HomeMy WebLinkAboutNS-2927 - Adding Division 3 to Article 10 of Chapter 8 of City of Santa Ana Municipal Code...8.1.17 LS
ORDINANCE NO. NS -2927
AN ORDINANCE, ADDING DIVISION 3 TO ARTICLE 10,
OF CHAPTER 8 OF THE CITY OF SANTA ANA
MUNICIPAL CODE OF TO BE ENTITLED,
"REGISTRATION AND MAINTENANCE OF ABANDONED
AND DEFAULTED MORTGAGE PROPERTY"; PROVIDING
FOR PURPOSE, INTENT AND APPLICABILITY OF THE
ORDINANCE REQUIRING THE REGISTRATION AND
MAINTENANCE OF CERTAIN REAL PROPERTY BY
MORTGAGEES; PROVIDING FOR PENALTIES AND
ENFORCEMENT, AS WELL AS THE REGULATION,
LIMITATION AND REDUCTION OF REGISTRABLE REAL
PROPERTY WITHIN THE CITY
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The City Council desires to protect the public health, safety and welfare of the
citizens of the City of Santa Ana and maintain a high quality of life for the citizens
of the City through the maintenance of structures and properties in the City.
B. Vacant and abandoned residential and commercial properties are a
significant problem and can depreciate property values, reduce property tax
revenue, attract crime, degrade the quality of life within the community and foster
an unsafe and unhealthy environment for residents.
C. The foreclosing party or property owners are often out of state, and there is
no local contact for such a property, which makes it difficult to notice the proper
party of the violations of the municipal code, and to maintain the requisite level of
maintenance and security on such structures or lots.
D. The Council has a vested interest in protecting neighborhoods against decay
caused by registrable property and concludes that it is in the best interests of the
health, safety, and welfare of its citizens and residents to impose registration
requirements of registrable property located within the City to discourage
registrable property owners and mortgagees from allowing their properties to be
abandoned, neglected or left unsupervised.
E. The Council desires to amend the City's code in order to establish a property
registration process that will identify a contact person to address safety and
aesthetic concerns to minimize the negative impact and conditions that occur as
a result of vacancy, absentee ownership and the foreclosure process.
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F. The City Council finds that the implementation of the following changes and
additions will assist the City in protecting neighborhoods from the negative
impact and conditions that occur as a result of vacancy, absentee ownership and ,
lack of compliance with existing City regulations and laws.
Section 2. Pursuant to the California Environmental Quality Act ("CEQA") and
the state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA review
pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it
can be seen with certainty that there is no possibility that the project may have a
significant effect on the environment. As a result, a Notice of Exemption will be filed
upon the adoption of this ordinance.
Section 3. The City hereby amends the Santa Ana Municipal Code ("SAMC") by
adding Division 3 to Article 10 of Chapter 8, entitled "Registration and Maintenance of
Abandoned and Defaulted Mortgage Properties" to read as follows:
DIVISION 3. REGISTRATION AND MAINTENANCE OF ABANDONED AND
DEFAULTED MORTGAGE PROPERTIES
8-1982. Purpose.
It is the intent of the City Council, through the adoption of this division, to establish a
mechanism to protect neighborhoods from becoming blighted through the lack of
maintenance and security of abandoned and vacant properties; to establish an
abandoned property registration program and to set forth guidelines for the
maintenance of such properties.
8-1983. Definitions.
For the purpose of this Division the following terms, phrases and words, shall have the
meaning set forth below:
"Abandoned" means any real property that is vacant or shows evidence of vacancy,
and (1) is subject to a current notice of default and/or notice of trustee's sale,
pending tax assessors lien sale and/or (2) is the subject of a foreclosure sale
resulting in the acquisition of title by an interested beneficiary of a deed of trust,
and/or (3) was conveyed to the current owner under a deed in lieu of
foreclosure/sale.
