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Home My WebLink About2016-12-20 RegularMINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA DECEMBER 20-21, 2016 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:13 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tern P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO JUAN VILLEGAS COUNCILMEMBERS Absent: NONE STAFF Present: DAVID CAVAZOS, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS • Albert Castillo, spoke in support of retaining the City Manager and Chief of Police. • Carlos Perea, opined that coup against the City Manager. • Roman Reyna, expressed support for City Manager; cautioned as new council moving forward; indicated that former City Council has already evaluated City Manager. • Michael Klubenkin, echoed comments from previous speakers. • Adriana Moreno, indicated that it would be irresponsible to remove the City Manager; he should be credited with City surplus. • Roxana Rosas, supports City Manager, bettered our City; requested a review of quid pro quo with Police union. • Benjamin Vazquez, requested investigation of quid pro quo claim; need to address alleged political corruption. Councilmember Benavides, asked what constitutes a rightful removal or for an official to be placed on administrative leave. CITY COUNCIL MINUTES 1 DECEMBER 20, 2016 City Attorney Carvalho, indicated that her preference is not to provide legal advice in public, unless so requested by the City Council; highlighted process in the Charter that applies to all appointed officials; vote for termination requires five votes and to place on Administrative Leave requires four votes; separate rules and due process rights for City Manager exist in his contract that requires noticing; also, noted that Administrative Leave is not termination; reasonable cause needed to place on Leave to allow for investigation of claim or allegation. Councilmember Benavides, if investigation has already taken place is it reasonable to reopen? City Attorney Carvalho, will need to be evaluated allegations; need to review new allegations. Councilmember Benavides, asked if City has exposure and appearance of retaliation. City Attorney Carvalho, it depends on the facts; caution against double jeopardy; any new allegation would have to be reviewed. Councilmember Sarmiento, procedurally can an evaluation be conducted by new councilmembers? City Attorney Carvalho, two part answer - current law allows members to place items on the Agenda including closed session and case law permits standards of review on performance or to set standards for future performance to be evaluated. Councilmember Sarmiento, opined that comments by members of the public are fair assessment; City may have exposure; have received communication in support of City Manager from Chamber of Commerce in addition to Ryan Chase and First American Title; need to manage issue carefully. Councilmember Tinajero, narrated the dishonesty and shenanigans that this election has brought about; highlighted the accomplishments that City Manager has accomplished in past three years; previous labor negotiations resulted in same increase amongst all bargaining groups; police officers are now held accountable; campaign contribution reports indicate that police union active in election; also, asked if Mayor should be investigated for non-payment of campaign loans. City Attorney Carvalho, have taken matters forward to FPPC as requested by council; also City Manager has investigative authority. Councilmember Tinajero, asked if appropriate for new supervisor to evaluate employee. City Attorney Carvalho, indicated that public comments appropriate and City Council comment after the fact, mindful of Brown Act. Councilmember Sarmiento, noted that closed session discussions are not disclosable and now would be the time to comment. City Attorney Carvalho, items may be discussed, just not the confidential items. CITY COUNCIL MINUTES 2 DECEMBER 20, 2016 COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:46 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: 1. CONFERENCE WITH LEGAL COUNSEL --EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: • 1901 First Street Owner, LLC v. Tustin Unified School District, Orange County Superior Court Case No.: 30-2015-00803234-CU-WM-CJC • 1901 First Street Owner, LLC v. City of Santa Ana, Orange County Superior Court Case No. 30-2016-00876616-CU-CR-CJC • Hank Couisine v. City of Santa Ana; Workers' Compensation Appeals Board case #ADJ8926744 • Richard Marckstadt v. City of Santa Ana; Workers' Compensation Appeals Board case #ADJ8904656; ADJ8904659 2. LIABILITY CLAIMS pursuant to section 54956.95 of the Government Code: Claimant: Elie Rios 3. PUBLIC EMPLOYEE - PERFORMANCE EVALUATION pursuant to Section 54957(b)(1) of the Government Code: Title: City Attorney, Clerk of the Council, and City Manager* *City Manager evaluation placed on the Agenda at the request of Councilmember Villegas, pursuant to Santa Ana Charter Section 411. CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED THE CLOSED SESSION MEETING AT 7:20 P.M. AND CONVENED TO THE REGULAR OPEN MEETING. CITY COUNCIL MINUTES 3 DECEMBER 20, 2016 REGULAR OPEN MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 7:24 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tern P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO JUAN VILLEGAS PLEDGE OF ALLEGIANCE INVOCATION PRESENTATION COUNCILMEMBERS Absent: NONE STAFF Present: DAVID CAVAZOS, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council MAYOR PULIDO CURTIS SMITH, POLICE CHAPLAIN CERTIFICATES OF RECOGNITION presented by MAYOR PRO TEM MARTINEZ to Santa Ana High School Varsity Football Team for going undefeated and making it to the California Interscholastic Federation finals: Coaches: Kris Brown; David Gutierrez; Dakota Lambert; Bill Lux; Cesar Plascentia; Diego Perez; Albert Rodriguez; Thomas Salue; Lance Tayco; Charlie TeGantvoort; Wyatt Teneyet; Na Tukia; Hector Uresti Captains: Jonathan Briseno; Jorge Briseno; Steven Cruz; Roger Leon; Tui Levao Jesus Viera Players: Luis Aguilar; Pablo Aguirre; Pablo Arredondo; Marcos Barriga; Joshua Brito; Leo Bucio; Kevinn Cea; Alan Contreras; Julian Dimas; Matt Dorantes; Enrique Durate; Zennen Flores; Francisco Franco; David Garcia; Ricardo Garcia; Julian Gomez; Mario Gonzalez; Mark Hernandez; Eddy Lares; Nick Larriva; Miguel CITY COUNCIL MINUTES 4 DECEMBER 20, 2016 Leon; Damian Macias; Everado Medrano; Ismael Mojica; Ricardo Ornelas; Allen Pacheco; Kelvin Pacheco; Israel Pantaleon; John Ramirez; Jerard Rojas; Henry Sandierano; John Sibrian; Ulysses Velasco; Jose Zaragoza CLOSED SESSION REPORT - No reportable actions. AGENDA ITEM CONSIDERED OUT OF ORDER 13A. NOMINATED BY COUNCILMEMBER SOLORIO AS THE WARD 3 REPRESENTATIVE TO THE PLANNING COMMISSION FOR A FULL TERM EXPIRING DECEMBER 15, 2020 {STRATEGIC PLAN NO. 5, 1} - Clerk of the Council Office 13D. NOMINATED BY COUNCILMEMBER VILLEGAS AS THE WARD 5 REPRESENTATIVE TO THE PERSONNEL BOARD FOR A FULL TERM EXPIRING DECEMBER 15, 2020 {STRATEGIC PLAN NO. 5, 1} - Clerk of the Council Office MOTION: 1. Appoint Kenneth Nguyen to the Planning Commission (Ward 4 resident; replacing B. Bauer). 