ec eL E bE.°oEJ—v.o.0 iia—m vu°n z 3Ecn Lo m p,ni £1°E °X'coE min �sS n v 'bJ u ['' v b C Y c E u y F �a P'c A u a ccs 19 E"o£cAz¢�N U u y? O E=== v o O O cunE aO�C��0y9'°02vyi `u ecEb . .��v�o, GE c.>bL. GAuc�cEU`Oc O n b E'cros n L y_ A 'c N C A E L' f` V — o,b.�s.,ccv'O u 00 Lo O M :°a1n 'RC Lb c.23d�A`E ou oL� Nso. q=� N>e Ecv u u 0 E tl O 2—=O-= u u z C 0 O y U y p L O y U y O O y a CJ Rq m Z G b O 1 N m C 6 b O d A CD 6° sp O tie 14; w F 3 o L N u O G G.b+ L y N L G Gu L j V V co 75A-101 EXHIBIT 6 F c c c c ZFFrCG `c.. o `;no •Oc CEn- Ecv m E 0 f o Jti 'DwO y rJ O C Z U U ma SQ is �ani3aCn u uaovano u V ? > O t9 @ p O @ R F. ry p H N U V E N N F SS c E S2 c> •v.> m N y Q 00 O y O. 3 5 G C m O C V V V O y - R � 9 Y V u y V • y� U u `o o ti u v 2 v 0 n {ii O O V V ,^.• O up. O a O p• y 9 00 F $ E0 F Q Cy P6y w �+ y y u u > u O L e - 0 o i4 °1 9 C v C y Y a 3 0 O `v'� O N C G N L L V v E c O p c y R L O O N VI y = G. O VI @ O C L C R A O C L Y@ L rLa oL _ .N -i w o y c E c y Q m o z y > y; o L L o m- a e y u c ice, u n c H WE u d Rpc�Ea �opE Pct d'�-o u w m:o y.�d'�...2 uy�zy^ S i V 00 O d O N 0>>U c y 0.2 O E➢ Y p 0 N u ' f O d L O@ d y@@ v, u C O O W -7R- •+ W@ ._ - .O F L1 Y e t y E O "' d' F L•1 O� 75A-102 @ EXHIBIT 6 75A-103 A G ¢ c Z_ F_u Fm A DD A toE �+ N L E C>>.. U L ^D a W Z m _ v o �¢ O O eni raOc�aoc Y SG Fs N Cl Lel .-I N n) V Z c aZ o i,J 9 m' Z � ' C. c Y = a a C a ¢ z o c oZ` Loo cDD A L O y GJ u A G C y A a A c n C 7 y a E o C u `o u> a y r u c •D12 o C 3 •O. A u a U y Y c L" 6 y C d y U 2 O G A — z 0 U n 0 y y d T L" y A c= a c E a A . L"u ?o E'a-y s.'a^ C y E.0 yR 3 0 °' m a ac y e H ...° >_z ¢ Lno s wvi '�d_.o 0Lo =m �� EE`A'c_a a E a a c C U' O U O y Vy A y _E C A 3 r t^ 9 O v C C O N 6 E O U c O 6 a s ✓� a .O c y Ccl ty0 ad. 6 L U `D .c O u u 9 .vac c O c y cci. A D Y E.Eu 7u vo>E U Z 6 C c ECL a cPi oamv93�`—'ai F r o a La t x m> A y= F u1 O� y C O A O 75A-103 i� C EXHIBIT 6 75A-104 c iz c o 3 u�i C C U O} O A pp Y ;6 pp YY Y N 0 C O E'Z Ff7 W C y _ u CO2 E N 0�y ^Cti OZ ZU Op OQ o°aoc u1 Crt < i °_. V 1 C D O �`.• O p °• F y° a V C. u V c p ij app v v= p :� E p a `c .4 N C -i ^I N M N M ti V G ¢ • ° � u L � t9 L � = C O L• w O Y U L Ez .i ¢7 } m N Z u O Y a a a.< EJap aG > o 0 x°Yau>� E� Moff ym .�. N 2 OD y C 3 y L• O. y� L V = O t7 L — � Or n p y.`: ac y2Lsy aoL `° wm F u ry 0� n y F w y O Y Y Y Y A n ¢ Lao, E3yvm - U O -=.-a= uz p_ ztn- y czz n o a `fL'�y ac Z vl�U6e�m Z jog=g`r`o Z y c�'ocY u �.c°Y. ani v u= f— Y L d F� U o�AA L L� F gov_cun Z 6y g� St -t„'3 E3.o°cSvE Sa`,FL,3cZ.�ti �F�� O y L n t 0 c � Y •� n L O u Y L? t 0 y A _ C A y C y O.Z. Y �= L _ Y' L i u --. O t%�^n Y O 4- X�> .- 6 Lo n o F :c o_ •r.._ o n o t F m o 01 y 75A-104 EXHIBIT 6 � g � c m ar 2 Z c � m c _ mo o❑ m`mE vN `0v CCU Ff i .F m y C` �0 2 wEy onE� u. u.0c6v..O..CvO 'fpr. 421 CiZai CQ OC6�Cocc .v ❑U6.�QS] 75 V>> u Vf 'N N Pf N M r4 N M 2 � 0 O p F r. u Z� a� .wa , -fn} z F Z CL G {Y S C: a¢ m� o — M. y L 3 — „ v �z v0o 0 m � > > 10 a u � T L Z O y 0 0 L u u u f7 0 L W p c c U N U tOi `'cam O o u DD u a ti co N 1 u 2� uC'y F Q ? C c � L o c Q C N p N O u CJ [J 3Lo E Kaci o�aEo� cono F3umenov 75A-105 m � C EXHIBIT 6 75A-106 V Z Z U E - [moi. {Zii z OV OS 'y'R um co _ N CI Pl .i N M V _Z C p o F� Z dc � u u iz > Cl Z C � v�4 4 w c C � a c. G v » c c E R L Z y Y 3 o u e » L » C C y'o Q EAv V y y C » 9 ry U C E R O C R m U O y C R U V Z C � eU. tUJ A L C rl R o !n N o' E�c'o' " O LW 3�W 3mEo2yE.�-.. o 4 7 �'• U C ii E Y N {�• � R= L� y,' 0 O Z u eF3in� am=ao°c�8u=`m00` 75A-106 EXHIBIT 6 75A-107 R n Z z z ? tea• O O CJ: n^oc��coi� "�„cE O 2 F ts1Q Fa EL O�vLOG._ o G o �•i N M .� N m .-i N M V Li. iL r• .m y O N Z O E V v � c w A _ G u oa �• u W C C R u u t p cc i U L L vN� ASO° Z p du� Q � V OU L r� F' yyy`c GiiV E a E oI v C c 6 O O O V _L C N m o F. d A? m O N O d O L OD L' N C 7 L L G E E=•? vv gH m ... a N R u y O y C a O mp n 2 O r U n O u C d O N A> G_i g O S C G R> =� E 9 T E V ISO L V L D �'9o�c°'y n-uomA O C u �, E a C R C L cc wo E.L. .p o F 3 v A C u G CO u G 00 V V u_ n L 0 0 75A-107 O• EXHIBIT 6 75A-108 ° Z Z Z Cti F V Fm °L',i'�.,rs^—, a E wQ SO fa E ¢ OL.Gao a`:_' o a OL'vaoc.'-' o c '1 N M .-i fV M .'i fV til W Z Z = V L ? U CLi 4 � o`900 S' CLa G ¢ w L c y L O iL p L E ^ u "o_ ?. Y U y G y O 0 " C ° " E c � � o Y U C G U y N E E x m yEi 7 tO v a—u o' euo u c W F (u• y L L fJ. 9 M o N e d a = a � W O O U A L L p y U V y •- U w amcv— O c y c �• 3 vU. 'O N L _C � y A '^ ° u :., c .°. iv �In I E� 3 c. 0.2 u V 'm u e v� •° Qd u o o d' c a o c �" c :: 3 0 .m u c ..Lo., yam•, ° '''�' V v m .Lu. V ° y 2 y 2 9 y vOi N .y T 1-° vOi d O U G. O.A. T U' C d �L U U O >' °�E'O y 6y E.=E t°. j=O O ^ y L1 R��E'� F U O U uO L 1212 0 7> 6 a T>= T> 9 O L v 0 u o d m�o'ooLF3.u.��ce°o�au°n°Ou y u u o b o y o�F3�mE�a�s= O a u a=i=m�'o 75A-108 EXHIBIT 6 75A-109 coa, N to T n n C ti w 'Z z W)¢OCALry a._ C¢OC�p oZFZiy Z0 ZQ aS q d G aO E L G Z U m Q 00 EQ'iG Oa V coG._ o a OCL V G� Z c c Z p $ O a > � ul e� c my ❑ L o e d p d n cc 0 w 0 u n v d a o a m Go � C N O L O n - y y n V � V - � an • c ^ � L O m y G y� 9 O y 47 C c .- C �G U �_ •O Q � y ` F L v o• F L d L U L U 9 O C c 3 y d rid � O N 6y C N� 47'u t E_ 3 ,4 e°n--vy£:- L H N O N 6 V 9 a L T y O n C O n C O d O U y' d C 9 d M= y y y >� d'Ei y p {E 0 GLUOr�NtuV N'Ou� iUEdUC�9 OC r"1j•, y' Vyy9�12t F > G 7> O Y 0 U L y > u O O o c .- u n. a L u d= n L o o 0 n E F 3 - 75A-109 coa, N to T n n C 40.110 EXHIBIT 6 75A-110 z z I f 0zFv FG oue,�, v'•ti ec^"o ZV OCm7 OQ o� E ;!1: 3 Z � �:.� EL u O[.UaCOL. � o a z Z Z OQ �c ni C O U2 fia < ccL C n u O n N 0 o`n u v L n u O c cc T N a E Q V {ii N C. Z C C7 R U t _F C O V U .0 S y L 3 'c s v o y E o 0 E F c L u it - c u W `m c � E m � h� W ti p- m o m`.u'9. y v`; � E •��• � " E V 6 o c A +` m a> p •om v n E r E t. v u O U •� O? O u O O t o t `^E3�m��cm=cm�°.�mSn�`o O>> d u T> CLJ T>^>> O y 2 O d p L nmD amuu WwS�t°,00 o` 75A-110 EXHIBIT 6 F- �r! m n Z Z Z CV FV Fm n C° b uy. C �E"C oz ' 2z Z h C¢ O C n L O C O V n O G 7 G y Z O V O= n �` A v C �'- �`'o e0 a 0 -m .QU 0. O v a o¢ n V c. ❑ a O p u N N fel .4 N l+] V Z C C F u u y Z C' � � U F OOy GCL V 4ia G¢ b • u m • Y 6 v n y G y � _ y A L y vi E 4 y n — C `= 3 y C N b C° L C h d y V b Z u w 1O a � � 6 G j Q ° B m O. N c - n � E y E G a0 `h 8� y a a a o c 9 _ v O •- _ y U y O C V 01 '79 N u c V L 3 0 -J `v ° •O r7 ryEm Y u u 3 cQ �i ..�•°.n..�m°.uu.,-U.�v.-c?°'°`"ZwEc- —67;3.!2 y -o°°m M j¢' °— y 0 C b L C U Q U t0 �' U y y 9 —_ y '�S O C U U C i• V G d b O f •> b n d vi y C y b y 9 � Z C. O '" V u — b O U A 6 w b C w U vi � =' L 0 0 c =wu u °-b.- 75A-111 EXHIBIT 6 75A-112 m z Z 4 G v} OY O H mErn enc 60 OZ z 'ZZ `o .E o c L Zy Z O V OS u n v 0 {riQ u`L'' a V COV Eon O N N F .4 N M V Z E2 .00 V OG V to u m N Z � 06 � a � � L Q ti y U ti 0V O 4 � U 9 'c � V m C O -+ t v c E m t0 u y m '-- Q O Z F t N !F G N N G c� L G F c C o 3 � o u � rc G i ~ W U U a U ..� N UU C y 1 c� u U U u `u .. 3 3 _ � c c E u u vm `o E c � uuEo au= ucm�3w�3cEe �'u Eo O U w 6 C Q j w C F vc a OJ T u vi Y O U y' d y G O O 0 O O y>6 y T> y T> C>> D 0^ p `o a `t=3 i u �".. u V C L tp G pp G 00 N U N O O� 75A-112 m EXHIBIT 6 F c c e c u .Z V V < Q < C c ., au Ft FO m v c�cEo�c ncEw_Co'�^c ov OZZZ ZM w O O= N N M N N M ti IV M .0 rc Z F � u < O C S i nd m N za � A y O L b ^ O 'O _ v O u V c b m b C N y E y o u = > o v Fi3 t w T n 9 a - LSH W p (c b y F m E my a a L.5 nt l7 — W.5 o e m y e b b E a 9 'o E G L y d O b L N O L i C L b m nt O 0 p o c d 9 E<c u y b 007 R tr O O b c vbi N VI 9 C y " b dQ' < a L W � y. $ .2 in p L N Vf V u a" Q L t V �t6uOCRG.Q u a aeui ny "U.3 R wy EuC 0 O 77 Zwb tO6 O1i UCOb _ y y O F 9 u (^ Y L b ._ 9 L 9 u0 y p 6 V^> T> C D L G V 6? T> b T> =>> D Y U b y> b u v a ron c o0o u u u S n tf0. o o vOi 75A-113 e. - EXHIBIT 6 75A-114 Z _Z p M G G N O n 1 C u C p N Fy y E �' OZ .F Z o u c°Ev', n F tZit Q f Q L w o u o N d d° V a C U a C O u N M C � t7 . ti N M ' v z_ a0 FF ca o CE i ti> J M Z a c a a zif n a`< nas o j = d = u m u d y o u w Q o d G n m o O V M m'O V y E U L O u C> — O d H C av d ° c fop v m w m u u C •� m G u a G F h U u m � A°= c E A71 - d Q V y O N V rn m 0 T O o N e cJ �a t°.i d -rd Q o `uo' `o n 7 '°- o F.v n'•-' .. y V a in c o a c O A d nMCA nd. m uo �e�y� t09� L 0 `Q Oi' '7 g yny YadL et'O. uv yW .�,❑ ip �.�'• C \ Vi 012 (` L°= udr U y' c, 75A-114 ::/:11-311i/ The Legacy Square Project Initial Study and Mitigated Negative Declaration (IS/MND) and technical appendices may be accessed at: Santa Ana City Hall Planning Counter, First Floor 20 Civic Center Plaza Santa Ana, CA 92701 or Santa Ana Main Library 26 Civic Center Plaza Santa Ana, CA 92701 or https://www.santa-ana.orq/ab/planning-division/maior-plann ing-projects-and-documents/609-n- spurgeon-st-legacy-square 75A-115 75A-116 EXHIBIT 8 Gomez, Pedro From: Paul Berry Sent: Tuesday, January 29, 201910:50 AM To: Gomez, Pedro Subject: Legacy Square Project - Public comment 1. Yes to affordable housing in this location with ground level commercial. 2. Huge problem that exists now and will only get worse is parking and the solution (or mitigating alternative) is to modify the nearby French Park street narking to be less restrictive or simply abolished. Urban infill means that streets become safer with more people walking and this includes walking to parked vehicles. Do a study, you will find that the French Park Permit area is under utilized and all over -the -limit 6 or more unit apartment buildings in the area are suffering from lack of parking. This is wrong and opening French Park to parking will not negatively impact residents. 3. Overall downtown parking must be further addressed, possibly with an additional parking structure for residents and free shuttle service in the downtown area to 4th street and resident parking structure. Apartment and condo dwellers do not need to park on their own properties in the long run. A community parking structure with shuttle service will allow for all electric charging spaces in one aggregated facility. this is the climate action plan in action. 4. We need roof -top access in Santa Ana, we need to have buildings that the public can enter and go up on the roof to view the area as an amenity to the community. Rooftop viewing areas can create business opportunities for concessionaires, crafts and restaurants/cafes. Paul Berry 75A-117 EXHIBIT 8 French Park Association Written Comments about the LEGACY SQUARE 93 -Unit Apartment Project 609 Spurgeon Street January 28, 2019 The French Park Association quickly reviewed the Initial Study and Mitigated Negative Declaration (MND) for the Legacy Square project and offer the following comments: 1. Lack of Proper and Timely Notification to the French Park Association and French Park Residents As was stated at the recent Planning Commission hearing for the Density Bonus Agreement hearing for the project, held January 14, 2019, the single notification the French Park Board received regarding the Legacy Square apartment project relates only to the Planning Commission meeting. It appears no other notices, telephone calls, or other communication was received by our Board until early January 2019, just prior to the public hearing on the density agreement. During the January 14, 2019 Planning Commission meeting the lead Applicant, NationalCORE, said that other notifications were mailed to residents, however in conversation with over a dozen owners and tenants no one remembered receiving notices for any project meetings, workshops or walks. Despite adjoining the project, French Park residents were not invited to participate in the outreach process. If French Park residents had attended project outreach meetings, our involvement may have had a direct result of the project's configuration, density, its impact on the existing antique Methodist building, and impacts to other adjoining neighborhoods. In a subsequent meeting between French Park and NationalCORE, it was unable to produce a record of where outreached attendees live because no record of this was kept according to Alexa Washburn, Vice President of Planning for NationalCORE. Based on the lack of notification and other outreach efforts to the French Park Board, and the French Park community, we conclude the public outreach for the project failed to adequately notify, involve and receive comments from our neighborhood. Similarly co -applicants Mercy House and the Methodist Church, also failed to communicate to French Park about the project. It is disturbing to French Park how the three project proponents, National CORE, Mercy House and the Methodist Church, missed an important opportunity to coordinate its project with the oldest neighborhood in the City, and the first neighborhood to have a representative association, to be designated as historic, and enjoy special district status where a majority of its antique buildings are on city's register of historic properties. Our neighbor and partner, Mercy House, also seems to have forgotten about its host neighborhood, and the several past projects, including its AIDS hospice, French Park worked with Mercy House on to bring to our community. Based on the lack of notification to French Park Association, and our neighborhood's many residents, we again request more time to review the Initial Study, the MMD, and its 1,300 75A-118 EXHIBIT 8 page appendix, to fully understand the project and its impacts and to share such with the community. RECOMMENDTION No. 1 Postpone City Council's hearing on Legacy Square for at least one month to allow French Park time to prepare a more detailed response. 2. Traffic Impacts The MND states the project will increase neighborhood traffic only incrementally, and that no mitigation is required for project's traffic movement through our neighborhood. French Park is indeed concerned about even incremental traffic increases. French Park is located directly between the Santa Ana Downtown and the Santa Ana (Interstate 5) Freeway. Like its neighbor to the north, the French Court Neighborhood, French Park experiences high volumes of traffic in the mornings and afternoons, particularly on Washington, French, and Spurgeon Streets and also on Wellington, 9h, 10th and Lacy Streets. Currently there are no operating traffic mitigation measures implemented for French Park. Nor are any mitigation measures planned. Devices such as exit -only barriers, which limit access into a neighborhood, and signage directing drivers around French Park, or an array of other, and potentially useful traffic calming measures should have been considered by the Project to limit cut -though vehicle traffic through French Park. As with other new development projects which adjoin or are near French Park, Legacy Square offers no traffic mitigation, except to encourage Legacy Square residents to take public transposition or walk. This is unacceptable. French Park is aware that.other residential neighborhoods, very similar to French Park, enjoy robust traffic mitigations. These protected neighborhoods include Floral Park, Wilshire Square and Washington Square, and perhaps others. These several neighborhoods have exit -only egress from their neighborhoods to prevent or reduce cut -through. Given French Parks' location between the Downtown and the Santa Ana Freeway, we question why mitigations are not required for this high-density apartment project. French Park was not contacted prior to the launch of the project, or contacted as part of its outreach. As such the MND, nor its companion documents, identify resident concerns or comments regarding Legacy Square traffic. The MND appears to lack key resident information about safety and other traffic issues. The MND also fails to consider any physical mitigation measures to limit or discourage vehicle traffic from the Project entering French Park. French Park is already heavily disturbed by excessive vehicle traffic on Washington Street with traffic movement failing at several north -south streets which intersect it including Bush, Spurgeon and French. To encourage more traffic from the Legacy Square project into the neighborhood creates an undue burden as drivers struggle to the Freeway. RECOMMENDATION No. 2 Applicant(s) to conduct public meetings with French Park to discuss Legacy Sgaure and collect their concerns and comments. 75A-119 EXHIBIT 8 RECOMMENDATION No. 2a Applicant(s) to work with French Park to identify and implement traffic control measures for the neighborhood which may include egress -only barriers, traffic calming measures and signage. 3. Impacts to City's French Park French Park is concerned about project residents use of City's pocket -sized, French Park. French Park is located a short distance north of the Legacy Square, and is the only existing public park near the project. French Park is a well -used and over -used passive park in need of a redesign and rehabilitation if it must support hundreds of potential new users. RECOMMENDATION No. 3. In coordination with the French Park Association and the City of Santa Ana, Legacy Square Applicants(s) will prepare and construct, at their cost, a new French Park Design Plan to include, and not be limited to, the following: • Drought -tolerant and wear -resistant turf • New graffiti -resistant benches with a 5' perimeter of StaLok (a stabilized decomposed granite) to replace lost turf due to excessive usage • New graffiti -resistant trash receptacles to match existing • New or rehabilitated drinking fountain with a 5' StaLok perimeter • A new tree to replace one which has recently died • New lighting sensors to insure proper illumination for the park • Signage which states park hours of operation • Signage which states the facility as passive use 4. Historic Preservation The project MND is defective in that it fails to discuss alternative adaptive uses for the historic Methodist auxiliary church building. Instead of examining alternative adaptive uses for the structure, the MND merely sets forth the project alternative which requires demolishing the building. It is surprising that the large, several floor building was not considered for emergency or transitional shelter since these reuse approaches are familiar to Mercy House in similar, but smaller, projects in the French Park and French Court neighborhoods. Reusing antique buildings preserves our City's architectural heritage while minimizing loss of these resources. RECOMMENDATION No. 4: French Park requests the Applicant(s) revise the MND to fully consider other uses for the historic Methodist building, including low-income and/or market -rate apartment housing, emergency and transitional housing, businesses, offices and other important purposes including religious activities, learning and community events. French Park supports the incorporation of the antique Methodist building into the proposed project as part of a package of recommendations described in this letter, and as a way to return it to a serviceable condition and integrating it into the project and community. 75A-120 AN 01 W 111 RECOMMENDATION No. 4a French Park Association requests the City adhere to Section 30.7 of its Chapter 30, Places of Historical and Architectural Significance, titled "Demolition of Historic Properties". The pertinent text for this section is copied below: (a) An application of intent to demolish an historic property shall be submitted to the planning and building agency. At a duly noticed public hearing, the historic resources commission must review all applications for demolition permits for historic properties. The commission shall investigate all feasible alternatives to demolition. These alternatives include, but are not limited to: (1) Seeking private citizens, local trusts, and other financial sources who may be willing to purchase the structure for restoration or relocation. (2) Publicizing the availability of the structure for purchase for restoration or relocation purposes. (3) Exploring possible sites for relocation of the historic building if on - site preservation is not possible. Any structure relocated under this section shall not require a residential relocation permit, pursuant to section 41-620 of this Code. (4) Suggesting to the city council that the city purchase the structure when private preservation or relocation is not feasible. (b) All of the above items are to be completed within two hundred and forty (240) days from the date of application submittal. After two hundred and forty (240) days, or at the conclusion of the environmental review period, whichever is longer, a demolition permit must be issued. Prior to the issuance of the demolition permit, the applicant shall provide, to the reasonable satisfaction of the commission, and at the applicant's sole cost, complete photo -documentation of archival quality and historical profile of the structure to be demolished, prior to the scheduling of the demolition. 6 (c) The building official may determine a historic property is a dangerous building. Such determination allows the waiver of historic resources commission review and the required review period for demolition if the historic property is declared a dangerous building. (Ord. No. NS - 2338, § 8, 12 - 1- 97; Ord. No. NS 2 363, § 6, 8 3 - 98; Ord. No. NS - 2405, § 2, 10 - 18 - 99; Ord. No. NS - 2455, § 8, 12 - 4 - 00; Ord. No. NS - 2521, § 12, 1- 21- 03). Editor's note — Ord. No. NS - 2521, § 12, adopted January 21, 2003, changed the title of § 30 - 7 from "demolition of historic structures" to "demolition of historic properties." 75A-121 75A-122 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF CORNERSTONE HOUSING PARTNERS L.P. AND NEW RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATEGIC PLAN NOS. 4, 1; 5,3) -5�a- V�- L" CITY MANAGER APPLICANT REQUESTED 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 Conduct a Tax Equity and Financial Responsibility Act ,(TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of Cornerstone Housing Partners LP (the 'Borrower"), for the benefit of Cornerstone Apartments (the 'Project') for the acquisition, rehabilitation, improvement and equipping of a 126 -unit multifamily rental housing project located at 805-904 S. Minnie Street, Santa Ana, California. 2. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $23,000,000 for the acquisition, rehabilitation, improvement and equipping of a 126 - unit multifamily rental housing project located at 805-904 S. Minnie Street, Santa Ana, California. DISCUSSION On November 20, 2018, City Council authorized the City Manager and Executive Director of the Housing Authority to execute a commitment letter to 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. However, for this rehabilitation to occur a new TEFRA hearing will need to be held for the project because the current TEFRA expired in December 2018. As such, a new TEFRA Hearing is being recommended for this project. Specifically, Cornerstone Housing Partners, a California Limited Partnership; a partnership created by Jamboree Housing Corporation (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 California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $23,000,000 (the 'Bonds") for the acquisition, rehabilitation, improvement and equipping of a 126 -unit multifamily rent -71 � iy project located at 805-904 S. Minnie Street, TEFRA Public Hearing for Cornerstone Apartments February 5, 2019 Page 2 Santa Ana, California, generally known as Cornerstone Apartments (the "Project') and operated by John Stewart Company. 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 refinancing of the Project. A public notice was published for the TEFRA Hearing (Exhibit 1). 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 (Exhibit 2). The bonds to be issued by the CMFA 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. A notice was provided to the borrower informing them of this same information (Exhibit 3). STRATEGIC PLAN ALIGNMENT Approval of these items assists the City in meeting Goal # 4 — City Financial Stability, Objective # 1 (Maintain a stable, efficient and transparent financial environment) and 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 Board of Directors of the California Foundation for Stronger Communities, a California non- profit public benefit corporation (the "Foundation"), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Santa Ana, it is expected that that a portion of the issuance fee will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City. The CMFA does not receive issuance fees until a bond issuance closes. The fees the CMFA receives are based upon the par amount of the bonds issued. The Borrower ultimately decides when and if the bonds are actually issued and the final amount of bonds issued. The amount granted to the City is to be determined but will not exceed $9,948 under the assumption the entire $23,000,000 in bonds are issued. Upon receipt, the funds will be deposited to the Miscellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002-57010). Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Public Notice 2. Resolution 3. Notice to Applicant APPROVED AS TO FJ1NDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director <P(I'N Finance and Management Services Agency 75B-2 ORANGE COUNTY REPORTER — SINCE 1921 — 600 W SANTA ANA BLVD, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841 Lauren Sommerhauser ORRICK, HERRINGTON & SUTCLIFFE LLP 405 HOWARD ST SAN FRANCISCO, CA - 94105 PROOF OF PUBLICATION (2015.5 C.C.P.) State of California ) County of ORANGE ) ss Noace Type: HRG -NOTICE OF HEARING Ad Description: TEFRA NOTICE CORNERSTONE APTS I am a Citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the 'ORANGE COUNTY REPORTER, a newspaper published in the English language in the city of SANTA ANA, county of ORANGE, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of ORANGE, State of California, under date 06/20/1922, Case No. 13421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 01/18/2019 Executed on: 01/18/2019 At Los Angeles, California I certify (or declare) under penalty of perjury that the foregoing is true and Correct. Signature 11111111II II II IIIIIIIIII III X11 111111111 II * A 0 0 0 0 0 4 9 6 4 8 9 6 Email 75B-3 Exh" Lit 1 This space for filing stamp only OR#: 3212221 NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF SANTA ANA, CA. The City of Santa Ana encourages the public to participate In Me decision- making process. The following notice Is being provided so that you can ask questions, make comments and stay Informed about protects that might be Impn"anttayou. eencoumgeyouto contact us prior W Ne Public Hearing If you have any questions. The Bonds and the obligation to pay principal (or redemption price) of and interest hereon will respect (hereto do not constitute indebtedness or an Interested persons wishing to express heir views on the Issuance of he Bonds or on the nature and local of he Project proposed to be financed or refinencm! may attend the public hearing or, prior to the tine of he hearing, submit written comments to the Clerk of he Council at he address indicated below. Meetln TIT, dOate—Thismetterwill e heats of n Tuesday, Febmary 5, 2019 at 5:0.5 p.m.or imnedialely following he 500 p.m. Clasetl Session, In the City Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92701. All persons interested In his matter are notified to appear at this time. How To Make Comments - If you do not Wsh to appear atomic hearing, you may also send your wriften comments to 0�e CIeM of the Coundl, by mail to City of Santa Ana, 20 Civic Center Plan — M30, Santa Ana, CA 92701 or via e-rnail at emmmenis(oZsenta-ene.org (reference 'City Couno meeting') by 3:00 p.m on Ne day of Ne meeting: a -malls received after said time will be an file for public viewing the day after the meeting. Who To Contact For Question. -Should you have any quessons, pause contact Judson Brawn. Housing Division Manager, at (714) 667-2241 or you ran send an ennal to ecomments®sants- ana.org. he. To at More In/ormation - All inam reports regardingg any tem on this agenda am available !or pudic inspection In the Carl, of the Council Office during regular business hours and posted on he City's website he Friday before a Council meeting ab hltpJNww.sante- anaerg/wrlgmnicus.asp SI Ilene presumes an esparli favor de Jamar at (714) 66742267. Ni nII6n lac bins 114n W hAn dl¢n moat cho Tram Is (714 64 .5355. If you challenge the decision on the above matter, you may be limited to raising any Move Issues you or someone else raised at the public hearing described in this notice, or in written conespondence delivered to he City Council of the City of Santa Ana at or prior to, the public hearing. Made Huimr, Cleric of the Council 1118119 OR -32122210 75B-4 EXHIBITL RESOLUTION NO. 2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $23,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF CORNERSTONE APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, Cornerstone Housing Partners LP (the "Borrower") has requested that the California Municipal Finance Authority (the "Authority') adopt a plan of financing providing for the issuance of multifamily housing revenue 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, in an aggregate principal amount at no time to exceed $23,000,000 (the "Bonds") for the acquisition, rehabilitation, improvement and equipping of a 126 -unit multifamily rental housing project located at 805-904 S. Minnie Street, Santa Ana, California, generally known as Cornerstone Apartments (the "Project") and operated by The John Stewart Company; and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by a governmental unit having jurisdiction over the area in which the Project is located; and WHEREAS, the Project is located within the territorial limits of the City of Santa Ana (the "City'); and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; 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 has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; 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 75B-5 WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; and 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 4 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 issuance of the Bonds by the Authority, for the purposes of: (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(0: and, (b) Section 4 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; (ii) 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 _ day of , 2019. Miguel A. Pulido Mayor 75B-6 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: gjAt:::� Ryao. H6dge Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 75B-7 75B-8 MAYOR Miguel A. Pulido MAYOR PRO TEM Juan Villages COUNCILMEMBERS Cecilia Iglesias David Penaloza Roman Reyna Vicente Sarmlento Jose Solodo January 2, 2019 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY 20 Civic Center Plaza . P.O. Box 1988 Santa Ana, California 92702 714-647-5360 wwW.santa-ana.oro Cornerstone Housing Partners LP c/o Jamboree Housing Corporation 17701 Cowan Avenue, Suite 200 Irvine, CA 92614 Attn: Laura Archuleta Subject: Notice to Applicant Regarding Request for TEFRA Hearing Dear Ms. Archuleta, EXHIBITS 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 Municipal Finance Authority (the "Authority') on behalf of Cornerstone Housing Partners LP, for the benefit of Cornerstone Apartments (the "Project") for the acquisition, rehabilitation, improvement and equipping of a 126 -unit multifamily rental housing Project located at 805-904 S. Minnie Street, Santa Ana, California. The TEFRA Hearing has been placed on our City Council agenda for February 5, 2019 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. 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 requestfor 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 ibrown(a)santa-ana.ong. Sincerely, Judson Brown Housing Division Manager SANTA ANA CITY COUNCIL Niguel A Pulido Juan Villages Vicente Samuento David Penalo Jose solaria Roman Rayne Cecilia Iglesias Mayor Mayor Pio Tem, Ward 5 Ward? Ward Wad 3 Ward Ward mourdoRsanta-ana.om Ivillegasissanta-anaora vsaanientofalsanta-ana.ora anal zea a tae a Isolodofalsanta-ana.om rrevne0santa-aneora cidesiasOsanta-ano.om 75B-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: PUBLIC HEARING ON ISSUANCE OF OBLIGATIONS BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY FOR THE BENEFIT OF ORANGEWOOD FOUNDATION {STRATEGIC PLAN NO. 2,4) V`— Tor r CITY MANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: F-IT10-:101wel ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Conduct a Tax Equity and Financial Responsibility Act (TEFRA) hearing in consideration of issuance of tax-exempt obligations by the California Enterprise Development Authority for the purpose of financing and refinancing Foundation facilities located in Santa Ana, California for the benefit of Orangewood Foundation. 2. Adopt a resolution approving the issuance of the tax-exempt obligations by the California Enterprise Development Authority in an aggregate principal amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) for the purpose of financing and refinancing headquarters facilities located in Santa Ana, California for the benefit of Orangewood Foundation. DISCUSSION Orangewood Foundation, a California nonprofit public benefit company (the "Foundation") (together with any affiliate thereof or successor thereto, the "Borrower'), have requested that the California Enterprise Development Authority (the "Authority') issue revenue obligations in the maximum principal amount of $1,500,000 (the "Obligations") for the purpose of making one or more loans to the Borrower, to enable the Borrower to finance and refinance the cost of acquisition, construction, development, renovation, furnishing and equipping of two office buildings containing approximately 22,340 square feet of space and located at 1575 and 1615 E. 17th Street, Santa Ana, California (the "Facilities"). A portion of the proceeds of the Obligations will be used to pay costs of issuance and other related costs in connection with the financing. The Borrower owns and operates the Facilities as its headquarters. The Borrowers mission is to prepare foster and community youth to reach their greatest potential. 75C-1 TEFRA Public Hearing for Orangewood Foundation February 5, 2019 Page 2 The Foundation is one of the leading providers of services to current and former foster youth in Orange County. The Foundation helps almost 2,000 foster and community youth annually prepare for independent adulthood. The "Orangewood Way" recognizes that the Foundation's relationship with the youth it serves is one of collaboration and partnership. The Foundation's staff works one-on-one with the youth to help them identify their own strengths, attributes, and aptitudes to empower them to overcome their challenges and reach their greatest potential. The Foundation's staff works with youth in four critical areas: health & wellness, housing, life skills & employment, and education. The Foundation meets a broad array of needs: from groceries and a hot meal, to transitional housing, to life skills workshops and employment leads, to its innovative Samueli Academy charter high school and scholarships for college and graduate school. The City of Santa Ana is an associate member of the Authority, a joint powers agency established by the California Association for Local Economic Development whose purpose is to issue tax-exempt and taxable conduit revenue bonds to fund commercial and industrial development projects within member jurisdictions. The Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the Government Code of the State of California and Internal Revenue Code Section 145 provide for the issuance of tax-exempt "private activity' obligations by a conduit governmental issuer on behalf of a 501(c)(3) corporation to finance facilities used, owned and/or operated by such entity. For interest on such private activity obligations to be tax- exempt, Section 147(f) of the Internal Revenue Code requires, among other things, the obligations and the facilities financed thereby must be approved by both the governmental unit which will issue the obligations (in this case, the Authority) and the governmental unit in which the obligation -financed facilities are located (City of Santa Ana). Further, a public hearing, for which reasonable notice has been given, must be held. This hearing and process is referred to as TEFRA, after the Tax Equity and Fiscal Responsibility Act of 1982. The assets to be financed and refinanced with the proceeds of the Obligations are located within the jurisdiction of the City. Therefore, the City has been asked to conduct the public hearing, and to approve the Obligations as the host governmental unit. The City has effectuated proper notice of the hearing via publication at least 14 days in advance. The Obligations will be payable solely from amounts received pursuant to the terms and provisions of one or more loan agreements to be executed by the Authority and the Borrower. The City will not be a party to any loan agreement or any other documents in connection with the issuance of the Obligations. The Obligations will not be secured by any form of taxation or by any obligation of either the City or the Authority. Neither will the Obligations represent or constitute a general obligation of either the City or the Authority. 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 75C-2 TEFRA Public Hearing for Orangewood Foundation February 5, 2019 Page 3 any department thereof to undertake any discretionary action related to the development of the project. As announced in the published notice, the TEFRA hearing is an opportunity for all interested persons to speak or to submit written comments concerning the proposal to issue the Obligations to finance and refinance the Facilities. There is no requirement that either the Borrower or the City Council respond to any specific comments made or submitted at the hearing. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #2 — Youth, Education, Recreation, Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT The City will receive a payment in the amount of $644.40 to hold a TEFRA Hearing for this project and it will be deposited into the Miscellaneous Revenue, Miscellaneous Service Charge account (no. 01102002-53902). APP/ROVED AS TO FUNDS AND ACCOUNTS: Steven A. Mendoza Kathryn Downs, CPA Executive Director Executive Director —W Community Development Agency Finance and Management Services Agency Exhibits: 1. Public Notice 2. TEFRA Resolution 75C-3 75C-4 EXHIBIT 1 NOTICE OF PUBLIC HEARING PURSUANT TO SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, FOR THE FINANCING AND REFINANCING OF CERTAIN FACILITIES FROM THE SALE OF TAX-EXEMPT OBLIGATIONS NOTICE IS HEREBY GIVEN that at 5:45 p.m., or as soon thereafter as the matter may be heard, on February 5, 2019, in the City Hall Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92701, the City of Santa Ana City Council (the "City Council") will conduct a public hearing (the "Public Hearing") at which the City Council will hear and consider information concerning the issuance, from time to time, pursuant to a plan of finance, of one or more series of tax-exempt obligations by the California Enterprise Development Authority (the "Issuer") in an aggregate principal amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) (the "Obligations"). Proceeds of the Obligations will be loaned to Orangewood Foundation, a California nonprofit public benefit corporation (the "Borrower"), an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), pursuant to one or more loan agreements (the "Loan Agreement"). The Borrower plans to use the proceeds of the Obligations to finance and refinance the cost of acquiring, developing, constructing, installing, improving, equipping and furnishing two office buildings containing approximately 22,340 square feet of space and located at 1575 and 1615 E. 17th Street, Santa Ana, California (the "Facilities"). The Borrower will also use a portion of the proceeds of the Obligations to pay certain costs of issuance and other related costs in connection with the Obligations. The Borrower owns the Facilities and uses the Facilities as its headquarters. The Obligations will be paid entirely from repayments by the Borrower under the Loan Agreements. Neither the faith and credit nor the taxing power of the City of Santa Ana (the "City"), the Issuer and its members, the State of California (the "State"), or any other political corporation, subdivision or agency of the State is pledged to the payment of the principal of, premium, if any, or interest on, the Obligations, nor shall the City, the Issuer and its members, the State or any other political corporation, subdivision or agency of the State be liable or obligated to pay the principal of, premium, if any, or interest on, the Obligations. The Public Hearing is intended to comply with the public approval requirements of Section 147(f) of the Code. Those wishing to comment on the issuance of the Obligations, proposed nature and location of the Facilities or the plan of finance may either appear in person at the time and place indicated above or submit written comments, which must be received prior to the Public Hearing by the Clerk of the City Council, at City of Santa Ana, 20 Civic Center Plaza, 8th Floor, Santa Ana, California 92701. 4832-3585-0115.2 75C-5 75C-6 EXHIBIT 2 RESOLUTION NO: 2019 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,500,000 TO FINANCE FACILITIES FOR THE BENEFIT OF THE ORANGEWOOD FOUNDATION WHEREAS, the Orangewood Foundation, a California nonprofit public benefit corporation (the 'Borrower"), has requested that the California Enterprise Development Authority, a joint exercise of powers agency established pursuant to the laws of the State of California (the "Authority'), issue its tax-exempt obligations, from time to time pursuant to a plan of finance (the "Obligations"), in an aggregate principal amount not expected to exceed $1,500,000, for the benefit of the Borrower, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the "Act'), for the purpose of making one or more loans to the Borrower to finance the cost of acquiring, constructing, installing, improving, equipping and fumishing the real property and improvements located at 1575 and 1615 E. 17th Street, Santa Ana, California (collectively, the "Facilities"); and WHEREAS, a portion of the proceeds of the Obligations will be used to pay the costs of issuance in connection with such financing and other related costs; and WHEREAS, the Borrower is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code") and will own and operate the Facilities in connection with its mission of preparing foster and community youth to reach their greatest potential; and WHEREAS, the issuance of the Obligations must be approved by the governmental unit on behalf of which the Obligations are issued and a governmental unit having jurisdiction over the territorial limits in which the Facilities are located pursuant to the public approval requirement of Section 147(f) of the Code; and WHEREAS, the Facilities are located within the territorial limits of the City of Santa Ana (the "City"), and the City Council of the City (the "City Council') is the elected legislative body of the City and is the "applicable elected representative" required to approve the issuance of the Obligations under Section 147(f) of the Code; and WHEREAS, the issuance of the Obligations shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party; and WHEREAS, the Authority and the Borrower have requested the City Council to approve the issuance of the Obligations in order to satisfy the public approval requirements of Section 147(f) of the Code; and 75C-7 WHEREAS, the issuance of the Obligations shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party; and WHEREAS, the Authority and the Borrower have requested the City Council to approve the issuance of the Obligations in order to satisfy the public approval requirements of Section 147(f) of the Code; and WHEREAS, a public hearing was held by the City Council on this 5t' day of February, 2019, at the meeting which commenced at the hour of 5:45 p.m., in the City Hall Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92701, following duly published notice thereof in a newspaper of general circulation in the City of Santa Ana, and all persons desiring to be heard have been heard; and WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Section 147(f1 of the Code; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the City Council of the Facilities for any other purpose, including, but not limited to, compliance with the California Environmental Quality Act (California Public Resources Code, Section 21100, et seq.) ("CEQA" ); NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby finds and declares the above recitals are true and correct; and, be it Section 1. The City Council hereby finds and determines that all of the recitals are true and correct. The City Council, as the "applicable elected representative" of the governmental unit on behalf of which the Obligations will be issued and having jurisdiction over the area in which the Facilities are located, hereby approves the issuance of the Obligations by the Authority, which Obligations may be tax-exempt and/or taxable as approved by the Authority in its resolution, in an amount not to exceed $38,000,000 to finance the cost of the Facilities. This Resolution shall constitute "issuer" approval and "host" approval of the issuance of the Obligations within the meaning of Section 147(f) of the Code; provided, however, that this Resolution shall not constitute an approval by the City Council of the Facilities for any other purposes, including compliance thereof with CEQA, nor does it constitute an approval of the underlying credit or financial structure of the Obligations. The City shall not bear any responsibility for the issuance of the Obligations, the tax-exempt status of the Obligations, the repayment of the Obligations or any other matter related to the Obligations. 2 75C-8 EXHIBIT 2 Section 2. All actions heretofore taken by the officers, employees and agents of the City with respect to the approval of the issuance of the Obligations are hereby approved, confirmed and ratified, and the officers and employees of the City and their authorized deputies and agents are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all certificates and documents which they or bond counsel may deem necessary or advisable in order to consummate the issuance of the Obligations and otherwise to effectuate the purposes of this Resolution. Section 3. The adoption of this Resolution shall not obligate the City or any department thereof to (a) provide any financing for the Facilities; (b) 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 or operation of the Facilities; or (c) make any contribution or advance any funds whatsoever to the Authority. Section 4. This Resolution shall take effect from and after its adoption. 75C-9 EXHIBIT 2 ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Ry O. FWdge Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 2019. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 4 75C-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: PUBLIC HEARING ON ISSUANCE OF OBLIGATIONS BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY FOR THE BENEFIT OF ORANGEWOOD REAL PROPERTY, LLC AND SAMUELI ACADEMY (STRATEGIC PLAN NO. 2,4) :z-� /A--�,- CITY MANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: rRIJIJ041wo, ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Conduct a Tax Equity and Financial Responsibility Act (TEFRA) hearing in consideration of issuance of tax-exempt obligations by the California Enterprise Development Authority for the purpose of financing and refinancing educational and related facilities located at 1901 and 1919 North Fairview Street, Santa Ana, California, for the benefit of Orangewood Real Property, LLC and Samueli Academy. 2. Adopt a resolution approving the issuance of the tax-exempt obligations by the California Enterprise Development Authority in an aggregate principal amount not to exceed Thirty Eight Million Dollars ($38,000,000) for the purpose of financing and refinancing educational and related facilities located at 1901 and 1919 North Fairview Street, Santa Ana, California, for the benefit of Orangewood Real Property, LLC and Samueli Academy. DISCUSSION Orangewood Real Property, LLC, a California limited liability company (the "Borrower"), the sole member of which is the Orangewood Foundation, a California nonprofit public benefit corporation and an organization described under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has requested that the Authority issue revenue obligations in the maximum principal amount of $38,000,000 (the "Obligations') for the purpose of making one or more loans to the Borrower, to enable the Borrower to finance and refinance the cost of educational facilities, consisting of classrooms, a student innovation center, a 16,000 square foot gymnasium, an outdoor soccer field, a 48 room student dormitory and other related facilities, all located on a 7.1 acre parcel of land at 1901 and 1919 North Fairview Road, Santa Ana (collectively, the "Facilities"). A portion of the proceeds of the Obligations will be used to pay costs of issuance and related costs in connection with the financing. 4819-8240-9091.2 75D-1 TEFRA Public Hearing for Orangewood Real Property, LLC and Samueli Academy February 5, 2019 Page 2 The Borrower will lease the Facilities to Samueli Academy, a California nonprofit public benefit corporation (the "Academy"), and an organization described under Section 501(c)(3) of the Code. The Academy is a charter school established pursuant to the Charter Schools Act of 1992, as amended (constituting Part 26.8 of Division 4 of Title 2 of the Education Code). The Academy currently operates a high school at the Facilities, serving students in grades 9 through 12. The Facilities will allow the Academy to serve students in junior high school (grades 7 and 8), provide an innovative student dormitory and provide additional facilities to meet the needs of its students. The Academy derives its name from its key benefactors, Henry and Susan Samueli. Henry and Susan Samueli are passionate philanthropists whose generosity extends throughout Orange County and worldwide. They are committed to investing in creative, sustainable and entrepreneurial approaches to promote scholastic achievement, build communities of acceptance and altruism, increase knowledge and opportunities, and enhance the quality of life of the underserved. They have provided significant, varied and ongoing support to the Academy for many years. The City of Santa Ana is an associate member of the Authority, a joint powers authority established by the California Association for Local Economic Development whose purpose is to issue tax-exempt and taxable conduit revenue bonds to fund commercial and industrial development projects within member jurisdictions. The Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the Government Code of the State of California and Internal Revenue Code Section 145 provide for the issuance of tax-exempt "private activity' obligations by a conduit governmental issuer on behalf of a 501(c)(3) corporation to finance facilities used, owned and/or operated by such entity. For interest on such private activity obligations to be tax- exempt, Section 147(f) of the Code requires, among other things, the obligations and the facilities financed thereby must be approved by both the governmental unit which will issue the obligations (in this case, the Authority) and the governmental unit in which the obligation -financed facilities are located (City of Santa Ana). Further, a public hearing, for which reasonable notice has been given, must be held. This hearing and process is referred to as TEFRA, after the Tax Equity and Fiscal Responsibility Act of 1982. The assets to be financed and refinanced with the proceeds of the Obligations are located within the jurisdiction of the City. Therefore, the City has been asked to conduct the public hearing, and to approve the Obligations as the host governmental unit. The City has effectuated proper notice of the hearing via publication at least 14 days in advance. The Obligations will be payable solely from amounts received pursuant to the terms and provisions of the loan agreement to be executed by the Authority and the Borrower. The City will not be a party to the loan agreement or any other documents in connection with the issuance of the Obligations. The Obligations will not be secured by any form of taxation or by any obligation of either the City or the Authority. The Obligations do not represent or constitute a general obligation of either the City or the Authority. 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, 4819-8240-9091.2 75D-2 TEFRA Public Hearing for Orangewood Real Property, LLC and Samueli Academy February 5, 2019 Page 3 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. As announced in the published notice, the TEFRA hearing is an opportunity for all interested persons to speak or to submit written comments concerning the proposal to issue the Obligations to finance and refinance the Facilities. There is no requirement that either the Borrower or the City Council respond to any specific comments made or submitted at the hearing. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #2 — Youth, Education, Recreation, Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT The City will receive a payment in the amount of $644.40 to hold a TEFRA Hearing for this project and it will be deposited into the Miscellaneous Revenue, Miscellaneous Service Charge account (no. 01102002-53902). -5:1- Nk- Steven A. Mendoza Executive Director Community Development Agency Exhibits: 4819-8240-9091.2 1. Public Notice 2. TEFRA Resolution APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downf, CPA Executive Director IM Finance and Management Services Agency 75D-3 75D-4 EXHIBIT 1 NOTICE OF PUBLIC HEARING PURSUANT TO SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, FOR THE FINANCING AND REFINANCING OF CERTAIN FACILITIES FROM THE SALE OF TAX-EXEMPT OBLIGATIONS NOTICE IS HEREBY GIVEN that at 5:45 p.m., or as soon thereafter as the matter may be heard, on February 5, 2019, in the City Hall Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92701, the City of Santa Ana City Council (the "City Council") will conduct a public hearing (the "Public Hearing") at which the City Council will hear and consider information concerning the issuance, from time to time, pursuant to a plan of finance, of one or more series of tax-exempt obligations by the California Enterprise Development Authority (the "Issuer") in an aggregate principal amount not to exceed Thirty -Eight Million Dollars ($38,000,000) (the "Obligations"). Proceeds of the Obligations will be loaned to Orangewood Real Property, LLC, a California limited liability company, or any affiliate thereof or successor thereto (the "Borrower"), the sole member of which is Orangewood Foundation, a California nonprofit public benefit corporation, and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), pursuant to one or more loan agreements (the "Loan Agreement"). The Borrower plans to use the proceeds of the Obligations to finance and refinance the cost of developing, constructing, installing, improving, equipping and furnishing educational facilities, consisting of classrooms, a student innovation center, a 16,000 square foot gymnasium, an outdoor soccer field, a 48 room student dormitory and other related facilities, all located on a 7.1 acre parcel of land at 1901 and 1919 North Fairview Road, Santa Ana, California (the "Facilities"). The Borrower will also use a portion of the proceeds of the Obligations to pay certain costs of issuance and other related costs in connection with the Obligations. The Facilities will be owned by the Borrower and are leased by the Borrower to Samueli Academy, a California nonprofit public benefit corporation and a charter school, in connection with its tax-exempt mission of providing a quality education for students in grades 7 through 12. The Obligations will be paid entirely from repayments by the Borrower under the Loan Agreement. Neither the faith and credit nor the taxing power of the City of Santa Ana (the "City"), the Issuer and its members, the State of California (the "State"), or any other political corporation, subdivision or agency of the State is pledged to the payment of the principal of, premium, if any, or interest on, the Obligations, nor shall the City, the Issuer and its members, the State or any other political corporation, subdivision or agency of the State be liable or obligated to pay the principal of, premium, if any, or interest on, the Obligations. The Public Hearing is intended to comply with the public approval requirements of Section 147(f) of the Code. Those wishing to comment on the issuance of the Obligations, proposed nature and location of the Facilities or the plan of finance may either appear in person at the time and place indicated above or submit written comments, which must be received prior to the Public Hearing by the Clerk of the City Council, at City of Santa Ana, 20 Civic Center Plaza, 8th Floor, Santa Ana, California 92701. 4835-2047-3475.1 75D-5 75D-6 EXHIBIT 2 RESOLUTION NO. 2019 -XXX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $38,000,000 TO FINANCE FACILITIES FOR THE BENEFIT OF THE ORANGEWOOD REAL PROPERTY, LLC AND SAMUELI ACADEMY WHEREAS, Orangewood Real Property, LLC, a California limited liability company (the "Borrower"), the sole member of which is Orangewood Foundation, a California nonprofit public benefit corporation (the "Foundation"), has requested that the California Enterprise Development Authority, a joint exercise of powers agency established pursuant to the laws of the State of California (the "Authority"), issue its tax-exempt obligations, from time to time pursuant to a plan of finance (the "Obligations"), in an aggregate principal amount not expected to exceed $38,000,000, for the benefit of the Borrower, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the "Act"), for the purpose of making one or more loans to the Borrower to finance the cost of developing, constructing, installing, improving, equipping and furnishing educational facilities, consisting of classrooms, a student innovation center, a 16,000 square foot gymnasium, an outdoor soccer field, a 48 room student dormitory and other related facilities, all located on a 7.1 acre parcel of land at 1901 and 1919 North Fairview Road, Santa Ana, California (collectively, the "Facilities"); and WHEREAS, a portion of the proceeds of the Obligations will be used to pay the costs of issuance in connection with such financing and other related costs; and WHEREAS, the Foundation is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code") and, through the Borrower, will own the Facilities in connection with its mission of helping foster and community youth develop and achieve their educational goals, from high school to college to graduate school; and WHEREAS, the Borrower will lease the Facilities to Samueli Academy, a California nonprofit public benefit corporation and charter school; and WHEREAS, the issuance of the Obligations must be approved by the governmental unit on behalf of which the Obligations are issued and a governmental unit having jurisdiction over the territorial limits in which the Facilities are located pursuant to the public approval requirement of Section 147(f) of the Code; and WHEREAS, the Facilities are located within the territorial limits of the City of Santa Ana (the "City"), and the City Council of the City (the "City Council") is the elected legislative body of the City and is the "applicable elected representative" required to approve the issuance of the Obligations under Section 147(f) of the Code; and 4834-87574403.1 75D-7 :*:/:Il 11110 WHEREAS, the issuance of the Obligations shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party; and WHEREAS, the Authority and the Borrower have requested the City Council to approve the issuance of the Obligations in order to satisfy the public approval requirements of Section 147(f) of the Code; and WHEREAS, a public hearing was held by the City Council on this 5ti' day of February, 2019, at the meeting which commenced at the hour of 5:45 p.m., in the City Hall Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92701, following duly published notice thereof in a newspaper of general circulation in the City of Santa Ana, and all persons desiring to be heard have been heard; and WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Section 147(f) of the Code; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the City Council of the Facilities for any other purpose, including, but not limited to, compliance with the California Environmental Quality Act (California Public Resources Code, Section 21100, et seq.) ("CEQA" ); NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby finds and declares the above recitals are true and correct; and, be it Section 1. The City Council hereby finds and determines that all of the recitals are true and correct. The City Council, as the "applicable elected representative" of the governmental unit on behalf of which the Obligations will be issued and having jurisdiction over the area in which the Facilities are located, hereby approves the issuance of the Obligations by the Authority, which Obligations may be tax-exempt and/or taxable as approved by the Authority in its resolution, in an amount not to exceed $38,000,000 to finance the cost of the Facilities. This Resolution shall constitute "issuer" approval and "host" approval of the issuance of the Obligations within the meaning of Section 147(f) of the Code; provided, however, that this Resolution shall not constitute an approval by the City Council of the Facilities for any other purposes, including compliance thereof with CEQA, nor does it constitute an approval of the underlying credit or financial structure of the Obligations. The City shall not bear any responsibility for the issuance of the Obligations, the tax-exempt status of the Obligations, the repayment of the Obligations or any other matter related to the Obligations. 2 7501-8 EXHIBIT 2 Section 2. All actions heretofore taken by the officers, employees and agents of the City with respect to the approval of the issuance of the Obligations are hereby approved, confirmed and ratified, and the officers and employees of the City and their authorized deputies and agents are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all certificates and documents which they or bond counsel may deem necessary or advisable in order to consummate the issuance of the Obligations and otherwise to effectuate the purposes of this Resolution. Section 3. The adoption of this Resolution shall not obligate the City or any department thereof to (a) provide any financing for the Facilities; (b) 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 or operation of the Facilities; or (c) make any contribution or advance any funds whatsoever to the Authority. Section 4. This Resolution shall take effect from and after its adoption. 75D-9 EXHIBIT 2 ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: �&V� Ry O. Mdge Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 2019. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana id 75D-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: PUBLIC HEARING — FINAL ENVIRONMENTAL IMPACT REPORT NO. 2018-01, DEVELOPMENT AGREEMENT NO. 2018-01, GENERAL PLAN AMENDMENT NO. 2018-06 AND AMENDMENT APPLICATION NO. 2018-10 FOR THE PROPOSED MULTI -FAMILY DEVELOPMENT LOCATED AT 2525 NORTH MAIN STREET (STRATEGIC PLAN NO. 3,2) kA� CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1n Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER It is recommended that the City Council not open the public hearing and direct staff to reschedule and publish notice of public hearing to a date specific. PLANNING COMMISSION ACTION At its regular meeting on January 14, 2019, and after receiving public testimony on the item, the Planning Commission recommended that the City Council deny the proposed 476 -unit residential development at 2525 N. Main Street and all regulatory and implementing actions proposed. The Planning Commission recommendation of denial included not certifying the Final EIR No. 2018-01 and not adopting the findings of fact, statement of overriding considerations, and the Mitigation Monitoring and Reporting Program for the proposed project. Further, the Commission recommended that the Council deny Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10. The recommendation of denial was approved by a vote of 4:2 (Contreras -Leo, McLoughlin, Nguyen and Verino supportive of the denial motion; Alderete and Benavides opposed). Commissioner Cano recused herself from deliberations on the project due to a conflict of interest (Exhibit 8). Jeremy Ogulnick, representing AC 2525 Main, LLC, submitted an application for several entitlements to facilitate the development of a 517 -unit multi -family housing project (87 du/ac) on a 5.93 -acre site at 2525 North Main Street. Based on early staff and public feedback the applicant elected to reduce the request to 496 units (84 du/ac). Specifically, the applicant is requesting the certification of the Final environmental impact report (EIR) for the project, along with the mitigation monitoring and reporting program and statement of overriding considerations. Specific 75E-1 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 2 entitlements requested include a general plan amendment to redesignate the property from Professional & Administrative Office (PAO) to District Center (DC), and an amendment application to rezone the property from Professional (P) to Specific Development No. 93 (SD -93). In addition, a development agreement between the City and applicantlowner was drafted to require the modifications listed below as well as a number of community benefits: • Reduce the density to 81 dwelling units per acre, a maximum of 476 units • Revise the unit mix; reduce the number of studio and one -bedroom units to 70 percent of the project and increase the number of two and three -bedrooms to 30 percent of the project • Provide parking at a capacity of 2.0 spaces per unit • Provide courtyards along the north elevation With these project modifications and community benefits ensured, staff recommended to the Planning Commission approval of the project. At the January 14, 2019 Planning Commission meeting, 79 members of the public spoke on the item, 30 speakers supported the project, 48 opposed it and one speaker was neutral. After deliberating on the matter, the Planning Commission voted to recommend that the City Council deny the applicant's request to allow the multi -family residential development on the site. Specifically, the Planning Commission expressed concerns with the increase in traffic that would result from the project, the massing and density of the project, the project's incompatibility with the surrounding community, potential adverse effects of the project on the adjacent Park Santiago neighborhood, the lack of community support for the development, potential long term impacts associated with the proposed development, and concerns with potential parking intrusion on the adjacent neighborhood. Project Location and Site Description The subject site is a 5.93 -acre parcel located at the northeast corner of Main Street and Edgewood Road. Regional access to the site is provided from the Santa Ana (1-5) Freeway via Main Street, a 6 -lane arterial roadway, and via the State Route 22 (SR -22) Freeway. The project site is located on North Main Street, an urban corridor within the City. The site is also located at a main entry point to the Park Santiago Neighborhood, a residential neighborhood predominantly comprised of detached single-family dwellings (Exhibit 11). The site is currently improved with an 81,172 square foot, two-story office building with 442 parking spaces and associated mature trees and landscaping (Exhibit 12). The building has been vacant since summer 2017. The Discovery Science Center of Orange County leases the parking lot for employee and overflow parking. 75E-2 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 3 Table 1: Project Location Information IltemInformation Project Address 2525 North Main Street Nearest Intersection Main Street and Edgewood Road General Plan Designation Existing: Professional & Administrative Office PAO Proposed: District Center (DC) Zoning Designation Existing: Professional (P) Proposed: Specific Development No. 93 SD -93 Surrounding Land Uses North Santiago Park — Open Space East Single -Family Residential — R1 South Single -Family Residential — R1 West Discovery Science Center — SD -65 Property Size 5.93 acres (258,310 square feet) Existing Site Development The site contains a two-story, 81,172 square foot office building with 442 parking spaces Applicable Zoning Code Sections Existing: SAMC Chapter 41, ArticleProposed: III, Division 8 (Professional) I SAMC Chapter 41, Article III, Division 26 (Specific Development) Entitlements SAMC Chapter 41, Article V, Division II (Amendments and Change to District Boundaries) Project Description The applicant is proposing to demolish the existing office building and develop a high-density multi- family residential development on the site (Exhibit 13). The original proposal included the development of 517 residential units wrapped around the 8 aboveground levels of the parking structure. However based on staff and public feedback, the applicant elected to reduce the request to 496 units. The revised project would result in approximately 930,705 square feet of development (572,075 square feet of residential buildings and 358,630 square feet of parking structure and common open space structures) at a density of 84 dwelling units per acre, with an average unit size of 972 square feet (Exhibit 14). The floor area ratio is 2.21 which is derived by calculating the square footage of the gross building square footage (residential development and common open space, excluding the parking structure square footage) by size of the property. The unit breakdown can be found on Table 2. The residential buildings will range from 2 -stories in height (24 feet) at the eastern portion of the site and will tier up to 5 -stories with mezzanines (approximately 78 feet) along Main Street. The tallest element of the building will be approximately 95 feet in height as measured from the rooftop amenity/recreation deck. 75E-3 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 4 Table 2: Applicant Proposed Unit Mix and Unit Square Footage Unit -Type Number of Units (%) , Square Footage of Units Studios 73 15% 592-740 One -Bedrooms 307 62% 634-1,091 Two -Bedrooms 88 18% 909-1,472 Three -Bedrooms 28 5% 1,360 - 1,520 Total 496 units 100% 114 The main entry for the project would be via a driveway on Main Street. The driveway will lead to an internal drop-off area, the leasing office and guest parking spaces before leading into the gated parking structure. The parking structure is located closer to Main Street, further away from the single-family homes to the east, with the residential buildings wrapped around the structure to screen from views at the ground level. Two levels of the parking structure would extend above the residential portion of the building. The applicant is proposing to provide a secondary access/egress point at the Santiago Park Drive/Walkie Way and Main Street intersection. This option is not a required element of the project but would allow for an additional point of access to the development. If constructed, use of the park for vehicular access would require the replacement of lost park square footage with new park land of equal or greater size, utility and value. In addition, approval would be required from the Parks and Recreation Department, the State Office of Grants and Local Services and the National Park Service. The parking structure totals 358,630 square feet, with 8 -levels above grade and 1 -level below grade. A total of 904 parking spaces are proposed on-site which is a ratio of 1.8 spaces per unit. A total of 150 tandem spaces (17 percent of the overall parking spaces) will be provided. The applicant has provided a parking study of similar type multi -family projects that identifies a parking demand of 1.354 space per unit which would forecasts parking needs to be 672 spaces for the project (Exhibit 9). Table 3 below provides a breakdown of the proposed parking for the project. However, the Development Agreement requires the property owner to provide parking capacity for 2 spaces per unit. The spaces may be provided through lifts, tandem parking, off-site parking spaces with a valet service or other alternate means. Table 3: Applicant Proposed Parking Unit Type, Units Rate Stalls'Provided Studios 73 1.00 73 One -Bedroom 307 1.00 307 Two -Bedrooms 88 2.00 176 Three -Bedrooms 28 3.00 84 Guest Parkin 496 .23 114 Tandem Stalls 150 Applicant's Proposed Total 496 1.80 904 spaces Staffs Proposed Total 476 2.00 952 spaces 75E-4 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 5 The project has incorporated a contemporary architectural design. Elements such as stone veneer, multiple brick veneers, metal panels, ceramic tile, metal canopies, flat and metal seamed roofs all assist in conveying a modern design. The color scheme encompasses earth tones of tans, browns and greys. Courtyards are provided along Main Street, Edgewood Road and the internal east elevation to break up the massing and create distinct building sections. In addition, units along Edgewood Road will front the street, providing direct street access and assisting in activating the street (Exhibits 15 & 16). A combination of common and private open spaces will be incorporated into the project design. Approximately, 34,630 square feet of common open space will be dispersed throughout the project. These areas will consist of ground level courtyards with amenities such as a pool and spa, seating areas, tables and chairs, shade trellis, fire pits, and enhanced landscaping. A rooftop amenity deck will also be provided that will include a pool and spa, cabanas, fire pits, lounge chairs, shade structures, a club room, and a fitness center. Other common area amenities such as a wellness room, chefs kitchen, dog wash room, bike repair room, bike share, Amazon parcel lockers, and entertainment room, will be incorporated into the building and will provide residents with opportunities for on-site services and entertainment space. In addition, private open space in the form of patios or balconies will be provided for each unit (Exhibit 17). These spaces will range from 53 to 77 square feet in size. An detailed landscape pallet is proposed for this project which incorporates, when possible, existing healthy trees. The applicant is proposing to retain the mature Ficus trees along the east property line. An arborist report was prepared, with mitigation measures included to ensure the trees remain in a healthy condition pre- and post -construction. The report also identified 8 trees (7 Sweet Gum trees and 1 Cypress tree) along the eastern property line that are in an unhealthy condition and are recommended for removal. Additional trees similar in size and type to the mature trees will be planted to fill in areas where trees were removed or are missing. In addition, the applicant will raise the height of the wall adjacent to the single-family dwellings from six to eight feet in height. Given the number of parcels affiliated with this proposal, the lots will need to be combined into a single development parcel. Prior to issuance of building permits, a voluntary lot merger will need to be applied for and be approved. This application is ministerial, with no Planning Commission or City Council action required. This project is required to comply with the City's Housing Opportunity Ordinance (HOO). To satisfy the provisions of the HOO, applicant is proposing to pay an in -lieu fee in excess of $6,000,000. See Table 4 below for a breakdown of the proposed HOO fee. Table 4: Housing Opportunity Fee Summary Habitable�S uare Foota' a— ""Inausionary Housin#aFee =; estimated Fee _- 404,746 1 $15 per square foot $6,071,190 *As measured from the exterior walls of the residential units. This calculation does not include exterior hallways, common areas, landscape, open space or exterior stairways* 75E-5 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 6 Analvsis of the Issues Environmental Impact Report The applicant submitted a development proposal that requires the approval of several discretionary applications. Given the size and location of the project, as well as the proposed zoning and general plan modifications, extensive environmental review was needed. After completion of the Initial Study for the project, it was determined that the California Environmental Quality Act (CEQA) required the preparation and certification of an environmental impact report (EIR) for this project. The purpose of an EIR is to identify the significant effects on the environment of a project, to identify alternatives to the project, and to indicate the manner in which those significant effects can be mitigated or avoided. To determine what potential effects would be caused by the project, the EIR analyzed issues related to Aesthetics; Air Quality; Biological Resources; Cultural/Historic Resources; Greenhouse Gas Emissions; Hazards and Hazardous Materials; Land Use and Planning; Noise; Population and Housing; Public Services; Transportation and Circulation; Tribal Cultural Resources; Utilities and Service Systems; and Energy. On February 12, 2018, the Initial Study and Notice of Preparation were released to solicit comments regarding the scope and content of the Draft EIR (DEIR). A scoping meeting was held on March 1, 2018 with approximately 164 people in attendance and a total of 163 written comment letters were received at the conclusion of the 30 -day public comment period. The comments were reviewed, and additional areas of analysis and studies were added to the scope of the Draft EIR as appropriate. The comments are included as Appendix A of the Draft EIR. The Draft EIR analyzed the direct and indirect impacts resulting from construction and operation of the proposed project. In addition to analyzing fourteen environmental topic areas, the EIR also evaluated three options for access and egress to the project. The analysis included Main Street access only as proposed (Option A), access from Main Street plus a secondary access/egress driveway at the Main Street and Walkie Way/Santiago Park intersection (Option B), and access/egress from both Main Street and Edgewood Road (Option C). Three project alternatives were also analyzed within the document. These included a no build alternative, where the existing approximately 80,000 square foot building would remain as is and be reoccupied by an office use (Alternative 1); a reduced multi -family project consisting of a 30 percent reduction in density (Alternative 2); and build out of the site under the existing Professional zoning district development standards, which could result in an approximately 390,000 square foot two and three-story office building (Alternative 3). The Draft EIR determined that the proposed project would require mitigation related to aesthetics, air quality, biological resources, hazardous materials, construction noise and vibration, interior noise, and tribal resources. Impacts related to aesthetics would remain significant and unavoidable after mitigation. On August 7, 2018, the Draft EIR was circulated for review and comment to public, City Council, Planning Commission, local, regional and state agencies, and interested parties for a 45 -day public 75E-6 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 7 comment review period. In addition, a Planning Commission public hearing was held on August 27, 2018 where staff presented the EIR process and environmental information to the Planning Commission and pubic and received public comments on the DEIR. To allow for additional time for public review and comment, and at the request of the North Santa Ana Preservation Alliance, the City extended the DEIR public comment period by an additional two weeks. At the close of the review and comment period on October 4, 2018, a total of 44 comment letters were received on the Draft EIR. The City has evaluated the comments received from persons and agencies on the Draft EIR and completed detailed Response to Comments, revisions to the Draft EIR including clarifications and/or corrections to typographical errors, and a Mitigation Monitoring and Reporting Program (MMRP). The response to comments, MMRP and Final EIR were published on November 15, 2018 for public review. The Draft EIR, responses to comments document, revisions to the Draft EIR, and the MMRP constitute the Final EIR for the project (Exhibit 2). The EIR identified one significant and unavoidable impact associated with this project, which pertains to aesthetics. Based on the City's visual criteria related to scale, height and setbacks, it was determined that the project would result in a substantial change in views from existing conditions and would result in a significant and unavoidable impact to the aesthetics. As a result of this impact that cannot be mitigated to a less than significant level, adoption of a Statement of Overriding Considerations is required prior to approving the project. A Statement of Overriding Considerations is the process through which decision makers balance the economic, legal, social, and technological or other benefits of the proposed project against its unavoidable environmental impacts. Development Agreement The development agreement (DA) is a legal contract between the developer and the City that defines the terms and nature of development proposed for the project site. This agreement establishes development intensity, permitted uses and standards for the term of the agreement. In exchange for the City vesting approval of the proposed project, the development agreement requires certain improvements and public benefits as part of the project (Exhibit 3). For example, the DA will memorialize requirements for public art, monetary contribution to fund physical improvements to Santiago Park, Park Santiago residents benefits such as access to on site amenities, security patrol of the residential neighborhood and Santiago Park, assistance in designating the Park Santiago Neighborhood Association as a historic district, and monetary contribution to Park Santiago Neighborhood Improvements and Traffic Calming for improvements such as street calming, traffic diversion, entry monuments, and street light upgrades. If approved, the agreement will include both deal points and project conditions for the project. Highlights of the DA include: 1. Term of Agreement. The right to build the project as entitled for a period of four years, with an opportunity for up to two, consecutive one-year extensions. Extensions shall be subject to approval by both the Owner and the City Manager. Prior to granting an extension, the Owner shall pay $50,000 to the City's General Fund to compensate the City for lost revenue to be received by the City had the project been completed within the first four years. 75E-7 El No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 8 2. Public Art. The Owner shall create, install, and maintain a public art project with a value equivalent to 0.5% of the total construction cost of the project. The work(s) of art shall be in place prior to issuance of the first certificate of occupancy for the project and shall be maintained in perpetuity by the property owner. 3. Santiago Park Improvement Funds. Provide funding for Santiago Park Maintenance and Improvements in the amount of $1,400,000 to the City for the construction of park improvements or the owner shall be authorized by the City to construct the park improvements at the owner's sole cost and expense up to $1,400,000. These park maintenance funds shall be deposited with the City within 180 days after the issuance of the first building permit for the purpose of completing park improvements including, but not limited to, installation of irrigation, landscaping, security lighting and bike trail enhancements as shown in Exhibit G to the Development Agreement. An additional $100,000 will be paid to the City prior to the issuance of the first building permit for the maintenance of neighborhood entry monuments. 4. Park Santiago Neighborhood Benefits Package. The Developer shall provide Park Santiago Neighborhood residents with access to on-site amenities, Amazon lockers, 24- hour roving security patrol within the Park Santiago Neighborhood and Santiago Park as shown on Exhibit H to the Development Agreement for a 55 -year period unless determined during an annual review that the term shall end earlier. 5. Historic District Application. If desired by the majority of the Park Santiago Neighborhood property owners, the applicant shall pay all costs and expenses associated with processing the application for historic district consideration, including reimbursing the City for costs incurred conducting the survey and any environmental review, up to and not to exceed the amount of $150,000. 6. Park Santiago Public Improvements. The Owner shall be responsible for the analysis, design, engineering, construction and inspection/administration of traffic calming/improvements at up to three locations on Edgewood and/or Bush Street to achieve traffic calming, entry monuments at three location at Main Street/Edgewood Road, Santa Clara Avenue/Lincoln Avenue and Santiago Street/17th Street, replacement of all non LED street lights and/or fixtures with LED street lights and/or fixtures throughout the Park Santiago Neighborhood, and installation of a street light and decorative concrete pavement within the intersection at the Walkie Way/Santiago Park Drive and Main Street intersection. 7. Parking. Per the conditions of approval (Exhibit I to the Development Agreement) the applicant shall increase number of spaces or capacity to increase the onsite ratio of parking, including the use of valet parking, to an equivalent of two (2) spaces per unit. 8. Unit Mix. Per the conditions of approval (Exhibit I to the Development Agreement) the applicant shall increase the number of family units to a minimum of thirty percent (30%) of the proposed units to contain 2 & 3 bedrooms. 75E-8 El No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 9 The agreement also includes provisions for an overcrowding management plan, live work preference plan, local sourcing plan, construction management and property maintenance plans. The development agreement has been signed by the applicant indicating agreement to the terms. The agreement is not considered final until the City Council has reviewed and approved the agreement and the agreement is executed by all parties. General Plan Amendment To allow for the construction of a multi -family residential development on this parcel, a general plan amendment is required. Currently, the land use designation for this site is Professional and Administrative Office (PAO), which applies to areas that are predominately professional offices and/or administrative offices or areas where such development is encouraged. This project will require an amendment to the Land Use Element to amend the General Plan Land Use designation of the site to District Center (DC) with a density of 81 dwelling units per acre (reduced from 87 du/ac based on staff recommended changes incorporated into the Development Agreement) or a floor area ratio of 2.21 (Exhibit 4). The purpose for maintaining and supporting professional office areas are to increase employment opportunities for local residents, enhance the diversity of the City's economic base, to develop mutually beneficial and supportive business clusters in the City and to support uses that create little to no nuisances to nearby residents or businesses. Several properties to the north and west across Main Street are designated as PAO therefore work to create a professional business district. Areas such as this northern gateway of the City provide a rich employment base for many residents of the City and those in the region who work in the area. District Centers are major activity areas of the City. Currently, several areas to the northwest, northeast, south of the Santa Ana 1-5 freeway and along Main Street north of Seventeenth Street are designated as District Centers. District Centers are designed to serve as anchors to the City's commercial corridors and to accommodate higher density development projects. These areas are to be developed with an urban character that includes a mixture of high-rise offices, commercial and multi -family residential uses which provide shopping, business, cultural and housing opportunities within close proximity to each other, close to transportation opportunities and in prime development focus areas. Residential development within these areas are allowed at a density of up to 90 acres. If approved, the project could support several goals and policies of the Housing Element. First, the project would be consistent with Goal 2, which encourages diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels and age groups to foster an inclusive community. Second, the project would support Goal 4, to provide adequate rental and ownership housing opportunities and supportive services. Further, the project would be consistent with Policy HE -2.2 to create District Centers with high intensity, mixed-use urban villages and pedestrian oriented experiences. Finally, the project would be consistent with Policy HE -2.4 to facilitate diverse types, prices and sizes of housing. The project would also be consistent with goals of the Land Use Element, including Goal 1 to promote a balance of land uses to address basic community needs, and Goal 6 to reduce 75E-9 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 10 residential overcrowding to promote public health and safety. The proposed project will provide additional market rate housing in the City, thereby assisting in addressing the shortage of available housing within the region. The project will also provide additional housing options for those seeking housing within the jobs rich northern area of the City. The upscale multi -family development will also support Urban Design Element Goal 1 to improve the physical appearance of the City through development of a district that projects a sense of place, positive community image, and quality environment. The City has recently initiated the process to update its General Plan, which is the blueprint for future development. A key component of the update is to focus new growth and development along major corridors reducing the pressure for growth in low density neighborhoods and to identify areas for future development, including but not limited to higher density residential development. The northern section of the City, including the project site, has been identified as a potential area for more intense development. This North Main Street area is in the process of being studied in greater depth as the update process continues, with direction on the potential land use designation of the area expected within the next year. Amendment Application Currently, the zoning designation for this site is Professional (P) which permits a variety of business uses that aim to create a professional business environment and prohibits residential uses. To allow the construction of a multi -family residential development on this parcel, an amendment application (zone change) is required. Staff is recommending that a zone change to a Specific Development No. 93 (SD -93) designation be approved subject to staff recommended changes to the project and incorporated into the Development Agreement. The SD designation will allow a residential development and will ensure consistency between zoning and the General Plan, assuming the associated general plan amendment is approved (Exhibit 5). When considering a zone change it is important to look at the surrounding land uses and economic factors. The jobs to housing balance is evaluated by comparing project -generated jobs and housing units to forecasts of employment and housing, in addition an imbalance in the ratio can indicate air quality and traffic problems associated with commuting. Based on SCAG profiles and projections, Santa Ana is a jobs rich area with 2.06 jobs per housing unit. SCAG considers an area as balanced when the jobs -housing ratio is 1.36, therefore providing more housing would reduce the ratio to 2.05. Furthermore, in the second quarter of 2018, the City's office occupancy rate was 13.4 percent, which is higher than the neighboring central cities of Anaheim (10.4%), Orange (11.5%) and Tustin (10.9%) and the County as a whole (12.6%). Therefore, the change from Professional to Specific Development would not be a significant impact to professional office districts. In addition, use of the site for residential is supported as the location has elements to make the site a viable residential development. The elements include having regional access to freeway and transportation systems, the site is within close proximity to educational, cultural activities, employment centers, and retail and commercial shopping opportunities. Furthermore, several nearby properties and properties along Main Street are designated as Specific Developments. The 75E-10 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 11 property would be developed at a higher density than the nearby single-family residential uses. However, multi -family uses are often used in planning and zoning practice to buffer higher intensity uses like commercial or industrial uses from single-family residential uses and multi -family and single-family uses are more compatible in nature to each other. The Specific Development No. 93 (SD -93) is established for the purpose of protecting and promoting the public health, safety and general welfare of the City and its residents. This new zoning designation for the site is crafted to be consistent with the proposed project. If the zone change is approved, a series of site-specific objectives, policies and development standards will be used to guide the development of the project. Specifically, the SD -93 document includes a menu of development standards which specify setbacks, parking, height and landscape requirements and includes provisions for construction and maintenance to allow the exclusive entitlement of the residential project. The SD -93 document has been framed to include staff recommended changes to the project and prohibits future modifications to enlarge the size of the project. Approval of the proposal would allow for the construction of a high-density residential development in an urbanized setting that is within close proximity to neighborhood services and amenities. If approved, the zone change would need to be approved in conjunction with the proposed general plan amendment. This would result in a project that is consistent with the goals and objectives of City's General Plan land use designation of District Center. The project will promote an urban development where office, retail and residential activities would coexist in close proximity and in a mixed-use setting. Further, the project will contribute towards the improvement of the character of the northern section of the City. Finally, the development, through the construction of the proposed public improvements and site amenities, will contribute to the enhancement of the area and serve as a buffer between commercial and high intensity uses and the lower density residential area. Public Comments A significant number of public comments have been received on this project, mainly voicing concerns with or opposition to the project. Over the last year emails (approximately 400 emails are on file), letters and phone calls were received, and small group meetings and study sessions have been conducted. A list of the major comments received are summarized in the sections below. Community Meetings On November 15, 2017, 27 calendar days after the application was submitted, the developer held a Sunshine Meeting at the Discovery Cube of Orange County and overviewed plans for a 517 -unit development, 5 -stories in height, with 910 parking spaces and access from Edgewood Road. Sign - in sheets indicate 263 people attended. Minutes of the meeting including community comments made at the meeting and the applicant's responses were prepared by the applicant (Exhibit 6). In early 2018 (January 30, 2018 and February 15, 2018), planning staff coordinated meetings with the developer and the North Santa Ana Preservation Alliance representatives. Approximately 20 people attended the small group meetings, including the developer, members of the North Santa 75E-11 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 12 Preservation Alliance, nearby neighborhood representatives and planning staff. The applicant shared a revised plan that included 505 units, a revised unit mix, the removal of the parking structure access from Edgewood Road, and modifications to the architectural style. A Planning Commission study session was conducted on August 27, 2018 where staff presented information on the project description, the draft environmental impact report, entitlements, vicinity, building heights, access options, unit mix, parking, and areas of consideration. The applicant also provided a presentation that overviewed the project, amenities, community benefits, concerns and support, traffic, changes made by the applicant to the project, and project benefits. Thirty-two (32) verbal comments were received (three in support and 29 in opposition) and nine written comments were received (one in support and eight in opposition). On September 5, 2018, the developer, members of North Santa Ana Preservation Alliance, and City planning staff met to discuss the proposed project. A list of questions, comments and concerns were raised by the neighborhood. In follow up on September 24, 2018, information requested at the previous meeting was provided by staff to members of the North Santa Ana Preservation Alliance. Most recently, on November 26, 2018 the public hearing for the project was continued to January 14, 2019 and a second study session was conducted where staff presented information on the project, the Draft EIR, comments received, the Final EIR and draft development agreement terms. The applicant also played a video overviewing the project. During public comments 58 verbal comments were received (25 in support; 31 in opposition and two neutral) and 11 written comments were received (two in support and nine in opposition). One comment letter on the DEIR from Lozeau Drury LLP was received and written response to the comments was drafted (Exhibit 7). Density The revised project has reduced the density from 87 dwelling units per acre to 84 dwelling units per acre or a floor area ratio of 2.21. Per the General Plan, the maximum floor area ratio of the subject property and the properties to the north and west is 1.5 and the maximum dwelling units per acre of the residential properties to the east and west is 7 dwelling units per acre. As proposed, the project has higher density and floor area ratio than the surrounding properties. With the staff recommended changes to the project, the maximum density of the project will be further reduced to 81 dwelling units per acre which is within the range of densities approved for other multi -family projects in the City as shown in Table 5. Table 5: Project Density Compared to Approved Apartment Projects IPCo e'cts LD,ens%' # . ne Status The N t 1901 East First First Street 49 du/ac Metro -East Mixed Use Overlay Constructed The Line 3630 Westminster Avenue 58 du/ac Harbor Mixed Use Specific Plan Under Construction The Heritage 2001 East Dyer Road 65 du/ac Specific Development No. 88 Under Construction The Marke 74 du/ac I Specific Development No. 76_1 Constructed 75E-12 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 13 IIP■r_o ects Densi . _ iitone Status 100 East MacArthur Boulevard 5 -stories with mezzanines (65 feet) 25 feet (2 -stories) maximum Prisma (301) within rear 50% of lot (approx. 