"Abatement order" means a notice of violation, notice and order, or administrative
citation. As used in this chapter, the terms "abate" and "abatement" means action
to repair, replace, remove, destroy, terminate, or otherwise remedy the condition or
activity in question by such means and in such manner as is necessary in the
interests of the health, safety or welfare of the public. (SAMC Section 17-4)
"Accessible Property" means real property that is accessible to the public, either, in
general or through an open and unsecured door, window, gate fence, wall, etc.
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"Accessible Structure" means a building or structure that is not secured or is open
in such a way as to allow public or unauthorized access to the interior.
"Administrative Penalty Payment Due Date" means the date that is the 10th day
after the issuance of an abatement order, a notice of violation issued pursuant to
SAMC Section 1-21.7 (1).
"Agreement" means any written instrument that transfers or conveys title to
residential or commercial real property from one owner to another after a sale,
trade, transfer or exchange.
"Beneficiary" means a lender participating in a real property transaction that holds a
secured interest in the real property in question identified in a deed of trust.
"Buyer" means any person, partnership, association, corporation, fiduciary or other
legal entity that agrees to transfer anything of value in consideration for real
property via an agreement.
"Dangerous Building" means any building or structure reasonably deemed by
authorized City staff to represent a violation of any provision specified in the
Uniform Code for the Abatement of Dangerous Buildings, International Property
Maintenance Code, and California Health and Safety Code section 17920.3.
"Days" means Calendar days.
"Deed of Trust" means an instrument whereby an owner of real property, as trustor,
transfers a secured interest in the real property in question to a third party trustee,
as security for a loan issued in the context of a real property transaction. This
definition applies to any and all subordinate deeds of trust; i.e., 2nd trust deed, 3'd
trust deed, etc.
"Deed In Lieu Of Foreclosure" means a recorded instrument that transfers
ownership of property from the trustor to the holder of a deed of trust upon consent
of the beneficiary of the deed of trust.
"Default" means the material breach of, or failure to fulfill, a legal or contractual duty
arising from or relating to a deed of trust.
"Distressed" means any building, structure or real property that is subject to a
current notice of default and/or notice of trustee's sale, pending tax assessors lien
sale and/or any real property conveyed via a foreclosure sale resulting in the
acquisition of title by an interested beneficiary of a deed of trust, and/or any real
property conveyed via a deed in lieu of foreclosure/sale, regardless of vacancy.
"Enforcement Official" means the City Manager, the Building Official, and/or any
employee or agent of the City of Santa Ana designated and/or charged with
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enforcing this Code, including but not limited to applicable codes adopted by
reference therein.
"Evidence of Vacancy" means any real property condition that independently, or in
the context of the totality of circumstances relevant to that real property would lead
a reasonable enforcement official to believe that a property is vacant or occupied
by a person without a legal right of occupancy. Such real property conditions
include but are not limited to: overgrown or dead vegetation; accumulation of
newspapers, circulars, flyers or mail; past due utility notices or disconnected
utilities; accumulation of trash, junk or debris; the absence of window coverings
such as curtains, blinds or shutters; the absence of furnishings or personal items
consistent with residential habitation; and/or statements by neighbors, passersby,
delivery agents, government employees that the property is vacant.
"Foreclosure" means the legal process by which a mortgagee, or other lien holder,
terminates a property owner's equitable right of redemption to obtain legal and
equitable title to the real property pledged as security for a debt or the real property
subject to the lien. This definition shall include, but is not limited to, public notice of
default, a deed -in -lieu of foreclosure, sale to the mortgagee or lien holder,
certificate of title and all other processes, activities and actions, by whatever name,
associated with the described process. The process is not concluded until the
property obtained by the mortgagee, lien holder, or their designee, by certificate of
title, or any other means, is sold to a non -related bona fide purchaser in an arm's
length transaction to satisfy the debt or lien.
"Local" means within 40 driving miles of the subject building, structure or real
property.
