HomeMy WebLinkAbout2022-09-20 Special Closed Session and RegularMinutes of the Special Closed Session and
Regular Meeting of the City Council
City of Santa Ana, California
September 20, 2022
SPECIAL CLOSED SESSION MEETING - 4:00 P.M.
REGULAR OPEN MEETING - 5:45 P.M.
(Immediately following the Closed Session
Meeting)
CITY COUNCIL CHAMBER
22 Civic Center Plaza Santa Ana, CA 92701
SPECIAL CLOSED SESSION
CALL TO ORDER
ATTENDANCE Council Members Johnathan Ryan Hernandez
Mayor Pro Tem
Mayor
City Manager
City Attorney
Acting Clerk of the
Council
Jessie Lopez
Nelida Mendoza
David Penaloza
Thai Viet Phan
Phil Bacerra
Vicente Sarmiento
Kristine Ridge
Sonia R.Carvalho
Norma Orozco
MINUTES: Mayor Sarmiento called the Special Closed Session meeting to order at
4:08 P.M.
CITY COUNCIL 1 SEPTEMBER 20, 2022
ROLL CALL
MINUTES: Acting Clerk of the Council Norma Orozco conducted roll
Call. Councilmember Hernandez joined the meeting at 4:15 P.M. and
Councilmember Penaloza joined the meeting at 4:17 P.M.
Councilmembers Hernandez, Lopez, Phan, Mayor Pro Tem Bacerra, and Mayor
Sarmiento were present in person. Councilmember Mendoza and Councilmember
Penaloza attended via teleconference.
CLOSED SESSION ITEMS — The Brown Act permits legislative bodies to discuss
certain matters without members of the public present. The City Council finds,
based on advice from the City Attorney, that discussion in open session of the
following matters will prejudice the position of the City in existing and anticipated
litigation:
1. CONFERENCE WITH LEGAL COUNSEL— PENDING LITIGATION
pursuant to Paragraph (4) of subdivision (d) of Section 54956.9 of the
Government Code:
A. Robert Anthony Sanchez v. City of Santa Ana, Zachary Jezulin, et al., Orange
County Superior Court Case No. 30-2020-01159214-CU-PA-NJC
CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code
Section 54957.6(a):
Agency Negotiators: Human Resources Executive Director, Jason
Motsick Employee Organizations:
• Santa Ana Police Officers Association (POA)
• Santa Ana Police Management Association (PMA)
• Service Employees' International Union (SEIU) Full -Time
• Employees Service Employees' International Union (SEIU)
Part -Time Non -Civil Service Employees
• Confidential Association of Santa Ana
• (CASA) Santa Ana Management
Association (SAMA)
3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to
Government Code Section 54957
Title: City Attorney and City Manager
PUBLIC EMPLOYEE EMPLOYMENT/APPOINTMENT pursuant to
Government Code 54957
Title: Clerk of the Council, Acting Clerk of the Council, or Interim Clerk of the
CITY COUNCIL 2 SEPTEMBER 20, 2022
CLOSED SESSION REPORT— The City Attorney will report on any action(s) to be
taken at the Regular Open Session which will begin immediately following the Closed
Session.
RECESS — City Council will recess to Closed Session for the purpose of conducting
regular City business.
MINUTES: Mayor Sarmiento recessed to consider item(s) on the Special Closed
Session Agenda at 4:10 P.M.
RECONVENE — City Council will reconvene to continue regular City business.
CITY COUNCIL REGULAR OPEN SESSION
CALL TO ORDER
MINUTES: Mayor Sarmiento called the Regular Open Session to order at 6:00 P.M.
ROLL CALL
MINUTES: Acting Clerk of the Council Norma Orozco conducted roll call, all
members were present. Councilmember Hernandez, Councilmember Lopez,
Councilmember Phan, Mayor Pro Tem Bacerra, and Mayor Sarmiento were
present in person. Councilmember Mendoza and Councilmember Penaloza
attended via teleconference.
PLEDGE OF ALLEGIANCE Mayor Sarmiento
MINUTES: Mayor Pro Tem Bacerra led the Pledge of Allegiance.
