HomeMy WebLinkAbout2012-12-21 SpecialMINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA, CALIFORNIA
DECEMBER 21, 2012
CALLED TO ORDER
ATTENDANCE
COUNCIL CHAMBER
22 CIVIC CENTER PLAZA
SANTA ANA, CA
11:20 A. M.
COUNCILMEMBERS Present:
MIGUEL A. PULIDO, Mayor
P. DAVID BENAVIDES
ROMAN A. REYNA
VINCENT F. SARMIENTO
COUNCILMEMBERS Absent:
ANGELICA AMEZCUA
MICHELE MARTINEZ
SAL TINAJERO, Mayor Pro Tern
STAFF Present:
PAUL M. WALTERS, City Manager
SONIA R. CARVALHO, City Attorney
MARIA D. HUIZAR, Clerk of the Council
PUBLIC COMMENTS
• Juan Macedo, (in Spanish) expressed concern with State's proposal to take
away low income housing, take away could increase homelessness; funds have
direct benefit to community.
• Apolonio Cortes (in Spanish), opined that funds should remain in the City for low
income housing programs; urged the City Council to support position.
• Mark Korando, representing Habitat for Humanity O.C., preserve funds and
continue funding existing contracts; 5 homes under construction and 2 pending -
$1.6 million dollar projects.
• Tara Barauskas, representing A Community of Friends, spoke on the Vista Del
Rio project underway that will assist residents with disabilities; support City's
position to challenge State.
• Cesar Covarrubia, representing The Kennedy Commission, stated that City
entered into contracts for projects before State approval of dissolution of
redevelopment agencies (ABX126 and AB1484), direct benefit to community,
partnerships with schools and private developers; advocated for City to dispute
State's demand.
MINUTES SPECIAL MEETING 1 DECEMBER 21, 2012
• Barry Cottle, of C&C, WBBB, LLC, indicated that their project has qualified
residents ready to move into apartments; request City protect funds; willing to
assist City in response to State's demand.
• Christian Abasto of The Public Law Center, organization has assisted low income
residents in the past; urged City Council not to comply with demand; legal review
needed; City has strong case to protect funds; willing to join lawsuit and assist
City in protecting best interest for the community.
BUSINESS CALENDAR ITEM
65A CALIFORNIA DEPARTMENT OF FINANCE'S DEMAND FOR PAYMENT OF LOW
AND MODERATE INCOME HOUSING FUND
Interim Executive Director of Community Development, Nancy Edwards and Legal
Counsel Tom Clark provided history of AB26X, Oversight Board approvals,
previous approval of obligations by Department of Finance (August 31, 2012), and
City's submittal of Due Diligence Report.
Mayor Pulido, City to dispute demand by State; City impacted disproportionally;
much at state; consider Ad Hoc Committee to work with the County and advocate
in Sacramento; recounted that Proposition 1A protected redevelopment funds, but
State simply abolished and now City's left to tackle budget without redevelopment
funds.
Councilmember Sarmiento, concerned with amount demanded by State; City has
compelling case - address blight and low income housing; state imposes other
obligations with no funding such as RHNA; projects underway worthy of
completing, funds encumbered and appropriated for; City and Successor Agency
thoroughly reviewed projects; City has tangible projects underway; City to send no
funds; urged developers to partner with City and take stronger position together.
State has been inconsistent with responses to City.
Councilmember Benavides, City to take strong position against States demand;
residents need dignified housing; State strong arm City's to meet their budget
challenges; over 200 affordable units under construction; City to oppose State's
Department of Finance's demand. Thanked developers for willingness to help
advocate City's position.
Councilmember Reyna, support City's position to oppose demand.
City Attorney noted for the record that letter received from State on December 15,
2012; City to respond with 5 working days. Also, letter of demand indicates that if
City does not pay full amount, future property and sales taxes may be withheld and
a 10% penalty imposed; State may also go after developers that have received
funds; risks are draconian, but legal ramification is option.
MINUTES SPECIAL MEETING 2 DECEMBER 21, 2012
MOTION:
1. Challenge the State of California's Department of Finance's (DoF)
demand for payment and submit payment;
2. Direct the City Attorney's Office to prepare legal actions needed to
protect funds;
3. Continue funding projects in progress; and
4. Invite community to advocate City's position and/or join lawsuit.
COMMENTS
90A CITY MANAGER'S COMMENTS - None
90B COUNCILMEMBER COMMENTS - None
ADJOURNED - 12:14 P.M.
Maria D. Huizar, c/)
Clerk of the Council
MINUTES SPECIAL MEETING 3 DECEMBER 21, 2012