240 amenities (90 feet) 301 East Jeanette Lane 91 du/ac Specific Development No. 59 Constructed The Madison property line 200 North Cabrillo Park Drive 94 du/ac Metro -East Mixed Use Overlay Entitled 2018 Elan 15 feet minimum 12 feet, 6 inches west property line 1660 East First Street 94 du/ac Metro -East Mixed Use Overlay Entitled 2018 2525 North Main St. 81 du/ac Specific Development No. 93 Proposed Height The height limits of the Professional zone are a maximum of 35 feet/3-stories or a maximum of 25 feet/2-stories within the rear 50 percent of the lot. The office building to the north is 10 -stories (approximately 160 feet in height), the Discovery Cube to the west is approximately 110 feet in height, and the single-family dwellings to the south and east are one-story (approximately 18 feet in height). The proposed project would be similar in height to the buildings along Main Street, however the 5 -story residential buildings would be 3 -stories taller than the maximum allowable height in the R-1 zone of (2 -stories, 27 feet). The SD -93 development standards for the east portion of the building require the height to tier from five to two stories as shown on the site plan to create a transition in the building heights to the neighborhood to the east. Tables 6 compares the height and setback requirements in SD -93 to the PAO development standards. Table 7 compares the proposed project height to other approved apartment projects in Santa Ana. Table 6: Professional Zone Comparison Deveto pent Standard = ' Professional Zone Proposed Project Building Height 35 feet (3 -stories) maximum 5 -stories with mezzanines (65 feet) 25 feet (2 -stories) maximum 8 -level parking structure with rooftop within rear 50% of lot (approx. 240 amenities (90 feet) feet from the east property line) No building within 40 feet of the east property line Maximum 25 feet (2 stories) within 40 to 66 feet of the east property line Front Setback 15 feet minimum 12 feet, 6 inches west property line Street Side Setback 15 feet minimum 15 feet south property line Interior Side Setback 5 feet minimum 7 feet, 6 inches north property line Rear Setback 50 feet minimum 40 feet, 7 inches east property line 75E-13 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 14 Table 7: Project Height Compared to Approved Apartment Projects ProjCts He`ig'ht The Marke 5 levels The Nineteen01 5 levels Prisma 301 5levels The Line 5 levels + 6 levels of parking The Heritage 5 levels The Madison 7 levels Elan 7 levels 2525 North Main St. (proposed) 5 levels with mezzanines + 8 levels of parking Bulk/Scale Bulk describes the mass of a building and scale refers to the proportional relationship of the size of the building to other structures. The project is in scale with the commercial buildings along Main Street and significantly larger in scale than the residential homes to the south and east. The project has been designed with courtyards to reduce the bulk of the building and will also be tiered on the east from 2 -stories to 5 -stories. Shade/Shadow Section 4.1 of the Draft EIR analyzed shade and shadow impacts. Shade and shadow studies were prepared for each calendar month. For CEQA purposes, impacts are considered significant if shadow -sensitive uses would be shaded by the project -related structures for more than 3 hours between the hours of 9:00 a.m. and 3:00 p.m. between fall and spring, or for more than 4 hours between the hours of 9:00 a.m. and 5:00 p.m. between spring and fall when compared to existing conditions. The CEQA threshold has been used in the past by Santa Ana for other projects. As proposed, the project would cast shadows on the residential properties, but not for more than 3 hours between fall and spring or for more than 4 hours between spring and fall. Neighborhood Character The Park Santiago neighborhood is characterized by large one-story and two-story homes with a variety of architectural styles (Minimal Traditionalist, Colonial Revival, Craftsman, Spanish, and Ranch). The project site also has street frontage along North Main Street which is described in the General Plan as an opportunity for the establishment of a cohesive, height intense, mixed activity center with a strong presence in the region. The project is not in character with the neighborhood, which it shares two sides with, as the neighborhood is comprised of single-family dwellings and the project is a high density multi -family housing project. The proposed project however, has a modern contemporary design with a variety of materials that would fit the design intent of North Main Street. It is common for high density multi -family projects to have a different architectural style than surrounding single-family dwellings as the architectural styles of single-family homes often do not translate well to multi -storied buildings. 75E-14 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 15 Historic Neighborhood The City of Santa Ana has two National Register Districts, Downtown Santa Ana and French Park. Park Santiago is not a registered historic district. A total of 32 historic homes have been documented in Park Santiago of the approximately 1,173 homes in the neighborhood with the majority of the homes being more than 50 years old. As part of the EIR (Section 4.4), Cogstone prepared a Historic Resources Report and concluded that the historic homes in Park Santiago will not have the setting and feeling aspects of integrity reduced by construction of the proposed project and thus there is no reduction in the historic significance of the homes. Future opportunity for the neighborhood to become a historic district remains and is a public benefit deal point in the Development Agreement. Project Access Vehicular access is proposed via a driveway on Main Street which would only allow for right -in and right -out turn movements as Main Street has a median that separates north -south street traffic. As proposed, to enter the site when traveling southbound on Main Street residents would have to make a U-turn at Edgewood Road, and to exit the development and travel southbound on Main Street residents would have make a right-hand turn (northbound on Main Street) and make a U- turn at Walkie Way or Main Place Drive. The Traffic Impact Analysis prepared for the project analyzed the impacts of having Main Street as the sole and primary access point and found that operations would not exceed a threshold of significance (DEIR Access Option A). Use of Santiago Park for Access The applicant is proposing secondary access through Santiago Park which would utilize the existing traffic signal at Main Street and Walkie Way/Santiago Park Drive. This would allow for all directional movements to and from the property and reduce the U-turn movements described above. This access option is not a required element for the project, however it was studied as a secondary access option (DEIR Access Option B) in the Traffic Impact Analysis and found to have a less than significant impact. Various portions of the park were developed with Land & Water Conservation grant funding. As a result, a 6(f)(3) boundary map placed the entire park under federal protection to be preserved as outdoor recreational use. Any proposed changes to the park, such as the proposed vehicular access, will require review by the City's Parks & Recreation Department, the Office of Grants and Local Services and National Park Service and replacement of land with new park land of equal utility and value. The estimated square footage to improve the park for vehicular access is 10,000 square feet, in turn the applicant is proposing to provide 10,000 square feet of their property to the City for park purposes. At this time, the City has not been begun conversations with the Office of Grants and Local Services or the National Park Service, but the City would support use of the park as long as replacement parkland is provided, and monetary funds are contributed to the City for Santiago Park Maintenance & Improvements. 75E-15 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 16 Traffic A Traffic Impact Analysis was prepared by Translutions, Inc. for the project. The study was peer reviewed by the City's Public Works Agency and Kimley-Horn an on-call traffic engineering firm. The study evaluated 16 intersections, 10 roadway segments, 6 neighborhood intersections, 10 neighborhood roadway segments and 15 freeway segments (DEIR Section 4.11). Impacts were analyzed for the existing conditions (2018), expected project opening year (2020) and future conditions (2040). The 2020 conditions include the planned Caltrans improvement project which will add one continuous High Occupancy Vehicle (HOV) lane in each direction along the northbound and southbound 1-5 freeway between SR -55 and SR -57, which would result in the removal of the 1-5 HOV northbound entrance and southbound exit ramps at the intersection of N. Main Street/Edgewood Road 1-5 ramps. Based on the Institute of Traffic Engineers (ITE) trip generation rates, the project is estimated to generate 2,698 daily trips. Table 8: Proposed Project Trip Generation AW! Peak Hour PM Peak Hour 7'00 4n 9 On a r., e•nn •„ a•nn n Land Use In Out Total In Out _ Total .=- Daily Trip Generation 0.09 0.27 0.36 0.27 0.17 0.44 5.44 Rates Proposed Project 46 133 179 133 86 219 2,698 Trip Generation (496 units) Existing Office 81 13 94 15 79 94 791 (Alternative 1) Reduced Project 32 93 125 93 60 153 1,888 (Alternative 2) Office -Professional 387 62 449 71 375 446 3,774 zone (Alternative 3) The City of Santa Ana uses a rating criteria known as Level of Service (LOS) to assess the severity of traffic congestion at intersections and roadway segments. The LOS criteria uses an "A" to "F" rating scale; an "A" rating meaning traffic conditions have the least amount of traffic congestion (free flowing traffic) and an "F" rating meaning traffic conditions will have the most traffic congestion (forced or breakdown of traffic flow). As a standard practice, the City has adopted an operational LOS rating of D as the minimum acceptable LOS for intersections and roadway segments, except that for intersections and roadway segments that fall within major development areas, the City adopted a LOS rating of E as the minimum acceptable LOS. LOS is obtained by calculating the ratio of vehicles at an intersection or roadway segment versus the vehicle capacity of that intersection or roadway segment (Vehicles/Capacity). The City acknowledges that the proposed project would generate additional traffic and that would result in an increase in vehicle trips on area roadways (2,698 trips). However, the project and 75E-16 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 17 implementation of any of the three access options would not exceed a threshold identified by the City or Caltrans (Pages 4.11-12 to 4.11-23 of the DEIR). Parking The project proposes 904 parking spaces (1.8 parking spaces per unit). A parking study of two similar multi -family projects identified a parking demand of 1.354 space per unit. If applied this rate were applied to the proposed project, the parking spaces needed would be 672 spaces; less than the applicant's proposed 904 spaces. Table 9 illustrates the number of spaces required by the City's multi -family parking standards (SAMC Section 41-1322). Table 9: Parking Per SAMC Section 41-1322 Multi -family Dwellings Unit T "pe Units Rate "° Required Spaces Total # of units 496 Nineteen01 254 496 Studios 73 1.00 73 One Bedrooms 307 1.00 307 Two Bedrooms 88 2.00 176 Three Bedrooms 28 3.00 84 Subtotal 70 6% 1,136 Guest Parking 1,136 .25 284 Total - The Madison 260 1,420 spaces 2.86 spaces per unit Table 10: Santa Ana Multi -Family Project Parking Supply & Ratio ro P.rojecj Name Units The Marke 300 Total 660 _P ,arkin Residential Guest 600 60 Parkin Ratio iio#al Residential 2.2 2.0 Tandem Number 262 Parktgtg P�ercen_t 44% Nineteen01 254 559 559 2.2 2.2 Prisma 301 182 364 328 36 2.0 1.8 234 71% Elan 603 1,209 1,209 2.0 1 2.0 70 6% The Heritage 1,221 2,231 2,231 1.8 1.8 - - The Madison 260 468 468 - 1.8 1.8 104 1 22% The Line 228 359 342 17 1.6 1.5 - 2525 North Proposed 496 904 780 124 1.8 1.6 150 17% Main St. Required by SAMC 496 1 1,420 1 1,136 1 284 75E-17 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 18 Notes: Parking Ratio Total = Total Parking Spaces / Units Residential Ratio = Residential Parking Spaces / Units Percent Tandem Stalls = Number of Tandem Stalls / Units The multi -family parking standards were last updated in 1997. Over the last 10 years, multi -family projects similar in character to the proposed project have been constructed and/or approved with parking ratios ranging from 1.6 to 2.20 parking space per unit. Therefore, staff is recommending that the parking capacity of the project be increased to 2.0 parking spaces per unit (with stafl recommended changes to maximum density 476 units would equate to required capacity for a minimum of 952 spaces). These recommendations are supported by the applicant and included in the Development Agreement. Regional Housing Needs Allocation Santa Ana's Regional Housing Needs Allocation (RHNA) is 405 units for the planning period of 2014 through 2021. RHNA progress is reported annually to the state and is tracked by the number of building permits issued at the time that the report is completed. From 2014 to 2017, building permits were issued for 916 dwelling units, approximately 59 percent of the overall target; 87 very low, 70 low and 10 moderate units remain to fulfill the City's Regional Housing Need Allocation. Residential development has continued, and the 2018 report will be completed in March of 2019. Table 11: Regional Housing Needs Allocation Progress 2014-2017 Income RHNA New New New New Total Total Remaining Allocation Housing Units Housing Units Housing Housing Housing RHNA by 2014 2015 Units Units units by Income Levels 2016 2017 Income Very Low 156 20 0 0 49 69 87 Low 122 20 0 12 20 52 70 Moderate 37 0 11 5 11 27 10 Above Moderate 90 241 127 285 115 768 1 0 Total: 405 281 138 302 195 916 1 167 Apartment Product Type The applicant is proposing a high density multi -family housing project with no condominium map proposed at this time. Should an application to convert the project to condominiums be filed, the application would be processed in accordance with Santa Ana Municipal Code Chapter 34, Article IX, Common Interested Developments and Conversions Projects, Division 2, Residential Conversion Projects. Given that the proposed project is a market rate development, rents are expected to range from $2,000 to $3,700, consistent with similar development in the City such as The Marke, The Nineteen01 and Prisma. The community has expressed preference for the property to remain as a professional office building; however, if residential development were to occur the community would prefer detached single-family dwellings or townhomes. 75E-18 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 19 No General Plan Amendment, No Zone Change - Spot Zoning Comments have been received that the land use designation should remain Professional and Administrative Office and zoning as Professional. Comments have also been received in regard to "spot zoning" which is generally referred to when zoning standards are changed for one property and provides for use of the property that is different than surrounding area. Case law has established that there are several things to consider regarding the property size, surroundings, and public benefits. The property is a large 5.93 -acre parcel that could be developed as one large property or subdivided into several properties. Although, the subject site does not share a property line with another District Center due to geographic features such as Santiago Creek and the 1-5 freeway, there are District Center properties to the north and south of the site along Main Street. In addition, several nearby properties are Specific Developments, therefore amending the zoning of the property to Specific Development No. 93 would not be an unusual circumstance. Furthermore, approximately 25 percent of the properties along Main Street north of the 1-5 freeway will be a District Center with Specific Development plan. Envisioning Map Early in the General Plan update process (late 2015/early 2016) Planning Division staff drafted an envisioning map which identified study areas and areas that could potentially have an increase in development, density and building heights. The North Main Street corridor (north of 17th Street) including the subject property was identified as an area that may be considered for high-rise development and unlimited density. The map did not go through a formal adoption process and included a note that, "The map represents a conceptual effort and its contents are in a draft format and do not represent any formal efforts to rezone or redesignate properties shown." As mentioned previously, the North Main Street area is still being analyzed as part of the comprehensive General Plan update. Cumulative Impacts As part of the EIR a list of cumulative projects was drafted including projects in the vicinity within the City of Santa Ana and City of Orange for which development applications were submitted, approved and/or under construction at or prior to the release of the NOP. The project list includes 39 commercial and residential projects. Key topics raised or commented on relative to the cumulative impacts were population and traffic among others that are analyzed in the EIR. The Persons Per Household Evaluation within the EIR determined that the number of persons per dwelling unit is anticipated to be 1.6 per studio, 1.6 per one -bedroom, 2.7 per two-bedroom and 3.9 per three-bedroom which with the applicant's proposed project would be 955 residents. In addition, 1,236 multi -family units are proposed within the City of Santa Ana and 3,324 multi -family units within the City of Orange (5,056 units total). The total cumulative housing growth from all of the projects listed equals 7.4 percent, which is consistent with SCAG's growth estimates of 8.4 percent increase. 75E-19 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 20 In 2020, the project and cumulative projects are anticipated to generate 4,306 a.m. peak hour trips, 4,359 p.m. peak hour trips, and 49,842 daily trips. In 2020, with the cumulative project trips, all study area intersections are forecast to operate at satisfactory levels of service, except for the Main Street/Santa Clara/I-5 northbound on ramp and the SR -22 eastbound ramps at Town and Country Road in both the a.m. and p.m. peak hours. However, the SR -22 eastbound ramps at Town and Country Road also operate at unsatisfactory conditions under existing conditions. In 2040, the intersections are anticipated to operate at an unsatisfactory level of service with or without the project. Impacts to Public Services Section 4.10 of the Draft EIR analyzed the impacts of the project on fire service, police service and parks and recreation service. CEQA focuses on the physical effects of the project (i.e. new or expanded facilities), therefore an increase in staffing or calls for service would not, by itself, be considered a physical change in the environment. As proposed the project would result in a less than significant impact to public services. Impacts to Utilities Sections 4.13 and 4.14 of the Draft EIR analyzed the impacts of the project on water supply, wastewater, drainage, water quality, and energy. Technical reports including a Water Supply Assessment, Sewer Analysis and Hydrology Report were prepared for the project. As proposed the project would result in a less than significant impact to utilities and services. Noise Section 4.8 of the Draft EIR analyzed noise impacts related to construction operations and operational noise from HVAC equipment, parking facilities, trash removal and use of the outdoor open space. Based on the SAMC noise standards the project would not general noise levels that would exceed noise standards. To mitigate construction noise two mitigation measures are proposed, one to require a 50 -foot buffer along the east property line for large mobile construction equipment and installation of a temporary noise barrier such as vinyl acoustic curtains or quilted blankets attached to the east property line wall or temporary fence posts. Privacy Privacy concerns regarding windows on the east elevation and visibility from the rooftop amenity deck into backyards or homes were raised. A rendering of eastern views from the rooftop has been provided, views of the single-family dwellings are out of the line of sight from the amenity deck as it is located closer to Main Street. In addition, staff has included a requirement within the Specific Development for clerestory or opaque windows along the building wall that is at the 40 -foot setback. 75E-20 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 21 Project Changes Since the initial project submittal, the applicant has made changes to the project to address both staffs and the public's comments. Changes made include: 1. Reduced the number of units from 517 to 496. 2. Removed access on Edgewood Road to reduce the potential for cut -through traffic into the Park Santiago neighborhood. 3. Reduced the height of the building along the east side from 5 -stories (78 feet) to 2 -stories (25 feet). 4. Revised the architectural style. Staff is recommending additional modifications to the project based on previously constructed and approved multi -family development projects in the City, planning and design principles, the character of the nearby residential neighborhood, and the community's concerns. The proposed changes are listed in the Development Agreement and include: 1. Number of units: Further reduce the number units from 496 to 476 units (81 dwelling units per acre). 2. Unit Mix: Increase number of family units from 20 percent to 30 percent (two- and three- bedroom units). 3. Parking Management: Increase number of spaces or capacity to increase the onsite ratio of onsite parking to an equivalent of 2.00 spaces per unit. Further, a parking management plan shall be submitted that maintains this ratio prior to Certificate of Occupancy and throughout the life of the project. Provisions to meet this standard may include an onsite valet parking service. 4. Design: Incorporate two courtyards into the portion of the project that is located along the north property line adjacent to Santiago Park. The staff recommended changes to the development discussed above will be codified in the Specific Development as follows: 75E-21 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 22 Table 12: Specific Development - Development Standards Development Standard Specific Development Section Y Number of Units Section 3 a Unit Mix Section 3 b Parking Section 10 Design North Building Elevation Section 12 (b)(3) Conclusion Staff supports the conversion of the existing vacant office buildings to residential. If approved, the project will provide additional housing in a prime location that is accessible to retail and employment opportunities with multimodal transportation options. The project provides general fund revenue as well as community benefits for the neighborhood and Santiago Park. The project will also enhance the City's economic and fiscal viability through the increase in property tax values as well as an increase in sales tax generated from the residents. The Planning Commission recommended denial due the increase in traffic resulting from the project, the massing and density of the project, the project's incompatibility with the surrounding community, potential adverse effects of the project on the adjacent Park Santiago neighborhood, the lack of community support for the development, potential long term impacts associated with the proposed development, and concerns with potential parking intrusion on the adjacent neighborhood. 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 The proposed project would convert an office development into a residential development. A fiscal and economic impact analysis was prepared by RSG, Inc. in 2017 analyzing the project, based upon 517 units at the time (Exhibit 10). In brief, RSG anticipates the following fiscal outcomes: • Approximately $33.5 million in revenue over 25 years ($19 million in 2017$) to the City's General Fund (construction period revenues, recurring property tax revenue, utility user tax, residential sales tax and business tax). Finance staff concurs with the estimates in the RSG analysis. • Approximately $10.0 million in expenditures over 25 years ($5.4 million in 2017$) from the City General Fund (public services); which primarily include a per -capita amount for only the variable costs of police and fire (only half of those budgets), as well as $2 per person for parks and recreation. The analysis did not include the impact of the additional wear and tear on the City's infrastructure, such as the increased use of the right of way. 75E-22 EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 23 APPROVED AS TO FUNDS AND ACCOUNTS: Minh Thai Kathryn Dow s, CPA Executive Director Executive Director Planning and Building Agency Finance and Management Services Agency Exhibits: 1. City Council Resolution Denying the Project 2. City Council Resolution adopting the CEQA Findings of Fact, certifying the Final EIR and adopting a Mitigation Monitoring and Reporting Program, and adopting a Statement of Overriding Considerations & Exhibits 3. Ordinance approving the Development Agreement & Exhibit (Development Agreement) 4. Resolution approving the General Plan Amendment & Exhibits (General Plan Land Use Map and Text Amendments) 5. Ordinance Approving the Amendment Application & Exhibits (Zoning Map and Text Amendments) 6. Sunshine Meeting Minutes & Sign In 7. Response to Lozeau Drury LLP 11-26-18 Letter 8. Planning Commission Staff Report 9. Project Parking Analysis 10. Project Economic Analysis 11. Vicinity Map 12. Site Photos 13. Site Plan 14. Floor Plans 15. Building Elevations 16. Renderings 17. Landscape Plan 18. City Council Public Hearing Notice 75E-23 75E-24 LS 2.5.19 RESOLUTION NO. 2019 -XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DENYING A REQUEST TO CERTIFY FINAL ENVIRONMENTAL IMPACT REPORT NO. 2018-01 (SCH #2018021031), AND DENYING A REQUEST FOR APPROVAL OF AMENDMENT APPLICATION NO. 2018-10, DEVELOPMENT AGREEMENT NO. 2018-01, AND GENERAL PLAN AMENDMENT NO. 2018-06 FOR THE PROPOSED MULTI -FAMILY RESIDENTIAL PROJECT LOCATED WITHIN THE CITY OF SANTA ANA AT 2525 NORTH MAIN STREET 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: WHEREAS, Jeremy Ogulnick, representing AC 2525 Main LLC ("Applicant'), is requesting that the City Council certify Final EIR No. 2018-01 and adopt the findings of fact, statement of overriding considerations, and the Mitigation Monitoring and Reporting Program for the proposed project. Further, the applicant is requesting approval of Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018- 10 to allow the construction of a 476 -unit multi -family apartment project at the property located at 2525 North Main Street. WHEREAS, the site contains a two-story, 81,000 square foot office building that has been vacant for several years. The Applicant proposes to redevelop the site with a residential use. WHEREAS, on January 14, 2019, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral, and recommended that the City Council deny the certification of Final EIR No. 2018-01 and deny the findings of fact, statement of overriding considerations, and the Mitigation Monitoring and Reporting Program; and recommended that the Council deny Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018- 10. WHEREAS, on January 14, 2019, a total of 79 members of the public spoke on the matter, with 30 in support of the project, 48 against the project, and one (1) neutral on the project. WHEREAS, the overwhelmingly majority of speakers in opposition of the project resides within the Park Santiago Community. Resolution No. 2019-xx Page 1 of 4 Exhibit 1 75E-25 WHEREAS, the Planning Commission determined that the project has not adequately addressed community concerns from the adjacent residents and residential neighborhood on which the project will have the most immediate and direct contact and impacts associated with the physical design of the proposed development, the significant and unavoidable aesthetics impact and change to the existing environment, the increase in traffic volumes and reduced traffic flow, and the potential parking and traffic intrusion into the adjacent neighborhood. WHEREAS, after deliberating on the matter, the Planning Commission voted to recommend that the City Council deny the Applicant's request to allow the multi -family residential development on the site. WHEREAS, the City Council of the City of Santa Ana agrees with the Planning Commission recommendation of denial and determines that all of the findings required for certifying Final EIR No. 2018-01 and the findings of fact, statement of overriding considerations, and the Mitigation Monitoring and Reporting Program for the proposed project could not be made. Further, the City Council of the City of Santa Ana agrees with the Planning Commission recommendation to deny the project and the determination that all of the findings required for approval of Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 could not be made. The City Council does hereby find and determine that the following finding has been established for the project: 1. That the proposed use will under the circumstances of the particular case, not be a good planning practice and it will be detrimental to the health, safety, and general welfare of persons residing and working in the vicinity in that it will negatively increase traffic volume . and further degrade the traffic flow on the surrounding streets and intersections and would result in additional delays and cut through traffic to the Park Santiago Neighborhood; it will create a significant and unavoidable aesthetic impact to the existing environment and physical surrounding that cannot be mitigated resulting from the massing and the height of the residential and parking structures. The residential units and parking structure ranges from 2 to 8 stories in height. Even with mitigations, the aesthetics of the height and the massing of the structures were found to be incompatible with the adjacent one to two-story single family homes to the east and south of the project site within the Park Santiago neighborhood; and at 81 dwelling units per acre, the proposed project will create a significantly higher residential density and development intensity and is incompatible with the density of the residential developments to the east and south currently developed at 7 dwelling units per acre within the Park Santiago neighborhood. WHEREAS, the City Council, after due notice as required by law, conducted a full and fair public hearing to consider Final EIR No. 2018-01, Resolution No. 2019-xx Page 2 of 4 75E-26 Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 to allow the construction of a 476 -unit multi -family apartment project at the property located at 2525 North Main Street on February 5, 2019, at which time, all interested persons were given full opportunity to be heard and present evidence. Section 2. The City Council of the City of Santa Ana after conducting the public hearing and based upon the finding and determination articulated in Section 1 above, hereby: a. Does not certify Final EIR No. 2018-01 and does not adopt the findings of fact, the statement of overriding considerations, and the Mitigation Monitoring and Reporting Program for the proposed project. b. Denies Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 Appeal No. 2018-02. This decision is based upon the evidence submitted at the abovesaid hearing, which includes, but is not limited to: the Request for Council Action dated February 5, 2019, the Request for Planning Commission Action dated January 14, 2019, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this _ day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: X C— LisaStorck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: ABSTENTIONS: Councilmembers: Miguel A. Pulido Mayor 75E-27 Resolution No. 2019-xx Page 3 of 4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE-RAMIREZ, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on _'2019. Date: Acting Clerk of the Council City of Santa Ana 75E-28 Resolution No. 2019-xx Page 4 of 4 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA (1) ADOPTING ENVIRONMENTAL FINDINGS OF FACT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, (2) CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT (SCH #2018021031), (3) ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS FOR THE PROPOSED PROJECT, (4) ADOPTING THE MITIGATION MONITORING AND REPORTING PROGRAM, AND (5) APPROVING THE PROPOSED MAGNOLIA AT THE PARK MULTI -FAMILY RESIDENTIAL PROJECT LOCATED WITHIN THE CITY OF SANTA ANA AT 2525 NORTH MAIN STREET 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: WHEREAS, AC 2525 Main, LLC ("Applicant") seeks to develop the Magnolia at the Park Multi -Family Residential Project ("proposed Project") a 496 -unit multi -family project on a 5.93- acre site at 2525 North Main Street in Santa Ana, California ("Project Site"); WHEREAS, the proposed Project entails, among other things, (1) demolition of the existing 81,172 square foot vacant two-story office building and 442 -space surface parking lot on the Project Site; (2) redevelopment of the 5.93 -acre site with 930,705 square feet of total development, including 405,290 square feet of residential buildings that would provide 496 for -rent multi -family residential units and a 358,630 square foot central parking/fitness center/club room structure; (3) approval of Development Agreement No. 2018-01 between the City of Santa Ana ("City") and Applicant; (4) approval of General Plan Amendment No. 2018-06, which would change the Project Site's existing land use designation of Professional & Administration Office (PAO) to District Center (DC); and (5) approval of Amendment Application No. 2018-10, which seeks a zone change for the Project Site from Professional (P) to Specific Development No. 93 (SD -93) designation; and WHEREAS, the proposed Project has been submitted and requires review and certification of an Environmental Impact Report (the "EIR") (SCH# 2018021031) (Environmental Impact Report No. 2018-01), and approval of Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10; and WHEREAS, the Project Site is located at the northeast comer of North Main Street and Edgewood Road and the properties immediately adjacent to the site include Santiago Park to the north, single-family residential homes to the south and east and Exhibit 2 75E-29 the Discovery Science Center of Orange County is across Main Street to the west. The Project Site is located on North Main Street, an urban corridor within the City. The Project Site is also located at a main entry point to the Park Santiago Neighborhood, a residential neighborhood predominantly comprised of detached single-family dwellings; and WHEREAS, pursuant to section 21067 of the Public Resources Code, and section 15367 of the State CEQA Guidelines (California Code of Regulations, Title 14, § 15000 et seq.), the City of Santa Ana is the lead agency for the proposed Project; and WHEREAS, in accordance with State CEQA Guidelines section 15063, the City conducted an Initial Study to determine if the Project may have a significant effect on the environment and to evaluate whether an Environmental Impact Report ("EIR") was required; and WHEREAS, after conducting the Initial Study, the City determined that an EIR should be prepared to evaluate the Project's potential to have a significant effect on the environment in the following areas: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Land Use and Planning, Noise, Population and Housing, Public Services, Recreation, Transportation/Traffic, and Utilities; and WHEREAS, based on the Initial Study, the City further determined that impacts to Aesthetics regarding scenic resources including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway; to Agriculture and Forestry Resources regarding farmland; agricultural land, forest land timberland or conversion of; to Biological Resources regarding wetlands, conflicts with a tree preservation policy or ordinance, conflicts with a Habitat Conservation Plan or Natural Community Conservation Plan; to Geology and Soils regarding a known earthquake fault, landslides, or soils incapable of adequately supporting septic tanks or waste water disposal; to Hazards regarding sites listed on a hazardous materials site, an airport land use plan, private airstrip or wildland fires; to Hydrology and Water Quality regarding housing within a 100 -year flood hazard area; to Land Use and Planning regarding conflicts with a Habitat Conservation Plan or Natural Community Conservation Plan; to Mineral Resources regarding loss of a mineral resource to the region or locally; to Noise regarding conflicts with an airport land use plan or private airstrip; Population and Housing regarding displacing existing housing necessitating replacement housing or displacing substantial number of persons necessitating construction of replacement housing; to Transportation/Traffic regarding a change in air traffic patterns; to Utilities and Service Systems regarding federal, state and local solid waste regulations would have no impact or be less than significant and thus need not be analyzed further in the EIR; and WHEREAS, in accordance with State CEQA Guidelines section 15082, on February 12, 2018, the City sent to the Office of Planning and Research and each responsible and trustee agency a Notice of Preparation ("NOP") - which was also published in the Orange County Register, a newspaper of general circulation - stating 75E-30 that an Environmental Impact Report (State Clearinghouse Number #2018021031) would be prepared; and WHEREAS, during the public comment period, copies of the Initial Study were available for review and inspection at City Hall (20 Civic Center Plaza), on the City's website, and at the Santa Ana Public Library (26 Civic Center Plaza); and WHEREAS, pursuant to Public Resources Code section 21083.9 and State CEQA Guidelines sections 15082(c) and 15083, the City held a duly noticed Scoping Meeting on March 1, 2018, to solicit comments on the scope of the environmental review of the proposed Project; and WHEREAS, 163 comment letters were received in response to the NOP; and WHEREAS, a Draft Environmental Impact Report ("Draft EIR") was prepared for the proposed Project, addressing comments received in response to the NOP and evaluating the proposed Project's potentially significant environmental impacts; and WHEREAS, the Draft EIR concluded that the proposed Project would have a significant and unavoidable impact to Aesthetics with the implementation of mitigation measures regarding the existing visual character of the Project Site and its surroundings, as implementation of the proposed Project would result in a significant and unavoidable change in visual scale, height, and setbacks from Santiago Park, Edgewood Road, and North Bush Street; and WHEREAS, the Draft EIR further determined that mitigation measures were required to mitigate impacts to a less than significant level for the following resource areas: Air Quality, Biological Resources, Hazards and Hazardous Materials, Noise, and Tribal Cultural Resources; and WHEREAS, in accordance with State CEQA Guidelines section 15085, a Notice of Completion was prepared and filed with the Office of Planning and Research on August 7, 2018; and WHEREAS, as required by State CEQA Guidelines section 15087(a), the City provided a Notice of Availability of the Draft EIR to the public - and published the Notice of Availability in the Orange County Register - at the same time that the City sent a Notice of Completion to the Office of Planning and Research, on August 7, 2018; and WHEREAS, during the public comment period, copies of the Draft EIR and technical appendices were available for review and inspection at City Hall (20 Civic Center Plaza), on the City's website, and at the Santa Ana Public Library (26 Civic Center Plaza); and WHEREAS, during the public comment period, on August 27, 2018, the Planning Commission held a duly noticed public hearing to receive comments on the Draft Environmental Impact Report pursuant to State CEQA Guidelines section 15087(i); and 75E-31 WHEREAS, in response to a request from Chatten-Brown & Cartens LLP, on behalf of the North Santa Ana Preservation Alliance, the City extended the Draft Environmental Impact Report public review and comment period to October 4, 2018 to allow additional time for public review and input; and WHEREAS, consistent with State CEQA Guidelines section 15087(e), the Draft EIR was circulated for a 59 -day review period, from August 7, 2018 to October 4, 2018; and WHEREAS, during the 59 -day public comment period, the City consulted with and requested comments from all responsible and trustee agencies, other regulatory agencies, and others pursuant to State CEQA Guidelines section 15086; and WHEREAS, the City received 44 written comment letters and six verbal comments on the Draft EIR at the August 27, 2018 public hearing, including a written acknowledgement from the State Clearinghouse that the City has complied with CEQA environmental review requirements; and WHEREAS, pursuant to Public Resources Code section 21092.5, on November 15, 2018, the City provided copies of its responses to commenting public agencies and interested organizations and parties more than ten (10) days prior to the City's consideration of the Final EIR; and WHEREAS, on November 15, 2018, the City released the Final EIR ("Final EIR"), which consists of the Draft EIR, all technical appendices prepared in support of the Draft EIR, all written comment letters received on the Draft EIR, written responses to all written comment letters received and verbal comments received on the Draft EIR, revisions to the Draft EIR and technical appendices, and the Mitigation Monitoring and Reporting Program; and WHEREAS, on November 26, 2018, the Planning Commission continued the public hearing for the project to January 14, 2019 and held a second study session to overview the Project and fifty-eight (58) verbal comments were received (25 in support; 31 in opposition and two neutral) and eleven (11) written comments were received (two in support and nine in opposition); WHEREAS, on January 14, 2019, the Planning Commission conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. At the meeting, seventy-nine (79) members of the public spoke on the item, thirty (30) speakers supported the project, forty-eight (48) opposed it and one speaker was neutral. After hearing all relevant testimony from staff, the public and the City's consultant team, the Planning Commission voted to recommend that the City Council does not certify the EIR, adopt the findings, the statement of overriding considerations and the mitigation monitoring and reporting program and deny the Project; and 75E-32 WHEREAS, on January 25, 2019, the City gave public notice of a City Council public hearing for consideration of Environmental Impact Report No. 2018-01 (State Clearinghouse Number #2018021031) by advertising in the Orange County Register, a newspaper of general circulation, and on January 24, 2019 by mailing to owners of property and residents within 500 feet of the Project; and WHEREAS, on February 5, 2019, the City Council conducted a duly noticed public hearing to consider the EIR, Development Agreement No. 2018-01, General Plan Amendment No. 2018-06, and Amendment Application No. 2018-10 and solicited comments on the EIR. After hearing all relevant testimony from staff, the public and the City's consultant team, the City Council voted to certify the EIR, adopt the findings, the statement of overriding considerations and the mitigation monitoring and reporting program and approve the Project; and WHEREAS, the "EIR" consists of the Final EIR and its attachments and appendices, as well as the Draft EIR and its attachments and appendices (as modified by the Final EIR); and WHEREAS, all potentially significant adverse environmental impacts were sufficiently analyzed in the EIR; and WHEREAS, as contained herein, the City Council has endeavored in good faith to set forth the basis for its decision and recommendations on the Project; and WHEREAS, all of the requirements of the Public Resources Code and the State CEQA Guidelines have been satisfied by the City in connection with the preparation of the EIR, which is sufficiently detailed so that all of the potentially significant environmental effects of the Project have been adequately evaluated; and WHEREAS, all of the findings and conclusions made by the City Council pursuant to this Resolution are based upon the oral and written evidence presented to it as a whole and the entirety of the administrative record for the Project, which are incorporated herein by this reference, and not based solely on the information provided in this Resolution; and WHEREAS, the City Council finds that the Project's significant environmental impacts that cannot be mitigated to a less than significant level even with the incorporation of all feasible mitigation measures, as identified in the EIR, are described in Section 7 of the CEQA Findings of Fact, attached hereto as Exhibit "A'; and WHEREAS, the City Council finds that the Project's environmental impacts that are less than significant with the incorporation of mitigation measures, as identified in the EIR, are described in Section 8 of the Findings of Fact, attached hereto as Exhibit "A"; and WHEREAS, the City Council finds that environmental impacts that are identified in the EIR as less than significant and do not require mitigation are described in Section 9 of the Findings of Fact, attached hereto as Exhibit "A"; and 75E-33 WHEREAS, the cumulative impacts of the Project identified in the EIR are described in Section 9.17 of the Findings of Fact, attached hereto as Exhibit "A"; and WHEREAS, the potential significant and irreversible environmental changes that would result from the proposed Project identified in the EIR and set forth herein, are described in Section 10 of the Findings of Fact, attached hereto as "Exhibit A"; and WHEREAS, the existence of any growth -inducing impacts resulting from the proposed Project identified in the EIR and set forth herein, are described in Section 11 of the Findings of Fact, attached hereto as Exhibit "A"; and WHEREAS, alternatives to the proposed Project that might further reduce the proposed Project's environmental impacts are described in Section 12 of the Findings of Fact, attached hereto as Exhibit "A"; and WHEREAS, prior to taking action, the City Council has heard, been presented with, reviewed and considered all of the information and data in the administrative record, including but not limited to the EIR, and all oral and written evidence presented to it during all meetings and hearings; and WHEREAS, the EIR reflects the independent judgment of the City Council and is deemed adequate for purposes of making decisions on the merits of the Project; and WHEREAS, no comments made in the public hearing conducted by the City Council and no additional information submitted to the City have produced substantial new information requiring recirculation of the EIR or additional environmental review of the Project under Public Resources Code section 21092.1 and State CEQA Guidelines section 15088.5; and WHEREAS, on February 5, 2019 the City Council conducted a duly noticed public hearing on this Resolution, at which time all persons wishing to testify were heard and the Project was fully considered; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and WHEREAS, the Applicant has agreed to and shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or 75E-34 concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS: The City Council hereby finds that it has been presented with the EIR, which it has reviewed and considered, and further finds that the EIR is an accurate and objective statement that has been completed in full compliance with CEQA and the State CEQA Guidelines, and that the EIR reflects the independent judgment and analysis of the City. 2. The City Council declares that no evidence of new significant impacts or any new information of "substantial importance", as defined by State CEQA Guidelines section 15088.5, has been received by the City after circulation of the Draft EIR that would require recirculation of the EIR. NOW THEREFORE, THE CITY COUNCIL HEREBY: 1. Adopts the Findings of Fact, attached hereto and incorporated herein as Exhibit "A." 2. Certifies the EIR based on the entirety of the record of proceedings. 3. Adopts the Statement of Overriding Considerations, attached hereto and incorporated herein as Exhibit "B", after balancing the significant and unavoidable aesthetic impacts of the Project against the benefits of the Project. 4. Adopts the Mitigation Monitoring and Reporting Program attached hereto and incorporated herein as Exhibit "C", consistent with Public Resources Code section 21081.6; make implementation of the Mitigation Measures contained in the Mitigation Monitoring and Reporting Program a condition of approval of the Project; and find that in the event of any inconsistencies between the Mitigation Measures set forth herein and the Mitigation Monitoring and Reporting Program, the Mitigation Monitoring and Reporting Program shall control. 75E-35 5. Directs City staff to cause a Notice of Determination to be filed and posted with the County of Orange Registrar-Recorder/County Clerk and the State Clearinghouse within five (5) working days of the City Council's final Project approval. Section 2. INDEMNIFICATION. The Applicant has agreed to and shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. Section 3. EXECUTION OF RESOLUTION. The Mayor shall sign this Resolution and the Clerk of the Council shall attest and certify to the adoption thereof. ADOPTED this _ day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75E-36 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE-RAMIREZ, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on .2019. Date: Norma Mitre -Ramirez Acting Clerk of the Council City of Santa Ana 75E-37 EXHIBIT A CEQA FINDINGS, FACTS IN SUPPORT OF FINDINGS FINAL EIR FOR THE MAGNOLIA AT THE PARK MULTI -FAMILY RESIDENTIAL PROJECT STATE CLEARINGHOUSE No: 2018021031 City of Santa Ana: DP No. 2017-34 1.0 1.1 Statutory Requirements for Findings The California Environmental Quality Act (CEQA) requires that written findings be made by the lead agency in connection with certification of an Environmental Impact Report (EIR) prior to approval of the Project (Sections 15091 and 15093 of the CEQA Guidelinesl and Section 21081 of the State of California Public Resources Code). CEQA Guidelines Section 15091 states: a) No public agency shall approve or carry out a project for which an EIR has been certified which identifies one or more significant environmental effects of the project unless the public agency makes one or more written findings for each of those significant effects, accompanied by a brief explanation of the rationale for each finding. The possible findings are: 1) Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. 2) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can or should be adopted by such other agency. 3) Specific economic, legal, social, technological or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the final EIR. b) The findings required by subdivision (a) shall be supported by substantial evidence in the record. c) The finding in subdivision (a)(2) shall not be made if the agency making the finding has concurrent jurisdiction with another agency to deal with identified feasible mitigation measures or alternatives. The finding in subdivision (a)(3) shall describe the specific reasons for rejecting identified mitigation measures and project alternatives. d) When making the findings required in subdivision (a)(1), the agency shall also adopt a program for reporting on or monitoring the changes which it has either required in the project or made a condition of approval to avoid or substantially lessen significant environmental effects. These measures must be fully enforceable through permit conditions, agreements, or other measures. i The CEQA Guidelines are codified in Title 14 of the California Code of Regulations, commencing at section 15000. Resolution No. Page 1 of 71 Certification of the Magnolia at the Park EIR 75E-38 75E-39 \ \, .2 a_ __ __ - __ ) « _ \# \{ )]\# a, a \ \ \� /° /® � \f k {{ $\\ _ _ )$] -- -� )! )� - &,f 5E "5 - � ;\tj _k\ \�k) \ƒ{ _ -= 22§ � / {§k ) k ) ik ®■ - _ - ))k \ )§ §) )) k§/ 45 �) -\) )0 E §! ,- _ p| #{\{k k� k15 ƒ/ ƒ_ \ \ ( ]\\ !k\)/%)/m// £k 75E-39 \ EXHIBIT A e) The public agency shall specify the location and custodian of the documents or other materials which constitute the record of the proceedings upon which its decision is based. f) A statement made pursuant to Section 15093 does not substitute for the findings required by this section. CEQA Guidelines Section 15093 provides that: a) CEQA requires the decision-making agency to balance, as applicable, the economic, legal, social, technological or other benefits, including region -wide or statewide environmental benefits of a proposed project, against its unavoidable environmental risks when determining whether to approve the project. If the specific economic, legal, social, technological or other benefits, including region -wide or statewide environmental benefits, or a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered "acceptable." b) When the lead agency approves a project which will result in the occurrence of significant effects which are identified in the final EIR but are not avoided or substantially lessened, the agency shall state in writing the specific reasons to support its action based on the final EIR and/or other information in the record. The statement of overriding considerations shall be supported by substantial evidence in the record. c) If an agency makes a statement of overriding considerations, the statement should be included in the record of the project approval and should be mentioned in the notice of determination. This statement does not substitute for, and shall be in addition to, findings required pursuant to Section 15091. The City of Santa Ana, as lead agency, having received, reviewed and considered the Draft Environmental Impact Report (DEIR) for the Magnolia at the Park Multi -Family Residential Project (Project), SCH No. 2018021031, as well as all other information in the record of proceedings on this matter, hereby adopts the following Findings and Facts in Support of Findings (Findings) and Statement of Overriding Considerations (SOC). These Findings set forth the environmental basis for the discretionary actions to be undertaken by the City of Santa Ana for the development and operation of the Project. This action includes the approval of the DEIR SCH No. 201802103 1. 1.2 Organization/Format of Findings These Findings have been organized into the following sections: • Section 1.0: Introduction, provides the organization and records information for these Findings. • Section 2.0: Project Location, provides a summary of the location of the Project. • Section 3.0: Project Description, provides a summary of the Project, including an overview of the discretionary actions required for Project approval and a statement of the Project objectives. • Section 4.0: Discretionary Actions, provides a list of the discretionary approvals that are required by the Project. • Section 5.0: Statement of Project Objectives, provides the statement of objective sought by the Project. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-40 Page 2 of 71 EXHIBIT A • Section 6.0: Environmental Review and Public Participation provides a description of the CEQA process conducted for the Project. • Section 7.0: Significant Effects that Cannot be Mitigated to a Less than Significant Level, provides the Findings for the impacts that would remain significant and unavoidable after implementation of regulations that reduce impacts and project -specific mitigation measures. • Section 8.0: Effects Determined to be Mitigated to Below a Level of Significance, provides the Findings for impacts that can feasibly be mitigated to a less than significant level through implementation of regulations that reduce impacts, Project Design Features (PDFs), and mitigation measures. • Section 9.0: Effects Determined Not to be Significant, provides the Findings regarding the environmental impacts that were determined to be less than significant as a result of the Initial Study/Notice of Preparation (NOP) and/or analysis within the EIR. • Section 10.0: Significant Irreversible Environmental Change and Energy Use. • Section 11.0: Growth Inducing Effects, provides the Findings regarding the CEQA-required analysis for growth inducement. • Section 12.0: Alteratives, provides Findings regarding project alternatives. 1.3 Record of Proceedings For purposes of CEQA and these Findings, the Record of Proceedings for the Project consists of the following documents and other evidence, at a minimum: • The NOP and all other public notices issued by the City in conjunction with the Project • The DEIR, including all technical studies included in the appendices for the Project . • All written comments submitted by agencies or members of the pubic during the public review comment period on the DEIR • The reports and technical memoranda included or referenced in the Response to Comments • All written and verbal public testimony presented during a noticed public hearing for the proposed Project • The Mitigation Monitoring and Reporting Program • All documents, studies, EIRs or other materials incorporated by reference in the DEIR and FOR • The Resolutions adopted by the City of Santa Ana in connection with the Project and all documents incorporated by reference therein • Matters of common knowledge to the City, including but not limited to federal, state and local laws and regulations • Any documents expressly cited in these Findings • Any other relevant materials required to be in the record of proceedings by Public Resources Code Section 21167.6(e) • The Final EIR for the Project Resolution No. _ Page 3 of 71 Certification of the Magnolia at the Park EIR 75E-41 EXHIBIT A 1.4 Custodian and Location of Records The documents and other material that constitute the record of proceedings on which these findings are based are located at the City of Santa Ana, Planning Division Counter at 20 Civic Center Plaza, M-20 Santa Ana, California, 92701. The custodian for these documents is the City of Santa Ana. Copies of these documents which constitute the record of proceedings are and at all relevant times have been and will be available upon request at the City of Santa Ana. This information is provided in compliance with Public Resources Code Section 21081.6(a)(2) and CEQA Guidelines Section 15091(e). 2.0 PROJECT LOCATION The Project is located at 2525 North (N.) Main Street, in the northern portion of the City of Santa Ana approximately 500 feet east of Interstate (1)-5. The site is located on the northeast corner of N. Main Street and Edgewood Road. Regional access to the Project site is provided by I-5 and the N. Main Street exit; and local access to the Project site is provided by N. Main Street and Edgewood Road. The Project site consists of 6 contiguous parcels that include Assessor Parcel Numbers (APNs): 003-010- 028, 003-010-01, 003-010-03, 003-010-025, 003-010-026, 003-010-030 and is located within the U.S. Geologic Survey (USGS) Orange County 7.5 Minute Series Topographic Quadrangle. 3.0 3.1 Residential Development The Project would redevelop the 5.9 -acre Project site to provide 496 for -rent multi -family residential units. The residences would be provided within approximately 572,075 square feet of residential structures. The development would be 5 stories and be topped with mezzanines reaching approximately 65 -feet 8 -inches in height. The development would tier down to 2 -stories (slightly over 20 -feet in height) on the eastern portion of the site. The residential units would be wrapped around a 358,630 square foot central parking/fitness center/club room structure with a roofline of approximately 90 feet from the ground surface, which is the highest point of the Project. The Project would result in approximately 930,705 square feet of development and a density of 84 dwelling units per acre, and would provide a mix of studio, one -bedroom, two-bedroom, and three-bedroom units, as shown in Table 1. Table 1: Residential Unit Summary Unit Type Number of Units I Square Foota a of Units I Percentalzel Studio 73 590-740 15% 1 Bedroom 307 610-1,090 62% 2 Bedroom 88 910-1,470 18% 3 Bedroom 28 1,360-1,520 6% Total 496 — 1000/ to the nearest percentage. The residential units would be setback a minimum of 40 feet from the cement block wall that forms the eastern Project site boundary and would be separated by 4 courtyards and landscaped areas. The central parking structure would have 9 levels of parking, one of which would be underground; thus, 8 levels of parking would be above ground. The parking structure would provide direct access to the leasing office and walkways to residential units, a bicycle parking/sharing station, and 904 parking spaces, which is an Resolution No. _ Certification of the Magnolia at the Park EIR 75E-42 Page 4 of 71 EXHIBIT A average of 1.8 spaces per residential unit. The parking spaces would include 122 tandem spaces, 25 electric vehicle charging stations, and 21 spaces compliant with the Americans with Disabilities Act (ADA). The parking structure would also provide direct access to the fitness center, club room, and amenity deck located on top of the western portion of the structure. 3.2 Open Space, Recreation, and Other Amenities The Project would provide open space and recreation facilities that includes approximately 34,300 square feet of exterior open space and recreation facilities and 6,960 square feet of indoor recreation facilities that would contain: 5 recreational courtyard areas, a rooftop amenity deck and fitness center on the roof of the parking structure, community room, and a wellness center. In addition, each residential unit includes a private patio or balcony area. The open space, recreation areas, and other amenities are listed in Table 2. Table 2: Summary of Project Open Space / Recreation Amenities 3.3 Walls and Fencing The existing 6 -foot high masonry wall along the eastern portion of the site would be raised to 8 feet in height; and the existing fence along the northern boundary of the site would be replaced with a 6 -foot - high tubular steel fence, which, along with landscaping, would delineate the Project site from the Santiago Park area. In addition, the fire lane entrances would be secured with a decorative tubular steel gate with a knoxbox for emergency access. 3.4 Landscaping and Lighting Landscaped areas would be located throughout the site and additional street trees would be planted along N. Main Street and Edgewood Road. The residential building would be adjacent to landscaped courtyards. Landscaping is anticipated to be about 19 percent of the site, or about 1.14 acres. Many of the existing mature trees that line the eastern and southern Project site boundary would remain; however, trees that are located throughout the remainder of the site, within construction areas, or are in poor or declining health would be removed. The Project would provide new ornamental landscaping throughout the Project site that would include a variety of 24- through 48 -inch box trees, 1 — 5 -gallon shrubs, and ground covers. Additional trees ranging in size from 24- to 48 -inch box trees would be added to the eastern property line to fill in gaps in the mature landscaping to screen views between the Project site and adjacent residential areas. The Project would also install 24- and 36 -inch box trees and tree wells along Edgewood Road and N. Main Street. New plant species used in the landscaping would be drought -tolerant, non-invasive, and compliant with the City of Santa Ana's landscaping requirements. Likewise, the new irrigation installed onsite would meet the City's requirements for water efficiency (Santa Ana Municipal Code Section 41- 1503; Landscape Water Use Standards). Resolution No. _ Certification of the Magnolia at the Park EIR 75E-43 Page 5 of 71 EXHIBIT A New exterior lighting onsite would be provided for security and to accent the landscaping, Project signage, light walkways, and parking areas. The new lighting would be focused on the Project site, shield offsite areas, and would be compliant with the City's lighting regulations (Santa Ana Municipal Code, Section 8-210 and Section 41-611.1). 3.5 Site Access The Project would provide vehicular access via a driveway on N. Main Street that would guide vehicles to the parking structure that provides direct access to the residential units, guest parking, and the leasing office. The Project may also implement a secondary access from either Santiago Park (Option B) or Edgewood Road (Option C). The 3 access options are described below. • Option A: Access on N. Main Street Only. Access to the Project would be provided by one driveway on N. Main Street and would be restricted to right -turn ingress/right-turn egress access only. Option B: Santiago Park-Walkie Way and N. Main Street Project Access. This option would provide access to the Project site from both Santiago Park/Walkie Way and N. Main Street. The signal at Walkie Way would allow for right -turn ingress/right-tum egress and left -turn ingress/left- turn egress and would provide secondary access to the parking structure. The portion of the park that may be used for access Option B is approximately 10,000 square feet. Various portions of Santiago Park were developed with grant funding; therefore, the park must be operated and maintained as parkland. Any changes to the parkland must be reviewed by the National Park Service and conversions require replacement of the land removed from public outdoor recreation with new parkland. Thus, should access Option B be implemented, a 10,000 square foot portion of the Project site would be dedicated to the City for parkland so that a loss of parkland would not occur. • Option C: Edgewood Road and N. Main Street Project Access. This option would provide access to the Project site from the north -leg of Bush Street/Edgewood Road and from a driveway on N. Main Street. The driveway at Edgewood Road would allow for right -tum ingress/right-turn egress and left -tum ingress/left-tum egress. Additionally, separate emergency access would be provided from Edgewood Road by knoxbox-gated entrances and onsite emergency lanes that meet the City's Fire Code requirements. 3.6 Infrastructure The Project would connect to the existing water, sewer, and drainage infrastructure in the N. Main Street and Edgewood Road right-of-ways. • Water Infrastructure: The Project would install new water infrastructure on the Project site that would connect to the existing 16 -inch water pipelines in N. Main Street and Edgewood Road. The new onsite water system would be compliant with the CalGreen Plumbing Code (Title 24) for efficient use of water. • Wastewater Infrastructure: Wastewater from the Project site currently discharges into existing City -owned 6- and 12 -inch sewer lines within Edgewood Road. The Project would install a new onsite sewer system that connects to the existing sewer lines in Edgewood Road. Resolution No. Certification of the Magnolia at the Park EIR 75E-44 Page 6 of 71 EXHIBIT A Drainage Infrastructure: Surface runoff from the site is conveyed within onsite curb and gutters to an existing catch basin in N. Main Street and sheet flows to an existing drain inlet at the south- west corner of the parking lot. In addition, sheet flows on the north side of the building flow to the existing 10 -inch storm water drain that conveys unfiltered runoff to Santiago Creek. The Project would cap this existing 10 -inch storm water drain. It would remain in place but would no longer be used. All of the runoff from the site would be conveyed to infiltrating landscaping areas, catch basins, and storm water drains that would be installed as part of the Project and would be sized to meet the Project's needs. The onsite system would connect to the existing City drain system in N. Main Street and Edgewood Road, which discharges to Santiago Creek. 3.7 Project Design Features The Project has been designed to incorporate the following Project Design Features (PDFs) that would prevent or lessen potentially significant environmental impacts associated with the Project. These PDFs will be implemented in the same manner as mitigation measures. PDF -1: The landscape plan will incorporate the existing mature trees located along the eastern Project site boundary and to the extent feasible protect and preserve the existing mature trees within the 15 -foot setback along the southern boundary within the 15 -foot setback along the southern boundary that were identified as healthy by the Arborist Report. PDF -2: The Project will include at least 25 electric vehicle charging stations. PDF -3: The Project will include installation and maintenance of air filtration systems with efficiencies equal to or exceeding a Minimum Efficiency Reporting Value (MERV) 16 as defined by the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) Standard 52.2 within all buildings. PDF -4: Outdoor trash receptacles will be provided throughout the common areas of the site, including the dog park area, for the tenants to dispose of their refuse in a proper manner. Property maintenance will provide trash and waste material removal, including dog feces disposal bags, to maintain a trash -free property. All wastes shall be collected and properly disposed of off-site. PDF -5: The Project will include safety design features for security, such as low -intensity security lighting, key pads for building access, security cameras, and 24-hour security personnel. 3.8 Construction Activities and Schedule The Project would be developed over an 18 -month period, in one construction phase that includes the following stages: (1) demolition of existing building, pavement, removal of infrastructure and some landscaping; (2) grading and excavation; (3) construction of drainage, utilities, and subgrade infrastructure; (4) building construction; and (5) paving and application of architectural coatings. No units will be leased until construction of the entire Project is completed and occupancy permits have been received from the City. Construction activities would be limited to the hours between 7:00 a.m. and 8:00 p.m., Monday through Saturday and excluding Sundays and federal holidays, which would be consistent with the City's Noise Ordinance (Municipal Code Section 18-314; Special Provisions). However, typical construction activities Resolution No. Certification of the Magnolia at the Park EIR 75E-45 Page 7 of 71 EXHIBIT A would occur Monday through Friday, generally 20 days a month. Initial site preparation would include demolition of the existing building and several areas of asphaltic concrete pavements. Demolition would remove all subsurface remnants, including foundations, floor slabs, and any utilities that will not be reutilized with the new development. It is anticipated that a maximum of 120 construction workers would be onsite at one time, which would occur during the building construction phase. 4.0 DISCRETIONARY ACTIONS Implementation of the Project requires several actions by the City, including: • Environmental Impact Report (SCH No. 2018021031). Certification of the Final EIR (SCH No. 201802103 1) evaluating the environmental impacts resulting from the Project, in accordance with the California Environmental Quality Act of 1970 (CEQA), as amended (Pubic Resources Code Sections 21000 et seq.) and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.). The Final EIR provides additional environmental information to responsible agencies, trustee agencies, and other public agencies that may be required to grant approvals and permits or coordinate with the City as part of Project implementation. • General Plan Land Use Amendment. The Project requires City approval of General Land Use Amendment, which would change the General Plan Land Use designation of the Project area from PAO (Professional & Administration Office) to District Center (DC), which allows residential uses to a maximum density of 90 dwelling units per acre. • Amendment Application for a Zone Change. The Project requires approval of an Amendment Application from the City for a zone change a c from Professional (P) to Specific Development (SD). The SD zone provides site specific development standards. • Development Agreement. To guide development and services as described in the Project Description previously pursuant to a contract between the City of Santa Ana and Project Applicant. 5.0 STATEMENT OF PROJECT OBJECTIVES The following objectives support the project's underlying purpose to develop multi -family residential uses on the project site and assist with meeting the City's housing needs: • Redevelop existing underutilized parcels to implement development of new high-quality housing. • Increase high-quality housing near existing employment centers. • Promote an improved jobs/housing balance by locating attractive new housing in proximity to employment centers. • Provide housing in close proximity to commercial areas, freeways, and transit. • Redevelop existing land uses that would utilize existing infrastructure, including: water, sewer, arterial roadways, transit, and freeways. • Implement capital investment to enhance the City's economic and fiscal viability pursuant to the City of Santa Ana Strategic Plan. • Provide a safe, high-quality, modem residential community with open space and various recreation amenities. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-46 Page 8 of 71 EXHIBIT A 6.0 ENVIRONMENTAL REVIEW AND PUBLIC PARTICIPATION In conformance with CEQA and the CEQA Guidelines, the City conducted an extensive environmental review of the Project. • The City circulated a Notice of Preparation (NOP) and Initial Study for a 30 -day public review period, which commenced on February 12, 2018, and ended on March 13, 2018. The NOP was distributed to all public agencies, trustee agencies, and the State Office of Planning and Research; posted in the OC Register, posted at the Orange County Clerk -Recorder's office and on the City's website; and provided for public review at the Santa Ana Public Library and at the City's Planning Division counter. • Based on the Initial Study and Environmental Check List Form (CEQA Guidelines Appendix G), the City staff determined that an EIR should be prepared for the Project. A scoping meeting was held during the NOP review period to allow public agencies, local residents, and interested persons an opportunity to review the Project and provide input on issues to be addressed in the EIR. The scoping meeting was held on March 1, 2018 from 5:30 to 7:30 p.m. at the First Congressional Church of Santa Ana, located at 2555 Santiago Street. Notice of the scoping meeting was sent to state and local agencies, cities, individuals who expressed interest in the Project and notice of the meeting was also included in the Notice of Preparation. • The scope of the DEIR was determined based on the City's Initial Study, comments received in response to the NOP, and comments received at the scoping meeting conducted by the City. Section 2.4, Areas of Controversy of the DEIR summarizes the issues identified for analysis. • The DEIR was made available for a 45 -day public review period from August 7, 2018 to September 20, 2018. The public review period was extended to 59 -days (an additional 2 weeks to October 4, 2018) in response to a request from the public. The Notice of Completion was sent to all interested persons, agencies, cities and organizations and notice posted at the Orange County Clerk -Recorder's office and in the OC Register. The Notice of Completion was also sent to the State Clearinghouse for distribution to additional public agencies. Copies of the DEIR were made available on the City's website at: http:Hsanta- ana.org/pba/planning/2525mainresidentialdevelopment.asp, and at the following locations: o City of Santa Ana, Planning Division Counter, 20 Civic Center Plaza, M-20, Santa Ana, CA 92701 o City of Santa Ana Public Library, 26 Civic Center Plaza, Santa Ana, CA 92701 • On August 27, 2018, the Planning Commission held a duly noticed public hearing to receive comments on the Draft Environmental Impact Report. Notice of the meeting was posted in the OC Register and mailed to property owner and occupants within 500 feet. 7.0 SIGNIFICANT EFFECTS THAT CANNOT BE NIITIGATED TO A LESS THAN SIGNIFICANT LEVEL The City hereby finds that, despite the incorporation of Mitigation Measures identified in the EIR and in this document, the following environmental impact cannot be fully mitigated to a less than significant level. A Statement of Overriding Considerations is therefore required. The following summary describes the adverse impacts of the Project that would remain significant and unavoidable after implementation of standard regulatory requirements, PDFs, and mitigation measures. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-47 Page 9 of 71 EXHIBIT A 7.1 Aesthetics 7.1.1 Visual Character Threshold: Would the Project substantially degrade the existing visual character or quality of the site and its surroundings? Findings: Significant and Unavoidable. (DEIR, pp. 4.1-16 through 4.1-26.) Facts in Support of Finding: As described in Section 4.1,.4 esthetics, of the DEIR, with implementation of the Project, views of the Project site from the adjacent Santiago Park area would change from setback views of the existing 2 -story office building partially screened by mature landscaping to that of forefront views of the 5 -story residential building, with a landscaped tree buffer directly adjacent to the park. This would result in a significant and unavoidable change in views of the Project site from the park. The difference in scale and height, due to the Project's location adjacent to the park, and limited visual setback buffer with the proposed landscaping, would result in a substantial difference in scale, height, and property setbacks that is considered significant pursuant to the City's criteria related to the visual character of the site in comparison to the park. Thus, the visual change in height, scale, and setbacks from Santiago Park would be significant and unavoidable. (DEIR, pp. 4.1-16 through 4.1-26.) In addition, implementation of the Project would result in a significant and unavoidable change in visual scale, height, and setbacks from Edgewood Road and N. Bush Street. The background views of urban buildings would become forefront views, and the proposed size and scale of the Project would substantially increase the overall visual density of the built environment. The difference in visual scale and height with the proposed structure adjacent to the roadway and limited of visual setback buffer, would be substantial and considered significant pursuant to the City's criteria. Thus, the visual change related to the height, scale, and setback from Edgewood Road and N. Bush Street would be significant. (DEIR, pp. 4.1-21.) The Project includes the following PDF that would reduce the visual impacts of the Project: PDF -1: The landscape plan will incorporate the existing mature trees located along the eastern Project site boundary and to the extent feasible protect and preserve the existing mature trees within the 15 -foot setback along the southern boundary within the 15 -foot setback along the southern boundary that were identified as healthy by the Arborist Report. (DEIR, p. 3-18.) In addition, Mitigation Measure AES -1 require measures be implemented to retain and protect the trees along the eastern and southern Project site boundary and would reduce these impacts. Mitigation Measure AES -1 provides: Mitigation Measure AES -1: Construction plans and specifications shall state that the following measures shall be implemented by the construction contractor to protect the trees along the eastern Project site boundary and to the extent feasible protect and preserve the existing mature trees within the 15 -foot setback along the southern boundary within the 15 -foot setback along the southern boundary that are planned for preservation during construction of the proposed Project pursuant to the 2018 Arborist Report: • If the wall along the eastern boundary of the Project site cannot be heightened in-place and must be replaced, it shall be reconstructed with a precast concrete fence or a wall without a continuous footing. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-48 Page 10 of 71 EXHIBIT A • Before finalizing construction plans, a contractor with an AirSpade or AirKnife shall explore the locations adjacent to the preserved trees to locate large lateral roots. The root locations shall be marked, and a survey provided to update the construction plans to avoid cutting any significant large roots. The cutting of small roots shall be planned for late spring or winter and made with clean cuts. No pruning paint or sealants shall be used. • Any grade changes near the preserved trees or pruning of trees to provide clearances for construction equipment shall be coordinated with a Registered Consulting Arborist before construction begins, and precautions pursuant to the arborist's recommendations shall be taken to mitigate potential tree injuries. • Prior to construction, a one -pound soil sample shall be taken from the top 18 -inches of soil in each area where trees will be preserved. The samples shall be sent to an appropriate laboratory for analysis and soil supplement recommendations. Fertilization of the preserved trees shall be completed pursuant to the laboratory analysis' soil supplement recommendations. • Prior to construction, augur 6 -inch diameter holes about 3 feet deep at a 3 -foot spacing between large roots in the more compacted and crowded spaces. Avoid large visible roots, relocating the holes as needed. Start augur holes at three times the trunk diameter, i.e. 6 -feet from a 24 -inch tree. Back fill with amended soil, based on an agronomic lab's testing and recommendations. • Prior to construction, mulch all exposed soil areas using a topical application of a well -composted, coarse-texture mulch, without manure or bio -solids, e.g. Aguinaga Forest Floor 11/2 to 1 %2" particle size. Apply it 2 -inches deep, but not against the tree trunks. • Deep water before construction and check soil moisture monthly during construction by means of a soil test probe. Slow water with a soaker hose or water spike for 12 hours, or as long as necessary to reach 4 -feet deep. • Rinse tree foliage at the end of each work week, using a strong stream of water from a high- pressure nozzle. • During construction in areas without pavement near the preserved trees, 3 or more inches of coarse mulch or tree chips under 1 -inch plywood for light vehicle parking and steel plates for larger vehicles is required to prevent compaction and protect surface roots. • Protection Barrier: A protection barrier shall be installed around the trees to be preserved. The barrier shall be constructed of durable fencing material, such as chain link fencing. The barrier shall be placed as far from the base of the tree(s) as possible and shall be maintained in good repair throughout the duration of construction, and shall not be removed, relocated, or encroached upon without permission of the Project arborist. o Storage of Materials: There shall be NO storage of materials or supplies of any kind within the area of the protection barriers. Concrete and cement materials, block, stone, sand and soil shall not be placed within the drip -line of the tree. o Fuel Storage: Fuel storage shall NOT be permitted within 150 feet of any tree to be preserved. Refueling, servicing and maintenance of equipment and machinery shall NOT be permitted within 150 feet of the protected trees. o Debris and Waste Materials: Debris and waste from construction or other activities shall NOT be permitted within protected areas. Wash down of concrete or cement handling equipment, in particular, shall NOT be permitted within 150 feet of protected trees. • Any damages or injuries should be reported to the Project arborist as soon as possible. Severed roots shall be pruned cleanly to healthy tissue, using proper pruning tools. Broken branches or limbs shall be pruned according to International Society of Arboriculture Pruning Guidelines and ANSI A-300 Pruning Standards. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-49 Page 11 of 71 EXHIBIT A However, even with implementation of the PDF -1 and Mitigation Measure AES -1, the Project would still result in a substantial difference in scale, height, and property setbacks that is considered significant pursuant to the City's criteria. As a result, impacts related to existing visual character or quality of the site would be significant and unavoidable. (DEIR, pp. 4.1-16 through 4.1-26.) 8.0 FINDINGS REGARDING ENVIRONMENTAL IMPACTS MITIGATED TO A LEVEL OF LESS THAN SIGNIFICANT. The City hereby finds that feasible Mitigation Measures have been identified in the DEIR and this Resolution that will avoid or substantially lessen the following potentially significant environmental impacts to a less than significant level. Compliance with existing laws, codes and statutes, PDFs, and the identification of feasible mitigation measures have reduced potential impacts to a level of less than significant as determined by the City. All of the PDFs and mitigation measures will be included in a Mitigation Monitoring and Reporting Program (MMRP) in order to ensure compliance with all conditions adopted by the City. Where potentially significant impacts can be reduced to less than significant levels through adherence to PDFs or existing regulations that reduce environmental impacts, the EIR and these Findings specify how those impacts were reduced to an acceptable level. The potentially significant impacts, and the Mitigation Measures that will reduce them to a less than significant level, are as follows: 8.1 Air Quality 8.1.1 Exposure of Substantial Pollutant Concentrations to Sensitive Receptors Threshold: Would the Project expose sensitive receptors to substantial pollutant concentrations? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.2-17 through 4.2-18.) Facts in Support of Findings: As detailed in the DEIR, the Project has the potential to exceed the SCAQMD's localized significance thresholds for emissions of PM10 during construction activities. Therefore, SCAQMD Rules 403(4), 1113, and 1186 to reduce particulate matter and Mitigation Measure AQ -1 requiring the construction contractor to use off-road diesel construction equipment that complies with EPA/CARB Tier 3 emissions standards, would be implemented to reduce construction emissions below a level of significance. With implementation of SCAQMD Rules 403(4), 1113, and 1186 and Mitigation Measure AQ -1 that would be confirmed through the City's permitting process for the Project, localized construction emissions of PMio would be below SCAQMD thresholds and reduced to a less than significant level. Mitigation Measure AQ -1: Construction plans and specifications shall state that the construction contractor shall use off-road diesel construction equipment that complies with EPA/CARB Tier 3 emissions standards and shall ensure that all construction equipment be tuned and maintained in accordance with the manufacturer's specifications. With the implementation of the mitigation measure identified above (MM -AQ -1), the Project's impact in Air Quality would be less than significant. (DEIR, pp. 4.2-17 through 4.2-18.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-50 Page 12 of 71 EXHIBIT A 8.2 Biological Resources 8.2.1 Movement of Fish or Wildlife Threshold: Would the Project interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.3-3 through 4.3-4.) Facts in Support of Findings: Section 4.3, Biological Resources, of the DEIR identified that the Project could impede the use of native wildlife nursery sites. The 180 mature ornamental trees on the Project site provide potentially suitable foraging and breeding habitat for nesting migratory birds and raptor species associated with urban areas such as red-tailed hawk, red -shouldered hawk, and Cooper's hawk. The Project includes removal of many of the existing trees on the Project site that could disrupt nesting birds and raptors if vegetation is removed or construction begins during the nesting season (February 1 to August 31). Disruption of migratory nesting birds and raptors is prohibited by the Migratory Bird Treaty Act (MBTA) and California Fish and Game Code. Therefore, Mitigation Measure BIO -1 is included to require a nesting bird survey to be conducted by a qualified biologist within 3 days prior any disturbance of the site during nesting season, including: vegetation removal, disking, demolition activities, and grading. With implementation of Mitigation Measure BIO -1, potential impacts related to nesting birds and raptors would be reduced to a less than significant level. Mitigation Measure BIO -1: Construction plans and specifications shall state that vegetation clearing during nesting season (February 1 through September 15) shall be avoided, if feasible. If avoidance of the nesting season is not feasible, then a qualified biologist shall be required to conduct a nesting bird survey within 3 days prior any disturbance of the site, including disking, demolition activities, and grading. If active nests are identified, the biologist shall establish suitable buffers around nests at an appropriate distance that is a minimum of 250 feet for raptors and 100 feet for non -raptors -The buffer areas shall be avoided until the nests are no longer occupied, and the juvenile birds can survive independently from the nests. With the implementation of the mitigation measure identified above (MM -13I0-1), the Project's impact on Biological Resources would be less than significant. (DEIR, pp. 4.3-3 through 4.3-4.) 8.3 Hazards and Hazardous Materials 8.3.1 Accident Conditions Involving the Release of Hazardous Materials Threshold: Would the Project create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous material into the environment? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.6-7 through 4.6-8.) Facts in Support of Findings: Impacts related to hazards were evaluated in Section 4.6, Hazards and Hazardous Materials, of the DEIR. As described, due to the existence of hazardous materials within on- site soils, ground disturbing activity has the potential to result in the accidental release of hazardous materials into the environment. The contaminated soils would need to be excavated and removed as Resolution No. _ Certification of the Magnolia at the Park EIR 75E-51 Page 13 of 71 EXHIBIT A required by DTSC, California Integrated Waste Management Board, RWQCB, OCFA, and the Orange County Health Care Agency (OCHCA). As a result, Mitigation Measure HAZ-1 has been required to reduce the potential risks related to accidental release and exposure of people and the environment to the contaminated soils. Due to the existence of hazardous materials within on-site soils, Mitigation Measure HAZ-1 would be implemented to reduce the potential risks related to accidental release and exposure of people and the environment to these hazardous materials. Mitigation Measure HAZ-1 requires that a qualified consultant prepare a Soil Management Plan (SMP) to be used by construction workers to remove and dispose of the areas of arsenic impacted soil. Mitigation Measure HAZ-1 requires excavation of contaminated soils be completed pursuant to existing DTSC and RWQCB requirements, soils sampling ensure all contaminated soils are removed, and that a certified hazardous waste hauler remove and transport all arsenic impacted soil and other potentially hazardous materials per California Hazardous Waste Regulations to a landfill permitted by the state to accept hazardous materials. Excavated soil containing hazardous substances would be classified as a hazardous waste if they exhibit the characteristics of ignitability, corrosivity, reactivity, or toxicity (CCR, Title 22, Division 4.5, Chapter 11, Article 3). The SMP would detail hazardous materials excavation and disposal methods and requirements pursuant to the regulation of Title 8 of the California Code of Regulations (CalOSHA) and Department of Toxic Substances Control (DTSC) that regulates the removal, transportation, and disposal of hazardous waste to protect human health and the environment. With implementation of Mitigation Measure Haz-1 impacts related to hazards of the onsite contaminated soils would be less than significant. Mitigation Measure HAZ-1: Prior to issuance of a grading permit, a Soil Management Plan (SMP) shall be prepared by a qualified hazardous materials consultant and shall detail procedures and protocols for excavation and disposal of onsite hazardous materials, including: • A certified hazardous waste hauler shall remove all potentially hazardous soils. Excavation of contaminated soils shall be to the depth of approximately 0.5 feet below the existing ground surface in areas identified as having arsenic impacted soils. In addition, sampling of soil shall be conducted during excavation to ensure that all arsenic impacted soils are removed, and that residential Environmental Screening Levels (ESLs) for residential uses are not exceeded. Excavated materials shall be transported per California Hazardous Waste Regulations to a landfill permitted by the state to accept hazardous materials. • Any subsurface materials exposed during construction activities that appear suspect of contamination, either from visual staining or suspect odors, shall require immediate cessation of excavation activities. Soils suspected of contamination shall be tested for potential contamination. If contamination is found to be present per the California Department of Toxic Substances Control (DTSC) or Regional Water Quality Control Board (RWQCB) ESLs for residential uses, it shall be transported and disposed of per California Hazardous Waste Regulations to an appropriately permitted landfill. • A Health and Safety Plan (HSP) shall be prepared for each contractor that addresses potential safety and health hazards and includes the requirements and procedures for employee protection. The HSP shall also outline proper soil handling procedures and health and safety requirements to minimize worker and public exposure to hazardous materials during construction. • All SMP measures shall be printed on the construction documents, contracts, and Project plans prior to issuance of grading permits. Resolution No. Page 14 of 71 Certification of the Magnolia at the Park EIR 75E-52 EXHIBIT A With the implementation of the mitigation measure identified above (MM-HAZ-1), the Project's potential impacts relating to hazards and hazardous materials would be less than significant. (DEIR, pp. 4.6-7 through 4.6-8.) 8.4 Noise 8.4.1 Noise Levels in Excess of Established Standards Threshold: Would the Project result in exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.8-10 through 4.8-13.) Facts in Support of Findings: The Project would not result in generation of noise levels in excess standards established by the City's Municipal Code. Per Section 18-314 (Special Provisions) of the City's Municipal Code noise sources associated with construction activities are exempt from the established noise standards as long as the activities do not take place between the hours of 8:00 p.m. and 7:00 a.m. on weekdays, including Saturday, or any time on Sunday or a federal holiday. The Project's construction activities would occur pursuant to these regulations. Thus, the Project would be in compliance with the City's construction related noise standards. However, the Project has the potential to result in exposure of persons to noise levels in excess of relevant standards as a result of increased traffic -related noise. As discussed in the DEIR, traffic along the roadways near the Project site would generate noise that could exceed interior noise standards within some of the Project units. Thus, some of the residential units would require upgraded windows and sliding glass doors with increased Sound Transmission Class (STC) ratings to meet the interior noise standards. As described in Section 4.8, Noise, of the DEIR, the residential units along N. Main Street would require upgraded windows and sliding glass doors with minimum STC ratings of between 27 and 30 to meet the interior noise standards. Mitigation Measure NOH would ensure that the appropriate windows and doors are installed, which would reduce impacts to a less than significant level. (DEIR, pp. 4.8-10 through 4.8-13.) Mitigation Measure N0I-1: The Project plans and specifications shall include the following construction requirements to be implemented and verified prior to provision of occupancy permits: • Windows/Glass Doors: Residential units adjacent to N. Main Street (all floors) require upgraded windows and sliding glass doors (all windows/doors on all floors) with minimum STC ratings of 30; and all other buildings require standards windows and sliding glass doors with a minimum STC rating of 27. Exterior Doors (Non -Glass): Exterior doors facing N. Main Street (all floors) require upgraded exterior doors with minimum STC ratings of 30 and shall be well weather-stripped; and all other residential building exterior doors shall be well weather-stripped and have minimum STC ratings of 27. Well -sealed perimeter gaps around the doors are essential to achieve the optimal STC rating. Walls: At any penetrations of exterior walls by pipes, ducts, or conduits, the space between the wall and pipes, ducts, or conduits shall be caulked or filled with mortar to form an airtight seal. Resolution No. Certification of the Magnolia at the Park EIR 75E-53 Page 15 of 71 EXHIBIT A Ventilation: Residential exterior vents shall be oriented away from I-5 and N. Main Street. If such an orientation cannot be avoided, then an acoustical baffle shall be placed in the attic space behind the vents. With the implementation of the mitigation measure identified above (MM-NOI-1), the Project's potential impacts relating to noise levels would be less than significant. (DEIR, pp. 4.8-10 through 4.8-13.) 