HomeMy WebLinkAbout10A - MINUTES - 06-03-14MINUTES OF THE REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA, CALIFORNIA
JUNE 3, 2014
CLOSED SESSION MEETING
CALLED TO ORDER COUNCIL CHAMBER
22 CIVIC CENTER PLAZA
SANTA ANA, CA
5:21 P.M.
ATTENDANCE COUNCILMEMBERS Present:
MIGUELA. PULIDO, Mayor
SAL TINAJERO, Mayor Pro Tern
ANGELICA AMEZCUA
P. DAVID BENAVIDES
ROMAN A. REYNA
COUNCILMEMBERS Absent:
MICHELE MARTINEZ
VINCENT F. SARMIENTO
STAFF Present:
DAVID CAVAZOS, City Manager
SONIA R. CARVALHO, City Attorney
MARIA D. HUIZAR, Clerk of the Council
PUBLIC COMMENTS — None
COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:21 p.m.
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:
CONFERENCE WITH LEGAL COUNSEL - Government Claims Act pursuant to
Paragraph (3) of subdivision (e) of Section 54956.9 of the Government Code:
Claim No. 2014 -056, Ruiz, Augustine and Arzola, Raymundo
Claim No. 2014 -015, McDowell, Scott and State Farm
Claim No. 2014 -024, Avalos, Veronica
CITY COUNCIL MINUTES 1 JUNE 3, 2014
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2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to
Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code:
Kristine Meza v. City of Santa Ana, Orange County Superior Court Case No.
30- 2013 - 00660649
Carlos Barba v. City of Santa Ana, Orange County Superior Court Case No.
30- 2013 - 00649819
Consuelo Case v. City of Santa Ana, Orange County Superior Court Case
No. 30- 2013- 00628729
JOINT ITEM — City of Santa Ana, Successor Agency and Housing Authority:
Peebler vs. State of California Superior Court Case No. 34- 2012 - 80001172;
Court of Appeal Case No. C073698
JOINT ITEM — City of Santa Ana, Successor Agency and Housing Authority:
Cuenca vs. State Sacramento County Superior Court Case No. 34 -2013-
80001427
JOINT ITEM — City of Santa Ana, Successor Agency and Housing Authority:
City of Santa Ana vs. Ana Matosantos (DOF) Case No. 34- 2013 - 80001477
3. CONFERENCE WITH LEGAL COUNSEL -- ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision
(d) of Section 54956.9 of the Government Code: Two Cases
'Councilmember Benavides excused himself from proceedings of Agenda Item 3
due to a potential conflict of interest and did not participate in consideration of
this item. He left the room at 5:33 p.m. and returned at 5:46 p.m.
4. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to
Government Code Section 54956.8.
Address of Property: 1411 N. Bristol Street, Santa Ana
1415 N. Bristol Street, Santa Ana
1417 N. Bristol Street, Santa Ana
1607 N. Bristol Street, Santa Ana
Negotiators: City Manager, David Cavazos
Interim Director of Public Works Agency,
William Galvez
Under Negotiation:
Price and Terms of Property Acquisition
CITY COUNCIL MINUTES 2 JUNE 3, 2014
1 0A -2
CLOSED SESSION REPORT— See Item 19A. for any reportable actions.
ADJOURNED THE CLOSED SESSION MEETING AT 6:07 P.M. AND CONVENED TO
THE REGULAR OPEN MEETING
CITY COUNCIL MINUTES
1 0A -3
JUNE 3, 2014
REGULAR OPEN SESSION
CALLED TO ORDER COUNCIL CHAMBER
22 CIVIC CENTER PLAZA
SANTA ANA, CA
6:08 P.M.
ATTENDANCE COUNCILMEMBERS Present:
MIGUELA. PULIDO, Mayor
SAL TINAJERO, Mayor Pro Tern
ANGELICA AMEZCUA
P. DAVID BENAVIDES
ROMAN A. REYNA
PLEDGE OF ALLEGIANCE
INVOCATION
PRESENTATIONS
COUNCILMEMBERS Absent:
MICHELE MARTINEZ
VINCENT F. SARMIENTO
STAFF Present:
DAVID CAVAZOS, City Manager
SONIA R. CARVALHO, City Attorney
MARIA D. HUIZAR, Clerk of the Council
ASHLEY SAUCEDA AND NATHALIE RIVAS,
HEROES ELEMENTARY SCHOOL
COUNCILMEMBER BENAVIDES
CERTIFICATE OF TRIBUTE presented by MAYOR PULIDO to William Reimer, Jr. for
former Santa Ana Fire Chief, William J. Reimer (Fire Chief 1979 to 1986).
PROCLAMATION presented by MAYOR PULIDO to Allan Fainbarg for his exemplary
citizen participation and services to the Santa Ana community.
CERTIFICATE OF RECOGNITION presented by MAYOR PULIDO to Sergio
Buenrostro for securing the presence of Miguel Herrera at the 15th Annual Cinco de
Mayo Festival.
CITY COUNCIL MINUTES 4 JUNE 3, 2014
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CERTIFICATES OF RECOGNITION presented by MAYOR PULIDO and
COUNCILMEMBER AMEZCUA to the Floral Park homeowners and tour committee for
their successful 2014 Floral Park Home and Garden Tour.
CERTIFICATE OF RECOGNITION presented by MAYOR PRO TEM TINAJERO and
COUNCILMEMBER AMEZCUA to Vietnamese Community Health for organizing the
Community Health Fair at Rosita Park in the Salgado Recreation Center.
CERTIFICATES OF RECOGNITION presented by COUNCILMEMBER REYNA to the
Calvary Christian School Volleyball Team for winning the Division 2 CALOC league
championship.
