HomeMy WebLinkAbout10A - MINUTES CCM 6/06/2017MINUTES OF THE REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA, CALIFORNIA
CALLED TO ORDER
ATTENDANCE
PUBLIC COMMENTS - None
JUNE 6, 2017
CLOSED SESSION MEETING
COUNCIL CHAMBER
22 CIVIC CENTER PLAZA
5:14 P.M.
COUNCILMEMBERS Present:
MIGUEL A. PULIDO, Mayor
MICHELE MARTINEZ, Mayor Pro Tem
P. DAVID BENAVIDES (5:15 p.m.)
JOSE SOLORIO
SALTINAJERO (5:21p.m.)
JUAN VILLEGAS
COUNCILMEMBERS Absent:
VICENTE SARMIENTO
STAFF Present:
CYNTHIA J. KURTZ, Interim City Manager
SONIA R. CARVALHO, City Attorney
MARIA D. HUIZAR, Clerk of the Council
COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:14 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:
CITY COUNCIL MINUTES 1 JUNE 6, 2017
10A-1
1. City of Santa Ana v. Santa Ana Personnel Board(Brandon Sontag),
Orange County Superior Court Case No. 30-2017-00902538-CU-WM-CJC
2. Nicole Quiias v. City of Santa Ana, Orange County Superior Court Case
No. 30 -2016 -00850502 -CU -O E -CJ C
3. Brandon Sontag v. City of Santa Ana, Orange County Superior Court
Case No. 30-2017-00902039-CU-OE-CJC
2. CONFERENCE WITH LEGAL COUNSEL -- POTENTIAL LITIGATION
Significant exposure to litigation pursuant to paragraph (2) or (3) of
subdivision (d) of Section 54956.9 of the Government Code: One case.
3. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to
Government Code Section 54956.8:
Address of Property: Properties Being Acquired for Bristol Street
Widening Project Phases 3A and 4:
1. 1023 N. Bristol Street, Santa Ana, CA, APN
405-262-33, Owners: Robert E. and Jacoba E.
Marlin, Trustees; James S. and Celia C.
Cohen, Trustees
2. 1302 W. 11th Street, Santa Ana, CA, APN 004-
111-22, Owner: Leticia Carrillo
3. 1027 N. Bristol Street, Santa Ana, CA, APN
405-274-09, Owners: Euler R. and Yolanda G.
Ferrer, as members for E.R. Ferrer, LLC
4. 2231 S. Bristol Street, Santa Ana, CA, APN
015-194-36, Owner: Ozbag Zorayan Antranik,
Trustee
5. 2223 S. Bristol Street, Santa Ana, CA, APN
015-194-28, Owner: Dianne Rose Mendez
6. 2205 S. Bristol Street, Santa Ana, CA, APN
015-194-24, Owner: Victoria Vargas Bastida
7. 2201 S. Bristol Street, Santa Ana, CA, APN
015-194-23, Owner: Victoria Vargas Bastida
8. 2209 S. Bristol Street, Santa Ana, CA, APN
015-194-25, Owner: R S Properties, LLC
9. 2105-2109 S. Bristol Street, Santa Ana, CA,
APN 015-194-41, Owner: Thanh Ngoc Nguyen
10.2240 S. Bristol Street, Santa Ana, CA, APN
408-471-06, Owner: Vicale, LLC
11.2102 S. Bristol Street, Santa Ana, CA, APN
408-471-01, Owner: Tacos Mexico, Inc.
CITY COUNCIL MINUTES 2 JUNE 6, 2017
10A-2
12.2120-2130 S. Bristol Street, Santa Ana, CA,
APN 408-471-17, Owner: Au Zone Santa Ana,
LLC
13.1241 W. St. Anne Place, Santa Ana, CA, APN
015-215-10, Owner: Joel Cortes Cruz
14.1301 W. Camden Place, Santa Ana, CA, APN
408-334-18, Owners: Pedro Castrejon,
Natividad Castrejon
Negotiators: Interim City Manager
Terms: Conditions of potential sale
4. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code
Section 54957.6(a):
Agency Negotiators: Personnel Services Executive Director, Ed
Raya
Employee Organizations: Santa Ana Police Officers Association (POA)
Service Employees' International Union (SEIU)
Full -Time Employees
5. PUBLIC EMPLOYEE APPOINTMENT, EMPLOYMENT, EVALUATION OF
PERFORMANCE, pursuant to Section 54957(b)(1) of the Government Code:
Title: City Manager/ Interim City Manager
CLOSED SESSION REPORT - See Item 19A for any reportable actions.
ADJOURNED THE CLOSED SESSION MEETING AT 6:41 P.M. AND CONVENED TO
THE REGULAR OPEN MEETING.
CITY COUNCIL MINUTES 3 JUNE 6, 2017
10A-3
CALLED TO ORDER
REGULAR OPEN MEETING
COUNCIL CHAMBER
22 CIVIC CENTER PLAZA
SANTA ANA, CA
6:42 P.M.
ATTENDANCE COUNCILMEMBERS Present:
MIGUEL A. PULIDO, Mayor
MICHELE MARTINEZ, Mayor Pro Tem
P. DAVID BENAVIDES
JOSE SOLORIO
SAL TINAJERO
JUAN VILLEGAS
PLEDGE OF ALLEGIANCE
INVOCATION
PRESENTATIONS
COUNCILMEMBERS Absent:
VICENTE SARMIENTO
STAFF Present:
CYNTHIA J. KURTZ, Interim City Manager
SONIA R. CARVALHO, City Attorney
MARIA D. HUIZAR, Clerk of the Council
CESAR BARANDA, SANTA ANA HIGH SCHOOL
ROGER ARAGON, POLICE CHAPLAIN
CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER TINAJERO to the
champions of the Speech and Debate competition:
Sierra Intermediate - Samantha Lopez— Declamation; Michelle Roldan — Duo
Interpretation and; Marielena Mendoza — Duo Interpretation
Advanced Learning Academy - Isabella Guerra — Original Oratory
Villa Intermediate - Lizeth Martinez — Poetry Interpretation
MacArthur Intermediate _Gordon Tran — Expository; Brendan Mai Ha — Public Forum
Debate; and
Jonah Tristan — Public Forum Debate
Jefferson Elementary - Grace Tinajero — Dramatic Performance
CITY COUNCIL MINUTES 4 JUNE 6, 2017.