8.4.2 Groundborne Vibrations Threshold: Would the Project result in exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.8-16 through 4.8-17.) Facts in Support of Findings: Construction activities for of the Project would generate short-term vibration levels that would exceed the distinctly perceptible vibration standard at receiver locations within 50 feet of large bulldozers usage. Therefore, Mitigation Measure NOI-2 is included to prohibit the use of large mobile equipment (greater than 80,000 pounds) and loaded trucks within 50 feet of the residences to the east of the Project site. With implementation of this measure, vibration impacts at the nearby sensitive receptors would be less than significant. Mitigation Measure NOI-2: The Project plans and specifications shall include the following. requirements: • Large loaded trucks and mobile equipment, such as bulldozers (greater than or equal to 80,000 pounds) shall not be used within 50 feet of the eastern boundary of the Project site. Instead, smaller, rubber -tired mobile equipment (less than 80,000 pounds) or equivalent alternative equipment shall be used within this area during Project construction. • All construction equipment, fixed or mobile, shall be equipped with properly operating and maintained mufflers, consistent with manufacturers' standards. The construction contractor shall place all stationary construction equipment so that emitted noise is directed away from the noise sensitive receptors nearest the Project site. • The construction contractor shall locate equipment staging in areas that will create the greatest distance between construction -related noise sources and noise -sensitive receivers nearest the Project site during all construction. With the implementation of the mitigation measure identified above (MM-NOI-2), the Project's potential impacts relating to groundborne vibration and noise levels would be less than significant. (DEIR, pp. 4.8- 16 through 4.8-17.) 8.4.3 Temporary Increase in Ambient Noise Threshold: Would the Project result in a substantial temporary or periodic increase in ambient noise levels in the Project vicinity above levels existing without the Project? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.8-22 through 4.8-24.) The City hereby makes Finding 2 that "changes or alterations have been required in, or incorporated into, Resolution No. _ Certification of the Magnolia at the Park EIR 75E-54 Page 16 of 71 EXHIBIT A the Project that mitigate or avoid the significant effects on the environment." Mitigation Measure N0I-3 has been included to minimize and/or avoid the Project's potential impacts relating to temporary increases in ambient noise levels in the Project vicinity. Facts in Support of Findings: Construction of the Project would generate short-term periodic increases in ambient noise levels at sensitive receptors in the Project vicinity. With implementation of Mitigation Measure NOI-2, noise from operation of large mobile construction equipment (greater than 80,000 pounds) and loaded trucks would be reduced; and Mitigation Measure NOI-3 is included to require installation of a temporary noise barrier that would be a minimum 11 -feet high, constructed of frame - mounted materials such as vinyl acoustic curtains or quilted blankets, and attached to the masonry wall along the eastern Project site boundary or temporary fence posts. In addition, due to the location of existing sensitive receptors, Mitigation Measures NOI-2 and NOI-3 would require a 50 -foot setback for use of large mobile construction equipment and require installation of a temporary noise barrier, which would reduce the temporary and intermittent increase in noise from construction to a less than significant level With implementation of Mitigation Measures NOI-2 andN01-3 temporary and periodic construction noise level increases at receiver locations would be reduced to below the 10 dBA Leq temporary noise level increase threshold. Therefore, with implementation of mitigation, impacts related to periodic temporary increases in noise would be less than significant. To ensure that the Project's potential impacts relating to temporary increases in ambient noise levels are mitigated to a less than significant level, in addition to Mitigation Measure NOI-2, discussed above, the following mitigation measure has been identified: Mitigation Measure N0I-3: The Project plans and specifications shall include the requirement to install a minimum 11 -foot high temporary construction noise barrier along the Project site eastern boundary for the duration of Project construction. The noise control barriers shall have a solid face from top to bottom and shall meet the following height and constructed requirements: • The temporary noise barrier shall provide a minimum transmission loss of 20 dBA (Federal Highway Administration, Noise Barrier Design Handbook). The noise barrier shall be constructed using an acoustical blanket (e.g. vinyl acoustic curtains or quilted blankets) attached to the construction site perimeter fence or temporary fence posts. • The noise barrier shall be maintained, and any damage promptly repaired. Gaps, holes, or weaknesses in the barrier or openings between the barrier and the ground shall be promptly repaired; • The noise control barrier and associated elements shall be completely removed, and the site appropriately restored upon the conclusion of the construction activity. With the implementation of the mitigation measures identified above (MM-NOI-2 and MM-NOI-3), the Project's potential impacts relating to temporary increases in ambient noise levels would be less than significant. (DEIR, pp. 4.8-16 through 4.8-17.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-55 Page 17 of 71 EXHIBIT A 8.5 Tribal Cultural Resources 8.5.1 Impact on Significant Tribal Cultural Resource Threshold: Would the Project cause a substantial adverse change in the significance of a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is a resource determined by the lead agency, in its discretion and supported by substantial evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code section 5024.1? Finding: Less than significant impact with mitigation incorporated. (DEIR, pp. 4.12-4 through 4.12-5.) Facts in Support of Findings: The Project site has been heavily disturbed to substantial depths in various portions of the Project site. The Project involves excavation and no substantial evidence exists that tribal cultural resources are present in the Project site. However, during the SB 18/AB 52 consultation, the Gabrieleiio Band of Mission Indians — Kizh Nation stated that the Project lies within its ancestral tribal territory within a sensitive area. Therefore, to avoid potential adverse effects to unknown tribal cultural resources, Mitigation Measure TCRA has been included to provide for Native American resource sensitivity training and to prescribe activities should any inadvertent discoveries of tribal cultural resources be unearthed by Project construction activities. Additionally, California Health and Safety Code, Section 7050.5 requires that if human remains are discovered at the Project site, disturbance of the site shall halt and remain halted until the coroner has conducted an investigation. If the coroner determines that the remains are those of a Native American, he or she shall contact, by telephone within 24 hours, the Native American Heritage Commission. Therefore, with implementation of Mitigation Measure TCR -1 and the existing regulations, impacts to tribal cultural resources would be less than significant. Mitigation Measure TCR -1: Inadvertent Discoveries. The Project's grading and construction plans and specifications shall state that prior to commencement of any excavation activities, a Native American shall be contacted to conduct a Native American Indian Sensitivity Training for construction personnel. The training session includes a handout and focus on how to identify Native American resources encountered during earthmoving activities and the procedures followed if resources are discovered. In the event that tribal cultural resources are inadvertently discovered during ground -disturbing activities, work must be halted within 50 feet of the fmd until it can be evaluated by a qualified archaeologist in cooperation with a Native American monitor to determine if the potential resource meet the CEQA definition of historical (State CEQA Guidelines 15064.5(a)) and/or unique resource (Public Resources Code 21083.2(g)). Construction activities could continue in other areas. If the find is considered a "resource" the archaeologist, in cooperation with a Native American monitor shall pursue either protection in place or recovery, salvage and treatment of the deposits. Recovery, salvage and treatment protocols shall be developed in accordance with applicable provisions of Public Resource Code Section 21083.2 and State CEQA Guidelines 15064.5 and 15126.4. If unique a tribal cultural resource cannot be preserved in place or left in an undisturbed state, recovery, salvage and treatment shall be required at the Project Applicant's expense. All recovered and salvaged resources shall Resolution No. Certification of the Magnolia at the Park EIR 75E-56 Page 18 of 71 EXHIBIT A be prepared to the point of identification and permanent preservation in an established accredited professional repository. With the implementation of the mitigation measure identified above (Mitigation Measure TCR -1), the Project's potential impacts relating to temporary increases in ambient noise levels would be less than significant. (DEIR, pp. 4.12-4 through 4.12-5.) 9.0 FINDINGS REGARDING LESS THAN SIGNIFICANT IMPACTS NOT REOUHUNG MITIGATION Consistent with Public Resources Code section 21002.1 and section 15128 of the CEQA Guidelines, the EIR focused its analysis on potentially significant impacts, and limited discussion of other impacts for which it can be seen with certainty there is no potential for significant adverse environmental impacts. CEQA Guidelines section 15091 does not require specific findings to address environmental effects that an EIR identifies as "no impact" or a "less than significant" impact. Nevertheless, the City hereby finds—consistent with Chapter 4.0, Environmental Setting and Impact Analysis, of the DEIR and the Initial Study (Appendix A of the DEIR�—that the Project would either have no impact or a less than significant impact to the following resource areas: 9.1 Aesthetics 9.1.1 Scenic Vistas Threshold: Would the Project have a substantial adverse effect on a scenic vista? Finding: Less than significant impact. (DEIR, p. 4.1-9 through 4.1-16.) Facts in Support of Findings: The Project site and surrounding areas are urbanized and do not contain any sensitive scenic vistas. (DEIR, p. 4.1-3, 4.1-9.) Moreover, as described in Section 4.1, Aesthetics of the DEIR, implementation of the Project would change the character of the site to more closely align with the General Plan Scenic Corridors Element designation as a Major City Entry and the Urban Design Element identification of the site as within the Main Street Concourse node. Additionally, it would align with the Scenic Corridors Element designation of Santiago Creek as an Inter -City Corridor. Hence, the Project would result in a substantial change, but this change would not result in an adverse effect to a scenic vista, and impacts related to a scenic vista would be less than significant. 9.1.2 Scenic Resources within State Scenic Highways Threshold: Would the Project substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway and/or local scenic road? Finding: No impact. (Initial Study, pp. 14-15.) Facts in Support of Finding: There are no officially designated state highways or County -designated scenic highways in the vicinity of the proposed Project. (Initial Study, pp. 14-15.) Resolution No. Certification of the Magnolia at the Park EIR 75E-57 Page 19 of 71 EXHIBIT A 9.1.3 Light and Glare Threshold: Would the proposed Project create a new source of substantial light or glare that would adversely affect daytime or nighttime views in the area? Finding: Less than significant impact. (Initial Study, pp. 15-16.) Facts in Support of Finding: All outdoor lighting would be hooded, appropriately angled away from adjacent land uses, and would comply with the Santa Ana Municipal Code, Section 8-210 and Section 41- 611.1 that provides specifications for shielding lighting away from adjacent uses and relate to intensity of security lighting. (Initial Study, p. 15.) Moreover, the Project would be required to comply with the City's lighting regulations and such compliance would be verified during the permitting process. The lighting increase in light that would be generated by the Project would not adversely affect day or nighttime views in the area and would be less than significant. (Initial Study, pp. 15-16.) 9.2 Agriculture and Forest Resources 9.2.1 Farmland Conversion Threshold: Would the Project result in the conversion of Prime Farmland, Unique Farmland, or Farmland of Statewide Importance, as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural land use? Finding: No impact. (DEIR, p. 2-5; Initial Study, p. 18.) Facts in Support of Finding: The Project site is developed for urban uses and located in an area that is completely developed for urban uses. The Project site and vicinity are void of agricultural uses and the Project would not convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program (FMMP) of the California Resources Agency, to non-agricultural use because no important farmland exists within the Project site and the site is designated as Urban and Built -Up land. (Initial Study, p. 18.) 9.2.2 Agricultural Zoning Threshold: Would the Project conflict with existing zoning for agricultural use, or a Williamson Act contract? Finding: No impact. (DEIR, p. 2-5; Initial Study, p. 18.) Facts in Support of Finding: The Project site and vicinity is void of agricultural uses. No agricultural zoning is located in the vicinity of the Project area and no parcels within the Project vicinity have Williamson Act contracts. The Project would not conflict with a Williamson Act contract. The Project site also does not contain any lands that are subject to Williamson Act contracts, either active or in nonrenewal. (Initial Study, p. 18.) 9.2.3 Forestland Zoning Threshold: Would the Project conflict with existing zoning for, or cause rezoning of, forest land, timberland, or timberland zoned Timberland Production? Resolution No. _ Certification of the Magnolia at the Park EIR 75E-58 Page 20 of 71 EXHIBIT A Finding: No impact. (DEIR, p. 2-5; Initial Study, p. 18.) Facts in Support of Finding: The Project would not conflict with existing zoning, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code Section 4526), or timberland zoned Timberland Production (as defined by Government Code Section 51104(g)) because no forest land or timberland exists within the Project site and the Project site is zoned for Professional (P) uses. (Initial Study, p. 18.) 9.2.4 Loss of Forest Land Threshold: Would the Project result in the loss of forest land or conversion of forest land to non - forest use? Finding: No impact. (DEIR, p. 2-5; Initial Study, p. 18.) Facts in Support of Finding: The Project site and vicinity is void of forestland or timberland. (Initial Study, p. 18.) 9.2.5 Conversion Threshold: Would the Project involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland to non-agricultural use or conversion of forest land to non -forest use? Finding: No impact. (DEIR, p. 2-5; Initial Study, p. 18.) Facts in Support of Finding: The Project would not involve other changes in the existing environment which, due to their location or nature, could result in conversion of farmland, to non-agricultural use or conversion forest land to non -forest use because there is no existing farmland or forest land within or adjacent to the Project site. No other changes to the existing environment would occur from implementation of the Project that could result in conversion of farmland to nonagricultural use of forest land to non -forest use. (Initial Study, p. 18.) 9.3 Air Quality 9.3.1 Applicable Air Quality Plans Threshold: Would the Project conflict with or obstruct implementation of the applicable air quality plan? Finding: Less than significant impact. (DEIR, p. 4.2-14.) Facts in Support of Finding: As discussed in the DEIR, Projects that are consistent with the regional population, housing, and employment forecasts identified by the Southern California Association of Governments (SCAG) are considered to be consistent with the AQMP. Here, the Project would not conflict with or obstruct implementation of the SCAQMD's 2016 Air Quality Management Plan (AQMP), which is the applicable air quality plan for the Project, because the Project is consistent with SCAG's population, housing, and employment forecasts. Notably, the 496 new multi -family units resulting from the Project would constitute a 0.6 percent increase in the total number of residential units in the City, and a 2 percent increase in the number of the multi -family residential units (5+ units) within the City. The Project's multi -family units would be within the SCAG projected growth. The housing added by the Resolution No. _ Certification of the Magnolia at the Park EIR 75E-59 Page 21 of 71 EXHIBIT A Project would also help to meet housing demands from projected employment growth in the City while maintaining a healthy vacancy rate. (DEIR, pp. 4.2-14 through 4.2-15.) Moreover, the Santa Ana and City of Orange areas are jobs -rich. The existing jobs -housing ratio is 2.06 in Santa Ana and is projected to be 2.13 in 2040. The Project would reduce the jobs -housing ratio slightly to 2.05; and to 2.11 in 2040, as shown in Section 4.9, Population and Housing, of the DEIR. The balance of jobs and housing and the bicycle and pedestrian infrastructure implemented by the Project would reduce vehicle miles traveled and the related air quality emissions, as employees could easily travel to employment opportunities within the Santa Ana and City of Orange areas. Thus, the Project would support AQMP objectives to reduce trips, promote infill development, and balance jobs and housing, and would not conflict with implementation of the AQMP. (DEIR, p. 4.2-15.) Further still, as discussed in the DEIR, the Project would not exceed any air quality standards. (DEIR, p. 4.2-15.) 9.3.2 Air Quality Standards Threshold: Would the Project violate any air quality standard or contribute substantially to an existing or projected air quality violation? Finding: Less than significant impact. (DEIR, p. 4.2-15 through 4.2-16.) Facts in Support of Finding: The Project would not violate any air quality standard or contribute substantially to an existing or projected air quality violation. As detailed in DEIR Section 4.2, Air Quality, the maximum daily construction and operational emissions would not exceed any of SCAQMD's daily significance thresholds. Thus, the construction and operation of the Project would not result in a violation of an air quality standard or substantially contribute to an existing or projected air quality violation. (DEIR, p. 4.2-15 through 4.2-16.) 9.3.3 Cumulative Increase of Criteria Pollutant Threshold: Would the Project result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in non -attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? Finding: Less than significant impact. (DEIR, p. 4.2-16 through 4.2-17.) Facts in Support of Finding: The Project would not result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in non -attainment under an applicable federal or state ambient air quality standard (DEI?, p. 4.2-16 through 4.2-17.) SCAQMD's cumulative air quality methodology provides that if an individual project results in air emissions of criteria pollutants that exceed the SCAQMD's daily thresholds for project -specific impacts, then the project would also result in a cumulatively considerable net increase of criteria pollutant(s) for which the project region is in non - attainment under an applicable federal or state ambient air quality standard. As shown in the DEIR, implementation of the Project would not exceed SCAQMD's applicable thresholds. Therefore, impacts related to a cumulatively considerable net increase of a criteria pollutant for which the project region is in non -attainment would be less than significant. (DEIR, p. 4.2-16 through 4.2-17.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-60 Page 22 of 71 EXHIBIT A 9.3.4 Objectionable Odors Threshold: Would the Project create objectionable odors affecting a substantial number of people? Finding: Less than significant impact. (DEIR, p. 2-5; Initial Study, p. 22.) Facts in Support of Finding: The Project would not create objectionable odors affecting a substantial number of people. The Project must comply with SCAQMD Rule 402, which seeks to prevent odor nuisances (Initial Study, p. 22.) Moreover, odors resulting from the temporary construction of the Project are not likely to affect a substantial number of people due to the fact that construction activities do not usually emit offensive odors. Additionally, the Project would only involve residential uses, which are not land uses that are typically associated with the generation of objectionable odors such as large commercial or industrial uses. (Initial Study, p. 22.) 9.4 Biological Resources 9.4.1 Candidate, Non -listed Sensitive, or Special -Status Animal and Plant Species Threshold: Would the Project have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? Finding: Less than significant impact. (DEIR, p. 4.3-4.) Facts in Support of Finding: As described in DEIR Section 4.3, Biological Resources, the Project site and adjacent Santiago Park areas consist of developed or ornamentally landscaped areas that do not contain native habitat, special -status habitat, or special -status plants and none are expected to occur due to a lack of suitable habitat. As described by the DEIR, the site could be used by one special -status wildlife species, the western mastiff bat, that has a low potential to roost in the large trees and palms. However, its typical habitat involves conifer and deciduous woodlands, coastal scrub, grasslands, and chaparral, which do not occur on the Project site, within Santiago Park, or in the adjacent areas. Therefore, potential impacts to the western mastiff bat from implementation of the Project would be less than significant. No other candidate, sensitive, or special status species have the potential to occur on or adjacent to the Project site. Therefore, impacts from implementation of the proposed Project would be less than significant. (DEIR, p. 4.3-4.) 9.4.2 Riparian Habitat Threshold: Would the Project have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or the U.S. Fish and Wildlife Service? Finding: No Impact. (DEIR, pp. 4.3-4 through 4.3-5.) Facts in Support of Finding: The Project site and adjacent areas do not contain native habitat or special - status habitat, including riparian habitat, wetlands, or other sensitive natural community. Therefore, the Project would not result in impacts related to these types of biological resources. (DEIR, pp. 4.3-4 through 4.3-5.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-61 Page 23 of 71 EXHIBIT A 9.4.3 Wetlands Threshold: Would the Project have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? Finding: No Impact. (DEIR, p. 2-5; Initial Study, p. 24.) Facts in Support of Finding: Wetlands are defined under the federal Clean Water Act as land that is flooded or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that normally does support, a prevalence of vegetation adapted to life in saturated soils. Wetlands include areas such as swamps, marshes, and bogs. The Project area is developed and does not contain natural wetlands. While Santiago Creek is located approximately 130 feet to the north of the Project site, the creek area is separated from the Project site by a roadway within Santiago Park, and the Project would not extend into the park area. Therefore, the Project would not result in impacts to wetlands. (Initial Study, p. 24.) 9.4.4 Local Policies and Ordinances Protecting Biological Resources Threshold: Would the Project conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? Finding: No Impact. (DEIR, p. 2-5; Initial Study, p. 24) Facts in Support of Finding: The Project would not conflict with any local policies or ordinances protecting biological resources. Trees in the public right-of-way in Santa Ana are protected under Chapter 33, Article VII of the Municipal Code, which regulates the planting, maintenance, and removal of trees in public locations in Santa Ana. The Project would not remove any existing healthy street trees, and the additional street trees installed by the Project would be planted in compliance with the Municipal Code regulations. Moreover, the existing ornamental trees on the Project site are on private property and are not subject to the Municipal Code regulation. Therefore, implementation of the Project would not conflict with local polices or ordinances protecting trees and no impact would occur. (Initial Study, p. 24) 9.4.5 Adopted Habitat Conservation Plans Threshold: Would the Project conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? Finding: No Impact. (DEIR, p. 2-5; Initial Study, p. 25) Facts in Support of Finding: The Project site does not contain any lands that are subject to an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan. Therefore, the Project would not result in impacts to biological habitat plans. Resolution No. Certification of the Magnolia at the Park EIR 75E-62 Page 24 of 71 EXHIBIT A 9.5 Cultural Resources 9.5.1 Historical Resources Threshold: Would the Project cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5 of the CEQA Guidelines? Finding: Less than significant impact. (DEIR, p. 4.4-9 through 4.4-15) Facts in Support of Finding: As described in DEIR Section 4.4, Cultural/Historic Resources, the Project would not impact any historic resources. The DEIR describes the viewsheds of the properties listed on the Santa Ana Register of Historic Properties near the Project site as already significantly affected by urban and modem structures that are taller than the Project's tallest structure, the proposed 8 -level above ground parking structure. As a result, the setting has changed and no longer provides an aesthetic sense of a particular period of history. The Historic Review, referenced in the DEIR, also describes that tall trees throughout Park Santiago screen views toward the Project site, and that many of the Santa Ana Register of Historic Properties in Park Santiago are not within the viewshed of the Project site. Overall, as detailed in the Historic Review referenced in the DEIR, due to the existing built environment, location of the Santa Ana Register of Historic Properties, and the existing viewsheds, the integrity of the historic setting and feeling aspects of properties in Park Santiago would not be reduced by construction of the proposed Project. Accordingly, a reduction in the historic significance of the properties would not occur from implementation of the Project. (DEIR, p. 4.4-9 through 4.4-15) 9.5.2 Archaeological Resources Threshold: Would the Project cause a substantial adverse change in the significance of an archaeological resource pursuant to Section 15064.5 of the CEQA Guidelines? Finding: Less than significant impact. (DEIR, p. 2-5; Initial Study, pp. 26-27.) Facts in Support of Finding: The Project site has been disturbed various times for different uses and developments. This includes excavation to depths for installation and removal of the previous gas station tanks, and septic tanks, and utility lines from previous developments in the southern portion of the site. In addition, the Property Condition Report referenced in the Initial Study describes that the foundation of the existing building in the northern portion of the site is developed on a 4 -inch thick concrete slab on top of 24 -inch diameter, 20 -36 -foot -deep piles. Thus, previous excavation in the area of the existing building reaches 20-36 feet deep, and excavation in other areas of the site were deep enough to provide for utilities, septic tanks, and gasoline tanks. Also, as described in the Geotechnical Engineering Investigation prepared for the site (referenced in the Initial Study), up to 5.5 feet of fill soils were observed in soil borings. Due to the extent and depth of previous ground disturbances throughout the site, the potential for archaeological resources to be on site is low. hi addition, the Project is anticipated to involve grading and excavations to depths of approximately 15 feet below the ground surface, which would not extend below previous excavations into native soils. As a result, potential impacts related to archaeological resources would be less than significant. (Initial Study, pp. 26-27.) 9.5.3 Paleontological Resources or Geologic Feature Threshold: Would the Project directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? Resolution No. Certification of the Magnolia at the Park EIR 75E-63 Page 25 of 71 EXHIBIT A Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 27) Facts in Support of Finding: Soils beneath the subject site are mapped as Quaternary Alluvium deposited by the Santa Ana River and Santiago Creek. Quaternary alluvial materials in Orange County are assigned a low paleontological resource sensitivity due to their relatively recent age. As described above, the Project site has been extensively disturbed to various depths across the site, and the Project will involve grading and excavations to depths of approximately 15 feet below the ground surface, which would not extend below previous excavations into native soils. As a result, potential impacts related to paleontological resources would be less than significant. (Initial Study, p. 27). In addition, the Project site is developed with a building, parking areas, and landscaping, and no unique geologic feature exists on the Project site. 9.5.4 Human Remains Threshold: Would the Project disturb any human remains, including those interred outside of dedicated cemeteries? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 27) Facts in Support of Finding: The Project site has been extensively disturbed, as described above, and has not been previously used as a cemetery. Thus, impacts related to human remains are less than significant. However, in the unanticipated event that human remains are found during Project construction activities, compliance with California Health and Safety Code Section 7050.5 will ensure that human remains will be treated with dignity and as specified by law, which will reduce the impact to a less than significant level. As specified by California Health and Safety Code Section 7050.5, if human remains are found on the Project site, the County Coroner's office shall be immediately notified and no further excavation or disturbance of the discovery or any nearby area reasonably suspected to overlie adjacent remains shall occur until the Coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code 5097.98. If the Coroner recognizes the remains to be Native American, he or she shall contact the Native American Heritage Commission (NAHC) within 24 hours. The NAHC will make a determination as to the Most Likely Descendent. Ultimately, compliance with the existing California Health and Safety Code regulations will ensure impacts related to potential disturbance of human remains are less than significant. (Initial Study, p. 27) 9.6 Geology and Soils 9.6.1.1 Exposure to Potential Risk of Loss, Injury, or Death — Earthquake Threshold: Would the Project expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Finding: No impact. (DEIR, p. 2-6; Initial Study, pp. 29-30) Facts in Support of Finding: Implementation of the Project would have no impact related to the exposure of people or structures to the rupture of a known earthquake fault. There are no Alquist-Priolo fault zones or other faults mapped on or adjacent to the Project site. The closest major active faults are the Elsinore Fault Zone, which is 10 miles northeast of the Project site, and the Newport -Inglewood -Rose Canyon Fault Zone, which is located 10 miles to the southwest. Thus, the Project will not expose people or Resolution No. _ Certification of the Magnolia at the Park EIR 75E-64 Page 26 of 71 EXHIBIT A structures to potential substantial adverse effects from rupture of a known earthquake fault that is delineated on an Alquist-Priolo Earthquake Fault Zoning Map or any other known fault. (Initial Study, pp. 29-30) 9.6.1.2 Exposure to Potential Risk of Loss, Injury, or Death — Seismic Ground Shaking Threshold: Would the Project expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving strong seismic ground shaking? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 30) Facts in Support of Finding: The Project site is located within the seismically active region of Southern California. The principal seismic hazard that could affect the site is ground shaking resulting from an earthquake occurring along several major active or potentially active faults in Southern California. As discussed above, the closest active faults are the Elsinore Fault and the Newport -Inglewood -Rose Canyon Fault Zone that are both located approximately 10 miles from the Project site. Movement along these faults, or other regional faults, could result in seismic ground shaking on the Project site. However, structures built in the City are required to be built in compliance with the California Building Code (CBC [California Code of Regulations, Title 24, Part 2]), as included in the City's Municipal Code as Chapter 8, Article 2, Division 1, which regulates all building and construction Projects within the City and implements a minimum standard for building design and construction that includes specific requirements for seismic safety, excavation, foundations, retaining walls and site demolition. Because the Project must be constructed in compliance with the CBC and the City's Municipal Code, which would be verified through the City's plan check and permitting process, the proposed Project would result in a less than significant impact related to strong seismic ground shaking. 9.6.1.3 Exposure to Potential Risk of Loss, Injury, or Death — Seismic -Related Ground Failure, Including Liquefaction Threshold: Would the Project expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving seismic -related ground failure, including liquefaction? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, pp. 30-31) Facts in Support of Finding: Soil liquefaction is a phenomenon in which saturated, cohesionless soil layers, located within approximately 50 feet of the ground surface, lose strength due to cyclic pore water pressure generation from seismic shaking or other large cyclic loading. During the loss of stress, the soil acquires "mobility" sufficient to permit both horizontal and vertical movements. Soil properties and soil conditions such as type, age, texture, color, and consistency, along with historical depths to ground water are used to identify, characterize, and correlate liquefaction susceptible soils. Soils that are most susceptible to liquefaction are clean, loose, saturated, and uniformly graded fine-grained sands that lie below the groundwater table within approximately 50 feet below ground surface. Lateral spreading is a form of seismic ground failure due to liquefaction in a subsurface layer. The California Geological Survey Seismic Hazard Zones Orange Quadrangle map shows the Project site is within a liquefaction zone. However, exploratory borings at the Project site identified groundwater at approximately 110 feet below the ground surface, and borings on the Project site did not encounter groundwater to the maximum depth of 85 feet that was explored. Likewise, the groundwater wells that are located near the Project site identify Resolution No. _ Certification of the Magnolia at the Park EIR 75E-65 Page 27 of 71 EXHIBIT A groundwater levels at 110 feet below the ground surface and 143 feet below the ground surface. In addition, borings on the Project site in 2017 identified that soils consist of silty fine to medium sands with local layers of fine to coarse sands with gravel size rock and some larger rock fragments, which are not the uniform fine-grained sand that typically liquefies. In addition, the Geotechnical Engineering Investigation (Geo 2017) prepared for the Project site conducted liquefaction analysis and determined that thin layers of onsite soils have the potential for liquefaction; however, these soils are confined by less permeable soils that would prevent the manifestation of liquefaction. Thus, because the groundwater level is far below 50 feet below the ground surface and soils are not uniformly graded fine-grained, the potential for liquefaction and related lateral spreading or ground failure to occur on the Project site is low. In addition, as described above, the proposed Project would be required to be constructed in compliance with the CBC and the City's Municipal Code, as detailed in the Geotechnical Engineering Investigation (Geo 2017) prepared for the Project site, which would be verified through the City's permitting process. (Initial Study, pp. 30-31) For the aforementioned reasons, the Project would result in a less than significant impact related to liquefaction, lateral spreading, and ground failure. (Initial Study, pp. 30-31) 9.6.1.4 Exposure to Potential Risk of Loss, Injury, or Death — Landslides Threshold: Would the Project expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving landslides? Finding: No impact. (DEIR, p. 2-6; Initial Study, p. 31) Facts in Support of Finding: Landslides and other slope failures are secondary seismic effects that are common during or soon after earthquakes. Areas that are most susceptible to earthquake induced landslides are steep slopes underlain by loose, weak soils, and areas on or adjacent to existing landslide deposits. As described above, the Project site is located in a seismically active region subject to strong ground shaking. However, the Project site is not located within or adjacent to an earthquake -induced landslide area. (Initial Study, p. 31.) In addition, the Project site is located in a flat developed urban area that does not contain or is adjacent to large slopes, and the Project would not generate large slopes. Furthermore, as stated in the Geotechnical Engineering Investigation prepared for the Project site, the Project site is not at risk for earthquake induced landslides. For the foregoing reasons, implementation of the Project would not expose people or structures to substantial adverse effects involving landslides, and impacts related to landslides would not occur. (Initial Study, p. 31.) 9.6.2 Soil Erosion Threshold: Would the Project result in substantial soil erosion or the loss of topsoil? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, pp. 31-32.) Facts in Support of Finding: The Project site is largely impervious, as it is generally covered by pavement or the building structure. However, small areas of landscaping exist within the parking area, along the site boundary, and adjacent to the existing building. The Project would redevelop the site for multi -family residential uses, which would include areas of landscaping that would surround the proposed structures and be located along the site boundary, similar to the areas of landscaping that currently exist. The new paved areas and landscaping from the Project would not result in soil erosion or the loss of topsoil. In addition, Section 18-156 of the City of Santa Ana Municipal Code states that all significant Resolution No. Certification of the Magnolia at the Park EIR 75E-66 Page 28 of 71 EXHIBIT A redevelopment within the City, such as the Project, shall be undertaken in accordance with the County Drainage Area Management Plan (DAMP). The DAMP requires construction sites to implement control practices that address erosion and sedimentation (DAMP Section 8.0). Additionally, the Statewide National Pollutant Discharge Elimination System (NPDES) Permit for General Construction Activity requires implementation of a Storm Water Pollution Prevention Plan (SWPPP), by a Qualified SWPPP Developer. The SWPPP is required to be consistent with the County DAMP, address site-specific conditions related to sources of sediment, and implement erosion control and sediment control Best Management Practices to reduce or eliminate sediment during construction. The Project is required to adhere to a City approved SWPPP, which would be verified prior to the issuance of a demolition or grading permit; this will ensure that potential erosion associated with construction activities would constitute a less than significant impact. (Initial Study, pp. 31-32.) 9.6.3 Soil Stability Threshold: Would the Project be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the Project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 32.) Facts in Support of Finding: The Project site does not contain unstable soils or unstable geologic units. As discussed above, the Project site is located in a flat, developed urban area that does not contain, and is not adjacent to, large slopes; moreover, the Project would not generate large slopes. Accordingly, impacts related to landslides would not occur as a result of the Project. Also, as discussed above, the depth to groundwater and the types of soils onsite result in a low potential for liquefaction and related lateral spreading or ground failure. In addition, as further discussed above, the Project would be required to have building foundations and pavement areas and must be constructed in compliance with the CBC and the City's Municipal Code, which requires appropriate back fill, compaction of soils, and foundation design to ensure stable soils. For the aforementioned reasons, the Project would result in a less than significant impact related to unstable soil or geologic units. In addition, the Project is not located on a geological unit or soil that would become unstable as a result of subsidence. Subsidence is a general lowering of the ground surface over a large area that is generally attributed to lowering of the groundwater levels within a groundwater basin. Subsidence or settlement of the ground can occur as a result of earthquake motion in an area where groundwater in a basin is lowered. Because the Project does not involve groundwater pumping, impacts related to subsidence will not occur as a result of the Project. (Initial Study, p. 32.) 9.6.4 Soil Expansion Threshold: Would the Project be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, pp. 32-33.) Facts in Support of Finding: The Project would not be located on expansive soil. Expansive soils contain certain types of clay minerals that shrink or swell as the moisture content changes. As described above, the Project site soils consist of silty fine to medium sands with local layers of fine to coarse sands with gravel size rock and some larger rock fragments, which have a low expansion potential. (Initial Study, p. Resolution No. Certification of the Magnolia at the Park EIR 75E-67 Page 29 of 71 EXHIBIT A 32.) In addition, as noted above, the Project would be required to have building foundations and pavement areas constructed in compliance with the CBC and the City's Municipal Code, which requires appropriate back fill, compaction of soils, and foundation design to ensure stable soils. Thus, the Project's impacts related to expansive soils would be less than significant. (Initial Study, p. 33.) 9.6.5 Septic Tanks Threshold: Would the Project have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? Finding: No impact. (DEIR, p. 2-6; Initial Study, p. 33.) Facts in Support of Finding: The Project site is currently connected to the City's sewer system, and the Project would also connect to existing sewers and would not use septic tanks or alternative wastewater disposal systems. As a result, impacts related to septic tanks or alternative waste water disposal systems would not occur from implementation of the Project. 9.7 Greenhouse Gas Emissions 9.7.1 Greenhouse Gas Emissions Threshold: Would the Project generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? Finding: Less than significant impact. (DEIR, p. 4.5-9 through 4.5-10.) Facts in Support of Finding: The Project would not generate significant amounts of GHG emissions, either directly or indirectly, that would have a significant impact on the environment. As further detailed in the DEIR, construction and operation of the Project would generate greenhouse gas emissions that are below the SCAQMD's threshold for greenhouse gas emissions. (DEIR, pp. 4.5-9 through 4.5-10.) In particular, as detailed in the DEIR, the Project's total net annual GHG emissions would be approximately 4.30 metric tons per year per service population, which would be less than the SCAQMD Tier 4 Option 3 threshold of 4.80 metric tons per year per service population. (DEIR, pp. 4.5-9 through 4.5-10.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. 9.7.2 Conflict with Applicable Plan, Policy, or Regulation Threshold: Would the Project conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gasses? Finding: Less than significant impact. (DEIR, p. 4.5-10 through 4.5-13.) Facts in Support of Finding: As detailed in the DEIR, the Project would not conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases. Indeed, the Project is consistent with the AB 32 Scoping Plan, SB 375, and the Santa Ana Climate Action Plan. Moreover, the Project would comply with state and federal programs that are designed to improve energy efficiency and reduce GHG emissions, including the California Title 24, California Energy Code, and the CALGreen Code. In complying with these measures and standards (including Title 24 standards relating to insulation, use of energy-efficient heating, ventilation and air condition equipment, solar -reflective Resolution No. Certification of the Magnolia at the Park EIR 75E-68 Page 30 of 71 EXHIBIT A roofing materials, energy-efficient indoor and outdoor lighting systems, reclamation of heat rejection from refrigeration equipment to generate hot water, among other things), the Project would be implementing regulations that reduce greenhouse gas emissions. Also, Project Design Feature PDF -2 would provide a minimum of 25 electric vehicle charging stations to promote usage of electric vehicles. For these reasons, and as further detailed in the DEIR, the Project would be consistent with existing plans, policies, and regulations adopted for the purpose of reducing the emissions of greenhouse gases. (DEIR, p. 4.5-10 through 4.5-13.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. 9.8 Hazards and Hazardous Materials 9.8.1 Hazardous Materials Sites Threshold: Would the Project create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 36.) Facts in Support of Finding: Operation of the Project includes activities related to the multi -family residential uses of the Project, which involve use of hazardous materials including solvents, cleaning agents, paints, pesticides, batteries, fertilizers, and aerosol cans. These types of materials are not acutely hazardous and would only be used and stored in limited quantities within the Project area. The normal routine use of these hazardous materials products pursuant to existing regulations set by the U.S. Environmental Protection Agency (USEPA) and the U.S. Department of Labor Occupational Safety and Health Administration (OSHA) that include Subtitle C of the Resource Conservation and Recovery Act (RCRA) (Title 40 of the Code of Federal Regulations Part 261.4) would not result in a significant hazard to people or the environment in the vicinity of the Project. Therefore, the Project would not result in a significant hazard to the public or to the environment through the routine transport, use, or disposal of hazardous waste, and impacts would be less than significant. (Initial Study, p. 36.) 9.8.2 Hazards within One -Quarter Mile of an Existing or Proposed School Threshold: Would the Project emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 36.) Facts in Support of Finding: The closest existing school to the Project site is the Hoover Elementary School, which is located approximately 0.5 miles away from the Project site at 408 East Santa Clara Avenue. Thus, the Project site is not within one-quarter mile of a school and impacts would be less than significant. (DEIR, p. 2-6; Initial Study, p. 36.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. 9.8.3 Site Location Threshold: Would the Project be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? Resolution No. _ Certification of the Magnolia at the Park EIR 75E-69 Page 31 of 71 EXHIBIT A Finding: No impact. (DEIR, p. 2-6; Initial Study, pp. 36-37.) Facts in Support of Finding: Neither the Project site nor any adjacent properties are included on the list of hazardous materials sites compiled pursuant to Government Code section 65962.5. (DEIR, p. 2-6; Initial Study, pp. 36-37.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. 9.8.4 Public Airports Threshold: For a Project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the Project result in a safety hazard for people residing or working in the Project area? Finding: No impact. (DEIR, p. 2-6; Initial Study, p. 37.) Facts in Support of Finding: The Project site is not located within an airport land use plan or within 2 miles of an airport. The closest airport to the Project site is John Wayne Airport, which is located over 6 miles to the south of the Project site. In addition, the Fullerton Municipal Airport is located approximately 9.35 miles to the northwest of the Project site. Therefore, the Project would not result in a safety hazard for people residing or working in the Project area. (Initial Study, p. 37.) 9.8.5 Private Airstrips Threshold: For a Project within the vicinity of a private airstrip, would the Project result in a safety hazard for people residing or working in the Project area? Finding: No impact. (DEIR, p. 2-6; Initial Study, p. 37.) Facts in Support of Finding: The Project site is not located within the vicinity of a private airstrip and would not result in safety hazards related to an airstrip. (Initial Study, p. 37.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. 9.8.6 Emergency Response Plans Threshold: Would the Project impair implementation of or physically interfere with an adopted emergency response plan or an emergency evacuation plan? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 37.) Facts in Support of Finding: The Project would not physically interfere with an adopted emergency response plan or emergency evacuation plan. Direct access to the Project site is, and will continue to be, provided from N. Main Street (to the south) and Edgewood Road (to the east), which are adjacent to the Project site. hi addition, fire lanes are proposed for the northern and western boundaries of the Project site. Construction activities would occur within the Project site and would not restrict access of emergency vehicles to the Project site or adjacent areas. In addition, travel along surrounding roadways would remain open and would not interfere with emergency access in the site vicinity. Moreover, the Project must comply with Section 503 of the California Fire Code (Title 24, California Code of Regulations, Part 9) and the City of Santa Ana Fire Code included as Municipal Code Chapter 14. As such, for the reasons discussed herein and in the Initial Study, the Project would not impair implementation of or physically Resolution No. _ Certification of the Magnolia at the Park EIR 75E-70 Page 32 of 71 EXHIBIT A interfere with an adopted emergency response plan or emergency evacuation plan, and impacts would be less than significant. (Initial Study, p. 37.) 9.8.7 Wildland Fires Threshold: Would the Project expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? Finding: No impact. (DEIR, p. 2-6; Initial Study, p. 38.) Facts in Support of Finding: The Project site is located within an urban developed area and is not located within an identified wildland fire hazard area and is not an area where residences are intermixed with wildlands. For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIF, p. 2-6; Initial Study, p. 38.) 9.9 Hydrology and Water Quality 9.9.1 Water Quality Standards Threshold: Would the Project violate any water quality standards or waste discharge requirements? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 40.) Facts in Support of Finding: Section 18-156 of the City of Santa Ana Municipal Code states that all new development and significant redevelopment within the City shall be undertaken in accordance with the County Drainage Area Management Plan (DAMP). Accordingly, both construction and operational Best Management Practices (BMPs) would be required to be implemented as part of permitting of the Project. Adherence to a City -approved Storm Water Pollution Prevention Plan (SWPPP) and a Water Quality Management Plan (WQMP) that includes Low Impact Development (LID) features, which would be verified prior to the issuance of a demolition or grading permit, would ensure that potential water quality degradation associated with construction and operational activities would be minimized to a level of less than significance. For the foregoing reasons and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would less than significant, and no mitigation is required. (Initial Study, pp. 40-41.) 9.9.2 Groundwater Supplies Threshold: Would the Project substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level? Finding: Less than significant impact. (DEIR, p. 2-7; Initial Study, p. 41.) Resolution No. Certification of the Magnolia at the Park EIR 75E-71 Page 33 of 71 EXHIBIT A Facts in Support of Finding: The Project would not deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or lowering of the local groundwater table level. The Project site does not currently provide for groundwater recharge. Moreover, the Project will not result in a substantial increase in impervious surfaces, and thus groundwater recharge would not be affected. Furthermore, groundwater within the Project region is managed by the Orange County Water District (OCWD). To ensure the Basin is not overdrawn, OCWD monitors water levels and recharges the Basin with local and imported water. Continued management of the groundwater basin by OCWD will ensure that substantial depletion of groundwater supplies would not occur. (Initial Study, p. 41.) For the foregoing reasons and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 41.) 9.9.3 Drainage Pattern Threshold: Would the Project substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner that would result in substantial erosion or siltation on- or off-site? Finding: Less than significant impact. (DEIR, p. 2-7; Initial Study, p. 41.) Facts in Support of Finding: The Project site does not include a stream, river, creek, or other water body, and will not alter the course of any such body of water in a manner that would result in erosion or siltation. The closest body of water is the Santiago Creek, which is located approximately 130 feet to the north of the site within Santiago Park; Santiago Park would not be disturbed by the Project. Moreover, the Project would not substantially alter the drainage pattern onsite. The Project would cap the existing drain to the creek and provide infiltration basins in the northern portion of the Project area. The remainder of the site would have the same type of onsite drainage that currently exists. The Project thus would not substantially alter the existing drainage pattern on the site or in the area. Moreover, as to construction activities that would involve excavation and grading of soils, Section 18-156 of the City of Santa Ana Municipal Code states that all significant redevelopment within the City, such as the Project, shall be undertaken in accordance with the DAMP, which requires construction sites implement control practices that address erosion and sedimentation. Additionally, the Statewide NPDES Permit for General Construction Activity requires implementation of a SWPP that is required to be consistent with the DAMP and implement erosion control and sediment control BMPs to reduce or eliminate erosion during construction. Adherence to a City approved SWPPP, which would be verified prior to the issuance of a demolition or grading permit, would ensure that potential erosion associated with construction activities would be minimized. (Initial Study, pp. 41-42.) For the foregoing reasons and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 41-42.) 9.9.4 Flooding Threshold: Would the Project substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner that would result in flooding on- or off-site? Resolution No. _ Certification of the Magnolia at the Park EIR 75E-72 Page 34 of 71 5'i: RTH".1 Finding: Less than significant impact. (DEIR, p. 2-7; Initial Study, p. 42.) Facts in Support of Finding: The Project site does not include a stream, river, creek, or other water body. The closest water body is the Santiago Creek, which is located approximately 130 feet to the north of the site within Santiago Park, and would not be disturbed by the Project. The Project site is largely impervious, as it is generally covered by pavement or the building structure. Redevelopment of the site would provide for a similar amount of impervious surface; thus, the rate or amount of surface runoff would not substantially increase with implementation of the Project. In addition, the Project includes redevelopment of the existing onsite drainage system to provide infiltration basins, storm drains, and catch basins that would retain and filter runoff prior to discharge into the existing storm drains in N. Main Street and Edgewood Road. Thus, the Project would not substantially alter the existing drainage pattern on the site or in the area, or substantially increase the rate or amount of runoff that could result in flooding. For the foregoing reasons and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 41-42.) 9.9.5 Water Runoff Threshold: Would the Project create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? Finding: Less than significant impact. (DEIR, p. 2-7; Initial Study, pp. 42-43.) Facts in Support of Finding: As discussed above, the Project site is largely impervious, and redevelopment of the site would not substantially increase impervious areas, such that an increase in runoff would occur. In addition, the Project would redevelop the existing onsite storm water drainage system, which would convey runoff from buildings and paved areas to infiltration basins, storm drains, and catch basins that would retain and filter storm water prior to discharge into the existing storm drains in N. Main Street and Edgewood Road. Overall, redevelopment of the Project site would not result in an increase in runoff that would exceed the capacity of the existing City storm drain system. For the foregoing reasons and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 41-42.) 9.9.6 Degradation of Water Quality Threshold: Would the Project otherwise substantially degrade water quality? Finding: Less than significant impact. (DEIR, p. 2-7; Initial Study, pp. 40-43.) Facts in Support of Finding: For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, the Project would not otherwise substantially degrade water quality. (Initial Study, pp. 41-42.) 9.9.7 Flood Hazard Area Zones Threshold: Would the Project place housing within a 100 -year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? Resolution No. Certification of the Magnolia at the Park EIR 75E-73 Page 35 of 71 EXHIBIT A Finding: No impact. (DEIR, p. 2-7; Initial Study, p. 43.) Facts in Support of Finding: The Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRM) for the Project site and vicinity (FEMA FIRM number 06059C0163) shows that the site is shown adjacent to, but not part of, a 100 -year flood zone associated with Santiago Creek (Zone AE21). The Project site is identified on the FEMA map as "Zone V and is not depicted within a 100- or 500- year flood zone. For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 43.) 9.9.8 Structures That Impede or Redirect Flows Threshold: Would the Project place within a 100 -year flood hazard area structures that would impede or redirect flood flows? Finding: No impact. (DEIR, p. 2-7; Initial Study, p. 43.) Facts in Support of Finding: As discussed above, the Project site is not located within a 100 -year flood hazard area, and it will not place any structure within a 100 -year flood hazard area. For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 43.) 9.9.9 Risk of Loss, Injury, or Death as a Result of Flooding Threshold: Would the Project expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? Finding: Less than significant impact. (DEIR, p. 2-7; Initial Study, p. 43.) Facts in Support of Finding: Implementation of the Project would not expose people or structures to a significant risk of loss, injury, or death involving flooding as a result of the failure of a dam. As shown in the General Plan Public Safety Element, Exhibit 4, the Project site is not located within the dam inundation area. Moreover, the site is located 130 -feet up -gradient from Santiago Creek, which is generally dry, unless conveying storm flows. For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 43.) 9.9.10 Inundation by Seiche, Tsunami, or Mudflow Threshold: Would the Project have significant effects relating to inundation by seiche, tsunami, or mudflow? Finding: No impact. (DEIR, p. 2-7; Initial Study, p. 43.) Resolution No. Certification of the Magnolia at the Park EIR 75E-74 Page 36 of 71 EXHIBIT A Facts in Support of Finding: A seiche—a surface wave created when a body of water is shaken by earthquake activity—is not likely to impact the Project area. The Geotechnical Engineering Investigation prepared for the Project site provides that no bodies of water are close enough to the Project site to result in a sieche impact. Therefore, no seiche impacts would occur. (Initial Study, p. 43.) A tsunami is not likely to impact the Project area since the Project area is approximately 11.5 miles from the Pacific Ocean, outside of the Tsunami Hazard Zone identified by the California Emergency Management Agency. Therefore, impacts related to tsunamis would not occur. (Initial Study, p. 43.) A mudflow is a landslide composed of saturated rock debris and soil with a consistency of wet cement. The Project area is flat and not near any hillsides that could be susceptible to mudflow. Thus, no mudflow impacts would occur. (Initial Study, p. 43.) For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 43.) 9.10 Land Use and Planning 9.10.1 Divide a Community Threshold: Would the Project physically divide an established community? Finding: Less than significant impact. (DEIR, p. 2-6; Initial Study, p. 44.) Facts in Support of Finding: The Project site is developed with a vacant two-story office building that was used by the Wells Fargo bank. The site is adjacent to the south and the east by a single-family residential community, the north by a park, and by a museum and motel to the west across N. Main Street. Implementation of the proposed Project would change the site from an office building to multi -family residential uses, which would extend the residential uses in the community. The existing residential community would not be physically divided by the Project. Rather, the Project would be located at the edge of the residential community and would extend the community. In addition, the Project would redevelop only the Project site and would not change roadways or areas outside of the Project site. Thus, the Project would result in less than significant impacts related to physical division of an established community. (Initial Study, p. 44.) For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 44.) 9.10.2 Conflict with Plans Threshold: Would the Project conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the Project adopted for the purpose of avoiding or mitigating an environmental effect? Finding: Less than significant impact. (DEIR, pp. 4.7-16 through 4.7-34.) Facts in Support of Finding: As discussed in Section 4.7, Land Use and Planning, of the DEIR, the Resolution No. Certification of the Magnolia at the Park EIR 75E-75 Page 37 of 71 EXHIBIT A Project would not conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the Project adopted for the purpose of avoiding or mitigating an environmental effect. The Project would be consistent with the SCAG Regional Transportation Plan/Sustainable Communities Strategy. Notably, the Project would implement many of the SCAG policies related to high-density, infill development, improvement of the job/housing balance, and use of green building measures, such as water efficiency and Low Impact Development features. Therefore, implementation of the Project would not result in conflict with SCAG policies, and impacts would not occur. Regarding General Plan designations, the Project would require a General Plan Land Use Amendment to change the land use designation from PAO (Professional & Administration Office) to District Center (DC) to allow for the proposed multi -family uses. The General Plan Land Use Element states that DC designation includes the major activity areas in the City and that District Centers are to be developed with an urban character. The proposed DC designation is consistent with the existing DC land uses to the north of Santiago Park and to the southwest across the I-5 freeway. The General Plan also designates the site as the Main Street Concourse node. The proposed DC land use designation and the Project would implement the Main Street Concourse node designation by providing an architecturally cohesive development with a maximum structure height of 90 feet from the ground surface (height intensive) within a regional activity center. The General Plan identifies that the Project is within the Main Street at I-5 Freeway Gateway (Figure 10 of the Urban Design Element) and provides that gateways are located at the City's entry points to help define boundaries and enhance the City's identity, while reinforcing a sense of place. The proposed DC land use designation, along with the proposed height, architecture, and landscaping of the development Project would provide distinctive features that reinforce the sense of place already provided by the Discovery Cabe and numerous other urban structures along N. Main Street. Thus, the Project would align with the General Plan's intent for the Main Street at 1-5 Freeway Gateway. In addition, although the development under the proposed DC designation would result in a different type and higher intensity of residential units than the adjacent LR -7 designated Park Santiago neighborhood area, the Project provides a transition through wall heights, landscaping, building plan, and an eastern setback, such that the taller multi -family structures, vehicle parking, and circulation are not sited adjacent to single -story single-family residences. Also, designating lands for multi -family residential uses would be more consistent with the adjacent single-family residential uses, than the existing office uses because high density residential land uses adjacent to low density residential land uses have more similar and consistent activities than office building uses adjacent to low density residential. Furthermore, the proposed land use designation change from PAO to DC would not conflict with a policy or plan adopted for the purpose of avoiding or mitigating an environmental effect. The Project would also be consistent with the relevant goals, policies, and objectives of the City's General Plan that avoid or mitigate environmental impacts, and impacts related to conflict with a General Plan policy related to an environmental effect would be less than significant. The Project includes a zone change that would change the existing zoning designation change from P (Professional) to a Specific Development (SD) to implement the proposed multi -family residential project. As required by the Zoning Code, the Project's development plans would be reviewed by the City to ensure consistency with development standards. Furthermore, the SD zoning designation would be consistent Resolution No. _ Certification of the Magnolia at the Park Ent 75E-76 Page 38 of 71 EXHIBIT A with the existing SD zoned areas to the north beyond Santiago Park and to the west across N. Main Street. Therefore, implementation of the Project would not result in an impact related to conflict with a plan or policy adopted for the purpose of avoiding or mitigating an environmental effect. For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, pp. 4.7-16 through 4.7-34.) 9.10.3 Habitat Conservation Plans Threshold: Would the Project conflict with any applicable habitat conservation plan or natural community conservation plan? Finding: No impact. (DEIR, p. 2-6; Initial Study, p. 46.) Facts in Support of Finding: The Project site is developed and located within an urban and developed area. The project site is not subject to an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan. Thus, impacts related to such a plan would not occur from the Project. (Initial Study, p. 46.) For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 46.) 9.11 Mineral Resources 9.11.1 Known and Locally Important Resources Threshold: Would the Project result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? Threshold: Would the Project result in the loss of availability of a locally -important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? Finding: No impact. (DEIR, p. 2-7; Initial Study, p. 47.) Facts in Support of Finding: No active mining operations exist in the City of Santa Ana. The mapping by the California Geological Survey does not indicate that any significant mineral deposits are present within the City. The Project area is developed with urban office uses and has no history of mining. Implementation of the Project would not cause the loss of availability of mineral resources valuable to the region or state. Moreover, the Project site and its surrounding vicinity is not in or near a mining site identified by the City of Santa Ana General Plan. (Initial Study, p. 47.) For the reasons discussed above and the reasons discussed in the DEIR and the Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 47.) Resolution No. Certification of the Magnolia at the Park EIR 75E-77 Page 39 of 71 EXHIBIT A 9.12.0 Noise 9.12.1 Long Term Noise Threshold: Would the Project result in a substantial permanent increase in ambient noise levels in the Project vicinity above levels existing without the Project? Finding: Less than significant impact. (DEIR, p. 4.8.17 through 4.8-22.) Facts in Support of Finding: While the Project's operation would generate some traffic -related noise, such noise would not constitute a substantial permanent increase in ambient noise levels in the Project vicinity above levels existing without the Project. Pursuant to the Noise Impact Analysis (Exhibit H to the DEIR), the Project would generate an increase of less than one dBA CNEL on the study area roadway segments, which is less than the relevant threshold. For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.8.17 through 4.8-22.) 9.12.2 Public Airports Threshold: For a Project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the Project expose people residing or working in the Project area to excessive noise levels? Finding: No Impact. (DEIR, p. 2-7; Initial Study, pp. 49-50.) Facts in Support of Finding: The Project site is not located within an airport land use plan or within 2 miles of an airport. The closest airport to the Project site is John Wayne Airport, which is located over 6 miles to the south of the Project site. In addition, the Fullerton Municipal Airport is located approximately 9.35 miles to the northwest of the airport. Therefore, the Project would not expose people residing or working in the Project area to excessive noise levels related to airports. (Initial Study, pp. 49-50,) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 49-50.) 9.12.3 Private Airstrips Threshold: For a Project within the vicinity of a private airstrip, would the Project expose people residing or working in the Project area to excessive noise levels? Finding: No Impact. (DEIR, p. 2-7; Initial Study, p. 50.) Facts in Support of Finding: The proposed Project site is not located within the vicinity of a private airstrip and would not expose people residing or working in the Project area to excessive noise levels related to an airstrip. (Initial Study, p. 50.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 50.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-78 Page 40 of 71 EXHIBIT A 9.13 Population and Housing 9.13.1 Population Growth Threshold: Would the Project induce substantial population growth in an area, either directly or indirectly? Finding: Less than significant impact. (DEIR, p. 4.9-7 through 4.9-10.) Facts in Support of Finding: As described in Section 4.9, Population and Housing, of the DEIR, the Project would not induce substantial population growth. SCAG anticipates a population increase of 8.4 percent by 2040 or an average annual increase of 0.4 percent throughout the County. The anticipated population that would result from the Project would be 0.28 percent of the City's population, and thus, within the projected population growth. Similarly, SCAG anticipates the number of housing units would increase 6.3 percent or an average annual increase of 0.3 percent through 2040. Thus, the 496 new multi- family units would also be within the SCAG projected growth. Furthermore, the infrastructure improvements needed to serve the Project would be sized to specifically serve the development and excess capacity would not be developed that could generate additional growth. Thus, impacts related to growth would be less than significant. (DEIR, p. 4.9-7 through 4.9-10.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.9-7 through 4.9-10.) 9.13.2 Displacement of Housing Threshold: Would the Project displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? Finding: No impact. (DEIR, p.. 2-7; Initial Study, p. 51.) Facts in Support of Finding: The Project site is currently developed for office uses and is void of any existing residential development. As such, the Project would not displace any existing housing and would not result in the construction of replacement housing elsewhere. For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 51.) 9.13.3 Displacement of Persons Threshold: Would the Project displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? Finding: No impact. (DEIR, p. 2-7; Initial Study, p. 51.) Facts in Support of Finding: The Project is currently developed for office uses and does not include any residential uses. The Project would replace the existing office building with multi -family residential uses. The Project would not displace any residents and would not result in the construction of replacement housing elsewhere. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-79 Page 41 of 71 EXHIBIT A Moreover, the Project's portion of the cumulative increase in residential units is 9.9 percent, and the remainder of the cumulative projects would generate over 90 percent of the cumulative increase. Thus, the Project's contribution to the cumulative growth in housing is limited. Furthermore, the total cumulative housing growth from all of the cumulative projects identified in the DEIR would equal 7.4 percent, which is consistent with SCAG growth estimates that anticipate an 8.4 percent increase. Thus, cumulative impacts related to population and housing would be less than significant. The cumulative addition of housing within the Santa Ana and City of Orange N. Main Street corridor area would have a favorable effect on the jobs -housing balance, which could reduce environmental effects of long commute trips, such as air quality and greenhouse gas emissions. For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 51.) 9.14 Public Services As described in Section 4. 10, Public Services, of the DEIR, the Project would not result in adverse physical impacts associated with the provision of new or physically altered service facilities. 9.14.1 Fire Protection Services Threshold: Would the Project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or a need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for fire protection services? Finding: Less than significant impact. (DEIR, p. 4.10-4 through 4.10-5.) Facts in Support of Finding: The Project site is within 2.5 miles of 4 existing fire stations and the Project would not result in the need to construct a new fire station or expand an existing station. In addition, Chapter 8-46 of the Santa Ana Municipal Code requires a fire facilities fee be paid prior to the issuance of a building permit for construction of buildings exceeding 2 stories in height, such as the Project. The purpose of the fire facilities fee is to improve fire stations in the City and provide revenue for equipment needed to fight fires in buildings over 2 stories in height. The Project would be required to provide funding to assist in improvement of existing fire facilities and provision of needed equipment. Implementation of the Project would not require new or physically altered fire department facilities. (DEIR, p. 4.10-4 through 4.10-5.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.10-4 through 4.10-5.) 9.14.2 Police Services Threshold: Would the Project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or a need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order Resolution No. Certification of the Magnolia at the Park EIR 75E-80 Page 42 of 71 EXHIBIT A to maintain acceptable service ratios, response times or other performance objectives for police protection? Finding: Less than significant impact. (DEIR, p. 4.10-8 through 4.10-9.) Facts in Support of Finding: The Project would result in an incremental increase in demands on law enforcement services but would not be significant when compared to the current demand levels. The residential population of the Project would be approximately 0.27 percent of the City's population and based on the Police Department's 2016 staffing of 1.04 officers per thousand population, the Project would require less than one additional officer. In addition, the Police Department headquarters are 2.5 miles from the Project and within response distance. Furthermore, typical police operations within the Department's Northeast District deploys coverage to be able to respond to calls from services throughout the area. The addition of one officer on patrol would not require the construction or expansion of the City's existing policing facilities. Therefore, the Project would not result in the need for new or physically altered police protection facilities. For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.10-8 through 4.10-9.) 9.14.3 Education Threshold: Would the Project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or a need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for schools? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, p. 54.) Facts in Support of Finding: As described in the Initial Study, the Project is required to pay fees for the provision of school services pursuant to state law AB 2926. This fee would contribute to a fund that would pay for new or expanded buildings, faculty, or equipment. Under state law, payment of school impact fees constitutes mitigation for school facility impacts of projects and such payments are deemed to provide full and complete school facilities mitigation. (Initial Study, p. 54.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 54.) 9.14.4 Parks Threshold: Would the Project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or a need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for parks? Finding: Less than significant impact. (DEIR, p. 4.10-12 through 4.10-13.) Facts in Support of Finding: As described in Section 3.0, Project Description, the Project includes 34,300 square feet of onsite exterior open space and recreation facilities that includes 5 recreation courtyard areas that total 22,900 square feet and an 11,400 -square foot amenity deck on the roof of the Resolution No. _ Certification of the Magnolia at the Park EIR 75E-81 Page 43 of 71 EXHIBIT A parking structure. In addition, interior recreation facilities include a 5,397 -square foot fitness center and a 1,566 square foot wellness pavilion. These onsite amenities are anticipated to meet many of the park and recreation needs of Project residents. The new residential population that would be generated from the Project is also anticipated to utilize existing off-site park and recreation facilities. There is currently 93.8 acres of Santa Ana parkland within 3 -miles of the Project site. Based on the existing amount of park and recreation facilities in the vicinity of the Project site, the recreation facilities that would be provided as part of the Project, and the number of residents at full capacity of the Project, the Project is not anticipated to require the provision of new or physically altered park facilities in order to maintain acceptable service ratios. In addition, the Santa Ana Municipal Code, Section 35-108 requires that residential development fees be paid for the acquisition, construction, and renovation of park and recreation facilities to preserve an appropriate balance between the demand by residents for use of park and recreational facilities and the availability of such facilities. Thus, by payment of the required park fees, the Project would provide funding to offset any increased usage at other park and recreation facilities. Overall, the Project would not result in substantial physical deterioration of park and recreation facilities. (DEIR, p. 4.10-12 through 4.10-13.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.10-12 through 4.10-13.) 9.14.5 Existing Recreational Facilities Threshold: Would the Project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? Finding: Less than significant impact. (DEIR, p. 4.10-13 through 4.10-14.) Facts in Support of Finding: The Project would provide onsite open space and recreational facilities for residents, which is anticipated to reduce the Project's impact on off-site recreational facilities. Moreover, based on the existing amount of park and recreational facilities in the Project site's vicinity, the recreational facilities that would be provided as part of the Project, and the anticipated number of residents at the Project, the Project is not anticipated to increase the use of existing parks and recreational facilities such that substantial physical deterioration of the facility would be accelerated. In addition, the Santa Ana Municipal Code, Section 35-108 requires that residential development fees be paid for the acquisition, construction, and renovation of park and recreation facilities to preserve an appropriate balance between the demand by residents for use of park and recreational facilities and the availability of such facilities. Thus, by payment of the required park fees, the Project would provide funding to offset any increased usage at other park and recreation facilities. Overall, the Project would not result in substantial physical deterioration of park and recreation facilities For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.10-13 through 4.10-14.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-82 Page 44 of 71 EXHIBIT A 9.14.6 New Recreational Facilities Threshold: Does the Project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? Finding: Less than significant impact. (DEIR, p. 4.10-14.) Facts in Support of Finding: The Project includes recreational facilities that would be constructed and operated as part of the proposed Project. In addition, access Option B includes repaving the Walkie Way entrance to Santiago Park and the addition of landscaping that includes trees and ground cover in the park and Project site entrance. The impacts of development of the recreational amenities and access options are considered part of the impacts of the Project as a while and are analyzed throughout the various sections of the DEIR. Moreover, the Project would not require the construction or expansion of other recreational facilities that might have an adverse physical effect on the environment. For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.10-14) 9.14.7 Other Public Facilities Threshold: Would the Project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or a need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for other public facilities? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, pp. 54-55.) Facts in Support of Finding: As described in the Initial Study, other public facilities include libraries. The City of Santa Ana Public Library includes two branches within 5 miles of the site. Library service needs are changing with increasing resources being available online and the availability of high-speed internet services and the new residences on the Project site do not necessarily result in an incremental need for library facilities. A majority of the residential units would be equipped with internet access, which provides access to many of the same resources provided by the library and would limit the increased need for library services and resources. (Initial Study, pp. 54-55.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 54-55.) 9.15 Transportation and Traffic 9.15.1 Conflict with Applicable Circulation Plan or with Applicable Congestion Management Program Threshold: Would the Project conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non -motorized travel and relevant components of the circulation Resolution No. Certification of the Magnolia at the Park EIR 75E-83 Page 45 of 71 W:cu:lrd"TA system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? Threshold: Would the Project conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? Finding: Less than significant impact. (DEIR, p. 4.11-12 through 4.11-32.) Facts in Support of Finding: The Project would not conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, including the Orange County Congestion Management Program, Caltrans Measures of Effectiveness, City of Santa Ana General Plan Circulation Element, and the City of Orange General Plan Circulation Element. Based on the thresholds identified in these plans, the Project would result in a less than significant impact, as further explained in the DEIR. Notably, the vehicular trips that would be generated by the Project would not cause an exceedance of any traffic level of service threshold at any intersection or roadway segment. (DEIR, p. 4.11-12 through 4.11-32.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.11-12 through 4.11-32.) 9.15.2 Air Traffic Patterns Threshold: Would the Project result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? Finding: No impact. (DEIR, p. 2-8, Initial Study, p. 58.) Facts in Support of Finding: The Project does not propose any uses that would affect air traffic patterns or air traffic levels. No portion of the Project would change air traffic patterns by extending into airspace. The closest operating airport is over 6 miles south of the Project site. The Project would not result in a change in air traffic patterns. (DEIR, p. 2-8, Initial Study, p. 58.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 2-8, Initial Study, p. 58.) 9.15.3 Design Feature Hazards Threshold: Would the Project substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? Finding: Less than significant impact. (DEIR, pp. 4.11-33.) Facts in Support of Finding: The Project would not result in hazards related to a design feature or incompatible use. The Project driveways include direct access to the parking structure, and access from N. Main Street would be restricted to right -tum ingress/right-tum egress to provide for safe and effective circulation. As noted in the Traffic Impact Analysis referenced in the DEIR, motorists entering and exiting the Project site would be able to do so comfortably, safely, and without undue congestion. Moreover, and as noted by the Traffic Impact Analysis, the neighborhood intersections and roadway have adequate capacity to support the Project. (DEIF, pp. 4.11-33.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-84 Page 46 of 71 EXHIBIT A For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, pp. 4.11-33.) 9.15.4 Emergency Access Threshold: Would the Project result in inadequate emergency access? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, pp. 58-59.) Facts in Support of Finding: The Project would not result in inadequate emergency access. Direct access to the Project site is, and will continue to be, provided from N. Main Street and Edgewood Road, which are adjacent to the Project site. In addition, fire lanes for emergency access are proposed for the northern and western boundaries of the Project site. Construction activities would occur within the Project site and would not restrict access of emergency vehicles to the Project site or adjacent areas. In addition, travel along surrounding roadways would remain open and would not interfere with emergency access in the site vicinity. Moreover, the Project is required to design and construct internal access to conform to OCFA standards to ensure adequate emergency access pursuant to the requirements in Section 503 of the California Fire Code (Title 24, California Code of Regulations, Part 9) and the City of Santa Ana Fire Code included as Municipal Code Chapter 14. (Initial Study, pp. 58-59.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 58-59.) 9.15.5 Alternative Transportation Threshold: Would the Project conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, pp. 58-59.) Facts in Support of Finding: The Project and would not conflict with adopted policies, plans or programs supporting public transit, bicycle, pedestrian or other alternative transportation systems. Notably, the Project would not conflict with existing bus routes or sidewalks, and it would implement new onsite sidewalks to connect to offsite sidewalks and onsite bicycle facilities. (Initial Study, p. 59.) For the reasons discussed above and the reasons discussed in the DEIR and Initial Study, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 59.) 9.16.1 Utilities and Service Systems 9.16.1 Wastewater Treatment Requirements Threshold: Would the Project exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, pp. 63-64.) Resolution No. Certification of the Magnolia at the Park EIR 75E-85 Page 47 of 71 EXHIBIT A Facts in Support of Finding: The multi -family residential land uses proposed by the Project are not anticipated to discharge wastewater that contains harmful levels of toxins that are regulated by the Regional Water Quality Control Board (RWQCB), and all effluent would comply with the wastewater treatment standards of the RWQCB. (Initial Study, pp. 63-64.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, pp. 63-64.) 9.16.2 New Infrastructure and Adequate Capacity Threshold: Would the Project result in the construction of new water or wastewater treatment facilities, or expansion of existing facilities, the construction of which could cause significant environmental effects? Finding: Less than significant impact. (DEIR, p. 4.13-6 through 4.13-7.) Facts in Support of Finding: The Project would not result in the construction of new water or wastewater treatment facilities, or expansion of existing facilities, the construction of which could cause significant environmental effects. As discussed in Section 4.13, Utilities and Service Systems, of the DEIR, the Project would receive water supplies through the existing 16 -inch water lines located within the N. Main Street and Edgewood Road rights-of-way that have the capacity to provide the increased water supplies needed to serve the Project; no extensions or expansions to the water pipelines that convey water to the Project site would be required. Redevelopment of the existing onsite water distribution lines would only serve the Project and would not provide water to any off-site areas. (DEIR, p. 4.13-6 through 4.13-7.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.13-6 through 4.13-7.) 9.16.3 Storm Water Drainage Requirements Threshold: Would the Project result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, p. 64.) Facts in Support of Finding: The Project site is largely impervious, as it is generally covered by pavement or the building structure, and small areas of landscaping surround the development. The Project would redevelop the site for multi -family residential uses, which would include areas of landscaping that would surround the proposed structures and be located along the site boundary, similar to the areas of landscaping that currently exist. Redevelopment of the site would provide for a similar amount of impervious surface; thus, the rate or amount of surface runoff would not substantially increase with implementation of the Project. In addition, the Project includes redevelopment of the existing onsite drainage system that would accommodate runoff with infiltration basins, storm drains, and catch basins that would retain and filter runoff prior to discharge into the existing storm drains in N. Main Street and Edgewood Road. Thus, the Project would not increase the rate or amount of runoff that could result in the need for new or expanded offsite drainage facilities. (Initial Study, p. 64.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 64.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-86 Page 48 of 71 EXHIBIT A 9.16.4 Water Supply Threshold: Would the Project have sufficient water supplies available to serve the Project from existing entitlements and resources, or are new or expanded entitlements needed? Finding: Less than significant impact. (DEIR, p. 4.13-7 through 4.13-8.) Facts in Support of Finding: The City's Urban Water Management Plan (UWMP) anticipates a supply and demand increase of 8.2 percent (3,028 acre feet per year) relating to water. The Project would result in an increase in demand for water supplies that is between just 2.7 and 4.2 percent of the UWMP's anticipated increase. Accordingly, the City would have water supplies available to serve the Project from existing entitlements. (DEIR, p. 4.13-7 through 4.13-8.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.13-7 through 4.13-8.) 9.16.5 Wastewater Treatment Capacity Threshold: Would the Project result in a determination by the wastewater treatment provider, which serves or may serve the Project, that it has adequate capacity to serve the Project's projected demand in addition to the provider's existing commitments? Finding: Less than significant impact. (DEIR, p. 4.13-11.) Facts in Support of Finding: Based on results of the sewer flow monitoring and the City's Design Criteria wastewater generation rates, the Sewer Study identified that the existing sewer lines that serve the Project site would be able to adequately handle the additional wastewater flows from the Project. Additionally, the existing wastewater treatment facilities have adequate capacity to accommodate the increase in wastewater flow from full occupancy of the Project. As a result, implementation of the Project would not result in inadequate capacity of the wastewater treatment plant to serve the Project's demand in addition to existing service commitments. (DEIR, p. 4.13-11.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, p. 4.13-11.) 9.16.6 Solid Waste Facilities Threshold: Would the Project be served by a landfill with insufficient permitted capacity to accommodate the Project's solid waste disposal needs? Finding: Less than significant impact. (DEIR, p. 2-8; Initial Study, p. 65.) Facts in Support of Finding: The existing landfills that serve the project region have sufficient capacity to accommodate the Project's solid waste needs. (Initial Study, p. 65.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 65.) For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (Initial Study, p. 65.) Resolution No. Certification of the Magnolia at the Park EIR 75E-87 Page 49 of 71 EXHIBIT A 9.16 Energy Resources As discussed in Section 4.14, Energy, of the DEIR, the Project would not result in an increase in overall or per capita energy consumption, or in a wasteful or unnecessary consumption of energy, or require or result in the construction of new sources of energy supplies or additional energy infrastructure capacity, the construction of which could cause significant environmental effects, or conflict with applicable energy efficiency policies or standards. The Project would be developed pursuant to the California Green Building Standards Code (24 California Code of Regulations [CCR] Part 11 [CALGreen Code]), which would provide for sustainable construction and operational practices, including energy efficiency. (DEIR, pp. 4.14-5 through 4.14-7.) The City's administration of the Title 24 requirements and the City's Climate Action Plan includes review of design components and energy conservation measures ensures that all requirements are met. Typical Title 24 measures include insulation; use of energy-efficient heating, ventilation and air conditioning equipment (HVAC); solar -reflective roofing materials; energy-efficient indoor and outdoor lighting systems; reclamation of heat rejection from refrigeration equipment to generate hot water; and incorporation of skylights, etc. In complying with the Title 24 standards, impacts to peak energy usage periods would be minimized, and impacts on statewide and regional energy needs would be reduced. In addition, the Project would represent an urban infill development because it would occur on a currently developed site, and would be located near existing off-site employment, commercial, residential, and retail destinations and in proximity to existing public bus stops and freeways, which would result in reduced vehicle trips and Vehicle Miles Traveled (VMT) in comparison to a project of similar size and land without close access to employment, service, and retail, destinations; in addition to public transit and freeways. The land use characteristics of the Project are consistent with the California Air Pollution Control Officers Association (CAPCOA) guidance related to a reduction of vehicle trip distances that would achieve a reduction in associated transportation -related fuel demand. Also, the Project site is within an area where existing infrastructure would provide for efficient delivery of electricity and natural gas to the Project and the Project would not inhibit the development of other alternative energy sources. For the reasons discussed above and the reasons discussed in the DEIR, impacts associated with this issue would be less than significant, and no mitigation is required. (DEIR, pp. 4.14-5 through 4.14-7.) 