Head Coach: Casey Morlet and Assistant Coach: Bronnie Lee; Team: Julia
Bharwani, Olivia Clark, Amy Lee, Sage Lewotsky, Makenna Pietras, Brittney
Pino, Aubrey Rynders, Mikayla Tesdall, Alexa Velasquez.
CLOSED SESSION REPORT — See reportable actions listed under Agenda Item 19A.
PUBLIC COMMENT
• Steve Rocco, spoke on election related issues, and concerns with operation of
Security Company at City Hall.
• Elmer Heap, Public Sector Manager for Waste Management, spoke of recent
Household Hazardous Waste event; Compost Giveaway Day and participation in
Cinco de Mayo event; grateful to be part of the City.
• Douglas Lanpher, Patients Advocate representative, spoke on Agenda Item 65B,
supports City's effort to allow safe and affordable access to medical marijuana.
• Araceli Robles, member of SACReD and Building Healthy Communities, request
that Strategic Plan be translated into Spanish and Vietnamese; proposed that youth
in the community to allowed to translate the document and City to provide incentive.
• Richard Moser, former member of the original Bristol Street Development
Association, opined that City has made tremendous progress; spoke in support of
Bristol Street Widening Project.
CONSENT CALENDAR ITEMS
MOTION: Approve Consent Calendar Items 10A through 31A as
recommended by staff:
MOTION: Tinajero SECOND: Benavides
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero (5)
NOES: None (0)
CITY COUNCIL MINUTES 5 JUNE 3, 2014
1 0A -5
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
FA0iytl10116 .11MiTAI1IFlNo iyilevi i1 =I*1
MINUTES
10A. MINUTES FROM THE REGULAR MEETING OF MAY 20, 2014 - Clerk of
the Council Office
MOTION: Approve Minutes.
MISCELLANEOUS ADMINISTRATION
19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — City Attorney's
Office
MOTION: Approved settlement agreements.
AGMT NO. 2014 -120 - Claim No. 2014 -015, McDowell, Scott and
State Farm; in the amount of $6,375.83
AGMT NO. 2014 -121 - Claim No. 2014 -024, Avalos, Veronica; in the
amount of $5,736.82
AGMT NO. 2014 -122 - Consuelo Case v. City of Santa Ana, Orange
County Superior Court Case No. 30- 2013 - 00628729; authorize staff to
settle case in the amount of $5,000.
MOTION: Excuse the absence of Councilmembers Martinez and
Sarmiento from the June 3, 2014 City Council Meeting.
19C. QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND
ACTIVITIES JANUARY 2014 — MARCH 2014 - Community Development
Agency
CITY COUNCIL MINUTES 6 JUNE 3, 2014
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MOTION: Receive and file.
AGREEMENTS
25A. DISTRIBUTION OF WORKFORCE INVESTMENT ACT FORMULA
YOUTH FUNDS FOR PROGRAM YEAR 2014 -2015 - Community
Development Agency
Workforce Investment Board approved recommended action on May 15,
2014 by a vote of 18 -0 (0 (Elliott, Fischer, Gonzalez, Jimenez -Hami,
Knitter, Korthuis, Maldonado, Nishimoto, Ruiz, Su absent; Didion
abstained)).
The Finance, Economic Development and Technology Council Committee
reviewed the Youth Programs Request for Proposal process at its
meetings on October 14, 2013 and January 13, 2014.
MOTION: Approve and authorize the City Manager and Clerk of the
Council to execute agreements for Workforce Investment Act
Formula Youth funds with the following youth program operators for
Program Year 2014 -2015, for a total amount of $819,200 for the
period of July 1, 2014 through June 30, 2015:
r[ 91111 Ion 1 :2:tole] :7 e 1 i y i[ OW =I :7 e l 1101 N
AMOUNT YOUTH
SERVED
A. AGMT NO. 2014 -123 — With Orange County $136,400 25
Asian and Pacific Islander Community
Alliance
To provide training leading to customer service
certification, job preparation, paid work
experience, and post- secondary education
services
B. AGMT NO. 2014 -124 — With Orange County $212,800 27
Children's Therapeutic Arts Center
To provide occupational skills in office
administration, mental health paraprofessional,
and childcare worker certification, job
preparation skills, paid work experience,
tutoring, mentoring, counseling, and food bank
support
C. AGMT NO. 2014 -125 — With Orange County $200,000 25
Conservation Corps
To provide alternative secondary education and
resources leading to a high school diploma,
credentialed training in forklift operation, safe
CITY COUNCIL MINUTES 7 JUNE 3, 2014
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r[ 911 j 1:1 :2:19M :7 e 1 i y i[ OW =I :7 e l to] N
AMOUNT YOUTH
SERVED
food handling, customer service, computer
software, job preparation, and paid work
experience
D. AGMT NO. 2014 -126 — With Santa Ana $190,000 30
Public Library
To provide post- secondary occupational skills
training in digital technology, computer
maintenance, and clerical customer service;
paid work experience, and leadership
development
E. AGMT NO. 2014 -127 — With Taller San Jose $80,000 10
To provide occupational skills training in the
healthcare, professional business services or
construction fields, internship opportunities,
counseling, job preparation, and placement
25B. AGMT NO. 2014 -128 - CAREER AND VOCATIONAL CONSULTING
SERVICES AT WORK CENTER (FEDERAL FUNDING) - Community
Development Agency
MOTION: Authorize the City Manager and Clerk of the Council to
execute the attached Federal Workforce Investment Act consultant
agreement with Wesley A. Bosch in an amount of $90,000 annually,
for a total not to exceed $180,000 over a two -year term, subject to
non - substantive changes approved by the City Manager and City
Attorney.