10A-4
SPECIAL PRESENTATION by Southern California Association of Governments (SCAG) to
recognize Mayor Pro Tem Michele Martinez for her accomplishments as immediate past
President of SCAG, presented by Darin Chidsey, Chief Operating Officer of SCAG.
CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Dr. Ana
Nogales for her outstanding contributions to the community.
CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Manuel
Gomez and Manuel Hernandez for their outstanding literary and artist work in the community.
CLOSED SESSION REPORT — Nothing to report out.
PUBLIC COMMENTS-- None
Councilmember Tinajero, Seconded by Councilmember Solorio motioned to continue Agenda
Items 75B, 75C and 65A to the June 20, 2017 City Council Meeting. Motion carried by a 5-0
vote (Benavides absent).
CONSENT CALENDAR ITEMS
MOTION: Approve staff recommendations on the following Consent Calendar
items: Items 10A through 251, with the following modifications:
• Mayor Pro Tem Martinez pulled Agenda Items 25B, 25D, 25F, 25H for separate
discussion and dissented on Agenda Item 251.
• Councilmember Solorio pulled Agenda Items 25B and 25E for separate
discussion.
MOTION: Tinajero SECOND: Solorio
VOTE: AYES: Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
CITY COUNCIL MINUTES 5 JUNE 6, 2017
10A-5
Items removed for separate action or modified are highlighted. Separate actions show
the_actual vote: Items without votes are adopted as part of the consent motion
ADMINISTRATIVE MATTERS
MINUTES
10A. MINUTES FROM THE REGULAR MEETING OF MAY 16, 2016 {STRATEGIC
PLAN NO. 5, 1) — Clerk of the Council Office
MOTION: Approve Minutes.
BOARDS / COMMISSIONS / COMMITTEES
13A. BOARDS AND COMMISSIONS BIANNUAL ATTENDANCE REPORT JULY
THROUGH DECEMBER 2016 {STRATEGIC PLAN NO. 5, 1} - Clerk of the
Council Office
MOTION: Receive and file.
13B. COUNCIL COMMITTEES — AGENDA AND MINUTES {STRATEGIC PLAN NO.
5, 11 - Clerk of the Council Office
MOTION: Receive and file.
NAME MEETING DATE
Economic Development Infrastructure, Budget 3/13/17 and 5/15/17
and Technology Committee
Santa Ana Unified School District and City of Santa Ana 5/22/17
Joint Policy Committee
MISCELLANEOUS ADMINISTRATION
19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — None
19B. EXCUSED ABSENCES — Clerk of the Council Office
MOTION: Excuse the absence of Councilmember Vicente Sarmiento from
the June 6, 2017 City Council Meeting.
CITY COUNCIL MINUTES 6 JUNE 6, 2017
10A-6
19C. REQUEST FOR QUALIFICATIONS TO CREATE A LIST OF PRE -QUALIFIED
CONSULTANTS TO PROVIDE ENVIRONMENTAL AND PLANNING
SERVICES {STRATEGIC PLAN NO. 3, 3} - Planning and Building Agency
MOTION: Authorize the Planning and Building Agency to release the
Request for Qualifications to create a list of pre -qualified professional
consulting firms to provide environmental services, planning services and
to perform related technical studies.
19D. PUBLIC WORKS AGENCY STATUS OF PROJECTS - MONTHLY CAPITAL
IMPROVEMENT PROGRAM EXECUTIVE REPORT FOR MAY 2017
{STRATEGIC PLAN NO. 5, 1} - Public Works Agency
MOTION: Receive and file.
19E. DESTRUCTION OF OBSOLETE CITY RECORDS (STRATEGIC PLAN NO. 5,
1) - Finance and Management Services; and Police Department
MOTION. Approve the requests for the destruction of obsolete records
from various City departments in accordance with the retention schedule
outlined in City Council Resolution 2013-014. The Citywide Records
Retention Schedule has specific retention periods for many City
documents. The Schedule is modeled after the California Secretary of
State's sample for local government and incorporates other statutory
periods applicable to Santa Ana. These are minimum retention periods.
Each department makes discretionary decisions on whether to retain
records past the minimum requirements.
BUDGETARY MATTERS
SPECIFICATIONS — PURCHASE OF EQUIPMENT AND SERVICES
22A. SPEC. NO. 17-046 - CONTRACT AWARD FOR HEWLETT PACKARD
SUPPORT CONTRACT RENEWAL (Information Technology Department) -
Finance and Management Services
MOTION. Authorize a one-time purchase and payment of purchase order
to Diltex, Inc. in the total amount of $35,860, subject to non -substantive
changes approved by the City Manager and City Attorney.
CITY COUNCIL MINUTES 7 JUNE 6, 2017
10A-7
AGREEMENTS
25A. AGMT NO. 2017-131 - AMENDMENT - PROVIDE AUDIOVISUAL
EQUIPMENT, INSTALLATION, AND ON-CALL SERVICES FOR TWO
CONFERENCE ROOMS LOCATED IN CITY HALL, ROSS ANNEX AND THE
CITY YARD {STRATEGIC PLAN NO. 7, 5A} - Public Works Agency
MOTION: Authorize the City Manager and Clerk of the Council to amend
the agreement with Western Audio Visual exercising a two-year optional
term extension beginning June 21, 2017 through June 20, 2019; and
increasing the compensation by $50,000, for a total agreement amount not
to exceed $130,000, subject to nonsubstantive changes approved by the
City Manager and City Attorney.
