HomeMy WebLinkAbout01 - MINUTES 09-27-2010 Special and 10-04-2010MINUTES OF THE JOINT SPECIAL MEETING
OF THE CITY COUNCIL AND
THE COMMUNITY REDEVELOPMENT AGENCY
SANTA ANA, CALIFORNIA
SEPTEMBER 27, 2010
CLOSED SESSION MEETING
CALLED TO ORDER CITY HALL
20 CIVIC CENTER PLAZA, ROOM 831
SANTA ANA, CALIFORNIA
5:18 P.M.
ATTENDANCE AGENCY MEMBERS Present:
MIGUEL A. PULIDO, Chairperson (Left at 5:18
P.M.)
CLAUDIA ALVAREZ, Vice Chairperson (Left at
5:18 p.m.)
P. DAVID BENAVIDES
CARLOS BUSTAMANTE
MICHELE MARTINEZ (Left at 5:18 p.m.)
VINCENT F. SARMIENTO (5:28 p.m.)
SAL TINAJERO
STAFF Present:
DAVID N. REAM, City Manager
JOSEPH W. FLETCHER, City Attorney
CYNTHIA J. NELSON, Executive Director
MARIA D. HUIZAR, Recording Secretary
The following modifications to the Agenda were announced:
® City Attorney Fletcher noted that only items 1A and 1 B (City Council Items) would
not be considered at tonight's meeting.
Chair Pulido, Chair Pro Tem Alvarez, and Agency member Martinez excused
themselves from the meeting due to conflict of interests. Chair Pro Tem Alvarez
noted a conflict of interest due to the nature of her employment with the District
Attorney's Office, Chair Pulido and Agency member Martinez abstained due to
campaign contributions. They left the room and did not participate in
consideration of the item.
Meeting recessed at 5:18 p.m. to obtain quorum and reconvened at 5:31 p.m. with four
members present - Benavides, Bustamante, Sarmiento, and Tinajero.
CRA MINUTES - SPECIAL MEETING A 1 SEPTEMBER 27,:2610
Agency members by vote of acclamation selected Agency member Bustamante as
Chair of the Meeting to hear Public Comments.
City Attorney Fletcher introduced Kevin Ennis of Law Offices of Richards, Watson, and
Gershon who is outside Counsel that was consulted on this matter.
PUBLIC COMMENTS
• Alfredo Amezcua — expressed concerns that items on the Agenda were not open for
public discussion; members of the public came to address council on items 1A and
1B, but only 1C considered; proposed that meeting be postponed and placed on
Regular Agenda for open session and update the public on new developments of
projects.
• Claudio Gallegos — echoed Alfredo Amezcua's sentiments on having an open
session; asked for full transparency during the proceedings of this item.
• Julie Stroud — concerned with allegation of conflict of interest violations; asked
council to be more transparent.
• Tish Leon — disappointed that items 1A and 113 were removed from Agenda;
SACRed continues to work hard to make sure project moves forward.
CLOSED SESSION ITEMS
City Council Items (Not Considered)
1A CONFERENCE WITH LEGAL COUNSEL --EXISTING LITIGATION
pursuant to Government Code Section 54956.9(a)
Friends of the Historic Lacy Neighborhood vs. City of Santa Ana and
Community Redevelopment Agency of the City of Santa Ana et al. OCSC
Case No. 30-2010-00388033
1 B CONFERENCE WITH LEGAL COUNSEL --ANTICIPATED LITIGATION
pursuant to Government Code Section 54956.9(b)(3)(A) and (c). — 1 Case
Community Redevelopment Agency Item
1C CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to
Government Code Section 54956.8
Property: Agency -Owned properties in the area
bounded by Santa Ana Blvd. on the north,
Poinsettia St on the east, Brown, 5 and 4
Sts. on the south and Minter St. on the west
including: 501, 505, 511, 601, 606, 607,
610, 615, 616, 620, 621 & 712 E. Fifth St.;
602, 609, 618, 619, 622, 623, 625, 626 &
630 N. Garfield St.; 601,604, 605, 606, 609,
CRA MINUTES - SPECIAL MEETINGn 2 SEPTEMBER 27, 2010
Agency negotiator:
Parties with whom negotiating
Under negotiation:
611, 614, 620 & 622 N. Lacy St.; 612, 614,
622, 626, 714 & 804 E. Santa Ana Blvd.;
601, 602, 609, 617, 709, 710, 711, 714 &
720 E. Sixth St.; 801, 809, 901 & 905
Brown St.; and, 611 N. Minter St.
