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HomeMy WebLinkAbout FULL PACKET_2019-09-03FINAL VERSION LS 9.3.19 ORDINANCE NO. NS-2972 AN ORDINANCE OF,THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING AND ADDING CERTAIN SECTIONS TO ARTICLES XIII, XII, AND VII OF CHAPTER 21 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO OWNERSHIP TRANSFERS, CLOSE OUT AUDIT PROCEDURES (SECTIONS 21-131.1 AND 21-141); VERTICAL INTEGRATION (SECTIONS 21-131.2 AND 21- 142); REDUCTION IN THE GROSS RECEIPTS TAX RATE FOR CANNABIS TESTING FACILITIES, DEDUCTIBILITY OF INTERPARTY SALES AND TRANSFERS OF GOODS, CLARIFICATION OF SQUARE FOOTAGE TAX MEASUREMENT REQUIREMENTS (SECTION 21-133); AND REDUCTION OF SECURITY DEPOSIT AMOUNTS AND ESTABLISHMENT OF RELATED PROCEDURAL REQUIREMENTS (SECTIONS 21-80, 21-80.1, 21-86 AND 21-136) THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act further amended in 2016 as the Medical Cannabis Regulation and Safety Act which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. C. In November 2016, the voters of the State of California approved Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act. 1 11 A-1 D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act. E. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. F. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, allowing and regulating commercial cannabis testing laboratories. G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and regulating commercial cannabis cultivation, distribution, and manufacturing activities. H. On November 6, 2018, the voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962), establishing a tax on commercial cannabis business activities except medicinal cannabis retail sales, which continue to be subject to taxes under Measure BB. I. The State of California continues to update its regulations on commercial cannabis business licensing, resulting in the need for local jurisdictions to update and amend local commercial cannabis ordinances from time to time. J. The City Council of the City of Santa Ana intends that nothing in this Article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not cultivated, manufactured or distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. L. The City Council held a duly noticed public hearing on August 20, 2019 in connection with consideration and adoption of this ordinance. Section 2. This ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including but not limited to: Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and 11 A-2 Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act (AB 266, AB 243, and SB 643), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94). Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 4. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 5. Section 21-131.1, Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: Sec. 21-131.1. Sale, assignment, transfer, or termination of business; marijuana collective/cooperative (medicinal cannabis retail business) owner/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability. (a) Owner/Operator's duty to notify. Termination of business. A medicinal marijuana collective/cooperative owner/operator (also referred to herein as medicinal cannabis retail business) who is terminating their business shall notify the collector in writing of such termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business. ii. Sale, assignment, ortransferof business. A medicinal cannabis retail business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the 11 A-3 collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale, assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities. (b) Remitting and reporting requirements. Each medicinal cannabis retail business owner/operator upon the sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the month following the sale, assignment, transfer, or termination of business, file a final return to the collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of business license tax collected for the reporting period, remittances made, if any, and the balance of the business license tax due, if any, shall be remitted to the collector. (c) Closeout audit. After filing the final return and remitting the balance due, the medicinal cannabis retail business owner/operator shall make its records of account available for a closeout audit by the collector, his or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner's/operator's remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a medicinal cannabis retail business owner/operator decides to sell, assign, or otherwise transfer their business, their successor shall notify the collector of the date of the sale, assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It shall be the duty of the successor to obtain written verification from the collector's office that the transferor does not have or is not liable for any outstanding business license taxes 11 A-4 liabilities. After the successor seeks written verification from the collector's office, if the collector notifies the successor that the transferor has or is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount equal to such outstanding business license tax liabilities until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a medicinal cannabis retail business operator/owner who is terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after conducting an audit therefore, as he or she may deem necessary, shall issue the certificate if the owner's/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any business license tax liabilities remain outstanding, or if additional business license tax liabilities have accrued subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or successor of the applicable amount which must be fully paid as a condition of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor. Section 6. Section 21-131.2 of Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: 11 A-5 Sec. 21-131.2 Vertical and horizontal integration of marijuana collective/cooperative licensees (medicinal cannabis retail businesses) —Defined. The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as Jong as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. Section 7. Section 21-133 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-133. Commercial cannabis businesses —Annual business license tax assessment. Every person engaged in a "commercial cannabis business" or "commercial cannabis activity" shall pay an annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana cooperatives/collectives (also referred to as medicinal cannabis retail businesses which are vertically and/or horizontally integrated with commercial 'cannabis businesses, to medical marijuana cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in section 18-611(n) of this Code. (a) For each branch establishment or separate property location of a commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for each monthly reporting period: (1) Up to ten percent (10%) of each dollar of gross receipts received or generated for each monthly reporting period. (2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one - twelfth (1/12th) of the annual tax rate amount. (b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter. 11 11 A-6 (c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rates established by subsection (a). (d) As of the operative date of this Article, the business license gross receipts tax rates and square footage tax rates application to specific commercial cannabis business activities shall be established as follows: Commercial Cannabis Business Gross Receipts Gross Square Activity Tax Rate Footage Tax Rate Adult -use Cannabis Retail 8% $ 25.00 Business (including Delivery) Cultivation 6% $ 10.00 Distribution 6% $ 4.00 Manufacturing 6% $ 10.00 Testing Facility or Testing Laboratory (effective December 5% $ 1.50 21, 2018 through June 30, 2019) Testing Facility or Testing Laboratory (effective beginning 1 % $ 1.50 July 1, 2019) Commercial cannabis businesses not having a fixed place of business within the city but conducting regular, non -incidental commercial cannabis business activities within the city shall be subject to the gross receipts tax rate(s) as set out in the table above based on the category/categories of commercial cannabis activity conducted. However, such out-of-town commercial cannabis businesses shall not be subject to any gross square footage tax rate(s). (e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial cannabis business located within the city shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location. Commercial cannabis businesses having no fixed place of business within the city shall be exempted from this requirement. 11 A-7 (f) In the event the City should in the future permit additional categories of commercial cannabis business activity, as may from time to time be licensed by the State of California, such categories of commercial cannabis activates shall be subject to the same maximum tax rates as imposed herein. The City may by ordinance of the City Council initially set the required gross receipts/gross square footage tax rates based on category of cannabis business activity at lesser rates as may be deemed appropriate by the City Council. (g) For purposes of this Article, a commercial cannabis business is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49 of this Chapter. (h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate component of the combined gross receipts/square footage tax imposed under this Article on the basis of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance with section 21-127(a)(6) of this Chapter. (i) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult -use cannabis retail business customer or commercial cannabis business customer in any fashion except as part of the basic product sales and/or service price. (j) Definitions. For purposes of this Article, the following terms have the following meanings: (1) "Adult -Use cannabis retail business" as defined in section 40-2(4) of this Code. (2) "Commercial Cannabis Activity' as defined in section 40-2(9) of this Code. (3) "Commercial cannabis business" as defined in section 40-2(10) of this Code excluding medical marijuana collectives/cooperatives also referred to as medicinal cannabis retail sales. (4) "Cultivation" as defined in section 40-2(11) of this Code. (5) "Delivery" as defined in section 40-2(13) of this Code. (6) "Distribution' as defined in section 40-2(16) of this Code. (7) "Gross receipts" — section 21-3 of this Chapter notwithstanding, "gross receipts" for the purposes of this Article shall mean: (A) Transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for cannabis, including, but not limited to, membership 13 11 A-8 dues, reimbursements provided by members, regardless of form, or the total amount of cash or in -kind contributions, including all operating costs related to the growth, cultivation, manufacturing, distribution, testing, or provision of cannabis or any transaction related thereto. (B) Anything else of value obtained by an a cannabis business; (C) The total amount of the sale price of all sales and services; (D) The total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, or merchandise (whether at wholesale or retail), for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature; (E) Any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included; (F) The amount of any federal manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof; (G) The amount of any California state cannabis excise tax or state cannabis cultivation tax included in the price of the product; (H) "Gross receipts" shall not include the following: The amount of any federal tax imposed on or with respect to retail or wholesale sales or the sale of services whether imposed upon the cannabis business or the consumer whenever the amount of federal tax is authorized by law to be stated and passed through to customers as a separate charge. ii. Any California state, county, or city sales or use tax, including any add -on, district, or transaction and use tax, required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; or 0 11 A-9 iii. The amount of the sale price of business personal property (all property owned or leased by a cannabis business operator used in the operation cannabis business activities, including but not limited to: furniture, fixtures, and business equipment); real property, including land, buildings and other improvements. iv. The amount of equity contributions, investments, and/or loan proceeds to cannabis business' operation, and/or proceeds from the sale or transfer of cannabis business' retail or commercial cannabis business. v. The amount of interparty sales and/or transfers of goods within a single vertically and/or horizontally integrated cannabis business, where the sales or transfers goods are between two or more commercial cannabis business licensees (excluding testing facilities or testing laboratories), or one or more said commercial cannabis business licensee(s) and one or more medicinal cannabis retail business licensee(s), as set forth in accordance with section 21-131.2 and/or section 21-142. (1) "Gross receipts" shall be calculated without any deduction on account of any of the following: I. The cost of tangible or intangible property sold or bartered; ii. The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; iii. The cost of transportation of cannabis, or other property or product; iv. The amount of any federal or state income orfranchise taxes; and v. Any other business costs or expenses, unless otherwise specifically exempted. (8) "Gross Square foot" or "gross square footage" for the purposes of this Article shall mean: (A) In the case of commercial cannabis businesses licensed by the state to engage in an adult -use cannabis retail business, the gross number of square feet comprising the adult -use cannabis retail property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated, whether such adult -use cannabis retail business is part of an on -site vertically or horizontally integrated cannabis business or not. M911 11A-10 (B) In the case of commercial cannabis businesses licensed by the state to engage in cultivation, the aggregate number of square feet comprising all areas of the premises under "canopy', whether such sum is greater or lesser than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy', and whether such commercial cannabis cultivation business is part of an on -site vertically integrated cannabis business or not. "Canopy' shall mean the designated area(s) of a premise that will contain mature plants at any point in time. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden plots; and if mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. Canopy shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be. deemed necessary in the discretion of the collector. Whenever an independent canopy measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's canopy is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then a canopy measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (C) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and that are not vertically or horizontally integrated with another cannabis business occupying the same premises, the gross number of square feet as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and 11 11A-11 Building Agency, whichever is the greater of any square footage indicated. (D) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and occupying the same premises with another cannabis business with which they are vertically or horizontally integrated, the gross number of square feet allocated by the commercial cannabis business owner/operator respectively for either distribution use or for manufacturing use, whether the combined sum of all vertically or horizontally integrated uses is less than, equal to, or greater than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy". The number of square feet allocated ("Allocated Square Footage") shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector. Whenever an independent allocated square footage measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's allocated square footage is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then an Allocated Square Footage measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (E) In the case of commercial cannabis businesses licensed by the state to engage in testing facilities or testing laboratory businesses, the gross number of square feet comprising such commercial cannabis business' property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater. (9) "Manufacturing" as defined in section 40-2(22) of this Code. (10) "Retail businesses' as defined in section 40-2(40) of this Code. (11) "Testing Facility' or "Testing Laboratory" as defined in section 40-2(44) of this Code. 12 11A-12 (12) 'Wholesale" as defined in section 40-(46) of this Code (k) Modification, repeal or amendment. The City Council may repeal the ordinance codified in this Article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The City Council may likewise by ordinance adopt and add additional provisions to any other Article of this Chapter and relate them to this Article, or amend any existing provisions of any Article of this Chapter as they may already relate to this Article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the City Council repeals said ordinance or any provision of this Article, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein. (1) Administration —Rules, regulations and guidelines. In order to aid in the city's collection of taxes due under this Article and to ensure that all commercial cannabis businesses are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this Article including, but not limited to rules, regulations, and guidelines harmonizing other provisions of this Chapter with the provisions of this Article in any manner not inconsistent with the intent of this Article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Article. (m) Occasional transactions —Exemptions. (1) The provisions of this Article shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of commercial cannabis business at the request of a specific client or customer, incidental to a commercial cannabis business principally established elsewhere, provided that such person does not come into the city for the purpose of transacting such business on more than three (3) days during any calendar year. (2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting commercial cannabis business activities, the business license tax(es) payable by such person may be apportioned by the collector in accordance with this Chapter. (n) Reporting and remittance. (1) Beginning as set forth in subsection (r) below, and monthly thereafter, each commercial cannabis business required to pay a tax or taxes based 13 11A-13 on gross receipts under this Article (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts), shall report to the city any gross receipts received during the preceding monthly reporting period. In addition, each cannabis business (including qualified nonprofit organizations) required to pay a tax or taxes based on square footage shall report to the city the gross square footage of the cannabis business' property location. Every cannabis business shall then compute the business license taxes at both the gross receipts rate and the gross square footage rate - prorated monthly to one -twelfth (1112th) of the annual tax rate amount - and shall then remit to the city the amount of the higher of the two tax calculations due and owing during said period in accordance with section 21-133, subsection (d). In the case of a qualified nonprofit organization only the gross square footage computation shall be made and the amount of such calculation shall represent the amount due and owing during said period. All reporting and remitting made shall be done in accordance with instructions from the collector and shall be made using forms provided or approved by the collector. (2) For purposes of this section, month shall mean calendar month and shall include any fraction of a month. Taxes shall begin to accrue on the date that a person or entity first receives a business license or other city permit to operate as a commercial cannabis business or upon the operative date of this Article should a person or entity already possess a commercial cannabis business license or other city permit to operate as a commercial cannabis business. (3) The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance with this section, shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31 st day of March of the following year. In the case of a new commercial cannabis business the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one -quarter ('/4) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued. (o) Delinquent date —Penalty. Any individual or entity who fails to pay the taxes required by this Article when due shall be subject to penalties and interest as set forth in accordance with this Chapter. The collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this Article and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Article. 14 11A-14 (p) Business license tax certificate —Required. There are imposed upon all persons engaged in transacting and carrying on any commercial cannabis business activity in the city taxes in the amounts prescribed in this Article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this Chapter and having paid the taxes set forth in this Article, and without complying with any and all applicable provisions contained in this Chapter. The carrying on of any commercial cannabis business activity without complying with all the provisions of this Article shall constitute a separate violation of this Chapter for each and every day that such commercial cannabis activity is so carried on. (q) Classification of business license assessment type —Term and renewal. The business license issued to commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77. (r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018 general election, the taxes imposed by this Article shall become operative and shall be applied by the collector upon all commercial cannabis businesses. (s) Operative date of decreased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5%) percent for testing facilities or testing laboratories pursuant to subsection (d) above shall be decreased to a rate of one -percent (1 %) by resolution of the City Council [Santa Ana City Council Resolution No, 2019-xx] as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become retroactively effective July 1, 2019. Section 8. Section 21-136 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-136. Security for collection of commercial cannabis business' business license tax; requirement; extension of time; application; failure to post or restore — effect; jeopardy determination; refund or release; deposit adjustment —effect. (a) Requirement for Security Deposit. To ensure compliance with business license tax payment requirements established pursuant to this Article, the collector shall require, beginning on the operative date of this Article, that each commercial cannabis business owner/operator, including but not limited to each purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) of a commercial cannabis business subject to the business 15 11A-15 licensing requirements of this Article, deposit one hundred and twenty (120) days following the last day of the month in which business was first commenced such security (per individual business license) in a form acceptable to the collector in an amount not larger than the commercial cannabis business owner's/operator's estimated average monthly business license tax liability as determined by the collector or the sum of ten thousand dollars ($10,000.00), whichever is least. Provided, however, in the event that two or more commercial cannabis business licensees sharing at least 80% underlying common ownership, regardless of form of business structure, are engaged in an integrated cannabis business (whether vertically or horizontally integrated) as defined in section 21-142, then a single consolidated deposit shall be made equal to the deposit amount owing for the integrated commercial cannabis activity having the highest individual business license tax liability. Each new city commercial cannabis business licensee shall upon obtaining their City business license(s) deposit a similar security as applicable per business license within thirty (30) days after commencing business. (b) Extension of Time. If, upon request and in the judgment of the collector, a determination of any commercial cannabis business' estimated average monthly tax liability for purposes of setting the amount of their required security deposit requires an extension of time beyond one hundred and twenty (120) days following the last day of the month in which business was first commenced, then the collector may issue a written notification to such commercial cannabis business granting such extension. (c) Application of Security Deposit. To recover past -due business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) remittable by the depositor, the collector may apply the security deposited with the collector. At least fifteen (15) days prior to the application of a security deposit, the collector shall serve upon the depositing commercial cannabis business owner/operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing commercial cannabis business owner/operator at their place of business or other mailing address of record. Any portion of the security remaining after satisfaction of outstanding business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non -cash deposits may be retained by the collector for security or in the case of a closeout audit may be paid over by the collector to the depositing owner/operator. Except in the case of a closeout audit pursuant to section 21-141, in the event the collector applies the security deposit, or any portion of said deposit, as an offset against remittable business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non -cash deposits, the commercial cannabis business owner/operator shall be required within thirty (30) days of the 16 11A-16 collectors written demand therefor, to re -deposit the full amount of the required security. In such event the amount of the required security shall be adjusted by the collector based on the average of the commercial cannabis business' actual monthly gross receipts tax returns and/or remittances as measured over the last three (3) valid monthly returns and/or remittances received by the collector or the sum of ten thousand dollars ($10,000), whichever is least, less any amount remaining on deposit with the collector. Service of demand shall be in the same manner as stated hereinabove for service of notice. (d) Failure to Post or Restore Security Deposit —effect. Failure by a commercial cannabis business licensee to initially post or restore a security deposit when required by the collector pursuant to this section shall be cause for suspension and/or revocation of such commercial cannabis business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Similarly, in the case of a vertically and/or horizontally integrated cannabis business, the business license(s) of the integrated commercial cannabis business(es) shall be likewise subject to suspension and/or revocation. (e) Jeopardy Determination. If the collector believes that the collection of any business license tax imposed by this Article will be jeopardized, in whole or in part, by delay in the commercial cannabis business owners/operator's timely remittance of the business license tax, the collector shall serve notice upon the person determined to be liable therefor of their determination of jeopardy and of the business license tax required to be paid to the City, and demand immediate payment thereof, together with any interest and penalty determined to be due. The collector may consider all facts and circumstances relevant to determining whether the collection of any business license tax will be jeopardized by delay, including but not limited to indications that the person liable for the business license tax intends to take or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell, exchange, transfer, assign, or otherwise dispose of such person's business, personal or business income, or business property. The collector also may consider whether the person liable for the business license tax is or has been uncooperative or unresponsive in connection with any investigation, examination, audit, deficiency determination, assessment, or collection action or procedure undertaken by the collector. A jeopardy determination of business license tax, penalty, or interest, is immediately due and payable upon the service of the notice of jeopardy determination on the person determined to be liable therefor. Service of notice of a jeopardy determination shall be made by: (1) sending the notice initially by electronic mail to the depositing commercial cannabis business owner's/operator's electronic mail address of record as set out in the depositing commercial cannabis business owners/operator's application for business license or most recent business license renewal affidavit or business license amendment statement; (2) placing the notice for delivery with an express 17 11A-17 carrier for next business day delivery, all delivery and tracking charges prepaid, addressed to the depositing commercial cannabis business owner/operator at their place of business; and/or (3) conspicuously posting said notice upon the premises of the commercial cannabis business. Service of notice of a jeopardy determination shall be deemed completed upon tracking confirmation of the delivery of said notice to the commercial cannabis business owner's/operator's place of business or on the date of the actual posting of said notice on the premises of the depositing commercial cannabis business owner/operator. Upon the business day next following the completion of service of notice of a jeopardy determination upon a depositing commercial cannabis business, the collector in his or her discretion may proceed with the application of the security deposit upon actual or estimated business license taxes due, including penalties, interest, charges, or service fees. (f) Refund or release of security deposit. In the case of the sale, assignment, or other transfer or termination of business by the depositor pursuant to section 21-141, the collector shall refund or release the security deposit amount required pursuant to this section, or in the event of prior application of the security deposit pursuant to subsection (c), any unapplied amount of such security deposit, upon depositor's presentation to the collector of a certificate of nonliability stating the nonliability of the depositor for payment of business license taxes as hereunder provided in section 21-141(f). (g) Deposit adjustment —effect. In the case of a determination by the collector that the amount of a previously posted commercial cannabis business owner's/operators security deposit exceeds the requirements of this section, then the collector shall adjust the amount of the required security deposit. If the prior security deposit was posted on a cash basis, then the collector shall refund the excess amount. If the prior security deposit was posted on a non -cash basis, then an adjusted cash basis security deposit or adjusted non -cash basis security deposit in a form acceptable to the collector may be posted in exchange for the release of the prior security deposit. Section 9. Section 21-141 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 21-141. Sale, assignment, transfer, or termination of business commercial cannabis business owner's/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability. (a) Owner/Operator's duty to notify. I. Termination of business. A commercial cannabis business owner/operator who is terminating their business shall notify the collector in writing of such 18 11A-18 termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business. ii. Sale, assignment, or transfer of business. A commercial cannabis business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, ortransfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale, assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities. (b) Remitting and reporting requirements. Each commercial cannabis business owner/operator upon the sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the month following the sale, assignment, transfer, or termination of business, file a final return to the collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of business license tax collected for the reporting period, remittances made, if any, and the balance of the business license tax due, if any, shall be remitted to the collector. (c) Closeout audit. After filing the final return and remitting the balance due, the commercial cannabis business owner/operator shall make its records of account available for a closeout audit by the collector, his or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either their return or Fr6] 11A-19 remittance, or both, the collector shall immediately notify such owner/operator of the amount of the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner/operator's remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a commercial cannabis business owner/operator decides to sell, assign, or otherwise transfer their business, their successor shall notify the collector of the date of the sale, assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It shall be the duty of the successor to obtain written verification from the collector's office that the transferor does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks written verification from the collector's office, if the collector notifies the successor that the transferor has or is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount equal to such outstanding business license tax liabilities until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a commercial cannabis business owner/operator who is terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after conducting an audit therefore, as he or she may deem necessary, shall issue the certificate of nonliability if the owner/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any business license tax liabilities remain outstanding, or if 20 11 A-20 additional business license tax liabilities have accrued subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or successor of the applicable amount which must be fully paid as a condition of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor. Section 10. Section 21-142 of Article XIII of Chapter 21 of the Santa Ana Municipal Code, is hereby added to read as follows: Sec. 21-142. Vertical and horizontal integration of commercial cannabis business licensees —Defined. The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term 'cannabis businesses" shall include medicinal marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. Section 11. Section 21-80 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80. - Same —Not conclusive; audit of books. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector, his or her revenue officers, or duly authorized employees or agents of the City, who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in theirjudgment to verify or ascertain the amount of license fee due. 21 11 A-21 All persons subject to the provisions of this Chapter shall keep complete and detailed records of business transactions, including, but not limited to the following; rent collected, daily -sales, sales taxes collected and paid to the state, any and all city, state and federal taxes collected and remitted from cannabis sales, point of sales (POS) system detailed daily sales data base and summary monthly sales reports, receipts, purchases, and other expenditures, detailed general ledger, income statements, cash flow statements, balance sheets, sales journals, cash disbursement journals and ledgers including payroll journals, third -party staffing agency statements, lease agreements, and other reports regarding the number and types of persons employed and/or otherwise engaged in the business, and shall retain all such records for examination by the collector, his or her revenue officers, or duly authorized employees or agents of the City. Such records shall be maintained for the period of the current calendar year, and for a prior period of at least three (3) complete calendar years or from the commencement of business within the city, whichever period is least. In the event such records of any business are not maintained within the city and are not reasonably made available for examination within the city, then such business shall be responsible for the actual travel and lodging cost in connection with the performance of said examination. No person required to keep records under this section shall refuse to allow the collector, his or her revenue officers, or duly authorized employees or agents of the City to examine said records at reasonable times and places. Any person who willfully refuses to allow said examination on demand and at a reasonable time and place as herein provided shall be deemed guilty of a misdemeanor. In addition, such willful refusal shall be cause for suspension and/or revocation of such business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Section 12. Section 21-80.1 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80.1. Same —Audit deficiency; application of penalty and interest; voluntary compliance effect; —Abatement of penalty and interest application; Exception for business license taxes assessed on a monthly basis; audit service fees. In the event that the collector or his or her designated agents, whether through an audit or otherwise, determine that any person has misstated their gross receipts amount, square footage amount, or other criteria upon which their current or prior years' business license tax has been calculated resulting in an underpayment of the tax amount owed, the collector shall separately calculate the deficiency for each distinct license period affected and issue a statement of tax deficiency and add delinquency penalties as applicable to the amount of the tax deficiency in accordance with Section 21-25, subsection (a) and Section 21-83, subsection (a), together with interest as 22 11 A-22 provided under Sections 21-84 and 21-85, as applicable, until such time as the tax deficiency together with the accrued penalties and interest, are satisfied. In the case of business license taxes which are assessed and payable on a monthly basis, an identical procedure shall be applied by the collector. Provided, however, that the provisions of Section 21-25 shall not apply. Except business license taxes which are assessed and payable on a monthly basis, where any person voluntarily reports a tax deficiency on business license taxes which are assessed and payable on an annual basis such person's penalty and interest assessment on said deficiency shall be abated until the combined amount of tax, penalty and interest due is equalized to an amount equivalent to the amount of current and prior years' taxes owing as computed or determined based upon the business license tax rates and charges in effect for the most current tax year. In computing the abatement of accrued penalties and interest to arrive at a combined amount of tax, penalty and interest equivalent to the amount of the current or prior years' taxes owing as computed or determined based upon the business license tax rates in effect for the most current tax year the collector in his or her discretion may retain a sufficient amount of accrued penalty alone, or a sufficient amount of accrued interest alone, or any sufficient combination of accrued penalty amount and accrued interest amount necessary. Whenever the result of any audit performed pursuant to this Chapter, excluding audits performed in connection with any medicinal cannabis business or commercial cannabis business, determines that any licensee has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per.cent or more of the total amount due, but not less than two hundred fifty dollars ($250.00), then an audit service fee in an amount as specified by resolution of the City Council shall be applied. In the case of audits performed pursuant to this Chapter in connection with any medicinal cannabis business or commercial cannabis business that has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than five thousand dollars ($5,000.00), then such cannabis business shall be responsible for the City's actual cost of performing said audit. Section 13. Section 21-86 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-86. - Same —Suspension and revocation of business license. The collector shall suspend and/or revoke any business license issued or granted pursuant to this Chapter only upon those grounds. set forth in Sections 21-45, 21-50, 21- 23 11 A-23 55, 21-58, 21-59, 21-60, 21-80, 21-136 or upon conditions set forth in any written agreement executed pursuant to Section 21-83. Provided further, that unless revocation is made upon conditions set forth in a written agreement executed pursuant to Section 21-83 or upon licensee's failure to comply with the requirements of Section 21-136, no licensee's business license shall be suspended and/or revoked for failure to pay any annual business license tax as set forth in this Chapter, or any monthly business license tax as set forth in Article XI or Article XIII of this Chapter, or any other amount due pursuant to this Chapter until the penalties accruing for such failure to pay, exclusive of interest, have attained the maximum applicable amount permissible under the terms of this Chapter. Whereupon, the collector shall give a notice of suspension, which notice shall specify the grounds for suspension, and which notice shall be given by personal service or by depositing it in the United States post office in the city, postage prepaid, addressed to the licensee at the address listed on the application of the licensee where he or she consented to receive mail concerning his or her license, to obtain a license or to pay any license tax due or the address listed on the most recent business license renewal affidavit or business license amendment statement; and/or conspicuously posting said notice upon the premises of the business. Service of notice shall be deemed completed upon the date of personal service of said notice, or the date of mailing of said notice, or the date of actual posting of said notice on the premises of the licensee whichever occurs first. In the event said licensee fails, within a period of thirty (30) days' notice, to pay the business license tax due or any other amount due pursuant to this Chapter, or to request a hearing the procedure for which shall be as provided in Section 21-41, then and in that event the collector shall give a notice of revocation. The licensee shall be given at least ten (10) days' notice, which notice shall specify the grounds for revocation, and which notice shall be given pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails within the allotted ten (10) day period to request a hearing to show cause why his or her business license should not be revoked, then and in that event the collector shall revoke said person's license and give notice thereof to said person pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails to file within ten (10) days thereafter, an appeal pursuant to Chapter 3 of this Code, then the collector's action in revoking said person's business license shall be conclusive as to all matters involved, and the transacting and carrying on by any person of any business pursuant to said license shall thereafter be deemed a misdemeanor. Section 14. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity 24 11 A-24 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 15. Effective Date. This Ordinance shall be effective thirty days after its adoption by the City Council of the City of Santa Ana. ADOPTED this day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 25 11 A-25 11 A-26 STRIKETHROUGH VERSION (SEE PAGES 7 AND 15) LS 9.3.19 ORDINANCE NO. NS-2972 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING AND ADDING CERTAIN SECTIONS TO ARTICLES XIII, XII, AND VII OF CHAPTER 21 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO OWNERSHIP TRANSFERS, CLOSE OUT AUDIT PROCEDURES (SECTIONS 21-131.1 AND 21-141); VERTICAL INTEGRATION (SECTIONS 21-131.2 AND 21- 142); REDUCTION IN THE GROSS RECEIPTS TAX RATE FOR CANNABIS TESTING FACILITIES, DEDUCTIBILITY OF INTERPARTY SALES AND TRANSFERS OF GOODS, CLARIFICATION OF SQUARE FOOTAGE TAX MEASUREMENT REQUIREMENTS (SECTION 21-133); AND REDUCTION OF SECURITY DEPOSIT AMOUNTS AND ESTABLISHMENT OF RELATED PROCEDURAL REQUIREMENTS (SECTIONS 21-80, 21-80.1, 21-86 AND 21-136) THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act further amended in 2016 as the Medical Cannabis Regulation and Safety Act which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. C. In November 2016, the voters of the State of California approved Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act. i 11 A-27 D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act. E. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. F. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, allowing and regulating commercial cannabis testing laboratories. G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and regulating commercial cannabis cultivation, distribution, and manufacturing activities. H. On November 6, 2018, the voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962), establishing a tax on commercial cannabis business activities except medicinal cannabis retail sales, which continue to be subject to taxes under Measure BB. I. The State of California continues to update its regulations on commercial cannabis business licensing, resulting in the need for local jurisdictions to update and amend local commercial cannabis ordinances from time to time. J. The City Council of the City of Santa Ana intends that nothing in this Article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not cultivated, manufactured or distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. L. The City Council held a duly noticed public hearing on August 20, 2019 in connection with consideration and adoption of this ordinance. Section 2. This ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including but not limited to: Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and z 11 A-28 Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act (AB 266, AB 243, and SB 643), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94). Section 3. Pursuant to the California Environmental Quality Act ("CEQX) and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 4: All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section S. Section 21-131.1, Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: Sec. 21-131.1. Sale, assignment, transfer, or termination of business; marijuana collective/cooperative (medicinal cannabis retail business) owner/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability. (a) Owner/Operator's duty to notify. I. Termination of business. A medicinal marijuana collective/cooperative owner/operator (also referred to herein as medicinal cannabis retail business) who is terminating their business shall notify the collector in writing of such termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business. ii. Sale, assignment, or transfer of business. A medicinal cannabis retail business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the 11 A-29 collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale, assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities. (b) Remitting and reporting requirements. Each medicinal cannabis retail business owner/operator upon the sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the month following the sale, assignment, transfer, or termination of business, file a final return to the collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of business license tax collected for the reporting period, remittances made, if any, and the balance of the business license tax due, if any, shall be remitted to the collector. (c) Closeout audit. After filing the final return and remitting the balance due, the medicinal cannabis retail business owner/operator shall make its records of account available for a closeout audit by the collector, his or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner's/operator's remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a medicinal cannabis retail business owner/operator decides to sell, assign, or otherwise transfer their business, their successor shall notify the collector of the date of the sale, assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It shall be the duty of the successor to obtain written verification from the collectors office that the transferor does not have or is not liable for any outstanding business license taxes 11 A-30 liabilities. After the successor seeks written verification from the collector's office, if the collector notifies the successor that the transferor has or is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount equal to such outstanding business license tax liabilities until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a medicinal cannabis retail business operator/owner who is terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after conducting an audit therefore, as he or she may deem necessary, shall issue the certificate if the owner's/operator's, transferors, or successor's business license tax liabilities have been satisfied. If any business license tax liabilities remain outstanding, or if additional business license tax liabilities have accrued subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or successor of the applicable amount which must be fully paid as a condition of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successors action of withholding and depositing amounts with the collector pursuant to subsection (d), no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor. Section 6. Section 21-131.2 of Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: 11 A-31 Sec. 21-131.2 Vertical and horizontal integration of marijuana collective/cooperative licensees (medicinal cannabis retail businesses) —Defined. The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term 'cannabis businesses' shall include marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. Section 7. Section 21-133 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-133. Commercial cannabis businesses —Annual business license tax assessment. Every person engaged in a 'commercial cannabis business" or 'commercial cannabis activity" shall pay an annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana cooperatives/collectives (also referred to as medicinal cannabis retail businesses which are vertically and/or horizontally integrated with commercial cannabis businesses, to medical marijuana cooperatives/collectives which are governed by Article XI I of this Chapter, or to personal cultivation as defined in section 18-611(n) of this Code. (a) For each branch establishment or separate property location of a commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for each monthly reporting period: (1) Up to ten percent (10%) of each dollar of gross receipts received or generated for each monthly reporting period. (2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one - twelfth (1/12th) of the annual tax rate amount. (b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter. 0 11 A-32 (c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rates established by subsection (a). (d) As of the operative date of this Article, the business license gross receipts tax rates and square footage tax rates application to specific commercial cannabis business activities shall be established as follows: Commercial Cannabis Business Gross Receipts Gross Square Activity Tax Rate Footage Tax Rate Adult -use Cannabis Retail 8% $ 25.00 Business (including Delivery) Cultivation 6% $ 10.00 Distribution 6% $ 4.00 Manufacturing 6% $ 10.00 Testing Facility or Testing Laboratory (effective December 5% $ 1.50 21, 2018 through June 30, 2019) Testing Facility or Testing Laboratory (effective beginning 21% $ .1.50 July 1, 2019) Commercial cannabis businesses not having a fixed place of business within the city but conducting regular, non -incidental commercial cannabis business activities within the city shall be subject to the gross receipts tax rate(s) as set out in the table above based on the category/categories of commercial cannabis activity conducted. However, such out-of-town commercial cannabis businesses shall not be subject to any gross square footage tax rate(s). (e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial cannabis business located within the city shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location. Commercial cannabis businesses having no fixed place of business within the city shall be exempted from this requirement. V] 11 A-33 (f) In the event the City should in the future permit additional categories of commercial cannabis business activity, as may from time to time be licensed by the State of California, such categories of commercial cannabis activates shall be subject to the same maximum tax rates as imposed herein. The City may by ordinance of the City Council initially set the required gross receipts/gross square footage tax rates based on category of cannabis business activity at lesser rates as may be deemed appropriate by the City Council. (g) For purposes of this Article, a commercial cannabis business is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49 of this Chapter. (h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate component of the combined gross receipts/square footage tax imposed under this Article on the basis of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance with section 21-127(a)(6) of this Chapter. (i) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult -use cannabis retail business customer or commercial cannabis business customer in any fashion except as part of the basic product sales and/or service price. 0) Definitions. For purposes of this Article, the following terms have the following meanings: (1) "Adult -Use cannabis retail business' as defined in section 40-2(4) of this Code. (2) "Commercial Cannabis Activity" as defined in section 40-2(9) of this Code. (3) "Commercial cannabis business' as defined in section 40-2(10) of this Code excluding medical marijuana collectives/cooperatives also referred to as medicinal cannabis retail sales. (4) "Cultivation' as defined in section 40-2(11) of this Code. (5) "Delivery" as defined in section 40-2(13) of this Code. (6) "Distribution" as defined in section 40-2(16) of this Code. (7) "Gross receipts" — section 21-3 of this Chapter notwithstanding, "gross receipts" for the purposes of this Article shall mean: (A) Transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for cannabis, including, but not limited to, membership N 11 A-34 dues, reimbursements provided by members, regardless of form, or the total amount of cash or in -kind contributions, including all operating costs related to the growth, cultivation, manufacturing, distribution, testing, or provision of cannabis or any transaction related thereto. (B) Anything else of value obtained by an a cannabis business; (C) The total amount of the sale.price of all sales and services; (D) The total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, or merchandise (whether at wholesale or retail), for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature; (E) Any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included; (F) The amount of any federal manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof; (G) The amount of any California state cannabis excise tax or state cannabis cultivation tax included in the price of the product; (H) "Gross receipts" shall not include the following: i. The amount of any federal tax imposed on or with respect to retail or wholesale sales or the sale of services whether imposed upon the cannabis business or the consumer whenever the amount of federal tax is authorized by law to be stated and passed through to customers as a separate charge. ii. Any California state, county, or city sales or use tax, including any add -on, district, or transaction and use tax, required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; or 0 11 A-35 iii. The amount of the sale price of business personal property (all property owned or leased by a cannabis business operator used in the operation cannabis business activities, including but not limited to: furniture, fixtures, and business equipment); real property, including land, buildings and other improvements. iv. The amount of equity contributions, investments, and/or loan proceeds to cannabis business' operation, and/or proceeds from the sale or transfer of cannabis business' retail or commercial cannabis business. v. The amount of interparty sales and/or transfers of goods within a single vertically and/or horizontally integrated cannabis business, where the sales or transfers goods are between two or more commercial cannabis business licensees (excluding testing facilities or testing laboratories), or one or more said commercial cannabis business licensee(s) and one or more medicinal cannabis retail business licensee(s), as set forth in accordance with section 21-131.2 and/or section 21-142. (1) "Gross receipts" shall be calculated without any deduction on account of any of the following: I. The cost of tangible or intangible property sold or bartered; ii. The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; iii. The cost of transportation of cannabis, or other property or product; iv. The amount of any federal or state income or franchise taxes; and v. Any other business costs or expenses, unless otherwise specifically exempted. (8) "Gross Square foot" or "gross square footage" for the purposes of this Article shall mean: (A) In the case of commercial cannabis businesses licensed by the state to engage in an adult -use cannabis retail business, the gross number of square feet comprising the adult -use cannabis retail property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated, whether such adult -use cannabis retail business is part of an on -site vertically or horizontally integrated cannabis business or not. io 11 A-36 (B) In the case of commercial cannabis businesses licensed by the state to engage in cultivation, the aggregate number of square feet comprising all areas of the premises under "canopy", whether such sum is greater or lesser than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy", and whether such commercial cannabis cultivation business is part of an on -site vertically integrated cannabis business or not. "Canopy' shall mean the designated area(s) of a premise that will contain mature plants at any point in time. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden plots; and if mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. Canopy shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector. Whenever an independent canopy measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's canopy is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then a canopy measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (C) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and that are not vertically or horizontally integrated with another cannabis business occupying the same premises, the gross number of square feet as confirmed by the corresponding "approved building set" or "approved certificate of occupancy' on file with the City of Santa Ana Planning and 11 11 A-37 Building Agency, whichever is the greater of any square footage indicated. (D) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and occupying the same premises with another cannabis business with which they are vertically or horizontally integrated, the gross number of square feet allocated by the commercial cannabis business owner/operator respectively for either distribution use or for manufacturing use, whether the combined sum of all vertically or horizontally integrated uses is less than, equal to, or greater than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy". The number of square feet allocated ("Allocated Square Footage") shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector. Whenever an independent allocated square footage measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's allocated square footage is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then an Allocated Square Footage measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (E) In the case of commercial cannabis businesses licensed by the state to engage in testing facilities or testing laboratory businesses, the gross number of square feet comprising such commercial cannabis business' property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater. (9) "Manufacturing" as defined in section 40-2(22) of this Code. (10) `Retail businesses" as defined in section 40-2(40) of this Code. (11) "Testing Facility' or "Testing Laboratory" as defined in section 40-2(44) of this Code. 12 11 A-38 (12) "Wholesale" as defined in section 40-(46) of this Code. (k) Modification, repeal or amendment. The City Council may repeal the ordinance codified in this Article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The City Council may likewise by ordinance adopt and add additional provisions to any other Article of this Chapter and relate them to this Article, or amend any existing provisions of any Article of this Chapter as they may already relate to this Article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the City Council repeals said ordinance or any provision of this Article, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein. (1) Administration —Rules, regulations and guidelines. In order to aid in the city's collection of taxes due under this Article and to ensure that all commercial cannabis businesses are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this Article including, but not limited to rules, regulations, and guidelines harmonizing other provisions of this Chapter with the provisions of this Article in any manner not inconsistent with the intent of this Article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Article. (m) Occasional transactions —Exemptions (1) The provisions of this Article shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of commercial cannabis business at the request of a specific client or customer, incidental to a commercial cannabis business principally established elsewhere, provided that such person does not come into the city for the purpose of transacting such business on more than three (3) days during any calendar year. (2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting commercial cannabis business activities, the business license tax(es) payable by such person may be apportioned by the collector in accordance with this Chapter. (n) Reporting and remittance. (1) Beginning as set forth in subsection (r) below, and monthly thereafter, each commercial cannabis business required to pay a tax or taxes based 13 11 A-39 on gross receipts under this Article (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts), shall report to the city any gross receipts received during the preceding monthly reporting period. In addition, each cannabis business (including qualified nonprofit organizations) required to pay a tax or taxes based on square footage shall report to the city the gross square footage of the cannabis business' property location. Every cannabis business shall then compute the business license taxes at both the gross receipts rate and the gross square footage rate - prorated monthly to one -twelfth (1 /12th) of the annual tax rate amount - and shall then remit to the city the amount of the higher of the two tax calculations due and owing during said period in accordance with section 21-133, subsection (d). In the case of a qualified nonprofit organization only the gross square footage computation shall be made and the amount of such calculation shall represent the amount due and owing during said period. All reporting and remitting made shall be done in accordance with instructions from the collector and shall be made using forms provided or approved by the collector. (2) For purposes of this section, month shall mean calendar month and shall include any fraction of a month. Taxes shall begin to accrue on the date that a person or entity first receives a business license or other city permit to operate as a commercial cannabis business or upon the operative date of this Article should a person or entity already possess a commercial cannabis business license or other city permit to operate as a commercial cannabis business. (3) The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance with this section, shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31 st day of March of the following year. In the case of a new commercial cannabis business the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one -quarter (Y<) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued. (o) Delinquent date —Penalty. Any individual or entity who fails to pay the taxes required by this Article when due shall be subject to penalties and interest as set forth in accordance with this Chapter. The collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this Article and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Article. 14 11 A-40 (p) Business license tax certificate —Required. There are imposed upon all persons engaged in transacting and carrying on any commercial cannabis business activity in the city taxes in the amounts prescribed in this Article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this Chapter and having paid the taxes set forth in this Article, and without complying with any and all applicable provisions contained in this Chapter. The carrying on of any commercial cannabis business activity without complying with all the provisions of this Article shall constitute a separate violation of this Chapter for each and every day that such commercial cannabis activity is so carried on. (q) Classification of business license assessment type —Term and renewal. The business license issued to commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77. (r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018 general election, the taxes imposed by this Article shall become operative and shall be applied by the collector upon all commercial cannabis businesses. (s) Operative date of decreased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5%) percent for testing facilities or testing laboratories pursuant to subsection (d) above shall be decreased to a rate of two (2%) one percent (1 %) by resolution of the City Council [Santa Ana City Council Resolution No, 2019-xx] as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become retroactively effective July 1, 2019. Section 8. Section 21-136 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-136. Security for collection of commercial cannabis business' business license tax; requirement; extension of time; application; failure to post or restore — effect; jeopardy determination; refund or release; deposit adjustment —effect. (a) Requirement for Security Deposit. To ensure compliance with business license tax payment requirements established pursuant to this Article, the collector shall require, beginning on the operative date of this Article, that each commercial cannabis business owner/operator, including but not limited to each purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) of a commercial cannabis business subject to the business 15 11 A-41 licensing requirements of this Article, deposit one hundred and twenty (120) days following the last day of the month in which business was first commenced such security (per individual business license) in a form acceptable to the collector in an amount not larger than the commercial cannabis business owner's/operator's estimated average monthly business license tax liability as determined by the collector or the sum of ten thousand dollars ($10,000.00), whichever is least. Provided, however, in the event that two or more commercial cannabis business licensees sharing at least 80% underlying common ownership, regardless of form of business structure, are engaged in an integrated cannabis business (whether vertically or horizontally integrated) as defined in section 21-142, then a single consolidated deposit shall be made equal to the deposit amount owing for the integrated commercial cannabis activity having the highest individual business license tax liability. Each new city commercial cannabis business licensee shall upon obtaining their City business license(s) deposit a similar security as applicable per business license within thirty (30) days after commencing business. (b) Extension of Time. If, upon request and in the judgment of the collector, a determination of any commercial cannabis business' estimated average monthly tax liability for purposes of setting the amount of their required security deposit requires an extension of time beyond one hundred and twenty (120) days following the last day of the month in which business was first commenced, then the collector may issue a written notification to such commercial cannabis business granting such extension. (c) Application of Security Deposit. To recover past -due business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) remittable by the depositor, the collector may apply the security deposited with the collector. At least fifteen (15) days prior to the application of a security deposit, the collector shall serve upon the depositing commercial cannabis business owner/operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing commercial cannabis business owner/operator at their place of business or other mailing address of record. Any portion of the security remaining after satisfaction of outstanding business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non -cash deposits may be retained by the collector for security or in the case of a closeout audit may be paid over by the collector to the depositing owner/operator. Except in the case of a closeout audit pursuant to section 21-141, in the event the collector applies the security deposit, or any portion of said deposit, as an offset against remittable business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non -cash deposits, the commercial cannabis business owner/operator shall be required within thirty (30) days of the 16 11 A-42 collectors written demand therefor, to re -deposit the full amount of the required security. In such event the amount of the required security shall be adjusted by the collector based on the average of the commercial cannabis business' actual monthly gross receipts tax returns and/or remittances as measured over the last three (3) valid monthly returns and/or remittances received by the collector or the sum of ten thousand dollars ($10,000), whichever is least, less any amount remaining on deposit with the collector. Service of demand shall be in the same manner as stated hereinabove for service of notice. (d) Failure to Post or Restore Security Deposit —effect. Failure by a commercial cannabis business licensee to initially post or restore a security deposit when required by the collector pursuant to this section shall be cause for suspension and/or revocation of such commercial cannabis business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Similarly, in the case of a vertically and/or horizontally integrated cannabis business, the business license(s) of the integrated commercial cannabis business(es) shall be likewise subject to suspension and/or revocation. (e) Jeopardy Determination. If the collector believes that the collection of any business license tax imposed by this Article will be jeopardized, in whole or in part, by delay in the commercial cannabis business owner's/operator's timely remittance of the business license tax, the collector shall serve notice upon the person determined to be liable therefor of their determination of jeopardy and of the business license tax required to be paid to the City, and demand immediate payment thereof, together with any interest and penalty determined to be due. The collector may consider all facts and circumstances relevant to determining whether the collection of any business license tax will be jeopardized by delay, including but not limited to indications that the person liable for the business license tax intends to take or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell, exchange, transfer, assign, or otherwise dispose of such person's business, personal or business income, or business property. The collector also may consider whether the person liable for the business license tax is or has been uncooperative or unresponsive in connection with any investigation, examination, audit, deficiency determination, assessment, or collection action or procedure undertaken by the collector. A jeopardy determination of business license tax, penalty, or interest, is immediately due and payable upon the service of the notice of jeopardy determination on the person determined to be liable therefor. Service of notice of a jeopardy determination shall be made by: (1) sending the notice initially by electronic mail to the depositing commercial cannabis business owner's/operator's electronic mail address of record as set out in the depositing commercial cannabis business owner's/operator's application for business license or most recent business license renewal affidavit or business license amendment statement; (2) placing the notice for delivery with an express 17 11 A-43 carrier for next business day delivery, all delivery and tracking charges prepaid, addressed to the depositing commercial cannabis business owner/operator at their place of business; and/or (3) conspicuously posting said notice upon the premises of the commercial cannabis business. Service of notice of a jeopardy determination shall be deemed completed upon tracking confirmation of the delivery of said notice to the commercial cannabis business owner's/operator's place of business or on the date of the actual posting of said notice on the premises of the depositing commercial cannabis business owner/operator. Upon the business day next following the completion of service of notice of a jeopardy determination upon a depositing commercial cannabis business, the collector in his or her discretion may proceed with the application of the security deposit upon actual or estimated business license taxes due, including penalties, interest, charges, or service fees. (f) Refund or release of security deposit. In the case of the sale, assignment, or other transfer or termination of business by the depositor pursuant to section 21-141, the collector shall refund or release the security deposit amount required pursuant to this section, or in the event of prior application of the security deposit pursuant to subsection (c), any unapplied amount of such security deposit, upon depositor's presentation to the collector of a certificate of nonliability stating the nonliability of the depositorfor payment of business license taxes as hereunder provided in section 21-141(f). (g) Deposit adjustment —effect. In the case of a determination by the collector that the amount of a previously posted commercial cannabis business owners/operator's security deposit exceeds the requirements of this section, then the collector shall adjust the amount of the required security deposit. If the prior security deposit was posted on a cash basis, then the collector shall refund the excess amount. If the prior security deposit was posted on a non -cash basis, then an adjusted cash basis security deposit or adjusted non -cash basis security deposit in a form acceptable to the collector may be posted in exchange for the release of the prior security deposit. Section 9. Section 21-141 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 21-141. Sale, assignment, transfer, or termination of business commercial cannabis business owner's/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability. (a) Owner/Operator's duty to notify. i. Termination of business. A commercial cannabis business owner/operator who is terminating their business shall notify the collector in writing of such 18 11 A-44 termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business. ii. Sale, assignment, or transfer of business. A commercial cannabis business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale, assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities. (b) Remitting and reporting requirements. Each commercial cannabis business owner/operator upon the sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the month following the sale, assignment, transfer, or termination of business, file a final return to the collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of business license tax collected for the reporting period, remittances made, if any, and the balance of the business license tax due, if any, shall be remitted to the collector. (c) Closeout audit. After filing the final return and remitting the balance due, the commercial cannabis business owner/operator shall make its records of account available for a closeout audit by the collector, his or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either their return or iV 11 A-45 remittance, or both, the collector shall immediately notify such owner/operator of the amount of the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner/operator's remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a commercial cannabis business owner/operator decides to sell, assign, or otherwise transfer their business, their successor shall notify the collector of the date of the sale, assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It shall be the duty of the successor to obtain written verification from the collectors office that the transferor does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks written verification from the collector's office, if the collector notifies the successor that the transferor has or is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount equal to such outstanding business license tax liabilities until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a commercial cannabis business owner/operator who is terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after conducting an audit therefore, as he or she may deem necessary, shall issue the certificate of nonliability if the owner/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any business license tax liabilities remain outstanding, or if N11 11 A-46 additional business license tax liabilities have accrued subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or successor of the applicable amount which must be fully paid as a condition of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor. Section 10. Section 21-142 of Article XIII of Chapter 21 of the Santa Ana Municipal Code, is hereby added to read as follows: Sec. 21-142. Vertical and horizontal integration of commercial cannabis business licensees —Defined. The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include medicinal marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. Section 11. Section 21-80 of Article VI I of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80. - Same —Not conclusive; audit of books. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector, his or her revenue officers, or duly authorized employees or agents of the City, who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in theirjudgment to verify or ascertain the amount of license fee due. 21 11 A-47 All persons subject to the provisions of this Chapter shall keep complete and detailed records of business transactions, including, but not limited to the following; rent collected, daily_sales, sales taxes collected and paid to the state, any and all city, state and federal taxes collected and remitted from cannabis sales, point of sales (POS) system detailed daily sales data base and summary monthly sales reports, receipts, purchases, and other expenditures, detailed general ledger, income statements, cash flow statements, balance sheets, sales journals, cash disbursement journals and ledgers including payroll journals, third -party staffing agency statements, lease agreements, and other reports regarding the number and types of persons employed and/or otherwise engaged in the business, and shall retain all such records for examination by the collector, his or her revenue officers, or duly authorized employees or agents of the City. Such records shall be maintained for the period of the current calendar year, and for a prior period of at least three (3) complete calendar years or from the commencement of business within the city, whichever period is least. In the event such records of any business are not maintained within the city and are not reasonably made available for examination within the city, then such business shall be responsible for the actual travel and lodging cost in connection with the performance of said examination. No person required to keep records under this section shall refuse to allow the collector, his or her revenue officers, or duly authorized employees or agents of the City to examine said records at reasonable times and places. Any person who willfully refuses to allow said examination on demand and at a reasonable time and place as herein provided shall be deemed guilty of a misdemeanor. In addition, such willful refusal shall be cause for suspension and/or revocation of such business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Section 12. Section 21-80.1 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80.1. Same —Audit deficiency; application of penalty and interest; voluntary compliance effect; —Abatement of penalty and interest application; Exception for business license taxes assessed on a monthly basis; audit service fees. In the event that the collector or his or her designated agents, whether through an audit or otherwise, determine that any person has misstated their gross receipts amount, square footage amount, or other criteria upon which their current or prior years' business license tax has been calculated resulting in an underpayment of the tax amount owed, the collector shall separately calculate the deficiency for each distinct license period affected and issue a statement of tax deficiency and add delinquency penalties as applicable to the amount of the tax deficiency in accordance with Section 21-25, subsection (a) and Section 21-83, subsection (a), together with interest as 22 11 A-48 provided under Sections 21-84 and 21-85, as applicable, until such time as the tax deficiency together with the accrued penalties and interest, are satisfied. In the case of business license taxes which are assessed and payable on a monthly basis, an identical procedure shall be applied by the collector. Provided, however, that the provisions of Section 21-25 shall not apply. Except business license taxes which are assessed and payable on a monthly basis, where any person voluntarily reports a tax deficiency on business license taxes which are assessed and payable on an annual basis such person's penalty and interest assessment on said deficiency shall be abated until the combined amount of tax, penalty and interest due is equalized to an amount equivalent to the amount of current and prior years' taxes owing as computed or determined based upon the business license tax rates and charges in effect for the most current tax year. In computing the abatement of accrued penalties and interest to arrive at a combined amount of tax, penalty and interest equivalent to the amount of the current or prior years' taxes owing as computed or determined based upon the business license tax rates in effect for the most current tax year the collector in his or her discretion may retain a sufficient amount of accrued penalty alone, or a sufficient amount of accrued interest alone, or any sufficient combination of accrued penalty amount and accrued interest amount necessary. Whenever the result of any audit performed pursuant to this Chapter, excluding audits performed in connection with any medicinal cannabis business or commercial cannabis business, determines that any licensee has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than two hundred fifty dollars ($250.00), then an audit service fee in an amount as specified by resolution of the City Council shall be applied. In the case of audits performed pursuant to this Chapter in connection with any medicinal cannabis business or commercial cannabis business that has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than five thousand dollars ($5,000.00), then such cannabis business shall be responsible for the City's actual cost of performing said audit. Section 13. Section 21-86 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-86. - Same —Suspension and revocation of business license. The collector shall suspend and/or revoke any business license issued or granted pursuant to this Chapter only upon those grounds set forth in Sections 21-45, 21-50, 21- 23 11 A-49 55, 21-58, 21-59, 21-60, 21-80, 21-136 or upon conditions set forth in any written agreement executed pursuant to Section 21-83. Provided further, that unless revocation is made upon conditions set forth in a written agreement executed pursuant to Section 21-83 or upon licensee's failure to comply with the requirements of Section 21-136, no licensee's business license shall be suspended and/or revoked for failure to pay any annual business license tax as set forth in this Chapter, or any monthly business license tax as set forth in Article XII or Article XIII of this Chapter, or any other amount due pursuant to this Chapter until the penalties accruing for such failure to pay, exclusive of interest, have attained the maximum applicable amount permissible under the terms of this Chapter. Whereupon, the collector shall give a notice of suspension, which notice shall specify the grounds for suspension, and which notice shall be given by personal service or by depositing it in the United States post office in the city, postage prepaid, addressed to the licensee at the address listed on the application of the licensee where he or she consented to receive mail concerning his or her license, to obtain a license or to pay any license tax due or the address listed on the most recent business license renewal affidavit or business license amendment statement; and/or conspicuously posting said notice upon the premises of the business. Service of notice shall be deemed completed upon the date of personal service of said notice, or the date of mailing of said notice, or the date of actual posting of said notice on the premises of the licensee whichever occurs first. In the event said licensee fails, within a period of thirty (30) days' notice, to pay the business license tax due or any other amount due pursuant to this Chapter, or to request a hearing the procedure for which shall be as provided in Section 21-41, then and in that event the collector shall give a notice of revocation. The licensee shall be given at least ten (10) days' notice, which notice shall specify the grounds for revocation, and which notice shall be given pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails within the allotted ten (10) day period to request a hearing to show cause why his or her business license should not be revoked, then and in that event the collector shall revoke said person's license and give notice thereof to said person pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails to file within ten (10) days thereafter, an appeal pursuant to Chapter 3 of this Code, then the collector's action in revoking said person's business license shall be conclusive as to all matters involved, and the transacting and carrying on by any person of any business pursuant to said license shall thereafter be deemed a misdemeanor. Section 14. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity `zI 11 A-50 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 15. Effective Date. This Ordinance shall be effective thirty days after its adoption by the City Council of the City of Santa Ana. ADOPTED this day of APPROVED AS TO FORM Sonia R. Carvalho, City Attorney In Lisa Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Counci Councilmembers: Councilmembers: 2019. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 25 11 A-51 11 A-52 LS 9.3.19 ORDINANCE NO. NS-2973 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CERTAIN SECTIONS OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO MEDICINAL MARIJUANA AND CHAPTER 40 OF THE MUNICIPAL CODE PERTAINING TO COMMERCIAL CANNABIS TO UPDATE AND STREAMLINE IMPLEMENTATION OF COMMERCIAL CANNABIS, INCLUDING MEDICINAL CANNABIS PURCHASING AGE (SECTION 18-613), EMPLOYEE BADGES (SECTIONS 18-613 AND 40-8), MANUFACTURING PERMIT REQUIREMENTS (SECTION 40-8), AND ADMINISTRATION AND IMPLEMENTATION AMENDMENTS (SECTIONS 18-617.5, 40-1, 40-2, 40-5. 40-8. 40-9.1, AND 40-10) THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act further amended in 2016 as the Medical Cannabis Regulation and Safety Act which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. C. In November 2016, the voters of the State of California approved Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act. D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act. E. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. F. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. On March PI 11 B-1 20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, allowing and regulating commercial cannabis testing laboratories. G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and regulating commercial cannabis cultivation, distribution, and manufacturing activities. H. On November 6, 2018, the voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962), establishing a tax on commercial cannabis business activities except medicinal cannabis retail sales, which continue to be subject to taxes under Measure BB. I. The State of California continues to update its regulations on commercial cannabis business licensing, resulting in the need for local jurisdictions to update and amend local commercial cannabis ordinances from time to time. J. The City Council of the City of Santa Ana intends that nothing in this article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not cultivated, manufactured or distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. L. The City Council has held a duly noticed public hearing on August 20, 2019 in connection with consideration and adoption of this ordinance. Section 2. This Ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including but not limited to: Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 at seq.), the Medical Marijuana Regulation and Safety Act (AS 266, AB 243, and SB 643; hereafter "MMRSA"), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94; hereafter "MAUCRSA"). Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 4. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. 2 11 B-2 Section 5. Section 18-613 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-613. - Operating Standards. (a) At all times the collective is open, a collective shall provide at least one (1) security guard who is licensed, possesses a valid department of consumer affairs "security guard card", and has a valid Santa Ana Business License. In the event that the security guard is employed by an outside security guard company; such security guard company shall maintain a valid Santa Ana Business License. (b) The security guard and collective personnel shall monitor the site and the immediate vicinity of the site to assure that patrons immediately leave the site and not consume medical marijuana in the vicinity of the collective or on the property or in the parking lot. (c) Exterior signage shall comply with Article XI of Chapter 41. Interior signage or advertising may not be visible from the exterior. Collectives and dispensaries must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. (d) No recommendations from a doctor for medical marijuana shall be issued on -site. (e) There shall be no on -site sales of alcohol or tobacco products, and no on -site consumption of food, alcohol, tobacco or marijuana by patrons. (f) Hours of operation shall be limited to: 7:00 a.m. to 11:00 p.m. daily. No licensed dispensary/collective shall be open to the public between the hours of 11:01 p.m. and 6:59 a.m. of any day. (g) The property shall provide an air treatment system with sufficient odor absorbing ventilation and exhaust systems so that odor generated inside the location is not detected outside the building, anywhere on adjacent property or public rights -of - way, or within any other unit located within the same building as the collective if the use only occupies a portion of a building. (h) A collective shall only dispense medical marijuana to qualified patients and their caregivers as defined by California Health and Safety Code § 11362.5 (Proposition 215). This shall include possession of an original valid doctor's recommendation, not more than one (1) year old, for medical marijuana use by the patient. (1) A collective shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: (1) Use of medical marijuana shall be limited to the patient identified on the doctor's recommendation. Secondary sale, barter or distribution of medical marijuana is a crime and can lead to arrest. (2) That loitering on and around the collective site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume medical marijuana in the vicinity of the collective or on the property or in the parking lot. (3) Forgery of medical documents is a felony crime. (4) A warning that patrons may be subject to prosecution under federal marijuana laws. (5) That the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery. 11 B-3 Q) A collective shall not provide marijuana to any individual in an amount not consistent with personal medical use. (k) All agents, private security officers or other persons acting for or employed by a collective shall display a laminated identification badge at least two (2) inches by two (2) inches in size, issued by the City. The badge, at a minimum, shall include the employee's first and last name, date of most recent Live Scan, expiration date of Live Scan results after the one-year period, and a color photo of the employee that shows the full front of the employee's face. (1) No one under eighteen (18) years of age shall be permitted to enter establishment, unless such person is a qualified patient and is accompanied by his or her primary caregiver, licensed attending physician, parent(s) or documented legal guardian. (m) A collective shall provide the name and phone number of an on -site staff person to the police department and the code enforcement division of the planning and building agency for notification if there are operational problems with the establishment. (n) Each collective owner, operator(s) and employees shall complete a criminal background check and wear a visible photo ID at all times during operating hours. Owners, operator(s), employees, managers or volunteers may not have been convicted of, or pleaded guilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years; nor shall they be a person required to register as a controlled substance offender pursuant to Health and Safety Code section 11590. (o) Marijuana shall not be grown or cultivated at collective sites, except that cuttings of the marijuana plant may be kept or maintained on -site for distribution to qualified patients and primary caregivers as follows: (1) The cuttings shall not be utilized by a collective as a source for the provision of marijuana for consumption on -site, however, upon provision to a qualified patient or primary caregiver, that person may use the cuttings to cultivate marijuana plants off -site for their own use and they may also return marijuana from the resulting mature plant for distribution by the collective. (2) For the purposes of this paragraph, the term "cutting" shall mean a rootless piece cut from a marijuana plant, which is no more than six (6) inches in length, and which can be used to grow another plant in a different location. (p) A collective shall comply with applicable provisions of the California Health and Safety Code §§ 11362.5 through 11362.83, inclusive. (q) If food is distributed, the collective shall comply with all relevant state laws and city and/or county ordinances pertaining to the preparation, distribution and sale of food. (r) The location, interior and exterior, shall be monitored at all times by web -based closed-circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained for a period of not less than ninety (90) days. The police department may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the police department may seek a warrant or court order for the recordings. 11 B-4 (s) The location shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or the portion of the building where the collective is located shall contain a fire -proof safe or fire -proof filing cabinet and include a safety and security plan. (t) Reserved. (u) Reserved. (v) If the collective operator is not the owner of the property where the collective is to operate, the operator shall provide evidence that the property owner(s) consent to the operation of a collective on the property. (w) Collectives must obtain and maintain a valid city business license at all times as a condition for receiving, renewing, and maintaining their regulatory safety permit. (x) Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. Section 6. Section 18-617.5 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18.617.5. - Audits. Annual audits. No later than September 30w of every year, each collective shall file with the city an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the executive director of finance and management services, or his/her designee(s). Section 7. Section 40-1 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-1. — Purpose and intent. A. The purpose and intent of this article is to regulate commercial cannabis business activities, as defined in this article, in order to ensure the health, safety and welfare of the residents of the City of Santa Ana by establishing regulations necessary for commercial cannabis business operating in the City of Santa Ana to obtain and maintain a Regulatory Safety Permit ("RSP"). Any commercial cannabis businesses operating in the City of Santa Ana shall at all times be in compliance with current State Law and this article. All commercial cannabis facilities shall operate in accordance with the regulations in this article and with the conditions of approval associated with the applicable zone for the parcel of real property upon which the commercial cannabis activities are conducted. Any commercial cannabis business shall qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as provided by this article and operate only in a zone in compliance with Santa Ana Municipal Code before commencing with any commercial cannabis business activity. Any commercial cannabis business without a Regulatory Safety Permit is in violation of this article. The regulations in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code s 11 B-5 (collectively referred to as "State Law") do not interfere with the right to use adult -use cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize the possession of cannabis as authorized under State Law. B. Any person operating a medicinal marijuana collective/cooperative (as defined in Chapter 18 of this Code) as of December 14, 2017, or who has a RSP application pending to operate a medicinal collective/cooperative, and has met all of the requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for the sale of Adult -Use cannabis provided that they enter into the Commercial Cannabis Operating Agreement with the City. C, The Commercial Cannabis Operating Agreement shall be a legally binding written agreement between each commercial cannabis business operator and the City, executed by the City Manager, or his or her designee, and in a form and substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. A distinct Commercial Cannabis Operating Agreement shall be required for each location of commercial cannabis business activity taking place at an approved Commercial Cannabis Business. Section 8. Section 40-2 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-2. - Definitions. The definitions are incorporated herein as fully set forth and are applicable to this article. All definitions are intended to comply with those set forth by the State of California for all commercial cannabis business activities. 1. "Applicant' means a person who is required to file an application for a permit under this article, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of a commercial cannabis business. 2. "Adult -Use" means cannabis or cannabis products that are intended to be used for non -medicinal purposes by a person twenty-one (21) years of age or older. 3. "Adult -Use Cannabis Retailer Operating Agreement' or "Operating Agreement' means the agreement entered into by and between the City and the commercial cannabis business operator which will specify terms for local hiring and sourcing, community benefit plans, and fees to compensate for authorized impacts on City services. 4. "Adult -Use cannabis retail business" means an Adult -Use retail business that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use cannabis, or an Adult -Use cannabis product, except as related Business and 0 11 B-6 Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as amended from time to time, excepting medicinal cannabis retail. 5. "Authorized City of Santa Ana representative" means any police officer, city employee, contractor or agent of the city designated by the director of any city department which has the authority and responsibility to enforce provisions as set forth in this article. 6. "Business owner" means any of the following: a. A person with an aggregate ownership interest of twenty (20) percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. b. The chief executive officer of a nonprofit or other entity. c. A member of the board of directors of a nonprofit. d. An individual who will be participating in the direction, control, or management of the person applying for a license. 7. "Cannabis" or "cannabis product' means all parts of the Cannabis sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, 'cannabis" does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. 8. "City" means the City of Santa Ana, a charter city and municipal corporation. 9. "Commercial cannabis activity" means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for this Chapter. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of this Chapter. 10. "Commercial cannabis business" means a business that obtains a Regulatory Safety Permit and engages in the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, delivery, or sale of adult -use cannabis, 7 11 B-7 medicinal cannabis or an adult -use cannabis or medicinal cannabis product, except as related Business and Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as amended from time to time. 11. "Cultivation" means to plant, grow, harvest, dry, cure, grade or trim cannabis, as defined by California Business and Professional Code Section 26001, as amended from time to time. 12. "Customer" means a natural person twenty-one (21) years of age or over. 13. "Delivery" means the commercial transfer of cannabis or cannabis products from a retail cannabis business to a customer up to an amount determined to be authorized by the State of California, or any of its departments or divisions. "Delivery" also includes the use by a retail cannabis business of any technology platform owned, controlled, and/ or licensed by the retail cannabis business, or independently licensed by the State of California under the State law (as amended from time to time), that enables anyone to arrange for or facilitate the commercial transfer by a licensed retail cannabis business of cannabis or cannabis products. For the purposes of this article, "delivery" does not include distribution or purchase of cannabis from a licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed cannabis retail business. 14. "Delivery employee" means an individual employed by a licensed retail cannabis business who delivers cannabis goods from the permitted retail premises to a customer at a physical address. 15. "Display" means cannabis goods that are stored in the licensed retail business during the hours of operation. 16. "Distribution" means the procurement, sale, and transport of cannabis or cannabis products between Licensees. 17. "Edible cannabis product' means manufactured cannabis that is intended to be used, in whole or in part, for consumption. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. 18. "Free sample" means any amount of commercial cannabis goods provided to a purchaser of cannabis without cost or payment or exchange of any other thing of value. 19. "Labor Peace Agreement' means a legally binding agreement between an employer and a labor organization in which the employer agrees to remain neutral in the event its employees wish to unionize, as described more fully in Business and Professions Code 26001(x), as amended from time to time. 20. "License/Licensee" means a license issued by the State and includes both an A - license (Adult -Use) and an M-license (Medicinal), and the holder of such license. e 11 B-8 21. "Manufacturer" means a Licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. 22. "Manufacturing" means all aspects of the extraction and/or infusion processes, . including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, propagating, holding, or storing of components and ingredients. 23. "Medicinal cannabis patient' is a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 24. "Micro -Business" means a commercial cannabis business that cultivates cannabis on an area less than ten thousand (10,000) square feet and acts as a licensed distributor, Level 1 manufacturer, and retailer. 25. "Nursery" means a commercial cannabis Licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. 26. "Medicinal/medical cannabis" or "Medicinal cannabis product', means cannabis or a product containing cannabis, including, but not limited to, concentrates, and extractions, intended to be sold for use by medicinal cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. 27. "Outdoor cultivation" means the cultivation of cannabis outside a permanent enclosed building. Outdoor cultivation is prohibited within the City of Santa Ana. 28. "Ownership interest' means an interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of twenty (20) percent or more. 29. 'Package" and "Packaging" means any container or wrapper that may be used for enclosing or containing any cannabis goods for final retail sale. 'Package" and "packaging" does not include a shipping container or outer wrapping used solely for the transport of cannabis goods in bulk quantity to a Licensee. 30. 'Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. W 11 B-9 31. "Premises" means the designated structure(s) and land specified in the application that are in possession of and used by the applicant or Licensee to conduct the commercial cannabis activity. 32. "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code, as amended from time to time. 33. "Private Residence" shall have the same definition as that contained in Health and Safety Code section 11362.2(5) and also means a lawfully established structure, suitable for human occupancy as required by section 17922 and 17958 of the California Health and Safety Code. A recreational vehicle does not constitute a lawfully established structure for the purposes of this article. 34. "Private security officer' has the same meaning as that term as defined in the State of California Business and Professions Code section 7574.01. 35. "Purchase" means obtaining cannabis goods in exchange for consideration 36. "Purchaser" means a person who is engaged in a transaction with a Licensee for purposes of obtaining cannabis goods. 37. "Qualified patient" has the same meaning as such term is defined in California Health and Safety Code section 11362.5, as amended from time to time, and means a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 38. "Responsible person" means any of the following: a) A person who causes a Code violation to occur. b) A person who maintains or allows a Code violation to continue by way of his or her action or failure to act. c) A person whose agent, employee, or independent contractor causes a Code violation by its failure to act. d) A person who is the owner of, and/or a person who is a lessee or sub lessee with the current right of possession of, real property where property -related Code violation occurs. e) A person who is the on -site manager of a business who normally works daily at the site when the business is open and is responsible for the activities of such premises. 39. "Retail business" means a premises where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination for retail sale, including an establishment that delivers cannabis or cannabis products as part of a retail sale. 10 11 B-10 40. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to this article to a commercial cannabis business. 41. "Sell," "sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one (1) person to another, and includes the delivery of cannabis goods pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis goods by a Licensee to the Licensee from whom such cannabis goods were purchased. 42. "State" means the State of California. 43. "Testing Facility" or "Testing Laboratory" defined in the Business and Professions Code section 26001, as amended from time to time, means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: a) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and, b) Licensed by the Bureau of Cannabis Control. 44. "Wholesale" means the sale of cannabis goods to a distributor for resale to one (1) or more retail cannabis businesses. Section 9. Section 40-5 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-5. - Zoning compliance and regulatory safety permit requirements. Commercial cannabis activities are expressly prohibited in all zones in the City of Santa Ana; however, specific commercial cannabis businesses are allowed in the Industrial zoning districts (M-1, M-2). The allowed current permit types are described in Table 40- 5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a Regulatory Safety Permit. No commercial cannabis business may operate in the City of Santa Ana without a Regulatory Safety Permit. This Land Use Table 40-5 shall be used to determine whether a commercial cannabis business is permitted — "P", or not permitted — "X". Any commercial cannabis business in the City of Santa Ana shall also operate in compliance with the City's zoning ordinance. If a Zoning District is not listed in the Land Use Table in this section then the use is expressly not permitted. 11 11B-11 City of Santa Ana Municipal Code Table 40-5 _ Commercial Cannabis i Regulatory Business Land Use I , M-1 M-2 i Safety Activities Use Classification I Zone Zone Permit Type Required j Cultivator/Nursery Indoor only IP IP (Yes utdoor or mixed- Cultivator/Nurser) ,T6 9ht X !X NA Indoor/Outdoor Type 5 (Large land Cultivator/Nursery Grows, as defined amended by X ix NA j the State) I f Manufacturing Manufacturing P !P Yes Medicinal RetailT Retail (SAMC Chapterlp P Yes I I18) Retail Adult -Use Retail IP P Yes ! Adult -Use and/or'v Testing Laboratory Medicinal 1' P I P Yes Industrial �P Distribution Freight/Transport [P JYes P — only as part of i P — only as part !a jof a vertically - vertically- j ! linte ratedlco- integrated/co- g I .Cultivation/Retail/ located business ( located business in full Micro Business ,Manufacturing) in full; conformance Yes Distribution conformance with; the requirements) eituirements of', of this article and ith s article and Chapter 18. CChapter 18. 12 11 B-12 Section 10. Section 40-8 of Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 40-8. - General provisions for commercial cannabis activities in the City of Santa Ana. 1. Regulatory Safety Permit Required. a. Each commercial cannabis business shall obtain a Regulatory Safety Permit (RSP) specific to the business activity or activities defined by the State pertaining to that activity. The only allowed current activity types pursuant to this article are for commercial cannabis retail sales and cultivation, distribution, manufacturing, and testing laboratories/facilities. Co -location is permitted pursuant to Section 40- 9.3.1. b. It shall be unlawful for any person, as defined by this ordinance, to engage in, conduct or carry on, in or upon any premises within the City of Santa Ana any commercial cannabis business without a RSP. A commercial cannabis business shall register and obtain a RSP from the City of Santa Ana prior to operation. The RSP applicant shall pay an annual non-refundable application fee in an amount established by the City Council. c. A copy of the RSP shall be displayed at all times in a place visible to the public. d. A RSP shall be valid for a period of one (1) year from the date of issuance, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above -referenced period. 2. Maintenance of Records and Reporting. All records shall be maintained by the commercial cannabis business for a period of five (5) years and shall be made available by the commercial cannabis business to an authorized City of Santa Ana representative upon request. If they are not produced as requested, the City may seek a search warrant, subpoena, or court order. In addition to all other formats that the commercial cannabis business may maintain, these records shall be stored by the business at the location in a printed format in a fire -proof safe or filing cabinet. Any loss, damage or destruction of the records shall be reported to the Police Department within twenty-four (24) hours of the loss, destruction or damage. a. The business shall obtain and maintain a valid Seller's Permit from the State Board of Equalization. b. Financial records include, but are not limited to: bank statements, sales invoices, receipts, tax records, and all records required by the California State Board of Equalization under Title 18 California Code of Regulations section 1968. 13 11 B-13 c. Personnel records, including each employee's full name, address, phone number, social security, or individual tax payer identification number, date of beginning employment, and date of termination of employment if applicable. d. Training records, including, but not limited to, the content of the training provided and the names of the employees that received the training. e. Contracts with other businesses regarding commercial cannabis business activity. f. Permits, licenses, and other local authorizations to conduct the commercial cannabis business activity. g. Security records, as outlined in the Operational Standards for All Commercial Cannabis Business Activities. h. Proof of building ownership or landlord letter acknowledging business type. i. Proof of insurance. 3. Operational Standards for Ali Commercial Cannabis Business Activities. a. The location, interior and exterior, shall be monitored at all times by web - based closed circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained unaltered in a secure location for a period of not less than ninety (90) days. The Police Department may request the recordings in connection with an investigation. b. All controlled access areas, security rooms and all points of ingress/egress to limited access areas and all point of sale (POS) areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet. c. The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the police department or their designee on request. d. If applicable, the applicant shall conduct and pay for any required CEQA reviews and analyses, and pay for all costs, including those of the City, associated with project review under CEQA. e. Commercial cannabis businesses shall create and maintain an active account within the State's track and trace system prior to commencing any commercial cannabis retail activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within twenty-four (24) hours of the system being available. 14 11 B-14 f. No physical modification of the licensed premises is allowed without written prior permission by the City of Santa Ana and payment of any additional fees required by the City. g. Commercial cannabis business businesses shall provide adequate off-street parking and comply with the City of Santa Ana Municipal Code parking requirements in order to service customers without causing negative impact. h. The commercial cannabis business shall provide adequate disabled access parking per the requirements in the California Building Code. i. The commercial cannabis business shall minimize nuisances such as trash, litter, and graffiti. j. Any and all signage, packaging, and facilities shall not be "attractive", as it is defined by the State, to minors. k. Commercial cannabis business facilities shall be required to provide an air treatment system that ensures off -site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected outside the building, in any adjacent tenant suites, on adjacent properties or public rights -of -way, or within any other unit located within the same building as the facility if the use occupies only a portion of a building. I. The commercial cannabis business shall comply with all State regulations regarding: i. Testing, labeling and storage of all cannabis products. H. Use of appropriate weighing devices. iii. Electrical and plumbing regulations subject to periodic and unannounced inspections to ensure compliance. iv. State deadlines for applying for a State license and receiving a State license within six (6) months after the date the State begins issuing licenses. This may be waived if the State has longer delays in issuing licenses of the type the commercial cannabis business seeks. m. The commercial cannabis business shall maintain a comprehensive general liability combined single occurrence insurance policy issued by an "A" rated insurance carrier in an amount no less than two million dollars ($2,000,000.00), with primary coverage, naming the City of Santa Ana as additional insured. n. No free samples of any cannabis or cannabis product may be distributed at any time. 15 11B-15 o. All agents, private security officers or other persons acting for or employed by a collective shall display a laminated identification badge at least two (2) inches by two (2) inches in size, issued by the City. The badge, at a minimum, shall include the employee's first and last name, date of most recent Live Scan, expiration date of Live Scan results after the one-year period, and a color photo of the employee that shows the full front of the employee's face. p. All private security officers acting for or employed by a commercial cannabis business shall be licensed by the State and issued a business license from the City of Santa Ana. q. The commercial cannabis business shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or portion of the building where the business is located shall contain a fire -proof safe or fire proof filing cabinet and include a safety and security plan. r. The commercial cannabis business shall ensure a licensed alarm company operator or one (1) or more of its registered alarm agents installs, maintains, monitors and responds to the alarm system. The alarm company shall obtain a City of Santa Ana business license. S. The commercial cannabis business shall provide the name and phone number of an on -site staff person to the police department and the Code Enforcement Division of the Planning and Building Agency for notification if there are operational problems with the establishment. t. The commercial cannabis business must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining its regulatory safety permit. u. Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. v. For any commercial cannabis business with two (2) or more employees, the business owner shall attest that he/she has entered into a labor peace agreement and provide a copy of the agreement to the City. w. Each commercial cannabis business owner, operator(s) and employee(s) shall complete a criminal background check and wear a visible photo ID at all times during working hours. Owners, operators, employees, managers or volunteers may not have been convicted of, or pled guilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years; nor shall they be a person required to register as a controlled substance offender pursuant to Health and Safety Code section 11590. 16 11 B-16 x. All signage for the commercial cannabis business must comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. y. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. 4. Additional Operational Standards for Adult -Use Cannabis Retail Business. a. At all times the Adult -Use cannabis retail business is open, it shall provide at least one (1) private security guard who is licensed, possesses a valid Department of Consumer Affairs "security guard card", and has a valid business license from the City of Santa Ana. b. The private security guard and adult -use retail cannabis business personnel shall monitor the site and the immediate vicinity of the site to ensure that patrons immediately leave the site and do not consume cannabis in the vicinity of the retail business or on the property or in the parking lot. c. Exterior signage shall comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. Interior signage or advertising may not be visible from the exterior. Retail cannabis businesses must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. d. There shall be no on -site sales of alcohol or tobacco products, (excluding rolling papers and lighters) and no on -site consumption of food, alcohol or tobacco by patrons. e. Hours of operation shall be limited to: 7:00 a.m. to 10:00 p.m. daily. No licensed retail business shall be open to the public between the hours of 10:01 p.m. and 6:59 a.m. of any day. f. The Adult -Use cannabis retail business shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: I. Secondary sale, barter or distribution of adult -use cannabis is a crime and can lead to arrest. ii. That loitering on and around the retail site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume cannabis in the vicinity of the retail site or on the property or in the parking lot. Ill. A warning that patrons and/or employees may be subject to prosecution under federal cannabis laws. iv. That the use of cannabis may impair a person's ability to drive a motor vehicle or operate machinery. 17 11 B-17 g. No one under the age of twenty-one (21) shall be allowed to enter an Adult - Use cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use cannabis RSP issued by the City and retail license issued by the State, and the licensed premises for the adult -use cannabis license and medicinal cannabis license are the same in accordance with Business and Professions Code section 26140. h. If non -cannabis food is distributed, the retail business shall comply with all relevant State laws, County and City ordinances pertaining to the preparation, distribution and sale of food. i. All Adult -Use cannabis retail businesses shall establish and implement a program to incentivize the recycling of used containers. Failure to establish and implement a program to incentivize the recycling of used containers will result in a violation of the terms of the required commercial cannabis Operating Agreement requiring sustainable building or business practices. j. Adult -Use cannabis retail businesses shall also record on the video surveillance system point -of -sale areas and areas where cannabis goods are displayed for sale. k. Adequate signage shall clearly state who has inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location. I. Shipments of cannabis goods may only be accepted during regular business hours. m. Inventory shall be secured using a lockable storage system during non - business hours. n. No cannabis product shall be visible from the exterior of the business. o. All required labelling shall be maintained on all product, as required by State law, at all times. p. Educational tours of adult -use retail cannabis businesses shall be allowed. q. A permitted commercial cannabis retail business shall have one hundred eighty (180) days after permit issuance by the City of Santa Ana to operate. A permitted commercial cannabis retail business that ceases to operate for more than ninety (90) calendar days shall be deemed "abandoned" and the permit shall be forfeited. A permitted commercial cannabis business may temporarily suspend operations for a period of time as may be reasonably required to affect upgrades, modifications, repairs, or other property issue mitigations as approved by the Director of Planning and Building or his or her designee. For the purposes of this section, 'operate" shall mean that the gross receipts fees charged for the R-3 11 B-18 business exceed the fee per square foot calculations by the end of the one hundred eighty (180) day period. 5. Additional Operational Standards for Commercial Cannabis Retail Delivery Services. a. Commercial cannabis retail deliveries may be made only from a commercial cannabis retail business permitted by the City in compliance with this article, and in compliance with all State regulations. b. All employees who deliver cannabis shall have valid identification and a copy of the commercial cannabis retail business' Regulatory Safety Permit and State license at all times while making deliveries. c. All commercial cannabis retail businesses shall maintain proof of vehicle insurance for any and all vehicles being used to transport cannabis goods as required by State law. d. Deliveries may only take place during normal business hours of the commercial cannabis retail business. e. During delivery, the delivery employee shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers. The delivery request documentation shall comply with State law. f. A licensed delivery employee shall not leave the State of California while possessing cannabis products. g. A commercial cannabis retail business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State. h. A manifest with all information required in this section shall accompany any delivery person at all times during the delivery process and delivery hours. i. Any delivery method shall be made in compliance with State law, as amended, including use of a vehicle that has a dedicated GPS device for identifying the location of the vehicle (cell phones and tablets are not sufficient). j. Each delivery request shall have a receipt prepared by the commercial cannabis retail business with the following information: i. Name and address of the commercial cannabis retail business. ii. The name of the employee who delivered the order. iii. The date and time the delivery request was made. iv. The complete delivery addresses. ES:] 11 B-19 v. A detailed description of the cannabis goods requested for delivery including the weight or volume, or any accurate measure of the amount of cannabis goods requested. vi. The total amount paid for the delivery including any fees or taxes. k. At the time of the delivery, the date and time delivery was made, and the signature of the person who received the delivery. I. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement with the exception of a maximum four -inch by four -inch decal. m. Inspections by an authorized City of Santa Ana representative may be conducted anytime during regular business hours. 6. Additional Operational Standards for Commercial Cannabis Testing Facilities or Laboratories. a. A licensed cannabis testing facility or laboratory business, its owners and employees may not hold an interest in any other cannabis business except another testing laboratory business. b. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. c. Educational tours of cannabis testing facility/laboratory businesses shall be allowed. 7. Additional Operational Standards for Commercial Cannabis Manufacturing Facilities. a. A licensed commercial cannabis manufacturing facility may conduct all activities permitted by the State. This includes, but is not limited to: nen volatile extractions, repackaging and relabeling, infusions and extractions. b. Any manufacturing that will be conducted by the commercial cannabis business shall be included on the application. No additional manufacturing activity can be conducted without notifying the Executive Director of the Planning and Building Agency or his or her designee, after which a determination will be made if the new activity may commence with or without modification to the RSP or if a new RSP is required. c. At all times, the commercial cannabis manufacturing facility will be compliant with all State regulations for cannabis manufacturing including Health and Safety Code § 11362.775, as amended from time to time. Signage shall be posted regarding the type(s) of chemicals being used at the manufacturing facility. d. Cannabis manufacturing facilities shall not contain an exhibition or product sales area or allow for retail distribution of products at that location unless the PRE 11 B-20 facility is co -located with an approved commercial cannabis retail business with a RSP. e. Extraction equipment and extraction process utilizing hydrocarbon solvents shall be located in a room or area dedicated to extraction. f. All commercial cannabis manufacturing/processing facilities shall comply with any and all applicable safety guidelines adopted by the Orange County Fire Authority, the State of California, and/or the City of Santa Ana for cannabis plant processing and extraction. 8. Additional Operational Standards for Indoor Commercial Cannabis Cultivation Facilities. a. There shall be no exterior evidence of cannabis cultivation from a public right-of-way. b. The Building Official may require additional specific standards to meet the California Building Code and Fire Code, including but not limited to installation of fire suppression sprinklers. c. Compliance with Section 13149 of Water Code as enforced by the State Water Resources Control Board is required. d. All commercial cannabis cultivation facilities shall comply with any and all applicable safety guidelines adopted by the Orange County Fire Authority, the State of California, and/or the City of Santa Ana for cannabis carbon dioxide enrichment systems. e. Cannabis cultivation facilities shall not contain an exhibition or product sales area or allow for retail distribution of products at that location unless the facility is co -located with an approved commercial cannabis retail business with a RSP. 9. Additional Operational Standards for Commercial Cannabis Distribution Facilities. a. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. b. A distributor shall ensure that all cannabis goods stored in compliance with all applicable State regulations to ensure conformance to any and all applicable Track and Trace systems required by the State. c. Employee breakrooms, eating areas, changing facilities, locker rooms and bathrooms shall be completely separated from the storage areas. Section 10. Sections 40-9 and 40-9.1 of Article I of Chapter 40 of the Santa Ana Municipal Code are hereby amended to read in full as follows: 21 11 B-21 Sec. 40-9. - Commercial cannabis selection process. 2. Commercial Cannabis — Registration Application and Regulatory Safety Permit Required. a. Existing medicinal cannabis business operators, or those with pending applications for a medicinal RSP, who desire to operate an adult cannabis retail business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before December 14, 2017. The Director of Planning and Building shall review such application and issue the RSP, without consideration of the merit based point system, so long as they satisfy all other requirements of this article and Chapter 18. b. The Regulatory Safety Permit ("RSP") selection process will be conducted in two (2) phases, Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application). Registration Applications will be reviewed by the Director of Planning and Building or designees(s) for completeness and compliance, and if eligible, will be placed on the "Regulatory Safety Permit ("RSP") Eligibility List" and entered into the Phase 2 Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has established a merit based point system for commercial cannabis retail businesses to objectively award permits as described in the Regulatory Safety Permit Application. Phase 1— Registration Application. a. Following the adoption of this article, the Director of Planning and Building shall prepare commercial cannabis business registration application forms and a related administrative policy. Each commercial cannabis business interested in operating pursuant to this article may submit an application together with a non- refundable processing fee in an amount established by the City Council. b. The Registration Application period shall be thirty (30) calendar days from the date the applications are released. Following the application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 1. Each application that is complete and in compliance with the application requirements in Phase 1 shall be placed on the "RSP Eligibility List" and shall be notified in writing whether they are a "RSP Eligible Applicant" or not. Each applicant on the RSP Eligibility List may then choose to file an application for a RSP in Phase 2. c. The requirements for Phase 1 include, but are not limited to: I. All application documents required in the City's Phase 1 Registration Application package. ii. Application was submitted during the application period. iii. Application forms are filled out completely. iv. Phase 1 application fee is paid. v. A signed statement that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this 22 11 B-22 permit approval is issued. Additionally, the Building Official has determined that there are no notices of nuisance or other code compliance issues recorded or on the property. iv. The Planning Manager or designee has issued zoning clearance documenting compliance with the following: The use is permitted; All land use permits, if any, have been approved and all conditions of approval have been met or are in good standing; and, No zoning violations exist on the property. The Director of Planning and Building or his or her designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified that business day of the deficiencies. The applicant shall be given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period is applicable. 3.1 Commercial Cannabis — Registration Application and Regulatory Safety Permit for Additional Commercial Cannabis Business Activities on the Same Premises (Co - Location). a. An existing commercial cannabis business with an RSP may co -locate additional non -retail commercial cannabis business activities (cultivation, distribution, and/or manufacturing) by applying for a new RSP for the additional use(s). The new RSP must meet the all requirements of the Santa Ana Municipal Code except that background checks (live scans) shall only be required for any new staff as outlined in Section 40-8. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. b. New or pending RSP applicants wishing to co -locate additional non -retail (cultivation, distribution, and/or manufacturing) uses may submit a new RSP for any of the non -retail commercial cannabis business activities. The additional RSP must meet the all requirements of the RSP except that background checks (live scans) shall only be required for any new staff as outlined in Section 40-8. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. c. New commercial cannabis business applicants — co -location New commercial cannabis retail applicants wishing to co -locate additional non -retail (cultivation, distribution, and/or manufacturing) uses shall submit separate RSPs for the proposed retail activity and another RSP for any of the non -retail (cultivation, distribution, and/or manufacturing) commercial cannabis business activities. Each RSP application will be evaluated independently and must meet any applicable requirements of the RSP as outlined in Sections 40-8 and 40-9, including, but not limited to, merit evaluation and additional separation requirements for the retail RSP. A 24 11 B-23 single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. 2. New non -retail commercial cannabis applicants wishing to co -locate additional non -retail (cultivation, distribution, and/or manufacturing) uses may submit a single RSP for the proposed activity or activities. The RSP application must meet any applicable requirements of the RSP as outlined in Sections 40-8 and 40-9. A single RSP that lists any and all approved cannabis business activity/activities may be renewed annually thereafter. 4. Regulatory Safety Permit Annual Renewal. Applications for the renewal of a permit shall be filed with the Director of Planning and Building or designee(s) at least sixty (60) calendar days before the expiration of the current permit. Temporary permits will not be issued. Any permittee allowing their permit to lapse or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees and be subject to all aspects of the selection process. b. Any person desiring to obtain a renewal of their respective permit shall file a written application under penalty of perjury on the required form with the Director of Planning and Building or his or her designee(s) who will conduct a review. The application shall be accompanied by a nonrefundable filing fee established by the City Council to defray the cost of the review required by this article. An applicant shall be required to update the information contained in their original permit application and provide any new and/or additional information as may be reasonably required by the Director of Planning and Building or designee(s) in order to determine whether said permit should be renewed based on compliance with all applicable provisions of the Santa Ana Municipal Code. 5. Appeal of Denial of Regulatory Safety Permit/Denial of RSP Renewal. The City Manager or his or her designee(s) will review all Regulatory Safety Permit applications and renewal requests, along with all other relevant information, and determine if a RSP should be granted and/or renewed based on compliance with all applicable provisions of the Santa Ana Municipal Code. If the City Manager determines that the permit shall not be granted and/or renewed, the reasons for denial shall be provided in writing to the applicant. No such denial shall become effective until the applicant for the regulatory safety permit and/or renewal has been notified in writing by certified mail of the right to appeal the denial decision pursuant to the provisions of Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon decision of a hearing officer as provided for in Chapter 3 of the Santa Ana Municipal Code. Otherwise, the denial shall become effective after the timely appeal period has passed. The matter may be subject to judicial review under the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6. Sec. 40-9.1. - Non -retail commercial cannabis business (cultivation, manufacturing, distribution, and testing facility/laboratory) selection process. 25 11 B-24 1. Non -Retail Commercial Cannabis Businesses — Registration Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required. a. Every Non -Retail Commercial Cannabis Business shall apply for the Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application) in the manner described in Section 40-9, except that the Director of Planning and Building or his or her designee _may accept Phase 1 and Phase 2 applications for a Non -Retail Commercial Cannabis Business concurrently, and shall review such applications and issue the Regulatory Safety Permit Application without consideration of the merit based point system, insofar as the applications satisfy all other requirements of this article and Chapter 18. b. Applications for a Non -Retail Commercial Cannabis Business shall be accepted during normal City Hall business hours and are not subject to the thirty (30) day Phase 1 or Phase 2 application periods. Section 11. Sections 40-10 of Article I of Chapter 40 of the Santa Ana Municipal Code are hereby amended to read in full as follows: Sec. 40-10. - Audits. Annual audits. No later than September 30t' of every year, each licensed commercial cannabis business shall file with the City an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the Executive Director of Finance and Management Services, or his or her designee(s). Section 12. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. N N 010 11 B-25 ADOPTED this day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: Councilmembers: NOES: Cou ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 27 11 B-26 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT TO RECEIVE AND APPROPRIATE $23,760 FROM THE SOCAL WATER$MART PUBLIC AGENCY LANDSCAPE PROGRAM TO PURCHASE CENTRAL COMPUTER IRRIGATION CONTROLLERS FOR CENTENNIAL PARK (STRATEGIC PLAN NO. 6, 1) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO _ - FILE NUMBER CI MANAGER RECOMMENDED ACTION Approve an appropriation adjustment to receive $23,760 from the SoCal Water$mart Public Agency Landscape Program in the Miscellaneous income account and appropriate the same amount to the Parks, Recreations and Community Services Agency Operating Materials & Supplies Buildings/Grounds account to purchase central computer irrigation controllers for Centennial Park. DISCUSSION Funding for the SoCal Water$mart program is provided through a partnership between the Metropolitan Water District of Southern California (Metropolitan) and its 26 member agencies throughout Southern California. Their commitment to develop an affordable balance between supply and demand has made "finding" water a priority. To encourage agencies that have not already installed water -efficient landscape equipment to do so, SoCal Water$mart has unveiled the Public Agency Landscape (PAL) program, offering enhanced incentives paid up -front for public agencies to install water -efficient landscape devices at their facilities and on their grounds. Exhibit 1 describes the Terms and Conditions of this program. The City is proposing to install nine central computer irrigations controllers at Centennial Park. The project is approximately $25,000 and the incentive program would provide $23,760 in incentive funding. The incentive amount is $55 per station. The project would involve nine controllers with 48 stations per controller. The department's General Fund budget for maintenance covers the $1,300 difference between the cost and incentive. 20A-1 Appropriation Adjustment for incentive funding from the SoCal Water$mart Pubic Agency Landscape Program September 3, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets). FISCAL IMPACT Approve an appropriation adjustment as follows: Accounting Fund Accounting Unit, Account Fiscal Year Unit- Description Description Amount Account # FY 2019-20 01113002- General Fund- PRCSA-Miscellaneous $23,760 57990 Revenue Income 01113250- General Fund- PRCSA-Park Facilities, FY 2019-20 63200 Expenditure Operating Materials & $23,760 Supplies Building/Grounds After submittal of the application and review by the SoCal anticipates an incentive check in 4-6 weeks. The City will have issuance to purchase and install the controllers. If not installed v required to return the funds. Parks, Recreation and Community Services Agency Water$mart Program, the City 120 days from the date of check ithin 120 days, the City would be APPROVED AS TO FUNDS AND ACCOUNTS: Exhibit: 1. Application Terms and Conditions Kathryn Downs, CPA Executive Director -'"� Finance and Management Services Agency 20A-2 Terms and Conditions EXHIBIT 1 1. Applications (inventory of devices) for the Public Agency Landscape (PAL) program must be submitted to SoCal Water$mart and approved prior to the purchase and installation of your device(s). 2. Installations must be completed within 120 days from the issuance of the incentive. When installations are performed in phases, SoCalWater$mart payments would be paid out in stages. Phased installations require separate applications. If work is not completed within 120 days partnering public agency will be invoiced for the upfront funds provided and payment must be received within 30 days. 3. Annlications must be signed by the Director of Public Works, or an individual with an equivalent position approved by SoCal Water mart. Applications must include a business card for individual signing the application. Applications must provide two (2) separate contacts. Vendors cannot be provided as contacts. 4. Participation in the Public Agency Landscape program is limited to public agencies on a first come, first served basis while funding is available. The public agency must be within the Metropolitan Water District (Metropolitan) service area and must be approved by Metropolitan and its respective member agency. 5. Upon approval of the incentive application, up -front financial assistance is provided to the partnering public agency to purchase PAL Program approved water efficient devices. 6. Central Computer Irrigation Controllers (CCICs) must include functioning technology for automatic shutoff of broken heads, valves or pipes. 7. The partnering public agency is responsible for procurement of devices, installation, installation costs, and maintenance of devices. 8. The partnering public agency cannot receive additional rebates from the SoCal Water$mart rebate program for the same device that is being funded through the PAL program. 9. A service address previously rebated through Metropolitan regional or its water agency programs is not eligible to receive up- front incentives or another rebate for the same type of device. 10. A limit of $100,000 of Metropolitan funding applies per service address for every program year. 11. After completion of the installation, the partnering public agency will be required to submit sales receipts as proof of purchase. Receipts must include quantity, make and model of the device(s) installed. Reconciliation between the incentives funded, actual procurement, and proof of installation will take place. The partnering public agency will refund to Metropolitan any unspent funds within 30 days. 12. All devices for which an incentive is issued are subject to an on -site installation verification inspection. If device installation cannot be verified, the partnering public agency will reimburse the program for the funds received including all associated processing costs. Access to the funded device(s) must be provided. 13. Facilities using recycled water may not qualify. Call 1-888-376-3314 to confirm eligibility prior to application submittal. 14. The partnering public agency Tax information and/or Tax ID number must be provided in order to receive these incentives. This is in compliance with exemptions to the Federal Privacy Act of 1974, 42 UCS 405 (c)(2)(c). The Internal Revenue Service requires incentive or rebate program participants receiving $600 or more in rebates to receive an IRS Form 1099 unless exemptions apply. 15. Incentives or rebates are issued once per lifetime of the property for each eligible area. Sites may be subject to pre -inspection prior to issuance of rebate. 16. Neither Metropolitan nor your local water utility or Retail Water Purveyor, or their contractors or agents, makes any representation or warranty regarding the devices eligible for rebates or incentives under this program. By participating in the PAL program, the applicant agrees to waive and release Metropolitan, the Local Water Utility or Retail Water Purveyor, and their contractors or agents, from any and all claims and causes of action arising out of the purchase, installation or use of the devices purchased in connection with the Rebate program. Any claim you may have based upon any defect or failure of performance of a device purchased by you should be pursued with the manufacturer or distributor. 20A-3 20A-4 REQUEST FOR COUNCIL ACTION�� tl CITY COUNCIL MEETING DATE: - SEPTEMBER 3, 2019 TITLE: AUTHORIZE THE CITY MANAGER TO INITIATE A MEMBERSHIP WITH THE ASSOCIATION OF CALIFORNIA CITIES — ORANGE COUNTY AND APPROVE AN APPROPRIATION ADJUSTMENT OF $68,677 (STRATEGIC PLAN NOS. 1, THROUGH 7) CITY WMAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City Manager to initiate a membership with the Association of California Cities — Orange County. Approve an Appropriation Adjustment transferring $68,677 from General Fund Non - Departmental into the Legislative Accounting Unit. DISCUSSION The Association of California Cities — Orange County (ACC-OC) represents the interests of cities throughout the County of Orange. ACC-OC monitors state and federal legislative issues and provides education, information, legislative and advocacy services. Through training seminars and conferences, ACC-OC provides education and information on legislative and policy matters that may be of interest to the City. The membership dues are determined on a per capita basis and are due annually, each calendar year. As this membership is being entered into in September of 2019, the amount due now will be prorated to $17,169.00 for a 4-month membership. A subsequent payment of $51,508.00 will be due in January 2020 for calendar year 2020. At the Special Meeting of the Legislative Affairs, Ethics, Transparency & Communications Council Committee on July 29, 2019, the Committee expressed an interest in becoming a member of ACC- OC. As part of this association, the City will have the opportunity to act on policy and legislation, at a regional level. 20B-1 Approve Appropriation Adjustment and Authorize the City's Membership with the Association of California Cities — Orange County September 3, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet all seven goals and objectives of the strategic plan which include: 1) Community Safety; 2) Youth, Education, Recreation; 3) Economic Development; 4) City Financial Stability; 5) Community Health, Livability, Engagement and Sustainability; 6) Community Facilities and Infrastructure; and 7) Team Santa Ana. ENVIRONMENTAL IMPACT There are no environmental impacts associated with this action. FISCAL IMPACT Fund for this membership were budgeted in the Non -Departmental segment of the General Fund budget (01105015-62140). Staff requests approval of an appropriation adjustment of $68,677 to move the budget from the Non -Departmental segment to the Legislative accounting unit (01104012-62140), to be consistent with other city memberships. APPROVED AS TO FUNDS AND ACCOUNT: Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Summary of the Association of California Cities — Orange County 2. List of Member Cities 20B-2 EXHIBIT 1 Association of California Cities — Orange County (ACC-OC) The Association of California Cities — Orange County (ACC-OC) represents the interests of Orange County cities on regional public policy issues. The Association believes in education that empowers, policy development that is collaborative, and advocacy that is service orientated. The ACC-OC membership base consists of the cities of Orange County, dozens of local government special districts, businesses, non- profits and higher education institutions. The Association is governed by a Board of Directors and operates as a 501 c3. The organization was established in 2011 under the philosophy that Orange County cities need to have a collaborative voice on public policy issues impacting the community. ACC-OC believes in the process of facilitating dialogue that allows multiple stakeholders to develop solutions and solve problems that improve the quality of life for Orange County residents, while preserving the character and values of individual communities. This is evident through the work of the Association, which includes public employee public employer pension stabilization, homelessness, housing and economic development, and residential recovery reform — issues that transcend all thirty-four Orange County cities. ACC-OC not only provides a place to come together to solve problems and work collaboratively, but also offers a mechanism that supports regional efforts that create financial and operational efficiencies. PTO EXHIBIT 2 The Association of California Cities — Orange County (ACC-OC): Member Cities Aliso Viejo Anaheim Buena Park Costa Mesa Fountain Valley Fullerton Garden Grove Huntington Beach Irvine Laguna Beach Laguna Hills Lake Forest Mission Viejo Newport Beach Orange Placentia Stanton Tustin Villa Park Yorba Linda REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: AMEND THE BLANKET ORDER CONTRACT FOR CHAIN LINK FENCE RENTALS IN THE AMOUNT OF $118,400 WITH UNITED SITE SERVICES, INC. (SPECIFICATION NO. 16-069) (STRATEGIC PLAN NO. 5, 4) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to amend the annual amount of the blanket order contract with United Site Service, Inc. for citywide chain link fence rentals by $97,000 plus a 10 percent contingency for a new total annual amount not to exceed $235,400, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION Citywide agencies require temporary fencing to ensure public safety and reduce liability around City -owned properties on an as -needed basis. Fencing is rented on a monthly, six-month, or annual basis to provide immediate public safety and/or to protect properties. Since this contract was established, contract usage by multiple City departments, including Public Works, Community Development, Parks, Recreation & Community Services and the Police Department has increased due to an unforeseen number of upcoming projects, acquisition of additional properties, and Civic Center fencing. On September 20, 2016, City Council awarded a two-year contract to United Site Services, Inc., and Quality Fence Co., Inc. with provisions for three one-year renewals for citywide chain link fence rentals, in an annual aggregate amount not to exceed $67,000, which included $7,000 for portable restroom rentals. On July 5, 2017, City Council approved an amendment to contracts for a new total annual amount not to exceed $117,000 at the request of the Public Works Agency. As a result of the above -mentioned activities, the annual not -to -exceed amount allocated to the Public Works, Community Development, and Parks, Recreation & Community Services Agencies in the contract for United Site Services, Inc. will be exceeded. As such, staff recommends approval of the recommended action to allow continuous service through the end of the current contract term as well as the two subsequent renewal options. 22A-1 Amend Contract for Chain Link Fence Rentals September 3, 2019 Page 2 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 Funds for the additional annual amount of $118,400 are available in FY 2019-20 for a total amount of $235,400 and will be budgeted and made available in FY 2020-21, FY 2021-22, FY 2022-23 in the following accounts: Accounting Unit- Fund Account Unit, Account FY 19-20 FY 20-21 FY 21-22 FY 22-23 Account # Description JUL -JUN JUL - JUN JUL-JUN JUL - SEP 99217950- Tran Sys Imp Tran Sys Imp Aut Area B 62300 Aut Area B Tustin, Contract Services- $ 11,000 $ 11,000 $ 11,000 $ 3,667 Professional 03217663- Measure M- Measure M2 Competitive 66220 Street Street, Improvements $ 55,000 $ 55,000 $ 55,000 $ 18,333 Construction Other Than Building 03517660- New Transpo New Transpo Sys Impr 66220 Sys Impr Area Area F, Improvements $ 11,000 $ 11,000 $ 11,000 $ 3,667 F Other Than Building 05917663- Select Street HUTA 2103 Gas Tax, 66220 Construction Improvements Other Than $ 33,000 $ 33,000 $ 33,000 $ 11,000 Building Public Works - 06817640- Sanitation Environment/Sanitation, $ 27,500 $ 27,500 $ 27,500 $ 9,167 62300 Fund Contract Services - Professional 06017640 - Water Water Utility Water Prod & 62300 Revenue Supply, Contract Services $ 27,500 $ 27,500 $ 27,500 $ 9,167 - Professional 01113250 - PRCSA - Park Facilities, 62320 General Fund Maintenance & Repair $ 22,000 $ 22,000 $ 22,000 $ 7,333 Buildings & Ground 01113230 - PRCA Recreation & 62300 General Fund Comm Service, Contract $ 22,000 $ 22,000 $ 22,000 $ 7,333 Services - Professional 60718810 - Housing Asset Housing Asset Admin, 62300 LMIHF Contract Services - $ 9,900 $ 9,900 $ 9,900 $ 3,300 Professional 01114403 - Building & Facility, 62300 General Fund Contract Services - $ 16,500 $ 16,500 $ 16,500 $ 5,500 Professional Total $ 235,400 $ 235,400 $ 235,400 $ 78,467 22A-2 Amend Contract for Chain Link Fence Rentals September 3, 2019 Page 3 Fuad S. lWeiss, PE, PLS Public Wgks Agency Lis dloff Executive Director Parks, Recreation & Community Services Agency Steven Mendoza Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA 9� k Executive Director Finance and Management Services Agency 22A-3 22A-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 3, 2019 TITLE: APPROVED AWARD A BLANKET ORDER ❑ As Recommended CONTRACT IN THE AMOUNT NOT [I El ElOOrdinance on Reading TO EXCEED $240 120 TO CESAR Ordinance on ° Reading ❑2n VARGAS AND ASSOCIATES FOR ❑ Implementing Resolution TRANSLATION SERVICES ❑ Set Public Hearing For (SPECIFICATION NO. 19-086) (STRATEGIC PLAN NO. 5, 1) CONTINUED TO FILE NUMBER CI ANAGER RECOMMENDED ACTION Award a blanket order contract to Cesar Vargas and Associates for translation services for a one- year period beginning September 3, 2019, and expiring on September 2, 2020 in an amount not to exceed $63,780 for the first year, with provisions for three one-year renewals exercisable by the City Manager, in an annual amount not to exceed $58,780, for a total amount not to exceed $240,120, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION Since 2005, the City has contracted with Cesar Vargas and Associates for translation services for various meetings including but not limited to: City Council meetings and for translation of other City Council related materials, including the Five -Year Strategic Plan, Sunshine and Sanctuary Ordinances along with other community outreach meeting and notifications. On June 20, 2017, the Clerk of the Council has entered into a separate agreement with Cesar Vargas and Associates to provide interpretation and translation services for City Council meetings, election -related materials in various languages per legal requirements, and translation of flyers in various languages per legal requirements. Oral Translations Translation services are utilized throughout the city for use in various platforms. Oral translation services are provided at all public meetings including but not limited to the following: • City Council • Santa Ana Police Department Public Safety • Code Enforcement • Neighborhood Empowerment Council Committee • Economic Development 22B-1 Award Contract for Translation Services September 3, 2019 Page 2 • Economic Development, Infrastructure, Budget and Technology Council Committee • Measure X Oversight Meetings • Housing Authority • Successor Agency Written Translation Services are also utilized to translate election -related materials, legal publications, PowerPoint presentations, Question & Answer translations for various meetings including Community Budget Hearings held annually, and citywide outreach efforts. Furthermore, the Community Development Agency may also utilize translation services for programs funded by the federal government that must comply with Limited English Proficiency requirements. Written translation services are also necessary for public notices such as the translation of water related flyers, pass through and 218 type notices into both Spanish & Vietnamese provided by the Public Works Water Resources Division. The Human Resources Department requires the written translation of various documents that are distributed to the workforce and the community such as policies and the Volunteer Handbook. Additionally, Treasury & Customer Services uses translation and interpretation services for the following divisions: Municipal Utilities, Business Tax, Dog License, and Treasury services. These divisions require translation and interpretation services of applications, forms, flyers, inserts, notices, and web publications. SB998 (new restrictions on residential water services) was approved by the State and will go into effect next year; many Municipal Utility forms will need to be updated and translated as well. Providing information to the community in various languages is necessary and ensures that information is relayed and made available to the diverse population within the City of Santa Ana. The consultant has agreed to maintain the current rate for the next three years, which has not been increased since 2014. The current rate of $95.00 per hour continues to be very competitive and will allow for continuity of institutional knowledge by Dr. Vargas and his professional team of translators. Staff recommends that the City continue with current provider who has performed with a high degree of professionalism for the past 14 years. STRATEGIC PLAN ALIGNMENT Approval of this agreement allows us to meet Goal # 5. Community Health, Livability, Engagement & Sustainability, Priority # 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 Funds in the amount of $53,147 will be available for FY 2019-20 as follows 22B-2 Award Contract for Translation Services September 3, 2019 Page 3 Fiscal Year Accounting Fund Account Unit, Amount Unit- Account# Description Account Description FY 2019-20 01110100-62300 General Fund Fin/Mgmt Svs — Management & Su t $12,500 Treasury & Customer FY 2019-20 01110130-62300 General Fund Service; Contract $12,500 Services -Professional Housing Housing Authority- FY 2019-20 14018760-62300 Authority- Voucher Admin $4,166 Voucher Admin Community Community FY 2019-20 13518780-62300 Dev Block Development Admin $2,083 Grant FY 2019-20 13018780-62300 Home Program Federal Grant- Home $2,083 Federal Grant Program FY 2019-20 01109050-62300 General Fund Human Resources $8,333 Services FY 2019-20 06017645-62300 Water Revenue Water Admin/Engineering $4,166 FY 2019-20 10117601-62300 Admin Services Public Works- Admin $2,500 Services FY 2019-20 01103010-62300 General Fund City Manager $2,083 Office of the Chief of FY 2019-20 01114400-62300 Police Police — Contract $2,733 Department Services Professional Total $63,147 Funds in the amount of $58,780 each year, for FY 2020-21, FY 2021-22 & FY 2022-23 will be included in the proposed budgets as appropriate. Fiscal Year Accounting Fund Account Unit, Amount Unit- Account# Description Account Description ANNUAL 01110100-62300 General Fund Fin/Mgmt Svs — $15,000 Management & Su t Treasury & Customer ANNUAL 01110130-62300 General Fund Service; Contract $15,000 Services -Professional Housing Housing Authority - ANNUAL 14018760-62300 Authority Voucher Admin $5,000 Voucher Admin ANNUAL 13518780-62300 Community Dev Community $2,500 Block Grant Development Admin 22B-3 Award Contract for Translation Services September 3, 2019 Page 4 ANNUAL 13018780-62300 Home Program Federal Grant- Home $2,500 Federal Grant Program ANNUAL 01109050-62300 General Fund Human Resources Services $5,000 ANNUAL 06017645-62300 Water Revenue Water Admin/Engineering $5,000 ANNUAL 10117601-62300 Admin Services Public Works- Admin $3,000 Services ANNUAL 01103010-62300 General Fund City Manager $2,500 Office of the Chief of ANNUAL 01114400-62300 Police Police — Contract $3,280 Department Services Professional Total $58,780 The remaining amount of $10,633 will be budgeted and made available for FY 2023-24 will be included in the proposed budget as follows: Fiscal Year Accounting Fund Account Unit, Amount Unit- Account# Description Account Description FY 2023-24 01110100-62300 General Fund Fin/Mgmt Svs — $2,500 Management & Su t Treasury & Customer FY 2023-24 01110130-62300 General Fund Service; Contract $2,500 Services -Professional Housing Housing Authority- FY 2023-24 14018760-62300 Authority- Voucher Admin $833 Voucher Admin Community Dev Community FY 2023-24 13518780-62300 Block Grant Development $416 Administration FY 2023-24 13018780-62300 Home Program Federal Grant- Home $416 Federal Grant Program FY 2023-24 01109050-62300 General Fund Human Resources $1,666 Services FY 2023-24 06017645-62300 Water Revenue Water $836 Admin/Engineering FY 2023-24 10117601-62300 Admin Services Public Works- Admin $503 Services FY 2023-24 01103010-62300 General Fund City Manager $416 Office of the Chief of FY 2023-24 01114400-62300 Police Police — Contract $547 Department Services Professional Total $10,633 22B-4 Award Contract for Translation Services September 3, 2019 Page 5 a entin Chief of Police Santa Ana Police Department APPROVED AS TO FUNDS AND ACCOUNTS: Director svv' Finance 4nd Management Services Agency tff Steven Mendoza Steven P m Executive Director Executive irectoi Development Agency Executi a Director Public Works Agency Human Resources Department 22B-5 r- •. REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: AUTHORIZE A BUDGET REALLOCATION AND AWARD A CONSTRUCTION CONTRACT TO ARAMEXX CONSTRUCTION IN THE AMOUNT OF $2,856,418, FOR THE CIVIC CENTER BIKE BOULEVARD AND SAFE ROUTES TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL PROJECT ESTIMATED PROJECT COST: $3,383,000 (PROJECT NOS. 17-6801 & 17-6886) (STRATEGIC PLAN NOS. 6, 1C & 1G) CITYQANAGER 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 Authorize the reallocation of $65,000 in unspent Fiscal Year 2018-19 Measure M2 Local Fairshare Funds from Local Preventative Maintenance FY 17/18 Project (Project #18-6907) to the Safe Routes to School Enhancements for Sepulveda Elementary School Project (Project #17-6886). 2. Award a contract to Aramexx Construction, the lowest responsible bidder, in accordance with the base bid in the amount of $2,856,418, for construction of the Civic Center Bike Boulevard and Safe Routes to School Enhancements for Sepulveda Elementary School Project, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney. 3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,383,000, which includes $2,856,418 for the construction contract; $226,422 for contract administration, inspection and testing; and a $300,160 project contingency (approximately 10% of the construction contract amount), funded by Active Transportation Program Cycle 2 Funds. 23A-1 Award Contract to Aramexx Construction Civic Center Bike Boulevard and Safe Routes to School Enhancements for Sepulveda Elementary School Projects September 3, 2019 Page 2 DISCUSSION The Civic Center Bike Boulevard Project is the result of a collaborative community effort in the development of the Complete Streets Plan for Downtown Santa Ana. Extensive community outreach was performed with a primary objective to improve safety and mobility for pedestrian and bicyclists. The plan resulted in a number of pre -identified projects ready for grant consideration. Complete Streets transform roadways originally designed to primarily serve vehicles into streets which equally serve pedestrian and bicyclists, provide aesthetically pleasing public areas, and result in community enhancements that help to establish vibrant neighborhoods. The Civic Center Bike Boulevard stretches along Civic Center Boulevard from Broadway to Santiago (Exhibit 1 and as shown below) connecting Downtown Santa Ana via the Lacy, Logan, and French Park neighborhoods to the Santa Ana Regional Transportation Center. The improvement consists of four neighborhood traffic circles/mini roundabouts at the intersections of Minter Street, Lacy Street, Garfield Street, and Poinsettia Street. Safety and aesthetic features include 10 new curb bulb -out extensions, 64 new curb ramps, 30 shortened crosswalks, and a new crossing at French Street. In addition, the work will provide updated signs, striping, and markings in the corridor, and an added protected left -turn arrow signal modification at intersection of Main Street and Civic Center Drive. 23A-2 Award Contract to Aramexx Construction Civic Center Bike Boulevard and Safe Routes to School Enhancements for Sepulveda Elementary School Projects September 3, 2019 Page 3 The recommended construction contract will also install traffic safety enhancements on city streets adjacent to Sepulveda Elementary School. The improvements include replacement of sidewalk, curb ramps, curb & gutter, driveway approach, and bulb -outs on Poplar Street at Occidental Street and St. Andrew Place to narrow the street. Both projects are funded by the Active Transportation Program: $3,063,000 for Civic Center Boulevard and $255,000 for Sepulveda Safe Routes to School. Construction funding was budgeted and approved for expenditure in the Fiscal Year 2018-19 Capital Improvement Program (CIP) budget. In May 2019, staff received authorization from the granting agency to proceed with construction. Since the design was completed with community guidance, a joint meeting with Lacy, Logan, French Court, and French Park neighborhoods was held on June 11, 2019, to ensure continued support and to update the public on the project status. Public Outreach and Contractor Participation To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register newspaper on July 19 and 24, 2019. Bids were received electronically via the City's web -based electronic bidding system, PlanetBids, on August 7, 2019. Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, download contract documents, receive project updates, and submit bids electronically. A total of 337 vendors, including 10 located in the City of Santa Ana, were notified of the project via PlanetBids. 43 vendors requested bidding documents and 5 bids were received. No bid was received from a Santa Ana contractor. Bid Results Summary RANK BIDDER'S NAME LOCATION BASE BID 1 Aramexx Construction Claremont $2,856,418 2 EBS General Engineering Inc. Corona $3,056,211 3 Excel Paving Co. Long Beach $3,094,876 4 S&H Civilworks Riverside $3,080,320 5 R.J. Noble Company Orange $3,244,271 All 5 bids were responsive, and Aramexx Construction submitted the lowest responsive bid in the amount of $2,856,418 (Exhibit 2). Based on the bid analysis and a contractor's reference check, staff recommends awarding the construction contract to Aramexx Construction in the amount bid (Exhibit 3). 23A-3 Award Contract to Aramexx Construction Civic Center Bike Boulevard and Safe Routes to School Enhancements for Sepulveda Elementary School Projects September 3, 2019 Page 4 Project Delivery To deliver a complete project, in addition to the construction contract awarded to the lowest responsible bidder, the estimated total construction delivery cost of the project includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management; implementation of the City's Community Workforce Agreement requirements; inspection of the Contractor's work to ensure contract compliance, workmanship, and quality; and material testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project including the construction costs is $3,383,000. Construction Contract 1 $2,856,418 Construction Administration, Inspection, and Testing $226,422 Contingencies 1 $300,160 ESTIMATED CONSTRUCTION DELIVERY COST 1 $3,383,000 These amounts will cover all staffing costs for delivery of this capital project and no additional funding will be used. 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) and Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment Plan). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2017-59 and ER-2017- 66 were filed for the project. 23A-4 Award Contract to Aramexx Construction Civic Center Bike Boulevard and Safe Routes to School Enhancements for Sepulveda Elementary School Projects September 3, 2019 Page 5 FISCAL IMPACT As indicated in the Cost Analysis (Exhibit 4), the estimated total construction delivery cost of the project is $3,383,000, which includes the construction contract, contract administration, inspection, testing, and project contingency. The following table summarizes the funds budgeted to deliver construction of this project: Fiscal Year Accounting Unit- Fund Accounting Unit, Amount Account # Description Account Description FY 2019- Traffic System Active Transportation 20 Jul 14817 Management Program, Improvement $3,063,000 June -6801)220 (176801) Grant Other ThanBuilding FY 2019- Traffic System Active Transportation 20 July - 14817613-66220 Management Program, Improvement $255,000 June (17-6886) Grant Other Than Building Measure M2 Local FY 2019- 20 July - 03217662-66220 Measure M2 Select Street Fairshare Fund, $65,000 June (17-6886) Construction Improvement Other Than Building Total: $3,383,000 All Funds are scheduled for expenditure in Fiscal Year 2019-20. 12 Fuad S. Pweiss, PE, PLS Executiv Director Public W rks Agency FSS/EWG/TC Exhibits: 1. Location Map 2. Bid Proposal 3. Construction Contract 4. Cost Analysis APPROVED AS TO FUNDS & ACCOUNTS: /4- Kathryn Downs, CPA Executive Director Finance and Management Services Agency 23A-5 23A-6 l Exhibit 1 SANTA ANA Project Nos. 19-6941 & 19-6617: P% CIVIC CENTER BIKE BOULEVARD AND SAFE It WA ROUTES TO SCHOOL ENHANCEMENTS FOR VUBLC WOFMSiOBN`Y SEPULVEDA ELEMENTARY SCHOOL 23A-7 23A-8 City of Santa Ana Page 1 REBID: Project 17.6801 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL PdMed 08/07/2019 EXHIBIT 2 Bid Results Bidder Details Vendor Name AremexxConstruction Address 532 W First St Unit 202 Claremont, CA 91711 United States Respondee Salim Samour Respondee Title President Phone 909.748-8066 EA. Email Info@aramexxgroupinc.com Vendor Typo License # CA DIR Bid Detail Bid Format Electronic Submitted August 7, 2019 1:51:11 PM (Pacific) Delivery Method Bid Responsive Bid Status Submitted Confirmation # 185677 Ranking 0 Respondee Comment Buyer Comment Attachments File Title File Name File Type Proposal -Santa Ana Proposal- Santa Ana.pdf General Attachments Ownership Affidavit Ownership Affidavit.pdf Ownership Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Bid Bond Bid Bond.pdf Bid Bond Guaranty (Notary Public) - REQ Original Hard Copy Submittal In Addition Nan-Colluslon Affidavit Non -Collusion Aftidavitpdf Non -Collusion Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Line Items Type Item Code UCM oty Unit Pdcs Line Total Comment Base Bid Items 1 Unclassified Excavation' CY 4750 2 AC Pavement' TN 4850 $130.00 $817,500.00 $104.00 $504,400.00 PlanetBids, Inc. 23A-9 City of Santa Ana Page 2 REBID: Project 17.6801 CIVIC CENTER BIKE BLVD & Project 17.6886 SEPULVEDA SAFE ROUTES TO SCHOOL Panted 08/07/2010 Bid Results Type Item Code UOM Oty Unit Price Line Total Comment 3 Cold Mllling• SF 3200 $2.00 $6,400.00 4 Construct PCC Sidewalk (T=4")" SF 37800 $6.00 $226,800.00 5 Construct PCC Driveway (T=8)• SF 2600 $9.00 $23,400.00 6 Construct PCC Curb Ramp* SF 17800 $9.00 $160,200.00 7 Construct PCC Curb and Gutter (Type A-2-6) ,. ..._._.._..... LF ._._..._..._...._.__...._._,.,.....__._......,......_.......-_...____..__._..._.....,.... 4900 $34.00 $166,600.00 8 Construct PCC Curb only (8-1)' _._.._....... —...... __..... „.._..... LF Soo $19.00 $9.500.00 9 Construct PCC Cross Gutter (Local)' SF 7000 $12.00 $84.000.00 10 Construct Bus Pad (including Reber Dowels as -needed)' SF .., ,. woo $23.00 $128,800.00 14 Construct PCC Modified Curb (Traffic Circle)* ... .....__..__._..,..........._.._..__... _._..__...._-.,....._.__...--_._ _...._... SF 880 $23.00 $20,240.00 .