2. Appoint Stephanie Najera to the Personnel Board (Ward 5 resident). MOTION: Solorio SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) OATH OF OFFICE — Administered by Clerk of the Council to the following: • Kenneth Nguyen, Planning Commission • Stephanie Najera, Personnel Board PUBLIC COMMENTS Michael Klubenkin, request support for his friend Ilya Tseglia and his plea to assist son who is ward of the State. CITY COUNCIL MINUTES 5 DECEMBER 20, 2016 • Joese Hernandez, concerned with City Manager, supports district elections, encourages ICE contract terminated, opposed to Heritage Project, supports Centro Cultural funding. • Alex Vega, concerned with political dishonesty. AGENDA ITEM CONSIDERED OUT OF ORDER 50C. ORDINANCE RELATING TO THE CITY'S PROCEDURES CONCERNING IMMIGRATION STATUS AND THE ENFORCEMENT OF FEDERAL IMMIGRATION LAW FOLLOWING THE DECLARATION OF THE CITY OF SANTA ANA AS A SANCTUARY FOR ALL ITS RESIDENTS {STRATEGIC PLAN NO. 5, 6F)- City Manager's Office • Robert Oliver, spoke in support of proposed Sanctuary City Ordinance, encouraged all to support immigrant families. • Benjamin Vazquez, opined that life of the families and children in our community will benefit from ordinance; also urged all to terminate the ICE contract. • Seth Davis, professor at UCI Law School, noted that under the 10th Amendment the City has authority to approve ordinance and regulate safety and welfare of the residents. • Leah Citman, assistant professor at UCI, need to focus on constitutional law. • Sameer Ashar, Clinical Professor at UCI Law, advocates for immigrant rights spoke on prohibition on sharing information on immigration and citizenship status; need to build and reinforce trust; federal government cannot interfere with local government; strong legal footing. • Jennifer Koh, law professor at Western Law School, member of Newsong Church; spoke in opposition to Section 7F to allow for exception to use funds for those with felony convictions — too broad; opined that it will not improve trust; Civil immigration law also to be removed. • Karina Gutierrez, staff attorney at Public Law Center, indicated that due process rights have been violated — encouraged surplus funds have universal representation for immigrants. • Carlos Perea, member of immigrant rights, submitted correspondence for consideration; Santa Ana to lead in efforts. • Denise Hinojosa, opined that human right violated in Section 7F. • Hairo Cortez, support ordinance along with recommended changes by law professors; need to strengthen protections. • Sandra Ortega, CLUE member, embrace sanctuary ordinance, inherent worth and dignity is the responsibility of the City Council; oversight commission to be composed of community members that will oversee; district based elections and housing opportunity ordinance to benefit the community. • Alexis Nava Teodoro, acknowledged the democratic process and professors who have assisted in crafting revised ordinance for consideration; opined that Section 7F is prejudice; support a task force with investigative powers. • Sergio Barragan, spoke in support of ordinance; suggested educating the community on what Sanctuary City means. CITY COUNCIL MINUTES 6 DECEMBER 20, 2016 • Alba Piedra, suggested laws that protect our community. • Mayre Tapia, member of OCCCO, urged all to support ordinance; make law before President -Elect Trump takes office on January 20tn • Leonel Velazquez, indicated that residents live in fear; officials need to protect community. • Salvador Sarmiento, supports a strong ordinance that protects residents. • Gil Salmon, supports changes including removing voter registration requirement to serve on a commission; allow for inclusionary policies. • Alex Vega, supports ordinance. • David Carbajal, spoke in support of proposed ordinance. • Peter A. Katz, noted that women rights have changed this century; need to continue fighting and protecting our residents. • Marilynn Montano, supports ordinance that includes real protections for residents. • Julian Garcia, member of SEIU, indicated that union has supported many candidates that have been elected, request support for contracting union members. • Marcella Rosas, supports rent control; address substandard housing standards; opposed to Heritage Project. Councilmember Benavides, thanked colleagues and speakers. Supports the ordinance with revisions as presented by the residents, seconded by Councilmember Tinajero. Councilmember Tinajero, thanked speakers. Councilmember Sarmiento, suggested removing any reference to immigration status; indicated that City has Sanctuary City practices and policies in place. Councilmember Villegas, supports ordinance but cautioned that may need to revisit if financially impacts our community. Mayor Pro Tern Martinez, asked if financial ramifications of ordinance considered; may lose some funding including Community Development Block Grants; supports terminating contract with ICE; asked if reuse study amount of $50k is sufficient or if need to increase amount; suggested amendment to motion and increase Request for Proposal amount. Councilmember Tinajero supports bringing back item for reconsideration. Councilmember Solorio, noted that immigrants need to be treated with dignity; have supported legislation at the State level including driver license for DACA students; need to make sure that Muslim community protected as well as women's rights; need to stop any effort to reduce or eliminate federal funding; suggested office of immigrant rights; in support of ordinance that will further protect our residents. CITY COUNCIL MINUTES 7 DECEMBER 20, 2016 Mayor Pulido, supports complete census count that will bring additional funding to the City and be able to leverage funds; also may need to revisit ordinance if financially impacted at the Federal level. MOTION: Place revised ordinance on first reading and authorize publication of title. ORDINANCE NO. NS-2908 - AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA RELATING TO THE CITY'S PROCEDURES CONCERNING IMMIGRATION STATUS AND THE ENFORCEMENT OF FEDERAL IMMIGRATION LAW FOLLOWING THE DECLARATION OF THE CITY OF SANTA ANA AS A SANCTUARY FOR ALL ITS RESIDENTS MOTION: Benavides SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) PUBLIC COMMENTS (Agendized items) • Chris Schmidt, spoke in support of Agenda Item-25A, of lease agreement, represent Westend COP. a. Mayor Pro Tern Martinez, asked if City has assets that can be used in lieu of month to month lease. Report on sustainability and options for consideration. b. City Manage Cavazos, will review all options and bring back to council for consideration. CONSENT CALENDAR ITEMS MOTION; Approve staff recommendations on Consent Calendar Items 10A through 31 F, with the following modifications: o Mayor Pro Tern Martinez, pulled Agenda Items 19D, 19F, 20A, 20B, 25A, 25E, 25F, 25G, 25H, 251 and 31 B for separate action; and o Councilmember Solorio, abstained on Agenda Items 22A and 22B due to campaign contribution and potential conflict of interest. MOTION: Solorio SECOND: Benavides CITY COUNCIL MINUTES 8 DECEMBER 20, 2016 VOTE: AYES NOES: ABSTAIN: ABSENT: MINUTES Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) ADMINISTRATIVE MATTERS show 10A. MINUTES FROM THE REGULAR MEETING OF DECEMBER 6, 2016 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Approve Minutes. 