R OCCUPATIONAL SKILLS TRAINING, ALTERNATIVE SECOND)
LIGATION AND POST -SECONDARY OCCUPATIONAL SKILLS TRAIN
'RATFr,Ir. PI AN IVC) 9 Al - C.nmmi mifv r)ava1nnmon4 Anancu/--
Recommended Action approved by the Workforce Development Board on May
18, 2017 by a 14-0 vote ((Knitter, Korthuis, McGowan, Rutledge, Sanchez and
Wadhera absent).
MOTION: Authorize the City Manager and Clerk of the Council to execute
agreements and memorandum of understanding with the following Youth
Service Providers, for a one year term beginning July 1, 2017, subject to
non -substantive changes approved by the City Manager and City Attorney:
1. AGMT NO. 2017-132 — With Orange County Children's Therapeutic Arts
Center to provide occupational skills training in the areas of office
administration, mental health paraprofessional, and childcare worker
certification, offer job preparation, paid work experience, tutoring,
mentoring, counseling, and supportive services, for 20 youth in the
annual amount of $164,000;
2. AGMT NO. 2017-133 — With Orange County Conservation Corps to
provide alternative secondary education that leads to a high school
diploma, offer credential training in forklift operator, safe food
handling, customer service, or computer software, provide job
preparation, paid work experience, post -secondary education
resources, and supportive services for 20 youth in the annual amount
of $160,000; and
3. AGMT NO. 2017-134 — With Santa Ana Public Library to provide post-
secondary occupational skills training in the areas of digital
technology, computer maintenance and repair, paid work experience,
CITY COUNCIL MINUTES 8 JUNE 6, 2017
10A-8
leadership development, tutoring, and mentoring for 22 youth in the
annual amount of $160,000.
MOTION: Martinez
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
SECOND: Tinajero
Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
None (0)
None (0)
Sarmiento (1)
25C. AMENDMENT - MERCHANT PAYMENT SERVICES AND SEPARATION OF
PAYMENT KIOSK RELATED SERVICES TO A CLOUD BASED SYSTEM; AND
REQUEST FOR PROPOSALS {STRATEGIC PLAN NO. 4, 1; 7, 5F} - Finance
and Management Services
MOTION:
1. AGMT NO. 2017-135 - Authorize the City Manager and Clerk of the
Council to execute a third amended agreement with TransFirst, LLC for
a one year extension of TransFirst, LLC's existing cashiering credit
card merchant payment services agreement, effective July 1, 2017
through June 30, 2018, for an amount not to exceed $165,000 subject to
no substantive changes approved by the City Manager and City
Attorney.
2. Authorize City staff to release a Request for Proposals (RFP) for
integrated cashiering merchant payment processing before December
31, 2017.
MOTION: Authorize the City Manager and Clerk of the Council to execute a
two-year amended agreement with Civic Collections, Inc., to be
compensated for canvassing and collection of new and delinquent dog
license fees and penalties at the current rate of 50% for each dog license
fee collected, 50 cents for each new dog license registered, and 50 cents
for each rabies vaccination certificate issued, effective July 1, 2017
through June 30, 2019, with the option to extend one additional year from
CITY COUNCIL MINUTES 9 JUNE 6, 2017
10A-9
July 1, 2019 through June 30, 2020 upon a written request executed by the
City Manager, subject to no substantive changes approved by the City
Manager and City Attorney.
MOTION: Tinajero SECOND: Solorio
VOTE: AYES: Benavides, Pulido, Solorio, Tinajero, Villegas (5)
NOES: Martinez (1)
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
I. 2017-137 - WEBSITE REDESI
IMPLEMENTATION SERVICES;
SERVICES {STRATEGIC PLA
AND MAINTENANCE
NC) 7 9x11 - Infn
MOTION: Authorize the City Manager and the Clerk of the City Council to
execute an agreement with 360 BC Group, Inc., DBA 360 Business
Consulting, for website redesign, implementation of the Drupal Content
Management System, in an amount not to exceed $168,576, including a 20
% contingency of $28,096, and to provide maintenance and support
services for a three year period, in an amount not to exceed $72,000, for a
total amount not to exceed $240,576, beginning June 15, 2017 through
June 30, 2020, , subject to non -substantive changes approved by the City
Manager and City Attorney.
MOTION: Martinez
VOTE: AYES:
NOES:
ABSTAIN
ABSENT:
SECOND: Solorio
Benavides, Martinez, Pulido, Solodo, Tinajero,
Villegas (6)
None (0)
None (0)
Sarmiento (1)
25F. �__ AGMT NO. 2017-138 — AMENDMENT - TELEPHONE SYSTEM
MAINTENANCE AND SUPPORT SERVICES {STRATEGIC PLAN NO. 7. 21))_
Information Technology_Departmenf _
CITY COUNCIL MINUTES 10 JUNE 6, 2017
10A-10
MOTION: Authorize the City Manager and the Clerk of the City Council to
execute a second amendment with NEC Corporation of America, Inc. for a
one-year extension, beginning July 1, 2017 through June 30, 2018, in an
amount not to exceed $184,235, subject to non -substantive changes
approved by the City Manager and City Attorney.
MOTION: Tinajero SECOND: Solorio
VOTE: AYES: Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
25G. AGMT NO. 2017-139 — AMENDMENT - LIBRARY AUTOMATION SYSTEM
AND MAINTENANCE SERVICES (24-HOUR PHONE AND ONLINE SUPPORT,
LICENSED SOFTWARE UPDATES, STAFF TRAINING, ONLINE ACCES TO
CATALOGING RESOURCES AND ENHANCED CONTENT DATABASES)
{STRATEGIC PLAN NO. 2, 3D) - Parks, Recreation and Community Services
Agency
MOTION. Authorize the City Manager and Clerk of the Council to execute
an amendment with The Library Corporation to extend the term three years
from June 17, 2017 through June 17, 2020 and increase the compensation
for the term to an amount not to exceed $111,689, for a total contract
$224,428, subject to non -substantive changes approved by the City
Manager and City Attorney.