WORDS OF INSPIRATION Miguel Hemandez
CEREMONIAL PRESENTATIONS
Certificates of Recognition presented by Mayor Sarmiento to the Santa Ana
Unified School District Speech and Debate Team for Exemplary Academic
Achievements.
Proclamation presented by Councilmember Hernandez declaring September
28, 2022 as a Day to Remember Victims of Police Violence.
3. Certificate of Recognition presented by Councilmember Lopez to the Bicycle
Tree for Outstanding Contributions to the Community.
4. Certificates of Recognition presented by Councilmember Mendoza to Denise
Naranjo and Manny Ruelas for Outstanding Contributions to the Community.
CITY COUNCIL 3 SEPTEMBER 20, 2022
STAFF PRESENTATIONS
5. Homelessness Update
MINUTES: Assistant City Manager Steven Mendoza provided a brief
presentation of the following;
• Quality of Life Team
• Homeless Navigation Center update
• Transitioning from homeless to housed in Santa Ana
CLOSED SESSION REPORT— The City Attorney will report on any action(s) from
Closed Session.
MINUTES: City Attorney Sonia Carvalho stated there was no reportable action.
Additionally, the Public Employee Evaluation for the City Manager and City
Attorney was postponed, pending City Manager Kristine Ridge's return.
PUBLIC COMMENT — Public comments will be held during the beginning of the
meeting for ALL comments on agenda and non -agenda items, except for public
hearings. Comments for public hearings will take place after the hearing is opened.
MINUTES: Fernando Delgado spoke in opposition to Item 21 and provided
various other comments.
Hector Bustos spoke in opposition to Item 21.
Jackie Barnett spoke in opposition to Item 21 and Lexipol's policies.
Victor Mendez spoke regarding police violence and accountability for all Santa
Ana employees.
Deanna Sullivan spoke in opposition to Item 21 and provided comments
regarding her personal experience with police policy.
Sam Sullivan spoke in opposition to Item 21 and police accountability.
The following speakers addressed Council via teleconference:
Jennifer Rojas, policy advocate and organizer with the American Civil Liberties
Union Southern California, spoke in opposition to Item 21.
Benjamin Vasquez spoke regarding police accountability and in opposition to Item
21.
CITY COUNCIL 4 SEPTEMBER 20, 2022
CONSENTCALENDAR
RECOMMENDED ACTION: Approve staff recommendations on the
following Consent Calendar Items: 6 through 24.
MINUTES: Item 12 was pulled by Mayor Pro Tem Bacerra and Item 21 was pulled
by Councilmember Hernandez for separate discussion and consideration.
Consent Calendar Moved by Councilmember Hernandez, seconded by
Councilmember Lopez to approve Consent Calendar Items 6 through 24 with
the exception of Items 12 and 21.
YES: 6 — Councilmember Hernandez, — Councilmember Lopez, — Councilmember
Mendoza, — Councilmember Phan, — Mayor Pro Tem Bacerra, — Mayor Sarmiento
NO: 0
ABSTAIN: 0
ABSENT: 1 — Councilmember Penaloza
Status: 6-0-0— 1 —Pass
At 10:49 P.M. Councilmember Penaloza requested to reconsider the Consent
Calendar.
Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Phan to
reconsider Consent Calendar Items 6 through 24 with the exception of Items
12 and 21.
YES: 4 — Councilmember Lopez, — Councilmember Mendoza, — Councilmember
Phan, — Mayor Pro Tem Bacerra, — Sarmiento, Mayor
NO: 0
ABSTAIN: 1 —Penaloza, Councilmember
ABSENT: 1 — Hernandez, Councilmember
Status: 4 — 0 — 1 —1 —Pass
Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Phan to
approve Consent Calendar Items 6 through 24 with the exception of Items 12
and 21.
YES: 7 — Councilmember Hernandez, — Councilmember Lopez, — Councilmember
Mendoza, — Councilmember Penaloza, — Councilmember Phan, — Mayor Pro Tem
Bacerra, — Mayor Sarmiento
NO: 0
ABSTAIN: 0
ABSENT:0
Status: 7-0— 0— 0— Pass
CITY COUNCIL 5 SEPTEMBER 20, 2022
6. Excused Absences
Department(s): Clerk of the Council Office
Recommended Action: Excuse the absent members.