10B. MINUTES FROM THE SPECIAL MEETING OF DECEMBER 13, 2016 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Approve Minutes. ORDINANCES/SECOND READING In the event a Councilmember recorded an "abstention" before consideration of the following ordinance(s) on first reading, such abstention will also be reflected in the minutes for second reading. I IA. ZONING ORDINANCE AMENDMENT NO. 2016-04 TO AMEND PROVISIONS OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE RELATING TO UNDERGROUND UTILITY INSTALLATIONS — CITY OF SANTA ANA, APPLICANT {STRATEGIC PLAN NOS. 5, 1) - Clerk of the Council Office Placed on first reading at the December 6, 2016 City Council meeting and approved by a vote of 4-0 (Martinez, Pulido and Reyna absent). Published in the Orange County Reporter on December 9, 2016. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS-2906 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO PROVISIONS CITY COUNCIL MINUTES 9 DECEMBER 20, 2016 OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE REQUIREMENT OF UNDERGROUND UTILITY INSTALLATIONS 11 B. AMENDMENT APPLICATION NO. 2016-04 TO REMOVE AND REPLACE THE CITY OF SANTA ANA ZONING SECTIONAL DISTRICT MAPS, CITY OF SANTA ANA - APPLICANT {STRATEGIC PLAN NOS. 5, 1) - Clerk of the Council Office Placed on first reading at the December 6, 2016 City Council meeting and approved by a vote of 4-0 (Martinez, Pulido and Reyna absent). Published in the Orange County Reporter on December 9, 2016. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS-2907 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REPLACING THE CITY OF SANTA ANA ZONING SECTIONAL DISTRICT MAPS INTO A NEW GRAPHIC FORMAT BOARDS / COMMISSIONS / COMMITTEES 13A. AGENDA ITEM TAKEN OUT OF ORDER 13B. NOMINATED BY COUNCILMEMBER SOLORIO AS THE WARD 3 REPRESENTATIVE TO THE HISTORIC RESOURCES COMMISSION FOR A FULL TERM EXPIRING DECEMBER 15, 2020 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Appoint Mike Tardif to the Historic Resources Commission (Ward 3 resident). 13C. NOMINATED BY COUNCILMEMBER VILLEGAS AS THE WARD 5 REPRESENTATIVE TO THE PLANNING COMMISSION FOR A FULL TERM EXPIRING DECEMBER 15, 2020 (STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Appoint Cynthia Contreras -Leo to the Planning Commission (Ward 6 resident; replacing J. Gartner). 13D. AGENDA ITEM TAKEN OUT OF ORDER FINAL TRACT MAP NOTIFICATIONS CITY COUNCIL MINUTES 10 DECEMBER 20, 2016 Pursuant to Section 34-183 of the Santa Ana Municipal Code, the City Engineer has received this Final Map and is in the process of reviewing the map for final approval. The City Engineer shall approve or disapprove this map within 10 days of the City Council Meeting. 17A. CERTIFICATION AND APPROVAL BY CITY ENGINEER — FINAL TRACT MAP NO. 17715 (4010 WEST MCFADDEN AVENUE) {STRATEGIC PLAN NO. 3, 21 - Public Works Agency MOTION: Receive and file. MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — None 19B. EXCUSED ABSENCES — None 19C. STRATEGIC PLAN MONTHLY REPORT FOR NOVEMBER 2016 {STRATEGIC PLAN NO. 5, 1) - City Manager's Office MOTION: Receive and file. Mayor Pro Tern Martinez, supports project. MOTION: Authorize the Planning and Building Agency to release the Request for Proposals to qualified consulting firms to provide planning and technical services and support for the preparation of comprehensive General Plan Update for the City of Santa Ana. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN: ABSENT: CITY COUNCIL MINUTES SECOND: Benavides Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) 11 DECEMBER 20, 2016 19E. DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT METRICS {STRATEGIC PLAN NO. 3, 41 - Community Development Agency MOTION: Receive and file. Mayor Pro Tern Martinez, requested a continuance to be able to review report. MOTION: Continue consideration of matter to the January 17, 2017 City Council Meeting, MOTION: Martinez SECOND: Solorio VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) BUDGETARY MATTERS APPROPRIATION ADJUSTMENTS Mayor Pro Tern Martinez, asked if the Economic Development Strategic Plan was ever approved. Opposed the item as presented. Marc Morley, Economic Development Specialist, indicated that Plan had been presented to staff and agreement was one of the elements considered that would develop tourism among other areas. Council discussion ensued. Councilmember Sarmiento, noted that the Plan had been submitted by RSG for approval, but deficient. Councilmember Solorio, volunteered to work with the Chamber; commitment should be ongoing. MOTION: CITY COUNCIL MINUTES 12 DECEMBER 20, 2016 1. AGMT NO. 2016-367 - Authorize the City Manager and Clerk of the Council to execute an agreement with the Greater Santa Ana Vitality Foundation, a non-profit arm of the Santa Ana Chamber of Commerce, subject to non -substantive changes approved by the City Manager and City Attorney, for economic development services, for a one-year period ending on December 20, 2017, in the amount not to exceed $500,000. 2. Approve an appropriation adjustment. (Requires five affirmative votes) APPROPRIATION ADJUSTMENT NO. 2017-71- Recognizing $500,000 in revenue fees account and appropriate the funds to the Economic Development Contract Services expenditure account for the agreement with Greater Santa Ana Vitality Foundation. MOTION: Benavides SECOND: Sarmiento VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) Mayor Pro Tern Martinez, indicated the unfunded liability is of concern, does not support use of surplus funds; recommend that funds be moved to rainy day. Motion to table by Martinez, seconded by Mayor Pulido. City Manager Cavazos, said that item would be instrumental in addressing unfunded liability and what allowed us to improve credit rating; City has rainy day fund fully funded. Councilmember Sarmiento, agrees that there is uncertainly; supports funding liability account for comments made by City Manager. Councilmember Benavides, supports funding economic uncertainty funds. Offered substitute motion to accept recommendation, seconded by Councilmember Sarmiento CITY COUNCIL MINUTES 13 DECEMBER 20, 2016 Councilmember Solorio, expressed concern that many positions have been authorized, but continue to be vacant or unfunded; request report of financial status and use of surplus. SUBSTITUTE MOTION: Approve an appropriation adjustment. (Requires five affirmative votes) APPROPRIATION ADJUSTMENT NO. 2017-064 - Appropriating $500,000 from Fund Balance, resulting from Fiscal Year 2015-16 (General Fund), for the City's contribution to the Public Agency Retirement Services account for the purpose of pre -funding pension obligations. MOTION: Benavides VOTE: AYES: NOES: ABSTAIN: ABSENT: "Substitute Motion failed. SECOND: Sarmiento Benavides, Sarmiento, Tinajero, (3) Martinez, Pulido, Solorio, Villegas (4) None (0) None (0) ORIGINAL MOTION: Table matter. MOTION: Martinez SECOND: Pulido VOTE: AYES: Martinez, Pulido, Solorio, Villegas (4) NOES: Benavides, Sarmiento, Tinajero, (3) ABSTAIN: None (0) ABSENT: None (0) SPECIFICATIONS — PURCHASE OF EQUIPMENT AND SERVICES 22A. SPEC. NO. 16-134 - CONTRACT AWARD FOR ONE CHEVY PASSENGER VAN {STRATEGIC PLAN NO. 6, 21 (Police Department) - Finance and Management Services MOTION: Authorize a one-time purchase and payment of purchase order to Santa Ana vendor Guaranty Chevrolet Motors, Inc., for the purchase of one Chevy 2500 passenger van in an amount not to exceed $29,530 plus a contingency of $1,475 for a total amount of $31,005, subject to non - substantive changes approved by the City Manager and City Attorney. CITY COUNCIL MINUTES 14 DECEMBER 20, 2016 *Councilmember Solorio, reported a potential conflict of interest and abstained on matter. 