Loading...
HomeMy WebLinkAbout FULL PACKET_2017-11-7MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA OCTOBER 17, 2017 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:15 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO (6:27 P.M.) SAL TINAJERO (5:25 P.M.) JUAN VILLEGAS COUNCILMEMBERS Absent: None STAFF Present: CYNTHIA J. KURTZ, Interim City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS • Irma Jauregui, spoke on behalf of Wilshire Square Neighborhood Association, opposed to total contract amount for incoming City Manager which is higher than U.S. President. • Debbie McEwen, noted that candidate is fine fellow that worked here before, Santa Ana is giant and complicated and deserves most talented and experienced and scope that we can possibly hire; search was small and group was minimal; deserve broader base of candidates. • Lisa Mills, executive recruiter for national firm; suggest that recruiter go back; unanimous vote needed; no qualified candidate should be accepted with split vote; benefit package includes evergreen; most money than any other in state of California; candidate is likeable; handed 205 signed petition in opposition to hire for City Council consideration. • Mohammed Aly, speaking on litigation with catholic worker; proposed ordinance is tied to item on the agenda; deemed unconstitutional violations suspected; met with advocates have meet with City Attorney and staff; discussed point by point and questioned constitutionality of each; reiterated importance of free speech with unbridle relations to CITY COUNCIL MINUTES 1 OCTOBER 17, 2017 10A-1 ordinance; government interest has already been ruled by courts; must be narrowly tailored to many. • Perla Dionicio, spoke on former Police Chief Rojas case, opined that lawsuit outlines corruption; request full investigation. • Jose Tapia, also spoke on lawsuit case by former Police Chief Rojas; opined that content of case is of concern; commend him for bravery in filing lawsuit. COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:22 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. PUBLIC EMPLOYEE — APPOINTMENT pursuant to Government Code Section 54957(b)(1). Title: City Manager 2. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION pursuant to paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: • The Orange County Catholic Worker, et al. v City of Santa Ana, United States District Court for the Central District of CA (S.D.), Case No.: 8:17-cv-01340 • Carlos Rojas v City of Santa Ana, Orange County Superior Court of CA, Case No. 30-2017-00946219-C U -O E -CJ C 3. 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 Management Association (PMA) • Service Employees' International Union (SEIU) Full -Time Employees • Confidential Association of Santa Ana (CASA) • Santa Ana Management Association (SAMA) CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED THE CLOSED SESSION MEETING AT 6:31 P.M. AND CONVENED TO THE REGULAR OPEN MEETING. CITY COUNCIL MINUTES 2 OCTOBER 17, 2017 1OA-2 CALLED TO ORDER ATTENDANCE PLEDGE OF ALLEGIANCE PRESENTATIONS REGULAR OPEN MEETING COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 6:33 P.M. COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO JUAN VILLEGAS COUNCILMEMBERS Absent: None STAFF Present: CYNTHIA J. KURTZ, Interim City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council UvreN.Twallill CERTIFICATE OF RECOGNITION presented by STATE SENATOR JANET NGUYEN, MAYOR PRO TEM MARTINEZ AND MEMBERS OF THE CITY COUNCIL to Santa Ana Police Sergeant Mike Gonzalez for his bravery in saving lives of victims of the Las Vegas shooting. SPECIAL PRESENTATION — Update from the Planning Commission. PROCLAMATION presented by MAYOR PULIDO in recognition of Childhood Lead Poisoning Prevention Week. CERTIFICATES OF RECOGNITION presented by COUNCILMEMBER SARMIENTO to the Orange County Labor Federation Civic Engagement & Leadership Participants: Corina Aguirre; Maria Lourdes Ayala; Liliana Ayon; Silvia Barajas; Ofelia Chavez; Eva Corona; Juana de la Torre; Maria del Carmen Mejia; Idalia Frias; Aurelia Hernandez; Emelia Mancia; CITY COUNCIL MINUTES 3 OCTOBER 17, 2017 10A-3 Graciela Murguia; Hilda Nieto; Maricela Reyes; Bertha Rodriguez; Melina Santiago; Julia Santillo; Mayte Tapia; Silvia Torres; Marta Saavedra; and Martha Valdez. CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Benji's Deli in recognition of their 50th Anniversary. CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to MOMS Orange County in recognition of their 25th Anniversary. PROCLAMATION presented by COUNCILMEMBER TINAJERO AND BENAVIDES to the Santa Ana Unified School District for being selected as a XQ Super School. CLOSED SESSION REPORT - There was no reportable action. PUBLIC COMMENTS (Agendized Items) - None CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on the following Consent Calendar items 10A through 1OD. MOTION: Martinez VOTE: AYES: NOES: ABSTAIN: ABSENT: MINUTES SECOND: Tinajero Benavides, Martinez, Pulido, Sarmiento, Tinajero, Villegas (6) None (0) None (0) Solorio (1) 10A. MINUTES FROM THE SPECIAL CLOSED SESSION MEETING OF OCTOBER 2, 2017 {STRATEGIC PLAN NO. 5, 1} — Clerk of the Council Office MOTION: Approve Minutes. CITY COUNCIL MINUTES 4 OCTOBER 17, 2017 10A-4 10B. MINUTES FROM THE REGULAR MEETING OF OCTOBER 3, 2017 {STRATEGIC PLAN NO. 5, 1} – Clerk of the Council Office MOTION: Approve Minutes. 10C. MINUTES FROM THE ADJOURNED CLOSED SESSION MEETING OF OCTOBER 6, 2017 {STRATEGIC PLAN NO. 5, 1} – Clerk of the Council Office MOTION: Approve Minutes. 1OD. MINUTES FROM THE SPECIAL CLOSED SESSION MEETING OF OCTOBER 9, 2017 {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. 11A. SECOND READING ORDINANCE: ADOPT AN ORDINANCE OF THE CIT 1 COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 10-551 AN I ADDING NEW SECTIONS 10-552,10-553 AND 10-554 TO THE SANTA AN j MUNICIPAL CODE RELATED TO STORAGE OF PROPERTY, VEHICL ACCESS AND VOLUNTEER SERVICES IN THE CIVIC CENTER ARE STRATEGIC PLAN N-0–.25,11 - Clerk of the Council Office Placed on first reading at the October 3, 2017 City Council meeting and approved by a vote of 7-0. Published in the Orange County Reporter on October 6, 2017. The following spoke on the matter: • Michael Robbins, concerned with rise in number of homeless deaths; suggest housing first as initiative. • Jeanine Robbins, commented that homelessness is countywide issue; and noted the ordinance was cruel and malicious and jeopardizes the lives of the homeless residents of this City. Asked the City Council to show compassion towards the homeless population. • Mohammed Aly, concerned that comments limited to one -minute; opined that delimitative changes are unconstitutional. • Sarah Gregory, attorney with ACLU, expressed concern that disabled population significantly impacted by ordinance; services would be restricted; housing is only solution. CITY COUNCIL MINUTES 5 OCTOBER 17, 2017 10A-5 • Michelle Kotval, attorney with Legal Aid Society, on behalf of her client, The Peoples Homeless Task Force, urged the City Council to vote no on this ordinance because it does not provide a dignified or sustainable solution to the homeless crises. Concerned with the provision in the ordinance that prohibits tents and other essential living items. • Brooke Weistzman, noted the 4'h and 8th Amendment and disability concerns. Concerned that the enforcement on an ordinance like this would rely on police discretion and would result in implicit bias and racial disparities. • Julie Crandall, for the Legal Aid Society of Orange County and member of OC Home, and represents some of the homeless in the Civic Center and the Peoples Homeless Task Force. Opined the ordinance will be denying vulnerable population their basic needs and depriving humanitarian efforts. Asked the City Council to not pass this ordinance. • Lili Graham, Legal Aid Society representative, spoke against ordinance because it criminalizes homelessness. • Sabyle Landrum, for the Legal Aid Society of Orange County. Addressing the City Council on behalf of her clients. Expressed concern that the ordinance is in violation of the A.D.A., the U.S. Constitution and unfairly targets and criminalizes the homeless instead of constructively addressing the health and safety concerns. Urged the City Council to vote no. • David Duran, spoke against ordinance. • Tim Houchen, noted that County has pushed problem over to the City side by fencing their area while construction at the County. • Lou Noble, noted that confiscation of items is criminal; supports rent control and housing first model. • Angel VanStark, represent Aid Services of Orange County, indicated that if ordinance approved will not be able to provide services and increase Hepatitis (health concern). • Eve Guerra, representing ACLU, need for basic items; submitted letter for the record. • Kenneth Batiste, City to be a leader and provide humanitarian needs; rent control. • Justin Samson, OC Poverty Alleviation Coalition representative, said that homeless are often times not able to afford rent and forced to live on the streets. • Aimee Dunkle, supports Needle Exchange Program due to personal account with son. • Diane Goudstein, works for Needle Exchange Program, suggest partnership as safety measure. • William Zheno, volunteer with Needle Exchange Program, commented that program is only service provider in the County. • Blake Bosgieler, former patron of Needle Exchange Program, spoke in support of program and need to continue allowing service providers. CITY COUNCIL MINUTES 6 OCTOBER 17, 2017 10A-6 • Susan Knoll, representing the Orange County Needle Exchange, as an educator and a substance abuse counselor she is concerned that making it a criminal offense to possess clean needles will cause individuals to engage in risky behavior. Asked the City Council for support to continue services. • Jemma Alarcon, representing OCNEP, concerned that the ordinance will be keeping individuals away from OCNEP services. Urged the City Council to vote no. • Alex Smith, spoke in support of clean needles to avoid staph diseases and provide compassion. • Mahan Naeim, representing the Orange County Needle Exchange Program. Commented on OCNEP goal of the safe and proper disposal of used needles and concern that ordinance will only amplify an existing public health issue. Noted the solution to needle liter is to incentivize proper disposal of needles and not criminalizing it. • Carol Newark, volunteer with Needle Exchange Program, opined that gentrification will occur if program ends. • Sofia Laguna, volunteer with Needle Exchange Program, opined that passage of ordinance will criminalize homeless and further prohibit them from obtaining employment and other services. • Dallas Augustine, spoke on behalf of Needle Exchange Program, said that HIV can be prevented with use of clean needle. • Jasmine Sedaghati, volunteer with NEP, suggest that Santa Ana should continue to be a sanctuary to all. • Thao Le, volunteer with NEP, read statements from users in support of program. • Amy Magnus, volunteer with NEP, noted positive influence program has had in City. • Kelsey Chrisley, building manager of the OC Law Library, supports ordinance — noted that employees have a right to work in safe and clean environment. • Donna Layne, resident, urged all to approve ordinance; long term solution is housing, but ordinance is short term solution. • Margaret Sharpe, concerned that amendments to ordinance are not enough; proposed to help address homelessness by identifying available housing. • Jordan Hoiberg, representing OC Catholic Workers, met with staff and some members of the Council to outline concerns with amended ordinance. • Bruce Creel (speaker spoke on his behalf), indicated that officer had not allowed him to re-enter Chamber; opposed to ordinance. • Stephanie Roberts, representing community of Congregation Church, opined that religious member would not support ordinance. • Lisa Mills, commended the City Council for being the most compassionate in the county and spoke in support of the ordinance. CITY COUNCIL MINUTES 7 OCTOBER 17, 2017 10A-7 • Jill Mahony, President of Santa Ana Credit Union, noted that homelessness has affected business and endangered employees safety; consider impacts to all. • Dwight Smith, read from Vincent De Paul statement in support of human services. • Katie Christy, sister of Saint Joseph volunteer, concerned that enforcers will abuse power and violate human rights. • MaryRuth Storer, Director of Public Law Library, commented on deteriorating conditions of services and building because of the concentration of homeless in the civic center area. • Curtis Franklin, spoke in opposition to ordinance. • Jonathan Gibson, opined that ordinance will only displace homeless; urged no vote. • Irma Macias, supports ordinance, represents community and students who need safety measures. • Morgan Denges, work with OC Catholic Charities, presented petition in opposition to ordinance; need to protect all residents equally. • Peter A. Katz, President of ComLink, need to address issues in civic center area — clean area. • Esperanza Linares, spoke of current condition of library; children are at risk; supports ordinance. • Kim Sandoval, voiced her concern that homeless are being blamed for problems. Opposed taking away the Needle Exchange Program. Urged the City Council to not take away their home and personal belongings. • DeDee (Last name not provided.), spoke in support of homeless services as a former homeless. • James Dempsey, retired social worker, spoke in support of services. • Nate Greensides, opposed to criminalization of homelessness. • Sandra DeAnda, opined that homeless neglected with provisions of the ordinance. • Jair Bautista, supports rent control and housing; opposed to ordinance. • Faby Jacome, program coordinator and deportation defense organization with Orange County Immigrant Youth United, voiced opposition to ordinance. • Dailgn Rodriguez, supports access to health and social services; do not marginalize homeless. • Erik Garcia, supports human rights — opposed to ordinance. • Robyn Adams, noted that some homeless provide services for others. • Susan Sonne, homeless advocate that supports the County fund homeless programs; affordable housing and access to affordable health care needed to solve homelessness. • Julie Hartle, volunteer with Elderly Law Center, opined that misdemeanors will bog down legal system. CITY COUNCIL MINUTES 8 OCTOBER 17, 2017 10A-8 • David Carbajal, public health worker, spoke on behalf of Alliance Against Gentrification, opposed to ordinance. • Mike Lopez, representing SEIU Local 721, noted that homeless rights are not eliminated, but establishing safety and health for all; supports ordinance. • Wayne Bakker, employee of the City, spoke of risks posed to employees that work in the area; need to minimize risks. • Michael Montecalvodra, urged a no vote on ordinance. • Patricia Walker, employee of the OC Public Law Library, commented on problems with encampment and deteriorating condition of facilities. • Mextli Lopez, urged the City Council to vote no and to provide access to food and shelter to the homeless. • Katelyu Seitz, opined dehumanizing citizens without a home is not a solution. Urged the City Council to ask what makes the community safe. • Daniel Millan, opined the ordinance only limits access to services needed. Urged the City Council to vote no. • Nicholas D'Andrea, urged City Council to vote no. • Tanya, expressed her support for the ordinance. • Cecilia Iglesias, on behalf of Santa Ana Parent Union, expressed safety concern at the Civic Center and access to resources to residents. Urged the City Council to vote yes. • Richard Walker, request a no vote; opined that homeless will divert services and not solve their problems; solutions needed through housing. Council discussion. City Attorney Carvalho, clarified procedural question raised during public comments regarding deliberation. Councilmembers confirmed that any communication at the dais was not on topic item. Summarized efforts to address health and safety elements and proposed amendments; services only to be regulated including Needle Exchange Program, other areas to be regulated include number of dogs allowed, shade and tents; safety concerns of paramount importance. (amendments to Section 2 on placement use of temporary structure shade and Section 10-554 require permit to provide organized services.) Councilmember Tinajero, commented on weather conditions that may require other further amendments; suggested amendment that when it rain tents be allowed. Mayor Pro Tem Martinez, supports ordinance, spoke of scarce resources to address various and citywide issues; citywide solution needed; asked that in six months report on how tracking, what resources JPA funds general funds, positions and call for service and tracking of Needle Exchange Program and how many prosecuted; need sustainable efforts. Councilmember Benavides, thanked speakers, housing opportunities and many variables to consider; supports ordinance. CITY COUNCIL MINUTES 9 OCTOBER 17, 2017 10A-9 Councilmember Sarmiento, asked that service providers offer services in their respective cities; County of Orange is vested with the right to address the social service homeless population issues because they receive federal funds from the Housing Urban Department. City Attorney Carvalho, noted that amendment will include discretion of officer to cite as misdemeanor or infractions. Councilmember Tinajero, noted that City has invested significant amount of money for affordable housing programs. Interim City Manager Kurtz, indicated that County could designate 1000 beds at former Tustin Marine Base for housing, but instead Board of Supervisors approved land for commercial development. Councilmember Solorio, provided housing statistics; services needed including jobs and housing; Needle Exchange Program should be offered in other cities; safety for all; supports ordinance. Councilmember Villegas, commented that Needle Exchange Program has had success story; continue to advocate for safety. Mayor Pulido, noted that City has done more than any other City as it relates to homeless; supports amended ordinance. Interim City Manager Kurtz, housing first model and emergency funds will be considered at next meeting and working with WISE Place and Illumination Foundation to provide housing. MOTION: Place amended ordinance on second reading and adopt. ORDINANCE NO. NS -2926 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 10-551 AND ADDING NEW SECTIONS 10-552, 10-553 AND 10-554 TO THE SANTA ANA MUNICIPAL CODE RELATED TO STORAGE OF PROPERTY, VEHICLE ACCESS AND VOLUNTEER SERVICES IN THE CIVIC CENTER AREA MOTION: Pulido VOTE: AYES NOES: ABSTAIN: ABSENT: SECOND: Solorio Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) CITY COUNCIL MINUTES 10 OCTOBER 17, 2017 10A-10 CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on the following Consent Calendar items 11B through 25H with the following modifications: Mayor Pro Tem Martinez, pulled Agenda Items 20A, 25C, 25F, and 25H for separate action; and Mayor Pulido, pulled Agenda Item 2513; to allow speaker to address City Council. MOTION: Sarmiento VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Tinajero Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) :ms remove& for separate action or modified are highlighted. Separate 11 B. SECOND READING ORDINANCE: ADOPT AN ORDINANCE FOR THE REGISTRATION OF ABANDONED AND DEFAULTED RESIDENTIAL/COMMERCIAL PROPERTY {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office Placed on first reading at the October 3, 2017 City Council meeting and approved by a vote of 7-0. Published in the Orange County Reporter on October 6, 2017. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS -2627 - 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 CITY COUNCIL MINUTES 11 OCTOBER 17, 2017 10A-11 11C. SECOND READING ORDINANCE: ADOPT ZONING ORDINANCE AMENDMENT NO. 2017-02 FOR THE ARTISAN AT SOUTH COAST A 42 - UNIT SINGLE FAMILY RESIDENTIAL PROJECT AT 2001 WEST MACARTHUR BOULEVARD — SHEA HOMES, APPLICANT {STRATEGIC PLAN NOS. 5, 1} - Clerk of the Council Office Placed on first reading at the October 3, 2017 City Council meeting and approved by a vote of 7-0. Published in the Orange County Reporter on October 6, 2017. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS -2928 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SPECIFIC DEVELOPMENT PLAN NO. 4, PERTAINING TO THE ARMSTRONG RANCH DEVELOPMENT, TO ALLOW TEMPORARY SALES OFFICES, MODIFY THE PARKING STANDARDS AND INCORPORATE DEVELOPMENT. STANDARDS FOR A SMALL LOT SUBDIVISION (SD -4) (ZOA NO. 2017-02) FOR THE PROJECT AT 2001 W. MACARTHUR BOULEVARD BOARDS / COMMISSIONS / COMMITTEES 13A. APPROVE APPOINTMENT OF DEBRA BAETZ TO THE WORKFORCE DEVELOPMENT BOARD REPRESENTING ORANGE COUNTY SOCIAL SERVICES AGENCY {STRATEGIC PLAN NO 5, 1} - Community Development Agency MOTION: Appoint Debra Baetz, Director Family Self Sufficiency and Adult Services, to represent Orange County Social Services Agency on the Workforce Development Board replacing Nathan Nishimoto for a partial term expiring May 31, 2019. 13B. RECEIVE AND FILE AGENDA AND MINUTES OF THE SPECIAL MEETING OF LEGISLATIVE AFFAIRS, ETHICS AND TRANSPARENCY CITY COUNCIL COMMITTEE, OCTOBER 4, 2017 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Receive and file. FINAL TRACT MAP NOTIFICATIONS 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. CITY COUNCIL MINUTES 12 OCTOBER 17, 2017 10A-12 17A. RECEIVE AND FILE CERTIFICATION AND APPROVAL OF FINAL TRACT MAP NO. 17979 BY CITY ENGINEER (1506 WEST FIRST STREET) {STRATEGIC PLAN NO. 3, 2} - Public Works Agency MOTION: Receive and file. MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — NONE 19B. EXCUSED ABSENCES — NONE 19C. RECEIVE AND FILE STRATEGIC PLAN MONTHLY REPORT FOR SEPTEMBER 2017 {STRATEGIC PLAN NO. 5, 11 - City Manager's Office The Strategic Plan Monthly Reports are available on the City's website at: hftp://www.santa-ana.or-q/strategic-planning/ MOTION: Receive and file. 19D. RECEIVE AND FILE QUARTERLY REPORT OF CONTRACTS VALUED AT $25,000 OR LESS ENTERED INTO BY THE CITY MANAGER (JULY 1, 2017 - SEPTEMBER 30, 2107) AS PERMITTED BY CHARTER SECTION 421 {STRATEGIC PLAN NO. 4, 1} - Finance and Management Services MOTION. Receive and file. 19E. RECEIVE AND FILE BYLAWS FOR THE LEGISLATIVE AFFAIRS, ETHICS, TRANSPARENCY, AND COMMUNICATIONS COUNCIL COMMITTEE {STRATEGIC PLAN NO. 5, 1} - City Manager's Office MOTION: Receive and file. BUDGETARY MATTERS APPROPRIATION ADJUSTMENTS 20A. APPROVE APPROPRIATION ADJUSTMENTS AND AWARD CONTRACT; FOR EMERGENCY REPAIRS RELATED TO JANUARY 2017 STORM! i DAMAGE AT THE LINCOLN AVENUE CHANNELS (PROJECT 17-6613)' {STRATEGIC PLAN NO. 6, 1C} (Personnel Services Agency) - Public Works t_. -----Agency--------- --------------------__--- � CITY COUNCIL MINUTES 13 OCTOBER 17, 2017 10A-13 MOTION: 1. Authorize the City Manager and Clerk of the Council to award and execute a construction contract to Arnaz Engineering Contractors, Inc., for emergency construction to repair storm damage at the Lincoln Avenue Channel, to be performed on a time -and -materials basis, in the total amount not to exceed $431,250, 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 $540,000, which includes the contract amount, administration, inspection, testing, and an authorized contingency of $44,025. 3. Approve an appropriation adjustment. (Requires five affirmative votes) a. APPROPRIATION ADJUSTMENT NO. 2018-032 - Approve an appropriation adjustment appropriating $460,000 from prior year fund balance in the Local Drainage Area II revenue account, and appropriating the same amount into the Local Drainage Area II expenditure account. b. APPROPRIATION ADJUSTMENT NO. 2018-031 - Approve an appropriation adjustment appropriating $80,000 from prior year fund balance in the Local Drainage Area V revenue account, and appropriating the same amount into the Local Drainage Area V expenditure account. MOTION: Solorio VOTE: AYES: NOES: ABSTAIN: ABSENT: AGREEMENTS SECOND: Benavides Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) Martinez (1) None (0) None (0) 25A. APPROVAL OF VARIOUS HISTORIC PROPERTY PRESERVATION AGREEMENTS {STRATEGIC PLAN NOS. 5, 2, 3) - Planning and Building Agency CITY COUNCIL MINUTES 14 OCTOBER 17, 2017 1 OA -14 ,25B. Historic Resources Commission approved recommended action on September 28, 2017. MOTION: Authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreements with the below -referenced property owners for the identified structures, subject to non -substantive changes approved by the City Manager and City Attorney. APPROVE A MEMORANDUM OF UNDERSTANDING FOR THE SAFETYi AND FAIRNESS FOR EVERYONE (SAFE) CITIES NETWORK AND ANS AGREEMENT FOR IMMIGRATION LEGAL DEFENSE SERVICES - City" Manager's Office - -- - - - - . - ---- - - - -- - - -- - -- - -- -. The following spoke on the matter: CITY COUNCIL MINUTES 15 OCTOBER 17, 2017 10A-15 Historic Prop. Property Owner(s) Preservation No. Address/House Agmt. No. 1. Erik Robert 2017-01 1237 W. Third Street AGMT. No. Wood (Guillen House) 2017-275 2. Stephen and 2017-06 2340 N. Riverside AGMT. No. Jessica Kulik Drive (Dr. Harry 2017-276 Huffman House) 3. James and 2017-07 949 W. River Lane AGMT. No. Tonya (Teter House) 2017-277 Skurzynski 4. Francisco Lacy 2017-11 817 N. Lacy (McNeil AGMT. No. House) 2017-278 5. Angela Meyer 2017-13 1909 Poinsettia St. AGMT. No. (Molfetto House) 2017-279 6. Curt and Rita 2017-15 821 N. Olive St. AGMT. No. Merlo (Travis House) 2017-280 7. The Skilton 2017-17 2415 N. Heliotrope AGMT. No. Family Trust Dr. (Paterson House) 2017-281 8. Philip and Irene 2017-18 1711 N. Bush St. AGMT. No. Chinn (Andres House) 2017-282 9. Philip and Irene 2017-19 2900 N. Flower St. AGMT. No. Chinn (Smiley House) 2017-283 10. Matthew and 2017-20 541 W. Santa Clara AGMT. No. Lacy White Ave. (Pett House) 2017-284 11. Carl and Patricia 2017-21 2337 N. Santiago St. AGMT. No. Telles (H.L. Johnson 2017-285 House) APPROVE A MEMORANDUM OF UNDERSTANDING FOR THE SAFETYi AND FAIRNESS FOR EVERYONE (SAFE) CITIES NETWORK AND ANS AGREEMENT FOR IMMIGRATION LEGAL DEFENSE SERVICES - City" Manager's Office - -- - - - - . - ---- - - - -- - - -- - -- - -- -. The following spoke on the matter: CITY COUNCIL MINUTES 15 OCTOBER 17, 2017 10A-15 • Robert Herrera, thanked City Council for supporting universal representation and immigrant and undocumented community. Urged the City Council to vote in support of undocumented community, immigrant defenders, and for universal representation. MOTION: 1. Authorize the City Manager and the Clerk of the Council to execute a Memorandum of Understanding between the Vera Institute of Justice and the City of Santa Ana, effective from the date approved by the City and ending October 31, 2018, subject to non -substantive changes approved by the City Manager and the City Attorney. (AGMT. No. 2017- 286) 2. Authorize the City Manager and the Clerk of the Council to execute an agreement with Immigrant Defenders Law Center in an amount not to exceed $65,000, for a one-year period beginning November 1, 2017 and ending October 31, 2018, subject to non -substantive changes approved by the City Manager and City Attorney. (AGMT. No. 2017-287) MOTION: Sarmiento SECOND: Benavides VOTE: AYES: Benavides, Martinez, Sarmiento, Tinajero (4) NOES: Pulido, Solorio, Villegas (3) ABSTAIN: None (0) ABSENT: None (0) �25C. APPROVE AN AGREEMENT FOR INMATE TELEPHONE AND VIDEdI VISITATION SERVICES AT THE SANTA ANA JAIL {STRATEGIC PLAN NO.1 3a}=Police Department MOTION: Authorize the City Manager and the Clerk of the Council to execute a two-year agreement with three one-year options with Legacy Inmate Communications, for the period of November 1, 2017 through October 31, 2019, in the amount of $235,000, subject to non -substantive changes approved by the City Manager and City Attorney. (AGMT. No. 2017-288) MOTION: Benavides VOTE: AYES: SECOND: Solorio Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) CITY COUNCIL MINUTES 16 OCTOBER 17, 2017 10A-16 NOES: Martinez (1) ABSTAIN: None (0) ABSENT: None (0) 25D. APPROVE AN AGREEMENT FOR ON-GOING CITY-WIDE CAMERA SYSTEM PROJECTS AND MAINTENANCE {STRATEGIC PLAN NOS. 1, 1J) (Parks, Recreation and Community Services Agency and Community Development Agency) - Police Department MOTION: Authorize the City Manager and Clerk of the Council to execute a three-year master agreement with Siemens, Inc., for the period of November 9, 2017 through November 8, 2020, in an amount not to exceed $1,054,900. A $166,350 contingency has been added to allow for unanticipated changes, expenses, or additions for a total not to exceed amount of $1,221,250. (AGMT. No. 2017-289). 