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dERSHIP AND NUISANCE ABATEMENT MATTERS {STRATEGI
NO. 3, 3; 5, 4E)_ ---Planning_ and._ Building Agency and _Communi
MOTION: Authorize the City Manager and Clerk of the Council to execute a
three year agreement terminating on May 18, 2020 with Jones & Mayer,
Attorneys at Law, in the amount not to exceed $200,000, subject to non -
substantive changes approved by the City Manager and City Attorney.
MOTION: Martinez
VOTE: AYES:
SECOND: Benavides
Benavides, Martinez, Pulido, Solorio, Tinajero,
CITY COUNCIL MINUTES 11 JUNE 6, 2017
10A-11
Villegas (6)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
RISTOL STREET IMPROVEMENTS PHASE 4 (PROJECT NO. 11
JON -GENERAL _FUND) _{STRATEGIC -PLAN _NOS.__6,_1G; 3, 2C)
MOTION: Authorize the City Manager and Clerk of the Council to execute
purchase agreements for the real property acquisitions, temporary
construction easements, and goodwill (if any) with the property owners
listed below, subject to nonsubstantive changes approved by the City
Manager and City Attorney:
1. AGMT NO. 2017-141 — With Jose M. Santillan for a partial acquisition of
1306 West Camden Place (APN 408-3335-02) in the amount of $16,338;
and
2. AGMT NO. 2017-142 — With Ricardo Pinones and Ofelia Pinones for a
partial acquisition of 1305 West Camden Place (APN 408-334-17), in the
amount of $17,260.
MOTION: Benavides SECOND: Solorio
VOTE: AYES: Benavides, Pulido, Solorio, Tinajero, Villegas (5)
NOES: Martinez (1)
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
**END OF CONSENT CALENDAR**
CITY COUNCIL MINUTES 12 JUNE 6, 2017
10A-12
BUSINESS CALENDAR ITEMS
RESOLUTIONS
55A. RESOLUTION AUTHORIZING A GRANT APPLICATION TO THE URBAN
GREENING GRANT PROGRAM FOR PROTECTED BIKE LANES ON
STANDARD AVENUE {STRATEGIC PLAN NO. 5, 6B) - Public Works Agency
MOTION: Adopt a resolution.
RESOLUTION NO. 2017-022 — RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA APPROVING THE APPLICATION FOR GRANT
FUNDS FOR CALIFORNIA CLIMATE INVESTMENTS URBAN GREENING
PROGRAM
MOTION: Benavides
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
SECOND: Martinez
Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
None (0)
None (0)
Sarmiento (1)
55B. RESOLUTION AFFIRMING CONSISTENCY WITH MEASURE M PROGRAM
GUIDELINES RELATED TO THE CIRCULATION ELEMENT, LOCAL SIGNAL
SYNCHRONIZATION PLAN, AND MITIGATION FEE PROGRAM {STRATEGIC
PLAN NO. 6, 1 G) - Public Works Agency
MOTION: Adopt a resolution.
RESOLUTION NO. 2017-023 — RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA CONCERNING THE STATUS AND UPDATE OF
THE CIRCULATION ELEMENT, LOCAL SIGNAL SYNCHRONIZATION PLAN,
AND MITIGATION FEE PROGRAM FOR THE MEASURE M (M2) PROGRAM
MOTION: Martinez
VOTE: AYES
NOES:
SECOND: Benavides
Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
None (0)
CITY COUNCIL MINUTES 13 JUNE 6, 2017
10A-13
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
55C. RESOLUTION RELATED TO THE FINANCING OF EQUIPMENT,
INSTALLATION AND PARTNERSHIP COSTS FOR THE 800 MHZ
COMMUNICATIONS SYSTEM PROJECT {STRATEGIC PLAN NO. 1, 21 -
Police Department
MOTION:
1. Adopt a resolution.
RESOLUTION NO. 2017-024 - RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER OR
EXECUTIVE DIRECTOR OF FINANCE TO ENTER INTO AN EIGHT YEAR
FINANCING AGREEMENT WITH HOLMAN CAPITAL CORPORATION FOR
FUNDING OF THE CITY'S PORTION OF ITS PARTNERSHIP COSTS FOR
FY 2017-18 OF THE 800 MHZ COUNTYWIDE COORDINATED
COMMUNICATIONS SYSTEM BACKBONE UPGRADE FOR P25
COMPLIANCE, EXECUTE AN ESCROW AGREEMENT, AND ANY
ASSURANCES AND/OR DOCUMENTS REQUIRED FOR SAID
AGREEMENT
2. AGMT NO. 2017-143 - Authorize the City Manager and Clerk of the
Council to execute a tax-exempt equipment lease -purchase agreement
with Holman Capital Corporation, subject to non -substantive changes
approved by the City Manager and City Attorney.
MOTION: Benavides
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
SECOND: Villegas
Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
None (0)
None (0)
Sarmiento (1)
CITY COUNCIL MINUTES 14 JUNE 6, 2017
1 OA -14
REPORTS
65A. DISCUSSION ON FOUR AFFORDABLE HOUSING DEVELOPMENT
PROJECTS AND OPTIONS FOR CITY FINANCIAL ASSISTANCE
{STRATEGIC PLAN NO. 5, 3C) - Community Development Agency
OPTIONS FOR CITY COUNCIL CONSIDERATION:
As recommended by the Ad Hoc Committee, discuss the various Affordable
Housing Development projects requesting City financial assistance and seek
City Council direction on the allocation of current and available affordable
housing development funds. Following are options for City Council discussion
and consideration:
A) Santa Ana Arts Collective, Meta Housing Corporation:
Option #1: Amend the project's original award by an additional amount
up to $2.9 million per Keyser Marston Associates gap
analysis report.