Orange County Grand Jury's Investigative Report, Findings, and
Recommendations regarding Lack of California Redemption Value (CRV)
Centers
Department(s): Public Works Agency
Recommended Action: Receive and file the Orange County Grand Jury's
investigative report, findings, and recommendations regarding Orange County
CRV Centers and authorize the City Manager to deliver the City's response to
the findings and recommendations to the Presiding Judge of the Superior
Court.
8. Orange County Grand Jury's Investigative Report, Findings and
Recommendations Regarding "Water in Orange County Needs One Voice"
Department(s): Public Works Agency
Recommended Action: Receive and file the Orange County Grand Jury's
report, findings and recommendations regarding wholesale water policy and
operations in Orange County needing "One Voice" and authorize the City
Manager to deliver the City's response to the findings and recommendations
to the Presiding Judge of the Superior Court.
9. Approve Appropriation Adjustment to Carryover Unspent Amounts From Fiscal
Year 2021-22 to Fiscal Year 2022-23
Department(s): Finance and Management Services
Recommended Action: 1. Approve an Appropriation Adjustment to reduce the
FY 2021-22 budget for unspent amounts to be carried over to FY 2022-23.
(Requires five affirmative votes)
2. Approve an Appropriation Adjustment to increase the FY 2022-23 budget for
amounts carried forward from FY 2021-22. (Requires five affirmative votes)
10. Approve Additional Contingency Funds in the Amount of $5,000,000 for an
Existing Construction Contract with Byrom -Davey Inc. for the Santa Anita Park
Improvements including New Synthetic Soccer Field and Community Center
Renovations with an Estimated Project Delivery Cost of $14,513,011.30
(Project No. 19-7527) (Non- General Fund) (Revive Santa Ana Program)
Department(s): Public Works Agency
CITY COUNCIL 6 SEPTEMBER 20, 2022
Recommended Action: 1. Approve an amendment to the Project Cost
Analysis in the amount of $5,000,000 in additional contingency funds for a total
estimated construction delivery cost of $14,513,011.30, which includes
$7,317,701.00 for the construction contract; $731,770.10 for contract
administration, inspection and testing; and a $6,463,540.20 project contingency
for unanticipated or unforeseen work, subject to non -substantive changes
approved by the City Manager and City Attorney.
2. Approve an amendment to the Fiscal Year 2022-23 Capital Improvement
Program to include $5,000,000 in construction funds for Santa Anita Park
Improvements and New Synthetic Soccer Field (Project No. 19-7527).
11. Approve an Appropriation Adjustment, Approve an Amendment to the FY
2022-23 Capital Improvement Program, and Award a Construction Contract to
EBS General Engineering, Inc. in the Amount of $1,066,714.35 for the Flower
Street Bike Trail Renovation from Crossover (South of Dyer) to Warner
Avenue Project, with an Estimated Project Delivery Cost of $1,386,728.65
(Project No. 21-2740) (Non- General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Approve an appropriation adjustment to recognize
$497,925.15 of prior year fund balance in the Park Acquisition and
Development (District 3), Prior Year Carryforward revenue account and
appropriate the same amount to the Park Acquisition and Development (District
3), Improvements Other Than Building expenditure account. (Requires five
affirmative votes)
2. Approve an amendment to the FY 2022-23 Capital Improvement Program to
include $497,925.15 in construction funds for the Flower Street Bike Trail
Renovation from Crossover (South of Dyer) to Warner Avenue Project (Project
No. 21-2740).
3. Award a construction contract to EBS General Engineering, Inc., the lowest
responsible bidder, in accordance with the base bid in the amount of
$1,066,714.35, for construction of the Flower Street Bike Trail Renovation from
Crossover (South of Dyer) to Warner Avenue Project, for the term beginning
September 20, 2022, and ending upon project completion; and authorize the
City Manager to execute the contract subject to non -substantive changes
approved by the City Manager and the City Attorney.
4. Approve the Project Cost Analysis for a total estimated construction delivery
cost of
$1,386,728.65, which includes $1,066,714.35 for the construction contract,
$160,007.15 for contract administration, inspection and testing, and a
$160,007.15 project contingency for unanticipated or unforeseen work.