25E. APPROVE AN AGREEMENT FOR PAVEMENT MANAGEMENT PROGRAM SERVICES (PROJECT 18-6898) {STRATEGIC PLAN NOS. 6, 1A & 1 F) - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Nichols Consulting Engineers (NCE), for the two-year term beginning October, 17, 2017, and expiring October 16, 2019, with an option for a one-year extension exercisable by the City Manager and City Attorney, for a total amount not to exceed $94,105, including a 10 percent contingency, subject to non -substantive changes approved by the City Manager and City Attorney. (AGMT. No. 2017-290) PROVE AN EXTENSION OF THE SOLID WASTE SER\ REEMENT AND RECEIVE AND FILE THE NEW SOLID W RVICES REQUEST FOR PROPOSAL TIMELINE AND DRAFT SCOF IRK f.STPATFrI('. PI AKI mn A 11 - Pi ihlin Wnrkc Anancv — Executive Director of Public Works, Fred Mousavipour, noted that two recommended actions included on the Agenda; staff will return on November 21St on scope of work and content of Request for Proposal (RFP); recommended action #1 was an extension of two years to current provider, but draft contract has additional changes that need to be worked through before presented to the City Council for approval. The following spoke on the matter: • Jeff Snow, representing Republic Services, offered propositions for City consideration that would provide value; encouraged an open and transparent request for proposal; short term extension of current contract to CITY COUNCIL MINUTES 17 OCTOBER 17, 2017 10A-17 be limited to 12 month extension only; opined that 16 month process is sufficient. • George Urch, representing Ware Disposal, thanked the City Council for bringing other waste contracts and asked it to be brought forward along with other waste contracts. Councilmember Sarmiento, noted that recommended action #1 would be forthcoming; requested clarification on RFP; also, indicated that he reached out to staff to make sure that other waste haulers (Ware and Madison Materials) also have same coterminous extension included in staff report since it's his second request. Director Mousavipour, indicated that RFP has been substantially completed; timeline includes critical dates up to implementation of new contract MOTION: Receive and file the new Solid Waste Services Request for Proposals Process Timeline and draft Scope of Work and draft framework. MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Sarmiento Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) None (0) None (0) None (0) 25G. APPROVE AN AGREEMENT FOR ON-CALL LEGAL SERVICES RELATED TO ADMINISTRATIVE AND LITIGATION MATTERS FOR PERSONNEL, POLICE, AND GENERAL LIABILITY {STRATEGIC PLAN NO. 1,3,4,5} - City Attorney's Office MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with the law firm of Grossberg & Hoehn for a three (3) year term ending on October 16, 2020, with an option to extend the term for up to one (1) year, in an amount not to exceed $500,000, including any extension period, subject to non -substantive changes approved by the City Manager and the City Attorney. (AGMT. No. 2017-291) CITY COUNCIL MINUTES 18 OCTOBER 17, 2017 1OA-18 The following spoke on the matter: • Cecilia Iglesias, expressed concern as to the size of the contract and benefits of the City Manager position. Urged the City Council to vote no Council discussion ensued. City Attorney Carvalho, noted that candidate has good faith remove deferred compensation and forgo of Pay for Performance and reduce severance to 12 months from 18 months but added provision that no termination 6 months before and 6 months after a municipal election. Councilmember Villegas, three new councilmembers coming next election and concerned with terms; other candidates are more qualified; suggest an acting until new council is installed. Mayor Pro Tem Martinez, commented that any candidate comes to a divided city council; need leader that brings stability and professional recommendations; supports candidate. Councilmember Tinajero, noted that council is responsible to hire city manager. Councilmember Sarmiento, appreciate the delivery of information as it relates to amendments to contract, noted that City had thorough process; concerned that some privileged information was released; need to respect the democratic process. Councilmember Solorio, has had positive interactions with candidate on public works projects; does not support the contract terms. Councilmember Benavides, noted that many qualified candidates were considered; asked what the salary range and if it falls within 15% differential of next director; opined that candidate has character and personality to lead dynamic City; urged colleagues to work for the benefit of the residents. City Attorney Carvalho, noted that salary is $285,000 and within compensation range of next director. Councilmember Solorio, asked clarification of salary; opined that total package was excessive. Mayor Pulido, asked for 6 month protection before and after election and 12 month severance — golden parachute. MOTION: Direct and authorize the Mayor and the Clerk of the Council to execute the attached agreement appointing Raul Godinez as the City Manager for the City of Santa Ana (AGMT. No. 2017-292). MOTION: Tinajero SECOND: Martinez CITY COUNCIL MINUTES 19 OCTOBER 17, 2017 10A-19 VOTE: AYES: Benavides, Martinez, Sarmiento, Tinajero (4) NOES: Solorio, Pulido, Villegas (3) ABSTAIN: None (0) ABSENT: None (0) *"END OF CONSENT CALENDAR*" BUSINESS CALENDAR ITEMS PUBLIC HEARINGS 75A. PUBLIC HEARING: ZONING ORDINANCE AMENDMENT NO. 2017-03 TO AMEND SPECIFIC DEVELOPMENT NO. 60 TO ALLOW A NEW 75 -FOOT TALL DOUBLE FACE DIGITAL ILLUMINATED PYLON SIGN AT THE SANTA ANA AUTO MALL. LOCATED AT 1505 SOUTH AUTO MALL DRIVE — SCOTT HAMPTON, APPLICANT; APPROVE SALES TAX LOAN AGREEMENT BETWEEN CITY OF SANTA ANA AND SANTA AUTO MALL AUTO DEALERS ASSOCIATION; APPROVE INTER -FUND LOAN BETWEEN THE CITY GENERAL FUND AND THE SANITARY SEWER SERVICE FUND; APPROVE PAYMENT TO EMI INC. FOR THE PURCHASE OF AN LED SIGN AT THE SANTA ANA AUTO MALL {STRATEGIC PLAN NO. 3, 21 - Planning and Building Agency; and Public Works Agency Planning Commission approved recommended action on September 25, 2017. Legal Notice published in the Orange County Reporter on October 6, 2017 and notices mailed on October 5, 2017. MOTION: Continue consideration of matter to the November 7, 2017, at the request of staff. MOTION: Sarmiento VOTE: AYES: NOES: ABSTAIN: CITY COUNCIL MINUTES SECOND: Tinajero Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) None (0) None (0) 20 1 OA -20 OCTOBER 17, 2017 ABSENT: Martinez (1) Mayor Pro Tem Martinez and Councilmember Tinajero left the meeting at 10:24 p.m. and did not return. Mayor Pulido and Councilmember Sarmiento reported a potential conflict of interest and abstained on Agenda Item 75B. They left the dais. Councilmember Tinajero assumed the Chair and deliberation of matter. 75B. PUBLIC HEARING: ORDINANCE AMENDMENT NO. 2017-03 TO CREATE CHAPTER 40 IN THE SANTA ANA MUNICIPAL CODE (COMMERCIAL CANNABIS) — CITY OF SANTA ANA, APPLICANT {STRATEGIC PLAN NOS. 3, 2, 3, 5; 4, 3} - Planning and Building Agency Legal Notice published in the Orange County Reporter on October 6, 2017. Acting Chair Tinajero opened the Hearing. The following spoke on the matter: • Melahat Rafiei, expressed support of ordinance. • Robert Taft, Jr., owner of 420 Central, spoke on cultivation and in support of ordinance. • Irma Macias, in opposition of ordinance; expressed concern over drugs and impact towards children. • Jason Lily, commended the City Council for moving forward and their hard work in this ordinance; urged a yes vote. There were no other speakers and the Hearing closed. Council discussion ensued. Councilmember Villegas, noted that he is against ordinance, request funding be set aside for education; understand that we need to regulate. Councilmember Benavides, noted that he was not in favor of measure BB, pleasantly surprised that effect that illicit businesses have significantly reduced and property regulated; at the local level we have received revenue from the legitimate regulated dispensaries to address enforcement. Prop 64 approved at the State level; asked if additional changes allowed. City Attorney Carvalho, noted that Charter allows for minimal changes. Councilmember Solorio, commented that Public Safety Committee considered item; additional revenues but more important that we regulate; propose 1/3 earmarked for afterschool gang, alcohol and drug prevention programs; on the enforcement side more robust efforts; request size of cultivation area be better CITY COUNCIL MINUTES 21 OCTOBER 17, 2017 1 OA -21 defined and consistent with State provisions. Suggest 1/3 for education, 1/3 for public safety and 1/3 to general fund. Councilmember Tinajero, asked if 15% and go up to 1/3 after 6 months on after school programs be approved by the City Council and not at the department level. MOTION: Place ordinance on first reading and authorize publication of title. ORDINANCE NO. NS -2929 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CREATING CHAPTER 40 OF THE SANTA ANA MUNICIPAL CODE, 'REGULATION OF COMMERCIAL CANNABIS", TO REGULATE COMMERCIAL . CANNABIS ACTIVITIES, EXCEPTING MEDICINAL RETAIL MOTION: Solorio SECOND: Benavides VOTE: AYES: Benavides, Solorio, Tinajero, Villegas (4) NOES: None (0) ABSTAIN: Pulido, Sarmiento (2) ABSENT: Martinez (1) COUNCIL AGENDA ITEMS Pursuant to Santa Ana Charter Section 411, any member of the City Council may place items on the City Council Agenda to be considered by the City Council. 85A. DISCUSS AND IMPLEMENT NEW POLICY THAT WOULD LIMIT THE NUMBER OF COUNCIL COMMITTEES A MEMBER MAY SERVE ON AND SET QUALIFICATIONS; AND APPROVE ANY NECESSARY ACTIONS. - Councilmembers Tinajero, Sarmiento and Benavides Agenda item pulled at the request of Councilmember Tinajero. RECESSSED CITY COUNCIL MEETING AT 10:43 P.M. TO THE SUCCESSOR AGENCY MEETING AND RECONVENED WITH SAME MEMBERS PRESENT AT 10:45 P.M. CITY COUNCIL MINUTES 22 OCTOBER 17, 2017 1OA-22 COMMENTS 90A. CITY MANAGER'S COMMENTS • Invited all to attend upcoming 5K race; • Announced upcoming Youth Water Poster Contest; • Noted that this would be her last Council Meeting as Interim City Manager; thanked all for privileged of working in Santa Ana. PUBLIC COMMENTS (Non-Agendized Items) Michael Klubnikin, spoke in regards to 100 acre parcel at Irvine Park. 90B. CITY COUNCILMEMBER COMMENTS Councilmember Solorio: • Thanked Interim City Manager Kurtz for her service; and • Invited all to attend Wings of the City unveiling on October 27th and Annual 5K Race on October St. Councilmember Villegas: • Smoke Alarm Installation event held on October 7th was great success; thanked OCFA and all volunteers; and • Request that meeting be adjourned in memory of Joe D'Angelo; provided brief background. Councilmember Benavides: • Echoed comments about upcoming City events; thanked staff for efforts in organizing events; and • Thanked Interim City Manager Kurtz for steady hand and strong leadership and staff for transition. Councilmember Tinajero: • Acknowledge efforts of Interim City Manager Kurtz — shared vision, professionalism and leadership; and • Spoke about DACA in Washington D.C. last week and also met with HUD and Veteran Affairs representative that expressed interest in providing additional funding for homeless. Mayor Pulido: • On October 4th met with State Governor and other officials about Amazon's request for proposal to establish a 2nd Headquarter; City of Santa Ana's joint proposal with the cities of Orange, Garden Grove and Anaheim offer great partnership opportunity; noted that if not Amazon another business will want to take advantage of upcoming OC Streetcar and facility at former OC Register building which has easy freeway access; CITY COUNCIL MINUTES 23 OCTOBER 17, 2017 1 OA -23 • Thanked service of Interim City Manager; and • Adjourned in memory of Joe D'Angelo. ADJOURNED- 11:00 P.M - The next meeting of the City Council is scheduled for Tuesday, November 7, 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. In Memory of Joe D'Angelo Maria D. Huizar, Clerk of the Council FUTURE AGENDA ITEMS • Labor Contracts CITY COUNCIL MINUTES 24 OCTOBER 17, 2017 1 OA -24 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: RECEIVE AND FILE QUARTERLY REPORT OF INVESTMENTS AS OF SEPTEMBER 30, 2017 (STRATEGIC PLAN NO. 4, 1D) CIV MANAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER In 1995, the State of California enacted legislation revising the reporting requirements relative to investment of funds by governmental agencies. California Code Section 53646 (b) states that if a quarterly report is rendered to the legislative body, the quarterly report shall be submitted within 30 days following the end of the quarter covered by the report. The legislation specifies that this quarterly report contain the seven major elements listed below: 1. Type of investments, 2. Date of maturity, 3. Par and dollar amounts invested in each security, 4. Weighted average maturity of the investments, 5. Market value as of the date of the report, 6. Source of the market value information, and 7. Any funds, investments or programs, including loans, under the management of contracted parties. These specifications include a statement outlining the ability of the City to meet the budgeted expenditures for the subsequent six months be submitted to the City Council on a quarterly basis. Staff performs an end -of -month expenditure analysis to comply with the expenditure requirement and a statement confirming the ability to meet this requirement in the monthly and quarter -ending Treasurer's Report. The information is in compliance with State law and the City's Investment Policy. The attached Treasurer's Report (Exhibit 1) accurately reflects all pooled investments held on behalf of the City as of September 30, 2017. 19C-1 Quarterly Report of Investments November 7, 2017 Page 2 The following two tables represent: (1) percentage limits set by the City's Investment Policy and State Law and shows respective City investment portfolio investment types, amounts, and percentages; and (2) the restricted cash balance as of September 30, 2017. Type of Investment Amount Invested $ Portfolio % COSA Policy Limits % State Law Limits % Certificate of Deposit (CD) $6,924,000.00 2.44% 30% 30% Federal Farm Credit Bank (FFCB) $66,492,550.00 23.39% None None Federal Home Loan Bank (FHLB) $69,074,316.33 24.30% None None Federal Home Loan Mortgage Corp. (FHLMC) $53,222,035.00 18.72% None None Federal National Mortgage Association (FNMA) $72,923,730.00 25.65% None None Local Agency Investment Fund (LAIF) $15,644,855.54 5.50% None None Sub -Total $284,281,486.87 100.00% Cash $15,813,454.60 Total $300,094,941.47 Restricted Cash In $ Restricted Cash t $12,411,497.89 Total $12,411,497.89 t Restricted cash is held by a Trustee, Bank of New York Mellon, and is segregated from cash used for daily operations. The following City investment portfolio graph represents percentages within the respective investment types as of September 30, 2017. City of Santa Ana Investment Portfolio Asset Allocation September 30, 2017 LAIF CD 5.5% 2.44% ■ Certificate of Deposit (CD) ■ Federal Home Loan Bank (FHLB) ■ Federal Farm Credit Bank (FFCB) ■ Federal Home Loan Mortgage Corp. (FHLMC) ■ Federal National Mortgage Association (FNMA) ■ Local Agency Investment Fund (LAIF) 19C-2 Quarterly Report of Investments November 7, 2017 Page 3 The following three tables represent, as of September 30, 2017: (1) the aggregate Effective Rate of Return on the City's investment portfolio, both month to date (MTD) and year to date (YTD); (2) the aggregate Average Market Yield To Date (AMTD); and (3) the breakdown of AMTD by investment type. Aggregate Effective Rate of Return Month To Date (MTD) 1.26% Year To Date (YTD) 1.24% Aggregate Average Market Yield To Date Average Month To Date (AMTD) 1.396% AMTD Breakdown by Type of Investment Par Value of Investments Yield to Maturity % of Portfolio Average Market Yield to Date Certificate of Deposits $6,679,000.00 1.392% 2.35% 0.033% LAIF $15,644,855.54 1.084% 5.50% 0.060% Federal Agency Securities $261,712,631.33 1.415% 92.06% 1.303% Negotiable Certificates $245,000.00 0.851% 0.09% 0.001% Total $284,281,486.87 100.00% 1.396% STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1 (Maintain a stable, efficient and transparent financial environment), Strategy D (Develop a fiscal health analysis tool that informs a department of its financial position in order to assist in its decision making process). FISCAL IMPACT There is no fiscal impact associated with this action. Francisco Gutierrez Executive Director Finance and Management Services Agency Exhibit: 1. Treasurer's Report M 19C-3 19C-4 12 ,2 1 A11 ¥ ��§ | �§ 1■ I§ ]!k $)\ �\)ƒ\ Him �\ \)«\| � \ !!!!! ! 1§C.S M / } x LU $)\ �\)ƒ\ \)«\| ) !!!!! ! 1§C.S M / } x LU Fvg��'m W m x m i o -m -i o�o�Nmo�mM M 04���g,D�zpR�$ N m V N 9 ( y V N J WJ m ul J J b uy m Cqa yG A myy ^W'I u t'j � N d d� V V m Gi V J W J N b N d W `p W N O 41 N� N O d Li + ➢ �n m A N+ O CC C y z$ -yI mm $ fag m yy�rra-zm ani 222222 �y mD-DWi3 eie&-g.z nmyaym y 2i�mA ZJCOmA «mO^'D2Om 4O m mZ DZ m S o z O F m Z '� m m y 2 m 0� T. -ml m m- m T• Z 9 aG m P z m m z D �i, T` O m O m D m y 2 A >>O 2 N 2 y S' S r F O m ZO ZO 2 m y on n o DO O y !yT D 2 F N m N N m N m N N N m N N W m m N N N W N N N N N N N m N➢ � N➢ N N N N➢ a N N N N N N n N N N N N N� N a ➢P .f N d W m 0 -dW 0 o a d d a 0 o 8os$QoaPoao 0.88888888$ 8888a m0s i W J a 'g J +1 ➢� J T m 0 J Y 0 V T� Sdn N i0 V P m O V u$ d� W Lml + N W D 0 N+ N+ 0 m N E u m b O O> O V➢ V N dN N Nd N j yN p N N N N Nd N N N G N N Nd N N d ➢ � N m d N_N 0 6 d d N� m d m 6 m P 0 m d =RRSomsRRRssB�e9sR99sRRRgs s�asss$$$mmBsss$$$sssBaBBBBBs �00��o8�o"soe�a�oo���'ass�s�o m o m a o o m �eega�?+o=�ae�'S?aSm'ageQ T2_ O V J V O V V J J J O m 0 O J 0 0 0 N O 0 N N O O O OV 19C-6 v m K s e m TO m � C n c g u e n C � W � — C N b A l age a'3g a s � m m +a S� i ss N a m+° �8 ® $ O jY OOOJ - - s$ � mm ➢ + o � m � o 8 a � v a 2 m i n 3 3 U o v a J m Fvg��'m W m x m i o -m -i o�o�Nmo�mM M 04���g,D�zpR�$ N m V N 9 ( y V N J WJ m ul J J b uy m Cqa yG A myy ^W'I u t'j � N d d� V V m Gi V J W J N b N d W `p W N O 41 N� N O d Li + ➢ �n m A N+ O CC C y z$ -yI mm $ fag m yy�rra-zm ani 222222 �y mD-DWi3 eie&-g.z nmyaym y 2i�mA ZJCOmA «mO^'D2Om 4O m mZ DZ m S o z O F m Z '� m m y 2 m 0� T. -ml m m- m T• Z 9 aG m P z m m z D �i, T` O m O m D m y 2 A >>O 2 N 2 y S' S r F O m ZO ZO 2 m y on n o DO O y !yT D 2 F N m N N m N m N N N m N N W m m N N N W N N N N N N N m N➢ � N➢ N N N N➢ a N N N N N N n N N N N N N� N a ➢P .f N d W m 0 -dW 0 o a d d a 0 o 8os$QoaPoao 0.88888888$ 8888a m0s i W J a 'g J +1 ➢� J T m 0 J Y 0 V T� Sdn N i0 V P m O V u$ d� W Lml + N W D 0 N+ N+ 0 m N E u m b O O> O V➢ V N dN N Nd N j yN p N N N N Nd N N N G N N Nd N N d ➢ � N m d N_N 0 6 d d N� m d m 6 m P 0 m d =RRSomsRRRssB�e9sR99sRRRgs s�asss$$$mmBsss$$$sssBaBBBBBs �00��o8�o"soe�a�oo���'ass�s�o m o m a o o m �eega�?+o=�ae�'S?aSm'ageQ T2_ O V J V O V V J J J O m 0 O J 0 0 0 N O 0 N N O O O OV 19C-6 v m R LL �m n '�N W h^ v `vm: $ m `�• $ n m m n vP `m a "' n` mm m$ om B^mi'm gym, ms' m EmB,m mf`e,$ ^"fin, ^n8 Wim. e,m �mB, �a o-ci m. �- r ttVV ryry gq Mry n O� M1^ n m O N a �p m 0 m N N m m� m 8808888888088_00088a888888882Sts888888 -s§osegggg - ni ddP m P n POYSP� n On n Nn Pn4N m n ut a 8 8� 0 0 a$$ 8 0 0� 8 $• a o 0 0 0 m 0$ V O N 0 8 0 m $, Q 8 8 O o $$ms8s88$,8,8$8889998898 S 888888a8$8$8 d�sssaaao�saoa_eoog Ssg�sffs s0000000 g.�aao$g_Eoo�s��mmN^�.$ea mmmmmmmmWmWmmmmmgmmmmmmmmmmmm m mmm asoo5oaaoa�A�=� 0 0 ofE v dE S o o ci U v v o o g 9 9 9 FF ¢¢¢¢ 9$$ 9 3 9 8 BLL B B E€€€ E E v E E E D E E E E a k S£ E E LL LL LL LL li li ILL ILL IY LL LL LL x 2 F x 2� 2 2 S 2 2 S x S 2 2 S Z 2 2 x a A mm m 8 8 IY 4 LL LL 11 IL IL 11 LL LL ILL ILL IY li LL LL IL Y. LL li IL LL LL LL LL LL LL LL IL Y. m J r V C _ m Q ymg�gy��z J xN I2QQI��rizXoow E1m1��' o��y+y�pO Fm isoQ ewi W � chi W � z zdm m umn nFi nt3 to l'S+ fA$$$to PiN W W r�i W Gw t'>i 2S W QQt•.� rvi`�m to a[a LL CI Oi m m n Cl Cl W v7 a��i Cl S n m m m n n m tq m m n W m Cl n n [� i0 m n Cl in CI [''1 19C-7 Bm yrl m6> D A O G H---------------- 9 N n N c m N m T T T D O T 0 0 0 T m m T T p C TC p Tp p Tp p T T T T T T T T oT m m_ m z z z z z z z z z v R u a_ m_ w .. 0 2 x. xo xc i x x® i 2 2 m m m m m n m m o m 6ppp p'wemoam �ommGm m^ rer rr 6 rro o o m Hli y ;g ffi m m m w m m m 8 pp9ppppppppaaa 0 0 m W Cf W W N m W m N N N N N N N N l J J J J m Ef W W W N N N N N m a N d QwQ m gg qq R+R ss N W fn sNg g$N 5A� 4 fn N � QdQ ywyQQN N gNg ppN QNQ fJ jJ gNg °N' $,o �$_b" LS S6 S o ap3A��Pp o o8S5o638pp o � L s fossa 8sp.ps g .msopsgs 8F59N$$�� S$ 8$$ 8 S S 8 8$ S S S S S S$$ 8 8$$ S mp $ $SSSS $$ m$ o 0 0 p p p p o 0 �8888e8S888888oSS88888S88888S8oS8 f^F^uw ae d W W aN y. y.'>u qm_s$oo�ss�so����so=d���ogg��8�,m oosb�ps�ae�ss.sas�o�sg$oo.s�o �assoossopssa�ssssssssssoassasssp +ooN� ��o�osoogs�assmmoo�vsN�N�aao�o�a m N tp b N O N 0 N m W u N m m W W m O T 0$ O O N H N m IN N O+� tS p O O O V p O N J O Y m m N O p p p O O L1 w w O u N V 0 W+ N p p b A 0++ N O O O O D p �n voi sososoPSooaoaaa sa S$oaaoS 19C-8 \`( � / 8888! ! . § � � § k!»7! ! . » 8,4 ; ! !lir. 752E /\t\ ■!„ |! § §|! . o(iJi� W D a N ooao O � u8 ° ti y c c c c c c. 3 N N y y N N N NOON N N y y y 0 0 0 0 3 m m m m p o 0 0 0 0 0 0 0 o a T.I ° m m m g m m5 sm m m m 4 0 m O O y y A A F P 9 N y Ny N i g m Air z m m m mEgo m ° O o a a a n �_ p 9 0 0 0 $ $$ i i i� 3 3 G u g n Z i i (� < < < N y y 19C-10 i 1 S 19C-11 N Q A F si � 6 C O u P p a o O O r o OQ b e 2iV5 O m m m u � e � 4 e a 'm H H E 2 m V U F Z 7 O E 1 W Q V 1 J� U pl 2 � T 7 F � � U < m d LL E 0 U N 3 N b _ r I- m S b m s m 2 a y 19C-11 19C-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES JULY 2017 — SEPTEMBER 2017 (STRATEGIC PLAN NO. 5,3) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 01IJ- 971vo: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of July 2017 — September 2017. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on October 25, 2017, by a vote of 4:0 (De Leon, Ramos and Santana absent), the Community Redevelopment and Housing Commission approved the recommended action. DISCUSSION This report for the quarter ending ,on September 30, 2017 provides statistics for all of the affordable housing projects and activities for the Housing Division. The report is divided into three sections: Loan Activity, Loan Portfolio Management and Monitoring, Affordable Housing Funds and Commitments, and Development Projects. Loan Activity Applications The Housing Division offers several different programs including down payment assistance for first-time homebuyers and rehabilitation loans for mobile homes, single-family, multi -family, and historic homes. Inquiries are received from the public and applications are mailed out, received and approved for these programs on a continual basis. Table 1 shows the number of inquiries, applications sent out, received and approved by type for the quarter and the total fiscal year. 19D-1 Quarterly Report for Housing Division November 7, 2017 Page 2 Table 1: Aoolications Sent Out. Received & Anoroved Program Inquiries Applications Sent Out Applications Received Applications A roved Q1 Total Q1 Total Q1 Total Q1 FY FY FY Total FY Single -Family Rehabilitation 32 32 25 25 5 5 1 1 Mobile Home Rehabilitation 30 30 25 25 3 3 0 0 Multi -Family Rehabilitation 0 0 0 1 0 0 0 0 Historic Home Restoration 1 1 1 1 0 0 0 0 Homeownership 75 75 64 64, 1 1 0 0 Rehabilitation Loan Underwriting and Approval Progress For the rehabilitation loans, staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to ensure compliance with program guidelines and requirements established by the funding source. In addition, staff conducts an inspection of the property, prepares a work write-up to determine rehabilitation work to be performed, and develops a budget for the work. Due to the complex funding requirements, applicants may be in underwriting for several months. The length of time in underwriting is largely determined by the applicant's timely submittal. of the necessary paperwork. Once approved, staff prepares all necessary loan documents, makes arrangements for loan execution, and reserves the required loan funds. During this quarter, one single family rehabilitation loan was approved and one inclusionary housing purchase at City Ventures was approved. During this quarter, staff attended the Artesia Pilar and Flower Park Neighborhood Association meeting to promote the Single Family Rehabilitation Loan Program. Rehabilitation Program Construction Progress During this phase, homeowners receiving rehabilitation loans are guided through an open selection of contractors to complete the work on their homes. Each homeowner is given a list of contractors that have been screened by staff for license and insurance requirements. However, homeowners are allowed to select any contractor that meets these same requirements. Staff assists the homeowners with the evaluation of bids and selection of a contractor. Staff also monitors the construction work, approves payments to contractors, and tracks expenditures to ensure compliance with the loan agreement and program guidelines. At the end of this quarter, there were two (2) homeowner rehabilitation projects out to bid and four (4) under construction. Downuayment Assistance Program Progress For the downpayment assistance program, staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by the U.S. Department of Housing and Urban Development (HUD). Applicants must meet established income requirements, complete an eight-hour pre -purchase counseling program from a HUD - approved agency, be pre -qualified for a first mortgage and have a minimum of three percent of the purchase price from their own savings. Other HUD requirements apply, including a current maximum sales price of $499,000 for a single family home or condo. The updated maximum sales price became effective on March 1, 2017. Additionally, the property needs to be in good condition and pass an inspection. 19D-2 Quarterly Report for Housing Division November 7, 2017 Page 3 During this quarter, staff conducted one (1) down payment assistance workshop at Santa Ana College in which a total of 15 people attended. City staff also conducts weekly presentations to potential first-time buyers at City Ventures. Loan Portfolio Management & Monitoring The Housing Division is responsible for managing the residential loan portfolio. As of the end of this quarter, the principal balance was $121,159,038. This is comprised of 413 loans of which 389 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $196,768 in payments of principal and interest during the quarter. Table 2: Portfolio Revenue Monitoring As part of the requirements for these funds, staff must monitor the owner -occupancy of single family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 66 owner -occupancy recertification letters were mailed and 58 were returned and processed. Staff also audited files for 5 projects and conducted building code compliance inspections for 12 units in 6 projects. Regulations require that only a sample of units be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to ensure they also meet municipal code requirements. The grounds, common areas and all of the inspected units were found to be in compliance at the time of initial inspection. Available Funds for Affordable Housing Development Projects The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency manages multiple sources of local, state and federal funds to promote and facilitate the development of affordable housing. As of September 30, 2017, a total of $2,194,192 is available for affordable housing development. Exhibit 1 provides a summary of the funds available as of the end of this quarter. 19D-3 Funding Sources HOME CDBG Redevelopment NSP CaIHOME Loan Payoffs $16,194 $0 $0 $42,189 $0 Residual Receipts $19,702 $0 $54,882 $29,849 $0 Payments Amortized Loan $5,018 $5,136 $21,798 $2,000 $0 Payments Total For Q1 $40,914 $6,136 $76,680 $74,038 $0 Monitoring As part of the requirements for these funds, staff must monitor the owner -occupancy of single family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 66 owner -occupancy recertification letters were mailed and 58 were returned and processed. Staff also audited files for 5 projects and conducted building code compliance inspections for 12 units in 6 projects. Regulations require that only a sample of units be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to ensure they also meet municipal code requirements. The grounds, common areas and all of the inspected units were found to be in compliance at the time of initial inspection. Available Funds for Affordable Housing Development Projects The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency manages multiple sources of local, state and federal funds to promote and facilitate the development of affordable housing. As of September 30, 2017, a total of $2,194,192 is available for affordable housing development. Exhibit 1 provides a summary of the funds available as of the end of this quarter. 