Option #2: Amend the project's original award by an additional amount
up to $1,481,215, per CSG Advisors gap analysis report. City
financial assistance to be negotiated by CSG Advisors and
Meta Housing.
Option #3: Take no additional action to fund the project at this time.
B) First Street Apartments, AMCAL Multi -Housing:
Option #1: Award of affordable housing development funds for an
amount up to $8,522,740, per CSG Advisors gap analysis
report.
Option #2: Award of affordable housing development funds for an
amount up to $8,795,000, per Keyser Marston Associates
gap analysis report.
Option #3: Take no additional action to fund the project at this time.
C) Aqua Housing, Community Development Partners:
Option #1: Amend the original project award with an additional 31
project -based vouchers.
Option #2: Take no additional action to fund the project at this time.
D) Tiny Tim Plaza, Community Development Partners:
CITY COUNCIL MINUTES 15 JUNE 6, 2017
10A-15
Option #1: Commit to a future award of affordable housing funds for an
amount up to $11.7 million per CSG Advisors gap analysis
report. Award of funds to follow the approval of the project by
the Planning Commission and City Council pending the
availability of funds.
Option #2: Take no action to fund the project at this time.
MOTION: Continue consideration of matter to the June 20, 2017 City
Council Meeting.
MOTION: Tinajero SECOND: Solorio
VOTE: AYES: Martinez, Pulido, Solorio, Tinajero, Villegas (5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Benavides, Sarmiento (2)
CITY FINANCIAL REVIEW/AUDIT PRESENTATION — City Manager's Office;
and Finance and Management Services
Presentation by Mark Alvarado of KAMG
Analysis of City Reserves
w KAMG hired to do a review of the City's reserve balances
w Review of audit reports and budgets
w Detail analysis of General Fund reserve balances at June 30, 2016
w Review of prior budget adoption processes and practices
w Review of Fund Balance and Budget policy
w Goal was to go back and reconstruct how the City "got to where it is " at
June 30, 2016
w Went back and reviewed the last 5 five years audit reports
w Clean opinions
w Went back and reviewed the last three years budgets
w Overview of conclusions
w Nothing in audit reports looks incorrect
w Attrition process should be refined; budgeting processes are fine
w Long term financial projections key to balancing budgets and maintaining
policy goals
Fiscal and Budget Policy
w Policy adopted in 2012
m Reserves started to increase; prudent to establish benchmarks and goals
CITY COUNCIL MINUTES 16 JUNE 6, 2017
10A-16
Current policy meets GFOA standards
Operating Reserve created
Economic Uncertainty Reserve created
1w Assigned Accounts Reserve created
w Fiscal and Budget Policy
Operating Reserve Account
w Policy goal is 15%
w Council has gone above and beyond, reaching 20%
w GFOA's recommendation is at least 2 months operating expenses, which
is approximately 17%
w City Staff will bring this before the City Council
1w KAMG agrees with this position
Economic Uncertainty Reserve Account
% of estimated revenues
m Currently funded at 1.6% Discussion about changes to the policy
w Established to maintain between 1 % and 10%
w Used to offset weak economic conditions
w KAMG recommends trying to achieve a 5% reserve balance
Analysis of Fund Balance — General Fund
w Six year analysis of fund balance (General Fund)
w Focus is on the accumulation of reserves, year over year
w Key is understanding there are multiple reserve "buckets"
w Excellent growth in reserves
w Stable since 2014
General Fund — 6 Year History
Budgeting Methods Used
w Attrition Savings used for 2016-17 budget process
w % of department's projected budget was removed and reallocated back to
another, or same department, for other projects or programs
w Most, if not all, of the reallocated funds were vacant personnel positions
w Attrition Savings is a budgeting practice that is used and can be effective
w Important to clearly identify number of personnel positions funded in the
budget adoption
CITY COUNCIL MINUTES 17 JUNE 6, 2017
10A-17
2010.11 2011-12
1 2012-13 2013 14
2014.15
2015.1
Operating Reserve Account
Economic Uncertainty Account 4—
Assigned Account
AssignedAccount` _
Unallocated Account
Prepaid Rems _
Restricted/Committed
$6,673,290 $19,335,569
$26,842,243 $40,638,513
$3 845 592! $3,845,592
$5424,045',__$5,403,946
__ $913,595
$3,266,819' $3,357_,08.9
$41,512,985
$3,845,5921
1
_$16,618,376'
-�
$532,895$2,151,297
__$3,434,420;
$954,954
$42,397,974
$3,845,592
---
—
_$27,077,619
_
$1,454,962
1_$2,986,3971 $4,660,7621
_
$1,314, 33 1
$10,974,0181 $23,996,3311
$39,378,699;
$54,058,740!
$66,899,2221
$76,927,4441
_
t
Target Gaal for_Rese_mes
Operating Reserve Account (20%)_1
$40,400,00011 $41,000,000': $38,800,000 $40,538,518
$41,512,985 $42,397,974
Budgeting Methods Used
w Attrition Savings used for 2016-17 budget process
w % of department's projected budget was removed and reallocated back to
another, or same department, for other projects or programs
w Most, if not all, of the reallocated funds were vacant personnel positions
w Attrition Savings is a budgeting practice that is used and can be effective
w Important to clearly identify number of personnel positions funded in the
budget adoption
CITY COUNCIL MINUTES 17 JUNE 6, 2017
10A-17
w Difference between "authorized" and "funded" positions
Long Term Financial Projections
w Current position is stable
w Reserves may be needed to balance budgets
w Economic slowdown coming
w Increased costs coming
w Long term financial projections needed to achieve and maintain Budget and
Fiscal Policy
Conclusions/Recommendations
w All reserves accurately reflected in the June 30, 2016 audit
w Changes to Budget and Fiscal Policy will add flexibility for City Council and
Staff
w Budgeting method "Attrition Savings" should be modified to clearly identify
funded personnel positions in the adopted budget
w Long term financial projections created frequently to keep up with potential
quick spikes in operating costs
The following spoke on the matter:
• Mike Lopez, representing SEIU members, pledged support to work with
elected officials on revenue generating ideas.