25C. AGMT NOS. 2014 -129 AND A- 2014 -130 - ON -CALL ENGINEERING
SERVICES FOR WATER AND SEWER PROJECTS - Public Works
Agency
MOTION: Authorize the City Manager and Clerk of the Council to
execute agreements with Tetratech, Inc., and RBF Consulting,
subject to non - substantive changes approved by the City Manager
and City Attorney, for a one -year period expiring June 30, 2015, with
provisions for two, one -year renewal options exercisable in writing
by the City Manager and City Attorney, in an amount not to exceed
$400,000 annually, for a total aggregate amount not to exceed
$1,200,000.
CITY COUNCIL MINUTES 8 JUNE 3, 2014
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25D. AGMT NO. 2014 -131 - WATER QUALITY TESTING SERVICES - Public
Works Agency
MOTION: Authorize the City Manager and Clerk of the Council to
execute an agreement with Clinical Laboratory of San Bernardino,
Inc., subject to non - substantive changes approved by the City
Manager and City Attorney, for a two -year period expiring on June 2,
2016, with provisions for two, two -year renewal options exercisable
by the City Manager and City Attorney, in an amount not to exceed
$140,000 for each the initial term and for each option period, for a
total aggregate amount not to exceed $420,000.
25E. AGMT NO. 2014 -132 - SUNFLOWER AVENUE IMPROVEMENTS -
Public Works Agency
MOTION: Authorize the City Manager and Clerk of the Council to
execute a first amendment to the cooperative agreement with the
City of Costa Mesa, subject to non - substantive changes approved by
the City Manager and City Attorney, to increase the City's share of
construction costs by $16,000, for a total not -to- exceed amount of
$51,000.
LAND USE MATTERS
CONDITIONAL USE PERMITIVARIANCES
31 A. CONDITIONAL USE PERMIT NO. 2014 -06 FOR A TYPE 47 ALCOHOLIC
BEVERAGE CONTROL LICENSE FOR CHIPOTLE MEXICAN GRILL AT
1313 WEST SEVENTENTH STREET, SUITE A - LIQUOR LICENSE
SPECIALIST, APPLICANT - Planning and Building Agency
Planning Commission approved recommended action on May 12, 2014,
by a vote of 7 -0.
MOTION: Receive and file the staff report approving Conditional Use
Permit No. 2014 -06 as conditioned.
""END OF CONSENT CALENDAR"
BUSINESS CALENDAR ITEMS
CITY COUNCIL MINUTES 9 JUNE 3, 2014
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ORDINANCES /FIRST READING
50A. ORDINANCE REPEALING SANTA ANA MUNICIPAL CODE CHAPTER
10, ARTICLE XII, PERTAINING TO PROXIMITY RESTRICTIONS FOR
REGISTERED SEX OFFENDERS TO CHILDREN'S FACILITIES - City
Attorney's Office
MOTION: Place ordinance on first reading and authorize publication
of title.
ORDINANCE NS -2862 - AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA REPEALING CHAPTER 10, ARTICLE XII OF
THE SANTA ANA MUNICIPAL CODE PERTAINING TO PROXIMITY OF
REGISTERED SEX OFFENDERS TO CHILDREN'S FACILITIES
MOTION: Amezcua
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
RESOLUTIONS
N=WS]ZI IMI- TaiF108M
Amezcua, Benavides, Pulido, Reyna,
Tinajero (5)
None (0)
None (0)
Martinez, Sarmiento (2)
55A. BRISTOL STREET IMPROVEMENTS, RIGHT -OF -WAY ACQUISITIONS,
AND ADOPTION OF AN ADDENDUM TO THE FINAL ENVIRONMENTAL
IMPACT STATEMENT /ENVIRONMENTAL IMPACT REPORT (EIS /EIR)
Continued from the February 4, 2014 City Council Meeting by a vote of 7-
0. Continued from the March 4, 2014 City Council Meeting by a vote of 6-
0 (Sarmiento abstained). . Continued from the April 1, 2014 City Council
Meeting by a vote of 6 -0 (Sarmiento abstained and not present).
Continued from the May 6, 2014 City Council Meeting by a vote of 7 -0.
MOTION: Continue consideration of matter at the request of staff for
30 days, July 1, 2014.
MOTION: Benavides SECOND: Reyna
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero
(5)
CITY COUNCIL MINUTES 10 JUNE 3, 2014
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NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
55B. RESOLUTION CALLING FOR SUPPORT OF THE BAY DELTA
CONSERVATION PLAN FOR RELIABLE WATER SUPPLY AND
ENVIRONMENTAL RESTORATION - Public Works Agency
MOTION: Adopt a resolution.
RESOLUTION NO. 2014 -024 - RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA CALLING FOR SUPPORT OF THE BAY
DELTA CONSERVATION PLAN FOR RELIABLE WATER SUPPLIES
AND ENVIRONMENTAL RESTORATION
MOTION: Tinajero SECOND: Reyna
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero
(5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
55C. SUBMISSION TO THE VOTERS AT THE NOVEMBER 4, 2014
MUNICIPAL ELECTION: PETITION QUALIFIED BY VOTER INITIATIVE
ON SANTA ANA MEDICAL CANNABIS RESTRICTION AND LIMITATION
INITIATIVE - Clerk of the Council and City Attorney's Offices
MOTION:
1. Adopt resolutions.
RESOLUTION NO. 2014 -025 - A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA GIVING NOTICE OF A
GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF
SANTA ANA ON NOVEMBER 4, 2014 FOR THE SUBMISSION TO
THE VOTERS OF QUESTIONS RELATING TO VOTER INITIATIVE
PETITION ON THE SANTA ANA MEDICAL CANNABIS
RESTRICTION AND LIMITATION INITIATVE AND REQUESTING
THE BOARD OF SUPERVISORS OF ORANGE COUNTY TO
CITY COUNCIL MINUTES 11 JUNE 3, 2014
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CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE
STATE'S GENERAL ELECTION
RESOLUTION NO. 2014 -026 - A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA SETTING FORTH THE
LANGUAGE OF A BALLOT TITLE FOR PROPOSED VOTER
INITIATIVE PETITION REFERRED TO AS THE SANTA ANA
MEDICAL CANNABIS RESTRICTION AND LIMITATION INITIATVE
TO BE INCLUDED ON THE BALLOT FOR THE 2014 GENERAL
MUNICIPAL ELECTION
RESOLUTION NO. 2014 -027 - A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING WRITTEN
ARGUMENTS FOR OR AGAINST THE PROPOSED VOTER
INITIATIVE REGARDING THE SANTA ANA MEDICAL CANNABIS
RESTRICTION AND LIMITATION INITIATVE TO BE PLACED ON
THE BALLOT OF THE GENERAL MUNICIPAL ELECTION TO BE
HELD ON TUESDAY, NOVEMBER 4, 2014
2. Approve guidelines for preparation of arguments for or against
the proposed voter initiative, fix the date for the submission of
Direct Arguments and Rebuttal Arguments, and post the notice
for the argument process in accordance with the provisions of the
California State Elections Code.
3. Authorize the City Attorney to prepare an Impartial Analysis for
each of the proposed Charter Amendments to be submitted to the
voter for consideration.
4. Direct staff to process all other documents required to proceed
with the voter initiative petition.
5. Authorize Mayor Pro Tern Tinajero to prepare an Argument
Against proposed voter initiative and allow up to 4 additional
Councilmembers to sponsor Argument.
MOTION: Tinajero SECOND: Amezcua
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero
(5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
CITY COUNCIL MINUTES 12 JUNE 3, 2014
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ADMINISTRATIVE MATTERS - BUSINESS
60A. LEAGUE OF CALIFORNIA CITIES VOTING DELEGATE - Clerk of the
Council Office
MOTION: Designate Councilmember Martinez as a voting delegate
for the League of California Cities' Annual Business Meeting
scheduled for September 3 -5, 2014.
MOTION: Tinajero SECOND: Amezcua
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna,
Tinajero (5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
REPORTS
65A. REQUEST FOR RELEASE OF ESCROW ACCOUNT FUNDS FROM
THE ORANGE COUNTY FIRE AUTHORITY - City Manager's Office and
Finance & Management Services
MOTION: Authorize the City Manager to request the release of $2.9M
in Risk Management funds held in an escrow account at Grandpoint
Bank pursuant to the agreement with the Orange County Fire
Authority for fire services and emergency medical services.
MOTION: Amezcua SECOND: Reyna
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero
(5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
CITY COUNCIL MINUTES 13 JUNE 3, 2014
1 0A -13
65B. BALLOT INITIATIVE REGARDING MEDICAL MARIJUANA
COLLECTIVES /COOPERATIVES - Planning and Building Agency; City
Attorney's Office; and Police Department
Acting Planning and Building Executive Director Karen Haluza presented
staff report.
History
• 1970 — Federal Controlled Substances Act (CSA)
• Marijuana designated as a Schedule I controlled substance
• 1996 — Compassionate Use Act (Prop. 215)
• Prevented State criminal sanctions against qualified patient or
the patient's primary caregiver, for possession or cultivation of
marijuana for the personal medical purposes of the patient, upon
recommendation of a physician
• 2003 — Medical Marijuana Program Act (SB 420)
• Uniform application of the Compassionate Use Act
• Enhance access to medical marijuana through collective and
cooperative cultivation
• 2007 — City of Santa Ana Adopts Ban on Medical Marijuana
Dispensaries
• Access to medical marijuana still permitted through health care
facilities
• February 2013 - Santa Ana Medical Cannabis Restriction and
Limitation Initiative
• Obtained enough valid signatures to qualify the initiative for the
November 2014 General Election ballot
• March 2013 - City Council directed staff to explore placing a competing
initiative on the November 2014 ballot
• May 2013 — City of Riverside vs. Inland Empire Patient's Health and
Wellness Center, Inc.
• State Supreme Court decision upheld cities' ability to enact
municipal regulations banning medical marijuana collectives
Enforcement Efforts
• Actively enforcing the City's ban on medical marijuana since adoption
in 2007
• As of May 1, 2014 there are an estimated 50 existing illegal Medical
Marijuana collectives /cooperatives in the City
• Low of 16 in early 2013
• High of 68 in 2012
• Successfully closed 177 collectives /cooperatives
• Issued $138,000 in fines
Collective - Backed Initiative — Santa Ana Medical Cannabis
Restriction and Limitation Initiative
Summary —
• Repeals the City's prohibition of medical marijuana dispensaries
CITY COUNCIL MINUTES 14 JUNE 3, 2014
1 OA -14
• Allows collectives with ministerial permit issued by the Planning and
Building Agency
• Authorizes a minimum of 22 dispensaries with future increases based
on a population formula (1 dispensary per 15,000 residents)
• Contains limited land use / zoning regulations
• 500 -feet buffer from schools (K -12) — no buffer from homes or
parks
• Permitted in all commercial, industrial and professional zones
• Does not address mobile dispensaries or cultivation
• Limits the City's ability to assist in the enforcement or to investigate,
prosecute, or participate in any task force related to medical marijuana
laws
• Taxing method creates substantial issues within the City's tax code
• No regulation regarding distribution of facilities (green light district)
• No maximum number of facilities (minimum of 22)
• Definitions of collectives and cooperatives results in smaller operations
(more than 1 but less than 5) being unregulated
• Permitted in all commercial, industrial and professional zones
• Limited separation from sensitive uses (parks, schools, etc.)