-12 Construct Color Stamped Concrete including rebar (T=10')" SF 600 $20.00 $16,000.00 13 Root Shave EA 8 $400.00 $2.400.00 14 Adjust Manhole Frame and Cover to Grade EA 9 $1,600.00 $14,400.00 15 Adjust Water Valve Frame and Cover to Grade EA 27 $450.00 $12,150.00 16 Fumish and Install New Fire Hydrant EA 4 $12,000.00 $48,000.00 17 Abandon Water Valve EA 4 $3,500.00 $14.000.00 18 Fumish and Install New Water Meter Box and Cover to Grade EA 6 $500.00 $2.500.00 PlanetBlds, Inc. 23A-10 City of Santa Ana Page 3 REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL Pdnted O O72019 Bid Results Typo Rem Code uoM City unit Price Line Total Comment 19 Remove Fire Hydrant and Assembly EA 4 $5,000.00 $20,000.00 20 Furnish and Install Paadcway Culvert EA 1 $11.000.00 $11.000.00 21 Construct Catch Basin (1-4.5',V=2� Including Local Depression EA 1 $9.000.00 $9,000.00 22 Furnish and Install Reinforeced Concrete Pipe (12" Diameter) LF 8 $700.00 $5,600.00 23 Construct Concrete Collar EA 1 $4,000.00 $4.000.00 24 Irrigation Us 1 $242.000.00 $242,000.00 25 Landscaping LS 1 $42,000.00 $42,000.00 26 60 WorMng Days Landscaping Maintenance LS 1 $1,900.00 $1,900.00 27 Traffic Signal Modifications at Civic Center Or and Main St LS 1 $126.000.00 $126,000.00 .28 Video Detedon System at Civic Center Or and Maln St LS 1 $45,000.00 $46.000.00 29 GTT Opticorn EVP GPS System at Civic Center Dr and Main St LS 1 $16,000.00 $16,0O0.00 30 Install 2" PVC Conduit per plan LF 105 $30.00 $3,150.00 31 Install 3" PVC Conduit per plan LF 75 $40.00 $3,000.00 32 Install 40 PVC Conduit per plan LF 375 $50.00 $18.750.00 33 Install No. 6 Pull Box EA 7 $700.00 $4,900.00 34 Install N40 Pull Box per plan EA 1 $1200.00 $1,200A0 PlanetBids, Inc. 23A-11 City of Santa Ana Page 4 REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed 08/072019 Bid Results Type Item Code U0M 0ty Unit Price Una Total Comment 35 Type E Traffic Loop Detector EA 50 $270.00 $13,500.00 36 Type D TrafBc Loop Detector ......_..w„__.....,....__,,....._...._ EA ..:......... ....._.... 16 ........ .... .... $300.00 ,.... .....,.,_._._....----- $4,800.00 37 Fusion Splice 1 Strand SMFO .,_,._...._......... .,.-._..__..,_..___.�._.....,__ L8 12 $44.00 $628,00 38 IP Communication System at Civic Center Dr and Main St LS 1 $7,800.00 $7,800.00 39 Temporary Overhead Wiring at Civic Center Dr and Main St LS 1 $11,000.00 $11,000.00 40 Signing and Striping (Project 17-6801) .__. _... ..._. __.._.,-.___. LS ,,.,,........ .._._-_..._...........__.._.. 1 $160,000.00 ............._......_...__..._.........._.._......._..__.._.___�.,.._.-........,.... $160,000.00 41 Signing and Striping (Project 17-6886) ._...,....,_...__._._.._........_�....,........,_._„..____...-....._..,......._,_........_.._....._..,:.__.,......_..._. LS 1 $9.000.00 $9,Oo0.00 42 Project Advertisement Sign ign .._._._..______.. _.... _.._ EA ...... ........ 2 __..._........... $1,000.00 ....._._.,_......._..._._..-.__...— $2,000.00 43 Relocate Rectangular Rapid Flashing Beacons -......,.. EA 1 $2,000.00 $2.000.00 44- Remove Man Arm, Pole and Foundation EA 1 $6,000.00 $6.000.00 45 Install Rectangular Rapid Flashing Beacons EA 1 $7,000,00 $7,000.00 46 Labor Agreement Oversight ...... _... ... ....... ..__...... _._.,,...__......._... LS ...... .. .. 1 ._,.:........ .,._,. $10,000.00 ..... .._...._. $10.000.00 47 Remove Interfacing AC Pipe and Replace vilth PVC Pipe complete in Place .... .. .. ..... .. ......... _. .,.. . LF 60 $200.00 $12,000.00 Subtotal $2,856,418.00 ADD ALTERNATIVE ONE 48 Unclassified Excavation' CY 110 $150.00 $16.600.00 49 AC Pavement* TN 110 $120.00 $13,200.00 PlanetBids, Inc. 23A-12 City of Santa Ana I Page 6 REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17-8886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed 08107/2019 Bid Results i Type Item Code 110M City Unit Price Llna Total Comment 50 Construct PCC Sidewalk (T=4")" _ SF 1700 $10.00 $17.000.00 51 Construct PCC Curb Ramp* I SF 1500 $15.00 $22,500.00 52 Construct PCC Curb and Gutter (Type A-2.6)" LF 300 $39.00 $11.700.00 53 Traffic Signal Moditication at Civic Center Or and Sycamore St LS 1 $30.000.00 $30,000.00 54 Install 2" PVC Conduit per plan LF 110 $40.00 $4,400.00 55 Install 3" PVC Conduit per plan LF so $50.00 $2,500.00 56 Install No. 6 Pull Box" EA 7 $1,000.go $7,000.00 Subtotal $124,800.00 ADD ALTERNATIVE TWO 57 Unclassl0ed Excavation' CY 160 $150.00 $24.000.00 58 AC Pavement" "" TN 160 $120.00 $18.000.00 59 Construct PCC Sidewalk (T=,Vr SF 3500 $10.00 $35,000.00 60 VConstruct PCC Curb Ramp' SF 1B00 $15.00 $27,000.00 61 Construct PCC Curb and Gutter (Type A-2.6)• LF 400 $39.00 $15,600.00 62 Traffic Signal Modification at Civic Center Dr and Bush St LS 1 $30,000.00 $30,000.00 63 Install 2" PVC Conduit per plan LF 85 $40.00 $3,400.00 64 Install 3" PVC Conduit per plan LF 25 $50.00 $1,250.00 PlanetBlds, Inc. 23A-13 City of Santa Ana Page 6 REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17.8886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed O8/0712019 Bld Results Type Rem Code UOM Cry Unit Price Line Total Comment 65 Install No. 6 Pull Box' EA 6 $1,000.00 $6,000.00 _..__........ ..... ... ._- Subtotal $160,250.00 Asterisk Notes (Per Section 3-2 of Standard Specifications) - NOT part of Total Bid Calculation 66 . = The quantity, for this bid Item Is shown for bid comparlson only. This bid Rem shall not be subject to the "25%" Ilmlt as stated In Section 3.2 of the Standard Specifications. 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 quantl6y used, and the Agency reserves the right to Increase or decrease the quantity of this item accordingly. ea 6 0 a 67 t = This bid Item Is considered a Specialty Item per Section 2-3.2 of the Standard Spedficatlons. as 0 0 0 Subtotal 0 Total $3,141,488.00 PlanetBids, Inc. 23A-14 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) BID PROPOSAL TO: CITY COUNCIL OF THE CITY OF SANTA ANA FROM: Aramexx Group 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 I Unclassified Excavation* 4,750 CY $ S \3O . oU (ol�,Soo• 2 AC Pavement* 4,850 TN S S tO4 o0 504 4 00 3 Cold Milling* 3,200 SF S $ Z.Oo lo�4Uo.o� 4 Construct PCC Sidewalk (T=4")* 37,800 SF S S U-60 ?ILU. b00 5 Construct PCC Driveway (T=8")* 2,600 SF S S q. o0 23,yOo 6 Construct PCC Curb Ramp* 17,800 SF S S q.00 \U017-00 7 Construct PCC Curb and Gutter 4,900 LF S $ (Type A-2-6)* 39 . OD 1kA - U OU 8 Construct PCC Curb only (B-1)* 500 LF $ �� � $ 500 .00 q, 9 Construct PCC Cross Gutter 7,000 SF S S (Local)* I'2 . W y , 00 o 10 Construct Bus Pad(including 5,600 SF $ $ Rebar Dowels as -needed)* 23. Ob t Llb , Q 00 11 Construct PCC Modified 880 SF S S Curb(Traffic Circle)* 1 13.00 20, zy 0 12 Construct Color Stamped Concrete 800 SF S $ including rebar (T=10")* 20 .00 JU , 000 13 Root Shave 6 EA S S y0U 2,t_j0b P-1 of P-19 23A-15 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) Item Description Qty Unit Unit Price Amount 14 Adjust Manhole Frame and Cover 9 EA S S to Grade f I l bo l4,40o 15 Adjust Water Valve Frame and 27 EA $ LIS O $ Cover to Grade 12 t S o 16 Furnish and Install New Fire 4 EA $ $ Hydrant I't.lot, o �J4j000 17 Abandon Water Valve 4 EA S $ „son Iy D6a 18 Furnish and Install New Water 5 EA S $ Meter Box and Cover to Grade sod ZI SDp 19 Remove Fire Hydrant and 4 EA S $ Assembly $Po0 70I ODD 20 Furnish and Install Parkway 1 EA S $ Culvert 11,6D6 I1+obb 21 Construct Catch Basin (L=3.5', 1 EA S S V=2') including Local Depression %6DD 91ce.0 22 Furnish and Install Reinforced 8 LF S $ Concrete Pipe (12" Diameter) Zo D s tboo 23 Construct Concrete Collar I EA S S 9)bbb L/ 24 Irrigation I LS S $ 29110ob ZVZ,DDD 25 Landscaping I LS $ yl+Don $ th7000 26 60 Working Days Landscaping 1 LS S S Maintenance (lcrpp I19oo 27 Traffic Signal Modification at I LS $ S Civic Center Dr and Main St Iz4 PDo i-2�, bDb 28 Video Detection System at Civic 1 LS S S L(S Center Dr and Main St IS,ODD pD6 29 GTT Opticom EVP GPS System at 1 LS S S Civic Center Dr and Main St ( tn,pbD I b,boo 30 Install 2" PVC Conduit per plan 105 LF S $ 3,Iso 31 Install 3" PVC Conduit per plan 75 LF S S 40,- 3,006 32 Install 4" PVC Conduit per plan 375 LF S S S°+" 18tZ5D 33 Install No. 6 Pull Box 7 EA S S lop Y,9oa P-2 of P-19 23A-16 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) Item Description Qty Unit Unit Price Amount 34 Install N40 Pull Box per plan 1 EA S S 1t2bo 11-Lo0 35 Type E Traffic Loop Detector 50 EA S S 2.'-O \3t5OD 36 Type D Traffic Loop Detector 16 EA S S 300 41660 37 Fusion Splice 1 Strand SMFO 12 EA S S yN 5tr8 38 IP Communication System at Civic I LS S S Center Dr and Main St +I b00 j , 190c) 39 Temporary Overhead Wiring at I LS S $ Civic Center Dr and Main St 1 000 \ 1 , 000 40 Signing and Striping (Project 17- 1 LS S S 6801) JU0,000 1 U0, 000 41 Signing and Striping (Project 17- 1 LS S S 6886) 19,000 G,000 42 Project Advertisement Sign 2 EA S S I \L000 21000 43 Relocate Rectangular Rapid I EA S S Flashing Beacons -L, 000 -L , OOU 44 Remove Mast Arm, Pole and 1 EA S S Foundation t t)00 V , Ou 0 45 Install Rectangular Rapid Flashing I EA S S Beacons --i UU0 p00 46 Labor Agreement Oversight 1 LS S 10,000 S 10,000 47 Remove Interfering AC Pipe and 60 LF S 5 Replace with PVC Pipe complete 2-00 1 "L I U00 in Place TOTAL BASE BID S 2, B519, y 18 00 wo Minim o/ d rf a0d ZI/O c.ftr ADD ALTERNATIVE ONE 48 Unclassified Excavation* 110 CY S $ \SO•00 jiJ,500.00 49 AC Pavement* 110 TN S \1U 00 S 131200 .00 P-3 of P-19 23A-17 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 50 Construct PCC Sidewalk 1,700 SF $ $ (T=4")* i t'(l000 51 Construct PCC Curb Ramp* 1,500 SF $ $ I S � Zz,Spo 52 Construct PCC Curb and Gutter 300 LF $ $ (Type A-2-6)* 39 ` 53 Traffic Signal Modification at 1 LS S $ Civic Center Dr and Sycamore 30 , pea '50 t0o0 St 54 Install 2" PVC Conduit per plan 110 LF $ $ Yo Y �lyoo 55 Install 3" PVC Conduit per plan 50 LF S $ Sa � 2 ISDD 56 Install No. 6 Pull Box* 7 EA S $ 1000 1 po e / TOTAL ADD ALTERNATIVE ONE $ 1 zy 1 gr TOTAL BASE BID + ADD ALTERNATIVE ONE $ ? _rwo Mtl-LJW A7tN5 HuNDREO CICIA'ly W1 *IAN)>ROD i1u0 IAA" aZV PcND E16}t'Yt�iJ j7oL-N-go.5 -Ztoo C�Ntg ADD ALTERNATIVE TWO 57 Unclassified Excavation* 160 CY $ $ ISD� 24�Odo 58 AC Pavement* 150 TN $ $ q 59 Construct PCC Sidewalk 3,500 SF $ $ (T=4")* 60 Construct PCC Curb Ramp* 1,800 SF S $ 61 Construct PCC Curb and Gutter 400 LF S 39 •! $ (Type A-2-6)* 1'5) b 0 0 62 Traffic Signal Modification at 1 LS S $ Civic Center Dr and Bush St '} 0 10 DD 10,006 63 Install 2" PVC Conduit per plan 85 LF $ yo $ 64 Install 3" PVC Conduit per plan 25 LF $ S SO Izso 65 Install No. 6 Pull Box* 6 EA S $ 1 /tea a / 1 1000 P-4 of P-19 23A-18 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) TOTAL ADD ALTERNATIVE TWO S b 2 So TOTAL BASE BID+ ADD ALTERNATIVE TWO $3,61(o)(P[R 714l2g-g NnL)t.0 S1)C7yeta T)AbusapD Sift FIUNDRwo S19TLJ mlGN'T bu1,UAfL5 7-EW e TOTAL BASE BID + ADD ALTERNATIVE ONE + ADD ALTERNATIVE TWO S 2 1 168 00 J t I 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. 'j 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 200 working days after the commencement date stated in the Notice to Proceed. The first 140 working days of which is for construction, and the last 60 working days for the landscaping and irrigation maintenance period. The contractor shall order any material specified in the contract document requiring a long lead-time immediately after the Notice to Proceed. The lead —time for the items is including in the total working days. The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $1,500 per calendar day. Name of Firnt Aramexx Signature of BIDDER Salim Samour - President, T41. President Samour - Treasurer, Salim Samour - Manager (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.) 't 5 P-5 ofP-19 23A-19 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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 perjury that the foregoing is true and correct. Name of Firm Signature of BI Salim Samour- Title 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.) P-6 of P-19 23A-20 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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: Business Address: Aramexx Group Inc. 532 W. First St. #202, Claremont, CA 91711 Business E-Mail Address: info@aramexxgroupinc.com Telephone: 909-746-8066 State Contractor's License No. and Class: License Expiration Date: 4/30/21 State Dept. of Industrial Relations (DIR) Registration No.: State Dept. of Indysiryal Relatio IR) Registration Expiratb a Signed: Title: President 960305 -A, B, C27 1000010179 6130120 P-7 of P-19 23A-21 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHO OL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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 BIl Title President (if an individual, so state) P-8 of P-19 23A-22 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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: '/•-% of the bid or $10,000, whichever is greater o Buildings, parks, or other projects: '/_% of the bid Section 1725.5 of the Public Contract Code requires all Subcontractors be registered with the State Department of Industrial Relations (DIR). BIDDER proposes to subcontract certain portions of the work to the firms listed below: Name NQ-0`t k1-1n1Lv0n-,lug• License #/Exp. zkCgC'I- 12.31.1Of DIR Reg. #/Exp. 1060 o 60-1 - t2.31 •19 Location Spy to puw G1t Phone -11y .`INN • 11Ts1 Type Of Work Ak FHAL.T Amount$ `I -IL 6L�.:5o Name 5PFc1n0ss License #/Exp. '? -1-1 L-z ti l2 •11 • 0 DIR Reg. #/Exp. 106 046-'s6 k R-NI •t9 License # `d-1-1 LW . Location 01k ,r CA Phone -14 N-tk • 1/96 Type Of Work 5`l zk'D 1rJ&' 5r0N"P- Amount $ I(A ,098 Name FCga�1RQ License #/Exp. ggg' I6rn 11L3) • iq DIR Reg. #/Exp. I eon n t) lbSy Z 31'Iq License # 9`bs Iga Location P AN W Cuc am.A4r+ , t b Phone-114.9,18 - ,6 Type Of Work CLreul p-%e A t, C?AW('AJ-') Amount$ 2.11,'112 r?Ary,a) Signature o 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 $ P-1I ofP-19 23A-23 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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. PLEASE SEE ATTACHED 1. 91 Name and Address of Owner. Name and Telephone Number of person familiar with project. Contract Amount Type of Work Name and Address of owner. name ana t eiepnone Number of person familiar with project. Contract Amount Name ana 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. S&L Risk Management and Insurance Solutions 1447 Ford St. Suite 103, Redlands, CA 92374 909-253-7742 Pinnacle Surety 151 Kalmus Dr. Suite A201, Costa Mesa, CA 951-217-8637 P-12ofP-19 23A-24 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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. PLEASE SEE ATTACHED Name and Address of Owner. Name and Telephone Number of person familiar with project. Contract Amount Type of Work Date Completed 2. 3. 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 Type of Work 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. S&L Risk Management and Insurance Solutions Pinnacle Surety 1447 Ford St. Suite 103, Redlands, CA 92374 151 Kalmus Dr., Suite A201, Costa Mesa, 909-253-7742 951-217-8637 P-13 ofP-19 23A-25 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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; 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. 3. 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 roles, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September24, 1965, and by rules, regulations, and orders ofthe 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-I5 of P-19 23A-26 CITY OF SANTA ANA REBID PROPOSAL PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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 violati this Section is subject to all the penalties imposed for a violation of the Cha r. Signed: Title: President Finn: Aramexx Group Inc. Date: 8/7/19 P-16 of P-19 23A-27 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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 journeymen stipulated in the apprenticeship standards. Contribute to the fund 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 amoei\ftQ thf, Cal i m Apprenticeship Council. Signed: Title: President Firm: Aramexx Group Inc. Date: 817119 P-17 of P-19 23A-28 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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 other'tivis erRitled.\\ Signed: Title: President Firm: Aramexx Group Inc. Date: 8/7/19 P-18 of P-19 23A-29 CITY OF SANTA ANA PROPOSAL REBID PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE 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 0II_1 P-19 of P-19 23A-30 d1lS!/�IIGGIZ ew:a»iowuemmemme. 532 W. First St. #202 Claremont, CA 91711 City of Santa Ana Jerome Center Landscape Drainage — Feb. 2019 — 20 Civic Center Planting, PCC walkway, precast concrete, April 2019 Santa Ana, CA 92701 irrigation. Michael Ortiz 714-615-0892 MOrtiz@santa-ana.org City of Rialto Renaissance Parkway Landscaping Dec. 2018- 290 W. Rialto Ave. Improvement — April 2019 Rialto, CA 92376 Irrigation, planting, DG, installation of river Kavous Emami cobble with mortar and boulders. 909-628-6234 kvaouse@kecengineers.com City of Diamond Bar City Entry Monuments— Aug. 2018- 21810 Copley Drive Grading, irrigation, planting, electrical. Dec. 2018 Diamond Bar, CA 91765 Carl Sutherland 714-560-8680 csutherland@tait.com RSCCD Facility Planning Water Conservation Irrigation Controller Dec. 2018- 2323 North Broadway Upgrade Dec. 2018 Suite 112 Phase 2. - Santa Ana, CA92706 Investigate existing irrigation, install upgraded irrigation. City of Laguna Beach Laguna Canyon Frontage Road Improvements— Dec. 2018 — 479 Ocean Avenue Clear and grub, grading, irrigation, planting. Jan. 2019 Laguna Beach, CA 92651 Tri Nguyen 949-497-0741 tnguyen(ED lagunabeachcity.net County of Orange Yorba Regional ADA Improvements —Construct Sept. 2018 OC Public Works PCC walkways and picnic table pads, DG — Nov. 2018 300 N. Flower Street paving, P.T.D.F header, detectable warning Santa Ana, CA 92703 systems, site furnishings, concrete transition Nicholas Murray patch, hydroblasting, concrete demo. 714-667-8800 City of Brea Brea Sports Park Landscape Improvements— Sept. 2018 One Civic Center Circle Clear and grub, irrigation, planting, grading. — Oct. 2018 Brea, CA 92821 Bill Bowlus 714-990-7694 23A-31 nrrs7rirc�rYir 532 W. First St. #202 Claremont, CA 91711 billb(-Ia citvofbrea.net City of Claremont Bollard Footing Installation Project — Saw Sept. 2018 207 Harvard Avenue cutting asphalt, replacing asphalt sections with — Oct. 2018 Claremont, CA 91711 removable concrete bollards. Enrique Villalobos 909-399-5479 evillalobos(apci.claremont.ca us City of Buena Park City Entry Sign on Beach Boulevard at the July 2018 — 6650 Beach Boulevard South City Limit — Clear and grub, sawcut and Sept. 2018 Buena Park, CA 90622 remove curb and gutter, electrical system; Ken Kim pedestal with meter, lighting, conduit, 714-562-3688 conductors, trenching, directional baring, 8" kkim@buenaaark.com curb and gutter, curb and gutter transition, AC slot patch, remove and reconstruct concrete sidewalk, grading, planting, irrigation, sign monument, traffic control. RSCCD Facility Planning Water Conservation Irrigation Controller May 2018- 2323 North Broadway Upgrade- Investigate existing irrigation, install June 2018 Suite 112 upgraded irrigation. Santa Ana, CA92706 City of Ontario Trail and Concrete Mow Strip Installation — DG, Jan. 2018— Park and Maintenance Dept concrete mow curb, grading, planting. April 2018 1425 South Bon View Avenue Ontario, CA 91761 Adrian Escamilla 909-395-2635 City of Tustin El Camino Real /Jamboree Road Median Jan. 2018- 300 Centennial Way Modifications and Striping Revisions —Traffic Feb. 2018 Tustin, CA 92780 control, excavation, construct median curb, Krys Saldivar construct PCC mow strip, pavers, AC roadway 714-573-3172 section, type E traffic loops. ksald�nca.org City of Bellflower SR-91 Eastbound On and Off Ramp at Jan. 2018- 16600 Civic Center Drive Bellflower Phase 2 Landscape Improvements— March 2018 Bellflower, CA 90706 traffic control, irrigation, planting. Philip Wang 562-804-1424 ext.2254 PWang(m bellflower. org City of Orange Katella Avenue Sidewalk Improvements — Dec. 2017 — 300 W. Chapman Avenue clearing and grubbing, traffic control, Jan. 2018 Orange, CA 92866-1591 excavation, construct concrete sidewalk, 23A-32 ew � 532 W. First St. #202 Claremont, CA 91711 Randy Nguyen grading, mow curb removal and restoration, 714-744-5531 landscape, irrigation, construct retaining curb, rnguyen@cityogorange.org construct commercial driveway, construct sidewalk, full depth AC, relocate backflow, adjust valve box and water meter to grade. City of Santa Ana Edinger Avenue Landscape Improvements Dec. 2017— Public Works Agency Willits -Sullivan Community Beautification — Feb. 2018 20 Civic Center Plaza Landscaping and irrigation on multiple streets Santa Ana, CA 92701 in the city. Victor So 714-647-5076 vso@santa-ana.org City of Pasadena East Arroyo Neighborhood Connector Trail Jan. 2018 — Dept of Public Works Improvements at Central Arroyo —Asphalt Feb. 2018 100 North Garfield Avenue wearing course, planting, site furnishings, Pasadena, CA 91109 hardscape, construct swale, stone wall. Kris Markarian Cahuilla Indian Reservation Softball Field and Access Road —Grading, turf March 2017 Anza, Riverside County, CA installation, irrigation, fencing, site furnishings. — May 2017 Angela Medrano 951-763-5549 angelammedrano@yahoo.com City of Claremont Pooch Park Renovations — Irrigation, DG, site July 2017 — 207 Harvard Avenue furnishings, CMU Wall, landscaping, install Dec. 2017 Claremont, CA 91711 detention system. Carl Dillman 909-399-5431 csneed ci.claremont.ca.us City of Laguna Niguel Pacific Island Drive Palm Tree Irrigation — March 2017 30111 Crown Valley Parkway concrete, boring, landscape, irrigation. —April 2017 Laguna Niguel, CA 92677 Jerry Sollom 949-362-4349 jsollom cityoflagunaniguel.org City of Claremont College Park Lighting —install new lighting Dec. 2017- 207 Harvard Avenue system. Dec. 2017 Claremont, CA 91711 Dave Rogers 909-399-5431 Accord Interests, LLC HD Supply Repairs —parking lot renovations. Dec. 2017- 23A-33 Af 11.rrC Gt! &.iEt�y a,u„Yree4 /wort. 532 W. First St. #202 Claremont, CA 91711 11719 Bee Cave Road Dec. 2017 Suite 301 Austin, TX 78738 Tom Santaniello 512-600-1880 tas@accordinterests.com RSCCD Facility Planning Irrigation Controller Upgrades - Investigate March 2017 2323 North Broadway existing irrigation, install upgraded irrigation. —Sept. Suite 112 2017 Santa Ana, CA92706 Joe Melendez 714-480-7531 Melendez ioe@rsccd.edu CALTRANS 08-OR4804Vegetation Control —Construction Dec. 2016 — 1727 30`h Street on state highway in San Bernardino County, in July 2017 Sacramento, CA 95816 Ontario on route 10 from 0.2 mile East of Dave Benson Vineyard Ave. overcrossing to 0.1 mile East of 951-232-6478 Miliken Ave. and in Chino on route 60 from 0.2 David.benson@dot.ca.gov mile West of Mountain Ave. undercrossing to Euclid Ave. undercrossing. CALTRANS 08-OR5404 Rock Blanket — Construction on Sept. 2016 1727 30th Street state highway in San Bernardino County in —Jan. 2017 Sacramento, CA 95816 Hesperia and Victorville from 0.2 mile North of Dave Benson Joshua Street overcrossing 0.2 mile North of 951-232-6478 Mojave Drive overcrossing. David.benson@dot.ca.gov City of La Habra La Habra Heights Park Irrigation System June 2016 — 1425 N. Hacienda Road Upgrade — Upgrade of existing irrigation August La Habra Heights, CA 90631 system. Installation of new controller, new 2016 Lori Askew remote control valves, new sprinkler heads, lakew@Ihhcity.ore mainline and lateral piping. Morongo Board of Mission Morongo Roundabouts Landscape Oct. 2015 — Indians Improvements — Installation of new California Dec. 2016 12700 Pumarra Road native landscape and irrigation, electrical Banning, CA 92220 lighting, underground boring, service Karen Woodard pedestals, concrete hardscape, cobble paving, 951-755-5124 fence, and grading. kwoodard@morongo-nsn.eov City of Anaheim Little Peoples Park Remodel and Improvements Oct. 2015 — 200 S. Anaheim Boulevard — Demolition of existing concrete walk paths Feb. 2016 Anaheim, CA 92805 and landscape, irrigation, new wrought iron 23A-34 DAt!/�L(C aamrgcmnm:e.nvr. 532 W. First St. #202 Claremont, CA 91711 Blair Fickett fence, natural stone pilasters, brick pavers, 714-765-5166 drinking fountains, lighting, site furnishings. BficLett@anaheim.net City of Claremont College Park Landscape and Irrigation Oct. 2015 — 207 Harvard Avenue Improvements — Baseball field renovations, Jan. 2016 Claremont, CA 91711 irrigation, DG mulch, DG trails, concrete Kristin Mikula walkways, mow curbs and runningtrack. 909-399-5460 kmikula@ci.claremont.ca.us Metro North Hollywood Sustainable Parking April 2015- 1 Gateway Plaza Demonstration Project —Construction of Sept. 2015 Los Angeles, CA 90012 temporary parking lot and multi -use trail, Awny Malek heavy grading and export, compaction, laser 213-922-6268 grading, landscape and irrigation. TemPark malaka@metro.net installation, drive approaches, fencing, utility coordination and installation. City of Fontana Foothill Blvd. Median Landscape from Cherry March 2014 8353 Sierra Ave Ave to Hemlock Ave — Median work, removal —Aug. 2015 Fontana, CA 92335 and export of soil, grading, boring, irrigation, Christopher Smethurst electrical service pedestals, cobble paving, 909-350-6649 palm tree planting, natural cobble swales. City of Menifee Newport Road Widening — Median work, Oct. 2014- 29714 Haun Road removal and export of soil, grading, boring, Jan. 2015 Menifee, CA 92586 irrigation, cobble. Carlos Geronimo 951-639-1368 ceeronimo@cityofinenifee.us Chaffey School District Ontario High School Quad Modernization — Aug. 2014 — 901 West Francis St. Installation of 6" mainline, irrigation, Dec. 2014 Ontario, CA 91762 landscaping. 909-460-5886 23A-35 March 12, 2019 Subject: ARAMEXX CONSTRUCTION To Whom It May Concern: This letter is my personal recommendation for Aramexx Construction. The City of Buena Park awarded a contract to Aramexx Construction to construct a City Entry Monument Sign on Beach Boulevard in the City of Buena Park. The project scope consisted of construction of the sign including footing, landscaping, irrigation, electrical system, traffic control, and appurtenances. This company has successfully completed the project in timely manner to the satisfaction of the City in November 2018. Lupe Gallardo, who managed the project for Aramexx Construction, was professional and provided outstanding service to the City. She was responsive, readily available for communication, provided organized paper work, and willing to negotiate on change orders, which attributed to the smooth completion of the project. r Sincerely, A A f Nabil S. Nenein, P.E. Director of Public Wo ks/City Engineer 6650 Beach Boulevard I P.O. Box 5009 1 Buena Park, CA 1 90622-5009 1 [7141 562-3500 [ Buen0ark.com 23A-36 STATE OF CAWFORNIA—CALIFORNIASTATE TRANSPORTATIONAGFNCY EDAIUNO G. RROWN Jr Govemor DEPARTMENT OF TRANSPORTATION DISTRICT 8 CONSTRUCTION DIVISON (MS1202) 464 WEST 4TH STREET, 6rH FIAOR SAN BERNARDINO, CA 92401-1400 PHONE (909) 383-4563 FAX (909) 383-6913 TTY (909) 383-6300 October 17, 2018 To Whom It May Concern Making Consemuion a CaIif=fa Way of Life 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 1-10 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 "Provide asa.re,'sustainable, integratedand efpciea! transportation system to enhance California's economy aaditvabiltty" 23A-37 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 Graphic Communications Principals: Mitch Phillippe, ASLA, CA LLA #3781 - Yale Hooper, CID, CILIA Associates: Ling Chan, ASLA, CA LLA #5435, LEED AP 23A-38 E s _°Tfi n%BE S=� 5fl 5 _ a��^., n E eE _.`_3-.p � a,� y a J G Ea.93U <uy T w y iS E t c A C Etc a N.J gg% � 0 30 av n olr 3u�� oT wo E@ o E°i t�3r� Z W 3 x $5�ekf o% .5 N0 !3 � O'�' Q •GIN N a G •JJ. T � O Y N.m-. �/ ( qG. �-5= 8 S, 3aA z° 23A-39 \{\)k) }/{ \ 6 3:s ;! \ <a \{� 7)ƒ/§ rU}\ � 7\l•R eS( m1\ U! ; (�)\ . L \\ Sal /} /{ j. I 22A- O N o9 c 0 r 0 O c cr cr v iz (6 0 O LL O O U N S OD 2 N c aM-+ 0 O LL � m c c m� 5 •• m AEmc E a E mn° a m E V c 2 m c c - m T 2 m E E w a t�pE .�4 a m pmUc adim 'c3m m En a3 a#iE �En o`i ou 2cE moa m E ' U m J a C n L m—m C E ¢ E o m o E 2 E m a b y u m m= mm g=t 28 �d Um E� °Oc3 cn cvH and a mot Q Ncm mm m�a m_ -r°gg: m Em 3 KmN. 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Pulido MAYOR PRO TEM Juan Villegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Vicente Sarmiento Jose Solodo August 1, 2019 ADDENDUM No. ONE REBID ADDENDUM No. ONE PROJ. 17-6801 & 17-6886 CITYMANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Daisy Gomez CITY OF SANTA ANA PUBLIC WORKS AGENCY 20 Civic Center Plaza . P.O. Box 1988, M43 Santa Aria, California 92702 wvAN.santa-ano.ord SUBJECT: PROJECT NO. 17-6801: CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) and PROJECT 17-6886: SAFE ROUTE TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL ATPL- 5063(174) The following changes have been made to Plans for the subject project: Plans 1. Sheet 13 to 1 B of 30: Replace with the attached sheet 13 to 18 of 30. All other terms and conditions remain the same. FOR E CIT OF SAN A ANA Edwin "William" E. City Engineer 0 SANTA ANA CITY COUNCIL Miguel A. POW Juanvilews Vs:aote sameento OavN Powlom Jase sdo Vamnl cedlia lglesua VFm6 - Mayw Mayor Pm Tm Ward5 War I Yfaz52 Waraa WaNa InWAea0.Wee`anaeN 3@ 1 vsamfenlo@sanla-ena.«a a t t@zanra-0na om 1 1 o1S ddealdaR05anla ana on 23A-45 23A-46 EXHIBIT 3 CITY OF SANTA ANA CONSTRUCTION CONTRACT PROJECT 17-6801 & 17-6886 CIVIC CENTER BIKE BOULEVARD AND SAFE ROUTES TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL This CONSTRUCTION CONTRACT is made and entered into this 3nd day of September, 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 Construction (hereinafter "CONTRACTOR"). W ITNESSETH: 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 Civic Center Bike Boulevard and Safe Routes to School Enhancements for Sepulveda Elementary School 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 Two Million Eight Hundred Fifty-six Thousand Four Hundred Eighteen Dollars and No Cents ($2,856,418.00), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." rev. 09/012017 23A-47 Page I of 3 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. 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: littp:/hvtitiv.santa-ana.orQ/pwa/documents/C WA.pdf 7. 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 tite 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. H Page 2 of 3 23A-48 IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: fry. -f� MVIIN FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: FUAD SWEISS, PE, PLS Executive Director Public Works Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONTRACTOR: Aramexx Construction NAME: SM ins SAMOUa TITLE: i�a�s oEN� 23A-49 Page 3 of 3 City of Santa Ana REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL Bid Results Bidder Details Vendor Name Aramelor Construction Address 532 W First St Unit 202 Claremont, CA 91711 United States Respondee Salim Samour Respondee Title President Phone 909-746-8066 Ext. Email Info@aremerorgroupino.com Vendor Type License # CA DIR Bid Detail Bid Format Electronic Submitted August 7,20191:51:11 PM(Paclflc) Delivery Method Bid Responsive Bid Status Submitted Confirmation 9 185677 Ranking 0 Respondee Comment Buyer Comment Attachments File Title Proposal -Santa Ana Ownership Affidavit Bid Bond Non-Colluslon Affidavit File Name Proposal- Santa Ana.pdf Ownership Affldavit.pdf Bid Bond.pdf Non -Collusion AffldavlLpdf .Line Items Type Item Code u0M my Base Bid Items 1 Unclassified Excavation` CY 4760 2 AC Pavement' TN 4850 unit Price Page 1 Pdnted 05/07/2010 EXHIBIT A File Type General Attachments Ownership Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Bid Bond Guaranty (Notary Public) - REQ Original Hard Copy Submittal In Addition Non-Colluslon Affidavit (Notary Public) - REQ Original Hard Copy Submittal In Addition Llne Total Comment $130.00 $617.500.00 $104.00 $504,400.00 PlanetBids, Inc. 23A-50 City of Santa Ana Page 2 REBID: Project 17.6801 CIVIC CENTER BIKE BLVD & Project 17.6886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed 08107M019 Bid Results EXHIBIT A Type Item Code UOM Qty Unit Prlca Lina Total Comment 3 - Cold Mllling" SF 3200 $2.00 $6,400.00 4 Construct PCC Sidewalk (T=4")• SF 37800 $6.00 $226,800.00 5 Construct PCC Driveway (T=8)• SF 2600 $9.00 $23,400.00 6 Construct PCC Curb Ramp" SF 17800 $9.00 $160,200.00 7 Construct PCC Curb and Gutter (Type A-2-6) LF 4900 $34.00 $166,600.00 8 Construct PCC Curb only (B-1)' - LF 600 $19.00 $9,600.00 9 Construct PCC Cross Gutter (Local)' SF 7000 $12.00 $84,000.00 10 Construct Bus Pad (Including Reber Dowels as -needed)' SF 6600 $23.00 $128,800.00 11 Construct PCC Modified Curb (Traffic Circle)' SF 880 $23.00 $20,240.00 .12 Construct Color Stamped Concrete Including rebar (T=10")• SF 800 $20.00 $16.000.00 13 Root Shave FA 6 $400.00 $2,400.00 14 Adjust Manhole Frame and Cover to Grade FA 9 $1,600.00 $14,400.00 15 Adjust Water Valve Frame and Cover to Grade FA 27 $450.00 $12,150.00 16 . . ............ . ._.. _ . ............ ...... . ..... Fumish and Install New Fire Hydrant ... ..,... EA 4 $12.000.00 $48.000.00 17 Abandon Water Valve EA 4 $3,500.00 $14,000.00 18 Fumlah and Install New Water Meter Box and Cover to Grade EA 8 5500.00 $2,500.00 PlanetBlds, Inc. 23A-51 City of Santa Ana page 3 REBID: Project 17.6801 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed OBM712019 Bid Results EXHIBIT A Type Item Code UOM my unit Price Line Total Comment 19 Remove Fire Hydrant and Assembly EA ..................... 4 $5,000.00 .... ....._...._..._...._......,._..,_.,..._ $20,000.00 .......... ... .... 20 Furnish and Install Paerkway Culvert .....__. ..._.,... EA 1 $11,000.00 $11.000.00 21 Construct Catch Basin (1-4.5',V=2� Including Local Depression EA 1 $9.000.00 $8,000.00 22 Furnish and Install Reinforeoed Concrete Pipe (12" Diameter) LF a $700.00 $5,600.00 23 Construct Concrete Collar EA 1 $4,000.00 $4,000.00 24 Irrigation LS 1 $242,000.00 $242.000.00 25 Landscaping LS 1 $42,000.00 $42,000.00 26 60 Working Days Landscaping Maintenance LS ...................._...._..___.....,..._.............._...__.,.._.........,..... 1 $1,900.00 $1.900.00 27 .__.._............._...._ Traffic Signal Modifications at Civic Center Or and Maln St ___.... _._....____.,.. .... LS .......... ......... 1 ...... _......... $126,000.00 ....... _... _.._....._.....................__._.....�...._......., $126,000.00 .26 Video Detection System at Civic Center Or and Maln St LS 1 $45,000.00 $46,000.00 29 GTT Opticom L-VP GPS System at Civic Center Dr and Main St LS 1 $16,000.00 $16.000.00 30 Install 2" PVC Ccndult per plan LF 105 $30.00 $3.150.00 31 Install 3" PVC Conduit per plan LF 75 540.00 $3,000.00 32 Install 4" PVC Conduit per plan LF 375 $50.00 $18,750.00 33 Install No. 6 Pull Box EA 7 $700.00 $4,900.00 34 Install N40 Pull Box per plan EA 1 $1,200.00 $1,200.00 PlanetBids, Inc. 23A-52 City of Santa Ana REBID: Project 17-68D7 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL Bid Results Typo Item Code UOM Qty Unit Price 35 Type E Traffic Loop Detector Page 4 Printed 0810712019 EXHIBIT A Una Total Comment EA so $270.00 $13,500.00 36 Type D Traffic Loop Detector EA 16 $300.00 $4,800.00 37 Fuslon Spllce I Strand SMFO LS . ... ....... 12 $44.00 $528.00 38 IP CommunleaUGn System at Civic Center Or and Main St LS 1 $7,800.00 $7,800.00 39 Temporary Overhead Wiring at Civic Center Or and Maln St LS 1 $11.000.00 $11.000.00 40 Signing and Sfilping (Project 17-6801) LS ---------- . ... . . ...... . 1 $160.000.00 $160,000.00 ..... .. 41 Signing and Striping (Project 17-6886) LS 1 $9,000.00 42 Project Advertisement Slgn EA 2 $1,000.00 $2,000.00 . ... ......... .. 43 Relocate Rectangular Rapid Flashing Beacons EA 1 $2,000.00 $2,000.00 44- Remove Man Arm, Palo and Foundation EA 1 $6,000.00 $6.000.00 45 Install Rectangular Rapid Flashing Beacons EA 1 $7,000.00 $7.000.00 46 Labor Agreement Oversight ......... LS I $10,000.D0 $10,000.00 47 ... . Remove Interfacing AC Plpe and Replace Will PVC Pipe complete In Place LF 60 $200.00 $12,000.00 Subtotal $2,850,418.00 ADD ALTERNATIVE ONE 48 Unclassified Excavation' CY 110 $160.00 $16,600.00 49 AC Pavement' TN 110 $120.00 $13.200.00 Planelelds, Inc. 23A-53 City of Santa Ana Page 5 REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17-6886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed 0e107/2019 Bid Results EXHIBIT A Type Item Cade u0M MY Unit Price Line Total Comment 50 Construct PCC Sidewalk (T=4")" SF 1700 $10.00 $17,000.00 ._....... ....._..._ _. __,_.�._....._..__,..._. 51 Constrict PCC Curb Ramp* SF 1500 $15.00 $22.500.00 52 Construct PCC Curb and Gutter (Type A-2.8)• LF 300 $39.00 $11.700.00 53 Traffic Signal Modification at Civic Center Dr and Sycamore St LS 1 $30.000.00 $30,000.00 54 Install 2" PVC Conduit per plan LF 110 $40.00 $4,400.00 55 In stall 3" PVC Cond ult per plan LF 60 $50.00 $2.500.00 56 Install No. 6 Pull Box* EA 7 $11000.00 $7,000.00 subtotal $124,800.00 ADD ALTERNATIVE TWO 57 Unclassified EXCavaUon" CY 160 $150.00 $24,000.00 58 AC Pavement" ..................._ .._ ..._ __.. ...._ _.... TN 150 $120.00 $18,000.00 59 Construct PCC Sidewalk(7=4")......._..............._.._..-....,......,........................_.__.__......._.,.....................,....._... _........,............. ........__._. _........... 8F 3500 $10.00 $36,000.00 60 Construct PCC Curb Ramp' SF 1800 $15.00 $27,000.00 61 Construct PCC Curb and Gutter (Type A-2-6)• .. ....._ ...... .... ... ......................... LF ........ 400 _.. _ .. _ .. _ .... $39.00 _............ _...._.... $15,600.00 ....... ...._....._, ...._..,_. 62 Traffic Signal Modification at Civic Center Or and Bush St ,........_...._.__._.. ,..._.._.. ._ _. _..._.......... _.......,.._._......_...,.., LS ..._................__-.... 1 $30.000.00 ,............,.......__.._..........,.,..:.........,,_.................. $30,000.00 63 Install 2" PVC Conduit per plan . LF 85 $40.00 $3,400.00 64 Install 3" PVC Conduit per plan LF 25 $50.00 $1,250.00 PlanetBlds, Inc. 23A-54 City of Santa Ana Page e REBID: Project 17-6801 CIVIC CENTER BIKE BLVD & Project 17.6886 SEPULVEDA SAFE ROUTES TO SCHOOL Printed OW0712019 Bid Results EXHIBIT A Type Item Code LI M Qty Unit Price Line Total Comment 65 Install No. B Pull Box' EA a $1.000.00 $6,000.00 Subtotal $160.260.00 Asterisk Notes (Per Section 3.2 of Standard Specifications) -NOT part of Total Bid Calculation Be • a The quantity for this bid Hem Is shown for bid comparison only. This bid Item shall not be subject to the 425%" limit as stated In Section 3.2 of the Standard Specifications. 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 Rem will be dictated by the actual quantltiy used, and the Agency reserves the right to Increase or decrease the quantity of this item accordingly. as a 0 0 87 t = This bid Item is considered a Specialty Item per Section 2-3.2 of the Standard SpedficaHons, ee a o 0 Sublotall 0 Total $3,141,488.00 PlanelBids, Inc. 23A-55 CITY OF SANTA ANA PROPOSAL PROJECT NO.: 17-6801 CIVIC CENTER BIKE BOULEVARD ATPL-5063(178) PROJECT NO.: 17-6886 SAFE ROUTE TO SCHOOL ENHANCEMENTS FOREXHIBIT A SEPULVEDA ELEMENTARY SCHOOL ATPL-5063(174) 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. j 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 200 workine days after the commencement date stated in the Notice to Proceed. The first 140 working days of which is for construction, and the last 60 working days for the landscaping and irrigation maintenance period. The contractor shall order any material specified in the contract document requiring a long lead-time immediately after the Notice to Proceed. The lead —time for the items is including in the total working days. The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $1,500 per calendar day. Name of Firm Aramexx GEeop\nc. Signature of BIDDER Salim Samour - President, Title President Samour - Treasurer, Salim Samour - Manager (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.) P-5 ofP-19 23A-56 COST ANALYSIS CONSTRUCTION OF THE PROJECT NO. 17-6801 & 17-6886: CIVIC CENTER BIKE BOULEVARD AND SAFE ROUTES TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL Construction Contract $ -2;856,418 Contract Administration $ 105,562 Inspection and Testing $ 120,860 Contingencies $ 300160 TOTAL ESTIMATED CONSTRUCTION COSTS $ ' 3,383,000 EXHIBIT 4 17 23A-57 23A-58 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE AMENDMENT TO LEGAL SERVICES AGREEMENT FOR SPECIAL LEGAL COUNSEL SERVICES WITH CARPENTER, ROTHANS & DUMONT TO INCREASE HOURLY BILLING RATE TO $225/HOUR FOR GENERAL LIABILITY AND POLICE LITIGATION DEFENSE MATTERS (STRATEGIC PLAN NO. 1, 3, 4, 5) &ITY 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 Authorize the City Manager to execute an amendment to the legal services agreement with the law firm of Carpenter, Rothans & Dumont, ("CRD") for litigation matters concerning general liability and police litigation defense, effective October 1, 2019, subject to non -substantive changes approved by the City Manager and the City Attorney. The amendment reflects a change in the CRD hourly billing rate from $200 to $225 per hour effective October 1, 2019. While the hourly rate will increase by $25/hour, the overall appropriation for Agreement (A-2017-070), approved by the Council on April 18, 2017, will remain the same. DISCUSSION Since November 21, 2006, the law firm of Carpenter, Rothans & Dumont (CRD) has provided special legal counsel services to the City. The City Council approved the continuation of these services with the City for a three-year term from April 18, 2017 through April 17, 2020. The Agreement is current and in effect. The firm, headquartered in Los Angeles, specializes primarily in police litigation defense services in both federal and state court with an emphasis in civil rights matters involving public safety employees. Mr. Rothans, one of the founding partners of the firm, has practiced law for over thirty years, frequently serves as a Judge Pro Tern and specializes in defending police officers in complex civil rights, police practices, and wrongful death lawsuits involving allegations of excessive force. The 25A-1 Amendment to Legal Services Agreement — Carpenter, Rothans & Dumont September 3, 2019 Page 2 attorneys at the firm are known for their tenacity, knowledge of the law, and attention to detail. In the last ten years, Mr. Rothans with the support of other GIRD partners, obtained defense verdicts at trial in two matters, Cody Hernandez v. City of Santa Ana and Ignacio Leon v. City of Santa Ana. In both cases, the plaintiffs alleged that Santa Ana police officers used excessive force and violated the plaintiffs' civil rights. Many of the partners at the firm have argued before both the California Supreme Court and the Ninth Circuit Court of Appeals. CRD attorneys have successfully defended numerous cities and their police departments throughout Southern California including Anaheim, Fullerton, Pomona and Hawthorne. The firm has provided consistently good service to the City at a competitive rate. This latest contract includes a modest increase for a newly blended rate for partners and associates of $225 an hour. This rate remains below standard industry rates for public entity defense. The City Attorney's Office supports the rate increase. While the hourly rate will increase by $25/hour, the overall appropriation for this Agreement will remain the same. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 1 Community Safety, Goal No. 3 Economic Development, Goal No. 4. Government Financial Stability, and Goal No. 5 Community Health, Livability, Engagement and Sustainability. FISCAL IMPACT Special counsel legal services for this Agreement and the proposed amendment will be paid out of the Risk Management Liability Fund (Account No. 08009061-62300) for the remainder of the term for previously approved contractual legal services. There will be no increase in funds to the Agreement. APPROVED AS TO FUNDS AND ACCOUNTS: Sonia R. Ca alho Kathryn Downs, CPA City Attorneyl Executive Director City Attorne s Office (� Finance and Management Services Agency Executive Director Human Resources Department #7619v4 Exhibit: 1. First Amendment for Legal Services Agreement for Carpenter, Rothans & Dumont 25A-2 FIRST AMENDMENT TO LEGAL COUNSEL SERVICES AGREEMENT WITH CARPENTER, ROTHANS & DUMONT, LLP THIS FIRST AMENDMENT TO AGREEMENT is entered into on this 3`d day of September 2019, by and between Carpenter, Rothans & Dumont ("Attorneys"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The parties entered into Agreement #A-2017-070 dated April 18, 2017 ("Agreement") by which Attorneys agreed to provide City with Legal Services and related matters for a three (3) year term through April 17, 2020. The Agreement is current and in effect. B. Attorneys have advised that their hourly billing rates were raised and effective October 1, 2019, they will be implementing those rates. As a result, the parties agree to amend the current Agreement for legal services to reflect Attorneys' new rates effective October 1, 2019. The increase in the hourly rates will not increase the not -to -exceed compensation amount provided in the Agreement. Now, therefore, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: THE PARTIES THEREFORE AGREE: I. Section 2, COMPENSATION, shall be amended to increase the hourly billing rate by $25/hour from $200 an hour to $225 an hour for attorney billing effective October], 2019. Therefore, the new hourly attorney -billing rate will be $225 an hour during the remainder of the term of the Agreement and any extensions thereto. The parties agree and understand that this increase in the hourly billing rate will not affect the not -to -exceed amount referenced in the Agreement. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: Sonia R. alho, ity Attomey y: SiVidra M. Schwarzmann Senior Assistant City Attorney KRISTINE RIDGE City Manager CARPENTER ROTHANS & DUMONT By: Steven J. Rothans, Esq. Title: Partner N7633v2 y , 25A-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE AGREEMENTS WITH URBAN FUTURES INC. (NOT -TO -EXCEED $72,500) AND BEST BEST & KRIEGER, LLP (NOT -TO -EXCEED $117,600) FOR PROFESSIONAL SERVICES RELATED TO THE REFUNDING OF THE GAS TAX REVENUE CERTIFICATES OF PARTICIPATION, SERIES 2007 (STRATEGIC PLAN NO. 4, 2D) CITY 9ANAGER 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 Authorize the City Manager to execute an agreement with Urban Futures Inc. for financial advisor services related to the refunding of the Certificates of Participation beginning September 3, 2019 through June 30, 2020, for a not -to -exceed amount of $72,500, with a provision for a one-year extension exercisable by the City Manager and the City Attorney and subject to non -substantive changes approved by the City Manager and the City Attorney. 2. Authorize the City Manager to execute an agreement with Best Best & Krieger, LLP for bond counsel and disclosure counsel services related to the refunding of the Certificates of Participation beginning September 3, 2019 through June 30, 2020, for a not -to - exceed amount of $117,500, with a provision for a one-year extension exercisable by the City Manager and City Attorney and subject to non -substantive changes approved by the City Manager and the City Attorney or his/her designee DISCUSSION In 2007, the City issued debt of $68,010,000 in the form of Certificates of Participation (COPS) to rebuild the neighborhood street system; including grinding and overlay, reconstruction, and critical repair for sidewalks, curbs and gutters. The debt service is funded with the City's Highway Users' Tax (Gas Tax) apportionment from the state. The outstanding principal balance is $55,940,000, and the debt pays interest at rates varying from 4% to 5%. The final debt payment is scheduled for January 1, 2040. The City's annual 25B-1 Agreement with Urban Futures & BBK September 3, 2019 Page 2 Gas Tax revenue is $8.5 million, and the annual debt service paid is $4.2 million or 49.3% of the revenue. After the debt was issued in 2007, the State Controller's Office issued guidelines that included a prohibition on installment financings for permitted capital projects. On July 25, 2019, due to the combined efforts of various bond consultants, the State Controller's Office issued a letter to the City (see Exhibit 1) indicating the 2007 COPs are considered lawfully issued, any refunding for debt service savings will not be considered a new debt issue, and debt service payments on the refunding obligations will be treated as eligible expenditures by the State Controller. Current interest rates are closer to 3.2% and conservatively estimated, a refunding could save more than $0.5 million per year in debt service costs, for a potential total of $10.7 million in savings over the remaining life of the debt. Current Potential Interest Rates Varies 4% to 5% 3.2% Remaining Interest Cost $31,208,158 $20,500,000 Portion of Gas Tax revenue used for debt service 49.3% 43.5% Actual savings will depend on the market interest rates in effect at the time the 2019 bonds are priced, which is expected in November 2019. The proposed refunding is in compliance with the City's Debt Management Policy adopted February 2018, including the requirement for a refunding to generate a minimum net present value savings of 3% of the outstanding principal (3% of 55,940,000 is $1,678,200). The City Council can choose to reprogram the annual savings for other eligible street maintenance expenditures, such as a systematic median improvement program. At this time, staff recommends moving forward with a refunding of the 2007 COPs utilizing Urban Futures, Inc (UFI) as Financial Advisor, and Best Best & Krieger, LLP (BBK) as both Bond Counsel and Disclosure Counsel. Both parties were selected due to their prior work with the refunding of the Tax Allocation Bonds (TABS) in November2018. Both parties went through a competitive bidding process at the time and are being recommended for the refunding of the COPS. UFI, in particular, was instrumental in obtaining the State Controller's approval for the refinancing to take place. Both parties have been at the forefront of refinancing Gas Tax bonds for other agencies and are the most experienced in dealing with the specialized and limited Gas Tax transactions in the state. Proposed agreements are provided as Exhibits 2 and 3, respectively. Proposed debt documents will be presented to the City Council for consideration of approval before any refunding debt is issued. 25B-2 Agreement with Urban Futures & BBK September 3, 2019 Page 3 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #4 — City Financial Stability, Objective #2 — (Provide a reliable five-year financial forecast that ensures financial stability in accordance with the strategic plan), Strategy D (Conduct an assessment of the City's debt and refinancing options to achieve savings). FISCAL IMPACT All costs associated with this transaction will be paid at closing of the Refunding Process, with proceeds from the refunding 2019 Bonds scheduled for November/December 2019. &&M Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Letter from State Controller's Office dated July 25, 2019 2. Urban Futures Inc. Agreement 3. Best Best & Krieger, LLP Agreement 25B-3 25B-4 K BETTY T. YEE California State Controller July 25, 2019 EXHIBIT 7 Kristine Ridge City Manager City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Re: Gas Tax Pledge Refunding Obligations Dear Ms. Ridge, This office has received information regarding a proposed issuance of refunding bonds or certificates of participation to refund the City of Santa Ana, Gas Tax Revenue Certificates of Participation (2007 Local Street Improvement Project) for debt service savings. The Office of the State Controller has previously issued its guidelines for Gas Tax Expenditures, and stated, at that time, a prohibition on installment financings for permitted capital projects. However, to further the public purpose of the use of such Gas Taxes for capital projects, The City of Santa Ana, Gas Tax Revenue Certificates of Participation (2007 Local Street Improvement Project), for which this Office has notice, is considered lawfully issued and outstanding by this Office and the Office of the State Controller. Any refunding thereof, for debt service savings, will not be considered a new issue and debt service payments on such refunding obligations will be treated as eligible expenditures by State Controller. ILARO Chief Counsel 300 Capitol Mall. Suite 1850, Sacramento, CA 95814 P.O. Box 942850, Sacramento, CA 94250 Phone: (916) 445-2636 Fax: (916) 322-1220 25B-5 r EXHIBIT 2 AGREEMENT TO PROVIDE FINANCIAL ADVISORY SERVICES FOR :GAS TAX REFUNDING.CERTIFICATES OF PARTICIPATION, SERIES 2019. THIS e . in b an between . RSAMEMENTUrnad.andentered' to this �;44Y, of September, 2010 y db e Urban Futures; Inc. (1'pqnsdthetanf), and City%a: of Santa Ana, jcharter 'city and municipal corporation-1 organized and existing under the. Constitution and laws of the $j.ate of California RECITALS A. lbeCitydesires.to.retain4consult4nttgpSoyidefinanci.al,a4viwyservi.ces-,rpl4ting to 'the proposed issuance of the City?s Gas Refunding Certificates :of padcipatior, Series 20.1.9, B. Consultant represents. That iti4able AqOwilling lo provide sif0h,sOrvices to the City. C. In ubdertaldrig the performance of this Agreement; CQnsultant represents. that itis ldibwledgdable in its field and that any setvicesPerformed by Consultant under this Agreement,willbe performed ably, p orm inbompliancowithauchstan standards be expected from a professional consulting firm- in the field.. NOW THEREFORE,in consideration of the mutualandMpectiyepromises and subject to the terms and conditions hereinafter set 1kirffi,lbepaities agree as follows: 1, SCOPE OF SERVICES n- i crib in,Exhibit it Consultant shall. famish the financial advisory that are described ,E b Ato this Agreement and incorporated in full. 2. COMPENSATION ai Compensation for the services to be provided under this Agreement $hall be contingent on the1ssuance and sale of the proposed -bonds that are the subject of the services to be provdded under this Agreement. City shall not be obligated to pay Consul.tant any, amounts under this. Agreement -including expense ,reimbursements, unless the proposed bonds are issued and sold, b. Upon the issuance and sale, of the proposed ' onds, City agrees to pay, and Consultant agrees to accept as total payment for its, se m—ceS, the rates and chargesidentified d enti: 6 ed In -Exhibit A. The, total sum to be expended,dunqg the. term of :this ­ Agreement shall not. exceed $72,500,Which includes reimbursement. of -expenses up to $2,500, 2WIs EXHIBIT 2 3. TERM This Agreement shall commence on the date first written above and terminate on Jun 30, 202% unless terminated earlieein Accordance with Section 16, below. Theteenof this Agreement may be extended for up .to one (1) year upon. a writing executed. by the City Manager and City Attorney. 4. INDEPENDENT CONTRACTOR Consultant. shall, during the entire term of this Agreement, 'be construed to be an independent contractor and not at employee ofthe .City. this Agreementis not intended nor shall it be construed to create an vinployer-employee relationship, a joint int venture relationship, or to allow the City to exercise discretion or controLover the professior.tal manner in. which Consultant performs. the services which are the sub f -however, .services. .1. subject matter 0 this Agreement the s i � s, to be provided.. -by Consultant shall be provided in a manner consistent with All applicable standards and regulations goVerning suchservices, Consultant shall -pay all salaries and wages, employer's social security taxes, unemployment insurance. and similar taxes relating. to employees And shall be responsible for all applicable withholding taxes. .5. OWNERSHIP OF MATERIALS This Agreement creates -a.. non-exclusive and perpetual license for City to, copy, use, modify, reuse, or sublicense, any and all copyrights, yrights, designs, and otherlutellectual property embodied plans, specifications; studies, drawings, estimates, art other currents or works of in ppecif gs.and do authorship fixed in any tangible medium, of expression; xpression, including but not limited foi physical drawings or data magnetically or otherWise-recorded.on pornputerdiskettes, which are prepared o . r caused .to be prepared by Consultant under -this Agreement ("Documents s & . Data"),I I Consultant shall, require All subconsultants to agree in writing that City is granted a non-exclusive Perpetual license for any Documents & Data the subconsuhant - thi$Agroement. Consultant represents and warrants that Consultant has the legal Tight to license, any And all Documents & Data. Consultant makes no -such representation and warranty in regard to Documents & Data which were provided to Consultant bythe City. !Pity shall not be limited. in any way in its use of the Documents and Data,at Any time, provided that .anysuch use not. within the purposes: intended by this Agreement shall be at'Cftyls s616 risk. 6, INSURANCE 'Prior to undertaking performance of work.under this Agreement, Consultant shall maintain And shall require its subconsultants, if any, to obtain and.inaintain,insur.duce As described below: A- Coinmercial General, LiabilityConsultant. . ultain commercial insurance. Consulat shall Mai geAeralliahility.insurance riAmiiigthq:,Qity, its officers;:employees, agents; volunteers an repre�entatives.as , additional insureds) and shall include, but not no . - I additional: ., i 'be limitedtoprotection Against claims arising from bodily and personal injury, including death resulting thertfioinand, damage to -property, resulting from Any act or occurrence put arising Iof Consultant's operations in the performance of this Page 2:of 8 25B-8 EXHIBIT 2 Agreornent,. including, Mthout limitation,.acts involving vehicles. Theamounts of insurance shall be, not less. than jhO*following0 single limitcove rage applying to bodily and personal injury, including death resulting-thdrefrow and property darhage, in thetotalamount of .$ 1,000,QQQ pappeurreace, with $2.,04000. in the aggregate. Such insurance shall%(a) name the City; .i# officers, empjayO04 age rits, volunteers and representatives as additional. insure (i); (b) be primary with , 4 1 i:vspeO to insurance or self-insutarvdeprqgrams maintained by the City, and (c) contain standard separation of insureds pmvis , tons. b. Business automobile liability insurance, or equivalent form, with a combinedsingle limit nit of not less than $1,000,000 pproccurinertef-, Such insurance shall. include coverage for owned, hired and non . owv* automobiles: cl Worker's Compensation Insurance. In accordance with the California L-ab9t Code. Consultant if Consultant has, auyetripjoyces, is required to be ,insured :against liability for workWs compprisatio.n.. or to undertake self-insui=. Prior to commending theperformance of the, work under this Agrppment;:ContijltpirtagreeA. to obtain and maintain any employer's liability insurance with limits not less than. $1,000,000 per accident. d. If Consultant is or.qmploys a licensed professional such as an Amfittdct or engineer. Professional-liability(errors and 9m . issions):insurqndqj with a combined singlerimit of not less than $1,000,,0.00 per claim with.$2,'900.,000 in the aggregate. e. The following requirements apply to the insurance to be providedby Consultant purstiant to this section:: (j) Consultant shall maintain all insumpe required above in full force and effect for the entire period covered by this Agreement,_ 60 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 * I state that the policies shall. hot be cancelled lot reduced in coverage or changed in any other material asptct, by consultant, without thirty (30) days prior written notice iD the City: (iv) Consultant shall supply City with a fully executed additional insured eud9tsement. 'If Consultant fails or refuses to produce or. Maintain the friauraxice required by this §dctionof fails orrefuses to furnishtheCity wit h required proofthAt insurance has been procured and isinforce and paidfor, the Pity shall havejhe right, at -die City.'s .election, to.forthwith terminate this Agreement. Such termination' shall not Affect Consultant's right to be paid forlis,firic�bndittateridls.expended prior tonotification, of termirtation, Consultant waives th"ghtto receive compehsattoft and agrees to indemnify the City for any work- performed poor to .approval of insurance by the City. WWI EXHIBIT 2 7. INDEMNIFICATION Consultant agrees to defend, and shall indemnify And hold harruless the City, its officers, agents, .employees, consultants, special counsel,and representatives fram liability: (1) forpersonal injury, damages, just compensation, restitution judicial or equitable relief I outofelaims for personal injury, including death, and claims for property damage, which. may arise. from .the negligent operations of the Consultant or its subconsultants, agents, employee§, or otherpersons acting on their behalf relates to .the services described in. -section 1 of.this A ., ". p t, and (2) from any claim that ersonal injury, daul8ges, just canipensaUon, restitution; judicial or equitable relief is due: by-' reason of :the terms of or effects arising from this Agreement, This iridenu tty and hold harmless agreement applies. to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, byreason of the events referred to in this Section or by ;reason. b£.the terms :of, or effects, arising from this Agreement The Consultant further agrees to iademrufy, hold hatiriluk 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 Agreernen4 dr asserting that, Personal injury, damages, just coi0p.ensation;iestitution, judieralor:egpitablereliefdue topersonal. 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, tothe extent Consultant's services are subject to. _Civil Code Section 2.782.8. the above indemnity shall be limited, to. the extent required by Civil Code Section 2782:8, to claims that arise of, Pertain to, or.relate to.:the negligence, recklessness, or willful misconduct of the Co. nstiltant. 8, INTELLEGTUALPROPEAfY.INDEMNIFICATION Consultant shall defend, indemnify and hold harmless the -City, its officers, agents, representatives,'and employees against any and allhabiity; including costs, and attorneys fees, for mfiingementofanyUnitedStates'letters atenttrademark,.orcopgened in ynte work productor documents provided by Consultant to the City -pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices rn connection with the work to be.pertarmed 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 charged to the City For. a minimum. Period of three (3) years, or fox any longer period required by law, from the date of final :payment to. Consultant. under this Agreement. All such records and inVOleeS shall be clsarly identifiable. Consultant shall allow a reptesentatiVe: of the City to examine, audit, and make.transcripts or copies of such records: and any other documents created. pursuant to this Agreement dunrig.regular :business hours. Consuitantshall allow *Bection ofall work, data, documents, proceedings, and ."activities "related to this Agreement for §period of three (3) years from the date of finalpayment to Consultant under this Agreement, Pa e4of8 25B-10 EXHIBIT 2 10. CONFIDENTIALITY If Consultant 'receives froM, the 'City information wKcb due to tfie.w;ure of such information is reasonably understood to be confidential and/or proprietary , Consultant agrees that it shall not use or disclose such -infomation except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information oflike importance, but in no event less than reasonable e6m, "Confidential Inforniatfori'6411 include all ponpublic. information.. C60ideptiol information -includes not only written infbrMatim, but also information transferred orally, visually, electro*caRy, or by other means; Confidential information disclosed to either party by any subsidiary and/or agent pfthe other party is covered by this Agreement the':65tqgoinj o61igatiofis 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 digaoped.inapublicly -avai.14t�16.9ourcp;-.(0)*is: itI rightful .possession .ofthe Consultant without anobligation. qfp4denfiality; d).jisreq e disclosed b *e4tob.y 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 .t.h4titpre�kentlyhas uq interest and shall not have director indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NOTICE Any notice, tender, demand, delivery, or other communico0orL pursuant to this Agreement shall be m-*. writing and shall be deemed to .be properly given if delivered in',person'or mailed by first class or:dertifiedmail, postage:p repalid, (it, sent by fax of othex-VACgr4phic communication m, the roanner.providedin this section, to. the following persons: To City. Clerk of ' the Pity Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 108$ Saota,Ana, GA, 9V0I-10.88 Fax 714-6.4749.56 Executive -Director Public. WorksAgehqy -CityofSanta Ana 20 Civic Center Plaza (M-2 1) P.;.O.. Box 1989 Santa Ana, CA 92702 To C6risultaritt Urban Futures, Inc. 1782.1 P- 1 ith Street, Suite 245 2 Defuse- EXHIBIT 2 Tt.isfin,.CA .92780 Aftn:Afichael Busch, CFO Party may change its Address by.giving notice in writing to the other party. Thereafter, any communication shfdl.be addressed. and trans nutted to Ilia,* new address. If sent. by ma, communication shall .b,eeffective or:de edto)iav n three 3 hays after it ** . em ... ... , e,been. give ( ) da hhs.been deposited in the Wiijteq. hates mail, duty registered or certified, with post prepaid, :and duty registered 490 addressed as set forth above.. If sentby communication shall be 4ective. or deemed to have been given "twenty-four (24) hours after the time set forth on.the transmissi .. .. I . .- . on report -issued by the U--itsMfttirigfacsimile mAPhine,addressed -ass.d.'forth.,above: For purposes of calculating these timeozimes, we4onds, federal, Skate',County Or 0-ityliolidays shalt be excluded. 13. EXCLU.S.IVITYANDAMENDMENT This Agreement: represents the complete and exclusive statement between the City and Consultant regarding wthe. subject matter her 'cm, y and al andsupersedesam or. written; w I other. Agreements, oral . , between the parties. In the event of a conflict between the terms Of this Agreement and any at.tgetiments hereto, the terms of thi.sAgreemmi shiill prevail. -This.Agreemont may -not be modified except by written instrument signed by the City and by an authorized represpniative of Coinsultant. The parties agree that any terms or.conditions of any purchas .ordero offie r r instrument that..�are inconsistent Wnt mnh, or in.addition to the termsI .ah and condition . s hereof;shall not onsis bind or obligate Consultant or the City. Each party to this Agreement acknowledges -.that no representations inducements . . , promises or agroements, orally or otherwise, have been madeby any party, or anyone acting on. behalf of any party, which. arerzipt.mb9died herein. 14. ASSIGNMENT Inasmuch as this Agreement is: intended to secure the specialized services of Consultant, Consultant may.not assign; si transfer, delegate, or subepp#act-any interest p herein without the r, e prior written consent of the City and any such assignment, transfer, de c ati I, S.. ono -sr ubcontract without the City!&priorwritten,consentshO be considered null: and void. Nothing in this Agreement shall be construed to limit the City's ability, to bave.imy. of the services which are . the subject to this Agreement performed by City personnel or byother consultants retained by City,, 15. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this A , greenitnt shall be effective unless it is in writing and signed by the partywavin . i. .. g the ,breach, fidlure, right or. remedy. No waiver of any brea6h, failure.ofilght, of remedy shot be deemed a waiver of any other breach, Addine, right or -remedy, -whether or not similar, nor shall. any waiver constitute it continuing waiver unless the wrirmg-qo specifies. 16.. TERMINATION This. Agreement may be terminated by the Cityupotn thirty (30).days written notice of lermination. x 6 of8 25 -12 EXHIBIT 2 17, NON-DISCWMWATION Consultant shall not.disadminate because of-=6,ccilor, creed, relation, seximantal status, sexual orientation age ti9tionalor igin, ancestry, or.disibility, as defined and prohibited .by applicible'law, in, there—cruitment,,se,loction, training, utilizafton,promotion, termination or otheremploympni related activifiqs:qr in connection with any activities undqr1his—Agroement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. JMSDICTION-VENUE .This. Agreement has been executed and delivered in the State of Ca#fomiaand the validity, intcrpre!ation, performance, and enforcement of any of the clauses of this Agreement shall be determined. and. governed by the laws of . the state of California. lifornia. Both partiesfiurther agree that Orange. County, California, shall be theveimc foranyaction, or proceeding that ,inay.bo.brought6r arise out of, in connection with or by reason ofthis.Agreem—ent, 19.1 PROFESSIONAL LICENSES. Consultant:shall, throughout the term of this Agreement, Maintain all necessary li=ses, permits, approvils, waivers, and exemptions . riecesgary for the provision of the,gervices hereunder and required by the laws and regulations of the United States, the State of CaHf9mia,. theCity of Santa Ana and all other governmental agencies, Consultant. shall notify the City immpdj gtelyvpd in writing of its inability to obtain or maintain such .permits, .licenses, appr6als, waivers, and .exemptions. SaidAnability-shalibe cause for termination dihis Agreement. 20. MISCELLMEOUS:PRO VISIONS a. Each undersigned represents and warrants. that its signature herein below has the power; authorityand right to bind theirmpectiveparties to each of the terms.of this Agreement and shall indemnify City filly., induding-reasonable costs and attorney's few, for any injuries or damages to City in the event that such authority orpower isnot; infact, helabyfheqignit(jr.y:qtiswithftwp.- b; All exhibits Teferenced'herein and attached hereto shallbe incorporated as if fully set forth in-th6b6dyof.this Agreement: IN WITNESS WHEREOF, the Darties.hereto have-execut.e.d-this Agrccmeatthe.date.a.nd year'first above written. ATTEST- CITY OF SANTAANA Daisy Gomez Clerk of the Council Kristine Ridge City Manager jAe 70 EXHIBIT 2 APPROVED AS TO FORM SONIAR. CARVALHO .City Attorney By:_LL&q��4 Ap M. FuAk Assistant City Attorney RECOMMENDED FOIL APPROVAL kaffiryn Downs Executive Director Finance. and .Management Services.Agen. c y. CONSULTANT I' Title. Page 9 jDf 9 26B-14 EXHIBIT A EXHIBIT 2 M URBAN. FUTURESJ.i -.1virlion.lied August 19,2019 FROM 'Urbanfuturesiltic, Michael Busch, CEO TO: Kathryn, Downs, g)(ecutive Director/ CityTrgasurer City of Santa Ana 20 CivIt Center Plaza Santa Ana, Ca 92702 RE Engagement Letter for Gas Tax Refunding Cartiflotes of Participation (COPs), Series :2019 Dear Kathryn: This .letter specifies the terms of tbe:eng@gementb..etween Urban Futures, inc;, located at i7821 E..Street, Suite. .24s.iTti tln.CAW86 and City of Santa Ana lotaedat2QClVitCenter Plaza Santa Ana,,CA92702. This :engagement . between City of - Santa Ana (the "City.") and Urban R1.ture$,JnC. (41.1W ) shall become effective as'of the dlate.of.lts acceptance at provided below. Scope of Municipal Advisory. Actl4ltiqs to be'Pqrformed, Assembling a team, that works: for the Municipality Is a[ key part .of the debt issuance process. Among the first to join. the team is the municipal advisor. As municipal advisor, UFI will successfully perform the following duties. • Assist in developing the plan of.fin;Jae and related transaction timetable,, • Identify and analyze financlpg splu(ions and . alternatives. for funding the tapital improvement plan;, q, Advise on the :method of sale, takiing into account. market conclitipffs: and. near -term activityAni, the municipall market; Assist In the, preparation of any rating:agency stnite les and- Presentations; '9 . • Coordinate internal/external accountants, feasibility consultants and'escrow agents, as appropriate, Assistwith'he select ion tion of the financing team Including unclerwrlLu tr ustee; t,r.. ste% bond and disclosure couns el,. • Assist with issues, s' syndicate structure and bond allocations; PrO017 PUNMS, IRC. 25B-1 5 EXHIBIT 2 • Assist with. negdtlated sales including advice regarding retail order periods and u ga g rd institutiorral.marketina, analysis of comparable bonds -and secondary market data, ata, and -verify cash flow calculations; • Prt!part!.and/.or..review'Prq[iMinary cash flow$/ pmelimin ryM a. funding ana[ S; • Analyze whether to Use SLGS, open markets and/or agency securities .for purposes of. investment of bond proceeds; • Manage the escrow bids, or review SLQs appilleation$. for structuring adV.ance refunding escrow; • Assist in procuring printers, verification a$ents, etc,; • Plan and coordinate bond qlo.slngs; • Prepare any reqUired post -sale reports ofbOndsales; and • Evaluate market conditions and pricing performance of senior manager and cotmana9 ers' . distribution of bonds; Independent Registered Municipal Advisor (,'qRMW.) If acting In the capqdtyofan Independent Registered Muni ipalA. Advisor ('11A A!,) with regard to I 1 .11 .. . Municipal d. the, IRMA exemption of the SEC. Rule, Urban Fqturqs Inc, will review all third -party recornmendationssubmitted to Urban Futures, Inc. in'writing bythe City. Compensation and Out -of- PocketUpenses Compensation for the municipal. advisory activities to be performed for.this eqgagement is contingent. upon the successful salenn. bonds.. For the subject transaction, the fee for financial advisoey services is $72,500 which Incl. des reimbursement of expenses in an amount not to exceed $2,500- Expense reimbursements will cover the followin .. V, • Acquisition property tax data from Los Angeles County Mandatory SE(/MS.RB Compliance RequIrementsIkkeporting .- a Data Services (Bloomberg, Thompson Reuters, DBC) • Travel (nlleage airfare; -hotels, etc.) The City shall not be obligated to compensate. UFI any amounts, including expense reimbursements, unless the. proposed bonds. are issued and sold: 1d; Fiduciary Duty Urban Futurtsi Inc. is registered as a Municipal Advitsor with the Securities and Exchange Cbenmission (".SW') and Municipal Securities Ru .. Rig emaki Board ("MSRR"), As such, Urban Urban Futures, Inc. 25B-1 6 EXHIBIT 2 Futures, Inc. has a Fiduciary Duty :tot. h. eti.ya.pdmustprovtOebbthaDuti/ofCareaiidaDLttyof Loyalty that entails the following. Duty of Cafe: a) exercise dug care in performing its municipal advisory activities, b) possess the degree of knowledge and.expertiqp needed to provide the Cltvwlth informed advice; c) make a reasonable ipqurV.as to the lacts.that are relevant to the. CIW-s determination as to whether to proceed with a course of action cir`that for the basis for any advice provided to the City, and d) undertake a reasonableinvestigaitilon to determinethat Utban Futures,.Inc. Is not forming anyrecommericlationcin materially inaccurate or incomplete information- Urban Foturesj lnr,,mvst have a reasonable basis for; I. any advice provided. to or, on behalf Of the City; I!. any representations made, In a certificate. that it signs that will be reasonably foreseeably retied upon by. the City; any other party involved In the municipal! securities transaction or municipal financial Product, or investors in the City securities, and 111*1 any information provided ed to.the City Of other parties involved in the municipal securities transaction In connection with the preparation of an official statement. Duty. of Loyalty: Urban Futures, Inc. must deal honestly and .With the utmost good faith With the, City and act in the city's best Interests without regard to the financial or other interests of Urban itan Futuresjnt, .Urban Futures, Inc: will eliminate or provide full and fair ir disclosure (included herein) to the City about. each material conflict of interest (as applicable). Urban futures, Inc. will not engage in Municipal advisory activities with the City as a municipal entity, if It -cannot manag e or Mitigate Its conflicts In a mannerlhat.will permit it to act in the. Citys best interests. Cdnflicts.Af Interest and Other Matters Requiring Disclosures. As of the date of the Agreement, thereare. no: actual or potential conflictsof Intereathat Urban Futures, Inc. K aware of that might impair its abilityto render unbiased and Competent advice or to fulfill its fiduciary -duty: .Urban Futures, Inc. represents that in connection with the Issuance of Municipal securities, Urban Futures, Inc. may r4pcei e v compensation from the City for servites'rendered,: which• compensation. is ,contingent upon the sUctestful-closing of a trans.action and/or.1s, based. on the size)of a transaction. Consistentwith the reqylrements of INISR13Rule 0-42, Urban Futures, Inc. hereby discloses that such contingent O.rid/6r.transaictiodal:compensatton may present a potential conflict Urban Futures, Inc. 25B-1 7 EXHIBIT 2 of interest regarding Urban Futures,.Inc.' s. ability toptpvid . e.un.blas.ed advice to enter into. such transaction. This conflict of friterest.will hot impair Urban Futures, Inc.s ability to render unbiased and competent advice or to fulfill its :11duclafy duty t the City. If Urban Vo q � Futures; Inc -becomes pware*qf.any potential conflict of Interestthat arises after this disclosure,..Urban-Futures, Inc. Will disclose the.detalled information in writingto'the City in a timely manner. The fee paid to Urb an Futures, Inc. I.rcreasestq qqA of.investment to the City, The increased cost Occurs from .compensa.ting �Urban Futures, Inc. .f . or municipal A . dvis6rV services provided, UrbapPutqNs, Inc. doe5 not: act as:principal* in any of -the trans4ctlon(s) related to this Agreement. During the.term of the municipal advisory relationship, .this agreement will be. promptly amended or supplemented to reflect. any,material changes in or additions totheterms . or information within this agreement qn&the revised writing will be promptly delivered.to the city. • Urban Futures, Inc: does not have any affiliate that provides any adVicej service or produtt to or on behalf of the client thatis directly or Indirectly 9 related to the municipal advisory activities ta.beperfoftned by Urban Futures, Inc,; Urban Futures; Inc. has not made any payments directly or indirectly to obtain or retain the. City Muni ad visory rybusiness, Urbap futures, Inc. has not received an payments from, third parties to en list nlist Urban Futures; Inc, reretornmenclation to the City of its,servicts, any Municipal securities transaction or any municipal finOnceproduct; • Urban Futures, Inc.. has not engaged in any fee -splitting arraftertients involving Urban Futures, Inc. and any provider.of investments or services to the City, • Urban Futures, Inc. does not have any other eng agementsrelationships that might Impair Urban Futurqsj Ine s pollity either to render unbiased and competent Q , 00V.Ic.e to or on behalf of the Cityprto fulfill its fiduciary duty to.*th6 City, as appjicable;.and • Urban FuturesN. Inc, does not -have any legal or disciplinary event that is:material to the. City'sjevoluatiorl of the municipaledVisory.or the Integrity of It management erheInt Or advisory personnel. legal Events.and Disciplinary History I , .' Y UtbainTutures, Inc..ddLis not have any legal events -and disciplinary history on, its Form.MA and Form MA-1, which Includes: information m ..on about any criminal actions; regulatqrV actions; investigations, terminations, judgments, liens, civil "Udicial actions, customer I judicial I complaints, nriplal.nts, arbitrations and civil litigation. The City may electronically access Urban Futures, Inc!s most recent Form MA and each most recent Form _MA-J filed With the Commission at -the I he follow. ng website.- www.sec,gov/edzarLsearchadpar/corilpanysear.ch.htmi Urban futures, Inc, 25B-1 8 EXHIBIT 2 Thqre.have. been no Material changes to a legator discililinarry eventd! I sclosare On an Form MA or Form MA-1 filed with the SEC. ,Recommendations .If Urban Futures; Inc: makes a recommendation of a municipal securities transaction or municipal financial gr6duct or if the review of a recommendation of another party .is. requested in: writing by the City and is within the scope.of the engqgement, Urban Futures, jnt�; VlllrrdeterMine, based on the information obtained: through:reasonable diligence: of, Urban Futures, Inc. Whether a municipal securities transaction or municipal flnanclal.�roduct is suitable for the City. Inadditlon., Urban Futures, Inc. will inform the City of; • therevaluation of the rhaterialAskspotentiall benefits structure, and othercharacteristics of the. recommendation; • the basis upon which 'Urban Futures; Inc: reasonably belleves that the reconfrhended municipal securities transaction or municipal financial product Is, or Is not, suitable for the City; and 6 whether Urban Future�s,.lhc. has investigated . at considered 6red other reasonably feasible alteThativ6s to the recommendation that might also or alternatively ,serve the City's objectives. If the City electsa course of action that isinde.pren.dent of orcontrary .to the advice.provided by Urban Futures, Inc, Urban Futures, Inc. Isnot required .onthat basis ta.disengage from the, City. ftecord.Retentloo Effective July 1, 2014, pursuant to the Securities and Exchange Commission (SEC) record retention regulations, Urban. Futures) Inc. is required tornaintacin in writing, -all communication and created docurneInts between Urban Futures, Inc. and the City for years. IftheTe are any qqestions.regprd[r)g the above.; please do poi heskafe to contact Urban Futures,. Inc., If -the foregoing, terms meet With your apippoyal, please -indicate your acceptance by executing both coplesof this letterand returning one copy, Sincerely, /4//-e �- Michael Busch, CEO Urban Futures, Inc. Urban Futures, Inc. 25B-1 9 25B-20 EXHIBIT 3 LEGAL SERVICES AGREEMENT WITH BEST BEST & KRIEGER LLP FOR BOND COUNSEL SERVICES This AGREEMENT is made and entered into this 3rd day of September, 2019, by and between Best Best & Krieger LLP ("Attorneys"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the constitution and laws of the State of California ("City") RECITALS A. The City of Santa Ana desires to engage Attorneys to provide legal services as bond counsel and disclosure counsel relating to the proposed issuance of the City's Gas Tax Revenue Refunding Bonds, Series 2019, which will refinance outstanding bonds originally issued to finance public capital improvements for the City. B. Attorneys represent that they are licensed to practice law in the State of Califomia, have special experience and knowledge related to the above services, and desire to undertake said services. 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. RETENTION OF ATTORNEYS City hereby agrees to and does retain Attorneys, for the compensation hereinafter specified, to provide legal services as bond counsel and disclosure counsel relating to the proposed issuance of the City's Gas Tax Revenue Refunding Bonds, Series 2019, as further described on Exhibit A ("Assignment"). Attorneys accept said retention and agree to perform the Assignment in a timely and efficient manner. 2. COMPENSATION FOR SERVICES RENDERED a. City agrees to compensate Attorneys, and Attorneys agree to accept from City, as and for payment in full for all services forthe Assignment, the sum not to exceed $75,000 forbond counsel services and the sum not to exceed S40,000 for disclosure counsel services, both sums payable upon the successful completion of the financing. b. In a total amount not to exceed $2,500, City agrees to reimburse Attorneys for out-of- pocket expenses, including but not limited to, mileage, copying costs, service of process, and mail services authorized by the City in connection with the performance of duties under this Agreement. In-house printing, copying, and reproduction charges will be reimbursed at the rate of 20 cents per page. Automobile travel will be reimbursed at the standard mileage rate in effect at the time of billing by the Internal Revenue Service. All expenses must have supporting documentation submitted with the invoice. 3. METHOD OF PAYMENT Upon the successful completion of financing, Attorneys shall submit a statement specifying the services performed and an itemization of expenses related thereto with supporting documentation (i.e. receipts, invoices, copy of check, etc.). City 25B-21 EXHIBIT 3 acknowledges that the fees incurred for work performed by Attorneys on its behalf are due and owing within 45 days of receipt of this statement. 4. CONTROL OF LEGAL MATTERS Attorneys agree that each and every matter or proceeding in which they undertake to assist the City, as aforesaid, shall be and remain under, and subject to the control and direction of the assigned Assistant City Attorney and the Executive Director of the Finance and Management Services Agency at all stages, and that they shall at all times keep the City informed of all matters pertaining thereto. City will keep Attorneys informed of all significant developments in matters relating to the Assignment. Attorneys further agree, if and when their retention hereunder is terminated by City, as hereinafter specified, they shall return to City any and all files then in their possession concerning the Assignment. 5. REPORTING REQUIREMENTS Attorneys agree to keep the City, and any other person(s) designated by the City, informed of significant findings and at a minimum provide an update on the status of the Assignment every thirty (30) days. Attorneys also agree to provide the City Attorney's Office an audit report(s) upon completion of the Assignment. 6. TERM The term of this Agreement shall commence on the date first written above and terminate on June 30, 2020 unless terminated earlier pursuant to Section 15 below. The term of this Agreement may be extended for up to one (1) year upon a writing executed by both parties, including the City Manager and a Senior Assistant or Assistant City Attorney. 7. INDEPENDENT CONTRACTORS It is mutually agreed by and between the parties that, in the performance of their covenants hereunder, Attorneys are and shall be independent contractors, and not officers or employees of City. 8. INSURANCE Attorneys shall provide to the City proof of Professional Liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim, and maintain such insurance throughout the term of this Agreement. If Attorneys fail or refuse to produce and maintain the insurance required by this section, or fail or refuse to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Attorneys' right to be paid for its time and materials expended prior to notification of termination. 9. INDEMNIFICATION Attorneys agree to and shall indemnify and hold harmless the City, its officers, agents, employees, and representatives from liability for personal injury, damages, restitution, judicial or equitable relief to the extent caused by Attorneys' negligent or wrongful performance or conduct related to this Agreement. 10. CONFIDENTIALITY All information and documents shared with Attorneys as well as all work performed by Attorneys in connection with this Agreement should be treated as strictly confidential. Moreover, all communications between Attorneys and City shall be treated as protected by the attorney -client privilege and the attorney work product doctrine. Accordingly, information received by Attorneys from City should be kept in a secure place, and no information about this work may be disclosed to any third party without City's prior written approval. 25B-22 EXHIBIT 3 Attorneys shall provide materials directly to the City Attorney's Office or to the Finance and Management Services Agency. All such information and any written product in connection with Attorneys' retention under this Agreement, shall be marked as "PRIVILEGED AND CONFIDENTIAL / ATTORNEY -WORK PRODUCT" and shall be the property of the City, and shall be retumed/provided to the Office of the City Attorney with all copies upon the request of the City Attorney's Office. 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 Attorneys, disclosed in a publicly available source; (c) is in rightful possession of the Attorneys without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Attorneys without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Attorneys covenant that it presently has no interests and shall not have interests, direct or indirect, that would conflict in any manner with performance of services specified under this Agreement. 12. 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 facsimile or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702-1988 Facsimile (714) 647-6956 Courtesy Copy: Office of the City Attorney 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Facsimile (714) 647-6515 To Attorneys: Ms. Kim A. Byrens, Partner Best Best & Krieger LLP Post Office Box 1028 Riverside, California 92502 Facsimile: 951-686-3 083 A party may change its address by giving notice in writing to the other party. Thereafter, any notice, tender, demand, delivery, or other communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by facsimile, communication shall be 25B-23 EXHIBIT 3 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. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Attorneys regarding the Assignment, and supersedes any and all other agreements regarding the Assignment, 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 Attorneys. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Attorneys 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 parties, which are not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Attorneys, Attorneys 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 of this Agreement performed by City personnel or by other Attorneys retained by City. 15. TERMINATION This Agreement may be terminated by City at any time. In such event, Attorneys shall be entitled to receive and the City shall pay Attorneys compensation for all services performed by Attorneys prior to receipt of such notice of termination. As a condition of such payment, Attorneys shall deliver to the City all files and records generated under this Agreement as of such date. Attorneys may terminate this agreement, subject to their obligation to provide written reasonable notice of at least thirty (30) days to arrange alternative representation if applicable. In such case, City agrees to secure new counsel as quickly as possible and to cooperate fully in the substitution of the new counsel. 16. DISCRIMINATION Attorneys 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. Attorneys affirm that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 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. 25B-24 EXHIBIT 3 18. MISCELLANEOUS PROVISIONS 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. 19. COUNTERPARTS: SIGNATURES This Agreement may be executed in counterparts, secured via facsimile transmission or otherwise, each of which shall be deemed to be an original. Photocopies of any executed counterpart shall have the same force and effect as an original. 20. NO GUARANTEES City understands and acknowledges that there are certain risks and uncertainties in the pursuit of any matter for which Attorneys have been retained, that law is not an exact science, that Attorneys have made no representations or guarantees of success regarding the conclusion of any particular matter, and that all expressions relative thereto are matters of Attorneys' opinion only. In other words, Attorneys make no representations or guarantees of success regarding any matter. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. ATTEST Daisy Gomez Clerk of the Council RECOMMENDED FOR APPROVAL Kathryn Downs, Executive Director Finance and Management Services Agency APPROVED AS TO FORM Jo6A M. Funk Assistant City Attorney CITY OF SANTA ANA Kristine Ridge City Manager BEST BEST & KRIEGER LLP m A. Byrens Partner 25B-25 EXHIBIT 3 EXHIBITTrrA I♦3 1n Indian wan: Ontario (mine 588-26I1 Irvine BEST BEST & KRIEGER 3 (A09) a (949)193-200 ATTORNEYS AT LAW Sacramento (91e)]25.4005�4000 Los Angeles San Mail. (213)617-0100 1619)525-1300 Manhattan Beach 3390 University Avenue, Slh Floor, P.O. Box 1028. Riverside. CA 92502 (310) 643-844B Phone: (951) 686.1450 1 Far. (951) 686.3083 1 www.bbklaw.com WaHul Greek (925) 977.3300 Washington. BC Kim A. Byrens t202)785-O600 (951)826-8273 kim.byrens@bbklaw.com File No. 99999.09999 August 5, 2019 Kathryn Downs City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92701 Re: Bond Counsel and Disclosure Counsel Services to the City of Santa for its Gas Tax Revenue Refunding Bonds, Series 2019 Dear Kathryn: We are pleased to submit this letter to you in connection with our services as bond counsel and disclosure counsel to the City of Santa Ana (the "City") relating to the proposed issuance of the City's above -captioned Gas Tax Revenue Refunding Bonds, Series 2019 (the "Bonds") which will refinance outstanding bonds originally issued to finance public capital improvements for the City. The firm of Best Best & Krieger LLP will serve as bond counsel and disclosure counsel on this matter and proposes to perform the following services on the basis set forth in this letter. As bond counsel we will confer and consult with City staff on all matters relating to the financing. We will assist the City in identifying the most advantageous method of financing based upon our experience and we will attend all meetings of the City's staff, consultants and financial advisor at which financing methods are to be discussed and analyzed for successful completion of the financing. With respect to the Bonds, our services will include the preparation of all agreements, resolutions, notices, bond forms and all other legal documents required by California law for the execution, sale and delivery of the Bonds. We will attend all meetings in which the Bonds will be discussed or any action in connection with the proceedings is to be taken. Subject to completion of the financing to our satisfaction, Best Best & Krieger LLP will issue its approving legal opinion to the purchasers of the Bonds to the effect that all proceedings have been legally undertaken for the authorization, execution, sale and delivery of the Bonds, or other transactions relating to the financing and that interest paid with respect to the Bonds is 55384.00019U2244713.1 25B-26 EXHIBIT 3 IC3Ck BEST BE5T & KmEGER 3 ATTORNEYS AT LAW Kathryn Downs August 5, 2019 Page 2 excluded from gross income for federal income tax purposes and is exempt from State of California personal income tax. We will also issue appropriate supplemental opinions and certificates as may be necessary or appropriate. As disclosure counsel, we will confer and consult with City's staff, bond insurers and the City's municipal advisor on all matters relating to the preparation of an official statement describing the terms of issuance of the Bonds. Our services will include the preparation of a preliminary and final official statement, and a continuing disclosure agreement, in order for the City to comply with Rule 15c2-12. We will also review the form of Bond Purchase Agreement prepared by the Underwriter and its counsel. Subject to completion of the financing to our satisfaction, Best Best & Krieger LLP will issue its legal opinion with respect to the matters discussed in the official statement. Based on our current understanding of the issuance of the Bonds and the involvement of Best Best & Krieger LLP attorneys in drafting documents relating to the issuance of the Bonds and delivering our legal opinion, our fee, including reimbursement for costs, would be $75,000 for bond counsel, and $40,000 for disclosure counsel, payable upon the successful completion of the financing. Our fee assumes a bond issuance which would close prior to January 1, 2020. If the transaction ,is not completed within the estimated schedule or our involvement differs significantly from our expectations, we would expect to be paid a fee that we mutually agree would reflect reasonable compensation for legal services rendered considering the risk undertaken and the level of expertise required to undertake such legal service. By your signature and return of this letter, you agree to pay our fees and expenses as set forth in this paragraph. Additionally, we will charge the City for out-of-pocket expenses which would include, the costs of duplicating and mailing, transportation, long distance telephone calls, messenger and courier service and the preparation of transcripts of the financing. This expense is not expected to exceed $2,500. If this arrangement is satisfactory to you, please authorize our employment according to the terms of this letter by having this letter executed by you or your agent. 55394.0001902244718.1 25B-27 EXHIBIT 3 1113Ik BEST BEST & KMEGER3 ATTORNEYS AT LAW Kathryn Downs August 5, 2019 Page 3 We look forward to working with you in order to bring this matter to a successful conclusion. TERMS OF PAYMENT OF FEES AND EXPENSES OF BOND COUNSEL AND DISCLOSURE COUNSEL APPROVED THIS DAY OF 2019. Authorized Signatory 55394.00019\322,14718.1 Sincerely, Kim A.Byrens of BEST BEST & KRIEGER LLP 25B-28 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE THE FIRST AMENDMENT TO THE AGREEMENTS WITH ADMINSURE, INC., FOR THIRD PARTY ADMINISTRATOR CLAIMS SERVICES ADDITIONAL ANNUAL FEES FOR GENERAL LIABILITY OF $93,360 AND WORKERS' COMPENSATION CLAIMS OF $49,800 (STRATEGIC PLAN NO. 7; 6) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 20d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to execute the attached first amendments to the agreements with AdminSure, Inc., to provide an increased scope of services to the City's self -insured third party claims administration and management for General Liability and Workers' Compensation with term of agreements remaining from September 5, 2018 through August 31, 2021 which include two, two-year options for renewal. Additional amount of $7,780 per month for General Liability and $4,150 per month for Workers' Compensation, subject to non -substantive changes approved by the City Manager and City Attorney. This increase annualized is $49,800 for Workers' Compensation and $93,360 for General Liability. The City is self -insured for General Liability and Workers' Compensation with excess coverage previously through participation in a Joint Powers Agreement with the Big Independent Cities Excess Pool (BICEP). For Workers' Compensation, the City was self -insured and self-administered for claims management and processing and had excess coverage through the California State Association of Counties - Excess Insurance Authority (CSAC-EIA). Due to the dissolution process of BICEP, on July 2, 2019, the City Council approved that the City become a member in excess coverage pool and ancillary insurance coverages with Independent Cities Risk Management Authority (ICRMA). Through this change, the City will realize a savings in Fiscal Year 2019/2020 of approximately $1,000,000. Prospectively, all claims and reporting will be processed with ICRMA by the City's current Third Party Administrator, AdminSure. However, the dissolution of BICEP requires additional and duplicative monitoring, processing and reporting throughout the dissolution process which could extend for several years, dependent upon the closure of each outstanding claim from each Member City or an alternative claim resolution for the remaining open claims. 25C-1 First Amendment AdminSure, Inc. September 3, 2019 Page 2 Due to the increase in scope to the current AdminSure agreement, staff is recommending that City Council authorize the increase of the current monthly rate for Workers' Compensation administration, beginning September 1, 2019 through August 31, 2020, from $42,125 to $47,539, which includes the 3% increase as approved in the original agreement, and General Liability administration from $14,600 to $22,818 monthly, also inclusive of the 3% annual increase. Subsequent years are shown in the table below. The amended scope is due in part, to the enhanced ongoing obligations of the City of Santa Ana under the terms and conditions of the documents that describe BICEP's authority to serve as a risk sharing pool among its Member public agencies. Additionally, current reporting will need to be duplicative in nature but will entail separating the reporting according to the applicable pool coverage terms and differing Self Insured Retentions (SIR) for applicable periods, various insurance carriers, as well as State and Federal reporting requirements. 1. BICEP is required to retain an actuary to prepare a report on each Member's Risk Sharing Premium based on loss rate, if any future Premiums are to be established. In accordance with BICEP's Liability Program, Art. 4.1.2.2; Exhibit A (I.) (A), BICEP is requesting quarterly electronic submittals of all claims data for purposes of conducting actuarial analyses and reinsurance for each Coverage Period for which the City is a participant. 2. In addition to scope of services in the Agreement with TPA regarding requirements by and to BICEP, the TPA will provide all requirements under the ICRMA Agreement, including but not limited to: a. Participate with regular submissions of all qualifying claims to ICRMA Claims Committee and Litigation Manager. b. Observe all claims reporting requirements under ICRMA Liability Program Memorandum of Coverage. c. Follow all State reporting requirements for ICRMA & BICEP The current Agreement defines Consultant's Obligations as follows: "The Consultant represents that it employs, or will employ, at its own expense, all personnel required for the satisfactory performance of the Services." "Consultant shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement." The increased workload is different and larger in scope than that described and discussed from the original RFP requirements thus increasing the amount of materials, equipment, personnel that the Consultant is obligated to provide under the current rate of compensation. 25C-2 First Amendment AdminSure, Inc. September 3, 2019 Page 3 Fee Structure Comparison: Oriainal Aareement., 91112018 - 8130-2019 AdminSure, Inc. - Fee Structure Year 1 (Completed -No Adjustment) Year 2 Year Optional Year Optional Year 5 Optional Year 6 Optional Year Workers' Compensation Monthly Fee Workers' Compensation Annual Fee General Liability Monthly Fee General Liability i Annual Fee $ 42,125 $ 505,500 $ 14,600 $ 175,200 $ 43,389 $ 520,665 $ 15,038 $ 180,456 $ 44,690 $ 536,285 $ 15,489 $ 185,870 $ 46,031 $ 552,373 $ 15,954 $ 191,446 $ 47,412 $ 568,945 $ 16,432 $ 197,189 $ 48,834 $ 586,012 $ 16,925 $ 203,100 $ 50,299 $ 603,593 $ 17,433 $ 209,193 PROPOSED: EFFECTIVE 91112019 AdminSure, Inc. - Fee Structure Year 1 (Completed -No Adjustment) Year Year Optional Year Optional Year 5 Optional Year 6 Optional Year Workers' Compensation Monthly Fee $ 42,125 $ 47,539 $ 48,965 $ 50,434 $ 51,947 $ 53,505 $ 55,110 Workers' Compensation Annual Fee General Liability Monthly Fee General Liability Annual Fee $ 505,500 $ 14,600 $ 175,200 $ 570,465 $ 22,818 $ 273,816 $ 587,579 $ 23,503 $ 282,030 $ 605,206 $ 24,208 $ 290,491 $ 623,363 $ 24,934 $ 299,206 $ 642,063 $ 25,682 $ 308,182 $ 661,325 $ 26,452 $ 317,428 PROPOSED: EFFECTIVE 91112019 Increase Difference Including Agreement AdminSure, Inc. - Fee Structure Year 1 (Completed -No Adjustment) Year Year Optional Year Optional Years Optional Year 6 Optional Year Annual Increase and Additional Scope Increase Workers' Compensation Monthly Fee Workers' Compensation Annual Fee General Liability Monthly Fee General Liability Annual Fee $ $ $ $ $ 4,150 $ 49,797 $ 7,780 $ 93,360 $ 4,275 $ 51,299 $ 8,014 $ 96,162 $ 4,403 $ 52,834 $ 8,254 $ 99,043 $ 4,535 $ 54,419 $ 8,502 $ 102,022 $ 4,671 $ 56,051 $ 8,757 $ 105,083 $ 4,811 $ 57,733 $ %020 $ 108,235 25C-3 First Amendment AdminSure, Inc. September 3, 2019 Page 4 This amendment will not alter any other terms or conditions of the current Agreements, A-2018- 210 and A-2018-211. Staff recommends that City Council authorize the City Manager to amend the current agreements with AdminSure, Inc. to provide increased scope for TPA services for General Liability and Workers' Compensation claims processing. Documents will be reviewed by the City Attorney's Office before execution by the City Manager or her designee. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #7 — Team Santa Ana, Objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success. FISCAL IMPACT Workers' Compensation and General Liability TPA administrative services are currently budgeted under Contract Services in Fiscal Year 2019-20 Budget. Funds are available in the Human Resources Department / Risk Management Division Budget for original agreement fees (initial Workers' Compensation contract agreement fee for a total of $570,465 for FY 2019-20 and initial General Liability contract agreement fee for a total of $273,816 for FY 2019-20) as well as the increased fee for increased scope of services to the City's self -insured third party claims administration and management as follows: Fiscal Year Accounting Unit— Fund Accounting Unit, Account Amount Account # Description Description Workers' Workers'Compensation, FY 2019-20 08209054-62302 Compensation Contracted Vendor Personnel $49,800 Services Liabiltiy & Liability & Property Insurance, FY 2019-20 08009051-62302 Property Contracted Vendor Personnel $93,360 Insurance Services Total Additional Contract $143,160 Amount No additional :)riations are being requested Steven V. PharAl Executive Direct r Human Resources Agency SVP/dsl APPROVED AS TO FUNDS AND ACCOUNTS: Kat ryn Do ns, CPA Executive Director Finance and Management Services Agency Exhibits: 1. First Amendment to Agreements No. A-2018-210 2. First Amendment to Agreements No. A-2018-211 25C-4 EXHIBIT 1 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR THIRD PARTY WORKERS' COMPENSATION CLAIMS ADMINISTRATION THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 3, 2019, by and between AdminSure, Inc. ('Administrator'), 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-2018-210, dated September 4, 2018, by which Administrator agreed to provide claims administration services for the City's workers' compensation self-insurance program ("Agreement"). B. The Agreement remains in effect for a three-year term through August 31. 2021, with provision for extension, and the parties now wish to expand the scope of work and increase the annual amount to be expended under the Agreement in consideration of the expanded scope. The Parties therefore agree: Section 6, Claims Administration, is amended to include the following additional services: Where applicable, the Independent Cities Risk Management Association ("ICRMA') shall be included relative to any obligation or duty by the Administrator in Section 6 of the Agreement, including without limitation claims administration, notification, monitoring, reporting, litigation management, and disclosure. 2. Section 12, Consideration, is amended to include the following monthly fee structure effective September 1, 2019. All other fees, if any, shall remain unchanged. AdminSure, Inc. — Fee Structure Workers' Workers' Compensation Compensation Monthly Fee Annual Fee Year (Completed -No Adjustment) Year Year 3 Optional Year Optional Year 5 Optional Year 6 Optional Year? $ 42,125 505,500 $ 47,539 $ 570,465 $48,965 $ 587,579 $ 50,434 $ 605,206 $ 51,947 $ 623,363 $ 53,505 $ 642,063 $ 55,110 $ 661,325 3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. #6970v1 25C-5 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By:. HN M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL Steven V.Pham Executive Director Human Resources Agency 969700 CITY OF SANTA ANA KRISTINE RIDGE City Manager ADMINSURE, INC. 4,r ALITHIAVA G-FLORES President 25C-6 EXHIBIT 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR THIRD PARTY GENERAL LIABILITY CLAIMS ADMINISTRATION THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 3, 2019, by and between AdminSure, Inc. ("Administrator"), 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-2018-211, dated September 4, 2018, by which Administrator agreed to provide claims administration services for the City's general liability claims ("Agreement"). B. The Agreement remains in effect for a three-year term through August 31, 2021, with provision for extension, and the parties now wish to expand the scope of work and increase the annual amount to be expended under the Agreement in consideration of the expanded scope. The Parties therefore agree: 1. Section 2, Description of Services, is amended to include the following additional services: Where applicable, the Independent Cities Risk Management Association ("ICRMA") shall be included relative to any obligation or duty by the Administrator in Section 2 of the Agreement, including without limitation claims administration, litigation management, and reporting of claims activity. 2. Section 6, Term, is amended to include the following monthly fee structure effective September 1, 2019. All other fees, if any, shall remain unchanged. AdminSure, Inc. —Fee 5tructure General General Liability Liability Monthly Fee Annual Fee Year (Completed -No Adjustment) Year Year Optional Year 4 Optional Year Optional Year 6 Optional Year 7 _14,600 1 $ _ 175,200 $ 22,818 $ 273,816 $ 23,503 $ '282,030 $ 24,208 $ 290,491 $ 24,934 $ 299,206 $ 25,682 $ 308,182 I $ 26,452 $ 317,428 3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. #6977v1 25C-7 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By:. HN M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL Steven V. Pham Executive Director Human Resources Agency #6977v1 CITY OF SANTA ANA KRISTINE RIDGE City Manager ADMINSURE, INC. 4ITHIA VAR AS-FLORES President 25C-8 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE RENEWAL AGREEMENT FOR BILL PRINT SERVICES WITH INFOSEND, INC. FOR AN AMOUNT NOT TO EXCEED $600,000 (STRATEGIC PLAN NO. 7, 5F) CITY i AGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1sl Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to execute an agreement with InfoSend, Inc. ("InfoSend") for printing, processing, mailing, and electronic bill presentment and payment for City water billing, licensing and/ or fee revenues effective July 1, 2019 through December 31, 2020, for an amount not to exceed $600,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Treasury and Customer Service Division ("Treasury") of the Finance and Management Services Agency is responsible for the billing and payment processing for the following City revenues: Municipal Utility Services (MUS) accounts, Paramedic Subscription Services, Business License Taxes, Proactive Residential Enforcement Program (PREP), Dog Licenses, and special notice inserts relating to City news and licensing renewal information. Billing and payment services require data processing, printing, mailing services, and e-business services (presenting bills online and/or accepting and reporting payment transactions via the Web). Since fiscal year 2006-07, Treasury has taken advantage of Electronic Bill Presentment and Payment Services (EBPP) technology to provide alternative service delivery process improvement options to customers relating to bill presentment and payment. InfoSend's bill print services include but are not limited to the following: printing, processing and mailing. On June 17, 2015, the City Council approved an agreement with InfoSend for bill printing, mailing, and EBPP and on June 7, 2016, City Council approved adding similar bill print services for the PREP and increasing the annual contract cap from $375,000 to $400,000 for fiscal year 2016-17. InfoSend has unique institutional knowledge of the City's data processing, bill printing, mailing, and electronic presentment and payment services. InfoSend is able to solely handle all data processing, print, mail services, and e-business services. Their professional services include 25D-1 Renewal Agreement for Bill Print Services with InfoSend, Inc. September 3, 2019 Page 2 project management for each print job from beginning to end, as well as providing a high level of quality assurance through their Quality Control Department by checking mail files at multiple stages throughout the production process. InfoSend's information technology, document formatting, electronic payment service, and document production currently integrates seamlessly into our various existing Treasury billing structures, as it presently generates all electronic document files, exchanges them with other integrated vendors, inserts mailing pieces, meters postage, and prepares all mail items for delivery. In November 2016, Treasury completed a comprehensive upgrade to the City's MUS enQuesta customer information services and billing software that supports single sign -on customer access to the enQuesta system, enhanced EBPP, interactive voice response (IVR), a mobile app, and real time payment posting. InfoSend's services directly support and are integrated with this comprehensive upgrade. More recently, beginning in Fiscal Year 2018-19, the Finance and Management Services, Public Works, and Information Technology agencies have undertaken the development of a program proposal for the implementation of an Advanced Metering Infrastructure (AMI) to provide modern smart metering services for the City's water utility operation and for MUS customers. This program proposal will in part be based on expanded use of the City's upgraded MUS enQuesta system with which InfoSend's services are integrated. Therefore, staff recommends renewing InfoSend's contract for an additional 18 months to allow the City time to fully access the upgraded functionality of the integrated system in connection with AMI. Moreover, the cost to implement an equivalent bill print and e-business service provider is unknown, but would require new software and substantial additional integration expenses as InfoSend is fully integrated into all Treasury programs that require bill print and e-business services. STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #7 - Team Santa Ana, Objective #5 (create a culture of innovation and efficiency within the organization, Strategy F (explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies). 25D-2 Renewal Agreement for Bill Print Services with InfoSend, Inc. September 3, 2019 Page 3 FISCAL IMPACT Funds in the amount of $400,000 are budgeted and available for FY 2019-20 and funds in the amount of $200,000 will be similarly budgeted for FY 2020-21 as follows: Departments Account No. FY 2019-20 FY 2020-21 Finance and Management Services Agency 01110130-62300 $250,000 $125,000 Public Works Agency 06017644-62300 $129,000 $ 64,500 City Manager's General Non -Departmental 01105015-62300 $ 21,000 $ 10,500 TOTAL $400,000 $200,000 APPROVED AS TO FUNDS AND ACCOUNTS: U� g�° 'c�, Fuad S. S eiss, PE, PL Kathryn Downs, CPA Executive irector Executive Director Public Wor s Agency Finance and Management Services Agency Exhibit: 1. Agreement AG:WH 25D-3 25D-4 AGREEMENT WITH INFOSEND, INC. TO PROVIDE BILL PRINTING, MAIL SERVICES, AND PAYMENT PROCESSING SERVICES THIS AGREEMENT, dated as of this 3rd day of September, 2019, is made and entered into by and between-InfoSend, Inc., a California corporation (hereinafter "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 (hereinafter "City"). RECITALS A. The City desires to retain a consultant having special skill and knowledge in the field of municipal bill printing and mailing services and electronic bill presentment and payment processing. B. The parties previously entered into Agreement 4A-2015-116 which expired on June 30, 2019. City acknowledges that it has received Municipal Utility Services, Business License Tax, Dog License, Proactive Residential Enforcement Program, and other ancillary bill printing and mailing services as well as Dog License electronic bill presentment and payment processing services from Consultant since the expiration of the prior agreement. City intends for this Agreement to compensate Consultant for services rendered from July 1, 2019 through the date referenced above. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that 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 Consultant shall provide paper bill processing, printing and mailing services along with electronic bill presentment and payment services, and other related professional services as detailed in the scopes of services attached hereto as Exhibits A and C and hereby incorporated herein by reference. a. Processing, Printing and Mailing (PPM) Services. The paper bill processing, printing and mailing (PPM) process consists of processing data, address validation and POSTNET bar coding, printing documents, mail preparation, applying presorted postage and sending via the United States Postal Service for the City's: (1) Municipal Utility Services bills; water conservation program notices, penalty and/or collection notices, and other miscellaneous notices and advisories including paramedic subscription notices; (2) Business License Tax bills, renewal statements, certificates and licenses, penalty/and or collection notices, and other miscellaneous notices and 478320 25D-5 advisories; and Dog License Bills, certificates and licenses, penalty/and or collection, and other miscellaneous notices and advisories. b. Basic Electronic Bill Presentment and Payment (EBPP) Services. Basic Electronic Bill Presentment and Payment (EBPP) services consists of: (i.) Presenting Dog License bills online and accepting payment transaction information to facilitate ACH or credit card payment via Consultant's merchant processing provider, EPX (EPX Acquisition Company, LLC, successor to Phoenix Payment Systems, Inc.). c. City's right to bifurcate agreement and terminate PPM and Basic EBPP services for Dog License billing. During the Term of this Agreement, but beginning not sooner than July 1, 2019, City may upon one hundred -twenty days (120) days prior written notice by the City's Executive Director of Finance and Management Services, terminate PPM and Basic EBPP services for Dog License billing. Whereupon City shall have the right to continue Consultant's PPM services for Dog License Billing for the term of this Agreement or City may continue either Consultant's PPM and/or Basic EBPP services for Dog License Billing on a month -to -month basis and terminate the PPM and Basic EBPP portion of the Agreement in connection with Dog License Billing, with no termination penalty or fees by providing fifteen (15) days written notice of its intent to terminate said PPM and Basic EBPP portion of the Agreement. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit B and Exhibit C, attached hereto and incorporated herein by reference. The total sum to be expended under this Agreement shall not exceed $600,000. This amount shall include payment for services rendered by Consultant during the time period from July 1, 2019, until December 31, 2020. For the annual fiscal year of July 1, 2019 through June 30, 2020, the total amount to be paid to the Consultant shall not exceed $400,000. For the period from July 1, 2020 until December 31, 2020, the total amount to be paid to the Consultant shall not exceed $200,000. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. c. City shall be responsible for payment related to United States Postal Service postage including rate increases. City will be invoiced by contractor for postage including the amount charged for overweight and foreign mail. 478320 25D-6 3. TERM This Agreement shall cover the period of July 1, 2019 through December 31, 2020, unless terminated earlier in accordance with Section 12, 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. 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 $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. [Due to the nature of the services provided by Consultant, auto insurance is not required.] 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, 978320 25D-7 Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 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. City of Santa Ana, its officers, employees, agents and representatives shall be Additional Insureds with respect to General Liability and Auto Liability Insurance is Primary and Non -Contributory. iv. 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 of cancellation with ten (10) days prior notice for non-payment of premium in accordance with policy provisions. v. Certificates of insurance shall show the City as a certificate holder as follows: City of Santa Ana Risk Management Division, 4`h Floor 20 Civic Center Plaza Santa Ana, CA 92702 vi. 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. vii. 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. #7832v2 25D-8 6. INDEMNIFICATION Consultant agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including health, and claims for property damage, which may arise from the direct or indirect operations of the Consultant or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of 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. Consultant shall not be liable for indirect, special or inconsequential damages even if Consultant has been advised of the possibility of such potential claim, loss or damage. Consultant shall not be responsible for delays in receipt of client information or processing client information because of causes beyond its reasonable control, including, without limitation, failure or limitations on the availability of third party telecommunications or other transmission facilities and City's failure to properly enter and/or transmit information. 7. 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. 8. 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. #7832v2 25D-9 9. 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 telefacsimile 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 Telefacsimile (714) 647-6956 With courtesy copies to: Executive Director Finance & Management Services City of Santa Ana 20 Civic Center Plaza (M 17) P.O. Box 1964 Santa Ana, CA 92702-1964 Te lefacsimi le: 714-647-5304 To Consultant: Russ Rezai InfoSend,Inc. 4240 E. La Palma Anaheim, CA 92807 Telefacsimi le: 714-993-1306 Email: russ.r(Qinfosend.com A party may change its address by giving notice in writing to the other party. Thereafter, any notice, tender, demand, delivery, or other communication shall be addressed and transmitted to the new address. If sent by mail, any notice, tender, demand, delivery, or other communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by telefacsimile, any notice, tender, demand, delivery, or other 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. #7832v2 25D-10 10. 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 terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, that terms and conditions hereof, shall not bind or obligate Consultant nor the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 11. 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. 12. 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. If City has requested custom forms/envelopes, City will purchase the remaining supplies of requested forms/envelopes upon termination of the Agreement, or at the time City requests a change in the design of the forms/envelopes. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 13. 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. N7832v2 25D-11 14. 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. 15. 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. 16. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. c. This Agreement must be signed below and may be signed in counterpart and delivered by fax, emailed as a PDF (Portable Document Format) file attachment, or by other means that displays the original or a copy of the signatures. Any subsequent amendments may be signed and delivered in the same manner. [Signature page to follow] #7832v2 25D-12 IN WITNESS WHEREOF, thepartieshereto have executed this Agreement the date and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIAR. CARVALHO City Attgme�l.� By: Rvan O. odgc Assistant City At prncv RECOMMENDED FOR APPROVAL: KATHRYNDOWNS Executive Director, Finance and Management Services Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONSULTANT 64-- SS President Tax ID # 33-0748516 #7832v2 25D-13 Exhibit A - Scone of Consultant Primary Services This Exhibit A is an integral part of and is subject to the terms and conditions of the Master Service Agreement (the "Agreement") between Consultant, Inc. ("Consultant") and the City of Santa Ana ("City"). This Exhibit A provides the Services which Consultant shall deliver to Client to permit the Client's customers ("Users") to use the products and services to view and pay their bills. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement. Client will select one or more of Consultant's Primary Services from the list below by checking the box next to the Primary Service name. Any Primary Services not selected prior to the execution of this Agreement can be added at a later date via an Agreement Amendment. Data Processing, Printing and Mailing Service ("DPPM Service"): During the term of this Agreement, Consultant will provide data processing, printing and mailing services. The Service consists of processing data, printing documents, mail preparation, applying postage (where applicable) and sending via the United States Postal Service. Document types include but are not limited to bills, postcards and letters. 0 eBusiness Services (the "eBusiness Services"): During the term of this Agreement Consultant will provide eBusiness Services. These services can include presenting bills online and/or accepting and reporting payment transaction information to facilitate ACH and/or credit card payments via web, Interactive -Voice -Response (IVR), SMS, or Bank Billpay (e-Lockbox). Section 1. Data Processing. Printing and Mailing (DPPM) Service Descrintion A. Data Transfer and Processing • Client to transmit data to Consultant in an agreed upon format. Should Client make changes to data file format after initial setup is complete, it agrees to pay for the professional services required to accommodate the new file format. See Exhibit C — Professional Services — for information on initial setup and ongoing programming changes. • A File Transfer Report will be emailed to the Client representatives who have opted -in to this email. A copy of this report is also available to download from the Consultant website. • Client will have access to an online Job Tracking application that shows the progress of each file as it is processed and becomes a batch of documents to be printed and mailed. Client can see both the original input file name and the Consultant -assigned "Job Code". • Consultant will process the mailing addresses and perform the following functions: o Apply CASS-certified address validation o Comply with USPS requirements to obtain pre-sort automation rates for qualified client mail pieces o Stay current with all USPS regulations required to mail presorted first-class mail • Consultant will optionally provide proofs of the final print -ready PDF files to Client to be reviewed and approved before printing begins (if requested). M7832v2 25D-14 B. Document Printing and Mailing • Batches are printed by Consultant using a high-speed production process onto the agreed upon forms. • Printed documents are put through a quality control process and then released to the mailing department to be inserted into outgoing envelope. A return envelope and any applicable inserts are included as defined by client workflow. • After a batch of mail is completed in Consultant's system it will be marked as such in the online Job Tracker and a Process Confirmation Report will be emailed to the Client representatives who have opted -in to this email. A copy of this report is also available to download from the Consultant website. Section 2. eBusiness Service Description A. General System Description • Mobile -Ready Customer Engagement: all products are mobile compatible out of the box, with no app store downloads required of customers. Powered by Consultant's CCM platform, customer specific messaging and payment reminders are delivered electronically. • Multi -Channel Payment Collection: Consultant's payment platform will consolidate web, telephone, SMS, CSR, in -person EMV and bank payments into a single lockbox file. • One -Time and Automatic Payments: allow customers to quickly make a one-time payment, as well as sign up to have their payment account auto debited with each billing cycle. • Bill Notification and Presentment: notify customers via email when a new bill is available, and securely deliver exact replica of printed document to customers' inbox or show online via the secure portal. • Interactive Voice Response (IVR): accept customer payments via automated phone service with Consultant -hosted phone number, enabling client phone systems to redirect customers with ease. • SMS Text -to -Pay: enrolled customers may opt in to receive text notifications of new bills, and reply to have the registered payment method drafted for the amount due, speeding up the time to payment. • Bank Payments (MasterCard RPPS): Consultant can collect payments made via the customer bank and include them within the lockbox file. • PCI-Compliant Cloud Based Solution: electronic billing and payment related products hosted in the cloud by Consultant in a secure PCI-Level 1 compliant environment. B. Data Transfer and Processing • Client to transmit data to Consultant in an agreed upon format, using the Data Transfer and Processing workflow described in Section 1. • If the Client is not using Consultant's DPPM Service, USPS address workflow will not be applied. • Data loaded into the eBusiness system is used to facilitate accurate payments via Web, IVR, SMS or Bank BillPay. C. Customer Enrollment and Bill Notification • Data loaded into the system will be used to facilitate customer enrollment, using two pieces of information specific to the customer bill. • For enrolled customers, system will send a notification of the new bill available via email. tt7832v2 25D-15 • For enrolled customers who have opted in, system will send an SMS alert. • For customers using the IVR system, bill information will be dictated by text to voice. • For customers paying via Bank BiIIPay, the account number can be validated by the system prior to accepting payment. • The system may optionally be configured to display a PDF replica of the bill image. D. Customer Payment and Reporting • Customers can make payment via Web, SMS, IVR or Bank BiIIPay, depending on channels which Client has requested Consultant setup. • Payments can be configured to allow Users to pay by bank account and/or credit/debit card. • All payments will be reported in a standard daily "lockbox" file. Section 3. Imnlementation and Support Descrintion A. Implementation • Dedicated Account Manager acts as primary contact and project manager, coordinating all internal setup activities with Consultant programming and operations staff. • All setup and training performed virtually, using phone, email, and web -based tools for issue tracking and screen sharing. • All communications, documentation and test files tracked and stored securely within the Consultant CRM system, allowing other Consultant personnel to contribute or take ownership of the project. • Key milestones are established at kickoff, then tracked and reported throughout the project. • During programming, Consultant's Data Processing platform is configured to automate client -specific Quality Assurance (QA) during processing. • Parallel Testing is run prior to go -live, ensuring all aspects of the application are validated before launch. • Go -Live includes an "all -hands" approach, with all key Consultant managers required to review the launch day activity and sign off before application output is final. B. Support • Dedicated Account Manager from implementation also assigned to monitor and provide support. • Dedicated Support Staff for reviewing and responding to incoming issues. • Multiple communication channels available for client preference: web support ticketing tool, email, and phone. • Proactive support initiated by Consultant staff when client data issues are detected by Consultant Quality Control processes. • Issues tracked via Consultant CRM tool, ensuring full resolution before the ticket can be closed. #7832v2 25D-16 Exhibit B - Consultant Fees This Exhibit B is an integral part of and is subject to the terms and conditions of the Master Service Agreement (the "Agreement") between InfoSend, Inc. ("Consultant") and the City of Santa Ana ("City"). This Exhibit B provides the Fees which Consultant shall bill to City in exchange for Services. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement. Section 1. Price Escalations to Consultant Fees Consultant Fees can be adjusted once every twelve (12) months to account for increases in the cost of materials, labor, and other overhead costs. Consultant reserves the right to increase Consultant Fees on a yearly basis (starting with the first anniversary of the Agreement date) not to exceed the Consumer Price Index (CPI) for the State of California, plus 1.5%. The City will be notified, in writing, at least thirty (30) days prior to such price increase. An amendment to the Agreement will not be required if the Fees are changed, unless the terms or conditions of the Agreement have otherwise changed. Postage fees can change at any time per USPS regulations and do not require an amendment to the Agreement. Consultant pricing is predicated on City representations of City and City User transactional usage. Should City's actual continuous volume and/or recurring frequency deviate by more than thirty percent (30%) from what City has represented to Consultant in Section 2 below, then Consultant reserves the right to invalidate the Fees listed in this Agreement. Should this rare situation arise then Consultant will notify City immediately and negotiate with City in good faith to pass on any increased costs to City, in line with actual City and City User transactional usage. As defined in Section 5.2(iv) of the Agreement, should Consultant and City fail to agree upon updated Fees, Consultant reserves the right to terminate this Agreement with one hundred eighty (180) days' notice. [Exhibit B continued on next page] #7832v2 25D-17 Section 2. Client Representations Document Types and Annual Ouantities Bills/notices under program codes: SNC — 236,927 SNF — 6,283 SNU — 33,282 Dog License under program codes: SNL — 15,280 SNR-1,394 Tax Documents under program codes: SNG — 6,504 SNN — 4,184 SNT — 21,667 SN9 — 9,803 SNM - 936 Number of Batches Monthly Varies by application and job code Custom Materials and Monthh, Volumes Some Job codes use custom material and depicted in pricing by Job Average Customer Payment Amount EBPP — Only dog License applications apply and represents about 1300 per month — N/A on average payment. Section 3. DPPM Fees: 1nfoSend Data Processing, Print and Mail Pricing Utility Billing Documents (SNC/SNF/SNU) 1 $0.119 per document One Page with Return Envelope — InfoSend Standard Materials #7832v2 25D-18 Doc,License Documents_ (SNL/SNR) I $Ot1135 per document One;P6 a with Return' Envelope— InfoSend Standard Tax Documents (SNC/SNN/SNT/SNM) $0.206,per document ,One Page .with Return Envelope— InfoSend •Standard Materials Tax Document (SN9) . ' I $0;237 per document Finished mail pieces are delivered to the USPS within one (1) business day. If samples (proofs) are requested then the mailing will be completed within one day of sample approval. File upload deadline for next -day mailing is 3:OOPM local time at the production facility designated for your account. If samples are required then they must be approved by 5:30PM local time for the file to be mailed by the next business day. The below provides the components of the summary price given above. All pricing is based on "Client Volume Assumptions" listed below and excludes applicable sales tax. Printing and Mailing,Service SOA73' Utility Bill Documents : Print Fee per. Page with' up to 2/0 Ink $0.0675 Dog License — Print Fee per Page with 22/0 with up to 2/0 Ink SO.16„ Tax documents — Print Fee per Page with up to 2/6 Ink $0.191 Tax Documents — Program SN9 - Fee per Page, with up to 2/0 Ink USPS Postage Pass4 irough A postage deposit will, be required prior, to starting service: Duplex Printing $0.02 Additional spot colors (up to full color) $0.003 per additional color Inline Insert Print Fee $0.04 Black printing $0.06 Color printing Batch Fee (per mailing batch under 200 mail pieces) $5.00 Excess Pages Handwork Surcharge (per mail piece) $0.35 #7832v2 25D-19 Address Updates $0.50 NCOA $0.50 ACS Materials Standard Paper Stock (per sheet) $0.015 Standard Outgoing #10 Envelope $0.016 Standard Return #9 Envelope $0.015 Outgoing Flat Envelope — used for mail pieces with excess pages $0.16 Requested Optional Form — 8.5x 11 Recycled Requested Optional form — 8.5 x 14 Recycled $0.021 $0.026 Requested Optional Outgoing #10 Envelope - Recycled $0.023 Requested Optional #9 Envelope - Recycled $0.0225 Insert -Services InfoSend Produced Quoted based on specification Envelope Messaging (Snipes) Quoted based on specification Electronic Inserts $0.01 Drop Shipped Inserts $0.01 per insert $0.02 additional per insert folded #7832v2 25D-20 Print Image Archiving (Per Document Image), with $0.01 - For 12 Months of included USPS mail tracking Retention $0.017 - For 18 Months of Retention $0.022 - For 24 Months of Retention $0.027 - For 36 Months of Retention Final Doc Transfer (FTP) $0.01 per image InfoSend Batch File $0.02 per image Custom File Format Professional Services Rate (per hour) $150 Return Mail Service $0.25 per reported returned mail piece $0.50 per mail piece returned to InfoSend PO Box Remit Tracking $100 monthly support fee Section 3.1. Custom Forms/Envelopes If City has selected the Printing and Mailing Service and at any time requests that Consultant Fees include the cost of custom City -specific materials (either in this Agreement or since its execution), then City understands and accepts that these materials will be purchased in bulk to achieve the lowest possible per -unit cost. City agrees to purchase any remaining supplies of requested custom materials (normally forms or envelopes) if City stops using Consultant's Service for any reason. City agrees to purchase the remaining supply of custom forms/envelopes upon City's request to change the custom forms/envelopes before the supply has been depleted. Section 3.2. USPS Postaee Rates Postage rates are determined by the United States Postal Service. All postage rate changes are determined directly by USPS and are independent of any Consultant service or materials fees. In no event shall any change in the postage rates affect the Consultant service or materials fees. The City will be invoiced the amount of excess for overweight and foreign mail. Section 3.3. Postaee Denosit Consultant, as current provider, already has a postage deposit on file for the City. #7832v2 25D-21 Section 4. eBusiness Service Fees: InfoSend Electronic Payments and Presentment Pricing Bank Account (ACH) I Per EPX Contract Credit Card (CC) Per EPX Contract Interchange: Pass -through Above.fees cover payment initiation through all channels hosted by InfoSend. All Payment Processing fees will be assessed by Global Payments and included in a merchant statement. All pricing is based on "Client Volume Assumptions" listed and excludes applicable sales tax. InfoSend may apply different limits per transaction to control risk or increase user adoption. Online BillPay PlatformQuickPay Online BillPay Setup Fee Exists Already Monthly Maintenance $200.00 Per eBill Loaded N/A Per Enrolled Customer Fee N/A k7832v2 25D-22 Exhibit C — Professional Services This Exhibit C is an integral part of and is subject to the terms and conditions of the Master Service Agreement (the "Agreement") between InfoSend, Inc. ("Consultant") and the City of Santa Ana ("City"). This Exhibit C provides Consultant's Professional Services Fees which Consultant shall bill to City in exchange for Professional Services. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement. Section 1. Price Escalations to Consultant Professional Services Fees Consultant Professional Services Fees can be adjusted once every twelve (12) months to account for increases to the cost of providing these services. Consultant reserves the right to increase Professional Services Fees on an annual basis, starting with the first anniversary of the Agreement date, if needed. The City will be notified, in writing, at least thirty (30) days prior to such price increase. An amendment to the Agreement will not be required if the Professional Services Fees are changed, unless the terms or conditions of the Agreement have changed. Section 2. Definition of Professional Services Consultant Professional Services are the technical services that are required to perform the initial setup of the Consultant Primary Services defined in Exhibit A and the technical services required to make changes to these Primary Services after the initial setup is complete. Once any Primary Service is live and operational Professional Services will not be required unless City requests a change or makes changes to its data file format or business rules which necessitates a change to Consultant's system configuration or programming. Examples of Consultant Professional Services: • Project requirements gathering and analysis hours • Project management and/or consulting hours • Software development and system configuration hours related to the processing of City's data • Software development and system configuration hours related to document design, web portal setup, business rule configuration, or any other applicable technical services • Application testing and deployment hours Section 3. Professional Services Fee and Process for Approval and Payment of Fee The current Professional Services Fee is $150.00 per hour. In the event that a project will incur billable Professional Services hours, City will be informed before work begins. Consultant and City will execute a Statement of Work for project that City wants Consultant to undertake. The payment terms for the project depend on the size and scope of the project. The Statement of Work can include payment terms that are different than the terms listed in this Agreement for Consultant Fees, otherwise these terms will apply and the project fees will be invoiced upon project completion. Small projects that incur less than five (5) hours of Professional Services can be initiated without a Statement of Work if City accepts and executes a Programming Quote for this work. #783M 25D-23 Any project that will take more than five (5) hours of Professional Services work will require both parties to execute a formal Statement of Work. Depending on the nature of the work required, Consultant will provide one of the following quotation methods: Fixed Quote — a fixed project cost will be set. Consultant may elect to waive this cost in some circumstances. City understands and accepts that it must accept the terms and conditions of the, Statement of Work for the project and that changes made to the project requirements, data file structure, etc., after the Statement of Work and any amendments to it have been finalized will require City to pay for these changes on a Time and Materials basis. City will be notified immediately if this scenario arises and will be given an option to keep the original project specifications to keep the fixed quote in place. Time and Materials quote — should it not be possible to provide a fixed quote due to the nature of a City's requested project, then Consultant will provide an estimated number of hours to complete the project and bill the hours on a Time and Materials basis. The Statement of Work will include the terms and conditions for these project types and City will be invoiced weekly for the hours spent on the project. The Initial Setup cost for the Consultant Primary Services selected in Exhibit A are listed in Exhibit B. These costs have been provided using a Fixed Quote process, explained in Section 3 above. City understands and agrees to these terms, and to the project -specific terms and conditions that will be provided in the Statement of Work that will be created to capture City's specific requirements and data types. #7832v2 25D-24 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE SECOND AMENDMENT TO COOPERATIVE AGREEMENT FOR THE SANTA ANA-DELHI CHANNEL DIVERSION PROJECT AUTHORIZING REIMBURSEMENT OF UP TO $148,500 TO THE CITY OF COSTA MESA (PROJECT NO. 16-6467) (STRATEGIC PLAN NO. 6, 1G) CI MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1$1 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to execute a Second Amendment to the Cooperative Agreement with the City of Costa Mesa for the Santa Ana -Delhi Channel Diversion Project, authorizing reimbursement of up to $148,500 to the City of Costa Mesa for costs associated with constructing an underground segment of the Santa Ana -Delhi Channel Diversion Project, located on Bristol Street from Baker Street to Newport Boulevard, subject to non -substantive changes approved by the City Manager and the City Attorney. DISCUSSION The Santa Ana -Delhi Channel Diversion Project (Delhi Project) is a regional collaboration between the County of Orange, the Orange County Flood Control District, and the Cities of Santa Ana, Costa Mesa, and Newport Beach (Funding Partners). The City of Santa Ana is functioning as the lead agency. The goal of the Delhi Project is to improve the water quality in Newport Bay and increase regional groundwater supplies. Completion of the Delhi Project will also help Santa Ana meet federal storm water program requirements mandated by the California State Water Resources Control Board. The Delhi Project will install a forced main in Costa Mesa to divert low -flow storm water to the Orange County Sanitation District treatment plant. Costa Mesa is the lead for the last phase of the project, which includes installing a portion of the forced main within Caltrans right-of-way on Bristol Street under the SR-55 and SR-73 freeways. This phase of the project was recently awarded by Costa Mesa and additional funds are needed to complete these improvements. Amendment No. 2 to the Cooperative Agreement (Exhibit 1) authorizes Santa Ana to reimburse Costa Mesa up to $148,500 for costs associated with the project. Pursuant to the Delhi Project master agreement, the costs will be shared proportionally by the funding partners. 25E-1 Amendment No. 2 - Cooperative Agreement with the City of Costa Mesa Santa Ana -Delhi Channel Diversion Project September 3, 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 Plan - e.g., neighborhood streets, traffic improvements, etc.). ENVIRONMENTAL IMPACT No environmental impact is associated with this action. FISCAL IMPACT The contribution of $148,500 to Costa Mesa will be paid as outlined below, with the City receiving reimbursement for $94,185 of contributions from the other 3 agencies listed. The City's net contribution is $54,315, which has been included in the FY 2019/20 budget. FUNDINGPARTNER City of Santa Ana ACCOUNTAMOUNT 05717640-62300 $54,315 OC Flood Control District & County of Orange 05717660-66220 $45,734 City of Newport Beach 05717660-66220 $42,869 Irvine Ranch Water District 05717660-66220 $5,582 TOTAL $148,500 APPROVED AS TO FUNDS AND ACCOUNTS: Fuad S. weiss, PE, PLS Kathryn Downs, CPA Executiv Director Executive Director Public W rks Agency Finance and Management Services Agency FSS/TC/RA Exhibit: 1. Amendment No. 2 to Cooperative Agreement with City of Costa Mesa 25E-2 EXHIBIT 1 AMENDMENT NUMBER TWO TO COOPERATIVE AGREEMENT NO. A-2016-092 BETWEEN THE CITY OF SANTA ANA AND THE CITY OF COSTA MESA FOR THE CONSTRUCTION OF THE SANTA ANA DELHI DIVERSION FORCED SEWER MAIN UNDER BRISTOL STREET FROM BAKER STREET TO NEWPORT BOULEVARD This Amendment Number Two ("Amendment") is made and entered into this 3rd day of September, 2019 ("Effective Date"), by and between the CITY OF COSTA MESA, a municipal corporation ("COSTA MESA"), and the CITY OF SANTA ANA, a municipal corporation ("SANTA ANA"). RECITALS: A. COSTA MESA and SANTA ANA entered into Cooperative Agreement No. A-2016-092 ("Agreement") on May 18, 2016 for the construction of the Santa Ana Delhi diversion forced sewer main pipeline under Bristol Street from Baker Street to Newport Boulevard (the "Project"); and B. Pursuant to the Agreement, SANTA ANA committed to contribute $1,100,000.00 toward the Project; and C. Due to delays caused by the requirement that the cities obtain Caltrans encroachment permits in connection with the Project, COSTA MESA removed the installation of the diversion sewer main pipelines within the Caltrans right-of-way from the scope of work on COSTA MESA's Bristol Street Median Project, which postponed the installation of the forced sewer main pipeline; and D. COSTA MESA and SANTA ANA have now secured the required encroachment permits from Caltrans, and COSTA MESA has awarded a construction contract to Gwinco Incorporated for Phase II of COSTA MESA's Santa Ana Delhi Channel Diversion Pipeline Project, which includes installation of the forced sewer main pipeline; and E. The cost to install the forced sewer main pipeline exceeds the amount initially contemplated by approximately One Hundred Forty -Eight Thousand Five Hundred Dollars ($148,500.00); and F. SANTA ANA has agreed to reimburse COSTA MESA One Hundred Forty -Eight Thousand Five Hundred Dollars ($148,500.00) for such cost; G. SANTA ANA and COSTA MESA desire to amend the Agreement accordingly. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Rev. 11-16 A new subsection 4 shall be added to Section B as follows: 4. In addition to the Advanced Expended Funds set forth herein, SANTA ANA agrees to reimburse COSTA MESA up to One Hundred Forty -Eight Thousand Five Hundred Dollars ($148,500.00) for costs associated with the installation Cooperative Agreement No. A-2016-092 Amendment Two 25E-3 of the forced sewer main pipeline. SANTA ANA shall reimburse COSTA MESA for such costs within thirty (30) days of receipt of an invoice from COSTA MESA detailing the work performed and the costs associated with same. 2. All terms not defined herein shall have the same meaning and use as set forth in the Agreement. 3. All other terms, conditions, and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, COSTA MESA and SANTA ANA have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above. CITY OF COSTA MESA, A municipal corporation Lori Ann Farrell Harrison City Manager ATTEST: Brenda Green City Clerk CITY OF SANTA ANA, A municipal corporation Kristine Ridge City Manager RECOMMENDED FOR APPROVAL: Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency Rev. 11-16 APPROVED AS TO FORM: Kimberly Hall Barlow City Attorney ATTEST: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By. '�'. -f.L hn Funk Assistant City Attorney 2 Cooperative Agreement No. A-2016-092 Amendment Two 25E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE AN AMENDMENT TO THE AGREEMENT WITH SINGLE POINT ALLIANCE, INC., IN THE AMOUNT OF $260,000 TO PROVIDE A CENTRAL STORES CONSIGNMENT INVENTORY PROGRAM (SPECIFICATION NO. 11-059) (STRATEGIC PLAN NO. 6, 1, C) CITY�MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to amend the agreement with Single Point Alliance, Inc., for a consignment inventory program in the amount of $250,000, for a new total annual amount not to exceed $917,500, and extend the term by four months for a new agreement expiration date of January 31, 2020, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION Facility management recently transitioned from the Finance and Management Services Agency to the Public Works Agency. Central Stores is part of facility management, and is responsible for locating, purchasing and maintaining an inventory of parts and supplies used for City operations under a consignment inventory program. Under this program, Single Point Alliance, Inc., stocks the warehouse with inventory that remains their property until the inventory items are issued to end -users. A consignment inventory program for the Central Stores operation has provided several benefits, including reduced inventory costs, discounted pricing, and other soft cost savings. On December 17, 2012, the City Council approved the execution of a two-year agreement with Single Point Alliance, Inc. with two two-year renewal options to provide a consignment inventory program for the Central Stores Division. The term of the agreement commenced on October 1, 2013, and will expire on September 30, 2019. To ensure the continued services, staff recommends extending the current agreement terms for an additional four -month period to terminate on January 31, 2020, to allow for a new Request for Proposals (RFP) to be issued. Staff anticipates releasing an RFP for consignment services in the next thirty days. 25F-1 Agreement Amendment with Single Point Alliance, Inc. September 3, 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 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 for this agreement are available in various departmental accounting units (account 63001). Fuad S. S Executive Public We FSS/TC/GL VJ , PE, PLS Agency Exhibit: 1. Agreement Amendment APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA to Executive Director Finance and Management Services Agency 25F-2 THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 3, 2019, by and between Single Point Alliance, Inc. ("SPA"), 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-2012-249, dated December 17, 2012, by which SPA agreed to provide a consignment inventory of maintenance, repair, and operations supplies and products for purchase by City at agreed -upon prices ("Agreement"). B. The Agreement remains in effect through September 30, 2019, and the parties now wish to extend the term and increase the total amount to be expended under the Agreement accordingly. The Parties therefore agree: 1. Section 1, Term, is amended to extend the term of the Agreement through January 31, 2020. 2. Section 5, Compensation and Payment Terms, is amended to increase the sum to be expended through the above term of the Agreement by $250,000. 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. ATTEST CITY OF SANTA ANA DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By: iav� JOHN M. FUNK Assistant City Attorney KRISTINE RIDGE City Manager SINGLE POINT ALLIANCE, INC. Name: /k c aor O Fc a vz! ram✓ Title: -P"5"ac-t 6 #4624v1 25F-3 25F-4 REQUEST FOR --COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE NAMING OF THE NEW PARK AT 720 EAST SIXTH STREET "MARIPOSA PARK" (STRATEGIC PLAN NOS. 5,4) 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 Approve naming of the park at 720 East Sixth Street "Mariposa Park." PLANNING COMMISSION ACTION At its regular meeting on August 12, 2019, the Planning Commission adopted a resolution approving Public Facilities Naming No. 2019-01 for a new City park at 720 East Sixth Street pursuant to Sections 33-5 and 33-6 of the Santa Ana Municipal Code (SAMC). The Planning Commission voted 6:0 to change the name of the park from "Parque Mariposa" to "Mariposa Park" in order to be consistent with the proposed naming protocols for other City parks (Exhibit 1). BOARD OF RECREATION AND PARKS ACTION On June 26, 2019, the Board of Recreation and Parks unanimously recommended by a vote of 4:0 (Aleman, Sanchez and Velarde-Garcia absent) the Planning Commission consider naming the new park at 720 East Sixth Street "Parque Mariposa". DISCUSSION In 2017, City staff held a meeting with the Lacy Neighborhood to provide input and feedback on the design and name for a new City park within their boundaries. During the development of the park, it was identified that a key design element of the park would be a sculpture of a butterfly with colorful landscape in the wings of the butterfly. Once installed, this sculpture will represent the transformation that a butterfly experiences and will likewise symbolize the positive transformation that the Lacy Neighborhood has undergone and continues to undergo to improve the resident's quality of life. Another symbolic representation of the butterfly sculpture is migration. Like butterflies, many members of the Lacy community have migrated to Santa Ana 39A-1 Naming Of New Park at 720 East Sixth Street September 3, 2019 Page 2 and have made the Lacy Neighborhood their home. The construction of this park will assist in the continued improvement of the Lacy Neighborhood, with the symbolism of the name representing the positive improvements to the Lacy Neighborhood. ENVIRONMENTAL IMPACT This project was reviewed in accordance with the Guidelines for the California Environmental Quality Act. The recommendation is exempt from further review pursuant to Section 15061 (b)(3) under the General Rule Exemption. Environmental Review No. 2019-60 will be filed for this project. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement and Sustainability, Objective #4 (support neighborhood vitality and livability). FISCAL IMPACT There is no fiscal impact associated with this action. Minh Thai 4::;✓ 01A- 7` Executive Director Planning and Building Agency VF:Ia S:RFCA\2019\09-3-19\PFN 2019-01 RFCA Lida-Widloff L, Executive Director Parks, Recreation and Community Services Agency Exhibit: 1. Planning Commission Staff Report 39A-2 EXHIBIT 7 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: AUGUST 12, 2019 TITLE: PUBLIC FACILITIES NAMING NO.2019-01 TO NAME THE NEW PARK AT 720 EAST SIXTH STREET "PARQUE MARIPOSA" Prepared by Vince Fregoso Executive Director RECOMMENDED ACTION PLANNING COMMISSION SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO Planning Manager Adopt a resolution approving Public Facilities Naming No. 2019-01 naming the park at 720 East Sixth Street "Parque Mariposa." BOARD OF RECREATION AND PARKS ACTION On June 26, 2019, the Board of Recreation and Parks unanimously approved Public Facilities Naming No. 2019-01 by a vote of 4:0 (four absences) to name a new City park "Parque Mariposa" (Butterfly Park). On June 18, 2019, a letter from four community groups, including Vecindario Lacy en Accion (V.e.L.A.), The Kennedy Commission, Latino Health Access and Santa Ana Building Healthy Communities was submitted to the Parks, Recreation and Community Services Agency requesting that the new park in the Lacy Neighborhood be named "Parque Mariposa" (Exhibit 4). The genesis for the name began in 2017, when over 70 residents of the Lacy Neighborhood attended a meeting on the site to provide input and feedback on the design of the park. One key element that will be included in the park is a sculpture of a butterfly with colorful landscape in the wings of the butterfly. This sculpture represents the transformation that a butterfly experiences, but also symbolizes the transformation that the Lacy Neighborhood has undergone and continues to undergo in improving their quality of life. Additionally, the butterfly symbolically represents migration. Like butterflies, many members of the Lacy community have migrated to Santa Ana and have made the Lacy Neighborhood their home. As the construction of this park will assist in the continued improvement of the Lacy Neighborhood, the surrounding community, interested community groups, and the Board of Recreation and Parks all recommend that the new City park be named "Parque Mariposa." 39A-3 Public Facilities Naming No. 2019-01 August 12, 2019 Page 2 Sections 33-5 and 33-6 of the Santa Ana Municipal Code (SAMC) govern the naming of streets and public facilities, including parks, park playgrounds and other recreational facilities. The code includes guidelines for the naming of these facilities and identifies policy guidelines for the naming of public facilities. In general, the naming of parks and public facilities should consider: A name which serves to identify the location of the subject area. 2. A name which references the history of the site or area. 3. A name which identifies a person or family which made extraordinary donation of land or funds to promote the improvement of the public facility. 4. A name which recognizes a person or family who made a significant contribution to the well being of the city, including city council, commissioners, officers and employees of the city, but not anyone who currently holds such position. Analysis of the Issues Based on the guidelines established in the SAMC and in consideration of what would best identify the naming of the park, the following analysis was considered for the naming: Existing Name: Currently no name has been approved for the park as it is a new City park. 2. Proposed Name: "Parque Mariposa" recognizes the unique location of the park and butterfly sculpture in the park. • "Parque Mariposa" (Butterfly Park) represents the positive transformation that the Lacy Neighborhood has experienced and will continue to experience with the new park. • 'Parque Mariposa" also represents the migration of the butterfly as well as the migration of many members of the Lacy Neighborhood that migrated to Santa Ana. Construction on the park began in April and is approximately 40 percent complete. Given the current progress, the park is scheduled for completion in Fall 2019. Based on the above analysis and the recommendation of the Board of Recreation and Parks, staff recommends the Planning Commission approve the naming of the park in the Lacy Neighborhood as `Parque Mariposa." CEQA Compliance This project was reviewed in accordance with the Guidelines for the California Environmental Quality Act. The recommendation is exempt from further review pursuant to Section 15061 39A-4 Public Facilities Naming No. 2019-01 August 12, 2019 Page 2 (b)(3) under the General Rule Exemption. Environmental Review No. 2019-60 will be filed for this project. Lisa Rudloff Executive Director Parks, Recreation & Community Services VF:sb W/reports/pfn19-01 Parque Mariposa.pc Attachments: Exhibit 1 — Resolution Exhibit 2 — General Vicinity Map Exhibit 3 — Letter of Support Vince Fregoso, AICP Principal Planner 39A-5 LS 07.22.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA TO NAME A NEW CITY PARK AT 720 EAST SIXTH STREET "MARIPOSA PARK" 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: A. The City of Santa Ana is requesting approval of Public Facilities Naming No. 2019-01 to name a new City park at 720 East Sixth Street "Parque Mariposa" (Butterfly Park). B. The name "Parque Mariposa" came before the Board of Recreation and Parks on June 26, 2019 and was unanimously recommended for approval by a vote of 4:0 (four absences). C. Public Facilities Naming No. 2019-01 came before the Planning Commission on July 22, 2019. D. Pursuant to sections 33-5 through 33-8 of the Santa Ana Municipal Code (SAMC), the Planning Commission is the decision making body for the naming of public facilities including parks and recreational facilities, subject to confirmation by the City Council. Further, the policy guidelines in the SAMC pertaining to the naming of public facilities states that names which serve to identify the location, environmental and development features of the subject area should be promoted. E. The Planning Commission determined that, in an effort to maintain consistency in the naming of City parks, the proposed park be named "Mariposa Park." F. Based on these guidelines, "Mariposa Park" (Butterfly Park) was selected as the name of the new City park due to its representation of a positive transformation of the butterfly, similar to what the residents are experiencing in the Lacy Neighborhood. It also represents the migration of the butterfly and of the neighborhood residents as they moved into the Lacy Neighborhood and became key members of the community. Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the recommended action is exempt from further review per Section 15061 (b)(3). This general rule exemption is allowed provided it can be determined with certainty that the proposed project will not have a significant effect on the environment. As the project consists of the naming of a public park, the general rule Resolution No. 2019-roc Page 1 of 2 39A-6 LS 07.22.19 exemption is applicable. Categorical Exemption Environmental Review No. 2019-60 will be filed for this project. Section 3. The Planning Commission of the City of Santa Ana hereby approves Public Facilities Naming No. 2019-01 to name the new City park located at 720 East Sixth Street, "Mariposa Park." This decision is based upon the evidence submitted at the abovesaid meeting, which includes, but is not limited to: the Request for Planning Commission Action dated August 12, 2019 and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this 12th day of August, 2019. Mark McLoughlin Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Sarah Bernal, Recording Secretary, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the Planning Commission of the City of Santa Ana on August 12, 2019. Date: Recording Secretary City of Santa Ana Resolution No. 2019-xx Page 2 of 2 39A-7 7/3/2019 PUBLIC FACILITIES NAMING NO. 2019-01 .,ee 4' l �,T 5 Wx LLP L.- l� ' t. l now IF L. 'All El r-. a � .'„-»'^s. -Wu .� y'_ yat ^;eii+l[.' "�Jt` '=+i14Y_ _s" .� 5 .+ • "A SantaAneBaryl'R,L�,��A���9Aerb{�``�•��.� 1 EXHIBIT 2 - GENERAL VICINITY MAP (D) r I 250 feet ^Nj- 19 Q n 70Dmita! Man Frndur — All H.hte mcnrved. apps.spatialstream.com/production/dashboard/8/9/0/CumentBuildihtmi/39i lAM8 1/1 June 18, 2019 Chairwoman Ofelia Velarde-Garcia and Commissioners City of Santa Ana 20 Civic Center Plaza P.O. Bo 1988, M31 Santa Ana, CA 92701 RC: Request to name 6th & Lacy Park-"Parque Mariposa" The following organizations, Vecindario Lacy en Acci6n (VeLA), The Kennedy Commission, Latino Health Access and Santa Ana Building Healthy Communities are requesting that the new park in the Lacy neighborhood be named "Parque Mariposa' per the community's request. We are writing this collective letter because we have been working in partnership to make this park a reality in the Lacy neighborhood for many years. This park is a true community victory. It is very important that the community continue to Feel ownership of this park so it is used and cared for. It is the residents of this neighborhood that have made this park a reality. On April 6th, 2017 over 70 residents, including youth, attended a meeting on the site that would become this park to provide input and feedback on the park's design. One of the design elements that stood out to residents is the butterfly sculpture that will be included. The butterfly represents a lot to this community. Butterflies undergo a great transformation, the Lacy neighborhood has also undergone and continues to undergo a great transformation as residents are working to improve their quality of life. Another very significant symbolism of butterflies is migration. Like butterflies, many members of our community have migrated to Santa Ana and made the Lacy neighborhood their home. It is for these reasons that we are collectively recommending that this park be named "Parque Mariposa"(Butterfly Park). Thank you For considering this request. If you have any questions please Feel free to contact lsuri S. Ramos at isurir(rtlkennedyconunission.or . Sincerely, ' Wennedy c 0 M M I S S I 0 N ■E 1 ' 3 'a I oell 4.61 bang P/N� +1����+4 �2N�✓+s'+ ANq Building Healthy Communities 39A-9 39A-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: ADOPT A RESOLUTION FOR THE OC PLAN FOR INTEGRATED REGIONAL WATER MANAGEMENT FOR NORTH AND CENTRAL ORANGE COUNTY AND THE ONE WATER ONE WATERSHED PLAN FOR THE SANTA ANA RIVER WATERSHED, AND AUTHORIZE THE SANTA ANA WATERSHED PROJECT AUTHORITY TO SUBMIT A PROP 1 INTEGRATED REGIONAL WATER MANAGEMENT GRANT APPLICATION ON BEHALF OF THE CITY OF SANTA ANA FOR THE RAITT AND MYRTLE PARK PROJECT (STRATEGIC PLAN NO. 5, 6F) CI ANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ==161 A0 ❑ As Recommended ❑ As Amended ❑ Ordinance on 1° Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a Resolution adopting the OC Plan for Integrated Regional Water Management for North and Central Orange County and the One Water One Watershed Plan for the Santa Ana River Watershed. 2. Authorize the Santa Ana Watershed Project Authority to submit a Prop 1 Integrated Regional Water Management grant application on behalf of the City of Santa Ana for the Raitt and Myrtle Park Project. DISCUSSION In November 2014, California voters passed Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Prop 1). Prop 1 authorized $7.545 billion in general obligation bonds to fund, in part, water resource projects identified as regional priorities through local Integrated Regional Water Management (IRWM) Plans. The City of Santa Ana has participated in the development of IRWM Plan for North and Central Orange County (the OC Plan), which was completed in March 2018. The Santa Ana Watershed Project Authority (SAWPA) administers Prop 1 grant funding for the IRWM Region recognized by the State Department of Water Resources (DWR) for the Santa Ana River Watershed Funding Area, which includes North and Central Orange County. SAWPA has also led the 55A-1 Proposition 1 - IRWM Resolution September 3, 2019 Page 2 development and subsequent updates of the One Water One Watershed (OWOW) IRWM Plan for the Santa Ana River Watershed since 2005 and, in 2018, updated the OWOW Plan to meet Prop 1 guidelines. IRWM projects seeking Prop 1 funding in North and Central Orange County are submitted to the OC Plan. The projects are ranked primarily according to the quantity of the goals and objectives they achieve that are identified in the OC Plan. The OC Plan has been incorporated into the OWOW plan and SAWPA submits all projects to DWR, on behalf of the entire funding area, for Prop 1 IRWM funding. The County of Orange, the Orange County Sanitation District, the Orange County Water District, and SAWPA have entered into an Agreement entitled "Cooperative Agreement for Integrated Regional Water Management Funding in the Santa Ana Funding Area," which allocates 30% of Prop 1 IRWM grant funds to projects located in North and Central Orange County (Exhibit 4). The City of Santa Ana is a project proponent on the Raitt and Myrtle Park Project, which has been recommended for Prop 1 IRWM funding. Grant applicants must provide a resolution adopted by its governing body in the application package. 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 F (incorporate health and wellness into all applicable policies and plans [e.g., General Plan, Comprehensive Economic Development Strategy, Capital Improvement Plan, etc.]). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT no fiscal impact associated with this action. Fuad S-1 Executiv Public We FSS/NS/CF J nreiss, PE, PLS Director ,ks Agency Exhibits: 1. Resolution 2. The OC Plan may be reviewed at https://www.santa- ana.orq/sites/default/files/pw/documentsfThe-OC-Plan-2018 pdf 3. OWOW Plan may be reviewed at https://www.santa- ana.org/sites/default/files/pw/documentsfThe-OWOW-Plan-2018 pdf 4. Cooperative Agreement for Integrated Regional Water Management Funding in the Santa Ana Funding Area 55A-2 EXHIBIT 1 jmf 8/6/19 RESOLUTION NO. 2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING THE OC PLAN FOR INTEGRATED REGIONAL WATER MANAGEMENT FOR NORTH AND CENTRAL ORANGE COUNTY AND THE ONE WATER ONE WATERSHED PLAN FOR THE SANTA ANA RIVER WATERSHED, AND AUTHORIZING THE SANTA ANA WATERSHED PROJECT AUTHORITY TO SUBMIT A PROP. 1 IRWM GRANT APPLICATION ON BEHALF OF THE CITY OF SANTA ANA FOR THE RAITT AND MYRTLE PARK PROJECT WHEREAS, the City of Santa Ana has participated in the development of the Integrated Regional Water Management (IRWM) Plan for North and Central Orange County (the OC Plan) pursuant to Senate Bill 1672 (SB 1672) of the State of California, known as the Integrated Regional Water Management Planning Act of 2002; and WHEREAS, in November 2014, California voters passed Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Prop. 1), authorizing $7.545 billion in general obligation bonds to fund, in part, water resource projects identified as regional priorities through local IRWM Plans; and WHEREAS, the California Department of Water Resources (DWR) administers a grant program under Prop. 1, and distributes funding to recognized IRWM Regions within the twelve Funding Areas in California (Water Code §79744); and WHEREAS, the Santa Ana Watershed Project Authority (SAWPA) administers Prop 1 grant funding for the sole IRWM Region recognized by DWR for the Santa Ana River Watershed Funding Area, which includes North and Central Orange County; and WHEREAS, SAWPA has led the development and subsequent updates of the One Water One Watershed (OWOW) IRWM Plan for the Santa Ana River Watershed since 2005, and in 2018, updated the OWOW Plan to meet Prop. 1 guidelines; and WHEREAS, the OC Plan has been incorporated into the OWOW Plan; and WHEREAS, the County of Orange, the Orange County Sanitation District, the Orange County Water District, and SAWPA have entered into that certain agreement entitled Cooperative Agreement for Integrated Regional Water Management Funding in the Santa Ana Funding Area, which allocates a percentage of IRWM grant funds to projects proposed through the OC Plan; and WHEREAS, the City of Santa Ana is a project proponent on the Raitt and Myrtle Park Project, which has been recommended for Prop. 1 IRWM grant funding. Resolution No. 2019-XXX Page 1 of 3 55A-3 jmf 8/6/19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The OC Plan for Integrated Regional Water Management Plan for North and Central Orange County is hereby adopted, a copy of which will be on file at the offices of the Public Works Agency of the City for public inspection. Section 2. The One Water One Watershed Plan for the Santa Ana River Watershed is hereby adopted, a copy of which will be on file at the offices of the Public Works Agency of the City for public inspection. Section 3. SAWPA is hereby authorized to submit a Prop. 1 IRWM grant application on behalf of the City of Santa Ana for the Raitt and Myrtle Street Park Project. Section 4. The City Council authorizes the City Manager, or the Executive Director of the Public Works Agency, or their respective designees, to conduct all negotiations, execute and submit all documents, as well as applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the project named above. 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. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:. John M. Funk Assistant City Attorney Miguel A. Pulido Mayor Resolution No. 2019-XXX Page 2 of 3 55A-4 jmf 816/19 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATION OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, 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 Resolution No. 2019-XXX Page 3 of 3 55A-5 y Exhibit 2 The OC Plan may be reviewed at https://www.santa- ana.orq/sites/default/files/pw/docume nts/The-OC-Plan-2018. pdf 55A-7 y • Exhibit 3 OWOW Plan may be reviewed at https://www.santa- ana.org/sites/default/fiies/pw/documents/The- OWOW-Plan-2018.pdf 55A-9 55A-10 EXHIBIT 4 COOPERATIVE AGREEMENT FOR INTEGRATED REGIONAL WATER MANAGEMENT FUNDING IN THE SANTA ANA FUNDING AREA This Cooperative Agreement (Agreement), which shall have an effective date as of the date fully executed by all parties hereto, is between the County of Orange, Orange County Sanitation District, Orange County Water District (collectively referred to as Orange County Parties), and the Santa Ana Watershed Project Authority (SAWPA), a joint powers authority. SAWPA and the Orange County Parties are collectively referred to as the "Parties." WHEREAS SAWPA is the Regional Water Management Group for the Santa Ana Funding Area, for purposes of Integrated Regional Water Management (IRWM) project identification, prioritization, proposal, and grant funding allocation with respect to the One Water One Watershed (OWOW) Plan and any subsequent updates; WHEREAS integrated planning at a regional scale is an important aspect of water resources management that is valuable in identifying opportunities for actions that create multiple, regional benefits and resolve or avoid conflicts in the watershed, and such integrated planning is valuable in promoting and improving collaboration across jurisdictions and functions at both the watershed scale and within significant parts of the watershed; WHEREAS North Orange County comprises a significant part of the Santa Ana Funding Area, including the San Gabriel River -Coyote Creek, Anaheim Bay Huntington Harbour, Newport Bay, and Newport Coastal Streams sub -watersheds, where water management issues and priorities, such as surface and coastal water quality, differ from those in the upper Santa Ana River watershed; WHEREAS the Orange County Parties, pursuant to an agreement amongst themselves, to wit, the Memorandum of Understanding for Integrated Regional Water Management in North and Central Orange County Watershed Management Areas, are a Regional Water Management Group for purposes of development and implementation of an IRWM Plan; WHEREAS the Orange County Parties have, with the collaboration of other North Orange County stakeholders from the San Gabriel River -Coyote Creek, Anaheim Bay Huntington Harbour, lower Santa Ana River, Newport Bay, and Newport Coastal Streams hydrologic units, developed and adopted an IRWM Plan for North and Central Orange County, referred as to as "the OC Plan," which was developed and written to comply with State IRWM standards; WHEREAS the hydrologic units represented in the OC Plan are currently part of the Santa Ana Funding Area covered by the OWOW Plan; 55A-11 WHEREAS prior to entering into this Agreement, the County of Orange submitted an application to the California Department of Water Resources (DWR), to be recognized as a separate region in the Santa Ana Funding Area, to operate independently of SAWPA for purposes of project identification, prioritization, proposal, and grant funding allocation, with respect to projects in the OC Plan; WHEREAS this Agreement serves to memorialize an agreement between the Parties whereby, in exchange for the Orange County Parties agreeing to forego efforts to form a separate region in the Santa Ana Funding Area for the OC Plan, and, instead, remain a part of the Santa Ana Funding Area covered by the OWOW Plan, SAWPA agrees to abide by the terms and conditions stated herein, in all rounds of grant funding administered by the State of California under Proposition 1 and any subsequent IRWM grant programs. NOW THEREFORE, for good and valuable consideration, the sufficiency of which is acknowledged by all Parties, and in light of the foregoing recitals, the Parties hereby agree as follows: 1. INTEGRATION OF THE OC PLAN AND OWOW: a. SAWPA has incorporated the OC Plan by reference in an appendix of the OWOW Plan. SAWPA has made other revisions to the OWOW Plan before its adoption reflecting the existence of the OC Plan and its interaction with the OWOW Plan. SAWPA will make other amendments to the OWOW Plan in future updates or as required by DWR. b. This Agreement determines how State grant funds for IRWM will be allocated for projects in the OWOW Plan, which includes the OC Plan. Projects allocated funds pursuant to Section 2a and 2b.i. below will not be rated/ranked by the OWOW Steering Committee and will be reviewed by the Committee only for compliance with the requirements of the applicable DWR project solicitation. 