CITY COUNCIL 7 SEPTEMBER 20, 2022
12. Approve an Appropriation Adjustment and Award a Construction Contract
to Environmental Construction, Inc. for the Well No. 29 Improvements
Project in the Amount of $6,765,290, with an Estimated Project Delivery
Cost of $8,456,612 (Project No. 18-6491) (Non -General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Approve an appropriation adjustment to recognize
$2,502,612 of prior -year fund balance in the Water Fund, Public Works Water
Revenue, Prior Year Carryforward revenue account and appropriate the same
amount to the Acquisition & Construction, Water Utility Capital Projects, Water
Capital Project expenditure account. (Requires five affirmative votes)
2. Award a construction contract to Environmental Construction Inc., the lowest
responsible bidder, in accordance with the base bid in the amount of
$6,765,290, for construction of the Well No. 29 Improvements Project, for the
term beginning September 20, 2022, and ending upon project completion, and
authorize the City Manager to execute the contract subject to non -substantive
changes approved by the City Manager and the City Attorney.
3. Approve the Project Cost Analysis for a total estimated construction delivery
cost of $8,456,612, which includes $6,765,290 for the construction contract,
$676,529 for contract administration, inspection and testing, and a $1,014,793
project contingency for unanticipated or unforeseen work.
4. Approve an amendment to the FY 2022-23 Capital Improvement
Program to include $2,502,612 in construction funds for the Well No. 29
Improvement Project (Project No. 18-6491).
Moved by Mayor Pro Tern Bacerra, seconded by Councilmember
Hernandez to approve recommended action.
YES: 6 — Councilmember Hernandez, — Councilmember Lopez, —
Councilmember Mendoza, — Councilmember Phan, — Mayor Pro Tern
Bacerra, — Mayor Sarmiento
NO: 0
ABSTAIN: 0
ABSENT: 1 — Councilmember Penaloza
Status: 6-0-0— 1 —Pass
13. Approve an Appropriation Adjustment and Agreement for the Sale of Land from
the City, Generating $250,000 in Revenue for Bristol Street Corridor
Improvement Project (Non -General Fund)
Department(s): Public Works Agency
CITY COUNCIL 8 SEPTEMBER 20, 2022
Recommended Action: 1. Approve an appropriation adjustment recognizing
revenue in the amount of $250,000 in the Select Street Construction Fund, Sale
of Land revenue account for Fiscal Year 2022-23 and appropriating the same
to the OCTA Bristol Street Corridor Improvements, Improvements Other Than
Building expenditure account. (Requires five affirmative votes)
2. Authorize the City Manager to execute a purchase and sale agreement with
Charles H. Mahn Family Trust for the sale of City -owned property located at 515
and 517 N Bristol Street (APNs 008-081-26 and 008-081-28) in the amount of
$250,000, subject to non -substantive changes approved by the City Manager
and the City Attorney (Agreement No. 2022-179).
14. Award a Construction Contract to Meyers Construction Co. in the amount of
$1,930,000 for the Santa Ana City Hall Second, Fifth, and Eighth Floor Tenant
Improvement FY 2021-22 Project with an Estimated Project Delivery Cost of
$2,512,500 (Project No. 22-1201, 21-2750 & 22-0501) (General and
Non -General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Award a construction contract to Meyers
Construction Co., the lowest responsible bidder, in accordance with the base
bid in the amount of $1,930,000 for construction of the Santa Ana City Hall
Second, Fifth, and Eighth Floor Tenant Improvement FY 2021-22, for the term
beginning September 20, 2022 and ending upon project completion, and
authorize the City Manager to execute the contract subject to non -substantive
changes approved by the City Manager and the City Attorney.
2. Approve the Project Cost Analysis for a total estimated construction delivery
cost of $2,512,500, which includes $1,930,000 for the construction contract,
$193,000 for contract administration, inspection and testing, and a $389,500
project contingency for unanticipated or unforeseen work.
3. Approve an amendment to the Fiscal Year 2021-22 Capital Improvement
Program to include $2,512,500 in construction funds for Santa Ana City Hall
Second and Fifth Floor Tenant Improvement Project (No. 22-1201, 21-2750 &
22-0501).