• Ministerial approval process (no noticing or public hearing required)
• Limited /vague regulations regarding on -site security
• Causes a number of issues related to the Business Tax Code as it
relates to both medical marijuana and other businesses
Options to Proceed
• Three options to proceed:
• Option #1 — Take no further action
• Option #2 - City Initiative to ban
dispensaries
• Option #3 - City Initiative to regulate
dispensaries
Option #1 — Take no further action
• Staff will continue to enforce the existing ban on medical marijuana
dispensaries contained in Article XIII of Chapter 18 of the Santa Ana
Municipal Code
• Collective- backed initiative will be on the November 2014 ballot
• If the initiative passes, the City will be required to implement the
regulations contained in the new initiative
Option #2 — City Initiative to Ban
• Propose a ballot measure that affirms the City's existing ban on
medical marijuana dispensaries
• Include language to clarify that the ban will apply to mobile
dispensaries and cultivation
• Would not prohibit medical marijuana from being prescribed and /or
distributed by State - licensed clinics, health care facilities, residential
CITY COUNCIL MINUTES 15 JUNE 3, 2014
1 0A -15
care facilities for the elderly or residential hospice or home health
agencies
Option #3 — City Initiative to Regulate
• Propose a ballot measure that permits medical marijuana collectives,
but with additional regulations not contained in the collective- backed
initiative:
• Limit permitted zones to industrial only (M1, M2)
• Set a maximum number of dispensaries (8)
• Establish distance / separation requirements from sensitive uses
and residential properties
• Establish certain operational requirements (security, signage,
lighting, hours of operation, etc.)
• Establish Business License Tax, licensing, registration and
minimum basic tax amount
• Would not prohibit medical marijuana from being prescribed and /or
distributed by State - licensed clinics, health care facilities, residential
care facilities for the elderly or residential hospice or home health
agencies
Fiscal Implications
• City sponsored initiative would:
• Include sufficient definitions to address the variety of medical
marijuana business models (Non - profit, LLC, etc.)
• Include definition and tax rate for cultivation (although not
permitted)
• Include a scalable gross receipts tax rate that could be modified by
the City Council
• Require monthly remittance of business tax rather than quarterly
Revenue Projections
• The following projections are estimates based on the experiences of
other California cities that currently permit, but regulate, collectives.
Gross
Receipts Tax Revenue"
1%
$15,000
2%
$30,000
Planning Annual
$45,000
4%
Business License Tax
5%
$75,pg6 ,
Compliance
Planning Percmit.
Business License Tax
Minimum Be sic Tax
Lacal State Sales
Total Fixed
9 %
Fee (CUP)
Registration ation &3tate Fee
$150,Dao
Tax @1 %'
Revenue
Inspection
$2,000
510,000
$33
$2,000
$15,OahD
$29,033
Gross
Receipts Tax Revenue"
1%
$15,000
2%
$30,000
3 %
$45,000
4%
$60,000
5%
$75,pg6 ,
6 %
$90,000
7 %
$105,000
9%
$120,090
9 %
$135,DaD
SD%
$150,Dao
"Based on estimated annual gross .s les of $1.5 mllllon
Staff Recommendation
SOWUI Per D5spcnsary $109,09'4'
x S Dispensarles
Total) $83P,Pfi4
CITY COUNCIL MINUTES 16 JUNE 3, 2014
1 0A -16
• Recommend to place a competing initiative on the November ballot to
regulate medical marijuana collectives /cooperatives
• Would allow for a limited number of collectives in narrowly defined
areas with buffers from homes, schools and parks
• Provides strict operational standards
• Requires that collectives be subject to a public hearing for approval
• Could provide additional funding resources for enforcement
activities
Next Steps
• Provide direction to staff
• Option # 1 — Take no further action
• Option # 2 — Competing initiative to ban
• Option # 3 — Competing initiative to allow, but regulate
Initiative Comparison —
FYFi"iL•'FTTm
",aco deand maims o adequate seckr ty on the Alarm System.
S ecusrey IIfecuroi Plan pmmd,vs ncludnghghu ngaad alarms reasonably Li reared unformed security guard during operenng hours'.
Required 'de geed ca ensure safety mf pecconi ad protect- 4id e. asna 11 ance
fmm theft:` - M,in mun lighting:
HeursafOp ... clam No restrictions
ventilation System No requeeer,id
Signage No signage restrictions
Annual gepertngl Renewal every 2 yeacs
Compliance Inspections'.
Directoq officer or senior general manager of the
Background Rertrietiens collective or cooperative must provide a list of
any felonyconviSsions for crimes of violance,
laraeny,or fraud within the last 10 years
M ne,PArmheacal Yes with ;a parvart or guardian
Monday - Saturday 10:00am - 11:00pm
Sunday 11:00am -7:00p re
Separate vent lat on s,tc..re, hired.
Outdoor signage on Medical Marijuana: shall not contain
pictorial represeuaations ofthe marijuana plant or pictorial
reconstruction of marijuana use
Comparison — Development Standards
Annual complarre ir,rati dnsrequred
Lmployees, managers or volunceecs may not have beam
convicted of, or plead guilty /no- contest to a felony or
misdemeanor drug charge within the past 4 years.