• Kim McPeck, noted that number of SEIU employees went from 800 to 400.
Councilmember Solorio, thanked SEIU
that budget underestimates revenues,
decisions on added funds.
representatives for comments, opined
questioned as to who was making
Interim City Manager, proposed a quarterly budget where adjustments can be
made and propose other budgetary amendments as necessary.
Councilmember Benavides, asked if there were any implications to credit rating
if reserves lowered.
Mark Alvarado, opined that credit rating should not be impacted, but future
budget deficits may be considered in the rating.
Mayor Pro Tem Martinez, read concerns she posted on her Facebook page for
the record, noted that officials have received misleading projections in the past;
concerned that financial report not brought to the City Council for consideration
and staff has had budgetary cuts yet while the budget revenue was
underestimated.
Councilmember Tinajero, opined that there are some matters that can be
addressed quickly such as fees for use of Santa Ana Stadium and bonds for
infrastructure improvements; need to work with Congressman Correa and
leverage relationships and partnerships at the Federal level; improve economic
CITY COUNCIL MINUTES 18 JUNE 6, 2017
10A-18
development and address homelessness and consider medical cannabis
revenue opportunities; consider fees charged by the school district and City to
be consistent because they are different rates; develop our niche of Mexican
food/best tacos etc.
Mayor Pulido, need to drive economic activity; consider filling positions that are
funded; invest in youth programs; develop projects that general funds such as
proposed hotel on 3rd and Main Ave. that could generate $1 million in perpetuity;
address homelessness; City has over 700 restaurants throughout the City;
noted that OC Streetcar Project will revitalize surrounding area.
65C. APPROVE MODIFICATIONS TO THE CITY'S BUDGET AND FINANCIAL
POLICIES {STRATEGIC PLAN NO. 4, 11 - Finance and Management Services
Consideration of matter continued from the April 18, 2017 City Council meeting
to the May 2, 2017 City Council meeting by a vote of 5-0 (Sarmiento and
Tinajero absent). At the May 2, 2017 meeting the matter was referred to the
Economic Development Infrastructure, Budget and Technology Council
Committtee for review at the request of staff by a vote of 5-0 (Pulido and Solorio
absent).
Council discussion ensued.
Matters bifurcated. Agenda items A and C considered jointly and B separately.
Councilmember Tinajero, seconded by Councilmember Solorio motion to
approve items A and C.
Councilmember Solorio, seconded by Councilmember Tinajero motion to
approve item B.
The following spoke on the matter:
• Monica Suter, representing SEW members, concerned that 25% of
workforce is of retirement or close to retirement age and City compensation
no longer competitive; supports use of one-time use of funds.
MOTION: Approve the revised Budget and Financial Policies, elements a
and c, as follow:
a. Operating Reserve - Modify the operating reserve to require a
range of two months (16.67%) to a maximum of 20% operating
reserve. Provide language that operating reserves cannot be
used to cover budgetary shortfalls unless a fiscal emergency or
fiscal crisis is declared by the City Council.
R. Updated Terminology - Amend the current policy to include
terminology utilized in the Budget and Fiscal Policy consistent
CITY COUNCIL MINUTES 19 JUNE 6, 2017
10A-19
with the terms utilized in the City's Comprehensive Annual
Financial Report.
MOTION: Tinajero
SECOND: Solorio
VOTE: AYES:
Pulido, Solorio, Tinajero, Villegas (4)
NOES:
Benavides, Martinez (2)
ABSTAIN:
None (0)
ABSENT:
Sarmiento (1)
MOTION: Approve the revised Budget and Financial Policies, element
b, as follow:
b. One Time Revenue - Allow the use of one-time revenue to offset
structural deficits for one-year. Additionally, approve the use of
one-time revenue for a concurrent second year, subject to two-
thirds approval by the City Council.
MOTION: Solorio
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
PUBLIC HEARINGS
SECOND: Tinajero
Benavides, Pulido, Solorio, Tinajero, Villegas (5)
Martinez (1)
None (0)
Sarmiento (1)
75A-1. FISCAL YEAR 2017-2018 MISCELLANEOUS FEE RESOLUTION
{STRATEGIC PLAN 4, 2A) — Finance and Management Services
Legal Notice published in the Orange County Reporter on May 26, 2017 and
June 2, 2017.
Mayor Pulido opened the Hearing. The following spoke on the matter:
• Rick Niedermayer, concerned with fireworks fees that are substantially
higher than surrounding cities.
There were no other speakers and the Hearing closed.
CITY COUNCIL MINUTES 20 JUNE 6, 2017
1 OA -20
Council discussion ensued.
Councilmember Solorio, supportive of item.
Mayor Pro Tem Martinez, opposed to City subsidizing Bowers Museum and
Historic Mills Act properties; suggested broader discussion on fees; need to
consider resident services and taxes already paid by residents.
Councilmember Benavides, opined that matter should not be a revenue
generator, but recover costs; community already paying through their taxes;
maximize use of recreation centers (improved quality of life); review fees being
assessed at a subsequent City Council meeting.
MOTION: Adopt a resolution.