19D-3 Quarterly Report for Housing Division November 7, 2017 Page 4 Housing Opportunity Ordinance All in -lieu fees, penalties and other monies collected pursuant to the Housing Opportunity Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since inception, the Inclusionary Housing Fund has generated $7,851,002.25 to be used for the development of housing affordable to low and moderate income households, with a reasonable amount spent on administrative or related expenses associated with the administration of the Housing Opportunity Ordinance. To date, the Inclusionary Housing Fund has invested $6,075,000 towards the development of 107 affordable rental housing units in the City. In regards to affordable ownership housing units, a total of 23 inclusionary affordable homes have been produced and/or are under construction as a result of our Housing Opportunity Ordinance. Projects under Development NSP 1, 2 and 3 Programs The City will begin the final closeout of the NSP 1, 2, and 3 Programs and will reallocate the final program balance to the Community Development Block Grant (CDBG) Program. For Sale Infill Housing (4010 - 4026 E. McFadden Street) • Developer: Habitat for Humanity of Orange County • Description: Acquisition and new construction project comprised of five (5) affordable single- family homes to be sold to qualified low- to moderate -income buyers. • City Funds: Land provided by the Redevelopment Agency • Status: Project is currently under construction and on target for completion by December 2017. Depot at Santiago (923 N. Santiago Street) • Developer: C & C Development • Description: Acquisition, demolition and new construction project comprised of 69 affordable rental units, 1 manger's unit, a 3,000 SF community room, and 8,500 SF of retail space. • City Funds: HOME ($2,634,566), CDBG ($365,434) • Update: Construction commenced in April 2016 and is about 80% complete. Project is on target for completion in December 2017. The Orchard (2151 E. First Street) • Developer: Community Development Partners with Mercy House as the service provider • Description: Acquisition and rehabilitation of former motel yielding 71 units of affordable permanent supportive housing with wrap-around supportive services for chronically homeless individuals in the City of Santa Ana, and 1 manager's unit. • City Funds: HOME ($1,199,869), 71 HUD Project -Based Vouchers ($7,895,194) • Update: Construction commenced in January 2017 and is approximately 75% complete. Project is on target for completion in November 2017. 19D-4 Quarterly Report for Housing Division November 7, 2017 Page 5 Santa Ana Arts Collective (1666 N. Main Street) • Developer: Meta Housing Corporation • Description: Acquisition, adaptive reuse and new construction project comprised of 57 affordable rental units designated for professional artists of all disciplines, and 1 manager's unit. • City Funds: Inclusionary Housing ($4,775,000), HOME ($2,219,760), CDBG ($500,000) • Update: Construction commenced on July 28, 2017 and the project is approximately 5% complete. Staff is working with the developer and property management company on the tenant selection policies and procedures. First Street Apartments (1440 E. First Street) • Developer: AMCAL Multi -Housing, LLC. • Description: Demolition and new construction of an affordable multifamily apartment complex consisting of 68 units of rental housing serving very -low and extremely -low income families, and 1 manager's unit. • City Funds: Housing Successor Agency ($8,522,740) • Update: On September 20, 2017, the California Tax Credit Allocation Committee awarded the project $1,469,342 in Low -Income Housing Tax Credits. Santa Ana Veterans Village (3312 W. First Street) • Developer: Jamboree Housing Corporation with Step Up on Second as the service provider • Description: New construction of an affordable multifamily apartment complex consisting of 75 units of permanent supportive housing with wrap-around supportive services for HUD-VASH eligible homeless veterans in the City of Santa Ana and 1 manager's unit. • City Funds: 75 HUD-VASH Project -Based Vouchers ($11,489,000), HOME ($353,962) • Update: Developer's application for 9% Low -Income Housing Tax Credits was not successful; staff is working with the developer to secure other sources of financing; developer will reapply the next round. Aqua Housing (317 E. 17th Street) • Developer: Community Development Partners with Mercy House as the service provider • Description: Acquisition, demolition and new construction of a former motel yielding 56 units of affordable permanent supportive housing with wrap-around supportive services for chronically homeless individuals in the City of Santa Ana and 1 manager's unit. • City Funds: 56 Project -Based Vouchers ($9,237,900) • Update: Developer's application for 9% Low -Income Housing Tax Credits was not successful; staff is working with the developer to secure other sources of financing. Tiny Tim Plaza (2223 West 5th Street) • Developer: Community Development Partners. • Description: New construction of an affordable multifamily apartment complex consisting of 51 units of rental housing serving very -low and extremely -low income families, and 1 manager's unit. • City Funds: Inclusionary Housing ($1,300,000), Housing Successor Agency ($4,700,000) 19D-5 Quarterly Report for Housing Division November 7, 2017 Page 6 • Update: Developer is currently pursuing other sources of financing to fill an estimated financial gap of approximately $11.7 million; staff is working with the developer to secure other sources of financing. STRATEGIC PLAN ALIGNMENT The activities covered by this report allow the City to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. a✓vD �` , ' i Robert M. Zur Sch i de Interim Executive Di ctor Community Development Agency Exhibit: 1. Available Funds for Affordable Housing Development Projects 19D-6 Exhibit 1 Available Funds for Affordable Housing Development Projects As of September 30, 2017 Housing Successor Agency (Housing Authority) $13,920,230 Cash on Hand ($8,522,740) First Street Apartments Pre -Commitment Loan ' ($4,700,000) Tiny Tim Plaza Conditional Pre -Commitment Loan ' ($278,725) Habitat for Humanity Disposition and Development Agreement ($250,000) Administrative Costs Allowance ` $168,765 Available Funds Inclusionary Housing Funds $2,975,863 Cash on Hand ($472,651) Santa Ana Arts Collective Project Costs a ($1,300,000) Tiny Tim Plaza Conditional Pre -Commitment Loan ($134,713) Administrative Costs Allowance (CDA/PBA) $1,068,499 Available Funds HOME Program $1,648,273 Funds to Drawdown ($353,963) Santa Ana Veterans Village Pre -Commitment Loan $1,294,310 Available Funds to Drawdown CDBG Program (Acquisition/Rehabilitation Projects Only) $1,474,191 Funds to Drawdown ($500,000) Santa Ana Arts Collective Pre -Commitment Loan $974,191 Available Funds to Drawdown $3,505,765 Total Available Funds 1 Approved by City Councll/Housing Authority on June 20, 2017. 2 The Housing Successor Agency relies an available cash to fund the monitoring and compliance functions related to the former Redevelopment Agenuys housing loans. a Only includes the project costs; $4.810 in loans approved by City Council paid on July 26, 2017. < Approved by City Council on February 7. 2017. 1901-7 29A-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: RECEIVE AND FILE UPDATE ON SANCTUARY POLICY ADVISORY GROUP (STRATEGIC PLAN NO. 3,5A) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1'd Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file update on Sanctuary Policy Advisory Group. DISCUSSION On December 6, 2016, the City Council adopted a resolution to declare the City of Santa Ana a sanctuary for all its residents, regardless of their immigration status. The intent of the Resolution was to demonstrate Santa Ana's commitment to its residents by unequivocally stating that it will provide a sanctuary to all residents who are fearful by assuring them that the City will not expend any funds, nor use its resources, to administer federal immigration law which is the exclusive authority of the federal government. The Resolution required the implementation of various policies which included: protecting sensitive information; reaffirming the City's commitment to preventing biased -based policing and disallowing the use of City resources for immigration enforcement; exercising maximum discretion in policing; providing additional training for all affected City employees, officials, and agents; and the feasibility of establishing a task force for oversight. This action was then followed by the approval of Ordinance No. NS -2908 (Ordinance) by the City Council on December 20, 2016 and January 17, 2017. The purpose of the Ordinance is to establish the City's procedures concerning immigration status and enforcement of federal civil immigration laws. The Ordinance prohibits City staff from participating in certain acts including: • Requesting or mainlining information about sensitive information about any person except as provided in the Ordinance • Disclosing of sensitive information about any person except as provided in the Ordinance • Use of City resources to assist in the enforcement of federal immigration law except as provided in the Ordinance 19E-1 Receive and file the update on the sanctuary policy advisory group November 7, 2017 Page 2 SANCTUARY POLICY ADVISORY GROUP The Ordinance calls for the establishment of a commission, task force, or similar body composed of community members to advise the City Council on these and all policies related to the Ordinance. In an effort to develop an advisory body and work plan to oversee the implementation of the Ordinance, City Manager's Office staff sought the assistance from members of the OC Immigrant Rights Policy Working Group, a collaborative working group comprised of non-profit organizations and educational institutions that were instrumental in the development and adoption of Santa Ana's Sanctuary Resolution and Ordinance. In meeting with members of the OC Immigrant Rights Policy Working Group, staff discussed the composition of the advisory group as well as the need to develop an advisory review processes and work plan for implementation. The outcome of the meeting and follow-up discussion contributed to the development of the Sanctuary Policy Advisory Group that will oversee the implementation the Ordinance. The purpose of the Sanctuary Policy Advisory Group is to provide recommendations to the City Council on policy related items. In addition, the advisory group will also provide recommendations to the City Manager regarding administrative or departmental procedures in furtherance of the Ordinance. Staff anticipates the Sanctuary Policy Advisory Group will have participation from a number of non-profit organizations and support groups. Invitations will be sent to the following groups: • Santa Ana Building Healthy Communities • Resilience OC • Orange County Immigrant Youth United • Western State College of Law • SACRED • ACLU of Orange County • UCI Law School • Mexican Consulate's Office The City Manager's Office will coordinate and facilitate Sanctuary Policy Advisory Group meetings and from time -to -time include members from City Departments and divisions such as the Police Department, Neighborhood Initiatives Program, Community Development Agency, and others in the review of current policies and procedures. Policy level recommendations developed in conjunction with the advisory group will be presented to the Legislative Affairs, Ethics, Transparency and Communication Council Committee prior to being recommended for City Council for consideration. The development of a review process and work plan will be the first priority of the Sanctuary Policy Advisory Group. To this end, Staff is collaborating with members from Santa Ana; Building 19E-2 Receive and file the update on the sanctuary policy advisory group November 7, 2017 Page 3 Healthy Communities and UCI Law School in gathering sample review processes and work plans from Sanctuary cities in California and across the country. Staff anticipates conducting a Sanctuary Policy Advisory Group kickoff meeting in December 2017. Monthly standing meetings will follow to initiate the policy review process and implementation of the Ordinance. The term of the Sanctuary Policy Advisory Group is dependent on the work plan, implementation efforts, and desired outcomes. Staff recommends the advisory group remain active for a term no less than two years and City to reassess the continuation of such advisory group at such time. Progress updates will be provided to the City Council on a quarterly basis. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective 6 (focus projects and programs on improving the health and wellness of all residents.), Strategy F (incorporate health, wellness, and equity into all applicable policies and plans. FISCAL IMPACT There is no fiscal impact associated with this action at this time. Robert C. Cortez Deputy City Mana City Manager's Office 19E-3 19E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT ACCEPTING A DONATION FROM HOAG MEMORIAL HOSPITAL FOR THE POLICE DEPARTMENT BLOODHOUND PROGRAM {STRATEGIC PLAN GOAL NO. 1, 1C} ail i �IYY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1r� Reading ❑ Ordinance on 2n1 Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an appropriation adjustment recognizing a donation from Hoag Memorial Hospital in the amount of $15,000 in the Police Special Revenue - Programs revenue account and appropriate same to expenditure account. DISCUSSION The Santa Ana Police Department receives approximately 1,500 reports of missing persons each year. Approximately 150 of these are deemed critical, involving children and the elderly. Quickly locating missing persons will minimize risk exposure. Bloodhounds are a globally recognized, valuable resource for locating people. The current procedure for utilizing a Bloodhound involves requesting mutual aid from another agency, which generally creates a delay of at least two hours. Hoag Memorial Hospital Presbyterian's Community Benefit Program would like to donate $15,000 to cover the cost of one Bloodhound, the first year of training, and miscellaneous equipment necessary to implement a Santa Ana Police Department Bloodhound program. The Santa Ana Police Department appreciates the support from Hoag Memorial Hospital Presbyterian's Community Benefit Program and recommends approval of the donation. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 1 Community Safety, Objective #1 (Modernize the Community Policing philosophy to improve customer service, crime prevention 20A-1 Appropriation Adjustment — Hoag Memorial Hospital Donation November 7, 2017 Page 2 and traffic / pedestrian / bicycle safety), Strategy C (Deliver crime prevention/community policing programs based on the community policing plan). FISCAL IMPACT The appropriation adjustment will recognize $15,000 in the Police Special Revenue - Programs revenue account (no. 02414002 57081) and appropriate same to expenditure account (no. 02414410 62300) for the Police Department Bloodhound program, for the following fiscal years: in Acting Chief of Police Santa Ana Police Department FY 2017-18 $13,000 FY 2018-19 $2,000 Total $15,000 APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director ,Finance & Mgt. Services Agency 20A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE SUBSTANTIAL AMENDMENT TO 2017-2018 ANNUAL ACTION PLAN FOR ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (STRATEGIC PLAN NO. 5) • RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 n Reading ❑ Ordinance on od Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve a Substantial Amendment to the 2017-2018 Annual Action Plan for the allocation of Community Development Block Grant funds, and authorize its submission to the U.S. Department of Housing and Urban Development. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting on October 25, 2017, by a vote of 6:0 (De Leon absent), the Community Redevelopment and Housing Commission conducted a public hearing and recommended that the City Council approve a Substantial Amendment to the 2017-2018 Annual Action Plan for the allocation of Community Development Block Grant funds, and authorize its submission to the U.S. Department of Housing and Urban Development. DISCUSSION In June 2017, the City submitted an Annual Action Plan for fiscal year 2017-2018 to the U.S. Department of Housing and Urban Development (HUD). The Annual Action Plan is the document whereby the City formally applies to HUD for the annual Community Development Block Grant (CDBG), HOME Investment Partnerships Grant (HOME), and Emergency Solutions Grant (ESG) allocations, and describes how those grant funds will be utilized. Since the approval of the Annual Action Plan, new priority park projects have been identified for the use of $2,000,000 of CDBG program income generated by the sale of real property located at 1232 S. Bristol Street. On September 19, 2017 the City Council approved an amendment to the Fiscal Year 2017-18 Seven Year Capital Improvement Program (CIP) to include the following priority park projects in the amount of $2,000,000: • Centennial Park security lighting in the amount of $450,000 • Centennial Park walkway improvements in the amount of $430,000 • Thornton Park parking lot renovation in the amount of $220,000 21A-1 Substantial Amendment to 2017-2018 Annual Action Plan November 7, 2017 Page 2 • Birch Park fence installation in the amount of $120,000 • Santa Ana Senior Center HVAC system upgrade in the amount of $70,000 • Saddleback View Park security lighting in the amount of $200,000 • Madison, Windsor, Jerome, Chepa's, Santa Anita, and Memorial Parks security cameras in the amount of $510,000 A Substantial Amendment to the 2017-2018 Annual Action Plan (Exhibit 1) is necessary to recognize the CDBG unallocated program income in the amount of $2,000,000 and incorporate the priority projects into the Annual Action Plan. The draft amendment was available from October 7, 2017 to November 7, 2017 for HUD's required 30 -day public comment period. A public notice was published on October 7, 2017 in the Orange County Register in English, La Opinion in Spanish and the Ngoi Viet in Vietnamese to inform the public of the commencement of the 30 -day public comment period and public hearing. Comments received will be included in the final submission of the Substantial Amendment to HUD. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). FISCAL IMPACT There is no fiscal impact associated with this action R bert M. Zur S m ede Interim Executive ctor Community Development Agency Exhibit: 1. Draft Substantial Amendment to the 2017-18 Annual Action Plan 21A-2 CITY OF, SANTA ANA',,,' JULY i,_ 2oi7,,.. 4UNE;,309 2018 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT EXHIBIT 1 21A-3 2015/16-2019/20 CITY OF SANTA ANA CONSOLIDATEDPLANI SUBSTANTIAL AMENDMENT TO THE 2017/18 ACTION PLAN Introduction .......................... Amendments ....................... Citizen Participation TABLE OF CONTENTS,, \ i ........................................:....:.... -------------------------------------------------- PAGE 1 Exhibits Exhibit 1 -Public Hea{ring Notice/Summary of Comments and Responses.................................6 Exhibit 2 -Updated 2.017-2018 Annual Action Plan ..................................................................... 8 r ` 10/2017 21A-4 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT TO THE 12015/16-2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2017/18 ACTION PLAN SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2017-2018 ACTION PLAN INTRODUCTION The City of Santa Ana's federal Annual Action Plan details the funding strategy for the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships programs each year. These Annual Action Plans implement our jurisdiction's Five -Year Consolidated Plan and are developed through significant public input, analyses, and planning. This document is a Substantial Amendment to the City of Santa Ana's Fiscal Year 2017-2018 Annual Action Plan, which was submitted to the U.S. Department of Housing and Urban Development (HUD) on May 2017. Title 24 Section 91.505 of the Code of Federal Regulations stipulates that participating jurisdictions shall amend their approved plans whenever they make one of the following decisions: 1. To make a change in its allocation priorities or a change in the method of distribution of funds; 2. To carry out an activity, using funds from any program covered by the Consolidated Plan (including program income) not previously described in the action plan; or 3. To change the purpose, scope, location, or beneficiaries of an activity. The Regulation further requires that jurisdictions identify in their citizen participation plans the criteria they will use for determining what constitutes a substantial amendment. Consistent with these requirements, the Citizen Participation Plan adopted by the City of Santa Ana as a component of its 2015/16 — 2019/20 Consolidated Five Year Plan identifies three criteria that will require a substantial amendment: 1. Changes in the use of CDBG funds from one eligible activity to another; 2. An activity is undertaken that was not previously included in the Consolidated Plan or subsequent action plans. 3. More than 30 percent of the most recent annual federal grant allocation is reallocated to other eligible program activities within the fiscal year. The proposed substantial amendment plans to undertake activities not previously included in the Consolidated Plan or Annual Action Plan. Therefore, this qualifies as a substantial amendment. 10/2017 21A-5 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUAL ACTION PLAN 2015/16-2019/20 CITY OF SANTA ANA CONSOLIDATED PLANI SUBSTANTIAL AMENDMENT TO THE 2017/18 ACTION PLAN SUBSTANTIAL AMENDMENT The City is amending the 2017-2018 Action Plan to program unallocated Community Development Block Grant (CDBG) program income in the amount of $2,000,000, from the disposition of CDBG real property, for new projects. New projects include: • CDBG17-PARK IMPROVEMENT CENTENNIAL Description: Removal of wooden pole, high -p with concrete pole, energy efficient LED lighti Estimated Cost: $450,000 ' • CDBG17-PARK IMPROVEMENT CENTENNIAL Description: Reconstruction of i Estimated Cost: $430,000 • CDBG17-PARK IMPROVEMENT I Description: Reconstruction of" Estimated Cost: S220.000x \`, ;ure sodium lighting and replace at,6ntennial Park. a`kwalkways at Centennial Park. rHORNTON\PARKING LOT ie parking lot at;Thornton Park. • CDBG17-PARK-IMPROVEMENT, BIRCH FENCE, Description: Installation of a new fence around Birch Park. Estimated Cost: $120,000, \ ) • CDBG-17-PUBLIC, FACILITY IMPROVEMENT SENIOR CENTER Description:,HVAC upgrades a,the Santa,Ana Senior Center. Estimated*Cost:.$70,000 , • "'CDBG17-PARK IMPROVEMENT SADDLEBACK VIEW LIGHTING Description: Purchase%and installation of security lighting at Saddleback View Park. Estimated,Cost: $200,000 • CDBG17-PARK IMPROVEMENT SECURITY CAMERAS Description: Purchase and installation of security cameras for neighborhood parks: Madison, Windsor, Jerome, Chepa's, Santa Anita, and Memorial. Estimated Cost: $510,000 10/2017 3 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUAL ACTION PLAN 21A-6 SUBSTANTIAL AMENDMENT TO THE 12015/16-2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2017/18 ACTION PLAN Updates to the Annual Action Plan Include: AP -15 Expected Resources On Page 10 in Exhibit 2, Updated 2017-2018 Action Plan, under CDBG Program Income: increase of $2,000,000 for a total of $2,192,000 in Program Income and a total of $7,771,317 Expected Amount Available for Year 1. AP -20 Annual Goals and Objectives On Page 14 in Exhibit 2, Updated 2017-2018 Action Plan, under 5) Public Facilities/Infrastructure: increase in CDBG funding by $2,000,000 for a total of $4,114,385, and increase Goal Outcome Indicator by 12 projects for a total of 14 projects. AP -35 Projects On Page 16 in Exhibit 2, Updated 2017-2018 Action Plan, in Table 8 -Project Information, add the following projects: # Project Name 0 19 CDBG17-PARK IMP CENTENNIAL LIGHTING 0 20 CDBG17-PARK IMP CENTENNIAL WALKWAY 0 21 CDBG17-PARK IMP THORNTON PARKING LOT 0 22 CDBG17-PARK IMP BIRCH FENCE 0 23 CDBG17-PUBLIC FACILITY IMP SENIOR CENTER 0 24 CDBG17-PARK IMP SADDLEBACK VIEW LIGHTING 0 25 CDBG17-PARK IMP SECURITY CAMERAS • AP -38 Projects Summary On Pages 28-32 in Exhibit 2, Updated 2017-2018 Action Plan, in Table 9 -Project Summary: include project summaries for projects 19-25 listed above. The total estimated cost of the substantial amendment is $2,000,000. 10/2017 21A-7 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUAL ACTION PLAN 2015/16-2019/20 CITY OF SANTA ANA CONSOLIDATEDPLANI SUBSTANTIAL AMENDMENT TO THE 2017/18 ACTION PLAN CITIZEN PARTICIPATION In accordance with 24 CFR 91.105(c)(3) for local governments, the substantial amendment Public Notice for the use of CDBG funds was released for citizen review and comments on October 7, 2017. During the 30 -day public comment period from October 7, 2017 through November 7, 2017 the Draft Substantial Amendment was made available during regular business hours between 8:00 a.m. and 5:00 p.m., Monday through Friday in the offices of the Community Development Agency, 20 Civic Center Plaza, 6th Floor; Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809; the Santa Ana Public,Library, 26 Civic Center Plaza, Santa Ana, California; and on the city's website. The Community -Redevelopment and Housing Commission of the City of Santa Ana will hold a public hearinglon October 25, 2017, at 4:30 p.m. at the City Council Chambers, 22 Civic Center Plaza Santa�Ana, CA 92701. Following the 30 -day public comment period and public hearing„th&City Council of Santa Ana will hear and vote on the Substantial Amendment to the 2017`2018 Action Plan•owNovember 7, 2017. A copy of the public hearing notice and a summary of citizen commentsxe'ceived at the public hearing with responses to the citizen comments are presented in Exhibit,1 ` 10/2017 5 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUAL ACTION PLAN 21A-8 SUBSTANTIAL AMENDMENT TO THE 12015/16- 2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2017/18 ACTION PLAN EXHIBIT 1 SUMMARY OF PUBLIC COMMENTS 8t PROOF OF PUBLICATION 30 -DAY COMMENT PERIOD AND PUBLIC HEARING 10/2017 6 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUALACTION PLAN 21A-9 2015/16-2019/20 CITY OF SANTA ANA CONSOLIDATEDPLANI SUBSTANTIAL AMENDMENT TO THE 2017/18 ACTION PLAN SUMMARY OF PUBLIC COMMENTS SUMMARY OF PUBLIC COMMENTS RECEIVED DURING 30 -DAY COMMENT PERIOD AND STAFF RESPONSE: TBD 10/25/2017 COMMUNITY REDEVELOPMENT & HOUSING COMMISSION PUBLIC HEARING: TBD f PROOF OF PUBLICATION 30 -DAY COMMENT PERIOD AND PUBLIC'HEARING NOTICE OF PUBLIC HEARING TO BE HELD BY THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT & HOUSING COMMISSION ON THE PROPOSED SECOND SUBSTANTIAL AMENDMENT.,, TO THE'20.17-2018 ACTION PLAN AND COMMENCEMENT OF,THE_30-DAY PUBLIC COMMENT PERIOD NOTICE IS HEREBY GIVEN that the Community Redevelopment and Housing Commission of the City of Santa Ana will -conduct a public hearing on October 25, 2017 at 4:30 p.m. at the City Council Chambers, 22,Civic Center Plaza,,Santa Ana, CA 92701 to receive comments on the Second Substantial:Amendment.to the City's, 2017-2018 Annual Action Plan. On November 7, 2017 at 5:45 p.m. at the City Council'IChambers, the City Council will take action to authorize submittal of the Substantial Amendment to the U.S. Department of Housing and Urban Development (HUD). The proposed amendmentwill'program unallocated Community Development Block Grant (CDBG) program income. funds in the amount of $2,000,000 that is available to the City from the disposition of program, real property. The draft, Substantial Amendment will be available for public review during normal business hours from October 7, 2017 to November 7, 2017 in the following locations: Community Development Agency, 20 Civic Center Plaza, 6th Floor; Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809;'and the Main Public Library, 26 Civic Center Plaza, Santa Ana, California. The draft will also be available on the City's website at: http://www.santa- ana.oro/cda. Written comments to the draft Second Substantial Amendment may be filed with the Community Development Agency any time before 5:30 p.m. on November 7, 2017 at the locations mentioned above or by email at consolidatedDlan(o)santa-ana.org. Persons interested in providing verbal comments to the draft Second Substantial Amendment are notified to appear at the Community Redevelopment and Housing Commission public hearing on October 25, 2017 at 4:30 p.m. in the City Council Chambers located at 22 Civic Center Plaza, Santa Ana, California 92701. Publish: October 7, 2017 L0/2017 21A-10 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUAL AcnON PLAN SUBSTANTIAL AMENDMENT TO THE 12015/16-2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2017/18 ACTION PLAN EXHIBIT 2 UPDATED 2016-2017 ANNUAL ACTION PLAN 10/2017 8 SUBSTANTIAL AMENDMENT TO THE 2017-2018 ANNUALACTION PLAN 21A-11 A 1 ' CITY OF, SANTA ANN--. JULY 1, _201' '=4UNE'309 2018 Al\ NUA L ACTION 21A-12 City of Santa Ana 2017-2018 Table of Contents AP -05 Executive Summary PR -05 Lead & Responsible Agencies AP -10 Consultation AP -12 Participation AP -15 Expected Resources AP -20 Annual Goals and Obj AP -35 Projects Introduction AP -38 Projects Summary AP -50 Geo ra .g--phic Distribution - - VII AP -55 �Aff5rdable Ho`usirig\ AP -60 Public Housing 4 AP -65 Homeless and'Other Special Needs Activities AP -75 Barriers to Affordable Housing I AP -85 Other Actions AP -90 Program Specific Requirements 21A-13 _. Page 1 Page 5 Page 6 Page 9 Page 10 Page 13 Page 16 Page 17 Page 33 Page 35 Page 37 Page 38 Page 41 Page 43 Page 46 Executive Summary AP -05 Executive Summary - 24 CFR 91.200(c), 91r220(b) \ , 1. Introduction The Annual Plan outlines housing, community and economic development needs, priorities, strategies, and projects that will be undertaken by the City of Santa -Ana with the funds that the City receives from the U.S. Department of Housing and Urban Development (HUD): As an entitlement jurisdiction, the City receives an annual share of federal Community Development Block Grant (CDBG,) Emergency Solutions (ESG) and HOME Program funds. In order to receive these entitlements, the City must submit a Consolidated Plan -every -five years to HUD and an Annual Action Plan every year. The funds are intended to provide low -to moderate -income households,with affordable housing, a healthy and safe living environment, and expanded, economic opportunities: Eligible activities include community facilities and improvements; housing rehabilitation and preservation, development activities, public services, economic development, planning, and program administration. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. The City of Santa Ana's mission statement asserts, "To deliver efficient public services in partnership with our community which ensures public safety, a prosperous economic environment, opportunities for our youth, and a high quality of life for residents." OMB Control No: 2505-0117 (exp. 07/31/2015( Annual Action Plan 2017 21A-14 The Strategic Plan proposes strategies and programs that focus on Santa Ana's mission statement, address community priority needs, and also HUD's statutory goals. Related to this mission statement are a series of City goals including: • Community Safety • Youth, Education, Recreation • Economic Development • City Financial Stability • Community Health, Livability, Engagement and Sustainability • Community Facilities and Infrastructure f • Team Santa Ana The City has various needs. The principal needs are: 1) affordable housing through production, rehabilitation/repair, and financial assistance; 2) public -improvements to improve neighborhoods; 3) housing for persons with special needs; 4) assistance for the homeless, including' housing, services and homelessness prevention; 5) community and public services especially for youth, the elderly, the homeless, and persons with disabilities; 6),economic development,and anti -poverty programs focused primarily upon job training and career preparation; 7) public facility and infrastructure improvements centered upon accessibility improvements; and 8) code enforcement. The strategies described hefein establish Santa Ana's priorities -for assisting low -to moderate -income families and neighborhoods w'ith'funds made available'throbgh the Consolidated Plan. The affordable housing and development'needs of a' community` significantly outweigh the resources available to e address those needs. Therefore, it is necessary to prioritize the use of available funds to the highest and best use to meet the.most pressing'needs ior'affordafile housing, homeless individuals, persons with s ` . special needs; and'overall community development: The priorities were selected'based on a`review and analysis of the information summarized in the Consolidated Plan/Annual Plan, following the community participation process, consultations, the needs assessment, and housing market analysis. Strategies are designed to meet the highest priority needs that are based on past performance and best practices of communities with similar programs. Only projects that clearly demonstrate the capacity to serve one of the priorities below will receive funding through the Consolidated Plan/Annual Plan. The majority of CDBG activities are selected based on eligibility and need. All organizations requesting CDBG funds for public services, through a formal application process, must demonstrate that the activity benefits low- and moderate- income (LMI) persons. The organizations requesting ESG funds also applied through a formal application process. They were each judged on their ability to carry out the requirements of the program which provides assistance to homeless individuals and families. OMB Control No: 2506-0117 )exp. 07/31/2015) Annual Action Plan 2017 21A-15 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. The City has used the resources provided by HUD to the best of its ability and has been successful in meeting HUD's objectives over the preceding years. Components of the City's system of care carried out during the report period included outreach, supportive services, homelessness prevention, emergency. 6elter,�transitional housing, and access to permanent housing. The needs of the homeless with special needs (e:g , victims of domestic violence, persons living with HIV/AIDS, and the chronic homeless) were also addressed by Santa Ana's CoC system. These program efforts helped address priority needs identified in thn City's Annual Plan. v `* Various programs, including the Workforce Innovation and Opportunity Act resources;'addressed employment training and job placement needs. The State designated Enterprise Zone and the City's business attraction and retention program's'also'provided economic opportunities to residents. In orderto meet the changing needs of the community; the City supported public services and public facility improvement projects Public services for lower,income youth and.seniors help stabilize households by providing services such'as recreation and nutrition programs. The City recognizes that the.City's annual entitlement and formula allocations are not sufficient to meet all of its needs and therefore seeks to maximize'coordination and cooperation among agencies and organizations to make the best use of these limited funds: Also, the City recognizes that leveraging resources is critical to achieving the City's goals. The City continues to cultivate funding partners who can match theCity's investment of CDBG; HOME, and ESG Program funds. The need remains great, and additional funds are sought to ensure that more affordable housing and important programs and activities are available,for those injneed. - 4. Summary of Citizen_ Participation Process and consultation process Summary from citizen participation section of plan. The City employs diverse methods to encourage on-going participation from residents, community service providers, and existing and potential community development partners. The participation process for the Annual Plan included public notices; a 30 -day public comment period; public hearings; and consultation with non -profits, City staff, and housing providers. S. Summary of public comments OMB Control No: 2506-0117 )exp. 07/31/2015) Annual Action Plan 2017 21A-16 This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. The City was prepared to receive all comments that were offered and integrated them in the Annual Action Plan. [Public Comments TBD -will be included in the final document] 6. Summary of comments or views not accepted and the reasons for not accepting them All public comments were accepted. 7. Summary The City was prepared to receive all comments that were offered and integrated them in the Annual Action Plan. \ v !1 , , i . Annual Action Plan 2017 OMB Control No: 7506-0117 (exp. 07/31/2015) 21A-17 4 G O O N ci N N 'u C d Q d Ln C M 0 H d cis m J Ln O CC CL Y C CO L bn u m m Ol O C O Y m Y N c E m `o w 0) n C O O_ N C N % CL r W\ I O M N d \,./ C u N d Y t m Y � txo O •L C O N U •c N E tot L m 'C OSA m C O' m a CL 0 O L w I N O w 'H O Q O_ C GJ O L G CL u J L C 0 bDv Y u C Y C C p d y C V w m C v C m Y m a E u h0 N 0 N O. Y C u V V d to C a C a C a / d a C Y C Y C Y C E m E E E tn 0 a 0 o. 0 CL d v w v w v > / Q � � Y c E J J J m J E, `E. 'E d C 0 d / Uo" uo uo d co C U C i u > ° E u J O O U ry 1 � �J Z' Z Z Z Q Q Q" IQ- FQ- F Q Q Q d O cc u C m � o L Y N m C E C E h c Q Q (7 W O Q o O C7 U 2 w 21A-18 m Ln a, R 0 / d m "N • / Q W d c E .� a m J O N d C 0 d � Y � d co C U C E u > ° E u J O O U ry m Ln a, R 0 AP -10 Consultation — 91.100, 91.200(b), 91.215(1) Introduction The United States Department of Housing and Urban Development (HUD) now requires that entitlement jurisdictions submit the Annual Action Plan and the Five -Year Consolidated Plan through the Integrated Disbursement and Information System (IDIS). The IDIS template contains relevant section and a series of questions to complete the plan. The City of Santa Ana's 2017-2018 Annual Action Plan was developed using the IDIS template and in accordance with statutory requirements,and federal regulations. Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) The City of Santa Ana has it's own Housing Authority and works collaboratively on all programs. Housing Authority and City staff meet quarterly with County Mental Healthi workers in addition to sitting on various committees together. ESG funds will continue to fund mental health outreach,services in FY 2017-2018. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically, homeless individualsand families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. 2-1-1 Orange County is the'County's lead with the Coordinated Entry System as well as the Homeless Management Information System (HMIs): Each'sub-recipient that the City funds is required to partipate in this system. With the;establishment of the Coordinated Entry System, organizations are required to lower their barriers to entryand adopt,a Housing First model. Street Outreach Teams are administering the Vulnerability Index - Service Prioritiiation Decision Assistance Tool (VI-SPDAT) to help in the placement of housing. City staff are active on several of the Continuum's sub -committees and the City Manager sits on the Continuum of,Care's governing board. OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-19 Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS City staff participates on several sub -committees within the Continuum of Care and coordinates on a variety of projects. Additionally, the Orange County ESG grantees (County of Orange, City of Anaheim, City of Garden Grove, and the City of Santa Ana) have developed the Orange County ESG Collaborative as a unified approach to requesting, reviewing and funding ESG sub er cipients. This collaborative approach has streamlined the application and review process and allowed grantees to better understand the impacts of funding decisions. Future Collaborative efforts will include unified invoice and monitoring forms and other actions to better serve_our homeless,and at -risk of homeless families. 2. Describe Agencies, groups, organizations and others who pa and describe the jurisdiction's consultations wi\,housing, social sel entities I OMR Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-20 in the process Jes and other 7 21A-21 C 'O a) C w a) m u a m Y a+ u m a u u � L � al d Y 0 ` � v =_ N C m N m E a°a O 6 L C w t V '3 Y 0 0 C CL E m > > Y > > C N >C O C" c M L m p O C v y � .� C a ami Y o o m > 0 O Q m m C O ^ y C Z ¢ a N C al m n M 7• U Y 6 vii C C m C Y y L m c a a w Z O « o n m 3 a E C O m C .o >r a 0 0 O N N C c U O. L LL v EJ v a E > c a Eft :r m O r N I- 0 O m p u, N 0. U v c ) ':'0 u. _ v r*>i a+ N p U Q N a c w c/ O O,,L a v v ar C r 10 m i a •C -O ( r N O 1 �Ir ; L .m •C U Y tuo a) to c ° O U LL u \ v a m O 0` d) N c /L v p Y m x W NV Ou/ "6 Z Z., j Oi�L I° F E E v v N V N v ¢ uvi a m c c Z 7 vc, Z C C C C N 0O\ O m > > a a > 'p' N'. N f N N N 'Nl m .' N (p a) Z m m m W `.a) a) a)' a) a) J c O E o' m v r E 2 .i O .O O a al N U E -E E E E O 2 r ++ r ++ > O O O O O m x a 0 0 m o '3 m N N p c IC � c > O Y �` as ° 0 N O u i (J N -0 > m N =u. d 0 0 3 ¢ m E N ry m ,= t � C C a Y N m m m m W c `m m °' O O C C 0 a)m -° > o > O c o 3° u u c Y � w W 7 d C c a Q m u u 21A-21 C a) C w m u a m u u � L d Y 0 ` N C m N a°a O d L N t V '3 Y 0 0 CL E m > > >C O C" c M o V V C v u Y C a ami Y o o m m m C m L a N C al m M 7• U Y 6 vii C C m C w y L u„ a i O « o n m 3 a !O C O m C c a y 3 v 0 O m i wC ° U v ) ':'0 u. _ v z c/ O a v v ar C r 10 m i a •C -O ( r N O 1 �Ir ; L .m •C U Y tuo a) to c ° O c u \ v a m m O` 0` d) N c Ou/ a N y T N am+ � m uvi m C v c O c v m oa m a u 0 ? m 0 m c u m E w m O m Z c 0 N ` u C O a a O 21A-21 O 0 N Pq (m Ln O ei t1 0 mca CL u CL CL N N CL ao c o a+ O N a C E /E ' C �a. JN C N\ ''F• �C d •u � C m m 00C M Y (O0 't 0 O a ` 0 O+ , a Q v .a v 'O aC O ,O o 0 C LU �= N \ 3 > o E s a E v c 0 0 L CL m v CV O y > O CL O uo G o u c, O o C V O/ m N ` C a R u c a O Z ai N VY N a Y ` C N a N O C Y � N U 0 Y C E u � E H m C • C c H m � E E v Q N h C N W H a R C) N L fp O w H G C Q N 1� L 0 0 N N � C_ Q1 U N LY E M O CL c o O M C N O CL c � a N / 0 c o L m N U O � Y M C Lf Y J •: o 'm • c, 3 3 Q a0f°O! Y - L C N gyro. O .0 Y; a O Y L u r � 0an a 1j a 0 v v -0 y m L O C O O L C ry U N v t^ a c = 0 n a N O Y tap "O C � •L L N � > "O m m N v 3 > � m• E c u N � v N y H C 3 L Y m u cc :aE E cc r a o u Q u Q 21A-22 z u f6 d 7 O C 0 CL ,V f0 CL c N u v = m J u CL m N Y C d E m E m c U a m O V Ip O r E E0 Q z 'O O ,O V E C M = C E LA E a E v u o Z Ou a � u `Cl O E \ c, rE N °a 0 C V O/ m N ` an V O Z uaj' o • w W ba H / u Q 7 0 v a 0 o m a w 0 3 z N v O Y 0 N N 0 k IA L O rn Y. V OJ u di Q x W d a F Y .O a` c Y o� f0 v ? m � C C_ O W= w E 'Fa m v E L 'O N tlD U m 3 w Y G! � a Y Y V C > > O O m E Y no a c v ^ V O � E , � U u LU LM CL Q V 'gyp O Q Y = vl WO v m w a FL- i Y ' Y 3 w c U N z T- i 00 - GJ a:- 06 10� 06 ~ Y ` O � -eon. o v o c 10 O Y O u " O d a F Y .O a` c Y c W 2 o w L L 'O N tlD U v L � n C � NO = = N N U u • C W � r4 7 N y CU IU M C u m E w Y ^ V w Y c 3 o 1L/1 C CD o 'u o- N = u° v V LU LM CL Q V 'gyp O Q Y = vl O N Y m v m w a FL- m n = u v N > ° d a F Y .O a` c vUi 'O u � N Z N N U j • C W � j L z e a O � QI C O G1 10 m N m a EE N u e -i M N F m } ili N a` O E O .E'�.` v d O O Q I / X W / I c in -_ C`u•N N � c rrC W in LL � d r O U JJ' •o' �� E a > o .o a Q Q w 0= i a O In n w E A Io 0 m a u 21A-23 al C O � Q Y N O W a L -a = ` N Q Q E a Ln N W C a a 0 a LnN a u om c X E a 0 N M V W¢ Q r 0 N N 1 O O O N / v of N % N 00 F V A � •, i� , a N •i i\ • / > a � O e `y o ��`✓ f i a o ti• W f O N Y 0 00 Q � r ;' V � U �4 N m Y L f0 C w C L d\ a .• b9_ N a L C J T C vl L J Y Yr h .t O T C ? ? vYi �. O H co N N J 3 E u E c t •` :t! .n mr -c' w !Q • in L O N LO O h u o o J o J v v 3 m o o m. aci v ¢ x x u O u 0 L LL O z W z H CZ .L.. n O N V U _ a U m m w O � � 21A-24 a " Y Nm `..,a E 0 O Y C Y M E yC Y oL Y ar a E O W N L po0 U C C S a! `- m m Y ai O U L H m O 3 y N O > m 00 J U 7 o c Lam.. ° E v w J o n o o o m N N E a ` m c v 3 E c m C m l'�," �' u -p O W t bo Q 0 ♦�,,` �j U -O °c°rrvJi 1 v -p ° E 3 E o s rY ," •0 / v oa r ,�, ,� m 0 cu cu Iu v w y v m Oc\W _ a m J O Y V // / V u w ,T �' , N L m -p fa I , cu J 7N .Lm.•,a -72 m O bD O :5O m F-• a) C. w N > O ° U > � '• �" C C O C u' �• N C' D L E° 3 N -0\ n a } O al al w c E w . L N QI T Y —/0 O, v� L Ycn m w U J 6 Qj 'i c v c C v 3 uM 'ci ^ CL L m Y O! E m MEO v O p W u m Y m C t 'H O Ol O •n m v Oc w f0 '� p O v = O' v C to = m m .° °' Y> u .p •m C7 E c m E E ar O` w •u�i m .� :ti y za " .T+ u rCa moco m u U ° U Y n U J Y u C) m 0. a C m as v v E v v vi O n n Y w" F- :2 Ou H m EO Z 21A-25 E El 21A-26 m H n N _ C L N 66 C � M � � 0 O 7 M U Q � rn C N N i u d N .G 0 C � f6 M � L m O l w C O f0 c L E C Q 7 O N � 12 Q m 0 21A-26 m H n N _ C L N W a+ O "O O U -a C N O O N d L O N C 0 _ 0 C j d m C i bo M H d E v ¢ o° a E 0 o= v= m 'u a -O 0 N "O N d N ¢ 0 x -O O u 2 x -O ., K O. yNj x L 0 a o d G N OLOY o oo O3- CD N VI Y V d dYVI O d d d O Ci c= N c= N E (O L N = V d E 'N f0 c VYI 'N S E L'i v E o= N S d L d O da 0 v 0 0 N d N o O L 0 0 0 0 x z x x z x o x a H 0 m x v! x ry x n 0 C7w !1 N C Q O w U x 0 C O V i '-I N V? l/? N', I d C N d yi O Z a •NO O "� h d d OCD d Z o !�' d < / o ID O m f0 d C 0 o -0 O c d E •N _ Y N Z = o d U 0 N d t0 O Y N 0 a E w 0. o Q O 2 0 d O � 0 N N 21A-26 m H 21A-27 v N av L E O O O O Y u N u C O O O C j y 0-0 mo U O O C0 c0 00 OJ N `1 C i% v== •� N LL M 3 0 Y m o w= 'N QTb 0 `w v ui O v U_ C m 0 Z 30 m Q ami ami O u m U v O N h m vt H vmi '`+ N CO aT+ L N O U J C C N 01 C C .. .. O. (� •- c rn N y w in p p in p y L a Y x a m m O O 2 w a` x 0 tD m m C3)w 00 m N N m m N m V m N 001 C ❑ al ❑ O ❑ C, ❑ N ❑ a --I ❑ M O rr C U U u U� u m U x , In w LL U/ OJ m (D Eu / N W Y w Eto d CO` C u ` E 7 t' 01 =r O d E o z> N vYi m U❑ U U U 00 w Q C d vl ❑ C rn � >> c c ao E 0 v lL J CL A d "OO Y UD O E c E c E E c E_ �Bj Y. z D o. .c" m i 0 0 o p o o o ''., m .0 E 2 E 2 E x E• a-.5 c E c c E> c E> c E> c .E O O O. O 0 N O O w O O 01 O O,' .> 01 x z n z U Z U Z u z' u❑¢ 2¢ w O N O O O J% RN c0 -I �0 Poi 7 J N T O N O N O N O 0 N O N i 0 O N VI Y VI 1 t t0 E J OD J N 00 O` CLU O L C Y N E d W ] O E C Z V w N L d O ❑ m Z C O O l7 E v y c U O c > O d W Q d LL V U Q d � O 0 H O M C m t0 1, 00 21A-27 v N C O a V m 0 f0 O tD i r J � r f' r i 21A-28 M O CL .3 c 0 Y V_ N Y E O t 3 0 v :E w v E 0 V C N m 0 0 E V C m d O V C —O_Zl. yLn E N. V ' rl. c a+ LU Qr o T = W T a Ecu x d N 'O 0 N Q 4 y m a to E r ❑ C O w m O Y m aj •' m m d £ 0 H M F W m C > CL O. O C Y O C eC n > > a Oa v j o iE c Y Ov Q Q V LL y Y �++• .O m in v N in .E m LL w c. N -O QJ U_ O O E O p O d E Q x O a U w J a J n O u O Q C C C C C C C C 0 00 0 0 0 0 0 CL aa a a c a a .N m m .N E " E " E " E N E V E m V m m w m w m w m w m w m v w m Z ❑ Z ❑ Z in ❑ Z in ❑ Z ❑ Z ❑ m m m m m m m m m m m m m m m m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C7 C7 l7 l7 C7 V' C7 l7 C7 C7 l7 (7 V' V' V' V' HN M V of tO n co 21A-28 M O CL .3 c 0 Y V_ N Y E O t 3 0 v :E w v E 0 V C N m 0 0 E V C m d O V C —O_Zl. yLn E N. V ' rl. c a+ LU Qr o T = W T a Ecu x d N 'O 0 N Q 4 y m a to E r ❑ C O w m O Y m aj •' m m d £ 0 H M F W m AP -35 Projects — 91.220(d) Introduction The development of the Annual Action Plan involved consultation with those agencies involved in delivering housing and homeless services within the City of Santa Ana, as noted in section PR -10. In addition there were meetings conducted with appropriate housing and social service agencies regarding the housing needs of children, elderly persons, persons with disabilities, homeless persons. The 2017 Annual Plan sets forth a description of activities for the use of funds that will become available during the coming Federal fiscal year, determines goals for individuals and households to be served, and describes the implementation plan and geographic location of the•actiyities to be undertaken. # Project Name 1 HOME17-Admin 2 HOME17 - Single Family Rehab 3 HOME17-CHDO 4 HOME17 - Affordable Rental Housing 5 ESG16 Santa Ana 6 CDBG17-ADMINISTRATION 7 CDBG17-FAIR HOUSING 8 CDBG17-CODE ENFORCEMENT ; 9 CDBG17-ECONOMIC DEVELOPMENT` 10 CDBG17-PUBLIC SERVICE PROGRAMS \ 11 CDBG17-PARK IMP PACIFIC ELECTRIC BIKE TRAIL. 12 CDBG17-STREETIMP�ROVEMENTSMADISON 13 CDBG17-STREET 1MMOVEMENTS'HENNINGER 14 CDBG17-NEIGHBORHOOD SPONSORED IMPROVEMENTS 15 CDBG17-SINGLE FAMILY REHAB 16 CDBG17-MULTI FAMILY REHAB 17 CDBG17-HOMEBUYER DOWN PAYMENT ASSISTANCE 18 CDBG15-PARK IMP RAITT AND MYRTLE ST OPEN SPACE 1 013517 PARK lMP CENTENWIAL LIGHTIN' DBG17-PARK IMP -N=TUP NIAL'WALKWA 1 DB617-PARK IMP THORNTON PARKING L0. 06G1.7 -PARI( IMP BIRCH FEND DBG-17-PUBLIC EACILITYIMP SENIOR'CENTE D901,7 -PARK IMP SADDLEBACK VIEW +LIG HTIN 5BG17-PARK IMP SECURITY CAMERAT Table 8 — Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs These projects are deemed to be of the highest priority and meet the greatest need. The chief obstacle to meeting these needs is a lack of resources to provide a greater level of assistance. OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 16 2017 21A-29 L 0 y E Q ' 3E V, — E N o E L �O 00a+ I u m M w m a O a Q aL 21A-30 E o /r � � a w O x A� ' v L Y L W r O vc �p 00 t! - O1 O iy, CO J At Q1• Y hq Q C CL n J -o N_ in Y a, m n w v ��` f Q -�w � -t0O c S w w •• � � 3 � _ x u a a x x x x u a ti N �\ Lu may. C\l C •7 L �• V v v 3 N c v v G W N G O O O « « C G IC G a ° C c Ol .0 « .- N f7 u ¢ 10 d a Z ¢ H ¢ m c a 0 Y d D c v Z ¢ m •p m N m a c .L ww m E E c ♦O m m O d W ,m " O N L O CL H 0 Z ti O FO- W O .`r d a F C7 N N 21A-30 21A-31 AR m O v a 0 E a N a c a m o c Y o E E L L O v L T N w O •� U N � m a O m a N N O 0 V a Y C O Y y Q N n C 9 o 0 N 0 o •� f O Y O C 0 N C u W. .o E O N y , i G1 Oi N E v o w +N Y o;lo E a Q a u v C L L C O co — O — m u �'p •N O N N _ __ y CL LO .� u a u n p N c .. v' r ,ti. _ bA w aL+ LL w = i Wcu bA t? •?� r �'• o px px px Y px i x x 3 L N U Q x I LL , d , y Y Y d .y CL Y W •> .7 C G G C m Y Y a° m c va m c a E3 N c w .o a E 3 v a N C O •N �.+ N C G y m L O •� W ate+ y y L O N v c O m r Y Y o. m 0 u Q E m m 0 a 9 c O v L +' Y a v o Q ++ v d C Z 7 Q V d d C C a m .. C u h C °• m E O N m E E lo-.. m c ° d m m v c W m E E m w Z 1=L 0 f W O w J a a Fm- l7 Z ti O Fm- W O M 21A-31 AR m O 21A-32 T 0 N d 0 a N f0 C p m c a` O Y LO �F D• � � 10 L O � 0 IO 3 c O yLi C VI N L CL tyo U L � C vi - 3 L L Y tl0 O d 7 Ol W C Y N C,. Vl U h "' a E w w� v i i _ �v •.n m O ° o O o_ v l7 > +' E E, "O E l7 v _ V Q _ O O CL m Y c •> N v Y a m y c v w a = •O v E 3 ,� O o• a .y a v v N y Y O c t o• .0 Y N L d Y O a O m O •o Q Z a�0i a p 'a « Q v a v p m ¢ N _ c o a ? a N ¢ a o u v " vv `u m E m E m c v v v •� e •� nic eu m O v 7 W m H W O O O m O v N m a a H C7 Z lL �-- w o �... Z u. 0 H Fa n 21A-32 T 0 21A-33 O N t? u m a C 0 C m � m C vu V- 2 C p YO m OCL C m aYi 3 u a L iLa c o O o `o N v y Yp c = U N L ~ u =O m N a 0 G > v o W O y JN >' m N n — O �' E N U cx L! C v U /° > C' O 0 N — a y .m. s• a �m r en nb Y ,� E a ,o,/ > o v c c ,� o 0 c- 0 °fin%� u_ c �' 1 c c E O. O O Y C 32 UW Z a`X l N E o \\ � ? C f f N M J w E,fc O �,omn p N Y / w=\ O y 0 N /' W N C O W a CC yip m C L /( (U L Y U E U a W to to Y ImE Y! C a <IE Y O = m t; C `m bD'O CL a O y m N O. aL+ C N Z U, a,h �,N C _ 1p Q .v U a H O t0 ` m o ISI a. :u Yl�.v 'E o n`. u w c 3 v 'p Q �m '� c •'^ c• .v. E o .y .O v ' • �`-' ° rn a0 2 � E m" y a a .^-I a. ^ c vY LL• E C o Vnl o w E E v> c v m > E ❑ E/�/� o a L m. m a c L O a L Q O r O " a O O� �7 J U O 'm' in L O C m E H= m H a U Y u u Q = 2' o. a w U p C i f d \ c c i m m a Y m y c E a O OL Y y N c W m L C N > d C d Y V m Y E m p a y L c a Z ¢ CL ¢ m c• ,°J• m G Y .2 '^ c .� E ,«C E cd c •o v �° m m a h w Z w o a aL Ff0- Cpl u . m 21A-33 O N t? 21A-34 N N i a Y C Y O C � Y_ C v U "O Y 0 0 "O N C C m � C � O N •� Y L U L Y w O Y_ y �I C O 7 T_ I = C � w w to ,C 0 O O •N `p- V, --� • -- lL - d) Y Y 0 i' Z c c = 3 - ! ❑ 'o .� cor E� w 70 �"O '�• w O � ` aA � Imo' � C C u 0 u w V F u U ' w I CL CC W Y = C M w u M w u w° m c w .n m c E .3 a a ° E 3 w a v o � v m w r 0 N w t' W N r 0 °a w Y' E °o a at a c. p ¢ m a v` c $ a ❑ ¢ m m w v` w a v m w_ d v Y mEE c 'o c E E = Y N u ti° m w to w u O yo m w F (7 Z lL ❑ H W O N J d d H Q Z n 00 21A-34 N N i 21A-35 N N I r,l Jr r J � Y. •` J f j f' r vvi OJ O I� v E o E o - ---5, w l0 DD Z > >! N 00 3 @ a O O �. •`co > O f / on 3 u it a U aT+ u w w U a/ j I ❑ u0. aT+ U m T N y y m VCL �� y >. .' N y• i+ ; m Lm a m c Lm m c E 3 a a w '0 v E 3 ,a w L G •N E '> m w�' Z' ° w L G •N > W C C m m t y L m m ❑ Q E m v d L -p c O m N L" L y w d v ❑ u Q E m m m b0 d ❑ m y L C Z y Q 3 Q 00 d ❑ y_ L C .O m Z Q y v U m E m E m u m •S m =" N v v U m E m y E m w c m u m 7 m m N w OL O m m O m m m N w OL O m m LL ❑ �- W O .� J d d H Q Z LL ❑ H W O O1 N 21A-35 N N I 21A-36 m N m �u ° u Y � C L v v ° a L a E a c'O u ._ c c E O E o ^ Y ° a c a � 3 E — — 3 c � N W ° Y - W O u z VI r Q1 � N L = .E`,. i a eb o. •u m u h >. Q%av z a d Y'•u � � m d T N O in in L m.'O O u I` r`o m L ''C V1 Q --C VI N L UD O w O m m O n. 'u 'u N ' VI V1 f� t? d O C Y O i li 00 n a m > ° a a u a a a u a' ii S Q u , C li v ?a N y Y d ?a � y+ M nJ a Y a W Y > y m c y m c .o a E 3 d c a a E d N ° .N Y a Y 0 ° C Gw C fe L Oa '� W d IYe N L r d O Q A v C C « W C 0 CL 'a`O Q On O. Y a C a Z Q N Q u - u YI C .` Y IO Y a 'a u E m E m c m 'O GJ m VI a 'v u m E E 0 d C H i+ "' u le d C in •Y W u 0 Z lL 0 f W O w J S O.{L N .i 21A-36 m N 21A-37 V N m > O O y O y L •0 L •� 0 a 0 a` Y to Y ZU Z u C C Ou C C O O uO O O N � N U L p L L n L n Y H N O Y N N O C T C T v c> v c v Q c N u Y V f ' ^� x '^ cu ¢- - N N .� d o "C 1 y C =• I' y Y C � L � �"• 0p / L U! N � W Z U m H m aj wv > > E> " E> N N W �' u Ol O C' �' r N JO C W tU A O K Yf m` v __ a' v c N Y C C U U W' U •� .•i C C. m W C C U W "� ^00 W vii Ln i .N- Vl m L6 LL LL �' t U ci C m u uM N O N O Cov_ m a t] u O> a > a 0 u N L m H 3 Gl L z 3 u �' a uu F .a m I Ix N �4 \ Y Y N � � Y y ° m c OO m v a E 3 N a m v w M d m {n O G U Y > w m r N N u E m o c m ,_s' m E m o Q '° a v o m Z a o Q m v a v 'O Z Q Q CO Y y :_ N C 'O Z Q m Q EO d C O. C •v C 01 N �v u E m m ?+ •o m O m G y C W m ++ w u O m d C O m a CL H W Z lL o F- W O w J a a` f- N M N H 21A-37 V N m > O 21A-38 Q N L U 0 O O Y Y � CL d O H m T m N m T m T W N — b00 > 000 � L C C •- C C C v Y •3 a c C ai Y •3 a c U u x N m x N m m C 3 bD v w m vi 02 h OJ 0 O1 O1 f X 01 Y OD O O0 O U 01 C O) C m (.90 L ff (30 L C co E J % m E 0 U U c 0 c 0 a n 0 C 0 C w O m Y m• O L L. L c c o ;r CL E° 3 E o m y �f v v v )= m °' co o .vi _v Y «'� a N N %O u U 0 o- O 3 m 0 ( O m O o u a) H u w H u Ol �! 0 2 OJ vi 0) N 0 '0 N 0 '0 C7 a. y Y d ,O m O L a _ m O L a W Z O += 'u = •u tD fL •C 0O Y •C Y ri ra LL `i "00 t L1 0 L v (D C m' V I u l7 —w y O ' 00 U DO U m m r U Y Ou UU p w Z u I Z J O_ O_ I ti C a a a m c E3 v a v a s E 3 a o Y O •` != 0 N = Y O c s L m m " v c o. u O O .M O` C 0 Y L Y VI 0 p u E m m d �' V C 0 Y L Y +' VI n w p Z Y p Y 0 C a Q O Ln Q OD Y °' p y 0 C c 'a u Y c Y m Y m m E E .0 m c c a m y `u� m E m E m u Oc u w J a o` (7 Z LL p F W O W J a 21A-38 Q N U d 3 O. O .fl N u U m C m Y W N Y N /r o r - N v .n , r `' ca Z3 t Ir I Y Y .p ❑ W Y d / � `1 � W � to `1 CL L _ -.0 m to U J 1D _O a O lD O1 ? mf0 3 v .� U , u f v O u r r, a) m m� 4 ° n f v m yr o .0 o ti v •3 m v c .N -I c . (71 N L m ? O J m m : T O m mo ,• C u u a m u o o u •u a u s CLa a_ m W V � � Y . a Y w yOj O. N > m t' N Nd CL ° C m Y N 6 m E ° •° C Y ° m m D. 9 m ° 'E C O Z 7 �' Y ° c Ym N " c m Y m C m 0 c °o u u c m m y N m E E m c m •° m ° y N m m m O m 7 N m ,tea h .�- O O m m O d m m a a f- (7 Z LL 0 H W O w J d d (7 Z LL ❑ H H � 21A-39 V 21A-40 m O w U V N N m c i m c w p �' 3 } v ° O m Z C � ❑. � N Ll O o E m u D C ❑ d N + ,41 •� 0 i Y w Oa O } Op Y L - LCO .a 0a •�, Y. v N O_ a a W ¢ o :m -:u p ON d O ON � • m o m m > r > m m IM 0 w u u Q m u a j a` u a a u v CL ]mL Y d c c a •Y c c i � d � d Y m° m c v m c E 3 a 'o. v° v E 3 N a a� v v Y O •V Y_ OI N Y O •u Y_ C CL •� W Y C CL •� O! Y L N ° d .0 ° m r° o. w ❑ E m m a c m r° Y o. m D E m m a w a Z 9 0_ m a Q Z w Y -_ N C V Q O Q b0 �' D d Y c m Q Q CO m 'E u Y �^ c °• '`u Y .- m Y ° " v Y; „ of ,� c 'v E c m .o a m = v o m E m E c c w m v c N m o m m m c 0M W O N a` F (D Z w O H W O 1� W H N 21A-40 m O 21A-41 00 N m O C U) V w U1 110 Ul C U1 U1 O O. G/ W u C O t Y .3 U .O N /O/ W O W Y T m / m bo r' CL O C O Q WE r a Z .'.u.. • ".u. • t o Z. y co iE' ,`- it r /• ` ai F E Z Ou Y .. C )l O C Z. Y Ln 4 ON Gl O U.. Gl O O Y N 0 r m m a � 'u (`ut � • •m m o is a � .M9 O O Z O o 0 ¢ Q a a U r'r�� z CL a N N' W Y W y o P c s v a a '0 E 3 a y O y QI N y C •L jCL 41 u.1 Y O d O y 0 y Y M C. y p Q f0 a O y y M N O. p a R w Z LJ d Z y Y. C Q Q m y p V C Q a Y f0 Y y Y yr c a Y 10 Y E 0 d Y E E c c v m v c a m E « c c v w u o ;° v o m w �m G H W O .0 J a h• 21A-41 00 N m O 21A-42 j ' � c / c Y u N.. !r CL w 3 2 2 / `•" z O o 2 2 1 o m n tNrO tNrO Y ` - N = n F- _ i•_ _ L c \\ c O 3 Y o C c c' ` O 0 Gl d OO '• O Y a N N. O Y �' O 'u 'u "'' m rn � a 1 � 'u "u• � �. �d m / Y � LL LL N G O N : �� LL •LL �. O O /^ H > > N\ O > > O m o a a u u io m O J a a (u L F- \ ID 41 m % m 2 d Y d N y M Y M m c v v E •3 O a w 'o -a a p -a E 3 N o a v H c m c u > t c m c, `u O d C d N Y O L r N d r V t0 O O. d r c v N t O L" r '^ d u CL O m y °. ¢ z a a v O m Y w CL ¢ Q 00 c d Y _ t N C 'O Q Q CO C O C 'O oj N m .` d E Y E« E .0 C 01 d N N a •�' d m E Y E E Y m G a u c 'o ti° m c LD Z {L 0 f- W O W J d L Fes' ci Z LL 0 F- W O W J d 21A-42 j 21A-43 H e _ ' C > ! vi m > > w = E > > } EI > > co 3 O _ _ O Vt LL LL 14 O ' 51 LL VF i C Q � , C Ly Q Vj m U UVr' \ L (7 m U •LI � m ✓ m 3 n COm u O m L, 3 !� m Y c :o m- a a uu L 'm a a m Ou 1!2� m m N � FCL N '.� .O u V c r'> m 'V \. c I'> m Y m `y d m m m C d -° v'0E 3 N a a v 'o E 3 v m ` N N V O C m O. •U Y > im L N N Y O C m a E °o m L y L p N m E °o N L m m r p +' W m 9 e m Y t L Y N O. D m. m d e Y t a+ N 2 Z ` Q O. O O �_ C Q 'O Z Q 6 7 O w r m Q CD CL CL ate+ m Q 00 C m .d m in m E �' a+ C y m VI .