No one under 1$ is pcare tted
CITY COUNCIL MINUTES 17 JUNE 3, 2014
1 0A -17
pll oammereial Zones..
Zones Permitted All Industrial Zones;
H'ofessianal Zane
Distance/ Separation 600- feetfram:
Requirements Schaal, (grades K -12)
Number Of establishments.:
Separation from other
dispensaries
Grow marijuana
On Site
Permit fApproval Process
M n mum'af 22
No separation requirements
Yes
Ministerial
"Notice of Completed Registration"
Industrral Zones M I, M2
1,000 feet from:
Resid.tial zones
Park,
Schools
125 feet from:
A freeway or designated principal arterial (Master
plan of streets and highways)
Mazimiou of
1,000 feet from another Medical Marijuana
dispensary
No
Conditional Use Permit
(public notice / hearings
Mayor Pro Tern Tinajero noted that current Moratorium has not been
successful; listed disadvantages; if City does not take action the voters will
only consider a measure that is not good for the City — does not limit the
number and not written by elected officials that have the best interest of
the community; City proposed initiative would allows us to have control
and limit the number of dispensaries and generate revenue; code
enforcement needs to address other quality of life issues; propose 12
dispensaries in the City; fact that we don't have enough staff to address
the current number of illegal businesses is reason for competing ballot
measure on the November 2014 ballot.
Councilmember Reyna asked what formula used to derive safe guards
and number of establishments to allow. Acting Director Haluza explained
the allowable area and that additional facilities could be added, but maybe
not all. City Attorney Carvalho noted that some restrictions may have to
be lifted to allow for number requested by City Council. Councilmember
Reyna continued and noted that criteria could be reconfigured, but would
have to be analyzed; buffer for schools and sensitive areas has already
been incorporated into proposed location map; location criteria is most
important in determining the location of dispensaries; would like to stay
true to the restrictions set by Council and willing to allow a few more
dispensaries to be added.
Councilmember Benavides opined that no action should not be an option
but would like to discuss measure to ban dispensaries. Acting Planning
and Building Director Haluza indicated that in 2007 the City considered
health related issues such as Hooka parlors. Spoke of the less that
desirable effects of these type of businesses. What are the secondary
impacts to the businesses if they are allowed? Police Chief spoke of
profile of individuals that frequent business; general demographic is young
CITY COUNCIL MINUTES 18 JUNE 3, 2014
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20 year olds that don't appear to have medical issues. Considered with
complaints received from members of the community, number of robberies
and have posed negative quality of life to the neighborhoods. Do not have
the resources to address the problems and support the regulations.
Spoke of cities of Garden Grove and Lake Forest's efforts to close down
businesses. City Attorney Carvalho indicated that cities can make own
land use decisions; Collectives could be in operation right now; but
dispensaries are different (store fronts); Lake Forest has spent millions of
dollars to close down, while other cities have regulated. The Attorney
General has guidelines to allow Collectives and some businesses have
tried to comply with those regulations, while other area not. City has
enforcement options. Asked what the enforcement plan was to address
the business and staff to present the cost of regulating /enforcing the
impacts associated with a City initiative. City Manager Cavazos indicated
that it is estimated at $1,000,000 collected that could be used by Code
Enforcement and Police department staff. Councilmember Benavides
concerned that City changing law and would be pre- mature to allow
dispensaries. Supports ban on establishments.
Police Chief Rojas indicated that City currently does not have successful
enforcement program and would be difficult to enforce regulated business.
Councilmember Amezcua noted that option 1 is not an option.
Mayor Pro Tern Tinajero said that currently it is a quality of life issue
because we don't regulate and operating close to homes and other
businesses, but if regulated would be controlled; if more resources
available City could enforce. City has qualified Voter Initiative and City
must take action; out of neighborhoods and schools. Also, youth of today
is different than in the past.
Councilmember Benavides opined that option 1 is not an option; supports
an outright ban. Concerned that City does not have a plan in place to
address issue or regulate businesses. Motion to support Option 3.
Mayor Pro Tern Tinajero proposed ballot initiate to allow up to 12
Collective. Councilmember Reyna supports staff proposed guidelines and
1,000 feet from other dispensaries. Councilmember Reyna also noted
that measure will make jail solvent.
Mayor Pulido noted that qualified voter initiative on the ballot and City
must be proactive and attempt to develop better regulated initiative.
Asked staff to evaluate the enforcement needs and impacts associated
with a City initiative on medical marijuana, including how the City proposes
to utilize the estimated tax revenue generated by such a measure. City
must have enough to recover enforcement cost for entire City. US
Congress proposing change at the federal level to respect state laws as it
related to medical marijuana.
CITY COUNCIL MINUTES 19 JUNE 3, 2014
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MOTION: Direct staff to prepare necessary documents to place a
competing ballot measure on the November 2014 ballot regarding
medical marijuana collectives /cooperatives.
MOTION: Tinajero
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
PUBLIC HEARINGS
SECOND: Reyna
Amezcua, Pulido, Reyna, Tinajero (4)
Benavides (1)
None (0)
Martinez, Sarmiento (2)
75A. CONTINUED PUBLIC HEARING — FINAL ENVIRONMENTAL IMPACT
REPORT NO. 2010 -01, AMENDMENT APPLICATION NO. 2014 -01 AND
GENERAL PLAN AMENDMENT NO. 2014 -01 FOR PARK VIEW AT
TOWN AND COUNTRY MANOR LOCATED AT 555 E. MEMORY LANE —
STEVE LAZARIAN, APPLICANT — Planning and Building Agency
Planning Commission approved recommended action on April 14, 2014 by
a vote of 6 -0 (Nalle absent).