15. Amend Agreement with Valley Maintenance Corporation for Custodial Services
of City Park Restrooms and Park Buildings, Increasing the Annual amount by
$200,000, Not to Exceed $694,095 for Four Years, and Total Agreement
Amount of $1,976,380 (General Fund)
Department(s): Public Works Agency
CITY COUNCIL 9 SEPTEMBER 20, 2022
Recommended Action: Authorize the City Manager to execute an amendment
to the agreement with Valley Maintenance Corporation to increase custodial
services of City Park Restrooms, and Park Buildings for an annual amount not
to exceed $694,095, for the remaining term from September 20, 2022 through
May 3, 2026, and a total agreement amount of $1,976,380, subject to
non -substantive changes approved by the City Manager and the City Attorney
(Agreement No. 2022-180).
16. Amend Agreement with Landscape West Management Services Inc. to
Increase the Annual Contract amount by $215,000 for Enhanced Landscape
Maintenance Services for the Remaining Term of the Agreement (General
Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an amendment
to the agreement with Landscape West Management Services Inc. for increased
landscape maintenance services, increasing the compensation amount annually
by $215,000, for an annual amount not to exceed $895,819.00 for the remaining
term from September 20, 2022 through January 31, 2024, and not to exceed the
total agreement amount of $2,866,605.60, subject to non -substantive changes
approved by the City Manager and the City Attorney (Agreement No. 2022-181)
17. Approve an Agreement with PlaceWorks, Inc. for Design Services for a New
Outdoor Library at Jerome Park in an Amount Not to Exceed $309,150 for a
Three -Year Term (Project No. 22-1381) (Non -General Fund) (Revive Santa
Ana Program)
Department(s): Public Works Agency, Library
Recommended Action: Authorize the City Manager to execute an agreement
with PlaceWorks, Inc. for full Design Services for Santa Ana's New Outdoor
Library at Jerome Park in the amount of $281,046 with a contingency of
$28,104 for a total amount not -to -exceed $309,150. The agreement is for a
three-year term beginning September 20, 2022 and expiring September 19,
2025, with an option for two, one- year extensions, subject to non -substantive
changes approved by the City Manager and the City Attorney (Agreement No.
2022-182).
18. Authorize an Offer and Agreement to Purchase in the Amount of $255,000 for
Bridge and Roadway Easement for Fairview Bridge Replacement and Street
Improvements (Property Owner: Orange County Flood Control District) (Project
No. 15-6827) (Non- General Fund)
Department(s): Public Works Agency
CITY COUNCIL 10 SEPTEMBER 20, 2022
Recommended Action: Authorize the City Manager to execute a purchase
agreement with property owner of Orange County Flood Control District
(OCFCD) for the easement purchase located at Fairview Street Bridge over
Santa Ana River in the amount of $255,000, subject to non -substantive
changes approved by the City Manager and the City Attorney (Agreement No.
2022-183).
19. Approve a License Agreement with the County of Orange for use of Ross
Street Right -of Way for Building Overhangs
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a license
agreement with the County of Orange, a political subdivision of the State of
California, for use of public right-of-way to accommodate overhangs for two
County buildings within Ross Street between Santa Ana Boulevard and Civic
Center Drive, subject to non- substantive changes approved by the City
Manager and the City Attorney (Agreement No. 2022-184).
20. Approve Agreements with Townsend Public Affairs, Inc., Engineering Solutions
Services, Inc., and MNS Engineers, Inc. for On -Call Grant Writing Services for a
Total Amount Not to Exceed $2,375,000 for up to a Five -Year Term (General
and Non- General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements
with Townsend Public Affairs, Inc., Engineering Solutions Services, Inc., and
MNS Engineers, Inc. to provide on -call grant writing and grant management
services, for a three-year period beginning September 20, 2022 and expiring
September 19, 2025, with provisions for one, two-year renewal period
exercisable by the City Manager and City Attorney, with a shared aggregate
amount not to exceed of $2,375,000 subject to non -substantive changes
approved by the City Manager and the City Attorney (Core Agreement No.
2022-185).
21. Approve Agreement with Lexipol, LLC to Provide Policy Manual
Maintenance and Support (General and Non -General Fund)
Department(s): Police Department
Recommended Action: Authorize the City Manager to execute an agreement
with Lexipol, LLC to provide policy manual maintenance, support and training
services to the Police Department for a three-year period, from July 1, 2022
through September 30, 2025 in an amount not to exceed $169,502, subject to
non -substantive changes approved by the City Manager and City Attorney
(Agreement No. 2022-XXX).