2. PROJECT IDENTIFICATION, RATING/RANKING, SELECTION, GRANT FUNDS ALLOCATION AND ADNIINISTRATION: a. Projects in North and Central Orange County proposed for general implementation IRWM grant funding will be rated, ranked and selected for funding by the processes in the OC Plan and not by those in the OWOW Plan. b. IRWM grant funds for the Santa Ana Funding Area will be distributed as follows: i. Thirty percent (30%) of the IRWM general implementation grant funds will be allocated to projects in the OC Plan selected pursuant to Section 2.a. In the event that a portion of an allocation is not expended ill one funding round of a multi - round process, any unexpended funds shall be rolled over and added to the thirty percent allocation for the next round. 55A-12 ii. Ten percent (10%) of the general implementation grant funds will be allocated for projects that benefit both the upper and the lower watersheds in the Santa Ana Funding Area and selected by the process in the OWOW Plan. In the event that selected projects that benefit both the upper and the lower watersheds in the Santa Ana Funding Area do not expend any portion of the 10% allocation, any unexpended funds shall be allocated as follows: thirty-four percent (34%) of any unexpended funds will be allocated to projects selected through the OC Plan as determined under Section 2.a. above, and sixty-six percent (66%) to projects selected through the OWOW for the upper watershed (area in San Bernardino County or Riverside County). iii. Sixty percent (60%) of the general implementation grant funds will be allocated to projects in the upper watershed selected by the process in the OWOW Plan. The Parties agree that projects so selected will not be challenged for funding under this agreement on the basis that the project will increase recycling or groundwater recharge in the upper watershed. In the event that a portion of an allocation is not expended in one funding round of a multi -round process, any unexpended funds shall be rolled over and added to the sixty percent allocation for the next round. iv. Disadvantaged Community (DAC) implementation funds, as defined by DWR, shall be treated separately and will be allocated by the process in the OWOW Plan to projects based on their direct and entire benefit to disadvantaged communities. DAC-supported projects from North and Central Orange County submitted to OWOW seeking DAC implementation funds will be eligible for this grant funding subject to the selection process in the OWOW Plan and will not count as part of the thirty percent (30%) OC Plan funding allocation as required under 2.b.i. c. As agreed upon by the OWOW Steering Committee and SAWPA Commission, ten percent (10%) of the total general implementation grant funding allocated to projects that benefit the Santa Ana Funding Area under 2.b.ii, projects in the upper watershed under 2.b.iii, and DAC projects under 2.b.iv will be allocated to small budget projects that requested grant funding less than or equal to $500,000. d. SAWPA will administer the OWOW program and project grant contracting with DWR and the funded projects' lead agencies. i. In selecting and submitting projects per Section 2.a above, the Orange County Parties will comply with a mutually agreed upon schedule and information requirements for submittals to be included in State -led processes related to IRWM funding such as grant applications, workshops and site visits. ii. Five percent (5%) of DWR Proposition 1 IRWM grant funds assigned to the Santa Ana Funding Area will be used for SAWPA's administration of IRWM funding. 55A-13 iii. The Parties recognize that the overall number of projects funded under each round of Proposition 1 will need to be limited to ensure SAWPA grant administration is effective and efficient. The number of individual projects in the OC Plan which are funded under the allocation required in section 2.b.i is limited to four (4) for Round 1 of Proposition 1, unless SAWPA determines that additional projects can be supported. iv. SAWPA will be responsible for executing a funding agreement with the lead agency and or project proponent for each project selected for IRWM grant funds. v. Agreement of the Parties will be required for any request for DWR to modify or consolidate the funding rounds of Proposition 1. 3. WITHDRAWAL OF APPLICATION FOR SEPARATE REGION IN SANTA ANA FUNDING AREA: Upon execution of this Agreement by all Parties, the Orange County Parties agree to withdraw its application to DWR for recognition as a region in the Santa Ana Funding Area, and agree not to seek such approval so long as SAWPA is not in breach of any of its obligations under this Agreement, or until such time as the Agreement is terminated. 4. GOVERNANCE: The OWOW Steering Committee (SC) will continue to function as the advisory body to the SAWPA Commission as defined in the January 15, 2013 Santa Ana IRWMP OWOW Governance document, but shall, in its recommendations, adhere to the terms of Section 1 and 2 of this Agreement. 5. MODIFICATION: The terms of this Agreement may be amended only in writing executed by all of the Parties. This Agreement may not be modified in effect by changes in policies of any of the Parties without amending this Agreement per this section. The Parties shall review this Agreement after completion of Proposition 1 Round 1 project selection and grant funds allocation, and at least once every three years from the effective date, and the Parties shall revise if necessary. 6. AUTHORITY: The individuals executing this Agreement each represent and warrant that they have the legal power, right and actual authority to bind their respective entities to the terms and conditions hereof and thereof. 7. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. Four (4) duplicate originals of this Agreement shall be executed each of which shall be deemed to be an original. 55A-14 8. GOVERNING LAW AND JURISDICTION: The existence, validity, construction, operation and effect of this Agreement and all of its terms and provisions shall be determined in accordance with the laws of the State of California. 9. TERM and TERMINATION: This Agreement shall have an initial term of ten years from the effective date. After the initial term, the Agreement shall automatically renew for successive terms of ten years each, unless, prior to expiration of the current term, one Party provides notice to the other Parties of its intent not to renew the Agreement. Provision of notice in this manner shall terminate the Agreement as of the expiration of the current term. In addition to expiration of the Agreement, this Agreement may be terminated by any Parry in the event of a material breach by any other Party, or at any time by mutual written agreement of all of the Parties. 10. THIRD PARTY BENEFICIARIES: OC Plan -project proponents whose projects are selected for Prop 1 funding pursuant to this Agreement and meet eligibility criteria for the funding opportunity are intended by the Parties to be third -party beneficiaries of this Agreement. The Parties therefore agree that the Orange County Parties and the OC Plan - project proponents whose proposals are selected for Prop 1 funding and meet eligibility criteria for the funding opportunity may enforce applicable provisions of this Agreement as if they were parties hereto in the event of breach by SAWPA. However, nothing herein shall require the Orange County Parties to initiate or take any action on behalf of OC Plan -project proponents. 11. NOTICE: Except as otherwise provided herein, all notices and other communications required or permitted hereunder shall be in writing, and shall be delivered in person, via e- mail, or sent by registered mail or certified mail, return receipt requested, and shall be deemed received upon actual receipt or 72 hours after deposit in the mail of the United States Postal Service, postage prepaid and addressed as follows: To SAWPA: Santa Ana Watershed Project Authority (SAWPA) Attention: General Manager 11615 Sterling Ave. Riverside, CA 92503 (951) 354-4220, (951) 785-7076 (fax) To County of Orange: County of Orange Attention: Deputy Director, OC Environmental Resources 2301 N. Glassell Street Orange, CA 92865 55A-15 (714) 955-0600, To OCSD Orange County Sanitation District Attention: General Manager 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 962-2411 Orange County Water District Attention: General Manager 18700 Ward Street, Fountain Valley, CA 92708 (714) 378-3305, (714) 378-3373 (fax) In witness whereof, the Parties hereto have executed this Agreement as of the date of the last signatory: 55A-16 [Revise signature page as needed] SAWPA By: Name: Title: Date: 55A-17 COUNTY OF ORANGE A political subdivision of the State of California Date: By Chair of the Board of Supervisors Date: By Robin Stieler Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM COUNTY COUNSEL m Date: 55A-18 [Revise signature page as needed] Orange County Sanitation District By: Name: Title: Date: 55A-19 [Revise signature page as needed] Orange County Water District By: Name: Title: Date: 10 55A-20 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: AUTHORIZE THE NEGOTIATION OF A DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) FOR THE RENOVATION AND REUSE OF THE YMCA PROPERTY LOCATED AT 203-205 W. CIVIC CENTER DRIVE (STRATEGIC PLAN NO. 3, 5A) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 ° Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY -MANAGER RECOMMENDED ACTION Authorize the City Manager to negotiate a Disposition and Development Agreement (DDA) 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 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 the years, the City has made several attempts to solicit proposals for the site, but the substantial improvement costs have posed a challenge to potential developers. To bring the building up to current City codes, there would be an anticipated investment of up to $5 million dollars for seismic retrofit, fire suppression, electrical/plumbing to current code, and other structural improvements. In February 2018, the City released a Request for Qualifications and Development Concepts 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 was evaluated by a selection panel which included representatives from the Community Development Agency, Planning and Building Agency, and the Public Works Agency. 60A-1 Disposition and Development Agreement for YMCA September 3, 2019 Page 2 Below are the results of that review: Proposer Score 1. Howard CDM/OCSA 86.25 • Expansion of OCSA to include a new Technology Center 2. Caribou Industries 67.48 • Boutique Hotel 3. Community Development Partners/City Fabrik 66.75 Veteran's Hall project including residential 4. The Sound 66.00 • A community center/small business start-up incubator Prior City Council Action and Status At the December 18, 2018 City Council meeting, Council was presented with a recommended action to enter into an ENA with Caribou Industries based on direction from the Economic Development, Infrastructure, Budget and Technology (EDIBT) Council subcommittee. No action was taken at that time. At the January 15, 2019 City Council meeting, Council directed staff to work with both Caribou Industries and the Orange County High School for the Arts (OCSA) on a potential joint development proposal for the renovation and reuse of the YMCA building. Since that time, both parties discussed possible joint ventures, however a deal between the two parties could not be reached. On March 29, 2019, the City received a letter from OCSA indicating that all efforts for a joint collaborative project have been exhausted and a "sharing" of the building is not possible. On May 29, 2019, the Board of the Orange County School for the Arts adopted a Resolution stating that a shared facility option was not feasible and if the YMCA was awarded to Caribou, OCSA would have no interest in leasing any portion of the facility from Caribou. The letter and Resolution are attached for reference (Exhibit 1). Howard CDM/OCSA Proposal As part of the City's Strategic Pan Goal to "expand the use of technology as a tool for communication and education in the community", Howard CDM, in partnership with the Orange County High School for the Arts, is proposing to restore the YMCA building into a community - focused Design & Arts Community Center (Exhibit 2). This Center will provide classes in the innovative industries of fashion, entertainment design, digital media, and interior, industrial and graphic design. OCSA will also be partnering with local non -profits, the Wooden Floor and Relampago del Cielo to offer expanded programs for underserved youth. 60A-2 Disposition and Development Agreement for YMCA September 3, 2019 Page 3 A new partnership also being developed by OCSA for the YMCA site is a joint venture with GameChanger Charity and ZOTT, two technology -based companies that will leverage technology and innovation to offer curriculum and programming for OCSA students to become the next generation of creators and innovators. Caribou Pr000sal As part of the City's Strategic Plan Goal to "leverage private investment that results in tax base expansion and job creation", the proposal by Caribou to redevelop the YMCA to include boutique style hotel rooms would generate significant revenue in terms of hotel visitors tax and property taxes for the City. Caribou is proposing to convert the former YMCA facility into a boutique hotel and new grand salon lobby for a proposed Grand Plaza Hotel project on an adjacent parcel (Exhibit 3). This lobby will, serve as the check -in area for the Grand Plaza Hotel and will maintain the historical features of the old YMCA. The main floor will also include a Grand Ball Room and Exhibition Center for community events and conferences. This Exhibition Center will be able to accommodate up to 300 people and will be equipped with state of the art audio and visual equipment. Also included in the former YMCA facility will be a gym, basketball court, indoor pool and spa, bistro for hotel guests, art gallery for local artists, and 26 additional hotel suites on the 21d and 31d floor of the building. All of these uses will supplement the proposed 12-story, 142-suite new Grand Plaza Hotel project that would be developed on a 0.32-acre lot, also owned by Caribou Industries. Caribou has received initial interest from Cambria Hotels, a Choice Hotel International Chain to operate the hotel in both the YMCA and adjacent parcel. An additional component of Caribou's proposal is their commitment to improve the exterior appearance of the YMCA in the first 180 days of a Disposition and Development Agreement (DDA) if selected. Improvements will include painting the building, replacing the windows, architectural lighting, landscaping and securing the site. Recommendation Each proposal offers unique community and economic benefits to the City. But only one proposal will add hotel visitor and sales tax revenue, return the property to the property tax rolls, will beautify the YMCA exterior in the first 180 days, and create fiscalization of land use for this important City asset. Based on these assumptions, staff is recommending that City Council authorize the development of a DDA with Caribou Industries. A DDA is an agreement designed to achieve the development of the YMCA by the City and Developer in a coordinated and comprehensive manner. The Developer will undertake the development of the Site; subject to terms and conditions set forth in the DDA that will be negotiated by staff. Terms such as verification of the developer's financial ability to undertake the redevelopment of the site, commitment by a preferred hotel operator, development schedule milestones, and specific development obligations such as improving the 60A-3 Disposition and Development Agreement for YMCA September 3, 2019 Page 4 exterior of the site will be included in the DDA. Once negotiations are finalized and solidified within a Draft DDA, the Final DDA will placed on a future City Council agenda for ratification by the City Council. The YMCA property will remain in the City's ownership during negotiations. 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 Exhibits: 1. Resolution and Letter from OCSA 2. Proposed Concept - Howard CDM/OCSA 3. Proposed Concept - Caribou 60A-4 EXHIBIT 1 29, 2019 ZTO: Steven Mendoza 0 Executive Director Community Development Agency z 20 Civic Center Plaza, M-25 O Santa Ana, CA 92702 LL CC: Marc Morley Economic Development Specialist City of Santa Ana Dear Mr. Mendoza and Mr. Morley, Thank you for considering our proposal to restore the historic YMCA building into the dynamic and community - focused OCSA Design & Arts Community Center, in partnership with The Wooden Floor and Relampago del Cielo. It is our intention to convert the iconic building into a thriving hub for arts, connection, and community. The new, state-of-the-art facility would provide an opportunity for OCSA to: • enroll an additional 300 students annually, • expand its arts conservatory programs to fit the changing economic landscape, • offer enriched community programs for local residents, • grow meaningful partnerships with and permanent expansion facilities for The Wooden Floor and Relampago del Cielo, • cultivate involvement of tech giants (Google, Amazon, Microsoft, YouTube), and • bring additional jobs to Santa Ana. We have met with Mr. Harrah on multiple occasions and we have explored a variety of possibilities for collaboration with Caribou Industries. Unfortunately, when considering our constraints and needs as a non-profit public school, we do not believe there is a way to effectively share the YMCA building. Three issues remain at the forefront: 1. As we discussed in our last meeting, financing through a New Markets Tax Credit is contingent upon fee ownership. Mr. Harrah has previously expressed interest in leasing a portion of the building to OCSA; however, that arrangement would disqualify us from the financing opportunity. In addition, if OCSA owned the building and leased a portion to Caribou Industries (assuming there were no issue with student safety and security), this would challenge the integrity of our non-profit status. 2. Student safety and security remains a challenge in sharing the building — particularly with a hotel. Our current campus is not accessible to the general public and is managed through an extensive access control system. As such, we cannot have hotel visitors entering the building (campus) and in close proximity where students are present. 3. In order to meet the instructional needs of the school and to honor our programming commitment to The Wooden Floor and Relampago del Cielo and the community, OCSA would need access and control of the entire building. Lastly, as you are aware, Mr. Harrah agreed to withdraw his interest in the YMCA building contingent upon OCSA purchasing his adjacent parking structure. Although we do not see the correlation between these two properties, we have once again reviewed our current parking plan and we remain confident that we have sufficient capacity to support the acquisition of the YMCA. In addition, it would not be economically feasible for OCSA to purchase the parking structure while also renovating the YMCA. Z O Q O Z O iL The conversion of the YMCA building into the OCSA Design and Art Center is the next step in a successful partnership between the city of Santa Ana and Orange County School of the Arts. The centralized location of the structure makes it an ideal place to house our new programs focused on outreach, engagement and design -centric problem solving, leveraging technology and innovation. Should the City Council decide to award OCSA the YMCA building perthe Staff recommendation, ourfinancing is in place and we are ready to move immediately. Thank you for your consideration and time. We look forward to hearing from you. Respectfully submitted, Ralph S. Opacic, Ed.D. Founder and Executive Direcl Orange County School of the Orange County School of the Arts Board Resolution 05-29-19 WHEREAS, the Orange County School of the Arts wishes to expand its arts instructional offerings to include a Design Conservatory and WHEREAS, the City of Santa Ana has offered the community an opportunity to secure the historic YMCA building which would provide a perfect site for our proposed campus expansion and WHEREAS, the Orange County School of the Arts has secured the support and cooperation of two other Santa Ana community groups, The Wooden Floor and RelTmpago del Cielo to partner with the school in creating a community center for the City of Santa Ana and WHEREAS, the City of Santa Ana has two groups interested in securing the YMCA building and the City has asked the groups to work together to determine if there is a possibility for a shared use option and WHEREAS, the school has held multiple meetings to explore the possibility of sharing the building with Caribou Industries and its proposed hotel project and WHEREAS, the meetings to explore a shared use option have attempted to address the school's concerns related to student safety and program integrity and WHEREAS, the school has established a policy of either owning its own campus property or in leasing its facility from the Legacy Fund, a 5016 non-profit established to purchase and hold property exclusively for the benefit of the school NOW, THEREFORE, BE IT RESOLVED that the Orange County School of the Arts Board of Trustees has determined that any shared facility option will not address the contnluing concern for both student safety or the ability to adequately program the building to meet the needs of both the school and of our community partners. In addition, should the building be awarded to Caribou Industries by the City of Santa Ana, for the above reasons, the school will have no interest in leasing any of the facility from Caribou Industries now or in the future. Signed, Attest: .1 m EXHIBIT 2 September 20, 2018 Dear Mayor Pulido and members of the City Council, Thank you for considering our proposal to restore the historic YMCA building into the dynamic and community -focused OCSA Design &Arts Community Center, in partnership with The Wooden Floor and Reldmpago del Cielo. We wanted to take this opportunity to address your comments about the economic opportunity the renovation could have on the city. Over twenty years ago, the City of Santa Ana began a transformational urban renewal project which created a vibrant new cultural community, including the Museum District and the Artists Village. Orange County School of the Arts and The Wooden Floor were honored to relocate and become part of this incredible renaissance in those early years, and Rel$mpago del Cielo is celebrating over four decades serving this community. Now, the revitalization of midtown Santa Ana continues with the creation of the Design & Arts Community Center. This would be a forward -thinking strategy and an impactful long-term Investment for Santa Ana, because of the significance the renovation will have on the creative economy, positioning Santa Ana as one of the cultural epicenters in Orange County and Southern California. As we move further into the information age, activities based on creativity and culture are an essential contributor to a robust economy. According to the 2018 Otis Report on the Creative Economy, creative industries employment increased by 11.6 percent from 2011-2016, and is expected to continue,growing to create 833,800 creative economy jobs by 2021. In California, $16.4 billion of the state and local tax monies can be attributed to the creative economy, which creates a substantial ripple effect for state and local tax revenues from indirect industries as well. On a local level, these three organizations have been powerful economic engines for the city, with thousands of students and parents supporting retail stores, gas stations, restaurants and other consumer -based businesses in Santa Ana every week and an expansion would certainly increase this economic support. By developing young people with critical 211 century workforce development skills, we will be a vital part of the growth plans for Santa Ana. A study done by the Industrial Design Society found that Fortune 500 companies are looking for talent with skills that are naturally honed from an arts education, including: creativity, collaboration, critical thinking and problem solving, ability to deal with complexity, and the ability to integrate multiple skill sets. Acquiring the YMCA building would enable OCSA to open a new conservatory that would provide classes in the innovative industries of fashion, entertainment design, digital media, interior design, industrial design, and graphic design, all of which contribute to the creative economy, according to the Otis Report. Our proposal is the only one where the location is the most essential. Without the YMCA building, which is walking distance to other OCSA buildings on Sycamore and The Wooden Floor, this project will not be possible. The matriculations statistics for students in the three organizations are already very impressive. Ninety-nine percent of students who graduate from OCSA and Relampago del Cielo matriculate to to 0 institutions of higher learning and go on to become contributing members of the economy. At The QQ Wooden Floor, the Class of 2019 will be the 15th consecutive class to achieve 100% on -time high school Z graduation and immediate college enrollment — 54% of their alumni have attained a Bachelor's or Master's degree since 2005. Together, the YMCA expansion would allow the three partners to serve p LL 0 more than 500 additional, well-rounded and creative students each year. By supporting our proposal to renovate the historic YMCA building, the City of Santa Ana will be supporting three entrepreneurial nonprofits with longtime service to the community, as well as Investing in the future of the city's creative economy. Thank you again for your consideration and we look forward to further discussion. Sincerely, Ralph S. Opacic, Ed.D Dawn S. Reese LucyjStana Founder & Executive Director Chief Executive Officer President & Chair Orange County School of the Arts The Wooden Floor Relampago del Cielo EXHIBIT 1 FLOOR PLAN: BASEMENT LEVEL PROGRAM Large Classroom ± 900 sf (10 Rooms) Small Classroom ± 600 sf (6 Rooms) Recital Room 1,775 sf Community Room 1,915 sf Bath 575 sf Utility/ Storage 2,703 sf Response to RFQ #18-024 Proposed Renovation and Reuse of Former YMCA Building Foundation Lobby/ Gallery Multi Purpose Room Dance Room Shop CLASSROOM 600 SF CLASSROOM 600 SF CLASSROOM 600 SF 3,371 sf 2,510 sf 1,315 sf 1,716 sf 875 sf LEVEL 1 MAINTENANCE k °'a 'c cF HT F,p Oq Response to RFQ #18-024 Proposed Renovation and Reuse of Former YMCA Building LEVEL 2 CLASSROOM 600 SF CLASSROOM 600 SF CLASSROOM 600 SF Response to RFQ #18-024 Proposed Renovation and Reuse of Former YMCA Building EWA LEVEL 3 MULTI -PURPOSE 900 SF _ CLASSROOM 900 SF RTMENT NOTE! SCALE 1" = 20' o s w Response to RFQ #18-024 Proposed Renovation and Reuse of Former YMCA Building *' A i t �,Y 1 'f �i August 12, 2019 To Whom it May Concern: For the past 19 years, Orange County School of the Arts (OCSA) has been an integral member of the bourgeoning community of Santa Ana. The school's development into one of the nation's premier arts schools has paralleled Santa Ana's revitalization into a dynamic city invested in its 15 youth, enriching arts and culture, and neighborhood pride. 0 0 Each year, OCSA serves nearly 2,200 culturally diverse and artistically gifted students in grades 0 7-12 from more than 100 cities in Southern California. The population is reflective of our service _, area in that 47% are Caucasian and 53% are from ethnic minority groups. Approximately 14% of 0 students are residents of Santa Ana and 10% receive Free and Federal Reduced Lunch () assistance. While many students commute, many families relocate to the area to enroll their children in the school. OCSA employs over 500 academic teachers, professional arts instructors, administrative staff, support staff, and guest artists. ® OCSA students thrive in our uniquely challenging and nurturing environment, and receive a 0 rigorous academic program coupled with advanced arts training that prepares them to become successful artists, leaders and innovators of tomorrow. Students declare a focus in one of 15 arts Q) conservatories within the Schools of Applied Arts, Dance, Fine & Media Arts, Music, and Theatre. CY OCSA has a 100% graduation rate and students are actively recruited by the nation's top universities and arts conservatory programs. The school also serves the local community through its summer and weekend arts academy, arts and music programs for SAUSD elementary students, and by presenting free artistic performances and programs throughout the county. In order to further our impact, OCSA has identified the historic YMCA building as the ideal location for expansion. With respect to the YMCA's original intent to be of service to the community, OCSA intends to convert the iconic structure into a thriving hub for arts, connection and community. The new, state-of-the-art OCSA Design and Art Center will provide an opportunity for OCSA to enroll an additional 300 students annually, expand its arts conservatory programs to fit the changing economic landscape, offer enriched community programs for local residents, and bring additional jobs to Santa Ana. Resources will include multiple classrooms, an exhibition space for local artists, a motion -capture space, a prototype shop, a living space for artists -in -residence, dance studios, and more. The school has also initiated plans to partner with Santa Ana nonprofits The Wooden Floor and Relampago del Cielo to expand programs for underserved youth. Since our initial RFP submission last year, OCSA has also embarked on an exciting partnership with GameChanger Charity and ZOTT — a venture that leverages technology and innovation to provide cutting -edge opportunities for students at OCSA and throughout the community. With partners such as Amazon Web Services, OCSA will utilize platforms such as Twitch to stream performances and masterclasses with industry leaders to a broader community. In addition, we will develop customized curriculum and programming relevant to the constantly evolving landscape of technology. These experiences will engage renown companies with OCSA, Santa Ana, and the next generation of creators and innovators. (Please see additional information enclosed.) It was also brought to our attention that there continues to be misinformation circulating regarding parking. OCSA absolutely does have sufficient parking to accommodate campus expansion with the acquisition of the YMCA. OCSA maintains an easement for parking in the structure adjacent to the YMCA Monday through Friday from 6:00 PM to 11:59 PM and on 60A-15 weekends from 10:00 AM to 11:59 PM. Furthermore, we are currently finalizing a lease for 90 additional ground parking stalls at 1111 N. Main St. (Please see additional information enclosed) The conversion of the YMCA building into the OCSA Design and Art Center is the next step in a successful partnership between the city of Santa Ana and Orange County School of the Arts. The a) centralized location of the structure makes it an ideal place to house our new programs focused �£ on outreach, engagement and design -centric problem solving. O We are excited about this opportunity and we are ready to move immediately if the City Council o should decide to award OCSA the YMCA building. IZ— (� Thank you for your consideration. All good things, Ralph S. Opacic, Ed. \ Founder and Executiv DErector Orange County School the Arts 60A-16 A fully equipped streaming PC will enable teachers and students to become acclimated to various streaming platforms and to develop the necessary skills for OCSA to enter into the current state of performance technology. Partners Involved I A customized platform for students to safely interact with Amazon Web Services each other and their instructors. • Twitch Several major tech partners • Microsoft have already expressed interest in supporting the • Reddit development/creation. tvwrwca euamo�ce S wHouussw - .:.. - HPs*eacussss HIVGO,COCP zIb V� The complete 'school of the future' experience will involve ARNR, broadcast stations, and several streaming devices all equipped with the necessary software. '-We will also develop a custom platform enabling students to complete projects, fundraise, record, stream performances, and broadcast content. OCSA becomes a recognized leader in leveraging technology and innovation to prepare our students for the 21 sc century and to share our programs and engage with our community on a broader scale. ZOTT And AT&T Collaboration Revolutionizes The Patient Exper... https://www.pmewswire.com/news-releases/zott-and-att-collaborat... ZOTT And AT&T Collaboration Revolutionizes The Patient Experience Patients and their families will access DIRECTV for BUSINESS through ZOTT's hospital platform F**� ZOTT> CHI NOER NEWS PROVIDED BY ZOTr � Jul 31, 2018, 08:00 ET DANA POINT, Calif., July 31, 2018 /PRNewswire/-- ZOTT, the new, cutting - edge patient experience solution, and AT&T, a leader in empowering the digital healthcare transformation, today announced a collaboration to further advance the patient experience. Through innovative uses of cloud computing and over -the -top content distribution technology, the companies are redefining the patient journey. 60A-19 I of 5 8n12019, 5:04 PM ZOTT And AT&T Collaboration Patient Exper.. h ttps://www. prnew sw ire. coin/n ews-re I eases,'zort-and-att-co I laborat... 2of5 Teens use the ZOTT platform during their hospital stay to remain connected with friends and family. ZOTT is available via any web -enabled device within the hospital environment. Content includes exclusive live -stream programming featuring online celebrities, intelligently designed educational materials, custom and private Minecraft virtual playground, live chat messaging, and a comprehensive library of gaming options. Imagine being stuck in a hospital bed for months, or even years, and being unable to go outside, pursue passions, or stay connected with the world. To make matters worse, you, and all visiting family and friends, only have a few local television channels to watch on a small TV that sits on the opposite side of the room. This is a reality that millions of people unfortunately face every year. Now imagine a world where patients, families, and caregivers can access unique content, original live streams, countless TV channels, and compelling social experiences across all of their devices from anywhere within the hospital. Thankfully, Taylor Carol, a cancer survivor who spent five years in a hospital and then went on to graduate from Harvard to become co-founder of ZOTT, together with the ZOTT team have made this comprehensive experience the new reality. With ZOTT, everyone has the freedom to consume content in the way that's most comfortable to them. A patient can be in her hospital bed watching one of ZOTT's daily original live strGe0rrls f 6 a popular YouTube influencer 1 8/7/2019, 5:04 PM ZOTT And AT& nor fleLle''�ir/L�Iaott-and-att-collaborat...d fath"lamOnepoWe=IehrmaaV game library on their laptop. Meanwhile, thanks to ZOTT's new relationship with AT&T, the patient's brother can simultaneously choose from extensive DIRECTV for BUSINESSSM content. From his tablet, he can watch his favorite football team play live or even find an episode of his favorite show that he had missed. Whether in the patient's room, a visitor waiting area or the cafeteria, their content won't be interrupted. ZOTT's wireless content delivery network is active throughout the entire hospital. ZOTT and AT&T are reimagining the patient experience. "ZOTT is the best thing that has happened for me during my hospital stay," said Brittany, a patient at C.S. Mott Children's Hospital. "ZOTT was created out of a need to provide patients and their families with engaging content, meaningful interactions, and innovative streaming technology that improves long hospital stays and physical ailments," said Jim Carol, ZOTT and GameChanger Charity co-founder. "AT&T enhances the content we are able to offer patients, which furthers our mission and gives patients greater choice in how they view and engage with digital and video content." By improving patient satisfaction, AT&T and ZOTT also seek to help improve clinical outcomes and the physical well-being of patients. Research shows that increased patient satisfaction scores correlate to less time spent in a hospital, higher quality of care, lower readmission rates, lower mortality rates, and lower odds of a minor complication.' "AT&T supports healthcare organizations as they transform from focusing on healthcare to human care," Maria Lensing, Vice President, Global Business Healthcare Solutions, AT&T. "Working with ZOTT to provide DIRECTV for BUSINESS on any device in the hospital helps move them a bit closer to being people, not patients." ZOTT will further integrate AT&T'6(OAe� �tto the patient experience, an 3 of 5 8/7/2019. 5:04 PM ZOTT And AT&T n°deavor ��ie companyeisauniquely positionPe oWc%urider`t°�e�eac�e�s5iip o,Tid-att-collaborat... Jon Shipman, chief technology officer for ZOTT and former founding member of Twitch. "Too many hospitals haven't yet adapted to this sweeping cultural change, said Shipman. "A shift toward BYOD (bring your own device) design, built around seamless access to engaging content can have a huge impact on patients with serious illnesses while saving costs and streamlining operations." ZOTT offers their comprehensive service through a cloud -based content aggregation and distribution platform, where new content and experiences are added daily and all data is protected at rest and in transit. Furthermore, ZOTT employs a team of moderators who are continually watching content and interactions to ensure ZOTT is a safe space for patients, family members, and the hospitals themselves. Patients can play, learn, and socialize while hospitals can trust the content that is being displayed. 1 Relationship Between Hospital Performance on a Patient Satisfaction Survey and Surgical Quality About ZOTT ZOTT is a new cloud -based multi -channel entertainment and educational content platform that is revolutionizing patients' freedom to play, learn, and socialize within the hospital environment. Working with patients and healthcare leaders for the past decade, ZOTT is reimagining a new patient experience model. As the for -profit subsidiary of GameChanger Charity, ZOTT supports the non-profit organization's mission to improve the lives of patients around the world through technology and innovation. To learn more, visit https://info.zott.ty/. Follow our journey on social media: 4 of 5 6OA-22 8/7/2019, 5:04 PM EXHIBIT 3 LOZZ6 VJ'VNVV1NVS 3MQ tl33ND JWJ'M 60Z'S0Z SRN3J iN3A3 VDWA 03SOdOYd soots IStl0 { � •� e: yy I N F n. Of o Y > S �w w w� W Y� � aUice sW iW r d �O _y F Z o7LU a iaw L~z � � �. w �0zizaa O �8u o ® U z wzam s n ^ ° LL) m o O � C' O< <�ZQ H ®� a H LU x z e € H 77, �z L J N� 00 s. i:1 M 1OLZ6 V7VW VINVSMIN UIND JWJ'M 60Z-SOZ NnaE:l HUND LN363 VDWA 035OdOW Noov aaixi a Y N z r O F � � O a � Q p� - c z Y w a � w fw0 v = 8�0 yy a M z° M a z OC/) g 8 o w _y 4� = F Y m REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: DISCUSS AND DIRECT STAFF TO PROVIDE RECOMMENDATIONS TO STAFF REGARDING BOARDS AND COMMISSIONS MEMBERS (STRATEGIC PLAN NO. 5, 1) CITY MANAGER REQUESTED ACTIONS CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on Is' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Review current board vacancies and appointees with expired terms to direct the Clerk of the Council to initiate the process for appointments and/or take any removal action. 2. Review the appointment of members that have exceeded the permitted number of unexcused absences and, if desired, direct Clerk of the Council to take removal action. 3. Review appointments post 2018 General Election for Ward 4 and, if desired, direct Clerk of the Council to take removal action. DISCUSSION At the August 201" City Council Meeting the roster of current board vacancies and expired terms was presented to City Council. At the same meeting a request was made to return to Council to provide the opportunity to take possible action on appointments and/or removals. The Roster of Current Vacancies and Expired Terms along with the Biannual Attendance Report are provided as attachments. With the exception of the members serving on the Personnel Board, the City Council has the ability by majority vote to appoint or remove any serving commission member. In addition, there is past practice for the removal of members on specific commissions that have exceeded a pre- established number of unexcused absences. Specifically, the City Council may remove board or commission members who incur four (4) unexcused absences within the six-month reporting period for the Youth Commission. The City Council may also remove board or commission members who incur two (2) unexcused absences within the six-month reporting period for the Community Redevelopment and Housing Commission, Environmental and Transportation Advisory Committee, and Santa Ana 2018 Measure X Citizen Oversight Committee. Examination of the attendance report reveals that only two appointees have exceeded the respective attendance requirements, alternate member Alecc Banda and associate member Brenda Medel on the Youth Commission have exceeded the limits for permitted absences. 65A-1 Boards and Commissions Members September 3, 2019 Page 2 STRATEGIC PLAN Approval of this matter allows us to meet Goal #5. Community Health, Livability, Engagement & Sustainability, Priority #1, Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities. FISCAL IMPACT There is no fiscal impact associated with this action d � Daisy Gomez, MM Clerk of the Council Exhibits: 1. Roster of Current Vacancies and Expired Terms 2. Biannual Attendance Report 65A-2 EXHIBIT 1 v 7 V Q O Z � 1' Q O O O N N N O O O N N N N ri N ri N �-1 h Z V 7 0 C E N v I v i Q I v Z I Q I Q I N I N I I N I W W W rl ei ei O O O � ti ti N N N '-I ri i I rl I I Q V V E > v > > 7 2 O O C C y y N N C N Gl C C C C E E C E E E E u E O O pp O V V C V L L C L i i a i I I 65A-3 i M v I o V I v N Q a Gl V I I a"+ c Q Q m Z Z Q I V V a ti O N M N •-I r1 N O N •-I i N m m a O O O V W � a m m O c m Q L1 U m m a c m m I � a y m z c m I r I ° o h a I E � c o o c a c m c a I I I I w r t t: 65A-4 a ti m ao 0 0 e-I c4 N N ci ci V � Q) 41 a a c c m m Y C O 2 a E c N E c u O Q Z Q Q Z Z m � Q V > m -o m a m � c c m m G � N N v m E � Y Y .G Q O V 73 C V )_ E vC C N E < u = m u z I- F Z Z Z u u u 7 > J Z N O m � v > I m I I I v I I o m w L c c m O O W N N o � E E Q y U U El 5 n X U Y I Y I I I I m � I � V Q Q I � Q Q O u u I O O I O I C G C P c c I 0 0 .o N E E m G u u S L c 0 5 i a > d 65A-5 c O E E u Y I Q Z O u c O 2 m t 0 v c c � u d a E Y E o fl m c C O U O E N C E ''- A E w v � `o u K 2: C G m o N W F W a� W � Q Q J > U � N m w O v 3 Q Z 0 K O ca T M 65A-6 u 0 a Z Q a > > 00 0 a a C � O � v E Y = u C L 0 E > Q U T G m a a H I z V U > > N p u 9 N C C E E O O 0 0 O O 3m 3m li « O « O j 'd j u w w u u O O 3m 3m I F h H Z ¢ ¢ l a ¢ a > a > > a > « O E v « O O O d N E m d N d N v° C C C C E E E E O O O O u `o u u `O u `o O -m Y -O ` -o 3m 3m I I I I 3m 30 i I I I I I I 65A-7 N i 65A-8 EXHIBIT 2 J u z 7 ® ra `u r o N uw z Zhu Q�2 oIL z� w Naw - Lu� ozo� o N P _z uw} Q� J Z M� W e O E O u u LA e ro sg H a a = C N X X X X X a a u b.. �p X X X X X rz 2 p _J O0 P W X X X X a LA =a G c ry X X X X X a z u w J w p Wv w� N Ya. � R p ta X X X X X Z Q � i a �S m m ro n a �i z (, 0 d R V opO L C LA w v a nmS w Q u C 4 u w W u on z L. a E LA C E ® 0 i r 65A-9 65A-10 V 7 0 Vr QON a�z C� LU LL rr®Z0.' y0 U�� Z dv Q z z Q m Z O CQ9 Z U) m O w O .J L" w 17 LU Ix Z U wo M e N x x w x x x x x x x N d Q W d x x w x x x x x x x ch m X x x w X X X X w x G N x X x x x x X X X x N x x x x x x w x w x N w x w w x X x X w X t7) N U Q z U w ,J w in W LL N w X W X X x X X W M } m �O � er Z Q � cm X X X X X x x X x W 10 Cf � LU m ` Q 6L a J IL w 0, h m � a w 0 N 32 (® 65A-11 65A-12 V/ /:3 �yL4. r+r IN i dry r V Q �0uu aaZ 0 IL c� aao 0Z UW3 Z Q4 Jv Q a Z z 1 ui z 0 y 0 a O m a+ WG � C ^i 'A ID x x x w x x x ul Wil �uI , �yy' W =o x x x x x y �cUlf I LL W x W x x x x x o O 00 W x x x x x x x Wcc y G? ce9 w G 0 4 gtO� In OG * L m C c c L m trf G� OZ i c W' y m 0 d Y ® ` O c m u m II C 0 a. a 06 c 65A-13 65A-14 J a z 3 U Qoa QOz IL ®z,( �aa z 3L� Q Q In z O N O v �m 0z rA z Q J 2, x x x x x x x x W `r Lu n", a x w x x x x x x W, �ul b W ro d _� 4 d LU E ' s W e1 ai C` w W. 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LG� 0® O to; C; '�d W � L'N m� Cto A� 4 1 9y�f o "C W O �t{0 �G. �l�`0' O N ® `� 8C {(0/y�1 t T C b �W G z 65A-27 FU- z W v z° 65A-28 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: PUBLIC HEARING - CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (STRATEGIC PLAN NO 4, 1) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 20d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the submission of the Consolidated Annual Performance and Evaluation Report to the U. S. Department of Housing and Urban Development. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its special meeting on August 14, 2019, the Community Redevelopment and Housing Commission recommended that the City Council authorize submission of the Fiscal Year 2018- 2019 Consolidated Annual Performance and Evaluation Report to the United States Department of Housing and Urban Development by a vote of 7:0 (Frazier and Tardif absent). DISCUSSION The Five -Year Consolidated Plan is a comprehensive planning and application document that covers the three entitlement grants that the City receives annually from the U.S. Department of Housing and Urban Development (HUD), the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Program (HOME). The Consolidated Plan outlines a strategy for using the three grants and other resources to meet community needs as they were identified in the Plan. As part of the Consolidated Plan process, HUD requires the City to submit a Consolidated Annual Performance and Evaluation Report (CAPER) (Exhibit 1). The CAPER describes the activities and accomplishments for the three federal entitlement grants during the past Fiscal Year. It also reports on the City's success in achieving the five-year numeric goals and objectives that are established in the Five -Year Consolidated Plan. Fiscal Year 2018-2019 is the fourth year covered by the 2015-2020 Consolidated Five -Year Plan. The following table highlights accomplishments achieved during Fiscal Year 2018-2019 with funding from the CDBG, ESG and HOME Program: 75A-1 Consolidated Annual Performance Evaluation Report September 3, 2019 Page 2 General Activity Accomplishments • Americans with Disabilities Act Improvements to the north Santa Ana Regional Transportation Center (SARTC) restroom. Capital • Completed Willits sidewalk improvements. Improvements • Completed Edinger sidewalk improvements. • Completed demolition and created an open space at 6th and Lacy for future community park. Economic Development . Provided three small business incentive rants. 9 • Provided funding for 14 nonprofit organizations to administer 18 programs and served a total of 2,489 persons. Specifically, youth services provided by The Illumination Foundation, America on Track, OC Children's Therapeutic Arts Center, Neutral Ground, YMCA and AIBI included tutoring, education, recreation, fitness, and a classical music program. Youth and family services provided by The Cambodian Family and the Delhi Center included tutoring, education, leadership, community beautification, parent workshops, and anti - bullying workshops; Criminal Record Expungement and Domestic Violence legal services provided by the Legal Aid Society of Orange County. Homeless Public Services Services provided by WISEPIace included shelter and supportive services to homeless women. Access to health and social service programs by conducting outreach, education and enrollment, provided by Community Health Initiative of OC. Stop -gap housing, trauma -informed care and wrap —around services to homeless women provided by WISEPIace. Fair housing discrimination, investigation, education & outreach activities, tenant & landlord - counseling, mediations, & assistance and activities to affirmatively further fair housing provided by Fair Housing Foundation. Alcohol and substance abuse services provided by Second Chances of Orange County. Economic development, financial counseling and housing legal assistance provided by Public Law Center. • Started construction of a 75-unit affordable permanent supportive housing project with wrap -around supportive services for HUD -Veterans Affairs Supportive Housing (VASH) eligible homeless veterans at the Santa Ana Veterans Village of which 3 units are HOME -assisted units. • Approved a Loan Agreement for $352,962 in HOME Program funds for the development of the Santa Ana Veterans Village project. • Completed a total of three single family rehabilitation projects which included a Affordable total $270,978 investment of CDBG funds. Housing • Issued FY 18/19 Request for Proposals for Affordable Housing Development including $2,791,960 in HOME Program funds and $1,534,129 in CDBG Program funds. • Following the issuance of the RFP and review process, the Community Redevelopment and Housing Commission recommended City Council to approve a pre -loan commitment of $3,007,489 in HOME Program funds for the development of an 86-unit new construction project at the Crossroads at Washington. • Approved a commitment to resubordinate existing HOME Program loans to allow for the resyndication and rehabilitation of a 126-unit project at the Cornerstone Apartments 75A-2 Consolidated Annual Performance Evaluation Report September 3, 2019 Page 3 • Approved a pre -loan commitment of $1,687,047 in CDBG Program funds for the development of an 89-unit affordable permanent supportive housing project with wrap -around supportive services for HUD -Veterans Affairs Supportive Housing (VASH) eligible homeless veterans at the North Harbor Village. • Provided 5 Down Payment Assistance Workshops and participated in 2 Homebuyer Fairs • Approved an Amendment to the Loan Agreement for an additional $407,871 in expiring HOME Program funds for the development of 57 affordable housing units at the Santa Ana Arts Collective of which 8 units are HOME -assisted units. • Code Enforcement staff responded to and addressed 4,454 complaints covering 3,216 residential properties of which 1,702 were single family residences and 1,514 were multi -family residences within the CDBG eligible deteriorating and Code Enforcement deteriorated areas. • Code Enforcement staff issued 43 Notices of Violation, 64 Notice and Orders, and 5,746 Administrative Citations involving residential housing. As a result of these efforts, property owners have made approximately $1,932,659 in repairs and upgrades encompassing 439 properties. • Provided assistance to 1,278 persons through Street Outreach, Homeless Prevention, Rapid Re -housing or Shelter. This number includes 184 children and 57 individuals who reported as a Veteran. Numbers also include 372 Homeless individuals who reported having a chronic health condition, 401 individuals who Services reported having a mental health problem, and 304 individuals who reported having a physical disability. • Executed an Agreement for $200,000 in FY 19/20 Emergency Solutions Grant funds for the operations of the Link interim emergency homeless shelter. The draft CAPER reflects numbers that were available in the HUD system as of August 7, 2019. The final CAPER will capture performance information from the fourth quarter that is not currently available due to billing and performance reporting. For this reason, several tables in the draft CAPER are incomplete. Each table in the final CAPER will be complete to show the progress made in meeting the Five -Year Consolidated Plan objectives prior to submittal. The CAPER is due to HUD no later than September 30, 2019 and staff must use the information that is currently available. HUD regulations require that the CAPER be available for a 15-day public review and comment period prior to its submittal. On July 30 and on August 18, 2019, a public notice was published in the Orange County Register, La Opinion, and Nguoi Viet News indicating that the draft CAPER would be available for public review and comment from August 12 through September 3, 2019 and that Public Hearings would be held on August 14 and September 3, 2019. The draft CAPER will also be available for public review on the City's website. All comments received in written form and at the above mentioned public hearing will be included in the final document submitted to HUD. Due to the timeframe for submission, the final document may include minor revisions pending final activity and expenditure reports. 75A-3 Consolidated Annual Performance Evaluation Report September 3, 2019 Page 4 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #4 Fiscal Sustainability, Objective #1 (maintain a stable, efficient and transparent financial environment). The CAPER reports the City's accomplishments and expenditures during the 2018-19 fiscal year associated with the following HUD entitlement grants: Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Program (HOME). FISCAL IMPACT There is no fiscal impact associated with this action Steven A. Mendoza Executive Director Community Development Agency Exhibit: 1. Draft Consolidated Annual Performance and Evaluation Report 75A-4 EXHIBIT 1 DRAFT CITY OF SANTA ANA CONSOLIDATED ANNUAL PERFORMANCE & EVALUATION REPORT JULY L 2018 - JUNE 30, 2019 75A-5 EXHIBIT 1 CITY OF SANTA ANA DRAFT CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT 2018/2019 TABLE OF CONTENTS CR-05 - Goals and Outcomes - 91,520(a)..................................................................................... 1 CR-10 Racial and Ethnic composition of (person/households/families) assisted ........................ 7 CR-15 Resources and Investments 91.520(a).............................................................................. 8 CR-20 Affordable Housing 91.520(b)......................................................................................... 13 CR-25 Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ..................... 16 CR-30 Public Housing 91.220(h); 91.320(j)................................................................................ 19 CR-35 Other actions 91.2200)-(k); 91.320(i)-U)......................................................................... 20 CR-40 Monitoring 91.220(d, e); 91.520(c)................................................................................. 25 CR-45 CDBG 91.520(c)................................................................................................................26 CR-50 HOME 91.520(d).............................................................................................................. 27 CR-60 ESG Subrecipient Information......................................................................................... 30 CR-65 Persons Assisted ESG 91.520(g)....................................................................................... 33 CR-70 Assistance Provided and Outcomes................................................................................ 34 CR-75 Expenditures.................................................................................................................... 35 ATTACHMENTS CDBG Activity Summary Report PR03...................................................................... Attachment 1 HOME Program Income Detail Report PR09.............................................................Attachment 2 ESG Financial Summary Data PR91.......................................................................... Attachment 3 HOME Compliance Inspection Report ............................................................................ Attachment 75A-6 EXHIBIT 1 d T E E r OD L N d N E 0 OD O' E a 3 O ar 0 m 0 u N m Y •O -r3m.•-•- N _. 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N CL W ,iat :3 O V RV a Lky a w tM m W m isr " E Z ) E N z N = N E E ^ ky ` m u aNi o o c 2 v x 0 x E v N m 2 E °_ E o m h t n E c v c E> E c v E i c E> 0 0 a 0 p v 0 0 0, 0 0 m o 0 m a 0 0 2 Z of Z U CI x Z N Z U O Z U O u9 C b4 N E 'c 0" no C E � c a al -p U 00 00 .O •G N .a F+ ei C C .p N `O a a =ca N ._ u N a y y LL O N C vCL N U U O Fy Ne L U •p OJ � a a 'o '� •> ar � m o 'no O a EXHIBIT 1 d' 75A-10 EXHIBIT 1 Li w c .o CL VI c 7 E E u 0 0 v w E 0 a c .2 0 w L Y .w, L 0 0 E a a c m m N 0 N co O N v r E 0 a .Q c w E L v. E u U m a c 0 CL CL O c 0 2 w a m w L Y A In u � w � CL c cu m c a c `D w ° m E o u ` to °1 0 0 M e w E C) Y > O me v) In w O w E CL 0 w a w L Y 0 a c w E m O . ah` w � O w x Ln to' 0 LL 'c m Q1 O a 5 x E n 0 oa m on w > y7;i� L ,:iT" o fir` '`,��„o C+r-: r Y E W ,D �.w .� •i '� ua Lbfn u S,°o d, ay.L g^ v Et m U�, a-=9 E O c E o Y F v om"m o CYU.':`:. to c= 5 r >° `o > rn° a E c c nxn r°Cb Y 0 4 m m Ln E N m E �° a`o v° c �' w o. o N E aci 3 m MOti m _ m L n Y .0 a u d a E �"' L w c0 < E3 a EAl M o° 0a W y v 'o U Q- M m u x E w;�« ° 0= m 0 c m m° N v m° t m'v" m c .m- E 'o o E o c Z c w en N O chi CL U O U m w 3 Q 7 N tip' yh m\ bD W 6 w w w °' o= o 0 0 o o Y m Z a w a` o Y w m in w 3amv �C7 c. °> °cw>m w m E c w c oQ L° ° o v m u o o a :: oo rL 0. o • • • • • • • • • • �,G U O N � a N C c (U D O w Lc c c o h 00 Ec m U ° c m w c E ?7 G x0 O i a w G a m w Y L. c ,N w E o �v c —w m E O w L CL w w a cn m � v _ m c r � c cn Ti 0 ° c = m o > o .� w a E ° C to O w a < c E w u .Q cu c W a V r w H w 0 i ob c O L .Y c w cu to C O c c 0 u m c E O ` u > o w E z m00 m Y c c E o w m 0 u 3 j ° a 0 C � N w w ti u U m Z Ln 75A-11 EXHIBIT 1 N r w a Q o. ti a to c a O c w w m n c m m C a L C O Ln tV N L+1 Ln N T ai m E O a a m w 'O m E m t w C O a p a a pp L Y o p co we o � 0 N u e v yw+ m c w y r r ° ° a aj 7 O m aw+ L z ? v ° a o c x 4 _w w c { v o c o 'o v s m o c L fit` j w h m m (i w c. w E L w T w w Or'..U•NI�_ E a� o O u v c O` w O o' Y N U ° T Lno 0 3 a 0 O m w C o w � w L c w-1 0H O w % C °' ^ Oc Y V= W Ln ` Y N G N y O C7 YO a) C w L 0 C i H h O o m w 3 c to O to -0 a w L to G w o. � w w w y c E c w a Oi O O u W T a ti o S s d N c O u G w w 0 a E m Y a L, m Ln v W a w � N c u c r y u u o r m E 'o a p u C 7 r E u Y 3 0 u u N w Y Y L o tm' own ° ° � C b c F- m me u m c u - C 'uui O V m w a MO " E `w E o L° u u 0 Y 3 FL- C L Y c � o t IC m w m in O 3 a a it C m u m a Q m c ° w z v o C � '> m try m c c o a ? o 5 Lu o v pw a 3 U oB w o' c c C Y O. > ` ` o 'o o w Ur 3 H N N u � E v 06 -0 > o v w 0-0 w _ E 3 w m oe E 0 C] U W p C S a L° 0 c 2 E m 'O R E rt m U Y s;O w �Q ti v v m o oo c w L m 6 E> F O c o o L 42 a=" c mCL w-0;=o o x ON— _z c u m h E t ° v u 3 O O W N w a CL N U w w .N E m v O > O �w O a O a u 75A-12 EXHIBIT 1 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) CDBG HOME ESG White 1,992 201 917 Black or African American 23 10 178 Asian 35 ,T 34 30 American Indian or American Native 22 0 67 Native Hawaiian or Other Pacific Islander 7 4``1�? ry 3 21 Total 2,079 7 =248 1,213 Hispanic )J313 650 Not Hispanic v_ --115 449'mM_ 617 Table 2 — Table of assistance to racial and of fufids:,. d The table above only captures the lndtvl0dA w19 respondedlito the race/ethnicity question.. HUD requires the City to indicate if resources wil�re IfAd-to ben{efitareas with racial/ethnic minority concentrations. Based on the_Unsus BureautMhmclty%race esimates, -nta Ana is approximately 77.3% Hispanic/Latino. This ptllatlon`rg ides withmilie Ci&Me secondj�argest minority population in Santa 15. Ana is Asian, which cortiiprise approxlrit tely 11 6%.o�,3f Tie city's popuration. .. a The numbers in the race category�in#he above table forSNhite includes mostly Hispanics. This is because there is fto rate S tifically'far�Hispanics rn r'al5 eporting standards. Hispanics state this as ethnicity 4n these forrQ when a race, is asked, HIs p n cs typically choose white. CAPER 7 0M3 Control No: 2506-0117 (exp. 06/30/2018) 75A-13 OI/:IN. M CR-15 - Resources and Investments 91.520(a) Identlfv the resources made available Source of Funds Source Resources Made Available Amount Expended During Program Year CDBG public -federal 5,816,959 2,968,107 HOME public -federal 1,337,942 1,097,322 ESG public -federal 475,700 351,326 Table 3 - Resources Made Avallable Please refer to IDIS reports: Reported numbers on the CAPER reflect what wasaa9ta'd on CDBG Flnandlal: Drawdown Reports on August 5, 2019. Prior to sUiirpission to HUD, new rep[ HUD system and numbers will be changed to reflect fTie most current figures 'ter the last quarter of the fiscal year. n a 3 Identlfv the eeoeraohid.drstri6i tion and latatinn nf3W4a f nantc Y ry, HOME and ESG be pulled from the ng the close-out of Target Area Planned Percentage,of i Actual Percentage of Narrative Description "E vAllocatldk2l ;`Allocation Table 4 — Capital phojects and code errfo otherservicest'n uding public-, and moderate-Tncame clientele Ottrivestments fir% were targeted to low- and moderate- income areas. All is development, and housing are targeted to serving low - CAPER f? OMB Control No: 2606-0117 (vp. 06/30/2018) 75A-14 0:cu:311IN Leveraging Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan. Cities receiving HOME Program funds are generally required to provide a HOME match of 25% of their annual allocation. The City of Santa Ana has qualified fora HOME match reduction of 100%, therefore not requiring the City to provide any match as parf,of the HOME Program. The ESG program requires a dollar -for -dollar match requirement ,However, the City requires the match la - requirement to be met through its funded agencies T.4' i- _Q match requirement for the CDBG program.. Dn In addition, the City of Santa Ana's local lnciti§W1ry housing ordinan o.rovided $4,775,000 in funds that were matched with HOME and CDBG#cads forthedevelopmel fTthe Santa Ana Arts Collective, a 58-unit multi -family affordable housing proeF `'TOME funds"- 1�1 also matched with 75 Project -Based Vouchers for_jtkevelopa Ana Veterans Village, a 75-unit multi -family affordable housing protect;#„orftomeless vetera.arj . Fiscal Year Summary HOME Matdhn;_ 1. Excess ,F,atch r,qm pnor dderaL#Iscbl ar 0 2 Matchcontribtne0i during current Federaiflsyal_ ear= p 3 To'talmatch available foesurrentfPderaI fiscal year (Line 1 plus Line 2) 0 4 Match1jabilityfor currentfederal#spalyear p 5. Excess matC�l,carried over foneA Fede" fA(_fiscal year (Line 3 minus line 4) 0 Table 5 — Fiscal a1 Y - nvmF 1v1a& A report a Nt s CAPER r7 OMB Control No:2506-0117 (exp. 06/30/2018) 75A-15 EXHIBIT 1 k ) .2 m ;|=7 !03)k ) vo 2\!� �0 73 /f /\ ) F |t00 ]E_ / ts �« « k ACLM— IV } a~/ >WE CL to ba ` (�k §k{ CLCL \ !ter \m0 ( } % ),# /}}\_j} a § ■ 75A.16 EXHIBIT 1 Minority Business Enterprises and Women Business Enterprises — Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Total Minority Business Enterprises White Non - Alaskan Asian or Black Non- Hispanic Hispanic Native or Pacific Hispanic American Islander Indian Contracts Dollar Amount 0 0 0 0 _ 0 0 Number 0 0 0 0? ice' 0 0 Sub -Contracts �_ , Number 0 0 0j eti" "' �..y 0 0 Dollar Amount 0 0 0 0 ,0. 0 Total Women N AO& Business Contracts Dollar Amount 0 0 =_ 0 Number 0 0 D Sub -Contracts 4 N, Number 0 OT Dollar y rt� Amount 0 able 8 _MI Business and Women Busines`EttTerorises::`� Minort_V wners of Ren 47N,.,ropeA ;,Indicate the number of HOME assisted rental property owners and the tofal_amount of H(5 unds In Chese rental properties assisted Total Minority PropertVlDwners White Non- e Hispanic Alaskan _ Asian or Black Non- Hispanic Native _ or Pacific Hispanic America¢` Islander may_ Number 0 0 0 0 0 0 Dollar Amount 0 0 0 0 0 0 Table 9—Minority Owners of Rental Property CAPER 11 OMB Control No: 2SOM117 (exp. 06/30/2018) 75A-17 EXHIBIT 1 Relocation and Real Property Acquisition — Indicate the number of persons displaced, the cost of relocation payments, the number of parcels acquired, and the cost of acquisition Parcels Acquired 0 0 Businesses Displaced 0 0 Nonprofit Organizations Displaced 0 0 Households Temporarily Relocated, not Displaced 0 0 Households Total Minority Property Enterprises White Non - Displaced Alaskan Asian or Blac ' Non- Hispanic Hispanic Native or Pacific ,.,,. Hispanic American Islander Indian 5 Number 0 0 0" 0 0 F, 0 Cost 0 0 0 _ 0 0 r 0 Table 10 CAPER 12 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-18 EXHIBIT 1 CR-20 - Affordable Housing 91.520(b) Evaluation of the jurisdiction's progress in providing affordable housing, Including the number and types of families served, the number of extremely low -Income, low-income, moderate - income, and middle -income persons served. One -Year Goal Actual Number of Homeless households to be provided affordable housing units 300 25 Number of Non -Homeless households to be ,M provided affordable housing units 447 - 0 Number of Special -Needs households to be , provided affordable housing units 0 x., 0 � .ter Total 747 n_Wh 25 Table 11—Number of Households One-YearGoaf 'x Act" Number of households supported thl',u h w Rental Assistance 's �. �1�600 sc °.. 2,700 Number of households supported through The Production of New Units_ 131 0 Number of households st+pported through .. Rehab of Existing Lfiis . u 0 W w q Number of househofds supported trough y. Acquisition of Existing Unit$ - _ t' 0= 0 Total 00 2,632 Table Discuss the these goals. of nousetraids Supported -`- a Numbers include the and outcomes and problems encountered In meeting Vouchers and excludes Emergency Solutions Grant funding. The Housing Choice Voucher Program served over 2,700 families this fiscal year. Although the Housing Choice Voucher Program has been effective, the limited housing stock and low vacancies have hindered the program's abilityto serve the maximum numberof people the program can assist. All of theprogram's voucher holders continue to compete with one another to locate eligible units. While rental assistance programs have been successful, limited housing stock and low vacancies hinder the number of people who can be served. Therefore it is important to continue seeking ways to develop affordable housing units to meet the demands of a variety of individuals, CAPER 13 OMB Control No: 2506-0117 ("p. 06/30/2018) 75A-19 EXHIBIT 1 The one-year goal of 300 homeless households to be provided affordable housing units included the PSH developments listed below, projects that are still in the pipeline and the award of HUD-VASH vouchers. The actual number of 25 reflects a more accurate number. In addition, over 50 individuals at the Link shelter have received successful housing placements. The one-year goal of 447 non -homeless households to be provided affordable housing units reflects the total number of affordable housing units that were under development at the time the Annual Action Plan was prepared. The actual numbers reported in the CAPER will reflect HUD funded units for projects that are completed during the fiscal year. The actual number of 0 refleg4that the HOME and CDBG funded affordable housing projects are still under development. IM,, The one-year goal for the number of households reflects the number of units in development for Village, Both projects are currently under consi vouchers and Santa Ana Veteran's Village is receii, based vouchers. Both projects are anticipated to Three single family homes were reha Discuss how these The City has a numbee" Tf jroje future Annual Action Plans li 1. developmentmcludipg the San These projects are HOME,and projects 1 receive a totaj .._§ supportivg j§ysing for the cFir Legacy Squar&qTombined, HUD using CD Impact d thr6u h;,the production of new units (131) kls, Aqua Housing and Santa Ana Veteran's ,, 7 Aqua Housing`aisreceiving 56 project based 163 in HOME fund!6,?_ 75 HUD-VASH project - in the next fiscal vear3,. funds. in the pipeline, which`re anticipated to meet these goals in e new MFdable housing projects are in various stages of ris Vlllage,Santa Ana Arts Collective and North Harbor Village. Id and A�ill'produce 221 affordable units. Three additional ed vouchers for the development of 164 units of permanent pless. These projects are Aqua Housing, Francis Xavier and ITproduce a total of 385 units of affordable housing. CAPER 14 OMB Control No: 250"117 (exp. 06/3012018) 75A-20 EXHIBIT 1 Include the number of extremely low-income, low -Income, and moderate -income persons served by each activity where information on income by family size is required to determine the eligibility of the activity. Number of Households Served CDBG Actual HOME Actual Extremely Low-income 0 1 Low-income 3 0 Moderate -income 0 0 Total 3 1 Table 13 — Number of Households Served One single family home was rehabilitated using HOM�s during the 2018-19 Program Year. CAPER 15 OMB Control No: 2506-0117 (Mp. 06/30/2018) 75A-21 EXHIBIT 1 CR-25 - Homeless and Other Special Needs 91,220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction's progress in meeting Its specific objectives for reducing and ending homelessness through: Reaching out to homeless persons (especially unsheltered persons) and assessing their Individual needs Santa Ana recognizes the importance of outreach and engagemegt,to transition the most vulnerable Individuals off the streets and into emergency shelters and perti; anent supportive housing. In FY 2018- 2019, Santa Ana utilized a multidisciplinary approach m stirgpf outreach engaging both City law enforcement and outreach -funded organizations with ESG tfolars., In addition, City staff actively participated in various community groups and comrriitte'g Vto reduce homelessness and worked on collaborative efforts with the County, other Orange- County cities �aridastakeholders to address homelessness. t' V_ In January of 2019, the Orange County, Point in Time Count dndSurvey was completed. Several staff members participated in this Count, aqd Santa Ana Police biartment officers accompanied each group doing outreach in the City. The PIT C04 jiibfted an opportunity to learn more about the individuals PM experiencing homelessness in Santa Arid prayed the opportunity to engage and provide necessary information on the types of servidRavailabfe o tndividualS d provided a roadmap for types a of services needed to redud arfi end homelessness The results on the Count showed an increase in the number of indlvlduals;dst)reriencing Ltosnelessnes�tbtoughout ther`.'fpunty, and in the City of Santa Ana. M. Unsheltered figures inc4alse ed from the'-2017 count' 6 individuals to 830 individuals. Sheltered figures also increased from 534 mdlviduals o 939 Jrtdivlduah :,.In FY 2018-2019, the City awarded ESG program funds to Outreach and Engageme It activItl V,to specifically assist unsheltered persons throughout the s3 n City. ais 1' housing needs of homeless persons While permanent housing is the priinary goal for people who are homeless, interim housing is a necessity -jr until the stock of houslhg affordable to people with extremely low incomes can accommodate the demand. Interim housing should_tie available to all those who do not have an immediate option for permanent housing, so that rto one is forced to sleep on the streets. In FY 2018-2019, ESG grant funding was awarded to non-profit homeless service providers to address emergency shelter and transitional housing needs of homeless individuals. In addition, two important projects emerged this year. The first was the increased coordination with community partners to develop a regional approach to address shelter options. The second highlight for the City was the creation of an interim emergency shelter In November of 2018. The Link, our 24-hour emergency homeless shelter, is ADA accessible and serves homeless men, women, families with minor -aged children women, and adult couples. The building includes four dormitories, family rooms, full bathroom facilities and more. This CAPER 16 CMa Control No: 250"117 (exp. 06/30/2019) 75A-22 EXHIBIT 1 shelter enables individuals from the City of Santa Ana experiencing homelessness to focus on transitioning into permanent housing and opportunities for employment. The shelter's primary focus is to assist program participants with creating a housing plan, making connections to housing resources and ending their homelessness as soon as possible. The Link has 200 beds and dedicated office and meeting space to offer additional services. The Link allows individuals who are homeless to access permanent housing as quickly as possible, without requiring .'housing readiness" or participation in services or transitional programs as a prerequisite. This strategy has been found to be effective with most populations, including people who are chronically homeless. Since its opening, the City has received over 530 referrals and has provided over 50 successful housing placements. In 2016, the City of Santa Ana became the host city for the large population at this shelter continues to remain step Individuals were provided a safe sleep each evening pnd, addition, the County created a 60-bed shelter for v— County, the Santa Ana Police Department prowded_iolicinl also provides a cold -weather emergency shelter each yjnte individuals. M. Helping low-income individuals andjan low-income individuals and families and discharged from publicly funded institute A mental health facilit)es, tiryster=care and Institutions); and, ire health, social services, ounty's year-round emergency shelter. The / 6—Program Year 2018-2019, over 425 =rvices fdr iiv_er 600 individuals each day. In Although theseshelters.are funded by the services in and Qbnd the sites. The County in the„City of Santa Ana'for an additional 200 I be&Wng homeless, especially extremely are. Irke(y to become homeless after being Mims of care' st(such as health care facilities, th,facthties, and corrections programs and F -�;w c or private�'agencies that address housing, youth needs ThsM e Cit�r�trded fu`hd5ng to severa on-profitifganizatons who work directly with individuals on the verge dif.Mpming homeless These organizations we ble to provide a wide -range of services including recuperatry care as well as other disch".#Se services. Homeless prevention funding helped to keep individuals from becoming homeless by prouisiing utility or rental assistance. The City worked closely with the Continuum oftCdte and Coordinated Entry System under a Housing First framework and model. With this model, indviduais d5familles w re prioritized using the VI-SPDAT survey and then assisted to become document -ready in order,.. br rovided with rapid re -housing services. Effective homelessness prevention required early rden#ification and assistance to help people avoid losing their housing in the first place. Public agencies, Including social service agencies, health clinics, schools, the foster care system and city government offices, played an important role in this effort as they are often in contact with these households and can provide key information and referrals. Strategies to facilitate the early identification and assistance needed to prevent homelessness included the expansion of resources available for rental assistance and for key services that address threats to housing stability. CAPER Ob OMB Control No: 2506-0117(exp. 06/30/2018) 75A-23 EXHIBIT 1 Helping homeless persons (especially chronically homeless Individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that Individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again Santa Ana has embraced the model of permanent supportive housing homelessness. Permanent supportive housing is nationally recog6r,, February, 2018, the City's first Permanent Supportive Housingfdet occupied and held it's grand opening. These City awarded p�pject b around case management services to ease the transitia"tFe inaiu, gnQ living. This project is a success story and continues tof6w attention beyond. A1 In fiscal year 2018-2019, the Santa Ana Veteran's VilM6 soon provide 75 permanent supportive housing unit homeless and qualify for HUD-VASH TPCEW46 ousing project will soon provide 56 permanent s0pportiVe.hi pulled off of the Coordinated Entry System If,sY The City helped indivjdUars tran lt-k rt to housff nd Shelter, Rapid Re -housing an Homeless Prevention IF Continuum ofCare's Coordinated Entry system It isthrb are orioritized-using..the VI S'`Pn 1T..cnrvaU`'snrl than SI goals dfiltf6 City and the uu as an effective means to eradicate .$e,d as a leading best practice. In elopment, the Orchard was fully Ised voucher units included wrap - duals to permanent, independent fhroughout the entire County and This new d truction project will U.S. Mllitary,Valerans who are broke ground. This new construction .,for chronically homeless individuals ependdh1diving by providing Street Outreach, ing to organizations who work closely with the h this system of care that individuals or families sted to become document -ready for housing. `experience homelessness is one of the primary In FY 2018 the Ctty of Santa Ark. lized its^ SG funds to support two organizations that provided both homeless prevent on and rapid rehousing services to Santa Ana homeless individuals and families. While California struggles Mr h :high costM rent, Housing First programs are being implemented in Santa Ana to provide permanent Itil,, fog homeless persons. In FY 2018-2019, ESG activitFd'Kincluded homeless prevention, shelter, outreach and rapid re -housing activities. The City was able to assist 1,278 homeless persons which included 184 youth under the age of eighteen, 57 Veterans, 430 chronically homeless individuals, 372 individuals who reported as having a chronic health condition and 401 individuals reporting a mental health problem. CAPER i4 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-24 EXHIBIT 1 CR-30 - Public Housing 91.220(h); 91.3200) Actions taken to address the needs of public housing NA - The City does not have any public housing. Actions taken to encourage public housing residents to become more involved in management and participate in homeownership ..I ViL ;1 NA - The City does not have any public housing. Actions taken to provide assistance to N/A - The City's PHA is not troubled. support affordable housing projects v to increase affordable housing opporl the ( a been CAPER i the HOME ancj,D11 BG program to project -based vouchers in an effort 19 OMB Control No: 2906-0117(exp. 06/30/2o1a) 75A-25 EXHIBIT 1 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (1) The 2014/2015-2019/2020 Consolidated Plan identified several barriers to the development of affordable housing including the following: • Limited funding sources, financial costs, and the • Market constraints primarily the availability, cos • Available land in the City mostly consists of s2 new construction projects. Relocation cosh redeveloping improved properties also pre er housing. • The region's rents have continued to increase: income households to obtain d GOpT and afford history are severely impacted In an effort to mitigate these b period: ry A r • Continued to enfar'ce the that meet the spectfied-cr sale,`then a n1tVtmum o€ jo_ income hou"s holds; of the units shall be rer hotrs0holds; or 3) thexidii payment if a fee m lieu o xm� Actions taken to address obst) 00 Wkp. tition for land. 7arcels that must be assembled for significant nd housing replacement requirements for barriers to the=development of affordable Q r: gher rents limited the ability of some lower ar e housing. Households wltff-no or poor credit rriers, Santa Ana undertook the following actions during the report nclusionary=fi�ousing ordinance in which new residential projects )use provade ,1) f the new residential project consists of units for ill, IPM he otal number4f units in the project shall be sold or rented to new restdreFtlal project consist of rental units, a minimum of 15% glow income'households, or 10% rented to very low income r tray elect to satisfy these requirements for the project by 'ucting some or all of the affordable units on -site. to meeting underserved needs. 91.220(k); 91.3200) Based on the 2019 Point in Tme'Count and Survey, there are 6,860 individuals experiencing homelessness in the County, with 1,769 in the City of Santa Ana. This is an increase of 769 individuals in Santa Ana since the 2017 Point in Time Count. A challenge for Santa Ana is that many individuals experiencing homelessness gravitate to specific cities, one of which is Santa Ana. A goal of the City is to work closely with community and faith -based groups, other municipalities and the County to provide a coordinated and regional effort to address homelessness throughout the County. In addition, several programs were funded by HOME, CDBG and ESG to assist underserved individuals. The number of persons assisted during the reporting period is highlighted throughout this report. OMB Control No: 2506-0117 (exp. 06/30/2019) CAPER 20 75A-26 EXHIBIT 1 Actions taken to reduce lead -based paint hazards. 91.220(k); 91.3200) Lead -paint hazards are typically found in buildings constructed prior to 1978; the year lead based paint was banned in the United States. Until 2012, children were identified as having a blood lead "level of concern" if blood tests resulted in 10 or more micrograms of lead per deciliter. Experts now use a reference level of 5 micrograms per deciliter to Identify children with blood levels that are much higher than most children's levels. Although many children remain at risk exposure to harmful lead levels (i.e., blood lead levels greater than the CDC recommended level of 5 micrograms of lead per deciliter of blood), the CDC reported a decline in blood levels in children age five and younger, largely a result of the phase- out of leaded gasoline and efforts by federal, state, and local.agee'ies to limit lead paint hazards in housing. t^ v* If inspections during owner -occupied rehabilitation found:pofential lea property was tested —the average cost per testis $600 gram staff in with Title X has added approximately 45 days to hb typical housing importantly, staff reports that at least some potentidl program Alarti pursue City funds for rehabilitation because of the addi6nal sc9xf v hazards even though the cost for said gr`ksisforgiven. + "yi`"r Actions taken to Santa Ana's anti-pover services for low-income needs. Services and yeti • "Housing rehab! of sed paint hazards, the subject Les that procedures to comply abtlitation project, but more nts mae,have chosen not to requ14 t(5-Mitigate the lead 91.320(j) affordable housing opportunities and support is and private resources to address their specific and -creation of new affordable housing opportunities bilitation projects. • Homeless rr ssistance ffic bding homelessness prevention activities, emergency shelter, yi _d transltlonal,tousing, and access to permanent supportive housing opportunities; appropriate support servlce5 y ere ble de'd with these activities • Public facility lmOMVem-45 to improve the overall infrastructure of the City, but more specifically for older and/or lowef_ncome neighborhoods • Job training, job -search skills and job placement to provide those living in poverty with new employment opportunities that pay higher wages • Youth recreation and diversion services to provide youth living in poverty with alternatives to gang and crime activities CAPER 21 OMO Control No: 2506-0117(exp. 06/30/2018) 75A-2 / EXHIBIT 1 Actions taken to develop institutional structure. 91.220(k); 91.3200) The large number of non-profit organizations serving low-income communities in Santa Ana is both an asset and a challenge. With a long history of serving the community, the sheer number of non -profits leads to increased competition for limited resources. Conversely, the benefits of a rich variety of social service organizations often translates to more community -based and culturally competent services for low -Income residents, In response to this, the City worked closely with local institutions to Initiate programs that link economic incentives with neighborhood and community development objectives. These efforts included building relationships with neighborhood associations, community -based lending �a agencies, nonprofits, and educational institutions. The City also supported programs aimed at enhancing coordination among various City departments. Examples of acWbs undertaken during the report period to overcome gaps and enhance coordination included thefiohow 1i The City's Workforce Development Boarc pf yed a key role�jn3developing employment opportunities for lower income Santa AnaleSlldents. The WDB is comprised of various community leaders representing private employment, education, social servicesi&5 government. This =.. diversity in the board's representation ensures'--tb fhQ community's ftF•force needs are identified and addressed thro€fli variety of public and private resources. This advisory board also brings key community contacts-2, ther resulting, n, enhanced coordination of program delivery and resource utilization • The City participated m�everal homeless forum anal cIt omm ttees,, Specifically, the City served as the Chair for thg Orange:_M my Contmuu)n oL are eoa`rd,;and pMicipated in several committee including the y'X}u`sing Opportunity Committees.the Emerge[�cy Shelter Committee and the Data and Performance-06mmitteet The City als"art ved on the Leadership Council for the United to End Homelessness crampdign ear ppu{Qred by the. United Way and participated on the Executive Comintttee Through thisparticipatio`n ;}1e Citya ensure that barriers to housing and the needs f� g rot fiie homeless are identified and addressedfhrough the coordinated regional implementation of limited funding and (sources • The tity-sought to encourage homeownership opportunities to promote neighborhood stability. With a fnghmedian purcHas :price of homes, homeownership remains a challenge for households earning less,', n 80% ofi county median income. Recent increases in housing costs have exacerbatedth'ssrtuatior • Neighborhood residQ;rtre encouraged to participate in the preparation and implementation of neighborhood assessments and plans, and were kept informed on homelessness issues. Santa Ana's Neighborhood Initiatives Program provided the means to facilitate this participation. This coordination included working with a variety of city departments, public utilities, property owners, tenants, nonprofit agencies and the school district. CAPER 22 OMB Control No: 2506-0117 (exp. 05/3012018) 75A-28 EXHIBIT 1 Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91,3200) As in past years, Santa Ana made an effort to leverage federal funds with local and state funds to increase and preserve the City's supply of affordable rental housing. After the dissolution of Redevelopment Agencies in California, obtaining affordable housing resources has become more challenging; however, the City continues to seek resources that can be used to further affordable housing opportunities. Several affordable housing projects are moving forward currently in the City and three projects for individuals/veterans experiencing homelessness using HOME and CDBG funds are in the pipeline. These are examples of how the City is coordinating with private developers and social service agencies to create affordable housing opportunities in Santa Ana. The City's owner -occupied housing rehabilitation pr( units occupied by lower income households. Furthi moderate -income homebuyers were available J14 Assistance Program. The City worked closely with I the scattered site project where single family homes restrict to income qualified householdfo_aperie HousingAuthority r'e " " ty provided rental asslstanpe-Vouthe in the Housing Authority's Family Self -Su i6i (5 English, Spanish and Vietnaxrpg5Le on how to., ar( been'ff-Strumental in preserving housing ieowner _opportunities for low- and City's participation irufthe City's Down Payment *t for Humanity in comil1(ei:l g the last phase of ete develd ffto be sold at affolydable price and to fi of aT-f AU745 years. Additionally, the Santa Ana to extrertlelt!