9.17 Findings Regarding Cumulative Environmental Impacts Consistent with CEQA's requirements, the EIR for the Project includes an analysis of cumulative impacts. As discussed throughout Chapter 4.0, Environmental Setting and Impact Analysis, of the DEIR, the DEIR's cumulative evaluation focuses on whether the impacts of the Project are cumulatively considerable within the context of impacts caused by other past, present, and reasonably foreseeable future projects. As described, different types of cumulative impacts occur for different environmental resources that affect different geographic areas. The geographic scope of the cumulative air quality analysis, where cumulative impacts occur over a large area, is different from the geographic scope considered for cumulative analysis of aesthetic resources, for which cumulative impacts are limited to specific viewsheds. Thus, in assessing aesthetic resources impacts, only development within and immediately adjacent to the Project area that would contribute to a cumulative visual effect is analyzed, whereas cumulative traffic impacts are based upon all development within the traffic study area of roadways and intersections. Therefore, the DEIR describes the cumulative geographic scope, and the potential cumulative impacts Resolution No. _ Certification of the Magnolia at the Park EIR 75E-88 Page 50 of 71 EXHIBIT A included in the geographic scope. As detailed in Section 4.0, Environmental Setting and Impact Analysis, of the DEIR, the cumulative evaluation in the DEIR determined that the cumulatively considerable impacts from implementation of the Project would be less than significant with implementation of the PDFs and mitigation measures that would reduce the potential of project level impacts to become cumulatively significant. Overall, cumulative impacts from implementation of the Project would be less than significant. (DEIR, p. 4.14-7 through 4.14-8.) Specifically, the City hereby finds as follows: 9.17.1 Aesthetics The closest cumulative project is the 2700 North Main Street residential development that is located 0.2 miles north of the Project site and is visible from the site because it is currently developed with an 11 - story office building. This related project involves development of multi -family residences on the site, which would be similar to the character to the proposed Project. The two projects would provide similar multi -family development and would not combine to result in cumulatively considerable impacts. The other cumulative projects are similar to the proposed Project, providing multi -family residential uses that would be consistent with the existing urban, developed character of the viewshed area. As a result, cumulative impacts related to scenic views and visual character and site quality would be less than significant. Cumulative impacts related to shade and shadow would occur when development projects are sufficiently close that shadows from individual buildings combine to create areas of consecutive shading of shadow - sensitive areas. The DEIR details that shadows of the Project do not combine with shadows of other projects to create consecutive shading of any shadow -sensitive areas. Thus, the shading from the Project would not cumulatively combine with other projects, and cumulative impacts related to shade and shadow would be less than cumulatively significant. For these reasons detailed in the DEIR, the Project's cumulative aesthetic effects would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.1-26 through 4.1-27.) 9.17.2 Air Quality SCAQMD's cumulative air quality methodology provides that if an individual project results in air emissions of criteria pollutants that exceed the SCAQMD's daily thresholds for project -specific impacts, then the project would also result in a cumulatively considerable net increase of criteria pollutant(s). As shown in the DEIR, implementation of the Project would not exceed SCAQMD's applicable thresholds. Therefore, impacts related to a cumulatively considerable net increase of a criteria pollutant for which the Project region is in non -attainment would not be cumulatively considerable and would be less than significant. For these reasons, also discussed previously in Section 9.3.3 of these Findings, and in Section 4.2, Air Quality, of the DEIR, the Project's cumulative effects on air quality would not be cumulatively considerable. (DEIR, pp. 4.2-7.) Resolution No. Certification of the Magnolia at the Park EIR 75E-89 Page 51 of 71 EXHIBIT A 9.17.3 Biological Resources The Project site is developed and located within an urban area of the City. The site provides limited areas for natural habitat and wildlife species; but does include mature trees that could be used by birds that are protected by the Migratory Bird Treaty Act (MBTA) for nesting. Thus, implementation of Mitigation Measure BIO -1 would provide for nesting bird surveys that would reduce the potential of the Proposed Project to impact nesting migratory birds or raptors, which would also avoid the potential of the Project to contribute to cumulative effects. As detailed in the DEIR, the Project would result in less than significant impacts to all other candidate, sensitive, or special status species. Therefore, therefore with Mitigation Measure BIO -1, the proposed Project would not contribute to cumulative impacts that could potentially occur from other development projects. For these reasons detailed in the DEIR, the Project's cumulative effects on biological resources would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.3-5.) 9.17.4 Cultural Resources As detailed in DEIR Section 4.4, Cultural/Historic Resources, due to the existing built environment, location of the Santa Ana Register of Historic Properties of properties in Park Santiago, and the existing viewsheds, impacts related to the setting and feeling aspects of integrity of historic properties would not be reduced by implementation of the proposed Project; and the Project would not materially alter any physical characteristics of a historic resource that convey its historical significance. Therefore, the Project would not contribute to cumulative impacts that could potentially occur from other development projects throughout the region, and a cumulatively considerable impact would not occur. For these reasons detailed in the DEIR, the Project's cumulative effects on cultural resources would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.4-15.) 9.17.5 Geology, Soils and Seismicity Geologic and soils related impacts occur in a local or site-specific context, such as immediately adjacent cumulative development. Thus, the scope of analysis for cumulative impacts associated with geology and soils encompasses the Project vicinity. The closest cumulative project is the 2700 North Main Street residential development that is located 0.2 miles north of the Project site. The Project would be required to comply with CBC building codes, which reduces impacts to a less than significant level. All other projects are also subject to the same CBC building codes to reduce potential effects related to seismic events. As a result, cumulative impacts related to geology and soils would be less than significant. Also, as discussed in the Initial Study, the Project is not located on a site with potential for significant effects related to geology, soils, or seismicity. (Initial Study, pp. 29-33.) Accordingly, the Project will not have cumulative effects on geology, soils, and seismicity, even when considered with past, current, and future probable projects. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-90 Page 52 of 71 EXHIBIT A 9.17.6 Greenhouse Gas Emissions All GHG emissions are assessed in a cumulative context because no single project can cause a discernible change to climate. AB 32 recognizes the significance of the statewide cumulative impact of GHG emissions from sources throughout the state and sets a performance standard for mitigation of that cumulative impact. Therefore, analysis of GHG emission impacts under CEQA contained in the EIR effectively constitutes an analysis of a project's contribution to the significant cumulative impact of GHG emissions. As described in DEIR Section 4.5 Greenhouse Gas Emissions, the estimated GHG emissions from construction and operation of the proposed Project would be lower than the AQMD Tier 4 Option 3 threshold of 4.8 MTCO2e per year per service population. Therefore, the Project would not result in a cumulatively considerable impact related to GHG emissions, and cumulative impacts would be less than significant. For these reasons discussed in the DEIR, the Project's cumulative effects on greenhouse gas emissions would not be cumulatively considerable. (DEIR, pp. 4.5-13.) 9.17.7 Hazards and Hazardous Materials Hazard related impacts typically occur in a local or site-specific context versus a cumulative context combined with other development projects; although it is possible for combined effects of hazards to occur by adjacent cumulative development that involves hazardous risks. The closest cumulative project is the 2700 North Main Street residential development that is located 0.2 miles north of the Project site. Due to this distance, the potential from hazards to cumulatively increase is limited. In addition, compliance with the relevant federal, state, and local regulations during the construction and operation of related projects would ensure that cumulative impacts from hazardous materials would be less than significant. With implementation of Mitigation Measure HAZ-1, implementation of the Project would not result in the release of hazardous materials into the environment; and therefore, would not result in a cumulative contribution to a hazardous materials impact. Therefore, cumulative impacts related to hazardous materials during construction would be less than significant. In addition, the nearby projects provide residential and commercial uses, that would use the same type of limited hazardous materials as the proposed Project. With regular use and storage of these commonly used household products, such as would occur on the Project site, cumulative impacts would not occur. For these reasons detailed in the DEIR, the Project's cumulative effects relating to hazards and hazardous materials would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.6-8 through 4.6-9.) 9.17.8 Hydrology and Water Quality The Initial Study (DEIR Appendix A) details that Section 18-156 of the City of Santa Ana Municipal Code requires all new development and significant redevelopment within the City be undertaken in accordance with the County Drainage Area Management Plan (DAMP), including but not limited to the development project guidance; and any conditions and requirements established by City agencies related to the reduction or elimination of pollutants in storm water runoff from the Project site, which are verified prior to the issuance by the City of a grading permit or building permit. The DAMP requires implementation of site design, source control and treatment control Best Management Practices (BMPs). Resolution No. Certification of the Magnolia at the Park EIR 75E-91 Page 53 of 71 EXHIBIT A In addition, because the proposed Project is a priority project as it would replace more than 5,000 square feet of impervious surface on an already developed site, it would be required to implement a Water Quality Management Plan (WQMP) that includes Low Impact Development (LID) features and BMPs to limit the potential for pollutants to enter surface water, such as storm water runoff. With implementation of these requirements, the Project would result in a less than significant impact related to hydrology and water quality. In addition, all of the cumulative projects would be required to adhere to these State and County regulations, which would reduce cumulative impacts to a less than significant level. Also, as discussed in the Initial Study, the Project would not result in any significant effects relating to hydrology and water quality. (Initial Study, pp. 39-44.) Accordingly, the Project will not have cumulative effects relating to hydrology and water quality, even when considered with past, current, and future probable projects, and cumulative effects would be less than cumulatively considerable. 9.17.9 Land Use and Planning A large portion of the cumulative projects in the vicinity of the Project consist of multi -family residential development. In addition, the cumulative projects include mixed -uses, retail commercial, hotel, and services. These related projects are similar, consistent, and complementary to the proposed SD zone and multi -family residential development. DEIR Section 4.7, Land Use and Planning, describes that the Project would not result in conflicts with existing land use or zoning designations and would not conflict with an applicable land use plan, policy, or regulation of an agency with jurisdiction over the Project, which has the purpose of avoiding or mitigating an environmental effect, including applicable regulations, policies, and standards of the General Plan, Zoning Ordinance, and the SCAG RTP/SCS. Thus, the Project would not cumulatively contribute to such an impact that could occur from related projects. For these reasons detailed in the DEIR, the Project's cumulative effects relating to land use and planning would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.7-34.) 9.17.10 Noise Construction noise is localized in nature and decreases substantially with distance. Consequently, in order to achieve a substantial cumulative increase in construction noise levels, more than one source emitting high levels of construction noise would need to be in close proximity to the proposed Project. The nearest related project to the Project site is the 2700 North Main Street residential development project is located 0.2 miles north of the Project site and is in the site plan review stage of development approval. Thus, it is likely that these projects would not be constructed simultaneously. In addition, should construction of the projects overlap, the distance between the sites and the numerous intervening structures located between the sites that would serve to reduce construction -related noise levels, a substantial increase in combined construction noise levels would not occur. Therefore, cumulative noise impacts associated with construction activities would be less than significant. Cumulative construction could also result in the exposure of people to or the generation of excessive groundborne vibration. As described above, the nearest related project to the proposed Project is 0.2 miles north of the project site. Due to this distance, and the rapid attenuation of groundbome vibration, the proposed Project and this related project are not in close enough proximity to each other such that vibration levels generated during construction could potentially affect the same sensitive receptor should Resolution No. Certification of the Magnolia at the Park EIR 75E-92 Page 54 of 71 construction of this related project occur at the same time as the proposed Project. Only receptors located in the immediate vicinity of each construction site would be potentially impacted by each development. As such, cumulative impacts associated with groundbome vibration from construction activities would not be cumulatively considerable and would be less than significant. Additionally, cumulative traffic -generated noise impacts have been assessed based on the contribution of the proposed Project in the Project opening year (2020) and the year 2040 cumulative base traffic volumes on the roadway segments in the Project vicinity. The noise levels associated with these traffic volumes with the proposed Project would increase local noise levels by a maximum of 0.3 dBA CNEL, which is lower than 5 dBA, cumulative impact threshold for traffic noise. For the reasons detailed in the DEIR, the Project's cumulative effects relating to noise would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.8-24 through 4.8-25.) 9.17.11 Population and Housing The Project's portion of the cumulative increase in residential units is 9.9 percent, and the remainder of the cumulative projects would generate over 90 percent of the cumulative increase. Thus, the Project's contribution to the cumulative growth in housing is limited. Additionally, the total cumulative housing growth from all of the cumulative projects identified in the DEIR would equal 7.4 percent, which is consistent with SCAG growth estimates that anticipate an 8.4 percent increase. Thus, cumulative impacts related to population and housing would be less than significant. Furthermore, the cumulative addition of housing within the Santa Ana and City of Orange N. Main Street corridor area would have a favorable effect on the jobs -housing balance, which could reduce environmental effects of long commute trips, such as air quality and greenhouse gas emissions. For these reasons that are detailed in the DEIR, the Project's cumulative effects relating to population and housing would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.9-10.) 9.17.12 Public Services and Recreation Fire Protection Fire protection service is provided by Orange County Fire Authority (OCFA) staffed Fire Stations that are owned by the City of Santa Ana. There are several proposed projects within Santa Ana in the Project vicinity that would combine to generate additional demands for OCFA services. Like the proposed Project, the related projects would be reviewed by City and OCFA staff prior to permit approval and would be required to implement fire protection design features per California building and fire code regulations that would reduce potential fire hazards. Cumulative increased demands for services would also be offset by the City of Santa Ana fire facilities fee that is required for each development project. As detailed in DEIR Section 4.11, Transportation and Traffic, the Project would not result in cumulative traffic impacts in both years 2020 and 2040. The roadway segments and intersections near the Project site and Fire Stations 70 and 71 would continue to operate at satisfactory LOS. Therefore, the vehicular trips generated by operation of the proposed Project would not result in a substantial increase in emergency Resolution No. _ Certification of the Magnolia at the Park EIR 75E-93 Page 55 of 71 EXHIBIT A response times that could cumulatively combine with other development projects in the City, and impacts related to emergency response times from Fire Stations 70 and 71 would be less than cumulatively considerable. Because 4 of the City's 10 existing fire stations exist within 2.5 miles of the Project site, and related projects would be subject to the same impact fees that provide funding for additional equipment and staffing, and fire safe construction requirements, impacts related to fire services from the proposed Project would not combine with other related projects to result in a cumulative impact related to the need for new or physically altered fire service facilities. For these reasons detailed in the DEM, the Project's cumulative effects relating to fire protection services would not be cumulatively considerable when considered with past, current, and fixture probable projects. (DEIR, pp. 4.10-5.) Police Services The Project would result in an incremental increase in demands on law enforcement services and based on the Police Department's 2016 staffing of 1.04 officers per thousand population, the proposed Project would require one additional officer for the Department's Northeast District that serves all areas of the City north of First Street and East of Flower Street. In addition, the DEIR estimates that the cumulative projects would require an additional 3 officers to maintain the City's existing officers to population ratio. The addition of less than 1 officer from the proposed Project and 2 officers from the other projects within the Police Department's Northeast District would not require the need for, new or physically altered police protection facilities. For these reasons detailed in the DEIR, the Project's cumulative effects relating to police services would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.10-8 through 4.10-9.) Parks and Recreation The proposed Project would provide onsite recreational facilities for residents that would meet many recreation and park needs of Project residents. In addition, the Project would be required to pay park fees to offset usage of existing park and recreation facilities. The cumulative projects within the City of Santa Ana would also be required to provide park and recreational facilities and/or pay in -lieu fees as required by each city, which are implemented to preserve an appropriate balance between the demand by residents for use of park and recreational facilities, and as a result reduce cumulative effects of each project. Thus, because the proposed Project would provide the open space and recreation facilities and would provide payment of the required park fees, the Project's impact would not be cumulatively considerable, and cumulative impacts related to park and recreation facilities would be less than significant. For these reasons detailed in the DEIR, the Project's cumulative effects relating to parks and recreation would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.10-14.) Resolution No. _ Certification of the Magnolia at the Park EIR 75E-94 Page 56 of 71 EXHIBIT A 9.17.13 Transportation and Traffic As detailed in DEIR Section 4.11, Transportation and Traffic, the proposed Project would not result in impacts in the cumulative 2020 and 2040 conditions pursuant to the Caltrans, City of Santa Ana, and City or Orange thresholds and methodology. (DEIR, pp. 4.11-10 and 4.11-11.) As detailed in DEIR Tables 4.11-9 through 4.11-36, the proposed Project would not conflict with or result in an exceedance of a threshold by any of the following: the Orange County Congestion Management Program, Caltrans Measures of Effectiveness, City of Santa Ana General Plan Circulation Element, and the City of Orange General Plan Circulation Element. In addition, the Traffic Impact Analysis details that the capacities of the Park Santiago neighborhood intersections and roadways are substantially higher than the daily trip generation of the proposed Project. As such, cumulative impacts related to neighborhood traffic would be less than cumulatively significant. Also, the DEIR details that Project access locations and circulation around the Project site would be adequate, and cumulative impacts related to queuing would be less than cumulatively considerable. For these reasons detailed in the DEIR, the Project's cumulative effects relating to transportation and traffic would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.11-41.) 9.17.14 Utilities and Service Systems Water The Project would install new water lines to serve the proposed buildings and connect to the existing system that is adjacent to the Project site. The water system has been designed the proposed Project and would be served by existing infrastructure. Thus, the proposed Project would not result in the requirement for new or expanded off-site water infrastructure that could combine with other water infrastructure needs to result in an environmental impact. Thus, potential cumulative impacts from off-site water system expansions would not occur from the proposed Project. The Water Supply Assessment (WSA) that was prepared for the Project describes that the 2015 MWD UWMP details the ability to meet the demands of its member agencies, including the City of Santa Ana, through 2040. In addition, the City of Santa Ana 2015 UWMP confirmed the ability of the local supplies and the OC Basin to meet the growing demands of the City in multiple climate scenarios. Also, as described previously the increased water demand from the proposed Project would be between 2.7 and 4.3 percent of the 2015 UWMP anticipated increase. Thus, the City would have water supplies available to serve the Project from existing entitlements, and cumulative water supply needs would be able to be met as detailed by the MWD and City's UWMPs. As a result, the proposed Project would not result in a cumulatively considerable increase in water supply demands that would require new or expanded entitlements. For these reasons detailed in the DEIR, the Project's cumulative effects relating to water supplies would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.13-8.) Wastewater DEIR Section 4.13, Utilities and Service Systems, the existing sewer system has sufficient capacity to handle the increased flows resulting from implementation of the proposed Project. Additionally, the Resolution No. Certification of the Magnolia at the Park EIR 75E-95 Page 57 of 71 EXHIBITA OCSD reclamation facilities have an average flow of 184 mgd and a treatment capacity of 462 mgd (OCSD, 2017). Due to this volume of excess capacity that is designed by OCSD to accommodate future regional growth, the increase in wastewater flow from the proposed Project that would require 0.04 percent of this remaining capacity would not significantly impact the OCSD reclamation facilities. As a result, impacts related to cumulative projects wastewater treatment and conveyance capacity would be less than significant. For these reasons detailed in the DEIR, the Project's cumulative effects relating to wastewater treatment and conveyance would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.13-12.) Drainage and Water Quality All projects in the watershed are required to implement measures to comply with the LID, MS4 Permit, DAMP requirements for implementation of SWPPPs and WQMPs. These requirements were developed to reduce the cumulative impacts to water quality, and to ensure that the incremental effects of individual projects do not cause a substantial cumulative impact related to water quality. Implementation of the proposed Project would include compliance with all required laws, permits, and plans, through implementation of a SWPPP and WQMP that would be approved by the City prior to construction and operational permits and have been designed to reduce impacts associated with drainage and water quality. The proposed Project would result in a decrease in impervious surfaces due to the increase in landscape and open space areas. Additionally, the DAMP required runoff volume would be filtered through the detention and drywell systems prior to discharge off-site to manage stormwater drainage and protect water quality. The detention and drywell treatment systems have high removal effectiveness for all storm water pollutants of concern. Thus, the runoff volume that would result from the proposed Project would not increase, and the proposed treatment systems would remove pollutants from onsite runoff. Therefore, the proposed Project would not generate volumes of stormwater flows or polluted runoff that could combine with other projects to be cumulatively considerable. As a result, cumulative impacts from implementation of the proposed Project would be less than significant. For the reasons discussed in the DEM, the Project's cumulative effects relating to drainage and water quality would not be cumulatively considerable when considered with past, current, and future probable projects. (DEIR, pp. 4.13-19.) 10.0 FINDINGS REGARDING SIGNIFICANT IRREVERSIBLE ENVIRONMENTAL CHANGES AND ENERGY USE The CEQA Guidelines require that EIRs reveal the significant environmental changes that would occur as a result of a proposed Project. CEQA also requires decision makers to balance the benefits of a project against its unavoidable environmental risks in determining whether to approve a project. This section addresses non-renewable resources, the commitment of future generations to the proposed uses, and irreversible impacts associated with the Project. The Project would result in or contribute to the following irreversible environmental changes: Resolution No. Certification of the Magnolia at the Park EIR 75E-96 Page 58 of 71 47I • Lands in the Project area that are currently developed with office uses would be committed to multi -family residential uses once the proposed buildings are constructed. Secondary effects associated with this irreversible commitment of land resources include: o Changes in views associated with construction of the new buildings and associated development (see Section 4.1 of the DEIR, Aesthetics). o Increased traffic on area roadways (see Section 4.11 of the DEIR, Transportation and Traffic). o Emissions of air pollutants associated with Project construction and operation (see Section 4.2 of the DEIR, Air Quality). o Consumption of non-renewable energy associated with construction and operation of the proposed Project due to the use of automobiles, lighting, heating and cooling systems, appliances, and the like (see Section 4.14 of the DEIR, Energy). o Increased ambient noise associated with an increase in activities and traffic from operation of the Project (see Section 4.8, Noise). • Construction of the Project as described in Section 3.0 of the DEIR, Project Description, would require the use of energy produced from non-renewable resources and construction materials. In regard to energy usage from the proposed Project, the Project would not involve wasteful or unjustifiable use of non-renewable resources, and conservation efforts would be enforced during construction and operation of proposed development. The proposed development would incorporate energy -generating and conserving project design features, including those required by the California Building Code, California Energy Code Title 24, which specify green building standards for new developments. In addition, the Project includes project design features that result in additional energy - efficiency. (DEIR, p. 5-4.) 11.0 GROWTH INDUCING EFFECTS Section 15126(d) of the CEQA Guidelines requires a discussion of a proposed project's potential to foster economic or population growth, including ways in which a project could remove an obstacle to growth. Growth does not necessarily create significant physical changes to the environment. However, depending upon the type, magnitude, and location of growth, it can result in significant adverse environmental effects if it requires new development or infrastructure to support it. The Project's growth effects would be considered significant if they could result in significant physical effects in one or more environmental issue areas. As discussed in Section 5.0, Mandatory Findings of Significance, of the DEIR, the limited number of jobs generated by the Project would represent a small portion of the estimated job growth that would be within, and not exceed, SCAG's population forecast. As such, the Project would result in direct employment growth at a level that is already anticipated in regional projections; and thus, would be less than significant. The Project would not remove obstacles to growth, e.g., through the construction or extension of major infrastructure facilities that do not presently exist in the Project area, or by expansion of public services in the Project area. The infrastructure needed to serve the Project would be sized to specifically serve the site and excess capacity would not be developed that could generate additional growth; and the Project would not create a demand for public services beyond what is already contemplated. Additionally, as described in Section 5.0, Mandatory Findings of Significance, of the DEIR, SCAG Resolution No. Certification of the Magnolia at the Park EIR 75E-97 Page 59 of 71 EXHIBIT A projections show that the jobs — housing ratio is anticipated to increase to 1.65 by 2040; and that the Project would reduce the jobs -housing ratio slightly to 2.05; and to 2.11 in 2040. This would be a beneficial effect of providing multi -family housing on the Project site, where employees can easily travel to employment opportunities within the Santa Ana and City of Orange areas, which are jobs -rich. Thus, the Project would provide additional housing to support the regionally forecasted increase in economic activities. In addition, the provision of housing on the Project site would not result in economic activity that would cause the need for additional off-site housing. Therefore, impacts would be less than significant. For the reasons discussed above and the reasons discussed in the DEIR, growth inducing impacts from implementation of the Project would be less than significant. (DEIR, p. 5-1 through 5-3.) 12.0 FINDINGS REGARDING ALTERNATIVES 12.1 Background Where significant impacts are identified, section 15126.6 of the CEQA Guidelines requires EIRs to consider and discuss alternatives to the proposed actions. Subsection (a) states: (a) An EIR shall describe a range of reasonable alternatives to the project, or to the location of the project, which would feasibly attain most of the basic objectives of the project but would avoid or substantially lessen any of the significant effects of the project and evaluate the comparative merits of the alternatives. An EIR need not consider every conceivable alternative to a project. Rather it must consider a reasonable range of potentially feasible alternatives that will foster informed decision-making and public participation. An EIR is not required to consider alternatives which are infeasible. The lead agency is responsible for selecting a range of project alternatives for examination and must publicly disclose its reasoning for selecting those alternatives. There is no ironclad rule governing the nature or scope of the alternatives to be discussed other than the rule of reason. Subsection 15126.6(b) states the purpose of the alternatives analysis: (b) Because an EIR must identify ways to mitigate or avoid the significant effects that a project may have on the environment (Public Resources Code Section 21002. 1), the discussion of alternatives shall focus on alternatives to the project or its location which are capable of avoiding or substantially lessening any significant effects of the project, even if these alternatives would impede to some degree the attainment of the project objectives, or would be more costly. In subsection 15126.6(c), the State CEQA Guidelines describe the selection process for a range of reasonable alternatives: (c) The range of potential alternatives to the proposed project shall include those that could feasibly accomplish most of the basic objectives of the Project and could avoid or substantially lessen one or more of the significant effects. The EIR should briefly describe the rationale for selecting the alternatives to be discussed. The EIR should also identify any alternatives that were considered by the lead agency but were Resolution No. _ Certification of the Magnolia at the Park EIR 75E-98 Page 60 of 71 EXHIBIT A rejected as infeasible during the scoping process and briefly explain the reasons underlying the lead agency's determination. Additional information explaining the choice of alternatives may be included in the administrative record. Among the factors that may be used to eliminate alternatives from detailed consideration in an EIR are: (i) failure to meet most of the basic project objectives, (ii) infeasibility, or (iii) inability to avoid significant environmental impacts. The range of alternatives required is governed by a `Yule of reason" that requires the EIR to set forth only those alternatives necessary to permit a reasoned choice. The EIR shall include sufficient information about each alternative to allow meaningful evaluation, analysis, and comparison with the proposed Project. Alternatives are limited to ones that would avoid or substantially lessen any of the significant effects of the Project. Of those alternatives, the EIR need examine in detail only the ones that the lead agency determines could feasibly attain most of the basic objectives of the Project. However, when a project would not result in any significant and unavoidable impacts, the lead agency has no obligation to consider the feasibility of alternatives to lessen or avoid environmental impacts, even if the alternative would reduce the impact to a greater degree than the proposed Project. (Pub. Res. Code § 21002; Laurel Hills Homeowners Association v. City Council (1978) 83 Ca1.App.3d 515, 521; Kings County Farm Bureau v. City of Hanford (1990) 221 Cal.App.3d 692, 730-731; Laurel Heights Improvement Assn. v. Regents of the University of California (1988) 47 Cal.3d 376,400-403.) Here, a range of feasible alternatives to the proposed Project was developed to provide additional information and flexibility to the decision -makers when considering the proposed Project. (DEIR, pp. 6- 1 through 6-26.) 12.2 Project Objectives The following Project objectives support the Project's underlying purpose to develop multi -family residential uses on the Project site and assist with meeting the City's housing needs: • Redevelop existing underutilized parcels to implement development of new high-quality housing. • Increase high-quality housing near existing employment centers. • Promote an improved jobs/housing balance by locating attractive new housing in proximity to employment centers. • Provide housing in close proximity to commercial areas, freeway, and transit. • Redevelop existing land uses that would utilize existing infrastructure, including: water, sewer, arterial roadways, transit, and freeways. • Implement capital investment to enhance the City's economic and fiscal viability pursuant to the City of Santa Ana Strategic Plan. • Provide residents with a safe, high-quality, modern residential community with open space and various recreational amenities. (DEIR, pp. 6-2 through 6-3.) 12.3 Alternatives Considered and Rejected During the Scoping/Project Planning Process An EIR must briefly describe the rationale for selection and rejection of alternatives. The lead agency may Resolution No. _ Certification of the Magnolia at the Park EIR 75E-99 Page 61 of 71 i�:cu 3rr_� make an initial determination as to which alternatives are potentially feasible, meet most of the project objectives, and avoid significant environmental effects that would occur from the project, and therefore, merit in-depth consideration. Alternatives that are remote or speculative, are infeasible, or the effects of which cannot be reasonably predicted, need not be considered (CEQA Guidelines Section 15126.6(f), (f)(3)). The following alternatives were considered but rejected as part of the environmental analysis for the Project. Alternative Site Alternative An alternative site was considered but eliminated from further consideration. CEQA specifies that the key question regarding alternative site consideration is "whether any of the significant effects of the project would be avoided or substantially lessened by putting the project at another location." In addition, an alternative site need not be considered when implementation is "remote and speculative," such as when the alternative site is beyond the control of a project applicant. The Project Applicant is the owner of the Project site, and the Project site building is vacant, and the site is underutilized in the existing condition. The Project objectives are to redevelop an existing underutilized parcel and implement new high-quality multi -family housing near employment centers to promote an improved jobs/housing balance, provide housing near existing transportation, and utilize existing infrastructure, all of which are consistent with the opportunities provided by the Project site. In addition, due to the urban and built out nature of the City, development of 496 multi -family residential units on another 5.9 -acre site at a different location would likely require demolition of existing structures, require similar mitigation, and have similar impacts as the Project. CEQA specifies that the key question regarding alternative site consideration is "whether any of the significant effects of the project would be avoided or substantially lessened by putting the project at another location." Given the size and nature of the Project and the Project objectives, it would be infeasible to develop and operate the Project on an available alternative site with fewer environmental impacts. Therefore, the Alternative Site Alternative was rejected from further consideration. No Project/Vacant Building Alternative An alternative where the building would remain vacant and underutilized was eliminated from further consideration. Because the Project site is located within a completely developed and highly used urban corridor, near freeways and transit, and contains an existing useable structure, it is not reasonable due to the need for new residential and employment space in the area or financially feasible for the existing site owner for the site to remain vacant and underutilized in the long-term. Therefore, the No Project/Vacant Building Alternative would be remote and infeasible. In addition, this alternative would not meet any of the Project objectives. As described previously, alternatives that are remote, infeasible, and do not meet Project objectives, do not need to be considered. Thus, the No Project/Vacant Building Alternative was rejected from further consideration. 12.4 Alternatives Selected for Further Analysis In accordance with CEQA Guidelines Section 15126.6, "An EIR shall describe a range of reasonable alternatives to the project ..." including the "No Project' alternative. The following alternatives have been determined to represent a reasonable range of alternatives to supplement the access alternatives presented in the DEIR. The alternatives presented have been determined to be physically feasible and have the potential to avoid or substantially lessen one or more of the significant effects of the Project. The Resolution No. Certification of the Magnolia at the Park EIR 75E-100 Page 62 of 71 iWA: u:lrra Alternatives include: • Alternative 1: No Project/No Build • Alternative 2: Reduced Project Alternative • Alternative 3: Build Out of the Existing Zoning Alternative 12.5 Evaluation of Alternatives Selected for Analysis Alternative 1: No Project/No Build Description: Pursuant to Section 15126.6(e)(2) of the CEQA Guidelines, the EIR is required to "discuss the existing conditions at the time the Notice of Preparation is published, or if no notice of preparation is published, at the time the environmental analysis is commenced, as well as what would be reasonably expected to occur in the foreseeable future if the Project were not approved, based on current plans and consistent with available infrastructure and community services." Therefore, under this alternative, no development would occur on the Project site and it would remain in its existing condition. However, as described in Section 6.4 of the DEIR, the Project site is located within a completely developed and highly used urban corridor, near freeways and transit, and contains an existing useable structure, and it is not reasonable to assume that the Project site would remain vacant and underutilized in the long-term. In the No Project/No Build condition, it is reasonably expected that the existing 81,172 square foot office building would be re -occupied. Hence, this alternative compares impacts of the Project with re -occupation at full capacity of the existing office building. (DEIR, p. 6-4.) Environmental Effects: The No Project/No Build Alternative would avoid the significant and unavoidable aesthetic impact that would result from the Project and all of the potential construction impacts. Additionally, operational impacts would be reduced and the mitigation measures that are identified in Chapter 4.0, Mitigation Monitoring and Reporting Program, of the Final EIR—which include measures related to aesthetics, biological resources, hazards and hazardous materials, noise and vibration, and tribal cultural resources—would not be required. (DEIR, pp. 6-6 through 6-11.) However, the environmental benefits of the Project would also not be realized, such as improvements to storm water quality, removal of contaminated soils, improvements to the jobs/housing balance, and the potential to reduce vehicle miles traveled. The No Project/No Build Alternative would not install storm water filtration features in accordance with DAMP and LID design guidelines that would filter and slow the volume and rate of runoff; the arsenic contaminated soils would remain onsite; and this alternative would provide for the projected employment growth but would not improve the jobs to housing balance within the region and could generate more vehicle miles traveled. Ability to Achieve Project Objectives: The No Project/No Build Alternative would not meet any of the Project objectives. (DEIR, p. 6-11.) The site would not be redeveloped into new high-quality housing near existing employment centers, commercial areas, freeways, and transit. Capital investment related to the Project site to enhance the City's economic and fiscal viability pursuant to the City of Santa Ana Strategic Plan would not occur, and a safe, high-quality, modern residential community with open space and various recreation amenities would not be implemented by this alternative. Overall, this alternative would not meet any of the objectives of the Project. (DEIR, p. 6-11.) Finding: The No Project/No Build Alternative would avoid the significant and unavoidable aesthetic impacts and would avoid the need for mitigation to ensure impacts to various environmental resources Resolution No. Certification of the Magnolia at the Park EIR 75E-101 Page 63 of 71 EXHIBIT A would not occur. Additionally, this alternative would not require a General Plan amendment or zone change. However, the No Project/No Build Alternative would not achieve the Project objectives and the environmental benefits of the Project would not be realized. Therefore, the City hereby rejects the No Project/No Build Alternative. Alternative 2: Reduced Project Alternative Description: Under this alternative, described in further detail in the DEIR (DEIR, p. 6-12), a 30 percent reduction in the number of residential units would be built, which would result in increased setbacks and reduced building heights. Like the Project, 77 percent of the units would be studio or one -bedroom units, 18 percent would be 2 -bedroom units, and 6 percent would be 3 -bedroom units. This alternative would develop and operate 347 multi -family residential units on the 5.9 -acre site, which would result in 59 dwelling units per acre, which is a 149 -unit (and 25 unit per acre) reduction compared to the Project. Reducing these units from the Project would eliminate 51 units along the eastern portion of the Project site to provide a 90 -foot building setback from the eastern boundary of the site; and the 5th floor residential units along the eastern side would be eliminated to provide a maximum of 4 -stories adjacent to the 90 - foot setback. Under the Reduced Project Alternative, the development would be 3 -stories in height along Santiago Park and Edgewood Road, and would be 5 stories in height along N, Main Street and adjacent to the parking structure. To support the 347 multi -family residential units under this alternative 625 parking spaces (an average of 1.8 spaces per unit consistent with the Project) would be provided within a 6 -level parking structure, that would have 5 levels above ground and one level underground. Like the Project, the residential units would be wrapped around the parking structure. Under the Reduced Project Alternative, the Wellness Room and Community Rooms would not be developed (as they are planned to be located within the 90 -foot setback) and the recreation amenities would also be reduced by 30 percent. Thus, approximately 4;870 of indoor recreation facilities would be provided by this alternative. However, the 90 -foot setback would create a large open space area (approximately 54,000 square feet) along the eastern side of the Project site that could be used for open space recreation. Like the Project, this alternative would require a General Plan Amendment from the existing land use designation of PAO (Professional and Administrative Office) to District Center (DC), and a Zone change from P (Professional) to a Specific Development (SD) designation. Environmental Effects: As further discussed in the DEIR (DEIR, pp. 6-12 through 6-17), the Reduced Project Alternative would result in a 90 -foot building setback from the eastern boundary of the site resulting in an open space area that could be used for recreation. In addition, views of the Project site would be visually less dense and structure heights would be lower from several viewpoints. Also, the shade and shadow generated from the Reduced Project Alternative would be less than the Project and would extend into fewer off-site areas. However, the same mitigation to protect the trees to remain onsite would be necessary to ensure views of the Project site are screened, and (although less) this alternative would also result in a substantial difference in scale, height, and property setbacks in comparison to the existing views of the site that is considered significant pursuant to the City's aesthetics criteria. This alternative would also require the same types of construction activities and related mitigation Resolution No. Certification of the Magnolia at the Park EIR 75E-102 Page 64 of 71 EXHIBIT A measures as the proposed Project. Therefore, although the Reduced Project Alternative would be lower in height, scale, and mass, generate fewer greenhouse gas and air quality emissions, require fewer services, result in less traffic trips, and create a large open space area on the eastern portion of the Project site, it would not reduce the need for mitigation or the level of impact significance compared to the Project. Furthermore, the Reduced Project Alternative would result in a reduced beneficial effect. Providing fewer multi -family housing on the Project site would result in fewer opportunities to improve the City's 3.2 percent vacancy rate, fewer residents traveling to local employment opportunities, a reduced improvement to the jobs -housing balance and is not as reflective of the General Plan Major City Entry and Main Street Concourse node designations as the Project. Ability to Achieve Project Objectives: The Reduced Project Alternative would meet the Project objectives, but not to the same extent as the Project. The site would be redeveloped for new high-quality housing near existing employment centers, commercial areas, freeways, and transit; however, fewer residential units would be provided and a reduced improvement to the jobs -housing balance would occur. Additionally, fewer residents would be accommodated by the safe, high-quality, modern residential community with open space and various recreation amenities on the Project site. Overall, this alternative would meet the objectives of the Project, but not to the same extent as the Project. (DEIR, pp. 6-17 through 6-18.) Finding: The Reduced Project Alternative would reduce impacts in comparison to the proposed Project; however, the alternative would not reduce significant unavoidable aesthetic impacts to a less than significant level and would continue to require the same mitigation measures that would be implemented for the Project. In addition, the Reduced Project Alternative result in a reduced beneficial effect by providing fewer units to meet the City's housing need and jobs -housing balance. Further, this alternative would not meet the Project objectives to the same extent as the proposed Project. Therefore, the City hereby rejects the Reduced Project Alternative. (DEIR, p. 6-18.) Alternative 3: Build Out of the Existing Zoning Alternative Description: Under this alternative described in further detail in the DEIR (DEIR, pp. 6-18 through 6- 24), the Project site would be redeveloped for new professional office uses as allowed by the City's Zoning Code Sections 41-312 through 41-323. The Project site has a Zoning designation of P (Professional), which allows buildings up to 3 -stories or 35 -feet in height. The building setbacks required in the P zone include a 15 -foot setback from the front and side property lines, and a 50 -foot rear setback when the site backs to residential areas. The maximum office building structure that could be developed under the existing zoning code requirements would be 3 -stories high and 387,465 square feet (floor area ratio of 1.5), which would require 1,161 parking spaces (per the P zone requirement of 3 spaces per 1,000 square feet). The office building would be surrounded by drought tolerant ornamental landscaping. Under this alternative, the existing onsite development would be demolished, removed, and replaced to provide a new building structure that would be developed pursuant to current building requirements, such as energy efficient power systems, drought tolerant landscaping, storm water filtration, and other Low hnpact Development (LID) requirements. This alternative would be consistent with the existing land use designation, which is PAO (Professional and Administrative Office) and P zoning designation. (DEIR, p. 6-18.) Environmental Effects: The Build Out of the Existing Zoning Alternative would result in a lower building height than the Project, and a 10 -foot larger setback from the eastern boundary of the site; but Resolution No. Certification of the Magnolia at the Park EIR 75E-103 Page 65 of 71 EXHIBIT A would be 4.77 times larger than the existing 81,172 square foot 2 -story building, and like the Project, this alternative would substantially change the scale, height, and setbacks in comparison to existing views of the Project site, which would result in a significant impact pursuant to the City's aesthetics criteria. Furthermore, the character of the office building under this alternative would be less visually consistent with the adjacent single-family residential than the proposed multi -family residential. (DEIR, p. 6-23.) The Build Out Under the Existing Zoning Alternative would result in approximately 1,275 employees at full capacity and generate approximately 3,774 vehicle trips per day, which is 40 percent more daily trips than the proposed Project. As a result, impacts to air quality, greenhouse gas, traffic noise, and traffic congestion would be increased in comparison to the Project. Similarly, construction of this alternative would require the same construction related mitigation measures that are required for the Project. Overall, the Build Out Under the Existing Zoning Alternative would result in greater impacts than the Project. (DEIR, p. 6-23.) Ability to Achieve Project Objectives: The Build Out of the Existing Zoning Alternative would not meet a majority of the Project objectives. The site would not be redeveloped into new high-quality housing near existing employment centers, commercial areas, freeways, and transit. It would not promote an improved jobs/housing balance, and would not provide residents with a safe, high-quality, modern residential community with open space and various recreation amenities. Although the Project would meet the objectives of redeveloping land uses that would utilize existing infrastructure and would implement capital investment related to the Project site to enhance the City's economic and fiscal viability pursuant to the City of Santa Ana Strategic Plan, a majority (5 out of 7) of the Project objectives would not be met. (DEIR, pp. 6-23 through 6-24.) Finding: The Build Out of the Existing Zoning Alternative would continue to result in a significant unavoidable aesthetic impact, would continue to require the same mitigation measures that would be implemented for the Project, and would result in greater impacts to other environmental topics than the Project. In addition, the Existing Zoning Altemative would. not meet a majority of the Project objectives. 'Therefore, the City hereby rejects the Existing Zoning Alternative. 12.6 Environmentally Superior Alternative The Environmentally Superior Alternative for the Project is the No Project/No Build Alternative. The No Project/No Build Alternative would avoid the significant and unavoidable impact of the Project and all of the potential construction impacts, reduce many of the operational impacts, and would not be required to implement the mitigation measures that are identified in Chapter 4.0 of this EIR that are related to: aesthetics, biological resources, hazards and hazardous materials, noise and vibration, and tribal cultural resources. However, this alternative would not improve the storm water runoff quality that runs directly into Santiago Creek, not remove the contaminated soils from the site, not improve the jobs/housing balance and the related reduction in vehicle miles traveled. (DEIR, pp. 6-24 through 6-25.) CEQA Guidelines Section 15126.6(3)(1) states that if the environmentally superior alternative is the "no project" alternative, the EIR shall also identify an environmentally superior alternative among the other alternatives. The Environmentally Superior Alternative among the other alternatives is Alternative 2: Reduced Project Alternative, which would develop 30 fewer units than the Project. (DEIR, p. 6-24.) The potential impacts Resolution No. Certification of the Magnolia at the Park EIR 75E-104 Page 66 of 71 37:If71ii_1 from this alternative are less than the Project because the residential structure under this alternative would be lower in height, at a lower density, and be sited at least 90 -feet from the eastern property line resulting in a large open space area that could be used for recreation. However, the Reduced Project Alternative would result in a significant and unavoidable aesthetics impact related to a substantial difference in scale, height, and property setbacks in comparison to the existing views of the site and the alternative would not reduce the need for mitigation compared to the proposed Project. (DEIR, p. 6-24.) Furthermore, the Reduced Project Alternative would result in a reduced beneficial effect; providing fewer multi -family housing units on the Project site that would result in a reduced improvement to the City's 3.2 percent vacancy rate, fewer residents traveling to local employment opportunities, a reduced improvement to the jobs -housing balance, and is not as reflective of the General Plan Major City Entry and Main Street Concourse node designations as the Project. In addition, the Reduced Project Alternative would not meet the Project objectives to the same extent as the Project. The site would be redeveloped for new high- quality housing near existing employment centers, commercial areas, freeways, and transit; however, fewer residential units would be provided and a reduced improvement to the jobs -housing balance would occur. Additionally, fewer residents would be accommodated by the safe, high-quality, modem residential community with open space and various recreation amenities on the Project site. (DEIR, pp. 6-24 through 6-25.) CEQA does not require the City to choose the environmentally superior alternative. Instead CEQA requires the City to consider environmentally superior alternatives, explain the considerations that led it to conclude that those alternatives were infeasible from a policy standpoint, weigh those considerations against the environmental impacts of the proposed Project, and make findings that the benefits of those considerations outweighed the harm. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-105 Page 67 of 71 Statement of Overriding Considerations STATEMENT OF OVERRIDING CONSIDERATIONS MAGNOLIA AT THE PARK MULTI -FAMILY RESIDENTIAL PROJECT STATE CLEARINGHOUSE No: 2018021031 CITY OF SANTA ANA: DP No. 2017-34 Introduction EXHIBIT B The City of Santa Ana is the Lead Agency under CEQA responsible for preparation, review and certification of the Final EIR for the Magnolia at the Park Multi -Family Residential Project (Project). As the Lead Agency, the City is also responsible for determining the potential environmental impacts of the proposed action and which of those impacts are significant and can be mitigated through imposition of mitigation measures to avoid or minimize those impacts to a level of less than significant. CEQA then requires the Lead Agency to balance the benefits of a proposed action against its significant unavoidable adverse environmental impacts in determining whether or not to approve the Project. In making this determination, the City is guided by CEQA Guidelines Section 15093 which provides as follows: 15093. Statement of Overriding Considerations. a) CEQA requires the decision-making agency to balance, as applicable, the economic, legal, social, technological, or other benefits including region -wide or statewide environmental benefits, of a proposed project against its unavoidable environmental risks when determining whether to approve the project. If the specific economic, legal, social, technological or other benefits including region -wide or statewide environmental benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered "acceptable." b) When the lead agency approves a project which will result in the occurrence of significant effects which are identified in the final EIR but are not avoided or substantially lessened, the agency shall state in writing the specific reasons to support its action based on the final EIR and/or other information in the record. The statement of overriding considerations shall be supported by substantial evidence in the record. c) If an agency makes a statement of overriding considerations, the statement should be included in the record of the project approval and should be mentioned in the notice of determination. This statement does not substitute for, and shall be in addition to, findings required pursuant to Section 15091. hi addition, Public Resources Code Section 21081(b) requires that where a public agency finds that specific economic, legal, social, technological or other considerations, including considerations for the provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or alternatives identified in an EIR and thereby leave significant unavoidable effects, the public agency must also find that overriding economic, legal, social, technological or other benefits of the project outweigh the significant effects of the project. Resolution No. Certification of the Magnolia at the Park EIR 75E-106 Page 68 of 71 EXHIBIT B Statement of Overriding Considerations Pursuant to Public Resources Code Section 21081(b) and the CEQA Guidelines Section 15093, the City has balanced the benefits of the Project against the following unavoidable adverse impacts associated with the Project and has adopted all feasible mitigation measures with respect to these impacts. The City also has examined alternatives to the Project, most of which do not meet the Project objectives and are environmentally preferable to the Project for the reasons discussed in the Findings and Facts in Support of Findings. The City of Santa Ana, the Lead Agency for this Project, having reviewed the DEIR for the Project and reviewed all written materials within the City's public record and heard all oral testimony presented at public hearings, adopts this Statement of Overriding Considerations, which has balanced the benefits of the Project against its significant unavoidable adverse environmental impacts in reaching its decision to approve the Project. Overriding Considerations The City, after balancing the specific economic, legal, social, technological and other benefits, including region -wide or statewide environmental benefits of the Project, has determined that the unavoidable adverse environmental impacts identified above may be considered acceptable due to the following specific considerations which outweigh the unavoidable, adverse environmental impact of the Project, in accordance with Public Resources Code Section 2108l(b) and CEQA Guidelines Section 15093. Each of the benefits identified below provides a separate and independent basis for overriding the significant environmental effects of the Project. The specific economic, legal, social, technological and other benefits of the Project are as follows: 1. The Project would implement capital investment to enhance the City's economic and fiscal viability pursuant to the City of Santa Ana Strategic Plan. 2. The Project would implement the General Plan Scenic Corridors Element Major City Entry designation along N. Main Street at the Project site. 3. The Project would implement the General Plan Urban Design Element Main Street at I-5 Freeway Gateway designation. 4. The Project would provide consistency with the General Plan Scenic Corridors Element hiter- City Corridor designation along the Santiago Creek area at N. Main Street. 5. The Project would provide needed multi -family rental housing to improve the City's 3.2 percent vacancy rate and provide a variety of housing options for existing and future residents. 6. The Project would reduce the jobs -housing ratio, providing a beneficial effect of providing multi- family housing in a jobs -rich area so that employees can easily travel to employment opportunities. 7. The Project would result in a potential reduction of vehicle miles traveled and the related traffic congestion, air quality, and greenhouse gas emissions from the provision of housing near regional shopping areas and employment, and by improving the jobs -housing balance. Resolution No. Certification of the Magnolia at the Park EIR 75E-107 Page 69 of 71 EXHIBIT B Statement of Overriding Considerations 8. The Project would provide additional multi -family housing to support the regionally forecasted increase in economic activities and employment increases. 9. The Project would redevelop an underutilized parcel to implement high-quality multi -family housing with recreation amenities, near transportation facilities and utilizing existing infrastructure capacity. 10. The Project would improve storm water filtration, such that unfiltered runoff would no longer be conveyed to Santiago Creek. All of the runoff from the site would be conveyed to infiltrating landscaping areas and catch basins that would improve the existing storm water quality that conveys to the creek. 11. The Project would install additional 24- and 36 -inch box trees and tree wells along the Edgewood Road and N. Main Street right-of-way, providing additional public street trees. 12. The Project would result in the creation, installation, and maintenance of a public art project with a value equivalent to one-half of one percent of the total construction cost of the Project, pursuant to a development agreement entered into between the City and the Project Applicant, AC 2525 Main St., a California limited liability company ("Project Applicant"). 13. The Project would result in the Project Applicant providing $1,400,000 to the City for future park maintenance and for the purpose of completing park improvements including, but not limited to, installation of irrigation, landscaping, security lighting and bike trail enhancements to Santiago Park. 14. The Project would result in the Project Applicant providing $100,000 to the City for future maintenance of the three new entry monuments. 15. The Project would result in providing benefits to the Park Santiago neighborhood for a period of 55 -year (subject to annual review) including access to on-site amenities and Amazon locker, private 24-hour roving security patrol of Santiago Park and the Park Santiago Neighborhood. 16. The Project would result in the Project Applicant performing all tasks necessary, and paying all fees, not to exceed one hundred fifty thousand dollars ($150,000), associated with processing an application for consideration of the designation of the Santiago Park Neighborhood Association as a local historic district on the City's Historical Register. Provided the members of the Santiago Park Neighborhood Association support creation of a Park Santiago Historic District. 17. The Project would result in the Applicant preforming the analysis, design, engineering, construction, and inspection/administration of (1) Santiago Park neighborhood improvements at up to three locations on Edgewood and/or Bush Street to achieve traffic calming and traffic diversion. Improvements may be based on input from the Santiago Park Neighborhood Association and may include, but not be limited to, bulb -outs, traffic circles and medians within the neighborhood streets. (2) Santiago Park Neighborhood entry monuments at Main Street/Edgewood Road, Santa Clara Avenue/Lincoln Avenue, and Santiago Street/17th Street based on input from the Santiago Park Neighborhood Association. (3) Street lighting enhancements within the Santiago Park Neighborhood. (4) A street light at the Santiago Park Resolution No. Certification of the Magnolia at the Park EIR 75E-108 Page 70 of 71 WIP,Tf:IW; Statement of Overriding Considerations Drive / Main Street intersection. (5) Decorative concrete pavement within the intersection of Main Street/WaMe Way and Main Street/Santiago Park Drive. Resolution No. _ Certification of the Magnolia at the Park EIR 75E-109 Page 71 of 71 EXHIBIT C MAGNOLIA AT THE PARK MULTI -FAMILY RESIDENTIAL PROJECT MITIGATION MONITORING AND REPORTING PROGRAM 1.1 Introduction The California Environmental Quality Act (CEQA) requires a lead or public agency that approves or carries out a project for which an Environmental Impact Report has been certified which identifies one or more significant adverse environmental effects and where findings with respect to changes or alterations in the project have been made, to adopt a '...reporting or monitoring program for the changes to the project which it has adopted or made a condition of project approval in order to mitigate or avoid significant effects on the environment" (CEQA, Public Resources Code Sections 21081, 21081.6). A Mitigation Monitoring and Reporting Program (MMRP) is required to ensure that adopted mitigation measures are successfully implemented for the 2525 N. Main Street Magnolia at the Park Multi -Family Residential Project (project). The City of Santa Ana is the Lead Agency for the proposed project and is responsible for implementation of the MMRP. This report describes the MMRP for the project and identifies the parties that will be responsible for monitoring implementation of the individual mitigation measures in the MMRP. 1.2 Mitigation Monitoring and Reporting Program The MMRP for the project will be active through all phases of the project, including design, construction, and operation. The attached table identifies the mitigation program required to be implemented by the City for the project to avoid or reduce potentially significant impacts on the environment. The table identifies the timing of implementation, and the responsible party or parties for monitoring compliance. The MMRP also includes a column for the compliance monitor (individual responsible for monitoring compliance) to document when implementation of the measure is completed. As individual mitigation measures are completed, the compliance monitor will sign and date the MMRP, indicating that the required mitigation measure has been completed. The project includes specific Project Design Features (PDFs) that are incorporated to avoid and/or minimize potential environmental impacts. In addition, the EIR analysis describes the existing regulations that effectively avoid or reduce environmental impacts. The PDFs and the existing regulations that are implementable actions related to project construction and operation activities are included in the following MMRP table to ensure implementation and appropriate monitoring of each, in the same manner as the mitigation measures. 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NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND AC 2525 MAIN, LLC FOR CERTAIN REAL PROPERTY LOCATED AT 2525 NORTH MAIN STREET WITHIN THE CITY OF SANTA ANA PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864, ET SEQ. 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: WHEREAS, the City of Santa Ana ("City") is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and owner in the development process; and WHEREAS, the City has found that development agreements strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty in that process, reduce the economic costs of development, allow for the orderly planning of public improvements and services, allocate costs to achieve maximum utilization of public and private resources in the development process, and ensure that appropriate measures to enhance and protect the environment are achieved; and WHEREAS, the City enters into this Development Agreement pursuant to the provisions of the Government Code and applicable City policies; and WHEREAS, AC 2525 Main, LLC ("Developer") proposes to develop a 5.93 -acre site located in the City of Santa Ana, more particularly described in Exhibit A, attached hereto and incorporated herein by this reference ("Property") for residential uses on the Property ("Project"); and WHEREAS, the Development Agreement came before the Planning Commission for a duly noticed public hearing on January 14, 2019. At that hearing, the Planning Commission recommended that the City Council deny said Development Agreement; and WHEREAS, entering into this Development Agreement would provide the City with extraordinary and significant benefits that are of regional significance, relate to existing deficiencies in public facilities, require the owner of 2525 North Main Street to contribute a greater percentage of benefits than would otherwise be required, and represent benefits which would not otherwise be required as part of the development process; and Ordinance No. 2019-xx Page 1 of 7 Exhibit 3 75E-119 WHEREAS, the Project and the use that the Developer proposes in connection with the Property have been extensively reviewed and considered by the City, and such proposed development and use have been found to accommodate the City's recommendations and suggestions in order to protect the public's interest to enhance the desirability of such proposed development and use. The terms and conditions of this Development Agreement have been found to be fair, just and reasonable, and the City has concluded that the pursuit of the Project will serve the interests of the City; and WHEREAS, the City Council has determined that by entering into the Development Agreement: (i) the City will promote orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan; and, (ii) significant benefits will be created for City residents and the public generally from increased employment, housing, parks and/or park improvements; and WHEREAS, Environmental Impact Report No. 2018-01 (State Clearinghouse No. 2018021031) for the proposed Project was circulated between August 7, 2018 and October 4, 2018; and WHEREAS, the Environmental Impact Report analyzed the impacts related to the proposed amendment to the zoning map and adoption of Specific Development No. 93; and WHEREAS, the City and Developer have reached mutual agreement and desire to voluntarily enter into the Development Agreement to facilitate development of the Project subject to the conditions and requirements set forth therein; and WHEREAS, the terms and conditions of the Development Agreement have undergone review by the City Council at a publicly noticed hearing and have been found to be fair, just, and reasonable, and consistent with the General Plan; and WHEREAS, the proposed Project will not adversely affect the General Plan, as amended by General Plan Amendment No. 2018-06, as is expressly set forth in the Request for City Council Action dated February 5, 2019 and Request for Planning Commission Action dated January 14, 2019, together with all supporting documents, including but not limited to, proposed resolutions, which are incorporated herein by this reference. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 2. CEQA. The requirements of the California Environmental Quality Act have been satisfied in that a Final Environmental Impact Report and Mitigation Monitoring and Reporting Program have been prepared for the Project, including the Development Agreement. Ordinance No. 2019-xx Page 2 of 7 75E-120 Section 3. GENERAL PLAN CONSISTENCY. Pursuant to California Government Code section 65867.5(b) and based on the entire record before the City Council, including all written and oral evidence presented to the City Council, the City Council hereby finds that the Development Agreement is compatible with the objectives, policies, and general plan land use programs specified in the General Plan for the City of Santa Ana in that: A. The City of Santa Ana has officially adopted a General Plan. B. The land uses authorized by the General Plan Amendment, and the General Plan Amendment itself, are compatible with the objectives, policies, general land uses, and programs specified in the General Plan, for the following reasons: The existing General Plan land use designations for the project is Professional and Administrative Office (PAO), which allows business and professional offices; with a floor area ratio of 1.5. In order to facilitate the construction of a multi -family housing Project with a maximum floor area ratio of 2.28, the land use designation needs to be changed to District Center (DC), which create a high intensity, mixed-use urban villages and pedestrian -oriented experiences that support the mid- to high-rise office centers, commercial activity, and cultural activities with floor area ratios ranging from 0.5 to 5.0. ii. The proposed Project will support several goals and policies of the General Plan. Housing Element (HE) Goal 2: to create diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels, and age groups to foster an inclusive community. HE Policy 2.2 District Centers. Create high intensity, mixed-use urban Villages and pedestrian -oriented experiences that support the mid- to high-rise office centers, commercial activity, and cultural activities in the varied District Centers. HE Policy 2.4 to facilitate diverse types, prices and sizes of housing. Housing Element (HE) Goal 4: to provide adequate rental and ownership housing opportunities and supportive services. The Project will provide 476 rental housing units. The amendment will expand the District Center designation and provide a connection between the existing District Centers to the north and south of the site by providing a residential development that will support a mixed-use environment. Ordinance No. 2019-xx Page 3 of 7 75E-121 Land Use (LU) Element Goal 1: to promote a balance of land uses to address basic community needs. LU Policy 1.2 Maintain and foster a variety of residential land uses in the City. LU Policy 4.3 Support land uses which provide community and regional economic and service benefits. LU Policy 4.4 Encourage the development of projects which promote the City's image as a regional activity center. LU Policy 5.5 Encourage development which is compatible with, and supportive of surrounding land uses. LU Policy 5.7 Anticipate that the intensity of new development will not exceed available infrastructure capacity. Land Use (LU) Element Goal 6: to reduce residential overcrowding to promote public health and safety. The Project is within '/2 mile of existing transportation infrastructure such as the Santa Ana (1-5) freeway and State Route 22 (SR 22) highway which provide vehicular access to the region; the Orange County Transportation Agency bus routes which connect to the Anaheim Regional Transportation Authority which provides rail service throughout California and is immediately adjacent to Santiago Park and Santiago Creek Bike Trail which connects to regional bike trails. Main Street, a major urban corridor with cultural, educational, employment and retail destinations such as the Bowers Museum, Discovery Science Center, Main Place Mall and in the City of Orange; the Children's Hospital of Orange County and St. Joseph's Hospital of Orange County. Therefore, the residential development would be within close proximity of major employment centers and retail establishments. The Project will also provide an additional housing option for those seeking housing within the jobs rich northern area of the City. The multi -storied development will complement the nearby mid -rise office buildings located along Main Street to the north and west of the site and the multi -family residential use supports a mixed-use setting. Although the density will be higher than the adjacent uses, the residential use is consistent with the residential uses to the east and south. Urban Design (UD) Element. Goal 1: to improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. UD Policy 1.1. New development and redevelopment must have the highest quality design, materials, finishes and construction. Ordinance No. 2019-xx Page 4 of 7 75E-122 UD Policy 1.11 Visual and physical links between districts, nodes, and significant sites, landmarks and other points of interest, are to be provided in all public and private projects. The residential buildings are of high quality design and include high quality materials such as stone veneer, brick veneers, metal panels, and canopies. The building is designed with courtyards that are open to the public right-of-way, and landscaped areas to reduce the mass of the building. The Project has street frontage on Main Street which is identified as a major path in the General Plan and supports the North Main Street Node described as an opportunity for the establishment of a cohesive, height intensity, mixed activity center with a strong presence in the region. The new development will include public art and convey a sense of place and contribute to the urban image for the City along a street corridor that includes regional, local and cultural landmarks. The development will be in scale with the buildings along Main Street to the north and west of the site. In addition, the Urban Design Element of the General Plan identifies the site as a Gateway; the Project promotes elements of a Gateway by developing the site with a building with attractive architectural features, projecting a positive image for the City of Santa Ana. C. The proposed Development Agreement will not adversely affect the public health, safety, and welfare in that the Development Agreement will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. Section 4. The Development Agreement, a true and correct copy of which is attached hereto as Exhibit B and incorporated herein by this reference, is hereby recommended for City Council approval. Section 5. The Development Agreement shall not be effective unless and until Resolution No. 2019- (Environmental Impact Report No. 2018-01), Resolution No. -2019- (General Plan Amendment No. 2018-06) and Ordinance No. NS- (Amendment Application No. 2018-10) are adopted and become effective. If said resolution and Development Agreement 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 the Development Agreement shall be null and void and have no further force and effect. Section 6. INDEMNIFICATION. The Developer shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, Ordinance No. 2019-xx Page 5 of 7 75E-123 equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Developer shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Developer of any Action brought and City shall cooperate with Developer in the defense of the Action. Section 7. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this ordinance 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 8. CITY COUNCIL ACTION. The City Council hereby takes the following action: The City Council approves Development Agreement No. 2018-01, attached hereto and incorporated herein as Exhibit B, as follows: A. The Development Agreement shall not take effect unless and until Environmental Impact Report No. 2018-01 is certified by the City Council, and General Plan Amendment No. 2018-06 and Amendment Application No. 2018-10, are each approved by the City Council. Section 9. PUBLICATION. The Clerk of the Council shall certify to the adoption of this ordinance and cause the same to be published in the manner prescribed by law. Ordinance No. 2019-xx Page 6 of 7 75E-124 ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:^, Lisa Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 2019. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE-RAMIREZ, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on . 2019. Date: Norma Mitre -Ramirez Acting Clerk of the Council City of Santa Ana Ordinance No. 2019-xx Page 7 of 7 75E-125 EXHIBIT A RECORDED AT REQUEST OF: AND WHEN RECORDED RETURN TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attention: Clerk of the Council Exempt from filin.g fees pursuant to Government Code 55394.00002U1553187. 10 DEVELOPMENT AGREEMENT NO. 2018-01 A DEVELOPMENT AGREEMENT BETWEEN CITY OF SANTA ANA and AC 2525 MAIN, A CALIFORNIA LIMITED LIABILITY COMPANY 75E-126 DEVELOPMENT AGREEMENT NO. 2018-01 This Development Agreement (hereinafter "Agreement") is entered into as of this _ day of , 2018 by and between the City of Santa Ana, California (hereinafter "CITY"), and AC 2525 Main, a California limited liability company (hereinafter "OWNER"): RECITALS WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864, et seq. of the Government Code; and WHEREAS, This Agreement constitutes a current exercise of CITY'S police powers to provide predictability to OWNER in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of development consistent with the Development Plan in exchange for OWNER'S commitment to provide significant public benefits to CITY as set forth in Section 4, below. WHEREAS, OWNER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY; and WHEREAS, the best interests of the citizens of the City of Santa Ana and the public health, safety and welfare will be served by entering into this Agreement; and WHEREAS, the City Council hereby finds and determines that this Agreement is of major significance because it will enable the CITY to fund much needed capital improvements and provide much needed public services and will therefore also have a major, beneficial economic impact on the City; and WHEREAS, the provision by OWNER of the public benefits allows the CITY to realize significant economic, recreational, park, open space, educational, social and public facilities benefits. The public benefits will advance the interests and meet the needs of Santa Ana residents and visitors to a significantly greater extent than would development of the Property without this Agreement. WHEREAS, the physical effects, if any, of the Project and this Agreement have been analyzed pursuant to California Environmental Quality Act as amended to date and as documented in the Final Environmental Impact Report entitled "Magnolia at the Park Multi -Family Residential Project" (State Clearinghouse House No. 2018021031 and City of Santa Ana DP No. 2017.34); and WHEREAS, this Agreement and the Project are consistent with the Santa Ana General Plan and any specific plan applicable thereto; and WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and WHEREAS, development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and WHEREAS, this Agreement will eliminate uncertainty in planning and provide for the orderly 55394.00002%11553187.10 -1- 75E-127 development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which development agreements under Section 65864, et seq. of the Govermuent Code are intended; COVENANTS NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: DEFINITIONS AND EXHIBITS. 1.1 Definitions. The following terms when used in this Agreement shall be defined as follows: 1.1.1 "Agreement" means this Development Agreement. 1.1.2 "CITY" means the City of Santa Ana, a charter city and California municipal corporation. Santa Ana. 1.1.3 "City Council" means the duly elected city council of the City of 1.1.4 "Commencement Date" means the date the Tenn of this Agreement commences. 1.1.5 "Development" means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not lhnited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. "Development" does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof. 1.1.6 "Development Exaction" means any requirement of CITY in connection with or pursuant to any Land Use Regulation or development approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests. 1.1.7 "Development Impact Fee" a monetary exaction other than a tax or special assessment, whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include park "in lieu" fees specified in Government Code Section 66477, fees for processing applications for governmental regulatory actions or approvals, or fees collected under development agreements adopted pursuant to Article 2.5 of the Government Code (commencing with Section 65864) of Chapter 4. -2- 55394.na0a201557187.1 a 75E-128 1.1.8 "Development Plan" means the plan for development of the Property as set forth in Exhibit "C". 1.1.9 "Discretionary Action(s)" or 'Discretionary Approval(s)" means an action which requires the exercise of judgment, deliberation or discretion on the part of the City, including any board, agency, commission or department and any officer or employee thereof, in the process of approving or disapproving Development of the Project, as distinguished from an activity which is defined herein as a Ministerial Permit or Ministerial Approval. 1.1.10 "Effective Date" means the date the ordinance approving and authorizing this Agreement becomes effective. 1.1.11 "Existing Land Use Regulations" means all ordinances, laws, resolutions, codes, rules, regulations, policies, requirements, guidelines or other actions of City, including but not limited to the provisions set forth in the City's General Plan, Municipal Code which affect, govern or apply to the Development of the Project and use of the Property in a manner consistent with this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property, subject to the terms of this Agreement, whether adopted by the City Council or the voters in an initiative, which are in effect on the Effective Date, pursuant to California Government Code Section 65866. 1.1.12 "Existing Project Approvals" means all Project Approvals approved or issued on or before the Effective Date. 1.1.13 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the development of the Property. "Land Use Regulations" does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) taxes (special or general) and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests that provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain. 1.1.14 "LWCF Grant' means the Fiscal Year 2004/2005 Land and Water Conservation Fetid grant used for the improvement of the Park that included the 55394.0000201553187.10 -3- 75E-129 amphitheatre and supporting facilities on file with the City and is also known as the Santiago Park Nature Reserve Development 2009/05. 1.1.15 "OWNER" means the persons and entities listed as OWNER on page I of this Agreement and their successors in interest to all or any part of the Property. 1.1.16 "Ministerial Approvals(s)," or "Ministerial Act(s)" means any approval or act that is not a Discretionary Approval. 1.1.17 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security -device lender, and their successors and assigns. 1.1.18 "Project" means the development of the Property located at 2525 Main Street, Santa Ana, CA, contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Agreement. 1.1.19 "Project Approvals" means all site-specific (meaning specifically applicable to the Project only and not generally applicable to some or all other properties within the City) plans, maps, permits, and entitlements to use of every kind and nature that are sought or agreed to in writing by OWNER in its sole and absolute discretion to Develop the Project and that have been approved by the City. Project Approvals include, but are not Ihtited to, general plan amendments, site plans, tentative and final subdivision maps, design guidelines, variances, zoning designations, conditional use permits, grading, building, and other similar pennits, the site-specific provisions of general plans, environmental assessments, including environmental impact reports and negative declarations. 1.1.20 "Property" means the real property described on Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.21 "Public Benefit" refers to those benefits provided to the CITY. and the community by OWNER pursuant to Section 4 below. 1.1.22 "Reservation of Rights" means the rights and authority excepted from the assurances and rights provided to OWNER ander this Agreement and reserved to CITY under Section 3.3 of this Agreement. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" — Legal Description of the Property Exhibit "B" — Map showing Property and its location Exhibit "C" — Development Plan Exhibit "D" — Development Impact Fees Exhibit "E" - Development Impact Fee Credits Exhibit "F" — Santiago Park Roadway Rights 55394.00002\31553187. 10 75E-130 Exhibit "G" — Conceptual Park Design and Improvements Exhibit "H" — Park Santiago Patrol Area Map Exhibit "I" — Conditions of Discretionary Approvals 2. GENERAL PROVISIONS. 2.1 Bhtdina Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of the Development Plan and this Agreement. 2.2 Ownership of Property. OWNER represents and covenants that it is the owner of the fee simple title to, or has an equitable interest in, the Property or a portion thereof. 2.3 City Council Findings. The City Council finds that: 2.3.1 This Agreement is consistent with the CITY'S General Plan. 2.3.2 This Agreement ensures a desirable and functional community environment, provides effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, enhances effective utilization of resources within the City. 2.3.3 This Agreement provides public benefits beyond those which are necessary to mitigate the development of the Project. 2.3.4 This Agreement strengthens the public planning process, encourages private participation in comprehensive planning and reduces costs of development and government. 2.3.5 The best interests of the citizens of the CITY and the public health, safety, and welfare will be served by entering into this Agreement. 2.4 Term. The term of this Agreement shall commence on the date (the "Commencement Date') that is the Effective Date, and shall continue for a period of four (4) years thereafter, unless this term is modified or extended pursuant to the provisions of this Agreement. Thereafter, the OWNER shall have no vested right under this Agreement, regardless of whether or not OWNER has paid any Development Impact Fee. 2.4.1 The Term of this Agreement may be extended upon the mutual written agreement of the City's City Manager and the OWNER for no more than two (2) additional consecutive one (1) year periods ("Extension Term"). Notwithstanding the immediately preceding sentence or any other part of this Agreement, in no event shall the Development Agreement Period exceed 2160 consecutive calendar days from the Effective Date. Prior to the City granting each Extension Term: -5- $5304.00002Vtss3197.10 75E-131 (a) OWNER shall demonstrate to the City Manager's reasonable satisfaction that OWNER has and will continue to diligently pursue the development of the Project; (b) OWNER shall pay to the City Fifty Thousand Dollars ($50,000) to partially compensate the City for the significant lost revenue to be received by the City had the Project been completed. 2.4.2 If any party other than OWNER initiates litigation that challenges the Project or the Existing Project Approvals, the OWNER will have the right to toll cotmnencement of the Tenn and any obligations of OWNER under the Agreement during the period of such litigation. The tolling shall commence upon receipt by the City of written notice from OWNER invoking this right to tolling. The tolling shall terminate when (I) a final order is issued in said litigation that upholds the Project and the Existing Project Approvals or (2) the litigation is dismissed with prejudice by all Parties; whichever occurs first. 2.5 Assigtunent. 2.5.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property ht whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410, et §M.) to any person, partnership, joint venture, firm or corporation at any time daring the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, ditties and obligations arising under or from this Agreement and be made in strict compliance with the following conditions precedent: (a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property to which such rights or interests apply. Any sale, transfer or assignment shall require the consent of the City which shall not be unreasonably withheld, conditioned, or delayed. (b) Concurrent with any such sale, transfer or assignment, OWNER shall notify CITY, in writing, of such sale, transfer or assignment and shall provide CITY with an executed agreement ("Assignment and Assumption Agreement"), in a form reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties, obligations, agreements, covenants, waivers of OWNER under this Agreement, including, without limitation, the covenants not to sue and waivers contained in Sections 7.2 and 8.4 hereof. (c) OWNER shall provide CITY with such information reasonably requested by CITY that demonstrates such transferee or assignee has sufficient development experience and financial capability to complete the Project and perform all obligations assumed. (d) Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by Owner under this Agreement. Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.5.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. -6- 55394.00002\31553187. 10 6- 55394.00002i31553187.10 75E-132 (e) The Executive Director for the Planting and Building Agency shall have the administrative authority to determine that OWNER has complied with the above conditions. Such determination shall not be unreasonably withheld or delayed. 2.5.2 Release of Transferrins Owner. Notwithstanding any sale, transfer or assignment, a transferring OWNER shall continue to be obligated under this Agreement with respect to the transferred Property or any transferred portion thereof, unless such transferring OWNER is given a release in writing by CITY, which release shall be provided by CITY upon the full satisfaction by such transferring OWNER of the following conditions: (a) OWNER no longer has a legal or equitable interest in all or any part of the Property subject to the transfer. (b) OWNER is not then in default under this Agreement. (c) OWNER has provided CITY with the notice and executed agreement required under Paragraph (b) of Subsection 2.5.1 above. (d) The purchaser, transferee or assignee provides CITY with security equivalent to any security previously provided by OWNER to secure performance of its obligations hereunder. 