CITY COUNCIL 11 SEPTEMBER 20, 2022
Moved by Councilmember Hernandez, seconded by Mayor Sarmiento to
Continue the Item for 30 days to include alternatives and community
input.
YES: 7 — Councilmember Hernandez, — Councilmember Lopez, —
Councilmember Mendoza, — Councilmember Penaloza, — Councilmember
Phan, — Mayor Pro Tern Bacerra, — Mayor Sarmiento
NO: 0
ABSTAIN: 0
ABSENT:0
Status: 7 — 0-0— 0— Pass
MINUTES: Councilmember Hernandez spoke in opposition to the Item and
moved to have the item considered by the Police Oversight Commission.
Motion died for lack of a second.
City Attorney Sonia Carvalho stated that if her office is tasked to review a
policy, the policy would be shared with the Council and public and posted on
the City's website.
Mayor Pro Tem Bacerra moved to approve the item, with the contingency
that the agreement only be extended for a year. Motion died for lack of a
second.
Councilmember Hernandez moved to revisit the Item within 30 days to
include alternatives and community input, seconded by Mayor
Sarmiento.
22. Approve Agreement with Smart Communications Holdings, Inc. to Provide
Inmate Communication and Digital Services (Non -General Fund)
Department(s): Police Department
Recommended Action: Authorize the City Manager to execute an agreement
with Smart Communications Holdings, Inc. to provide inmate communication
and digital services to the Santa Ana Jail for a five-year period, from
November 1, 2022 through October 31, 2027, with an option for two, one-year
extensions, in the amount of
$650,000, subject to non -substantive changes approved by the City Manager
and City Attorney (Agreement No. 2022-186).
23. Approve Agreement with California Forensic Medical Group, Inc. and
Wellpath to Provide Inmate Medical Services for the Santa Ana Jail
(General Fund)
Department(s): Police Department
CITY COUNCIL 12 SEPTEMBER 20, 2022
Recommended Action: Authorize the City Manager to execute an agreement
with California Forensic Medical Group, Inc. and Wellpath to provide basic and
emergency inmate health care services for the Santa Ana Jail in an amount not
to exceed
$10,070,246 including a $200,000 contingency, for a three-year period
beginning October 1, 2022 through September 30, 2025, with an option for
two, one-year extensions, subject to non -substantive changes approved by
the City Manager and City Attorney (Agreement No. 2022-187).
24. Biennial Review Conflict of Interest Code Policy, List of Designatec
Classifications Required to Annual Disclosure Form (Statement of
Economic Interests Form)
Department(s): Clerk of the Council Office
Recommended Action: Resolution No. 2022-075 —Adopt a resolution
amending the City of Santa Ana Conflict of Interest Code Policy
**END OF CONSENT CALENDAR**
PUBLIC HEARINGS
PUBLIC COMMENTS — Members of the public may address the City Council on
each of the Public Hearing items.
25. Public Hearing - Ordinance Amendment No. 2022-01 to Update Chapters 18,
21, and 40 of the Santa Ana Municipal Code Addressing Medicinal Cannabis
Retail, Consumption Lounges and Temporary Events, Measure BB Waitlist
Termination, Retail Facility Relocation, Commercial Cannabis Eligible
Areas, Commercial Cannabis Tax Rate Reductions for Commercial
Cannabis Cultivation, Distribution,
and Manufacturing, and Adopt Language Addressing Proposed Tax
Treatment of Microbusinesses and Shared Manufacturing, and Make
Other Administrative Amendments of a Complimentary Nature
Public notice published in the Orange County Reporter on September 9, 2022.
Department(s): Planning and Building Agency
Recommended Action: 1. Approve first reading of an ordinance
amending Chapters 18, 21, and 40 of the Santa Ana Municipal Code
addressing medicinal cannabis retail, consumption lounges and temporary
events, Measure BB Waitlist termination, retail facility relocation,
commercial cannabis eligible areas, commercial cannabis tax rate
reductions for commercial cannabis cultivation, distribution, and
manufacturing, and adopt language addressing proposed tax treatment of
microbusinesses and shared manufacturing, and make other
administrative amendments of a complimentary nature.