„low income households. Participants ogram werg pr�also referred to classes (available in -imCity staff met regularryin `iith pubhMearnd private b'g ations to'T"" dinate various efforts. The City's law relationship with non prof1f_-wrganizativns in the community allowed for an integrated approach for funding requests from local, Mate and fedora] agencles The City worked with nonprofits as they applied forfundsforagtI itigsconsistentsuit theob'jec)ivesintWConsolidatedPlan. The City also communicated _ t W with vawdUs'institutions ro facilitate the exchange information and to develop strategies to provide Homeless needs and priorities continue to be identified through the County's CoC. The City consults with the County and localTSG entitle ment•grantees in regard to the use of new ESG funds. On -going meetings are held to coordinate the devefooment of eligibility criteria, performance standards and outcome measurements, as well as td establish funding, policies, and procedures for the operation and administration of the Homel6eManagement Information System (HMIS). CAPER 23 OMB Control No: 2506-0117(exp. O613O/2O18) 75A-29 Mcu-11Ai Identify actions taken to overcome the effects of any Impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.52O(a) A Regional Analysis of Impediments (AI) that covers program years 2015-2016 through 2019-2020 identified impediments to fair housing choice on a regional basis. it outlines strategies for regional partners to address identified fair housing impediments. In order to overcome impediments to fair housing choice identified in the regional Al, during the 2018-2019 reporting period the City of Santa Ana provided funding to the Fair Housing Council of Orange County for fair housing education, landlord/tenant counseling and enforcement services to combat housing discrimination and city administrative support for the residents of the City of Santa Ana. Funds went towarrstrative/program staff and service contracts. M fa, ._. CAPER 24 oMe Control No: 2506-0117IMP. 06/30/2018) 75A-30 EXHIBIT 1 CR-40 - Monitoring 91.220 and 91.230 Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs Involved, including minority business outreach and the comprehensive planning requirements To ensure program compliance, all CDBG, HOME and ESG activities are reviewed for eligibility prior to having funds committed. Activities by subrecipients are monitored'':htihrough quarterly desk audits of invoices, a review of the subrecipient's Single Audits, and a risse sment is conducted to identify high k as risk activities to perform on -site monitoring. Activities by Cf.. departments are monitored through a review of quarterly reports, inspection of completed pf-Vbts, snd"'rreview of procurement or other pertinent documentation prior to authorizing projectdeliverypayments._ comprehensiveHOME project - monitoring plan has been developed and implerTal �y the City. For re al.-rrojects, this plan calls for a regular review of project finances, tenant ellgibthty,{ongoing HOME program [orb pliance, and Housing Quality Standards (HQS) compliance. An annual recertification of CHAOS has also been implemented. The City is required to report HOME resources awarded to eouY mMmonty Business Enterprises �tV18E) and Women , Business Enterprises (WEE) via contractsand. subcontracts m tK4, CAPER. In addition, CDBG requires that 'mman effort be made to award agreements t6'N§E�W E. Procurement advertisments state that MBE and WBE firms are encouraged to apply. Citizen Participation notice and an opportunity to comment on The City published a notice in the.generaI cvculation of papers in English, Spanish and Vietnamese that its CAPER was avallatile, for review f r-public comment. The CAPER was made available for review at the Office of the Clerk ofthe Council, Community Development Agency 6th Floor Reception Area, and on the City's website There wa'so15 daypliblic comment period prior to the submission of the CAPER to HUD. In addition, a public hearingwasheTd by the Community Redevelopment and Housing Commission and at the City Council meeting to obfain public comments, with the City Council authorizing the submission of the report to HUD. The City considered all comments received from residents, public agencies and other interested parties. A summary of public comments are included with the final submission. In addition, a synopsis of the City's response to written public comments with explanations of public comments not accepted, including the reasons why these comments were not accepted. CAPER 25 OMB Control No: 2506-0117 (exp. 06/30/2018) 7 5A-3 1 LION. No CR-45 - CDBG 91.520(c) Specify the nature of, and reasons for, any changes in the jurisdiction's program objectives and indications of how the jurisdiction would change its programs as a result of Its experiences. NA Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants? LIn [BEDI grantees] Describe accomplishments and program outcomes during the last year. NA CAPER 26 OMB Control No: 250&0117 (exp. 06/30/2018) 75A-32 EXHIBIT 1 CR-50 - HOME 91.520(d) Include the results of on -site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations. Please list those projects that should have been inspected on -site this program year based upon the schedule In §92.504(d). Indicate which of these were Inspected and a summary of issues that were detected during the inspection. For those that were not Inspected, please Indicate the reason and how you will remedy the situation. The City of Santa Ana conducts onsite inspections of HOME-assisia2'dhrgntal units during the required affordability period to determine compliance with HUD proper,,y j;ta�ndards in accordance with 24 CFR 92.251. HOME -assisted rental projects with one to four unitsaCe inspected every three years, projects with five to 25 units are inspected every two years, anchr�jects with 26 ar more units are inspected annually. For the 2018-19 fiscal year, 211 units outnf $6 units were inspected. Of those units inspected, a total of 123 units had deficiencies ob ;k'ved, of which 122 unnsWfirected the deficiencies at re -inspection. Issues detected during the inspection ncluded general deferrer Wintenance repairs to the unit exteriors. One unit with Orange County CommunitVe i(sIh Corporatio n,t CCHC) has not passed inspection. Deficiencies include deferred m�{'e�LRaintenance; and he ltf ,.and safety issues in the interior and -.. exterior of the units. The OqCHQ is still m the process bf respondingWilre deficiencies that were identified from this fiscal.veara`n IeJnsoectionsare oneoin2 � e; The condos owned by the Civic CenteFBarrio Housing orporation (CCBHC) fall outside the HOME compliance period. Howeve the CitVAll inspects A! KOME assisted units. Multiple issues of deferred mamtenapeelofli . hit exterors-.were ide"ntittfred dune ifte inspections. The CCBHC is still in the -tea process orje`sponding tbthe deficripcigs that were r3't?ntified from this fiscal year and re -inspections are A list of propertiesisrlocated as` filattachment with other reports. Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units. 92.351(b) The City's affirmative marketing procedures and requirements apply to rental and homebuyer projects containing 5 or more HOME or CDBG-assisted housing. These procedures and requirements do not apply to families with Section 8 tenant -based rental housing assistance or families with tenant -based rental N7_UZ 27 OMBContraI No: 2506-0117 ("P. 06/30/2018) 75A-33 EXHIBIT 1 assistance provided with HOME funds. The procedures include: Methods to inform the public about Federal fair housing laws: • The City displays the Equal Housing logo or slogan in housing -related press releases and solicitations for owners, and on the website page for the City's Housing and Neighborhood Development Division. • The City requests the County of Orange to include information on the City's HOME and CDBG- assisted rental units in its countywide Affordable Housing Lls aintained by the County. Requirements and practices owners must adhere to: • Owners must display the Equal Housing Opi current or potential tenants, on lease agree leasing offices, and develop written proce ui • The City required owners of City HOME- ah"d the demographic makeup of their tenants. If no longer reflected the City's ghbrity populi fact and request City review andappfgS,4,al for the step""hl • Compliance with the City s affirmdti�3ue m iFkatigg it: uirer w obligation of all rentalpopertyownerSy(ecelvlrigHOME or Ana, and will�be nfotgeable by means of appropnate;o recorded throtlgh;;the Countpf Orange Record tfteting plan to make f w wit They3 rents, income levels, and acceptab�f the City of evaluate ownecompliar • The City will maintlrkre not less than ten year=< regulations. Annual assessment: Wfty logo & slogan in all correspondence with nts, and display tf1 Jair housing poster in their for selecting tenanO z_ I rental unrtsb:_continuously review � Mk�S Preview indlcWO'Ahat their tenants e required to InforrYi the City of that took to correct that deficiency. Its and procedures will be made an )%%,assistance from the Cityof Santa dons described in loan documents � of its HOME and CDBG- assisted rental units covered under this nnuel report to ttie City detailing the steps they have taken to comply also�6 I-gquired to report on the ethnicity of their tenants, as well as ier hous66ld characteristics. Reports will be made on a form that is ra Ana, and that will enable the City to capture the data it needs to With this Program. s on owner reports and its evaluation of those reports for a period of r expiration of the affordability period required by applicable HUD • Upon receipt of owner reports, the City will evaluate the ethnic and racial characteristics of tenants being served to determine if they reflectthe City's housing market. If they do not, the City will direct the owner to take further affirmative marketing steps to correct the imbalance. The City will track and evaluate the steps taken to insure they have the desired effect. OMB Control No: 2506-0117 (up, 06/30/2018) CAPER 28 75A-34 EXHIBIT 1 Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics IDIS reports PR09— Program Income Summary and PR 23-Summary of Accomplishments for information demonstrate the amount and use of program income for projects, including the number of projects and owner and tenant characteristics. Describe other actions taken to foster and maintain : ONLY: Including the coordination of LIHTC with the 91.3200) The following actions have also been taken to Ana: • An RFP for affordable HOME Program funds, vouchers. • Approval of a pre -loan of an 89-unit aff6rdaj services for c'T FI<F�D�V'etel North HarborVlllge; • Approval of a loan 9grf the development housing. 91.220(k) (STATES ent of affordable housing). housing in Santa by the City incluc(i`ng $2,791,960 in Id 100 project -based veterans affairs s gram funds for the development e'2 with wrap -around supportive eligible homeless veterans at the Program funds for the development of the • Approval of a=AMendmenf o the loan agreement for an additional $407,871 in expiring HOME Prs?gramfunds forthedevelopn&ntof57affo dablehousingunitsattheSantaAnaArtsCollective of Which 8 units are HQQE asslsted.units. Lxdsm. • Appram of a commit' ` to rests rdinate existing HOME Program loans to allow for the resyndlcat@ and rehabilffiltion of a 126-unit project at the Cornerstone Apartments. Magi • Provided five dawn paymdri assistance workshops and participated in two homebuyer fairs, • Application suppgrt forbe submittal of proposals for LIHTC, AHSC and MHP financing was WY provided to the North Har'Eor Village, Aqua Housing and Legacy Square projects. Currently there are three HOME and CD8G funded affordable housing projects under development that will provide 221 units, and an additional three projects funded with project -based vouchers under development that will provide 164 units. CAPER 29 OMB Control No: 2506-0117 (exp. 06/30/20181 75A-35 EXHIBIT 1 CR-60 - ESG 91.520(g) (ESG Recipients only) ESG Supplement to the CAPER In a -snaps For Paperwork Reduction Act 1. Recipient Information —All Recipients Complete Basic Grant Information Recipient Name SANTA ANA Organizational DUNS Number 083153247 EIN/TIN Number 956000785 Indentify the Field Office LOS ANGELE Identify CoC(s) in which the recipient or Santa App subrecipient(s) will provide ESG assistance ESG Contact Name Prefix First Name Middle Name ESG Contact Address Street Address 1 Street Address _2 CItY ESG Secondary Contact Prefix First Name Last Name Suffix Title Phone Number Extension Email Address Center Plaza, M-26 0 7146476549 ibrown@santa-ana.org County CoC Ms Terri Eggers 0 Senior Community Development Analyst 7146475378 0 teggers@santa-ana.org CAPER 30 OMB Control No: 2506-0117 (exp. 06/30/201B) 75A-36 EXHIBIT 1 2. Reporting Period —All Recipients Complete Program Year Start Date Program Year End Date 07/01/2018 06/30/2019 3a. Subrecipient Form — Complete one form for each subreclplent Subrecipient or Contractor Name: SANTA ANA— HEART City: Santa Ana State: CA Zip Code: 92701, 4058 DUNS Number: 083153247 Is subreciplent a victim services provider: N Subreciplent Organization Type: Unit of Go% ESG Subgrant or Contract Award Amount: 4 Subrecipient or Contractor Name: City: Long Beach State: CA Zip Code: 90803, 4221 g r z DUNS Number: 113510176 Is subrecipient a vitlttl services p r�. Subrecipient OrganizaYoType: 0 ESGSubgrant:orContractT rdA City: S�riTa_Ena ,_gin State: CA' t-- Zip Code: 927,dZa905 DUNS Number: 8797471E Is subrecipient a vicife Subrecipient OrganizatiGi ESG Subgrant or Contract Other Non -Profit Organization Amount: 117736.5 31 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-37 EXHIBIT 1 Subrecipient or Contractor Name: WISEPLACE City: Santa Ana State: CA Zip Code: 92706, 3904 DUNS Number: 002322894 Is subrecipient a victim services provider: N Subreciplent Organization Type: Other Non -Profit Organization ESG Subgrant or Contract Award Amount: 24973 Subrecipient or Contractor Name: Illumination Foundation City: Irvine State: CA n em Zip Code: 92606, 5124 DUNS Number: 829919047 Is subrecipient a victim services provider: N Subrecipient Organization Type: Other Non. ESG Subgrant or Contract Award Am_o_unt: 1 Subrecipient or Contractor Name: City: Santa Ana State: CA Zip Code: 92705, 85QE- DUNS Number: 884d9003 Is subrecipient a victii Wryices pr Causes, DBA City Net City: Long E}�eacl State: CA t Zip Code: 9080! DUNS Number: Is subrecipient a victim'Servlces=provider: N Subrecipient Organization Type: Other Non -Profit Organization ESG Subgrant or Contract Award Amount: 46127 CAPER 32 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-38 EXHIBIT 1 CR-65 - Persons Assisted 4. Persons Served 4. Totals for all Persons Served with ESG Number of Persons In Households Total Adults 1,092 Children 184 Don't Know/Refused/Other 2 Missing Information 0 Total 1,278 S. Gender —Complete for All Activ! A k1kc, Total 'Vv. Male 616 Female 4 r', Transgender Don't Know/Refused/Other ON U Missing Information Table 23 W-fider Infornribijo.. ' VP2',�� 7z� -25N, I 1s 6, Programs36divIdu VMI a[ ,V Total Rapid Re -Housing A '60 Homeless Prevention Shelter 639 Outreach and Engagement 524 Total 1,278 CAPER 33 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-39 CR-70 — ESG 91.520(g) - Assistance Provided and Outcomes 10. Shelter Utilization Number of New Units -Rehabbed 0 Number of New Units - Conversion 0 Total Number of bed -nights available 60,365 Total Number of bed -nights provided 40,054 Capacity Utilization 66.35% Table 24 —Shelter Capacity 11. Project Outcomes Data measured consultation with the CoC(s) City staff along with other the cities of-piA h the Orange County ESG Collaborative toclis"c. as well as a variety of program and home(e3 continues to use mutually agreed upon fore checklists for monitoring aWd, divating proj purposes of consistena`nd streamlining the on a regular basis, att!ym umerous i»getin a CAPER performan City Bards developed in t arid the County of Orar`ige have formed ocedures, how best to allocate ESG funds, 1*2 �Irita Ana along with this Collaborative 1!" ;e forms client participation agreements, cfprmance:and reimbursement forms for she'bie,parties. Staff consults with the CoC in the Continuum of Care. 34 OMB Control No: 2505-0117 (exp. 06/30/2018) 75A-40 EXHIBIT 1 CR-75 — Expenditures 11.Expenditures 11a. ESG Expenditures for Homelessness Prevention Dollar Amount of Expenditures in Program Year 2016 2017 2018 Expenditures for Rental Assistance 44,012 30,882 35,118 Expenditures for Housing Relocation and Stabilization Services - Financial Assistance 0 0 0 Expenditures for Housing Relocation & Stabilization Services - Services 15,734�� " F..11,022 4,702 Expenditures for Homeless Prevention under Emergency Shelter Grants Program .� 0 0 Subtotal Homelessness Prevention SA746 41,904 L 39,820 Table 25 — ESG Expenditures for Homelessness 'l0 i s iaT� 11b. ESG Expenditures for Rapid Re Housing_: R. Doliarl\maunt of Expenditures In Program Year a016T°� 2017 2018 Expenditures for RenW.AAs tance 1675 26,870 62,659 Expenditures for Housln;Reloc�on ;and n� StabdlzaCianSen7lce'_s Financialtsslstanceau { 0 i 0 10,243 ExpeMkUres far "HOu ing Rdlgeatlon & Stablion Services Se 28,235 14,952 6,103 Expenditures -for Homeless g3lstance µher Emergency SheltefGrants Progr_ 0 0 0 Subtotal Rapid Re Housing M 52,910 41,822 79,005 Table 26 — ESG Expenditu`re's`, - r Bapl_"Ll Housing w CAPER 35 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-41 MU.u3Ifi 11c. ESG Expenditures for Emergency Shelter Dollar Amount of Expenditures in Program Year 2016 2017 2018 Essential Services 65,490 54,315 34,612 Operations 77,689 60,466 44,236 Renovation 0 0 0 Major Rehab 0 0 0 Conversion 0 0 0 Subtotal 143,179 ` 714,781 78,848 Table 27 - ESG Expenditures for Emergency Shelter ,vex lld. Other Grant Expenditures. Dollar*ndi of Expenditures In F(ogram Year 2016 .w` ,.._,. 2017 2018 Street Outreach 21 953 ,, 139,147 108,441 HMIS 3000.�7,277 9,770 ti Administration .; . 36,67 t :, 34194 35,677 Table 28 - Other Grant 11e Total_ESG Grant Fund`s- TotatESG Funds Expended 20],G ; 2027 2018 422,475 389,125 351,561 Table 29 -Total ESG Fu[ids,, Expended yam _ s 2' 11f. Match Source 2016 12017 2018 Other Non-ESG HUD Funds 46,512 63,000 53,055 CAPER 36 OMB Control No: 2506-0117 (up. 06130/2018) 75A-42 EXHIBIT 1 Other Federal Funds 70,000 42,477 0 State Government 0 48,315 0 Local Government 87,124 143,827 203,842 Private Funds 187,809 163,384 174,744 Other 95,675 74,678 90,182 Fees 0 0 0 Program Income 0 0 0 Total Match Amount 487,120 535,681 521,823 Table 30 -Other Funds Expended on Eligible ESG Activities 11g.Total Table 31 Total Amount of Funds 2016 -M- 2017 2018s, Expended on ESG a' a {, Activities �aa2t 3 _ '909;595 9246 873,384 CAPER 37 OMB Control No: 2506-0117 (exp. 06/30/2018) 75A-43 EXHIBIT 1 ATTACHMENT 1 75A-44 0 N Q rl O ti rl 0 F= a r co O I C N E o } w E >>. mtn E W W O p N T o m a v ` w D C m ¢ c c v A a z I rn c c m,• a y .Q..Q r¢ o oo .2;- E C. 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U o C LL LL 0 U U N M b� v a d � T° N 6 ❑ o � w U U y U Q T L iJ u C C N � I �acdo } 6 O N � r F" 0 0 0 0 0 0 o r o r } LL w 1 a F°- 0 M z id o ¢m d U L J N N n n = E c m E m E °u m IL a mo � a m n E LL O N u U Omm N u C R a` } EXHIBIT 1 t R 3 v c R E .tU L�U C I O a R I c K 2T2 � C C � d 7 N U vc�?� m cU MW �J2 of N U U R p 9 = R a c m u c E w v c n E E >> a Qyj3m°u m m ad o�T a c R o a a o OI vi C3 ya'E N ROO. m E c >C m.- od aEMSEd c as c-0m 'u¢OL aR�mE ¢. dv"c o Evw nm"cU yaEi 800Lso E wa T a00 �t > o E m E K mZ o N - 8L = c o 0 o 0 RE 3 m m a ¢o of 3 N N N I I EXHIBIT 1 m B N. §j0c E / \ /t2 IL � \§J j\0 �2n k<< 7 .. 8 4 eo; k \ m L \( 9.• 7 . Q �! !% \ ƒ Q®co ) 2 `r ± ® `� ®[[ fS �`{ i y§ \4<� { - ](/� . .. - } \\<U. k\ § Zƒ�as \)§ IL � d \ \ 00 } ) k / 0 )) EXHIBIT I Mo q P Q. i # / CL 0 ] ) � 0 Let ) / E ■!E / §;k 2� )# =E� ma Ti f E-u E k [ !;G # :§7/ k ` \ ) LU 0,| 2� \ )} \ \ �\ \)q ]§ E ) B!B k) /§ L E _ #)${ oon 0E,_.M )) \(/§tom > j � �\ $ � k&A § ;2 § \ / /) \{ au ( \� . ,oa< /§ \\\ / � \ (` ?`22 t2co ] &a // q , | �[ ® , - � \/) [E£ § 43 k�\ § f ) ; )~� : E k� \ }/ k//0 !k]§| ) /I//LW . i§ \)f#=�� u))0 ( m;))CL )/ )■; !� © 75�\22 EXHIBIT 1 I co H O G N E r E o E } w a E °>' d o 5 y O a x° w c� Ln C 7 E E o E 4 Q a CL u ,E a U? O . G U m 7 a a ° to J J N a 0 A z EXHIBIT 1 to :N .w .o i01 ip im .a 2 c g L U $ 3 E w {9 0 c m E m ami 0 m _ N D d Z N C a 0 w 0 $ m � � O a� rn = m m ma= v E v a m � m E $ 9OU C E 0 O O aoi W o 0 a` a a` a` ; Z .a ow N O 00 N N N ;a in r z yb \ / d$§ k\/ 002 \) -54 EXHIBIT 1 EXHIBIT 1 kk/ 00 CL \>0 2�00 < \E}\ \(\( {\12 m /°®\ § � \ § ` k � \ \ � az. � «z Vim« «>C \ «:. < {~) \ E < ; ( } k : - ) - - ° a = ) 0 \ L cl / / c0 20< U. _-§{ \) IL M.� § \) §« „ : „ _ 00 ) 0 . ) 3l0o=o o a 0 ; k� 2 _! § § !\] 7 ®R { = (!*!7ƒf)• EXHIBIT I §k/ /E }0 \)/\ [kk/ t< / w (n �(3\/ #%!® /BE{ < � / J ( ! 0 ( ! \0 \\\\)\ EXHIBIT I §k} \ 7 e2e u ! \/ m co LU \ 0. � \ & \ al B m <C ) \ 0 ] \ ( - /�0) \\/ : Mp \ [LQ ] \� k\ E ! ;a ! =-;f,®k |§ --IL 0 /k I ]LL in Q. E � § `° 00 ); -7�-57 | M N i n o " Ln FIS Ey . a: a i N a O c 0 a z EXHIBIT 1 U 0 0 0 0 0 0 0 0 0 0 0 0 0 .0 m L N m n• o 0 0 0 0 0 0 0 0 0 0 0 0 0 F U 0 0 0 0 0 0 0 0 0 0 0 0 O N O = H o 0 0 0 0 0 0 0 0 0 0 .- .5 Fm- Eo o o 0 o 0 o 0 0 0 o 0 0 0 a � 2 m c m F a 3 z .- m L' m m N oy m N 0 UI m U � 'u m z z c pm• c otl N m y U m U a ZZ .T 2 dE m m m ¢E c .3 c d Q � � U 'O C ¢ J �C a w $ m Q Q Z¢¢ m EXHIBIT 1 0 N tm +� E O F a O y N o E �> ro gCh E > a c > A O E° c C t0 v Q _w `c w E E E CL S vi ti Q fA O u gym`, o 0 0 0 0 c m K v 10 0 m 3 � a 0 3 0 a m 5 3 c z a zm 42 a w " 75A-59 I I I i EXHIBIT 1 0 0 C N E c aE o v r Wo a .' E > 0 c M N Z O pf o N nc ^ 'am � a z CM a C v Q o Q N a aj CL _ G v C 7 Y. E O O 'CC, a'• N IA O N w N > L4 7 m In V ':C N ii•iI W Q U U W W N J G m Q (n a z U C9 N 0 o W C ui N O N O W P, r � Q N •p T N U c 12 a . a O U) J 0 0 a `m r N 0 0 0 0 0 0 0 0 0 0 0 0 O O � o F 'c n 3 = F.. as m a i N Nj i > N 7 Z V Z Z c a c W G YY N C Q N O N E ai 3 C = C c :C U 10 UEl .� N t0 E m Q Z¢ Q ttl W/■m■■ §k/ 0 k\k0 \\{� fk\/ \< \/ƒ!§ tk2; {0 w vi0 c ) L!j J ! ƒ � ; § k W){30' / )]2zCL R k 75A- 1 Go 0 y.l N E C N o E> Y > 0 m � w o of O E 2 G 0 0.0 m v CM ¢ = c v a z a y o CL o E 7 z c E E YI o 0 p E o > vl O Fc 4 7 f7 m U O o O N E m O L _ a o•� o r v o 0 0 EXHIBIT 1 0 o m o o m E } m m 0 0 0 0 0 0 0 0 0 0 0 0 0 v 2 a y c c F- c c O 5 H m a h o o 0 0 0 0 0 0 0 0 0 0 0 0 yNy i9 m Z y '� m Q C 0 0 0 0 0 0 0 0 0 0 0 0 O of c F- a > LL O E U n .�S •� o o o o o 0 0 0 0 0 0 o 0 h 0 J m Q Q 2 N m m 2 m m 'm U z 0 O N m0 ' o 0 E C E U . Ol m 8 D L 4 6] E C J p U m C F4 Y{. C7 L U J m ai 4N7 N m U > Z Z Z C W m D Z ti o w W D L N E c < m m m ¢ h< O J e N D � '� O LL• D. S � U C� O O Q � m � 'tc� •4 � C � � .. � Ua] j? m m u .r>.r�� O m ya a 0 a •m m N N w h o `.9 m Tn m U m m m¢¢ E Z EE Q h m m¢ E f cn o C 2 m e FD- o u Q EXHIBIT 1 §kƒ 13 _ ° ]/§§°22 � | ! K { ) E {]\!_) 3)k3//] / 75A- 2 � :a •. rn W u j U- N LU N co U .c c'� o (L z 6_ C6 ❑ � o.o M N O (V A o N C7 a' a` U C m E c Q 'S d � R Q w Q W U c W m i0 a O uoi EXHIBIT 1 0 y m a �n0<vmm�000mo om O N c O F O 0 0 0 0 0 0 0 0 0 0 0 0 O N_ Q = H F O 0 0 0 0 0 0 0 0 0 0 0 0 p a x c 0 0 0 0 0 0 0 0 0 0 0 o p o � o F- G O O 0 0 0 0 0 0 0 0 0 0 O a m N 3 = 0 O O i9 F.. m m m ca > U ) m L Z U Z c a= m m °a c ¢ m m m ¢ 3 m c {Dp �cp Z Q L Q Q Q m EXHIBIT1 3 0 u a � � J !a \ ! 0 / S20 12 0 f 3}7)ƒ) 75A- 5 | °7 <I O C N E Ev° v o aLn E � p o O F a C, C C •p a z a a�i o =•yam E E N_ o 0 L E a E fA O Q � V V E O N U c LU W .W r m Q > m a C& z C Q m 0 m C 0 U) , 1 O LOW O0 O 0 V u "m > a IL it ) c W N c � c a� ID av U A o E N T O. 7� aN ° a ac Y m O •O 'OC CO >L aci ra O D 0I � A O N C > > O O m E wG W 0 0 N a m � c � m m� N m E m` T� W d U N N N � rn•5 W 0%F L o E m Lo L .c rn m E c m � Na N p L m C a UL•°F° o n@ W c C G C m a cm E N .° m mom W ❑ J NN p N � @ d m c G �LL� W ii ti,- E xW OI m E •c m °o 5 O QmA°. EXHIBIT 1 n ui o o ;N } 0 ° N wiL < O ;m 2 ° 000000oo.-oMo ov Dui C° N F 3 ❑ m O M O O V o , 42 r r F W O'O } 0 N ow o 0 0 0 0 0 0 0 0 o p o o n e N a o x c H 0 0 0 0 0 0 0 0 0 0 0 0 W N O 0 U O O O O O O p 0 0 0 0 0 O m O 'd o 0 o o 0 0 0 0 0 0 0 0 0 K '3 EXHIBIT 1 < kk( cP R 113 3� „ Q, 12 | ■)f§ t 2)j)\)) ! ) � �75A- 7 00 0 c N E o ( v R �j —�EV) E oo E p � o € a` C N v Q C o �E aoa 7 L c E E N Lei E cg .a E O m U E lf o CD, w ^O m llu ECd S U � w U Q U S � J m N -n. Z C Ob a o o c w 0 t00 �R p } U a N p EXHIBIT 1 .CU n 0 0 0 0 0 0 0 f0 O O � a e N d Oa N O C 0 0 0 0 0 0 0 0 0 0 0 0 O m o m a o x c 'z F- 0 0 0 0 0 0 o a 0 0 0 0 0 0 o a B o 0 0 0 0 0 0 0 0 0 0 0 0 N N m o 0 0 0 0 0 0 0 o 0 0 o 0 0 z F U 0 0 0 0 0 0 0 0 0 0 0 0 O d N o z 0 0 0 0 0 q0 C ~ L o . O U f11 C mEE `m o y N C i U 1 Q L' U 'a m F>c « m Z U Z Z vN ; a m« mm m a m `NNb c z LL W F N .-. •C N Ly N c N 0 2 2 2 E c m �_p GG O. Sl Qpp l0 t0 t6 Q lV U N '.dCi<z C 'w C 75CL co CL �c E EE L 79 E U c+ c ii E S in Z Q `a� m Q 0 `� T f• w; ikia`�Qa 2 ;a EXHIBIT 1 G1 LL1 o F a GO ti 0 c ry E w o E i } 0 � m o 'a° o m E o .M C of QQ c to D.Z (p v N 0 Qjj O z ^r N E W w 7 O p C Z" v O Q D (� V 3 0 0 0 0 0 0 MO 0 0 0 O e w K C 3 O m Z E O 3 D a U T 0 m D o c uS 9�zD °a emaaiaai a�aaa D aaa 3 3 3 3 Ti m.5m a�88 O C C C C N N N ttd �u t �6 V N 0 O O O O 02.2o ¢ ¢ ¢ ¢ 2ZTg N 0 N d m d m 3 3 3 3 C C C C N 10 f0 10 Hann C 0 N N N 10 Gana m im�pp ��pp �aa�ppi U tl U U a aan aaaa c c c c (D Of�r r M N N O O O O 0 0 o E r N M V aaaa N 75A-69 I i °+� E rn o F a co 0 C N E G N o E N N O p cl o a r f0 D C o c cc-0 dZ •� a y o E E N � O o En � 8 C U 1-1 ¢ G] 0 U c m G N U N O Q E N DamN ac 0 a 000 E 0 c S `ui y o , E 'S a v o o�•- A t o'�m�0 n� 0 N > U1 O N Q W 00 O U �z a � U N co U y J EXHIBIT 1 �c 'c m F 3 0 N_ _ Ow a v o N o 0 0 0 0 o v o o ro � N 0 0 � H (V lV N M Fl C 0 0 0 0 0 0 0 0 o o 0 0 O O O IL N y o 2 0 0 0 0 0 a 0 0 0 0 0 0 O M o N 0 0 0 0 0 0 0 0 0 0 0 0 O LL n7 wlf°- F�- U 0 0 0 0 0 0 0 0 0 0 0 0 O .G m o. N N 03 = O o 0 0 0 0 0 0 0 0 0 0 0 0 0 N `m N 06 Z c 0 ao Z c �f m c C 2 t0 A Mm u¢ ¢ ¢ m I EXHIBIT I k\/ 00 0 k> Ch \a�iL ®/0 (�\$ _)«y< }/)}§ � ! [)E m CL ]vi ; ) E § 0 / � £ / /2 /J!0 f §])k§) P� CL §§%] @2E! !■!� !!■{ !!!! )kk) Q;f/ {){} 12 `\ft k§// \/{$ 16 /}/}! ))) ; aCYa �< l< " SA- 1 § / \ 002 EI k § 2 E $�0 0 00 0 -72# 2 EXHIBIT 1 e . {) \: ) ) )f) , )' \ 0 \� .0 § k\tw§. «!!e. EXHIBIT 1 §)� k// co rq \E »th �G cU \]\ƒ 7k\$ / L \22a5 wk]m /\t/ R§)\ in (§{t ! ! \ ) \ 4 ! ! § ■2)/_« Z )k2z ) 75A- 2 EXHIBIT 1 4 co r_ N Ec ate` E Y>n } Qoj O :/1 E N O Of c 0 a m a v 0 C mv a z a w o S aE � Lo C u1 7 Ems^ E EE °y N > � trGi Q (7 a V 8 E N 2 W N i i F X lii T Q C VI U > B a O C 0 Z d EXHIBIT 1 O M O O O O O O O O W O O r •� W n a O mn d n• 1- o 0 0 0 0 0 0 0 m o o m W t� 0 r N N O = r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F- C 0 0 0 0 0 0 0 0 0 0 0 0 O n do 0 0 0 0 0 0 0 0 0 0 0 0 K d F ti O O O O 0 0 0 0 0 0 0 0 O .0 d c d 3 = O o 0 0 0 0 0 0 0 0 0 0 0 0 0 F- d N c m ot} N N d ry U d !E d Z U Z c a c tl (Cp Y N d y N (Cp U o U E aoa d m m m 1Gp C 'd UI � (l = d {Cpp U 5 m Q Q Z Q Q m i EXHIBIT 1 / \ HL ¥�t¥ !2/2 ■E■§ ; ° §k]a �§§§ ' «)$« ; /) §);< . ); fff7 IL , !;■| �lff }{{/ \4«# !� „ _n j\\\\ 00a 3 . ! M;»! l;;a! ! I<<<< _ E,wm, \ ;B� a ! g#&§\\ « 0 ./ E \ ) E U. A/)k)) <f§75A- § /// ) / ( $\} #} -! k2 ) k § M ) { (k) <\e�®\ < _ § t{t#§:J§ am#J!/JEƒ§!!; EXHIBIT 1 m 0 C N N + E O E } v a a E o c 0o g €� C 0 y t 4 N a v 0 _ o � � c c E n E A w p E V) +� u U 107 m o o v o0 0 o IL rn -- 0 0 0 0 0 F m o 0 0 0 0 e K i� � O a _ i A 2 43 a aai v w �i a v_aa 0 0 0 0 n nG.6 2S!P2 3�33 cccc sass 06 o`o O O O O Q QQ¢ v aaimaai ZZ2Z m m N N mm�d c ccic m m m m nano. tS U U U N N N t0 w ddgi suiiB c c�c vrrno i- `000`o 0 0 0 0 QQ¢¢ Nth V OO C7 C7 75A-78 EXHIBIT 1 ■ // 0 )) \ \ / \ )\ ) \� \ a\ E§ \E . £§]2 / \im $ \/ ME )� ) EXHIBIT 1 # \� <� SA- O cl 0 N o Y E an o F 9 00 Y N C l d Y C o E >. N W o m o ° as M ` c w 0 C N v Q 2 v In c � 7 w E E �❑ E n Ui O a U r° U U U � J co O U n J a m CL a a z a5 cb m m U . U O O L ' } u QLda q i:.°• G. O W J T EXHIBIT 1 o 0 0 0 0 0 0 0 0 0 0 0 0 N 'z ao 0 0 0 0 0 0 0 0 0 0 0 0 C N O N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c U .E� Q �E ui V m A o �a > U > a a u A z z z C c a° c at C c Y m Y Y L' Qp l0 l0 2 N N 2 $ m Q Q z a Q m 0 0 0 mn = H I EXHIBIT 1 +� E O o p m O c N a + E `m a E } j o � m N '0 o rn ❑ w a o m ❑ E a a 0 C 0 + t+ Q a U o x° 0E qN C 7 E E N ❑ c 5 fA rC Q 7 (9 m ❑ U qh L O I. N N M O o O d O a o y E o y u d 3 0 n c U n m 0 u A cC W J ry ¢ E S _ ac m 0 C G Z I- d C d v avv 2 o 0 0 an$$ � Ti L+ iNi 8888 w w m aci 0 N V o O O o 0 O O 2 2�Cz2 2ITd 3 3 3 c m m m m a aaa m m m m aaaa dmmaDi @88II a"aaa a -avv c c c c o ocoo O O O O 00 IIN m N M Q oaoa ro N 75A-82 I \ \ \ ! {\\ 0 0 m � § J t )) EXHIBIT 1 §! IL �m,mne „o0 ƒ� / k� ,=00e ) )/ �\ \ / \/\ / § §)�!§ # §$§2k /a7#!#/e EXHIBIT 1 \)co )\ƒ 00 0 \\k( 2*00 $\«a (k\§ f E E k{/n ( U ui§/f k-T m`^�) § _0 „ k 75A- 4 | � | co ] \ } \\\ 00 ��\ \ � )\ \ ! # A / / �§ 7 \ ca i§ \ Saaca # \ { / )j EXHIBIT 1 CL §� /2,,,,0No )� / $\{ ». _2 §. ` !f) § %]#w§. \m< Zm < !. | / :< \:< ) () e EXHIBIT 1 G: �N C i0 m 'O .a dv�ti m m m m a a a a .Q .2 .Q e ¢¢aa m m LD 2 33'yy;3 2 U U U 222 C pC V U U S V M N M O O O O C aasq w v 0 0 o o QQQQ 4 a •mA N N N N m N 3�533 I3 49 4q 0 0 0 0 o a¢n¢ p U :U ;E E m m m m a ¢¢a a aaaa aaaa c c c c 3 0 oao`o O E mym c o o a o 6 QQQQ E E do w��� o H a aoaa ,Q 3 a ¢ ¢ U r 2 Z E Q 2 Z 9 C d Q } N `:a 75A-86 U J m a O m 0 z N M 0 N 0I U m m m y 0 m N Z ao O w E N p EXHIBIT 1 �N ;o ;w m ;a C y d o. c o o � o 0 0 .- Ono o r 19 FL 2 3 = O o 0 0 0 0 0 0 0 0 0 0 0 0 0 « 0 F- ui L' C m ai J N J N U z z m m N m N c 'aci m U c a O Q m Q m m m Q � = C .r 3 dE .> d �a:Q¢zQQm VmVff EXHIBIT 1 N N O O e 0 o m O a 3 O 0 0 0 O F c`i o 0 0 0 0 e F`m o 0 0 0 0 3 O m � a a J urS�50zm a A L` n Z a a d o d v_ava o .o .` 2 3y3yv3�3 Fi Ti� 8883 c ccc 2.22.2.2 5 U Wu m 0 0 V o oo`m 000Q N N N N mmmaZi N m N N E2ELD 3333 0898 a nan a aaa c c c c m ovo �000 00`00 ssss IY F��F aaacy 75A-88 m 0 ,y N E N 7 C 12 O E CL c c v a Z 2 ? N w c ° E a m c E Ln E w ° o E u_ 0 N viO�¢ m O ilr U IL c E 0 5 rn a O o c, EXHIBIT 1 U 00 0 0 0 0 0 0 0 0 0 0 O o .E C y W o. m a m o 0 0 0 0 0 0 o o m w 0 H U O O O O O O O O O O o o O _q a V N O = F 0 0 0 0 0° o 0 a o 0 0 0 0 0 F o 0 0 0 0 0 0 0 0 0 0 0 0 m a N_ L = w C 0 0 0 0 0 0 0 0 0 0 0 0 O O � O F U 0 0 0 0 O Q O 0 0 0 0 0 O C W C y 3 = 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 H L N C f0 cb W m a W U !C a m z u z C c W aW c W w7 W s m Y �Cp U E N N N U > N �c� lG EmE Q Z ENE 5 m Q Q 6 m EXHIBIT 1 m d � �aO m iN im .a 'd -6'O'C I m d m d vvvv m 2 m a Haan 3 3�nn 3 � y3g -91 7 S 2 q B c c c c aasa U U U U w cwm V R V W 0 0 0 0 .2°.22 0 p m s} V NO m ¢QQQ m m m m d m N N N N 2 2 2 T 33�3 c c c c m m m m 0 0 0 0 o Haan n nna v 3vv d dN dq _ o a mama vvvv m c c c c > > > > ZVOON 000000 m 3 u O O O O O = o o Q q E u KKK F- ;Za z E o H ¢ mama 0 3 I¢ 0 E U 7 d 3 m a ; o m i E ��z°�a o <}N 75A-90 `a co O y N w E ry o E j. } v > o O a! > o `a U m n` � 1 C 0 W m �°- C cav7 Q a 1 o. o E aia _ w d V) O E a E o O o E v (n w u VI 0 rCi Q D CIO Q d a E U � E 00 m L •5 a U M O o 0 0 0 0 0 0 0 0 O C1 a C N L'= a a co 0 0 0 0 0 0 0 0 0 0 o w ,r- r O O O O o 0 0 0 0 0 0 0 o O .0 N N O = r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F C U o 0 0 0 0 0 o o 0 0 0 0 O of _N � o H c m F3m m O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Y E°- m Q1 a ' � m a!1 Z s U Z a ya c o G m cm m Q N C •� C Ul �Gp m d� z" a m I EXHIBIT 1 m 0 N i a CDM co O1 d o FE--a W O y N Ec w 2 adtnY o Ea (3 E N o v a° o m 0 w 'C ICO v C 0 y 0 0 ° E 2 w w � c � ° o E Ln o m . pyL� m m a V o a o m 0 0 0 0 O c K m o 0 0 0 0 C 3 0 o @ o 3 0 o C a 3 U O E 2 U nC r� 3 a it C Z ,3 E m E E UU N Q E Y a m -NMV.2 OOOOm 75A-92 2 0 (U 00 O C V E a m o E N o. Ch E n w V o c ❑ € aro my a Q Im 1O c C° v o E ?b ° o E o O 7 vi O � O pm U rn W Q CO Lu U U) i9 CL %• a z @ o .N O N 0 r O a O O A z EXHIBIT 1 � N 11°O OOf r M 10 i� M N yEE3 fV O N 0 � O 0 �no0000�0 o m Dui �O a .a F 3 C N 2 � a o o u� ' N m N tt°o F YM�1p E N N U O O O O O o 0 0 0 0 0 0 O �0 N fA N C m � N EL u c F 0 0 0 0 0 0 0 0 0 0 0 0 O O ❑ F m fO c a o o 0 0 0 0 o o o o 0 o 0 OO 1- O G oD 0 O � o D F- LL ti c o 0 0 0 0 0 0 0 0 0 0 0 0 ui 2 O o 0 0 0 0 0 0 0 0 0 0 0 0 t,(,• I c EU Q d a m N U} W di N o m o Z U tZ66 N R i U Q O Q E 'o S�m¢¢zdFQmQb�= H EXHIBIT 1 +°3 E rn o � a 0 w L] EX d Ck H N O O mo a o 0 0 0 0 0 O r- y 0 0 0 0 0 c ml m > d' n t m Z c 3 � m Y3 E aaa¢ y E o< N M V E u rL�KK m Q ( i (,1 i� a E u Q rn � a o " 75A-94 i I co 0 CL E 0 N O E T } > O A v 0 rn 0 0 , A a K G 0 a vQ a v o _ aE) C v E E o E o vp In Q U L m U o 0 0 0 o o o 0 0 o o 0 0 e N O = F 0 o F0 0 F- , N a N A ob U z c c s z c s xi c •C N N N N N m m m Q ui �i 'EcE c ¢ Z m Q ¢ m EXHIBIT 1 crn N o 0 1 0 m 0 0 0 a 0 C 3 0 Z' `Em � o U a o a 3 o C` m m rG N J N 5 u�1 J z no �f z 42 E N 75A-96 d k & f ] § $ /[\ )k ) , /)k§ / { )_ IL k & ! / § /--�- _0 ; %an! 4 rpac m f«\ < ! !I! `\||0 2k$< \ \ IL L k> EXHIBIT � � co 0 y N E v 8 °. v } —�°� a vhi E o 10 v `g oc o € a` m y C w w L C O a Z C f0 ++ 0 Q y a w _ ccc K yy E E � o Ln a ° 0 � N rKJ vi (7 m V I a 0 C O A z 2 2 Gyj ,• x151P% 1Q.•. J L� U OJ Cr ' 3 m o Z z r N d. JZ F Q) _ m z a z - O a a 'n' ''..m ❑ co W Y3 C J 2 O J N - D G m C O W R. F CO �•N .O' N O M A C V C a y Q 5 > I u C7 n H p E ECD m o c Q L- jg EXHIBIT 1 �N .0 ;rn .a ai N a E 0 n_ N m c m N a O a N c m v z N O a� 8FX e � o � m t0 E m a� c E �a N a E m� c � a� c is to m �a U � � c m «' O.0 ;Z W �o N .a :a U m 0 m c 0 m z Q A CO • • J of 0 z O EXHIBIT 1 EXHIBIT 1 kE � 7} f \) k !22§)k !!£% M� ) e } � A 00 { \ EXHIBIT 1 co 0 a N ac E o E >". Z ex > o to m 0 N A O ❑ p F a m C ` a v 0 u0 c rn c "+ ZQZ 10 G C Q Ccm c m v a a w o x° CU � En w � � E a m cu o O E m o PO 0 u > (A O G „ a co co 0 U t^/ :• 5g N m N d v O O o O o O a O o O 0 O 0 O O O 0 0 0 0 0 0 0 0 0 �ry .a p a o x t- ,a.�.r c .0 m o rn m M o o m a m O v E 1 c ¢ o 0 0 0 0 0 0 0 U 6 m ° a a o s F c y '•� � v U 'as O 0 v 2 m `v m ,ems rF , .• _ w F° cwi O p,•=``F� :p f o 0 i,"'Z W U U M - W V) VJ ...'a l0 w m m G u U O U N N c LL U N C 'c m m m . EL m m w1 m •'- n n (n c N� N ry N m m F -:` ❑ a E c zz Sz v; c a c a3 c t 0 N O V Z Ill O F- N< ° C N S N U N � J . N o'T b C 6 N N E a 0av, rn v i° u E m c v •� 'o c b �° v a Q Y`L •p C O I° Q m LL U y N c 3 c ui 8 c is o0t�F' i'`y c u o" f0 •c 6 c 8 x o c1pi �c 5 c° Q E a ' .. Y u u c o w a ° U, y a a a; 3 c 'c •c c 3' `v d c m .. m p v Q m y .� ;° m¢ U c m m ❑ m° a m m c a E v R m •y v E p m v E m 'in v v E m 0 'm a o aEi �o 5 a_ v > e F ° u m ¢ ¢ Z 22 Q m ¢ O ¢ %|( 173 EXHIBIT 1 \ § / { k ' ) ( },=��a { { � ! §»� l2fd |�)0 6 ! � 2 ■ � t �i \ \ k 0 �& §)§!;= 2§, ` 4;@ 75A.102 :Of ( \\§ ®M( aF / ! \\/ 0 0 a ) d:m c \ - a w \ / � {! � k # , ƒ.} m / ;/ ~ { )) IL A. EXHIBIT 1 § \ id 7{ !§ )� =Q !oc ; oiL u \ })� )�� & 103 EXHIBIT 1 00 0 c N E w o E�>.} N -@ C th ❑ v c ❑ 2 m L � C O m c Q 0 F x° aEi aj p ❑ E '> ❑ � f N � a [O ❑ t; Y�. n:W .w rn i U U U 0 0 m C a Q Z z m W W � W W m N ...0 U oN 0 � a c5 Qco m m c 0 ❑ U U 'U p Z m;rn m aU N <O N o N Xm V 6 Q Q a _a_ ti J 2 9 c E E CD co N C LL Z W p> C m Z 2 6 a m C m C A D m O N N O n5>mm Inca •-r cnm pM 0= La01D E24y2 oEgmm a9mvE Doc'_> a E a rn m m rn 1 m a E c a m m>« o c4 •P •E m � ' c4 � m m QE Uw ypoweam m'mm>� �l NO� rmi1 O'm NO1 m 3Ncm c «SU 8m.m c) D tom�p E; mNij m m0o0 Evcma D ommmC mom cN ,9 U f9 m N-p s m 0 ca ELc?cmcme mrnvoDvwaazw MEI2oEt MS �r«Q «=m�m oic m mE a 0Ea`�mc a ab , o> a .� 0 D Z X O 3 m t- m m E m o 'm o:$T0Z. au3am T=Z53:0 9`-6o O O p p2�c o T o m �30'm�«dDom ow a C m E N m> ' W m c CY Mo 40 0Tm,D_oo m a N E9 rnU m mc0 c=ai •E UE2 $bw��mV:C iy._O C•r o pl w'0 2 p W �p..ti ID G0 O mY �j 0y�03�p .N 00SU mo-«o•EEE ScQyoVwo$ > C m •p 0 >M W.O. A m h'N M'9 E c� m— > C 0 p 00 O3�r o.vC7Ei U� m 0 N W O C N W u E 10 CL o E M a to E v o 0 P O w o,�c a a z G m v Q C tC0 N O CL T ? N w V C O o o E w w V, n y 0 V 0) ? vi 0 D (7 m io M4 Mn EXHIBIT 1 �N !o ;o U 0 0 0 0 0 0 0 0 0 0 0 O O iry Z ; n .a c 2 @2 d a• o 0 0 0 0 0 0 0 0 0 0 0 0 F 0 0 0 0 0 o a o 0 0 0 a o _ F �00000000000 .- o m 0 f- ti 0 0 0 0 0 0 0 0 0 0 0 0 O N_ L � o F .c L a d w_ 2 0 0 0 0 0 0 0 0 0 0 0 O m F m L C m ai1 Z w Z C a Y Y wmw C 8 •C m S m •CC m m m v m U U m a A ¢ a z a a m EXHIBIT 1 '' E rn 0 � a 0 O C N ECv� o E to o E E c12 Em l L L =G c a a alp aQ c c a IL rn m.V Q C 0 a Q N n cuCL o f a 2,- E w < = E vn 3 L E E w o p E CL Qo in 0 ti m V 701 0 0 0 0 0 0 h a 0 0 0 0 0 0 C d o 4 H Y rn " 75A-106 EXHIBIT 1 00 O C N E Y c v.. a E y o C E N N O O p m a � o c m v a z c.vQ CL u 0 N O S N ce U) C 7 w E o E a.. (n o O 12 27 u $ � v O U m U 03 r.. u o 0 0 0 0 0 0 0 0 0 0 0 0 C O d a o 0 0 0 0 0 0 0 0 0 0 0 0 1- .0 r 0 0 0 0 0 0 0 0 0 0 0 t^ N b r 0 0 0 0 0 0 0 0 0 0 0 T O U 0 0 0 0 0 0 0 0 0 0 0 0 O 'G O. o o o 0 0 0 0 0 0 0 0 0 0 0 U r 0 0 0 0 0 0 0 0 0 0 0 r d N O r 0 0 0 0 0 0 0 0 0 0 0 O N L' N C 10 ad U m !E ro Z U Z �Cp y L yyy C d d � aoa N �NNNCy C d Q N N N E �C d 5 0] L> Q Q Z EE Q¢ uu� o] EXHIBIT 1 k// ! i / ! 0 ) / E ,3 � a Aj\i)k ) !a 75A.108 EXHIBIT 1 , M IC711 a / k \ /§ }\ MM k \ | | (CR � \ k) � ® , aK |,)2 !) . |»®|!` ;& E 2 f ;< !kL �) �ca \ 3.109 <z '� EXHIBIT 1 § \ ) / 7[ ) k) ) ! E g=m 05 |B E &« /{kCL ( i {LL 0CL 10 )J \ ) � ( . ) { 2 LLJ ° �/ N 'i y Y E ci a? Y;' a Oj yid � C a C OD r = G c N p. E a O a r.- a > a in o E � s '.a w .-, �z w d w U U 2 o v E C x � m E E o E+k C y� CL ..- 0 W vi U F❑- Q .: m z ::,z z f' N a I IM d m m E ❑ ❑ o x U U r^ar<•:ax^mrrmx.�aaa y of .^ i I� � o c N O N O i F' c c O y m cR A C i,. I7 c.a` 9 tn� 5 m ❑ v CD EXHIBIT 1 'N ;a W o. 'a C N_ IL ~ o 0 0 0 o a o 0 0 0 0 0 0 0 0 a o = F O o 0 0 0 0 0 0 0 0 0 0 0 0 O U � C O_ N_ c o � o F U C G W � a U N 3 x a. NC t O; a G' 5i W cif m W' FmI U 3 i = z 'w z z W c a H n y E 2 2 c E 2 m x �Z E a Q m m W Q m .2 o Q N W U o. u j IL S Ca Q Q z Q Q ro 4 0 ¢ 2 F li A :a 1 1 I EXHIBIT 1 \)§ k)/ U- k § ) !\)$]) 75A.112 EXHIBIT 1 N t,= 6 a a F o O V It E M .� x P CL m w °c a y v E �+ p m e E n rn M o > CL r TO 0 g �i�3� / U Q N •p so O'� € RatC '�•. � .e •o o `o r ui LL cm c c v a Zfu m C e f0 Yy�..., -cc O p m U a ' O � E a E C 'p in O !A m m m m-- � a Q rn LLI o � E 14 mo a m c m In n v U U co 'TW I- y w rn O E .3 LL a :�'a N � c� m y c ❑U io W v N e a 0 U Z C rD c 0 L i rn v E d o. of � c m o � U N .m. N t0 C a U 3a ¢Ci U� ai o O O C Uc O T V � t 3 3 cm C O 0 O m G] iz iQ i¢ N is L�1 Y rj. c ah ti gg�� N E U �J Xl U I 00 m "0 00 s;Z":, 0:.- �mn aY; W N W m p LU Q (gyp O m I co m i,NO N 0 ems- m e" pm 9 C 0 LL .0 •U 1: Q y F y A 0IL IL co G `m m } 12 0 o m O O cq M EXHIBIT 1 o N C �r CO O fA i� m o b Q C O 'O L m rn ryry� m C c id m o E i' N JO m O m c c E�i� a 3 E m m a H a m m m a iQ o F C IL 0 a 0 L^ m �tYl 114 ¢ N a EXHIBIT 1 co 0 a+ N dy E L o E > o Eo w > O 0 c O 0 a v -0 w w a o d ¢ c a z rn a u Q v CL _ N 0 j E a w o p E V c ohm vi O S ¢ M 0 V £S3_2SlK'vAAi`L'XSRY. ttv pl, EXHIBIT 1 � m ) k § \ e \k} 002 k/ 0 k\ m { ( } \ \ I EXHIBIT 1 co CD 0 N L w w Ea m - v 0 rn 0 10 2 m t ,o n. c C I<F�. m Sc L z a 4 c a V) E E cg ❑ E o N w 4� 0 g o m U EXHIBIT 1 ATTACHMENT 2 75A-118 §k/ �E §a>M, .q 0 \a7§ §m z /\)U aEMnE t/I2 \(\} C ) 3 k /\ /\ \2 \ 0 EXHIBIT 1 M� 0 CD to ;qpi C6 �)\!: ` Ln k N - Ln � �� �^ / / 7 ! � /« q w i|| {R3)'2. R; C � O< V � §§) 00 Nm N§� ems§ ��- u W. &±kk± & §k OJ ({§0h \ \§ V. \' / to ko Lnz Ol [ ' \ &; ° / 0. §� )\Ln ems Ln k; (Ln 7 ) 2 ( # }:: E. k / ( ) a. 75A.119 § Y Im OJ In Po 1 3 j i Lp M M�Q 0 OmD 010 O Lcno M n .H-L n M Lmn M O Ill.-m M 00 O p 00 H N f� Oi f< m n M Co. ^ W b�1 �M-1 LHn n Qi O n; W 01 10 co N M tp m lf1 M H^ OJ 10 N co C 1� W O W H M N n H H O N tD H H of K m;I� �--� M m ti ti ti '-I ti O L•'1 ti r1 m m � 'y N M ;M M m m K m� Ev; d �c o3c 'a? a C i--ij N N N N N N N C .7 7 O ti H ti 'Nu-I f0 p U s w: ra O � FT7 }aaaa}aa of o F- mwmmmmmmmm mLnmmmmm L l0 n O N N H tp rn H O to I?N N N .y N N N a�H+000000 Q.N,00 oa ik; H �"� �"� H H H •i �-I H H lD M N N N N M O O O gq qq O qq 0 0 0 O O O O O pp O b ch lb Lh cb N M b .4 K m d' t0 I. �' C' " m !n O m H O N O pp W n 7 ei m N H N N Ln N to Om M p• 1p n H 'V- t0 m H V t0 m l0 O m Lb W W N N N N N" NO N N N N N Lo N N L'I Ln Ln Ln Ln Ln Ln Ln In m to t0 LO l0 lD DC; V; VOA O; W &7i C� H 'O N LL F! a vi Ln aLn m 0 m w Y; U 00 H E Lu O a. S E 75A-120 N 1SOIIQmi N N O1 a ATTACHMENT 3 75A-121 EXHIBIT 1 :a Z m O N 0101 zfr o ■ ■ a WIMS mm CR i k / �n GO i - ozT Pn X O d W I 'ab en r I E E c st E � '^ 6`o C Z co to Q •� W � � y LAC M � I � C a 0 I 9 N C m O o « � o « o v N O = C m N 3 'o 0 E o � 0 � o 9 ' . W 0 .i 01. /Y M U Oc } 4m N y T OrP S/a ap i sib } 6l7 C O \ m0 U \ i N [rsln \' oz. lSOsu O'b aC¢cs 6/, /ijn y ' L ¢[a[5 O/, C SAP[51, $/` [[1 ab O LL1 { ACCI[( 6! � E� MMI 649. � J O iA5'AC, s/. E I a� .'g o « As O/' C ` Id • m'Y (7 « 05 Oib ' a ei m a, O/ N e� 3 0 o a o 0 0 0 0 0 0 0 75A-124 W EXHIBIT 1 S EXHIBIT 1 ;00uJ'N:w �010 O Wj� u 10jj��O AIA'N�O�Nj0 O Ili Off0�0 NI. tO 1p 'ItN I-O �O� �1N Q�N�oJ�A,O N'O O o Tn ATtl1 Q!Q-N;1p �.(jj��A'A VI It7jO? f0� a? C N O'Q I O .N:fOnn NN- <h --I ! -r�1f ci n 1 EI N 0 ON 76O OO' IjIIII OI01 c 7 w M A m O O N NIN7 C'i IN NNI j_INEul i�iI,l wn I I T-i , l0C �piI1)II! l i T I ' jy I 1 ICI 12 a OtI 01 ! I❑ rn ICI 12 rn I ( I QI !�. ! t Ia c oc otj c- ! mIsl fq �N, O c j0jc II E' E E '-c•lI coil, IZ°� °EoI9 ofI I iI: EmE � �mE 0 m ! E v ft- '> m d o dl"m� vl 4.lI ;IcEm MO d c OR o Ill I8OI �I��iax U SN I-Ij_�.ccm°i L n rYLiO�4 jvit7, O ¢ao 1 : Il� °al i5En l-jj.mm� .!01 af°I"�la- - - I 3! I j 01 I o_ y a a. rn � � a Z I In CL c I J W 2 N wtu O > U N Q m ! m I v c 2 � U ° ! o c. rn v \ { ( ( ( - - j \} - i §'!-0 ƒ ; �u z \ (\§/ �x ,ol/ Ik2)/\Ij `%R�le�§\§`� -MO=\� »j■ \ �-�`��= 22 �E( 1 � ; I } {! SA.12§ EXHIBIT 1 EXHIBIT 1 Attachment 4 75A-127 EXHIBIT 1 2018-19 HOME Compliance Inspections rope qg tof5�ff' Ile j0peprionwInspectio Qi cte '.VP W.- §�Yi 'p, aui Apas. —w— . . . . . . Orange Housing Development Corporation 703 Lacy St 26 6 6 IS-Oct-18 15-Oct-18 In Compliance Wakeham-Grant Apartments, LP 815 Minnie ST 18 4 4 16-Oct-18 16-Oct-18 In Compliance Wakeham-Grant Apartments, LP 904 Minnie ST 18 4 4 16-Oct-18 16-Oct-181 In Compliance Wakeham-Grant Apartments, LP 805 Minnie ST 18 4 4 16-Oct-18 16-Oct-18 In Compliance Wakeham-Grant Apartments, LP 805 Minnie ST 18 4 4 16-Oct-18 16-Oct-18 In Compliance Wakeham-Grant Apartments, LP 816 Minnie ST 10 2 2 16-Oct-18 16-Oct-18 In Compliance Wakeham-Grant Apartments, LP 828 Minnie ST 101 2 2 16-Oct-18 16-Oct-18, In Compliance Wakeham-Grant Apartments, LP 825 Minnie ST 18 4 4 16-Oct-18 16-Oct-18 In Compliance Wakeham-Grant Apartments, LP 835 Minnie ST 17 4 4 16-Oct-18 16-Oct-18 In Compliance Wakeham-Grant Apartments, LIP 828 Minnie ST 10 2 2 16-Oct-18 16-Oct-18 In Compliance Orange Housing Development 1201 Wilshire Corporation BLVD 144 30 301 15-Apr-19 15-Apr-19 In Compliance Santa Ana WEBB UP (OHDC) 605 E. Washington Ave 361 8 8 OS-Mar-19 08-Mar-19 in Compliance Vista Del Rio Housing Partners 1600 Memory L. P. Ln 41 10 10 23-1an-19 23-Jan-19 In Compliance Orange County Community 430 Carriage DR Housing Corporation #D I I I 28-Jan-19 11-Feb-19 in Compliance Orange County Community 1725 Third ST 1 Interior and Exterior Issues - Housing Corporation #8 1 28-Jan-19 Pending additional inspections CIVIC CENTER BARRIO 600 Third ST A - HOUSING CORPORATION 307 1 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST C- HOUSING CORPORATION 305 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Thl rd ST A - HOUSING CORPORATION 309 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST A - HOUSING CORPORATION 307 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 601 First ST F- HOUSING CORPORATION 205 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 601 First ST F- HOUSING CORPORATION 205 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 721 First ST F- HOUSING CORPORATION 201 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST C- HOUSING CORPORATION 301 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST B- HOUSING CORPORATION .209 1 1 1 05-Feb19 3 �lMaY-191 Interior Passed / Exterior Pending CIVIC CENTER BARRIO Third ST C- . �700 HOUSING CORPORATION 103 05-Feb-19 3 I-May-19 Interior Passed/ Exterior Pe nding Page 1 of 4 75A-1 28 EXHIBIT I 2018-19 HOME Compliance Inspections QTIESwearn 4 , p. .Bass �. . . . . . . CIVIC CENTER BARRIO 700 Third ST C- HOUSING CORPORATION 10: 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 113 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 113 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 711 First ST E- HOUSING CORPORATION 105 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 711 First ST E- HOUSING CORPORATION 105 11 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSING CORPORATION 107 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST 8- HOUSING CORPORATION 310 1 OS-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 217 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST B- HOUSING CORPORATION 204 1 05-Feb-19 31-May-19 interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST B- HOUSING CORPORATION 117 11 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 220 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 721 First ST F- HOUSING CORPORATION 102 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST A - HOUSING CORPORATION 322 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST C- HOUSING CORPORATION 105 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST C- HOUSING CORPORATION 102 1 1 05-Feb-19 31-May-19 interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSING CORPORATION 310 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 601 First ST F- HOUSING CORPORATION 202 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 700 Third ST B- HOUSING CORPORATION 217 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 600 Third ST A - HOUSING CORPORATION 204 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 621 First ST D- HOUSING CORPORATION 104 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST C- HOUSING CORPORATION 105 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 611 First ST E- HOUSING CORPORATION 105 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 217 1 I 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 721 First ST F- HOUSING CORPORATION 201 1 1 t05 Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST A - HOUSING CORPORATION 110 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER HOUSING C-19 I OS-Feb 31-May-19 I Interior Passed / Exterior Pending Page 2 of 4 75A-1 29 2018-19 HOME Compliance Inspections t,3Na " y s- `a,trnit corrYpaoYName'r� Gy ProPertar'"Totai`p �r.0 rts'x.s;1ty ^� fns ecton P r ,�� > h �'<,r` �s�Atldfess of tlniis inspkcted iamp�ing Y: ra x� r r f�� >. BiDates• Pass:�r�ttx. �' l�� 2:.$i<:urr s ._ ry a^. r ✓`��'t CIVIC CENTER BARRIO 700 Third ST C- ,.x,-�,�_' ,.> HOUSING CORPORATION 102 1 1 1 Os-Feb-19 31-May-19 Interior Passed /Exterior Pending CIVIC CENTER BARRIO 711 First ST E- HOUSING CORPORATION 105 1 1 1 24-Feb-15 24-Feb-15 Interior Passed/Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 204 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 621 First ST D- HOUSING CORPORATION 104 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSING CORPORATION 303 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSINGCORPORATION 303 1 1 1 05-Feb-19 31-May-19 interior Passed/ Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 305 1 1 1 05-Feb-19 31-May-19Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 700 Third ST A - HOUSING CORPORATION 305 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 600 Third STA- HOUSING CORPORATION 208 1 1 1 Os-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 700 Third ST A - HOUSING CORPORATION 318 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTERBARRIO 700ThirdSTA- HOUSING CORPORATION 304 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 304 1 1 1 05-Feb-19 31-May-19 interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third STA- HOUSING CORPORATION 11s 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600ThirdSTA- HOUSING CORPORATION 110 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third STA- HOUSING CORPORATION 312 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 60oThird STA- HOUSING CORPORATION 312 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSING CORPORATION 205 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSING CORPORATION 118 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 700 Third ST B- HOUSING CORPORATION 102 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST B- HOUSING CORPORATION 108 1 1 1 05-Feb-19 31-May-19 Interior Passed/ exterior Pending CIVIC CENTER BARRIO 700Third STC- HOUSING CORPORATION 105 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST C- HOUSING CORPORATION 105 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 700 Third ST A - HOUSING CORPORATION 211 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 711 First ST E- HOUSING CORPORATION 101 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 600 Third ST B- HOUSING CORPORATION 118 1 1 1 05-Feb-19 31-May-19 Interior Passed/ Exterior Pending CIVIC CENTER BARRIO 701 First St D- HOUSING CORPORATION 101 1 1 1 OS-Feb-19 31-May-1B Interior Passed / Exterior Pending Page 3 of 4 75A-130 FWA111 M-MI 2018-19 HOME Compliance Inspections r. I -A -y 46 "ni 0 W 96- 'Q.- CIVIC CENTER BARRIO 701 First St D- HOUSING CORPORATION 101 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 721 First ST F- HOUSING CORPORATION 203 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 600 Third ST A- HOUSING CORPORATION 120 I 05-Feb-19 1 31-May-19 Interior Passed / Exterior Pending 1 CIVIC CENTER BARRIO 700 Third ST A- HOUSING CORPORATION 31 1 05-Feb-19 31-May-19 interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third ST A - HOUSING CORPORATION 318 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending CIVIC CENTER BARRIO 700 Third STA- HOUSING CORPORATION 211 1 1 1 05-Feb-19 31-May-19 Interior Passed / Exterior Pending Orange Housing Development 300 Santa Ana Corporation BLVD 84 17 17 08-Mar-19 23-Apr-19 In Compliance Orange Housing Development Corporation 901 Sixth ST 24 5 5 21.Mar-19 24-Apr-19 In Compliance Orange Housing Development Corporation (Ross & Durant, 1501 Ross ST 24 5 5 22-Mar-19 24-Apr-19 In Compliance L. P.) Santa Ana WBBB LP (OHDC) 217-2195. 5 2 2 18-Apr-19 29-Apr-19 In Compliance Birch St Santa Ana WBBB LP (OHDC) 435-437S. Birch St 5 2 2 18-Apr-19 29-Apr-19 In Compliance Santa Ana WBBB LP (OHDC) 2034-2038 N Bush St 5 2 2 18-Apr-19 29-Apr-19 In Compliance Santa Ana WBBB LP (OHDC) Birch St 217-219S. 5 2 2 18-Apr-19 29-Apr-19 In Compliance Orange Housing Development Corporation 1022 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1026 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1125 Minnie ST 10 2 2 10-May-19 OS-Aug-19 In Compliance Orange Housing Development Corporation 1021 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1025 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1102 MINNIE ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1121 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1030 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1118 Minnie ST 10 2 2 10-May-19 05-Aug-19 in Compliance Orange Housing Development Corporation 1002 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Orange Housing Development Corporation 1114 Minnie ST 10 2 2 10-May-19 05-Aug-19 In Compliance Totals: 211 210 Page 4 of 4 75A-1 31 75A-132 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: PUBLIC HEARING — RECOVERY OF COSTS AND EXPENDITURES IN AN AMOUNT OF $76,948.60 INCURRED BY THE CITY FOR WEED AND TRASH ABATEMENT WITHIN RAILROAD RIGHT- OF -WAYS IN THE CITY (STRATEGIC PLAN NO. 5, 4E) CI-ff MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution affirming the acceptance of the Weed and Trash Abatement report and confirm the Code Enforcement Division description for the recovery of the costs in an amount of $76,948.60, associated with the execution of the Inspection and Abatement Warrants on railroad right-of-way owned by the Union Pacific Company. DISCUSSION The City of Santa Ana operates a year-round program to maintain private properties free of weeds and rubbish. Santa Ana Municipal Code (SAMC) Section 16-48 prohibits the presence of rubbish and garbage, among other items accumulated upon or in front of the property which may be dangerous or injurious to neighboring properties and negatively impact the health and welfare of residents in the community. In accordance with Santa Ana Municipal Code Section 16-49 and 16-50, when unsightly or unsafe conditions are identified, City staff provides notice requiring abatement of such conditions within seven (7) days by posting of a notice on the property. As permitted by SAMC Section 16-49(b), a formal letter may also be mailed to provide similar notice that immediate action must be taken to eliminate all weeds, rubbish and garbage from the private property. Ultimately, the property owner is responsible for ensuring the general property maintenance of their property and compliance with all provisions of the Santa Ana Municipal Code. If the property is not cleaned by the prescribed date indicated in the notice(s), the City of Santa Ana may take additional action to perform the abatement work through its own staff and/or contractors. Accumulation of trash, debris and the general lack of property maintenance on railroad properties have become increasingly noticeable and are negatively impacting the health and welfare of the community and residents of the City. To abate the issues, the Code Enforcement Division properly posted and advised the property owner, Union Pacific Railroad Company, to clean their premises at the following locations: 75B-1 Recovery of Abatement Costs of Railroad Enforcement September 3, 2019 Page 2 1000-1100 E. Chestnut 1200-1300 E. Edinger 1716 S. Santa Fe 1200-1300 E. Warner 2500 S. Main/Goetz 3200-3300 S. Susan Street 3400 W. MacArthur 2900 S. Flower 3200 S. Bristol After the prescribed compliance time had elapsed and compliance had not been obtained, the Code Enforcement Division, in collaboration with the City Attorney's Office, requested and obtained an Inspection and Abatement Warrant from the Orange County Superior Court enabling the City to take necessary enforcement measures to address private property maintenance issues within railroad right of way. On May 22, May 23, July 10 and July 11, in collaboration with the City's Quality of Life Team, the Inspection and Abatement Warrants were executed. Pursuant to the Santa Ana Municipal Code authority outlined in sections 16-55 and 16-56, the Code Enforcement Division hereby provides a summary of the costs associated with the execution of the two Inspection and Abatement warrants totaling $76,948.60, which includes City staff time, City equipment, and Code Enforcement Division contractor services expenditures. The adoption of the attached resolution will enable the City to properly invoice and pursue collection of costs and expenditures incurred by the City associated with the abatement efforts. To ensure additional awareness, through the Finance Agency, the Union Pacific Railroad Company has been provided with courtesy invoices regarding the City's request to recover costs associated with the abatement actions on July 16, 2019 and August 6, 2019. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 5 Community Health Livability, Engagement and Sustainability, Objective No. 4 (support neighborhood vitality and livability). FISCAL IMPACT All Administrative Staff recovered costs will be deposited in the Planning and Building Miscellaneous Recoveries Account (No. 01116002-57010) and receipt of reimbursements regarding Code Enforcement contracting services will be deposited in the Special Repair and Demolition Account (No. 12116002-53507) as follows: 75B-2 Recovery of Abatement Costs of Railroad Enforcement September 3, 2019 Page 3 Fiscal Year Accounting Unit — Account # Fund Description Account Unit, Account Description Amount Planning & FY 2019-20 01116002-57010 General Fund Building $65,823.68 Agency/Code Enforcement — Miscellaneous Recoveries Account Planning & FY 2019-20 12116002-53507 General Fund Building $11,124.92 Agency/Code Enforcement - Special Repair and Demolition Account APPROVED AS TO FUNDS AND ACCOUNTS: Minh Thai Kathryn Downs, CPA VV Executive Director /' 1'� Executive Director Planning and Building Agency Finance and Management Services Agency AN:Ia Exhibits: 1. May 22 & 23; Code Enforcement formal letter and invoice 2. July 10 & 11; Code Enforcement formal letter and invoice 3. Resolution 75B-3 75B-4 EXHIBIT 1 City of Santa Ana: Inspection and Abatement Warrant Date of Invoice: 7-16-19 Railroad Locations: • 1000-1100 EAST CHESTNUT / SOUTH SANTA FE (RAILROAD X-ING #761244J), TRAIN TRACKS FACING NORTH AND SOUTH; • 1200-1300 EAST EDINGER (RAILROAD X-ING #761246X), TRAIN TRACKS FACING NORTH AND SOUTH; • 1716 SOUTH SANTA FE STREET, TRAIN TRACKS FACING NORTH AND SOUTH; • 1200-1300 EAST WARNER (RAILROAD X-ING #761248L), TRAIN TRACKS FACING NORTH AND SOUTH; • 2500 SOUTH MAIN STREET / 100 EAST GOETZ (RAILROAD X-ING # 761253H), TRAIN TRACKS FACING EAST AND WEST Inspection and Abatement Warrant, execution: • May 22, 2019 • May 23, 2019 City of Santa Ana, encumbered costs: City Staff and Equipment: $39,623.83 Acct:0111600257010 City Contractual Costs: $11,124.92 Acct: 1211600253507 Grand Total: $50,748.75 75B-5 CITY OF SANTA ANA Finance & Management Services Agency M-87 20 Civic Center Plaza P.O. Box 1964 Santa Ana, CA 92702 (714) 647-6543 Fax (714) 647-5414 LlU5LUMV9 . UNION PACIFIC RAILROAD LANCE M FRITZ, CHAIRMAN, PRESIDENT, AND CEO 1400 DOUGLAS ST 19TH FL OMAHA NE 68179 INVUICE Date: 07/16/2019 Customer No. 35516 Invoice No. DS217 Due Date: 08/1512019 Description: Balance Forward: CONTRACTUAL COST IN" 1729 405.08 REAL ESTATE CONSULTING & SVCS CONTRACTUAL COST INV_19-1830A 10,719.84 SLS PROPERTY SOLUTIONS INC Total Due: 1 $11,124.92 1 Please remit payment within 30 days to the address referenced below. Past due accounts are referred to a collection agency. CHECK POLICY., It is understood by all persons who wish to write checks to the City that acceptance of checks is conditional upon the satisfactory collection of the check. If a check is dishonored or returned for any reason, the customer will be responsible for paying the full amount of the check that was returned plus the state's maximum allowable processing fee. PLEASE DETACH AND RETURN THIS PORTION WITH REMITTANCE MAIL PAYMENT TO: CITY OF SANTA ANA M-13 20 CIVIC CENTER PLAZA PO BOX 1964 SANTA ANA CA 92702 Customer: 35516 UNION PACIFIC RAILROAD Invoice #: DS217 Due Date: 08/15/2019 Amount Due: $11,124.92 DS00000217000035516000011124926DSOD0002170000355160000111249265 75B-6 CITY OF SANTA ANA Finance & Management Services Agency M-87 20 Civic Center Plaza P.O. Box 1964 Santa Ana, CA 92702 (714) 647-6543 Fax (714) 647-5414 i Customer: UNION PACIFIC RAILROAD LANCE M FRITZ, CHAIRMAN, PRESIDENT, AND CEO 1400 DOUGLAS ST 19TH FL OMAHA NE 68179 i INVOICE Date: 07/16/2019 Customer No. 35516 Invoice No. MP7 Due Date: 08/15/2019 Description: I Balance Forward: CITY STAFF TIME AND EQUIPMENT 5122119 AND 5123119 UNITED RENTALS INV_169595037.001 EQUIPMENT RENTAL Total Due: 38,507.36 1,116.47 Please remit payment within 30 days to the address referenced below. Past due accounts are referred to a collection agency. CHECK POLICY: It is understood by all persons who wish to write checks to the City that acceptance of checks is conditional upon the satisfactory collection of the check. If a check is dishonored or returned for any reason, the customer will be responsible for paying the full amount of the check that was returned plus the state's maximum allowable processing fee. 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CO O N 4fl O /D Cb t0 p CD co O O O O o O a p P Q 0 P 0 0 O a O (D a) a) N a) s�.02�.c °mr~ �� �co M 2 Cl) `O N ums u' LOLO m m m m m m m m m Q O Q Q Q Q Q O Q N N N N M N N M N N M N N N N N N N M N N M N M N tO In tO M 1( CO Si)t e 5 CO r f 1 s r m o 0o 75B-12 o united ,Rentals II IIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIII BRANCH 666 2720 SOUTH ORANGE AVR SANTA "A CA 92707•2727 139-LS6.0779 729-566-0894 FAX 4J rB CODE ENFORCEMENT Vi y 20 CIVIC CENTER PLZ SANTA ANA CA 92701-4058 h� Office: 714-647-5462 Cell: 714-667-2716 CITY OF SANTA ANA PO BOX 1988 PURCHASING SANTA ANA CA 92702-1988 RENTAL RETURN INVOICE Customer ip : 292671 :Invoice Date : tl5/24/19 Rental Out , OS/22/19 12 :40 PM Rental In : 05/24/19 1Ot34 AM UR Job UR Job # o : 34520 CIVIC CENTER PLZ, Customer Job ID: P.O. # : 0111-6550 Ordered By I SERGIO VERINO Written By I ALEX SERRAT'O Salesperson : HOUSE ACCOUNT Invoice Amount: $1,116.47 Trams: Due Upon Recept Paymentop0ous: Conlaclourttedk ollka 212.333.3300 EM.84885 REMIT TO: UNITED RENTALS(NORTH AMERICA),INC, FILE 51122 LOS ANGELES CA 90074-1122 OtY Equipment Description Minimum bay Wesk 4 47®ek Amnunt 1 10380017 TRUCK STAKE 221 WITH LIFT GATE 260.00 785.10 199D.94 520,00 Make: FREIGHTLNR Model: M2 106 STAKE Serial: 3ALACWDU2GDGX7684 Meter out: 67747.30 Meter in, 67781.30 RIGHT REAR FLAT WAS UNABLE TO REPAIR TIRE SINCE IT WAS CLOSE TO SIDEWALL TIRE HAD 95k LIFE SO PRORATED TIRE BILL Rental Subtotal; 520.00 BALES/MISCELLANEOUS ITEMS: City Item Prioe Unit of Measure Extended Amt. 5 REFURLING SERVICE CHARGE (DIESEL) [DSL/MCI] 0.400 EACH 42,00 1 TIRE REPAIR CHARGE [TIRE REPAIR/CLOUT) 457.730 EACH 457.73 Sales/Misc Subtotal: 499.73 Agreement Subtotal: 977.73 Fuel: 42.00 Tax: 96.74 Total: otal: 11116.47 CONTACT: SERGIO VERINO CELLO: 714-667.2716 0111-6550 62120 THIS INVOICE IS ISSUED SUBJECT TO THE TERMS AND CONDITIONS OP THE RENTAL AGREEMENT, WHICH ARE INCORPORATED HEREIN BY REFERENCE. A COPYOF THE RENTAL AGREEMENT IS AVAILABLE UPON REDDEST, You Can NowAecess Invoice Nlsrory and Uptlare Purchase OMere Online r,. a.,,....,, .....,.,, _..,_�,..._.._..�... ___ Page: 1 75 Invoice Date 1 Invoice # 5/24/2019 11729 18345 Pasadena Street Lake Elsinore, CA 92530 DL'11.1 A v't[) 1V 011.1✓, 1n/1 )x YAruir�' Bill To City of Santa Ana Parks Maintenance 20 Civic Center Plaza Santa Ana, CA 92701 P.O. No. Terms Project Sergio Verina Net 30 Quantity Description Rate Amount 3 Rail Road Track Abatement 75.00 225.00 1 Trip Charge 50.00 50.00 1 Dump Materials 130.08 I30.08 Total $405.08 75B-14 SLS Property Solutions, Inc. 919 E. Santa Ana Blvd. Santa Ana, CA 92701 US 714-231-2189 sarah@slspropertysolutions.com BILL TO City of Santa Ana P.O. NUMBER SITE ADDRESS On Call Railroad Debris Clean -Up ACTIVITY DATE QTY Board Up Revenue:Debris Removal 05/22/2019 9.85 Debris removal service: cost per ton. Includes clean-up debris by hand, disposal (no heavy equipment). Board Up Revenue:Debris Removal 05/23/2019 11.24 Debris removal service: cost per ton. Includes clean-up debris by hand, disposal (no heavy equipment). Work was ordered by Sergio Verino to clean homeless debris from along BALANCE DUE the tracks. Work took place over two days. INVOICE # 19-1830A DATE 06/03/2019 DUE DATE 07/03/2019 TERMS Net 30 RATE AMOUNT 508.29 5,006.66 508.29 5,713.18 $10,719.84 75B-15 MAYOR Miguel A Pultdo MAYOR PRO TEM Juan Villegas COUNCILMEMBERS Cecilia Iglesias David Penaloza Roman Reyna Vicente Sarmlento Jose Solorto April 15, 2019 CITY OF SANTA ANA PLANNING AND BUILDING AGENCY 20 Civic Center Plaza • P O Box 1988 Santa Ana, California 92702 wwN santa-ana oro VIA CERTIFIED U.S. MAIL Lance M. Fritz, Chairman, President and Chief Executive Officer Union Pacific Railroad 1400 Douglas Street, 19th Floor Omaha, NE 68179 Union Pacific Railroad c/o C. T. Corporation System, Agent for Service of Process Amanda Garcia Vivian Imperial Gladys Aguilera 818 W. Seventh Street, suite 930 Lus Angeles, CA 90001 ACTING CITY MANAGER Steven A Mendoza CITY ATTORNEY Sonia R Carvalho ACTING CLERK OF THE COUNCIL Norma Mrtre Subject: NOTICE TO CLEAN PREMISES within the City of Santa Ana, CA: - 1000-1100 East Chestnut i South Santa Fe (Railroad X-ing 9761244J), train tracks facing north and south; - 1200-1300 East Edinger (Railroad X-ing 4761246X), train tracks facing north and south; 1716 South Santa Fe Street, train tracks facing north and south; - 1200-1300 East Warner (Railroad X-ing #761248L), train tracks facing north and south; and, - 2500 South Main Street / 100 East Goetz (Railroad X-ing # 761253I3), train tracks facing east and west. As the property owner of record and responsible party, you are hereby notified that your above - listed properties are in violation of Article III of Chapter 16 of the Santa Ana Municipal Code SANTA ANA CITY COUNCIL iLaaii Pw�ac swan Vnayas .-a�¢a 3arn,an:c 0a"'-rawra losa io,.rn Ramw aerra Cr_:ea iaesres May, Mayor Pm Tam Ward 9 Wara VVard 2 WaM i Wam J WarC 3 la � 1uara �, o-Aieoas PJsar;a-ara ao rsa�^ierlc:r%sanaara vv ]c>�rac�a8= n�l�_ su¢neZsana-ara x�-e.�ai�sa,aara _ro yip eras®san a-ana av 75B-16 (SAMC). Specifically, violations of SAMC Section 16-48, as depicted on the attached photos, were noted on April 15, 2019. Section 16-48 prohibits the presence of rubbish and garbage, among other items accumulated upon or in front of the property which may be dangerous or injurious to neighboring properties and negatively impact the health and welfare of residents in the community. Your immediate attention to these conditions is required. In accordance with SAMC Sections 16-49 and 16-50, notice requiring abatement of such conditions within seven (7) days will be posted on your property. As permitted by SAMC Section 16-49(b), this letter shall also serve to provide similar notice that you must IMMEDIATELY take action to eliminate all rubbish and garbage from your property. As the property owner, you are responsible for ensuring the general property maintenance and compliance with all provisions of the Santa Ana Municipal Code. A copy of Article III of Chapter 16 of the Santa Ana Municipal Code is attached for your reference. An inspection of your property will be conducted on or after April 25, 20I9 to determine compliance with the Code. Failure to correct the indicated conditions will result in enforcement action against the property, which may include: (1) the City of Santa Ana may abate the conditions, and the cost thereof will be assessed against the land and become a lien thereon; (2) issuance of administrative fines in escalating amounts; (3) the filing of a civil lawsuit; (4) criminal citations; or (5) any combination thereof, in addition to any other remedies allowed by law. Any violation of Chapter 16 of the Santa Ana Municipal Code, constitutes a public nuisance pursuant to SAMC Section 16-60. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hail, 20 Civic Center Plaza, P.O. Box 1988, Santa Ara, California, no later than the date for abatement set forth hereinabove. We look forward to your cooperation in this matter and hope that enforcement action is not necessary. Sincerely, lvaro Nunez, Manager Code Enforcement Division City of Santa Ana, CA (714) 667-2780 anunez'nsanta-ana.ora cc: Minh Thai, Executive Director/Planning & Building Agency Steven Mendoza, Acting City Manager SANTA ANA CITY COUNCIL Myu2i A P'.o,, '.a^ �",a, , 1±>a idrl 3" J ✓y!'31!':! JCSo S-o'o Ri r-'dr Roy -a C2GIIa 1". Mayor Mayor Pro Tom Wara 5 1V.'1 I Nara 2 Ward 3 VVyra J Ward d TCuliaPil'sd!'�d-dl`d a, villaomasarta-af3 Xa oo'., gs`f of a-d' `v( aS�a a,�a aednia.a �a�r aalesas�sanr. Lupe Valdez, Director Public Affairs Union Pacific Railroad — Southern California 13181 Crossroads Pkwy N., Unit 500 City of Industry, CA 91746 Attachments: Notice to Clean Premises (posted copies) Property Maps Photos of Properties and Violations Santa Ana Municipal Code, Chapter 16, Article III SANTA ANA CITY COUNCIL MLguWA P,o.. -ar. - i e a Sa.T•ani� 'a. - , w Rsnar Rdy^a feolm lg�e Mayor Mayo' Pm yam War] 5 Ml3'tl 1 01..2 Ylard 3 Wa'a J Wd'd 5 Tvu1.dC0 31 3Yd ]! [11da.d21l'aaM 75B-18 (Dromeslic Mail only; NO Insurance Covemge Provided) a— 1 ra ftm TA- c - Lr) N \ S O Cerglled Fee Cro Pe§tMark 41 O ReturnReceiptRequired) fee - 1 a (Endorsement Required) jiare e, i Restricted Delivery Fee O 2n1,Ii0 q I p (Endorsement Required) !17 q o $1. uT Total Postage 9 Fees ,$ CO I a--o pset.. Apr. MO.;- -•-••--• r• or Po Box No. I 1 1 9' I rAJ)) "A r0 S rA c rR c IJl O O O C3 0 0 Ill 0 ra O 17, ET IJ1 ry E-' r-9 E' ra Lr) O O O O O O IJl O 0 0 M1 •EF IV IA L� U • E Codified Fee �S_r 4F„`1, $il, Il[L Rehm Receipt Fee (Endorsement Required) Pos h� m p '�. � - - • >' Restricted Newry Fee (Endorsement Required) n A } m - j ' • Total Postage 8 Fee es ,$ ant TO i or POBox Ab. ........... ...��,...1—.......... t.w City, `fey21PMC b IIVV tr. Postal CERTIFIED MAILr, RECEIPT r. Only; /ycyrL&Lieus-FL POseego''d ...- Certified Fee Return Receipt Fea (Endorsement Requlretl) },�I,a_i: on Restricted Delivery Fee (Endorsement Required) +�, Total Postage B Fees$ ; Sent lb IL 'Brrea4 p. O.; Or POBox No. )40U Ok6LAI S-C, Ati ................._.............. ................ i 75B-19 c 1. NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 1000-1100 EAST CHESTNUT/ SOUTH SANTA FE (RAILROAD X-ING #761244J) that the condition(s) of. RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before April 25. 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted April 15, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2780 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-2780 1 www.santa-ana.orq/pba 75B-20 1000-1100 East Chestnut / South Santa Fe (RK X-ing # 761244J) train tracks facing north and south SarM n 404-02 � 404-01 E'^o T STREET U E -GRAND me n+n y- AVENUE y 402-�� o � 1 A 5,1 m ti 4 1000-1100 East C` sstnut / South Santa Fa (RR X-ing # 761244J) train tracks facing n rth and Sautffl-45 m t 99a-46 N a x a W T n � I v 6� ! A V N N W Y FOST STREET L •w x O O 9 O � 'n N - b s. WALNUT STREET :n n CHESTNUT � 30 75B-22 STREET =9ifoltair 1000-1100 East Chestnut / South Santa Fe (Railroad X-ing #761244.i), train tracks facing North A. Nunez, Code Enforcement Manager April 15, 2019; pg. 1 NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 1200-1300 East Edinger (Railroad X-ing #761246X) that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before April 25, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted April 15, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2780 CODE ENFORCEMENT DIVISION i PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-2780 1 www.santa-ana.org/pba 75B-25 1200-13C.. East Edinger (RR X-ing #. A246 ) train tracks facing north and south 32 1 1 25 a T— a m,.> s. iwrrz.n.ra�.ace R. R •. 2 I. n ____a_ _ r �ro 11 m• a n Ye` E Smerr S. ZI e G mmi ad O ~ O � A er.re' eaj G m fCC.IY A Q A O � N Im.n' A Ao n a °o O N a ; b lel.ee• ! 0 nui m 4 O O p � nisi �e a F�m O O Z c N z BAR P ; NN x m n a U O 3v O a nt $ z g. a GRAND L i Mcur sx AVENUE 0 n m e = A m > 402-23 17 75B-Z6 N °nn AR, 0 u 1200-l::,v0 East Edinger (RR X-ing irT63246X) train tracks facing north and south 14-Ai GRAND [W a<r Sr) — AVENUF X, X �. w 75B-27 q !q PHOTOLOG 1200-4300 East Edinger (Railroad X-ing 9751246X), train tracks facing North A. Nunez, Code Enforcement Manager April 15, 2019; pg. 3 - 10411512019 15'33 _ COPY �>,x NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 1716 South Santa Fe Street train tracks facing north and south that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article 111, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before April 25, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted April 15, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2760 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-27801 www.santa-an2.org/pba 75B-30 1716 South Santa Fe Street, train traces facing north and south 14-13 14-32 MJEE pm .,_-,...:. � Ba.ef• _I_f_____e_t_i!_M_CN_t �d e a = { O 5 ROw R Q ti naw' eaoe,..ee'� By Ka. a, p SANM FE e.— $ S7REE7 -- a I e O p 1 m 3 ° a new' ■ O ° -I 1 1 A � a aax I 2 AOR4M 4N © o 1 Ip \ a apw T �_ b Y $ v L 11 ° a H QI N 0 T T O O 1 N rN I u n n _ m N A u O N 4 iM1 O $ O I IY 1 b � 0 a n Q s o .}- i� � 0 m near * ne.n A Zy >t N 00 S. L s N —GRAND INC cur rcl AVENUE §� N v z 0 m 20 09 a 0 � O 75B-31 e ----------- COO �vu �z NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 1200-1300 East Warner (Railroad X-inq #761248L) that the condition(s) of; RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before April 25, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted April 15, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2780 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 I SANTA ANA, CA. 92702 714-667-2780 1 wvwv.santa-ana.org/pba 75B-33 1200-4 300 East Warner R X R` «761 8 »/ntarcks-facing north and south { ��: k ,w: \zq ] )� { !� b , ■ § { �_»«r ,_r ! � | G § - § i $ . . � — \ | AYM! •— 2 9 _ e 75B- 4 CO ��S z 1200-1300 Last Warner (RR X-into #'tul2-48L)'_�-� �tia.Nu train tracks facing north and soLFth N e^nub 2 Y m 13 oPv,X, n @ 'r e b 11 I i yy �p 6RANUm9 — 1 c- 22 ►W i N W 1 v — lO J� 75B-35 PHOTOLOG 1200-1300 East Warner (Ving 4761248L), train tracks facing North A. Nunez, Code Enforcement Manager April 15, 2019; pg.6 r 7" l a- ; S 0 115/20.19 15 51 �i CoVi a1 . NOTICE TO GLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 2500 South Main Street / 100 East Goetz (Railroad X-ing # 761253H) that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Artiole III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before April 25, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted April 15, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2760 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-2780 1 www.santa-ana.org/pba 75B-38 2500 South Main otreet 1 100 East Goetz (Rh X-ing # '7S'i253H) train tracks facing east and vest 1m Fl 02 BIRCH srREEr C O _ MG/N rss,w.mw STREET r. ss, R.am 5 ? ie-05 75B-3§ +5' 2500 South Pain St A / 105 East (Goetz (RR kinc ' 761253 =i'-1 i train tracks facing east and west = VR , '8�� r/ €`1A o�o 04 L`ca ` I P N I S O O '♦ 4 I n 0 GOETP AVFAUr f NI cny y I I 9 � m ak0 •.InN w n' I IN N S e I I wr ♦ • © I I- O - y 4 m' � w' I a ALLEY w.n w zm� ENO N � � W R as zhm O<oH O of� u re a � TO xaf 116.0/' l' ROAD '� p o+ ILn ---"— --- 11 75B-40 lxlelfol tsld 2500 South Main Street / 100 East Goetz (X-ing # 76125311), train tracks facing East A. Nunez, Code Enforcement Manager April 15, 2019; pg 8 PHOTOLOG 2500 South Main Street / 100 East Goetz (X-ing # 761253H), train tracks facing West A. Nunez, Code Enforcement Manager April 15, 2019; pg. 9 SANTA ANA MUNICIPAL, ODE CHAPTER 16, ARTICLE III ARTICLE IIL -GARBAGE, RUBBISH AND WEED CONTROL Sec, 16.46, - Short title, This article shall be known and may be cited as the "Garbage, Rubbish and Weed Control Ordinance" of the city. (Code 1952, § 3840; Ord. No. NS-880, § 1, 6.5.67; Ord, No. NS-1085, § 2, 10-18-71) Sec. 16.47. - Definitions, For the purpose of this article, the following terms, phrases, words and their derivations shall have the meanings given herein, unless the context Indicates that a different meaning Is Intended: Brush. Branches of trees sheared therefrom, a thicket of shrubs, or bushes. City finance director, The executive director of the finance and management services of the city or his or her designated representative. City public works director. The executive director of the public works agency of the city or his or her designated representative. Garbage. Accumulations of animal, fruit or vegetable matter, liquid or otherwise, that attend the preparation, use, cooking, dealing in or storing of meat, fish, fowl, fruit or vegetable. Lot. Any lot, parcel, tract or piece of land, Improved or unimproved, Including the sidewalk area abutting or adjoining said lot, parcel, tract or piece of land; and the parkways, or areas lying between the curbline and the street line of said adjoining or abutting lot, bounded on the sides by the prolongations in straight lines of the side (Ines of the lot In front of which such parkway or area exists, Noxious growth. Weeds, vines or brush which bear seeds of a wingy or downy nature, or which attain a high growth as to become a fire menace when dry, or which contain poisonous oils that become dangerous to the life and health of the community. Private premises, Any dwelling, house, building or other structure, designed or used either wholly or in part for private residential purposes, whether inhabited or temporarily or continuously uninhabited or vacant, and shall Include any yard, grounds, walk, driveway, porch, steps or vestibule belonging or appurtenant to such dwelling, house, building or other structure. Public place. Any and all streets, sidewalks, boulevards, alleys or other public ways and any and all public squares, spaces, grounds and buildings, Rubbish. Scrap metals, junk, disassembled parts of automobiles or machinery, construction or demolition materials, debris, litter, paper, cardboard, metal cans, glass, cut brush, dead trees, tree limbs and similar materials. Street line. The boundary line between a public street right-of-way and an abutting lot or parcel of land, or between a private street open to public use and an abutting lot or parcel of land. (Code 1952, § 3841; Ord. No. NS-880, § 1, 6.5-67; Ord, No. NS-1085, § 2,10-18.71; Ord. No, NS-2300, § 1, 9-3-96) Editor's note— The editors arranged the definitions alphabetically, to facilitate reference and use. Sec. 16-48.- Noxious growths, rubbish, garbage prohibited; prima facie evidence. 75B-43 SANTA ANA MLINICIPAL LODE CHAPTER 16, ARTICLE III No person owning, managing or having control or charge or occupancy of any lot or private premises, shall: (1) Allow noxious growths or growths otherwise dangerous to the life, health, comfort or convenience of the community, to grow or remain upon such lot or private premises; (2) Sow or disseminate, or allow or permit to mature, any noxious growth upon such lot or private premises; (3) Suffer or permit any weeds, grass, rank growth or brush to grow or exist in excess of six inches (6") above the grade In the area of growth; (4) Cause or permit rubbish or garbage to be placed or to exist upon such lot or private property. It Is the duty of every such person to prevent such growth or existence, To establish a prima facie violation of this section, it shall not be necessary to establish any facts except that the accused person owned, managed, or had charge, control or occupancy of a lot or private premises whereon such condition existed or occurred. (Code 1952, § 3842; Ord. No. NS-880, § 1, 6-5-67; Ord, No. NS-1085, § 2, 10-18-71) Sec. 16-49.-Order and notice requiring removal of noxious growths, rubbish, garbage —Time limit; posting, mailing, (a) If and when It shall appear that noxious growths, rubbish or garbage have been placed upon or in front of private property in violation of any of the provisions of this article or of any other provisions of this Code, the city public works director may, by appropriate written order, direct the removal thereof and shall cause notices to be posted upon or In front of such property to the effect that such weeds, vines, shrubs, brush, rubbish or garbage must be removed within seven (7) days from and after the date of such posting. Such notices shall be conspicuously posted on or in front of the property on or in front of which the condition exists, as follows: (1) One (1) notice shall be posted on or In front of each separately owned parcel; (2) Not more than two (2) notices shall be posted to any parcel of fifty (50) to one hundred (100) feet frontage; (3) Notices shall be placed at Intervals of not more than one hundred (100) feet, If the frontage of a parcel Is greater than one hundred (100) feet, with one (1) notice for each one hundred (100) feet of frontage. (b) In addition to posting such notices, the city public works director may send a similar notice to the owner of the subject property as shown upon any city record, or upon the last equalized tax roll, by depositing such notice In the United States mall; but the failure of the owner to receive such notice shall not affect the power of the city or Its officers or employees to proceed as provided in this article. Such notice shall be mailed not less than twenty (20) days prior to the date set for a hearing upon objections. (Code 1952, § 3842.1; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-1085, § 2, 10-18-71; Ord, No. NS-1476, § 1, 3-12-79; Ord. No. NS-2300, § 2, 9-3-96) Sec. 16.50, - Same —Form of notice. The headings of the notices required by section 16.49 shall be in letters approximately one Inch in height. Said notices shall be in substantially the following form: "NOTICE TO CLEAN PREMISES 75B-44 SANTA ANA MUNICIPAL .ODE CHAPTER 16, ARTICLE II I "NOTICE IS HEREBY GIVEN to the owner, manager, occupant or persons having charge or control of the property located at (describe property, e.g., address, assessor's parcel number, physical description) that the conditlon(s) of (describe violation(s)) exists upon the property which is/are In violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. 'The said condition(s) must be abated on or before I / 19 . If not abated on or before said date, the City of Santa Ana may abate the condition or cause it to be abated and the costs thereof will be assessed against the land end become a lien thereon, "Any person objecting to the abatement work specified In this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection, All such statements must be flied with the Clerk of the Council, City Hall, 20 Civic Center Plaza, Santa Ana, California, not later than the date for abatement set forth hereinabove," (Code 1952, § 3842.2; Ord. No. NS-880, § 1, 6-6-67; Ord. No. NS-1085, § 2, 10-18-71; Ord. No, NS-1235, § 40,12-9-74; Ord. No. NS-1476, § 2, 3-12-79) Sec.16-51, - Hearing. If the clerk of the council receives any appeals from the notice specified in section 16-50, the clerk shall set such appeals for public hearing by the city council and shall send written notices of such public hearing to all persons filing such appeals. At the time and place stated in the notices, the city council shall hear and consider all objections to the proposed abatement work. At the conclusion of the hearing, the council shall allow or overrule any objections. (Ord, No, NS-2300, § 3, 9-3.96) Editor's mote— Prior to the reenactment of § 16-51 by Ord. No. NS-2300, Ord, No. NS-1235, § 41, enacted Dec. 9,1974, had repealed § 16-51, which had pertained to hearings and had derived from Code 1952, § 3842.3 and Ord. No. NS-880, § 1, adopted June 5, 1967. Sec.16-52. - Abatement order —Prom council. At the conclusion of said hearing, the council may order the city public works director to abate said nuisance by entering upon private property to abate and remove the same. (Code 1952, § 3842.4; Ord. No. NS-880, § 1, 6-5-67, Ord. No. NS-1235, § 42,12-9-74; Ord, No. NS-2300, § 4, 9-3-96) Sec. 16-53, - Same --Service. The city public works director shall serve by registered or certified mall, return receipt requested, postage prepaid, a copy of said abatement order forthwith upon those persons who have filed written statements of objectlors. The abatement order shall specify that unless the nuisance is removed and abated within seven (7) days from the date of mailing, said officer will abate the same and will, if 75B-45 SANTA ANA MUNICIPAL %.r3DE CHAPTER 16, ARTICLE III necessary, enter upon or Into the private property of said person without further notice or liability therefor In order to abate said nuisance. (Code 1952, § 3842.4; Ord, No. NS-880, § 1, 6-5-67; Ord. No. NS-2300, § 5, 9-3-96) Sec. 16-54. - Abatement action by city. The city public works director may cause the city's nuisance abatement work force or contractor to enter upon any private property and abate any nuisance found thereon, or in front thereof, provided ten (10) days notice to abate such nuisance shall have been posted or mailed as required by this article, the time allowed by such notice shall have expired, and no person shall have filed a written statement of objections as herein provided within ten (10) days after posting or mailing; In the event objections shall have been duty filed, and overruled by the city council, the city public works director may cause the city's nuisance abatement work force or contractor to enter upon any such private property and, in accordance with the order of the city, abate the nuisance found thereon, or in front thereof. (Code 1952, § 3842.6; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-1235, § 43, 12-9-74; Ord. No. NS-2300, § 6, 9-3-96) Sec. 16.55. - Cost of abatement. (a) The city public works director shall keep a separate account of the cost of abatement In front of or on each individual lot or parcel of land where abatement work is done. He shall submit to the city manager for confirmation an Itemized written report showing such cost. A copy of the report shall be posted for at least three (3) days prior to Its submission to the city council on or near the council chamber door with a notice of the time of submission. At the time fixed for receiving and considering the report, the city council may hear the matter or refer it to the hearing officer under the provisions of Chapter 3 of this Code. (b) The city council may, by resolution, establish a standard administrative fee for parcels requiring nuisance abatement work by the city's nuisance abatement work force or contractor. Such fee shall be in addition to the direct cost of the abatement work and shall be in an amount reasonably determined to cover such costs as posting, inspection, contractor supervision, and the like. (c) The city council may, by resolution, also establish a standard charge for additional administrative costs for parcels requiring more than one (1) notice of abatement in any twelve-month period. (Code 1952, § 3842.7; Ord. No. NS-880, § 1, 6-5-67; Ord. No, NS-1235, § 44, 12-9-74; Ord. No. NS-2300, § 7, 9-3-96) State Law reference— For authority to abate nuisances, see § 38773, Gov. Code. See.16.56. - Receiving, receipting and billing for cost to city. The city finance director shall receive the amount due on the abatement cost and shall Issue receipts at any time after the confirmation of the report. The city finance director may bill the owner of record directly at any time he shall desire. (Code 1952, § 3842.10; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-2300, § 8, 9-3-96) Sec.16-57. - Special assessments —Lien. 75B-46 SANTA ANA MUNICIPAL BODE CHAPTER 16, ARTICLE III The cost of abatement in front of or upon each lot or parcel of land constitutes a special assessment against that lot or parcel. After the assessment is made and confirmed, it Is a Ilan on the lot or parcel. (Code 1952, § 3842.8; Ord. No. NS-880, § 1, 6-5-67) Sec, 16.58. - Same --Collection procedure. After confirmation of a report, a certified copy of the same shall be filed with the county auditor on or before August 10th of each year. The descriptions of the parcels reported shall be those used for the same parcels on the county assessor's map book for the current year. The county auditor shall enter each assessment on the county tax roll opposite the parcel of land. The amount of the assessment shall be collected at the time and in the manner of ordinary municipal taxes, if delinquent, the amount is subject to the same penalties and procedures of foreclosure and sale provided for ordinary municipal taxes. As an alternative method, the county tax collector, in his discretion, may collect the assessments without reference to the general taxes, by issuing separate bills and receipts for the assessments. Laws relating to the levy, collection, and enforcement of county taxes shall apply to such special assessment taxes. (Code 1952, § 3842.9; Gird. No. NS-880, § 1, 6-5-67) Sec.16.59. - Same —Correction of error. (a) Any assessment erroneously made may be cancelled or reduced so as to correct any error, and the tax paid on account thereof, not including any penalties or interest, may be refunded to the person who paid the same, In accordance with the following procedure: (1) A claim of error may be filed with the clerk of the council at any time before the expiration of one year following April 10th of the tax year In which such assessment appears or would first appear on the tax bill for the affected property. Such claim shall be in writing, in such form and detail as shall be required by the clerk of the council, and shall be verified; (2) Any claim filed shall be forwarded to the city public works director for review and report to the city finance director, If the city public works director shall determine that such assessment was erroneously made, In whole or in part, the city finance director shall request the county board of supervisors to direct the county auditor -controller to correct the tax rolls as to the affected property by removing or reducing the erroneous assessment, and the direction of the city finance director shall be authority for the auditor -controller so to correct the tax rolls. If such assessment shall have been paid, the part determined to be erroneously levied shalt be refunded to the person who paid the same, by the city finance director. In lieu of proof otherwise, the city finance director may presume that the persons to whom the abatement cost was assessed were the persons who paid the some; (3) Any claimant whose claim Is not favorably acted upon in whole or in part within sixty (60) days after the filing of the same, or whose claim is denied. In whole or in part in writing, by the city finance director, may, within ten (10) days after such denial or after the expiration of such period, appeal such denial or failure to act favorably to the city council pursuant to Chapter 3 of the Santa Ana Municipal Code; (4) If the city council shall find the disputed assessment to be erroneous in whole or in part it may direct the city finance director to correct the assessment accordingly, to cause the tax rolls to be corrected, and to make a refund of any portion of the assessment paid, all in the manner as hersinabove provided for such corrections and refunds; (5) Not later than thirty (30) days after the correction of any assessment or refund of any monies hereinunder, except by direction of the city council, the city finance director shall transmit to the CRY ootmcil a report of such action, together with the report of the city public works director. 