2.5.3 Subsequent Assignment. Any subsequent sale, transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section. 2.5.4 Utilities. The Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Project, prior to the issuance of final approval for occupancy or the certificate of occupancy for any portion of the Project. 2.5.5 Sale to Public and Completion of Construction. The provisions of Subsection 2.5.1 shall not apply to the sale or lease (for a period longer than one year) of any lot that has been finally subdivided and is individually (and not in "bulk") sold or leased to a member of the public or other ultimate user. This Agreement shall terminate with respect to any lot and such lot shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions: (a) The lot has been finally subdivided and individually (and not in "bulls") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and (b) City final approval for occupancy or the certificate of occupancy has been issued for a building on the lot, and the fees for such lot set forth in this Agreement have been paid. 55393.0000201553187.10 2.6 Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by written consent of all parties in the 75E-133 manner provided for in Government Code Section 65868. This provision shall not limit any remedy of CITY or OWNER as provided by this Agreement. 2.7 Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events: (a) Expiration of the stated Term of this Agreement as set forth in Section 2.4. (b) Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approvhtg this Agreement. (c) The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement. (1) Within Eve (5) days of receipt of a referendum petition by the CITY, OWNER shall deposit Fifty Thousand Dollars ($50,000) ("Referendum Deposit") with the CITY. CITY may use the finds to pay any and all costs associated with the said referendum measure. If at any time the Referendum Deposit account has Five Thousand Dollars ($5000) or less remaining, Developer shall, within three (3) days of receiving notice from the CITY, deposit with the City additional funds as requested by the CITY to cover all costs and expenses associated with processing the referendum and holding the related election. Following certification of the election results, any funds remaining in the Referendum Deposit account shall be returned to the OWNER. (d) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits, final approval for occupancy by the City, and acceptance by CITY or applicable public agency of all required dedications. Tennination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Agreement that has occurred prior to such tennination or with respect to any obligations that are specifically set forth as surviving this Agreement. Upon such termination, any Development Impact Fees paid by OWNER to CITY for residential units on which construction has not yet begun shall be refunded to OWNER by CITY. 2.8 Notices. (a) As used in this Agreement, 'notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. (b) All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) on the date of delivery shown in the records of the telegraph company after transmission by telegraph to the recipient named below. All notices shall be addressed as follows: If to CITY: 55394.00002U 1553187.10 ME 75E-134 City Clerk 20 Civic Center Plaza, 81h Floor PO Box 1988 M-30 Santa Ana, Ca 82702 Copy to: City Manager City Attorney Executive Director of Planning and Building Agency If to OWNER: AC 2525 MAIN, LLC 240 Newport Center Drive, Suite 200 Newport Beach, CA. 92660 Atm: Manager Telephone: r 1 Facsimile: r 1 (c) Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a parry, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. DEVELOPMENT OF THE PROPERTY. 3.1 Rights to Develop. Subject to the ternls of this Agreement including the Reservation of Rights, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, this Agreement. Except as expressly provided otherwise herein, the Project shall remain subject to all Existing Land Use Regulations and Development Approvals. Except as otherwise provided in this Agreement, and notwithstanding the authority of the CITY to further revise the Land Use Regulations pursuant to Govetmnent Code section 65866, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Land Existing Use Regulations and Development Approvals. OWNER shall comply with all mitigation measures required to be undertaken pursuant to any document prepared in compliance with the California Environmental Quality Act with respect to the Project. 3.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement including the Reservation of Rights, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property shall be the Existing Land Use Regulations and Development Approvals. In connection with any subsequently adopted Project Approvals and except as specifically provided otherwise herein, CITY may exercise its discretion in accordance with the Land Use -9- 55394.00002n1553187.10 75E-135 Regulations then in effect, as provided by this Agreement, including, but not limited to, the Reservation of Rights. CITY shall accept for processing, review and action all applications for subsequent Project Approvals, and such applications shall be processed in the same manner and the CITY shall exercise its discretion, when required or authorized to do so, to the same extent it would otherwise be entitled in the absence of this Agreement. 3.3 Reservation of Rights. 3.3.1 Limitations. Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following regulations shall apply to the development of the Property: (a) Processing fees and charges of every kind and nature imposed by CITY to cover the actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued. (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. (c) Regulations, policies and rules governing engineering and construction standards and specifications applicable to public and private improvements, including, without limitation, all uniform codes adopted by the City and any local amendments to those codes adopted by the CITY, including, without limitation, the CITY's Building Code, Plumbing Code, Mechanical Code, Electrical Code, and Grading Ordinance. (d) Regulations imposing Development Exactions; provided, however, that no such Development Exaction adopted after the Effective Date shall apply to development of the Property under this Agreement unless agreed to by OWNER. In the event any such subsequently adopted Development Exaction, agreed to by OWNER, fulfills the same purposes, in whole or in part, as the fees set forth in Section 4 of this Agreement, CITY shall allow a credit against such subsequently adopted Development Exaction for the fees paid under Section 4 of this Agreement to the extent such fees fulfill the same purposes. (e) Regulations that may be in material conflict with this Agreement but that are reasonably necessary to protect the residents of the project or the immediate community from a condition perilous to their health or safety. To the extent possible, any such regulations shall be applied and construed so as to provide OWNER with the rights and assurances provided under this Agreement. (f) Regulations that are not in material conflict with this Agreement or the Development Plan. Any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Property shall be deemed to materially conflict with the Development Plan and shall therefore not be applicable to the development of the Property. (g) Regulations that are in material conflict with the Development Plan; provided OWNER has given written consent to the application of such regulations to development of that Property in which the OWNER has a legal or equitable interest. (h) Regulations that impose, levy, alter or amend fees, or charges relating to consumers or end users, including, without limitation, trash can placement, service charges and -10- 55394.00002%31553187.10 10- 55394.0000?U1553187.10 75E-136 limitations on vehicle parking. (i) Regulations of other public agencies, including Development Impact Fees adopted or imposed by such other public agencies, although collected by CITY. 3.3.2 Subsequent Project Approvals. This Agreement shall not prevent CITY, in acting on subsequent Project Approvals and to the same extent it would otherwise be authorized to do so absent this Agreement, from applying subsequently adopted or amended Land Use Regulations that do not materially conflict with this Agreement. 3.3.3 Modification or Suspension by State or Federal Law. In the event that State, County or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to tate extent such laws or regulations do not render such remaining provisions impractical to enforce. 3.3.4 Intent. The parties acknowledge and agree that CITY is restricted in its authority to limit certain aspects of its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power that cannot be or are not expressly so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to CITY all such power and authority that cannot be or is not by this Agreement's express terms so restricted. 3.4 Reeulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of CITY may possess authority to regulate aspects of the development of the Property separately from or jointly with CITY and this Agreement does not limit the authority of such other public agencies. 3.5 Tinning of Development. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the parties in that case to provide for the tinting of development resulted in a later -adopted initiative restricting the timing of development to prevail over the parties' agreement, it is the specific intent of the Parties to provide for the tinning of the Project in this Agreement. To do so, the Parties acknowledge and provide that OWNER shall have the right, but not the obligation, to complete the Project ht such order, at such rate, at such times, and in as many development phases and sub -phases as Owner deems appropriate in its sole subjective business judgment 3.6 Conditions. Covenants and Restrictions 3.6.1 OWNER shall have the ability to reserve and record such covenants, conditions, and restrictions (CC&Rs) against the Property as OWNER deems appropriate, in its sole and absolute discretion. Such CC&Rs may not conflict with this Agreement or the General Plan. Before recording any CC&Rs, OWNER shall provide a copy of the CC&Rs -11- 55394.0000201553197.10 75E-137 to the CITY for review and approval by the City Attorney, whose approval shall not be unreasonably withheld. 3.6.2 The City Attorney's review shall be limited to determining if the CC&Rs substantially comply with this Agreement and Project's conditions of approval as approved by the City Council and that the CC&Rs incorporate and reference the following information regarding the approved development: (a) The Parking Management Plan (b) The Overcrowding Mitigation Implementation Plan (c) The Property Maintenance Plan (d) The project Conditions of Approval 3.6.3 Within thirty (30) days after receiving a copy of the proposed CC&Rs from OWNER, the City Attorney shall provide OWNER with either (i) a statement that the CC&Rs comply with this Agreement ("CC&R Approval") or (ii) written comments identifying each aspect of the CC&Rs which the City Attorney believes not to be in compliance with this Agreement (a "Statement of Non -Compliance"). If the City Attorney fails to provide OWNER with either CC&R Approval or a Statement of Non -Compliance within thirty (30) days following a written request by OWNER, City shall be deemed to have approved the CC&Rs and OWNER may record the CC&Rs against the Property. If the City Attorney provides a Statement of Non -Compliance, OWNER shall have thirty (30) days in which to respond to the Statement of Non -Compliance. Upon submittal of OWNER'S response, the procedure described above for the initial submittal and City Attorney review of proposed CC&Rs shall again be followed. This procedure shall be followed until OWNER either (1) receives CC&R Approval, (2) submits the compliance issues to binding arbitration pursuant to the rules of the American Arbitration Association, (3) files an action for declaratory relief in Orange County Superior Court seeking a judicial determination of the compliance of the proposed CC&Rs, or (4) agreement is otherwise reached between the Parties allowing for the recording of the CC&Rs. The CC&Rs may run with the land and bind OWNER'S successors and assigns. Except as provided above, any dispute between the Parties regarding the CITY'S approval or rejection of the CC&Rs shall be subject to ittnmediate and binding arbitration pursuant to the rules of the American Arbitration Association. 3.7 Moratoria. Except as specifically set forth in this section, City agrees that no moratorium or other similar limitation (whether relating to the rate, timing, or sequencing of the development of the Project or any part thereof and whether or not enacted by local initiative or otherwise) affecting subdivision/tract traps, grading or building permits, occupancy certificates, or other entitlements approved, issued, or granted within the City, after the Effective Date of this Agreement, shall apply to the Project. OWNER acknowledges and agrees that the provisions hereof shall not preclude the application to the Project of a moratorium or other similar limitation (of the type described in the preceding sentence) enacted in order to protect an imminent threat to the public health or safety. 3.8 Development Agreement/Project Approvals. In the event of any inconsistency between any Existing Land Use Regulation and a Project Approval, -12- 55394.00002%31553187.10 75E-138 the provisions of the Project Approval shall control. In the event of any inconsistency between any Existing Land Use Regulation, any Project Approval and this Agreement, the provisions of this Agreement shall control. 3.9 LEED Certification. OWNER shall design and construct the building to achieve not less than a Leadership in Energy and Environmental Design ("LEED") Silver Standard equivalent. OWNER shall focus design efforts to ensure the Project mects the enviromnental needs of the community, as well as, the Project, itself, maintains an eco -friendly design. It is anticipated the Project will include, but is not limited to, drought tolerant landscaping and irrigation systems, solar and EV systems, and reclaimed water. 4. PUBLIC BENEFITS. 4.1 Intent. The Parties acknowledge and agree that development of the Property will result in substantial public needs that will not be fully met by the Development Plan and further acknowledge and agree that this Agreement confers substantial private benefits on OWNER that should be balanced by commensurate public benefits. 4.2 Public Benefits. OWNER has committed by this Agreement to contribute to the acquisition, construction and maintenance of certain "Public Benefits" as provided below 4.2.1 CITY Facilities. OWNER shall provide the following benefits towards the acquisition, construction and maintenance of the CITY Facilities, as follows: (a) Public Art. OWNER shall create, install, and maintain a public art project with a value equivalent to one-half of one percent (0.5%) of the total construction cost of the Project. Total construction cost shall mean all design, engineering and construction costs. OWNER shall prepare and submit to the City, no later than one hundred eighty (180) days before final approval for occupancy or the issuance of a certificate of occupancy, a public art plan that is consistent with Chapter 15 of the Citywide Design Guidelines, Public Art Guidelines. The approved art shall be installed prior to final approval for occupancy or the issuance of a Certificate of Occupancy for the Project. (b) Santiago Park Maintenance & Improvement Contribution. Within One Hundred Eighty (180) days after the issuance of the fust building permit for the Project, OWNER shall either pay One Million Four Hundred Thousand Dollars ($1,400,000) to the City for the construction of the Park Improvements (Park Improvement Funds) or Owner shall be authorized by the City to construct the Park Improvements at Owner's sole cost and expense up to One Million Four Hundred Thousand Dollars ($1,400.000). OWNER shall pay to City prior to the issuance of the fust building permit for the Project, One Hundred Thousand Dollars ($100,000) for the maintenance of the neighborhood entry monuments The Park Improvement Funds are for the purpose of completing park improvements including, but not limited to, installation of irrigation, landscaping, security lighting and bike trail enhancements ("Park Improvements") as described in more detail on Exhibit G as well as providing for maintenance of neighborhood entry monuments. If OWNER constructs the Park Improvements, OWNER shall -13- 55394.0000201553187.10 75E-139 meet and confer with the City upon receiving bids for the Park Improvement design and construction. If the anticipated costs will exceed One Million Four Hundred Thousand Dollars, OWNER and City shall work in good faith to value engineer the design and construction to ensure the Park Improvements are completed within the One Million Four Hundred Thousand Dollar budget. (c) Park Santiago Neighborhood Benefits. OWNER has met with residents of Park Santiago and has agreed to provide the following amenities: (1) Limited access to onsite amenities in a manner to be determined by OWNER as reasonably acceptable to Planning and Building Agency Executive Director. (2) Amazon locker location (3) Security patrol in the residential neighborhood and Santiago Park a. Patrol area: Project, Park Santiago and Park Santiago area as depicted on attached Exhibit "H" b. Type of patrol: Periodic roving security twenty four (24) hours a day. C. Term: 55 years subject to annual review during which review it may be determined that such term shall end earlier. (4) Neighborhood entry monuments will be installed by OWNER. (d) Park Santiago Historic District. City shall survey residents to determine community support for the designation of the Santiago Park Neighborhood Association as a historical district on the City's Historical Register. If, in the City's reasonable opinion, the community is generally supportive of pursuing the historic register designation, Owner shall pay all costs and expenses associated with processing the application, including reimbursing the City for costs incurred conducting the survey and any environmental review, up to a not to exceed amount of one hundred fifty thousand dollars ($150,000). (e) Park Santiago Public Improvements and Traffic Calming. Subject to the approval by the Executive Director of Public Works Agency and the Executive Director of Planning and Building Agency and meeting City design specifications and standards, OWNER shall design and construct the public improvements identified below prior to final approval for occupancy or the issuance of a Certificate of Occupancy. Owner shall be solely responsible for all aspects of the public improvements including, but not limited to, the analysis, design, engineering, construction and inspection/administration of: (1) Santiago Park neighborhood improvements at up to three locations on Edgewood and/or Bush Street to achieve traffic calming . hnprovements may be based on -14- 55394.00002k31553187.10 75E-140 input from the Santiago Park Neighborhood Association and may include, but not be limited to, bulb - outs, traffic circles and medians within the neighborhood streets. (2) Santiago Park Neighborhood entry monuments at Main Street/Edgewood Road, Santa Clara Avenue/Lincoln Avenue, and Santiago Street/171s Street based on input from the Santiago Park Neighborhood Association. (3) Street lighting enhancements by replacing all existing non LED light and/or fixture with LED light and/or fixture throughout the Santiago Park Neighborhood. (4) A street light at the Santiago Park Drive / Main Street intersection. (5) Decorative concrete pavement within the intersection of Main Street/Walkie Way and Main Street/Santiago Park Drive. 4.2.2 Public Improvement Maintenance Agreement. In the event the land swap between OWNER and CITY, that is currently being considered, does happen, then prior to receipt of final approval for occupancy or the Certificate of Occupancy, or such later date as the land swap is completed, OWNER shall enter into a Maintenance Agreement for OWNER to maintain, pursuant to CITY standards, the Santiago Park Drive improvements installed pursuant to this Agreement including, but not limited to, roadway pavement, curb and gutter, sidewalk, trees, tree wells, and landscaping. Such Maintenance Agreement, if executed, shall terminate no later than 55 years following the Effective Date. 4.2.3 Graffiti Removal. OWNER shall also install and maintain graffiti protection on new surfaces and shall, within 24 hours of discovery of graffiti, cause it to be removed and associated restorations completed throughout the Project. 4.3 Development Imnact Fees. 4.3.1 Amount of Fee. The Development Impact Fees set forth in Exhibit "D" shall be charged to the Project. These fee amounts are estimated and will be subject to change based on the fee rate applicable at the time of issuance of the Building Permit. 4.3.2 Time of Payment. The fees required pursuant to Subsection 4.3.1 shall be paid to CITY prior to the issuance of building permits for each residential unit. No fees shall be payable for building permits issued prior to the Effective Date of this Agreement, but the fees required pursuant to Subsection 4.3.1 shall be paid prior to the re - issuance or extension of any building pentut for a residential unit for which such fees have not previously been paid. 4.3.3 Fee Credits. OWNER shall be entitled to credit against the fees required pursuant to Subsection 4.2.1 for the dedication of land, the construction of improvements or the payment of fees as specifically set forth in Exhibit "E. 4.3.4 Future Development Impact Fee Program Changes. The Parties hereby agree that, in addition to the Development Impact Fees included in Exhibit "D", the Project shall be subject to any increase in fees, or amendment or alteration, of Development Impact Fee programs in effect on the Effective Date. -15- 55394.00002331553187.10 75E-141 4.3.5 Prepayment. In no event shall the prepayment of any Development Impact Fees required hereunder establish a vested right on the part of OWNER or any other owner of the Property or any person or entity with an interest therein to develop the Project or the Property following the expiration, cancellation or termination of the Term of this Agreement. Following the expiration, cancellation or termination of this Agreement, all Development Impact Fees then in effect shall be applicable to the Project and Property notwithstanding any provision of this Agreement and notwithstanding the prepayment of the Development Impact Fees set forth in Exhibit "D", any increase or amendment of any Development Impact Fee, or any combination thereof. Nothing contained in this Subsection 4.3.5 shall be construed as limiting the right of OWNER to a credit against any Development Impact Fees as set forth in Section 4.3.3 hereof. 4.4 Dedication of On -Site Easements and Rights of Way. OWNER shall dedicate to CITY all on-site rights of way and easements deemed necessary for public improvements as indicated on the approved Development Plan for the Project within 15 days of receipt of written demand from CITY. 4.5 Timing of Construction of Off -Site Infrastructure. Approval of any issuance of final approval for occupancy on the Property shall be conditioned upon CITY's determination, in its sole discretion, that sufficient progress is being made on construction of off-site infrastructure serving development of OWNER's Property. 4.6 Santiago Park. OWNER has made certain requests of CITY related to the use of Santiago Park for ingress and egress to the Project. Lr consideration for the use of certain roadways to access the Project, as more particularly described/depicted on Exhibit F, OWNER shall do the following: 4.6.1 Any park property utilized for access into the Project shall be replaced with equivalent land (equal in size and appraised value) as required by the LWCF Grant Conditions. 4.6.2 OWNER shall, at OWNER's sole cost and expense, prepare any and all documents required by the LWCF Grant for review and submission to the State of California; 4.7 Houshig Opportunity Ordinance. Project shall comply with tate requirements of the Housing Opportunity Ordinance (the "HOO") in effect on the Effective Date. 4.8 Overcrowding Mitigation Implementation Plan. The City of Santa Ana has one of the highest average number of people per household in the nation at 4.34 people per household. Owner commits to limit occupancy of the residential units within the project site to levels in compliance with local, state and federal fair housing standards. Prior to applying to the City for occupancy permit, the Owner shall submit to the City an Overcrowding Mitigating Implementation Plan. Prior to changing or revising the implementation plan, Owner shall provide a 60 -day minimum written notice to the City Community Development Agency and the Planning and Building Safety Agency informing of any proposed changes or revisions. -16- 55394.00002U1553187.10 75E-142 4.9 Local Live -Work Preference. Prior to issuance of any Building Permits, OWNER shall develop and submit to the City Manager or his/her designee, a local live -work plan for the Project targeting, to the extent feasible and consistent with state and federal fair housing laws, a preference or priority for persons who currently either live or work in the City of Santa Ana for the rental of units at the Project. 4.10 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does not delay the overall project development schedule. Prior to issuance of any Building Permits, Developer shall develop and submit to the Planning Agency (the "PBA") a local sourcing plan for the Project targeting, to the extent feasible, the hiring of qualified workers, construction contractors, or the purchasing of goods locally within the City of Santa Ana. The plan must be reviewed in a timely manner and approved by the PBA and be implemented for the construction of the project prior to issuance of any Building Permits. Such approval shall not be unreasonably withheld. 5. FINANCING & MAINTENANCE OF PUBLIC IMPROVEMENTS AND SERVICES OWNER may propose, and if requested by CITY shall cooperate in, the formation of any special assessment district, community facilities district or alternate financing mechanism to pay for the construction and/or maintenance and operation of public infrastructure facilities required as part of the Development Plan by providing up to 550,000 toward the costs of CITY in preparing a study to determine the need for any such district or alternate financing mechanism. To the extent any such district or other financing entity is formed and sells bonds in order to finance such reimbursements, OWNER may be reimbursed to the extent that OWNER spends funds or dedicates land for the establishment of public facilities. If such a district or other financing entity is proposed OWNER agrees not to oppose such formation. Notwithstanding the foregoing, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring CITY or the City Council to form any such district or other financing entity or to issue and sell bonds. In addition, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring OWNER to vote in support of or annex to such district or other financing entity. It shall be the sole right of OWNER to determine whether to be in or out of any such district or other financing entity. 6. REVIEW FOR COMPLIANCE. 6.1 Periodic Review. The CITY shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the compliance by OWNER with the terms of the Agreement. OWNER shall submit an Annual Monitoring Report, in a form acceptable to the City Manager, within thirty (30) days after written notice from the City Manager. The Annual Monitoring Report shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council. -17- 5539;.0000231553187.10 75E-143 6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time. The City Manager, or his or her designee, shall conduct such special reviews. 6.3 Procedure. (a) During either a periodic review or a special review, OWNER shall be required to demonstrate good faith compliance with the terns of the Agreement. The burden of proof on this issue shall be on OWNER. (b) Upon completion of a periodic review or a special review, the City Manager, or his or her designee, shall submit a report to the Planning Commission setting forth the evidence concerning good faith compliance by OWNER with the terms of this Agreement and his or her recommended finding on that issue. (c) If the Planning Commission finds and determines on the basis of substantial evidence that OWNER has complied in good faith with the terms and conditions of this Agreement, the review shall be concluded. (d) If the Planning Commission finds and determines on the basis of substantial evidence that OWNER has not complied in good faith with the terms and conditions of this Agreement, the Commission shall provide written notice to OWNER of such findings setting forth the stature of the problem and the actions, if any, required by OWNER to cure such problem and, where the problem can be cured, OWNER has failed to take such actions and cure such problem within thirty (30) days after the effective date of such notice or, in the event that such problem cannot be cured within such thirty (30) day period but can be cured within a longer time, has failed to commence the actions necessary to care such problem within such thirty (30) day period and to diligently proceed to complete such actions and cure such problem. If OWNER fails to take the necessary actions, the Commission may recommend to the City Council modification or termination of this Agreement. OWNER may appeal a Planning Commission determination pursuant to this Section 6.3(d) pursuant to CITY's rules for consideration of appeals in zoning matters then in effect. Notice of default as provided under Section 7.3 of this Agreement shall be given to OWNER prior to or concurrent with proceedings under Section 6.4 and Section 6.5. 6.4 Proceedings Upon Modification or Termination. If, upon a finding under Section 6.3, CITY determines to proceed with modification or termination of this Agreement, CITY shall give written notice to OWNER of its intention so to do. The notice shall be given at least ten (10) calendar days prior to the scheduled hearing and shall contain: (a) The time and place of the hearing; (b) A statement as to whether or not CITY proposes to terminate or to modify the Agreement; and, (c) Such other inforuation that the CITY considers necessary to inform OWNER of the nature of the proceeding. 55394.00002\31553187.1 0 6.5 Hearing on Modification or Termination. At the time and place set for the hearing on modification or termination, OWNER shall be given an opportunity to be heard. OWNER shall be required to demonstrate good faith 75E-144 compliance with the terms and conditions of this Agreement. The burden of proof on this issue shall be on OWNER. If the City Council finds, based upon substantial evidence, that OWNER has not complied in good faith with the terms or conditions of the Agreement, the City Council may terminate this Agreement or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the CITY. The decision of the City Council shall be final. 6.6 Certificate of Agreement Compliance. If, at the conclusion of a Periodic or Special Review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance ("Certificate") to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and City Council that: (1) this Agreement remains in effect; and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. t 6.6.1 Whether or not the Certificate is relied upon by assignees or other transferees or OWNER, CITY shall not be bound by a Certificate if a default existed at the time of the Periodic or Special Review, but was concealed from or otherwise not known to the City Manager or City Council. 6.7 Conditions of Discretionary Approvals. The requirements imposed as conditions of any discretionary approval received through the City's existing regulatory process shall be governed by the terms of those approvals, and in no event shall such conditions be affected by the termination, cancellation, rescission, revocation, or default or expiration of this Development Agreement (although such conditions must comply with the Applicable Rules). The Conditions of approval are incorporated herein by reference an as attached as Exhibit "I". DEFAULT AND REMEDIES. 7.1 Remedies in General. It is acknowledged by the parties that CITY would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that CITY shall not be liable in damages to OWNER, or to any successor in interest of OWNER, or to any other person, and OWNER covenants not to sue for damages or claim any damages: (a) For any breach of this Agreement or for any cause of action that arises out of this Agreement; or (b) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or -19- 55394.0000231553187.10 75E-145 (c) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement. 7.2 Release. Except for non -monetary remedies, OWNER, for itself, its successors and assignees, hereby releases CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon CITY because it entered into this Agreement or because of the terms of this Agreement. OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subjec f to foregoing waivers and releases. 0 m S Initials 7.3 Termination or Modification of Aereement for Default of OWNER. CITY may terminate or modify this Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default"); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 7.4 Termination of Agreement for Default of CITY. OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured -20- 55394.00003/1553187.10 75E-146 within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 8. LITIGATION. 8.1 Third Party Litigation Concerning Agreement. OWNER shall defend, at its expense, including attorneys' fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any permit or entitlement granted pursuant to this Agreement. CITY shall promptly notify OWNER of any claim, action, proceeding or determination included within this Section 8.1, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action, proceeding or determination, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action, proceeding or determination. 8.2 Environmental Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted upon any act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys' fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action. 8.3 Reservation of Rights. With respect to Section 8,1 and Section 8.2 herein, CITY reserves, the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense; provided, however, that the indemnifying party shall reimburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attorneys' fees, upon billing and accounting therefor. 8.4 Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, OWNER, on behalf of itself and its successors in interest, hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Date. Such agreement and covenant includes, without limitation, the covenant against any direct suit by OWNER or its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to CITY by OWNER or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent jurisdiction. OWNER hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. -21- 55394.00002\3 1553187,10 75E-147 OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1543, which is set forth below: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WI4ICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." By initialing below, OWNER here y waives the provisions of Section 1542 in colmection with the matters that are the subject he oregoing waivers and releases. O 'S Initials 8.5 Survival. The provisions of Sections 8.1 through 5.4, inclusive, shall survive the termination of this Agreement. 9. MORTGAGEE PROTECTION. The Parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property trade in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's obligations under this Agreement. (c) If CITY timely receives a request from a mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or decd of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other -22- 55394,00002U 1553 1 R7.1 0 22_55394,0000201553137.10 75E-148 provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and further provided that any sale, transfer or assigmuent by any Mortgagee in possession shall be subject to the provisions of Section 2.5 of this Agreement. 10. MISCELLANEOUS PROVISIONS. 10.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the Orange County Recorder by the Clerk of the City Council within ten (10) days after the City enters into the Agreement, in accordance with Section 65868.5 of the Government Code. If the Parties to this Agreement or their successors in interest amend or cancel this Agreement, or if the CITY ternunates or modifies this Agreement as provided herein for failure of the OWNER to comply in good faith with the terms and conditions of this Agreement, the City Clerk shall have notice of such action recorded with the Orange County Recorder. 10.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 10.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4 of this Agreement, including the payment of the Development Impact Fees set fortis therein, are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions, and therefore in the event such provisions are determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever. 10.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California, with venue in Orange County. This Agreement shall be construed as a whole according to its fair language and common [meaning to achieve the objectives and purposes of the parries hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. -23- 55394.0000271553187.10 75E-149 55394.00002\31553187.10 10.5 Section Headines. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 10.6 Singular and Plural. As used herein, the singular of any word includes the plural. 10.7 Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one OWNER, all obligations of such OWNERS under this Agreement shall be joint and several, and the default of any such OWNER shall be the default of all such OWNERS. Notwithstanding the foregoing, no OWNER of a single lot that has been finally subdivided and sold to such OWNER as a member of the general public or otherwise as an ultimate user shall have any obligation tinder this Agreement except as expressly provided for herein. 10.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 10.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 10.10 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by: (1) strikes, lockouts or labor disputes; (2) inability to obtain labor or materials or reasonable substitutes therefor, (3) inclement weather which delays or precludes construction; (4) acts of God, including but not limited to earthquakes, or the public enemy or civil conunotion; (5) condemnation, (6) fire or other casualty; (7) shortage of fuel, electricity or natural gas; (8) action or nonaction of public utilities or of local, state or federal governments, affecting the work, including, but not limited to, any delays in the permitting process as a result of the action or inaction or such governmental authorities; (9) criminal acts or acts of terrorism; or (10) other conditions similar to those enumerated above which are beyond the reasonable anticipation or control of such Party, or other causes beyond the Party's reasonable control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, , provided that the Term of this Agreement shall not be extended under any circumstances for more than five (5) years. 10.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent -24- 75E-1 50 24_ 75E-150 55374.00ooz31553187.10 performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 10.13 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing sonic act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) ruts with the Property and each portion thereof; and (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof. 10.14 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 10.15 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto µ-dive all provisions of law providing for the filing, removal or change of venue to any other court. 10.16 Project as a Private Undertakine. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property and the owner of such property. 10.17 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute and file or record such required instruments and writings and take any actions as may be reasonably necessary under the teens of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 10.18 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. 10.19 Aeent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California. or it is a foreign corporation, then in any such event, OWNER shall file -25- 75E-151 5s394.oa002u tss3ts7. to with the City Manager, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process and such service shall constitute valid service upon OWNER. OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. 10.20 Certificate of Compliance. At any time during the term of this Agreement, any lender or either Party may request either Party to this Agreement to confine that (1) this Agreement is unmodified and in full force and effect (or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications); (2) to the best of such Party's knowledge, no defaults exist under this Agreement or if defaults do exist, to describe the nature of such defaults; and (3) any other information reasonably requested. Each Party hereby agrees to provide a Certificate to such lender or other Party within thirty (30) days of receipt of the written request therefor. 10.21 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind OWNER to the performance of its obligations hereunder. -26- 75E-152 IN WITNESS WHEREOF, the parties hereto have executed this Development Agreement on the last day and year set forth below. OWNER AC 2525 MAIN, LLC, a California limited liability company By:AC 5 al Manager LLC Its: Manager Dated: CITY CITY OF SANTA ANA, a California municipal corporation Mayor Dated: ATTEST: By: City Clerk APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP City Attorney -27- 55394.0000Z31553187. 10 27_55394.0000231553187.10 75E-153 55394.00002131553187. 10 EXHIBIT "A" (Legal Description of the Property) 75E-154 CHICAGO ,TILE COMPANY COMMERCIAL DIVISION 72760-954—LT2 RECORDING REQUESTED -BY AND WHEN RECORD41) MAIL TO AND MAIL TAS[ STATEMENTTO. AC 2525 Main LLC do Animus Capital 240 Newport Center Drive, Suite 200 Newport Beach; .Ca. 92660 003-0111.-25., 30 :& 26 WE HEREBY CERTIFY THAT THIS IS FULL, TRUE AND CORRECT COPY OF THE ORIGINAL DOCUMENT AS THE SAME APPEARS IN THE OFF OF THE COUNTY RECORDER OF ST CALIFORNIA, REC DED ., ATE 17 IN BOOK OF OFFICK RECORDS ATFAG ERIALN044�� G URANCE CWW . (Space GRANT33EED TIB UNDERSIGNED GRANTOR DECLARES, Line for Recorder's Use DOCUMENTARY TRANSFER TAX is $16,&50.50. CITY TAX $ -0-. Computed on full value of property conveyed, City of 5anta Ana. NOW THERtFORE,XOILVALTIM R$CEIVMD, Wells Fargo Bank, National Associatiml ("Grantor") herebygtants to AC2525 Main, LLC,.a Delaware limited liability company ("Grantee");that certain real property as fully described in Schedule 1 att>iched heretoatid by -this reference incorporated (the "Real Property'), This deed is an absolute conveyance, Grantor having1 ansferrcd said Reai Property' to the Grantee for-fairandadequate onsiderption. b#0199t 75E-155 IN WITNESS Wlj9 EOF the Grantor has executed,this:Gran teed as'ofthis. Aay of August MIT WELLS.FARGOBANK NATIONAL ASSOCIATION WE Title: Signature Page Grant Deed 75E-156 ACKNOWLEDGMENtg A Notary Public or otheroffieeccompicting this certlfieate verifies only.thc identity of the individual whosigned the document to which this certificate is attached, and noi:0tetmthfulness, accuracy; or validityofthat document. STATE OF MlNT-111ih ) COUNTY 017101" h'at1i; W p .) Oh . Pu -oil A 2017, before me, �IUt1�SgU.G tr� (insert name of,.riotary public), � Al Mary Public, personally appeared _ hf14��h` P1 b34. in'tl ARAN WMI who proved to me on the basis of satisligoory evldenee to bb.the'pers6n(s) whose namc(s).islare subscribed the within°Instrument and acknowledged to me that.hefshe/they executed the.. same iriNslhcr/their authorized capacity(ie3),and that by his(Iti'I/their signatdra(s) on the instrument the person(s), or the entity upon behalf of which the person(s).acied, 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 had and official seal. vANt sA coacucHip _____.... ion'9-2079y]3' i Ns a y anise ca i Notary Publi san . Eipl eo County,p Y6, wy Comm. ExD�tas Sep 26,2018 [Seal] Who document to. STATE OF ) • ss: COUNTY OF 0if 2017, before me,(insert nem-,of`notary public); -Notary personally appeared . who proved to'me•on the basis of satisfactory evidence to be the persons) whose name(s) istare subscribed to the withih'instrument and' acknowledged tome that:he/she/they executed the same irr his/her/their authorized capacity(ies), and'.that;byhis/her/their signature(p) on.the instrument the person(s); or the, entity, upon behalf of Which the perton(s) acted, exec4led'themstrum6tit. I certify under PENALTY OF PEPJUKY under the laws of the State of California thtai the foregoing j aragraph is true and correct. WITNESS my hand and official seal. Notary, Public i+aroisft 75E-157 .Grant Deed Schedule I Legal Description THE LAND REFERRED TO HEREINBELOW. IS SITUATED IN TELE CITY -OF SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: (003410-28) THAT PORTION OF CERTAIN LANDS ALLOTTED TO GLASSELL AND CHAP.MAN, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS DESCRIBED IN THE FINALDECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, RECORDED SEPTEMBER 12,1868, IN BOOK "B" PAGE 410, OF JUDGMENTS OFTHE.DISTRICT COURT OF THE. 17TH JUDICIAL DISTRTCT"OF LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE POINT OF INTERSECTION OF THE CENTER LINE OF MAIN STREET WITH THE WESTERLY EXTENSION OF THE NORTHERLY LfiTE OF TRACT NO. 139, IN TM CITY OF SANCA.ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN .ON A.MAP THEREOFRECORDED IN BOOK I 1 PAGE 36 OF MISCELLANEOUS MAPS, RECORDS OF $AID ORANGE COUNTY, AND RUNNING THENCE NORTH 00 45' EAST ALONG SAID CENTER LINE OF -MAIN STREET, 14$.26 FEET; THENCENORTH 760 22' EAST 121.29 FEET; TI-IENCE NORTH 56' 59' EAST 393.56 FEET TO THE EAST LINE OF THAT CERTAIN PARCEL OF LAND CONVEYED TO W. L. GRUBB AND WIFE, BY DEED RECORDED NOVEMBER.20,1920IN BOOK 390 PAGE 10 OF DEEDS, RECORDS OF SAID ORANGE COUNTY; TI•IENCESOUTHERLY ALONG SAID EAST LINB,391.91 FEET, MORE ORLESS, TO THE NORTHEAST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO W. L. GRUBB AND WIFE, BY DEED RECORDED FEBRUARY 14, 192,1, IN BOOK 392 PAGE 83, OF DEEDS, RECORDS OF"SAID ORANGE COUNTY; THENCE WESTERLY ALONG THENORTIf LINE OF SAID LAST MENTIONED PARCEL OF LAND AND ALONG THE NORTHERLY LINE OF SAll) TRACT NO. 139, AND THE WESTERLY EXTENSION THEREON TO'THE POINT OF BEGINNING. EXCEPTING THEREFROM THE WESTERLY 52 FEET THEREOF, INCLUDED, WITHIN MAIN STREET, AS GRANTED TO THE CITY OF SANTA ANA BY DEED RECORDED JULY 30, 1973 AS INSTRUMENTNO.28274,, IN BOOK 10824 PAG$107, OF"OFFICIAL RECORDS. ALSO EXCEPT THEREFROM ANY PORTION "LYING WITHIN PARCEL-, AS DESCRIBED BELOW: ALSO EXCEPT THAT PORTION DESCRIBED AS BEGINNING AT THE S.OU'THEAS-T CORNER OF THE LAND CONVEYED TO•THE CITY OF SANTA ANA PER DEED RECORDED IN BOOK 10824 PAGE 107, OF OFFICIAL RECORDS OF ORANGE COUNTY; THENCE NORTHERLY ALONG TIME EAST LINE OF SAID LAND 75E-158 CONVEYED TO THE CITY OF SANTA ANA, NORTH 01- 45'449 EAST 151.68 FEETTO A POINT BEING DISTANT 9.54 FEET SOUTHERLY FROM THE NORTHEAST CORNER OF SAID LAND; THENCE LEAVING.SAID EAST LINE; SOUTH U0° 58' 30"EAST 1.51.80 FEET TO THENORTH LINE OF LOT 1 OF BLOCK "A" OF TRACT NO.139, AS PER MAP RECORDED IN BOQk RECORDED INBOOK 11 PAGE 36 OF MISCELLANEOUS MAPS,. RECOR'DS.OF ORANGE COUNTY; THENCE ALONG MID NORTH LINE, NORTH 88- 3748" 8°3748" WEST 7:25. FEET TO THE POW -OF BEGINNING, AS CONVEYEb O THE STATE OF CALIFORNIA BY DEEDS RECORDED APRIL 2,1993 AS INSTROMENT9 NQS. 93-Z 9530, 93-2195.31 AND 93-219532,ALL OF OFFICIAL RECORDS. PARCEL 2: (003-010-01) THAT PORTION OF CERTAIN LANDS ALLOTTED TO GLASSELL AND CHAPMAN, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE'OF CALIFORNIA; AS DESCRIBED IN THE FINAL DECREE OF PARTITION OF THE RANC110 SANTIAGO DE SANTA ANA, RECORDED SEPTEMBER 12,1868, IN BOOK "B" PAGE 410, OF JUDGMENTS OF THE DISTRICT COURT OF THE 17TH JUDICIAL DISTRICT OF LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT INTHE CENTER OF EDGEWOOD ROAD, 444.6 FEET EAST OF THE INTERSECTION OF THE' CENTER LINES OF EDGEWOOD ROAD AND MAIN STREET; RUNNING THENCENORTH 1 ° EAST PARALLEL WITH MAIN STREET, 686,375 FEET; THENCE NORTH 60' EAST 114:3 FEET; THENCE.SOUTH 1° WEST 743.75 FEET TO THE CENTER OF EDGEWOOD ROAD; THENCE WEST ALONG THE CENTER OF SAID EDGEWOOD ROAD 98 FEET TO THE PLACE OF BEGINNING. SUBJECT TO RESERVATION OF A STRIP OF LAND 26 FEET WIDE OFF THE SOUT.U. SIDE. FOR EDGEWOOD ROAD. PARCEL 3: (003-010-03) TI•IAT PORTION OF CERTAIN LANDS ALLOTTED TO GLASSELL AND CHAPMAN, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE; STATE QF CALIFORNIA, AS DESCRIBED. IN THE FINAL DECREE OF PARTITION OF THE RANCHO SANTTAGQ DE SANTA ANA, RECORDED SEPTEMBER 12,1868, IN BOOK "B" PAGE 410, OF JUDGMENTS OF THE DISTRICT COURT OF THE 17Th JUDICIAL DISTRICT OF LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT ATOINT IN EOGEWOOD ROAD AS CONVEYED TO THE CITY OF SANTA ANA BY DE9D R13CORDED IN BOOK 157, PAGE 223 OF DEEDS, RECORDS. OF ORANGE COUNTY, CALIFORNIA, SAID POINT BEING SOUTH 00 53' WEST 1369.04 FEET AND SOUTH 89 30-1/2' EAST 344'.7 FEET FROM A STONE MARKING THE NORTHWEST CORNER OF SECTION SDC,.TOWNSHIP FIVE.SOUTH, RANGE NINE WEST, S. B. B. & M., RUNNING THENCE NORTH PARALLEL TO THE CENTER LINE OF MAIN 15TIMMT,.259.4 FEET, THENCEEAST PARALLEL TO THE CENTERLINE OF EDGEWOOD ROAD 100FEET; THENCE SOUTH PARALLEL TO THE CENTER LINE OF 75E-159 MAIN STREET, 2$9.4 FEET AND THENCE WEST 100 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ANY PORTION THEREOF INCLUDED WITHIN THE LAND DESCRIBED IN DEED TO JOHN S. BLOWER, ETAL., RECORDED OCTOBER 29, 1957, IMBOOK 4084, PAGE 109, Of OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, PARCEL 4: AN EASEMBNT FOR DRAINAGE PURPOSES CREATED BYINSTRUMENTRECORDED MAY 6: 1981 AS INSTRUMENT NO. 7537 IN$dOK 14048 PAGE M. OF OFFICIAL RECORDS, OVER THAT CERTAIN STRIP OF LAND, 10.00 FEET WIDB,IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA; LYING 5.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE. BEGINNING AT 114E POINT OF INTERSECTIO.N. OF THE CENTERLINE OF MAIN STREET WITH THE WESTERLY ExTENSION OF THE NORTI-IERLY LINE OF TRACT NO. 139 AS SAID TRACT IS SHOWN ON A MAP RECORDED IN BOOK 11. PAGE -36 OF MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY; THENCE NORTH.D. 52' 45" EAST, ALONG SAID CENTERLINE OF MAID STREET, 148.26 FEET; THENCE NORTH -760 29'45" EAST 121.29 FEET; THENCE NORTH 57° 06'' 45 EAST 126.62 FEET' TO -GIB TRUBP61NT OYBEGINNING; THENCE NORTH 3D° 23' 10" WEST TO TEiE NORT14WESTERLY'FACE OF THE MOST SOUTHEASTERLY EXISTING CONCRETE RUBLE STORM DRAIN CHANNEL WALL, KNOWN AS SANTIAGO.CREEK PARCEL 5: (003410-25; 003-010v0; 603-010-26) LOTS 1,2, 3, 4 AND 5 OF BLOCK A OF TRACTNO. 139,.IN THE CPTY OF. SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON •A MAP THEREOF RECORDED IN BOOK 1.15 PAGE 36 OFMISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY, EXCEPTING THEREFROM TaAT PORTION INCLUDED WITHIN. THE LAND DESCRIBED IN THAT CERTAIN ORDER OF CONDEMNATION, $UI'ERIOR COURT, -CASE NO..212621, A CERTIFIED COPY` OF WHICH W RECORDED SEPTEMBER 29, 1977 IN BOOK 12397, PAGE .1.64 OF OFFICIAL, RECORDS OP SAID ORANGE COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM, THOSE PORTIONS OF SAID LANDS CONVEYED TO' THS STATE OF CALIFORNIA By DEEDS RECORDED JANUARY 14;1993 AS INSTRUMENT NO. 93-032178 AND APRIL 2, 1993 AS. INSTRUMENT NO: 93-0217354, BOTH OF OFFICIAL RECORDS OF ORANGE COUNTY. 75E-160 EXHIBIT `B" (Map of the Property) 55394.00002U 1553187.10 75E-161 EXHIBIT "C" Development Plans Development Plans and entitlement applications as presented in the City Staff Report Dated are incorporated herein by reference. Project entitlements and applications include, but may not be limited to the followhig clttitlements: 1. Development Agreement No. 2018-01 2. General Plan Amendment No. 2018-06 3. Amendment Application No. 2018-10 4. Specific Development No. 93 5. Final Environmental Impact Report No. 2018-01 s3394.00002U 1557187.10 75E-162 EXHIBIT "D" Development Impact Fees (Estimated) The estimated amount of Development Impact Fees associated with the project based upon the site plan documentation submitted as part of the Project Approvals include but are not limited to the following fees and deposits; applicable sewer fee, street fee, storm drain fee, traffic fee, deposits, and all applicable fees associated with demolition of existing structures, drainage, site development, and construction are based on actual square footage of any conunercial development and number of residential units. Based on 476 Residential Units, the Development Impact Fees are estimated at: Fee Estimated Total Sewer $365,147 Capital Facilities Capacity Charges (Orange County Sanitation District Charges) $1,106,433 Storm Drain $53,672 Traffic $629,283 Parks & Recreation $1,823,236 Fire Facilities Fee $819,020 Santa Ana Unified School Fees $2,386,928 Estimated Total $7,183,718 55374.00002131553187.10 75E-163 EXHIBIT "E" Development Impact Fees Credits, if any will be determined at time of building permit issuance and shall be incorporated herein by reference. 55394.0000213155 3187.10 75E-164 EXHIBIT "P" Santiago Park Roadway Rights (Conceptual) — Alta 51 L CE a A7 A,a A Bl AZ..B1 SI..� B1 9 7 v u ±92W SQ.FT. ` Al PROPOSED DIO BESWAPFED 70S CRYOFSAM MA ®PROPOSEDA DISEDFORFROJEC1 ENIRANCE OAIXY6'DIGJal d' 1 F� I1I `11 VeGVYO SR4E1KAl{EMC 1` I A3 t (p NNCfl.1NIN11M1PAo[NG U n THE ADDINGTON 2525 N MAN ST , 12.122018 75E-165 PAW - ilG f EXHIBIT "G" Park Design and Improvements (Conceptual) 75E-166 SANTIAGO CREEK TRAIL ACCESS CITYOFSANTAANA - 2 2_ R!'LJ 75E-167 EXHIBIT H Park Santiago Security Patrol Area Map (Conceptual) T LL 1 11 i --._j= F L TF -1fl!F 55394.00002131553197.10 75E-168 EXHIBIT I Conditions of Discretionary Approvals 2525 N. Main - Project Approval Conditions: The project is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the conditions of approval articulated in the sections below. The Applicant or Owner, or Owner's successor(s) or assignee(s) (collectively, "Applicant") with the City's consent, which shall not be unreasonably withheld, must comply with each and every condition listed below The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may also result in breach of the Development Agreement. GENERAL CONDITIONS Project Description and Entitlements: Approval of this application is to build (Insert Final Approved Project Description and specific entitlements) with such additions, revisions, changes or modifications as required by the Planning Commission as articulated in Planning Commission Resolution No. XXXX, dated XXXX. Subsequent submittals for this project shall be consistent with the Planning Commission's approval and in compliance with the applicable land use regulations of the Santa Ana Municipal Code and any applicable State law and the associated plans presented to the Planning Commission on (Insert PC hearing date) and on file with the City. 2. Acknowledgment of Conditions of Approval. The Applicant shall file an Acknowledgment of Conditions of Approval with the Planning and Building Agency within 30 days of final approval -of all resolutions. The property Applicant shall be required to record the Acknowledgment of these Conditions of Approval with the Office of the Orange County Recorder and proof of such recordation shall be submitted to the Planning and Building Agency. 3. Enforcement of Conditions. In case of violation of any of the conditions of approval of applicable law, the property owner and tenant will be issued a Notice of Correction pursuant City regulations or pursuant to applicable terms of the Development Agreement, the Maintenance Agreement, and the CC&Rs if said violation is not remedied in accordance with the specified period of time and/or subsequent violations of the conditions of approval and/or City law occurs within ninety days of any Notice of Correction, the property owner shall be held responsible to reimburse the City for all Staff time directly attributable to enforcement of the conditions of approval, mitigation measures as stipulated in the various agreements and/or City law including but not limited to, revocation of the herein approvals. 4. Project Plans. Project plans for the development shall be subject to a complete code compliance review with the Planning and Building Agency when the plans are submitted for plan check and shall comply with all applicable City of Santa Ana ordinances, regulations, and policies prior to building permit issuance, including, but not limited to, the requirements established or authorized by Chapter 8 (Building and Structures) and Chapter 41 (Zoning) of the City of Santa Ana Municipal Code. LEGAL 75E-169 5. Indemnity. The Applicant shall defend, indemnify, and hold harmless the City of Santa Ana, its agents, officers, or employees from any claim, action or proceeding against the City or its agents, officers or employees to attack, set aside, void or annul an approval of the City, its legislative body, advisory agencies or administrative officers the subject application. The City will promptly notify the Applicant of any such claim, action or proceeding against the City and the Applicant will either undertake defense of the matter and pay the City's associated legal costs, or will advance funds to pay for defense of the matter by the City. Notwithstanding the foregoing, the City retains the right to settle or abandon the matter without the Applicant's consent, but should it do so, the City shall waive the indemnification herein, except the City's decision to settle or abandon a matter following an adverse judgment or failure to appeal, shall not cause a waiver of the indemnification rights herein. 6. Approval Time Period. The approval of the entitlements herein shall be valid for a time period consistent with the Development Agreement. IMPACT FEES 7. Project Development Impact Fees. The following Development Impact Fees shall be charged to the Project. These fee amounts are estimated and will be subject to change based on the fee rate applicable at the time of issuance of the Building Permit. Fee Estimated Total Sewer $365,147 Capital Facilities Capacity Charges (Orange County Sanitation District Charges) $1,106,433 Storm Drain $53,672 Traffic $629,283 Parks & Recreation $1,823,236 Fire Facilities Fee $819,020 Santa Ana Unified School Fees $2,386,928 Estimated Total $7,183,718 8. City Invoices. All invoices the Applicant has received from the City shall be paid to a zero balance prior final approval for occupancy by the City or issuance of a Certificate of Occupancy. PROJECT DESIGN AND OPERATIONS 75E-170 9. The approved project is a multi -family apartment rental project. Any proposal in the future to convert the rental units to condominium ownership, the Owner shall comply with the requirements for a condominium project in accordance with local and state zoning and subdivision requirements. 10. Unit Mix: increase number of family units to a minimum of thirty percent (30%) of the proposed units to contain 2 & 3 bedrooms. 11. Onsite Property Manager. The Project shall include the provision to have 24-hour on-site Property Management services and personnel. Up-to-date 24-hour contact information for the on- site personnel shall be provided to the following City Agencies on an ongoing basis: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 12. Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the "EEP") from City Police and Fire Protection agencies prior to final approval for occupancy or the issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 13. Crime Free housing Plan. Applicant shall work with City Staff to develop a crime free housing policy, procedure, and design plan (the "CFH Plan") and shall submit and obtain approval from the Planning and Building Agency of the CFH Plan prior to final approval for occupancy or the issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Property Management. The approved CFH Plan shall be implemented, adhered to, and be enforced by the Project at all times. 14. Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. Prior to final approval for occupancy or the issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the "PMP") meeting the requirements of this Condition. The approved PMP shall be adhered to and be enforced by the Project at all times. 15. Good Neighbor Policy. The Applicant shall submit for review and approval by the Planning Division a good neighbor policy implementation plan that will provide a process for the neighborhood to report nuisance issues to the property management to help manage and address potential nuisance issues including but not limited to noise, lighting, property maintenance, parking overflow into the street and neighborhood, and landscape maintenance. 16. Parking Ratio. Increase number of spaces or capacity to increase the onsite ratio of parking, including the use of valet parking, to an equivalent of two (2) spaces per unit. 75E-171 17. Privacy along east property line. To ensure maximum privacy screening between the project site and the residential uses along the eastern property, the Applicant is constructing an eight (8) foot tall property line decorative block wall. In addition to this wall, and installation and maintenance of all existing mature trees along the eastern property line, all windows facing the eastern property with a direct line of sight to the adjacent properties bordering the eastern property line shall be design incorporating opaque view obscuring glass. 18. Protect and Preserve Existing Mature Trees along the Eastern Property Line. To ensure maximum privacy screening between the project site and the residential uses along the eastern property, the Applicant shall protect and preserve all existing mature trees along the east property line. 19. Protect and Preserve Existing Mature Trees on the Property not Located Along the East Property Line. To the extent feasible, the Applicant shall protect and preserve all other mature trees on the property. If the perseveration of the existing matures trees in not feasible because of the location of the approved structures on the property, the Applicant shall work with Staff to evaluate the feasibility of relocating the tree(s) to other locations on the property. 20. Edgewood Street Improvements. Only one emergency vehicular access may be permitted along Edgewood Street. No other vehicular access or curb approach openings will be approved on this street for the project. In addition, mature canopy and vertical specimen trees shall be planted along the southern property line between the building and the adjacent sidewalk to integrate the building with the adjacent single-family development across the street. 21. Property Line Wall. The project Applicant shall install an 8 -foot tall property line block wall along the entire eastern edge of the Project as part of the site construction and preparation process and prior installation of the foundation. The design of the wall shall be approved by the Planning Manager and shall be decoratively designed to include a mix of decorative materials, colors, and decorative pilasters. 22. Santiago Park Entrance and Interface. If approved by the City Council, the Applicant shall design the Project and residential units to also front onto Santiago Park, Main Street, and Santiago Street entrance. The Project fagade along Santiago Park shall be consistent with and reflect the natural, current state of the Park and include articulation of the building fagade to include open garden areas. The conceptual design is as shown in Attachment Ito these conditions. The Santiago Park Entrance design shall be subject to the review and approval of the City Planning, Public Works, and Parks and Recreation Directors to ensure compliance with the Agreement. Approval shall not be unreasonably withheld, delayed or conditioned. 23. Green Project Features. Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. The project shall obtain Silver Standard or better LEED equivalent and shall at the minimum, incorporate bike lockers, bike sharing programing, electric vehicle charging stations, rain capturing systems, grey water capturing systems, and to the extent feasible, automobile sharing programing. 24. Landscape Plan. A Landscape Plan (including Irrigation) prepared by a licensed landscape architect shall be submitted to the Planning Division prior to the issuance of building permits. The Irrigation Plan shall include an irrigation system layout with the location of controllers and points of connection with data on valve sizes and gallons per minute (G.P.M.), the size and location of sleeves and all spray heads, including the location of conventional systems and drip systems; an irrigation legend with complete specifications; irrigation notes and construction details of all 75E-172 assemblies and components; a recommended irrigation schedule, preferably on an annual basis; and a summary block on the initial page of submitted plans that will present the above information clearly and accurately. The City reserves the right to require subsequent checks, or approval of the landscape plans prior to issuance of a grading permit. 25. Water Conservation. Landscaping shall comply with the City's water conservation ordinances in accordance with SAMC Section and the State mandated Model Water Efficient Landscape Ordinance (MWELO) 2015 update. 26. Installation. Landscaping for the project shall be complete in phases by building and shall be installed and inspected prior to occupancy of units within that building. The developer shall be responsible for maintaining all common area landscaping within the development. 27. Landscape Details. The landscape plan shall include a Plant Legend containing: plant symbol, scientific name of plant material, common name of plant material, plant container size, and plant spacing. Very low, low and medium water usage plant materials are encouraged. The applicant shall construct a landscape planter along the eastern property line. In this eastern planter, a combination of vertical and canopy specimen trees shall be planted with minimum size of 60 inch box. The landscape plan shall provide a cross section showing the planter at time of planting, after five (5) years and at full maturity. The cross section shall demonstrate the landscaping will adequately screen the project from the adjacent residential uses along the eastern portion of the Property. 28. Minimum Tree Box Size. The applicant shall install minimum 36 inch box trees, when planting trees for all required trees along street setbacks, open space areas and shared parking areas. All other tree sizes may be dependent on the location, species and spacing. The final landscaping is subject to the review and approval of the Planning Manager. 29. Maintenance of existing site. The site and the public R.O.W. adjacent to any portions of the site shall be maintained in a condition which is free of debris while the property is vacant and undergoing development and during and atter the construction, addition or implementation of the entitlements granted herein. All trash and refuse shall be disposed of in dumpsters and be removed from the premises on an -as needed basis. Any surplus construction materials shall be screened from public view when not actually in use and be removed from the property upon completion of construction activities. The removal of all trash, debris, and refuse, whether during or subsequent to construction shall be done only by the property owner, the Applicant or by a permitted waste contractor, who has been authorized by the City to provide collection, transportation, and disposal of solid waste from residential, commercial, and construction areas within the City. 30. On Going Property Maintenance. Subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Developer (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project 75E-173 phasing etc.); (b) Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the Parking Management Plan, enforcement of the Overcrowding Mitigation Implementation Plan, and/or restrictions on certain uses, etc...) (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs and maintenance, as applicable; (d) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon at all times (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Developer and the owner of the property are different (e.g., if the applicant is a tenant or licensee of the property or any portion thereof), both the applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. (f) The maintenance agreement shall further provide that any party responsible for complying with its terns shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement. (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property and a 50% administration fee. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and expense incurred by the City and a 50% administration fee. (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of final approval for any construction permit related to this entitlement. LIGHTING 31. Site and Building Lighting. The developer shall submit for review by the Planning Division and the Engineering Department, the design and specifications for all proposed lighting fixtures proposed for the buildings, drive aisles, parkways, parking areas, pathways, and surrounding areas within the development. The fixtures shall be reviewed for quality, aesthetics, illumination values, sustainability values such as LED and shall be decoratively and architecturally consistent with the 75E-174 building design. The number, location, height, style and design shall be reviewed and approved by the Planning Division and Engineering Department prior to issuance of building permits. UTILITIES 32, Undergrounding of Utilities. All utility service lines shall be underground. This includes all existing above ground wires that cross over the property that feed adjacent properties. 33. Composite Utility Plan. The applicant shall submit a composite utility plan depicting the location of all above ground utility appurtenances. The exact location of the equipment shall be approved by the Planning Division, during the plan check process, and shall be installed as per approved plans. They shall not be allowed within a required parking, turnaround and landscape areas or on any fagade facing a public street. 34. Screening of Mechanical Equipment. All mechanical equipment placement and screening shall be included on the development plan and shall be reviewed and approved by the Planning Division prior to installation. Where practicable and as shown on the plans approved by the Planning Commission in the course of obtaining the requested entitlements, mechanical equipment, heating, ventilation, air conditioning (HVAC) units, satellite dish systems, solar panels, thermal solar heaters, utility meters, above ground utility and fire safety connections will be, screened, located out of public view or be architectural integrated into the project design. CONSTRUCTION 35. Construction Information. During construction, the Applicant will display signs visible to the public from the public right-of-way with a contact number of the construction superintendant to address any questions or concerns about demolition, grading, and construction activities including dust, noise and vibration. 36. Vehicles and Equipment. All construction vehicles or equipment, fixed or mobile, operated within 1,000 feet of an existing dwelling shall be equipped with properly operating and maintained mufflers. 37. Warning Devices. Replace backup audible warning devices with backup strobe lights or other warning devices during evening construction activity to the extent permitted by the California Division of Occupational Safety and Health. 38. Pest Control. The Applicant shall have rodent and pest controls on site during demolition and grading activities to mitigate impacts to the surrounding properties and neighborhood. 39. Perimeter Fence. Prior to demolition and construction, a perimeter security fence not exceeding seven feet in height, shall be installed around the project site. The fencing shall include a green screen material or approved equivalent. The fence/screen material shall be properly maintained and be free of rips, tears, fraying, graffiti, and any other damage or vandalism. 40. Site Maintenance. The site and the public R.O.W. adjacent to any portions of the site shall be maintained in a condition which is free of debris, trash, weeds and overgrown vegetation both during and after the construction, addition or implementation of the entitlements granted herein. All trash and refuse shall be disposed of in dumpsters and be removed from the premises on an as 75E-175 needed basis. Any surplus construction materials shall be stored so as to be screened from public view when not actually in use and be removed from the property upon completion of construction activities. 41. Construction Traffic Management Plan. A truck/traffic construction management plan is required for this project pursuant to the City's Public Works Department. All construction traffic regarding the movement of heavy equipment and graded materials are limited to off peak hours. This plan shall be approved prior to the issuance of Building Permits. 42. Construction Staging. During the construction process all related activities, including but not limited to, loading, unloading, storage of equipment and materials, and parking of employee vehicles are prohibited within the public R.O.W. All such activities shall be conducted only on the project site and not in the public RO.W. All staging areas and storage of equipment and materials shall be set back from adjacent residential uses. 43. Construction Hours. In accordance with SAMC Section 18.314(e), Demolition, grading, and exterior building construction activities shall be limited to the hours of between 7:00 a.m. and 8:00 p.m. Monday through Saturday. No construction activity shall be allowed on Sundays or federal holidays. Compliance with this measure is subject to field inspection by City Staff. 44. Noise. All onsite activities shall comply with the City of Santa Ana Noise Ordinance at all times. 45. Fire Protection. Fire protection facilities; including access, must be provided prior to and during construction. 46. Fencing. Prior to commencing demolition and site preparation activities, the project site shall he secured with a fence to prevent unauthorized access to the site and the fence shall contain a screening material to screen construction activities from view. The temporary screening fence shall be installed to the satisfaction of the Economic Development Depariment and shall be maintained in good condition (free of tears, holes, crack lines, debris, etc.) at all times. At the primary entrance to the site, the screening material shall be reduced to a maximum height of four feet to provide visibility into the site at all times and for public safety purposes. The project site shall also have a minimum of one sign of quality material depicting the proposed development, which shall include renderings, project opening date, and City Council information. The signs shall be designed and installed to the satisfaction of the Economic Development Department and maintained in good condition (free of tears, graffiti, holes, cracks, fading, debris, etc.) at all times. 47. Fence Coordination. Prior to the demolition of any existing property line walls and/or fences and construction of a new property line concrete block wall(s), the developer shall make reasonable efforts to coordinate and obtain approval from neighboring property owner(s) to remove any existing wall(s) and/or fence(s). Written authorization from the neighboring property owner shall be provided for the removal of an existing wall and construction of a new shared property line wall upon submittal for plan check. 48. Pre -Construction Meeting. Prior to the commencement of construction on the site, the developer shall schedule a pre -construction meeting between the general superintendent or field representative and the Planning Division to discuss the approved plans and construction requirements. 75E-176 ENGINEERING 49. The Applicant shall submit Improvement Plans prepared by a Registered Civil Engineer for public works (off-site) improvements, and on-site improvements. Plan check fees shall be paid in advance. 50. An on-site grading and drainage plan shall be prepared and submitted to the City Engineer for approval. Plan shall be 24" x 36", with elevations to nearest 0.01 foot, minimum scale 1" = 20'. Plan shall be prepared by Registered Civil Engineer. Public works improvements may be shown on this plan. Grading plan check fees must be paid in advance. 51. Hydrologic and hydraulic calculations demonstrating adequate site drainage from a 10 -year return frequency storm (25 -year frequency in sump areas) prepared by a Registered Civil Engineer shall be submitted with the Grading Plan. 52. Driveway slope shall be a minimum slope of one (1) percent for asphalt and .5% for concrete. 53. If utility cuts are excessive in the street the street must have a grid and overlay placed on it per the satisfaction of the City Engineer. 54. All existing off-site public improvements (sidewalk, curb and gutter, driveways, and street paving) at the development site which are in a damaged condition or demolished due to the proposed work shall be reconstructed to the satisfaction of the City Engineer, and per OCPFRD Standard Plan. 55. A City Encroachment (Public Works) permit shall be taken out for all work in public right-of-way prior to start of work. All work shall be done in accordance with APWA Standards and to the satisfaction of the City Engineer and must be completed prior to final approval for occupancy or the issuance of Certificate of Occupancy. 56. A bond or surety device shall be posted with the City in an amount and type sufficient to cover the amount of off-site work to be done, as approved by the City Engineer. 57. Pad certification by the Design Civil Engineer and Soil Engineer is required prior to the commencement of structural construction. 58. Final compaction report prepared by a qualified Soil Engineer shall be submitted to the City Engineer for review and approval prior to the commencement of structural construction. 59. Prior to the issuance of any grading or building permits or prior to recordation upon subdivision of land if determined applicable by the City Building Official, the applicant shall submit to the City for review and approval a Final Water Quality Management Plan (WQMP) that: • Addresses Site Design BMPs (Best Management Practices) such as minimizing impervious areas, maximizing permeability, minimizing directly connected impervious areas, creating reduced or "zero discharge" areas, and conserving natural areas. • Incorporates the applicable Routine Source Control BMPs as defined in the DAMP. • Incorporates Treatment Control BMPs as defined in the DAMP. 75E-177 • Generally describes the long-term operation and maintenance requirements for the Treatment Control BMPs. • Identifies the entity that will be responsible for long-term operation and maintenance of the Treatment Control BMPs. Describes the mechanism for funding the long-term operation and maintenance of the Treatment Control BMPs. 75E-178 Attachment I Building Articulation and Setback Along Santiago Park (Conceptual) PPOKE®W I- W4 0E SWMMO t0 A4 C,�Cf Wa u+A _PGtNKIYDW.DWEDt00PRD.Ect P W CF THE ADDINGTON 2525 N MAN ST 12122018 0 rvavvnnxnicu a s..: Mu.Cuna..m...n.c u n n 1-6 St d � 75E-179 A10 O 75E-180 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL PLAN AMENDMENT NO. 2018-06 AMENDING THE LAND USE ELEMENT TO DISTRICT CENTER FOR THE PROPERTY LOCATED AT 2525 NORTH MAIN STREET 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: WHEREAS, Article 5 of Chapter 3 of Division 1 of Title 7 (commencing with Section 65300) of the Government Code requires the City to prepare and adopt a comprehensive, long-term general plan for the physical development of the City; and WHEREAS, on February 2, 1998, the City of Santa Ana adopted the Land Use Element of the General Plan, which has since been amended from time to time; and WHEREAS, on October 19, 2017, AC 2525 Main, LLC ("Applicant") filed applications for approval of General Plan Amendment No. 2018-06, Amendment Application 2018-10, and Development Agreement No. 2018-01, for the development of a 5.93 -acre site ('Project Site"), located at 2525 North Main Street with up to 476 multi -family units. WHEREAS, the Project, with staff recommended changes, will consist of development of a maximum of 476 multi -family units, parking capacity at 2.0 spaces per unit, private open space, and associated improvements on a 5.93 -acre site ('Project"); and WHEREAS, the requested General Plan Amendment would change the General Plan land use designation of the property from Professional and Administrative Office (PAO) to District Center (DC) and to update text portions of the City's Land Use Element to reflect this change in order to allow for development of the multi -family housing Project; and WHEREAS, Environmental Impact Report No. 2018-01 (State Clearinghouse No. 2018021031) for the proposed Project was circulated between August 7, 2018 and October 4, 2018; and WHEREAS, the Environmental Impact Report analyzed the impacts related to the proposed amendment to the General Plan Land Use Element; and Exhibit 4 75E-181 WHEREAS, on February 2, 2018, the City invited recognized Native American tribes to engage in consultation regarding the proposed General Plan Amendment pursuant to Government Code Section 65352.3; and WHEREAS, on February 8, 2018, the City received a request for consultation from the Gabrieleno Band of Mission Indians-Kizh Nation and a conference call between the City and Chairman Salas occurred on March 15, 2018 during which the history of uses and development of the Project Site and the depth of previous and existing infrastructure on the site was discussed. On March 21, 2018 additional information in follow up of the meeting was sent to Chairman Salas. Chairman Salas did not respond to the City with any information or evidence pertaining to Tribal Cultural Resources; and WHEREAS, on August 27, 2018, the Planning Commission conducted a work study session to overview the Project and thirty-two (32) verbal comments were received (three in support and 29 in opposition) and nine (9) written comments were received (one in support and eight in opposition); and WHEREAS, on November 16, 2018, the City gave public notice of a Planning Commission public hearing for consideration of General Plan Amendment No. 2018-06 by advertising in the Orange County Register, a newspaper of general circulation, and on November 15, 2018 by mailing to owners of property and residents within 500 feet of the Project Site and posting on the Project site; and WHEREAS, on November 26, 2018, the Planning Commission continued the public hearing for the project to January 14, 2019 and held a second study session to overview the .Project and fifty-eight (58) verbal comments were received (25 in support; 31 in opposition and two neutral) and eleven (11) written comments were received (two in support and nine in opposition); WHEREAS, on January 4, 2019, the City gave public notice of a Planning Commission public hearing for consideration of General Plan Amendment No. 2018-06 by advertising in the Orange County Register, a newspaper of general circulation, and on January 4, 2019 by mailing to owners of property and residents within 500 feet of the Project Site and posting on the Project site; and WHEREAS, on January 14, 2019, the Planning Commission conducted a duly - noticed public hearing to consider General Plan Amendment No. 2018-06, Amendment Application No. 2018-10, and Development Agreement No. 2018-01, and the Environmental Impact Report for the Project, at which hearing members of the public were afforded an opportunity to comment upon General Plan Amendment No. 2018- 06. At the meeting, seventy-nine (79) members of the public spoke on the item, thirty (30) speakers supported the project, forty-eight (48) opposed it and one speaker was neutral. WHEREAS, on January 25, 2019, the City gave public notice of a City Council public hearing for consideration of General Plan Amendment No. 2018-06 by advertising in the Orange County Register, a newspaper of general circulation, and on 75E-182 January 24, 2019 by mailing to owners of property and residents within 500 feet of the Project Site; and WHEREAS, on February 5, 2019, the City Council conducted a duly -noticed public hearing to consider General Plan Amendment No. 2018-06, Amendment Application No. 2018-10, and Development Agreement No. 2018-01, and the Environmental Impact Report for the Project, at which hearing members of the public were afforded an opportunity to comment upon General Plan Amendment No. 2018- 06. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS: SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT: The City Council has reviewed and certified Environmental Impact Report No. 2018-01, adoption of the Mitigation Monitoring and Reporting Program (MMRP) and Statement of Overriding Consideration for the proposed Project, including this General Plan Amendment No. 2018-06. SECTION 3. GENERAL PLAN AMENDMENT: The General Plan Amendment consists of amendments to the Land Use Element and text updates, as shown in Exhibit A, attached hereto and incorporated herein by reference. SECTION 4. LOCATION OF DOCUMENTS: The General Plan Amendment, Environmental Impact Report and all supporting documents are on file and available for public review at Santa Ana City Hall, 20 Civic Center Plaza, Santa Ana, California 92702. SECTION 5. GENERAL PLAN CONSISTENCY: The City Council hereby finds that the proposed General Plan Amendment is compatible with the objectives, policies, and general plan land use programs specified in the General Plan for the City of Santa Ana in that: A. The City of Santa Ana has officially adopted a General Plan. B. The land uses authorized by the General Plan Amendment, and the General Plan Amendment itself, are compatible with the objectives, policies, general land uses, and programs specified in the General Plan, for the following reasons: The existing General Plan land use designations for the project is Professional and Administrative Office (PAO), which allows business and professional offices; with a floor area ratio of 1.5. In order to facilitate the construction of a multi -family housing Project with a maximum floor area ratio of 2.28, the land use designation needs to be changed to District Center (DC), which create high intensity, mixed-use urban villages and pedestrian -oriented experiences that support the mid- to high-rise office 75E-183 centers, commercial activity, and cultural activities with floor area ratios ranging from 0.5 to 5.0. Focusing growth within District Centers and along major corridors reduces the pressure for growth in low density residential neighborhoods. ii. The proposed Project will support several goals and policies of the General Plan. Housing Element (HE) Goal 2: to create diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels, and age groups to foster an inclusive community. HE Policy 2.2 District Centers. Create high intensity, mixed-use urban villages and pedestrian -oriented experiences that support the mid- to high-rise office centers, commercial activity, and cultural activities in the varied District Centers. HE Policy 2.4 to facilitate diverse types, prices and sizes of housing. Housing Element (HE) Goal 4: to provide adequate rental and ownership housing opportunities and supportive services. The Project will provide 476 rental housing units. The amendment will expand the District Center designation and provide a connection between the existing District Centers to the north and south of the site by providing a residential development that will support a mixed-use environment. Land Use (LU) Element Goal 1: to promote a balance of land uses to address basic community needs. LU Policy 1.2 Maintain and foster a variety of residential land uses in the City. LU Policy 4.3 Support land uses which provide community and regional economic and service benefits. LU Policy 4.4 Encourage the development of projects which promote the City's image as a regional activity center. LU Policy 5.5 Encourage development which is compatible with, and supportive of surrounding land uses. LU Policy 5.7 Anticipate that the intensity of new development will not exceed available infrastructure capacity. Land Use (LU) Element Goal 6: to reduce residential overcrowding to promote public health and safety. The Project is within '/3 mile of existing transportation infrastructure 75E-184 such as the Santa Ana (1-5) freeway and State Route 22 (SR 22) highway which provide vehicular access to the region; the Orange County Transportation Agency bus routes which connect to the Anaheim Regional Transportation Authority which provides rail service throughout California and Is immediately adjacent to Santiago Park and Santiago Creek Bike Trail which connects to regional bike trails. Main Street, a major urban corridor with cultural, educational, employment and retail destinations such as the Bowers Museum, Discovery Science Center, Main Place Mall and in the City of Orange; the Children's Hospital of Orange County and St. Joseph's Hospital of Orange County. Therefore, the residential development would be within close proximity of major employment centers and retail establishments. The Project will also provide an additional housing option for those seeking housing within the jobs rich northern area of the City. The multi -storied development will complement the nearby mid -rise office buildings located along Main Street to the north and west of the site and the multi -family residential use supports a mixed-use setting. Although the density will be higher than the adjacent uses, the residential use is consistent with the residential uses to the east and south. In addition, multi -family uses are often used in planning and zoning practice to buffer higher intensity uses like commercial or industrial uses from single-family residential uses. Urban Design (UD) Element. Goal 1: to improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. UD Policy 1.1. New development and redevelopment must have the highest quality design, materials, finishes and construction. UD Policy 1.11 Visual and physical links between districts, nodes, and significant sites, landmarks and other points of interest, are to be provided in all public and private projects. The residential buildings are of high quality design and include high quality materials such as stone veneer, brick veneers, metal panels, and canopies. The building is designed with courtyards that are open to the public right-of-way, and landscaped areas to reduce the mass of the building. The Project has street frontage on Main Street which is identified as a major path in the General Plan and supports the North Main Street Node described as an opportunity for the establishment of a cohesive, height intensity, mixed activity center with a strong presence in the region. The new development will include public art and convey a sense of place and contribute to the urban image for the City along a street corridor that includes regional, local and cultural landmarks. The development will be in scale with the buildings along Main Street to the north and west of the site. In addition, the Urban Design Element of the General Plan identifies the site as a Gateway; 75E-185 the Project promotes elements of a Gateway by developing the site with a building with attractive architectural features, projecting a positive image for the City of Santa Ana. C. The proposed General Plan Amendment will not adversely affect the public health, safety, and welfare in that the General Plan Amendment will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. SECTION 6. INDEMNIFICATION. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. SECTION 7. CITY COUNCIL ACTION: The City Council hereby takes the following action: The City Council approves General Plan Amendment No. 2018-06 as set forth in Exhibit A, attached hereto and incorporated herein by reference, subject to compliance with the Mitigation Monitoring and Reporting Program, and upon satisfaction of the conditions set forth below: A. Subject to compliance with the Mitigation Monitoring and Reporting Program, the Land Use Element map and text shall be amended to read as set forth in Exhibit A, attached hereto and incorporated herein by reference. B. The General Plan Amendment shall not take effect unless and until Environmental Impact Report No. 2018-01 is certified and Amendment Application No. 2018-10 is approved by the City Council, and the associated Development Agreement No. 2018-01 is approved by the City Council and executed by all parties thereto. 75E-186 SECTION 8. EXECUTION OF RESOLUTION. The Mayor shall sign this Resolution and the Clerk of the Council shall attest and certify to the adoption thereof. ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:�. Lisa Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 2019. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE-RAMIREZ, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Norma Mitre -Ramirez Acting Clerk of the Council City of Santa Ana 75E-187 y g V W L s a � nn■■■nr�■■n■ m 75E-188 9 a �>(nLL s mAli) wt c p #lea:#!!ISA 's 10011001 000 m 75E-189 City of Santa Ana General Plan Land Use Element 1998 City of Santa Ana Planning Division Adopted February 2, 1998 (Reformatted January 2010) The following is a chronology of the approved general plan amendments that have been incorporated into this document since the comprehensive update of the General Plan Land Use Element adopted by the Santa Ana City Council February 2, 1998 (GPA 1997- 05): GPA 201806 (November 20 2018) GPA 201843 (August 21, 2016) GPA 2018-02 (May 15, 2018) GPA 2015-01(May 15, 2018) GPA 2017-02 (Dapmta 19,201 yl GPA 2017-01 (Jute 20, 2017) GPA 2016-031February 21, 2017) GPA 201602 (May 17, 2016) GPA 2016,01(Apr919, 2016) GPA 201503 (February 2. 2016) GPA 201402 (Ocbhm 21, 2014) GPA 2014-01 Oub 3, 2014) GPA 201103 (Mach 19, 20121 GPA 2011-02 (Joie 6, 2011) GPA 2010-01(J" 7, 2010) GPA 2008.02 (July 20, 20(19) GPA 2007-03 (May 18, 2009) GPA 2006-01 (May 5, 2006) GPA 200403 (February 2, 2009) GPA 2007-01 (Mach 19, GPA 200&01(OaMes 2, 2006) GPA 200501(Ncen(ber 5.2005) GPA 2065-02 (OcbGr 17, 2005) GPA 2004-01 (April 5. 2005. as passed by to voters of Santa Ana) GPA 200/-06 (July 19, 2004) GPA 2014-06 (July 6. 2004) GPA 2003-02 (lune 16 2003) GPA 200301 (February 16, 2003) GPA 2002-01 (Septanbes 3. 