RESOLUTION NO. 2017-023 — RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA ESTABLISHING A UNIFORM SCHEDULE OF
MISCELLANEOUS FEES FOR FISCAL YEAR 2017-2018
MOTION: Solorio
SECOND: Villegas
VOTE: AYES:
Pulido, Solorio, Tinajero, Villegas (4)
NOES:
Benavides, Martinez (2)
ABSTAIN:
None (0)
ABSENT:
Sarmiento (1)
75A-2. ADOPTION OF CITY BUDGET FISCAL YEAR 2017-2018; THE SEVEN-YEAR
CAPITAL IMPROVEMENT PROGRAM (CIP) FROM FISCAL YEAR 2017-2018
THROUGH 2023-2024; AMEND AND RE-ESTABLISH THE CITY'S BASIC
COMPENSATION PLANS {STRATEGIC PLANO NO. 4, 2A} — Finance and
Management Services
Legal Notice published in the Orange County Reporter on May 26, 2017 and
June 2, 2017.
Mayor Pulido opened the Hearing. The following spoke on the matter:
• Johnathan Hernandez, opined that City needs to redistribute funds —
community investment; more schools needed, not prisons.
• Jackie Cordova, representing Delhi Center, supports youth and community
programs and continued assistance to non-profit organizations.
• Ivan Enriquez, request additional services for our residents, specifically
youth programs.
CITY COUNCIL MINUTES 21 JUNE 6, 2017
1 OA -21
There were no other speakers and the Hearing closed.
Council discussion ensued.
Mayor Pro Tem Martinez, proposed equitable treatment for all commissioners
including pay for Youth Commissioners; opined that attrition not clear in the
audit report; approve specific numbers; 5-10 year projections be included on
pension and other long term liabilities; mid -year budget review; suggest that
compensation for youth commission members stipend be the same for equity
purposes; strategic plan aligned with the budget —list of funded projects and City
Council to consider their commitment to these programs (clear understanding);
forensic audit to make sure that budget is authentic; labor unions have done
their own review which is inconsistent with reports projected by staff; concerned
with transfer of funds to general fund; one-time revenue need to be reoccurring
to keep up with expenses; malls are changing and revenue generation has
changed in recent past; work with employees and residents on sustainability.
Councilmember Benavides, asked what efforts have been made to address
revenue generating efforts; need to support local businesses; business
attraction; spoke of commitments to the community that would improve the
quality of life, need to scale back, but also serve our residents; need to be
proactive with youth programs and be strategic to expand programs (library,
schools etc.).
Councilmember Solorio, need clarity on programs and services for homeless;
spoke of recent incident at Logan Park; hire more officers including park
rangers; request update on medical marijuana revenue generating plan; public
safety and youth programs need to be addressed; and also commented on
Kayak program.
Councilmember Tinajero, need to strategize on how to bring more revenue
before we add more staff.
Mayor Pulido, support youth prevention programs, not just suppression.
MOTION: Continue consideration of items 1-3 to the June 20, 2017 City
Council meeting:
9. Authorize the use of fund balance from the general fund in the amount
of $9.3 million for fiscal year 2017-18. (Requires five affirmative votes
pursuant to Fiscal Policy.)
2. Direct staff to transition from a Type II Jail Facility to a Holding Facility
during fiscal year 2017-18.
3. Place ordinance on first reading and authorize publication of title.
(Requires five affirmative votes pursuant to Fiscal Policy.)
CITY COUNCIL MINUTES 22 JUNE 6, 2017
1 OA -22
MOTION: Solorio SECOND: Benavides
VOTE: AYES: Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Sarmiento (1)
MOTION: Approve items 4-7 as proposed by staff:
4. Adopt a Seven -Year Capital Improvement Program (CIP) beginning
fiscal year 2017-18 through fiscal Year 2023-24 per Orange County
Transportation Authority (OCTA) Measure M2 eligibility requirement.
5. Adopt a resolution.
RESOLUTION NO. 2017-024 — RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO
EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION
AND COMPENSATION PLANS
6. Direct the City Manager to present a quarterly fiscal review, for the
General Fund, during fiscal year 2017-18 and provide for the
accounting of unspent funds as it relates to vacant positions.
7. Direct the City Manager to explore operational efficiencies and revenue
enhancements to minimize usage of one-time funds.
MOTION: Benavides
VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
SECOND: Tinajero
Benavides, Martinez, Pulido, Solorio, Tinajero,
Villegas (6)
None (0)
None (0)
Sarmiento (1)
CITY COUNCIL MINUTES 23 JUNE 6, 2017
1 OA -23
75B. ADOPT AN ORDINANCE TO REGULATE MOBILE FOOD VENDING
VEHICLES {STRATEGIC PLAN NO 5, 41 - Planning and Building Agency; and
City Attorney)
Legal Notice published in the Orange County Reporter and the Orange County
Register on May 26, 2017; published in La Opinion on May 26, 2017; and
notices mailed to mobile vendors on May 26, 2017.
MOTION: Continue consideration of matter to the June 20, 2017 City
Council Meeting, at the request of staff.
MOTION: Tinajero SECOND: Solorio
VOTE: AYES: Martinez, Pulido, Solorio, Tinajero, Villegas (5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Benavides, Sarmiento (2)
75C. ORDINANCE AMENDMENT NO. 2017-01 TO AMEND CERTAIN SECTIONS
OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE (MEDICAL
MARIJUANA COLLECTIVES/ COOPERATIVES) — CITY OF SANTA ANA,
APPLICANT {STRATEGIC PLAN NOS. 3, 2; 3, 51 - Planning and Building
Agency
Legal Notice published in the Orange County Reporter on May 26, 2017.
MOTION: Continue consideration of matter to the June 20, 2017 City
Council Meeting.
MOTION: Tinajero SECOND: Solorio
VOTE: AYES: Martinez, Pulido, Solorio, Tinajero, Villegas (5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Benavides, Sarmiento (2)
CITY COUNCIL MINUTES 24 JUNE 6, 2017
1OA-24
75D. RESOLUTION DETERMINING PUBLIC INTEREST AND NECESSITY FOR
THE ACQUISITION OF REAL PROPERTY AT 1922 (ALSO KNOWN AS 2006)
AND 2002 WEST 5TH STREET (OC STREETCAR PROJECT - PROJECT NO.