"Neighborhood Standard" means the condition of real property that prevails in and
through the neighborhood where an abandoned building, structure or real property
is located. When determining the neighborhood standard no abandoned or
distressed building, structure or real property shall be considered.
"Notice of Default" means a recorded instrument that reflects and provides notice
that a default has occurred under a deed of trust, and that the beneficiary intends to
proceed with a trustee's sale.
"Notice of Trustee's Sale" means a document prepared and recorded by the trustee
that sets forth the day, date and time of the trustee's sale, describes the property to
be sold, and gives an estimate for the unpaid debt on the deed of trust secured by
the property.
"Out of Area" means in excess of 40 road or driving miles of the subject building,
structure or real property.
"Owner" means any person, partnership, association, corporation, fiduciary or other
legal entity having a legal or equitable title or any interest in real property.
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"Owner of Record" means any person shown as the owner of land on the last
equalized assessment roll produced by the Orange County Recorder's Office.
"Property" means any unimproved or improved real property designed or permitted
to be used for commercial, residential or dwelling purposes, or portion thereof,
including but not limited to building or structures located on said real property,
regardless of condition.
"Registrable Property" means any real property located in the City, whether vacant
or occupied, that is encumbered by a mortgage in default, is subject to an ongoing
foreclosure action by the Mortgagee or Trustee, is subject to an application for a tax
deed or pending tax assessor's lien sale, or has been the subject of a foreclosure
sale where the title was transferred to the beneficiary of a mortgage involved in the
foreclosure and any properties transferred under a deed in lieu of foreclosure/sale.
The designation of a "default/foreclosure" property as "registrable" shall remain in
place until such time as the property is sold to a non -related bona fide purchaser in
an arm's length transaction or the foreclosure action has been dismissed and any
default on the mortgage has been cured.
"Residential Building" means any improved real property, or portion thereof,
designed or permitted to be used for dwelling purposes, including buildings and
structures located on such improved real property. This includes any real property
being offered under any circumstances for sale, trade, transfer, or exchange as
"residential," whether or not said property is legally permitted and zoned for such
use.
"Secure" means such measures as may be directed by an enforcement official that
assist in rendering real property inaccessible to unauthorized persons, including but
not limited to repairing fences and walls, chaining/pad locking gates, the repairing
or boarding of doors, windows or other openings. Such measures shall be
implemented in conformance with all applicable standards of the United States
Department of Housing and Urban Development.
"Tax assessor's lien sale" means the sale, conducted by the Assessor of Orange
County, of tax liens for delinquent taxes on the property.
"Trustee" means any person, partnership, association, corporation, fiduciary or
other legal entity holding a deed of trust securing an interest in real property for the
benefit of the beneficiary.
"Trustor" means any owner/borrower identified in a deed of trust, who transfers an
interest in real property to a trustee as security for payment of a debt by that
owner/borrower.
"Vacancy/Vacant" means any building, structure or real property that is unoccupied
or occupied by a person without a legal right of occupancy.
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8-1984. Duty to record instrument for property transfer.
Within 10 days of a property transaction involving a change in the identity of an owner
or the owner of record, or alternatively a transfer/assignment of a loan or deed of trust
secured by residential or commercial property, each beneficiary and trustee engaged in
said transaction or transfer/assignment shall record, with the Orange County Recorder's
Office, an instrument evidencing such transaction, transfer or assignment. This
instrument shall reflect the identity, mailing address and telephone number of the
trustee and beneficiary responsible for receiving payments associated with the loan or
deed of trust in question. This duty/obligation shall be joint and several among and
between all trustees and beneficiaries and their respective agents.
8-1985. Registration.
A. Each beneficiary and trustee, who holds a deed of trust on a property located
within the City of Santa Ana, shall perform an inspection of ,the property that is
security for the deed of trust upon default by the trustor prior to recording a Notice
of Default or similar instrument with the Orange County Recorder's Office.
B. If such inspection shows that the property is abandoned, the owner, beneficiary
or trustee shall, within 10 days of the inspection, register the property with the
City's Code Enforcement division on forms provided by the City.