22B. SPEC. NO. 16-135 - CONTRACT AWARD FOR ONE CHEVY TAHOE SPORT UTILITY VEHICLE (SUV) {STRATEGIC PLAN NO. 6, 2) (SURPLUS ALLOCATION FUNDING) - Finance and Management Services MOTION: Authorize a one-time purchase and payment of purchase order to Santa Ana vendor Guaranty Chevrolet Motors, Inc. for the purchase of one Chevy Tahoe SUV in an amount not to exceed $48,435 plus a contingency of $2,420 for a total amount of $50,855, subject to non - substantive changes approved by the City Manager and City Attorney. *Councilmember Solorio, reported a potential conflict of interest and abstained on matter. PROJECTS/CHANGE ORDERS 23A. AWARD CONTRACT FOR PEDESTRIAN IMPROVEMENTS ON SANTA ANA BOULEVARD PROJECT (PROJECT NO. 17-6888) {STRATEGIC PLAN NO. 1, 3B) - Public Works Agency MOTION: 1. Authorize the City Manager and Clerk of the Council to award and execute a construction contract to Hardy & Harper, Inc., the lowest responsible bidder, in accordance with the base bid plus Additive Alternates 1, 2, and 3, in the amount of $278,000, for the term beginning upon execution of the contract and ending upon project completion, to install Pedestrian Improvements on Santa Ana Boulevard, 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 $347,500, which includes the construction contract, administration, inspection and testing, and an authorized contingency of $27,800. AGREEMENTS MOTION: Authorize the City Manager and Clerk of the Council to execute a month -to -month lease agreement with Rio West, LLC, for the period of November 1, 2016 to October 31, 2017, for the use of the Westend CITY COUNCIL MINUTES 15 DECEMBER 20, 2016 Substation, in the amount of $2,472 per month, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Martinez SECOND: Solorio VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 25B. AGMT NO. 2016-369 - AMENDMENT TO LOAN AGREEMENT AND PROMISSORY NOTE FOR AFFORDABLE HOUSING AT 2151 EAST FIRST STREET {STRATEGIC PLAN NO. 5, 3A; 3C) - Community Development Agency MOTION: Authorize the City Manager and the Clerk of the Council to execute an amendment to the HOME Investment Partnerships Program loan agreement and Promissory Note with Guest House LP to include the Limited Partner in the agreement and to adjust the affordability of the units in the event of a foreclosure for 71 units of affordable housing at 2151 E. First Street, subject to non -substantive changes approved by the City Manager and City Attorney. 25C. AGMT NO. 2016-370 - PURCHASE OF UNLEADED AND DIESEL FUEL {STRATEGIC PLAN NO. 6, 2) - Finance and Management Services MOTION: Authorize the City Manager and Clerk of the Council to execute a one-year agreement from January 1, 2017 through December 31, 2017 with Santa Ana vendor IPC Fuel Distribution, Inc. in a total amount not to exceed $950,000, subject to non -substantive changes approved by the City Manager and City Attorney. 25D. AGMT NO. 2016-371 - MAINTENANCE AND SUPPORT OF CLASS SOFTWARE FOR THE CITY'S ATHLETIC FIELDS, RECREATION CENTERS AND SENIOR CENTERS {STRATEGIC PLAN NO. 5, 6C} (SURPLUS FUNDING) - Parks, Recreation and Community Services Agency MOTION: Authorize the City Manager and Clerk of the Council to execute a second amendment with Active Network, which will extend the term end - date from November 30, 2016 to November 30, 2017 and increase the total amount under the existing agreement and amendment by $11,965.91 for CITY COUNCIL MINUTES 16 DECEMBER 20, 2016 the renewal period for a total amount of $34,230.88 for the three-year period, subject to non -substantive changes approved by the City Manager and City Attorney. Mayor Pro Tern Martinez, expressed support for Agenda Items 25E and 25F. MOTION: - Authorize the City Manager and the Clerk of the Council to execute an agreement with KOA Corporation ("KOA") with an aggregate amount not to exceed $80,518.75 for a one-year term expiring on December 31, 2017, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Martinez SECOND: Solorio VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) MOTION: Authorize the City Manager and the Clerk of the Council to execute the attached agreement with DKS Associates ("DKS") to prepare an innovative, phased, and transitional parking code requirements study with an aggregate amount not to exceed $99,972 for a one-year term expiring on December 31, 2017, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Martinez VOTE: AYES: NOES: CITY COUNCIL MINUTES SECOND: Solorio Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) 17 DECEMBER 20, 2016 Il-�i�Jl�l ABSENT: None (0) None (0) MOTION: Authorize the City Manager and Clerk of the Council to execute a purchase agreement for the purchase price for the full real property acquisition and goodwill (if any) with property owner George De Anda, for the property located at 1221 North Bristol Street and 1240 West Washington Avenue (APN Nos. 405-274-12; 405-274-13), in an amount of $1,300,000, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Tinajero SECOND: Benavides VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) SeT'VI Mayor Pro Tern Martinez, concerned that Memorandum of Understanding (MOU) with Police Officers Association referred was not included. Executive Director of Personnel Services, Ed Raya, indicated that agreement had been previously approved by the City Council, PERS notified the City that benefits were not PERSable; previous administration entered into agreement with PARS to provide benefit included in MOU. MOTION: Authorize the City Manager and Clerk of the Council to restate and amend the agreement with Public Agency Retirement Services (PARS), establishing a trust to provide supplemental retirement benefits to a limited number of former Police Officers Association members for an CITY COUNCIL MINUTES 18 DECEMBER 20, 2016 extended period in an amount not to exceed $125,000 per year, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Tinajero SECOND: Sarmiento VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) MOTION: Authorize the City Manager and Clerk of the