75B-47 SANTA ANA MUNICIPAL .ODE CHAPTER 16, ARTICLE III (b) Whenever the tax rolls have been corrected or a refund has been made hereunder by reason of an erroneous assessment, a corrected written report of the type required by section 16-55, relating to the work for which such erroneous assessment was levied, may be prepared by the officer who prepared the original report. Such report shall show the cost of abatement in front of or on the parcel or lot where the work has been done and shall state that it Is proposed to assess such cost against such lot or parcel. A copy of such corrected report shall be mailed to the owner of said lot or parcel as shown upon the current assessment roll. In oil other respects, sections 16-56 through 16-58 shall apply to such corrected assessments, except that the time for doing all things herein specified shall relate from the date of confirmation of the corrected assessment. (Code 1952, § 3842.11; Ord. No. NS-880, § 1, 6-5-67; Ord, No. NS-1235, § 2, 12-9-74; Ord. No. NS-2300, § 9, 9.3-96) Sec. 16.60. - Violation a public nuisance; remedies. Violation of this article is declared to be a public nuisance which may be abated as provided in part 3 of division 4 of the civil code of the state and in chapter 2 of title X of part 2 of the code of civil procedure of the state, which remedy shall be in addition to any other remedy provided In this article or by stale law, Including section 372 of the penal code of the state. (Code 1952, § 3843; Ord. No. NS-880, § 1, 6-5.67; Ord. No. NS-2300, § 10, 9-3-96) Secs. 16-61-16-109. - Reserved. 75B-48 EXHIBIT 2 City of Santa Ana: Inspection and Abatement Warrant Date of Invoice: 8/6/2019 Railroad Locations: • 2900 South Flower Street (Railroad X-ing # 761682L), train tracks facing west; • 3200 South Bristol Street (Railroad X-ing # 761681E), train tracks facing east; • 3200-3300 S. Susan Street (Railroad X-ing # 761672F), train tracks facing west; • 3400 W. McArthur (Railroad X-ing # 761664N), train tracks facing northeast.1000-1100 EAST Inspection and Abatement Warrant, execution: • July 10, 2019 • July 11, 2019 City of Santa Ana encumbered costs: City Staff and Equipment: $26,199.85 Account:0111600257010 75B-49 CITY OF SANTA ANA Finance & Management Services Agency M-87 20 Civic Center Plaza P.O. Box 1964 Santa Ana, CA 92702 (714) 647-6543 Fax (714) 647-5414 Customer: UNION PACIFIC RAILROAD LANCE M FRITZ, CHAIRMAN, PRESIDENT, AND CEO 1400 DOUGLAS ST 19TH FL OMAHA NE 68179 INVOICE Date: 08/06/2019 Customer No. 35516 Invoice No. MP8 Due Date: 09/05/2019 Description: Balance Forward: CITY STAFF AND EQUIPMENT 26,199.85 JULY 10-JULY 11, 2019 Total Due: $26,199.85 Please remit payment within 30 days to the address referenced below. Past due accounts are referred to a collection agency. CHECK POLICY. It is understood by all persons who wish to write checks to the City that acceptance of checks is conditional upon the satisfactory collection of the check. !f a check is dishonored or returned for any reason, the customer will be responsible for paying the full amount of the check that was returned plus the state's maximum allowable processing fee. PLEASE DETACH AND RETURN THIS PORTION WITH REMITTANCE MAIL PAYMENT TO: CITY OF SANTA ANA M-13 20 CIVIC CENTER PLAZA PO BOX 1964 SANTA ANA CA 92702 Customer: 35516 UNION PACIFIC RAILROAD Invoice #: MP8 Due Date: 09/05/2019 Amount Due: $26,199.85 MP00000008D00035516000026199856MP000000080000355160000261998565 75B-50 ROAD INSPECTION AND ABATEMENT WARRANT COSTS Flower-Bristol/Susan MacAr B. - B- WMIN - 7/10/2019 Parks & Rec Bernie Rodriguez Maintenance Assistant - 8 $ 295-25 7/10/2019 Parks & Rec Eric Castelan Maintenance Assistant 8 $ 284.68 7/10/2019 Parks & Rec Kevin Eaton - Assistant Park/Lan. Planner 1. $ 54.68. 7/10/2019 Parks & Rec Juan lopez Park Services Insp. Supervisor 1 $ 58.03 7/11/2019 Parks &Rec Bernie Rodriguez Maintenance Assistant 8 $ 692.64 7/11/2019 Parks & Rec Eric Castelan Maintenance Assistant 8 $ 397,39 7/11/2019 Parks & Rec IJuan Garcia - Park Services Insp. II 8 $ 112.71 $ 1,895.38 7/10/2019 SAPD Cpl. R. Velasquez Corporal 9 $ 563,94 7/10/2019 SAPD Cpl. O. Garcia Corporal 9 $ 563.94 - 7/10/2019 SAPD Oft. L. Gonzalez Officer 9 $ 524.34 7/10/2019 SAPD Oft. J. Kien Officer 9 $491.49 - 7/10/2019 SAPD Ofc, T. Stanaland Officer 9 $ 42712 7/10/2019 SAPD Ofc. J, Collins - Officer 9 $448,6$ 7/10/2019 SAPD Ofc. G. Ayala Officer 9 $ 552,96 7/10/2019 SAPD - -- Ofc. &.Duarte - - Officer 9. $ 526.95 7/10/2019 SAPD Oft. M, Smith Officer 9 $ 491.49 7/10/2019 SAPD Ofc. A. Callas Officer 9. $ 493.56 7/10/2019 SAPD Ofc. M. Matherly Officer - $ 640.98 7/10/2019 SAPD Oft. J..Babinski .Officer - $ 717.03' - 7/10/2019 SAPD Ofe. M. Thomas Officer $ 717.03 7/10/2019 SAPD Dep. Chief Gominksy Deputy Chief 3 $ 27713 7/10/2019 SAPD Commander P. Craft Commander 9 $ 253.02 7/11/2019 SAPD Cpl, R, Velas q uez Corporal 4 $ 250.64 7/11/2019 SAPD 10fc. L. Gonzalez Officer 4 $ 233.04 7/11/2019 SAPD - - Oft. J. Klan '- - Officer 4 1 $.218.44 7/11/2019 SAPD Ofc. T. Stanaland Officer 4 $189,92 7/i1/2019 SAPD Oft. J. Collins-3 Officer 4 $ 199.40 7/11/2019 SAPD Oft. G. Ayala Officer 4 $ 245.76 7/11/2019 SAPD ,: Oft. M. Smith Officer - 4 $ 218.44 7/11/2019 SAPD Ofc. A. Callas Officer 4 $ 219.36 7/11/2019 SAPD Ofc. M. Mathedy Officer $ 640.98' 7/11/2019 SAPD Ofc. J. Babinski Officer - $ 717.03 7/11/2019 SAPD 10fc, M. Thomas Officer $ 717.03 $ 11,539.97 7/10/2019 PWA Salvador Salcido Maintenance Worker 1 9 $.196.47 7/10/2019. PWA ' Ruben Corne o Tree Trimmer: 9 $ 291,24 7/10/2019 PWA Luis Fematt Public Works Crew Leader 9 $ 312.75 7/10/2019 PWA Ryan Plato Maintenance Worker 1 9 $ 187.11 7/10/2019 PWA Luzanna Guillen Sanitation inspector II 9 $ 295,47 7/10/2019 PWA - Gregory Boettcher Maintenance Worker 11 9. $ 270.09 7/10/2019 PWA Juan Ixta Public Works Crew Leader 9 $ 266.31 7/10/2019 PWA Michael Magana Maintenance Worker 1 9 $ 196A7 7/10/2019 PWA Isiah Togia Sr. Maintenance Worker 9 $ 154.62 7/10/2019 PWA Joseph Brown Maintenance Worker 1 9 $ 196.47 7/10/2019 PWA Ronald Salcido Sr. Maintenance Worker 9 $ 187.83 7/10/2019 PWA Philip Ramirez Equipment Operator - Water Ser 9 $305.10 7/10/2019 PWA Jorge Navarro Water Services Worker 1 9 $ 233.28 7/10/2019 PWA Gabriel Avina Water Services Worker ll 9 $276.75 7/10/2019 PWA Jorge Navarro -Diaz Water Services Worker 1 9 $ 233.28 7/10/2019 PWA Loader EQUIPMENT 9 $ 77,13 7/10/2019 PWA ITen Wheeler EQUIPMENT 9 $ 87.39 7/10/2019 PWA Ten Wheeler EQUIPMENT 7/10/2019 PWA Backhoe EQUIPMENT 7/10/2019 PWA Stakebed EQUIPMENT 7/10/2019 PWA 15takebed JEQUIPMENT 75B-51 7/10/201 PPWA Stakebed EQUIPMENT 9 $ 51.93 7/10/2019 PWA Pick Up EQUIPMENT 9 $ 20.43 7/10/2019 PWA Pick Up EQUIPMENT 9 $ 27.90 7/10/2019 PWA Clamp Truck EQUIPMENT 9 $ 85.23 7/10/2019 PWA_ Backhoe EQUIPMENT 9 $. 69.84 7/20/2019 _ PWA Backhoe EQUIPMENT 9 $ 70.29 7/10/2019 PWA - 114SD Heavy Duty Truck EQUIPMENT 9 $138.69 7/10/2019 PWA LT 8513 Commercial Truck EQUIPMENT 9 $ 88.20 7/11/2019 PWA 15alvadorSaicido Maintenance Worker l 9 $.196.47 7/11/2019 PWA IRuben Cornejo Tree Trimmer 9 $291.24 7/11/2019 PWA Ryan Pilato Maintenance Worker 1 9 1$187.11 7/11/2019 PWA Luzanna Gulllen Sanitation Inspector II 9 $ 295,47 7/11/2019 PWA Gregory Boettcher Maintenance Worker II 9 $ 270.09 7/11/2019 PWA Michael Ma ana Maintenance Worker 1 9 $ 196.47 7/11/2019 PWA Isiah Togia Sr. Maintenance Worker 9 $154.62 7/11/2019 PWA Joseph Brown Maintenance Worker 1 9 $ 196.47 7/11/2019 PWA Ronald Salcido Sr. Maintenance Worker 9 $187.83 7/11/2019 PWA David Jr. Carbajal Sr. Maintenance Worker 9 $ 154.62 7/11/2019 PWA Raul Ruvalcaba Sr. Maintenance Worker 9 $ 154.62 7/11/2019 PWA li,oader EQUIPMENT 9 1$ 77.13 7/11/2019 PWA ITen Wheeler EQUIPMENT 9 1 $ 87.39 7/11/2019 PWA ITen Wheeler EQUIPMENT 9 1 $ 87.39 7/11/2019 PWA Backhoe EQUIPMENT 9 IS 70.29 7/11/2019 PWA Stakebed EQUIPMENT 9 $ 70.29 7/11/2019 PWA Stakebed EQUIPMENT 9 $ 66.15 7/11/2019 PWA Stakebed EQUIPMENT 9 $ 51,93 7/11/2019 PWA Pick Up EQUIPMENT 9 $ 20.43 7/11/2019 PWA Clamp Truck EQUIPMENT 9 $ 85.23 $ 7,515.63 7/10/2019 CDA Hafsa Kaka Homeless Services Manager 3 $ 218.40 $ 218.40 6/25/2019 CODE Alejandro Rodriguez Code Enforcement Officer 2 $ 90.86 6/26/2019 CODE Alejandro Rodriguez Code Enforcement Officer 6 $ 272,58 7/1/2019 CODE Alejandro Rodriguez Code Enforcement Officer 1 $ 45.43 7/2/2019 CODE Alejandro Rodriguez Cade Enforcement Officer 4 $ 181.72 7/2/2019 CODE Alvaro Nunez Code Enforcement Manager 4 $ 282.92 7/3/2019 CODE Alejandro Rodriguez Code Enforcement Officer 2 $ 90.86 7/3/2019 CODE Alvaro Nunez Code Enforcement Manager 2 $141.46 7/8/2019 CODE Alejandro Jimenez Code Enforcement Officer 3 $136.29 7/10/2019 ICODE Cesar Jimenez Code Enforcement Officer 9 $ 389.79 7/10/2019 CODE Alejandro Rodriguez Code Enforcement Officer 9 $ 408.87 7/10/2019 CODE Alvaro Nuflez Code Enforcement Manager 4 $ 282.92 7/11/2,019 CODE Cesar Jimenez Code Enforcement Officer 9 $ 389.79 7/11/2019 CODE Alejandro Rodriguez Code Enforcement Officer 9 $ 408.87 7/11/2019 CODE Alvaro Nuflez Code Enforcement Manager 4 $ 282.92 7/16/2019 CODE Alejandro Rodriguez Code Enforcement Officer 2 $ 90.86 7/17/2019 CODE Alejandro Rodriguez Code Enforcement Officer 3 $ 136.29 7/18/2019 CODE Alejandro Rodriguez Code Enforcement Officer 2 $ 90.86 7/18/2019 CODE Alvaro Nuflez Code Enforcement Manager 2 $ 141.46 7/22/2019 CODE JAlejandro Rodriguez Code Enforcement Officer 4 $ 181.72 $ 4,046,47 7/10/2019 1 CITY ATTORNEY I Ryan Hodge Assistant City Attorney 8 $ 984,00 $ 984,00 26,199,85 75B-52 MAYOR Miguel A. Pulido MAYOR PRO TE:vI Juan Villegas COUNCILMEMBERS Cecilia 16ies!as David Peralaza Vicanta Savniento Jose Solaria CITY OF SANTA ANA Planning and Building Agency 20 Civic Center Pla-za . P.O. Box i 9e$ Santa Ana, California 92702 wA Santa-ana orc June 10, 2019 VIA CERTIFIED U.S. MAIL Lance M. Fritz, Chairman, President and Chief Executive Officer Union Pacific Railroad 7008 0500 0000 5707 5255 1400 Douglas Street, 19th Floor Omaha, NE 68179 Union Pacific Railroad c/o C. T. Corporation System, Agent for Service of Process Amanda Garcia 7008 0500 00011 5707 5262 Vivian Imperial Gladys Aguilera 818 W. 7th St. Suite 930 Los Angeles, CA 90017 CITY MANAGER Krisvne Ridge CITY ATTORNEY Sonia R Carvalho ACTING CLERK OF THE COUNCIL Norma Brtltro-Ramirez Subject: NOTICE TO CLEAN PREMISES within the City of Santa Ana, CA: - 3200 South Bristol Street / 1200 W. Alton (Railroad X-ing # 761681E), train tracks facing east - 2900 South Flower Street (Railroad X-ing # 761682L), train tracks facing west; - 3200-3300 S. Susan Street (Railroad X-ing # 761672F); train tracks facing west; and, 3400 W. McArthur (Railroad X-ing # 761664N), train tracks facing northeast. As the property owner of record and responsible party, you are hereby notified that your above - listed properties are in violation of Article III of Chapter 16 of the Santa Ana Municipal Code (SAMC). Specifically, violations of SAMC Section 16-48, as depicted on the attached photos, were SANTA ANA CITY COUNCIL Ay,.z a P_, ac scar v a, v una Sar'•-�erm y7 y�A else Som.c w.-ar. Cam. i .yam, Alai=' W'a 'Pn Tar. Warm War:1 .. r Wag1 .aa+ weed _sdr93ra :'] '.I�Nds csarlga'a_r- v —'^ ^.: 1CSd"13-3^a:F' 2 ar soCrc Bsar'la-era J,] S^ems 5i3s('LSdn!9: a-a�i' noted on June7, 2019. Section 16-48 prohibits the presence of rubbish and garbage, among other items accumulated upon or in front of the property which may be dangerous or injurious to neighboring properties and negatively impact the health and welfare of residents in the community. Your immediate attention to these conditions is required. In accordance with SAMC Sections 16-49 and 16-50, notice requiring abatement of such conditions within seven (7) days will be posted on your property. As permitted by SAMC Section 16-49(b), this letter shall also serve to provide similar notice that you must IMMEDIATELY take action to eliminate all rubbish and garbage from your property. As the property owner, you are responsible for ensuring the general property maintenance and compliance with all provisions of the Santa Ana Municipal Code. A copy of Article III of Chapter 16 of the Santa Ana Municipal Code is attached for your reference. An inspection of your property will be conducted on or after June 21, 2019 to determine compliance with the Code. Failure to correct the indicated conditions will result in enforcement action against the property, which may include: (1) the City of Santa Ana may abate the conditions, and the cost thereof will be assessed against the land and become a lien thereon; (2) issuance of administrative fines in escalating amounts; (3) the filing of a civil lawsuit; (4) criminal citations; or (5) any combination thereof, in addition to any other remedies allowed by law. Any violation of Chapter 16 of the Santa Ana Municipal Code, constitutes a public nuisance pursuant to SAMC Section 16-60. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. We look forward to your cooperation in this matter and hope that enforcement action is not necessary. Sincerely, •, :416�� Alvaro Nurriez, Manager Code Enforcement Division City of Santa Ana, CA (714)667-2780 anunezFt santa-ana.ora cc: Minh Thai, Executive Director/Planning & Building Agency John Funk, Assistant City Attorney Ryan Hodge, Assistant City Attorney SANTA ANA CITY COUNCIL V acar. Caoual A4 y.e a Pvs ar T.e vcacWSarT•arm Dare Praw_a /aW -3 S' Maya Mayal Pro Tan N/aU 5 Wa{] 2 Ww. J Ytv] Waz= — C�i5df1331'd JIC r.��2rd52"]dCl3dfd _T: YSd!'^IE" • df13- 3 � � Se'rld 3fd :ram CIOaSdr a-dfd :r] Lupe Valdez, Director Public Affairs 7008 0500 0000 5707 5279 Union Pacific Railroad — Southern California 13181 Crossroads Pkwy N., Unit 500 City of Industry, CA 91746 Attachments: Notice to Clean Premises (posted copies) Property Maps Photos of Properties and Violations Santa Ana Municipal Code, Chapter 16, Article III SANTA ANA CITY COUNCIL AI 4_t. > P-_oac J.ar V'I yas Vicerle ianiJ � JOcslasaSra:aaro Vawn MayeMayer Pro Ta War= 5 Waa 3 Ward a C • sViat. gr a I - v .2 as aiarla aa 6 i• ara ]r: : ciesA NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 2900 South Flower Street (Railroad X-ing # 761682L) that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before June 7, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted June 7, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2780 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714.667.27801 www.santa-ana.org/pba 75B-56 NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 3200 South Bristol Street / 1200 W. Alton (Railroad X-ing # 761681 E) that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before June 7, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted June 7, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2780 CODE ENFORCEMENT DIVISION 1 PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-2780 1 www.santa-ana.org/pba 75B-57 iC O V v 4 'u F ar C 75B-58 75B-59 PHOTOLOG 2900 South Flower Street (Railroad X-ing # 761682L), train tracks facing west; Z i y M r vvR . '4 �Y a'f Alvaro Nunez I Code Enforcement Manager June 7, 2019 Page 11 75B-60 PHOTOLOG 3200 South Bristol Street / 1200 W. Alton (Railroad X-ing 9 761681E), train tracks facing east Alvaro Nuhez I Code Enforcement Manager June 7, 2019 Page I 1 75B-61 NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 3400 W. McArthur (Railroad X-ing # 761664N) that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before June 7, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted June 7, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667.2780 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-2780 1 www.santa-ana.orq/pba 75B-62 NOTICE TO CLEAN PREMISES NOTICE IS HEREBY GIVEN to the owner, manager, occupants, or persons having charge or control of the property located at 3200-3300 S. Susan Street (Railroad X-ing # 761672F) that the condition(s) of: RUBBISH and GARBAGE exists/ exist upon the property which is/ are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or injurious to neighboring property or the health and welfare of residents in the vicinity. The said condition(s) must abated on or before June 7, 2019. If not abated on or before said date, the City of Santa Ana may abate the condition(s) or cause it to be abated and the costs thereof will be assessed against the land and become a lien thereon. Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, California, not later than the date for abatement set forth hereinabove. Dated and Posted June 7, 2019 By Alvaro Nunez Code Enforcement Division PHONE: 714-667-2780 CODE ENFORCEMENT DIVISION I PLANNING & BUILDING AGENCY CITY OF SANTA ANA 120 CIVIC CENTER PLACE (M-19) POST OFFICE BOX 1988 1 SANTA ANA, CA. 92702 714-667-27801 www.santa-ana.orgLaLa 75B-63 75B-64 el �� I �vI N N Y 75B-65 PHOTOLOG 3200-3300 S. Susan Street (Railroad X-ing # 761672F); train tracks facing west Alvaro Nunez I Code Enforcement Manager June 7, 2019 Page I 1 75B-66 PHOTOLOG 3200-3300 S. Susan Street (Railroad X-ing 9 761672F); train tracks facing west U.P.R.R. SJS.S Mir, MP 52287 PST 767i72FI n xuss a-+ I r 111715 ;rm�t 1Y 1� Alvaro Munez I Code Enforcement Manager June 7, 2019 Page 12 75B-67 PHOTOLOG 3400 W. McArthur (Railroad X-ing # 761664J), train tracks facing northeast • I _ L I i 1 t N0 , n27ianal 6amein TRESPASSING '� ' ' ;v�� �t 1iA11G �� '..-s.l Y�F a1uF'sN' v U.P.P.R.V.. Y:UP.IP:l�YO IMF 523166 067 761.664k- axx�aicicrc ,t-gae-Ne•6�is NIM91 Alvaro Nunez I Code Enforcement Manager June 7, 2019 Page 11 75B-68 SANTA ANA MUNICIPAL CODE ARTICLE III. - GARBAGE, RUBBISH AND WEED CONTROL Sec. 16.46. - Short title. This article shall be known and may be cited as the "Garbage, Rubbish and Weed Control Ordinance" of the city. (Code 1952, § 3840; Ord, No. NS-880, § 1, 6-5-67; Ord, No. NS-1085, § 2, 10.18-71) Sec. 16-47. - Definitions. For the purpose of this article, the following terms, phrases, words and their derivations shall have the meanings given herein, unless the context Indicates that a different meaning is intended: Brush. Branches of trees sheared therefrom, a thicket of shrubs, or bushes. City finance director. The executive director of the finance and management services of the city or his or her designated representative. City public works director. The executive director of the public works agency of the city or his or her designated representative. Garbage. Accumulations of animal, fruit or vegetable matter, liquid or otherwise, that attend the preparation, use, cooking, dealing in or storing of meat, fish, fowl, fruit or vegetable. Lot. Any lot, parcel, tract or piece of land, improved or unimproved, including the sidewalk area abutting or adjoining said lot, parcel, tract or piece of land; and the parkways, or areas lying between the curbline and the street line of said adjoining or abutting lot, bounded on the sides by the prolongations in straight lines of the side lines of the lot in front of which such parkway or area exists. Noxious growth. Weeds, vines or brush which bear seeds of a wingy or downy nature, or which attain a high growth as to become a fire menace when dry, or which contain poisonous oils that become dangerous to the life and health of the community. Private premises. Any dwelling, house, building or other structure, designed or used either wholly or In part for private residential purposes, whether inhabited or temporarily or continuously uninhabited or vacant, and shall include any yard, grounds, walk, driveway, porch, steps or vestibule belonging or appurtenant to such dwelling, house, building or other structure. Public place. Any and all streets, sidewalks, boulevards, alleys or other public ways and any and all public squares, spaces, grounds and buildings. Rubbish. Scrap metals, junk, disassembled parts of automobiles or machinery, construction or demolition materials, debris, litter, paper, cardboard, metal cans, glass, cut brush, dead trees, tree limbs and similar materials. Street line. The boundary line between a public street right-of-way and an abutting lot or parcel of land, or between a private street open to public use and an abutting lot or parcel of land. (Code 1952, § 3841; Ord. No, NS-880, § 1, 6-5-67; Ord. No. NS-1085, § 2, 10-18-71; Ord. No. NS-2300, § 1, 9-3-96) Editor's note— The editors arranged the definitions alphabetically, to facilitate reference and use. Sec. 16-48. - Noxious growths, rubbish, garbage prohibited; prima facie evidence. 75B-70 SANTA ANA MUNICIPAL CODE No person owning, managing or having control or charge or occupancy of any lot or private premises, shall: (1) Allow noxious growths or growths otherwise dangerous to the life, health, comfort or convenience of the community, to grow or remain upon such lot or private premises; (2) Sow or disseminate, or allow or permit to mature, any noxious growth upon such lot or private premises; (3) Suffer or permit any weeds, grass, rank growth or brush to grow or exist in excess of six inches (6") above the grade in the area of growth; (4) Cause or permit rubbish or garbage to be placed or to exist upon such lot or private property. It is the duty of every such person to prevent such growth or existence. To establish a prima facie violation of this section, it shall not be necessary to establish any facts except that the accused person owned, managed, or had charge, control or occupancy of a lot or private premises whereon such condition existed or occurred. (Code 1952, § 3842; Ord, No. NS-880, § 1, 6-5-67; Ord. No. NS-1085, § 2, 10-18-71) Sec.16-49. - Order and notice requiring removal of noxious growths, rubbish, garbage —Time limit; posting, mailing. (a) If and when it shall appear that noxious growths, rubbish or garbage have been placed upon or in front of private property in violation of any of the provisions of this article or of any other provisions of this Code, the city public works director may; by appropriate written order, direct the removal thereof and shall cause notices to be posted upon or in front of such property to the effect that such weeds, vines, shrubs, brush, rubbish or garbage must be removed within seven (7) days from and after the date of such posting. Such notices shall be conspicuously posted on or in front of the property on or in front of which the condition exists, as follows: (1) One (1) notice shall be posted on or in front of each separately owned parcel; (2) Not more than two (2) notices shall be posted to any parcel of fifty (50) to one hundred (100) feet frontage; (3) Notices shall be placed at intervals of not more than one hundred (100) feet, if the frontage of a parcel is greater than one hundred (100) feet, with one (1) notice for each one hundred (100) feet of frontage. (b) In addition to posting such notices, the city public works director may send a similar notice to the owner of the subject property as shown upon any city record, or upon the last equalized tax roll, by depositing such notice in the United States mail; but the failure of the owner to receive such notice shall not affect the power of the city or its officers or employees to proceed as provided in this article. Such notice shall be mailed not less than twenty (20) days prior to the date set for a hearing upon objections. (Code 1952, § 3842.1; Ord, No. NS-880, § 1, 6-5-67; Ord. No. NS-1085, § 2, 10-18-71; Ord. No. NS-1476, § 1, 3-12-79; Ord. No. NS-2300, § 2, 9-3-96) Sec. 16-50. - Same —Form of notice. The headings of the notices required by section 16-49 shall be in letters approximately one inch in height. Said notices shall be in substantially the following form: "NOTICE TO CLEAN PREMISES 75B-71 SANTA ANA MUNICIPAL COPE "NOTICE IS HEREBY GIVEN to the owner, manager, occupant or persons having charge or control of the property located at (describe property, e.g., address, assessor's parcel number, physical description) that the condition(s) of (describe violation(s)) exists upon the property which is/are in violation of Article III, Chapter 16 of the Santa Ana Municipal Code, which provides for the elimination of rubbish, garbage, noxious or dangerous growths, growing upon or accumulated upon or in front of property, obstructing the use of sidewalks, parkways or streets or dangerous or Injurious to neighboring property or the health and welfare of residents in the vicinity. 'The said condition(s) must be abated on or before 19 . If not abated on or before said date, the City of Santa Ana may abate the condition or cause it to be abated and the costs thereof will be assessed against the land and become a Ilen thereon. "Any person objecting to the abatement work specified in this notice may appeal by filing a written statement of such objection, specifying the address or description of the property concerned, the reasons for objection, and the name, address, phone number (if any) and status (owner, manager, tenant, lessee, or other) of the person making the objection. All such statements must be filed with the Clerk of the Council, City Hall, 20 Civic Center Plaza, Santa Ana, California, not later than the date for abatement set forth hereinabove." (Code 1952, § 3842.2; Ord. No. NS-880, § 1, 6-6-67; Ord. No. NS-1085, § 2, 10-18-71; Ord. No. NS-1235, § 40, 12-9-74; Ord. No. NS-1476, § 2, 3-12-79) Sec. 16-51. - Hearing. If the clerk of the council receives any appeals from the notice specified in section 16-50, the clerk shall set such appeals for public hearing by the city council and shall send written notices of such public hearing to all persons filing such appeals. At the time and place stated in the notices, the city council shall hear and consider all objections to the proposed abatement work. At the conclusion of the hearing, the council shall allow or overrule any objections. (Ord. No. NS-2300, § 3, 9-3-96) Editor's note-- Prior to the reenactment of § 16-51 by Ord. No. NS-2300, Ord. No. NS-1235, § 41, enacted Dec. 9, 1974, had repealed § 16-51, which had pertained to hearings and had derived from Code 1952, § 3842.3 and Ord. No. NS-880, § 1, adopted Jime 5, 1967. Sec.16-52, - Abatement order —From council. At the conclusion of said hearing, the council may order the city public works director to abate said nuisance by entering upon private property to abate and remove the same. (Code 1952, § 3842.4; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-1235, § 42, 12-9-74; Ord. No. NS-2300, § 4, 9-3-96) Sec. 16-53. - Same —Service. The city public works director shall serve by registered or certified mail, return receipt requested, postage prepaid, a copy of said abatement order forthwith upon those persons who have filed written statements of objections. The abatement order shall specify that unless the nuisance is removed and abated within seven (7) days from the date of mailing, said officer will abate the same and will, if necessary, enter upon or into the private property of said person without further notice or liability therefor in order to abate said nuisance. 75B-72 5ANTA ANA MUNICIPAL CODE (Code 1952, § 3842.4; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-2300, § 5, 9-3-96) Sec. 16-54. - Abatement action by city. The city public works director may cause the city's nuisance abatement work force or contractor to enter upon any private property and abate any nuisance found thereon, or in front thereof, provided ten (10) days notice to abate such nuisance shall have been posted or mailed as required by this article, the time allowed by such notice shall have expired, and no person shall have filed a written statement of objections as herein provided within ten (10) days after posting or mailing; in the event objections shall have been duly filed, and overruled by the city council, the city public works director may cause the city's nuisance abatement work force or contractor to enter upon any such private property and, in accordance with the order of the city, abate the nuisance found thereon, or in front thereof. 4 (Code 1952, § 3842.6; Ord. No, NS-880, § 1, 6-5-67; Ord. No. NS-1235, § 43, 12-9-74; Ord. No. NS-2300, § 6, 9-3-96) Sec. 16-55. - Cost of abatement. (a) The city public works director shall keep a separate account of the cost of abatement in front of or on each individual lot or parcel of land where abatement work is done. He shall submit to the city manager for confirmation an itemized written report showing such cost. A copy of the report shall be posted for at least three (3) days prior to its submission to the city council on or near the council chamber door with a notice of the time of submission. At the time fixed for receiving and considering the report, the city council may hear the matter or refer it to the hearing officer under the provisions of Chapter 3 of this Code. (b) The city council may, by resolution, establish a standard administrative fee for parcels requiring nuisance abatement work by the city's nuisance abatement work force or contractor. Such fee shall be in addition to the direct cost of the abatement work and shall be in an amount reasonably determined to cover such costs as posting, inspection, contractor supervision, and the like, (c) The city council may, by resolution, also establish a standard charge for additional administrative costs for parcels requiring more than one (1) notice of abatement in any twelve-month period. (Code 1952, § 3842.7; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-1235, § 44,12-9-74; Ord. No. NS-2300, § 7, 9-3-96) State Law reference-- For authority to abate nuisances, see § 38773, Gov. Code. Sec. 16-56. - Receiving, receipting and billing for cost to city. The city finance director shall receive the amount due on the abatement cost and shall issue receipts at any time after the confirmation of the report. The city finance director may bill the owner of record directly at any time he shall desire. (Code 1952, § 3842.10; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-2300, § 8, 9-3-96) Sec. 16-57. - Special assessments —Lien. The cost of abatement in front of or upon each lot or parcel of land constitutes a special assessment against that lot or parcel. After the assessment is made and confirmed, it Is a lien on the lot or parcel. 75B-73 SANTA ANA MUNICIPAL CODE (Code 1952, § 3842.8; Ord. No. NS-880, § 1, 6-5-67) Sec. 16.58. - Same —Collection procedure. After confirmation of a report, a certified copy of the same shall be filed with the county auditor on or before August 10th of each year. The descriptions of the parcels reported shall be those used for the same parcels on the county assessor's man book for the current year. The county auditor shall enter each assessment on the county tax roll opposite the parcel of land. The amount of the assessment shall be collected at the time and in the manner of ordinary municipal taxes. If delinquent, the amount is subject to the same penalties and procedures of foreclosure and sale provided for ordinary municipal taxes. As an alternative method, the county tax collector, in his discretion, may collect the assessments without reference to the general taxes, by issuing separate bills and receipts for the assessments. Laws relating to the levy, collection, and enforcement of county taxes shall apply to such special assessment taxes. (Code 1952, § 3842.9; Ord. No. NS-880, § 1, 6-5-67) Sec. 16-59. - Same —Correction of error. (a) Any assessment erroneously made may be cancelled or reduced so as to correct any error, and the tax paid on account thereof, not including any penalties or interest, may be refunded to the person who paid the same, in accordance with the following procedure: (1) A claim of error may be filed with the clerk of the council at any time before the expiration of one year following April 10th of the tax year in which such assessment appears or would first appear on the tax bill for the affected property. Such claim shall be in writing, in such form and detail as shall be required by the clerk of the council, and shall be verified; (2) Any claim filed shall be forwarded to the city public works director for review and report to the city finance director. If the city public works director shall determine that such assessment was erroneously made, in whole or in part, the city finance director shall request the county board of supervisors to direct the county auditor -controller to correct the tax rolls as to the affected property by removing or reducing the erroneous assessment, and the direction of the city finance director shall be authority for the auditor -controller so to correct the tax rolls. If such assessment shall have been paid, the part determined to be erroneously levied shall be refunded to the person who paid the same, by the city finance director. In lieu of proof otherwise, the city finance director may presume that the persons to whom the abatement cost was assessed were the persons who paid the same; (3) Any claimant whose claim is not favorably acted upon in whole or in part within sixty (60) days after the filing of the same, or whose claim is denied, in whole or in part in writing, by the city finance director, may, within ten (10) days after such denial or after the expiration of such period, appeal such denial or failure to act favorably to the city council pursuant to Chapter 3 of the Santa Ana Municipal Code; (4) If the city council shall find the disputed assessment to be erroneous in whole or in part it may direct the city finance director to correct the assessment accordingly, to cause the tax rolls to be corrected, and to make a refund of any portion of the assessment paid, all in the manner as hereinabove provided for such corrections and refunds; (5) Not later than thirty (30) days after the correction of any assessment or refund of any monies hereinunder, except by direction of the city council, the city finance director shall transmit to the city council a report of such action, together with the report of the city public works director. (b) Whenever the tax rolls have been corrected or a refund has been made hereunder by reason of an erroneous assessment, a corrected written report of the type required by section 16-55, relating to the work for which such erroneous assessment was levied, may be prepared by the officer who 75B-74 SANTA ANA MUNICIPAL CODE prepared the original report. Such report shall show the cost of abatement in front of or on the parcel or lot where the work has been done and shall state that It is proposed to assess such cost against such lot or parcel. A copy of such corrected report shall be mailed to the owner of said lot or parcel as shown upon the current assessment roll. In all other respects, sections 16-66 through 15-58 shall apply to such corrected assessments, except that the time for doing all things herein specified shall relate from the date of confirmation of the corrected assessment. (Code 1952, § 3842.11; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-1235, § 2, 12-9-74; Ord. No. NS-2300, § 9, 9-3-96) Sec. 16-60. -Violation a public nuisance; remedies. Violation of this article is declared to be a public nuisance which may be abated as provided in part 3 of division 4 of the civil code of the state and in chapter 2 of title X of part 2 of the code of civil procedure of the state, which remedy shall be in addition to any other remedy provided in this article or by state taw, Including section 372 of the penal code of the state. (Code 1952, § 3843; Ord. No. NS-880, § 1, 6-5-67; Ord. No. NS-2300, § 10, 9-3-96) Secs. 16-61-16-109. - Reserved. 75B-75 75B-76 EXHIBIT 3 ROH — 8/20/19 RESOLUTION NO. 2019-xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONFIRMING THE COSTS AND EXPENDITURES INCURRED BY THE CITY FOR WEED, RUBBISH, AND GARBAGE ABATEMENT WITHIN UNION PACIFIC RAILROAD COMPANY RIGHT OF WAY WITHIN THE CITY; AND, MAKING, CONFIRMING, AND LEVYING ASSESSMENTS FOR SUCH COSTS 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. Accumulation of trash, debris and the general lack of property maintenance on railroad properties have become increasingly noticeable to the community and are negatively impacting the health and welfare of the community and residents of the city. To abate the issues, the Code Enforcement Division properly posted and advised the property owner, Union Pacific Railroad Company, to clean their premises at the following locations: • 1000-1100 E. Chestnut • 1200-1300 E. Edinger • 1716 S. Santa Fe • 1200-1300 E. Warner • 2500 S. Main/Goetz • 3200-3300 S. Susan Street • 3400 W. MacArthur • 2900 S. Flower • 3200 S. Bristol B. After the prescribed compliance time had elapsed and compliance had not been obtained, the Code Enforcement Division, through the City Attorney's Office, requested and obtained inspection and abatement warrants from the Orange County Superior Court enabling the City to take necessary abatement measures to address private property maintenance issues within railroad right of way. Resolution 2019-xxx Page 1 of 4 75B-77 C. On May 22nd and May 23rd, 2019, and on July 10th and July 11th, 2019, in collaboration with the City's Quality of Life Team, the inspection and abatement warrants were executed. D. Pursuant to Section 16-55 of the Santa Ana Municipal Code, the Code Enforcement Division has submitted itemized reports of the costs associated with the execution of the two (2) inspection and abatement warrants totaling $76,948.60, which includes City staff time, City equipment, and Code Enforcement Division contractor services expenditures. Copies of these reports are on file with the Clerk of the Council, attached as Exhibits 1 and 2, respectively, and incorporated by reference as though fully set forth herein. E. The City has given notice as required by law, that the 31d day of September, 2019, at the hour of 5:45 p.m., or as soon as possible thereafter, is fixed as the time, and 22 Civic Center Plaza, Santa Ana, as the place, where any and all persons interested in said report may be heard. F. The City Council of the City of Santa Ana, at said time and place, received, heard, and considered said report and all objections thereto submitted by property owners liable to be assessed for the abatement, and directed such modification of said report as it has deemed necessary. Section 2. Each and every objection to said work and the costs thereof is hereby overruled; Attachments 1 and 2 are hereby made and confirmed as an assessment against such lots or parcels, respectively. Said assessments are hereby levied, and shall constitute liens on the respective lots or parcels of real property as shown on said report until paid. Section 3. The City has provided the Union Pacific Railroad Company with invoices seeking payment of the costs associated with the abatement actions on July 16, 2019, and August 6, 2019, and hereby reserves the right to take any and all legal actions available to collect payment of any unpaid outstanding assessments, as necessary. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution 2019-xxx Page 2 of 4 75B-78 ADOPTED this 31d day of September, 2019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: gjAt-::� F�Ybn 01 Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Resolution 2019-xxx Page 3 of 4 Miguel A. Pulido Mayor ROH — 9/3/19 75B-79 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, 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 September 3, 2019. Date: Daisy Gomez Clerk of the Council City of Santa Ana Resolution 2019-xxx Page 4 of 4 75B-80 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: PUBLIC HEARING —ANNEXATION NO.2018- 01 TO ADOPT A COOPERATIVE AGREEMENT BETWEEN THE CITY AND COUNTY OF ORANGE IN AN AMOUNT OF $711,814, AUTHORIZE STAFF TO SUBMIT AN ANNEXATION APPLICATION TO THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION, APPROVING A PROPERTY TAX EXCHANGE AGREEMENT WITH THE COUNTY OF ORANGE, APPROVING GENERAL PLAN AMENDMENT NO. 2018-04 AND AMENDMENT APPLICATION NO. 2018-07, AUTHORIZING A WATER SERVICE AGREEMENT WITH THE CITY OF TUSTIN AND APPROVING A CHANGE IN WARD 3 BOUNDARIES FOR THE ANNEXATION OF A 24.78-ACRE COUNTY ISLAND AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE — CITY OF SANTA ANA APPLICANT (STRATEGIC PLAN NO. 3,2) CI MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 21d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve the CEQA determination of a Categorical Exemption (Class 19) for the proposed County island annexation. Adopt a resolution approving Annexation No. 2018-01 for a 24.78-acre County Island, detachment of the same territory from the Municipal Water District of Orange County and authorizing staff to submit a Project Application form to the Orange County Local Agency Formation Commission (OC LAFCO). 3. Authorize execution of a Cooperative Agreement between the City and the County of Orange for the acceptance of one-time funds in the amount of $711,814 and to allow the County to continue to process active development projects within the annexation area. 75C-1 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 2 4. Adopt a resolution approving a Property Tax Exchange Agreement with the County of Orange for the properties to be annexed. 5. Adopt a resolution approving General Plan Amendment No. 2018-04 to predesignate properties on the City's General Plan Land Use Map and make modifications to various elements of the General Plan. 6. Adopt an ordinance approving Amendment Application No. 2018-07 to prezone properties to be consistent with the City's zoning designations. 7. Authorize execution of a Water Service Agreement between the City of Santa Ana and the City of Tustin. 8. Adopt an ordinance approving the change in Ward 3 boundaries pursuant to City Charter Section 101.2. EXECUTIVE SUMMARY In June 2018, the City Council directed staff to initiate the process to annex a 24.78-acre County island generally located at the northeast corner of Seventeenth Street and Tustin Avenue within the City's sphere of influence and continue discussions with the County and the Local Agency Formation Commission (OC LAFCO) regarding the proposed annexation. In response, staff has been working with staff from OC LAFCO, the County of Orange and the City of Tustin on the documents needed to complete the annexation. Included with this report are several documents requiring Council approval, which include the approval of the annexation of an unincorporated County island, the submittal of an application to complete the annexation with OC LAFCO, and a water service agreement with the City of Tustin to allow Tustin to continue to provide water service within the annexation area. In addition, a Cooperative Agreement between the City and the County of Orange is also required. This agreement will allow the City to accept a one-time payment from the County for public improvements, will allow a property tax sharing agreement for the properties to be annexed to the City, and will allow the County to complete the development process for two developments currently under review by the County. Other actions needed by the Council include a general plan amendment and an amendment application to prezone and pre -designate the general plan designation for the parcels located within the proposed annexation area as well as various sections of the General Plan that need to be amended to accurately reflect the annexation area. These items were presented to the Planning Commission and recommended for approval in December 2018. Finally, the annexation will result in a modification to the City's boundary lines. To ensure the Ward boundaries are consistent with the City boundaries, a change in the Ward 3 boundaries needs to be approved. 75C-2 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 3 DISCUSSION In June 2018, the City Council directed staff to initiate the annexation process for the 24.78-acre County island at the northeast comer of Seventeenth Street and Tustin Avenue within the City's sphere of influence. Parcels within the annexation area include 49 single-family residential parcels, three commercial parcels, two multi -family residential parcels and three vacant parcels of land. During the annexation process, several actions were identified that need City Council action. These actions include approval of a Cooperative Agreement with the County of Orange, approval to submit the annexation application to OC LAFCO, approval of a general plan amendment to redesignate the properties to be consistent with the City's General Plan, an amendment application to rezone the properties to be consistent with the city's Zoning Ordinance, and approval of a Water Service Agreement with the City of Tustin. These actions are discussed in more detail below. Staff is recommending that the City Council approve the following actions needed for the annexation. Cooperative Agreement The annexation process requires the City and County of Orange to enter into a Cooperative Agreement. The Cooperative Agreement will encompass three elements: 1) recognize the property tax transfer that will need to occur once the annexation area becomes part of the City; 2) document the one-time payment of $711,814 from the County to the City for Public Works Agency related improvements and maintenance projects that are needed within the County island boundaries to bring this area into compliance with City standard; and, 3) allows the County to complete the development process for the two projects currently under review by the County that are located within the annexation boundaries. First, the Cooperative Agreement reinforces the transfer of property taxes that will occur once the properties are annexed to the City. For this specific proposal, the City and County will rely on a Master Property Tax Transfer Agreement that governs annexation areas. This document, which was approved by the Board of Supervisors and City Council on October 28, 1980, identifies the allocation of property tax revenues between the jurisdictions. This agreement states that the County will receive 41.4715 percent and the City shall receive 58.5285 percent of the County's share of the one percent basic levy of property tax from the annexation, which is higher than the approximately 18 percent County/City allocation rate. Based on a fiscal analysis prepared by AECOM dated May 15, 2019 for the annexation, it is estimated that the City will receive roughly $92,000 annually in property tax and property tax in lieu of vehicle license fee revenue once the properties are annexed to the City. Second, several public improvement features (i.e. streets, sidewalks, street trees, lighting etc.) within the annexation area were built to County standards, which slightly differ from the City's standards. In order to compensate the City for the cost of converting these features to City standards, the County has agreed to a one-time payment to the City in the amount of $711,814. This will allow the Public Works Agency the ability to make enhancements that will bring the annexation area closer into compliance with City standards. 75C-3 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 4 The Cooperative Agreement will also acknowledge the County's processing of two development projects within the County Island. For the past two years, Chick-Fil-A and In-N-Out Burgers have been processing separate projects with the County, with both projects now ready to enter building plan check. However, both have elected to delay their plan check submittals until the annexation is processed, which will give the developers assurances that their projects will obtain sewer service, which can only be provided once the property is annexed to the City. Approval of this agreement will allow the projects to complete the development process with the County, with both projects reverting to Santa Ana once certificate of occupancies are issued, which is anticipated to occur in approximately 12-18 months. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange is processing a negative declaration (ND) for the two developments. The ND will identify any potential impacts to the environment and identify mitigation measures to reduce or eliminate the impacts. The lead agency for the ND is the County of Orange. General Plan Amendment and Amendment Application Section 41-188 of the Santa Ana Municipal Code (SAMC) allows the City to prezone land that is intended to be annexed to the City. Further, Chapter 27 of the SAMC identifies the process for general plan amendments. In the event the City did not predesignate the annexation area, the SAMC states that these properties would be designated as General Agriculture (A-1). In order to ensure consistency between the zoning and general plan land use designations within the annexation area, and avoid making each property within the annexation nonconforming, staff brought forward a zone change and general plan amendment actions to the Planning Commission. On December 10, 2018, the proposed actions were presented to the Planning Commission for consideration. At this hearing, staff provided background on the proposed actions as well as provided information on the fiscal impact of the proposed annexation. At the conclusion of the meeting, the Planning Commission unanimously recommended that the City Council move forward with the annexation and recommended that the City Council approve the general plan amendment and amendment application. The Commission's approval will establish the future General Plan land use and zoning designations for the properties once the annexation becomes effective. Further, the zoning and general plan amendment actions will be consistent with the existing land uses of the parcels, minimizing the potential for creating non -conforming parcels. Water Service Agreement The City of Tustin currently maintains and operates water lines and facilities that provide potable water service to all developed parcels within the unincorporated island. The City of Santa Ana and the City of Tustin will enter into a water agreement that will allow Tustin to provide water services to the developed and undeveloped parcels located within the unincorporated island upon annexation. Currently, Santa Ana does not have any water infrastructure within the unincorporated island. The agreement will allow Tustin to provide potable water service within the annexation area boundaries until such time Santa Ana installs the infrastructure to provide potable water service. As of this date, it is uncertain when Santa Ana will be able to provide water service to the County island. 75C-4 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 5 Project Application Form Submittal to OC LAFCO Upon approval of the annexation by the City Council, staff will immediately begin the annexation process with the Orange County Local Agency Formation Commission (OC LAFCO). To initiate this process, staff will formally submit a Project Application Form to OC LAFCO. Based on discussions with OC LAFCO staff, the annexation process is expected to take several months to complete. It is anticipated that the County island will become part of Santa Ana by early 2020. Change in Ward Boundaries The proposed annexation will result in a change to the City's boundary lines, expanding the City by an additional 24.78-acres. In conjunction, the annexation will also result in a need to change the ward boundaries for Ward 3 to be consistent with the new City boundaries. City Charter Section 101.2 allows ward boundaries to be modified under certain conditions, including as part of an annexation action such as the one proposed. The change in ward boundaries is a two phase process, with the Council completing the first phase at the May 7, 2019 Council meeting. As required by Charter Section 101.4, the City Council approved a resolution declaring a Notice of Intent to change the boundaries of Ward 3. The proposed action is the second phase of the ward change, with this proposal formally changing the ward boundaries once the annexation is completed. CONCLUSION The proposed action items are necessary for the City of Santa Ana to complete the annexation of the 24.78-acre County Island. Based upon staffs analysis, the City's support of the Orange County Annexation Island Program, and the prior actions of the City Council and Planning Commission, staff recommends that the City Council approve the CEQA determination for the annexation and adopt resolutions approving Annexation No. 2018-01, the Property Tax Exchange Agreement with the County of Orange, and General Plan Amendment No. 2018-04. In addition, staff recommends that the Council adopt ordinances approving Amendment Application No. 2018-07 and the change to the boundaries of Ward 3. Further, staff recommends that the Council authorize the execution of a Cooperative Agreement between the City and the County of Orange for the acceptance of one-time funds in the amount of $711,841, to allow the County to complete the processing of development projects within the annexation area, and authorize staff to submit a Project Application form to the Orange County Local Agency Formation Commission (OC LAFCO). Finally, staff recommends that the Council authorize the execution of a Water Service Agreement with the City of Tustin. 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). 75C-5 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 6 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act (CEQA), the proposed annexation of an existing County island is exempt from further review per CEQA Guidelines Section 15319 (Annexation of Existing Facilities and Lots for Exempt Facilities). It has been determined that this Class 19 exemption is applicable to the proposed annexation as the project involves the annexation to the City areas containing existing private structures developed to the density allowed by the current zoning and prezoning of both the City and County, and the extension of utility services to the existing facilities have a capacity to serve only the existing facilities. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange completed a negative declaration (ND) for the two developments. The ND identified any potential impacts to the environment as well as mitigation measures needed to reduce or eliminate the impacts. The City has reviewed this document and is in agreement with its findings and conclusions. The lead agency for the ND is the County of Orange. FISCAL IMPACT As part of the annexation efforts, the City hired AECOM to prepare a Fiscal Assessment of the proposed annexation. Based on the final report dated May 15, 2019, the conclusions note that the annexation of the existing land uses will result in a nominal net fiscal surplus to the City of approximately $35,000. Further, the study estimates that the existing land uses with the two proposed restaurant developments at the northeast corner of Seventeenth Street and Tustin Avenue will result in a positive net fiscal impact of $95,000 to $129,000, which will not be realized until the restaurant projects are completed and operational in approximately 18-24 months. The majority of the revenue increase will result from the sales tax generated from the restaurants, which is anticipated to be at least $64,000 per year (Exhibit H). inh Thai �Q T Executive Director Planning and Building Agency VF:Ia &RFCA\201MAnnexation No. 2018-01 K `-- Steven Mendoza Executive Director Community Development Agency Exhibits: 1. Resolution approving Annexation No. 2018-01 2. Cooperative Agreement with the County of Orange 3. Resolution approving a Property Tax Exchange Agreement with County of Orange 4. Resolution approving General Plan Amendment No. 2018-04 5. Ordinance approving Amendment Application No. 2018-07 6. Water Service Agreement with the City of Tustin 7. Ordinance approving the change in Ward 3 boundaries 8. Fiscal Assessment prepared by AECOM 75C-6 LS 9.3.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING ANNEXATION NO. 2018-01, THE DETACHMENT FROM THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY, AND AUTHORIZING THE SUBMITTAL OF A PROJECT APPLICATION FORM TO THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION FOR A 24.78-ACRE COUNTY ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana (City) desires to initiate proceedings pursuant to the Cortese -Knox -Hertzberg Local Reorganization Act of 2000, Division 3, commencing with Section 56000 of the Government Code, for the annexation of a 24.78-acre unincorporated area of land that is currently located within the County of Orange. B. The City will file an application with the Orange County Local Agency Formation Commission (OC LAFCO) to annex the unincorporated territory generally located at the northeast corner of Seventeenth Street and Tustin Avenue as shown on Exhibit 1. C. The proposed annexation area is within the City's Sphere of Influence and will be included in the City's General Plan per General Plan Amendment No. 2018-04 containing land use designations of Low Density Residential, Medium Density Residential, and General Commercial. Further, the properties will have zoning designations of Single -Family Residential, Two - Family Residential, and Community Commercial. D. On June 5, 2018, the City Council of the City of Santa Ana held a duly noticed public hearing to consider the annexation of the 24.78-acre County island generally located at the northeast corner of Seventeenth Street and Tustin Avenue. At this hearing, the Council directed staff to initiate the process to annex the County island and continue discussions with the County and the LAFCO regarding the annexation. EXHIBIT 1 Resolution No. 2019-xx Page 1 of 6 75C-7 E. On September 14, 2018, the City, County of Orange, and the Orange County Local Agency Formation Commission held a duly noticed community workshop regarding the proposed annexation to obtain community input. Major questions of the citizens in attendance included how the annexation will affect properties, the delivery of services, and options to annexation. LAFCO and City staff addressed key questions about the annexation process and the impact of delivery of municipal services. Public notices were mailed to property owners and tenants within the annexation area in October and December 2018 notifying them of the actions to be taken by the Planning Commission regarding the pre -zoning and pre-dogignation of the properties within the annexation area. On December10, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt a resolution approving General Plan Amendment No. 2018-04 and Amendment Application No. 2018-07, G. On September 3, 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 Annexation No. 2018-01 for the Seventeenth and Tustin annexation project, 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. H. Pursuant to the California Environmental Quality Act (Pub. Res. Code sec. 21000 et seq.; "CEQA"), and the State CEQA Guidelines, the City has determined that a Categorical Exemption will be filed for the proposed project. As a reviewing agency, the City has reviewed the negative declaration that has been prepared by the County of Orange for the proposed commercial developments on the subject site. Based on its review, the City concurs with the findings of the negative declaration. I. The annexation proposal is made pursuant to the Cortese -Knox -Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the Government Code of the State of California. J. The reason for the proposed annexation is to provide full municipal services to unincorporated areas that are remote from County service facilities and thereby increase the economy and efficiency of public services. K. The City Council has weighed and balanced the annexation proposal and has determined that based upon this balancing that Annexation No. 2018-01 is consistent with the purpose of the General Plan and the City's Strategic Plan. Resolution No. 2019-xx Page 2 of 6 75C-8 L. The City Council hereby authorizes staff to submit the required Project Application Form and all necessary documents to OC LAFCO to initiate the annexation process with that agency as shown on Exhibit 2. Section 2. CEQA Compliance. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. More specifically, the proposed annexation will consist of the 24.78-acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, the Class-19 exemption is applicable 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 CEQA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 3. Approvals. The City Council of the City of Santa Ana after conducting the public hearing hereby approves Annexation No. 2018-01 as shown on Exhibit 1 and incorporated herein by this reference 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 Request for Council Action dated September 3, 2019 and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. This Resolution shall not be effective unless and until all related ordinances Nos. NS- (AA No. 2018-07 and change in ward boundaries) become effective, If said ordinances are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this resolution shall be null and void and have no further force and effect. Section 5. This Resolution shall not be effective unless and until the Orange County Local Agency Formation Commission (LAFCO) passes a resolution adopting the annexation of the County island. If the resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does Resolution No. 2019-xx Page 3 of 6 75C-9 not go into effect for any reason, then this Resolution shall be null and void and have no further force and effect. ADOPTED this _ day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, 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: Resolution No. 2019-xx Page 4 of 6 Clerk of the Council City of Santa Ana 75C-10 Exhibit 1: Map of Annexation Area Resolution No. 2019-xx Page 5 of 6 75C-11 F ppp Santa Ana Li A J7 V - Yv Tustin EXI?SC-12 Resolution No. 2019-xx Page 6 of 6 Exhibit 2: LAFCO Project Application Form 75C-13 ORANGE COUNTY LAFCO Project Application Form Page I of 9 PROJECT - . APPLICATION w FORM OF THE cowAmw�. COMMISSION Orange County Local Agency Formation Commission 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 ` (714)640-5100 (714) 640-6139 (FAX) This application form is used to initiate the application process to the Orange County Local Agency Formation Commission (LAFCO) for a city or district annexation, reorganization, detachment, or a sphere of influence amendment. LAFCO staff looks forward to assisting you with your project. In addition to the information that you will provide us on this form, LAFCO staff is required to analyze additional data regarding your proposal from our Geographic Information System (GIS) and in-house data base, including, but not limited to: affected agencies, interested agencies, spheres of influence, school districts, land uselzoning, acres of prime agricultural land, and number of dwelling units. A Plan of Services may also be required demonstrating how municipal services will be provided to the affected territory. Please fill out this application as completely as possible. If you need assistance, please do not hesitate to contact a LAFCO staff member for guidance. If a question does not apply to your proposal, indicate "N/A". Orange County LAFCO is a "paperless" office. It is important that you list all email addresses where indicated on the application. Correspondence, staff reports, resolutions and other LAFCO forms and mailings, whenever possible, will be distributed electronically. EXHIBIT 2 (The information contained in this application ma.y be mdVeet to diselrerure under the California Public Retards Act Government Code Section 6250 et seq.) 75C-14 ORANGE COUNTY LAFCO ProjeaiApplication Foruc Page 2 of 9 APPLICATION FOR: (check all that apply) ❑ Annexation to: CITY OF SANTA ANA ❑ Detachment from: Municipal Water District of Oranae County ❑ Reorganization (2 or more changes of organization) of: ❑ Other (explain): ❑ *Sphere of Influence Amendment for: *If requesting a sphere of influence amendment "only",please answer the following two questions: 1. Why is a sphere of influence amendment needed? 2. How would a sphere of influence affect the present and future need for services in the project area? 1. What changes of organization are included? What agencies are Involved? The City of Santa Ana is requesting that the Orange County Local Agency Formation Commission (LAFCO) approve the annexation of a 24.78-acre County island from the County of Orange to tthe City of Santa Ana and detachment of the sub act territory from the Municipal Water District of Orange. Other approvals include a Property �ax Exchange Agreement, Annexation Agreement between the City and County of Orange, and cooperative agreement, water agreement. 2. Explain the purpose of each request of change of organization. In June 2018, the Santa Ana City Council directed staff to work with the County of Orangge and LAFCO on the annexation of the 24.78-acre County island due to its location within the Ry's sphere of influence. Further, the City expressed an interest in the development of the vacant pparcels of land at the northeast corner of Seventeenth Street and Tustin Avenue, which cannot be developed until the City provides sewer service to the parcels. Currently the water provider is the City of Tustin a member of the Municipal Water District of Orange County (MW DOC). The City of Santa Ana is an original member agency of Metropolitan Water District of Southern California (Metropolitan); therefore, the Seventeenth and Tustin Island will be detached from MWDOC and become a part of Metropolitan. (The h Jnonation conlabned in This application may be subject to disclosure under the Cabfbnda Public Recods Act Government Corte Section 6250 et seq.) 75C-15 ORANGE COUNTY LAFCO Project Application Jon Page 3 of 9 3. Explain how the proposal provides more logical boundaries and/or improves the provision of service. The County island is surrounded on three sides by the City of Santa Ana and on the fourth by the Newport -Costa Mesa (SR-55) Freeway, is within the City's sphere of influence, and is the last County Island surroundina Santa Ana. Annexation from the County to the City will allow the City to provide local services to the properties within the County island. An Out of Area water agreement will be completed with the City of Tustin to allow Tustin to continue to provide water service to the area. 4. Does this proposal have 100%consent of all property owners? (If so, please complete Attachment 1.) No. The City has experienced opposition from approximately 15-20 residents at a community meeting held in September 2018 from 3-5 residents at hearings held by the Planning Commission in October and December 2018. WHO INITIATED THIS PROPOSAL? Generally, LAFCO proposals maybe initiated by a resolution of an affected agency, a city council, special district or by the Board of Supervisors. In addition, a proposal may be initiated by a petition of the affected area's registered voters or landowners. Attach one of the following to this application form: ❑ Agency Resolution ❑ Landowner Petition ❑ Registered Voter Petition The pproperties are located at the followingg addresses: 13862 to 13972 North Tustin Avenue, 13862-13922 North Ponderosa Street, 2301 and 17221 East Seventeenth Street, 13741-13971 North Deodar Street, 17152-17182 East Medford Street, and 13751-13841 North Pasadena Street. MAP AND LEGAL DESCRIPTION: A map and legal description of the proposal, even if prepared by a private engineering firm, must be submitted directly to the Orange County Surveyor for review and final approval. An application can be filed with LAFCO without a map and legal, but a proposal cannot be scheduled for LAFCO hearing prior to receipt of a County Surveyor -approved map and legal description. You may contact the County Surveyor at the Resources and Development Management Department, Geomatics/Land Information Systems Division, at (714) 834-4378. Additionally, the map and legal description must meet the State Board of Equalization's requirements. The BOE's "Change of Jurisdictional Boundary" requirements are available for download at htto://www.boe.ca.goy/oroptaxes/sprdcont.htm. Please note, the BOErequires an additional vicinity map that shows the project area in relation to a larger geographic area. (The information contained in this application may be subJett la disclosure under the Gel jornia Public Records Act Government Code Section 62M el sect j 75C-16 ORANGE COUNTY LAFCO Project Application Form Page 4 of 9 A map and legal description has been: ❑ Certified by the County Surveyor and is attached to this application. ❑ Submitted for review to the County Surveyor. ❑ Other (please explain) N/A. The City is processing a small island annexation request. Orange County LAFCO requires applicants to report all expenditures for political purposes related to an application and proceedings to be reported to the Commission's Executive Officer in compliance with Government Code Sections 56700.1 and 57009. The following is attached to this application form: ❑ LAFCO Disclosure Form (please complete LAFCO Disclosure of Political Expenditures, Attachment 3); copy of Financial reports and disclosures submitted to FPPC (please attach) ❑ Please check here if you have no related financial reports or disclosures. LAFCO policy requires that all applicants sign an indemnification agreement (see Attachment 2) which indemnifies LAFCO employees, agents and attorneys in the event of litigation is filed concerning the approval of an application. The following is included with this application form: ❑ Signed Indemnification Agreement FILING FEES: Applicants are required to pay fees in accordance with OC LAFCO's adopted fee schedule (see Attachment 4) to cover the administrative and staff costs required to evaluate proposals for hearing. Checks must be made payable to: "Orange County LAFCO': The following is included with this application form: ❑ Check for Filing Fees ❑ Other (explain why Filing Fees not included): As the County island is less than 150 acres in size, the OC LAFCO Commission will waive the application fees. ('rha w1brmation contained !n this application may be subject to diselosurc under lte California Public Records Act GovernownI Corse Section 6250 et seq.) ._ 75C-17 ORANGE COUNTY LAFCO Project Application Fornt Page 5 of 9 1 certify, under penalty of perjury by the laws of the State of California, that the Information contained in this application is true and correct. I acknowledge and agree that the Orange County Local Agency Formation Commission is relying on the accuracy of the information provided and my representations in order to process this application proposal. Signature: Name: Title: Date: (The it formation contained in this applicatioa may ba.mbjeci to disclosure under the California Public Records Act Govenonent Cade Section 6250 et seq.) — 75C-18 ORANGE COUNTY LAFCO Project Application Porut Page 6 q/'9 Property Owner Consent Form (All legal owners must sign a consent form or submit a letter of signed consent.) I, , consent to the annexation/reorganization of my property located at (or Assessor Parcel Numbers ) to the [agency(ies)]. Signature: Date: Address: City, State, Zip: (7he iglbnnadon contained in this application may be subject to disclosure ander the California Public Records Act Governmew Code Section 6250 et seq) 75C-19 ORANGE COUNTY LAFCO ProJectApplication Forst Page 7 of 9 indemnification Agreement As part of this application, applicant and real party in interest, if different, agree to defend, indemnify, hold harmless, and lease the Orange County Local Agency Formation Commission, its agents, officers, attorneys, and employees from any claim, action, or proceeding brought against any of them, the purpose of which is to attack, set aside, void, or annul the approval of this application or adoption of the environmental document which accompanies it. This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorney fees, or expert witness fees that may be asserted by any person or entity, including the applicant, arising out of or in connection with the approval of this application, whether or not there is concurrent passive or active negligence on the part of the Orange County Local Agency Formation Commission, its agents, officers, attorneys, or employees. Executed at , California on the day of_, 2_ APPLICANT 0 Title: Mailing Address: REAL PARTY IN INTEREST (if different from Applicant) 0 Title: Mailing Address: (The it frrnmlion conlained in this application mm+be .subject to disclosure taider the Calij6nfia Public Records Act Govenonclo Code Section d?SO er seq.) 75C-20 ORANGE COUNTY LAFCO Project Application Forin Page 8 of 9 AIMP- MENT 3 LAFCO Disclosure of Political Expenditures Effective January 1, 2008, political expenditures related to a proposal for a change of organization or reorganization that will be or has been submitted to LAFCO are subject to the reporting and disclosure requirements of the Political Reform Act of 1974 and the Cortese -Knox -Hertzberg Act of 2000. Please carefully read tke jollmvinx htfi�ritiatlaii to detennlne if reporting and disclosure provisions apply to yoft. E4 Any person or combination of persons who, for political purposes, directly or indirectly contributes $1,000 or more, or expends $1,000 or more in support of, or in opposition to a proposal for a change of organization or reorganization that will be submitted to the Commission, shall disclose and report the contribution to the Commission pursuant to the requirements of the Political Reform Act of 1974 (Government Code Section 81000 et seq.) as provided for local initiative measures, and Section 56700.1 of the Cortese -Knox -Hertzberg Act of 2000. 2; Pursuant to Government Code Section 57009, any person or combination of persons who directly or indirectly contributes $1,000 or more, or expends $1,000 or more in support of, or in opposition to, the conducting authority proceedings for a change of organization or reorganization, must comply with the disclosure requirements of the Political Reform Act of 1974, (Government Code section 81000 et seq.). Applicable reports must be filedwith the Secretary of the State and the appropriate city or county clerk. Copies of the report must also be filed with the Orange County Executive Officer, Evaluation Checklist for Disclosure of Political Expenditures The following checklist is provided to assist you in determining if the requirements of Government Code Sections 81000 et seq. apply to you. For further assistance, contact the Fair Political Practices Commission at 428 J Street, Suite 450, Sacramento, CA 95814, (866) 275-3772 or at http://wwuv.f 1. Have you directly or indirectly made a contribution or expenditure of $1,000 or more related to the support or opposition of a proposal that has been or will be submitted to LAFCO? ❑ Yes ❑ No Date of contribution Amount$ Name/Rct.NooPLAFCOProposal Date proposal was submitted to LAFCO 2. Have you, in combination with other persoa(s), directly or indirectly contributed or expended $1,000 or more related to the support or opposition of a proposal that has been or will be submitted to LAFCO? ❑ Yes ❑ No Date of contribution Amount $__Name/ Ref. No of LAFC0 Proposal Date proposal was submitted to LAFCO 3. If you filed a report in accordance with FPPC requirements, has a copy of the report been filed with Orange County LAFCO? ❑ Yes ❑ No (TIte it fonnafion container/ Lt Otis applica/ion may be svrbfect to disc(ostwe ender the Cnlrfgrnia Public. Records'4a Covernntew Code Section 6250 et sey.) _ 75C-21 ORANGE COUNTY LAFCO ProjectApplicalion Forin Page 9 of 9 F-111-TWHI17571 ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION SCHEDULE OF FILING AND PROCESSING FEES Effective 7/1/2018 FEE SCHEDULE OVERVIEW In accordance with Government Code Section 56383, the Commission may establish a schedule of fees and a schedule of service charges for Local Agency Formation Commission (LAFCO) proceedings. The submission of an application to the Orange County (LAFCO) is not officially accepted for processing until the filing fee deposits have been received by the agency. The fees associated with an application or petition are calculated on a time and materials schedule as detailed in the Fee Schedule. PROVISIONS Additional Deposits: a. The Executive Officer may require an additional deposit from applicants to cover actual costs for review and processing of any application if the Executive Officer determines the project is extraordinary in scope. For example, the Executive Officer may determine that the processing of the proposal will require advice and counsel from LAFCO's General Counsel beyond routine review of the Executive Officer's report, Commission resolutions, and agenda materials. Further, LAFCO reserves the right to require reimbursement for additional expenses not listed in the fee schedule but incurred as a result of processing an application. b. If the actual charges exceed the amount of the deposit, the applicant or petitioner shall be notified and shall pay the excess within 15 days of receipt of a statement from LAFCO. Failure to pay may be cause for delay and/or denial of the application/petition, and no proceeding or application shall be completed until all fees due have been paid in full. 2. Indemnification Agreement Requirement As a condition of approval of any change of organization or reorganization, out -of - agency service agreement, sphere of influence or municipal service review by LAFCO, the applicant(s) and real party(ies) in interest are required to defend, indenmify, hold harmless, and release LAFCO and its agents, officers, attorneys, and employees from any claim, action, or proceeding against LAFCO, and its agents, officers, attorneys, and employees to attack, set aside, void, or annul the approval of LAFCO concerning the proposal or any action relating to, or arising out of, such approval. In accordance with the Commission's Policy for Indemnification of LAFCO by Applicants (adopted March 8, 2000), the applicant(s) and real party (ies) in interest are required to submit a signed indemnification agreement as part of the application. (The infnnration contained br this application may be subject to disclosure under the Cad foram Public Records Act GovernnvenI Carle Section 6250 et set.) 75C-22 COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE COUNTY OF ORANGE FOR THE REORGANIZATION OF THE 17TH AND TUSTIN UNINCORPORATED ISLAND TO THE CITY OF SANTA ANA AND MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (RO19-07) THIS COOPERATIVE AGREEMENT ("Agreement"), dated September 3, 2019, between the CITY OF SANTA ANA ("CITY"), a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California, and the COUNTY OF ORANGE ("COUNTY"), a political subdivision of the State of California, (collectively referred to as the "PARTIES" herein) is based on the following: RECITALS A. The City is in the process of annexing an unincorporated County island consisting of approximately 25 acres and referred to as the 17th and Tustin Unincorporated Island ("Annexation Area") and detachment of the Annexation Area from the Municipal Water District of Orange County. The Annexation Area is described in Exhibit 1 and depicted in Exhibit 2. B. The Annexation Area more specifically includes 57 parcels in the COUNTY bearing Assessor's Parcel Numbers ("APNs") 396-303-01 to 396-303-28, 396-304-01 to 396-304-11, 396-312-13 to 396-312-15, 396-313-01 to 396-313-03, 396.313-06 to 396- 313-11, and 396-314-01 to 396-314-06, as depicted on Exhibit 3. C. Among the individual parcels in the Annexation Area, the John C. Hall Trust UAD is the fee title holder of three parcels with APN Nos. 396-312-13 to 396-312-15, which parcels are currently under COUNTY review, application number PA160055, for discretionary permits for development. There may be additional ministerial permit applications to be submitted to the County, and County shall continue to retain all planning, building, safety, and Inspection authority until the point of occupancy (collectively the discretionary and ministerial permits are the "Development Project'). Page 1 of 9 75C-23 D. The CITY and COUNTY are public entities possessing the common power to conduct and evaluate applications for discretionary and ministerial permits for development, including, but not limited to, subdivision maps, conditional use permits, grading permits and building permits, and approvals related to the implementation, planning, and development of real property ("Development Approvals"), E. The CITY intends, by way of this Agreement and pursuant to California Government Code section 51300 at seq. to contract with the COUNTY for the performance of all Development Approvals for the Development Project. Subject to this Agreement, and as limited to the Development Project alone, the COUNTY will assume the authority for the Development Approvals. F. In the event of a "jurisdictional change" as defined in California Revenue and Taxation Code section 99, prior to the effective date of any jurisdictional change, the affected agencies of such change shall negotiate the amount of property tax revenues to be exchanged. G. The Parties have met and negotiated both a property tax exchange and other consideration, all of which is conditional upon the CITY'S annexation of the Annexation Area becoming final and effective. AGREEMENT NOW, THEREFORE, based on the foregoing and in consideration of the Parties' mutual agreements and promises hereinafter set forth, the sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. CITY'S ANNEXATION APPLICATION Within 90 days of the execution of this Agreement, the CITY will file an application for and diligently pursue annexation of the Annexation Area with the Orange County Local Agency Formation Commission (OCLAFCO). Page 2 of 9 75C-24 2. PROPERTY TAX EXCHANGE Upon annexation of the Annexation Area and assumption of services by the CITY becoming final and complete, the COUNTY and CITY agree to an exchange of property taxes generated within the Annexation Area as follows: a. The COUNTY shall receive 41.4715 percent and the CITY shall receive 58.5285 percent of the COUNTY's share of the 1 percent basic levy of property tax from the annexation, with the re -allocation taking effect after OCLAFCO approval of the annexation. These proportional shares shall remain as the allocation of tax revenues between the CITY and the COUNTY for the annexations for all future years unless the CITY and COUNTY agree by written Resolution to adjust the allocation proportions. b. The CITY shall receive a one-time compensation of $711,814 to construct betterments In the Annexation Area, including Street Improvements ($397,314), Storm Drain Improvements ($187,500), and General Construction Costs ($127,000). C. As the CITY contracts with the Orange County Fire Authority, the Structural Fire Fund shall remain unchanged. For the Development Project alone, the CITY hereby conveys to the COUNTY authority and responsibility for the Development Approvals, as defined above and pursuant to Government Code section 51300, et seq. County shall have such authority and responsibility for the Development Project through issuance of the Certificates of Occupancy. The County shall exercise the Development Approvals in substantial compliance with: (1) conditions imposed by any State or local agency; and (11) legally enforceable restrictions and limitations on development of the Property. 4. DISSOLUTION OF ANNEXATION AREA Except with respect to matters addressed in Sections 5 and 6 herein, the COUNTY shall dissolve the Annexation Area, with the CITY to assume the services for the area, and the CITY to receive a transfer of the one-time compensation amount specified in paragraph 2.b herein at the time of dissolution. Page 3 of 9 75C-25 5. OPEN CODE ENFORCEMENT CASES The COUNTY commits to making its best effort to close open code enforcement and building safety/planning cases prior to the date of annexation, with the understanding that CITY agrees that COUNTY shall be entitled to charge, receive and retain all code enforcement fine amounts, which shall be the COUNTY's sole consideration for all services performed in closing the open cases. For code enforcement cases that still remain open on the date of annexation, the COUNTY will administer the cases to completion, using COUNTY ordinances and code enforcement procedures. 6. PERMITS AND PLAN CHECKS CITY agrees that COUNTY shall be entitled to charge, receive and retain all customary fees for the Development Project through issuance of the Certificates of Occupancy, including planning application, building permit fees, grading fees, and inspection fees. The fees shall be the COUNTY's sole consideration for all services performed in closing the Development Project. 7. ANNEXATION FEES CITY shall request that OCLAFCO allow the annexation to be processed under the "Small Island Annexation Program' so that OCLAFCO fees and map and legal fees are waived for the CITY. COUNTY and CITY agree to execute, in recordable form, such documents as may be required to complete the annexation. In addition, if any transfer of ownership of real property that would not automatically result from the annexation is necessary to carry out the objectives of this Agreement, the COUNTY will execute, in recordable form, such deeds or other documents as may be required to accomplish those objectives. Page 4 of 9 75C-26 9. TERM OF AGREEMENT This Agreement shall commence upon the execution of all necessary signatures, and except for the authority granted to COUNTY for the Development Approvals, this Agreement shall continue in full force and effect with respect to the Property until annexation of the Property by the City has been completed to the satisfaction of both parties. 10. ENTIRE AGREEMENT This Agreement sets forth and contains the entire understanding and agreement of the Parties, and all oral or written representations, understandings or agreements are expressly stated in this Agreement. No testimony or evidence of any such representations, understandings, or covenants shall be admissible in any proceeding or any kind or nature to interpret or determine the terms or conditions of this Agreement. 