C. If the property is occupied but distressed, the trustee and beneficiary or a
designee shall inspect the property on a monthly basis until:
1. The trustor or another party remedies the default; or
2. The property is found to be vacant or shows evidence of vacancy,
deemed abandoned and registered subject to subsection B of this section.
D. The registration required pursuant to subsection B of this section shall contain
the identity of the beneficiary and trustee, the direct mailing address (no postal box
address), email address and phone number of the beneficiary and trustee and, in
the case of a corporate or out of area beneficiary or trustee, the local property
management company, if any, responsible for the security, maintenance and
marketing of the property in question.
E. The registration pursuant to subsection B of this section shall be renewed
annually.
F. This section shall also apply to properties that have been the subject of a
foreclosure sale wherein title has been transferred to the beneficiary of a deed of
trust involved in the foreclosure, and to any properties transferred under a deed in
lieu of foreclosure.
- Ordinance No. NS -2927
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G. Properties subject to this chapter shall remain subject to the annual registration
requirement, security and maintenance standards of this division as long as they
remain vacant and/or abandoned.
H. Any person, partnership, association, corporation, fiduciary or other legal entity
that has registered a property under this chapter must make a written report to the
City's Code Enforcement Division of any change of information contained in the
registration within 10 days of the change.
I. If the mortgage on a registrable property is sold or transferred, the new
Mortgagee is subject to all the terms of this Article and within 5 days of the transfer
must register the property and pay a registration fee in accordance with this Article.
Any previous unpaid annual registration fees are the responsibility of the new
Mortgagee or Trustee and are due and payable with their initial registration.
J. If the Mortgagee owner of a foreclosed real property sells or transfers the
property to a non -arm's length related person or entity, the transferee is subject to
all the terms of this Article and within 5 days of the transfer must register the
property and pay a registration fee in accordance with this Article. Any previous
unpaid annual registration fees are the responsibility of the new Registrable
property owner and are due and payable with their initial registration.
K. As long as the property is Registrable it shall be inspected by the Mortgagee, or
designee, monthly. If an inspection shows a change in the property's occupancy
status the mortgagee shall, within ten (10) days of that inspection, update the
occupancy status of the property registration.
L. Mortgagees who have existing registerable property on the effective date of this
ordinance have 30 calendar days from the effective date to register the property
with the City, or its designee, on forms or other manner as directed, and indicate
whether the property is vacant or occupied.
8-1986. Maintenance requirements.
It is declared a public nuisance for any person, partnership, association, corporation,
fiduciary or other legal entity, that owns, leases, occupies, controls or manages any
abandoned property to cause, permit, or maintain any property condition contrary to any
provision of this chapter. The following maintenance standards shall apply to any
abandoned or vacant property:
A. Any abandoned property shall be maintained in compliance with the
requirements of this chapter and Santa Ana Municipal Code Chapters 16, Chapter
41, the Uniform Code for the Abatement of Dangerous Buildings, International
Property Maintenance Code and California Health and Safety Code section
17920.3.
B. Abandoned property shall be kept free of weeds, dry brush, dead vegetation,
excessive foliage growth, trash, junk, debris, building materials, any accumulation
Ordinance No. NS -2927
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of newspaper, circular flyers, notices (except those required by federal, state or
local law), discarded personal items including but not limited to, furniture, clothing,
large and small appliances, printed material or any other items that give the
appearance that the property is abandoned.
C. Abandoned property shall be maintained free of graffiti, tagging or similar
marking in accordance with Article IV of Chapter 10 of the SAMC. Any removal or
painting over of graffiti shall be with an exterior grade paint that matches the color
of the exterior of the structure.
D. Visible front and side yards shall be landscaped and maintained to the
neighborhood standard. Landscaping includes, but is not limited to, grass, ground
covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark or
artificial turf/sod designed specifically for residential installation and standards listed
in the Santa Ana Municipal Code Santa Ana Municipal Code 41-609 "Landscape",
and abide by the Planning and Public Works division landscape standards.