CITY COUNCIL 13 SEPTEMBER 20, 2022
2. Resolution No. 2022-XXX —Adopt a resolution modifying various
non -retail commercial cannabis tax rates.
3. Resolution No. 2022-XXX — Adopt a resolution establishing a map of
commercial cannabis eligible areas in the City.
Moved by Mayor Sarmiento, seconded by Councilmember Lopez to
approve staff's recommendations and include the following amendments:
no additional licenses shall be granted and an additional 2 percent (2%)
tax reduction opt -in program for businesses that comply with the
community standards set forth by United Food and Commercial Workers.
YES: 7 — Councilmember Hernandez, — Councilmember Lopez, —
Councilmember Mendoza, — Councilmember Penaloza, — Councilmember Phan,
— Mayor Pro Tern Bacerra, — Mayor Sarmiento
NO: 0
ABSTAIN: 0
ABSENT:0
Status: 7 — 0-0— 0— Pass
MINUTES: Mayor Sarmiento opened the Public Hearing at 8:14 P.M.
Director of the Planning and Building Agency, Mihn Thai, provided a brief
presentation.
Avery Wilson spoke on Item 25 and the benefits of medicinal cannabis.
Ray Iskander spoke in support of Item 25 and stated that his company has
already seen positive improvements with the ordinance amendments.
Jonathan Garcia spoke on Item 25 and the need for more permit availability for
consumption lounges.
Francisco Zavala spoke in support of Item 25 and the retail cannabis tax rate
decrease.
Laura Muller spoke on Item 25 and requested Council decrease the retail
cannabis tax rate.
Sabrina Eilert spoke regarding Item 25 and in support of a lower retail cannabis
tax rate.
Hairo Cortes spoke on Item 25 and in support of the United Food and
CITY COUNCIL 14 SEPTEMBER 20, 2022
Commercial Workers' proposal to decrease the cannabis retail tax.
Maria Morales spoke regarding Item 25; in support of a lower retail tax, benefits
for cannabis retail employees, and her own positive experiences with
cannabis.
Alexis Medina spoke regarding Item 25 and in support of a lower cannabis retail
tax.
Anthony Medina spoke regarding Item 25 and the health benefits he has
experienced using from cannabis use.
Sandra Medina spoke regarding Item 25 and the effect high sales tax rates can
affect the cost of living.
Shelly McKay spoke regarding Item 25 and provided comments regarding
Senate Bill 34.
Jonathan Edwards spoke regarding Item 25 and requested Council keep the
health of the cannabis industry, its workers, and customers when regulation
changes are considered.
Elliot Lewis spoke regarding Item 25 and the disparity between legal and illegal
cannabis revenue.
Danielle spoke regarding Item 25 and the ambassador program her employer
Catalyst, manages.
Derek Smith spoke regarding Item 25 and the United Food and Commercial
Workers' proposal for cannabis workers.
Bailey Jones spoke regarding Item 25 and the ambassador program her
employer, Catalyst, manages.
Luis Aleman spoke regarding Item 25 and requested the Council adopt the
Item and include the United Food and Commercial Workers' proposal.
Joshua Scheurer spoke regarding Item 25 and asked the Council to only
decrease the retail cannabis tax rate benefits that are provided for cannabis
workers.
Acting Clerk of the Council Norma Orozco reported the summary of the email
comments received; Five (5) emails from Santa Ana businesses in support
of lowering the retail cannabis tax rate and one (1) email from a Santa Ana
organization providing various comments regarding Item 25.
CITY COUNCIL 15 SEPTEMBER 20, 2022
The following speakers addressed Council via teleconference:
Candice Hause spoke regarding Item 25 and her opposition to the
staffs recommendation to accept five (5) new licenses.
Brandon Cisco spoke regarding Item 25 and the disparity between the medical
use and retail waitlists.
Benjamin Vasquez spoke regarding Item 25 and in support of festivals and
onsite consumption lounges.
Speaker spoke on adult use licenses and medical waitlist applicants.
Mayor Sarmiento closed the public hearing at 10:40 P.M.