11. SEVERABILITY If any term, provision, covenant, or condition of this Agreement is ruled invalid, void, or unenforceable by a court of competent jurisdiction, this Agreement shall nonetheless remain in full force and effect as to all remaining terms, provisions, covenants, and conditions. • r s This Agreement and any related dispute shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed according to its plain language and fair and common meaning to achieve the objectives and purposes of the Parties. 13. INDEMNIFICATION Each party agrees to indemnify, defend with counsel approved in writing by the other party, and hold the other party, and their officials, officers, employees and agents free and harmless from any claim, loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any negligent act, omission or willful misconduct of the agreeing party, their respective officers, employees Page 5 of 9 75C-27 or agents, arising out of or in connection with the execution or performance of this Agreement, including without limitation the payment of attorney fees. 14. SECTION HEADINGS All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 15. WAIVER The failure of a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure of a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of that Party's right to demand and require, at any time, the other Party's strict compliance with the terms of this Agreement 16, NO THIRD PARTY BENEFICIARIES The Parties expressly acknowledge and agree that they do not intend, by their execution of this Agreement, to benefit any person or entities not signatory to this Agreement. No person or entity not a signatory to this Agreement will have any rights or causes of action against the CITY or COUNTY, or any combination thereof, arising out of or due to CITY'S or COUNTY'S entry into this Agreement. 17. 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. 18. COUNTERPARTS This Agreement may be executed by the parties and counterparts, which counterparts shall be construed together and have the same effect as if all the parties had executed the same instrument. Page 6 of 9 75C-28 19. JURISDICTION AND VENUE Any action at law or in equity arising under this Agreement or brought by any Partyforthe purpose of enforcing, construing, ordetermining the validityof any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California. The Parties waive all provisions of law providing for the filing, removal or change or venue to any other court. 20. FURTHER ACTIONS AND INSTRUMENTS Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated by this Agreement to achieve the objectives 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 instruments and writing. The Parties shall also take any action that may be reasonably necessary under the terms of this Agreement to carry out the intent and to achieve the objectives of this Agreement 21. AMENDMENTS This Agreement may be amended only by written consent of the parties specifically approving the amendment. The Parties shall cooperate in good faith with respect to any amendment proposed in order to clarify that intent and application of this Agreement. 22. AUTHORITY TO EXECUTE Any person or persons executing this Agreement on behalf of the City and County warrants and represents that he or she has the authority to execute this Agreement on behalf of his or her agency and to bind that Agency to the performance of its obligations pursuant to this Agreement. 23. NOTICE All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on Page 7 of 9 75C-29 the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows. All notices, demands, requests or approvals to CITY shall be addressed to: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 90702 Attn: Clerk of the Council All notices, demands, requests or approvals to COUNTY shall be addressed to: Robin Stieler, Clerk of the Board County of Orange 333 W. Santa Ana Blvd Santa Ana, CA 92701 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates set forth below: CITY OF SANTA ANA M Date: ATTEST: APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: By: City Clerk J n M. Funk Assistant City Attorney Page S of 9 75C-30 COUNTY OF ORANGE 0 LISA A. BARTLETT Chairwoman of the Board of Supervisors County of Orange, California Date: SIGNED AND CERTIFIED THAT A COPY OF THIS AGREEMENT HAS BEEN DELIVERED TO THE CHAIR OF THE BOARD PER G.C. SEC. 25103, RESO 79-1535 ATTEST: Robin Stieler Clerk of the Board Orange County, California APPROVED AS TO FORM OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA an Date: Page 9 of 9 75C-31 COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE COUNTY OF ORANGE FOR THE REORGANIZATION OF THE 17TH AND TUSTIN UNINCORPORATED ISLAND TO THE CITY OF SANTA ANA The 171h and Tustin Island annexation area is described as approximately 25 acres of unincorporated territory generally located near where the SR-55 Costa Mesa Freeway intersects 17th street, lying to the north of 17th Street, to the east of Tustin Avenue, to the south of Catalina Avenue, and west of SR-55 Costa Mesa Freeway. Included in the annexation is unincorporated public right of way as follows: • 17th Street from Tustin Avenue to SR-55 Costa Mesa Freeway Tustin Avenue from 17th Street to the north line produced of APN 396-312-15 Ponderosa Street from 17th Street to the north line produced of APN 396-303-12 • Deodar Street from 17th Street to the north line produced of APN 396-303-12 • Medford Street from Deodar Street to Pasadena Street • Pasadena Street from Medford Street to the north end of the cul-de-sac The above described annexation area is depicted in Exhibit 2. The area includes the private property parcels with Assessor's Parcel Numbers ("APNs') as shown in Exhibit 3. EXHIBIT 1 75C-32 d a i i i 1' f i e 1 � III EXHIBIT 2 CITY OF SANTA ANA 17TH STREET ISLAND - VICIHITI MAP 396-312-14 396-3t2-13 LEGEND ORANGE CO ��'"`°'� SANTA ANA TUSTIN OC PARCELS ry f= r rA� a,� 396-312-15 ` { Z �L 1 i 396-303-13 396-303-28 396-304JOt 396-303-12 396-303-74 . 396-303-27 396-3041i02 396-303-11 396-303-15 396-303-26 396-304,03 .396-303-16 396-303-25 396-303-10 < 396-304 I'04 396-303-09 396-303-t7 396-303-24 396-30a�05 F, 396-303-08 J 396-303-18 396-303-23 396-304'06 r 396-303-07 c 396-303-19 396-303-22 396-304i07 396-303-20 396-303-27 396-303-06 396-304 FOB 396-303-05 1"J'EDnflIFID Ay 396-304-09` 396-304-70 416 396-304-11 J\ 396-313-01 396-313-10 396-314-01 \� 396-313-02 396-313-09 396-314-02 396-313-03 U ' ii nL✓: J 396-313-1 1.;, 177i H :"T 396-313-OB 396-314-03 396-3t4-04 EXHIBIT 3 ASSESSOR'S PARCEL NUMBER MAP 396-314-06 f LS 9.3.19 RESOLUTION NO, 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A PROPERTY TAX EXCHANGE AGREEMENT WITH THE COUNTY OF ORANGE FOR THE 24.78-ACRE COUNTY ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE TO BE DETACHED FROM THE COUNTY OF ORANGE AND ANNEXED TO THE CITY OF SANTA ANA 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 Cortese -Knox Act regulates the change in organization of real property in the State of California, including the detachment of property from a public agency and its annexation to another. The Orange County Local Agency Formation Commission (LAFCO) is authorized to Implement the Cortese - Knox Act. B. A request is in the process of being submitted to LAFCO to attach 24.78- acres of property to the City of Santa Ana on Seventeenth Street and Tustin Avenue. A map showing this property is attached hereto as Exhibit 1 and incorporated herein by this reference. The property is to be used, together with other property, in Santa Ana for residential and commercial uses. In addition, a vacant section of the annexation area is proposed to be developed as a Chic-Fil-A and in-N-Out Burger restaurants. C. Pursuant to the Cortese -Knox Act, and California Revenue and Taxation Code Section 99 et. seq., LAFCO has determined that the County gained $15,557 in property tax revenue in 2014-2015. D. After the annexation, the City of Santa Ana will be providing public services to these properties, with the exception of water service. Based on a 1980 City/County revenue agreement, the County shall receive 41.4715 percent and the City shall receive 58.5285 percent of the County's share of the 1 percent basic levy of property tax from the annexation. Section 2. The City of Santa Ana hereby accepts the attachment of the 24.78- acres of property on Seventeenth Street and Tustin Avenue as shown on Exhibit 1 and its annexation to the City of Santa Ana. EXHIBIT 3 Resolution No. 2019-xx Page 1 of 3 75C-35 Section 3. The City of Santa Ana hereby accepts the Fiscal Assessment prepared by AECOM dated May 15, 2019, and agrees to a property tax exchange with the County of Orange, with the re -allocation taking effect after final LAFCO approval of the annexation and the formal attachment and annexation of the property. Section 4. This resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this resolution. The Clerk shall cause a certified copy of this resolution to be forwarded to LAFCO and the Auditor Controller of the County of Orange. ADOPTED this 3rd day of September, 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: '(I�' � . 1"J' Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor Resolution No. 2019-xx Page 2 of 3 75C-36 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, 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: Daisy Gomez Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 3 of 3 75C-37 L R Y t'- Alc,Mud 51 � •.. `ll► Y _ ]id- TLlstllt ,. 1 { l IN1 o m I c a — City of Santa Ana a y _ � 17th Street Island - Vicinity Ma i� t I E'er:-'38 LS 9.3.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL PLAN AMENDMENT NO. 2018-04 FOR THE PROPOSED ANNEXATION OF A COUNTY ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana (City) is requesting approval of General Plan Amendment No. 2018-04 to incorporate into the City's various General Plan elements a 24.78-acre unincorporated area of land that is currently located within the County of Orange. B. Over the past several months, the County has been working with the developer of a proposed project at the northeast corner of Seventeenth Street and Tustin Avenue. This development has been unable to move forward due to the inability to connect to the City's sewer system as they are currently located outside the City boundaries. C. On June 5, 2018, the City Council of the City of Santa Ana held a duly noticed public hearing to consider the annexation of the 24.78-acre County island generally located at the northeast corner of Seventeenth Street and Tustin Avenue. At this hearing, the Council directed staff to initiate the process to annex the County island and continue discussions with the County and the Orange County Local Agency Formation Commission (LAFCO) regarding the annexation. D. On September 14, 2018, the City, County of Orange, and the Orange County Local Agency Formation Commission held a duly noticed community workshop regarding the proposed annexation to obtain community input. E. On December 10, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt a resolution approving General Plan Amendment No. 2018-04. EXHIBIT 4 Resolution No. 2019-xx 75C-39 Page 1 of 5 F. On September 3, 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 General Plan Amendment No. 2018-04 for the Seventeenth and Tustin annexation project, 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. G. Pursuant to the California Environmental Quality Act (Pub. Res. Code sec. 21000 et seq.; "CEQA"), and the State CEQA Guidelines, the City has determined that a Categorical Exemption will be filed for the proposed project. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange has completed a negative declaration (ND) for the two developments. The ND will identify any potential impacts to the environment and identify mitigation measures to reduce or eliminate the impacts. The lead agency for the ND is the County of Orange. H. General Plan Amendment No. 2018-04 has been filed to amend the General Plan to change the land use designation of certain parcels located in the Seventeenth and Tustin County island boundaries. The proposed land use designations will be consistent with the current land uses and proposed pre - zoning designations of the annexation project area. The amendments will pre -designate properties located in the annexation area as Low -Density Residential (LR-7), Medium -Density Residential (MR-15), or General Commercial (GC) as shown on Exhibit 1, attached hereto and incorporated herein by reference. I. The City Council has weighed and balanced the General Plan's policies, both old and new, and has determined that based upon this balancing that General Plan Amendment No. 2018-04 is consistent with the purpose of the General Plan, Section 2. CEQA Compliance. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. More specifically, the proposed annexation will consist of the 24.78-acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, Resolution No. 2019-xx Page 2 of 5 75C-40 the Class 19 exemption is applicable 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 CEOA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 3, Approvals. The City Council of the City of Santa Ana after conducting the public hearing hereby approves General Plan Amendment No. 2018-04, The amendments to the Land Use Element are attached hereto as Exhibit 2 and incorporated herein by this reference 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 Request for Council Action dated September 3, 2019 and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. This Resolution shall not be effective unless and until Ordinance No. NS- (AA No. 2018-07) become effective. If said ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this resolution shall be null and void and have no further force and effect. Section 5. This Resolution shall not be effective unless and until the Orange County Local Agency Formation Commission (LAFCO) passes a resolution adopting the annexation of the County island. If the resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this Resolution shall be null and void and have no further force and effect. ADOPTED this ____ day of 2019. Miguel A. Pulido Mayor Resolution No. 2019-xx 75C-41 Page 3 of 5 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney f / Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, 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: Resolution No. 2019-xx Page 4 of 5 Clerk of the Council City of Santa Ana 75C-42 Exhibits 1 and 2: General Plan Amendments Resolution No. 2019-xx 75C-43 Page 5 of S ��-P u u 'n fi C w -� nr�■■■nr�■■r�, m v,;�j t�� m 1f ■ 75C-44 City of Santa Ana General flan Circulation Element 1998 City of Santa Ana Planning Division Adopted February 2, 1998 (Reformatted January 2010) EXHIBIT 2 This document includes revisions to the Circulation Element as passed by the voters of Santa Ana April 5, 2005 (GPA 2004-01), as adopted by Santa Ana City Council July 6, 2004 (GPA 2004-06). March 21, 2011 (GPA 2011-01), and (GPA 2018-04 pending). 75C-45 CIRCULATION ELEMENT Exhibit 1 Master Plan of Streets and Highways Street Classifications Freewoy O Principal O Malor A,tencl Primary Arteriol .. � Secondory Anenal .,.,.,n Commoler .......... Local Commercwi CITY OF SANTA ANA GENERAL PLAN Enhanced Intersections !Nerchonge City Limas 75C-46 CIRCULATION ELEMENT Exhibit 2 Bikeway Master Plan Garden Grove 000 r fj r A ol ` I- r L4 Costa Mesa ClassfBikePath Class 11 Bike Lane Routes to Adjacent Cities I I . Railroad * Santa Ana River Rest Stop CITY OF SANTA ANA GENERAL PLAN Orange Irvine A Inurtul I � N 0 06 12 Miles 75C-47 13 CIRCULATION ELEMENT Exhibit A-1 Regional Location CITY OF SANTA ANA GENERAL PLAN A I 75C-48 ExhibitA-2 CMP Intersections/Smart Streets — — — Smart Street OCongestion Management Plon Intersedions -- City Limits CIRCULATION ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-49 CIRCULATION ELEMENT Exhibit A-6 Roadway Reclassifications and Other Intersections Improvements RT. `• 21 r Lw �r•i T• � �_ � 1 •A.i4 A+t _ 5 power i i + crte, r� 4 � I f4A'M wK i A u AK 1 - 5 Nr 4 4AI � £AMA4 Art WFsrW sn, AK� r- � m.. 5. I• I WA9.n•GrCMA,S I � e ,I 1• r •• ©a.ttarsrtr or r•� t�t,J a. s` SAMA ANA I iM E 1 i • t j CK5 tR A. l • , � � i _ • � � �e ee�wu Y ti � � i ` �� r,orxW AK # n • 55 �•rt � 7 uT• _ Jlp \ • O y.... ........ ..r• 1 .........FW=M. v[ 1 •.. _. •••t•. w � � 5 MIQREW M1. Y j P -wu,r i....� WAINF. AM ii S 0 ti 5U'E11 AK 1" _.. � -� 1 i 5(bE[51rtd. r 5 � •..� PRa SG � p�•4 y` LL I.F . � ce< j } ANON.. q j 4 � LwSM �' • AKA • • y -Al R'VILf h •�`i •O F 1 >r'.' � •K�x c i i n Segments with Changed Classifications r,E:.w•ai ___ RCC1454ified as LGGOI Pnnapal •••••••• •Local Commemal Iuue511 Major Arterial Primary Arterial Other Improved Intersections —� • La, Limas • • Secondary Arterial n 11 r 1 u Commoter-' CITY OF SANTA ANA GENERAL PLAN A-23 75C-50 Exhibit A-8 Intelligent Transportation System aCMS Sites CCTV SO, OHAR Transrndfer OTroff.c Monogem l CeNe, TMCI Cotl,ans Dwnd 17 OH¢e QT,,db1m,, S!gm CIRCULATION ELEMENT 31F11 CITY OF SANTA ANA GENERAL PLAN 75C-51 A-)7 CIRCULATION ELEMENT Exhibit A-9 Public Transit (Bus) Routes © Streels Served by Pubk Tronsd INRegianal Transportation Cenler OSawa A o Tronsd Terminal CITY OF SANTA ANA GENERAL PLAN -- 75C-52 CIRCULATION ELEMENT Exhibit A-10 Truck Routes OWN © Local T.ock Robles ?ermnol Access Robles OLocal Trock Robles r CITY OF SANTA ANA GENERAL PLAN 75C-53 Exhibit A•11 Porldng Facilities ❑ Parking Srcucsv,zs Pnrk and R,de Faulifies Snnfc Ana TronsA Tern3ica; DReq�oncl iranzpononor+ Cew CITY OF SANTA ANA GENERAL PLAN CIRCULATION ELEMENT A-37 75C-54 Ex CIRCULATION ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-55 A-41 City of Santa Ana General Plan Economic Development Element 1998 City of Santa Ana Planning Division 0 Adopted July 6, 1998 (Reformatted January 2010) This dccomcm includes revisions to the Economic Dc�clopmcnt Element adopted by Santa Ana City Council (GPA XQ8-04 pending). 75C-56 Exhibit 1 Regional Map ECONOMIC DEVELOPMENT ELEMENT CITY Of SANTA ANA GENERAL PLAN 75C-57 City of Santa Ana General Plan Education Element 1988 City of Santa Ana Planning Division (a Adopted January 19, 1988 (Reformatted January 2010) This document includes revisions to the Education Element adopted by Santa Ana City Council (GI :k 2018-04 pending). 75C-58 Exhibit 1 School Districts in Santa Ana ' SM sT FiP Si S.MT1 .N ,s, 6i f uC[.oLEN Y r l 4 FpNGiP aYi fr a I / / 3 \.. YGFPSlppY /._• I _ Y.C.RTNVP !E �e {R EDUCATION ELEMENT i School District Boundaries y) CITY OF SANTA ANA GENERAL PLAN 75C-59 Exhibit 2 Elementary School Boundaries C),er Capcaty CITY OF SANTA ANA GENERAL PLAN EDUCATION ELEMENT 75C-60 Exhibit 3 Intermediate School Boundaries r_on�aiy EDUCATION ELEMENT LIIY OF SANIA AMA GENERAL PLA+d 75C-61 EDUCATION ELEMENT Exhibit 4 High School Boundaries = O,«. CoF ., CITY OF SANTA ANA GENERAL PLAN 73 75C-62 EDUCATION ELEMENT Exhibit 5a General Plan land Use Map �I Land Use Designations QLR-r IL.. Density Resgermat) '3� mS Nhsounv..nl) LMR-tt (Low -Medium Density Residenaat) - 0 (0t s. Spacy ® MR. 15 (Medium Density ResOenkal) pC 11)nirct Cervefp UM tu'E nNE hWrM1pod) • 40rwvslaW+Oer:fl GC(Gene.al ICw 13n Wway meva a.Ov) IND JIM..Weit) CITY OF SANTA ANA GENERAL PLAN 31 75C-63 Exhibit 6 Residential Development 1984-1986 CITY OF SANTA ANA GENERAL PLAN EDUCATION ELEMENT 75C-64 Exhibit 7 Proposed School Sites for SAUSD EDUCATION ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-65 EDUCATION ELEMENT Exhibit 8 Potential School Sites 500 and Over O Potenhol See Location 300-500 Unee ED 100-300 Umtt El 25 - IGO Unds El Under 25 Uoes 1� CITY OF SANTA ANA GENERAL PLAN 75C-66 City of Santa Ana General Plan ManagementGrowth 1991 City of Santa Ana Planning Division Adopted July 1, 1991 (Reformatted January 2010) This document includes revisions to the Growth Management Element adopted by Santa Ana City Council (GPA 20t8-04 Pending). 75C-67 Exhibit 2 Major Development Areas A Main Place B Museum Distnd C Downtown D MacArthur Place/Hutton Center E. South Coast Metro P Freeway OHice Center G Freeway Business Center CITY OF SANTA ANA GENERAL PLAN GROWTH MANAGEMENT ELEMENT OWN 75C-68 City of Santa Ana General Plan Land Use Element 1998 City of Santa Ana Planning Division Adopted February 2, 1998 (Reformatted January 2010) The folloavmg is a chronology of the approved general plan amendments that have been incorporated into this document since the comprehensive update of General Plan Land Use Element adopted by the Santa Ana City Council February 2, 1998 (GPA 1997- 05): GPA 2018 G4 (cendno GPA 2018 05 (December 4, 2018) GPA 2018-03 (September 18, 2018) GPA 2018-02 (May 15, 2018) GPA 2015 01 (May 15, 2018) GPA 2017-02 (December 19,2017) GPA 201701 (June 20, 2017) GPA 201603 (February 21, 2017) GPA 2016-02 (May 17, 2016) GPA 2016-01(Aprll 19, 2016) GPA 2015 03(Fetauary 2, 2016) GPA 2014 02 (October 21, 2014) GPA 2014 01 (June 3, 2014) GPA 201103 (Mach 19, 2)12) GPA 2011-02 (June 6, 2011) GPA 2010 01 (June 7, 2010) GPA 2008-02 (July 20, 2009) GPA 2007-03 (May 18, 2W9) GPA M01 (May 5, 20W) GPA 2004-03 (February 2, 20W) GPA 2007-02 (June 18, 200 ) GPA 2007-01(Match 19, 2007) GPA 200001(October 2, 2006) GPA 2005 01 5, 2005) GPA 200502 (October 17, 2005) GPA 2004 01 (April 5, 2005, as pursed by the voters of Santa Ana) GPA 2004 04 Puy 19, 2004) GPA 2004-06 (Jury 6, 2W4) GPA 2003.02 (June 16, 2W3) GPA 2W3 01 (February 18, 2003) GPA 2002-01(Sepember 3, 2002) GPA 2002-03 (August 19, 2002) GPA 2001-03 (February 19, 2002) GPA 2001-02 (January 7, 2002) GPA M09 (May 7, 2001) GPA 200008 (February 5, 20)1) GPA 200003 (December 4, 2000) GPA 200002 (Movember 20, 2000) GPA 1999 02 (October 18, 1999) GPA 1999 01 (August 16, 19%) GPA 1998 04 (October 5,1998) GPA 199805 (September 21, 1998) GPA 1998 01 (May 4, 1998) 75C-69 Exhibit 1 Regional Location CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT 75C-70 m__oa Rpgg� �a � a N z• 3 - i 9 •8 N NNf; 9�`. 3 = ? O J 75C-71 LAND USE ELEMENT 325,888 persons according to the State Department of Finance estimates. Since 1980, the number of persons living in the City grew by more than 73 percent. During this period of substantial population growth, the number of housing units remained relatively stable. Other notable demographic changes have occurred as well. The City's population is getting older. The median age of the population in 1980 was 26.2 years. By 2000, it had increased to 26.5 years compared to a median age of33.3 years for the County overall. REGIONAL CONTEXT The City of Santa Ana is located approximately 30 miles southeast of downtown Los Angeles, and 10 miles northeast of Newport Beach in the west -central section of Orange County. Santa Ana is bordered by the City of Orange, amf u eerpe, t arras 49rangeGetmtr" then rth;,.the City of Tustin on the east; the cities of Irvine and Costa Mesa on the south,; and the cities of Fountain Valley and Garden Grove on the west. Freeway access to the City of Santa Ana is provided by the Garden Grove Freeway (SR-22) and the Orange Freeway (SR-57) on the north, the Santa Ana Freeway (1-5) on the northeast, the Costa Mesa Freeway (SR-55) on the east, the San Diego Freeway (1-405) on the south. REGIONAL TRENDS Santa Ana is the largest City in Orange County in terms of population (9 percent of the County population) and fourth in terms of land area (27.3 square miles). Approximately 58 percent of the City's land area is developed with residential uses. Commercial areas account for approximately 15 percent of the City's total land area, and industrial uses cover approximately 14 percent. The City's January 2009 population is estimated by the California Department of Finance to be 355,662 persons. The 2009 housing stock consists of 75,856 dwelling units and the average household size is 4.7 persons per household. The City experienced rapid population growth from 1970 through 1990. The City's population in 1970 was 155,710 persons. By 1990, the population had increased to 293,742 persons, representing an increase of 89 percent, while the County's population increased by only 25 percent. Moreover, during this period of intensive population growth, the number of housing units in the City only grew by approximately 12 percent. The City's growth trends since 1990 have been more modest and is expected to continue at approximately one percent per year through the year 2010. The City's housing production is likewise expected to continue to be stable. There has been little growth in housing over the last several years; however, additional infill housing is anticipated through 2015 particularly in the City's District Centers. With even modest population growth at the current rate of housing production, the City is likely to continue to experience a rise in average household size. A-7 CITY OF SANTA ANA GENERAL PLAN 75C-72 Exhibit A-1 Merge Redevelopment Plan wDowntown osa ,h Ma 17—It North Horbo, E3 South Harbor fnfemty CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT A-5 75C-73 LAND USE ELEMENT ExhibitA•2 Enterprise Zone 574Y Enterprise Zone Atea (Ffleeeve Darc' June$ 7CY�1 Enterprise Zone Expansion Area VETA AV (EMzrnr (krre Fe+vruay 21 mrW '.... —•- Santa Ana City limits 22 _ ilC AVFN - _— TRASK Ali SANTA CLA Ati WA 3HINGTDN WASHINGTDN AV. i \ 'J E— CM NTER DR. w � s r r ST, T T sr. i m i M FADDEN AV J m LL N y EDINGER AV. n a x m w 55 =o u P A cF AV Py� P {o /" DYER R - <E"F RSTROM S "J w " MA ARTn�R BLL \ SUNFtGWFR AV_ F \ \\ \ A I N 405 � 1 CITY OF SANTA ANA GENERAL PLAN 75C-74 CL W i !� i s` 8 9- O C • d N j Q U) lL xe 3 '55!p p 813 s3ga9} E $ gE J C _ N `x T� i$��5� '� ��•$4idr,q$a�e � � Fa � LAND USE ELEMENT Residential The Land Use Plan provides for three distinct residential land use designations. Residential development is also permitted in two other designations: District Center and Urban Neighborhood. The Santa Ana Land Use Plan includes the following residential land use designations: The Low Density Residential (LR-7) designation applies to those areas of the City which are developed with lower density residential land uses. The allowable maximum development intensity is 7 units per acre. Development in this category is characterized primarily by single-family homes. This designation applies to a large proportion of the City (6 474.46;4546 acres) representing 47 percent of the City's total land area. The Low -Medium Density Residential (LMR-I1) designation applies to those sections of the City which are developed with residential uses at permitted densities of up to 11 units per acre. The land area included in this designation is approximately 421.64246acres. The great majorityof the land designated as Low -Medium Density Residential is located in the westerly portion of the City, north and south of First Street. Properties with this designation are typically characterized by mobile home parks, a mixture of duplexes and single Family residences, or small lot subdivisions. The Medium Density Residential (MR-15) designation applies to those sections ofthe City which are developed with residential uses at densities of up to 15 units per acre. Development in this designation is characterized by duplexes, apartments, or a combination of both. A total of 362.3 acres is designated as Medium Density Residential. Thedesignation applies to areas located in the vicinity of downtown, areas north and south of MacArthur Boulevard, and in other areas where there are established multiple -family development projects. CITY OF SANTA ANA GENERAL PLAN I" 75C-76 LAND USE ELEMENT 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 other smaller PAO areas in the City such as along North Broadway and along portions of east and west Seventeenth Street. A total of 859.2855.3 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. 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 (I-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. A-20 75C-77 CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT The General Commercial (GC) district applies to commercial corridors in Santa Ana including those located along Main Street, Seventeenth Street, Harbor Boulevard, and other major arterial roadways in the City The intensity standard applicable to this designation is a floor area ratio of0.5 - I.O, though most General Commercial districts have a FAR of 0.5. A total of862.2 8583-acres of land is included in this designation. General Commercial districts are key components in the economic development of the City. They provide highly visible and accessible commercial development along the City's arterial transportation corridors. In addition, General Commercial land uses provide important neighborhood facilities and services, including shopping, recreation, cultural and entertainment activities, employment, and education. The districts also provide support facilities and services for industrial areas includingoffice and retail, restaurants and various other services. The General Commercial development standards are based upon the character and intensity of development, as well as the degree of access and market demand for these properties. The relationships to adjacent land uses, are also considered. Uses typically located in this district are: • Business and professional offices; • Retail and service establishments; • Recreational, cultural, and entertainment uses; and • Vocational schools. General Commercial Districts have a floor area ratio of0.5 with the exception of the Mid -town area which has an floor area ratio of up to 1.0. One Broadway Plaza District Center is a separate land use designation as it has an F.A.R. of2.9, which exceeds the typical District Center intensity limit. Additionally, it does not include a residential component. One Broadway Plaza is envisioned as a landmark professional office complex that will be a focal point in the Downtown Redevelopment area serving the Civic Center complex, Downtown, and Midtown urban areas. The City's District Centers and major development areas are shown in Exhibit A-5. CITY OF SANTA ANA GENERAL PLAN 75C-78 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 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 21,255 units possible in the areas designated as District Center and Urban Neighborhood to the existing 74 669 -7 ;, 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 TableA-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 for commercial and industrial developments than that which is permitted under the General Plan. CITY OF SANTA ANA GENERAL PLAN A-33 75C-79 LAND USE ELEMENT As indicated in Table A-4, between 76,998 to 95,924 99;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 197O's and 1980's. However, the purpose ofthe Land Use Plan as it applies to the residential areas is to preserve and maintain the stability of existing neighborhoods, regardless of the character ofdevelopment. 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 32,407,333 32-,3-20,2 F3square feet ofcommercial and office development, and 42,199,991 square feet of industrial development are possible under the effective capacity parameters of Land Use Plan. CITY OF SANTA ANA GENERAL PLAN 75C-80 LAND USE ELEMENT Table A•4 nncnaurr r.murne sruuuuur Land Use Acres i Oensiliv Low Density Residential LR-7 6 474.47d SAWA Wac Low Medium Density Residential LMR-11 420.E 11 du/ac Medium Density Residential MR-15 15 War: Subtotal 7,217.i District Center Other' DC 309.5 90 du/ac FAR 1.0-2.0 11'955,583 s1 3,077 du Heritage DC 18.8 FAR 1.7 54,090 sf 1,221 du Downtown DC 62.5 FAR 3.0 2,057,824 st 1,661 du Metro East DC 113.9 FAR 0.75- 3.0 2,464.776 sf 5,037 du Transit Village DC 51A FAR 5.0 402,864 st 2,761 du Harbor Corridor DC 125.0 FAR 5.0 1.836,155 sf 2,029 du Urban Neighborhood UN 313A FAR 0.5-3.0 1,656,955 sf 5.529 du Subtotal 994,5 20,428,247 sf 21,255 du Theoretical 45,321 du 4,627 du 5.440 it 6.421idu 55.397 du 66,249 du 23,764,534 sf 3,017 du 54,090 s! 1,221 du 2,057,824 sf 1.661 du 2,464,776 sf 5,037 du 402,864 sf 2,761 du 1,836.155 s 2,029 du 1,656,955 s! 5,529 du 32,327,198 91 21,255 du Professional & Admin. Office PAO 600.8 FAR 0.5-1.0 13.085,424 sf 26,170,848 s1 General Commercial GC FAR 0.5-1.0 38.S4i,7§86 I 37,553�f ,543,193 One Broadway Plaza District CW OBPOC 4.3 FAR 2.9 543,193 at sf Subtotal 1 4467.3 1,463.3 32.407333 It I 3222A213-U .64,271,473 if 6q�87-233-st Industrial IND 2,152 8 FAR 045 42,199991 sf 42,199,991 sf Institutional INS 800.6 FAR 0.2-0.5 6,974,740 st 17,436,850 sf Open Space OS 1,010.9 FAR 0.2 8.806,961 sf 8,806,961 at Subtotal 1,811.5 15,781,701 if 26,243,811 st FAR=floc area ratio: d.u.=dwelling unit s.f.=square feet (of Boor area). Acreage shown in table does na incWde roads in right-af-way. I Effective capacity for non-residential 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 allow a range of intensity for mixture of residential and non-residential development based on the zoning development standards Residential effective capacity was calculated by adding the 21,255 units possible in the District Center and Urban Neighborhood with the existing 74 6 ..488 (Census 2000) housing units. ' Land use designation permits both residential and non-residential development. Build -out assumes 90% of land area will be developed as commercial and 10% will he 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 table has been revised to correspond with the GIS Land Use Map illustrated in Exhibit 2. CITY OF SANTA ANA GENERAL PLAN A-35 75C-81 LAND USE ELEMENT Exhibit A-7 Liquefaction p ns 12M'I. mmwmwmmp� CITY OF SANTA ANA GENERAL PLAN '',-43 75C-82 Exhibit A-8 Subsidence U) Subsidence LAND USE ELEMENT Cl iY OF SANTA ANA GENERAL PLAN 75C-83 Exhibit A•9 Flood Hazards ® 100 Year Flood Zone 500 Year Flood Zone CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT �•�.� Ci7Vmin 0 06 1.2 Miles 75C-84 Exhibit A-11 Archaeological Sensitivity aSurrey Safes ® A.choeoloycal Stes LAND USE ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-85 Exhibit A-12 Historic Resources LAND USE ELEMENT C t. r 55 } a .�. wetmrta . +o5 Historic DWI;d CITY OF SANTA ANA GENERAL PLAN I� r- WAeiAfriQry AY � i l.We uu L A-61 75C-86 City of Santa Ana General Plan Noise Element 1982 City of Santa Ana Planning Division 0 Adopted September 20, 1982 (Reformatted January 2010) This doatment includes revisions adopted by Santa Ana City Counal Febroa,v 2, 2009 (GPA 2004-03) and (GPP, 2D18 {H pr nd uiK �. 75C-87 Exhibit 5 Transportation Noise Sources CITY OF SANTA ANA GENERAL PLAN NOISE ELEMENT .me O,stanra Fran Right -of -Way hoysand) to65CNELCrmtrx,r 3W 100f feet 2030 50-100 feet 15-20 25 50 feet 10,15 025 feet 75C-88 City of Santa Ana General Plan Open Space, Parks an Recreation Element 1982 City of Santa Ana Planning Division AJopteA September 20, 1982 )Reforma0ed January 2010) This document includes revisions adopted by Santa Ana City Council July 19, 2004 (GPA 2004-04) addressing local watershed and stormwater management for the National Pollutant Discharge Elimination System (NPDES) and (GPA 2018 0A pending). 75C-89 OPEN SPACE, PARKS AND RECREATION ELEMENT Exhibit 4 Open Space Plan Porks Schools ® Other (Golf Courses, Cemeteries, etc.) CITY OF SANTA ANA GENERAL PLAN 75C-90 City of Santa Ana General Plan Public Safety Element 1982 City of Santa Ana Planning Division a Adopted September 20, 1982 (Reformatted January 2010) This document includes recisions adopted by Santa Ana City Council July 19, 2004 (GPA 2004-04) addressing local watershed and stormwater management for the National Pollutant Discharge Elimination System (NPDES), February 4, 2014 (GPA 2013-01) in compliance with AB 162, and (GPA 21118-04 pendue)- 75C-91 PUBLIC SAFETY ELEMENT Exhibit 4 Flood Hazard Areas . � �lr A t(• �.y �;. ;.cA9ceNcnav= eFw .Rr• .�� " •• .'r'.'.'r'r'.'. '. y e � NX'f CIIPAAV '.NETNMSIEP AV .' iTT'f 4' IF149 < J F wAeN Nc:-c. Av � N• ,_• • m f5'S fg�T 'n. OUST. .1.�•'�•1FLF � nv .m Z p •\"44 •S KfA�F, jAV C i d E3RGF0. AV OM'£9A D mAV 6 � i So WMNER AV W.TrfR AV Ake 6FGF991PdA Av G . L $¢ n f9 ,L ♦� g' � � y S / NACwFn9A aw i \ �� TuNROMR AV Legend 100-Year Flood Ris+ 500. Year Flood Rise Undelerm;ned Flood Hazard IG CITY OF SANTA ANA GENERAL PLAN 75C-92 City of Santa Ana General flan Public Facilities Element 1982 City of Santa Ana Planning Division a Adopted September 20, 1982 (Reformotted Jon uory 2010) This document includes revisions to the Public Facilities Element adopted by Santa Ana City Council (GPA 1018-04 pending). 75C-93 Exhibit 4 Public Facilities Plan 0 Elementary School C-) Junior High School Q Junior College A High School Other Public Facilities- 0 Post Office % Hospital • Police Station • Bowers Museum CITY OF SANTA ANA GENERAL PLAN PUBLIC FACILITIES ELEMENT r. Library On Fire Station W Special School dh Santo Ana Unified School District Office O Parks Government Complex . e r 75C-94 City of Santa Dina General Plan Seismic Safety Element 1982 City of Santa Ana Planning Division Adopted September 20, 1982 (Reformatted January 2010) This document includes revisions tothe Seismic Safety Element adopted by Santa Ana City Council (GPA 2f18-H pending). 75C-95 Exhibit Potenfial Svbsidence Areas 3 CITY OF SANTA ANA GENERAL PLAN SEISMIC SAFETY ELEMENT Awe , Are 6. n.e 75C-96 SEISMIC SAFETY ELEMENT Exhibit 5 Potential Liquefaction Areas •� t Garin Gwn Bbd "' Govan G.n.. \ l SwG... .. Wnm..nuo A.. '�•� - . •... W utl A.. ��OFSI om AL M<{ Wbn r... 'i. ..... .... WFbtl.n A.., Ednp. Av.. n � � S Wvn.• Aw. S.p..11rom Ar. y p M<Anna. Blrtl 4 q Q N _ m CITY OF SANTA ANA GENERAL PLAN 75C-97 City of Santa Ana General flan Urban Design Element 1998 City of Santa Ana Planning Division Adopted July 6, 1998 (Reformatted January 2010) This document includes revisions to the Urban Design Element as passed --by the voters of Santa Ana April 5, 2005 (GPA 2004-01), as adopted by City Council March 19, 2007 (GPA 2007-01), August 21, 2018 (GPA 2018-01), and (GPA 2018-01 pending). 75C-98 URBAN DESIGN ELEMENT Exhibit 3 Existing City Form Map ® Londmorks ® Nodes ® Districts ® Mojor Poths Minor Poths E iVR'.Mffi{ iA 19 NS, , CITY OF SANTA ANA GENERAL PLAN 75C-99 Exhibit 4 City Form Map URBAN DESIGN ELEMENT ..//.S fAiPuaYLN IV i11 _ I.II sl lsl■� ��j ,1>4 _ i I i Yt��--�� if� III � IIIII__J —= 1 I I ��__s�c_stanu�lll�a— N�a: I nl 111 7 I I! I ilIt , 1 "` ,- ,J tit- II Dow NegnEomootlx Paths: TrarNly Poula ® Nadex CPttlnat. point foot ln[erte[twns: Local Ppea ® Landmat4: Focal Points ® GalevaY4 Pmval Volnit :' O6 I]hfAm cmbmita -� CITY OF SANTA ANA GENERAL PLAN 75C-100 URBAN DESIGN ELEMENT Exhibit 5 Districts 1. Trask Fairview 12. Downtown 23. South Harbor Blvd. 2. Northwest 13. Broadway 24. Thorton Park 3. North Main 14. French Park 25. Bristol Manor/SE Side/Delhi 4. Park Santiago 15. Intercity/RTC 26. Freeway Window 5. Cabrillo Park 16. 4th St. Professional 27, Armstrong 6. West Side 17. Tustin Ave. 28. South Coast 7. Harbor Blvd. 18. Midcity 29. Sand Pointe 8. Santa Ana 19. Central Historic 30. MacArthur Place/Hutton Center 9. Artesia Pilar 20. South Main 31. Freeway Corporate 10. Washington/Willard 21. Eastside 32. Metro East 06 12M„R 11. Flower Park 22. Southeast Industrial - - - City Limits�� CITY OF SANTA ANA GENERAL PLAN 25 75C-101 URBAN DESIGN ELEMENT Exhibit 6 Paths 1. Seventeenth St. 12 Cmc Center D,. 2 First Si 13 Santo Ano Blvd 3 Edinger Ave 14 fourth St 4 West Warner Are 15 McFadden Ave 5. East Dyer Rd 16 Warner Ave 6 East MacArthur Blyd. 17 Tustn Ave 7. Santa Ano Freeway 18 Grand Ave. & Costa Mesa{Newport Freeway 19. A.T. & S.F RR Line 9. Main St. 20. Foinn w Rd 10. Bristol St_ 21 Euchd Are - eh 11. Harbor Blvd. 22. West MocA,Ihur Blyd. CITY OF SANTA ANA GENERAL PLAN 97 75C-102 URBAN DESIGN ELEMENT Exhibit 7 Nodes 1? 1 .. r L.J • are _•• 5 is-n 9i ' �•. . ell 14 9 0 015 1 rl:r,x t„ a Diu sr 130 .fr sr 60 e4:11A All 160 17 70. �' ME9Nut AV 3 , �Mef ADDE§ Al `, 3• WrAWfN AV. RpNrii AV 120 Gr a a z waaNER A, s a sE�ER�.�3M r _ _ -MACARTHUR & OB 4 Q'uhIL.1111 AV r aas 1. Main Place Mall 10. Tustin Ave. South of 17th St. ]. Main St. Concourse 11. Santa Ana Zoo 3. MacArthur Place 13 Centennial Park 4. Hutton Center 13. Willowlck G.V Coarse S. South Coast Bristol 14. Bristol Marketplace 6. Cr,'Center 15. Rancho Santiago College ], Downtnsvnl4lh SUAmst Village 16 Regional TramportaM1on Center S. One Broadway Placa 17. Metro East 9 Bowers Museum 18. Habor Carndor Plan CITY OF SANTA ANA GENERAL PLAN 31 L._. —•— City Limits 0 0.6 1.3 Miles 75C-103 Exhibit 8 Focus Intersections 1. Main St and 17th St 2. Main St and First St 3. Mom St and Edinger Ave. 4. Ma,n St and Worner Ave 5, Grand Ave. and 17th St. 6, Grand Ave. and Fus1 St 7. First St and F.,,*e 51. 8. 8nstol St and Edinger Ave 9. &idol St. and First St. 10, Fairview St. and Ednger Ave. CITY OF SANTA ANA GENERAL PLAN URBAN DESIGN ELEMENT 11 Faeview St and 1 7th SI 12 First St and Eachd Ave 13. First St and Harbor Blvd 14. Harbor Blvd and McFadden A... 33 75C-104 Exhibit 9 Landmarks URBAN DESIGN ELEMENT 7 1. Mom Place Moll/Moan St. Concourse 8 Imersection of Main St. and MocAohur Blvd 2. City Wafer Tower 9 Intersection of Bristol St. and Sunflower Ave 3. Regional Transpodchon Center 10 Intersection of Warner Ave and Harbor Blvd d. Intersection of First and Main Streets 11. InterseCwn of Harbor Blvd. and Fast St. 5. 80cher Xero. Center 12 Intersecion of Fovmew Rd and f_ivic Center O,. 6. Santa Ano 200 13 Centerp.ml/Federal Court 7. Hotel Termce 14 One Broadway Plom CITY OF SANTA ANA GENERAL PLAN 37 1 75C-105 URBAN DESIGN ELEMENT Exhibit 10 Gateways 22 ski xt>nniwsrz� • v t3 ..v � I w•srmc.on Av fY >S! n >ISf I n War ii, (N Av � RGM'alR. AY wnwE[ nv a 2 V un*.- 9wM.CtwRw rr 34 Lf� 16 19 uCfs.CCEN nv 5f(iFIh+40M >T / PC .rli Av 3 to 10 i w 9 M RewseE WIh 19. 2007 1. Bristol St. at North City Limit 11. McFadden Ave. at Harbor Blvd. _ - _ City Limits 2. Main St. at North City Limit 12. First St. at Euclid Ave. 3. 17th St. at Tustin Ave. 13. Harbor Blvd. of North City Limit 4. Edinger Ave. at SR-55 Freewoy 14. Main St. at 1-5 Freeway S. East Dyer Rd. at SR-55 Freeway 15. 17th Sf, at 1-5 Freeway 6. MacArthur Blvd. at SR-55 Freeway 16. Santo Ana Blvd. of 1-5 Freeway 7. South Main St. of Sunflower Ave. 17. Fourth Si. at 1-5 Freeway 8. Bristol St. at Sunflower Ave. 18. First St. of 1-5 Freeway 9. MacArthur Blvd. of Fairview St. 19. Losson Rail Corridor 10. Harbor Blvd. of MacArthur Blvd 20. Metro East r CITY OF SANTA ANA GENERAL PLAN 39 75C-106 LS 9.3.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-07 PRE -ZONING THE PROPERTIES LOCATED WITHIN AN UNINCORPORATED COUNTY ISLAND PROPOSED FOR ANNEXATION GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana (City) is requesting approval of Amendment Application No. 2018-07 to amend the zoning designation of a 24.78-acre unincorporated area of land that is currently located within the County of Orange and within the sphere of influence of the City of Santa Ana. B. General Plan Amendment No. 2018-04 was filed concurrently with the Amendment Application for consistency with the General Plan to incorporate Into the City's various General Plan elements. C. On December 10, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt an ordinance approving Amendment Application No. 2018-07 which is consistent with the General Plan, as amended by General Plan Amendment No. 2018-04. D. The City Council has reviewed applicable general plan policies and has determined that this proposed pre -zoning is consistent with the purpose of the general plan. F. The City Council, prior to taking action on this ordinance, held a duly noticed public hearing on September 3, 2019. G. The City Council also adopts as findings all facts presented in the Request for Council Action dated September 3, 2019 accompanying this matter. H. For these reasons, and each of them, Amendment Application No. 2018- 07 is hereby found and determined to be consistent with the intent and purpose of Chapter 41 of the Santa Ana Municipal Code, thus changing of the zoning districts has been found to be consistent with the General Plan EXHIBIT 5 Ordinance No. NS-XXXX Page 1 of 4 75C-107 of the City of Santa Ana and otherwise justified by the public necessity, convenience, and general welfare. Section 2. The Planning Commission of the City of Santa Ana recommends that the City Council adopt an ordinance pre -zoning the real properties generally located at the northeast corner of Seventeenth Street and Tustin Avenue and Amended Sectional District Map number 4-5-9 showing the above described change in use district designation (AA No. 2018-07). This recommendation is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: The Request for Planning Commission and Council Action dated December 10, 2018 and September 3, 2019, respectively and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Section 3. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. More specifically, the proposed annexation will consist of the 24.78- acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, the Class 19 exemption is applicable 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 CEQA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 4. The zoning designation of the real properties generally located within the 24.78-acre County island at the northeast corner of Seventeenth Street and Tustin Avenue shall be reclassified from the County's Local Business (C-1) and Single - Family Dwellings (R-1) designations to Community Commercial (C1), Single - Family Residence (R-1) and Two -Family Residence (R-2). An amended Sectional District Map, showing the above described changes in use district designation, is hereby approved and attached hereto as Exhibit 1 and incorporated by this reference as though fully set forth herein. Ordinance No. NS-XXXX Page 2 of 4 75C-108 Section 5. This ordinance shall not be effective unless and until Resolution No. 2018- (Environmental Review No. 2018-89 and General Plan Amendment No. 2018-04) is adopted and becomes effective. If either resolution and/or ordinance are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. Section 6. This ordinance shall not be effective unless and until the Orange County Local Agency Formation Commission (LAFCO) passes a resolution adopting the annexation of the County island. If the resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. Section 7. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. ADOPTED this _ day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: � (-- Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 3 of 4 75C-109 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No, NS-XXXX Page 4 of 4 75C-110 e i••—••—••'PAIRMAVEN k1 -_.._. ° i I " 4 I 1 4 £ p< Ptl F CS 1 � cs >t 1 _ SANTA CLARA AV $,Y c5 ' at g' qv C5 5 a gz�gc 1 'SP-I P. l gS I yP. s vf.tFvocO,v cI 9. nu...oaou � ct N°c �•>.•� I ulo 0 z" Z at .,cur 6 17L._-_.-_ isnt sr - v C5 -. I nt t• {y C5 1 Ct C5 Cs v ...—...... i ZONING DISTRICTS At GENENALAGRICUI.TURAL CSIA SOUTH MAIN STREET COM.IERCIAL DIST. R2 MC-FANILYRESIDENCE .8 PARKING MODIFICATION CR COMMMIM COMMERCIAL GC GOVERNM CENTER RJ IAVLMLE-FAMLY RESNENCE -OZ OVERLAYZONE CND C2 COFANNItt COMMERCIAL - MUSEUM GIST. GENERAL COMMERCIAL M1 M2 LIGFrt STRWL HEAVY NDUSTRIAL R4 RE SUBURBANAPARTMENT RESIDEW4 LESTATE PRO PLANNEORESIDUITIAL DEVELOPMENT C4 PLANNED SHOPPING CENTER O OPENSPACE SO SPECFEDEVELOPMENT -1102 HEGHTDISTRETH C5 ARTERALCOMMERCIAL P PROFESSIONAL SP SPECFICPLAN GR COMERCALRESiDENT RI SINGLE.FAMLYRESIDENCE SECTIONAL DISTRICT MAP: 4-5-9 CITY OF SANTA ANA. CALIFORNIA Exhibit: EXHIBIT 1 75C-111 75C-112 SERVICE AGREEMENT BY AND BETWEEN THE CITY OF SANTA ANA AND THE CITY OF TUSTIN REGARDING POTABLE; WATER SERVICE FOR VARIOUS PARCELS OF UNINCORPORATED REAL PROPERTY This Service Agreement ("Agreement") is entered into by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("Santa Ana"), and the City of Tustin, a California municipal corporation ("Tustin") (each referred to as "Party" and collectively referred to as the "Parties") on the effective date of the reorganization of "Island Parcels" involving the annexation of the "Island Parcels" to Santa Ana and detachment of same territory from the Municipal Water District of Orange County as specified in Section A below. RECITALS A. As provided by the Cortcse-Knox-Hertzberg Local Government Reorganization Act of 2000 (Gov. Code, §§ 56000 et seq.) and the Orange County Local Agency Formation Commission's ("OC LAFCO") policies and procedures, Santa Ana will submit to OC LAFCO an application to annex 57 parcels and detachment of the same parcels from the Municipal Water District of Orange County. The annexation collectively constitutes an island of unincorporated territory within Santa Ana's sphere of influence with Assessor's Parcel Numbers ("APNs") 396- 303-01 to -28, 396-304-01 to -11, 396-312-13, -14, and -15, 396-313-01 to -03, -06 to -11, and 396-314-01 to -06 ("Island Parcels") as shown on Exhibit 1. B. Santa Ana is presently without the necessary water system infrastructure to directly provide Potable Water Services to the Island Parcels, but contemplates and fully intends to ensure that the Island Parcels receive adequate Potable Water Service consistent with the level of service contemplated by Santa Ana subsequent to the Annexation, including installation and completion of all necessary water system infrastructure and performance of all customer service flmctions ("Potable Water Service") following Santa Ana's annexation of the Island Parcels, C. Tustin maintains and operates water lines and facilities that provide Potable Water Services to all developed Island Parcels. D. Santa Ana and Tustin desire to enter into this Agreement, whereby Tustin will provide Potable Water Service to the Island Parcels. Tustin will to provide water service to the Island Parcels until such time Santa Ana has completed water system infrastructure to serve the entire Island Parcels. E. This Agreement constitutes a service agreement in which "[t]wo or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider." (Gov. Code, § 56133(e)(1)). I of 7 75C-113 F. Under Government Code, section 56133 and OC LAFCO's "Policy & Procedures for the Review and/or Processing of Out -Of -Area Agreements by the Executive Officer (Gov't Code §56133)," this Agreement is not an out -of -area service agreement requiring OC LAFCO's review and approval because: (1) Santa Ana and Tustin are both public agencies; and (2) upon annexation, Santa Ana will have the exclusive authority to provide Potable Water Services to the Island Parcels. However, Santa Ana has found that such activities can be more efficiently and more conveniently performed by Tustin pursuant to this Agreement at this time. G. This Agreement will in no way adversely impact water services to current customers of Santa Ana or Tustin, will not induce growth, and will not result in the duplication of services in the territory of either city. H. This Agreement serves the public interest, economy, and general welfare. NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants as well as for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties agree as follows: CONSENT FOR AND PROVISION OF SERVICES 1.1. Santa Ana's Consent for Service. Except as provided in Section 1.2, Santa Ana consents to Tustin's provision of Potable Water Service to the Island Parcels, upon Santa Ana's annexation of the Island Parcels. 1.2. Following the annexation, in the event that Santa Ana has or creates the infrastructure and the capacity to provide Potable Water Service to the Island Parcels, any new development or redevelopment within the Island Parcels shall be served by Santa Ana. 1.3. Tustin's Provision of Service, 1.3.1. Provision of Service. Tustin agrees to provide Potable Water Service to the Island Parcels in a manner and at a level consistent with Tustin's provision of services to its remaining service area, subject only to a changeover as set forth in Section 2 of this Agreement. 1.3.2. Applicable Law. Tustin's provision of the Potable Water Service shall comply with applicable local, state, or federal statutes, regulations, rules, or policies. 2of7 75C-114 TERMINATION Santa Ana's Capacity for Service. If, at any time during the course of this Agreement, Santa Ana determines that it has the infrastructure and capacity to economically and conveniently provide Potable Water Service to the Island Parcels in a manner and at a level consistent with Santa Ana's service to the remainder of its service area, then Santa Ana will send written notice to Tustin and OC LAFCO of such determination. The notice shall provide reasonable terms, conditions, and times for accomplishing the changeover from Tustin to Santa Ana as the provider of Potable Water Service; provided, however, that cooperation with the notice shall be at no cost to Tustin. Tustin will work in good faith with Santa Ana to reasonably comply with the notice. This Agreement shall terminate when the changeover is accomplished. When this Agreement is terminated for any reason, any costs reasonably required to disconnect, transfer, cap, abandon, and/or otherwise cease Potable Water Service by Tustin will be reimbursed by Santa Ana within ninety (90) days of delivery of written request for such reimbursement. The manner of cessation of Tustin Potable Water Service shall be in compliance with all then -current Tustin standards and requirements. 3. EFFECTIVE DATE OF AGREEMENT The effective date of this Agreement is the date this Agreement is executed by both Parties as it appears on the Signatures page of this Agreement referred to as Effective Date. 4. SCOPE OF AGREEMENT Nothing contained in this Agreement shall be construed as representing the establishment of any precedent or the formation of any policy by Santa Ana to generally allow Tustin to provide Potable Water Service within Santa Ana's jurisdiction or by Tustin to provide Potable Water Service within Santa Ana's jurisdiction on the terms and conditions contained herein or on any terms and conditions whatsoever. 5. INDEMNIFICATION The Parties shall indemnify and hold harmless each other and their officers, employees, and agents, against tury and all claims, liabilities, expenses, attorney's fees or damages, for injury or death of any person, or damage to property, or interference with use of property ("Claims"), to the extent the Claims arise from the negligence or willful misconduct of the indemnifying Party or to the extent any Claim arises in connection with the indemnifying Party's negligent performance of this Agreement. 6. MISCELLANEOUS PROVISIONS 6.1. Changes to Agtcement. All of the terms, conditions and provisions hereof shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns, provided, however, that no assignment of this Agreement shall be made without the prior written consent of the Parties to the Agreement, which consent may not be unreasonably withheld, conditioned or delayed. 3of7 75C-115 6.2. Performance. Whenever performance is required of any Party hereunder, that Party shall use all due diligence to perform and take all necessary measures in good faith to perform; provided, however, that if completion of performance shall be delayed at any time by reason of acts of God, war, civil commotion, riots, strikes, picketing, or other labor disputes, or damage to work in progress by reason of fire or other casualty or cause beyond the reasonable control of a party (acts by the performing Party causing the situation to be beyond reasonable control excepted), then the time for performance as herein specified shall be appropriately extended by the amount of the delay actually so caused. 6.3. Severabihty. Invalidation of any of the provisions contained in this Agreement, or of the application thereof to any person or circumstance, by judgment or court order, shall in no way affect any of the other provisions hereof or the application thereof to any other person or circumstance and the same shall remain in frill force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under all the circurnstances or would fnistrate the purposes of this Agreement. 6.4. Form of Notice. Any notice to any Party shall be in writing and given by delivering the same to such party in person or by sending the same by registered or certified mail, return receipt requested, with postage prepaid to the party's mailing address. The respective mailing addresses of the Parties thereto are, until changed as hereinafter provided, the following: To Santa Ana: Fuad Sweiss, PE, PLS Executive Director Public Works Agency 20 Civic Center Plaza Santa Ana, Ca. 92702 With copy to: Clerk of the Council 20 Civic Center Plaza Santa Ana, Ca. 92702 To Tustin: Douglas Stack Director of Public Works/City Engineer 300 Centennial Way Tustin, Ca. 92780 To OC LAFCO: Carolyn Emery 2677 North Main St Suite 1050 Santa Ana, Ca 92705 6.5. Change of Address. Any Party may change its mailing address at anytime by giving written notice of such change to the other Party in the manner provided herein at least ten days prior to the date such change is considered effective. 4of7 75C-116 6.6. Effective Date of Notice. All notices under this Agreement shall be deemed given, received, made or communicated on the date personal delivery is effective or, if mailed, on the delivery date or attempted delivery date shown on the return receipt. 6.7. Content of Notice. Every notice (other than the giving or withholding of consent, approval, or satisfaction under this Agreement, but including requests therefore) given to a Party or other person shall comply with the following requirements. Each notice shall state: 6.7,1. The paragraph of this Agreement pursuant to which the notice is given; and 6.7.2. The period of time within which the recipient of the notice must respond or if no response is required, a statement to that effect. 6.7.3. Each request for consent or approval shall contain reasonably sufficient data or documentation to enable the recipient to make an informed decision. 6.8. Entire Agreement. This writing constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all oral or written representations or written agreements that may have been entered into between the Parties. This Agreement may be cancelled, changed, modified or amended in whole or in part only by a written and recorded instrument executed by the Parties (or their respective successors and assigns). 6.9. Governinpwaw. This Agreement shall be governed by the laws of the State of California. Any legal action concerning or arising out of this Agreement shall be filed in a court of the State of California having jurisdiction of the subject matter, and venue shall be in the County of Orange, State of California. 6.10. Counterparts. This Agreement may be executed by the parties in one or more counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such parts shall together constitute one and the same instrument. 6.11. Section Headings. All section headings and subheadings are inserted for convenience only and will not affect any construction or interpretation of this Agreement. Signatures and OC LATCO certification on the next pages. 5 of 7 75C-117 SIGNATURES In witness thereof, the Parties here to have executed this Agreement on which is the Effective Date. Momh Day Y= CITY OF SANTA ANA, a California municipal corporation By: KRISTINE RIDGE, CITY MANAGER Attest: M DAISY GOMEZ, CITY CLERK Approved as to Fonn: CITY of TUSTIN, a California municipal corporation BY: MATHEW S. WEST, ACTING CITY MANAGER Attest: BY: ERICA N. YASUDA, CITY CLERK Approved as to Form: WOODRUFF, SPRADLIN & SMART, APC. By: SIE4 !A' fi By: S IA CARVALHO, DAVID E. KENDIG, CITY ATTORNEY CITY ATTORNEY CERTIFICATION Based upon the recitals and the terms of this Agreement, I find that Tustin's provision of Potable Water Services outside its jurisdictional boundary to the Island Parcels does not constitute a contract or agreement requiring OC LAFCO approval under Government Code section 56133. 0 CAROLYN EMERY, EXECUTIVE OFFICER OC LAFCO 6of7 75C-118 LEGEND ORANGE CO 6"11,-:"b SANTA ANA TUSTIN OC PARCELS Fry P lf'\ Ar, 396-312-15 396-312-14 396-303-13 396-303-28 396 304101 1 396-303 12 396-303-14 396-303-27 396-30402 t 1, 396-303-77 396-303-75 396-303-26 396-30C 03 �. 396-303-10 Q 396-303-16 396-303-25 396-304-04 i. 396-303-09 Z 396-303-17 396-303-24 396-309�05 W i 396-303-08 � 396-303-18 396-303-23 396-304106 rJj r 396-303-07 C 396-303-t9 396-303-22 396-304107 \ 1 396-303-06 396-303-20 396-303-21 1 396-304-08 396-303-05 1"'=D;=01110 AY io' �o'' 'So� 396-313-01 396-313-10 396-313-02 396-313-09 F- cri 396-313-08 396-312-13 U7 396-313-03 i L YG Cj 396-313-07 Z 0 396-313-11 396-313-06 G I 1 EXHIBIT 1 ASSESSOR'S PARCEL NUMBER MAP 396-304-09�. \: 396-304-10 396-304-11 396-314-01 \�\� 396-314-02 L� 396-314-03 j U. rr 396-314-04 o '�:✓ 396-314-05 Ile - it f' 396-314-06 L I 75C-120 LS 9.3.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CHANGING THE BOUNDARIES OF WARD 3 IN CONJUNCTION WITH THE PROPOSED 24.78-ACRE COUNTY ISLAND ANNEXATION GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In accordance with Sections 101.2 and 101.4 of the Santa Ana City Charter, on May 7, 2019, the City Council of the City of Santa Ana declared its intention to change the boundaries of Ward 3 to include a 24.78-acre area of land currently located in the County of Orange which is proposed to be annexed to the City of Santa Ana. The area proposed for annexation is shown on the map attached as Exhibit 1. B. At the May 7, 2019 Council meeting, there was no opposition raised regarding the change in the boundaries for Ward 3. C. The Clerk of the Council gave notice that on September 3, 2019, at 6:45 P.M. or as soon as, possible thereafter, in the Santa Ana City Council Chambers, 22 Civic Center Plaza, Santa Ana, California, a public hearing will be held by the City Council at which time any and all persons interested in or objecting to the proposed change in ward boundaries described above may appear and be heard. Section 2. The City of Santa Ana hereby approves the change in ward boundaries for Ward 3 as shown on Exhibits 2 and 3. Section 3. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. EXHIBIT 7 Resolution No. 2019-xx Page 1 of 3 75C-121 LS 9.3.19 More specifically, the proposed annexation will consist of the 24.78-acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, the Class 19 exemption is applicable 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 CEQA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 4. 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. ADOPTED this day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: ! 6'7 � Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor Resolution No. 2019-xx Page 2 of 3 75C-122 LS 9.3.19 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 3 of 3 75C-123 EXHIBIT 1 r: { jaiUrw i U' v i ACV'\S Tustin. 75C-124 5/7/2019 City Council Ward Map I The City of Santa Ana EXHIBIT 2 City of Santa Ana Council Wards N Adopted January 17, 2012 0.0 0.6 1.0 1.5 Miles https:liw .santaana.org/cm/city-muncil-ward-map 7 5 V _ 12 5 H1ao Data. mionms City of Santa Ana Proposed 2020 Council Wards Originally Adopted December 4, 2018 Effective 2020 EXHIBIT 3 x Miles 75C-126 City .. Santa AnaAnnexation Report May15,2019 A—COM Deliv real. r y/r, Geliver�ct. 701127 City of Santa Ana Annexation Economics General Limiting Conditions AECOM devoted the level of effort consistent with (i) the level of diligence ordinarily exercised by competent professionals practicing in the area under the same or similar circumstances, and (ii) consistent with the time and budget available for the Services to develop the Deliverables. The Deliverables are based on estimates, assumptions, Information developed byAECOM from its independent research effort, general knowledge of the Industry, and Information provided by and consultations with Client and Client's representatives. No responsibility is assumed for inaccuracies in data provided by the Client, the Client's representatives, or any third -party data source used in preparing or presenting the Deliverables. AECOM assumes no duty to update the information contained in the Deliverables unless such additional services are separately retained pursuant to a written agreement signed by AECOM and Client. AECOM's findings represent Its professional judgment. NeltherAECOM nor Its parent corporations, nor their respective affiliates or subsidiaries ("AECOM Entities") make any warranty or guarantee, expressed or implied, with respect to any information or methods contained in or used to produce the Deliverables. The Deliverables shall not to be used in conjunction with any public or private offering of securities, debt, equity, or other similar purpose where it may be relied upon to any degree by any person other than the Client. The Deliverables shall not be used for purposes other than those for which they were prepared or for which prior written consent has been obtained from AECOM. Possession of the Deliverables does not carry with it any right of publication or the right to use the name of "AECOM" in any manner without the prior express written consent of AECOM. No party may reference AECOM with regard to any abstract, excerpt or summarization of the Deliverables without the prior written consent of AECOM. AECOM has served solely in the capacity of consultant and has not rendered any expert opinions in connection with the subject matter hereof. Any changes made to the Deliverables, or any use of the Deliverables not specifically identified in the Agreement between the Client and AECOM or otherwise expressly approved in writing byAECOM, shall be at the sole risk of the party making such changes or use. The Deliverables were prepared solely for the use by the Client. No third party may rely on the Deliverables unless expressly authorized byAECOM in writing (including, without limitation, in the form of a formal reliance letter. Any third party expressly authorized byAECOM in writing to rely on the Deliverables may do so only on the Deliverable in its entirety and not on any abstract, excerpt or summary. Entitlement to rely upon the Deliverables is conditioned upon the entitled party accepting full responsibility for such use, strict compliance with this Agreement and not holding AECOM liable in any way for any impacts on the forecasts or the earnings resulting from changes in "external" factors such as changes in government policy, in the pricing of commodities and materials, changes in market conditions, price levels generally, competitive alternatives to the project, the behavior of consumers or competitors and changes in the Client's policies affecting the operation of their projects. The Deliverables may include "forward -looking statements". These statements relate to AECOM's expectations, beliefs, intentions or strategies regarding the future. These statements may be identified by the use of words like "'intend," "may," Ian,"" "project," "will," "should," "seek," and similar "anticipate; "'believe," "estimate," "expect,' y, p p � expressions. The forward -looking statements reflect AECOM's views and assumptions with respect to future events as of the date of the Deliverables and are subject to future economic conditions, and other risks and uncertainties. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, including, without limitation, those discussed in the Deliverables. These factors are beyond AECOM's ability to control or predict. Accordingly, AECOM makes no warranty or representation that any of the projected values or results contained in the Deliverables will actually occur or be achieved. The Deliverables are qualified in their entirety by, and should be considered in light of, these limitations, conditions and considerations. 75C-128 AECOM City of Santa Ana Annexallon Prepared for: City of Santa Ana AECOM 401 West A Street Suite 120 San Diego, CA 92101 aecom.com Copyright © 2019 by AECOM All rights reserved. No part of this copyrighted work may be reproduced, distributed, or transmitted in any form or by any means without the prior written permission of AECOM. 75C-129 AECOM City of Santa Ana Annexation I able of Contents 1. Key Findings... 1.1 Estimated Study Area Net Annual Table 1.2: Estimated Study Area Gem Table 1.3: Estimated Study Area Roat Table 1.4: Estimated Study Area Gent 2. Methodology ............ General Fund ..................................... Property Taxes ................................... Sales Taxes ........................................ Other Taxes ........................................ Expenditures ...................................... RoadFund ......................................... Revenues................ .......................................... ..........................................................................................5 scatImpacts....................................................................................................5 it Fund Net Annual Fiscal Impact .....................................................................6 7und Net Annual Fiscal Impact.........................................................................6 it Fund Net Annual Fiscal Impact from Proposed Land Uses..........................7 .......................................................................................... 7 ........................................................................................................................ 7 .......:................. .................... ..................................... ...................................... 7 ........................................................................................................................ 8 ........................................................................................................................ 8 ........................................................................................................................ 8 ........................................................................................................................ 8 ..._............................................................................................1....................... 8 txpenaitures.................................................................................................................................................................. V Net Annual Fiscal Impact of Proposed Land Uses.........................................................................................................9 Appendix A Detailed Tables for General Fund Revenues and Expenditures ..................10 Table A: Study Area Existing Land Uses Estimated General Fund Property Tax Revenues........................................10 Table B: Study Area Existing Businesses Estimated City of Santa Ana Sales Tax Revenue ....................................... 11 Table C: Estimated Other General Fund Revenue from Annexation Population.......................................................... 11 Table D: Calculated Per Service Population Costs to General Fund...........................................................................12 75C-130 AFC;j City of Santa Ana Annexation Key Findings AECOM performed a fiscal assessment to estimate the net fiscal impacts of providing services to the area that is being proposed for annexation, referred to as the Study Area. The Study Area is roughly 25 acres in size with 49 single-family and 34 multi -family residential units, and an estimated population of 309 residents. There are 3 existing commercial properties in the Study Area with a combined 27,750 square feet of rentable space and approximately 20 businesses. The analysis focused on fiscal impacts to the following City of Santa Ana funds: • General Fund The Special Gas Tax Fund and Measure M (referred to hereafter as the Road Fund) The assessment primarily focuses on the fiscal impacts associated with the existing land uses within the Study Area. However, it is understood that two additional proposed land uses (Chick-Fil-A and In-N-Out) may locate on vacant commercial land within the Study Area so an estimated range of fiscal impact was also calculated separately to provide a more complete overall assessment of the Study Area. Based on our preliminary draft findings, AECOM estimates a General Fund surplus and a Road Fund deficit. The two additional proposed land uses are estimated to result in an increase to the fiscal surplus. Note that these findings are in draft form and are subject to change. All figures for revenues and expenditures are expressed in 2018 dollars. 1.1 Estimated Study Area Net Annual Fiscal Impacts (2018 dollars) Fund Net Fiscal Impact Existing Land Uses General Fund Road Fund $127,000 -$92,000 Total $35,000 Proposed Land Uses* General Fund $60,000 to $94,000 Existing and Proposed Land Uses $95,000 to $129,000 • It is assumed the addition of the proposed land uses would have a negligible effect on road costs and revenues. As a result no Road Fund estimates have been included. Proposed Land Use estimated net fiscal impacts are in addition to the Existing Land Use estimates. Source: AECOM Factors and assumptions utilized to arrive at these estimates were based on reviews of the City of Santa Ana Fiscal Year 18-19 Adopted Budget, Orange County Assessor and Treasurer data, Costar, U.S. Census data, and phone and email correspondence with City staff. A more detailed breakdown of methodology and assumptions is included in the body of the report along with the expanded tables in the Appendix. 75C-131 AECOM City of Santa Ana Annexation Table 1.2: Estimated Study Area General Fund Net Annual Fiscal Impact (2018 dollars)* Cost/Revenue Description Estimated Value Estimated Total Costs to the City General Fund** Sources of Revenue Property Tax Property Tax In Lieu of VLF Property Transfer Tax Sales Tax Measure X(2019-2029) Other Revenue*** Total Estimated General Fund Revi Estimated Net Fiscal General Fund from Annexation $182,000 $62,000 $30,000 $1,000 $66,000 $100,000 $50,000 Annexation $127,000 "Numbers are rounded to the nearest $1,000 throughout and may not sum. •• See Appendix Table D for General Fund cost breakdown and calculations. "* See Appendix Table C for sources and calculations included in 'Other Revenue.' Source: Orange County Treasurer -Tax Collector; City of Santa Ana, California Department of Finance; Costar; AECOM, 2018 Costs to the General Fund were first estimated on a citywide per service population basis, which consists of all residents and half of the employees. These were then adjusted to estimate the marginal and total costs of servicing the total service population of the Study Area. Conservative marginal service cost assumptions based on general fiscal impact practice are detailed in Appendix Table D. Table 1.3: Estimated Study Area Road Fund Net Annual Fiscal Impact (2018 dollars)* Estimated Cost/Revenue Description Value Estimated Total Costs for Road Maintenance $110,000 Road Fund Revenue Sources HUTA** $8,000 RMRA $5,000 Measure M $4,000 Other*** $400 Total Estimated Revenue from Annexation $18,000 Estimated Road Fund Net Fiscal Deficit from Annexation-$92,000 - Numbers are rounded throughout and may not sum. --HUTA includes HUTA 2105, 2106, 2107, 2103 •-*Other includes SBl Loan Repayment and Engineering Cost Allocation Source: City of Santa Ana Adopted Budget 2018-19, AECOM 2018 75C-132 AECOM City of Santa Ana Annexation Road Fund revenues were estimated on a citywide per capita basis and then applied to the Study Area residential population. Road costs were provided by the City of Santa Ana and consist of annual non -replacement preventive maintenance for the 1.63 lane miles of roads within the Study Area. While the General Fund and Road Fund have separate funding sources, City General Funds can be flexibly allocated to address road maintenance. As a result the estimated General Fund net fiscal surplus of the existing and proposed uses within the Study Area could feasibly be allocated to cover a portion of the estimated Road Fund net fiscal deficit. Table 1.4: Estimated Study Area General Fund Net Annual Fiscal Impact from Proposed Land Uses (2018 dollars) Cost/Revenue Description Low High Estimated Total Costs to the City General Fund $91000 $9,000 Sources of Revenue Property Tax $2,000 $4,000 Property Tax In Lieu of VLF $1,000 $2,000 Property Transfer Tax $100 $100 Sales Tax (Including Measure X) $64,000 $95,000 Other Revenue $2,000 $2,000 Total Estimated Revenue from Annexation $69,000 $103,000 Estimated Net Fiscal Surplus from Annexation $60,000 $94,000 'Low and High estimates are based on comparisons of assessed property value and estimated sales per square foot for Chic- Fil-A and In-n-Out in Santa Ana and Orange County. • See Appendix Table D for General Fund cost breakdown and calculations. -See Appendix Table C for sources and calculations included in 'Other Revenue.' Source: Orange CountyTmasurer-Tax Collector, City of Santa Ana, California Department of Finance, Costar AECOM, 201R 2. Methodology General Fund Property Taxes The total assessed value of all properties in the Study Area for the 2017 tax year was approximately $26 million, including values for both land and improvements. According to California state law, 1 % of this total value will be paid in property taxes to be allocated to various government agencies, school districts, and other funds. The Master Property Tax Transfer Agreement between the City of Santa Ana and the County of Orange dictates that 24% of property tax revenue will be allocated to the City of Santa Ana's General Fund. If a new City TRA were established that had a different allocation rate, these assumptions would have to be adapted upwards or downwards depending on the new rate. Under the assumed TRA the City of Santa Ana General Fund can anticipate an increase of approximately $62,000 in property taxes as a result of the annexation of the Study Area. Since 2004, the California State Legislature has compensated cities and counties for the state-wkte reduction in Vehicle License Fees (VLF) with a like amount of property taxes, known as Property Taxes in Lieu of VLF. This allocation increases annually in proportion to the growth in both the gross assessed property valuation and the relative population in that city or county. Taking into account the estimated population growth as a result of the annexation of the Study Area, Property Taxes in Lieu of VLF are estimated to increase by approximately $30,000. 75C-133 AECOM City of Santa Ana Annexation Property Transfer Taxes are also collected in the state of California whenever a property is sold, amounting to 550 per $1,000 of assessed value to be divided between the city and the county. Based on the assumption of a 5% annual property turnover rate, the City of Santa Ana can anticipate gathering approximately $1,400 from the sale of property. The amount of Property Transfer Tax actually received will depend on the sale of properties in a given year, which is subject to an upward or downward adjustment based on recorded transactions. (Table A) Sales Taxes The minimum statewide sales tax for California is 7.25%, and the City of Santa Ana General Fund receives 1 % of the purchase price for all sales in the city (the additional 0.5% rate levied for Measure M to fund transportation projects received by the City is accounted for in the revenues for the Road Fund). The Orange County Treasurer -Tax Collector estimates that there are approximately 27,750 square feet of rentable commercial space on 3 separate properties in the Study Area. Current occupants include food and beverage establishments, merchandise retail, professional offices, and other service providers. There are approximately 20 sales tax generating businesses in the Study Area. AECOM estimated total employees and sales per square foot of occupied commercial space based on regional trends and recent studies on business patterns (eMarketer 2018, Baker Tilly Restaurant Benchmarking 2017, AECOM 2018). In November of 2018, Santa Ana voters approved Measure X (City of Santa Ana Ordinance No. NS-2952) authorizing a citywide sales tax of 1.5% to be collected for 10 years beginning in the first quarter of 2019 (dropping to 1 % from 2029 to 2039). The revenue from this transactions and use tax will be fund general city services and address the City's structural deficit. The City of Santa Ana General Fund can anticipate an increase of approximately $166,000 in sales taxes from annexation of the Study Area. This estimate depends on actual sales for businesses and will change depending on the mix of future tenants and industries that occupy the retail and office space. (Table B) Other Taxes Other sources of revenue are expected to increase as the result of the annexation of the Study Area, including business permits, licenses and inspections, franchise fees, fines and forfeitures, and intergovernmental transfers. The increase to the City of Santa Ana's General Fund was estimated on a per service population basis and amounts to an approximate increase of $50,000. (Table C) Expenditures AECOM estimated the expenditures for services administered by the City of Santa Ana on a per service population basis and applied the costs of extending these services to the service population of the Study Area. Based on data from recent fiscal analyses in Southern California, percentages of the marginal cost burden for extending services to additional residents and employees were assigned by category. Again, it should be noted that actual marginal costs per service population can vary significantly by city and lower marginal costs would reduce overall service costs and reduce the estimated overall net fiscal deficit. The total estimated City cost to serve the Study Area is t $182,000 (Table D) Road Fund Revenues The federal government and the state of California impose direct and indirect taxes on the sale of gasoline and other fuels and the registration of motor vehicles with allocations dedicated to transportation purposes. A portion of these funds are redistributed to counties and cities in California, primarily through the Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account (RMRA). HUTA includes several sections (2105, 2106, 2107, 2103) with specific apportionments to diverse transportation related purposes and an apportionment to cities based on population. RMRA also allocates funds to state and regional projects with the remainder divided between the state highway account and local apportionments, 50% of which go to counties based on the number of registered vehicles and 50% of which go to cities based on population. Based on the estimated increase in population from the 75C-134 0.ECOM City of Santa Ana Annexation annexation of the Study Area, the City of Santa Ana Road Fund will likely receive an additional $8,000 from HUTA allocations and $5.000 from RMRA allocations. Since 1990, Orange County voters have repeatedly approved a half -cent sales tax to generate funds for the improvement of the country's transportation system, known as Measure M. The Orange County Transportation Authority (OCTA) allocates funds to cities based on a Fairshare formula based on the ratios of population, Master Plan Arterial Highways centerline miles, and their share of total taxable Orange County sales. Additional revenues generated for the City of Santa Ana Road Fund from Measure M allocations as the result of the annexation of the Study Area are estimated to be approximately $4,000. Other revenues include repayment from the SB1 Loan and an Engineering Cost Allocation, contributing an estimated $400 to the additional revenues for the city of Santa Ana Road Fund as a result of the annexation of the Study Area. Expenditures The Study Area contains approximately 1.63 lane miles. City staff estimate the annual Study Area road maintenance casts will be approximately $110,000. Net Annual Fiscal Impact of Proposed Land Uses There are two additional land uses (Chic-Fil-A and In-N-Out) that have been proposed for the currently vacant commercial lots at the intersection of Tustin Avenue and 171" St. The proposed developments, if completed, would result in additional General Fund costs and revenues, including additional service costs and property tax, sales tax, and other revenues associated with fees, licenses, and permits. AECOM estimated additional costs based on the _ additional service population of the businesses, in this Case made up entirely of new employees. Property and sales taxes were estimated based on comparisons of taxable sales and assessed property values of other Chic-Fil-A and In-N-Out Burger establishments in Santa Ana and surrounding cities. AECOM estimates an increase in the net fiscal surplus of between $60,000-$94,000 for the City of Santa Ana General Fund as the result of the annexation of the Study Area and the development of these proposed land uses. 75C-135 A Oily of Santa Ana Annexation Appendix A Detailed Tables for General Fund Revenues and Expenditures Table A: Study Area Existing Land Uses Estimated General Fund Property Tax Revenues (2018 dollars) Estimated Total Assessed Assessed Property Values Value Residential $24,630,000 Retail $1,392,000 Total Assessed Value $26,021,000 Property Transfer Tax Revenue Assumption Total Assessed Value $26,021,000 Property Transfer Tax ($0.275 per $500) $14,000 Annual Property Transfer Tax (5% of total) $1,400 Property Tax Revenue Allocation Assumption Total Improved Value $26,021,000 1% Property Tax Allocation $260,000 % of Property Tax Distributed to City of Santa Ana General Fund* 24% Net Increase in Property Tax Revenue $62,000 % of City of Santa Ana in Lieu of Vehicle License Fee (VLF)** 11.5% Net Increase of In Lieu of VLF to the City of Santa Ana $30,000 Annual Combined Property Transfer Tax and Property Tax Allocation to the City of Santa Ana $93,000 'Tax Rate is In accordance with Master Property Tax Transfer Agreement between Santa Ana and Orange County *-Tax ratio is based on per capita estimated 2018 City of Santa Ana Property Tax In Lieu of VLF revenues Source: Orange County Treasurer -Tax Collector 2018 AECOM, 2018 75C-136 AECOM City of Santa Ana Annexation Table B: Study Area Existing Businesses Estimated City of Santa Ana Sales Tax Revenue (2018 dollars) Description Value Estimated Sales Tax Collected by the Businesses'' $ 163,000 Employees 105 Total Estimated Annual Taxable Sales from On -site Employees $136,000 Local Sales Tax (including Measure X) 2.5% Estimated Annual Sales Tax Revenue by On -site Employees" $3,413 Total Sales Tax $ 166,000 -Based on estimates of sales per square foot of retail/office category "Assumes; 50%On-Site Employees spend $10 per day of work (260 days per year) Source: Orange County Treasurer -Tax Collector, Costar, AECOM, 2018 Table C: Estimated Other General Fund Revenue from Annexation Population (2018 dollars) Other General Fund Revenue Sources' Pro Rata Share" Estimated Revenue— Business Licenses $35.48 $12,800 Fees, Permits, and Other Charges Fines, Forfeitures and Penalties Intergovernmental Estimated Total of other Revenue $66.38 $24,000 $18.03 $6,500 $18.08 $6,500 137.87 S50.000 "General Fund revenue sources identified here are believed to have a reasonable relationship with population change. "Pro rata shares calculated using City of Santa Ana 2018-19 Adopted Budget and estimated 2018 population (California Department of Finance). """ Estimated Revenue = Pro Rata Share x Estimated Source: City of Santa Ana, 2018; California Department of Finance, 2018 AECOM, 2018 75C-137 City of Santa Ana Annexation Table D: Calculated Per Service Population Costs to General Fund (2018 dollars) City Cost per Burden of Cost for City of Santa Service New Service Department Ana Budget Population Population Police $130,482,534 $310.16 80% $248.12 Fire $52,129,291 $123.91 80% $99.13 Planning and Building $12,054,462 $28.65 60% $17.19 Finance and Management Services $5,894,409 $14.01 60% $8.41 City Manager's Office $6,042,104 $14.36 40% $5.74 City Attorney's Office $3,070,448 $7.30 40% $2.92 Clerk of the Council's Office $1,648,822 $3.92 40% $1.57 100 Public Works Agency $8,166,538 $19.41 % $19.41 Community Development Agency $980,107 $2.33 60% $1.40 Human Resources $1,766,698 $4.20 40% $1.68 100 Parks, Recreation, Community Services $21,173,178 $50.33 % $50.33 Bower's Museum $1,476,130 $3.51 40% $1.40 100 Transfer to Project Funds $12,306,584 $29.25 % $29.25 100 Total Cannabis Program $7,369,778 $17.52 % $17.52 Total Budgeted Expenditures $264,561,083 Total Pro Rata Cost per Service Population $504 Total Cost of New Service to Annexed Population $182,000 Source: Santa Ana FY2018-19 Adopted Budget; AECOM, 2018 75C-138 ,1,1�1'11