Landscaping does not include weeds, gravel, broken concrete, asphalt, plastic
sheeting, mulch, indoor -outdoor carpet or any similar material.
E. Pools and spas shall be kept in working order so that water remains clear and
free of pollutants, mosquito larvae, and debris, or alternatively shall be drained and
kept dry. In either case, properties with pools and/or spas must comply with the
minimum security fencing requirements set forth in Article XIII of this Chapter and
minimum state standards, whichever is more restrictive.
F. Adherence to this section does not relieve the beneficiary/trustee or property
owner of obligations set forth in any covenants conditions and restrictions and/or
homeowner's association rules and regulations which may apply to the property.
An enforcement official may allow exceptions to the maintenance standards set
forth in this section for abandoned property that is under construction and/or repair,
that is diligently pursued for at least three (3) business days per week, and is
undertaken in compliance with all applicable laws including but not limited to City
permitting requirements.
8-1987. Security requirements.
A. Abandoned and vacant properties shall be secured so as not to be accessible
to unauthorized persons.
B. Securing of abandoned property includes but is not limited to closing and
locking of windows, doors (walk-through, sliding and garage), gates and any other
opening that may allow access to the interior of the property and or structure(s). In
the case of broken windows securing means re -glazing or boarding the window.
C. If the abandoned property is owned by a corporation and/or out of area
beneficiary/trustee/owner, a local property management company shall be
contracted to perform weekly inspections to verify that the abandoned property is
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maintained in accordance with the requirements of this section, and any other
applicable laws.
D. The property shall be posted with the name and 24-hour contact phone number
of the local property management company. The posting shall be no less than 18" x
24", shall be of a font that is legible from a distance of forty-five (45) feet, and shall
contain the following verbiage: 'THIS PROPERTY MANAGED BY
and "TO REPORT PROBLEMS OR CONCERNS CALL (name and phone
number)."
E. The posting shall be placed on the interior of a window facing the street to the
front of the property so it is visible from the street, or secured to the exterior of the
building/structure facing the street of the front of the property so it is visible from the
street. If no such area exists, the posting shall be on a stake of sufficient size to
support the posting, in a location that is visible from the street to the front of the
property, and to the extent possible, not readily subject to potential vandalism.
Exterior posting must be constructed of, and printed with weather resistant
materials.
F. The local property management company shall inspect the property on a
weekly basis to determine if the property is in compliance with the requirements of
this division. If the property management company determines the property is not
in compliance, it is the company's responsibility to bring the property into
compliance.
G. The duties and obligations specified in this section shall be joint and several
among and between all trustees and beneficiaries and their respective agents.
8-1988. Additional authority.
In addition to the enforcement remedies established in this division, the City shall have
the authority to require the beneficiary, trustee, owner or owner of record of any
property affected by this section, to implement additional maintenance and/or security
measures including but not limited to, securing any and all doors, windows or other
openings, installing additional security lighting, increasing on-site inspection frequency,
employment of an on-site security guard or other measures as may be reasonably
required to secure and reduce the visual decline of the property.
8-1989. Fees.
An annual non-refundable Foreclosed Vacant property registration fee shall be paid to
City at the time of registration, annually thereafter on January 1 sc each year and must be
received no later than January 31 of the year due. If the foreclosed and/or abandoned
property is sold or transferred within a calendar year to a new bank/owner it will need to
register the foreclosed and/or abandoned property; the annual fee is not transferrable.
The fee for registering and re -registering a foreclosed and/or abandoned property shall
be set, from time to time, by resolution of the City Council. The amount of the fee shall
not exceed the cost of administering the provisions of this chapter.
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Additional hourly inspection fees as set forth in the City's Miscellaneous Fee resolution
may be levied on a Property for staff time to inspect and enforce the provision of this
Code when a complaint has been filed on a Property subject to this article.