�' E aL+ m m r m w E m m m � N m w E O m m o O m m O .Y. m �-- !�7 m VI W 0 O O. L m �--' V' Z LL m F- N W W O W 21A-43 H 21A-44 I v c v u `o Y m c � � a 3 � � U Y - ^ Ul J / / , m l Y /(♦ .l , UT 1 ca u GIn N C; u," p m m Y vNNI i• •�v o �v � .v �v m w L 3 pa O co Y O �' /❑ a D J a a u m In \ o q f a a /u v In \ ID m ' k W Y A � Y CO. y N p E 3° " O. v v Y Y N 7 Y C C m Y N u CL -0O O d V O O CL -O C ❑ Q m m L CL O m Y N 6 m ❑ Q O O O. •p C Y m O 'O Z Q IA Q 00 M ❑ _ C O Z Q 7 Vf Q a+ CL Y W C U y Y OI N h G L Y 41 m m r C E m E Y m d C d GI N C •L p c m eo m O my m N •uYi O c m �� m m m ea i0 N (D d m ,.,., W O C O m Z LL m ❑ �`p �-- 21A-44 I 21A-45 N M a, T O v E O v i O _C C O 'o m Y i a v 0 0 L c u �\ Y_ m• O � N w O C C O m .Y m � m c Q Y � C C m m � G1 �n vi m m L O. � N a u w CL a_ N m m � C � Y y L E a 3 A C a a O y L N C O .` H y y N a Q m E c v E N m E O m V J e m W 0 O w d 21A-45 N M a, T O i 21A-45 N M a, T O AP -50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed HUD -funded activities are limited to the City's low -and moderate -income areas, which encompasses the majority of the City's residential areas. Areas of the City outside of the CDBG target areas will benefit from activities that are limited -clientele in nature, i.e., a person/household can benefit from a federally - assisted program provided that they meet the program's eligibilitycriteria. Eligibility is typically established by household income and household size. ' CDBG program funds will be expended based on program'criteria. For example, public services will be available on a citywide basis for qualified beneficiaries; fair housing and,program administration activities will also be carried out on a citywide basis. Housing code enforcement and community development projects (i.e. street and park improvement projects) will be carried out in the City's low - and moderate -income areas; i.e., areas of the City where the majority of residents,meet HUD's low- and moderate -income area definition. HOME funds will be utilized to support`housifig acquisition, new construction and rehabilitation activities for very low-income homeowners and.tehants. ESG funding will be used to support programs'that help prevent homelessness or that assist those individuals who are already homeless with emergency/transitional housing and related supportive services. A portion of ESG and general"funds will be concentrated in the Civic Center where the largest community of homeless individuals reside. Geographic Distribution Target Area 1, 1 Percentage of Funds Low -and Moderate -Income area 39 Citywide I 61 Table 30 - Geographic Distribution OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-46 33 Rationale for the priorities for allocating investments geographically Funds are used city-wide to benefit the residents of the City of Santa Ana. Code enforcement, street improvements, and park improvements are undertaken in Low -and Moderate -Income areas. Discussion OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-47 34 Affordable Housing AP -55 Affordable Housing — 91.220(g) Introduction As noted earlier, the most important impediment to providing affordable housing is due to limited Federal and State resources for affordable housing initiatives. The lack of programs and resources to reduce excessive rent or mortgage burdens to qualified persons is.a key factor. i� Another barrier to providing affordable housing in Santa Ana "is the high cost of housing created by a demand for housing, both existing and new, which exceeds,the current supply. Housing prices, both ownership and rental, remain high, especially for lower income households:, In addition, the cost of site acquisition is very highs and development costs are also very high. These factors make affordable housing construction expensiv\ and put affordable housing out of the reach of low-income households. ') The Housing Needs Assessment also identified that stringent crlteria,in the mortgage origination process still remains, which also is outside the scope and control'of City policy'In some instances, issues revolving around personal finances (lack of funds,for a down'payment�poor credit history) effect the availability of affordable housing for Santa Ana residents. I, In an effort to mitigate these barriers; Santa Ana ha`s undertaken the following actions: - In 2015, the City Council revised and adopted.an'inclusionary housing ordinance referred to as the Housing Opportunity Ordinance (H00) applies to residential projects with a zone change that allow residentia1,development wheresuch uses were not previously allowed, and include more than 5 units, to provide either�10% of all new units to be affordable to very -low income households or 15% of all new units to be affor`dAle to low-income households. I I -The City utilized limited "public resources to fund the development and/or the acquisition and rehabilitation of rental housing units. This public assistance will result in lower rents for assisted units thus partially offsetting the Impacts of some of the barriers listed above. - The City's Housing Authority conducted outreach to rental property owners to encourage participation in the Housing Choice Voucher Program. OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-48 35 One Year Goals for the Number of Households to be Supported Homeless 5,000 Non -Homeless 0 Special -Needs 0 Total 5,000 Table 11- One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance ! '0, The Production of New Units ! i13 Rehab of Existing Units ro .8 Acquisition of Existing Units ^ �•" +'•N0' Total 21, fable 12 - One Year Goals for Affordable Housing by Support Type Discussion OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-49 36 AP -60 Public Housing — 91.220(h) Introduction The Housing Authority of the City of Santa Ana administers 2,699 Housing Choice Vouchers and does not own or operate any low-income public housing units. It is the mission of the Housing Authority to provide affordable housing for the most vulnerable members of our community to use as a platform to obtain self-sufficiency and independence from our assistance. Actions planned during the next year to address the needs to public housing lo Not Applicable / C \ 1� ` A Actions to encourage public housing residents to beeome more involved in management and participate in homeownership Not Applicable If the PHA is designated as troubled, describe the mannerin which financial assistance will be provided or other assistance Not Applicable Discussion OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-50 M51 AP -65 Homeless and Other Special Needs Activities — 91.220(i) Introduction The needs of homeless persons and of persons with special needs are complex and require a wide range of specialized services. Numerous agencies are often involved in the care of a homeless individual, providing distinct services such as housing, mental health counseling, employment training, and case management services. A number of activities and services are funded to help the needs of the homeless and other special needs populations. Overall, these services address the high priority of reducing homelessness and the threat of becoming homeless, as well as providiing necessary supportive services for the homeless. There are several groups that have a higher need for affordable housing and have special housing needs. Seniors, people with disabilities, and the chronically homeless are more likely to face housing problems and have difficulty affording housing. Seniors and people with disabilities also have a need for accessible housing, whether for new housing, rehabilitated existing housing, or the adaptation of the housing they currently occupy. In addition to general challenges, seniors may,have supportive needs resulting from dementia and increasing physical debilitation from dementiaa`and increasing physical debilitation. Describe the jurisdictions one-year goals `and actions for reducing and ending homelessness including `. Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The one-year goals to.reduce and end homelessness include: • , Continue partnerships with Kori -profit Street Outreach teams, • Increase the supply of permanent supportive housing • Preserve existing permanent supportive housing • Adapt existing housing to'meet the needs of special needs populations • Improve access to services for special needs persons • Assist the homeless and those individuals at risk of homelessness with access to permanent affordable housing and necessary supportive services • Coordinate homeless services and encourage collaboration among Homeless Service Providers and the Continuum of Care. The one-year actions to be taken include: • Issue 100 Project -Based Vouchers for Permanent Supportive Housing from the Santa Ana Housing Authority • Reserve 50% of Santa Ana Housing Authority turnover vouchers for homeless individuals OMB Control No: 2506-0117 )exp. 07/31/2015) Annual Action Plan 2017 21A-51 91.1 referred by approved referral agencies • Provide financial assistance to coordinate homeless service efforts in the city's most densely populated homeless area. • Provide General Funds from the City's budget to assist the homeless in creative programming. Addressing the emergency shelter and transitional housing needs of homeless persons The City of Santa Ana now has an emergency shelter providing safe sleep and emergency shelter for over 450 individuals each night, including food and supportive services,for over 600 individuals on a daily basis. In addition, these one-year actions listed above will address the needs of the homeless population (especially chronically homeless individuals and fah their families, and unaccompanied youth) with a range of seryi transitional housing and permanent supportive for both emergency and transitional housing. Helping homeless persons (especially chronica with children, veterans and their families, and l permanent housing and independent living, in individuals and families experience ho elessr and families to affordable housing units, and [ recently homeless Work closely with the Continuum of Care and the Assistance Tool (VI-SPDAT)'to prioritiie the.most g. In addition, lilies with children, veterans and icludes emergency shelter, i ands will provide assistance ies, families youth) makethe transition to the period of time that ess for homeless individuals As and families who were tv Index - Service Prioritization Decision herable chronically homeless individuals. All of the goals listed -above were.developed to increase housing opportunities for homeless individuals. Provide project -based vouchers for permanent supportive housing. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and.systems of care (such as health care facilities, mental health facilities, foster care and other youth'facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The goals listed above will help these individuals and families to avoid becoming homelessness. The ESG program will fund homelessness prevention programs including utility assistance and rental assistance. The HEART program, funded by ESG provides bus tickets for individuals interested in returning to their home; often following a release from a correctional facility. Discussion OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 39 2017 21A-52 One year goals for the number of households to be provided housing through the use of HOPWA for: Short-term rent, mortgage, and utility assistance to prevent homelessness of the individual or family Tenant -based rental assistance Units provided in housing facilities (transitional or permanent) that are being developed, leased, or operated Units provided in transitional short-term housing facilities developed, leased, or operated with HOPWA funds Total % � tit �-. '•.��•, OMB Control No: 2506-0117 )exp. 07/31/2015) Annual Action Plan 2017 21A-53 40 AP -75 Barriers to affordable housing — 91.220(j) Introduction Through vehicles such as zoning ordinances, subdivision controls, permit systems, and housing codes and standards, the City has attempted to ensure the health, safety, and quality of life of its residents while minimizing the barriers that may impede the development of affordable housing. None of these measures is intended to restrict the affordability of housing, though these regulations may on occasion influence the pricing of housing. Actions it planned to remove or ameliorate the negative effercts of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations,. and policies affecting the % return on residential investment The City has identified several barriers to the development of affordable housing including the following: • Governmental constraints such,`s property taxes, land -use controls (e.g., density and zoning restrictions), building codes, building,permit fees, on-site/off-site improvement, prevailing wage regulations, and ADA compliance.` • Market constraints including the availability, cost, and'competition for land. Other constraints include limited'affordable housing financing sources, finance costs, and the costs of construction. • Available land in the City mostly�consists of small parcels that must be assembled for significant new construction projects. Relocation�costs and housing replacement requirements for redeveloping impiroved properties also'presents barriers to the development of affordable `housing. ~ — • TRe,region's rents have continued to.increase. Higher rents limited the ability of some low- •, e. e income households to obtain' affordable housing. Households with poor credit history are also severely'impacted. \1 '. Since governmental restrictions,mayconstrain the production of affordable housing, the City of Santa Ana continues to monitor, analyze and address, as necessary, governmental regulations, land use controls and residential development standards that affect the production and preservation of affordable housing. The Housing Needs Assessment also identified stringent criteria in the mortgage origination process that continues to this day even after the 2010 foreclosure crisis has ended, which also is outside the scope and control of City policy. In some instances, issues revolving around personal finances (lack of down payment, credit history, employment history) affect the availability of affordable housing for residents. Market factors that tend to restrict affordable housing production are: high land costs, high construction OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 41 2017 21A-54 costs, and the availability of financing. In an effort to mitigate these barriers, the City of Santa Ana has undertaken the following actions: • City Council adopted an inclusionary housing ordinance referred to as the Housing Opportunity Ordinance (H00) that requires either 10% or 15% of all new units in Santa Ana to be affordable to very low- and low-income households. • The City utilizes limited public resources to fund the development and/orthe acquisition and rehabilitation of rental housing units. This public assistance;will result in lower rents for assisted units thus partially offsetting the impacts of some of the•barrierrs listed above. • The City's Housing Authority conducts outreach to rental property owners to encourage participation in the rental assistance program. Discussion t Annual Action Plan 2017 OMB Control No: 2506-0117 (exp. 07/31/2015) 21A-55 Wj AP -85 Other Actions — 91.220(k) Introduction The City of Santa Ana will undertake many activities aimed at addressing the needs of the community's underserved populations. Underserved individuals include elderly, persons with a disability, youth, homeless, veterans and very low-income individuals. Actions planned to address obstacles to meeting underserved needs In orderto serve the underserved populations, the City will focus limited resources toward rehabilitating existing housing units and expanding the number of affordable housing units for both owners and renters. Housing rehabilitation and acquisition/development of new•rental housing units are examples of these activities. The city and local nonprofits will continue to provide,services for underserved City residents. Social services to be funded will include programs with an emphasis on crime prevention, intervention and suppression for children, youth and families. Homeless programs include rapid rehousing, homeless prevention, shelter and street outreach. By focusing resources on the housing and community needs identified as high priority, the City will be able to utilize limited resources more efficiently. When available, Santa Ana will seek out additional resources beyond federal and state funds to address these needs. y �, Actions planned to foster and maintain affordable housing In an effortto maintain and foster -affordable housing;,Santa Ana will continue to seek ways to achieve this objective. These will include programs and activitiessuch as: • Implement the recently revised'inclusionary housing ordinance referred to as the Housing Opportunity Ordinance (H00.) This ordinance applies to applies to residential projects with a zone change that allow residential development where such uses were not previously allowed, and include more than 5 units, to provide either 10% of all new units to be affordable to very - low income households.or 15% of all new units to be affordable to low-income households. Developers also have an option to pay an in -lieu fee which will go towards affordable housing development within the City of Santa Ana. • Use limited public resources to fund the development and/or the acquisition and rehabilitation of rental housing units. This public assistance will result in lower rents for assisted units thus partially offsetting the impacts of some of the barriers listed above. • Collaborate with CHDOs to help ensure long-term affordability and maintenance of housing units. • Continue the Housing Authority's outreach to rental property owners to encourage participation in the rental assistance program. OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 43 2017 21A-56 • Issue project -based vouchers for permanent supportive housing. Actions planned to reduce lead-based paint hazards In an effort to address the problems caused by lead exposure, the City of Santa Ana has implemented a lead paint hazard identification and notification process as part of its housing programs. This process has been designed to comply with HUD's lead-based paint hazard regulations (Title X), which became effective in September 2000, and was implemented by Santa Ana in January 2002. All owner -occupied housing units rehabilitated or constructed prior to 1979 are inspected for lead-based paint hazards. If the inspection finds potential lead-based paint hazards, the subject property is tested — the average cost per test is $450. The procedures to comply with Title X has added approximately 30 days to the typical housing rehabilitation project. Actions planned to reduce the number of poverty -level families The objectives and strategies of this Plan are focused on reducing the number of families in poverty, improving the quality of life for the lowest -income, most vulnerable families and individuals, and ti lessening the impacts of poverty. Strategies,include providing affordable housing and special needs housing; workingto reducing homelessness; improving public facilities.and streets; and economic development. The transition of people above the poverty line involves a variety'of policies and programs that extend beyond providing opportunities for employment at a living wage. Access to education, transportation, childcare, and housing are key components that can assist persons to secure and retain economically self-sustaining employment. The City will employ a variety of strategies to help alleviate poverty, including efforts to stimulate economic growth and job opportunities, and to provide Santa Ana residents with the skills and abilities required to take.advantage of those opportunities. More specifically, the City will undertake a range of activities and services to combat poverty including: • Expand affordable.housing opportunities through housing rehabilitation, rental assistance, and creation of new affordable housing units (via new construction and/or acquisition/rehabilitation). • Provide homeless assistance including prevention activities, emergency shelter, transitional housing, and access to permanent supportive housing opportunities. Supportive services will be blended with these activities. • Enforce public safety to prevent criminals from victimizing the poor. • Implement public facility improvements to improve the overall infrastructure of the City and eliminate public improvements/infrastructure that negatively impacts residential OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 44 2017 21A-57 neighborhoods. • Provide job training, job -search skills and job placement to provide individuals living in poverty with employment opportunities that pay higher wages. • Promote and provide recreation and diversion services which provide youth living in poverty with alternatives to gang -related criminal activities. • The Housing Authority will continue to implement the Family Self -Sufficiency (FSS) program, which will provide rental assistance, life skills training and referrals to employment training for Housing Choice Voucher Program participants. Actions planned to develop institutional structure y The City of Santa Ana will strengthen institutional structures and enhance coordination between public and private housing and social service agencies, and fo'ster,assisted housing improvements and resident initiatives. The City works closely with local institutions.to initiate programs,that link economic incentives with neighborhood and community development objectives, including building relationships with neighborhood associations, community-based lending agencies; nonprofits,`ana educational institutions. The City also supports programs aimed at enhancing coordination am ng various City departments. The City will continue to utilize a network of referrals, contacts and partnerships to implement the strategies outlined in the`Consolidated Plan. In the area of housing, the City -will continue io build its relationship with local housing providers such as private developers, nonprofit -developers, and neighboring housing authorities, to ensure that limited housing resources are utilized in the most efficient and effective manner possible. The City also will continue to participate in the regional Continuum of Care subcommittees in order to coordinate with neighboring jurisdictions to reduce homelessness in our community. Actions planned to enhance coordination between public and private housing and social service agencies Additionally, the Orange County ESG grantees (County of Orange, City of Anaheim, City of Garden Grove, and the City of Sanfa.Ana) have developed the Orange County ESG Collaborative as a unified approach to request, review and`fund ESG subrecipients throughout the County and in each jurisdiction. This collaborative approach has•streamlined the application and review process and allowed the grantees to better understand the impacts of funding decisions. Future Collaborative efforts will include unified invoice and monitoring forms and other actions to better serve our homeless and at -risk of homeless families. Discussion OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-58 45 Program Specific Requirements AP -90 Program Specific Requirements — 91.220(1)(1,2,4) Introduction Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed r. 2. The amount of proceeds from section 108 loan guarantees that will be used during -the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 3. The amount of surplus funds from urban renewal settlements, 4. The amount of any grant funds returned'to the line of credit'for which the planned use has not been included in a prior statement or plan, 5. The amount of income from.float-funded activities _ Total Program Income: w , Other CDBG Requirements 1. The,amount of urgent need activities 2. The estimated percentage.of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall'Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit,persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% CMB Control No: 2506-0317 (eap. 07/31/2015) Annual Action Plan 2017 21A-59 46 HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(1)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City of Santa Ana does not use HOME funds in any other manner than those described in Section 92.205(b). 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: Not Applicable 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: Not Applicable 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City of Santa Ana has no plans to use HOME funds for this purpose. ,. Emergency Solutions Grant (ESG) Reference 91.22.0(1)(4)` 1. Include written standards for providing�ESG assistance (may include as attachment) Emergency Solutions Grant Program funds will,be used for eligible activities under five program components: street obtreach, emergency shelter, homelessness prevention, rapid re -housing assistance; and Homeless -Management Information System (HMIS) costs, as well as allowable administrative costs and activities. ESG applications go through an open and transparent proposal process. The Community Development Agency is responsible for ensuring that the ESG Program is implemented in accordance with all federal rules and regulations. 2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. The City provides funding to 2-1-1 Orange County, the County's Continuum of Care administrator of the HMIS data entry system. - Again in FY 17/18, funding will be provided for HMIS data, Coordinated Entry and technical assistance. 2-1-1 Orange County also administers the Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT) to prioritize chronically homeless individuals for affordable housing opportunities. OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-60 47 3. Identify the process for making sub -awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith -based organizations). For FY17/18 ESG funding, the Orange County ESG Collaborative (County of Orange, City of Anaheim, City of Garden Grove, and the City of Santa Ana) released one Request for Proposals as a unified approach to request, review and fundi ESG subrecipients. This collaborative approach has streamlined the application and review process and allowed the grantees to better understand the impacts of funding decisions. Future Collaborative efforts will include unified invoice and monitoring forms and other actions to better serve homeless and at -risk of homeless families. Following the Collaborative review, the recommendations for funding is considered by the Community Redevelopment and Housing Commission before being considered and adopted by the City Council. Allocations are made with consideration of ensuring that program funds would be allocated toward eligible activities in the categories of, homelessness prevention, rapid -rehousing, shelter, data and street outreach. 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its.plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services,funded under ESG. ' The City works closely with the County homeless services staff,as well as local homeless service providers, homeless advocacy groups, the OC'Homeless Task�Force, ACC -OC Homeless Task Force as well as neighboring cities -and homeless advocates: A representative'of a prior homeless individual was on the ESG RFP funding review panel.` 5. Describe performance.standards'forevaluating"ESG. The City utilifes the HUD monitoring ESG handbook to monitor each program's performance to ensure that goals are on track and funds are used far eligible activities. On a quarterly basis, invoices are reviewed to ensure program compliance. In addition, the quarterly financial invoices are monitored by City Accounting staff:,On-site monitoring of non-profit organizations is done by staff and consultants for both program and financial records on an as -needed basis, or at least every three years. The City works closely with the OC ESG Collaborative to standardize as much as possible. OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 2017 21A-61 48 21A-62 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE PURCHASE ORDER AMENDMENT TO ACM LIGHTING SERVICES FOR REPLACEMENT OF SPORTS LIGHTING AT VARIOUS PARKS (SPEC. NO. 17-070) (STRATEGIC PLAN NO. 6, 1B) E&J , Z"t f, wi� RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: -;• v ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize an amendment to the purchase order to ACM Lighting Services for the replacement of sports -lighting at -various parks to increase the purchase order by $14,267 for a total -amount not to exceed of $57,888, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On June 1 2017, a notice inviting bids was advertised to solicit bids for the replacement of sports lighting at various city parks (Adams, EI Salvador, Jerome,_ Madison, Riverview, Thornton and the Stadium). A contract was awarded to ACM Lighting Services on August 1, 2017 for $43,621. The original scope of the contract was for ACM to replace lamps that were no longer functioning. In providing the services, ACM had to perform additional troubleshooting at all the locations (except for Thornton as this location is still pending) because some of the lights were still not operational after the lamps were replaced. This required the contractor to use a boom lift to check the system on top of the light pole to research the problem. In some cases, the contractor discovered that ballasts, wiring and/or circuit breakers needed to be replaced in addition to the lamps. PRCSA is seeking to increase the contract amount by $14,267 to provide funding for the additional parts and labor needed to make the sports lights functional again. In addition, the sports light lamps utilized at Thomton Park have been discontinued due to the age of the system and are no longer available through the contractor. The City will purchase the lamps separately and provide them to the contractor to install at the original labor price. Since the contractor has not performed any service at this site, PRCSA is requesting $5,000, which is included in the amount above, as a contingency to be used for troubleshooting and/or additional part that may be needed once the contractor is able to inspect the system thoroughly. 