Legal Notice published in the Orange County Reporter April 25, 2014 and
notices mailed on April 24, 2014.
At the May 6, 2014 City Council Meeting, Mayor Pulido opened the Public
Hearing. There were no speakers and the Hearing closed.
Continued from the May 6, 2014 City Council Meeting by a vote of 7 -0.
MOTION:
1. Adopt a resolution.
RESOLUTION NO. 2014 -028 - A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL
PLAN AMENDMENT NO. 2014 -01 AND CERTIFYING FINAL
ENVIRONMENTAL IMPACT REPORT NO. 2010 -01 AND
APPROVING THE MITIGATION MONITORING PROGRAM FOR THE
PROPERTY LOCATED AT 555 EAST MEMORY LANE
2. Place ordinance on first reading and authorize publication of title.
CITY COUNCIL MINUTES 20 JUNE 3, 2014
1 OA -20
ORDINANCE NO. NS -2863 - AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA REZONING THE TOWN
AND COUNTRY MANOR PROPERTY LOCATED AT 555 EAST
MEMORY LANE FROM SUBURBAN APARTMENT (R -4) TO
SPECIFIC DEVELOPMENT NO. 87 (SD -87) (AA NO. 2014 -01) AND
ADOPTING SPECIFIC DEVELOPMENT NO. 87 (SD -87) FOR SAID
PROPERTY
MOTION: Amezcua SECOND: Tinajero
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero
(5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
JOINT SESSION OF THE CITY COUNCIL AND THE SANTA ANA FINANCING
AUTHORITY
80A. RESOLUTIONS EXECUTING AGREEMENTS AND FINANCING
DOCUMENTS RELATED TO DEFEASE (RETIRE), REFUND, AND
AMENDING BOND SERIES 1994A, 2004A, 1998, AND 2007 LEASE
AGREEMENT OF POLICE ADMINISTRATION, HOLDING FACILITY AND
CITY HALL FOR THE PARKING STRUCTURE — Finance and
Management Services
li7101110JdA
1. Adopt resolutions.
RESOLUTION NO. 2014 -029 - A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA APPROVING THE FORM
AND AUTHORIZING THE EXECUTION OF CERTAIN LEASE
FINANCING DOCUMENTS IN CONNECTION WITH THE
DEFEASANCE OF A PORTION OF THE SANTA ANA FINANCING
AUTHORITY POLICE ADMINISTRATION AND HOLDING FACILITY
LEASE REVENUE BONDS, SERIES 1994A, AND THE
DEFEASANCE AND REFUNDING OF THE OUTSTANDING CITY OF
SANTA ANA CERTIFICATES OF PARTICIPATION (1998 CITY HALL
EXPANSION PROJECT) AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO
CITY COUNCIL MINUTES 21 JUNE 3, 2014
1 OA -21
RESOLUTION NO. 2014 -030 - A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA APPROVING AN
AMENDMENT TO THE LEASE AGREEMENT RELATING TO THE
FINANCING AND REFINANCING OF THE PARKING STRUCTURE
ADJACENT TO THE STATE APPELLATE COURT BUILDING IN
SANTA ANA, CALIFORNIA, APPROVING FORM AND
AUTHORIZING EXECUTION OF RELATED DOCUMENTS AND
APPROVING OFFICIAL ACTIONS
2. Authorize the City Manager and Clerk of the Council to execute
the following documents, subject to non - substantive changes
approved by the City Attorney:
AGMT NO.
2014 -133 - Lease Termination Agreement
AGMT NO.
2014 -133 -A - Site and Facility Lease
AGMT NO.
2014 -133 -B - Lease Agreement
AGMT NO.
2014 - 133 -C- Memorandum of Lease Agreement
AGMT NO.
2014 -133 -D - Assignment Agreement
AGMT NO.
2014 -133 -E - Letter Agreement for Purchase
AGMT NO.
2014 -133 -F - 1994 Bonds Escrow Agreement
1998 Certificates
Redemption Request
AGMT NO.
2014 -133 -G - 1998 Certificates Escrow Agreement
AGMT NO.
2014 -133 -H - 1998 Certificates Termination Agreement
Form of Opinion
of Special Counsel
AGMT NO.
2014-133-1- 3`d Modification to 1994 Ground Lease
AGMT NO.
2014 -133 -J - 3`d Modification to 1994 Lease Agreement
Consent of
1994 Bond Insurer
AGMT NO.
2014 -133 -K - Amended Lease (2007 City Hall Parking
Structure)
MOTION: Tinajero SECOND: Benavides
VOTE: AYES: Amezcua, Benavides, Pulido, Reyna, Tinajero
(5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Martinez, Sarmiento (2)
CITY COUNCIL RECESSED AT 8:10 P.M. TO THE SANTA ANA FINANCING
AUTHORITY MEETING, FOLLOWED BY THE HOUSING AUTHORITY MEETING
AND RECONVENED AT 8:12 P.M. WITH SAME MEMBERS PRESENT.
CITY COUNCIL MINUTES 22 JUNE 3, 2014
1 OA -22
WORK STUDY SESSION
WS. WORK STUDY — CAPITAL IMPROVEMENT PROJECT (CIP),
MISCELLANEOUS FEE SCHEDULE, AND REAFFIRMING TWO -YEAR
BUDGET ADJUSTMENTS - Finance & Management Services
Proposed Revisions to FY 2014 -2015 Overview
Agenda
• Proposed Revisions to FY 14 -15 Budget
• Proposed Workforce Count and Changes
• Proposed New and Modified Fees
• Proposed Capital Improvement Program
Revisions tot FY 2014 -2015 Total Annual B
et (All Funds)
Genera Fund
204,516,000 3,014,500
1,387,860
208,918,360
Water Enterprise
49,682,190
49,68,2,190
Other Enterpfllse Funds
35,689,074
100,000
35,789,074
Housing Assistance
30,316,015
30,316,015
Comimunitg Development
1$342,090
18,342,050
Special Revenue Fund
15,148,034
15,148,034
CQBG &. Other Grants
13,971,530
13,971,530
Gaipital Projects- Grants & Misc.