8-1990. Enforcement.
A. Any violation of this division shall be treated as a strict liability offense; a
violation shall be deemed to have occurred regardless of a violator's intent.
B. Any person, partnership, association, corporation, fiduciary or other legal entity,
that owns, leases, occupies, controls or manages any abandoned property and
causes, permits, or maintains a violation of the chapter as to that property, shall be
guilty of a misdemeanor, and upon conviction thereof, may be punished as provided
in SAMC section 1-8.
C. This section is intended to be cumulative to, and not in place of, other rights
and remedies available to the City pursuant to this Code. As an alternative to the
violation and penalty specified in this section, the City Attorney or enforcement
official may pursue any other right or remedy permitted by this Code, including, but
not limited to, commencement of any civil action, or administrative action to abate
the condition of a property as a public nuisance pursuant to SAMC sections 1-21
through 1-21.9.
D. If an enforcement officer determines that the owner of abandoned property has
failed to maintain that property as obligated under California Civil Code Section
2929.3 and in accordance with this chapter, the City may impose a civil fine against
the owner of up to one thousand dollars ($1,000) per day, or an amount set by the
City's Miscellaneous Fee Schedule as amended from time to time, for each day that
the owner fails to maintain the property commencing on the day following the
expiration of the period to remedy the violation as set forth in the notice provided
pursuant to subsection E.
E. If the City chooses to impose a fine pursuant to subsection D of this section, it
shall give notice of the alleged violation to the owner. The notice shall include a
description of the conditions that gave rise to the violation, and notice of the City's
intent to assess a civil fine if action to correct the violation is not commenced within
a period of not less than 14 days and completed within a period of not less than 30
days. The notice shall be mailed to the name and address provided in the deed or
other instrument for mailing future tax statements, or, if none, to the return address
provided on the deed or other instrument.
F. The City shall provide a period of not less than 30 days for the legal owner to
remedy the violation prior to imposing a civil fine. Notwithstanding the foregoing, the
City may provide less than 30 days' notice to remedy a condition before imposing a
civil fine if the entity determines that a specific condition of the property threatens
public health or safety and provided that notice of that determination and time for
compliance is given.
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G. The City shall provide an owner who wishes to contest any fines imposed
pursuant to subsection D a hearing and opportunity to be heard in accordance with
the procedures for administrative citations contained in Chapter 1.14 of this Code.
H. Payment of the administrative and civil penalties shall not excuse the failure to
correct the violation nor shall it bar further enforcement action.
8.1991. Appeals.
Any person aggrieved by any of the requirements of this division may appeal a
determination made hereunder in the manner specified with respect to appeals under
SAMC Section 1-21.8 through 1-21.9 or SAMC Chapter 3.
8-1992. Joint and several liability.
The duties/obligations specified in this division shall be joint and several among and
between all trustees and beneficiaries and their respective agents.
Section 4. The charges and fees authorized by Section 8-1989 of this Code shall
be set forth in a fee schedule established by concurrent resolution. Such charges and
fees shall be incorporated into, and where appropriate, supersede the City's Uniform
Schedule of Miscellaneous Fees for Fiscal Year 2017-18.
Section 5. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 6. The Clerk of the Council shall certify the adoption of this ordinance
and shall cause the same to be published as required by law.
ADOPTED this 17th day of October, 2017.
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APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By: c4
Lisa 8torck
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
ABSENT: Councilmembers
Benavides Martinez, Pulido, Sarmiento, Solorio,
Tinalero, Villegas (7)
None (0)
None (0)
None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -2927 to be the original ordinance adopted by the City
Council of the City of Santa Ana on October 17, 2017, and that said ordinance was
published in accordance with the Charter of the City of Santa Ana.
Date: —Led17 � ayvc � 2
Maria D. Huizar
Clerk of the Council
City of Santa Ana
Ordinance No. NS -2927
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