22A-1 Contract Award Amendment for Replacement of Sports Lighting at Various Parks November 7, 2017 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets), Strategy B (Equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users). FISCAL IMPACT Funds are available in the following account for the specified year: Unit dium PRCSA-Facilities Maintenance (no. 01113260-62320) Gerardo Mouet Executive Director Parks, Recreation and Community Services Agency FY 17/18 $7,355 $6,912 APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director 551'v Finance and Management Services Agency 22A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVAL OF VARIOUS HISTORIC PROPERTY PRESERVATION AGREEMENTS (STRATEGIC PLAN NOS. 5, 2,3) � a MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreements with the below -referenced property owners for the identified structures, subject to non -substantive changes approved by the City Manager and City Attorney. Property Owner(s) Historic Property Address/House Preservation Agmt. No. Minter Properties, LLC 2017-14 818-820 N. Minter St. Davies Du lex Marvelle J. Rostine Riekse 2017-22 515 W. Nineteenth St. Finch House Jeffrey J. Martinez & Martha F. Martinez 2017-23 2544 N. French St. E. Lee & H. Smith House Andrew L. Chalkley 2017-25 903 E. Stafford St. Per House Jillian N. Andrews 2017-26 1121 S. Hickory St. Eastin House Alexander Niessen & Maria Nena 2017-27 2031 N. Ross St. Niessen Tubbs -Schatz House Loria Revocable Trust 2017-28 2424 N. Riverside Dr. K. H. Sutherland House Benjamin Ramirez & Nicolette Ramirez 2017-29 2401 N. Flower St. (Hull -Carlyle House HISTORIC RESOURCES COMMISSION ACTION On October 5, 2017, the Historic Resources Commission recommended that the City Council authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreements with the identified property owners for the historic structures, subject to non - substantive changes approved by the City Manager and City Attorney. 25A-1 Historic Property Preservation Agreements November 7, 2017 Page 2 DISCUSSION This action allows for the approval of a Historic Property Preservation Agreement (Mills Act Contract) which provides a potential property tax reduction allowing the property owner to reinvest the tax savings into the maintenance of the historic property (Exhibit A). Additionally, the agreement prevents inappropriate alterations to the historic structures (Exhibits B1-8). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability) and Objective #3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $4,640.57 annually noted below, for a period of not less than ten years. HPPA No. Address Estimate Exhibit No. 2017-14 818-820 North Minter Street $418.61 B1 2017-22 515 West Nineteenth Street $825.83 B2 2017-23 2544 North French Street $466.33 B3 2017-25 903 East Stafford Street $460.16 B4 2017-26 1121 South Hickory Street $525.53 B5 2017-27 2031 North Ross Street $796.95 B6 2017-28 2424 North Riverside Drive $349.78 B7 2017-29 2401 North Flower Street $797.38 B8 Total for All Properties: $4,640.57 Candida Neal Acting Executive Director Planning & Building Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency MM:rb &RFCAM-07-17 Its Act Agmts 11-07-17 Exhibits: A. Mills Act Agreement Template B1 -B8. Historic Resources Commission Staff Reports 25A-2 MILLSACTAGREEMENT Santa Anti, CA 927 FREE RECORDING PER GOVERNMENT CODE §6103 RECORDING REQUESTED BY: City of Santa Ana AND WHEN RECORDED MAIL TO: City of Santa Ana Attn: Clerk of the Council 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into this , 20_, by and between the City of Santa Ana of California (hereinafter referred to as "City"), (hereinafter referred to as "Owner"), owner of real property located at , Santa Ana, California, 92706 in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with Owner of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possess fee title in and to that certain qualified real property at , Santa Ana, California, 927_ and more particularly described in Exhibit A, attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property". C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. The City and the Historic Property Owner, for their mutual benefit, -now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for the Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are EXHIBIT A -I- 25A-3 M/LLSACTAGREEMENT Saila Aim, CA 927 appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. E. The Owner and the City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: Effective Date and Term of Agreement. This Agreement shall be effective and commence on , 20_ (Effective Date), and shall remain in effect for a term of ten (10) years thereafter (Term). Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the Effective Date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least nine 90 days prior to the annual renewal date, or served by the City to the Owner at least sixty 60 days prior to the annual renewal date, one (1) year shall automatically be added to the Term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves any year, the Agreement shall remain in effect remaining, either from its original execution or from whichever may apply. -2- 25A-4 notice to the other of nonrenewal in for the balance of the Term then the last renewal of the Agreement, MILLS ACT ACREEMENT Sauln Asea, CA 927 3. Standards and Conditions for Historic Property. During the Term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character -defining features, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State of Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit B, and incorporated herein by this reference. The condition of the exterior of the Historic Property, as of the effective date of this Agreement, is documented in photographs attached hereto as Exhibit C and incorporated herein by reference. Owner shall continually maintain the Historic Property in the same or better condition as documented in Exhibit C. C. A viewshed enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to completely or permanently block the view of the Historic Property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the Historic Property by the public. d. The following are prohibited: Demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission, paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic examination, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization, and the City of Santa Ana as may be necessary to determine the Owner's compliance with the terms and provisions of this Agreement. -3- 25A-5 DULLS ACT AGREED/ENT Santa Ana, CA 927 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or have allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner has failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 '/) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be canceled because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God, force majeure, or natural disaster. c. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by the Owner, the City shall give written notice to the Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the Owner), then the City may, without further notice, declare a default -4- 25A-6 MILLS ACT AGREEMENT Sawa Ana, CA 927 under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of the Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by the Owner or apply for such relief as may be appropriate. b. The City does not waive any claim of default by the Owner if the City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in the City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by the City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. The Owner hereby subject the Historic Property located at , Santa Ana, California, 92706, Assessor Parcel Number, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, reservations, and restrictions as set forth in this Agreement. b. The City and Owner hereby declare their specific intent that the covenants, reservations and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, restrictions and reservations are set forth in such contract, deed, or other instrument. 8. No Compensation. Owner shall not receive any payment from the City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to the Owner as a result of the effect upon the assessed value of the property on the account of the restrictions on the use and preservation of the Historic Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. -5- 25A-7 M/LLSACTAGREEMENT Santa Ana, CA 927 City: City of Santa Ana Attn: Clerk of the Council 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Owner: Santa Ana, California, 927_ 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agenda, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the Agreements, rights, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. -6- 25A-8 MILLSACTAGREEMENT Santa Ann, CA 927 f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Notice of the Contract to Office of Historic Preservation. No later than six (6) months of entering into this Agreement, the Owner or agent of Owner shall provide written notice of this Agreement to the State Office of Historic Preservation. 13. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 14. Effective Date This Agreement shall be effective on the day and year first written above. {Signatures on Following Page} -7- 25A-9 HILLS ACTA GREEIVIENT Santa Ana, CA In witness whereof, the Parties hereto have executed this Agreement the date and year first above written. F-111111 11111 *3 6 MARIA D. HUIZAR Clerk of the Council OWNER CITY OF SANTA ANA Raul Godinez II City Manager Date: Name: Name: APPROVED AS TO FORM: RECOMMENDED FOR APPROVAL: SONIA CARVALHO City Attorney By: Candida Neal Lisa E. Storck Acting Executive Director Assistant City Attorney Planning and Building Agency -s- 25A-10 MILLSACTACREEMENT Santa Ana, CA 937 Exhibit A LEGAL DESCRIPTION Assessor's Parcel Number: -9- 25A-11 MILLS ACTAGREEMENT Saida Ana, CA 927 Exhibit B Exterior work shall be reviewed by the Historic Resources Commission and subject the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alternations and additions to existing properties shall not be discouraged when such alterations and additions do not -10- 25A-1 2 io- 25A-12 MILLS ACT AGREENIENT Smell Ann, CA 937 destroy significant historical, architectural or cultural material, and such design is compatible with size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. -11- 25A-1 3 1i_25A-13 M/LLSACTACREEMEAT Santa Ann, CA 927 EXHIBIT C (PHOTOGRAPHS) -12- 25A-14 REQUESTFOR Historic Resources Commission Action I-IISTORIC RESOURCES COIUiNllSSION MEEMG DATE: OCTOBER 5, 2017 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2017-14 FOR PROPERTY LOCATED AT 818 - 820 NORTH MINTER STREET {STRATEGIC PLAN NOS. 5,2; 5,3} RECOMMENDED ACTIO HISTORIC RESOURCES COMMISSION SECRETARY APPROVED ❑ As Recommended 0 As Amended 0 Set Public Hearing For CONTINUED TO 0, Acting PlaI ing f ager Recommend that the City Council authorize the City Managerand Clerk of the Council to execute the attached Mills Act agreement with Minter Properties, LLC, subject to non -substantive changes approved by the City Manager and City Attorney. Request of Applicant Minter Properties, LLC, is requesting approval to execute a Mills Act agreement with the City of Santa Ana at an existing residence located at 818 - 820 North Minter Street that is currently listed on, the Santa Ana Register of Historical Properties. Project Location and Site Description The subject property, known as the Davies. Duplex, is located at 818 - 820 North Minter Street in the French Park Historic District and consists of a 1,522 -square -foot; Bungalow/Craftsman style residence and detached garage on a 4,513 -square -foot residential lot (Exhibit 1). Analysis.of the Issues Ordinance No_ NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 2). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Flistorical Properties. The agreement provides monetary Incentive to the property owner In the form of a property tax reduction in exchange for the owners voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: EXHIBIT B1 25A-15 HPPA No. 2017-14 October 5,-2017 Page 2 • Longterm preservation of the property and visual improvement to the neighborhood • Allows fora mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the,property The property has no identified unauthorized modifications and is preserved in its original condition. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement. 'CEQA Compliance In accordance with the California Environmental Quality Act, the recommended action is.exempt from further review underZection 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No._ ER=2017-74 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective No, 2 (expand opportunities for conservation and environmental sustainability) and Objective No. ,3 (facilitate. diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). Ricardo Soto Associate Planner RS;jm SHROWIV818 N Minler.hm Exhibits. 1. 500' Radius Map 2. Mills Act Agreement 25A-16 " P1.1 Al, 'a rho R 500' RADIUS HPPA 2017-14 818 - 820 NORTH MINTER STREET DAVIES DUPLEX PLANNING AND BUILDING . AGENCY EXHIBIT I 25A-17 25A-18 REQUEST FOR Historic Resources Commission Action HGTORIC RESOURCES COMMISSION MEEnNG DATE. OCTOBER 5, 2017 TITLE: PUBLIC HEARING — HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-18, HISTORIC REGISTER CATEGORIZATION NO. 2017-17, AND HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2017=22 FOR PROPERTY LOCATED AT 515 WEST NINETEENTH STREET {STRATEGIC PLAN NOS. 5, 2; 5,3} Prepared by Ivan M. Flores Acting Executive D,ireclor, RECOMMENDED ACTION HISTORIC RESOURCES COMMISSION SECRETARY APPROVED Q As.Recommended Q As Amended Q Set Public Hearing For CONTINUED TO Acting Pianning.Manager 1. Adopt a resolution approving Historic Resources Commission Application No. 2017-18 and Historic Register Categorization No. 2017-17. 2. Recommend that the City Council authorize the City Manager and Clerk of the Council, to execute the attached Mills Act agreement with Marvelle J. Rostine Riekse, subject to hon - substantive changes approved. by the,City Manager and'City Attorney. Request of Applicant Marvelle J. Rostine Riekse is requesting approval to designate an existing residence located at 515 West Nineteenth Street to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. Proiect Location and Site Description The subject property consists of a 1,210 -square -foot, Craftsman style residence and detached garage on an 8,121 -square -foot residential lot'(Exhibit 1). Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS -2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the. Santa Ana EXHIBIT B2 25A-19 HRCA No. 2017-18, HRC No. 2017-17 HPPA No. 2017-22 October.5, 2017 Page 2 Municipal Code (SAMC). This project entails applying the selection criteria established in Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation :to the Santa Ana Register of Historical Properties. The first criterion for selection requires that the structures be'50 or more years old. The structure identified meets the minimum selection criterialor inclusion on the Santa Ana Register of Historical Properties pursuant to criteria contained in Section 30-2 of the Santa Ana Municipal Code as the property is 94 years old. No known code violationsexist on record for this property. The property, recognized as the Finch House, has distinctive architectural features of the Craftsman style, and was built in 1923 by an unknown builder. Character defining features of the Finch House include,, but may not be limited to: materials and finishes (siding, stone, wood); roof configuration, materials, and treatment; massing and composition; fenestration (doors and windows); and architectural detailing (exposed rafters, purlins, and stone pattern at piers). The roof consists of open eaves with fascia in the gables, displays exposed rafters and faux purlins, and is clad in contemporary asphalt shingle roofing throughout. The exterior is clad in horizontal lapped siding, with the exception of the porch supports, which are clad in a mix of rough -face and smooth stone at the piers, and the painted wood at the post. The primaryentry is within the entry porch, and consists of a rectangular door. The exterior features tripartite fixed and casement windows, as well as singular casement and double -hung windows (Exhibit 2). It is recommended that the house be designated to the Santa Ana Register of Historical Properties and categorized as "Contributive" because it "contributes to the overall character and history" of the Floral Park'neighborhood and "is a good example of period architecture," representing the Craftsman style in Santa Ana. Mills Act Agreement Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 3). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register. The agreement provides monetary incentive to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: • Long term preservation of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property 25A-20 HRCA No. 2017-18, HRC No. 2017-17 HPPA No. 2017-22 October 5, 2017 Page 3 The property has no identified unauthorized modifications, and all permitted alterations have been deemed to comply with the Secretary of Interiors Standards for Rehabilitation. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement. Public Notification The subject site is located within the Floral Park Neighborhood Association boundaries. The president of this neighborhood association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice advertising this public, hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 500 feet of the project site. At the time of this printing, no correspondence, either written or electronic, had been received from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended actions -are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve a historic resource. Categorical Exemption No. ER -2017-101 will be filed for this project. Strategic Plan Alianment Approval of this item supports the City's efforts to meet Goal No. 5 Community Engagement & Sustainability, Objective No. 2 (expand opportunities for environmental sustainability) and Objective No. 3 (facilitate diverse housing support efforts to preserve and improve the livability of Santa Ana neighborhoods) Ivan M. Flores Planning Technician IMF:jm S:11ROW171515 W 19" tnc Exhibits 1. 500' Radius Map 2. Department of Parks and Recreation Form 3. Mills Act Agreement 25A-21 Health, Livability,, conservation and opportunities and HRC 2017-17/HRCA 2017-18/HPPA 2017-22 515 WEST NINETEENTH STREET FINCH HOUSE PLANNING AND BUILDING AGENCY EXHIBIT 1 25A-22 EXECUTIVE SUMMARY Finch House 515 West 19t" Street Santa Ana, CA 92706 NAME Finch House REF. NO. ADDRESS 515 West 19"' Street CITY Santa Ana ZIP I 92706 ORANGE COUNTY YEAR. BUILT 11923 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT Nona NEIGHBORHOOD' Floral Park CALIF. REGISTER CRITERIA FOR EVALUATION C13 CALIFORNIA REGISTER STATUS CODE. 15S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric. ® Historic ❑ Both ARCHITECTURALSTYLE: Craftsman Closely related to the English Arts and Crafts Movement, American Bungalow/Craftsman architecture was popularized by The Craftsnian magazine'and architects such as Charles'and Henry Greene of Pasadena. It drew from the'tivood building, traditions of Japan and Switzerland as well 'as the medieval themes favored by the Arts and Crafts philosophers: Craftsman a rchitectuie.stressed honesty of form, materials, and workm2nship;.'escheWing applied decoration In favor of the straightforward expression of structure. A new appreciation of nature was evident in horizontal lines that reached out to embrace the.landscape and the Incorporation of capacious'porches:into building plans, Primarily a residential. style, Craftsman archite'cture:can be Identified by low pitched gable and hipped roofs with exposed rafters and beams in deep overhangs; wood lap or shingle'slding and an occasional use of stucco; extensive use of stone orbrick,as a secondary material; horizontal emphasis apparent in roof lines; headers, -and battered porch supports; and broadly proportioned wood framed'windows, often: clustered in bands. Craftsman homes we're built from circa 1902 until the early 1920s.. SUMMARYICONCLUSION: The Finch House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the Craftsman style., Additionally, the house has been categorized as "Contributiye' because Il "contributes to the overall character and history' of the Floral.Park neighborhood and "is a good example of period architecture," representing the. Craftsman style in Santa Ana (Municipal Cone, Section 30-2.2). EXPLANATION OF CODES: California RegisterCriieria for Evaluation (Froin' California Office of Histpric'Preservation,_-Techhlcal!As'sistance" Bulletin #:7, September 4, 2001.). 3' It embodies the distinctive charactenshcs,of atype period region, or method of construction :or represenis, the vrorkiof a master;:or possesses high artistic values. California Historical ResourcbStatUs Code. (From'California Office'of,Historic Preservation Technical Assistance: Bulletin #8; November 2004): 5S3- Appears to be individually eligible forlocal,desi nati6n ihrou h survey evaluation. EXHIBIT 2 25A-23 State of California — The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other L Review or HRI It Trinomial NRHP Status Code P1. Other Identifier: 'P2. Location: 0 Not for Publication ■Unrestricted a. County Orange County -'b, USGS 7.5' Quad Date: September 5, 2017 'c. Address 515 West 191'' Streel City Santa_Ana Zip 92706 'e. Other Locational Data: APN 002-103-21 Tract: 256 Block: A Lot: 4 '03a. Description: (Describe, resource and is major elements. Include design, materials, condition, altemtioes,.size, setting, and t:oundaries.) Located on (he north side of West 191h Street, this building is a onestory,.single-family, residence constructed in The Crahsrnan style. Rectangular in plan. the building has a moderate -pitch, Front gable roof with two intersecting •gables,atthe cast elevation, and a gabled entry porch atthe south elevation. The roof consists of open eaves ii ilh fascia in the gables, displays exposed rafters and faux purlins. and is clad in contemporary asphalt shingle rooting ihi oughout. The exterior is clad in horizontal lappod siding, with the oxcopfion of the porch supports; which are clad in a mix or rough -Face and smooth stone at the piers, and the painted wood at the post. The primary entry is tanfhin the entry porch, and consists of a rectangular door. The exterior features triplinite fixed and casement windows, as well as singular casement and double -hung windows. A detached garage is located along the eastern parcel boundary, has a moderate -pitch gable root, and is accessed by a simple poured concrete driveway: There is an additional defached accessory building along the rear, north parcel boundary that is side gabled, but the use is unknown. The rectangular parcel is primarily landscapod with lawn, low trees, and various low' vegetation at the front setback- The buildings and overall property are in good conditioh_ . The building retains suf/icieir_I integrity to convoy its original design. 'P3b. Resource Attributes: ilisl allrihutes nri d eodesj NP2. Single-family Properly 'P4. Resources Present: ■Building OStrurlurr, ❑Ohject Mile 013islrict ❑Element of District ❑Other P5a. Photo �--- 'P71. Report Citation: (Cite survey report and other sources, orenter'nonel None. P5b. Photo: (view and data) South and east elevations, view northwest, August 2017 'P6. Date ConstructedlAge,and Sources: ohistoric 192YCriginal building permit 'P7. Owner and Address: Marvelle J. Rosfine Riekse 515 West 19' Street Santa Ana, CA 92700 'P8. Recorded by: Brian Matuk/Chalfel, Inc., for lhe' City of Santa Ana 20 Cfvic.Center Plaza 10-20 Santa Ana, CA 92702 •P9. Date Recorded: Septen'bor 0, 2017 'P10, SurvoyType: Intensive Survey Update 'Attachments: []None ❑Location Nlap []Sketch Map ■Continuation Shoot eBuilding, Structure, and Object Record OArrhaeologiraai Record []District Record ❑Linear Feature Record 17t•Ailiing Station Record Mock Art Record []Artifact Record ❑Photograph Record O Other (list) DPR 523A (1195) 25A-24 "Required Information State of California 'The Resources Agency Primary# ._ DEPARTMENT OF PARKS AND RECREATION HRI# BUILDINGR , STUCTURE, AND OBJECT RECORD Pago2'of 3 'NRHPStatus 'Code 5S3 neauw �e nou,e v, v. r.-ueu nuuae B1. Historic Name: Finch House 62. Common Name: Sarno B3. Orkjinal Use: Single-family Residence B4. Prpsant Uso: Single-family Residence_ '85.. Architectural Style: Craftsman '86. Construction History' (Construction date, altemtions., and Cato ofniterations): Conslructed 1923.. May 15,.1979. Garage, addition i0h Lalhr'oom. January 9, 1969. Reroof single-family residence with fear off. January 9, 1989. Rerooldelached.garage with tear off. '87.. Moved? ■No OYes .OUnknowd Date: Original Loc '88. Related Features: None. 89a. Architect:: Unknown b. Bullder. Unknown 'B10. Siginilicancec Theme Residenlial ArchitecO rd Area Santa Ana Period of Significance: 1023 Property Typb: Singlo-f imily'Rosrdcnco, Applicable Criteria: I (Discuss importance in terms of historical or architectural context as defined by theme, period,'and geogniphic scope: Also address Integrity) The Finch House is architocturalty signific:anl as a eharacteristir example iiffhe Craftsman style. 77iis house was ori5lnally constructed In 1923, anif,yvas valued of approximately 54,000, according to tlio or ginal bu8ding porrnif. While (hero sno architect irr gonlracfr in the original Lutidirty permll, .George F, oh vias tilted as the ownerat thearme orconstniciion. George.was a,9 Inter carpenter, and gaiderror, and according to city diroctones. lived of the property-Wth his wife Addi, C: Finch through of least 1956.• According to city.arectones; the next recorded occupant is.fisted as Ray. Samuel Fink, who moved to tho'propedy sono time before 1962. Fink was a fireman captain, acrd occupied the property wffh his wire, Dorothy Fink, through at least 1980. (See Continuation Sheet 3 of 4.) 611. Additional Resource Attributes::(List altributes ardcodes) '812. References: ;Alison Honer Dies at 84;" The Sanfa.Ana Journal,, September 21,.1961: Armor, Samuel. Hisfory.ofOrange County: 1921. "Builder of Honer Plaza Dies," Orange County Register, Soptombor 15, ?961. aly or Santa Ana Building Permits. (See Continuation Sheet,4 olA.) 813. Remarks: `B14. Evaluator' Brian Matuk/Chattel, Inc., for the City of Santa Ana 'Date of Evaluation' Soplembdi0, 2017 (This space reserved for official comments.) DPR 523B (1195) 25A-25 Sketch (Dis Map Q n C. n (n 5r5 w 15" Srroef Fin), tlu=, f7 Ross > r i i ,1000OUOV 0 •&K ], A ,. 