8,698,476
31,156,866
89,855,342
GF Related Soecial Revenues
762, 310
762.310
Totals $390,913,5 85 $3,014,500
$37,059y027
CITY COUNCIL MINUTES 23 JUNE 3, 2014
1 OA -23
Full -Time Authorized Positions
1,'700
1,500
1,600
1,100
900
700
500
FY1041 FY11-12 FY12 -13 FY13 -14* FY14 -15
272 Fire Department positions were reduced in association with
outsourcing to OCFA.
*One position added during FY 13 -14
FY 2014 -15 Proposed Workforce Changes
• Net Additions of 2 Full -time positions
• Reallocation of 12 positions
• Net Savings of over $276,000
New and Modified Fees 2.2% CPI — LA /Riverside /Orange County
Services Index
• Five New Fees:
• PBA - Permit Renewal /Extension Fee
• PD — Vehicle Processing Fee
- Street Closure Permit — Accelerated Processing Fee
• PWA — The Depot, Event Space Rental - Suite 100
- Event Space Rental Cleaning Deposits
• Modifying six existing fees:
• FMSA — Credit Card Processing Fee, Extend Waiver
• PD — Downtown Event Litter Control Deposit
- Police Security Services — Lieutenant
- False Alarm Services
• PWA — Street Name Sign
- Construction Inspectors Overtime Rate
Next Steps
• FY 2014 -2015 Budget, Capital Improvement Program and
Miscellaneous Fee Schedule Public Hearing on June 17.
• New Budget and Strategic Plan Implementation on July 1.
Mayor Pulido asked staff to evaluate outstanding street repair needs, both
on the residential and commercial /industrial side and consider whether
CITY COUNCIL MINUTES 24 JUNE 3, 2014
1 OA -24
issuing a bond is needed to address these needs. Also asked for a memo
to Council on the total capital dollars expended over the past 10 years.
COMMENTS
90A CITY MANAGER COMMENTS
• City Council recently approved bond refinancing that will garnish $3M in
savings over the next 10 years.
• City translating the Five -Year Strategic Plan in Spanish and Vietnamese
in the coming weeks.
90B CITY COUNCILMEMBER COMMENTS
Councilmember Amezcua:
• Congratulated all graduates especially Saddleback's Roadrunners and
niece Nicole for graduating from Orange County High School of the
Arts; and
• Happy Father's Day to colleagues and husband, Robert.
Councilmember Reyna:
• Asked that all conserve water and purchase drought resistant plants;
• Participated in Pedestrian Safety event at Pio Pico, well attended and
look forward to similar events in the future; safety education key;
• El Salvador Park and Santiago Little League held movie at the park;
over 100 residents participated;
• YMCA started Toast Masters in 1926 and also celebration of Father's
Day;
• Congratulated all graduates especially Pia Brancolino for receiving her
Masters from Chapman University; students to come back and invest
in our community; and
• Urged all to shop in Santa Ana!
Councilmember Benavides:
• June 15th is Father's Day and Annual Patchwork in Downtown; invited
all to attend and celebrate;
• Asked all to shop and support local businesses;
• Art Walk is this coming weekend ;
• Monthly Community Hours at Southwest Community Center on
Saturday; and
• Invited all to attend 4th of July at Centennial Park — picnic and enjoy
family time.
Mayor Pro Tern Tinajero:
Reminded all to appreciate their Father's; Happy Father's Day to all;
CITY COUNCIL MINUTES 25 JUNE 3, 2014
1 OA -25
• Pony All Stars and Little League Tournament of Champions occurred
over past couple of weeks; also SA Pony won championship against
Huntington Beach;
• Congratulated AA Northeast for Winning Championship and Valley
Little League for having a great season; will be recognizing them at
upcoming City Council meeting;
• Happy Father's Day;
• Drink award winning Santa Ana water; and
• Shop in Santa Ana.
Mayor Pulido:
• Son, Miguel Robert, graduating from High School of the Arts, David
Andrew going to high school and Isabel accepted at OSHA in the
acting program;
• Encouraged that if you have dreams work hard to make it happen like
bringing OSHA to Santa Ana from City of Los Alamitos;
• Congratulations to all graduates;
• Happy Father's Day; and
• Adjourned in memory of former Fire Chief Reimer.
ADJOURNED- 8:43 P.M.
- The next meeting
of the City Council
is scheduled for
Tuesday,
June 17, 2014 at
5:00 p.m. for the
Closed Session
Meeting
immediately followed by the Regular
Open Business
Meeting
at 5:45 p.m. in the
Council Chamber,
22 Civic Center
Plaza, Santa Ana, California.
Adjourn in Memory of
Former Santa Ana Fire Chief, William J. Reimer
(Fire Chief 1979 to 1986)
Maria D. Huizar,
Clerk of the Council
FUTURE AGENDA ITEMS
• Street Car Project Locally Preferred Alignment
• Harbor Blvd. Mixed -Use Plan
• Solar Permit Fee Waiver
• Dangerous and Abandoned Buildings
• Proactive Rental Enforcement Program Renewal
CITY COUNCIL MINUTES 26 JUNE 3, 2014
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