2002) GPA 2102V (August 19, 2002) 75E-190 GPA 2801-03 (February 19, 2002) GPA 2001-02 (Jawmy 7, 2002) GPA 2000-09 (May 7, 2001) GPA 21100-08 (February 5, 2001) GPA 200-03 (December 4, 2000) GPA 2000-02 (Nmembar 2, 2000) GPA 1999.02 (Ocbber 18,1999) GPA 1999 01(August l61999) GPA 1998-04(Ocbber 5,1998) GPA 19960.5 (September 21.1998) GPA 1998-01 (May 4, 1998) LAND USE ELEMENT areas. To encourage a dynamic mixture of residential, office and commercial uses, within these areas both building intensity and residential density is based on floor area ratio and zoning development standards. In calculating either the allowable floor area or the allowable residential density, it is the City's policy to not allow upward rounding. The Land Use Plan is illustrated in Exhibit 2. Additional information concerning the Land Use Plan and the land use designations is provided in Table I (Land Use Development Intensity Standards), and in the Appendix. Table 1 Residential Standards Density/intensity Standards rdulaere. FARII Other District Center (Midtown, MacArthur Place, etc.) 90 du/acre and FAR 1.0-2.0 2525 N. Main St. Distdct Center FAR 2.28 Heritage District Center FAR 1.7 Downtown District Center FAR 3.0 Metro East District Center FAR 3.0 Transit Village Distdct Center FAR 5.0 Harbor Corridor District Center FAR 5.0 Urban Neighborhood Transit Zoning Code Area/ First, Fifth & 17" Street Corridor FAR 0.5-1.5 Harbor Corridor FAR 3.0 Metro East Professional and Administrative Office (PAO) FAR 0.75.1.5 FAR 0.5-1.0 General Commercial (GC) FAR 0.5.1.0 One Broadway Plaza District Center (OBPDC) 4 Industrial (IND) FAR 2.9 FAR 0.45 r The Intensity standards shown refer to the theoretical maximum amount of development permitted for each land use designation (du -dwelling units; FAR -Boor area ratio). Development must also adhere to zoning regulations, and/or specific plan requirements. s The District Center and Urban Neighborhood land use designations permit both residential and non-residential development a Commercial Intensities may vary. Baseline FAR Is 0.5. Specific areas allowing greater intensities are indicated in Exhibit A-3. ' One Broadway Plaza District Center land use designation permits office, restaurant and ancillary retail for a master planned development *Refer to Appendix for description of Land Use designations. CITY OF SANTA ANA GENERAL PLAN 75E-1 91 15 LAND USE ELEMENT LAND USE PLAN IMPLEMENTATION To effectively achieve the broad range of goals outlined for the City's future growth and development, a variety of plans, programs, and regulations must be relied upon. This section of the Element discusses these tools, and how they correlate with implementation of the City's land use goals. DEVELOPMENT INTENSITY STANDARDS Table A -I summarizes the development intensity standard for each ofthe General Plan designations, and provides land use distribution by acreage for the land use. The intensity standards for the categories permitting residential development are expressed in density, measured in "units per acre," or floor area ratio and zoning development standards in the case of certain Mixed Use land use designations. The intensity standards for non-residential development are expressed as "floor area ratio" or FAR. The FAR concept is illustrated in Exhibit A-3. The intensity standards in concert with the zoning and development standards regulate the massing, form and building size. Table A•1 U I T Uf SAN IA ANA GENERAL PLAN 75E-192 A LAND USE ELEMENT The City established development intensity standards in 1988, for nonresidential land use designations. The standards measure intensity through the use of floor area ratios. The floor area ratios proposed for the City's major commercial corridors are expected to remain in place over the life of the Land Use Element. Those areas of the City proposed for the most intensive levels of development include district centers, professional and administrative office districts, and several other commercial centers with a unique character, or special development concerns. Some of these areas correspond to those for which Specific Plans have been prepared. The proposed floor area ratio(s) for most of the City's commercial corridors allows structures of two to three stories with surface parking. The major development areas -the District Centers and ProfessionaVAdminlstrative Office Districts along Tustin Avenue and East First Street -allow mid -rise and high-rise buildings with structured parking. These areas are expected to generate the highest level of development activity in the City as centers of commerce. These areas are listed in Table A-2 and are shown in Exhibit A-4. The floor area ratios indicated in Table A-2 are the maximum building intensity allowed for development. A_12 75E-193 CITY UP SANIA ANA UtNtNAL rLAN LAND USE ELEMENT Commercial The Land Use Plan identifies three land use designations that encourage a variety of office, retail and commercial enterprises to serve the community. The Professional/Administrative Office (PAO) designation applies to those areas where professional and/or administrative offices are predominant, or where such development is being encouraged. Land included in this designation is found primarily near the Civic Center, and along the First Street and Tustin Avenue Corridors in close proximity to freeways. There are othersmaller PAO areas in the City such as along North Broadway and along portions of east and west Seventeenth Street. A total of 594.9600.8 acres is included in this land use designation. The floor area ratio intensity standard applicable to this land use designation ranges from 0.5 to 1.0. A-20 The Professional and Administrative Office areas are intended to provide a unique environment for office development in those areas of the City where office uses are the predominant land use. The purpose for maintaining and supporting these areas exclusively for office and office -related uses is to encourage major employment centers at locations which significantly lessen the impact to the City's local street system. The First Street/Tustin Avenue office corridor between the Santa Ana (1-5) and Costa Mesa (SR -55) Freeways serves this purpose. In addition, the orderly, well-maintained quality of existing development supports a continuation of these areas as functional office/employment centers. The Professional and Administrative Office designation includes a range of floor area ratios to differentiate development intensity and character in relation to adjacent land uses. The areas with a FAR of 0.5 are not major office centers, but rather have an established character of lower intensity garden office and professional service uses. These areas are typically adjacent to low density residential neighborhoods, or are converted residential office uses. Office development along East Fourth Street, between Grand Avenue and the Santa Ana Freeway, is typical of this low-rise office character. The PAO area located adjacent to the Civic Center contains a range of office development intensity which supports the City's functional role as the government center of the County. The types of uses typically located in the PAO district include the following: Professional and administrative offices/office parks; Service activities such as copy centers, courier services, travel agencies, and restaurants when such uses are an integral component of a planned office development; and Professional uses such as accountants, attorneys, doctors, engineers, and insurance brokers. 75E-194 CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT • The South Coast Metro District serves as a regional retail shopping area which includes a range of commercial services and office projects. • The MacArthur Place District Center contains an existing office/hotel complex and a proposed major mixed use project which will include professional offices, supporting commercial, and mid and high-rise residential components. ■ The Metro East District is envisioned as a vibrant urban village with a balance of office, residential, and service uses. Pedestrian and transportation linkages are key in this urban setting. The Transit Village District is envisioned as a vibrant intense urban village with a balance ofemployment centers, residential and service uses. Pedestrian and transit linkages to the Santa Ana Regional Transportation Center is key in this district The Harbor Corridor Mixed Use Transit Corridor creates a vision for a more livable, sustainable setting through higher intensity housing and mixed use development, convenient access to transit, complete streets, and amenities that promotes active lifestyles. ■ The Heritage District allows for mixed use development with higher density residential and supportive commercial and office uses within proximity to surrounding employment centers. ■ 2525 North Main Street District allows for hieherdensity residential development along the North Main Street corridor, in proximity to employment centers, the MainPlace Mall, and cultural destinations. District Centers are considered to be the City's "major development areas." The most intense development in the City is targeted to these areas. The Tustin Avenue corridor is a major development area even though it is not a designated District Center. This area has developed over the years as a prime office corridor and employment area. The PAO designation facilitates the continued development of this area with high intensity, high quality regional office projects. The Urban Neighborhood (UN) land use designation applies to primarily residential areas with pedestrian oriented commercial uses, schools and small parks. The Urban Neighborhood allows for a mix of residential uses and housing types, such as mid to low rise multiple family, townhouses and single family dwellings; with some opportunities for live -work, neighborhood serving retail and service, public spaces and use, and other amenities. Either vertical or horizontal integration of uses is permitted based on zoning standards, with an emphasis on tying together the uses with pedestrian linkages and street frontages. Street connectivity is CITY OP SANTA ANA GENERAL PLAN A-23 75E-195 LAND USE ELEMENT interagency Development Review Committee (DRC) to ensure consistent and comprehensive application of City regulations and policies for all projects. Redevelopment Plans. The City will apply redevelopment tools associated with the implementation ofthe adopted redevelopment plans, as appropriate. The City will encourage the further development of industrial, commercial, and residential projects in suitable locations to strengthen the City's tax and employment base. Special Studies. In certain instances, a special study may be required to address a particular issue. In these cases, a specific effort to identify staff resources needed to conduct the appropriate investigation and analysis will be identified. Zoning Code Review. The zoning code serves as a primary tool used by the City to regulate development. The City will develop a program to revise the Zoning Ordinance to ensure that development regulations and standards are consistent with community needs and high quality development. The City will initiate appropriate changes to the ordinance to ensure, where appropriate, conformity between the Land Use Element and Zoning Map. LAND USE PLAN BUILDOUT As indicated previously, the City of Santa Ana has been almost completely developed for many years. As a result, any new development will necessarily consist of redevelopment and infill development on the remaining vacant and underutilized parcels. Many parcels with nonresidential land use designations will never be developed to the maximum intensity permitted under the General Plan. Table A-4 indicates the development possible under the build -out of the Land Use Plan. The build -out for residential land uses considered two scenarios. Effective build -out for residential development is calculated by adding the 2y2-1,--2-56 units possible in the areas designated as District Center and Urban Neighborhood to the existing 74,588 units presently found in the City per Census 2000. Theoretical build -out for residential development considered the development possible if all of the areas designated as residential were developed according to the permitted Land Use Plan intensities. Since the Land Use Element does not contemplate the elimination ofexisting housing in the City, the effective build -out figure represents a more realistic estimate of future residential development. As indicated in Table A-4, three of the non-residential land use designations have a range in FAR intensities. For the non-residential land use designations, effective build -out considered the development possible under the lower range of FAR intensities while theoretical build -out considered the upper FAR range. Typically, parking and landscaping requirements will result in significantly less floor area CITY OF SANTA ANA GENERAL PLAN A-33 75E-196 LAND USE ELEMENT interagency Development Review Committee (DRC) to ensure consistent and comprehensive application of City regulations and policies for all projects. Redevelopment Plans. The City will apply redevelopment tools associated with the implementation of the adopted redevelopment plans, as appropriate. The City will encourage the further development of industrial, commercial, and residential projects in suitable locations to strengthen the City's tax and employment base. Special Studies. In certain instances, a special study may be required to address a particular issue. In these cases, a specific effort to identify staff resources needed to conductthe appropriate investigation and analysis will be identified. Zoning Code Review. The zoning code serves as a primary tool used by the City to regulate development The City will develop a program to revise the Zoning Ordinance to ensure that development regulations and standards are consistent with community needs and high,quality development. The City will initiate appropriate changes to the ordinance to ensure, where appropriate, conformity between the Land Use Element and Zoning Map. LAND USE PLAN BUILDOUT As indicated previously, the City of Santa Ana has been almost completely developed for many years. As a result, any new development will necessarily consist of redevelopment and infill development on the remaining vacant and underutilized parcels. Many parcels with nonresidential land use designations will never be developed to the maximum intensity permitted under the General Plan. Table A-4 indicates the development possible under the build -out of the Land Use Plan. The build -out for residential land uses considered two scenarios. Effective build -out for residential development is calculated by adding the 222-1 2-56 units possible in the areas designated as District Center and Urban Neighborhood to the existing 74,588 units presently found in the City per Census 2000. Theoretical build -out for residential development considered the development possible if all of the areas designated as residential were developed according to the permitted Land Use Plan intensities. Since the Land Use Element does not contemplate the elimination of existing housing in the City, the effective build -out figure represents a more realistic estimate of future residential development. As indicated in Table A-4, three ofthe non-residential land use designations have a range in FAR intensities. For the non-residential land use designations, effective build -out considered the development possible under the lower range of FAR intensities while theoretical build -out considered the upper FAR range. Typically, parking and landscaping requirements will result in significantly less floor area CITY OF SANTA ANA GENERAL PLAN 75E-1 9 7 A-33 LAND USE ELEMENT for commercial and industrial developments than that which is permitted under the General Plan. As indicated in Table A-4, between 7676 9947G,998 to 9695;844 housing units are allowed by the Land Use Plan. The additional units which presently exist in the City beyond the maximum number permitted under the theoretical buildout scenario are a reflection of the higher density multiple -family developments constructed in the 1970's and 1980's. However, the purpose of the Land Use Plan as it applies to the residential areas is to preserve and maintain the stability of existing neighborhoods, regardless ofthe character of development. The intent of the Plan is not to create any displacement, nor decrease existing development densities. Rather, it is to ensure a safe, healthy, and livable environment for City residents. Existing residential development entitlements are protected through this Land Use Element, applicable Zoning regulations, and sections of the City code pertaining to legal nonconforming uses. The Land Use Element's implementation may result in an increase in the amount of commercial, office, and industrial development in the City. As indicated in Table A-4, up to 32,128,5493 z73-,989 square feet ofcommercial and office development, and 42,199,991 square feet of industrial development arc possible under the effective capacity parameters of Land Use Plan. A-34 CITY OF SANTA ANA GENERAL PLAN 75E-198 LAND USE ELEMENT Table A-4 Land Use Plan Bulld-out Capacities FAR =Uoorarea ratio; d.u.=dweging unit sl.=square feet (of floor area). Acreage snown in more ones nouncuce roans in ngnr-of-way. I Effective capacity for nam-residedial development assumes development possible under the lower range of FAR intensity standards with the exception of the Metro East District Center, Transit Village District Center, Downtown District Center, Heritage District Center, and Urban Neighborhood areas. The Harbor Corridor District Center, Metro East District Center, Transit Village District Center, Downtown District Center, and Urban Neighborhood areas slow a range of intensity for midure of residential and non-residential development based on the zoning development standards. Residential effective capacity was calculated by adding the 3125521751 units possible in the District Center and Urban Neighborhood with the existing 74,588 (Cent us 2000) housing units. 2 Land use designation permits both residential and non-residential development Build -out assumes W% of land area will be developed as commercial and 10% will be developed as residential; with the exception of Town and Country Manor project Intended for continuum of care and housing seniors. Land use designation permits high intensity office development with ancillary retail use. This fable has been revised to correspond with Ne GIS rand Use 44p illustrated In Exhibit 2 n CITY OF SAMA ANA GENERAL PIAN 75E-199 A-35 Infensltyl Effective Buildout' 7heorelical Land Use Acres Bensi Buildout Low Density Residential LR -7 6,454.6 7 dulac 45,182 du Low Medium Density Residential LMR -11 420.6 11 du/ac 4,627 du Medium Density Residential MR -15 362.3 15 du/ac 5,435 du Subtotal 7,237.596_13do , 55,243 du District Center Other" DC 309.5 90 du /ac 11,955,583 at 3,017 du 23,764,534 s 3,017 du FAR 1.0.2.0 Heritage DC 18.8 FAR 1.7 54,090 sf 1,221 du 54,090s 1,221 du Downtown DC 62.5 FAR 3.0 2,057,824 sf 1,661 du 2,057,824 sl 1,661 du Metro East DC 113.9 FAR 0.75.3.0 2,464,776 sf 5,037 du 2,464,776 s 5,037 du Transit Village DC 51.4 FAR 5.0 402,864 sf 2,761 du 402,064s, 2,761 du Harbor Corridor DC 125.0 FAR 5.0 1,836,155 st 2,029 du 1,836,155 s 2,029 du Urban Neighborhood UN 313.4 FAR 0.5-3.0 1,656,955 sf 5,529 du 1,656,955s 5,529 du Subtotal 1 0000 20,428,247 at 21 751 d 32,327,198 s I z 75 d Professional & Admin. Office PAO 5 8. FAR 0.5.1.0 12.951x00 424 95.913.844 s General Commercial GC 855.3 FAR 0.5.1.0 18,628,434 sf 37,256,868 s One Broadway Plaza District CW OBPDC 4.3 FAR 2.9 543,193 st 543,193 s Subtotal 1,450:4 1 454.5 32;2.57,051 32.128.549 sf �" 63.713.905 s� Industrial IND 2,152.8 FAR 0.45 42,199,991 sf - 42,199,991 sil Instihrti0nal NS 800.6 FAR 0.2-0.5 6,974,740 sf 17,436,850 s Open Space OS 1,010.9 FAR 0.2 8,806,961 at 8,806,961s Subtotal 1,811.5 15,781,701 sf 26,243,811 s FAR =Uoorarea ratio; d.u.=dweging unit sl.=square feet (of floor area). Acreage snown in more ones nouncuce roans in ngnr-of-way. I Effective capacity for nam-residedial development assumes development possible under the lower range of FAR intensity standards with the exception of the Metro East District Center, Transit Village District Center, Downtown District Center, Heritage District Center, and Urban Neighborhood areas. The Harbor Corridor District Center, Metro East District Center, Transit Village District Center, Downtown District Center, and Urban Neighborhood areas slow a range of intensity for midure of residential and non-residential development based on the zoning development standards. Residential effective capacity was calculated by adding the 3125521751 units possible in the District Center and Urban Neighborhood with the existing 74,588 (Cent us 2000) housing units. 2 Land use designation permits both residential and non-residential development Build -out assumes W% of land area will be developed as commercial and 10% will be developed as residential; with the exception of Town and Country Manor project Intended for continuum of care and housing seniors. Land use designation permits high intensity office development with ancillary retail use. This fable has been revised to correspond with Ne GIS rand Use 44p illustrated In Exhibit 2 n CITY OF SAMA ANA GENERAL PIAN 75E-199 A-35 LAND USE ELEMENT Mixed Use The Land Use Plan provides for two distinct mixed use land use designations. These designations allow for both vertical and horizontal mixed use developments, with an emphasis on linkages to a range of transportation options: ■ The District Center (DC) land use designation includes the major activity areas in the City. Tcn&-Ym areas of the City, totaling 6876844 acres, are designated as District Center. The intensity standard for the District Center designation ranges from a floor ratio of 1.0 to 5.0. District Centers are designed to serve as anchors to the City's commercial corridors, and to accommodate major development activity. District Centers are to be developed with an urban character that includes a mixture of high- rise office, commercial, and residential uses which provide shopping, business, cultural, education, recreation, entertainment, and housing opportunities. Residential developments within some District Centers are allowed at a density of up to 90 units per acre when developed as an integral component ofa master planned mixed use project In Harbor Corridor, Metro East, Downtown, and Transit Village District Centers residential development intensity is based on a combination of floor area ratio and zoning overlay and/or development standards. Some District Centers serve as major retail and employment centers locally and regionally, and should include development which promotes the City as a regional activity center while creating an environment conducive to business on a regional scale. District Centers in Santa Ana include the following: • The Main Place/City Place District Center includes a regional shopping center and office complex, as well as high intensity housing and mixed-use development. • The Museum District located between the Downtown and MainPlace/City Place District Centers is proposed as a major office/cultural center which will be developed over the next 15 to 20 years. The area will focus upon the expanded Bowers Museum, the Discovery Science Center and the construction of additional museums and cultural centers. The Downtown District serves as one of the County's major employment and governmental operations centers complemented with a mix of residential, commercial, and services uses to enhance its urban vibrancy. Emphasis on streets that accommodate all modes of transportation, including mass transit, pedestrian and bicyclist is key in this urban setting. A-22 CITY OF SANTA ANA GENERAL PLAN 75E-200 ExhibitA5 Major Development Areas 1-MainPlace 2 -Museum District 3 -Downtown 4 -One Broadyway Plaza 5-Southcoast Metro 6 -MacArthur Place CITY OF SANTA ANA GENERAL PLAN 7 -Tustin Avenue Corridor B- Metro East 9 -Transit Village 10- Harbor Mixed -Use Corridor 11 -The Heritage 75E-201 -- — City Limits e 0.6 11Mdes A-25 75E-202 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL APPROVING AMENDMENT APPLICATION NO. 2018-10 REZONING THE PROPERTY LOCATED AT 2525 NORTH MAIN STREET FROM PROFESSIONAL (P) TO SPECIFIC DEVELOPMENT NO. 93 (SD -93) (AA NO. 2018-10) AND ADOPTING SPECIFIC DEVELOPMENT NO. 93 (SD -93) FOR SAID PROPERTY 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: WHEREAS, Chapter 41, Article 1, Division 1, Section 41-1 of the Santa Ana Municipal Code establishes the necessity of segregating the location of residences, businesses, trades and industries; regulating the use of buildings, structures, and land regulation; the location, height, bulk and size of buildings and structures, the size of yards and open space; the City is divided into land -use districts of such number, shape and area as may be considered best suited to carry out these regulations and provide for their enforcement; and WHEREAS, the regulations are considered necessary in order to: encourage the most appropriate use of land, conserve and stabilize property value, provide adequate open spaces for light and air and to prevent and fight fires, prevent undue concentration of population, lessen congestion on streets and highways, and promote the health, safety and general welfare of the people, all as part of the general plan of the City; and WHEREAS, the City of Santa Ana has adopted a zoning map which has since been amended from time to time; and WHEREAS, on October 19, 2017, AC 2525 Main, LLC ("Applicant') filed applications for approval of General Plan Amendment No. 2018-06, Amendment Application No. 2018-10, and Development Agreement No. 2018-01, for the development of a 5.93 -acre site ('Project Site"), located at 2525 North Main Street with up to 496 multi -family units. WHEREAS, the project, with staff recommended changes to the Specific Development text, will consist of the development of a maximum of 476 multi -family units, parking capacity at 2.0 spaces per unit, private open space, and associated Improvements on a 5.93 -acre site ('Project'); and WHEREAS, the requested Amendment Application would change the zoning designation of the property from Professional (P) to Specific Development No. 93 (SD -93) and adoption of Specific Development No. 93 to reflect this change in order to facilitate the construction of the multi -family housing project; and Exhibit 5 75E-203 WHEREAS, Environmental Impact Report No. 2018-01 (State Clearinghouse No. 2018021031) for the proposed Project was circulated between August 7, 2018 and October 4, 2018; and WHEREAS, the Environmental Impact Report analyzed the impacts related to the proposed amendment to the zoning map and adoption of Specific Development No. 93; and WHEREAS, on February 2, 2018, the City invited recognized Native American tribes to engage in consultation regarding the proposed General Plan Amendment pursuant to Government Code Section 65352.3; and WHEREAS, on August 27, 2018, the Planning Commission conducted a work study session to overview the project and thirty-two (32) verbal comments were received (three in support and 29 in opposition) and nine (9) written comments were received (one in support and eight in opposition); and WHEREAS, on November 16, 2018, the City gave public notice of the Planning Commission public hearing for consideration of Amendment Application No. 2018-10 by advertising in the Orange County Register, a newspaper of general circulation, and on November 15, 2018, by mailing to owners of property and residents within 500 feet of the Project site and posting on the Project site; and WHEREAS, on November 26, 2018, the Planning Commission continued the public hearing for the project to January 14, 2019 and held a second study session to overview the Project and fifty-eight (58) verbal comments were received (25 in support; 31 in opposition and two neutral) and eleven (11) written comments were received (two in support and nine in opposition); and WHEREAS, on January 4, 2019, the City gave public notice of the Planning Commission public hearing for consideration of Amendment Application No. 2018-10 by advertising in the Orange County Register, a newspaper of general circulation, and by mailing to owners of property and residents within 500 feet of the Project site and posting on the Project site; and WHEREAS, on January 14, 2019, the Planning Commission conducted a duly noticed public hearing to consider General Plan Amendment No. 2018-06, Amendment Application No. 2018-10, and Development Agreement No. 2018-01, and the Environmental Impact Report for the Project, at which hearing members of the public were afforded an opportunity to comment upon Amendment Application No. 2018-10. At the meeting, seventy-nine (79) members of the public spoke on the item, thirty (30) speakers supported the project, forty-eight (48) opposed it and one speaker was neutral. At said hearing, the Planning Commission recommended that the City Council deny the Project; and WHEREAS, on January 25, 2019, the City gave public notice of a City Council public hearing for consideration of Amendment Application No. 2018-10 by advertising in the Orange County Register, a newspaper of general circulation, and on January 24, 75E-204 2019, by mailing to owners of property and residents within 500 feet of the Project Site; and WHEREAS, on February 5, 2019, the City Council conducted a duly -noticed public hearing to consider General Plan Amendment No. 2018-06, Amendment Application No. 2018-10, and Development Agreement No. 2018-01, and the Environmental Impact Report for the Project, at which hearing members of the public were afforded an opportunity to comment upon Amendment Application No. 2018-10. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS: SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT: The City Council has reviewed and certified Environmental Impact Report No. 2018-01; adopted the Mitigation Monitoring and Reporting Program (MMRP); and adopted the Statement of Overriding Consideration for the proposed Project, including this Amendment Application No. 2018-10. SECTION 3. AMENDMENT APPLICATION: The Amendment Application consists of amendments to the zoning map (SDM 6-5-9) and adoption of Specific Development No. 93, as shown in Exhibit A and Exhibit B respectively, attached hereto and incorporated herein by reference. SECTION 4. LOCATION OF DOCUMENTS: The Amendment Application, Environmental Impact Report and all supporting documents are on file and available for public review at Santa Ana City Hall, 20 Civic Center Plaza, Santa Ana, California 92702. SECTION 5. GENERAL PLAN CONSISTENCY: The City Council hereby finds that the proposed Amendment Application is compatible with the objectives, policies, and general plan land use programs as amended by General Plan Amendment No. 2018- 06 In that: A. The proposed Amendment Application will not adversely affect the public health, safety, and welfare in that the Amendment Application will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. B. The amendment application to change the zoning designation from Professional (P) to Specific Development 93 (SD -93) is consistent with Santa Ana Municipal Code section 41-593.1 for the following reasons: (1) Protecting and enhancing the value of properties by encouraging the use of good design principles and concepts, as related to the division of property, site planning and individual improvements with full recognition of the significance and effect they have on the proper planning and development of adjacent and nearby properties. 75E-205 The site plan has been designed with the vehicular entrance on Main Street away from the residential neighborhood to the south and east. In addition, the parking structure and rooftop amenity deck, which are the tallest building elements are positioned closer to Main Street, with residential buildings wrapped around the structure to screen it. There is a 40 -foot rear (east) setback requirement which creates a buffer between the multi -family buildings and single-family homes. In addition, the existing healthy trees along the east property line will be protected in place and new mature trees will be planted or replaced as needed. The wall along the eastern property line will be increased to 8 -feet in height and the east side of the building will tier in height from two, three, four to five stories to provide a transition in height when compared to the single -story residential dwellings to the east. The building is also designed with courtyards rather than one large "box" to provide open space and variation in the massing. Furthermore, the units along Edgewood Road will have patios with access to the street to mimic single-family dwelling porches and to connect the project with the residential neighborhood. (2) Encouraging, securing and maintaining the orderly and harmonious appearance, attractiveness and aesthetic development of structures and grounds in order that the most appropriate use and value thereof be determined and protected. The property is a 5.93 -acre site with street frontage along Main Street, a major urban, corridor with cultural, educational, employment and retail destinations such as the Bowers Museum, Discovery Science Center, Main Place Mall and in the City of Orange; the Children's Hospital of Orange County and St. Joseph's Hospital of Orange County. Therefore, the residential development would be within close proximity of major employment centers and retail establishments. The site is also located just north of the Santa Ana (1-5) freeway which provides regional access to and from the City. The multi -storied development will complement the nearby mid -rise office buildings located along Main Street to the north and west of the site and the multi -family residential use supports a mixed-use setting. In addition, the new building will have a variety of materials such as multiple brick veneers, stone veneer, metal panels, ceramic tile, metal canopies, flat and metal seamed roofs to assist in creating a modern contemporary design. The residential development will replace a potential office use with a residential use. Although a professional office use is typically considered a low intensity land use when compared to commercial or industrial uses, issues with parking, traffic and noise may still arise. When comparing land uses multi -family uses are more compatible in nature with single- family residential neighborhoods than office uses. 75E-206 (3) Providing a method whereby specific development plans are to be based on the general plan as well as other regulations, programs, and legislation as may in the judgment of the city be required for the systematic execution of the general plan. With approval of General Plan Amendment No. 2018-06, the Project will be consistent with the General Plan Land Use Element. Although the Project requires an amendment to the Land Use Element to allow for residential use of the property, the Project still supports and is consistent with several other overarching goals and policies of the General Plan. For example, as described in the associated General Plan Amendment No. 2018-06: Housing Element Goal 2, to create diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels, and age groups to foster an inclusive community. Land Use Element Goal 4, to protect and enhance development sites and districts which are unique community assets that enhance the quality of life. Urban Design Element, Goal 1, to improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. (4) Recognizing the interdependence of land values and aesthetics and providing a method to implement this interdependence in order to maintain the values of surrounding properties and improvements and encouraging excellence of property development, compatible with the general plan for, and character of, the city, with due regard for the public and private interests involved. Development of the Project would result in a substantial change in views and a significant and unavoidable impact to aesthetics. However, the Project will replace an over 30 -year old structure with a modern building with enhanced landscaping contributing to the character of the City. Furthermore, a Development Agreement between the developer/property owner and the City of Santa Ana has been entered into. Public benefits of the agreement include: public art, monetary contribution to the Santiago Park for maintenance and improvement, Park Santiago Neighborhood benefits including access to on-site amenities for Park Santiago residents, security patrol of the residential neighborhood and Santiago Park, assistance in designating the Park Santiago Neighborhood Association as a historic district, and monetary contribution to Park Santiago Neighborhood for traffic improvements and calming such as street calming, traffic diversion, entry monuments, and street lights. 75E-207 (5) Insuring that the public benefits derived from expenditures of public funds for improvements and beautification of streets and public facilities shall be protected by exercise of reasonable controls over the character and design of private buildings, structures and open spaces. The multi -family residential development will utilize existing water, sewer, and drainage infrastructure and will not result in the expansion of infrastructure. In addition, the Project will not result in the expansion of new or altered police or fire facilities. The Project will be subject to utility user tax, property taxes based on the valuation of the new construction and management company business taxes. The building facades and new landscaping are designed to deter graffiti, existing sidewalks will be removed and replaced with new sidewalks that are constructed to City standards, new street lights will be installed and the City's Building Security Ordinance will be implemented which includes security and crime preventing measures to help reduce City expenditures on public services and maintenance. In addition, the residential development will be subject to all required development impact fees. SECTION 6. INDEMNIFICATION. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution :procedures (including, but notlimited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. SECTION 7. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this ordinance 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 75E-208 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 8. CITY COUNCIL ACTIONS: The City Council hereby takes the following actions: 1. The City Council hereby adopts an Ordinance approving Amendment Application No. 2018-10 as follows: A. Subject to compliance with the Mitigation Monitoring and Reporting Program, the property at 2525 North Main Street shall be amended to Specific Development No. 93 and Specific Development No. 93 plan shall be adopted as set forth in Exhibit A and Exhibit B, attached hereto and incorporated herein by reference. B. The Amendment Application shall not take effect unless and until Environmental Impact Report No. 2018-01 and General Plan Amendment No. 2018-06, are each certified and approved by the City Council, and the associated Development Agreement No. 2018-01 is approved by the City Council and executed by all parties thereto. SECTION 9. PUBLICATION. The Clerk of the Council shall certify to the adoption of this ordinance and cause the same to be published in the manner prescribed by law. ADOPTED this day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:4�4 —/ /� Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75E-209 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE-RAMIREZ, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on . 2019. Date: Norma Mitre -Ramirez Acting Clerk of the Council City of Santa Ana 75E-210 EXHIBIT A SPECIFIC DEVELOPMENT NO. 93 2525 North Main Street Multi -Family Housing Project SECTION 1— APPLICABILITY OF ORDINANCE The Specific Development Zoning District No. 93 (SD -93) for the 2525 North Main Street multi -family residential project is authorized by Chapter 41, Division 26 Section 41-593 et seq. of the Santa Ana Municipal Code. SD -93 contains specific standards and regulations for the purpose of establishing land use regulations and development and operational standards for the project site. All other applicable chapters, articles, and sections of the Santa Ana Municipal Code are in effect unless expressly superseded by regulations contained in this ordinance. SECTION 2 — PURPOSE The Specific Development Plan No. 93 for the 2525 North Main Street project consists of standards and regulations established for the purpose of protecting the health, safety, and general welfare of the people of the City of Santa Ana by promoting and enhancing the value of property and encouraging the orderly development of the property. The objectives of the 2525 North Main Street multi -family project specific development plan include provisions of the following: Promote the City's image as providing high-quality residential projects for individuals and families of all income groups. 2. Create a clean and safe environment for the City's residents, workers, and visitors. Contribute to the North Main Street corridor by providing a high density residential development that supports nearby cultural, office and commercial uses. 4. Provide regulations that allow development, in response to market conditions while achieving overall City and community goals. SECTION 3 — Uses permitted in Specific Development No. 93 The following uses are permitted in the SD -93 district: (a) A maximum of 476 multiple -family dwelling units not exceeding a density of 81 dwelling units/acre. (1) The unit mix shall be comprised of: a. 70% studio and one -bedroom units b. 30% two-bedroom and three-bedroom units 75E-211 (2) Unit square footages ranging from a. 525 to 740 square foot studios b. 610 to 1,091 square foot one -bedrooms c. 909 to 1,472 square foot two -bedrooms. d. 1,362 to 1,550 square foot three -bedrooms (b) Home occupations, pursuant to section 41-192.1 of the Santa Ana Municipal Code. (c) Accessory recreational rooms, dog wash, club room, fitness room, wellness center, bike rooms, pools and spas for residential use. SECTION 4 — Uses subiect to a conditional use permit in Specific Development No. 93 (a) Childcare facilities caring for more than eight (8), but no more than fourteen (14) children. SECTION 5 — Maximum permitted floor area ratio (FAR) The maximum authorized building intensity for the 2525 North Main Street multi -family project is a floor area ratio (FAR) of 2.28, including residential areas, community -serving areas (e.g., laundry room, office, gym and community room) and interior corridors. SECTION 6 — Minimum lot size in Specific Development No. 93 The minimum lot size is 5.9 acres. SECTION 7 — Minimum street frontage in Specific Development No. 93 The lot shall have a minimum street frontage of at least 350 feet. SECTION 8 — Building height in Specific Development No. 93 (a) No residential structure shall exceed 78 feet (five stories with mezzanines) in height, as measured from the lowest adjacent grade of the structure to the top of the structure. (b) The parking structure and amenity deck shall not exceed 95 feet as measured from the finished grade to the top of the structure. (c) Along the east property line the building shall be tiered from two, three, four to five stories as shown on the approved site plan. SECTION 9 — Setback standards in Specific Development No. 93 (a) North setback. A minimum setback of ten (10) feet shall be provided between the property line and buildings along Santiago Park. (b) South setback. A minimum setback of fifteen (15) feet shall be provided between the 75E-212 property line and buildings along Edgewood Road. (c) West setback. A minimum setback of twelve (12) feet shall be provided between the property line and buildings along Main Street. (d) East setback. A minimum setback of forty (40) feet shall be provided between the property line and buildings. SECTION 10 — Off-street parking standard in Specific Development No 93 (a) The minimum off-street parking requirements for the project are as follows: (1) Capacity for of a minimum of 2.0 spaces per unit shall be provided including but not limited to use of valet parking, mechanical lifts, and/or tandem parking, subject to approval of the Executive Director of the Planning and Building Agency. (2) Parking stalls shall not be less than eight (8) feet six (6) inches wide and eighteen (18) feet long, except as noted in subsections 41-1320(c) and (d). Where double -striping is required, the width of stalls shall be measured from lines midway between each pair of stripes. Structural, mechanical, utility or similar appurtenances are only permitted adjacent to required stall areas if the required width of the stall is increased at least six (6) inches and if the appurtenance is not located so as to interfere with safe and free parking movement, car door opening, or of visibility. (3) Aisles to and from parking stalls shall not be less than: Twenty-three (23) feet wide for 90 -degree parking. (4) Drive aisles shall not dead-end; a tum -around method be provided to allow cars to exit if all stalls are occupied (5) The interior of the parking structure without natural lighting shall be painted white or shall be equipped with lighting devices which will provide a minimum maintained two (2) footcandle of light on the parking surface during hours of darkness. Subterranean parking areas shall maintain lighting twenty-four (24) hours a day. Lighting devices shall be protected by vandal resistant covers. (6) A minimum of ten (10) bicycle spaces shall be provided onsite. The design and materials shall comply with the approved materials board submitted for the project during building plan check. (7) Prior to final approval for occupancy or the issuance of the certificate of occupancy a parking management plan shall be submitted to the Planning Division for review, identifying parking per unit, and guest parking. The plan is subject to approval of the Executive Director of the Planning and Building Agency. Onsite parking shall be provided 75E-213 for residents and visitors of the Project and the parking demand of the Project site shall be actively monitored. Property owner "Owner" shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. SECTION 11— Vehicular Access in Specific Development No. 93 (a) There shall be one driveway for vehicular entry along Main Street, except as modified by Section 16 of SD -93. (b) The Emergency Vehicular Access Lane (Fire Lane) with access to Edgewood Road shall be gated per Orange County Fire Authority and City Public Works Agency requirements and standards. The emergency lane shall not be used for trash staging, trash loading and/or move-ins/outs. No other vehicular access or curb approach openings will be approved on Edgewood Road for the project. SECTION 12 — Open Space standard in Specific Development No. 93 (a) Pedestrian Walkways and Open Space. The project will provide a minimum of 15% of the total lot size shall be open space in the form of common, landscaped open space areas, pools, spas, deck, courtyard and lobby, interior community room, dining room, gym, business room, etc. (b) Courtyards. (1) East courtyards shall be a minimum of 33 feet wide by 80 feet in depth. (2) South and West courtyards shall be a minimum of 35 feet wide by 45 feet in depth. (3) North courtyards shall be a minimum of 30 feet wide by a minimum of 22 feet in depth from the property line and a minimum of two courtyards shall be provided. (c) Private Open Space. Each residential unit shall have a patio or balcony a minimum of 50 square feet in size. SECTION 13 — Walls/Fences standard in Specific Development No. 93 (a) East property line. A solid block wall with a minimum height of eight (8) feet shall be constructed along the east property line. The block wall shall be designed to contain a decorative cap, regularly -spaced decorative pilasters, and a decorative finish in accordance to the design provisions contained within the most recent version of the City's design guidelines. (b) North property line. Prior to the issuance of the first building permit, replace the existing wrought iron fence. The fence shall also incorporate decorative pilasters located a maximum of 50 feet on center. Any walls and/or fences are limited to six (6) feet in height. 75E-214 (c) South and West property line walls are prohibited. Within the front and street side setback walls and/or fences shall be limited to four (4) feet in height. SECTION 14 — Landscape standard in Specific Development No. 93 (a) A Landscape Plan prepared by a licensed landscape architect shall be submitted to the Planning Division for review and approval prior to the issuance of building permits. The Irrigation Plan shall include an irrigation system layout with the location of controllers and points of connection with data on valve sizes and gallons per minute (G.P.M.), the size and location of sleeves and all spray heads, including the location of conventional systems and drip systems; an irrigation legend with complete specifications; irrigation notes and construction details of all assemblies and components; a recommended irrigation schedule, preferably on an annual basis; and a summary block on the initial page of submitted plans that will present the above information clearly and accurately. The landscape plan shall include a Plant Legend containing: plant symbol, scientific name of plant material, common name of plant material, plant container size, and plant spacing. Very low, low and medium water usage plant materials are encouraged. The landscape plan shall provide a cross section of the eastern planter showing the planter at time of planting, after five (5) years and at full maturity. The cross section shall demonstrate the landscaping will adequately screen the project from the adjacent residential uses along the eastern portion of the Property. A minimum size of 36 -inch box trees shall be planted along street setbacks, open space areas and shared parking areas. (b) Per the arborist report dated May 4, 2018: (1) Retain and protect in place the existing eleven (11) healthy Ficus benjamina trees adjacent to the east property line. (2) Remove the existing eight (8) unhealthy trees (Liguidambar styraciflua) in the eastern planter and plant eight (8) minimum size of 60 -inch box trees in their place. (3) Plant new vertical and canopy specimen trees with a minimum size of 60 - inch box, 20 -feet on center in the east planter within 150 feet of the front property line and within 150 feet of the rear property line. (4) The planter along the east property line shall be sized to allow for future growth and health of the trees. (5) To the extent feasible, all other healthy mature trees on the property shall be protected and preserved. If the perseveration of the existing healthy, mature trees is not feasible because of the location of the approved structures on the property, the Owner shall work with Staff to evaluate the feasibility of relocating the healthy tree(s) to other locations on the property. 75E-215 (c) Project Landscaping: Landscaping shall be compliant with the City of Santa Ana's Landscape Water Conservation Ordinance Chapter 41, Article XVI of the Santa Ana Municipal Code. All landscape areas shall have a fully automatic irrigation system (including spray or drip) as required by the City of Santa Ana Landscape Water Conservation Ordinance. (d) All meters shall be appropriately screened from public view with trellis work and vines or hedge -type shrubs, or be incorporated into the residential structure. (e) Installation: Landscaping for the project shall be completed in phases by building and shall be installed and inspected prior to occupancy of units within that building. The Owner shall be responsible for maintaining all common area landscaping within the development. (f) Maintenance: All plant material shall be maintained per Section 41-609 of the Santa Ana Municipal Code. SECTION 15 — Residential Signage in Specific Development No. 93 (a) Signage for the project shall be consistent with Section 41-868 of the Santa Ana Municipal Code. SECTION 16 — Architectural Design in Specific Development No. 93 (a) Exterior materials. Prior to building plan check the Owner shall submit revised architectural elevations subject to the review and approval of the Executive Director of the. Planning and Building Agency. Exterior materials and finishes for the project shall comply with the approved materials board submitted for the' project including stone veneer, brick veneer, ceramic tile, metal canopies, flat and metal seamed roofs. All trash enclosures and similar ancillary structures shall match the texture, material and color of the building. (1) The east building wall windows (at the 40 foot building setback) shall be opaque or clerestory (above eye level) windows. (2) The east wall of the parking structure shall incorporate screen materials and be designed to screen the views from the amenity deck or parking structure to the neighborhood. (b) Green Building. Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. The project shall be constructed to Silver Standard or better LEED equivalent and shall at the minimum, incorporate bike lockers, bike sharing programing, electric vehicle charging stations, rain capturing systems, grey water capturing systems, and to the extent feasible, automobile sharing programing. (c) Public Art. Public Art shall be installed, and maintained with a value equivalent to 75E-216 one-half of one percent (0.5%) of the total construction cost of the Project. Total construction cost shall mean all design, engineering and construction costs. A public art plan shall be prepared and submitted to the City no later than one hundred eight (180) days before final approval for occupancy or the issuance of a certificate of occupancy and the approved art shall be installed prior to final approval for occupancy of the issuance of a Certificate of Occupancy for the Project. (d) Storage. A minimum of 250 cubic feet of storage, in addition to interior bedroom closets, shall be provided with minimum dimensions of 4 feet by 8 feet per unit. (e) Hardscape materials. Enhanced paving materials shall be installed at the Main Street driveway entrance. The actual paving materials shall be approved by the Planning Division. (f) Lighting standards/fixtures. The light fixtures are to integrate design elements of the building and landscape architecture. Lighting is to be designed to confine the direct rays of the artificial lighting within the boundaries of the development. Specifications of light standards/fixtures and photometrics plan shall be submitted to Planning Division for review and approval by the Planning Division prior to the issuance of building permits. (g) Composite Utility Plan. Composite utilities shall not be allowed within required parking, turnaround and landscape areas or on any fagade facing a public street. (h) Mechanical Equipment, Appurtenances, and Conduits. All mechanical equipment, heating, ventilation, air conditioning (HVAC) units, satellite dish systems, solar panels, thermal solar heaters, utility meters, above ground utility. and fire .safety connections will be, screened, located out of public view or be architectural integrated into the project design within designated rooms, inside walls, behind parapets, or through a combination of landscape and hardscape materials. (i) Trash Enclosures. Trash bins shall be stored in designated trash enclosures. There shall be an onsite designated trash staging area only to be used on service days and the staging area and bins shall not disrupt vehicular use of the driveway. The minimum requirements needed to service the location shall be clearly indicated on the plans and subject to the approval of the Public Works Agency. SECTION 17 — Secondary Vehicular Access for Specific Development No. 93 (a) Secondary Vehicular access via Walkie Way/Park Santiago Drive. The use of Santiago Park property for vehicular access into the Project shall be replaced with equivalent land (equal in size and appraised value) as required by the Land and Water Conservation Fund grant conditions. The Santiago Park Entrance design shall be subject to the review and approval of the City Planning & Building, Public Works, and Parks, Recreation and Community Services Agency Directors, including residential units to front onto Santiago Park, Main Street, and the Santiago Park Drive 75E-217 entrance. The Project fagade along Santiago Park shall be consistent with and reflect the natural, current state of the Park and include articulation of the building fagade to include open courtyard areas. The Owner shall pay for sole cost and expense, prepare any and all documents required by the Land and Water Conservation Fund for review and submission to the State of California. (b) Traffic Signal Modification for the Walkie Way/Park Santiago Drive and Main Street intersection shall include relocate poles, relocate/upgrade traffic cabinet, install conduit and wiring, Accessible Pedestrian Signals pedestrian push buttons, vehicle/bike video detection and signing and striping as needed to accommodate the proposed entrance to the development. The design and improvements for the vehicular access shall be solely at the Owner's expense. SECTION 18 — Property Maintenance in Specific Development No. 93 (a) Onsite Property Manager. The Project shall include 24-hour on-site Property Management services and personnel. Up-to-date 24-hour contact information for the on-site personnel shall be provided to the following City Agencies on an ongoing basis: (1) Police Department (2) Fire Department (3) Planning and Building Agency (4) Community Development Agency (b) Maintenance. The property shall be maintained free of trash, debris and graffiti. Graffiti shall be removed within ten (10) days after its appearance in accordance with Section 10-227 of the Santa Ana Municipal Code. (c) Crime Free Housing. The approved Crime Free Housing Plan shall be implemented and administered by the Owner. (d) Building Security. All structures and parking lots shall comply with the provisions of Chapter 8, Article 11, Division 3 of the Santa Ana Municipal Code (Building Security Ordinance). (e) Emergency Evacuation Plan. An approved Emergency Evacuation Plan from City Police and Fire Protection agencies shall be on file for the project. Up-to-date 24- hour emergency contact information for the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (1) Police Department (2) Fire Department (3) Planning and Building Agency (4) Community Development Agency (f) On Going Property Maintenance. Prior to the issuance of the first certificate of occupancy a property maintenance agreement shall be recorded to the property, the 75E-218 agreement must conform to city standards, with the City of Santa Ana a party to Agreement with rights to compel owner to cure. Including provisions that the property and all improvements located thereupon are properly maintained, Owner (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (1) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (2) Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses, (3) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; (4) Ongoing maintenance, repair and upkeep of the property and all improvements, located thereupon at all times (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (5) If Developer and the owner of the property are different (e.g., if the applicant is a tenant or licensee of the property or any portion thereof), both the applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. (6) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement. 75E-219 (7) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City. (8) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of final approval for any construction permit related to this entitlement. 75E-220 Exhibit B h49� 3169 MclEH'p0.V LN ' A 5'`.'f % ,a�° M1 `"w'w°"'. FAIRHAVENA . LALB BB R, Y j o RS A SDJt: / acxrc iv 3 w RS R1 Al PHLR R1 mvcmw nv Al V1Bm Al nv F Al R1 $ k R19 Rt c DoV TST 4y Rt R1 R1 3 wovE SD93 W`u $ ft1 D � 9 .i lRANA M RIA CS XY.YS FttLYF.YYBo R1 R1 T.R. CH601Y ST Si Rg k R, $ Z R1 Bacllx000 5 BSECIT 3 m R1 $ R1 p1 R, g Bi[cmTcco i } R1 o ST AT a LL R, ASpBNBT Rl RI swTA Liw nv I 9T LLLMT LVN ^ R2 RJ Rl R1 GYRALOWRt = S TA CLAKAM YJITA CIdPAtl a Z ( «o Q 3 cs r2 R1 R2 i R2 R1 i R1 g R1 ALOHA, BJIO� Y BURALOAV BYFNOtl R2 .11ALDAV R1 P1 P1 6'ALW AV j =ND ST R1 R1 �3 [[CCuTLLMA AV u 01 -MO(...; Ri1 v a LL R1 R1 qt R]n �NDII R1 � k o � iuT Sr l" R2 k g f14i8T it4i 5i RS P, m y lll�F I R1 Pt Y adn i mM IT A R1 P1 50A fll ,SIH si CIA. R1 1.ST A 0 R1 fl1A 1AID Rt R1 1rtx IT yTM R R2 SSMR C1 -MD* d y pyRAp�ll AU tf([ SD]J'i cl C1 -MD CIAIDI CIJIDII GRADIN C5 DS k 17TH ST 0 1 CS c5 a cs Cs sF] Sp3 m SVJ w Bu xle b 7-5-9 hxr DAn.. gllanB-d-8 0' P'MTP9 21�T[� 75E-221 IN lvV Vl 4I, I s Al GENERALAGRICULTURAL CSM SOUTH MAN STREET COMMERCIAL DIST. R2 TNO-FAMLYRESDEICE -B PARKNGMODFICATION Cl COMMUNITY COMMERCIAL GC GOVERNMENT CENTER R3 MULTIPLE- FAMILY RESIDENCE -OZ OVERLAYZONE CINO COMMUNITY COMMERCIAL - MUSEUM DIST. Ml LIGHT INDUSTRIAL R4 SUBURBAN APARTMENT PRO PLANNED RESIDENTIAL C2 GENERAL COMMERCIAL M2 HEAVY NDRESIDENTIALIAL RE RESIDENTIAL ESTATE DEVELOPMENT C4 PLANNED SHOPPING CENTER O OPENSPACE SD SPECIFIC DEVELOPMENT -HD2 HEIGHTDLSTRICTII C5 ARTERIAL COMMERCIAL P PROFESSIONAL SP SPECFDPLAN OR COMMERCIAL RESDENTIAL RI SINGLE-FAMLV RESIDENCE SECTIONAL DISTRICT MAP: 6-5-9 e CITY SANTA ANA, CALIFORNIA OF 75E-221 75E-222 Comments from November 15, 2017 Sunshine Ordinance Meeting regarding 2525 N. Main Street A presentation by the Applicant's team was made to outline the development process and the review that the City of Santa Ana will conduct including the environmental review. A brief description of the project design was provided as well as discussion of anticipated benefits to the community. Comments and questions were received from the attendees. Responses have been provided. Land Use: 1. Why buy a property to rezone? o The site was identified in 2015 by the City of Santa Ana as a likely rezone site and the City placed it on its Envision Map, designating it as residential with unlimited height and unlimited density. In addition, the site should be residential because the proposed residential use next to single family residential is a prototypical manner in which cities are planned. Typically, it is much more common for home owners to resist commercial uses next to their homes, not a residential use. In fact" the State of California is now focusing on requiring EIRs to study the impacts of commercial uses adjacent to homes. 2. Build an office project. o Office would create significantly more traffic than the existing use, for instance, a 5 -story office building would generate approximately 10,000 daily trips compared to approximately 2,812 daily trips for the proposed use (if the existing building were occupied it would create 2,938 daily trips). Additionally, office vacancy in this sub -market is approximately 2096, whereas multi family vacancy is less than 3%. Clearly the need for housing in Santa Ana is one of the most extreme. It is well known that Santa Ana is one of the most overcrowded/dense cities in terms of people to housing ratios (for every 1 housing unit, there are 4.5 people; whereas Irvine is 1 to 2.6 and Newport Beach is 1 to 2.2). The existing housing ratio in Santa Ana is detrimental, by creating a shortfall of housing results in over -crowding and unaffordable housing options. 3. Putting Single family units on site will solve crime issue. o We are in the process of researching and studying the effects that a larger amount of people will have on crime in the area. We will share the data with the community once it is completed. 4. No apartments. o We are hopeful that the quality of the community will change these opinions and the neighbors will take the time to learn and better understand about the community and City benefits. S. No re -zoning. EXHIBIT 6 SUNSHINE MEETING MINUTES 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO.:T f;&22I3D. 2018-10 o We are hopeful that the quality of the community will change these opinions and the neighbors will take the time to learn and better understand about the community and City benefits. 6. Need to disclose previous mortuary use on site to people. o Asa part of the environmental impact report, it will investigate all former uses and of course the report will be made public. 7. Would you rezone a property next to your neighborhood? o We believe in urban areas the future of housing is denser than in years past The data is overwhelming that developing multi family in close proximity to job centers will reduce traffic, reduce environmental issues, and is less taxing on the infrastructure. 8. On this site you can put 40 single family/for sale homes and they will sell. o The cost of urban infill sites such as this one (17mm) make it cost prohibitive to develop single family. In addition, this is a major thoroughfare with a mixture of uses and significantf-eeway noise, all making for the site to be incompatible forsingle family residences. 9. Oppose apartments of any kind. o It is our understanding the neighbor's impression of an apartment project is not consistent with what we intend to develop. In the upcoming weeks, we will launch a website detailing the quality of construction and vast amenities. The project will resemble a fine resort; notsome of the underwhelming projects from years ago. Keep in mind, the folks that will occupy this community will make a minimum income of$58,000 peryear, with an average income of$85,000 ayear. 10. Our neighborhood is a jewel, don't want your project it will damage our neighborhood. o It is our intention to leave the community better than we found it We intend to post on our website all of the benefits the project will bring to the City and the Community. 11. Rezone would take away our quality of life, some business use ok. o Again, we are hopeful that the quality of the community will change these opinions and the neighbors will take the time to learn and better understand about the community and City benefits. 12. If the rezoning is going to happen, why are we even talking? o The City of Santa Ana has a process for review of the application that includes an environmental review before Planning Commission and City Council hearings. The developer would not have acquired this site had City staff not identified it as an unlimited density and unlimited height residential site over 3 years ago. Nevertheless, the site is not re -zoned, City staff, Planning Commission and City Council will take into account both the needs of the City and the existing community in coming to a determination if the site is ultimately rezoned. Please be mindful that Main Street and its businesses, which include the hospitals, retail and services, are supportive of more quality housing stock to its workforce. In addition, the project application will be following the process of City 75E-224 review including the CEQA environmental process before any decisions are made. 13.. So it is a foregone conclusion that the re zone will happen? o The City of Santa Ana has a process for review of the application that includes an environmental review before Planning Commission and City Council hearings. The developer would not have acquired this site had City staff not identified it as an unlimited density and unlimited height residential site over 3 years ago. Nevertheless, the site is not re -zoned, City staff, Planning Commission and City Council will take into account both the needs of the City and the existing community in coming to a determination if the site is ultimately rezoned. Please be mindful that Main Street and its businesses, which include the hospitals, retail and services, are supportive of more quality housing stock to its workforce. In addition, the project application will be following the process of City review including the CEQA environmental process before any decisions are made. 14. Why bring apartments to this neighborhood? o Office vacancy in this sub -market is approximately 20%, whereas multi- family vacancy is less than 3%. Clearly the need for housing in Santa Ana is extreme.. It is well known that Santa Ana is one of the most overcrowded/dense cities in terms of people to housing ratios (for every 1 housing unit, there are 4.5 people; whereas Irvine is 1 to 2.6 and Newport Beach is 1 to 2.2). The existing housing ratio in Santa Ana is detrimental, by creating a shortfall of housing results in over -crowding and unaffordable housing options. 15. We need apartments but not on this site. There are a lot of apartments planned for adjacent areas. o We find the location of this site, adjacent to both public transportation and major thoroughfares (the 5 Freeway and the 22 Freeway) make it ideal for multi family housing, not to mention the adjacent retailers and employers are in desperate need for high income households in the sub- market, along with knowledgeable workers (those workers with specific skill sets). Please keep in mind that the culture has changed in that professionals today are renting in fargreater numbers than the previous generation. In addition, we would sell these units as condominiums, once the market allows us to do so, however, post— recession lenders still have not loosened their requirements making it difficult for many to qualify for mortgage financing. 16. Not appropriate for our neighborhood. o We find the location of this site, adjacent to both public transportation and major thoroughfares (the 5 Freeway and the 22 Freeway) make it ideal for multi family housing, not to mention the adjacent retailers and employers are in desperate need for high income households in the sub- market, along with knowledgeable workers (those workers with specific skill sets). Please keep in mind that the culture has changed in that professionals today are renting in fargreater numbers than the 75E-225 previous generation. In addition, we would sell these units as condominiums, once the market allows us to do so, however, post— recession lenders still have not loosened their requirements making it difficult for many to qualify for mortgage financing. 17. Is there any research about how it works to have apartments adjacent to older neighborhoods? o The site is situated on a main thoroughfare with all different types of uses, situating a multi family community next to services will reduce the use of cars and support the other adjacent retailers. We are studying potential means to mitigate cut -through traffic into Santiago Park either through reconfiguration of the existing egress, or a gate. In general, most cities are planned with multi family housing next to single family housing with commercial next to the multi family. The site makes much more sense as a multi family residential use. Typically residents are unhappy when commercial uses are next to their homes, not residential uses. That is why this site was identified three years ago by staff to be rezoned for residential. In addition, the park is having vagrant issues and this problem will be somewhat mitigated with professionals living at this location, because it will create a deterrent via a nighttime presence. 18. Our community opposed apartments being built in our vicinity in the 1960's and they did not get built. o The vision and the needs of the City have changed. The City now is greatly in need of housing stock in order to prevent overcrowding and to provide affordable housing options. Again, the previous generations were able to navigate their families into home ownership, but the environment has changed and the barriers to acquire a home are significant and real. 19. What is the Sunshine Ordinance? o A City Ordinance that requires a community meeting to be held by the applicant after the application is filed to educate about the proposed project and obtain input. 20. Why doesn't developer put money in a property in a broken neighborhood in Santa Ana? o The developer has been active in Orange County and has developed in all types of neighborhoods. The existing office building was developed as a boiler room/call center for Wells Fargo; it is now obsolete because this type of use has been farmed out to other countries. The site will be developed, and again, this type of use will provide for needs of the retailers, of the adjacent employers, produce significant revenue for the City, and is situated on a public transit corridor, ideal for reducing the use of automobiles. 21. This neighborhood has been here for 100 years. o We know this is a fantastic neighborhood and it is our objective to leave the neighborhood better than we found it Again, the site is not in Park Santiago, it is on a main thoroughfare, and its position is ideal to work _----- --- -- --- -- - -- 75E-226 - -- in harmony with the adjacent retail, restaurants, office and main transit corridors. Keep in mind that for decades, this site has been a different use than the single family homes located in Park Santiago and it is our understanding that the issues were minimal. 22. No rezoning, no GPA, no apartments o Please refer to responses to comments 4 and 5. 23. Don't want to be packed in like sardines. o The density of this project is consistent with hundreds of other Southern California projects, including those found in Santa Ana, Irvine, Newport Beach, Costa Mesa, Anaheim and Huntington Beach. The projects have added tremendous value to both the cities and the communities they are situated in by providing quality housing, bringing qualityfolks to the neighborhood, and supporting local businesses. The proposed project will provide more than 1 O the revenue compared to the existing structure, thereby helping to reduce any fiscal challenges the City currently faces. The City is in need of a variety of new services and better services and this can only be achieved through expansion of its tax base. 24. Concerned about privacy, people would be able to see into backyards of adjacent houses. o We have purposely oriented the unit windows toward the park, toward the courtyards and away from any of the adjacent neighbor homes. We currently are studying sight lines and in the event it is determined that this is an issue, the developer will either revise the design, pay for fencing and/or landscaping to screen the backyards. It is our understanding that the adjacent 9 -story office building (which is far higher) has not created privacy issues for the adjacent homes. It is also our intention to bury existing power lines, thereby beautifying the adjacent neighborhood. 25. This project would ruin our quality of life. o Please refer to responses to comments 21,23 and 24. Trak and Parking: 1. Where are the 900 cars? o There will be a parking structure that the buildings are wrapped around. The center of the site will contain a 7 -level parking structure, the residences will be constructed around the garage, allowing residents to park on the same level as their home. This type of development is both ideal for the residents and screens and screens the parking structure from surrounding area views. 2. Streets aren't wide enough to accommodate apartments. o We will work with our traffic engineers, architects and City staff to make the egress away from Park Santiago community and towards Main Street 3. Cowan Heights residents cut through our streets already. 75E-227 o We believe you have a wonderful community and we will look into any means to mitigate this and any existing nuisance. 4. Nearby Apartments are not full and traffic is already miserable. o Santa Ana is among the worst cities in terms of housing shortages in the nation, in fact, Santa Ana's housing share of the housing stock in 2000 was 34% of the housing in the vicinity (including Santa Ana, Costa Mesa, Newport Beach, Irvine, Tustin); however, by 2015 Santa Ana's share was down to 2791b. As noted above, Santa Ana vacancy rate is less than 391o, it is virtually impossible to have a lower vacancy rate; it is clearly indicative of a housing under -supply. There have been countless studies and articles over the last 3.5years documenting Orange County's housing shortage, resulting in folks paying far too much for housing, increasing traffic, increasing pollution, and destroying the quality of life (because people end up spending hours a day in their cars commuting). If Orange County's housing shortage is not solved, it will drive out workers and drag down the region's robust economy. Without more places for workers to live, more 20 and 30 -somethings will leave and business will struggle to recruit high quality employees. 5. Need to account for all the future apartments in Santa Ana and Orange in area in traffic analysis. o The traffic study area is extensive and will address the appropriate area as determined by City staff and will analyze up to 2040 traffic. 6. Need to assume 2 persons per apartment, this is Santa Ana, there won't be 1 person in an apartment. o We have taken into account data from apartment communities in determining the quantity of parking that is necessary to operate an organized and quality community. 7. There is a huge problem with cars running through Park Santiago now. o We will work with our traffic engineers, architects and City staff to make the egress away from Park Santiago community and towards Main Street 8. You think there will be a benefit of reduced traffic with apartments instead of commercial? o Office would create significantly more traffic than the existing use, for instance a 5 -story buildings would generate approximately 10,000 daily trips compared to the approximately 2,812 daily trips for the proposed residential use (if the existing building were fully occupied it would create approximately 2,938 daily trips). 9. What is a trip? o The movement of one car in or out 10. How many trips anticipated for project? You have to assume 90% of people will leave in the morning and come home at same time in evening. o Based on the traffic engineer's study, the proposed project would generate 2,812 trips per day, whereas the existing building if fully used would generate 2,938 trips per day. 11. How many parking stalls are currently on site? 75E-228 o There are 441 stalls on site. 12. The number of parking spaces on site don't correlate to traffic. o Business uses highlight cars coming in and out all day, in addition, they have visitors and services that create trips throughout the day. Employees also contribute to the trip count with multiple daily trips. 13. Look at current traffic now. o Please keep in mind that the proposed project will result in less daily trips than the current structure would iffully leased and operational. 14. People park on our streets on Spurgeon now, it will get worse. o We are providing ample parking, it will exceed the parking needs of the project In fact, we would be open to discussion of providing guest parking for the Park Santiago community. 15. Where will Discovery Science Center park? o The Discovery Science Center has plans for anew garage on their rocket lot Discovery Science Centerfully supports our project 16. Take into consideration, Park Santiago only has three access points, traffic at Edgewood and Main is already impacted. o Our main egress will be off afMain Street Residents leaving the project on Edgewood can only turn right out to Main. In addition, we are open to exploring other means to help any existing issues with cut-thrus. 17. More traffic will result in more accidents. o As stated previously, the current use produces more daily trips than the proposed use. 18. There should be no entrance to the project on Edgewood, keep project traffic on Main. o Our main egress will be off of Main Street Residents leaving the project on Edgewood can only turn right out to Main. In addition, we are open to exploring other means to help any existing issues with cut-thrus. 19. Parking on neighborhood streets is already a problem. o 2525 N. Main is not in Park Santiago. Residents will be provided with ample parking on site. The logistics of parking blocks away from their homes makes little sense. Again, the community will be over -parked, not under -parked. 20. Can we see the traffic study? o The City will review the traffic analysis and it will be apart of the environmental document, which will be an EIR, which the community will be able to review and comment on as a part of the City review process. Affordable Housing: 1. What is a market rate unit? o It is housing that is either sold or leased at the price the market bears. 2. Would you save money including inclusionary housing? o No. 75E-229 3. Will there be inclusionary housing, the application says there will be low and very low units included? o When the application was submitted on site inclusionary was considered, but the project will propose to pay in -lieu fees and not include on site. 4. Have you made any promises to groups about affordable housing? o No, in our business we meet with affordable housing developers to see what projects are planned, This project will require payment of a fee in excess of$6,500,00 in order to subsidize much needed affordable housing throughout the City. 5. No affordable units on site o It is not our current plan to provide any affordable units on site. Crime: 1. Is there security on site? o Currently there are workers on site during the day, after dusk and until dawn we have on site security. 2. Is the property as is bringing crime to the neighborhood? o Yes, we have had significant vandalism and theft of copper pipes, copper wire and fixtures. The damage is in excess of hundreds of thousands of dollars. Currently there are dozens of vagrants camping/living in the riverbed and under the overpass from Main Street 3. Increasing the population won't decrease crime. o Crime is simply a reality of a urban location. We believe putting residents at this location will result in a nighttime presence, especially in the park, thereby deterring crime. In addition, we will have 24 hour security that will patrol the park and Park Santiago (if the community would like this benefit provided). 4. 1.2 million a year to the General Fund will provide 3 police officers that is nothing. o This amount of revenue will provide significantly more than 3 officers. Importantly, the City, like most City's needs to find more sources of revenue to provide much needed services. The proposed project, unlike others, is a budget surplus for the City, it is a wonderful opportunity to bring much needed professional housing to the City and additional revenue. S. Putting single family on the site will solve the crime issue. o We believe the more people the greater, in deterring crime in the area. 6. We have one of the first neighborhood watch groups, why haven't you come to talk to us? o We have reached out to the community group and to date they were not available to meet 7. It is insulting that you talk about crime in our neighborhood. o We are hopeful that crime will be mitigated in the future. 8. Was there vandalism when the building was used as a call center? o We do not have a crime reportfor the area, we have made a requestfor any such reports. 75E-230 Environmental: 1. How many persons will the project bring? o Approximately 850 people. 2. We have a drought where will water come from? o Currently we are not in a drought, but we are aware historically ther has been an issue. We have verified that there is more than enough water for this and many other projects. In addition, this question will be addressed in the environmental review. 3. Look at all surrounding projects, will they be considered? o Existing and proposed development will be addressed in the environmental review. 4. What is the impact on current water supply? o This will be addressed in the environmental review. Other: 1. Are you on the Next Door site? o No. 2. Have you made any contributions to City Council persons, have you been promised anything? o The project entity has not and nothing has been promised. 3. Don't care if project brings money for Santa Ana, we shop in Orange. o We hope and suspect it is not the sentiment of the majority of the homeowners in Park Santiago. We want to make the community better than we found it and we are confident we will do that Keep in mind that current Park Santiago residents will have access to all the onsite amenities, that includes pools, spas, full size gym, rock climbing wall, lounge, roof top pool and much more. 4. How many developments has Vineyard been involved in that required zone changes, were they successful? Did they back up to residential neighborhoods? o The ownership group has been involved in dozens of like projects, and many of these involved successfully rezoning. Many were adjacent to single family homes and in our experience, this type of zoning is most compatible with single family homes (not an office building). Most cities are planned with single family next to multi family, then retail and commercial uses (typically there is a mixed -sue area with multi family and commercial). This is why more than 3 years ago the City targeted this site for multi family housing nd this use would be most beneficial to the City. A recent project was approved at Dyer and Red Hill in an industrial area. 5. Is the powerpoint available to the Park Santiago HOA? o We will shortly launch a website with all the information that we attempted to present at the Sunshine meeting. 6. Why didn't you meet with us before you submitted the application? 75E-231 o We tried to meet but the meeting agenda had already been set we are trying to set a meeting soon. Will you meet with the HOA? o Yes. 8. We don't need this project for Santiago Park to be restored, we have paid taxes and City owes us the park restoration. o It is our understanding the City does not have funding and certainly has not committed funds to rehab the park The project will pay significant taxes thatgo directly to the City's general fund. 75E-232 91 r( o (2�5 c�2t�l� ark PJ.Cr TRes GR uyViN 0 n Sign In Sheet November 15, 2017 Name Email 2.+ ca`,torn.o ,'}ren k.nsOcPto —�� Y � ► ail Phone No. 7 11 f— rill;z led-116keo "A. L — ILLI —7311 3. Sco�F �io� evi 1Y' s� Q` M X01-CLM c+3 �n a. c CO �^ 0 21327 Zai/ X12.5 = 7�Z5 2ya�w,conj 6- 6. 7. 8. y,e. 9. 10. I t�..�� a� 5•, 13. o l�o�f«-if nu 14. 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Ca 94607 rlchard@lozeaudrury.com Via Email and Hand Delivery November 26, 2018 Planning Commission Minh Thai, Executive Director c/o Selena Kelaher, AICP City of Santa Ana City of Santa Ana Planning and Building Agency I M20 Planning and Building Agency I M20 20 Civic Center Plaza 20 Civic Center Plaza Santa Ana, CA 92702 Santa Ana, CA 92702 mthai(a)-santa-ana.org skelaher(aDsanta-an a.org Raul Godinez, City Manager City of Santa Ana City Manager's Office 20 Civic Center Plaza, 8t' Floor Santa Ana, CA 92701 rgodinez(a)santa-ana.org Re: Comment on Final Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 Honorable Members of the Planning Commission, Ms. Thai, Mr. Godinez and Ms. Kelaher: I am writing on behalf of the Laborers International Union of North America, Local Union No. 652 and its members living in and near the City of Santa Ana ("LIUNA"), regarding the Draft Environmental Impact Report ("DEIR") and Final Environmental Impact Report ("FEIR") prepared for the Project known as 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34, including all actions related or referring to the proposed project that would demolish the existing 81,172 square foot vacant two- story office building and 442 space surface parking lot to redevelop the 5.93 -acre EXHIBIT 7 RESPONSE TO LOZEAU DRURY LLP COMMENT LETTER 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GP�, AA NO. 2018-10 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 2 site with 405,290 square feet of residential buildings that would provide 496 market - rate multi -family residential units located at 2525 North (N.) Main Street, in the northern portion of the City of Santa Ana approximately 500 feet east of Interstate 5 (1-5) ("Project"). After reviewing the DEIR and FEIR (collectively, "EIR"), we conclude that the EIR fails as an informational document and fails to impose all feasible mitigation measures to reduce the Project's impacts. Commenters request that the Planning and Building Agency address these shortcomings in a revised draft environmental impact report ("RDEIR") and recirculate the RDEIR prior to considering approvals fo the Project. We reserve the right to supplement these comments during review of the Final EIR for the Project and at public hearings concerning the Project. Galante Vineyards v. Monterey Peninsula Water Management Dist., 60 Cal. App. 4th 1109, 1121 (1997). PROJECT DESCRIPTION The Project would demolish the existing 81,172 square foot vacant two-story office building and 442 space surface parking lot to redevelop the 5.93 -acre site with 405,290 square feet of residential buildings that would provide 496 multi -family rental residential units. The Project would provide only market -rate housing, with no units designated for low or moderate income residents. Of the units, 77 percent would be studios or one -bedroom units, 18 percent would be two-bedroom units, and 6 percent would be three-bedroom units. The residences would be provided within 5 -story buildings topped with mezzanines that would be approximately 65 -feet in height along the western and central portion of the site; and would tier down to 2 - story, approximately 20 -foot high structures on the eastern portion of the site. The residential units would be wrapped around a central parking structure that would have 8 -levels of parking above ground, and 1 level of underground parking. The parking structure would be located in the west central portion of the project site and would provide direct access to the leasing office and walkways to residential units. The proposed project would require the following discretionary approvals from the City of Santa Ana: • General Plan Amendment (GPA) Land Use Change from PAO (Professional & Administration Office) to a District Center (DC) designation • Amendment Application (AA) for a zone change from Professional (P) to a Specific Development (SD) designation • Development Agreement 75E-246 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 3 LEGAL STANDARD CEQA requires that an agency analyze the potential environmental impacts of its proposed actions in an environmental impact report ("EIR") (except in certain limited circumstances). See, e.g., Pub. Res. Code § 21100. The EIR is the very heart of CEQA. Dunn -Edwards v. BAAQMD (1992) 9 Cal.AppAth 644, 652. "The 'foremost principle' in interpreting CEQA is that the Legislature intended the act to be read so as to afford the fullest possible protection to the environment within the reasonable scope of the statutory language" Comms. for a Better Env't v. Calif. Resources Agency (2002) 103 Cal. App. 4th 98, 109. CEQA has two primary purposes. First, CEQA is designed to inform decision makers and the public about the potential, significant environmental effects of a project. 14 Cal. Code Regs. ("CEQA Guidelines") § 15002(a)(1). "Its purpose is to inform the public and its responsible officials of the environmental consequences of their decisions before they are made. Thus, the EIR 'protects not only the environment but also informed self-government.'" Citizens of Goleta Valley v. Board of Supervisors (1990) 52 Cal.3d 553, 564. The EIR has been described as "an environmental 'alarm bell' whose purpose it is to alert the public and its responsible officials to environmental changes before they have reached ecological points of no return." Berkeley Keep Jets Over the Bay v. Bd. of Port Commis. (2001) 91 Cal. App. 4th 1344, 1354 ("Berkeley Jets"); County of Inyo v. Yorty (1973) 32 Cal.App.3d 795, 810. Second, CEQA requires public agencies to avoid or reduce environmental damage when "feasible" by requiring "environmentally superior' alternatives and all feasible mitigation measures. CEQA Guidelines § 15002(a)(2) and (3); see also Berkeley Jets, 91 Cal. App. 4th 1344, 1354; Citizens of Goleta Valley v. Board of Supervisors (1990) 52 Cal.3d 553, 564. The EIR serves to provide agencies and the public with information about the environmental impacts of a proposed project and to "Identify ways that environmental damage can be avoided or significantly reduced." CEQA Guidelines §15002(a)(2). If the project will have a significant effect on the environment, the agency may approve the project only if it finds that it has "eliminated or substantially lessened all significant effects on the environment where feasible" and that any unavoidable significant effects on the environment are "acceptable due to overriding concerns." Pub.Res.Code ("PRC") § 21081; CEQA Guidelines § 15092(b)(2)(A) & (B). The EIR is the very heart of CEQA. Dunn -Edwards v. BAAQMD (1992) 9 Cal.AppAth 644, 652. CEQA requires that a lead agency analyze all potentially significant environmental impacts of its proposed actions in an EIR. PRC § 75E-247 3 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 4 21100(b)(1); CEQA Guidelines § 15126(a); Berkeley Jets, 91 Cal.AppAth 1344, 1354. The EIR must not only identify the impacts, but must also provide "information about how adverse the impacts will be." Santiago County Water Dist. v. County of Orange (1981) 118 Cal.App.3d 818, 831. The lead agency may deem a particular impact to be insignificant only if it produces rigorous analysis and concrete substantial evidence justifying the finding. Kings County Farm Bureau v. City of Hanford (1990) 221 Cal.App.3d 692. "The 'foremost principle' in interpreting CEQA is that the Legislature intended the act to be read so as to afford the fullest possible protection to the environment within the reasonable scope of the statutory language." Communities for a Better Env't v. Calif. Resources Agency (2002) 103 Cal.AppAth 98, 109. While the courts review an EIR using an "abuse of discretion" standard, "the reviewing court is not to 'uncritically rely on every study or analysis presented by a project proponent in support of its position. A'clearly inadequate or unsupported study is entitled to no judicial deference.'" Berkeley Jets, 91 Cal. App. 4th 1344, 1355 (emphasis added), quoting, Laurel Heights Improvement Assn. v. Regents of Univ. of Cal. (1988) 47 Cal.3d 376, 391409, fn. 12. A prejudicial abuse of discretion occurs "if the failure to include relevant information precludes informed decisionmaking and informed public participation, thereby thwarting the statutory goals of the EIR process." San Joaquin Raptor/Wildlife Rescue Center v. County of Stanislaus (1994) 27 Cal. App. 4th 713, 722]; Galante Vineyards v. Monterey Peninsula Water Management Dist. (1997) 60 Cal. App. 4th 1109, 1117; County of Amador v. El Dorado County Water Agency (1999) 76 Cal. App. 4th 931, 946. The lead agency must evaluate comments on the draft EIR and prepare written responses in the final EIR ("FEIR"). (PRC §21091(d)) The FEIR must include a "detailed" written response to all "significant environmental issues" raised by commenters. As the court stated in City of Long Beach v. LA USD (2009) 176 Cal.AppAth 889, 904: The requirement of a detailed written response to comments helps to ensure that the lead agency will fully consider the environmental consequences of a decision before it is made, that the decision is well informed and open to public scrutiny, and that public participation in the environmental review process is meaningful. The FEIR's responses to comments must be detailed and must provide a reasoned, good faith analysis. (14 CCR §15088(c )) Failure to provide a substantive response to comment render the EIR legally inadequate. (Rural Land Owners Assoc. v. City Council (1983) 143 Cal.App.3d 1013, 1020) 75E-248 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 5 The responses to comments on a draft EIR must state reasons for rejecting suggested mitigation measures and comments on significant environmental issues. "Conclusory statements unsupported by factual information" are not an adequate response. (14 CCR §15088(b, c); Cleary v. County of Stanislaus (1981) 118 Cal.App.3rd 348) The need for substantive, detailed response is particularly appropriate when comments have been raised by experts or other agencies. (Berkeley Keep Jets v. Bd. of Port Commis (2001) 91 Cal.AppAth 1344, 1367; People v. Kern (1976) 72 Cal.app.3d 761) A reasoned analysis of the issue and references to supporting evidence are required for substantive comments raised. (Calif. Oak Found. v. Santa Clarita (2005) 133 Cal.AppAth 1219) The FEIR abjectly fails to meet these legal standards, as it is riddled with conclusory statements lacking any factual support or analysis. DISCUSSION 1. The EIR Fails to Analyze Indoor Air Quality Impacts. We submit herewith the comments of indoor air quality expert, Francis Offermann, PE, CIH. (Exhibit A). Mr. Offermann, a Certified Industrial Hygienist, concludes that it is likely that the Project will expose future residents to significant impacts related to indoor air quality, and in particular, emissions for the cancer- causing chemical formaldehyde. Mr. Offermann is one of the world's leading experts on indoor air quality and has published extensively on the topic. Mr. Offermann explains that many composite wood products typically used in modern home construction contain formaldehyde -based glues which off -gas formaldehyde over a very long time period. He states, "The primary source formaldehyde indoors is composite wood products manufactured with urea - formaldehyde resins, such as plywood, medium density fiberboard, and particle board. These materials are commonly used in residential building construction for flooring, cabinetry, baseboards, window shades, interior doors, and window and door trims." Formaldehyde is a known human carcinogen. Mr. Offermann states that there is a fair argument that residents of the Project will be exposed to a cancer risk from formaldehyde of approximately 180 per million. This is far above the South Coast Air Quality Management District (SCAQMD) CEQA significance threshold for airborne cancer risk of 10 per million. Even if the Project uses modern "GARB -compliant" materials, Mr. Offermann concludes that formaldehyde will create a cancer risk of 126 per million, which is 75E-249 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 6 more than ten times above the SCAQMD CEQA significance threshold. Mr. Offermann concludes that this significant environmental impact should be analyzed 14 in an EIR and mitigation measures should be imposed to reduce the risk of formaldehyde exposure. When a Project exceeds a duly adopted CEQA significance threshold, as here, this alone establishes a fair argument that the project will have a significant adverse environmental impact and an EIR is required. Indeed, in many instances, such air quality thresholds are the only criteria reviewed and treated as dispositive in evaluating the significance of a project's air quality impacts. See, e.g. Schenck v. County of Sonoma (2011) 198 Cal.AppAth 949, 960 (County applies BAAQMD's "published CEQA quantitative criteria" and "threshold level of cumulative significance"). See also Communities for a Better Environment v. California Resources Agency (2002) 103 Cal.AppAth 98, 110-111 ("A'threshold of significance' for a given environmental effect is simply that level at which the lead agency finds the effects of the project to be significant"). The California Supreme Court made clear the substantial importance that an air district significance threshold plays in providing substantial evidence of a significant adverse impact. Communities for a Better Environment v. South Coast Air Quality Management Dist. (2010) 48 CalAth 310, 327 ("As the [South Coast Air Quality Management] District's established significance threshold for NOx is 55 pounds per day, these estimates [of NOx emissions of 201 to 456 pounds per day] constitute substantial evidence supporting a fair argument for a significant adverse impact"). Since expert evidence demonstrates that the Project will exceed the BAAQMD's CEQA significance threshold, there is a fair argument that the Project will have significant adverse and an EIR is required. Mr. Offermann suggests several feasible mitigation measures, such as requiring the use of no -added -formaldehyde composite wood products, which are readily available. Mr. Offermann also suggests requiring air ventilation systems 6 which would reduce formaldehyde levels. Since the EIR does not analyze this impact at all, none of these or other mitigation measures are considered. 2. The EIR Fails to Address or Adequately Mitigate Significant Soil Contamination Impacts. The California Department of Toxic Substances Control ("DTSC") has submitted a comment letter pointing out deficiencies in the EIR related to soil and groundwater contamination at the Project site. DTSC points out that soil and groundwater at the Project site contains levels of the cancer-causing and toxic 7 chemicals, benene, toluene, ethylbenzene, xylene and methyl -tertiary butyl ether (MTBE) above residential standards. DTSC commented that the EIR failed to 75E-250 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 7 analyze the possibility of soil -vapor intrusion — a process by which toxic vapors enter the building constructed on the contaminated soil. DTSC also pointed out that the soil on the Project site is contaminated with arsenic — a known human carcinogen. In both cases, the EIR dismissed DTSC's comments, failed to conduct additional analysis and failed to adopt adequate mitigation measures. This is a patently inadequate response to expert comments from a State Agency. A Revised DEIR is required to analyze these impacts and to respond to DTSC's comments. In response to DTSC's comments, the FEIR merely states that a soil mitigation plan will be developed at a later time. CEQA does not allow such deferral of mitigation. Mitigation measures must be set forth in the EIR, so that the public can analyze the adequacy of the mitigation measures. The EIR fails to comply with this requirement. Feasible mitigation measures for significant environmental effects must be set forth in an EIR for consideration by the lead agency's decision makers and the public before certification of the EIR and approval of a project. The formulation of mitigation measures generally cannot be deferred until after certification of the EIR and approval of a project. Guidelines, section 15126.4(a)(1)(B) states: "Formulation of mitigation measures should not be deferred until some future time. However, measures may specify performance standards which would mitigate the significant effect of the project and which may be accomplished in more than one specified way." "A study conducted after approval of a project will inevitably have a diminished influence on decisionmaking. Even if the study is subject to administrative approval, it is analogous to the sort of post hoc rationalization of agency actions that has been repeatedly condemned in decisions construing CEQA." (Sundstrom v. County of Mendocino (1988) 202 Cal.App.3d 296, 307.) "[R]eliance on tentative plans for future mitigation after completion of the CEQA process significantly undermines CEQA's goals of full disclosure and informed decisionmaking; and[,] consequently, these mitigation plans have been overturned on judicial review as constituting improper deferral of environmental assessment." (Communities for a Better Environment v. City of Richmond (2010) 184 Cal.AppAth 70, 92.) LIUNA is very concerned about the soil contamination identified by DTSC. Construction workers, such as LIUNA members, will be exposed to higher levels of soil and groundwater contamination than anyone else since they will be involved in direct excavation of potentially contaminated soil and groundwater. It is critical to LIUNA that adequate mitigation measures be identified prior to Project construction, not after contaminated soil is discovered. 