Council to execute a purchase agreement of Tenant Interest and goodwill (if any) with property owner, Mike Otero, for the property located at 2123 South Bristol Street (APN Nos. 015-194-20, -21, -22) in the amount of $31,335. MOTION: Benavides SECOND: Tinajero VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) 25J. AGMT NO. 2016-377 - CONSULTANT DESIGN SERVICES FOR THE SANTA ANA ZOO GIANT RIVER OTTER EXHIBIT (PROJECT NO. 16-2658) {STRATEGIC PLAN NO. 6, 1G) - Public Works Agency and Parks Recreation and Community Services MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with CLR Design for the two-year term beginning December 21, 2016, and expiring on December 20, 2018, with the option for the City to grant up to a two one-year renewal options, in the total amount of $313,695, and authorize a 10 percent contingency for design in the amount CITY COUNCIL MINUTES 19 DECEMBER 20, 2016 of $31,370, subject to nonsubstantive changes approved by the City Manager and City Attorney. MISCELLANEOUS -BUDGET 29A. PAYMENT AUTHORIZATION TO PROCURE AMERICA FOR ELECTRIC UTILITY COST REDUCTION SERVICES {STRATEGIC PLAN NO. 4, 3D} - Finance and Management Services; and Parks Recreation and Community Services MOTION: Authorize payment of Procure America Invoice #6-1603b in the amount of $15,078.99 as compensation for generating electrical utility cost savings under Agreement A-2014-227. 29B. DONATION AGREEMENT TO SUPPORT A RELAY FOR LIFE EVENT (STRATEGIC PLAN NO. 5, 4) - Councilmember Tinajero MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with American Cancer Society, Inc. for a one-time donation amount of $1,000, subject to non -substantive changes approved by the City Manager and the City Attorney. LAND USE MATTERS CONDITIONAL USE PERM ITIVARIANCES 31A. CONDITIONAL USE PERMIT NO. 2016-36 AND VARIANCE NO. 2016-07 TO ALLOW THE TWO THUMBS UP CAR WASH AT 4412 WESTMINSTER AVENUE — JAMES GARTNER, APPLICANT {STRATEGIC PLAN NO. 3, 21 - Planning and Building Agency Planning Commission approved recommended action on November 28, 2017, by a vote of 6-0 (Gartner abstained). MOTION: Receive and file the staff report approving Conditional Use Permit No. 2016-36 as conditioned and Variance No. 2016-07 as conditioned. CITY COUNCIL MINUTES 20 DECEMBER 20, 2016 Planning Commission approved recommended action on November 28, 2017, by a vote of 7-0. Councilmember Martinez, opposed to item due to lack of retrofit. Councilmember Solorio, echoed concern; need boiler plate language for future facilities. MOTION: Receive and file the staff report approving Conditional Use Permit No. 2016-27 as conditioned. MOTION: Sarmiento SECOND: Tinajero VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) 31C. CONDITIONAL USE PERMIT NO. 2016-34 TO ALLOW THE OPERATION OF A MICROBREWERY WITH A LIMITED TASTING AREA AND LIMITED DIRECT SALES TO CUSTOMERS LOCATED AT 3480 WEST WARNER AVENUE, UNIT B - SANTA ANA RIVER BREWING CO., APPLICANT {STRATEGIC PLAN NOS. 3, 2, 4) - Planning and Building Agency Planning Commission approved recommended action on November 28, 2017, by a vote of 7-0. MOTION: Receive and file the staff report approving Conditional Use Permit No. 2016-34 as conditioned. 31 D. CONDITIONAL USE PERMIT NO. 2016-39 TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES FOR ON -PREMISE CONSUMPTION FOR PIZZA HUT RESTAURANT LOCATED AT 3317 SOUTH BRISTOL STREET - ALICIA MALDONADO, APPLICANT {STRATEGIC PLAN NO. 3, 2) - Planning and Building Agency Planning Commission approved recommended action on November 28, 2017, by a vote of 7-0. MOTION: Receive and file the staff report approving Conditional Use Permit No. 2016-39. CITY COUNCIL MINUTES 21 DECEMBER 20, 2016 31 E. CONDITIONAL USE PERMIT NO. 2016-40 TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES FOR ON -PREMISE CONSUMPTION AT 2791 NORTH MAIN STREET - TERRY WOMACK, APPLICANT {STRATEGIC PLAN NOS. 3, 2, 4) - Planning and Building Agency Planning Commission approved recommended action on November 28, 2017, by a vote of 7-0. MOTION: Receive and file the staff report approving Conditional Use Permit No. 2016-40. 31 F. CONDITIONAL USE PERMIT NO. 2016-42 TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES FOR ON -PREMISE CONSUMPTION AND CONDITIONAL USE PERMIT NO. 2016-43 TO ALLOW AFTER-HOURS OPERATION UNTIL 2:00 A.M. FOR GU RAMEN LOCATED AT 304 NORTH MAIN STREET - GREGG HANOUR, APPLICANT {STRATEGIC PLAN NO. 3, 2, 41 - Planning and Building Agency Planning Commission approved recommended action on November 28, 2017, by a vote of 7-0. MOTION: Receive and file the staff report approving Conditional Use Permit No. 2016-42 and Conditional Use Permit No. 2016-43 as conditioned. **END OF CONSENT CALENDAR** BUSINESS CALENDAR ITEMS ORDINANCES/FIRST READING 50A. ORDINANCE TO COMPLY WITH NEW STATE LAW (PROP 64); ORDINANCE TO REGULATE INDOOR CULTIVATION OF MARIJUANA FOR PERSONAL USE; REQUIRE INDIVIDUALS OBTAIN RESIDENTIAL CULTIVATION PERMIT SUBJECT TO REASONABLE REGULATIONS; PROHIBIT INDOOR COMMERCIAL AND OUTDOOR MARIJUANA CULTIVATION (STRATEGIC PLAN 1; 3; 4; 5) - City Manager's Office; City Attorney; and Planning and Building Agency Gil Salmon, expressed concern with possible loss of public health funds by banning outside cultivation; job growth and economic development funds may be limited. CITY COUNCIL MINUTES 22 DECEMBER 20, 2016 Councilmember Solorio, asked if it was necessary that it be approved before end of the year. City Attorney Carvalho, indicated that only indoor growth needs to be consistent with proposition. Councilmember Solorio, concerned with permit fee and no enforcement plan; does not support those elements as proposed. Mayor Pro Tern Martinez, opined that many more code enforcement officers will need to be hired if City is to regulate. Deputy City Manager, Robert Cortez, indicated that the fee has not been established and will be forthcoming for City Council consideration. City Manager Cavazos, proposal is to comply with proposition 64; a briefing paper will be agendized on the January 17, 2017 City Council meeting. Councilmember Tinajero, asked if it was necessary to take action tonight. City Attorney Carvalho, noted that ordinance would permit residential growth with permit; changes to ordinance may need to re -introduce the ordinance. Councilmember Solorio, asked if it was appropriate to amend the ordinance to keep elements to allow up to 6 plants in residential homes and strike out any reference to permit and commercial and outdoor cultivation (Section 5, also section 18-20 in proposed ordinance) to allow individuals 21 years of age and older and strike out the residential permit; motion with amendments as recommended, seconded by Councilmember Tinajero. MOTION: 1. Place amended ordinance on first reading and authorize publication of title. ORDINANCE NO. NS-2909 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO COMPLY WITH NEW STATE LAW (PROP 64); ORDINANCE TO REGULATE INDOOR CULTIVATION OF MARIJUANA FOR PERSONAL USE TO NO MORE THAN SIX (6) LIVING MARIJUANA PLANTS WITHIN A PRIVATE RESIDENCE SUBJECT TO REASONABLE REGULATIONS; PROHIBIT