103 ca Q .0 Q n O O.. O> 'y 4 r 0 ri r•r it "Required infornintion State of California—The Resources Agency Primary f1 DEPARTMENT OF PARKS AND RECREATION HRI R CONTINUATION SHEET Trinomial or J rcesource Name or x (yssignen ny mromer) rmcn House by Brian 10aluk 'Date September 6, 2017 O Continuation ❑ Update 'B10. Significance (continued): The Finch House is located in Floral Park, a neighborhood northwest of downtown Santa Ana hounded by West Sovonloonth Street, North Flower Street, Riverside Drive, and Broadway. Groves of oranges, avocados, and walnuts and viidely scattered ranch houses characterized this'area before 1920. Developer and builder Allison Honer (1897-1981), credited as the subdivider and builder of a major portion of northwest Santa Ana, arrived in Santa Ana from Beaver Falls, New York in 1922 (Talbert, pages'353-356). "Before nightfall on the day of his arrival, Mr: Honer purchased a parcel of laird. Anil that month, he began building custom homos in Santa Ana"(0rango Countv'Roltistcr, Scplcmbor'15, 1981). The parcel chosen became the Floral Park sobdivisioh between Seventeenth Street and Santiago Creek. "When built in, the is 1920s, the Floral Park homes we the most lavish and oxponsivo in the area. They sold tar about $45,000 oath"(OrrRgo Counfv Reoisfer- September 15, 1981). Revivattirchitecture in a wide variety of romantic styles was celebrated in the 1920s and 1930.3and Floral Parr showcased examples of the English Tudor, French Norman, Spanish Colonial, and Colonial Revival. The Allison Honer Construction Company went on to complete such notable projects es the 1935 Art Deco styled did Santa Ana City Half, se the El Toro Marine Baduring World War 11, and the 1960 Honer Shopping Plaza. Honer livod fn the neighborhood he had helped to create, of 615 West Santa Clara Avenue. In the laid 1920.3 and 1930s, another builder, Roy,Roscoe Russell (1.881--1965), continued dovoloping the groves of Floral Park. An early Russell project was his 1928 subdivision or Victoria Drive between West Nineteenth Street and West Santa Clara Avenue. The homes",vero quite grand and displayed various revival, styles, including Russolls own large, Colonial Revival mansion at 2009 Victoila Drive. in the early post World War 11 years, Floral Park continued its development as numerous, smaller, singlo-ramify houses wore built. Continuing in the Floral Park tradition, they were mostly revival In style. in the 1950s. low, horizontal Ranch Style houses completed the grov✓th of Floral Park. Today (2014) Floral Park maintains its identity as the premior neighborhood of Santa Ana, historically home to many affluent anti prgminonf citizens. The Finch House qualifies for listing in tine Santa Ana Register of Historical Properties under Criterion 1 for its exemplification of the dfsfrngufshing characteristics of the Craftsman style. Additionally, tho houso has been categorized as "Contributive"because It 'is a good example of period a(chitecture"In its presentation of the Craftsman style. All original exterior features of the Finch Houso are considerod to bo cheractor defining and should be preservod. Those features include, but may not be limited to: materials and finishes (siding, stone, wood); root configuration, materials, and treatment; massing and composition; fenestration (doers and windows); and archilecfural detailing (exposed rafters, purlins, and stone pattern at piers). '612. References (continued)'. Hawkins, G. William, The History of Orange County Madirfno, 1926-1980, Orange County Medical Association. "History of Floral Park." httpa't':•r:.^x.11oral-park.comlpage2.hlml Harris, Cyrl M. Aitcericn Architecture: An t8ustrated Enryckrpedid. New York, WW Norton, 1998. Marsh, Diann. Santa Ana, An Ithrstratod History, Encinitas. Heritage Publishing. 1994. McAlester, Virginia and Lee. A Field Guide to American Houses. New York. Alfred A. Knopf, 1984. National Rogisteroultotinl6A."Havl to Conitifela. the National Register Rogistrafion Form." Washington DC: NatIonal Register Branch. National Park Service, US Dept. of the interior, 1991. Office of Historic Prosory ition. "Instructions for Rocordicg Histoncai Rosour:oss" Sacramento: &larch 1995. Pieesents, fvlrs. J. E. Historyof Orange Counfv, Los Angeles: J. R. Fidneil & Soris Publishing Co., 1931. Vol.. 2, page 80 and VuL 3, page 142. Santa Ana and Orange County Directories, 1921-1980. Santa Ana History Room Collection, Santa Ana Public Library. Talbort, Thomas (editor -in chief). Historical Volume and Reference Works Including Biogroohical Sketches of Leading Citizens, Volume L Whittier, Historical Publishers, 1963. Whi fen, Marcus, American Architecture Since 1760. Cambridge: MIT Press, 1969. DPR 523L 25A-26 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. XXXX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-18 TO PLACE THE PROPERTY LOCATED AT 515 WEST NINETEENTH STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2017-17 PLACING SAID PROPERTY WITHIN THE `CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: = Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. On October 05, 2017 -the Historic Resources Commission held a duly noticed public hearing for ,the placement on the Santa Ana Register of Historical P_ roperties (Historic Resources Commission Application No. 2017-183), and categorization -_(Historic Resources Commission Categorization 'No. 2017-17) of the Finch House located at 515 West Nineteenth Street, Santa Ana. B. The Finch House has distinctive architectural features of the Craftsman style; and was built in 1923,by an unknown builder. C. This home qualifies for listing on the Santa Ana Register of Historical Properties and is eligible for categorization as Contributive. The Finch House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the Craftsman style. Additionally, the house has been categorized as "Contributive" because it "contributes to the overall character and history' of the Floral Park neighborhood and "is a good example of `period architecture," representing the Craftsman style in Santa Ana. Character -defining features of the Finch House that should be preserved include, but may not be limited to: materials and finishes; roof configuration, materials, and treatment; massing and composition; fenestration (doors and windows); and architectural detailing (exposed rafters, purlins, and stone pattern at piers). The roof consists of -open eaves with fascia in the gables, displays exposed rafters and faux purlins, and is clad in contemporary asphalt single roofing throughout. The exterior is clad in horizontal lapped siding, with the exception of the porch supports, which are clad in a mix of rough -face and smooth stone at the piers, and 25A-27 FREE RECORDING PURSUANT TO GOVERNMENT CODE§27383 the painted wood at the post. The primary entry is within the entry porch, and consists of a rectangular door. The exterior features tripartite fixed and casement windows, as well as singular casement and double -hung windows D. The legal owner of the property is IvIarvelle J. Rostine Riekse E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. F. The subject property meets the minimal standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimal. -standards for placement in the Contributive category pursuant to Sectioh.'30-2.2(3) of the Santa Ana Municipal Code. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as .these actions are designed to preserve 'historic resources. Categorical Exemption No. ER -2017-101 will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana after conducting the public hearing, hereby, approyes: A. Historic. Resources Commission -Application No. 2017-18 to place the Finch House located at 515 West Nineteenth Street, Santa Ana, 92706 on the historical register, and B. Historic: Register Categorization located at 515 West Nineteenth_ Contributive category. No. 2017-17 placing the Finch House Street, Santa Ana, 92706 within the These decisions are based upon the evidence submitted at the above said hearing, -which includes, but is not limited to: the Staff report and exhibits attached thereto; the report entitled "Historical,Property Description' and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject -property, a report entitled "Historical Property Description" Is on file with the Planning Division, and is hereby approved and adopted, and together with the staff report and this resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this resolution. in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorders Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. ADOPTED this 5th day of October, 2017. 25A-28 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 Alberta Christy Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney = AYES: Commission NOES: Commission members ABSTAIN: Commission members NOT PRESENT: Commission members CERTIFICATE OF ATTESTATION AND ORIGINALITY I, ROSA BARELA, Acting Commission Secretary,, do hereby attest to and certify the attached Resolution No. XXXX to be the original resolution adopted. by Historic. Resources Commission of the City of Santa Ana on October 5, 2017. Date: Acting Commission Secretary City of Santa Ana 25A-29 FREE RECORDING PURSUANT TO :GOVERNMENT;CODE §27383 LEGAL DESCRIPTION APN I Address7 Legal Description Owner: Nahies 002-103=21 515 West Nineteenth CITY OF SANTA ANA, IN THE Marvelle I Street COUNTY OF ORANGE, Rostine Riekse STATE OF CALIFORNIA, LOT 4 IN BLOCK A. TRACT NO. 256„ AS PER MAP RECORDED IN BOOK 14, PAGES 28 OF MISCELLANEOUS hIA,P,S, RECORDS OF ORANGE COUNTY 25A-30 REQUEST FOR Historic Resources Commission Action HISTORIC RESOURCES COMMISSION MEETING DATE: OCTOBER 5, 2017 TITLE; 5F = 1 q�,1tr- HISTORIC RESOURCES COMMISSION SECRETARY PUBLIC HEARING — HISTORIC RESOURCES COMMISSION APPLICATION NO, 2017-19, HISTORIC REGISTER CATEGORIZATION NO. 2017-18, AND HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2017-23 FOR PROPERTY LOCATED AT 2544 NORTH FRENCH STREET {STRATEGIC PLAN NOS. 5,2; 5,3} Prepared by Ivan M. Flores n Acting Executiyd Direct r RECOMMENDED ACTION APPROVED ❑ As Recommerided ❑ As Amended ❑ Set Publir Hearing For CONTINUED TO Acting Pleinning- tanager 1. Adopt a resolution 'approving Historic Resources Commission Application No. 2017-19 and Historic Register Categorization No. 2017-18. 2. Recommend that the City Council authorize the City ,Manager and Clerk of the Council to execute the attached Mills Act agreement with Jeffrey Martinez and Martha Martinez, subject to non -substantive changes approved by the City Manager and City Attorney. Request of Applicant Jeffrey Martinez and Martha Martinez are requesting approval to designate an existing residence located at 2544 North French Street to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. Project Location and Site Description The subject property consists of a 2,073 -square -foot, Ranch style residence and,detached garage on a 8,960 -square -foot residential lot (Exhibit 1). Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS -2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana EXHIBIT B3 25A-31 HRCA No. 2017-19, HRC No. 2017-18 HPPA No. 2017-23 October 5, 2017 Page'2 Municipal Code (SAMC). This project entails applying the selection criteria established in Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation to the Santa Ana Register of Historical Properties. The first criterion for selection requires that the structures be 50 or more years old. The structure identified meets the minimum selection criteria for inclusion on the Santa Ana Register of Historical Properties pursuant to criteria contained in Section. 30-2 of.the Santa Ana Municipal Code as the structure is 63 years old. No known code violations exist on record for this property. The property, -recognized as the E. L. and H. Smith House, has distinctive architectural features of the Ranch style, and was built in 1954 by Jasper Farney. While the style includes several variants, a basic set of character -defining features. applies to most examples. In form and massing, the style evokes a sprawling ranch that developed over time, with a central block extended by Wings of varying roof heights. Generally L-shaped or U-shaped in plan, the Ranch House typically has a one-story profile with strong horizontal emphasis expressed through a low pitched or flat roof with wide overhanging eaves. Asymmetrical in design, the Ranch House is often sheathed in and accented with rustic materials such as board -and -batten siding, high brick foundations; art stone, and wood shake roofs. Indoor -outdoor integration is achieved through the use of recessed or extended porches, set low to the ground, and the generous use of large picture, ribbon, or corner windows. Window detailing can include wood frames, decorative shutters, and diamond-pattemed muntins. Ornamentation includes rusticated elements, such as carved porch supports and exposed rafters; uneven rakes and flared eaves, and faux dovecotes and bird houses. Character defining features of the E. L. and H. Smith House that should be preserved include, but may not be limited to: materials and finishes (siding); roof configuration, materials, and treatment; massing and composition; fenestration (doors and windows); and architectural detailing (exposed rafters) (Exhibit 2). It is recommended that the house be designated to the Santa Ana Register of Historical Properties and categorized as "Contributive" because because it "contributes to the overall character and history" of the Park Santiago neighborhood and "is a good example of period architecture," representing the Ranch style in Santa Ana. �iIIlE3:L3i: Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible proPerties (Exhibit 3). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register. The agreement provides monetary incentive to the property owner in the form of a property tax reduction in exchange for.the owners voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include; 25A-32 HRCA No. 2017-19, HRC No. 2017-18 HPPA No. 2017-23 October 5, 2017 Page 3 • Long term preservation of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase Historic structures • Discourages inappropriate alterations to'the property The property has no identified unauthorized modifications, and all permitted alterations have been deemed to comply with the Secretary of Interiors.Standards for Rehabilitation. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement, Public Notification The subject site is located within the Park Santiago Neighborhood Association. The president of this neighborhood association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice; advertising this public hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 500 feet of the project site. At the time of this printing, no correspondence, either written or electronic, had been received from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve a historic resource. Categorical Exemption No. ER -2017-102 will be filed forthis.project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Engagement & Sustainability, Objective No. 2 (expand opportunities for .environmental sustainability) and Objective No. 3 (facilitate diverse housing support efforts to preserve and improve the livability of Santa Ana neighborhoods). ��li� eller— l\-( lh �— Ivan M. Flores Planning Technician IMF:jm S:HRCr2017125a4 N French.hrm Exhibits 1. 500' Radius Map 2. Department of Parks and Recreation Form 3. Mills Act Agreement 25A-33 Health, Livability, conservation and opportunities and r1 V I' q5 h<e! M 800' RADIUS HRC 2017-18/HRCA 2017-19/HPPA 2017-23 2544 NORTH FRENCH STREET E. L. AND H, SMITH HOUSE PLANNING AND BUILDING AGENCY EXHIBIT 1 25A-34 EXECUTIVE SUMMARY 2544 North French Street Santa Ana, CA 92706 NAME The E. L. and H. Smith House REF. NO. ADDRESS 2544 North French Street CITY Santa Ana ZIP 1 92700 ORANGE COUNTY YEAR BUILT 1954 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT None NEIGHBORHOOD Park Santiago CALIF. REGISTER CRITERIA FOR EVALUATION C/3 CALIFORNIA REGISTER STATUS CODE 5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: Ranch Widely published In Sunset and House Beautiful magazines, the Ranch House dominated post -World War II residential expansion and represented the most popular house form in the United States from the 1950s through 1970s. The Ranch House originated in the 1930s designs of Southern California architect Cliff May, who sought to reinvent the west's vernacular housing traditions by combining the form and massing of the traditional ranch house with a modernist's concern for informality, expressed in materials and plan, and indoor -outdoor integration. While the style includes several variants, a basic set of character -defining features applies to most examples. In form and massing, the style evokes a sprawling ranch that developed over time, with a central block extended by wings of varying roof heights: Generally L-shaped or U-shaped in plan, the Ranch House typically has a one-story profile with strong horizontal emphasis expressed through a low pitched or flat roof with wide overhanging eaves. Asymmetrical in design, the Ranch House is often sheathed in and accented with rustic materials such as board -and -batten siding, high brick foundations, art stone, and wood shake roofs. Indoor -outdoor Integration is achieved through the use of recessed or extended porches, set low to the ground, and the generous use of large picture, ribbon, or corner windows. Window detailing can Include wood frames, decorative shutters, and diamond -patterned muntins. Ornamentation includes rusticated elements, such as carved porch supports and exposed rafters, uneven rakes and flared eaves, and faux dovecotes and bird houses. SU MMARYJCON C LUSION: 2544 North French Street qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the Ranch style. Additionally, the house has been categorized as "Contributive" because it "contributes to the overall character and history" of the Park Santiago neighborhood and "is a good example of period architecture," representing the Ranch style in Santa Ana (Municipal Code, Section 30-2.2). EXPLANATION OF.CODES:. • California Register Criteria for Evaluation. (From California Office.of Historic Preservation, Technical Assistance Bulletin P7, September 4, -2001.) 3 It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • California Historical Resource Status Code. (From California Office of Historic Preservation Technical Assistance Bulletin #8, November 2004). 5S3 Appears to be individually eligible for local designation through survey evaluation. EXHIBIT 2 25A-35 State of California — The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other Ltstl Review Cc or Primary HRI #_ NRHP Status Code recorder) P1. Other Identifier: •P2. Location: ONot far Publication ■Unrestricted 'a. County Orange County 'b. USGS 7.5' Quad Date: September 7, 2017 'c. Address 2544 North French Street City Santa Aria Zip 92706, 'e. Other Locational Data: APN 396-432-01 Tract: 1473 Lot: 44 'P3a. Description:. (Describe resource and its major eleneals. Include desi0n, rualeiials, wndibun, alteralions,:size, setfin0, and boundaries.) Located on the cast side of North French Stroot at the intersection of East Virginia Avenue, this building is a one=story• single -fatuity residence constructed in the Ranch style. Generally rectangular in plan, the building has a moderate -pitch, side gable, roof with intcrsccfing gables at the southern portion of the cast elevation. The roof has iittlo to no elves in the gable, ends,. exposed rafter taifs, nd is clad in what appears to be wood shingle teofing. The exterior is dad in vertical board-and- ballen slding with horizontal lapped siding in the, gable ends. The primary ontry is situated within an entry parch, nrid consists of a rectangular door with diarnovd pattern:glazing in the upper, half. The asymmetrical exterior features double -hung, casement windows, and groups of fixed windows, aft with distinctive diamond-shapod inunlins. Some windows at the bast oldvallon aro flanked by decorative wood shutters, A detached garage with a moderafe-pitch side gable roof is located to the west of the residence, and is accessed by a simp:p poured concrete driveway at East Virginia Averrue. There is a shed - roofed addition off the westelevation of the residence that appears to have been constructed in 0973. The buildings and overall properly are in good condition, The building refaia3 sufficient integrity to convey its original design. 'P3b. Resource Attributes: (list attributes and codes) HP2, Single-lard/Property W. Resources Present. ■Building ❑Structure OObject OSile ❑District OElemenl of District• ❑Other 'P11. Report Citation: {Cee survey report and olhe: sources.,or enter'none') None. P5b. Photo: (Vow and data) East and north elevations, view southwest, August 2017 'P6. Date Constructed/Ageand Sources: ■historic 7954/0n'ginat building permit '137. Owner and Address: Jeffrey & Martha flartinoz 2544 North French Street Sanla Ana, CA 92706 'P8. Recorded by: Brian MatuldChattel, lrc., for the City of Santa Ana 20 Civic. Center Plaza 10-20 Santa Ana, CA 92702 'Pg. Date Recorded: September 7, 2017 "P10. Survey Type: Intensive Survey Update 'Attachments: C1 None OLocation fvlap OSkelch heap mContinuation Sheet oBuilding, Structure, and Object Record ❑Archaeological Record ODistrict Record OLinear Feature Record ❑Milling Station Record ❑Rock ArtRecord OArlifscl Record 0Ph0tngrnph Record O Othor (IIsi) DPR 523A(1195) 25A-36 'Required Information State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION BUILDING, STRUCTURE, AND.OSJECT RECORD Page 2 of 3 •NRNP Status Code 5S3 'Resource Name or #: 2544 North French Street B1. Historic Name: E. L. and H. Smith House B2. Common Name: Same B3. Original Use: Single-family Residence 64, Present Use: Single-family Residence '85. Architectural Style: Ranch '1316. Construction History: (Construction dato, alterations, and date of allemlions}. Constructed 1954. January 25, 1973. Hobby room, 54,500. fnfay 22, 2001. Remodel kitchen; replace four wiridows. '07. Moved? ■No Oyes ❑Unknown Date: OrlginalLocation: *B8. Related Features: None. B9a. Architect: Unknovm b. Builder. JaspeiPamey "B10. Significance: Theme RestdentialArchitecture Area .Santa Ana Period of Significance: 1954 Property Type: Singlo-family Rostdencn Applicable Criteria: 1 (Discuss Importance in terns of historical orarchitectural context as defined by theme, period; and gecgraphic scope. Also address integrity) 2544 North French,Sfreet is architecturally signitrcant as a characteristic, example of (fie Ranch style. This house was originally constructer! in 1954, and was valued at approximately $18,000, according to the original building permit. fNhile there is no architect in the original budding permit, the contractor and owner are listed as Jasper Famey Jasper Famcy was a contractor, and there is no evidence that he lived at the property, According to city directories, the first recorded occupants were E Lee and Helen M. Smith, who lived at the property from the time of construction through at least 1980. E. Lee was the president of the Smith Lee 8 Cu. insurance company based in Santa Ana. (See Continuation Sheet 3 of 4.) BI 1. Additional Rasourco Attributes: (List attributes and codes) _ " B12- References: City of Santa Ana Building Permits. Harris, Cyril M. American Architecture: An Illustrated Encvcfooed7a. i tistoric Maps, Santa Ana History Room, 1923. 1932, 1955. Marsh, Diann. Santa Ana, An Illustrated H.istnrv. Enciritas. Heritage Publishing, 1994. (Soo Confirmation Sheol 4 of 4.) 1313.,Remarks: '014. Evaluator: Brian Matuk7Chaftel, Inc., for fhe City of Santa -Ana `Date of Evaluation: September 7, 2017 (This space reserved for official comments.) DPR 523B (1195) 25A-37 New York, VAN Norton, 1998. Sketch Map 2544 North French Street The E. L. and H. Smifh a House 2 5 �jr fi V FRENCH `li OlI Oil O I I 21 �: 2a I 19 I I i I 'Required information State of California—The Resources Agency Primary 4 DEPARTMENT OF PARKS AND RECREATION- HRI # CONTINUATION SHEET Trinomial Page 3 of 3 Resource Name or # (Assigned by recorder) 2544 North French Street 'Recorded by Brian Mafuk "Date September 7, 2017 [K Continuation ❑ Update. '810. Significance (continued): 'Santa Ana was founded by William Spurgeon in 1809 as a specutatrve: town site on part of the Spanish land grant known as Rancho Santiago de Santa Ana. The civic and commercial corn of lho community was conterod around the intersection of Main :and Fourth Streets, Stimulated by the arrival of the Santa Fe Railroad and incorporation as a city in 1886, and selection as the seat of the newly created County of Orange in 1889, ffrd,cily grow outwards, with rosidontial neighborhoods' developing to lite, north, south, and oast of the city center. Agricultural uses predominated in Rhe outlying areas, with cultivated fields and or dotted with widely scaltered farmhouses. '2644 North French Street is located in the Park Santiago na,'ghbo(hood, hear the present northern city limits of Santa Ana and substantially horth of the original city coro. Thd neighborhood is bounded by Santiago Creek and Park on the iionli, East Seventeenth Street on the south, North Lincoln Avenue on the east, North Main Street on the wosi, and the 1-5 freeway on the s6uthwes7., In large part, these boundaries reflect the transportation fines that were constructed towards the end of the nineteenth century and at the beginning of the twentieth century, when the Pacific Electric interurban rarfroad ran up Main Street; the Atchison, Topeka, and Santa Fri tracks followed Lincoln; and the Southern Pacific Railroad dghf-of-way mirrorod the frcowayrouto. This aroa remaiped prrmatilyagrfcurtural wellinto tlhe 1920s. As of 19051 the'cify directories fisted around twenty households on East Santa Clarh, Twentioth'Stroot, "C Street" (row North Santiago Street), North Bush Strout and Noah Main Avenue, the only streets in the area at the lime.. The vast maidrity of the residents were ranchers. By 1911, the number of households had increased to about thirty, and Edgewood Road and Vakincia Street had been partially laid out, but most residents continued to list "mnchor"or "fruit grower"as their occupation In the city directories. This pattern of land use was eWdent on the 1912 plat map of the City, which illustrated two small, Craftsman -era subdivisions atong Bush north of Santa Clara and on Valencia and Poinsettia south of Twentieth Stroat, with the remaining area divided into larger agdrulfural parcels hold by approximately forty landowners. While the nroa cast cf Santloge Strout was not subdivided until after the mid -1920s, most of the present day streets wast of Santiago hart beehlaid out when the City was mapped in 1923. Ranching continued to he the most prevalent occupation In the neighborhood, but increasing numbers of professionals, small business owners, merchants, and people in service professions such as painfors, electricians, and carpenters made their homes in lire wesfern half of the neighborhood (luring the 1920s and 1930s. The area also attracted several city and county oflrcials, including the City Attorney (Z.B. West, Jr., 321 East Santa Clara Avenue), Counly Supervisor, First District (C.H,Chapman, 2315 North Santiago Street), County Surveyor (E.H. Irwin, 2407 North Santiago Street), and County Auditor (Voifram C. Jerome, 2422 Pcinsaltla Street). B9 April 1942, when the Sanborn Company first mapped the western half of the area, most of the lots had been improved with single-family homes, many in the revival styles popular during the 1920s and 1930s- Subsequent development of the eastern haft of the neighborhood and infill construction in the wostorn half displayed the simplified ranch style that emerged following World War 11. 2544 North French Street qualinos for listing in the Santa Ana Register of Historical Properties under Criterion i for its exemplification of the distinguishing characteristics of the Ranch style. Additianally, the house has boon catogori2od as "Contributive" because it `is a good example of period architecture"in itspresenlation of the Rench style. Ail original exfodor foatures of 2544 North French Street are considered lobe character deffning and should be preserved. Theso feafpres Include, but may not be limited to., materials and finishes (siding); roof configuration, materials; and treatment massing and composition; fenestration (doors anti windows); and architectural detailing (exposed tenors). `B12. References (continued): McAlester, Virginia and Lee. A Field Guide to Amerirnn Houses. Now York: Alfred A. Knopf, 1984. Plational Rogfsfor Sultetin 1SA. "Hari to Complete the National Register Registration Foan."'Nasiiingtan DC: Natrona! Register Branch, National Park Service, US Dept. of the Interior, 1991. Office pf Historic Preservation. "instructions for, Recording Historical Resources." Sacramento: March 1995. Orange County Plat Maps- 1912. Santa Arn and Orange County Directories. 1956-1980. Sania,Ana History Room Collection, Santa Arra Public, Libnhry. Md/fun, Marcus. AmanGan Architecture Since 1780.Cambridge: M1T Press, 1969. DPR 523L 25A-38 FREE RECORDING PURSUANT TO GOVERNMENT CODE § M83 RESOLUTION NO. XXXX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-19 TO PLACE THE PROPERTY LOCATED AT 2544 NORTH FRENCH STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2017-18 PLACING SAID PROPERTY WITHIN THE --:,CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY'OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the _City of Santa Ana hereby finds, determines and declares as follows: - A. On October 5, 2017 the Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2017-19)' -and. categorization (Historic Resources Commission Categorization No. 2017-18) of the E. L. and H. Smith House located at 2544 North -French Street, Santa Ana. B. The E. L. and H. Smith House has distinctive'architectueal features of the Ranch style, and was built in 1954 by Jasper Famey. C.