75E-251 WA 1.1 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 8 3. The EIR Fails to Adequately Mitigate the Project's Significant Traffic Impacts. CalTrans has submitted at least two comment letters concluding that the EIR fails to adequately analyze and mitigate the Project's significant traffic impacts. In particular, CalTrans expressed concern over the Project's impacts on nearby 1-5 and 10 SR22. In CalTrans' second comment letter, the agency concluded that the FEIR failed to adequately respond to CalTrans' initial comments. The FEIR's dismissive response to an expert agency's comments itself renders the EIR legally inadequate. Furthermore, the EIR improperly abrogates responsibility for mitigating the Project's traffic impacts. The EIR states that CalTrans has authority to adopt certain mitigation measures, and as a result, the City of Santa Ana would not adopt or impose mitigation. CEQA does not allow the lead agency to abrogate its responsibility to mitigate significant impacts, even if those impacts are within the jurisdiction of another agency. The lead agency is responsible for ensuring that impacts are mitigated, even if it is necessary to cooperate with other responsible agencies. In Lexington Hills v. State of Calif. (1988) 200 Cal.App.3d 415, the court held that a CEQA lead agency cannot delegate responsibility to develop mitigation measures to a responsible agency, even if the responsible agency has more expertise in a particular area. The lead agency must use its authority to analyze the entire project and to devise mitigation measures. Id. at 433-435. See also, Citizens for Quality Growth v. City of Mount Shasta (1988) 198 Cal.App.3d 433, 443 (Lead agency cannot refrain from considering means of exercising its own regulatory power simply because another agency has general authority over the impacted natural resource. City could not delegate mitigation measure development for project impacts to wetlands to US Army Corps of Engineers). 4. The Project Lacks Affordable Housing in Conflict with the General Plan. The Project does not include any affordable housing units, in complete disregard of the applicable General Plan policies. All of the rental units will be market -rate, and none will be designated or deed -restricted for low or moderate income residents. This is of particular concern to LIUNA members who are increasingly priced out of the area. 75E-252 11 12 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 9 The General Plan Housing Element Policy 2.3 requires housing for all income levels. Yet, the Project includes only market -rate housing, with not a single unit set aside for low or moderate income residents. This is unacceptable given the area's 13 extreme shortage of affordable housing. Furthermore, the EIR does not analyze whether it is feasible to include income -restricted housing, as has been done throughout the State. The Final EIR rejects comments made concerning affordable housing, arguing that the issue is socio-economic and not environmental, and therefore not within the scope of CEQA. This is mistaken. It is well-established that urban decay is a CEQA issue. The lack of affordable housing has led to an increase in homelessness, which is a prime contributor to urban decay. In Bakersfield Citizens for Local Control v. City of Bakersfield (2004) (124 Cal.AppAth 1184) (Bakersfield Citizens), the court expressly held that an EIR must analyze a project's potential to cause urban decay if there is substantial evidence showing that the project may lead to such impacts. The court pointed out that CEQA requires the project proponent to discuss the project's economic and social impacts where "[a]n EIR may trace a chain of cause and effect from a proposed decision on a project through anticipated economic or social changes resulting from the project to physical changes caused in turn by the economic and social changes." (CEQA Guidelines §§ 15131(a) and 15064(f).) Where a local or regional policy of general applicability, such as an ordinance, is adopted in order to avoid or mitigate environmental effects, a conflict with that policy in itself indicates a potentially significant impact on the environment. (Pocket Protectors v. Sacramento (2005) 124 Cal.AppAth 903.) Indeed, any inconsistencies between a proposed project and applicable plans must be discussed in an EIR. (14 CCR § 15125(d); City of Long Beach v. Los Angeles Unif. School Dist. (2009) 176 Cal. App. 4th 889, 918; Friends of the Eel River v. Sonoma County Water Agency (2003) 108 Cal. App. 4th 859, 874 (EIR inadequate when Lead Agency failed to identify relationship of project to relevant local plans).) A Project's inconsistencies with local plans and policies constitute significant impacts under CEQA. (Endangered Habitats League, Inc. v. County of Orange (2005) 131 Cal.AppAth 777, 783-4, 32 Cal.Rptr.3d 177; see also, County of EI Dorado v. Dept. of Transp. (2005) 133 Cal.AppAth 1376 (fact that a project may be consistent with a plan, such as an air plan, does not necessarily mean that it does not have significant impacts).) 75E-253 14 15 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 10 A Recirculated Draft EIR should be prepared to analyze the impacts of the Project's lack of affordable housing and the impact on urban decay. It should 16 propose feasible mitigation measures, such as requiring more affordable housing in the Project, contributions to low-income housing funding, etc. 5. The EIR Fails to Adequately Analyze or Mitigate the Project' Significant Air Quality Impacts. The expert consulting firm, Soil, Water, Air Protection Enterprise (SWAPE), demonstrates that the EIR improperly calculates air quality impacts. SWAPE calculates that the Project will have highly significant airborne cancer risk impacts, far above CEQA significance thresholds. SWAPE calculates that the Project will create an airborne cancer risk from construction and operation of the Project of 220 per million — far above the SCAQMD CEQA significance threshold of 10 per million. Most of this cancer risk is created by diesel engine exhaust associated with construction and operation of the Project. SWAPE states: As demonstrated above, the excess cancer risk to adults, children, infants, and 3rd trimester gestations at a sensitive receptor located approximately 25 meters away, over the course of Project construction and operation, are approximately 10, 92, 110, and 5.5 in one million, respectively. Furthermore, the excess cancer risk over the course of a residential lifetime (30 years) is approximately 220 in one million. Consistent with OEHHA guidance, exposure was assumed to begin in the 3rd trimester stage of pregnancy to provide the most conservative estimates of air quality hazards. The infantile, child, adult, and lifetime cancer risks all exceed the SCAQMD's threshold of 10 in one million, thus resulting in a potentially significant impact not previously addressed or identified by the DEIR or FEIR. The EIR also conducts a different health risk assessment that allegedly shows a cancer risk less than 10 per million. However, the HRA used in the EIR fails to comply with the recent California Office of Environmental Health Hazard Assessment (OEHHA) methodology. The lead agency is required to use the 75E-254 17 November 26, 2018 Comment on Environmental Impact Report, 2525 N. Main Street Multi -Family Residential Project (aka Magnolia at the Park) SCH 2018021031, DP No. 2017-34 page 11 agency -approved methodology, not some other obsolete methodology. Endangered Habitats League v. Orange (2005) 131 Cal.AppAth 777. Since the Project will create significant airborne cancer risks, a Revised Draft EIR is required to analyze this risk and propose all feasible mitigation measures. CONCLUSION 17 For the foregoing reasons, and for the reasons set forth by other commenters 18 (which are incorporated herein by reference), the EIR for the Project is legally inadequate. A revised draft EIR is required to analyze and mitigate the proposed Project's significant impacts. Sincerely, Richard Drury 75E-255 EXHIBIT A 75E-256 IEE INDOOR ENVIRONMENTAL ENGINEERING ME 1448 Pine Street, Suite 103 San Francisco, California 94109 Telephone: (415) 567-7700 E-mail: offemannot lEE-SF.com hun1/Nv v.iee-sfcom Date: November 21, 2018 To: Richard T. Drury Lozeau I Drury LLP 410 12th Street, Suite 250 Oakland, California 94607 From: Francis J. Offermann PE CIH Subject: Indoor Air Quality: Magnolia at the Park - Santa Ana IEE File Reference: P-4198 Pages: 10 Indoor Air Quality Impacts Indoor air quality (IAQ) directly impacts the comfort and health of building occupants, and the achievement of acceptable IAQ in newly constructed and renovated buildings is a well- recognized design objective. For example, IAQ is addressed by major high-performance building rating systems and building codes (California Building Standards Commission, 2014; USGBC, 2014). Indoor air quality in homes is particularly important because occupants, on average, spend approximately ninety percent of their time indoors with the majority of this time spent at home (EPA, 2011). Some segments of the population that are most susceptible to the effects of poor IAQ, such as the very young and the elderly, occupy their homes almost continuously. Additionally, an increasing number of adults are working from home at least some of the time during the workweek. Indoor air quality also is a serious concern for workers in hotels, offices and other business establishments. The concentrations of many air pollutants often are elevated in homes and other buildings relative to outdoor air because many of the materials and products used indoors contain and release a variety of pollutants to air (Hodgson et al., 2002; Offermann and Hodgson, 75E-257 19 2011). With respect to indoor air contaminants for which inhalation is the primary route of exposure, the critical design and construction parameters are the provision of adequate ventilation and the reduction of indoor sources of the contaminants. Indoor Formaldehyde Concentrations Impact. In the California New Home Study (CNHS) of 108 new homes in California (Offermann, 2009), 25 air contaminants were measured, and formaldehyde was identified as the indoor air contaminant with the highest cancer risk as determined by the California Proposition 65 Safe Harbor Levels (OEHHA, 2017), No Significant Risk Levels (NSRL) for carcinogens. The NSRL is the daily intake level calculated to result in one excess case of cancer in an exposed population of 100,000 (i.e., ten in one million cancer risk) and for formaldehyde is 40 µg/day. The NSRL concentration of formaldehyde that represents a daily dose of 40 µg is 2 µg/m3, assuming a continuous 24-hour exposure, a total daily inhaled air volume of 20 m3, and 100% absorption by the respiratory system. All of the CNHS homes exceeded this NSRL concentration of 2 pg/m3. The median indoor formaldehyde concentration was 36 µg/m3, and ranged from 4.8 to 136 µg/m3, which corresponds to a median exceedance of the 2 gg/m3 NSRL concentration of 18 and a range of 2.3 to 68. 19 Therefore, the cancer risk of a resident living in a California home with the median indoor formaldehyde concentration of 36 µg/m3, is 180 per million as a result of formaldehyde alone. Assuming this project will be built using typical materials and construction methods used in California, there is a fair argument that future residents will experience a cancer risk from formaldehyde of approximately 180 per million. The CEQA significance threshold for airborne cancer risk is 10 per million, as established by the South Coast Air Quality Management District (SCAQMD, 2015). There is a fair argument that this project will expose future residents to a significant airborne cancer risk of 180 per million, which is 18 times above the CEQA significance threshold. This impact should be analyzed in an environmental impact report ("EIR"), and the agency should impose all feasible mitigation measures to reduce this impact. Several feasible mitigation measures are discussed below and these and other measures should be analyzed in an EIR. 2 75E-258 Besides being a human carcinogen, formaldehyde is also a potent eye and respiratory irritant. In the CNHS, many homes exceeded the non -cancer reference exposure levels (RELs) prescribed by California Office of Environmental Health Hazard Assessment (OEHHA, 2017). The percentage of homes exceeding the RELs ranged from 98% for the Chronic REL of 9 µg/m3 to 28% for the Acute REL of 55 µg/m3. The primary source of formaldehyde indoors is composite wood products manufactured with urea -formaldehyde resins, such as plywood, medium density fiberboard, and particle board. These materials are commonly used in residential building construction for flooring, cabinetry, baseboards, window shades, interior doors, and window and door trims. In January 2009, the California Air Resources Board (CARB) adopted an airborne toxics control measure (ATCM) to reduce formaldehyde emissions from composite wood products, including hardwood plywood, particleboard, medium density fiberboard, and also furniture and other finished products made with these wood products (California Air Resources Board 2009). While this formaldehyde ATCM has resulted in reduced emissions from composite wood products sold in California, they do not preclude that homes built with composite wood products meeting the CARB ATCM will have indoor formaldehyde concentrations that are below cancer and non -cancer exposure guidelines. A follow up study to the California New Home Study (CNHS) was conducted in 2016-2018 (Chan et. al., 2018), and found that the median indoor formaldehyde in new homes built after the 2009 CARB formaldehyde ATCM had lower indoor formaldehyde concentrations, with a median indoor concentrations of 25 µg/m3 as compared to a median of 36 µg/m3 found in the 2007 CNHS. Thus, while new homes built after the 2009 CARB formaldehyde ATCM have a 30% lower median indoor formaldehyde concentration and cancer risk, the median lifetime cancer risk is still 125 per million for homes built with CARB compliant composite wood products which is more than 12 times the NSRL 10 in a million cancer risk. Assuming that the residential dwelling units for this project are constructed with CARB 3 75E-259 20 21 Phase 2 Formaldehyde ATCM materials, and are ventilated with the minimum code required amounts of outdoor air, the indoor formaldehyde concentrations are likely similar to those concentrations observed in residences built with CARB Phase 2 Formaldehyde ATCM materials (Chan et. al., 2018), which is a median of 25 pg/m3. For the occupants of these residential dwelling units, they will potentially have continuous exposure (e.g. 24 hours per day, 52 weeks per year) and assuming inhalation of 20 m3 of indoor air per day, the average 70 -year lifetime formaldehyde daily dose is 500 µg/day. This exposure represents a cancer risk of 125 per million, which is more than 12 times the CEQA cancer risk of 10 per million. Outdoor Air Ventilation Impact. Another important finding of the CNHS, was that the outdoor air ventilation rates in the homes were very low. Outdoor air ventilation is a very important factor influencing the indoor concentrations of air contaminants, as it is the primary removal mechanism of all indoor air generated air contaminants. Lower outdoor air exchange rates cause indoor generated air contaminants to accumulate to higher indoor air concentrations. Many homeowners rarely open their windows or doors for ventilation as a result of their concerns for security/safety, noise, dust, and odor concerns (Price, 2007). In the CNHS field study, 32% of the homes did not use their windows during the 24-hour Test Day, and 15% of the homes did not use their windows during the entire preceding week. Most of the homes with no window usage, were homes in the winter field session. Thus, a substantial percentage of homeowners never open their windows, especially in the winter season. The median 24-hour measurement was 0.26 ach, with a range of 0.09 ach to 5.3 ach. A total of 67% of the homes had outdoor air exchange rates below the minimum California Building Code (2001) requirement of 0.35 ach. Thus, the relatively tight envelope construction, combined with the fact that many people never open their windows for ventilation, results in homes with low outdoor air exchange rates and higher indoor air contaminant concentrations. The Magnolia at the Park project in Santa Ana is a multi -family residential project and is located close to roads with high traffic (e.g. I-5 and SR -55), and as a result has been id 75E-260 21 1z determined to be a sound impacted site according to Noise Impact Analysis in Appendix H of the Draft EIR (Urban Crossroads, 2018). As a result of the high traffic related outdoor noise levels, the current project will require the need for mechanical supply of outdoor air ventilation air to allow for a habitable interior environment with closed windows and doors. Such a ventilation system would allow windows and doors to be kept closed at the occupant's discretion to control exterior noise within residential interiors. This applies to both the residential and commercial portions of this development. PM2.5 Outdoor Concentrations Impact. An additional impact of the nearby motor vehicle traffic associated with this project, are the increased outdoor concentrations of PM2.5. The Health Risk Assessment Report for this project (Stantec, 2016), states in Table 6 that the cancer risk from traffic is 21.1 per million, which exceeds the SCAQMD threshold of 10 per million. San Francisco is a leader in issuing regulations to remove PM2.5 from impacted areas. The San Francisco Department of Public Health, 2014. Article 38, Enhanced Ventilation Required for Urban Infill Sensitive Use Developments, requires that air filtration, with a minimum efficiency of MERV 13 be installed to remove PM2,5 from mechanically supplied outdoor air in all PM2.5 impacted areas. All areas within 500 feet of any freeway or high - traffic road way (defined as urban roads with 100,000 vehicles/day or rural roads with 50,000 vehicles/day), unless air dispersion modeling shows total (traffic and ambient) outdoor concentrations of less than an annual average of 10 µg/m3 PM2.5, are defined as PM2.5 impacted areas. Santa Ana is an EPA non -attainment area for PM2.s., with exceedences of both the EPA maximum annual average concentration of 12 µg/ m3 and the EPA maximum 24-hour average of 35 µg/m3. It is my experience that based on the projected high traffic noise level, the annual average concentration of PM2.5 will be substantially higher than 10 µg/m3, and warrant installation 5 75E-261 H 23 of MERV 13 air filters in all mechanically supplied outdoor air ventilation systems. This 124 applies to both the residential and commercial portions of this development. Indoor Air Quality Impact Mitigation Measures The following are recommended mitigation measures to minimize the impacts upon indoor quality: - indoor formaldehyde concentrations - outdoor air ventilation - PM2.5 outdoor air concentrations Indoor Formaldehyde Concentrations Mitigation. Use only composite wood materials (e.g. hardwood plywood, medium density fiberboard, particleboard) for all interior finish systems that are made with CARB approved no -added formaldehyde (NAF) resins or ultra- low emitting formaldehyde (ULEF) resins (CARB, 2009). Outdoor Air Ventilation Mitigation. Provide each habitable room with a continuous mechanical supply of outdoor air that meets or exceeds the California 2016 Building Energy Efficiency Standards (California Energy Commission, 2015) requirements of the greater of 15 cfm/occupant or 0.15 cfm/ft2 of floor area. Following installation of the system conduct testing and balancing to insure that required amount of outdoor air is entering each habitable room and provide a written report documenting the outdoor air flow rates. Do not use exhaust only mechanical outdoor air systems, use only balanced outdoor air supply and exhaust systems or outdoor air supply only systems. Provide a manual for the occupants (residential and commercial), that describes the purpose of the mechanical outdoor air system and the operation and maintenance requirements of the system. PM2.s Outdoor Air Concentration Mitigation. Install air filtration with a minimum efficiency of MERV 13 to filter the outdoor air entering the mechanical outdoor air supply system. Install the air filters in the system such that they are accessible for replacement by the 0 75E-262 `-1 occupants (residential and commercial). Include in the mechanical outdoor air ventilation 125 system manual instructions on how to replace the air filters and the estimated frequency of replacement. 75E-263 References California Air Resources Board. 2009. Airborne Toxic Control Measure to Reduce Formaldehyde Emissions from Composite Wood Products. California Environmental Protection Agency, Sacramento, CA. htti)s://www.arb.ca. rovlre5tact/2007/comuwoodO7/fro-final.udf California Building Code. 2001. California Code of Regulations, Title 24, Part 2 Volume 1, Appendix Chapter 12, Interior Environment, Division 1, Ventilation, Section 1207: 2001 California Building Code, California Building Standards Commission. Sacramento, CA. California Building Standards Commission (2014). 2013 California Green Building Standards Code. California Code of Regulations, Title 24, Part 11. California Building Standards Commission, Sacramento, CA http://www.bsc.ca.goy/Home/CALGreen.asi)x. California Energy Commission, 2015. 2016 Building Energy Efficiency Standards for Residential and Nonresidential Buildings, California Code of Regulations, Title 24, Part 6. httl2://www.energy.ca. eov/2015publications/CEC-400-2015-037/CEC-400-2015-037- CMF.odf Chan, W., Kim, Y., and Singer, B. 2018. Indoor Air Quality in New California Homes with Mechanical Ventilation, Proceedings of Indoor Air 2018, Philadelphia, PA. EPA. 2011. Exposure Factors Handbook: 2011 Edition, Chapter 16 — Activity Factors. Report EPA/600/R-09/052F, September 2011. U.S. Environmental Protection Agency, Washington, D.C. Hodgson, A. T., D. Beal, J.E.R. McIlvaine. 2002. Sources of formaldehyde, other aldehydes and terpenes in a new manufactured house. Indoor Air 12: 235-242. 8 75E-264 OEHHA (Office of Environmental Health Hazard Assessment). 2017. Proposition 65 Safe Harbor Levels. No Significant Risk Levels for Carcinogens and Maximum Allowable Dose Levels for Chemicals Causing Reproductive Toxicity. Available at: httn://www.ochha.ca.aov/Drot)65/i)df/safeharborO8l5l3.vdf OEHHA - Office of Environmental Health Hazard Assessment. 2017. All OEHHA Acute, 8 -hour and Chronic Reference Exposure Levels. Available at: htto://oehha.ca.eov/air/allrels.html Offermann, F. J. 2009. Ventilation and Indoor Air Quality in New Homes. California Air Resources Board and California Energy Commission, PIER Energy -Related Environmental Research Program. Collaborative Report. CEC-500-2009-085. httr)s://www.arb.ca.eov/research/ai)r/t)ast/04-3 I 0.vdf Offermann, F. J. and A. T. Hodgson (2011). Emission Rates of Volatile Organic Compounds in New Homes. Proceedings Indoor Air 2011 (120' International Conference on Indoor Air Quality and Climate 2011). June 5-10,2011, Austin, TX USA. Price, Phillip P., Max Sherman, Robert H. Lee, and Thomas Piazza. 2007. Study of Ventilation Practices and Household Characteristics in New California Homes. California Energy Commission, PIER Program. CEC-500-2007-033. Final Report, ARB Contract 03- 326. Available at: www.arb.ca.gov/research/apr/past/03-326.t)df. San Francisco Department of Public Health, 2014. Article 38, Enhanced Ventilation Required for Urban Infill Sensitive Use Developments. httos://www.sfdph.org/dl2h/EH/Air/Article38.asp South Coast Air Quality Management District (SCAQMD). 2015. California Environmental Quality Act Air Quality Handbook. South Coast Air Quality Management District, Diamond Bar, CA,http://www.agmd.gov/home/rules-compliance/ceaa/air-quality-analysis- handbook 9 75E-265 Stantec Consulting Services. 2016. Health Risk Assessment Report AMG Development Project, City of Santa Ana, CA. Urban Crossroads. 2018. Magnolia at the Park Noise Impact Analysis City of Santa Ana. Draft EIR, Appendix H. USGBC. 2014. LEED BD+C Homes v4. U.S. Green Building Council, Washington, D.C. http://www.usgbc.org/credits/homes/v4 10 75E-266 9/25/2010 Indoor Environmental Engineering - Expert Witness Services: Francis (Bud) Offermann PE CIH, Indoor Air Quality, Building Science, IAQ ,IEE Indoor Environmental Engineering. }o/ir iarlorir air /tptlit}'.d-Y1) IS -.- Home Expert Witness Services Company Profile Francis (Bud) J. Offermann PE CIH Healthy Building Services Diagnostic Services President: Indoor Environmental Engineering, San Francisco, CA. December, 1981 -present. Laboratory Services e-mail: offermann@iee-sf.com Workshops & Seminars Education Expert Witness Services . M.S. Mechanical Engineering Stanford University, Stanford, CA. . Graduate Studies in Air Pollution Monitoring and Contra[ University of Resources California, Berkeley, CA. . B.S. in Mechanical Engineering Rensselaer Polytechnic Institute, Troy, News &Events N.Y. Employment Professional Affiliations Contact Us ACGIH, NW, ASHRAE, CSI, ASTM, ISIAQ, PARMA, and USGBC Work Experience Mr. Offennann PE, CIH, has 36 years experience as an IAQ researcher, technical author, and workshop instructor. He Is president of Indoor Environmental Engineering, a San Francisco based tAQ R&D consulting fine. As president of Indoor Environmental Engineering, Mr. Olfennann directs an Interdisciplinary team of environmental scientists, chemists, and mechanical engineers in indoor air quality building Investigations. Under Mr. Olremnann's supervision, IEE has developed both pm-acOve and reactive IAQ measurement methods and diagnostic protocols. He has supervised over 2,000 IAQ investigations in commercial, residential, and institutional buildings and conducted numerous forensic Investigations related to IAQ. Litigation Experience Mr. OHemlann has been qualified numerous times in court as an expert in the field of Indoor air quality and ventilation for both plaintiffs and defendants. He has been deposed over 150 times in rases involving indoor air qualgyNentilation Issues in commercial, residential, and institutional buildings Involving construction defects, and/or operation and maintenance problems. Examples of indoor air quality rases he has worked on are alleged personal injury and/or property damages from mold and bacterial mntaminatioNmoisture intrusion, building renovation activities, insufficient outdoor air ventilation, off gassing of volatile organic compounds from building maturate and coatings, malfunctioning gas heaters and carbon monoxide poisoning, and applications of pesticides. Mr. Ofiemlann has testified with respect to the scientific admissability, of expert testimony regarding Indoor air quality issues via Daubert and Kelly -Frye motions. copyright 2006Infxv 6rvxonmemal Engineering. see design by Tom Temnology. �sxavncs ®axgtvr�cs httpJAvww.lee-sf.00m/expert-v,itnessseNicesrindex.html 75E-267 1N 75E-268 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: JANUARY 14, 2019 TITLE: PUBLIC HEARING — FINAL ENVIRONMENTAL IMPACT REPORT NO. 2018-01, DEVELOPMENT AGREEMENT NO. 2018-01, GENERAL PLAN AMENDMENT NO. 2018-06 AND AMENDMENT APPLICATION NO. 2018-10 FOR THE PROPOSED MULTI -FAMILY DEVELOPMENT LOCATED AT 2525 NORTH MAIN STREET (STRATEGIC PLAN NO. 3, 2) Vince Fregoso, AICP Prepared by Selena Kelaher, AICP Executive Director RECOMMENDED ACTION Recommend that the City Council: PLANNING COMMISSION SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO Adopt a resolution certifying Final Environmental Impact Report No. 2018-01 (SCH No. 2018021031), adopt environmental findings of fact pursuant to the California Environmental Quality Act, adopt a Statement of Overriding Considerations, adopt Mitigation Monitoring and Reporting Program and approve the proposed project. 2. Adopt an ordinance approving the Development Agreement No. 2018-01. 3. Adopt a resolution approving General Plan Amendment No. 2018-06. 4. Adopt an ordinance approving Amendment Application No. 2018-10 for Specific Development No. 93. Executive Summary Jeremy Ogulnick, representing AC 2525 Main, LLC, submitted an application for several entitlements to facilitate the development of a 517 -unit multi -family housing project (87 du/ac) on a 5.93 -acre site at 2525 North Main Street. Based on early staff and public feedback the applicant elected to reduce the request to 496 units (84 du/ac). Specifically, the applicant is requesting the certification of the Final environmental impact report (EIR) for the project, along with the mitigation monitoring and reporting program and statement of overriding considerations. Exhibit 8 75E-269 2525 North Main Street January 14, 2019 Page 2 Other entitlements requested include a development agreement between the City and applicant/owner, a general plan amendment to redesignate the property from Professional & Administrative Office (PAO) to District Center (DC), and an amendment application to rezone the property from Professional (P) to Specific Development No. 93 (SD -93). Staff is recommending the conditional approval of the project subject to project modifications such as: • Reduce the density to 81 dwelling units per acre, a maximum of 476 units • Revise the unit mix; reduce the number of studio and one -bedroom units to 70 percent of the project and increase the number of two and three -bedrooms to 30 percent of the project • Provide parking at a capacity of 2.0 spaces per unit • Provide courtyards along the north elevation Project Location and Site Description The subject site is a 5.93 -acre parcel located at the northeast comer of Main Street and Edgewood Road. Regional access to the site is provided from the Santa Ana (1-5) Freeway via Main Street, a 6 -lane arterial roadway, and via the State Route 22 (SR -22) Freeway. The properties immediately adjacent to the site include Santiago Park to the north, single-family residential homes to the south and east and the Discovery Science Center of Orange County is across Main Street to the west. The project site is located on North Main Street, an urban corridor within the City. The site is also located at a main entry point to the Park Santiago Neighborhood, a residential neighborhood, predominantly comprised of detached single-family dwellings. The site is currently improved with an 81,172 square foot, two-story office building with 442 parking spaces and associated mature trees and landscaping. The building has been vacant since summer 2017 and was last occupied by Wells Fargo. The Discovery Science Center of Orange County leases the parking lot for employee and overflow parking. Table 1: Project Location Information Item Project Address 2525 North Main Street Nearest Intersection Main Street and Edgewood Road General Plan Designation Existing: Professional & Administrative Office PAO Proposed: District Center (DC) Zoning Designation Existing: Professional (P) Proposed: Specific Development No. 93 SD -93 Surrounding Land Uses North Santiago Park —Open Space East Single -Family Residential — R1 75E-270 2525 North Main Street January 14, 2019 Page 3 Item Information South Single -Family Residential — R1 West Discovery Science Center — SD -65 Property Size 5.93 acres 258,310 square feet) Existing Site Development The site contains a two-story, 81,172 square foot office building with 442 parking spaces Applicable Zoning Code Sections Existing: SAMC Chapter 41, Article III, Division 8 (Professional) Proposed: SAMC Chapter 41, Article III, Division 26 (Specific Development) Entitlements SAMC Chapter 41, Article V, Division II (Amendments and Change to District Boundaries) Background and Chronology City records indicate that the site was occupied by a variety of uses, including a mortuary, gas station, medical center and single-family residences in the 1970s. At that time, the site had two zoning designations of General Commercial along Main Street and Single -Family Residence to the east. In 1980, General Plan Amendment No. 1980-20, Amendment Application No. 832 and Conditional Use Permit No. 1980-07 were approved, amending the general plan designation to Professional and Administrative Office and changing the zoning to the Limited Professional/Specific Development District (LP/SD) to allow for the construction of the existing two- story office building with 269 parking spaces on 4.66 acres of the subject site. A 1.27 -acre parcel located at the comer of Main Street and Edgewood Road remained as General Commercial. In 1996, General Plan Amendment No. 1996-04 and Amendment Application No. 1996-04 were approved to amend the General Plan and zoning designations of several properties along Main Street, between the 1-5 Freeway and Main Place Drive/Memory Lane, including the subject property. The amendments provided consistency with the mid -rise offices and were intended to create a gateway to the Main Place District Center from downtown. The subject property was amended to the current designations of Professional and Administrative Office and zoning was amended to Professional. In the early 2000s, the property at the comer of the site (previously a medical office building) was combined with the subject site to expand the parking lot for the office building. Project Description The applicant is proposing to demolish the existing office building and develop a high density multi -family residential development on the site. The original proposal included the development of 517 residential units wrapped around an 8 -level parking structure. However based on staff and public feedback, the applicant elected to reduce the request to 496 units. The revised project would result in approximately 930,705 square feet of development (572,075 square feet of residential buildings and 358,630 square feet of parking structure and common open space structures) at a density of 84 dwelling units per acre, with an average unit size of 972 square 75E-271 2525 North Main Street January 14, 2019 Page 4 feet. The floor area ratio is 2.21 which is derived by calculating the square footage of the gross building square footage (residential development and common open space, excluding the parking structure square footage) by size of the property. The unit mix varies from studio units, one -bedroom units, two-bedroom units, and three-bedroom units, with 38 different floor plans proposed. The unit breakdown can be found on Table 2 on the following page. The residential buildings will range from 2 -stories in height (24 feet) at the eastern portion of the site, and will tier up to 5 -stories with mezzanines (approximately 78 feet) along Main Street. The tallest element of the building will be approximately 95 feet in height as measured from the rooftop amenity/recreation deck. Table 2: Applicant Proposed Unit Mix and Unit Square Footage Unit Type Number of Units % Square Footage of Units Studios 73 15% 592-740 One -Bedrooms 307 62% 634-1,091 Two -Bedrooms 88 18% 909-1,472 Three -Bedrooms 28 5% 1,360 -1,520 Total 496 units 100% The main entry for the project would be via a driveway on Main Street. The driveway will lead to an internal drop-off area, the leasing office and guest parking spaces before leading into the gated parking structure. The parking structure is located closer to Main Street, further away from the single-family homes to the east, with the residential buildings wrapped around the structure to screen from views at the ground level. Two levels of the parking structure would extend above the residential portion of the building. The applicant is proposing to provide a secondary access/egress point at the Santiago Park Drive/Walkie Way and Main Street intersection. This option is not a required element of the project, but would allow for an additional point of access to the development. If constructed, use of the park for vehicular access would require the replacement of lost park square footage with new park land of equal or greater size, utility and value. In addition, approval would be required from the Parks and Recreation Department, the State Office of Grants and Local Services and the National Park Service. The parking structure totals 358,630 square feet, with 8 -levels above grade and 1 -level below grade. A total of 904 parking spaces are proposed which is a ratio of 1.8 spaces per unit. A total of 150 tandem spaces (17 percent of the overall parking spaces) will be provided. The applicant has provided a parking study of similar type multi -family projects that identifies a parking demand of 1.354 space per unit which would forecasts parking needs to be 672 spaces for the project. Table 3 below provides a breakdown of the proposed parking for the project. 75E-272 2525 North Main Street January 14, 2019 Page 5 Table 3: Applicant Proposed Parking Unit Type Units Rate Stalls Provided Studios 73 1.00 73 One -Bedroom 307 1.00 307 Two -Bedrooms 88 2.00 176 Three -Bedrooms 28 3.00 84 Guest Parkin 496 .23 114 Tandem Stalls 150 Total 496 1.80 1 904 spaces The project has incorporated a contemporary architectural design. Elements such as stone veneer, multiple brick veneers, metal panels, ceramic tile, metal canopies, flat and metal seamed roofs all assist in conveying a modem design. The color scheme encompasses earth tones of tans, browns and greys. Courtyards are provided along Main Street, Edgewood Road and the internal east elevation to break up the massing and create distinct building sections. In addition, units along Edgewood Road will front the street, providing direct street access and assisting in activating the street. A combination of common and private open spaces will be incorporated into the project design. Approximately, 34,630 square feet of common open space will be dispersed throughout the project. These areas will consist of ground level courtyards with amenities such as a pool and spa, seating areas, tables and chairs, shade trellis, fire pits, and enhanced landscaping. A rooftop amenity deck will also be provided that will include a pool and spa, cabanas, fire pits, lounge chairs, shade structures, a club room, and a fitness center. Other common area amenities such as a wellness room, chefs kitchen, dog wash room, bike repair room, bike share, Amazon parcel lockers, and entertainment room, will be incorporated into the building and will provide residents with opportunities for on-site services and entertainment space. In addition, private open space in the form of patios or balconies will be provided for each unit. These spaces will range from 53 to 77 square feet in size. An upscale and elaborate landscape pallet is proposed for this project. The applicant is proposing to retain the mature Ficus trees along the east property line. An arborist report was prepared, with mitigation measures included to ensure the trees remain in a healthy condition pre- and post -construction. The report also identified 8 trees (7 Sweet Gum trees and 1 Cypress tree) along the eastern property line that are in an unhealthy condition and are recommended for removal. Additional trees similar in size and type to the mature trees will be planted to fill in areas where trees were removed or are missing. In addition, the applicant will raise the height of the wall adjacent to the single-family dwellings from six to eight feet in height. Given the number of parcels affiliated with this proposal, the lots will need to be combined into a single development parcel. Prior to issuance of building permits, a voluntary lot merger will need 75E-273 2525 North Main Street January 14, 2019 Page 6 to be applied for and be approved. This application is ministerial, with no Planning Commission or City Council action required. This project is required to comply with the City's Housing Opportunity Ordinance (HOO). To satisfy the provisions of the HOO, applicant is proposing to pay an in -lieu fee in excess of $6,000,000. See Table 4 below for a breakdown of the proposed HOO fee. Table 4: Housing Opportunity Fee Summary Habitable Square Footage - - Incluslonary Housing Fee -Estimated Fee :... ; 404,746 $15 ersquare foot $6,071,190 'As measured from the exterior walls of the residential units. This calculation does not include exterior hallways, common areas, landscape, open space or exterior stairways' Analysis of the Issues Environmental Impact Report The applicant submitted a development proposal that requires the approval of several discretionary applications. Given the size and location of the project, as well as the proposed zoning and general plan modifications, extensive environmental review was needed. After completion of the Initial Study for the project, it was determined that the California Environmental Quality Act (CEQA) required the preparation and certification of an environmental impact report (EIR) for this project. The purpose of an EIR is to identify the significant effects on the environment of a project, to identify alternatives to the project, and to indicate the manner in which those significant effects can be mitigated or avoided. To determine what potential effects would be caused by the project, the EIR analyzed issues related to Aesthetics; Air Quality; Biological Resources; Cultural/Historic Resources; Greenhouse Gas Emissions; Hazards and Hazardous Materials; Land Use and Planning; Noise; Population and Housing; Public Services; Transportation and Circulation; Tribal Cultural Resources; Utilities and Service Systems; and Energy. On February 12, 2018, the Initial Study and Notice of Preparation were released to solicit comments regarding the scope and content of the Draft EIR (DEIR). A scoping meeting was held on March 1, 2018 with approximately 164 people in attendance and a total of 163 written comment letters were received at the conclusion of the 30 -day public comment period. The comments were reviewed and additional areas of analysis and studies were added to the scope of the Draft EIR as appropriate. The comments are included as Appendix A of the Draft EIR. The Draft EIR analyzed the direct and indirect impacts resulting from construction and operation of the proposed project. In addition to analyzing fourteen environmental topic areas, the EIR also evaluated three options for access and egress to the project. The analysis included Main Street access only as proposed (Option A), access from Main Street plus a secondary access/egress 75E-274 2525 North Main Street January 14, 2019 Page 7 driveway at the Main Street and Walkie Way/Santiago Park intersection (Option B), and access/egress from both Main Street and Edgewood Road (Option C). Three project alternatives were also analyzed within the document. These included a no build alternative, where the existing approximately 80,000 square foot building would remain as is and be reoccupied by an office use (Alternative 1); a reduced multi -family project consisting of a 30 percent reduction in density (Alternative 2); and build out of the site under the existing Professional zoning district development standards, which could result in an approximately 390,000 square foot two and three-story office building (Alternative 3). The Draft EIR determined that the proposed project would require mitigation related to aesthetics, air quality, biological resources, hazardous materials, construction noise and vibration, interior noise, and tribal resources. Impacts related to aesthetics would remain significant and unavoidable after mitigation. On August 7, 2018, the Draft EIR was circulated for review and comment to public, City Council, Planning Commission, local, regional and state agencies, and interested parties for a 45 -day public comment review period. In addition, a Planning Commission public hearing was held on August 27, 2018 where staff presented the EIR process and environmental information to the Planning Commission and pubic and received public comments on the DEIR. To allow for additional time for public review and comment, and at the request of the North Santa Ana Preservation Alliance, the City extended the DEIR public comment period by an additional two weeks. At the close of the review and comment period on October 4, 2018, a total of 44 comment letters were received on the Draft EIR. The City has evaluated the comments received from persons and agencies on the Draft EIR and completed detailed Response to Comments, revisions to the Draft EIR including clarifications and/or corrections to typographical errors, and a Mitigation Monitoring and Reporting Program (MMRP). The response to comments, MMRP and Final EIR were published on November 15, 2018 for public review. The Draft EIR, responses to comments document, revisions to the Draft EIR, and the MMRP constitute the Final EIR for the project (Exhibit 1). The EIR identified one significant and unavoidable impact associated with this project, which pertains to aesthetics. Based on the City's visual criteria related to scale, height and setbacks, it was determined that the project would result in a substantial change in views from existing conditions and would result in a significant and unavoidable impact to the aesthetics. As a result of this impact that cannot be mitigated to a less than significant level, adoption of a Statement of Overriding Considerations is required prior to approving the project. A Statement of Overriding Considerations is the process through which decision makers balance the economic, legal, social, and technological or other benefits of the proposed project against its unavoidable environmental impacts. 75E-275 2525 North Main Street January 14, 2019 Page 8 Development Agreement The development agreement (DA) is a legal contract between the developer and the City that defines the terms and nature of development proposed for the project site. This agreement establishes development intensity, permitted uses and standards for the term of the agreement. In exchange for the City vesting approval of the proposed project, the development agreement requires certain improvements and public benefits as part of the project (Exhibit 2). For example, the DA will memorialize requirements for public art, monetary contribution to fund physical improvements to Santiago Park, Park Santiago residents benefits such as access to on site amenities, security patrol of the residential neighborhood and Santiago Park, assistance in designating the Park Santiago Neighborhood Association as a historic district, and monetary contribution to Park Santiago Neighborhood Improvements and Traffic Calming for improvements such as street calming, traffic diversion, entry monuments, and street light upgrades. If approved, the agreement will include both deal points and project conditions for the project. Highlights of the DA include: Term of Agreement. The right to build the project as entitled for a period of four years, with an opportunity for up to two, consecutive one-year extensions. Extensions shall be subject to approval by both the Owner and the City Manager. Prior to granting an extension, the Owner shall pay $50,000 to the City's General Fund to compensate the City for lost revenue to be received by the City had the project been completed within the first four years. 2. Public Art. The Owner shall create, .Install, and. maintain .a public art project with a value equivalent to 0.5% of the total construction cost of the project. The work(s) of art shall be in place prior to issuance of the first certificate of occupancy for the project and shall be maintained in perpetuity by the property owner. 3. Santiago Park Improvement Funds. Provide funding for Santiago Park Maintenance and Improvements in the amount of $1,400,000 to the City for the construction of park improvements or the owner shall be authorized by the City to construct the park improvements at the owner's sole cost and expense up to $1,400,000. These park maintenance funds shall be deposited with the City within 180 days after the issuance of the first building permit for the purpose of completing park improvements including, but not limited to, installation of irrigation, landscaping, security lighting and bike trail enhancements as shown in Exhibit G to the Development Agreement. An additional $100,000 will be paid to the City prior to the issuance of the first building permit for the maintenance of neighborhood entry monuments. 4. Park Santiago Neighborhood Benefits Package. The Developer shall provide Park Santiago Neighborhood residents with access to on-site amenities, Amazon lockers, 24-hour roving security patrol within the Park Santiago Neighborhood and Santiago 75E-276 2525 North Main Street January 14, 2019 Page 9 Park as shown on Exhibit H to the Development Agreement for a 55 -year period unless determined during an annual review that the term shall end earlier. 5. Historic District Application. If desired by the majority of the Park Santiago Neighborhood property owners, the applicant shall pay all costs and expenses associated with processing the application for historic district consideration, including reimbursing the City for costs incurred conducting the survey and any environmental review, up to and not to exceed the amount of $150,000. 6. Park Santiago Public Improvements. The Owner shall be responsible for the analysis, design, engineering, construction and inspection/administration of traffic calming/improvements at up to three locations on Edgewood and/or Bush Street to achieve traffic calming, entry monuments at three location at Main Street/Edgewood Road, Santa Clara Avenue/Lincoln Avenue and Santiago Street/17t' Street, replacement of all non LED street lights and/or fixtures with LED street lights and/or fixtures throughout the Park Santiago Neighborhood, and installation of a street light and decorative concrete pavement within the intersection at the Waikie Way/Santiago Park Drive and Main Street intersection. 7. Parking. Per the conditions of approval (Exhibit I to the Development Agreement) the applicant shall increase number of spaces or capacity to increase the onsite ratio of parking, including the use of valet parking, to an equivalent of two (2) spaces per unit. 8. Unit Mix. Per the conditions of approval (Exhibit I to the Development Agreement) the applicant shall increase the number of family units to a minimum of thirty percent (30%) of the proposed units to contain 2 & 3 bedrooms. The agreement also includes provisions for an overcrowding management plan, live work preference plan, local sourcing plan, construction management and property maintenance plans. The development agreement has been signed by the applicant indicating agreement to the terms. The agreement is not considered final until the City Council has reviewed and approved the agreement and the agreement is executed by all parties. General Plan Amendment To allow for the construction of a multi -family residential development on this parcel, a general plan amendment is required. Currently, the land use designation for this site is Professional and Administrative Office (PAO), which applies to areas that are predominately professional offices and/or administrative offices or areas where such development is encouraged. This project will require an amendment to the Land Use Element to amend the General Plan Land Use designation of the site to District Center (DC) with a density of 81 dwelling units per acre (reduced from 87 du/ac based on staff recommended changes) or a floor area ratio of 2.21 (Exhibit 3). 75E-277 2525 North Main Street January 14, 2019 Page 10 The purpose for maintaining and supporting professional office areas are to increase employment opportunities for local residents, enhance the diversity of the City's economic base, to develop mutually beneficial and supportive business clusters in the City and to support uses that create little to no nuisances to nearby residents or businesses. Several properties to the north and west across Main Street are designated as PAO therefore work to create a professional business district. Areas such as this northern gateway of the City provide a rich employment base for many residents of the City and those in the region who work In the area. District Centers are major activity areas of the City. Currently, several areas to the northwest, northeast, south of the Santa Ana 1-5 freeway and along Main Street north of Seventeenth Street are designated as District Centers. District Centers are designed to serve as anchors to the City's commercial corridors and to accommodate higher density development projects. These areas are to be developed with an urban character that includes a mixture of high-rise offices, commercial and multi -family residential uses which provide shopping, business, cultural and housing opportunities within close proximity to each other, close to transportation opportunities and in prime development focus areas. Residential development within these areas are allowed at a density of up to 90 acres. If approved, the project could support several goals and policies of the Housing Element. First, the project would be consistent with Goal 2, which encourages diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels and age groups to foster an inclusive community. Second, the project would support Goal 4, to provide adequate rental and ownership housing opportunities and supportive services. Further, the project would be consistent with Policy HE - 2.2 to create District Centers with high intensity, mixed-use urban villages 'and pedestrian oriented experiences. Finally, the project would be consistent with Policy HE -2.4 to facilitate diverse types, prices and sizes of housing. The project would also be consistent with goals of the Land Use Element, including Goal 1 to promote a balance of land uses to address basic community needs, and Goal 6 to reduce residential overcrowding to promote public health and safety. The proposed project will provide additional market rate housing in the City, thereby assisting in addressing the shortage of available housing within the region. The project will also provide additional housing options for those seeking housing within the jobs rich northern area of the City. The upscale multi -family development will also support Urban Design Element Goal 1 to improve the physical appearance of the City through development of a district that projects a sense of place, positive community image, and quality environment. The City has recently initiated the process to update its General Plan, which is the blueprint for future development. A key component of the update is to focus new growth and development along major corridors reducing the pressure for growth in low density neighborhoods and to identify areas for future development, including but not limited to higher density residential development. The northern section of the City, including the project site, has been identified as a potential area for more intense development. This North Main Street area is in the process of 75E-278 2525 North Main Street January 14, 2019 Page 11 being studied in greater depth as the update process continues, with direction on the potential land use designation of the area expected within the next year. Amendment Application Currently, the zoning designation for this site is Professional (P) which permits a variety of business uses that aim to create a professional business environment and prohibits residential uses. To allow the construction of a multi -family residential development on this parcel, an amendment application (zone change) is required. Staff is recommending that a zone change to a Specific Development No. 93 (SD -93) designation be conditionally approved subject to staff recommended changes to the project. The SD designation will allow a residential development and will ensure consistency between zoning and the General Plan, assuming the associated general plan amendment is approved (Exhibit 4). When considering a zone change it is important to look at the surrounding land uses and economic factors. The jobs to housing balance is evaluated by comparing project -generated jobs and housing units to forecasts of employment and housing, in addition an imbalance in the ratio can indicate air quality and traffic problems associated with commuting. Based on SCAG profiles and projections, Santa Ana is a jobs rich area with 2.06 jobs per housing unit. SCAG considers an area as balanced when the jobs -housing ratio is 1.36, therefore providing more housing would reduce the ratio to 2.05. Furthermore, in the second quarter of 2018, the City's office occupancy rate was 13.4 percent, which is higher than the neighboring central cities of Anaheim (10.4%), Orange (11.5%) and Tustin (10.9%) and the County as a whole (12.6%). Therefore, the change from Professional to Specific Development would not be. a significant impact to professional office districts. In addition, use of the site for residential development is supported as the location has elements to make the site a viable residential development. The elements include having regional access to freeway and transportation systems, the site is within close proximity to educational, cultural activities, employment centers, and retail and commercial shopping opportunities. Furthermore, several nearby properties and properties along Main Street are designated as Specific Developments. The property would be developed at a higher density than the nearby single- family residential uses. However, multi -family uses are often used in planning and zoning practice to buffer higher Intensity uses like commercial or industrial uses from single-family residential uses and multi -family and single-family uses are more compatible in nature to each other. The Specific Development No. 93 (SD -93) is established for the purpose of protecting and promoting the public health, safety and general welfare of the City and its residents. This new zoning designation for the site is crafted to be consistent with the proposed project. If the zone change is approved, a series of site-specific objectives, policies and development standards will be used to guide the development of the project. Specifically, the SD -93 document includes a 75E-279 2525 North Main Street January 14, 2019 Page 12 menu of development standards which specify setbacks, parking, height and landscape requirements and includes provisions for construction and maintenance to allow the exclusive entitlement of the residential project. The SD -93 document has been framed to include staff recommended changes to the project and prohibits future modifications to enlarge the size of the project. Approval of the proposal would allow for the construction of a high density residential development in an urbanized setting that is within close proximity to neighborhood services and amenities. If approved, the zone change would need to be approved in conjunction with the proposed general plan amendment. This would result in a project that is consistent with the goals and objectives of City's General Plan land use designation of District Center. The project will promote an urban development where office, retail and residential activities would coexist in close proximity and in a mixed-use setting. Further, the project will contribute towards the improvement of the character of the northern section of the City. Finally, the development, through the construction of the proposed public improvements and site amenities, will contribute to the enhancement of the area and serve as a buffer between commercial and high intensity uses and the lower density residential area. Public Comments A significant number of public comments have been received on this project, mainly voicing concerns or opposition to the project. Over the last year emails (approximately 400 emails are on file), letters and phone calls were received and small group meetings and study sessions have been conducted. A list of the major comments received are summarized in the sections below. Community Meetings On November 15, 2017, 27 calendar days after the application was submitted, the developer held a Sunshine Meeting at the Discovery Cube of Orange County and overviewed plans for a 517 -unit development, 5 -stories In height, with 910 parking spaces and access from Edgewood Road. Sign - in sheets indicate 263 people attended. Minutes of the meeting including community comments made at the meeting and the applicant's responses were prepared by the applicant (Exhibit 5). In early 2018 (January 30, 2018 and February 15, 2018), planning staff coordinated meetings with the developer and the North Santa Ana Preservation Alliance representatives. Approximately 20 people attended the small group meetings, including the developer, members of the North Santa Preservation Alliance, nearby neighborhood representatives and planning staff. The applicant shared a revised plan that included 505 units, a revised unit mix, the removal of the parking structure access from Edgewood Road, and modifications to the architectural style. A Planning Commission study session was conducted on August 27, 2018 where staff presented information on the project description, the draft environmental impact report, entitlements, vicinity, 75E-280 2525 North Main Street January 14, 2019 Page 13 building heights, access options, unit mix, parking, and areas of consideration. The applicant also provided a presentation that overviewed the project, amenities, community benefits, concerns and support, traffic, changes made by the applicant to the project, and project benefits. Thirty-two (32) verbal comments were received (three in support and 29 in opposition) and nine written comments were received (one in support and eight in opposition). On September 5, 2018, the developer, members of North Santa Ana Preservation Alliance, and City planning staff met to discuss the proposed project. A list of questions, comments and concerns were raised by the neighborhood. In follow up on September 24, 2018, information requested at the previous meeting was provided by staff to members of the North Santa Ana Preservation Alliance. Most recently, on November 26, 2018 the public hearing for the project was continued to January 14, 2019 and a second study session was conducted where staff presented information on the project, the Draft EIR, comments received, the Final EIR and draft development agreement terms. The applicant also played a video overviewing the project. During public comments 58 verbal comments were received (25 in support; 31 in opposition and two neutral) and 11 written comments were received (two in support and nine in opposition). One comment letter on the DER from Lozeau Drury LLP was received and written response to the comments was drafted (Exhibit 6). Density The revised project has reduced the density from 87 dwelling units per acre to 84 dwelling units per acre or a floor area ratio of 2.21. Per the General Plan, the maximum floor area ratio of the subject property and the properties to the north and west is 1.5 and the maximum dwelling units per acre of the residential properties to the east and west is 7 dwelling units per acre. As proposed, the project has higher density and floor area ratio than. the surrounding properties. With the staff recommended changes to the project, the maximum density of the project will be further reduced to 81 dwelling units per acre which is within the range of densities approved for other multi -family projects in the City. Table 5: Project Density Compared to Approved Apartment Projects P.ro acts . ___, . — _-_ _..-- -- Density" Zone' Status The Nineteen0l 49 du/ac Metro -East Mixed Use Overlay Constructed 1901 East First Street The Line 3630 Westminster Avenue 58 du/ac Harbor Mixed Use Specific Plan Under Construction The Heritage 65 du/ac Specific Development No. 88 Under Construction 2001 East Dyer Road The Marke 74 du/ac Specific Development No. 76 Constructed 100 East MacArthur Boulevard 75E-281 2525 North Main Street January 14, 2019 Page 14 Pro'ects Densit Zone Status: Prisma(301)tJeanette 5 -stories with mezzanines (65 feet) 25 feet (2 -stories) maximum within 301 East Jeanette Lane 91 du/ac Specific Development No. 59 Constructed The Madison from the east property line) No building within 40 feet of the east 200 North Cabrillo Park Drive 94 du/ac Metro -East Mixed Use Overlay y Entitled 2018 Elan 40 to 66 feet of the east property line 1660 East First Street 94 du/ac Metro -East Mixed Use Overlay y Entitled 2018 2525 North Main St. Street Side Setback 15 feet minimum 15 feet 81 du/ac Specific Development No. 93 Proposed Height The height limits of the Professional zone are a maximum of 35 feet/3-stories or a maximum of 25 feet/2-stories within the rear 50 percent of the lot. The office building to the north is 10 -stories (approximately 160 feet in height), the Discovery Cube to the west is approximately 110 feet in height, and the single-family dwellings to the south and east are one-story (approximately 18 feet in height). The proposed project would be similar in height to the buildings along Main Street, however the 5 -story residential buildings would be 3 -stories taller than the maximum allowable height in the R-1 zone of (2 -stories, 27 feet). The SD -93 development standards for the east portion of the building require the height to tier from five to two stories as shown on the site plan to create a transition in the building heights to the neighborhood to the east. Table 6: Professional Zone Comparison Development Standard Professional Zone Proposed Project Building Height 35 feet (3 -stories) maximum 5 -stories with mezzanines (65 feet) 25 feet (2 -stories) maximum within 8 -level parking structure with rooftop rear 50% of lot (approx. 240 feet amenities (90 feet) from the east property line) No building within 40 feet of the east property line Maximum 25 feet (2 stories) within 40 to 66 feet of the east property line Front Setback 15 feet minimum 12 feet, 6 inches west property line Street Side Setback 15 feet minimum 15 feet south property line Interior Side Setback 5 feet minimum 7 feet, 6 inches north property line Rear Setback 50 feet minimum 40 feet, 7 inches east property line 75E-282 2525 North Main Street January 14, 2019 Page 15 Table 7: Prosect Height Compared to Approved Apartment Protects Projects .' Height The Marke 5 levels The NineteenOl 5 levels Prisma 301 5levels The Line 5 levels + 6 levels of parking The Heritage 5 levels The Madison 7 levels Elan 7 levels 2525 North Main St. (proposed) 5 levels with mezzanines + 8 levels of parking Bu1WScale Bulk describes the mass of a building and scale refers to the proportional relationship of the size of the building to other structures. The project is in scale with the commercial buildings along Main Street and significantly larger in scale than the residential homes to the south and east. The project has been designed with courtyards to reduce the bulk of the building and will also be tiered on the east from 2 -stories to 5 -stories. Shade/Shadow Section 4.1 of the Draft EIR analyzed shade and shadow impacts. Shade and shadow studies were prepared for each calendar month. For CEQA purposes, impacts are considered significant if shadow -sensitive uses would be shaded by the project -related structures for more than 3 hours between the hours of 9:00 a.m. and 3:00 p.m. between fall and spring, or for more than 4 hours between the hours of 9:00 a.m. and 5:00 p.m. between spring and fall when compared to existing conditions. The CEQA threshold has been used in the past by Santa Ana for other projects. As proposed, the project would cast shadows on the residential properties, but not for more than 3 hours between fall and spring or for more than 4 hours between spring and fall. Neighborhood Character The Park Santiago neighborhood is characterized by large one-story and two-story homes with a variety of architectural styles (Minimal Traditionalist, Colonial Revival, Craftsman, Spanish, and Ranch). The project site also has street frontage along North Main Street which is described in the General Plan as an opportunity for the establishment of a cohesive, height intense, mixed activity center with a strong presence in the region. The project is not in character with the neighborhood, which it shares two sides with, as the neighborhood is comprised of single-family dwellings and the project is a high density multi -family housing project. The proposed project however, has a modem contemporary design with a variety of materials that would fit the design intent of North Main Street. It is common for high density multi -family projects to have a different 75E-283 2525 North Main Street January 14, 2019 Page 16 architectural style than surrounding single-family dwellings as the architectural styles of single- family homes often do not translate well to multi -storied buildings. Historic Neighborhood The City of Santa Ana has two National Register Districts, Downtown Santa Ana and French Park. Park Santiago is not a registered historic district. A total of 32 historic homes have been documented in Park Santiago of the approximately 1,173 homes in the neighborhood with the majority of the homes being more than 50 years old. As part of the EIR (Section 4.4), Cogstone prepared a Historic Resources Report and concluded that the historic homes in Park Santiago will not have the setting and feeling aspects of integrity reduced by construction of the proposed project and thus there is no reduction in the historic significance of the homes. Future opportunity for the neighborhood to become a historic district still remains and is a public benefit deal point in the Development Agreement. Project Access Vehicular access is proposed via a driveway on Main Street which would only allow for right -in and right -out tum movements as Main Street has a median that separates north -south street traffic. As proposed, to enter the site when traveling southbound on Main Street residents would have to make a U-turn at Edgewood Road, and to exit the development and travel southbound on Main Street residents would have make a right-hand turn (northbound on Main Street) and make a U -tum at Walkie Way or Main Place Drive. The Traffic Impact Analysis prepared for the project analyzed the impacts.of having Main Street as the sole and primary access point and found that operations would not exceed a threshold of significance (DEIR Access Option A). Use of Santiago Park The applicant is proposing secondary access through Santiago Park which would utilize the existing traffic signal at Main Street and Walkie Way/Santiago Park Drive. This would allow for all directional movements to and from the property and reduce the U-turn movements described above. This access option, is not a required element for the project, however it was studied as a secondary access option (DEIR Access Option B) in the Traffic Impact Analysis and found to have a less than significant impact. Various portions of the park were developed with Land & Water Conservation grant funding. As a result, a 6(f)(3) boundary map placed the entire park under federal protection to be preserved as outdoor recreational use. Any proposed changes to the park, such as the proposed vehicular access, will require review by the City's Parks & Recreation Department, the Office of Grants and Local Services and National Park Service and replacement of land with new park land of equal utility and value. The estimated square footage to improve the park for vehicular access is 10,000 square feet, in turn the applicant is proposing to provide 10,000 square feet of their 75E-284 2525 North Main Street January 14, 2019 Page 17 property to the City for park purposes. At this time, the City has not been begun conversations with the Office of Grants and Local Services or the National Park Service, but the City would support use of the park as long as replacement parkland is provided and monetary funds are contributed to the City for Santiago Park Maintenance & Improvements. Traffic A Traffic Impact Analysis was prepared by Translutions, Inc. for the project. The study was peer reviewed by the City's Public Works Agency and Kimley-Horn an on-call traffic engineering firm. The study evaluated 16 intersections, 10 roadway segments, 6 neighborhood intersections, 10 neighborhood roadway segments and 15 freeway segments (DEIR Section 4.11). Impacts were analyzed for the existing conditions (2018), expected project opening year (2020) and future conditions (2040). The 2020 conditions include the planned Caltrans improvement project which will add one continuous High Occupancy Vehicle (HOV) lane in each direction along the northbound and southbound 1-5 freeway between SR -55 and SR -57, which would result in the removal of the 1-5 HOV northbound entrance and southbound exit ramps at the Intersection of N. Main Street/Edgewood Road 1-5 ramps. Based on the Institute of Traffic Engineers (ITE) trip generation rates, the project is estimated to generate 2,698 daily trips. Table 8: Proposed Project Trip Generation 7:00 to 9:00 a.m. 1 4:00 to 6:00 p.m. Land Use In Out Total In Out Total Daily Trip Generation 0.09 0.27 0.36 0.27 0.17 0.44 5.44 Rates Proposed Project 46 133 179 133 86 219 2,698 Trip Generation (496 units) The City of Santa Ana uses a rating criteria known as Level of Service (LOS) to assess the severity of traffic congestion at intersections and roadway segments. The LOS criteria uses an "A" to "F" rating scale; an "A" rating meaning traffic conditions have the least amount of traffic congestion (free flowing traffic) and an "F" rating meaning traffic conditions will have the most traffic congestion (forced or breakdown of traffic flow). As a standard practice, the City has adopted an operational LOS rating of D as the minimum acceptable LOS for intersections and roadway segments, except that for intersections and roadway segments that fall within major development areas, the City adopted a LOS rating of E as the minimum acceptable LOS. LOS is obtained by calculating the ratio of vehicles at an intersection or roadway segment versus the vehicle capacity of that intersection or roadway segment (Vehicles/Capacity). The City acknowledges that the proposed project would generate additional traffic and that would result in an increase in vehicle trips on area roadways (2,698 trips). However, the project and 75E-285 2525 North Main Street January 14, 2019 Page 18 implementation of any of the three access options would not exceed a threshold identified by the City or Caltrans (Pages 4,11-12 to 4.11-23 of the DEIR). Parking The project proposes 904 parking spaces (1.8 parking spaces per unit). A parking study of two similar multi -family projects that identified a parking demand of 1.354 space per unit which would forecasts parking needs to be 672 spaces for the project less than the applicant's proposed 904 (Exhibit 7). For comparison purposes a table has been prepared to compare the City's multi- family parking standards (SAMC Section 41-1322) to the number or units and bedrooms proposed by the applicant. The multi -family parking standards were last updated in 1997. Over the last 10 years, multi -family projects similar in character to the proposed project have been constructed and/or approved with parking ratios ranging from 1.6 to 2.20 parking space per unit. Therefore, staff is recommending that the parking capacity of the project be increased to 2.0 parking spaces per unit (with staff recommended changes to maximum density 476 units would equate to required capacity for a minimum of 952 spaces). Table 9: Parking Per SAMC Section 41-1322 Multi -family Dwellings Unit Type Units Rate Required S aces Total # of units 496 _Units 496 Studios 73 1.00 73 One Bedrooms 307 1.00 307 Two Bedrooms 88 2.00 176 Three Bedrooms 28 3.00 84 Subtotal 559 559 1,136 Guest Parking 1 1,136 .25 284 Total 182 364 1,420 spaces 2.86 spaces per unit Table 10: Santa Ana Multi -Family Project Parking Supply 8, Ratio 75E-286 a'Ain --P ". _ . - *parkin -tio.= Ra -Tm. andeParkm" Pro'ectLNaroe • "! _Units -Total_ _Residential - `Guest -Total _ResidenitlaL 'hlumbeir_ _Percent': The Marke 300 660 600 60 2.2 2.0 262 44% Nineteen01 254 559 559 - 2.2 2.2 - - Prisma 301 182 364 328 36 1 2.0 1.8 234 71% Elan 603 1 1,209 1,209 2.0 2.0 70 6% 75E-286 2525 North Main Street January 14, 2019 Page 19 The Heritage 1,221 2,231 2,231 New 1.8 1.8 - The Madison 260 468 468 - 1.8 1.8 104 22% The Line 228 359 342 17 1.6 1.5 - - 2525 Proposed 496 904 780 124 1.8 1.6 150 17% North Required by 87 :Low 122 20 0 12 20 52 Main St. SAMC 496 1,420 1,136 284 11 27 10 Above Notes: Parking Ratio Total = Total Parking Spaces / Units Residential Ratio = Residential Parking Spaces / Units Percent Tandem Stalls = Number of Tandem Stalls / Units Regional Housing Needs Allocation Santa Ana's Regional Housing Needs Allocation (RHNA) is 405 units for the planning period of 2014 through 2021. RHNA progress is reported annually to the state and is tracked by the number of building permits issued at the time that the report is completed. From 2014 to 2017, building permits were issued for 916 dwelling units, approximately 59 percent of the overall target; 87 very low, 70 low and 10 moderate units remain to fulfill the City's Regional Housing Need Allocation. Residential development has continued and the 2018 report will be completed in March of 2019. Table 11: Regional Housing Needs Allocation Progress 2014-2017 Income RHNA New New New New Total Total Remaining Allocation Housing Units Housing Units Housing Housing Housing RHNA by Income 2014 2015 Units Units units by Levels 2016 2017 Income Very tow 156 20 0 0 49 69 87 :Low 122 20 0 12 20 52 70 Moderate 37 0 11 5 11 27 10 Above Moderate 90 241 127 285 115 768 0 - Total:. _ _ _ __405 .405 _ _ 281 138 302 195 916 167 Apartment Product Type The applicant is proposing a high density multi -family housing project with no condominium map proposed at this time. Should an application to convert the project to condominiums be filed, the application would be processed in accordance with Santa Ana Municipal Code Chapter 34, Article IX, Common Interested Developments and Conversions Projects, Division 2, Residential Conversion Projects. Given that the proposed project is a market rate development, rents are 75E-287 2525 North Main Street January 14, 2019 Page 20 expected to range from $2,000 to $3,700, consistent with similar development in the City such as The Marke, The Nineteen01 and Prisma. The community has expressed preference for the property to remain as a professional office building; however, if residential development were to occur the community would prefer detached single-family dwellings or townhomes. No General Plan Amendment, No Zone Change - Spot Zoning Comments have been received that the land use designation should remain Professional and Administrative Office and zoning as Professional. Comments have also been received in regards to "spot zoning" which is generally referred to when zoning standards are changed for one property and provides for use of the property that is different than surrounding area. Case law has established that there are several things to consider regarding the property size, surroundings, and public benefits. The property is a large 5.93 -acre parcel that could be developed as one large property or subdivided into several properties. Although, the subject site does not share a property line with another District Center due to geographic features such as Santiago Creek and the 1-5 freeway, there are District Center properties to the north and south of the site along Main Street. In addition, several nearby properties are Specific Developments, therefore amending the zoning of the property to Specific Development No. 93 would not be an unusual circumstance. Furthermore, approximately 25 percent of the properties along Main Street north of the 1-5 freeway will be a District Center with Specific Development plan. Envisioning Map Early in the General Plan update process (late 2015/early 2016) Planning Division staff drafted an envisioning map which identified study areas and areas that could potentially have an Increase in development, density and building heights. The North Main Street corridor (north of 17th Street) including the subject property was identified as an area that may be considered for high-rise development and unlimited density. The map did not go through a formal adoption process and included a note that, 'The map represents a conceptual effort and its contents are in a draft format and do not represent any formal efforts to rezone or redesignate properties shown." As mentioned previously, the North Main Street area is still being analyzed as part of the comprehensive General Plan update. Cumulative Impacts As part of the EIR a list of cumulative projects was drafted including projects in the vicinity within the City of Santa Ana and City of Orange for which development applications were submitted, approved and/or under construction at or prior to the release of the NOP. The project list includes 39 commercial and residential projects. Key topics raised or commented on relative to the cumulative impacts were population and traffic among others that are analyzed in the EIR. 75E-288 2525 North Main Street January 14, 2019 Page 21 The Persons Per Household Evaluation within the EIR determined that the number of persons per dwelling unit is anticipated to be 1.6 per studio, 1.6 per one -bedroom, 2.7 per two-bedroom and 3.9 per three-bedroom which with the applicant's proposed project would be 955 residents. In addition, 1,236 multi -family units are proposed within the City of Santa Ana and 3,324 multi- family units within the City of Orange (5,056 units total). The total cumulative housing growth from all of the projects listed equals 7.4 percent, which is consistent with SCAG's growth estimates of 8.4 percent increase. In 2020, the project and cumulative projects are anticipated to generate 4,306 a.m. peak hour trips, 4,359 p.m. peak hour trips, and 49,842 daily trips. In 2020, with the cumulative project trips, all study area intersections are forecast to operate at satisfactory levels of service, except for the Main Street/Santa Clara/1-5 northbound on ramp and the SR -22 eastbound ramps at Town and Country Road in both the a.m, and p.m. peak hours. However, the SR -22 eastbound ramps at Town and Country Road also operate at unsatisfactory conditions under existing conditions. In 2040, the intersections are anticipated to operate at an unsatisfactory level of service with or without the project. Impacts to Public Services Section 4.10 of the Draft EIR analyzed the impacts of the project on fire service, police service and parks and recreation service. CEQA focuses on the physical effects of the project (i.e. new or expanded facilities), therefore an increase in staffing or calls for service would not, by itself, be considered a physical change in the environment. As proposed the project would result in a less than significant impact to public services. Impacts to Utilities Sections 4.13 and 4.14 of the Draft EIR analyzed the impacts of the project on water supply, wastewater, drainage, water quality, and energy. Technical reports including a Water Supply Assessment, Sewer Analysis and Hydrology Report were prepared for the project. As proposed the project would result in a less than significant impact to utilities and services. Noise Section 4.8 of the Draft EIR analyzed noise impacts related to construction operations and operational noise from HVAC equipment, parking facilities, trash removal and use of the outdoor open space. Based on the SAMC noise standards the project would not general noise levels that would exceed noise standards. To mitigate construction noise two mitigation measures are proposed, one to require a 50 -foot buffer along the east property line for large mobile construction equipment and installation of a temporary noise barrier such as vinyl acoustic curtains or quilted blankets attached to the east property line wall or temporary fence posts. 75E-289 2525 North Main Street January 14, 2019 Page 22 Privacy Privacy concerns regarding windows on the east elevation and visibility from the rooftop amenity deck into backyards or homes were raised. A rendering of eastern views from the rooftop has been provided, views of the single-family dwellings are out of the line of sight from the amenity deck as it is located closer to Main Street. In addition, staff has included a requirement within the Specific Development for clerestory or opaque windows along the building wall that is at the 40 - foot setback. Staff Recommended Changes Since the initial project submittal, the applicant has made changes to the project to address both staffs and the public's comments. Changes made include: 1. Reduced the number of units from 517 to 476 (Reduction of 41 units - 8%). 2. Removed access on Edgewood Road to reduce the potential for cut -through traffic into the Park Santiago neighborhood. 3. Reduced the height of the building along the east side from 5 -stories (78 feet) to 2 -stories (25 feet). 4. Revised the architectural style. 5. Increased the number of family units from 20 percent of the project to 30 percent. 6. Increased the effective parking ratio from 1.76 to 2.0 per unit through the use of valet. Staff is recommending additional modifications to the project based on previously constructed and approved multi -family development projects in the City, planning and design principles, the character of the nearby residential neighborhood, and the community's concerns. The proposed changes include: 1. Number of units: Reduce units to a maximum of 476 units (81 dwelling units per acre). 2. Unit Mix: Increase number of family units to 30 percent (two- and three-bedroom units) 3. Parking Management: Increase number of spaces or capacity to increase the onsite ratio of onsite parking to an equivalent of 2.00 spaces per unit. Further, a parking management plan shall be submitted that maintains this ratio prior to Certificate of Occupancy and throughout the life of the project. Provisions to meet this standard may Include an onsite valet parking service. 755--290 2525 North Main Street January 14, 2019 Page 23 4. Design: Incorporate two courtyards into the portion of the project that is located along the north property line adjacent to Santiago Park. The staff recommended changes to the development discussed above will be codified in the Specific Development as follows: Table 12: Specific Development - Development Standards Development Standard Specific, Develoment Section Number of Units Section 3 a Unit Mix Section 3 b Parking Section 10 Design North Building Elevation Section 12 (b)(3) Economic Analysis The proposed project would convert an office development into a residential development. A fiscal and economic impact analysis was prepared by RSG, Inc. in 2017 analyzing the 517 -unit project (Exhibit S). In brief, RSG anticipates the following fiscal outcomes over a 25 -year forecast period: • Approximately $33.5 million in revenue to the City's General Fund (construction period revenues, recurring property tax revenue, utility user tax, residential sales tax and business tax) • Approximately $10.0 million in expenditures from the City General Fund (public services) • The net new General Fund revenue is projected to be approximately $23.5 million from the acquisition and development of the Project. Table 13: Public Notification 'Public Notification & Community.,Outreach Required Measures A Sunshine Ordinance Community Meeting was held on November 15, 2017 from 6:00 p.m. to 7:30 p.m. A total of 263 people signed in. A public notice will be posted on the project site on January 4, 2019. Notification by mail will be mailed on January 4, 2019 to all property owners and occupants within 500 feet of the project site and notification will be provided to all interested parties that have requested to receive a notice with contact information on file with the City. Newspaper posting will be published in the Orange County Register on January 4, 2019. 75E-291 2525 North Main Street January 14, 2019 Page 24 Conclusion Staff is supportive of General Plan Amendment No. 2018-01 and Amendment Application No. 2018-10 for the site as redevelopment of the site with a residential development will provide additional housing in a prime location that is accessible to retail and employment opportunities with multimodal transportation options and the project provide general fund revenue. In addition, public benefits of the Development Agreement include: public art, monetary contribution to the Santiago Park Maintenance & Improvement Fund, access to on-site amenities for Park Santiago residents, security patrol of the residential neighborhood and Santiago Park, assistance in designating the Park Santiago Neighborhood Association as a historic district, and monetary contribution to Park Santiago Neighborhood Improvements and Traffic Calming and Parking, for improvements such as street calming, traffic diversion, entry monuments, and street light retrofits. The project will also enhance the City's economic and fiscal viability through the increase in property tax values as well as an increase in sales tax generated from the residents. Strategic Plan Alianment Approval of this item supports the City s efforts to meet Goal No. 3 Economic Development, Objective No. 2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). na Kelaher, AICP Associate Planner Vince Fregoso, AICPA Principal Planner-- SMF:sb S:Planning CommisslarV201011-14.19 Exhibits: 1. EIR Resolution, Findings of Fact, Statement of Overriding Considerations, MMRP & EIR Link 2. Development Agreement Resolution & Agreement 3. General Plan Amendment Resolution & Exhibits 4. Amendment Application Resolution & Exhibits 5. Sunshine Meeting Minutes & Sign -in 6. Response to Lozeau Drury LLP 11-26-18 Letter 7. Parking Analysis 8. Economic Analysis 9. Vicinity Map 75E-292 2525 North Main Street January 14, 2019 Page 25 10. Site Photos 11. Overall Site Plan 12. Floor Plans 13. Building Elevations 14.Renderings 15. Landscape Plan 75E-293 75E-294 Magnolia at the Park Multi -Family Residential Project Appendix A City of Santa Ana Appendix A: Parking Memo EXHIBIT 9 PARKING MEMORANDUM 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-295 memorandum DATE: October 26, 2018 TO: Ms. Selena Kelaher, AICP City of Santa Ana FROM: Sandipan Bhattacharjee, P.E., TE, AICP, ENV -SP SUBJECT: 2525 Main Street — Parking Analysis Translutions, Inc. (Translutions) is has prepared this memorandum for the proposed 2525 Main Street Residential Project in the City of Santa Ana. The project proposes the following types of multi -family units:- * Studio - 73 units (14.7%) • 1 Bedroom - 307 units (61.8%) • 2 Bedroom - 88 units (17.7%) • 3 Bedroom - 28 units (5.65%) City Code. Section 41 of the City of Santa Ana Municipal Code (SAMC), Off -Street Parking Requirements discusses off-street parking requirements for development projects. Sec. 41-1322 discusses the off-street parking requirements for multi -family dwellings. a) The minimum off-street parking requirements for each dwelling unit in multiple -family dwellings are as follows: one (1) space in a garage or carport. b) Each multiple -family dwelling site shall provide off-street parking spaces, in addition to the minimum requirements of subsection (a) of this section, in an amount not less than the number of bedrooms on the site. Such spaces may be open or covered and may be assigned to particular units or not so assigned. Bachelor units shall be considered as one -bedroom units. c) In addition to the minimum requirements of subsections (a) and (b) of this section, each multiple -family dwelling site shall provide guest parking, identified as such, in an amount of spaces not less than twenty-five (25) per cent of the minimum required spaces under subsections (a) and (b) of this section, but in no case less than three (3) spaces. The SAMC also requires that a portion of the required off-street parking spaces be designed for physically handicapped persons. Parking for handicapped persons at a rate of 2% of total parking for parking facilities between 501 and 1,000 stalls, and 1 % thereafter is required. Note that handicapped parking is portion of the required parking and not an additional requirement. Table A calculates the required parking using the SAMC. As seen on Table A, the residential parking requirement for the project would be 1,420 spaces based on City Code. Table A: Project Parking Demand Code Subsection Land Use Units Rate Parking Required (a) Total Units (b) Studio 1 Bedroom 2 Bedroom 3 Bedroom 496 73 307 88 28 1 1 1 2 3 496 73 307 176 84 Parking Required (Residential) 1,136 Handicap (2% up to 1000 spaces, l% thereafter - Included in Residential) 203 Parking Required (Guest .25% of Minimum of a & b) 284 Handicap (2% of Guest - Included in Guest) 6 Total Parking Required 1,420 I translutions, inc. 117632 Irvine Boulevard, Suite 20075iEC_Ii q(1780 I P (949) 656-31311 solutions@translutions.com Memorandum: 2525 Main Parking Analysis General Plan Circulation Element. The City's General Plan acknowledges that while adequate supply of parking is essential to the economic success of businesses, parking needs should be evaluated to determine needed changes based upon changing circumstances in land use patterns and the public's mode of travel. Policy 7.4 of the General Plan Circulation Element also states that parking requirements be re-evaluated and updated on a regular basis. It should be noted that the City's parking ratios are from 1997 and are over 20 years old. With changes in demographics, increased transit, and increased uses of active transportation modes in the City, an update to the parking standards is needed. Parking Study & Rate Calculation. Translutions surveyed two similar facilities in the area to identify parking generation factors for similar multi -family residential projects. The two facilities surveyed are Nineteen01 and The Marke. Both properties are similar to the proposed project in terms of rents, target population, apartment types, and amenities. NineteenOl is located at 1901 East First Street in the City of Santa Ana and has 254 units. The unit breakdown for NoneteenOl is as follows: • 1 Bedroom -123 units (48.4%) 2 Bedroom -125 units (49.2%) • 3 Bedroom - 6 units (2.4%) The Marke is located at 100 E MacArthur Boulevard in the City of Santa Ana and has 300 units. The unit breakdown for Noneteen01 is as follows: 1 Bedroom -155 units (51.7%) • 2 Bedroom -131 units (43.6%) • 3 Bedroom -14 units (4.7%) To identify parking demand for the two projects, Translutions contracted with Counts Unlimited, Inc. to conduct a parking occupancy survey for the two facilities identified above. The surveys were conducted on one weekday (Thursday) and one weekend day (Saturday) in April 2018 for a period of 24 hours. Table B shows the findings of this analysis. Detailed parking accumulation data is included in Attachment A. Table B: Parking Survey Summary Survey Location Units Day of Week Parking Parking NineteenOl 254 Peak Weekday 344 1.354 Peak Weekend 342 1.346 The Marke 300 Peak Weekday 230 0.767 Peak Weekend 193 0.643 Average Demand (Weekday) 1.060 Average Demand (Weekend) 0.995 Peak Parking Demand Per Unit (Weekday & Weekend) 1.354 Project Maximum Parking Demand (496 Units) 1 496 1 1 672 As seen on Table B, the peak weekday parking demand is 1.354 spaces per unit observed at Nineteen01. The peak weekend parking demand is 1.346 spaces per unit observed at Nineteen01. Therefore, the peak parking demand based on empirical data occurred at Nineteen0l, at the rate of 1.354 parking spaces per unit. Parking Needs for Proposed Project. Applying the peak parking rate based on empirical data, the peak parking demand for the proposed project is anticipated to be 672 spaces. The project will include 904 parking spaces, which is approximately 35% more than the number of spaces forecast based on empirical data. Conclusion. The parking supply required for the project using parking rates from the SAMC is 1,420 spaces, which translates to more than 2.86 parking spaces per residential unit. Since the parking requirements in the SAMC are over 20 years old, Translutions conducted surveys at two similar facilities currently in operation. The peak parking demand was observed to be 1.354 spaces per unit. Using the MAIN STR ARKING ANALYSISWARKING R SEOWARKING MEMO.000K 2 75E-297 Memorandum: 2525 Main Parking Analysis parking demand rates from empirical data, the project parking needs are forecast to be 672 spaces. The project will include 904 parking spaces, which is approximately 35% more than the number of spaces forecast based on empirical data. If you have any questions, please do not hesitate to contact us at (949) 656-3131. No. \ EXD. 03-31-20 / IITRANSMONSWROJECTS� - 2525 MAIN STREErFARKINGANALYSISWARKING REMSEDWARKING MEMO.DOCK 3 75E-298 City: Santa Ana Location: Ninteen0l Date: 4/26/2018 Count Type: Parking Occupancy/Driveway Count 332 Beginning Occupancy First St Dwv Cabrillo Park Dwv Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7SE6239 Entering Exiting Entering Exiting Total 0:00 1 0 0 0 333 0:15 1 2 1 0 333 0:30 3 4 2 1 333 0:45 1 3 0 2 329 1:00 0 1 2 2 326 1:15 2 0 1 0 331 1:30 0 1 0 1 329 1:45 3 1 0 0 331 2:00 0 0 1 0 332 2:15 1 0 1 0 334 2:30 1 0 1 0 336 2:45 0 0 0 0 336 3:00 0 0 1 0 337 3:15 1 0 0 0 338 3:30 0 1 0 0 337 3:45 0 0 0 1 336 4:00 0 0 0 0 336' 4:15 0 0 0 0 336 4:30 0 0 0 0 336 4:45 2 0 0 1 337 5:00 0 1 0 2 334 5:15 0 1 2 3 332 5:30 1 4 0 3 326 5:45 1 2 0 2 323 6:00 2 1 0 5 319 6:15 1 4 0 2 314 6:30 0 3 0 4 307 6:45 3 5 1 6 300 7:00 2 5 1 6 292 7:15 2 2 0 9 283 7:30 2 14 0 11 260 7:45 3 7 1 7 250 8:00 3 6 2 11 238 8:15 2 5 3 9 229 8:30 6 11 2 12 214 8:45 9 5 1 3 216 9:00 6 6 2 5 213 9:15 5 3 1 1 215 9:30 2 8 0 6 203 9:45 4 2 0 5 200 10:00 1 5 1 8 189 10:15 0 6 3 9 177 10:30 3 3 1 9 169 10:45 6 4 1 3 169 11:00 3 11 2 167 11:15 3 4 1 1 5 162 11:301 2 1 7 157 11:451 2 1 8 153 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7SE6239 City: Santa Ana Location: Ninteen0l Date: 4/26/2018 Count Type: Parking Occupancy/Driveway Count 332 Beginning Occupancy First St Dwy I Cabrillo Park Dwy TOTAL 452 307 252 388 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 Entering Exiting Entering Exiting Total 12:00 8 5 3 7 152 12:15 4 4 6 3 155 12:30 3 7 1 3 149 12:45 10 4 2 6 151 13:00 6 1 3 6 153 13:15 5 3 6 3 158 13:30 5 5 5 4 159 13:45 4 3 3 5 158 14:00 2 4 4 4 156 14:15 8 6 3 3 158 14:30 9 2 0 6 159 14:45 7 3 4 4 163 15:00 8 2 3 6 166 15:15 9 4 4 6 169 15:30 6 5 3 6 167 15:45 11 5 4 4 173 16:00 7 3 4 2 179 16:15 5 3 1 6 176 16:30 7 5 0 9 169 16:45 9 2 6 1 181 17:00 10 4 9 8 188 17:15 16 2 6 6 202 17:30 10 3 5 3 211 17:45 12 2 5 4 222 18:00 9 4 8 2 233 18:15 15 2 6 15 237 18:30 12 5 5 it 238 18:45 14 8 5 3 246 19:00 12 5 8 4 257 19:15 2 6 8 4 257 19:30 8 1 5 6 263 19:45 9 7 7 7 265 20:00 9 5 7 4 272 20:15 9 2 6 5 280 20:30 12 3 6 7 288 20:45 6 7 5 3 289 21:00 9 2 0 0 296 21:15 2 4 5 2 297 21:30 8 1 10 5 309 21:45 7 1 9 5 319 22:00 5 1 4 1 326 22:15 1 7 2 1 321 22:30 6 4 6 4 325 22:45 3 2 1 5 322 23:00 8. 