COMMERCIAL AND OUTDOOR MARIJUANA CULTIVATION 2. Completely ban commercial and outdoor marijuana cultivation. MOTION: Solorio SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Sarmiento, Solorio, Tinajero, CITY COUNCIL MINUTES 23 DECEMBER 20, 2016 Villegas (6) NOES: Pulido (1) ABSTAIN: None (0) ABSENT: None (0) 50B. ORDINANCE AMENDING CHAPTER 33, ARTICLE VII, OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE ROLE AND DUTIES OF THE ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMITTEE (ETAC) {STRATEGIC PLAN NO. 6, 1 G} - Public Works Agency Gil Salmon, indicated that vote by the ETAC is not included in the report; advisory role is split with environmental aspects advisory to the City Council and the transportation issues to the Public Works Director; concerned with ordinance as proposed; suggested amendment to ordinance to be advisory to the City Council in all matters. Mayor Pro Tern Martinez, does not support as proposed; committee members are to be accountable to the City Council; proposed motion to table matter, seconded by Mayor Pulido. Councilmember Benavides, asked if role was expanded and who they are advisory to. Executive Director of Public Works Agency, Fred Mousavipour, indicated that Council Committee on transportation issues already exist. Councilmember Benavides, focus has been environmental although the title allows for transportation; offered a substitute motion to allow for both the environmental and transportation issues to be advisory to the City Council, as requested by speaker. SUBSTITUTE MOTION: Place amended ordinance on first reading and authorize publication of title. ORDINANCE NO. NS-2910 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CHAPTER 33, ARTICLE VII OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE ROLE AND DUTIES OF THE ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMITTEE MOTION: Benavides SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Villegas (6) CITY COUNCIL MINUTES 24 DECEMBER 20, 2016 NOES: None (0) ABSTAIN: None (0) ABSENT: Tinajero (1) 50C. AGENDA ITEM CONSIDERED OUT OF ORDER 50D. REGULATE MOBILE FOOD VENDING VEHICLES {STRATEGIC PLAN NO 5, 4) - Planning and Building Agency MOTION: Continue consideration of matter at the request of staff to a future meeting. RESOLUTIONS 55A. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE AGREEMENT BETWEEN POLICE OFFICER MCCARTHY AND THE CITY OF SANTA ANA RELATING TO THE PURCHASE OF A POLICE K-9 (STRATEGIC PLAN GOAL NO. 1, 3A) - Police Department MOTION: 1. Adopt a resolution. RESOLUTION NO. 2016-095 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE AGREEMENT BETWEEN POLICE OFFICER MCCARTHY AND THE CITY OF SANTA ANA RELATING TO THE PURCHASE OF A POLICE K-9 2. AGMT NO. 2016-378 - Authorize the City Manager and Clerk of the Council to execute the attached purchase agreement with Santa Ana Police Officer McCarthy for the purchase of his retired Police K-9 in the amount of $1, subject to non -substantive changes approved by the City Attorney and City Manager. MOTION: Martinez SECOND: Benavides VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Tinajero (1) CITY COUNCIL MINUTES 25 DECEMBER 20, 2016 5513. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING A DONATION OF EQUIPMENT FOR THE SANTA ANA POLICE ATHLETIC & ACTIVITY LEAGUE PROGRAM (SAPAAL) FROM THE LA GALAXY FOUNDATION AND SOUTHERN NEW HAMPSHIRE UNIVERSITY {STRATEGIC PLAN NO. 1, C) - Police Department The following spoke on the matter: Ilya Tseglia, concerned with treatment of son at the State level; request police assistance. Robert Tseglia, echoed comments by father. MOTION: Adopt a resolution. RESOLUTION NO. 2016-096 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING THE DONATION OF EQUIPMENT FOR THE SANTA ANA POLICE ATHLETIC & ACTIVITY LEAGUE PROGRAM FROM THE LA GALAXY FOUNDATION AND SOUTHERN NEW HAMPSHIRE UNIVERSITY MOTION: Martinez SECOND: Benavides VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Tinajero (1) REPORTS 65A. APPROVE THE ANNUAL CALENDAR OF REGULAR CITY COUNCIL MEETINGS FOR 2017 (STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION; 1. Review calendar of regularly scheduled City Council Meetings in 2017. 2. Cancel the regularly scheduled City Council meeting of January 3, 2017 and July 18, 2017. 3. Approve the 2017 calendar of regularly scheduled City Council meetings. CITY COUNCIL MINUTES 26 DECEMBER 20, 2016 4. Direct staff to post Notice of Cancellation(s). The City Council hereby waives notice of said meetings as required by the government code. MOTION: Martinez SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 65B. 2017 ANNUAL REVIEW AND APPOINTMENT OF REGIONAL BOARD REPRESENTATIVES (STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Continue consideration of matter to the January 17, 2017 City Council Meeting. MOTION: Benavides SECOND: Solorio VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 65C. APPROVE THE BUDGET CALENDAR FOR FISCAL YEAR 2017-18 {STRATEGIC PLAN NO. 4, 11 - Finance and Management Services MOTION: Approve the Budget Calendar for fiscal year 2017-2018. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Tinajero Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) CITY COUNCIL MINUTES 27 DECEMBER 20, 2016 65D. COMMUNITY ENHANCEMENT PROGRAM GRANT AGREEMENTS AND APPROPRIATION ADJUSTMENT FOR FISCAL YEAR 2016-2017 {STRATEGIC PLAN NOS. 2,2A; 2,213; 5,413; 5,5C; 5,6C } — Commundity Development Agency Councilmember Solorio, requested a continuance. MOTION: Continue consideration of matter to the January 17, 2017 City Council Meeting. MOTION: Solorio SECOND: Martinez VOTE: AYES: Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: Benavides(1) ABSENT: None (0) *Councilmember Benavides, abstained on matter due to potential conflict of interest, and his employment with Kidworks (per Government Code 1090). 65E. EVALUATION OF OPTIONS CONCERNING POTENTIAL TRANSITION TO A BY -DISTRICT ELECTIONS SYSTEM {STRATEGIC PLAN NO. 5, 1) — City Attorney's Office Councilmember Tinajero, requested matter be tabled for 30 days. MOTION: Continue consideration of matter to the January 17, 2017 City Council Meeting. . MOTION: Tinajero SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) CITY COUNCIL MINUTES 28 DECEMBER 20, 2016 65F. ADOPT THE FISCAL YEAR 2015-16 SURPLUS ALLOCATION PLAN {STRATEGIC PLAN NOS. 1, 1; 2, 1, 2} - Finance and Management Services City Manager Cavazos, noted that surplus includes the triple funding that was received this fiscal year; highlighted funding request. City Attorney Carvalho, cautioned that in the future when agreements entered that the funding commitment also be included. The following spoke on the matter: • Lynette Guzman, spoke in support of open space opportunity; supports Option A for joint use park development project. ■ Gil Salmon, echoed comments expressed earlier; need open space. • Nancy Mejia, representing Latino Health Access, encourage continued investment in our community; Option A will assist with obesity rates and park poor areas. Councilmember Benavides, spoke of investments in our