Cindy Nelson, Executive Director
Santa Ana Station District LLC and/ Urban
Ventures.
Price and Terms of Payment for the Sale of
Agency -owned Real Property.
RECESSED at 6:32 p.m. and reconvened at 6:37 p.m. with same members present.
ADJOURNED 6:47 P.M.
Maria D. Huizar,
Recording Secretary
CRA MINUTES. ® SPECIAL MEETING1A-3
3 SEPTEMBER 27, 2010
/A
1A-4
MINUTES OF THE REGULAR MEETING OF THE
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA, CALIFORNIA
OCTOBER 4, 2010
CALLED TO ORDER COUNCIL CHAMBER
22 CIVIC CENTER PLAZA
SANTAANA, CA
7:56 P.M.
ATTENDANCE: AGENCY MEMBERS Present:
MIGUEL PULIDO, Chair
CLAUDIA ALVAREZ, Vice Chair
P. DAVID BENAVIDES
VINCENT F. SARMIENTO
CARLOS BUSTAMANTE
MICHELE MARTINEZ
SAL TINAJERO
AGENCY MEMBERS Absent:
None
STAFF Present:
CYNTHIA J. NELSON, Executive Director
JOSEPH FLETCHER, General Counsel
MARIA D. HUIZAR, Recording Secretary
CONSENT CALENDAR
MOTION: Approve staff recommendations on the following Consent
Calendar items. (Items 1 and 2)
MOTION: Alvarez
VOTE: AYES:
SECOND: Bustamante
Alvarez, Benavides, Bustamante Pulido, Martinez,
Tinajero, Sarmiento (7)
NOES:
None (0)
ABSTAIN:
None (0)
ABSENT:
None (0)
CRA MINUTES 1 OCTOBER 4, 2010 '.
1. REGULAR MEETING OF SEPTEMBER 7, 2010
MOTION: Approve Minutes.
2. EXCUSED ABSENCES — None
*** END OF CONSENT CALENDAR ***
REGULAR BUSINESS ITEM
*Chair Pulido, Chair Pro Tem Alvarez, and Agency member Martinez excused themselves
from participating on Item #3 due to conflict of interests. Chair Pro Tem Alvarez noted a
conflict of interest due to the nature of her employment, and Chair Pulido and Agency
member Martinez abstained due to campaign contributions. They left the room and did
not participate in consideration of the item.
MOTION: Elect Agency member Bustamante to Chair the meeting
(pursuant to SAMC 2-101 due to unavailability of Chair and Chair Pro Tem).
MOTION: Sarmiento SECOND: Benavides
VOTE: AYES: Benavides, Bustamante, Sarmiento, Tinajero
(4)
NOES: None (0)
ABSTAIN: Alvarez, Pulido, Martinez (3)
ABSENT: None (0)
3. POTENTIAL RESCISSION AND RE -APPROVAL OF SANTA ANA STATION
DISTRICT AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT
AGREEMENT
Agency General Counsel Fletcher stated that the purpose of item is
consideration of a rescission and future re -approval of the Disposition and
Development Agreement "DDA" on Station District project, in light of potential
impact campaign contribution issues that arose after approval of project in June,
2010.
The effects of the contributions have been reviewed by his office with assistance
of special counsel — Law Offices of Richards, Watson, and Gershon. The
Community Redevelopment Agency held a Special Meeting on September 27,
2010 to give potential re -negotiation directions to the Executive Director;
CRA MINUTES 2 OCTOBER 4, 2010
discussion resulted in item being agendized as rescission and re -approval of
DDA.
DDA is a contract that has been approved; the Agency board may not unilaterally
rescind the contract, but requires mutual agreement by the developer; first step
would be to allow the Agency to rescind contract; if approved, then the Agency
may reconsider re -approval.
General Counsel Fletcher noted for the record that prior conflict of interest for
Agency member Sarmiento was due to clients and other interested in the
downtown area affecting only the Transit Zoning Code "TZC" action by the City
Council, but zoning issue not being considered and therefore he has not conflict
of interest in participating as an Agency member on the DDA; also, any conflicts
of interest Agency members Tinajero and Benavides had due to campaign
contributions were not related to the DDA or the parties to the DDA and therefore
they could participate on the DDA matter..