2 4 2 23:15 1 1 2 1 23:30 6 2 2 1 23:45 4 0 5 1 1341H 0:00 0 0 0 3 TOTAL 452 307 252 388 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 City: Location: Date: Count Type: Santa Ana Nlnteen0l 4/28/2018 Parking Occupancy / Driveway Count 331 Beginning Occupancy First St Dwy Cabrillo Park Dwy Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7626 1 Entering Exiting Entering Exiting Total 0:00 3 0 3 1 330 0:15 2 4 5 2 331 0:30 3 1 1 0 334 0:45 1 2 2 2 333 1:00 4 5 3 0 335 1:15 2 4 1 2 332 1:30 4 2 1 2 333 1:45 2 3 0 2 330 2:00 2 2 2 1 331 2:15 0 0 1 1 0 332 2:30 1 0 0 0 333 2:45 4 2 2 1 336 3:00 4 0 2 3 339 3:15 0 0 0 0 339 3:30 1 1 1 0 340 3:45 0 0 1 2 339 4:00 0 0 1 0 340 4:15 0 1 0 0 339 4:30 0 0 2 1 340 4:45 1 0 1 0 342 5:00 0 0, 0 1 341 5:15 0 0 0 1 340 5:30 0 0 _ 1 0 341 5:45 2 2 0 0 341 5:00 0 2 0 0 339 6:15 0 0 1 2 338 6:30 0 2 2 2 336 6:45 0 1 1 0 2 333 7:00 0 2 1 0 332 7:15 0 0 0 4 328 7:30 1 11 0 6 312 7:45 1 0 1 4 310 8:00 6 5 1 6 306 8:15 1 2 0 3 302 8:30 1 4 2 6 295 8:45 2 4 0 7 286 9:00' 4 2 10 5 283 9:15 5 3 1 7 279 9:30 6 1 0 7 277 9:45 3 2 1 6 273 10:00 7 5 5 7 273 10:15 0 9 1 5 260 10:30 4 4 0 4 256 10:45 4 4 4 7 253 11:00 5 3 1 10 246 11:15 5 5 0 4 242 11:30 4 2 3 13 234 11:451 6 1 3 1 3 7 233 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7626 1 City: Santa Ana Location: Ninteen0l Date: 4/28/2018 Count Type: Parking Occupancy/Driveway Count 331 Beginning Occupancy First St Dwy I Cabrillo Park Dwy TOTAL 417 266 240 416 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7`Q68Uz Entering Exiting Entering Exiting Total 12:00 7 1 1 9 231 12:15 4 2 3 11 225 12:30 6 4 4 12 219 12:45 7 8 7 7 218 13:00 2 6 3 3 214 13:15 4 1 5 8 214 13:30 9 6 5 3 219 13:45 9 4 4 5 223 14:00 5 2 2 6 222 14:15 4 1 1 2 224 14:30 2 2 2 5 221 14:45 5 6 2 5 217 15:00 11 2 7 8 225 15:15 3 1 5 6 226 15:30 9 1 3 11 226 15:45 4 4 5 5 226 16:00 11 9 4 6 226 16:15 9 3 2 6 228 16:30 3 3 5 3 230 16:45 7 1 2 30 228 17:00 9 0 3 6 234 17:15 7 5 3 6 233 17:30 9 3 5 8 236 17:45 8 3 0 6 235 18:00 9 3 4 6 239 18:15 12 4 11 4 254 18:30 7 9 3 6 249 18:45 8 3 3 9 248 19:00 5 1 6 7 251 19:15 7 9 6 7 248 19:30 6 6 3 7 244 19:45 5 3 3 7 242 20:00 7 1 7 6 249 20:15 11 4 5 4 257 20:30 3 5 6 11 250 20:45 7 3 6 3 257 21:00 6 3 4 2 262 21:15 8 3 3 3 267 21:30 6 1 3 7 268 21:45 7 2 3 2 274 22:00 5 2 4 5 276 22:15 5 3 2 4 276 22:30 9 3 2 3 281 22:45 9 6 2 2 284 23:00 5 3 4 5 285 23:15 6 0 2 0 293 23:30 5 2 4 3 297 23:45 4 4 4 1 300 0:001 0 0 0 0 300 TOTAL 417 266 240 416 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7`Q68Uz City: Santa Ana Location: The Marke Date: 4/26/2018 Count Type: Parking Occupancy/Driveway Count 219 Beginning Occupancy Main St Dwy Rear Dwy Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7v65=83363 Entering Exiting Entering Exiting Total 0:00 0 0 4 4 219 0:15 0 0 2 0 221 0:30 0 0 1 0 222 0:45 0 0 1 1 222 1:00 0 0 2 2 222 1:15 0 0 0 1 221 1:30 0 0 2 0 223 1:45 0 0 0 2 221 2:00 0 0 1 0 222 2:15 0 0 2 0 224 2:30 0 0 2 0 226 2:45 0 0 1 0 227 3:00 0 0 2 0 229 3:15 0 0 0 0 229 3:30 0 0 1 0 230 3:45 0 0 1 3 228 4:00 0 0 2 2 228 4:15 0 0 2 1 229 4:30 0 0 0 3 226 4:45 0 0 2 4 224 5:00 0 0 0 3 221 5:15 0 0 0 5 216 5:30 0 0 2 6 212 5:45 0 0 2 10 204 6:00 0 0 1 4 201 6:15 0 0 1 9 193 6:30 0 3 3 4 189 6:45 1 6 4 4 184 7:00 0 3 2 11 172 7:15 2 7 2 11 158 7:30 0 5 3 10 146 7:45 0 8 1 10 129 8:00 0 4 3 12 116 8:15 1 5 1 11 102 8:30 1 6 2 12 87 8:45 0 8 4 9 74 9:00 1 6 4 6 67 9:15 0 0 6 7 66 9:30 0 5 5 7 59 9:45 0 9 5 3 52 10:00 0 3 4 3 50 10:15 1 3 6 6 48 10:30 0 4 3 2 45 10:45 2 2 6 5 46 11:00 0 4 5 7 40 11:15 1 3 4 5 37 11:30 1 5 3 5 31 11:45 2 2 4 5 30 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7v65=83363 City: Santa Ana Location: The Marke Date: 4/26/2018 Count Type: Parking Occupancy/Driveway Count 219 Beginning Occupancy Main St Dwy I Rear Dwy TOTAL 42 192 632 476 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7`gf=Ib4 Entering Exiting Entering Exiting Total 32:00 3 2 16 2 45 12:15 0 4 3 4 40 12:30 1 3 5 9 34 12:45 3 4 4 10 27 13:00 1 5 9 4 28 13:15 0 1 10 6 31 13:30 1 4 8 7 29 13:45 0 3 3 5 24 14:00 3 3 10 11 23 14:15 0 2 7 6 22 14:30 0 1 8 3 26 14:45 1 1 7 2 31 15:00 1 2 7 2 35 15:15 0 8 10 7 30 15:30 1 4 8 5 30 15:45 1 3 11 1 38 16:00 1 3 3 2 37 16:15 3 4 11 6 41 16:30 1 1 8 5 44 16:45 3 5 9 7 44 17:00 0 6 14 5 47 17:15 1 5 24 1 66 17:30 0 3 SS 1 77 17:45 2 3 14 5 85 18:00 0 7 24 8 94 18:15 0 4 24 4 110 18:30 1 0 11 12 110 18:45 0 0 13 8 115 19:00 0 0 30 12 113 19:15 0 0 17 5 125 19:30 0 0 22 8 139 19:45 0 0 14 7 146 20:00 0 0 19 8 157 20:15 0 0 17 10 164 20:30 0 0 15 8 171 20:45 1 0 13 8 177 21:00 0 0 13 4 186 21:15 0 0 10 7 189 21:30 0 0 11 7 193 21:45 0 0 11 5 199 22:00 0 0 10 4 205 22:15 0 0 9 4 210 22:30 0 0 7 3 214 22:45 0 0 5 2 217 23:00 0 0 9 5 221 23:15 0 0 7 3 225 23:30 0 0 2 2 225 23AS1 0 0 1 1 225 0;001 0 0 0 0 225 TOTAL 42 192 632 476 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7`gf=Ib4 City: Santa Ana Location: The Marke Date: 4/26/2018 Count Type: Parking Occupancy/Driveway Count 166 Beginning Occupancy Main St Dwy I Rear Dwy Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7 9r2=315 Entering t Exiting Entering Exiting Total 0:00 0 0 7 4 169 0:15 0 0 7 4 172 0:30 0 0 5 3 174 0:45 0 0 6 6 174 1:00 0 0 1 1 174 1:15 0 0 4 2 176 1:301 0 0 5 3 178 1:45 0 0 2 1 179 2:00 0 0 3 2 180 2:15 0 0 2 0 182 2:30 0 0 3 0 185 2:45 0 0 0 0 185 3:00 0 0 4 0. 189 3:15 0 .0 1 0 190 3:30 0 0 2 1 191 3:45 0 0 2 0 193 4:001 0 0 0 0 193 4:15 0 0 0 0 193 4:30 0 0 0 0 193 4:45 0 0 0 0 193 5:00 0 0 0 0 193 5:15 0 0 0 1 192 5:30 0 0 0 1 191 5:45 0 0 2 1 192 6:00 0 0 0 1 191 6:15 0 0 1 0 192 6:30 0 0 0 1 191 6:45 2 0 1 2 192 7:00 1 1 3 2 193 7:15 0 1 1 4 189 7:30 0 4 2 4 183 7:45 0 2 1 4 178 8:00 0 2 2 2 176 8:15 0 3 2 4 171 8:30 0 5 3 5 164 8:451 2 2 2 9 157 9:00 3 8 4 5 151 9:15 0 4 4 7 144 9:30 1 7 5 2 141 9:45 1 3 1 8 132 10:00 0 4 5 2 131 10:15 0 3 1 2 127 10:30 0 4 5 4 124 10:45 0 5 5 6 118 11:00 1 30 7 4 112 11:15 1 2 4 4 111 11:301 1 4 6 4 110 11:451 0 7 8 2 109 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 7 9r2=315 City: Santa Ana Location: The Marke Date: 4/26/2018 Count Type: Parking Occupancy/ Driveway Count 166 Beginning Occupancy Main St Dwy Rear Dwy TOTAL 54 195 504 349 Counts Unlimited, Inc. PO Box 1178 Corona, CA 92878 fglff(� f9 -;U V Entering Exiting EnteringExiting Total 12:00 1 3 4 3 108 12:15 0 5 9 8 104 12:30 0 4 9 4 105 12:45 2 7 6 8 98 13:00 1 3 6 3 99 13:15 0 6 3 2 94 13:30 1 3 8 4 96 13:45 1 4 8 6 95 14:00 2 2 9 6 98 14:15 2 8 12 2 102 14:30 2 5 11 3 107 14:45 2 8 10 6 105 15:00 0 6 1 1 99 15:15 2 0 1 5 97 15:30 2 5 5 1 98 15:45 2 7 12 5 100 16:00 0 1 4 6 97 16:15 0 6 7 5 93 16:30 3 6 14 3 101 16:45 0 1 3 1 102 17:00 2 4 5 1 104 17:15 1 4 5 3 103 17:30 3 5 5 5 101 17:45 4 5 5 3 102 18:00 2 3 8 3 106 18:15 2 1 6 0 113 18:30 0 0 5 4 114 18:45 1 0 8 6 117 19:00 1 0 14 8 124 19:15 0 0 12 10 126 19:301 0 1 0 17 4 139 19:45 1 1 30 11 138 20:00 1 1 13 8 143 20:15 0 0 6 3 146 20:30 0 0 8 8 146 20:45 0 0 9 5 150 21:00 0 0 3 9 144 21:15 0 0 10 10 144 21:30 0 0 8 6 146 21:45 0 0 11 4 153 22:00 0 0 9 4 158 22:15 0 0 12 8 162 22:30 0 0 9 7 164 22:45 0 0 4 6 162 23:00 0 0 11 5 168 2315 0 0 6 3 171 2330 0 0 9 3 177 2345 0 05 2 180 000 0 0 0 0 180 TOTAL 54 195 504 349 Counts Unlimited, Inc. 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N N r., 75E-338 December 7, 2017 Via Electronic Mail John Shumway, Principal THE CONCORD GROUP 369 San Miguel Drive, Suite 265 Newport Beach, CA 92660 2525 N. MAIN STREET, SANTA ANA DEVELOPMENT FISCAL IMPACT ANALYSIS Dear Mr. Shumway: RSG, Inc. ('RSG') was retained by The Concord Group ("TCG') to perform a fiscal and economic impact analysis for the development of a proposed 5.9 -acre multi -family unit project located at 2525 N. Main Street ('Project') in the City of Santa Ana ("City"). TCG obtained this analysis on behalf of the property owner/developer, 2525 N. Main St LLC ("Developer"), who recently applied for redevelopment with the City's Planning and Building Services Department. The Developer proposes to demolish the existing two-story vacant office building and construct several five -story type III -A residential apartment buildings (totaling 517 market -rate units) surrounding an 8 -story type I -A parking structure with an amenity deck, pool, gym, meeting space, and other resident - serving uses (see Figure 1 on page 9). This letter describes our analysis, methodology, and anticipated recurring fiscal impacts resulting from development of the Project. As is typical at this stage, our conclusions could evolve as the application moves forward though the design and environmental review process. In brief, RSG anticipates the following fiscal outcomes over a 25 -year forecast period, presented in both nominal and real value (2017$) discounted at a 4 percent discount rate: • Approximately $33.5 million ($19.0 million in 2017$) in additional City General Fund revenue, including construction period revenues, recurring site-specific tax, and other Project revenues. • Approximately $415,200 (2017$) in property tax revenue per year, as opposed to the current $32,300 (2017$). The site development would generate approximately $16.5 million ($9.4 million in 2017$) after 25 years. • Over the same 25 -year period, the City General Fund expenditures associated with the Project total $10.0 million ($5.4 million in 2017$). • Asa result, the net new General Fund revenue is projected to be approximately $23.5 million ($13.6 million in 2017$) from the acquisition and development of the Project. 1112)17 75E-339 33 The following table summarizes the estimated fiscal impacts attributed to the Project. Year -by year projections are included as an exhibit at the end of this report. NET NEW RECURRING GENERAL FUND FISCAL IMPACTS 2525 N MAIN STREET, SANTA ANA Less City Expenditures $ (10,008,990) $ (5,446,563) NET NEW REVENUE TOTAL $ 23,513,206 $ 13,590,997 Sources: City of Santa Ana, County of Orange, California State Board of Equalization, ESRI Business Analyst Online, and RSG, Inc. PROJECT DESCRIPTION The Project site is located at 2525 N. Main Street in Santa Ana, across from the Orange County Discovery Science Center at the northeast corner of Main Street and Edgewood Road. The P (Professional) -zoned site is approximately 5.9 acres and is currently developed as a single two- story office building and paved parking lot. The building has been vacant for several months, following the closure of the data center operated by Wells Fargo about a year ago. After many years of lower rents and oversupply, Orange County is beginning to see an increase in demand and rents for office space, with some first-tier areas (such as Irvine and Newport Beach) beginning to experience new construction of Class A properties. However, this has not yet occurred in central Orange County and Santa Ana, where rents are not sufficiently high to support the cost of construction. Shortly after acquiring the office building from the Trust that held it for many years, Wells Fargo listed the property for sale in early 2017. By August 2017, the Developer purchased the property for purposes of redevelopment into luxury apartments. The Developer is currently developing another (larger) apartment and commercial project on Dyer Road, just west of Red Hill Avenue in Santa Ana in the location of a former industrial building. Central Orange County has seen a recent growth of infill luxury and market rate apartment construction, particularly in areas where office and other commercial uses are no longer viable. In this case, the Project entails development of 517 units of apartments, an 8 -story, 910 -space parking structure, and an amenity deck comparable to what is found among many newer apartment complexes built in area. 11f12/17 75E-340 34 25 -Year Recurring Revenues Revenue Category Nominal NPV 4.0% Property Tax $ 16,461,099 $ 9,439,388 Property Tax In -Lieu 10,730,966 6,153,523 Utility User Tax 3,150,459 1,714,376 Residential Derived Sales Tax 2,554,468 1,390,058 Business Tax 625,203 340,215 Construction Business Tax - - Construction Sales Tax - - Total Revenues $ 33,522,196 $ 19,037,560 Less City Expenditures $ (10,008,990) $ (5,446,563) NET NEW REVENUE TOTAL $ 23,513,206 $ 13,590,997 Sources: City of Santa Ana, County of Orange, California State Board of Equalization, ESRI Business Analyst Online, and RSG, Inc. PROJECT DESCRIPTION The Project site is located at 2525 N. Main Street in Santa Ana, across from the Orange County Discovery Science Center at the northeast corner of Main Street and Edgewood Road. The P (Professional) -zoned site is approximately 5.9 acres and is currently developed as a single two- story office building and paved parking lot. The building has been vacant for several months, following the closure of the data center operated by Wells Fargo about a year ago. After many years of lower rents and oversupply, Orange County is beginning to see an increase in demand and rents for office space, with some first-tier areas (such as Irvine and Newport Beach) beginning to experience new construction of Class A properties. However, this has not yet occurred in central Orange County and Santa Ana, where rents are not sufficiently high to support the cost of construction. Shortly after acquiring the office building from the Trust that held it for many years, Wells Fargo listed the property for sale in early 2017. By August 2017, the Developer purchased the property for purposes of redevelopment into luxury apartments. The Developer is currently developing another (larger) apartment and commercial project on Dyer Road, just west of Red Hill Avenue in Santa Ana in the location of a former industrial building. Central Orange County has seen a recent growth of infill luxury and market rate apartment construction, particularly in areas where office and other commercial uses are no longer viable. In this case, the Project entails development of 517 units of apartments, an 8 -story, 910 -space parking structure, and an amenity deck comparable to what is found among many newer apartment complexes built in area. 11f12/17 75E-340 34 As a part of the application for development with the City, the developer has been asked to provide a fiscal impact analysis of the proposed Project. The City's fiscal concerns are reasonable given the slow recovery of the Santa Ana General Fund coming out of the Global Financial Crisis. FISCAL IMPACTS METHODOLOGY Property Tax Revenue RSG utilized the current City property tax share as reported by the County of Orange ("County") Auditor Controller to estimate the City's share of property tax that would result from development of the Project. The property tax revenues presented in this report are net of any current revenues received from the site (estimated at $32,300 in 2017-18). The net new assessed value as a result of the Project development is approximately $218 million (2017$). The estimated annual property tax revenue upon completion of construction is approximately $415,200 (2017$). RSG assumed 2 percent inflation on property tax revenues over the 25 -year projection period, resulting in $16.5 million ($9.4 million in 2017$) in net new property tax revenues for the City General Fund. Please note: discounted projections throughout this report reflect the net present value, or NPV, at a 4 percent discount rate. PROPERTY TAX REVENUE 2525 N MAIN STREET, SANTA ANA Current Valuation $ 16,955,000 Proposed Project 235,200,000 Net New Value $ 218,245,000 City Property Tax Rate 0.190255615 Property Tax Revenues $ 415,223 Source: County of Orange Auditor Controller, RSG, Inc. Property Tax in -lieu of Motor Vehicle License Fee Revenue The City receives property tax in -lieu of motor vehicle license fee ("MVLF") revenues, as calculated by the County Auditor -Controller. Property tax in -lieu is based on a growth rate in assessed value between 2004-05 and the current year. The City's growth rate during this period is approximately 48.417 percent. The growth rate is then applied to the City's MVLF 2004-05 base year value of $19.8 million. As a result of these calculations, the City's 2017-18 property tax in - lieu is estimated as $29.4 million. The Project is expected to increase the City's assessed value by approximately 1.06 percent, resulting in a like increase in net new property tax in lieu of MVLF revenues of approximately $312,700, or $10.7 million ($6.2 million in 2017$) over the 25 -year projection period. 11/12/17 75E-341 35 PROPERTY TAX IN -LIEU OF MOTOR VEHICLE LICENSE FEES 2525 N MAIN STREET, SANTA ANA 2004-05 City Assessed Value $ 15,979,631,532 2013-14 City Assessed Value 23,716,558,812 Growth 48.417% Santa Ana 2004-05 VLF $ 19,819,113 Santa Ana 2017-18 VLF 29,415,019 Project Assessed Value /1 $ 252,143,679 Increase in Assessed Value 1.06% Property Tax In -lieu Revenue $ 312,727 /1 Inflated pursuant to the construction schedule Source: County of Orange Auditor Controller, RSG, Inc. Utility User Tax The City assesses a utility user tax of 5.5 percent on electricity, gas, water, and telephone revenues generated in the City. Utility costs were estimated by RSG based on a review of similar projects and utility costs in Orange County. Assumed annual utility expenditures subject to the City's UUT consist of: Gas at $270 annually ($240 in 2017$), water at $480 annually ($540 in 2017$), electric at $1,351 annually ($1,200 in 2017$), and phone at $878 annually ($780 in 2017$). Based on these assumptions, RSG estimates that utility user tax revenues generated by the Project will be approximately $86,410 per year, or $3.2 million ($1.7 million in 2017$) over the 25 - year projection period. UTILITY USER TAX REVENUE 2525 N MAIN STREET, SANTA ANA Energy Expenditures per Household $ 3,039 Number of Households 517 Total Residential Energy Expenses $ 1,571,098 City Tax Rate 6% City Tax Revenues $ 86,410 Sources: City of Santa Ana Energy Information Administration, RSG, Inc. Resident -Derived Sales Tax The additional residential households in the City are expected to result in increased sales for retailers and restaurants in the City. RSG obtained average annual household expenditures for households within a 15 -minute driving radius of the Project from ESRI Business Analyst Online. By adjusting the household expenditures based on taxable and non-taxable sales, RSG estimates 11/12/17 75E-342 36 that each household generates approximately $27,000 in taxable sales per year. RSG adjusted this figure to 50 percent as the Project is located in close proximity to several significant shopping centers, including MainPlace Mall, City Place Shopping Center, Centre on 171 Shopping Center, and Downtown Santa Ana, among others, which lie within the city of Santa Ana, although many other shopping destinations existing nearby in other cities (Orange, Tustin, Irvine, and Anaheim). The total residential derived sales tax revenues are approximately $70,000, or $2.6 million ($1.4 million in 2017$) over 25 -years. RESIDENT -DERIVED SALES TAX REVENUE 2525 N MAIN STREET, SANTA ANA Taxable Household Expenditures $ 27,104 Number of Households 517 Estimated Transactions within City of Santa Ana 50% Citv Share of Sales Tax 1% Resident -Derived Sales Tax Revenues $ 70,064 Source: California State Board of Equalization, RSG, Inc Business Tax The City assesses a business tax on retail, restaurant, and multi -family management companies. Retail and restaurant business taxes are assessed based on annual sales while management company business taxes are assessed based on a base tax rate plus a rate and surcharge per unit. The Project will not involve a retail component, making the entire business tax revenue dependent on the management company business taxes. The combined business tax revenues are approximately $17,100, or $625,200 ($340,200 in 2017$) over 25 years. BUSINESS TAX REVENUES 2525 N MAIN STREET, SANTA ANA Multifamily Business Tax Basic Tax Rate $ 52 Disability & Education Fee 4 Registration Fee 31 Per Unit Tax Rate 10 Per Unit Rental Surcharge 23 Number of Units 517 Multifamily Business Tax Revenues $ 17,148 Sources: City of Santa Ana, RSG, Inc 11/12/17 75E-343 37 CITY EXPENDITURES RSG utilized the additional population of the Project to estimate the total added expenditures by the City General Fund to service the Project. RSG assumed that each studio would house 1.20 residents, each one -bedroom unit would house 1.75 residents, each two-bedroom unit would house 3 residents, and each three-bedroom unit would house 4.25 residents. Overall, this works out to an average household size of approximately 2.16 residents per unit, which we consider supportable given the unit mix that is more heavily weighted towards one -bedroom configurations (Fig. 2). Figure 2 Number of Units Per Type Source RSG, Iro Studio 62 12% 1 Bd. 304 59 2 ad. 108 21 3 ad. 43 8 While Santa Ana as a whole has a much higher average household size, many of the denser residents live south of 17th Street. By comparison, within a 0.5 -mile radius of this site, average household sizes are approximately 2.65 persons, which include both single family and multifamily housing, and an overall larger unit sizes with two or more bedrooms. Rent levels and bedroom sizes are often a driver of occupancy, as these units are expected to rent at the top end of the Santa Ana rental market, we anticipate renters to be more affluent and smaller households than what is found elsewhere in the City, and more like what exists in newer complexes being constructed today. RSG gathered data from the US Census and ESRI Business Analyst Online to estimate the equivalent full-time residents of the Project. Approximately 14 percent of Santa Ana residents work within the City, which, in effect means that the City of Santa Ana is servicing these 11,12/17 75E-344 38 resident/employees 100 percent of the time. Thirty-four percent of Santa Ana residents work outside the City. Assuming the residents that work outside of the City are outside the City limits from 9 am to 5 pm, Santa Ana is servicing these residents approximately 76 percent of the time. The City's remaining residential population (about 52 percent), is serviced by the City 100 percent of the time. Based on the total retail square footage, 86 percent of the retail employees will live outside of Santa Ana and be serviced by the City during the retail hours of operation (24 percent of the day). Accounting for all residents and employees based on the percent of time spent in the City, the Project will generate a daily (24/7) population of 1,011 persons. RSG identified costs in the City of Santa Ana FY 2017-18 Adopted Budget that are variable costs by department, as opposed to fixed costs. Variable costs are expenditures by the City that increase or decrease based on the residential and employee population in the City. The City Manager and City Attorney offices, for example, are fixed costs that will not vary based on population. Meanwhile, Police and Parks and Recreation departments will experience service increases due to the added population. RSG estimated the added City expenditures as a result of the Project at approximately $239,200. Over a 25 -year projection period, the Project will add $19.7 million ($5.5 million in 2017$) in City expenditures. SUMMARY OF RECURRING CITY EXPENDITURES' CITY OF SANTA ANA 2525 N MAIN STREET, SANTA ANA 1 For this analysis, RSG identified departmental costs in the qty of Santa Ana FY 2017-18 Budget that are variable costs, as opposed to faced costs. Variable costs are expenditures by the City that increase or decrease based on the residential and employee population in the qty. For exanple, qty Council and Human Resources salaries and wages generaly are fbced costs that do not vary based on population. Meares: hile, the Fire Services and Parks & Community Services departnents w ill likely experience service cost increases due to the added population. 2 Current expenditures are based on adopted expendaures in the qty of Santa Ana's FY 2017-18 Budget 3 Sum of current City expenditures and project -derived City expenditures. Sources: City of Santa Ana, RSG, Inc., US Census Bureau 11112,17 75E-345 39 Current City Project -derived Total City Percent City Department Expendituree City Expenditures Expenditures' Increase City Manager's Office $ 2,802,902 $ - $ 2,802,902 0.00% Non -Departmental & Intedund Transfers 14,598,981 - 14,598,981 0.00% Clerk of the Council Office 1,094,794 64 1,094,858 0.01% City Attorney's Office 3,192,300 - 3,192,300 0.00% Personnel Services 1,706,001 251 1,706,252 0.01% Finance & Management Services 5,575,056 577 5,575,633 0.01% Bowers Museum Corporation 1,476,130 - 1,476,130 0.00% Parks, Recreation and Community Services 19,966,850 2,176 19,969,026 0.01% Police Department 115,871,367 163,848 116,035,215 0.14% Fire Services 50,417,145 72,247 50,489,392 0.14% Planning & Building Agency 10,106,101 69 10,106,170 0.00% Public Works Agency 6,847,195 - 6,847,195 0.00% Community Development Agency 547,116 - 547,116 0.00% Total in FY 2017-18 $ 234,201,939 $ 239,233 $ 234,441,171 0.10% Total in 2021.22 (1st Year of Stabilization) $ 274,525 1 For this analysis, RSG identified departmental costs in the qty of Santa Ana FY 2017-18 Budget that are variable costs, as opposed to faced costs. Variable costs are expenditures by the City that increase or decrease based on the residential and employee population in the qty. For exanple, qty Council and Human Resources salaries and wages generaly are fbced costs that do not vary based on population. Meares: hile, the Fire Services and Parks & Community Services departnents w ill likely experience service cost increases due to the added population. 2 Current expenditures are based on adopted expendaures in the qty of Santa Ana's FY 2017-18 Budget 3 Sum of current City expenditures and project -derived City expenditures. Sources: City of Santa Ana, RSG, Inc., US Census Bureau 11112,17 75E-345 39 1� N O O O 00 N 1� f0 h M O O 00 OD Q M Q O) h O M Q 10 Q 10 0 M O N O O N a0 A N M O M Q M O N Ol N (C O C9 O (O N 1! 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Reno. Mix Avail Bath Sin S S/sf Competitive Market Area Nlneteen0l 264 95% 3% 1 / 1.0 770 52,125 $2.76 Lyon Living 5 2016 3% 2 1 /1.0 773 $2,200 $2.85 1901 E 1st St 15% 4 1 /1.0 774 $1,949 $2.52 Santa Ana 3% 1 /1.0 795 52206 $2.77 6% 1 11.0 826 52,151 $2.60 2% 1 /1.0 848 $2,175 $2.56 2% 1 /1.0 860 $2,125 52.47 2% 1 /1.0 864 52225 $2.58 2% 1 /1.0 890 $2213 $2.49 3% 1 1 /1.0 948 $2,625 $2.77 3% 1 /1.0 967 52,300 52.38 2% 1 /1.0 974 $2256 $2.32 0% 1 /1.0 982 $2,558 $2.60 3% 2 / 1.0 982 $2,401 52.45 O% 2 / LO 1,034 $2,450 $2.37 2% 1 2/1.0 1,058 52,600 $2.46 ON. 2 /1.0 1,156 $3,050 $2.64 ON 2 / 1.0 1,180 $3,050 $2.58 7% 2 /2.0 1,081 52,700 $2.50 6% 2 /2.0 1,085 $2,662 52.45 4% 3 2/2.0 1,122 $2,700 52.41 9% 2 2 /2.0 1,138 $2,725 $2.39 5% 1 2/2.0 1,142 $2,700 $2.36 00/0 2 /2.0 1,193 52,795 $2.34 2% 2/2.0 1,195 $2,725 $2.28 2% 2/2.0 1,260 52,900 $2.30 2% 2/2.0 1265 52,950 $2.33 1% 2/2.0 1,315 53200 52.43 0% 2/2.0 1,391 $3,307 $2.38 1% 2/2.0 1,476 53.510 52.38 2% 2/2.0 1,639 $3,600 $2.20 2% 2/2.0 1,712 $3,599 $2.10 2% 2 /2.5 1,760 53,800 $2.16 2% 3/2.0 1,510 $3219 52.13 00/0 3 /2.0 1,632 53,471 $2.13 2% 3 /2.5 2,020 $4,499 $2.23 Tustin Cottages 93 98% 68% 1 3 /2.5 1,582 $2,830 $1.79 JB Matteson 4 2011 13% 1 3/2.5 1,691 $2,955 $1.75 1361 EI Camino Real 11% 3 /2.5 1,715 52,802 $1.63 Tustin 1% 3 /2.5 1,767 $2,940 $1.66 8% 3 /3.5 2,042 52,966 $1.45 Residences on Jamboree 381 960/. 1% 0/1.0 653 Si,915 $2.93 UDR 5 2017 17% 1 0/1.0 677 $2244 $3.31 2801 Kelvin Ave IOa/s 1 /1.0 694 52244 $3.23 Irvine 3% 1 /1.0 714 $2,352 $3.29 10% 3 1 /1.0 745 $2274 $3.05 8% 2 1 /1.0 776 52,399 53.09 10% 1 /1.0 801 52,399 $3.00 ON 1 /1.0 903 52.570 $2.85 7% 3 2 /2.0 1,093 $2,818 52.58 3% 2 2 /2.0 1,117 $2,893 $2.59 20% 2 /2.0 1,136 $2,893 $2.55 1% 2/2.0 1284 $3297 52.57 2% 3 2 /2.0 1,432 53,358 $2.34 41/6 3 /2.0 1,426 $3,729 52.62 1% 3 /2.0 1,432 $3,890 $2.72 1% 3 /2.0 1,503 $3,849 52.56 17590.00 RmComps: Camps THE CONCORD GROUP 11/12117 75E-349 43 APPENDIX A SURVEY -APARTMENTS COMPETITIVE MARKET AREA NOVEMBER 2017 17590.00 PWComps: Comps THE CONCORD GROUP 11112/17 75E-350 44 OceJ Project Name/ Year Floorpla s Manager/ Units/ Built/ Unita Bed/ Unit Base Rent Address Else. Repo. Mia Avail Bath Size S $/sI The Alton 344 96% 0% 1 0 / 1.0 499 SI,874 $3.76 Equity Residential 5 2016 3% 0 0/1.0 502 52,035 $4.05 2501 Alton Parkway 1% 0 1.0 547 $2,056 $3.76 Irvine 26% 3 1 1.0 638 $2,140 $3.35 3% 1 1.0 640 $2,327 $3.64 12% 3 1 1.0 648 $2,120 $3.27 1% 1 1.0 652 $2,174 $3.33 4% 1 1.0 680 $2,235 $3.29 1% 1 1.0 704 $2,299 $3.27 1 % 1 1.0 731 $2,405 $3.29 5% 1 1 1.0 735 $2,355 $3.20 1% 1 1.0 740 $2,447 $3.31 5% 1 1 1.0 742 $2,455 $3.31 1% 1 1.0 762 $2,198 $2.88 00% 1 1.0 820 $2,723 $3.32 0% 1 1 1.0 868 $2,565 $2.96 3% 2 2.0 968 $2,785 $2.88 1% 2 2.0 970 52,892 $2.98 5% 2 2.0 980 $3,006 $3.07 3% 2 2.0 992 52,833 $2.86 6% 2 2.0 1,012 $2,841 52.81 I% 2 2.0 045 $2,909 $2.78 1% 1 2 2.0 1,049 53,015 $2.87 1% 2 2.0 1,050 52,889 $2.75 1% 2 2.0 1,066 $2,835 $2.66 1% 2 2.0 1,085 $2,910 $2.68 0% 1 2 2.0 1,093 $3,010 52.75 0% 2 2.0 1,101 S3,377 $3.07 6% 1 2 2.0 1,110 52,890 $2.60 3% 2 2 2.0 1,132 $3,005 $2.65 0% 2 2.0 1,141 $3,271 $2.87 1% 2 2.0 1,144 S3,325 $2.91 1% 2 2.0 1,146 $2,970 $2.59 The Kelvin Apartments 194 99% 8% 1 /1.0 602 $1,908 $3.17 Equity Residential 5 2014 4% 1 /1.0 703 $2.285 $3.25 2850 Kelvin Ave 13% 1 /1.0 728 $2,060 $2.83 Irvine 7% 1 / 1.0 752 $2,172 $2.89 8% 1 / 1.0 803 $2,140 $2.67 3% 1 /1.0 811 52,140 $2.64 11% 1 /1.0 857 $2,380 $2.78 4% 1 /1.0 883 $2,249 $2.55 7% 1 / 1.0 898 $2,405 $2.68 4% 1 /1.0 942 52,335 $2.48 1% 1 1.0 961 $2,473 $2.57 2% 2 2.0 1,010 $2,581 $2.56 6% 1 2 2.0 1,095 $2,710 $2.47 7% 2 2.0 1,125 $2,733 $2.43 4% 2 2.0 1,135 $2,870 $2.53 3% 2/2.0 1,138 $2,996 $2.63 2% 2/2.0 1,265 $3,356 $2.65 3% 2/2.0 1,267 $3,146 $2.48 1% 2/2.0 1,294 53,207 $2.48 3% 2/2.0 1,461 $3,480 $2.38 17590.00 PWComps: Comps THE CONCORD GROUP 11112/17 75E-350 44 APPENDIXA SURVEY -APARTMENTS COMPETITIVE MARKT AREA NOVEMBER 2017 17590.00 RnComps: Comps 75E-351 THE CONCORD GROUP 11112117 45 Oal Project Name/ Year Floorplaos Manager/ Units/ Built/ Unita Bed/ Unit Bate Rent Address Elev. Reno. Mix Avail Bath Sia S 8/t( Amalfi 542 99% 6% 0/ 1.0 584 81,955 53.35 Irvine Company 3 2014 6% 1 /1.0 552 $1,960 $3.55 16000 Legacy Road 6% 1 /1.0 681 52,030 $2.98 Tustin 7% 1 /1.0 695 $2,020 $2.91 7% 1 /1.0 698 52,075 $2.97 7% 1 /1.0 730 $2,320 $3.18 7% 1 /1.0 741 52205 $2.98 6% 1 /1.0 746 $2220 52.98 69/6 1 1 /1.0 751 $2,190 $2.92 5% 1 /1.0 760 52265 $2.98 5% 1 /1.0 800 82,385 $2.98 5% 1 1 /1.0 813 $2,310 $2.84 5% 1 /1.0 906 $2225 $2.46 5% 1 /1.0 982 $2,505 $2.55 5% 2/2.0 963 S2,510 $2.61 5% 2 2/2.0 1,021 $2,525 $2.47 5% 2 2/2.0 1,095 $2,710 82.47 5% 1 2/2.0 1,208 $2.600 $2.15 The Marla 300 95% 3% 1 /1.0 713 $2,073 S2.91 Lyon Living 5 2014 3% 1 1 /1.0 721 52,073 $2.88 100 E MacArthur Blvd 3% 1 /1.0 723 $2,108 $2.92 Santa Ana 3% 1 /1.0 736 52290 $3.11 3% 1 /1.0 748 S2239 S2.99 3% 1 1 /1.0 757 $2,143 $2.83 90/0 1 1 / 1.0 804 $2215 $2.75 1% 1 1 / 1.0 821 52,510 53.06 2% 1 /1.0 876 52.523 $2.88 4% 3 2/2.0 1,009 $2,599 $2.39 4% 1 2/2.0 1,094 52,817 $2.57 4% 2 /2.0 1,110 $2,745 $2.47 4% 1 2 /2.0 1,113 $2,755 52.48 4% 2 /2.0 1,136 S2,665 S2.35 4% 2/2.0 1,137 $2,785 $2.45 4% 2 2/2.0 1,140 $2,863 $2.51 1% 2 2/2.0 1,181 $3208 $2.72 5% 2/2.0 1,186 $2,900 $2.45 0% 2 /2.0 1,229 S3,382 $2.75 0% 2/2.0 1251 53,075 $2.46 0% 2/2.0 1284 53369 $2.62 16% 3 /2.0 1,305 53,494 52.68 1% 1 3 /2.0 1,374 23,543 52.58 W. 3 /2.0 1,455 $3,925 52.70 16% 1 3 /2.0 1,470 53,962 $2.70 Fudoo 208 100% 3% 0/1.0 688 $1,995 $2.90 360 Residential 5 2017 3% 0/1.0 697 $2,065 $2.96 17321 Murphy Ave 25% 0/1.0 814 $2255 $2.77 Wuu; 2% 1 /1.0 731 $2200 $3.01 25% 1 / 1.0 755 $2,285 $3.03 3% 1 /1.0 792 52,345 $2.96 20% 2/2.0 1,041 52,545 $2.44 20% 2 /2.5 1,246 83,335 $2.68 17590.00 RnComps: Comps 75E-351 THE CONCORD GROUP 11112117 45 APPENDIX SURVEY -APARTMENTS COMPETITIVE MARKET AREA NOVEMBER 1017 Metropolis 232 97% Garden Communities 4 2017 2100 Sullivan Irvine 7°/. O"1 720 $2,250 $3.13 5% 0/1.0 Project Name/ 52,415 Year 5% Floorplans 819 $2,275 $2.78 Manager/ Units/ Bout/ Unita $2,275 Bed/ Unit Rase Rent Address Elev. Remo. Mia Avail Bath Slm $ $/sf AMLI Uptown Orange 334 95% 5% 1 /1.0 T / 1.0 570 51,971 $3.46 AMLI 5 2016 6% 2 1 /1.0 626 $2,100 $3.35 385 S Manchester Ave $2.69 5% 71/6 1 /1.0 1 / LO 711 $2,191 $3.08 Orange 1 /1.0 1,010 0^/0 $2.62 1 /1.0 716 $2,226 $3.11 53,050 $3.02 1% 4% 1 1 /1.0 745 $2,006 52.69 1 /1.0 1,037 1% $2.69 1 / 1.0 748 $2,204 $2.95 S3,135 $2.62 1% 16% 3 1 /1.0 802 $2,105 $2.62 2 2 /2.0 1,238 1% $2.35 1 / LO 816 $2,195 $2.69 52,971 52.33 1% 0% 1 1 /1.0 823 $2,175 $2.64 1 2/2.0 1,355 100/6 3 1 / 1.0 829 $2,036 $2.46 $3,240 $2.32 1% 1% 2/2,0 1 /1.0 837 $2,210 52.64 2/2.0 1,445 0% $2.33 1 /1.0 840 $2,231 $2.66 $3,375 $2.21 5% 1% 3 /2.0 1 /1.0 857 $2,330 $2.72 3/2.0 1,559 0% $2.29 1 /1.0 862 $2,130 $2.47 $3,575 $2.07 6°G 6% 3/2.0 2/2.0 978 $2,556 $2.61 1% 2/2.0 993 $2,631 $2.65 1% 2/2.0 1,002 $2,645 $2.64 3% 2/2.0 1,010 $2,596 $2.57 2% 2/2.0 1,047 52,446 $2.34 1% 2/2.0 1,049 $2,391 $2.28 6% 2/2.0 1,050 $2,678 12.55 1% 2/2.0 1,054 $2,606 $2.47 1% 2/2.0 1,063 $2,780 $2.62 2% 2/2.0 1,122 $2,705 $2.41 9% 2/2.0 1,131 $2,587 $2.29 1% 2/2.0 1,133 52,845 $2.51 1% 2/2.0 1,142 52,755 $2.41 1% 2/2.0 1,147 $2,980 $2.60 3% 2/2.0 1,175 $2,766 $2.35 1% 1 2/2.0 1,211 $2,880 $2.38 1% 1 2/2.0 1,236 $3,081 $2.49 2% 3 3/2.0 1,404 53,480 52.48 1% 2 3 /2.0 1,431 $3,401 52.38 Metropolis 232 97% Garden Communities 4 2017 2100 Sullivan Irvine 7°/. 0/1.0 720 $2,250 $3.13 5% 0/1.0 874 52,415 $2.76 5% 1 /1.0 819 $2,275 $2.78 5% 1 /1.0 853 $2,275 $2.67 5% 1 /1.0 861 32.375 52.76 5% 1 /1.0 864 $2,675 $3.10 5% 1 /1.0 871 52,342 $2.69 5% 1 /1.0 874 $2.350 $2.69 5% 1 /1.0 889 $2.390 $2.69 5% 1 /1.0 963 52,635 $2.74 5% 1 /1.0 1,010 $2,650 $2.62 5% I / 1.0 1,011 53,050 $3.02 1% 1 /1.0 1,027 $2,761 $2.69 1% 1 /1.0 1,037 $2,788 $2.69 1% 1 2/2.0 1,198 S3,135 $2.62 1% 2 2/2.0 1,236 52,815 $2.28 7°/. 2 2 /2.0 1,238 $2,915 $2.35 6% 2 /2.0 1,274 52,971 52.33 1% 1 2/2.0 1,350 53,015 52.23 1% 1 2/2.0 1,355 $3,125 52.31 1% 2/2.0 1,397 $3,240 $2.32 1% 1 2/2,0 1,423 53,015 $2.12 1% 2/2.0 1,445 $3.370 $2.33 1% 2/2.0 1,530 $3,375 $2.21 5% 3 /2.0 1,535 53,575 52.33 1% 3/2.0 1,559 $3,575 $2.29 2% 3/2.0 1,726 $3,575 $2.07 6°G 3/2.0 1,747 54,215 $2.41 17590.00 RoXomps: comps THE CONCORD GROUP 11/42/17 75E-352 46 APPENDIX A SURVEY -APARTMENTS COMPETITIVE MARKET AREA NOVEMBER2017 Project Name/ Manager/ Address Ocel Year Units/ Built/ Elev. Repo. Unit, Mi. Avail Floorplans Bed/ Bath Unit Size Base Rent S $/st Platinum Triougle JeBenon Platinum Triangle 200 74% 101/6 1 0 / 1.0 578 $2,160 $3.74 Affiance 5 2017 4% 0 / 1.0 663 52,205 $3.33 1781 S Campton Ave 4% 3 1 / 1.0 724 $2,225 $3.07 Anaheim 4% 1 1 / 1.0 748 $2,115 $2.83 7% 6 1 / 1.0 750 $2,160 52.88 4% 2 1 / 1.0 772 $2,280 $2.95 8% 1 1.0 825 $2,365 $2.87 4% 3 2 2.0 958 $2,645 $2.76 49/ 3 2 2.0 995 $2,475 $2.49 4% 3 2 2.0 1,062 $2,615 $2.46 4% 3 2 2.0 1,071 $2,865 $2.68 4% 3 2 2.0 1,079 $2,840 $2.63 4% 3 2 2.0 1,081 $2,655 $2.46 4% 3 2 2.0 1,118 $2,780 $2.49 40% 2 2.0 1,128 52,810 52.49 4% 3 2 2.0 1,147 $2,885 $2.52 4% I 2 2.0 1,156 $3,350 52.90 4% 1 2 2.0 1,160 $3,070 $2.65 4% 2 2 2.0 1,181 $2,955 52.50 4% 3 2 2.0 1,199 $2,905 $2.42 4% 1 2 2.0 1,275 $3,365 $2.64 4% 3 3 2.0 1,307 $3,420 $2.62 4% 3 3 2.0 1,393 $3,560 $2.56 4% 2 3 2.0 098 $3,720 $2.66 17590.00 RecComps: Comps 75E-353 THE CONCORD GROUP 11/12117 47 b N `O pP.� b O� m e rn e M a e_ e e e e e b b vef V MNN 0o O y b O oo r MIN e N h_ P 00 y M Q h M Vl h b OO h ti M ele e e e e e e h h h h V1 V1 V1 h G C C G G C C O P b N h V 00 P M M O oh�Moo N tb+l M O < I e e e e N VI V1 h h W b Nf T T O O b W Vf h e T V N e w e e e e e Vb1e V M bbb h M h Vii O e N �I Oe bl;g a O tR h m r C W N �n e N e O e O O O O e r h V M N N N e W OMNO�O N hN N � O M r rlMo0 e e e e e e e e h V1 V1 h H h N N O C G O O O O C e b N H O 00 h^ T N e ooPh e e e e e h h h V h O'i Vl O N N r M O C M N= e h r O O e e e O e e O e rOr b h y N N N� n Vl h h h h Vl y� r r h N h o° a0 b 5 e h P P r r P o pp a H y H H K H q 9 C H H g e � a 8$88888 u e e e e e e g N N M M p K N H H H H H W F m ey he�pp �D Vl e M N N N h a r b h V t°O�1 N N N jn e y� o d s e e e e e e e e d p y d = Clog r (� O $p$8g 258580 HUM Y H H H N N H H R H C O v: h M h Vii O e N �I Oe bl;g a O tR h m r C W N �n e N e O e O O O O e r h V M N N N e W OMNO�O N hN N � O M r rlMo0 e e e e e e e e h V1 V1 h H h N N O C G O O O O C e b N H O 00 h^ T N e ooPh e e e e e h h h V h O'i Vl O N N r M O C M N= e h r O O e e e O e e O e rOr b h y N N N� n Vl h h h h Vl y� r r h N h o° a0 b b e h P P r r P o e e e e e e eT e�pp e e e e e e e e\ ey he�pp �D Vl e M N N N h a r b h V t°O�1 N N N jn e y� r (� O 8 � H H H NK H H H ttl Q U v o K M�nr r:v ei � '�,HHHHHSF�� e l e e e e f e�yy e e p$p� SS 8S B�pp H H H H H H h O h O Op O M VI r O� O h H H H N N H H H H i5E-354 e e e e e o e e O oo O O h N- O V M M M N N N N 02525`=�55� n O v i S h S hp h r- r N NH p HNSrM CHH W h 5 E E 2s E II S _ O y- N N N NI N l� m N N a le yQC! 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III Y Iii W 5jlIIH di3 i3�333.3� iT�3T�6 3 idd p5 flimm FfiflaZ�333s�oZZZ x 6gxxx xx�Cxxx��x� xx�g x�� 21 g$ oe �5 bgg a yj ^��E�[p6 d�gggg y>Q 5.9 y �^."9p'&COs GCpd +2a C4�4d�Y �'G y�aEEr 6ci y eY z2252°55'mu siu�e228s.,.$,Baul.9M � Fa ZEE-� _� 75E-358 11/19/2018 EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-06 N. Zoning Zone Delption sIn<I.-nm�h R.nd.M. ® iwo-nm�h Rne.n<. � s.enn.n M•am.m ■MURIpMn El . Wmr. ■ gxidmtia Efnt. CanrmrdN RSN.MaI >4nri.d SRoppiry C.ntx U"N M.in Sbwt Cmmxtl.l d na Cunmuniry Camm.rtn4mmwm mvb ■ Gm.rN Cemmx[nl ■ fiat InAnniil � v.n..veMi own dw .t Emtx 4.n.m1 q-11-1 Labels: Zoning cool: D i 11- •r �1'taz p ow V 4 t4 1. ISI F1 `• •J t R7 L5 teer {{ nity Zoning and Aerial View n J01A Dinital Man Prndurtc All rinhta respr pA. http://apps.spatialstream.con/production/dashboard/819/0/CurrentB7d6Eapo36gnl 1/1 p .S s SITE t s J.a. .jp.d,.w .i��e •.�.e L'. 11 41 4 A 4 t4 1. ISI F1 `• •J t R7 L5 teer {{ nity Zoning and Aerial View n J01A Dinital Man Prndurtc All rinhta respr pA. http://apps.spatialstream.con/production/dashboard/819/0/CurrentB7d6Eapo36gnl 1/1 75E-360 i EXHIBIT 12 SITE PHOTO 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-361 75E-362 till 111_0 CA Q Z 5 w 4.2 I EXHIBIT 13 SITE PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-363 75E-364 II1111116�:f� IIIIIII'Ill •Ikl_- a ■I�. r,�n,� J e � P!i1 1 ul ...a I IIII� IIIIIIIIf d�I eF. fffffffffff� ■I... '.Of ■'Li ...I :noi �n■ �.L.. I� �.u.l II ,uil :Ill 11111 IIIA 111 � • f� 11 � Icy i EXHIBIT 14 TYPICAL FLOOR PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-365 ■u� ■iii _ u 1tl e N 'V Q EXHIBIT 14 TYPICAL FLOOR PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-366 ik; ■ I I ■■I Ili:« i ° � .■■I 'I �„¢ a 9� III M 4 Q EXHIBIT 14 TYPICAL FLOOR PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-367 I h {'1 IIIIIIIIII� � ■ I I ■■I Ili:« i ° � .■■I 'I �„¢ a 9� III M 4 Q EXHIBIT 14 TYPICAL FLOOR PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-367 L,� I� Nr v c Z U M EXHIBIT 14 TYPICAL FLOOR PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-368 ■ u■ zz L,� I� Nr v c Z U M EXHIBIT 14 TYPICAL FLOOR PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-368 EXHIBIT 15 ELEVATIONS 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-369 75E-370 1.1".. 2 WnS.- � E�E�■ SIM MMI MCI MMI :r ; ■ ■ It ii0 ■■■� � �■■\# \ \ j r� .. .v & J QPQ,� EXHIBIT 17 LANDSCAPE PLAN 2525 NORTH MAIN STREET EIR NO. 2018-01, DA NO. 2018-01, GPA NO. 2018-06, AA NO. 2018-10 75E-373 75E-374 Exhibit 18 CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mailing Address: 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (213) 229-53001 Fax (213) 229-5481 Visit us @ W W W.LEGALADSTORE.COM NORMA OROZCO SANTA ANA/CITY CLERK 20 CIVIC CENTER PLAZA M-30 SANTA ANA, CA 92701 CNS 3215692 NOTICEOF Administration and Building Agency COPY OF NOTICE PUBLIC HEARING BEFORETHE office (PAO) to District Center Case Planner Selena Keleher at SANTA ANA CITY (DC). sKelohertdsa ta- COUNCILOFTHE ane.Qrg or 4 667- CITYOFSANTA 4. Adopt an 2740 or you can send ANA ordinance fomm ommotpsant eces The City of Santa Application No. 2018- ano.ofg. Notice Type: GPN GOVT PUBLIC NOTICE Ana encourages the 10 to rezone the PH NOTICE -2525 N. Main St. public to participate In the Property from Professional (P) to - details Ad Descdption deeleion-moking pprfMpf�J]]!! The Specific Development 93 ittong proposing the lOIIOWIng no Ice is oNo.pt and adopting proposed aC1i0a being provided w Specific full text ing the full to for in the THE that you rnn oak Development No. text of the item, To the right is a co of the notice you sent us ublication 9 PY Y P euestlYins. make to in order to facilitate discretionary REGISTER. Please read this notice carefully and call us with any corrections. comments arts etalr the construction of may be found on the The Proof of Publication will be filed with the CountyClerk, if required, and Q informed abght Orme that might ge the Prate family housing multi -f. 72 City website he hours prior a the hearing at: mailed to you after the last date below. Publication date(s) for this notice is Important to you. We encourage On January 14, 2019 Public htt santo- (are): to contact us the Planning ane ora co 9ranicu ior to the Public Rmring Commission voted to sem. If You have recommend that the SI them any quest om. City Council deny by prEg�r pane the above matter a vote of 4:2:1 anp de l)'647. al 714 01/25/2019 e v Dunn of (Ald¢rete, Benevides dissented 647 0 n ebnD the City of Santa and Cano ti nDVlt Yin In t1ro VI Ana will hold a abstained). that eho�orn Lais public hearing to 714),365-2627. consider the and following for the is maitte�r If You challenge the The charge(s) for this order is as follows. An invoice will be sent after the last multifamily 4Prefect wi be heard on Tuesday, FobruarY n the above matter, You date of publication. If you prepaid this order in full, you will not receive an on a 5.93 -acre site S, 2019 at Sr4S P.m. may. be limited to located at 2525 N. or immediately raising only those invoice. MainStreet. fallowing the 5:00 issues You or P.m. Closed Session, someone else raised 1. Adopt a resolution in the City Council at the public hearing certifying Final Chamber, 22 Civic described in this Environmental Center Plaza, Santa notice, or in written Impact Report No. Ana, California correspondence 2018-01 (SCH No. 92701. All persons delivered to the City 2018021031), adapt interested in this Council of the City of environmental matter are notified Santa Ana at, or findings of fact to appear at this Prior to, the Public Pursuant 10 the time. hearing. California Environmental H Norma Mitre, Daily Journal Corporation Quality Act, adopt a m You Acting Clerk of the Serving legal advertising needs throughout California. Call your local Statement of Overriding o no wish to appear at the public Council 1 n9 your Considerations, hearing, You may NS -32156920 adopt Mitigation also sena your THE REGISTER Monitoring and written comments to BUSINESS JOURNAL, RIVERSIDE (951) 784-0111 Reporting Program the Clerk of, the DAILY COMMERCE, LOS ANGELES (213)229.5300 and approve the Proposed Proiect. Council, by mail at Cityof Santa Ana, 20 LOS ANGELES DAILY JOURNAL, LOS ANGELES (213) 229-5300 2. Adopt an Civic Center Plaza - M30, Santa Ana, CA ORANGE COUNTY REPORTER, SANTA ANA (714)543-2027 ordinance approving 92701 orvia e-mail at the Development ecommenisQsanta- SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO (800 640-4829 CI nbr SAN JOSE POST -RECORD, SAN JOSE (408) 2874866 01 between the v of Santa Ana and AC 'a'Cityr Council) 1:00 P.m. on the day THE DAILY RECORDER, SACRAMENTO (916) 444-2355 2525 Main, LLC far certain real of the meeting; e - mails received after THE DAILY TRANSCRIPT, SAN DIEGO (619) 232-3486 property located at said time will be on 2525 N. Main Street. file for public THE INTER -CITY EXPRESS, OAKLAND (510) 2724747 viewing theday 3. Adopt a resolution after the meeting. approving General Plan Amendment In T rpct No. 2018-0610 amend ue ou the existing land use You ave any element of questions, Please Professional 8 contact Planning I VIII I III II II I II II I I I I I I I III III I I II * A 0 0 0 0 0 4 9 6 7 1 5 '7tE-375 MAYOR Miguel A- Pulido MAYOR PRO TEM Juan Villages COUNCILMEMBERS Cecilia Iglesias David Penaloza Roman Reyna Vicente Sarmiento Jose Solorio CITY OF SANTA ANA Office of the Clerk of the Council 20 Civic Center Plaza - P.O. Box 1988 Santa Ana, California 92702 714-647-6520 www.santa-ana.om CITY MANAGER Raul Godinez II CITY ATTORNEY Sonia R. Carvalho ACTING CLERK OF THE COUNCIL Norma Mitre -Ramirez NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA CITY COUNCIL OF THE CITY OF SANTA ANA The City of Santa Ana encourages the public to participate in the decision-making process. The following notice is being provided so that you can ask questions, make comments and stay informed about projects that might be important to you. We encourage you to contact us prior to the Public Hearing if you have any questions. NOTICE IS HEREBY GIVEN - The City Council of the City of Santa Ana will hold a public hearing to consider the following for the proposed 496 -unit multi -family project on a 5.93 - acre site located at 2525 N. Main Street. Adopt a resolution certifying Final Environmental Impact Report No. 2018-01 (SCH No. 2018021031), adopt environmental findings of fact pursuant to the California Environmental Quality Act, adopt a Statement of Overriding Considerations, adopt Mitigation Monitoring and Reporting Program and approve the proposed project. 2. Adopt an ordinance approving the Development Agreement No. 2018-01 between the City of Santa Ana and AC 2525 Main, LLC for certain real property located at 2525 N. Main Street. 3. Adopt a resolution approving General Plan Amendment No. 2018-06 to amend the existing land use element of Professional & Administration Office (PAO) to District Center (DC). 4. Adopt an ordinance approving Amendment Application No. 2018-10 to rezone the property from Professional (P) to Specific Development No. 93 and adopting Specific Development No. 93 in order to facilitate the construction of the multi -family housing project. On January 14, 2019 the Planning Commission voted to recommend that the City Council deny the above matter by a vote of 4:2:1 (Alderete, Benavides dissented and Cano abstained). SANTA ANA CITY COUNCIL Miguel A Pulido Juan YJlegas Vicente sarmiento David Penalwa Jose sdorio Roman Reyna Cecilia Iglesias Mayor Mayor Pm Tem, Word 5 Ward Ward2 Vl Ward Ward mour,do0santaanaum jn7leeas(asante-ane.om "annientordsantaano om doenalozaAsantaanaom isolodolillsardaanamn rremadasantaane m dalesiast@santaana am 75E-376 Meeting Time and Date - This matter will be heard on Tuesday, February 5, 2019 at 5:45 p.m. or immediately following the 5:00 p.m. Closed Session, in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92701. All persons interested in this matter are notified to appear at this time. How To Make Comments - If you do not wish to appear at the public hearing, you may also send your written comments to the Clerk of the Council, by mail at City of Santa Ana, 20 Civic Center Plaza — M30, Santa Ana, CA 92701 or via e-mail at ecomments(a),santa- ana.org (reference "City Council') by 1:00 p.m. on the day of the meeting; e-mails received after said time will be on file for public viewing the day after the meeting. Who To Contact For Questions - Should you have any questions, please contact Planning and Building Agency Case Planner Selena Kelaher at SKelaher a-santa-ana.org or (714) 667-2740 or you can send an email to ecomments@santa-ana.org. Where To Get More Information - Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at: http://santa-ana.org/coc/aranicus.asp. Si tiene preguntas en espanol, favor de Ilamar al 714-647-6520 Neu can lien lac bang tie -ng Viet, xin dign thoai cho Tony Lai s6 (714) 565-2627. If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council of the City of Santa Ana at, or prior to, the public hearing. Norma Mitre, Acting Clerk of the Council Publish: The OC Register - Legals Section; Date: January 25, 2019 75E-377 75E-378 REQUEST FOR COUNCIL/ HOUSING AUTHORITY ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: APPROVE A PRE -LOAN COMMITMENT OF $231,494 OF AFFORDABLE HOUSING FUNDS AND A COMMITMENT FOR A 99 - YEAR GROUND -LEASE TO HABITAT FOR HUMANITY OF ORANGE COUNTY FOR THE DEVELOPMENT OF THE LACY STREET PROJECT {STRATEGIC PLAN NO. 5, 3C} CITY MANAGER EXECUTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1b' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute a pre -loan commitment letter with Habitat for Humanity of Orange County ("Habitat for Humanity") for $231,494 in Inclusionary Housing Funds for the development of the Lacy Street affordable housing project located at 826 N Lacy Street and 830 N. Lacy Street, subject to non -substantive changes approved by the City Manager and City Attorney. HOUSING AUTHORITY Authorize the Executive Director of the Housing Authority and the Recording Secretary to execute a pre -commitment letter with Habitat for Humanity of Orange County ("Habitat for Humanity") for a 99 -year ground -lease of 826 N Lacy Street and 830 N. Lacy Street (APN: 398- 041-22 / 398-041-18) for the development of the Lacy Street affordable housing project, subject to non -substantive changes approved by the Executive Director of the Housing Authority and Authority General Counsel. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting on January 23, 2019, the Community Redevelopment and Housing Commission (CRHC) by a vote of 5:0 (Ramos and Urzua abstained): 1) Recommended that the City Council authorize the City Manager and the Clerk of the Council to execute a pre -loan commitment letter with Habitat for Humanity of Orange County ("Habitat for Humanity") for $231,494 in Inclusionary Housing Funds for the development of the Lacy Street affordable housing project located at 826 N Lacy Street 80A-1 Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 2 and 830 N. Lacy Street, subject to non -substantive changes approved by the City Manager and City Attorney. 2) Recommended that the Housing Authority authorize the Executive Director of the Housing Authority and the Recording Secretary to execute a pre -commitment letter with Habitat for Humanity of Orange County ("Habitat for Humanity") for a 99 -year ground -lease of 826 N Lacy Street and 830 N. Lacy Street (APN: 398-041-22 / 398-041-18) for the development of the Lacy Street affordable housing project, subject to non -substantive changes approved by the Executive Director of the Housing Authority and Authority General Counsel. DISCUSSION On June 19, 2018, the City Council authorized the Community Development Agency (CDA) to release a Fiscal Year (FY) 2019 Request for Proposals (RFP # 18-056) to develop affordable rental and ownership project(s) in the City of Santa Ana with available funds from the HOME Investment Partnerships Program (HOME), Community Development Block Grant Program (CDBG), Project Based Voucher Program (PBV), Inclusionary Housing Fund, and Housing Successor Agency Fund. The RFP also included land assets currently owned by the Housing Authority of the City of Santa Ana. The RFP was drafted in compliance with the City's Affordable Housing Funds Policies and Procedures adopted by City Council on March 20, 2018. On July 2, 2018, CDA issued RFP # 18-056 for Affordable Housing Development. The RFP was published on both the City and Housing Authority's websites; a public notice was published in the OC Register on July 2, 2018; an e-mail was sent out by Orange County's largest affordable housing membership associations including the Kennedy Commission, 2-1-1 Orange County, and Southern California Association of Nonprofit Housing; and an electronic letter was e-mailed to interested developers and nonprofit organizations who had previously requested to be informed of development opportunities on CDA's RFP Process Database. The first annual deadline for the City's RFP # 18-056 for Affordable Housing Development closed on Wednesday, August 15, 2018 at 5:00 p.m. The City received thirteen (13) proposals prior to the deadline. The affordable housing developers that submitted a proposal are: Affordable Housing Developer Cesar Chavez Foundation Chelsea Investment Corporation Community Development Partners — 2 Proposals Community HousingWorks Habitat for Humanity of Orange County HomeAid Orange Count Jamboree Housing — 2 Proposals National Community Renaissance & Mercy House Living Centers Orange Housing Development Corporation & C&C Development, LLC Related California LINC Housing Corporation 80A-2 Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 3 After the deadline, staff conducted a minimum threshold review of each proposal to ensure the proposal complied with all of the minimum requirements in the RFP. Following the minimum threshold review, staff formed a Review Panel that consisted of the Executive Director of the City's Public Works Agency with his designee, the Executive Director of the Planning and Building Agency with his designee, the Executive Director of the Community Development Agency, and the Housing Division Manager. The Veterans Affairs Medical Center of Long Beach, the County of Orange, Keyser Marston Associates, and MDG Associates served as advisors to the Review Panel. In compliance with the City's Affordable Housing Funds Policies and Procedures, the Review Panel used the proposal Scoring and Selection Criteria from the RFP to conduct their review and analysis of each proposal. In addition to the Scoring and Selection Criteria from the RFP, the Review Panel also reviewed the proposed project design for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. On October 30, 2018, the Review Panel met and interviewed all of the developers who submitted a proposal. LINC Housing requested to be removed from consideration prior to their scheduled interview and therefore their proposal was removed from consideration. On November 14, 2018, the Review Panel met a second time to discuss and deliberate upon the scoring and selection of the proposals. Following this deliberative selection process, the Review Panel agreed upon the final scores below based on an average of the Individual Reviewer Scores: • I . Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 4 Housing Authority Land Asset Requested / HUD-VASH Vouchers l Non -Housing Authority Land Asset Developer Name Project Name FINAL SCORE (Average of Individual Reviewer Scores) 1126& 1146 E. Washington Avenue Orange Housing Development Corpomfion and C&C Development, LLC 1126.1146 E. Washington She 92 Related California The Crossroads at Washington 91 Jamboree Housing REVO Apartments 87 Cesar Chavez Foundation Santa Ana Place 84 Community Housing Works Tmnsformar 80 Community Development Partners Washington Plaza, GRFLD, Lacy Walk 77 Chelsea hvesi nent Corporation Cielo 76 826 N. Lacy/830 N. Lacy Habitat for Humanity of Orange County Lacy StreetProject 82 Community Development Partners Washington Plaza, GRFLD, Lacy Walk 77 801, 809 & 809 1/2 E. Santa Ana Blvd. HomeAld Orange County Frances Xavier Residence 90 Community Development Partners Washington Plaza, GRFLD, LacyWalk 77 HUD-VASH Vouchers (As the PnmarySouroe of Financing) Jamboree Housing Budget hn Site 86 Community Development Partners Westview House 81 Non -Housing Authodty Land Asset National Community Renaissance and Mercy House Living Centers Santa Ana United Methodist Church Site 93 Based on the scores above and the relative scoring of proposals competing for the same land asset(s) or source of affordable housing funds (e.g. HUD-VASH PBVs), the Review Panel recommends the following award for this project: Developer: Project Name: Developer Request: Habitat for Humanity of Orange County Lacy Street Project $231,494.00 e I . Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 5 Award Recommendation: • Inclusionary Housing Fund: $231,494.00 • Lease Agreement for 826 and 830 N Lacy St. o Appraised Value as of October 25, 2018: $578,000 The commitment letter with Habitat for Humanity for $231,494 in Inclusionary Housing Funds and a 99 -year ground -lease of 826 N Lacy Street and 830 N. Lacy Street (APN: 398-041-22 / 398- 041-18) for the development of the Lacy Street affordable housing project provides the official award from the Housing Authority (Exhibit 1). In compliance the City's Affordable Housing Funds Policies and Procedures, the City's real estate advisor, Keyser Marston Associates (KMA), has confirmed the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. KMA has reviewed the developer's estimates and projections of rents, expenses, reserves and development costs in accordance with industry - standard underwriting guidelines and recommends the full amount of the award based on their underwriting and subsidy layering analysis (Exhibit 2) along with other policy recommendations. It is important to note that this award above was amended after the initial recommendation by the Review Panel. Following the initial award recommendation by the Review Panel for only a 99 - year ground lease, Habitat for Humanity met with staff and communicated that the economic feasibility of the project had changed since the submission of their proposal on August 15, 2018 under RFP # 18-056 due to changes requested by the French Park Neighborhood Association to the design of the project. Specifically, Habitat for Humanity had submitted a proposal before the deadline for the RFP on August 15, 2018 based on a design that they had not reviewed with the French Park Neighborhood Association. After the deadline, Habitat for Humanity met with the French Park Neighborhood Association, as required in the RFP, [The RFP. stated, 'This vacant site will need to comply with the design guidelines of the French Park Historic District and will require review by the French Park Design Committee."] Following their meeting, the French Park Neighborhood Association requested revisions to the design and construction of their project, which increased the cost of construction for Habitat for Humanity to develop the project. As a result, the financial gap for the construction of the project actually increased for more than $231,494 than initially requested and Habitat for Humanity had preliminarily accepted an award (the 99 -year Ground Lease) for a project that they no longer had the financial capacity to develop. In order to support this project to move forward and comply with the French Park Neighborhood Association, staff reviewed the affordable housing funds available in RFP # 18-056. [As stated in the RFP, "Available affordable housing funds and land assets being made available in this RFP are subject to change."] On January 14, 2019, the City received a disbursement of in -lieu fees from the Heritage Phase III project for over $3.8 million. With these new Inclusionary Housing Funds received by the City, staff was able to amend the original award recommended by the Review Panel for Habitat for Humanity to meet their full original request. Habitat for Humanity plans to address their remaining financial gap through resource development activities in the form of a grant for the project. Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 6 Project Description Habitat for Humanity of Orange County is a nonprofit organization specializing in the construction of affordable homes for purchase by qualifying families. Since 1988, the Orange County affiliate has completed and sold 219 new homes in its service area. Thirty of those homes have been built in the City of Santa Ana. The project location is at the SW corner of Lacy and Vance Streets and is comprised of two single-family lots within the "Historic French Park" community. The Housing Authority will be providing a 99 -year ground lease on the land. Construction will consist of two (2) single-family detached homes. In multiple meetings and discussions with the Historic French Park Committee, the local residents made clear their strong desire that Habitat for Humanity design and construct homes that reflect the architectural elements and finishes that are present in the French Park community. In addition, there is an expectation that Habitat for Humanity will create two distinct floor plans for this project whose sizes are proportionate to the approximately 7,500 sq. ft. lots on which they will be built. With these requirements in mind, Habitat proposes the following: • A single -story "Craftsman -style" home. This residence will be a three bedroom, two and a half bath of approximately 1,500 sq. ft. • A second home that will be influenced by the 'Victorian -Style" of architecture. This will be a two-story residence with four bedrooms and three bathrooms and will be approximately 1,700 sq. ft. It is important to note that the architectural designs proposed for the Project are more in line with custom home developments as opposed to Habitat for Humanity's original mission to provide "simple, decent and affordable" housing. The proposed architectural designs result in significantly higher construction costs than the projects typically constructed by Habitat for Humanity. These homes will be made available to qualifying moderate income families (up to 120% of Area Median Income) as set forth in California Health and Safety Code. Construction will comply with all City of Santa Ana building standards, as well as the Historic French Park community. In RFP # 18-056, staff informed all applicants this vacant site will need to comply with the design guidelines of the French Park Historic District and will require review by the French Park Design Committee. The Historic French Park Association Architectural Review Committee provided a letter of support to Habitat for Humanity for the development of their project (Exhibit 3). The construction of all required improvements associated with the development will be the responsibility of Habitat for Humanity. Materials will include composite roofing material, wood, or simulated wood siding, concrete -paving surfaces, and professionally designed landscape. The two homes will be constructed concurrently, with an anticipated building cycle of 10 months from the issuance of building permits. For the development of this project by Habitat for Humanity of Orange County, the Review Panel is recommending an award of $231,494 in Inclusionary Housing Funds and a 99 -year ground - lease of 826 N Lacy Street and 830 N. Lacy Street (APN: 398-041-22 / 398-041-18) following a competitive selection process through RFP # 18-056 in compliance with the City's Affordable 80A-6 Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 7 Housing Funds Policies and Procedures. After Habitat for Humanity secures all of their remaining financing for the development of the project, staff will return to City Council and the Housing Authority with a Loan Agreement and a 99 -year ground -lease agreement. 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), and 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 Upon approval of the loan agreement, funds in the amount of $231,494 within the Inclusionary Housing Fund will be made available for distribution (Loans and Grants account no. 41718820- 69152). Any payment associated with the lease agreement will be addressed at the time the agreement is presented to the Housing Authority Board for approval. Steven A. Mendoza Executive Director APPROVED AS TO FUNDS AND ACCOUNTS: Alc � Kathryn Downs, CPA F po Executive Director Community Development Agency Finance and Management Services Agency Exhibits: 1. Pre -Commitment Letter for Habitat for Humanity of Orange County 2. Underwriting and Subsidy Layering Analysis by Keyser Marston Associates 3. Letter of Support from Historic French Park Association 80A-7 MAYOR Miguel A. Pulido MAYOR PRO TEM Juan Villages COUNCILMEMBERS Cecilia Iglesias David Penaloza Roman Reyna Vicente Sarmiento Jose Solorio February 5, 2019 CITY OF SANTA ANA SANTA ANA HOUSING AUTHORITY 20 Civic Center Plaza • P.O. Box 22030 Santa Ana, California 92702 (714) 667-2200 wwW.santa-ana.ora Troy Hendrickson Vice President of Construction Habitat for Humanity of Orange County 2200 S. Ritchey Street Santa Ana, CA 92705 Re: Lacy Street Project 826 and 830 North Lacy, Santa Ana, CA 92701 Pre -Commitment Letter for Lease Agreement 1ZWTitLI111111CGTiL.Tit.7N,A EXHIBIT 1 CITY MANAGER Raul Godinez II CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar Habitat for Humanity of Orange County ("Developer') requested financial assistance in connection with the proposed development of a two (2) unit affordable housing project to be located at 826 and 830 North Lacy Street, Santa Ana, CA 92701 (APN: 398-041-22 and 398-041-18) ("Project"). The City of Santa Ana ("City') and Housing Authority of the City of Santa Ana ("Housing Authority') have reviewed the Developer's request for assistance, and at the joint City Council / Housing Authority meeting on February 5, 2019, the City Council and Housing Authority Board authorized and approved issuance of this pre -commitment letter evidencing the preliminary award of ("Agency Assistance"): A loan in the maximum amount of $231,494 in inclusionary housing in -lieu fee payments made pursuant to the City's Housing Opportunity Ordinance (Article XVIII.I of Chapter41 of the Santa Ana Municipal Code) (the "Inclusionary Housing Fund") held by the City of Santa Ana for the Project ("City Loan'); and, - A 99 -year ground lease for the property located at 826 and 830 North Lacy Street, Santa Ana, CA 92701 (APN: 398-041-22 and 398-041-18, with a combined appraised value of $578,000.00 as of October 25, 2018); to be used for development of affordable housing at 826 and 830 North Lacy Street, Santa Ana, CA 92701 ("Ground Lease"). SANTA ANA CITY COUNCIL Miguel A. Pulldo Juan Villages Vicante Sarrnienuo David Penalora Jose Solorio Roman Reyna Cecilia Iglesias Mayor Mayor Pro Tem, Ward 5 Ward 7 Word 2 Ward 3 Ward 4 Ward 5 nmulidoiMsanta-ann.om Ivilleaasnsanta-ana.cravsartnientaratsanta-one ora nal z an - n . IsolorloCAsenta-ona.orn rrevnarcdisanta-ana.orn c1nIesias0santa-zna.ora EXHIBIT 1 Paoe 12 This letter shall evidence the Agency's pre -commitment of the Agency Assistance to the Developer for the Project subject to the conditions described below. City Loan: The amount of the proposed City Loan has been determined based upon the Cityis review of the Developer's request for the receipt of the Agency Assistance and the development proforma and projected cash flows for the Project submitted by the Developer to the City ("Proforma"). The City Manager and Housing Authority Executive Director has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the City Assistance is not increased or extended. The City Loan shall include the following terms: • $231,494 maximum principal amount, or as much thereof as is disbursed for hard and soft costs in constructing the Project, provided from the City of Santa Ana Inclusionary Housing Fund. • 3% simple interest per annum. • Repayment from 50% of Residual Receipts (pro -rata with payments due in connection with other financing provided by other public agencies) (after payment of operating expenses, debt service, any deferred developer fee, and partnership fees to be described in the Agreement) with the remaining 50% to be disbursed to the Developer. • Remaining principal and accrued interest due upon the 55th anniversary of the issuance of Certificate of Occupancy and/orfinal building permits or earlier upon sale, refinancing or default. On that date, the City agrees to review the performance of the property and consider in good faith any reasonable request by Developer to modify the terms or extend the term of the City Promissory Notes. Additionally, the City will receive a pro rata share of 50% of the net proceeds received from any sale or refinancing of the Project, after payment of outstanding debt and payment in full of any deferred developerfee and establishment of any reserves and transaction costs. • Cost savings from the Project, if any, will be applied first to pay down the City Loan. Ground Lease: The Project will be located at 826 and 830 North Lacy Street, Santa Ana, CA 92701 (APN: 398-041-22 and 398-041-18) ("Property"). The Housing Authority currently owns the Property. Accordingly, the Housing Authority Board authorized the lease of the Property to the Developer for the Project. After Developer secures all of its remaining financing for the development of the Project, staff will return to the Housing Authority for consideration of a 99 -year Ground Lease Agreement. Foorlymul EXHIBIT 1 Paqe 13 General Provisions: The Agency's obligation to provide the Agency Assistance to the Project is subject to each of the following conditions: • Developer must provide proof that it has secured all of its remaining financing for the development of the Project before staff will return to the City Council / Housing Authority for consideration of the Loan Agreement and Ground Lease Agreement. • All provided funding and project requirements shall conform to the City's adopted Affordable Housing Funds Policies and Procedures, unless alternative requirements are expressly provided in the executed Loan Agreement and/or Ground Lease Agreement, or any other documents related to the development of the Project. • Approval of all required entitlements and discretionary actions, to allow the construction of a 2 -unit affordable housing project to be located at 826 and 830 North Lacy Street, Santa Ana, CA 92701. • The City's obligation to provide the Loan is and shall remain subject to all covenants, conditions, and restrictions set forth in the Loan Agreement, and in particular City's analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project. • Review and approval of the documents evidencing the City Loan by the City Council, as applicable. • Review and approval of the documents evidencing the Ground Lease by the Housing Authority as applicable. • Compliance with California Health and Safety Code and applicable regulations set forth in Section 34176. Developer, at its sole cost and expense, will be responsible for securing any and all permits and discretionary approvals that may be required for the Project by the City, Housing Authority, or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Notably, this pre -commitment letter shall not obligate the City or any department thereof to approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the construction, rehabilitation, installation or operation of the Project. This pre -commitment letter for the Project will expire on January 15, 2021. 80A-11 EXHIBIT 1 --– --- -- - —--— -- Page 14 If you have any questions or require any additional information regarding this award letter, please contact Judson Brown, Housing Division Manager, by telephone at (714) 667- 2241 or by e-mail at ibrown(a�santa-ana.org. Sincerely, Steven A. Mendoza Acting City Manager Attest: Norma Mitre Acting Clerk of Council 80A-12 EXHIBIT 2 KEYSER MARSTON ASSOCIATES.. ADVISORS IN PUBLIC/PRIVATE REAL ESTATE DEVELOPMENT ADVISORS IN: Kathleen H. Head Real Estate To: Judson Brown, Housing Division Manager Affordable Housing Kevin E. Engstrom Economic Development Julie L. Romey City of Santa Ana BERKELEY At your request, Keyser Marston Associates, Inc. (KMA) prepared a preliminary financial SAN DIEGO A. Jerry Keyser From: Tim Bretz Timothy C. Kelly parcels that are currently owned by the City of Santa Ana Housing Authority (Authority). Debbie M. Kern sold to moderate income households (Project). David Doezema Date: January 18, 2019 Kevin Feeney LOSANGELES Kathleen H. Head Subject: Lacy Street Project: Preliminary Financial Gap Analysis James A. Rabe Gregory D. Sao -Hoo Kevin E. Engstrom Julie L. Romey Tim R. Bretz At your request, Keyser Marston Associates, Inc. (KMA) prepared a preliminary financial SAN DIEGO gap analysis for the project proposed to be developed at 826 and 830 North Lacy Street Paul C. Marra (Site) by Habitat for Humanity of Orange County (Habitat). The Site consists of two parcels that are currently owned by the City of Santa Ana Housing Authority (Authority). As proposed, Habitat will construct two single family homes on the Site which will be sold to moderate income households (Project). Habitat is requesting the following financial assistance: 1. $231,000 in Inclusionary Housing Funds from the City of Santa Ana (City); and 2. To enter into a 99 -year ground lease with the Authority for the Site at no cost. The purpose of the KMA analysis is to evaluate Habitat's financial assistance request. EXECUTIVE SUMMARY Estimated Financial Gap The results of the KMA financial gap analysis are compared to Habitat's financial proposal in the following table: 500 SOUTH GRAND AVENUE, SUITE 1480 > LOS ANGELES, CAUFORNIA 90071i PHONE 213.622.8095 1901009:SA:TRB W W W.KEYSERMARSTON.COM 19090.017.011 Judson Brown, City of Santa Ana Lacy Street Project: Preliminary Financial Gap Analysis EXHIBIT 2 January 18, 2019 Page 2 KMA Habitat Difference Total Construction Costs $1,189,000 $1,196,000 ($7,000) Total Available Revenue 926,000 870,000 56,000 Financial Gap $263,000 $326,000 ($63,000) As shown in the preceding table, KMA estimates the Project's financial gap at $263,000. Comparatively, Habitat estimates the Project's financial gap at $326,000. This equates to a $63,000 differential. The differential is primarily due to a difference in the KMA and Habitat "Affordable Sales Price" estimates. The City proposes to provide up to $231,000 in Inclusionary Housing Funds to the Project. This amount is lower than both the financial gap identified by KMA and the dollar amount of Habitat's assistance request. As such, it can be concluded that the proposed City assistance package will not provide a windfall profit to Habitat. It is our understanding that subsequent to the completion of KMA's financial analysis, City staff and Habitat discussed the difference between the demonstrated financial gap and the available City assistance funds. It is our understanding that Habitat has committed to fund any portion of the Project's financial gap amount in excess of the City's $231,000 financial assistance commitment. PROJECT DESCRIPTION Background The Site is located in the French Park Historic District (French Park). Any proposed development is subject to the design guidelines imposed on French Park as well as a review by the French Park Design Committee (Design Committee). In Fall 2018, Habitat met with the Design Committee to discuss the proposed Project, and the Design Committee requested revisions to Habitat's original design. Specifically, the Design Committee and residents of French Park requested that Habitat construct homes that incorporate the historic architectural elements and finishes that are currently present in the neighborhood. In response, Habitat proposes the following: 1901009:SA:TRB 19090.017.011 Judson Brown, City of Santa Ana EXHIBIT 2 January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 3 1. A single -story "Craftsman -style" home, which will include three bedrooms and two and a one-half bathroom; and 2. A two-story "Victorian -style" home, which will include four bedrooms and three bathrooms. It is important to note that the architectural designs proposed for the Project are more in line with custom home developments as opposed to Habitat's original mission to provide "simple, decent and affordable" housing. The proposed architectural designs result in significantly higher construction costs than the projects typically constructed by Habitat. Scope of Development The proposed scope of development can be described as follows: 1. The Site area totals 0.34 acres, or approximately 16,200 square feet of land area. 2. The two -unit Project represents a density of 5 units per acre. 3. The Project's unit mix is as follows: a. One (1) three-bedroom house estimated at 1,500 square feet of gross building area (GBA); and b. One (1) four-bedroom house estimated at 1,700 square feet of GBA. 4. The Project's total GBA is estimated at 3,200 square feet. 5. Both units will be restricted to moderate income households per the definitions set forth in California Health and Safety Code (H&SC). FINANCIAL GAP ANALYSIS KMA prepared a pro forma analysis to estimate the Project's financial gap. The analysis is located at the end of this memorandum, and is organized as follows: 1901009:SA:TRB 19090.017.011 Judson Brown, City of Santa Ana Lacy Street Project: Preliminary Financial Gap Analysis Table 1: Estimated Construction Costs Table 2: Estimated Available Revenue Table 3: Financial Gap Calculation Estimated Construction Costs (Table 1) EXHIBIT 2 January 18, 2019 Page 4 KMA reviewed Habitat's January 2, 2019 pro forma and then independently prepared a pro forma analysis of the Project. The resulting construction costs are estimated as follows: Direct Costs The direct costs assume that the Project will not be subject to State of California and/or Federal Davis Bacon prevailing wage requirements. As noted previously, the design elements proposed for the Project are more in line with custom home developments. As such, it is difficult to estimate the appropriate direct costs without more detailed plans and drawings. Thus, for the purposes of this preliminary financial gap analysis, KMA utilized the direct cost estimates provided by Habitat. The direct costs can be summarized as follows: 1. The on-site improvement costs are estimated at $8 per square foot of land area, or $124,000. 2. The building costs are estimated at $144 per square foot of GBA, or $460,000. This equates to an average of $230,000 per unit. 3. A 4% allowance for general requirements is provided, which equates to $23,000. 4. Per Habitat, the Project's construction (estimated at 12 months) will require the supervision of two Habitat staff members. The supervision costs are estimated at $120,000, or $60,000 per Habitat staff member. 5. KMA included a $36,000 direct cost contingency allowance, which is equal to 5% of other direct costs. KMA estimates the total direct costs at $763,000. This equates to $238 per square foot of GBA or an average of $381,500 per unit. 1901009:SA:TRB 19090.017.011 EXHIBIT 2 Judson Brown, City of Santa Ana January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 5 Indirect Costs KMA utilized the following assumptions in estimating the indirect costs: 1. The architecture, engineering and consulting costs are estimated at $153,000, which equates to an average of $76,500 per unit or 20% of direct costs. 2. Habitat estimated the public permits and fees costs at $52,000, or approximately $26,000 per unit. City staff should verify the accuracy of this estimate. 3. The taxes, insurance, legal and accounting costs are estimated at 2% of direct costs. 4. Habitat will select the home buyer of each unit and provide home buyer education and training. Habitat estimates the cost of these services at $12,000 per unit, or $24,000. 5. Habitat set the Developer Fee at $98,000, which is equal to 13% of direct costs. An indirect cost contingency allowance equal to 5% of other indirect costs is provided. KMA estimates the total indirect costs at $359,000. Financing Costs The financing costs for the Project are estimated as follows: 1. The interest costs to be incurred during the construction period are estimated at $20,000. These costs are based on the following assumptions: a. Habitat stated that they will obtain a construction loan from a 3rd party lender for the Project. KMA estimates the construction loan amount at $998,000, which is calculated based on the total construction costs less the In -Kind Contributions, Developer Fee, closing costs, and warranty costs. 1901009:SA:TRB 19090.017.011 80A-17 Judson Brown, City of Santa Ana EXHIBIT 2 January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 6 b. Per Habitat, the construction period interest costs are based on an 8% interest rate, a 12 -month construction period, and a 30% average outstanding balance. 2. Per Habitat, the financing fees for the construction loan are estimated at 1.0 point, or $10,000. 3. The closing costs are estimated at 2% of sales revenue, or $17,000. 4. The warranty costs are estimated at $10,000 per unit, or $20,000. KMA estimates the total financing costs at $67,000. Total Construction Costs As shown in Table 1, KMA estimates the total construction costs at $1.19 million, which equates to approximately $594,500 per unit. In comparison, Habitat estimates the total construction costs at $1.20 million. This equates to a less than 1% differential. Project Revenues (Table 2) The Project Revenues are estimated as follows: Affordable Sales Price Calculations Habitat is proposing to sell both units to moderate income households. KMA estimates the Affordable Sales Prices based on the H&SC Section 50052.5 calculation methodology and the following assumptions (Table 5): 1. The household income used in the calculations is based on the 2018 Orange County median incomes distributed by the California Department of Housing and Community Development (HCD). 2. The Project will not include a homeowner's association, and each homeowner will be required to maintain and repair their own properties. However, given the increased maintenance requirements associated with the architectural elements proposed for the houses, Habitat proposes to require the homeowners to establish a monthly maintenance reserve account. This "forced savings" structure would ensure that funds are available to provide maintenance for the 1901009:SA:TRB 19090.017.011 FOODINFOO Judson Brown, City of Santa Ana Lacy Street Project: Preliminary Financial Gap Analysis EXHIBIT 2 January 18, 2019 Page 7 building exterior. Habitat estimates the maintenance reserve deposits at $275 per unit per month. 3. The monthly utilities costs are set at $178 per month for the three-bedroom home and $209 per month for the four-bedroom home based on the 2019 Utility Allowance Schedule published by the Authority. 4. The property tax cost estimate is based on 1.12% of the Affordable Sales Price. 5. The mortgage interest rate is set at 5.0%. The mortgage is assumed to be fully amortizing over 30 -years and provided by a conventional lender. 6. The home buyer down payment is set at 5% of the Affordable Sales Price. Affordable Sales Revenue Based on the assumptions outlined above, KMA estimates the moderate income Affordable Sales Prices as follows: Three -Bedroom Unit $417,900 Four -Bedroom Unit $452,100 The resulting total affordable sales revenue is estimated at $870,000. In comparison, Habitat estimates the Affordable Sales Prices at $407,000 per unit, which totals $814,000 in affordable sales revenue. Habitat did not provide their Affordable Sales Price calculations. Additional Revenue Habitat proposes to utilize In -Kind Contributions to off -set a portion of the construction costs. Habitat estimates the In -Kind Contributions available to the Project at $28,000 per unit, or $56,000. • A • L�' 1901009:9A:TRB 19090.017.011 EXHIBIT 2 Judson Brown, City of Santa Ana January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 8 Total Available Revenue The Project's total available revenue is equal to the sum of the Affordable Sales Price revenue and the Project's additional revenue. KMA estimates the total available revenue as follows: Affordable Sales Price Revenue $870,000 Additional Revenue 56,000 Total Available Revenue $926,000 Financial Gap Calculation The financial gap is estimated by deducting the Project's available revenue from the Project's total construction costs. Based on the preceding analysis, KMA estimates the Project's financial gap as follows: Total Construction Costs $1,189,000 (Less) Total Available Funding Sources (926,000) Financial Gap $263,000 Per Unit $131,500 As shown in the preceding table, KMA estimates the Project's financial gap at $263,000. Comparatively, Habitat estimates the Project's financial gap at $326,000. This equates to a $63,000 differential, which is primarily due the difference in Affordable Sales Prices. The City proposes to provide up to $231,000 in Inclusionary Housing Funds to the Project. Since this amount is less than the financial gap identified by KMA and less than Habitat's assistance request. It is therefore KMA's conclusion that the proposed assistance package will not provide a windfall profit to Habitat. SILENT SECOND MORTGAGE REVENUE CALCULATION The next step in the process is to determine how much of the $231,000 in City assistance can be treated a junior lien obligation. As a basic premise it must be assumed 1901009:SA:TRB 19090.017.011 FO EXHIBIT 2 Judson Brown, City of Santa Ana January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 9 that the total of the liens accepted by a home buyer cannot exceed the unrestricted market value of the home. Thus, the amount of junior liens that can be supported is equal to the difference between the defined Affordable Sales Price and the estimated market value of the home. KMA assumes that the junior liens will be deferred payment loans which are commonly known as silent second mortgages. These loans typically become due and payable when the home is resold. It is a fundamental assumption of this analysis that the City assistance to the Project will fall second in the lien hierarchy behind the conventional first trust deed mortgage. The calculations used to estimate the supportable silent mortgages are presented in the following sections of this analysis. Market Rate Sales Prices KMA conducted a survey of recent home sales comparables for the French Park market area. Based on this survey and the information provided by Habitat, KMA estimates the market rate sales prices as follows: Three -Bedroom Unit $525,000 Four -Bedroom Unit $595,000 Available Silent Second Mortgage Revenue Based on the estimated market rate sales prices, the available silent second mortgage revenue is estimated at as follows: Three- Four - Bedroom Unit Bedroom Unit Market Rate Sales Price $525,000 $595,000 (Less) Affordable Sales Price (471,900) (452,100) Silent Second Mortgage Amounts $107,100 $142,900 Total Silent Second Mortgage Revenue $250,000 1901009:SA:TRB 19090.017.011 80A-21 EXHIBIT 2 Judson Brown, City of Santa Ana January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 10 As can be seen in the previous table, KMA estimates the total supportable silent second mortgage revenue for the two homes at $250,000. Given that this amount is greater than the City's proposed financial assistance amount of $231,000, there is sufficient silent second mortgage revenue to fully secure the City's financial assistance. It should be noted that both KMA and Habitat estimate the Project's total financial gap at more than $231,000. Given that Habitat has committed to fill any financial gap incurred above the City's $231,000 contribution, it is important to understand how that additional assistance can be structured. Based on current projections, the vast majority of any contribution made by Habitat will likely need to be structured as a grant to the Project. It is important to note that this calculation will need to be revisited once sales of the units commence. At that point, the appraised market values of the homes and the defined Affordable Sales Prices will be utilized to determine the silent second mortgage amounts. If there is insufficient silent second mortgage revenue to secure all of the City's financial assistance, a portion of the City's assistance may need to be structured as a grant. POLICY CONSIDERATIONS As a result of Habitat's discussions with French Park residents and the Design Committee, the architectural and design elements proposed to be included in the Project are similar to the standards utilized for custom home developments. Per Habitat, these design requirements will increase the residential building costs by approximately 25%. Furthermore, Habitat states that the additional architectural design and working drawings necessary for the custom home -type product will cost approximately $80,000 more than the architectural design work required for more typical Habitat projects. Based in part on these cost premiums, Habitat estimates the total construction costs at approximately $598,000 per unit or $374 per square foot of GBA (based on the assumption that no land costs are incurred). For comparison purposes, the construction costs for the 12 -unit Francis Xavier Project, which was recently approved by the City/Authority, were estimated at $352,800 per unit or $286 per square foot GBA. This represents an approximately 30% differential based on the per square foot of GBA estimates. It is also important to note that the estimated per unit construction costs, 19010095A:TRB 19090.017.011 80A-22 EXHIBIT 2 Judson Brown, City of Santa Ana January 18, 2019 Lacy Street Project: Preliminary Financial Gap Analysis Page 11 excluding any land costs, are greater than the estimated market rate sales prices of the units. The City and Authority should consider the policy implications for utilizing affordable housing assets for the construction of a custom home -type product which results in substantial cost premiums. As a part of this discussion, the City and Authority may want to discuss selling the Site on the open market and utilizing the sales proceeds to assist affordable projects with more typical construction costs. CONCLUSIONS / ISSUES FOR CONSIDERATION The following summarizes the conclusions of the KMA analysis: 1. Based on the currently available information, it is KMA's conclusion that the Project exhibits a $263,000 financial gap. The City proposes to utilize up to $231,000 in Inclusionary Housing Funds to fill the financial gap. As such, KMA concludes that the City's proposed financial assistance amount is supported by the Project's economics. Given the detailed nature of the architectural elements proposed to be included in the Project, KMA recommends that the City/Authority require Habitat to obtain at least two general contractor bids prior to the start of construction. This requirement will ensure that all of the agreed-upon architectural elements are adequately reflected in Habitat's budget. The KMA analysis will need to be updated if the contractors' estimates differ from the costs assumed in this preliminary analysis. KMA recommends that the City/Authority consider the following policy objectives regarding the Project's use of affordable housing assets: a. Is this a desirable site for affordable housing? b. Is it a policy objective to utilize affordable housing funds to construct affordable housing units with custom home specifications, which result in units that are more expensive than more typical affordable housing units? 1901009:SA:TRB 19090.017.011 Judson Brown, City of Santa Ana Lacy Street Project: Preliminary Financial Gap Analysis 4. EXHIBIT 2 January 18, 2019 Page 12 C. Should the Authority consider selling the Site on an unrestricted basis and then utilize the sales proceeds for other more cost efficient affordable housing projects? The Affordable Sales Prices cannot be finalized until the Project commences sales activities. It is likely that the actual Affordable Sales Prices will vary from the amounts estimated in this analysis. The cash financial assistance provided by the City should be secured by silent second mortgage loans. a. The City s financial assistance should fall second in the lien hierarchy behind the conventional first trust deed mortgage. b. A re-evaluation will be performed once marketing of the units commences. If at that time the gap between the unrestricted market prices and the Affordable Sales Prices is less than projected in this analysis, a portion of the City's assistance may have to be provided as a grant instead of a loan. 1901009:SA:TRB 19090.017.011 TABLE 1 ESTIMATED CONSTRUCTION COSTS 2 FOR -SALE MODERATE INCOME UNITS LACY STREET PROJECT SANTA ANA, CALIFORNIA I. Direct Costs On -Site Improvements Building Costs General Conditions Habitat Supervision Contingency Allowance Total Direct Costs II. Indirect Costs Architecture, Engineering & Consulting Public Permits & Fees Taxes, Insurance, Legal & Accounting Marketing/Buyer Education Developer Fee Contingency Allowance Total Indirect Costs 16,248 Sf Land 3,200 Sf GBA 4% Construction Costs 21% Construction Costs 5% Other Direct Costs EXHIBIT 2 $8 /Sf Land $124,000 $144 /Sf GBA 460,000 23,000 120,000 36,000 2 Units $381,500 /Unit 20% Direct Costs 3 2 Units $26,000 /Unit 2% Direct Costs 4 2 Units $12,000 /Unit 4 13% Direct Costs 5% Other Indirect Costs $153,000 52,000 15,000 24,000 98,000 17,000 $763,000 $359,000 III. Financing Costs Interest During Construction 3 $998,000 Loan 8.0% Interest $20,000 Loan Origination Fee $998,000 Loan 1.0 Point 10,000 Closing Costs 2.00% Sales Revenues 17,000 Warranties 2 Units $10,000 /Unit 20,000 Total Financing Costs $67,000 IV. ITotal Construction Costs 2 Units $594,500 /Unit $1,189,000 3 Based on Habitat estimates. Assumes that prevailing wage requirements will not be imposed on the Project. ' Habitat will provide two staff members to supervise construction. 3 Based on Habitat estimates. City staff should verify the accuracy of this estimate. 4 Based on estimates provided by Habitat. 3 The total loan amount is equal to the total construction costs less the Developer Fee, closing costs, warranties, and In -Kind donations. Per Habitat, the construction loan will have an average outstanding balance of 30%. Prepared by: Keyser Marston Associates, Inc. File name: Habitat Lacy Street_31819; Pf 80A -25 O A —25 TABLE 2 ESTIMATED AVAILABLE REVENUE 2 FOR -SALE MODERATE INCOME UNITS LACY STREET PROJECT SANTA ANA. CALIFORNIA I. Protected Sales Revenue Moderate Income 3-Bdrm Unit Moderate Income 4-Bdrm Unit Total Projected Sales Revenue II. In -Kind Contributions 1 Unit $417,900 /Unit 1 Unit $452,100 /Unit ' 2 Units $25,000 /Unit EXHIBIT 2 $417,900 452,100 $870,000 $56,000 III. I Estimated Available Revenue 2 Units $463,000 /Unit $926,000 See TABLE 5 for the affordable sales price calculations. z Per Habitat. Prepared by: Keyser Marston Associates, Inc. File name: Habitat LacyStreet_11S 19; Pf 80A-26 UA—nC EXHIBIT 2 TABLE 3 ESTIMATED FINANCIAL GAP 2 FOR -SALE MODERATE INCOME UNITS LACY STREET PROJECT SANTA ANA. CALIFORNIA I. Total Construction Costs See TABLE 1 $1,189,000 II. (Less) Estimated Available Revenue See TABLE 2 $926,000 III. JEWmated Financial Gap 2 Units ($131,500) /Unit ($263,000) Prepared by: Keyser Marston Associates, Inc. Filename: Habitat Lacy Street_11819; Pf 80A-27 -27 TABLE 4 SILENT SECOND MORTGAGE REVENUE CALCULATION 2 FOR -SALE MODERATE INCOME UNITS LACY STREET PROJECT SANTA ANA, CALIFORNIA I. Silent Second Mortgage Amounts Three -Bedroom Unit Silent Second Mortgage Estimated Market Rate Sales Price (Less) Moderate Income Affordable Sales Price Three -Bedroom Unit Second Mortgage Amount Four -Bedroom Unit Silent Second Mortgage Estimated Market Rate Sales Price (Less) Moderate Income Affordable Sales Price Four -Bedroom Unit Silent Second Mortgage Amount Total Silent Second Mortgage Amounts II. Estimated Surplus/ (Shortfall) in Silent Second Mortgage Revenue Total Silent Second Mortgage Amounts (Less) Estimated Financial Gap $525,000 (417,900) $107,100 $595,000 (452,100) $142,900 EXHIBIT 2 $250,000 $250,000 (263,000) III. I Estimated Surplus/ (Shortfall) in Silent Second Mortgage Revenue ($13,000) Prepared by: Keyser Marston Associates, Inc. File name: Habitat Lacy Street_31819; Pf 80A-28 OA—nQ TABLE 5 AFFORDABLE SALES PRICE CALCULATIONS MODERATE INCOME SALES PRICES LACY STREET PROJECT SANTA ANA, CALIFORNIA Income Available for Housine Expenses Benchmark Household Size Median Household Income Income as % of Median % Income Allotted to Housing Costs Total Income Available for Housing Expenses II. Ongoing Expenses Maintenance Reserve Deposits Annual Utilities Allowance Property Taxes @ 1.12% of Affordable Sales Price Total Ongoing Expenses III. Income Available for Mortgage Debt Service IV. Affordable Sales Prices Supportable Mortgage @ 5.00% Interest Rate Home Buyer Down Payment @ 5.00% of Affordable Price EXHIBIT 2 Moderate Income Sales Prices ' Three -Bedroom Four -Bedroom 4 5 $92,700 $100,100 110.00% 110.00% 35.00% 35.00% $35,690 $38,539 $3,300 $3,300 z 2,136 2,508 4,680 5,064 $10,116 $10,872 $25,573 $27,667 $397,000 $429,500 20,900 22,600 V. lAffordable Sales Prices $417,900 $452,100 Based on the California Health and Safety Code Section 50052.5 definition. z Based on the utility allowances published by the Santa Ana Housing Authority on January 1, 2019. Prepared by: Keyser Marston Associates, Inc. Filename: Habitat Lacy Street_11819; CC Afford 8 0A-29 FOODIMT1 EXHIBIT 3 To Whom it May Concern; The French Park Architectural Review Committee met three times with Habitat for Humanity to discuss its Interest to develop two city -owned lots located on the southwest comer of Lacy and Vance, in the Historic French Park neighborhood. At the first meeting, Habitat for Humanity representative Mr. Troy Hendrickson, presented a proposal to construct two single-family homes using plans from other similar developments. To this French Park offered several suggestions, including to increase building square footage, to separate the houses with a side yard fence and employ architectural styles, and those important details, which are characteristic of houses in the neighborhood. At French Park's request a subsequent field meeting was held to walk French Park and portions of the adjoining historic Lacy neighborhood The purpose for this activity was for Mr. Hendrickson to see the range of architectural styles and treatments Habitat for Humanity might consider. Based on the two meetings, and a subsequent third meeting to discuss two preliminary concept drawings, French Park would look forward to working with Habitat for Humanity and to assist it with the project design, if it is selected to purchase and develop the land. Please feel free to email or call me If there are questions regarding this correspondence. Jeff Dickman, Chair Historic French Park Association, Architectural Review Committee 714-240-0883 Cc: Historic French Park Architectural Review Committee 80A-31 80A-32