community with one- time funds; some options proposed support infrastructure improvements, while others are over -time costs; motion to support Option 1A, and Items 2 and 3 as recommended by staff. Councilmember Solorio, motion to continue matter to further evaluate budget, and staffing needs; supports parks, seconded by Mayor Pulido. MOTION: Continue consideration of matter, at the request of the City Council. MOTION: Solorio VOTE: AYES: NOES: ABSTAIN: ABSENT: PUBLIC HEARINGS SECOND: Pulido Benavides, Martinez, Pulido, Sarmiento, Solorio, Villegas (6) Tinajero (1) None (0) None (0) 75A. 2017 DOWNTOWN BUSINESS IMPROVEMENT DISTRICT ASSESSMENT (STRATEGIC PLAN NO. 3, 4F) - Community Development Agency Legal Notice published in the Orange County Reporter on December 9, 2016. Mayor Pro Tern Martinez opening the Hearing. The following spoke in support of the matter: CITY COUNCIL MINUTES 29 DECEMBER 20, 2016 • Ryan Smolar, of Downtown Inc., presented annual report highlighting shared accomplishments. • Robyn MacNair, spoke of the value of the business improvement district; allows student collaborations. • Yenny Bernal, spoke in support of assessment. • Dino Perez, also support assessment; benefit to the business community. • Franky Castle, local artist, supports district assessment. • Raul Yanez, welcomed incoming councilmembers; supports assessment. • Claudia Arellanes, supports fee assessment. • Sam Romero, echoed support for assessment. • Madeleine Spencer, need accountability measures. • Chris Schmidt, opined that assessment district has been vital. There were no other speakers and the hearing closed. Councilmember Solorio, pleased that entities working together; consider internship for the youth such as marketing. Councilmember Sarmiento, supports assessment district, would like to see secondary site in the south main area. Councilmember Tinajero, excited to know that so many students participate. Councilmember Benavides, supports items. Mayor Pro Tern Martinez, thanked all for positive impact and working together. Asked for parking pro forma information from City Manager; place making is important as well as traffic safety concerns. MOTION: Adopt a resolution. RESOLUTION NO. 2016-097 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA LEVYING AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT FOR CALENDAR YEAR 2017 MOTION: Benavides SECOND: Tinajero VOTE: AYES: Benavides, Martinez, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: Pulido(1) ABSENT: None (0) *Mayor Pulido reported a potential conflict of interest due to proximity to family business and recused from matter. CITY COUNCIL MINUTES 30 DECEMBER 20, 2016 75B. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. 2015-03 FOR THE HERITAGE VILLAGE MIXED -USE DEVELOPMENT AT 2001 EAST DYER ROAD — PAMELA SAPETTO, APPLICANT {STRATEGIC PLAN NO. 5, 3) - Planning and Building Agency Planning Commission denied the First Amendment to Development Agreement No. 2015-03 on November 14, 2017 by a vote of 5-1 (Gartner opposed, Bacerra abstained). Legal Notice published in the Orange County Reporter on November 25, 2016 and notices mailed on December 8, 2016. Consideration of item continued from the December 6, 2016 City Council meeting. Mayor Pulido opened the hearing. The following spoke on the matter: • Ana Urzua, Campaign Coordinator with Building Healthy Communities, congratulated the City Council on unanimous approval of sanctuary ordinance; does not support the phasing of fees until residents have direct benefit; opined that rent crisis exist; recounted benefits that development project has already enjoyed. • Hugo Munoz, member of SACReD, supports community benefit agreement and affordable housing. • Gil Salmon, asked that developer not have phases; spoke in opposition to matter. • Ryan Smolar, good development needs to occur; commit to work with developers; affordable housing is needed in City. • William Devine, Ryan Ogulnick, Drew Colquitt, and Pamela Sapetto are member of development team available to answer questions. • Karla Lopez del Rio, opined that use of 180 units are better served than offer in -lieu fees; opposed to item. • Evelyn Torres, spoke of high housing costs; propose to raise fees and funds to go to community benefit fund. • Carlos Malades, SACReD member, encouraged new councilmembers to work with group like former councilmembers; read letter for the record. • Apolonio Cortez, not opposed to development, but it needs to be responsible development and have mutual benefit. • Cesar Covarrubias, Executive Director of the Kennedy Commission, indicated that although 3000 units are in the pipeline most residents not able to afford; addressed in -lieu fees. Councilmember Benavides, proposal is to either have all of the funds be paid upfront or phased into three; asked about the upfront and phasing of fees. Executive Director of Planning and Building Agency, Hassan Haghani, indicated that usually developer finances in phases because each phase is financed separately. CITY COUNCIL MINUTES 31 DECEMBER 20, 2016 City Attorney Carvalho, ordinance does not require payment of in -lieu fees, but the ordinance requires the building of low and moderate income units; if the builder does not want to build such units it allows them to pay to opt -out and pay upfront. Councilmember Benavides, if funds collected and phases not built, what happens? City Attorney Carvalho, said that it would be up to Planning and Building to decide how many units in each phase are built to meet the requirements. Executive Director of Planning and Building Agency, Haghani, said that it would be a percentage if developer built and not opt to pay fees. William Devine, attorney for developer, disagreed and opined that it would be a percentage of habitable units. City Attorney Carvalho, position that it is not a mitigation impact fee, but an affordable housing fee. Councilmember Sarmiento, concerned that item tied to joint item 8OB; in April of 2016 adopted letter of intent to support affordable housing project. Councilmember Tinajero, supports very low affordable housing projects; both projects are good for the City. Mayor Pro Tern Martinez, does not support agreement that Planning Commission denied; developer has existing commitment; concerned that no Request for Proposal process followed and utilizing $6.7 million housing funds; not a City obligation. Councilmember Solorio, asked if projects were at one point related; nexus to AMCAL project. City Manager Cavazos, indicated Heritage Project had been previously approved, in -lieu fees were designated in their entirety to AMCAL, funds available in successor agency; may be a year or year and a half for funds to be available; unique circumstances in which staff supports recommendation. Councilmember Solorio, supports both projects; largely market rate housing; interested in renovating substandard units throughout the City; developer will pay fees in phases. Councilmember Villegas, uncomfortable with the phasing; City should not be responsible; supports AMCAL project; concerned that Planning