MINUTES: Councilmember Lopez requested amendments to section 40.9.2 to
include full-time hours, reimbursement for delivery drivers, increased wages,
and a social equity plan.
Councilmember Hernandez requested an amendment to decrease the retail
tax rate to 6 percent (6%) and requested that the 420 Cannabis Festival be
organized by the City of Santa Ana in conjunction with city businesses.
Mayor Pro Tem Bacerra requested amendments to the following sections:
Section 39.2 — addition of the following language "maximum 48 hours" to
maintain consistency with section 40-8.11(H).
40-1.C.2 — Include language pertaining to the quantity of full-time employees
and quantity of employees, not including supervisors whose wages exceed 155
percent (155%) of the California minimum wage at the time of hire.
40-5 — Include text that defines where allowable areas are located, instead of
referring to the map.
40-6 — Keep subsection (A) 1-3
40-8.10(B&C) — Include the word "licensed"
Mayor Sarmiento spoke in support of reducing the non -retail tax rate from 6
percent (6%) to 1 percent (1 %) and including an opt -in to reward and incentivize
a 2 percent (2%) tax decrease in the retail tax rate for businesses that comply
with the community standards set forth by United Food and Commercial
Workers.
Councilmember Phan made inquiries regarding the enforcement of odor
control and air purification for outside smoking lounges and spoke in favor of the
two percent tax (2%) rebate, minus administrative costs.
CITY COUNCIL 16 SEPTEMBER 20, 2022
MOTION: Approve staff's recommendations and include the following
amendments: no additional licenses shall be granted, and an additional 2
percent (2%) tax reduction opt -in program for businesses that comply with the
community standards set forth by United Food and Commercial Workers.
COUNCILMEMBER REQUESTED ITEMS
26. Discuss and Consider Directing the City Manager to Direct Staff to Draft a
Revision of SAMC Section 2-153 To Clarify the Format of Community
Meetings for Development Projects Required by the Sunshine Ordinance,
Items to Provide to the City After a Community Meeting, and Timing of
Providing Items to the City After a Community Meeting — Mayor Pro Tern
Bacerra
MINUTES: Mayor Pro Tem Bacerra provided the following
recommendations: Community meetings should be conducted with a single
presentation, to ensure all participants receive the same information;
Require a recording of the presentation, which can then be uploaded to the
city's website; and penalize any applicants who fail to provide any of the
listed information in section 2-15(h) of the Municipal Code.
CITY MANAGER COMMENTS
MINUTES: Assistant City Manager Steven Mendoza announced that the
California Department of Housing and Community Development has certified
the Santa Ana Housing Element.
COUNCIL COMMENTS
AB1234 DISCLOSURE — If the City paid for travel or other expenses this is the time
for members of the Council to provide a brief oral report on attendance of any
regional board or commission meeting or any conference, meeting or event
attended.
MINUTES: Councilmember Hernandez thanked the public for taking the time to
participate and the staff for all their hard work. He also announced community
events including Fiestas Patrias, Autumn Festival, and Indigenous Peoples
Day.
AB 1234 — Councilmember Lopez disclosed that the city funded her attendance
at the California Cities Conference in Long Beach.
Councilmember Mendoza announced that she represented the city at the Orange
County Water District Summit in the City of Anaheim.
AB 1234 — Councilmember Penaloza disclosed that the city paid for his
registration to attend the California Cities Conference in Long Beach.
CITY COUNCIL 17 SEPTEMBER 20, 2022
AB1234 — Councilmember Phan disclosed that the city funded her attendance at
the California Cities Conference in Long Beach. She also thanked everyone who
applied for the state water inspection tour and reminded the public that the Mid
Autumn Festival will be on October 1, 2023 at Rosita Park.
Mayor Sarmiento provided comments regarding Fiestas Patrias, and announced
that the Orange County Transportation Agency approved approximately $700,000
to reimburse the city for parking in the downtown area.
ADJOURNMENT —Adjourn the City Council meeting.
MINUTES: Mayor Sarmiento adjourned the meeting in honor of his uncle,
Miguel Jose Gonzalez, at 10:51 P.M.
Respectfully Submitted,
Jennifer L. Hall, CMC
City Clerk
CITY COUNCIL 18 SEPTEMBER 20, 2022