17-6766) (NONGENERAL FUND) {STRATEGIC PLAN NOS. 3, 2C AND 413; 6,
1 G} - Public Works Agency
Notice of Hearing letter regarding acquisition of real property by eminent domain
mailed to property owners on May 17, 2017.
Mayor Pulido opened the Hearing. The following spoke on the matter:
• Michael I. Kehoe, opposed to acquisition due to service provided by property
owner; owner has not be able to find another feasible location.
• Family of Valdivia, read letter into the record on behalf of the family.
There were no other speakers and the Hearing closed.
Council discussion ensued.
Fred Mousavipour, Executive Director of Public Works, noted that project has
been reviewed by various entities and deemed appropriate for project.
MOTION. Adopt a resolution. (Requires five affirmative votes)
RESOLUTION NO. 2017-025 — RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA FINDING AND DETERMINING THAT THE PUBLIC
INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION
OF CERTAIN REAL PROPERTIES LOCATED WITHIN THE CITY OF SANTA
ANA AT 1922 (also known as 2006) & 2002 W. FIFTH STREET (APN 007-100-
04 & 007-100-05) FOR THE ORANGE COUNTY STREETCAR PROJECT
MOTION: Villegas
SECOND: Benavides
VOTE: AYES:
Benavides, Pulido, Solorio, Tinajero, Villegas (5)
NOES:
Martinez (1)
ABSTAIN:
None (0)
ABSENT:
Sarmiento (1)
75E. RESOLUTION DETERMINING PUBLIC INTEREST AND NECESSITY FOR
THE ACQUISITION OF REAL PROPERTY AT 2016-2020 WEST 5TH STREET
(OC STREETCAR PROJECT - PROJECT NO. 17-6766) (NONGENERAL
FUND) {STRATEGIC PLAN NOS. 3, 2C AND 4B; 6, 1 G) - Public Works Agency
CITY COUNCIL MINUTES 25 JUNE 6, 2017
1 OA -25
M
Notice of Hearing letter regarding acquisition of real property by eminent domain
mailed to property owners on May 17, 2017.
Mayor Pulido opened the Hearing. The following spoke on the matter:
• Michael I. Kehoe, incorporate same objections as Valdivia family on behalf of
Navarro family.
• Ruby Woo, opposed to recycling facility and neighborhood looking forward to
streetcar project.
There were no other speakers and the Hearing closed.
MOTION: Adopt a resolution. (Requires five affirmative votes)
RESOLUTION NO. 2017-026 — RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA FINDING AND DETERMINING THAT THE PUBLIC
INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION
OF CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF SANTA
ANA AT 2016-2020 W. FIFTH STREET (APN 007-110-17) FOR THE ORANGE
COUNTY STREETCAR PROJECT
MOTION: Villegas
SECOND: Benavides
VOTE: AYES:
Benavides, Pulido, Solorio, Tinajero, Villegas (5)
NOES:
Martinez (1)
ABSTAIN:
None (0)
ABSENT:
Sarmiento (1)
COMMENTS
CITY COUNCILMEMBER COMMENTS
Councilmember Tinajero:
Thanked colleagues and public on budget discussion, having pending items;
need continued investment in our community — need to be prudent and
protect tax payer dollars;
CITY COUNCIL MINUTES 26 JUNE 6, 2017
1 OA -26
• Noted that students were recognized tonight; continued investment needed;
Elk funds, AVID program among others; and
• Recognized recent fallen soldier; honor our military.
*Councilmember Tinajero left the meeting at 10:28 p.m. and did not return.
PUBLIC COMMENTS
• Perla Dionicio, thanked Councilmember Tinajero for speech debate; spoke against ICE
deportations.
• Farooq Ansari, spoke of summer learning gap from lower socio-economic means;
proposed program to assist youth.
• Claudio Gallegos, thanked the Santa Ana Police Department for keeping the peace at
recent town hall meeting.
90A. CITY MANAGER'S COMMENTS
90B. CITY COUNCILMEMBER COMMENTS
Councilmember Solorio:
• Thanked Congressman Correa for moving office back to Santa Ana;
• Noted that his wife is part of law academy;
• Fourth of July coming up; outreach needed on fines and contact phone
number for complaints; and
• Thanked staff for annual Zoo report.
Councilmember Villegas:
• Echoed comments by Councilmember Solorio;
• Attended neighborhood clean-up event; and
• Nicholas Foundation held graduation and celebration event over the
weekend; congratulated all graduates.
Councilmember Benavides:
• Thanked all speakers;
• Spoke of revenue generating ideas; and
• Urged all to continue to support local economy.
Mayor Pro Tem Martinez:
• Reiterated comments on aligning budget with strategic plan; need to fulfill
promises and commitment to the community; concerned with surplus funds
and possible use one-time funds to balance the budget; request list of
projects/commitments;
• Noted that City of Tustin held discussion on tiny homes and use for
homeless; proposed use of remnant parcels for tiny homes;
CITY COUNCIL MINUTES 27 JUNE 6, 2017
1 OA -27
• Chepa Park had incident over the weekend; need more park rangers; use of
cameras to assist with deterrence;
• Opined that prevention and intervention programs for youth are needed;
evaluate programs such as Project Kinship;
• Flag Day is coming up; suggest empty polls fly City flag and also at school
sites — demonstrate City pride; and
• Wished all a Happy Father's Day.
Mayor Pulido:
• Happy Father's Day to all!
ADJOURNED— 10:49 P.M. - The next meeting of the City Council is scheduled for
Tuesday, June 20, 2017 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.
Maria D. Huizar,
Clerk of the Council
FUTURE AGENDA ITEMS
• Community Engagement Program
• Labor Contracts
CITY COUNCIL MINUTES 28 JUNE 6, 2017
1 OA -28