Commission had denied. Councilmember Benavides, concerned with City's obligation CITY COUNCIL MINUTES 32 DECEMBER 20, 2016 Councilmember Sarmiento, City helping to fund needed project. City Manager Cavazos, almost $10 million available in successor agency funds; risk is that City did not go through RFP process; not a financial risk. Councilmember Sarmiento, relief being considered for developer; council committee has considered in the past. City Attorney Carvalho, indicated that staff had indicated that no other funding sources available to fund AMCAL; need to protect City and assure that funds available. Mayor Pulido, concerned that projects are intertwined — allowing phases and using successor funds. Councilmember Sarmiento, thanked developer for meeting with community; suggested repayment plan and additional community benefit as a good faith effort. Mayor Pro Tern Martinez, asked for an explanation why successor funds are being recommended in place of in -lieu fees. Judson Brown, explained fees. Mayor Pro Tern Martinez, indicated that phase 3 does not have an implementation plan; does not support either project because process not followed; City taking responsibility and not developer. Judson Brown, clarified that phasing of development agreement will delay the AMCAL project, but Agenda Item 80B will bridge the project and allow both to move forward. City Attorney Carvalho, noted that in lieu fees do not have requirements, but successor agency funds, much like former housing set -aside funds have restrictions that are not imposed on AMCAL project, but only approximately $3 million in account. Councilmember Solorio, current community benefit includes public art; as monies are received will be reimburse City's account, but overall will allow for affordable housing. Councilmember Tinajero, suggested friendly amendment to the motion to include Repayment Plan and continue to have dialogue with the community on both projects. City Manager Cavazos, noted that building phase already in place, thus not needed. Councilmember Solorio, indicated that as payments received will consider other beneficial project. MOTION: CITY COUNCIL MINUTES 33 DECEMBER 20, 2016 1. Place ordinance on first reading and authorize publication of title. ORDINANCE NO. NS-2911 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND HERITAGE VILLAGE LLC, A CALIFORNIA LIMITED LIABILITY COMPANY 2. AGMT NO. 2016-379 - Approve the First Amendment to Development Agreement No. 2015-03. MOTION: Tinajero SECOND: Solorio VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) RECESSED THE CITY COUNCIL MEETING AT 12:39 A.M. AND CONVENED A JOINT SESSION OF THE CITY COUNCIL AND THE HOUSING AUTHORITY *Councilmember Benavides left the meeting at 12:40 a.m. and did not return. JOINT SESSIONS OF THE CITY COUNCIL AND THE HOUSING AUTHORITY 80A. HOUSING SUCCESSOR ANNUAL REPORT FOR FY 2015-16 — LOW AND MODERATE INCOME HOUSING ASSET FUND {STRATEGIC PLAN NO. 5, 11 MOTION: Receive and file. MOTION: Sarmiento VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Tinajero Martinez, Pulido, Villegas (6) None (0) None (0) Benavides (1) Sarmiento, Solorio, Tinajero, CITY COUNCIL MINUTES 34 DECEMBER 20, 2016 80B. APPROVAL OF CONDITIONAL LOAN COMMITMENT AND AWARD OF $6,195,000 OF AFFORDABLE HOUSING FUNDS TO AMCAL MULTI - HOUSING, INC FOR THE FIRST STREET APARTMENTS PROJECT {STRATEGIC PLAN NO. 5, 3C) The following spoke on the item: • Karla Lopez del Rio, supports project and disappointed that some councilmembers did not approve Agenda Item 75B. • Apolonio Cortes, urges support for project that will mitigate high housing costs and address needs. • Cesar Covarrubias, Executive Director of Kennedy Commission, supports project that is companion project to 2001 E. Dyer Road project; need to provide housing for all. • Joese Hernandez, representing OCCORD, stated for the record that they support real affordable project; against tax subsidies - favor responsible development. CouncilmemberTinajero, motion to approve. Councilmember Solorio, supports project; remainder of housing funds need to develop a Plan on how to utilize; suggested a study session. Councilmember Sarmiento, echoed thoughts, thanked speakers, the community land trust funds may be leveraged for future project and would instill goodwill with the community. Mayor Pulido, indicated that Councilmember Villegas alluded earlier that when project funded in this manner, the City is more at risk; concerned with sole source; asked if appropriation adjustment requires five affirmative votes. Matter will be forthcoming when the loan agreements are considered by the City Council. MOTION: 1. AGMT NO.2016-380 - Authorize the City Manager to execute a conditional loan commitment letter for $2,600,000 of inclusionary housing in -lieu fees anticipated from the Heritage Village OC, LLC in order to reduce the $8,795,000 previously approved by City Council on April 19, 2016, that will be contingent on the City's actual receipt of an in -lieu fee payment of $2,600,000 from Heritage Village OC, LLC. 2. Authorize the City Manager/Executive Director and the City Attorney to draft loan agreements for future City Council consideration in an amount not to exceed $2,600,000 for the First Street Apartments Project. MOTION: Tinajero SECOND: Solorio VOTE: AYES: Sarmiento, Solorio, Tinajero, Villegas (4) CITY COUNCIL MINUTES 35 DECEMBER 20, 2016 NOES: Martinez, Pulido (2) ABSTAIN: None (0) ABSENT: Benavides(1) ADJOURNED THE JOINT MEETING AT 12:30 A.M. AND CONVENED THE HOUSING AUTHORITY MEETING AT 12:31 A.M.; RECONVENED THE CITY COUNCIL MEETING AT 12:32 A.M. WITH SAME MEMBERS PRESENT. COMMENTS 90A. CITY MANAGER'S COMMENTS - None 9013. CITY COUNCILMEMBER COMMENTS Councilmember Sarmiento: • Merry Christmas and good night to all. Councilmember Tinajero: • Asked Councilmember Villegas for rational for placing City Manager's evaluation on Closed Session; need to move City forward. c Councilmember Villegas, noted that it was a Closed Session matter and not able to discuss. Mayor Pro Tern Martinez: • Wished all a Merry Christmas; • Requested adjournment in memory of former Mexican Consul in Santa Ana, Alejandra Garcia Williams, who passed away from brain cancer. Councilmember Solorio: Thanked colleagues for dialogue and look forward to addressing public safety concerns. Councilmember Villegas: • Wished all a Merry Christmas. Mayor Pulido: Adjourned in memory of Orange County Fire Captain Eric Weave; former Santa Ana Mexican Consul, Alejandra Garcia Williams; and former Planning Commissioner, Sandy Nalle. CITY COUNCIL MINUTES 36 DECEMBER 20, 2016 ADJOURNED- 12:59 a.m. - The next regular meeting scheduled on January 3, 2017 to be cancelled. The next meeting of the City Council will be held on Tuesday, January 17, 2017 at 5:00 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. In Memory of Alexander "Sandy" Nalle, OCFA Captain Eric Weave, and Alejandra Garcia Williams Maria D. Huizar, Clerk of the Council FUTURE AGENDA ITEMS • Community Engagement Program • Drone Regulations CITY COUNCIL MINUTES 37 DECEMBER 20, 2016