Steven Dorsey of the Law Offices of Richards, Watson, and Gershon
summarized risks and legal implications if the Agency decided on a revote. He
strongly recommend not to revote since Agency faces greater legal risks from
rescinding or reconsidering the matter, than due to the issue of campaign
contributions. Legal reasons for recommendation include: action would open up
possibility of additional legal challenges; statute of limitations and ability to
challenge previous actions have run out with prior approval and time clock would
start again if re -voted; potentially more lawsuits with additional issues may be
filed; questioned how far back to reconsider items; contracting parties have
vesting rights and would require their approval to reconsider; properties have
been acquired that would be questioned. Mr. Dorsey opined that despite
irregularities on the last vote it does not invalidate the vote; The Charter section
implicated does not provide for remedy; and chances of being challenged are
greater since there are no legal basis for reconsideration in Charter or State law.
Agency member Benavides requested clarification from special counsel on
Agency's exposure if item reconsidered and questioned whether other
jurisdictions have had similar situations. Mr. Dorsey said no. Law firm is conflict
of interest experts and have not had experience with re -votes.
Agency member Tinajero stated that he had written a letter to the Mayor
requesting reconsideration of the matter when he found out about possible
conflict of interest; has not raised money since being elected; believes in
transparency; Agency members on the dais are not conflicted; and would like to
rectify the situation. Made motion to reconsider and was seconded by Agency
member Benavides.
Agency member Benavides commented on issues of transparency and full
disclosure, referred to as sunshine ordinances; asked that item be brought back
to the Council for consideration in 60 days with research on what other
jurisdictions have done to ensure public trust and also include clarification on
CRA MINUTES 1 1B- 3
3 OCTOBER 4, 2010
codes regarding campaign contribution - what defines a violation, and what
remedies, if any, exist.
Agency member Sarmiento opined that City regulations on campaign
contributions are confusing - lack clarity and remedy; revote would cause more
harm than good and expose City to potential litigation. Project is a good project
that will offer opportunities for residents —provide low income housing, public
transportation; affordable rental units, open space, provide for dignified housing;
and a community center; stalling project will be jeopardized with revote and
statute of limitations will be created; democracy established on checks and
balances; need to move forward as project stands. He would not support the
motion.
Agency member Bustamante inquired about the constitutionality of the Charter
section that prevents members from voting because of campaign contributions.
Mr. Dorsey indicated that in some cases Courts have held that campaign
contributions cannot give given rise to direct conflicts of interests, but none have
addresses a local ordinance such as here.
Mr. Fletcher said that cases in question pre -date the City's Charter provision and
that they are regarding public hearings where developers made a contribution
that would not disqualify member from voting — fundamental first amendment
rights. He stated that because of such cases Santa Ana's provisions should be
narrowly interpreted the provisions so as to maximize and protect first
amendment rights and minimize impairment on functions of the council; need
regulations clarified on campaign contributions.
Agency member Benavides said that project is sought after by the community
and intent of motion is to clear votes.
Executive Director Cindy Nelson indicated that affordable housing would be in
jeopardy if item re -voted; community center is on school district property and not
part of the developer's responsibility; preliminary steps on design and approvals
by the Agency are forthcoming; open space (park) would require additional
acquisitions; child care located in rental portion of the project would also be
jeopardized; development projects include: affordable housing units, rental
homes; open space, child care, community room, and retail center.
Chair Bustamante called for the question.
MOTION: Consider rescission of the Disposition and Development
Agreement with Santa Ana Station District LLC (Developer), subject to
Developer's consent, and re -submittal of the Disposition and Development
Agreement for Agency Board approval at a future date.
MOTION: Tinajero SECOND: Benavides
*Motion failed 2-2 vote (Bustamante and Sarmiento dissented).
CRA MINUTES 44 OCTOBER4, 2010
Chair Bustamante relinquished to Chair Pulido and Agency members brought back to
the dais.
COMMENTS
4. COMMUNITY REDEVELOPMENT AGENCY MEMBER COMMENTS - None
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Maria D. Huizar,
Recording Secretary
CRA MINUTES 1B-55 1 OCTOBER 4, 2010
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