- This home qualifies for listing on the Santa Ana Register of Historical Properties and is eligible for categorization as Contributive. The residence qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the Ranch style; Additionally, the house has been categorized as "Contributive" because it "contributes to the overall character and history' of the Park Santiago neighborhood and "is a good example of period architecture," representing the Ranch style in Santa. Character -defining features of the Smith House that should be preserved include, but may not be limited to; materials and finishes (siding); roof configuration, materials, and treatment; massing and composition; fenestration (doors and windows); and architectural detailing (exposed rafters) D. The legal owners of the property are Jeffrey Martinez and Martha Martinez. E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. 25A-39 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 F. The subject property meets the minimal standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimal standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve historic resources. Categorical Exemption No. ER -2017-102 will be filed for this project. Section 3. The Historic'Resources Commisslon,of the City of Santa Ana after conducting the public hearing hereby approves: " A. Historic Resources Com mission: Application N6.2017-19 to place the E.L and H.:'Smith House located at' 2544 North French Street, Santa Ana, 92706 on the historical register, and B. Historic Resister Categorization 'No. 2017-18 placing the Smith House. located at 2544 North French Street. ,Santa Ana, 92706, within the Contributive category.`,; These decisions are based upon the evidence, submitted at the above said hearing, which includes, but is not limited to: the Staff- report and exhibits attached thereto; the reportentitled "Historical Property Description`' and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject property, a report entitled "Historical Property Description" is on file with the -Planning Division, and is hereby approved and adopted, and together with the staff report and this' resolution, justify the findings for placement on the City of Santa Ana Register of Historical'Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorders Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. ADOPTED this 5th day of October, 2017. Alberta Christy Chairperson 25A-40 FREE RECORDING PURSUANT TO GOVERNMENT CODE §27383 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Lisa Storck Assistant City Attorney AYES: Commission members NOES: Commission members - ABSTAIN: Commission members NOT PRESENT: Commission members CERTIFICATE:OF ATTESTATION AND ORIGINALITY I, ROSA BARELA, Acting Commission Secretary, do hereby attest to and certify the attached - Resolution No. XXXX to be _ the original .resolution adopted by Historic Resources Commission of the'City of Santa Ana on October 5, 2017. Date: Acting Commission Secretary City of Santa Ana 25A-41 FREE RECORDING PURSUANT TO GOVERNMENT CODE §27383 LEGAL DESCRIPTION APN Address Legal Description Owner Names 396-432-01 2544 North French Street THE CITY OF SANTA ANA, Jeffrey Martinez COUNTY OF ORANGE, and Martha STATE OF CALIFORNIA, 'ON Martinez LOT 44, TRACT 1473 AS PER MAP RECORDED IN BOOK 45 PAGE 8 INCLUSIVE OF MISCELLANOUES MAPS; IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY 25A-42 REQUEST FOR .� Historic Resources Commission Action HSTORIC RESOURCES COMMSSION MEETNG DATE: QCTOBER"5, 2017 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT. NO. 2017-25 FOR THE PROPERTY LOCATED AT 903 EAST STAFFORD STREET (STRATEGIC PLAN NOS. 5,`2; 5,3) P�epar&l try Ricardo:Soto HISTORIC RESOURCES COMMISSION SECRETARY APPROVED lD As Recommended 1] As Amended 0 Set Public liearing For CONTINUED 70 k A4 Acting Exec Itiv Directo Acting P nning anager RECOMMENDED ACTCO Recommend that the City Council authorize the the attached Mills Act agreement with Andrew approved by the City Manager and City Attorney. Request of Applicant City Manager and Clerk of the Council to execute L. Chalkley, subject to non-sub"stantive changes Andrew L. Chalkley is requesting approval to execute a Mills Act agreement with the City of Santa Ana at an existing residence located at 903 East Stafford Street that is currently listed on the Santa Ana Register of Historical Properties. Project Location and Site Descrintion The subject property, known as the Perry House, is located at 903 East Stafford Street and consists of an 850 -square -fool, Queen Anne (Late Victorian) style residence and detached garage on a 3,500 - square -foot residential lot (Exhibit 1). Analysis of the Issues Ordinance No: NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 2). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The agreement provides monetary incentive to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain -the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside .from the tax savings, the benefits include: EXHIBIT B4 25A-43 HP PA No. 2017-25 October 5, 2017 Page 2 Long term preservation.of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation •. Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property The property has no identified unauthorized modifications and is preserved in its original condition. Upon consideration of.the application, it is recommended that the City enter into a Historic Property Preservation Agreement. CEQA Compliance In accordance with the California Environmental Quality Act; the recommended action is exempt from further review under Section 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No. ER -2017-104 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective, No. 2 (expand opportunities for conservation and environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). Ricafdo Soto Associate Planner RS:jm 'SAIRG-701 V003 E S:a`ford.hrc Exhibits 1. 500' Radius Map 2. Mills Act Agreement 25A-44 HPPA 2017-25 903 EAST STAFFORD STREET PERRY HOUSE PLANNING AND BUILDING AGENCY EXHIBIT 1 25A-45 EXECUTIVE SUMMARY PERRY HOUSE 903 East Stafford Street .Santa Ana, CA 92701 NAME Perry House: REV. N0. 9() ADDRESS 903 East Stafford Street CITY Santa Ana I ZIP 1 62-01 ORANGE COUNTY YEAR BUILT 1898 LOCAL REGISTERCATEGORYi Contributive 1 DISTRICT NIA NEIGBORHOOD. H 'Logan NATIONAL [tECiISTERCRITERIA l:O]tFNIALtJA*1*10.'4� I -A,,C SSI Location: E] Not lur 1'ublicaflon 0 Unrestricted ❑ Preh'istoric ®Historic' ❑ Both ARCHITECfim,u,STvu: Queen AimeqateVimr6n) The Queen Anne (Late Victorian) (also itnown as die Q !weitty.years of due nineteenth centuryin the Nest, and include the'front-fileing gable robf;'ordrae decoration 61 su6,ccs through the e use of applied . ornamentation , aentat I ion of w( commercial examples often incon"Ornted bay windows, els,with the addition Medieval modof other regional ini California alid indiesouthern states (M Aleste c -2 sr,'20 WATMARY/CONCLUS ION: a Anne Revival) dominated residential architectural design during - the last nearly as in - flu6afial on early connin-erchil buildings:, Idenlirying icature.N 6d or metal along the cwvc and in die gable clul! a,vbidarfee of flit wall 61' inetaF and classical c6luruits'or pilasters. M61ii-storied residential , and lfi ienes topped with lowers. The style borrowed heavily front late, reta.iious. Some of the most well developed.exampl6i can bo found in. The Perrydiouse is included in the Snida Ada Register of Historical Property and has been categorized as'.'Cotitribtitive""bL-cau.,.t, it. "contributes to the overall character" of die Logan neighborhood,a warkiru, - class siren that developed wills vernacular homes of modest sale and front the 1910s hasbeenassocirtted %vitli'dic Latino C011HILUnity. Further, the Perry House"ii & good example" or Queen Anne (true Victorian) influenced arohitecture, and `'has nut been substanlially,alleied" (Municipal Code, Section 30c2.2). EXPL,61401ONP, F COPES;, ppeadis"70f histiructions whose.componeriLs may -lack individual distinction, ionarRecordti�gll'is Acal Resources,, Office - e dkifistbrlic l Register Status Code; (From Apliendix 2 661,11structionsTo t6 551 1,; se listed or degignared'under an existing local ordinance, oris eligible for such lislin _ Widely 9or, acsign-iiuon ... 1.1110"I'Suffind n 90 F.", (I 'my Mom) Exhibit.B 25A-46 State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # PRIMARY RECORD Trinomial NRHP Status_ Code Other Listings Review Code Reviewer Date Pago 1 of 3 Resource name(s) or number(ass:Oned by recorder) Perry House Pi. Other Identifier: 'P2. Location: ❑Not for Publication ■Unrestricted 'a. County Orange_County •h. USGS 7.5' Quad TCA 1725 Date: 'c. Address 903 East Stafford Street City Santa Ana Zip 92701 'e. Other Locational Data: Assessor's Parcel Number: 398-193-10 Hawkins Acid Block: B W 70Ft Lot: 26 '153a. Description: (Descdoe resource and its major elements. Include design, materia".s, cundilion, alterations, size, satlinj, and boundaries,) An unusual roof configuration, consisting of a hipped section at the west end of the building and a side gable accented by a central front gable over the. eastern two-lhifds, distinguishes this one-story cottage. Shiplap trimmed with corner boards shonthes the building,. with patterned shingles in the gable ends. A small vent piercos the eastern gablo loco. Two double- hung svindows are widely spaced, on the /made of the sid"abled wing and placed so that their heads abut the eaves_ Spanning the lasado of tho wast'wing, a port-roofad porch is enclosed by posts and a low will covered in narrow clapboard. The cottage appears to be unaltered. •123b. Resource Attributes: (list attributes and codes) HP2 Single-family Properly •P4. Resources Present: ■Building ❑Structure ❑Object OSile, ❑District DElemenl of District []Other '17.11. Report Citation: (Gte survey report and other sources, or enter'none") City of Santa Ana. Santa Ana's Historic, Treasures, Los, Kathleen. "Historic Resources inventory Logan,"April 1980. P5b. Photo: (view and date) South and east elevations July 2001 'P6. Date Constructed/Age and Sources:ohistoric 1896/Source: Santa Ana's Historic Treasures 'P7. Owner and Address: C. Rodrigues 8417 Slgby Avenue Downey, CA 90241 `P8. Recorded by: Lostie J, Houmann, Peter C, Monrzzi SA1C 35 S: Raymond Ave. # 204 Pasadena, CA 91105 'P9. Date Recorded: January 28, 2002 'P10. Survey Type: Intensive. Survey Updaw Attachments: ONone ❑Location Map OSketch Map rContinualion Sheet ■Building, Structure, and Object Record ElAmhaeological Record ❑District Record ❑Linear Feature Record ❑tilllinp Station Record ORock Art Record OArtifact Record []Photograph Record ❑ Other (list) DPR 523A (1195) 25A-47 'Required Information State of California—The Resources Agency Primary,# - DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD, Page 2 of 3 •NRHP Status Code 5S1 'Resource Name or;F: Pony House B1. Historic Namo: Perry Houso B2, Common Name: Same B3. original Use: Single-family Residence B4. Present Use: Single-family Rosidence '85. Architectural Style: Queen Anne (Late Victorian) '136. Construction History: (Oonslruction date. alte:alions, and dale of alterations): Consfructod in 1898. December 5, 1947. Reroof; "87. Moved? ■No ❑Yes ❑Unknown Date: Original Location: '138. Related Features: Nano: 89a. Architect: Unknown b. Builder Unknown `B10. Significance: Theme Residentlal Architecture Area Santa Ana Period of Signlficance:'Circa 1860-1929 Property Type: Single-family.Rosidonce Applicable Criteria: A, C (Dist:uss impdaance in terms of historical or architectural oon(ekt as defined by theme, period. and geographic scope. Also address integrity), The Perry House is archileciurally significanl as an Infacl example of its type, the vernacular Queen Anno (Late Victorian) cottage, it is also historically significant as a contributor to tho character of the Logan neighborhood that is defined by working class homes of similar age, type, and scale. According to previous research, it was built by Lloyd Perry, a plaslamr. In 1912, Goorgo Reasoner occupier! tho houso, followed by Rudolph and Eva Franke, who were related to the Frankes who resided at 904 East Stafford. Rudolph, who lived briefly at 904, was employedtiko his relatives at the Griffith Lumber Company where he was a sash and door maker: By 1918, the Frankes had left and Claude Stoddard, a weaver for the &fission Woolen Miffs on Washfngton Street, and Sarah Stoddard had moved into the house (Treasures . Santa Ana was foundod by William Spurgoon in 1869 as a speculative town site on part of the Spanish land grant known as Rancho Santiago de Santa Ana. Early growth and development were stimulated by the arrival or the Southern Pacific Railroad in 1678 and thri Santa Fe Railroad in 1886. Following its inrerporation as a city in 1886, Santa Ana was recognized as one of the leading communities in the area in 1689 when it became the scat of the newly created County of Orange. (Soo Continuation Shoot 3 of 3.) B11. Additional Resource Attributes: (List attributes and codes) 'B12. References: City of Santa Ana Building Permits Santa Arra History Rooni Collection. Santa Ana Public Library 'Sanborn Maps .(See Continuation Sheet 3 of 3.) B13. Remarks: '1314. Evaluator: Leslie J. Heumann 'Date of Evaluation: January 23, 2002 (This space reserved for official comments.) DPR 5236 (1195) 25A-48 Sketch iY1ap i I @ � , =SrER ,rrRrEr y n :O ("� i lip ;J �T- Perry House 903 East Stafford Stroot �• i I @ � , L :O 'Required information State of California—The Resources Agency Primary it DEPARTMENT OF PARKS AND RECREATION HRI 9 CONTINUATION SHEET Tiinorniak Df 3 Resource Nal by Lostle J. Heumana, Peter C. Mcruzzt, SAIC 'B10. Significance (continued): or d (Assigned Dy recaroer) Perry mouse *Date January 28, 2002 I] Continuation 0 Update Subdivided in 1887 as the Hawkins Addition, the small, working class neighborhood now known as Logan developed adjacent to the railroad tracks in the east end of Santa Ana. Bordered by Lincoln Avenue, Santa Arta Boulevard, Santiago Avenue, and what is now the Santa Ana Freeway, the neighborhood is characterized by unusually small lots upon which Iwo and three room collages were buil!. Prior to 1910, residents of the area were almost entirely American and European -born laborors and craftspeople. City directories listed, area occupations such as mechanic, dressmaker, peed turner, prossman, and plasterer. By 1910, forty percent of Logan households had Spanish surnames, and residents were employed primarily in agriculture. This small Latino community, now Identified as a barrio, was centered next to the tracks on Lincoln Strout and nearby Logan Street and the eastern end of Stafford,. Angles resided mostly in the northwestern corner of the area. Neighborhood houses tended to be simple wooden structures of modes! design. Vernacular interpretations included a mix of Queen Arno, SticklEastlake, Colonial Revival, artd Craftsman cottages. In 1929 Logan tvas zoned industrial to encourage industry to locate away from downtown and nearer the railroad tracks, resulting in a` mix of residential arid industrial uses. Fmm 1950 until 1979, zoning restrictions actually prevented the construction,of new homes, including home additions. Following repeal of these restrictions in 1979, each parcel became individually zoned to allow more flexibility for homeowners to use and improve their property. Logan is significant as aneighborhood of Santa Ana that has historically'been associated with the Latino community. It survives as an onclava of lato nineteenth and early twentieth century unpmtonlious housing of modest scale. ThnPorry House is representative of the significant period of development of the Logan neighborhood, in terms of its age, scale, and vernacular Queen Anna (Late Victorian) styling. It exhibits the decorated gable ands and elongated double -hung sash 'that are among the characteristics of its building type. The Perry House is included in the Santa Ana Register of Historical Property and has been categ(Azed as "Contributive." There are no obvious alterations to tho'house, which is remarkably intact. Chararter-dofrning exterior features of the Perry House which should be preserved include, but may not be limited to. materials and finishes (siding,_ shingling); roofcornrrguration and detailing; original windows and doors; porch; and architectural detaffing. '512. References (continued): Harris, Cyril IA American Architecture: An ffiuslratedEncvckrpedia. New York, WW Norton, 1998. Marsh, Diann. Santa Ana, An Illustrated History. Encinitas, Heritage Publishing, 1994. McAlester, Virginia and Lee. A Field Guide to American Houses. New York: Allred A. Knopf, 1984, National Register Bulletin 16A. 'How to Complete the National Register Registration Form.' Washington DC: National Register Branch, National Park Service, US Dept, of the Interior, 1991. Office of Historic Preservation. "Instructions for Recording Historical Resources. " Sacramento., March 1995, Whitten, Marcus, American Architecture Since 1780. Cambridge: ANT Press, 1909. Santa Ana City Directory, 1910-1911. Haas, MoryLisboth. "The Barrios of Santa Ana:,Communily, Class,.and Urbanization, 1850.1947." Doctoral dissertation in History. University of California, Irvine, 1985: "Losing the Small -Town Fool." The Orange County Rcirister, August 4, 1994. "Homes and Shops at Odds." Los Angeles Times, September 4, 1997, I In fact, the Sanborn Plops of Santa Ana (1906-1925) staiod: "All occuparrOos in (hose hvo blorks:xe Moxiran." DPR 523L 25A-49 25A-50 's, REQUEST FOR Historic Resources Commission Action HISTORIC RESOURCES COMMISSION MEEnNG DATE: OCTOBER 5, 2017 TITLE: PUBLIC HEARING - HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-21, HISTORIC REGISTER CATEGORIZATION NO. "2017-20, AND HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2017.26 FOR PROPERTY LOCATED AT 1121 SOUTH HICKORY STREET (STRATEGIC PLAN NOS. 5,2;,5,3) Prepared hi Manuel J. Escamilla Acting Execu Ive Direc r RECOMMENDED ACTION HISTORIC RESOURCES COMMISSION SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For CONTINUED TO Acting PlaaVnager 1. Adopt a resolution approving Historic Resources Commission Application No. 2017-21 and Historic Register Categorization No. 2017-20. 2. Recommend that the City Council authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreement v0th Jillian N. Andrews, subject -to non -substantive changes approved by the City Manager and City Attorney. Request of Applicant Jillian N. Andrews is requesting approval to designate an existing residence located at 1121 South Hickory Street to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. Project Location and Site Description The subject property is located at 1121 South Hickory Street and consists of a 1,054 -square -foot, Queen Anne style residence and detached garage on a 5,400 -square -foot residential lot (Exhibit 1). Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS -23663 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails applying the selection criteria established in EXHIBIT B5 25A-51 HRCA No, 2017-21, HRC, No. 2017-20 .HPPA No. 2017-26 October 5, 2017 Page 2 Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic, desig nation to the Santa Aria Register of Historical Properties. The first criterion for selection.requires that the structures be 50 or more years old.. The structure identified meets the minimum selection criteria for inclusion on the Santa Ana. Register of Historical Properties pursuant to criteria contained in Section 30-2 of the Santa Ana Municipal Code as the property is 110 years old. No known code violations exist on record for this property. The property, recognized as the Eastin House, has distinctive architectural features of the Queen Anne style, and was built in 1907 by an unknown architect. All original exterior features of the Eastin House are considered to be character defining and should be preserved. Character defining features of the Eastin House include, but may not be limited to materials and 'finishes (siding, fishscale shingles); roof configuration, materials, and treatment; massing and composition; fenestration (original windows); and porch configuration, materials, and composition (Exhibit 2). It. is recommended that the house be designated to the Santa Ana Register of Historical Properties and categorized as "Contributive" for its exemplification of the distinguishing characteristics of the QueenAnne style. Additionally, the house has been categorized as "Contributive" because it "contributes to the overall character and history" of Santa Ana and "is a good example of period architecture," representing the Queen Anne style. Mills Act Agreement Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 3). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register. The agreement provides monetary incentive to the property owner in the form of a property tax reduction in exchange for the.owner s voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valualion.method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tail savings, the benefits include: • Long term,preservalion of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property 25A-52 HRCA No. 2017-21, HRC No. 2017-20 HPPA No. 2017-26 October 5, 2017 Page 3 Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement. Public Notification The subject site is located within the Eastside Neighborhood Association boundaries. The president of this neighborhood association was notified by mail 10 days prior to this, public hearing. In addition, the project site' was posted with a notice advertising this public hearing, a notice was published In the Orange County Reporter and mailed notices were sent to all property owners within 500 feet. of the project site. At the time of this printing, no correspondence, .either written or electronic, had been received from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve a historic resource. Categorical Exemption No. ER -2017-105 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective No. 2 (expand opportunities for conservation 'and environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana, neighborhoods). Exhibits 1. 500' Radius Map 2. Department of Parks and Recreation Form 3. Mills Act Agreement 25A-53 jL Manuel J. Escamilla Planning Assistant MJE:jm 8:HRCe2017!1121 S Hicknry.hrc Exhibits 1. 500' Radius Map 2. Department of Parks and Recreation Form 3. Mills Act Agreement 25A-53 I ,qtr, jrl 500' RADIUS HRC 201720/HRCA 2017-21/HPPA'2017-26 11.21 SOUTH HICKORY STREET EASTIN HOUSE PLANNING AND BUILDING AGENCY t4 EXECUTIVE SUMMARY Eastin House 1121 South Hickory Street Santa Ana, CA 92701 NAME Eastin House REF. NO. ADDRESS 1121 South Hickory Street CITY Santa Ana ZIP 1 92701 ORANGE COUNTY YEAR BUILT 1907 LOCAL REGISTER CATEGORY: Contributive - HISTORIC DISTRICT None NEIGHBORHOOD I Eastside CALIF. REGISTER CRITERIA FOR EVALUATION C!3 CALIFORNIA REGISTER STATUS CODE 5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: Queen Anne The Queen Anne (Late Victorian) (also known as the Queen Anne Revival) dominated residential architectural design during the last twenty years of the nineteenth century in the West, and was nearly as -influential on early commercial buildings. Identifying features include the front -facing gable roof; ornate decoration of wood or'metal along the cave and in the gable end; avoidance of flat wall surfaces through tho use of applied ornamentation of wood or metal; and classical columns or pilasters. Multi -storied residential and commercial examples often incorporated bay windows, sometimes topped with towers. The style borrowed heavily from tate Medieval models, with the addition of other regional interpretations. Some of the most well-developed examples can be found in California and in the southern stales (McAlester, 263488). SUMMARYICONCLU SION: The Eastin House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the Queen Anne style. Additionally, the house has been categorized as "Contributive" because it "contributes to the overall character and history" of Santa Ana and "is a good example of period architecture," representing the Queen Anne style (Municipal Code, Section 30-2.2). EXPLANATION OF CODES: • California Register Criteria for Evaluation, (From California Office: of Historic Preservation, Technical Assistance Bulletin 0 7, September 4, 2001.) 3 It embodies the distinctive characteristics of a type, period, region, or melhod'or construction, or repiesents'the work of a master, or possesses high artistic values. • ' California Historical Resource Status Code. (From California Office of Historic Preservation Technical Assistance Bulletin 98, November 2004).: 5S3 Appears to be individually eligible for local designation throuh survey evaluation. EXHIBIT 2 25A-55 State of California—The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other L Review or Primary HRI #— Trinomial NRHP Status Code by P1, Other Identifier: '132. Location: ❑Not for Publication ■Unrestricted "a. County ,Orange Counly •b. USGS 7.5' Quad Dater September 7, 2017 'c. Address 1121 South Hickory Street City Santa Ana Zip 92701 'a. Othor Locational Data: APN 011-070-14 Tract: 400 Block: F Lot: 14 '123a. Description: (Describa resource and its major elements. Include design, materials, condition, alterations, size, setting. and boundaries.) Located on the east side of South Hickory Street, the building is a one-story, single-family residetce constructed in the Quvon Anna style. RoctanguJar in pfan, fho building has a moderato-pifch, hipped roof with cross gables nt the north and south efevabons, and a partial wraparound porch along the ,vest and south elevations. The roof treatment consists of boxed eaves, and is, clad in contemporary asphalt shingle roofing. The ox(erior is clad in thin c:fapboard siding, throughout, with the exception of frshscele. shingles in the pediments. The primary entry is set within the wraparound porch at the west elevation, and conshrs of a rontomporaryrortangular door The ,)symfnatricaf oxterior features ono•dver-rine uoubfe-hung ev ndoCvs set tri wood frames, as well as several types of contemparary fixed, caseoient, and'sfiding sash windows—most with faux munlins. it detached garage constructed in 1930 is fucated at (he southeast corner of Ilia parcel, appears to have been oxlonsivoly altered, and is accessible via a simpie pourer! carcrefe driveway. Thorn appears to be an additional accessory building to the east of the residerice, but its use was not determined from the righl-of-way. The rectangular parcel is landscopcd with farm, mature palm trots, and various loev vego/anon at the front setback: Tho buildings and overall proocrty are./h ;good condition. Oea_pite being moved lofts current location in 1930, the bu8dirig retains sutficien_! integrity to convey its original design. 'P3b. Resource Attributes: (list attributes and codes) HP2. SingfedamilyPiopetty 1134. Resources Present: ■Building ❑Structure, ❑Object []Site []District ❑ElernentofDistrict 00ther UN I � 4 n ( r 1' .mss '1311. Report Citation: (cite survey report and othersources, orontcr'nono") None. P5b. Photo: (filer: and d?le) West elevation, view northwest August 2017 'P6. Date ConstructedlAge and Sources: ■historic 19072r1iow.corn 'P7. Owner and Address: Jillian Andrews 1121 South Hickory Street Santa Ana, GA 92701 'Pg. Recorded by: Brian Me Inc., for the City of Santa Ana 20 Civic Center Plaza 1v1-20 Santo Ana, CA 92702 'Pg, Date Recorded: September 7, 2017 'P19: Survay Typo: lniensive Survey Update 'Attachments: ❑None OLocation Map OSketch Asap ■Continuation Shoot eBuiiding, Slrurturn-, and Object Record ❑Amhaeningiiml Rocord ❑District Record ❑Linear Frrdur: Record ❑Failling Statinn Record ❑Rock Art Record ❑Artifact Record ❑Photografih Record O Other (list) ❑PR 523A (1195) 25A-56 'Required information State of California—The Resources Agency Primary# DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD' Page 2- of 3 *NRNP Status Code 5S3 -Kesource name or s: tason mouse B1. Historic Name: B2. Common Name: B3. Original Uso: Single-family Residence B4. Present Use: Sirfgle-family Residence 'B5. Architectural Style: ,QueonAnna 'B6. Construction History: (Construction date: aReratiuns,"and dale of alleralidns); Constiuctod 1907. March 28, 1930. Relocated to current location, $300. May 3,'1030. Private garage, $50. October 3, 1939. Retool, $183. Soph mbor 6, 2002. Ton windovl charigouts,: remove, partition walls forrii garage,, remove drywall from ceiling. Septeinber 16, 2004. Tear off and apply composite roofing at house and yoroye,. %7, Moved? ONo ■Yes OUnknown Data: "Marrh 2.8. 1930 Original Location: Unknown '136. Related Features: None. B9a.. Architect Unknown b. Buildor: Unknown '610. Significance: Theme ResidentiafArchilectufe Area Sanla Ana Period of Significance:'1907 Property Type: ,Single-family Residence Applicable Criteria: 1 (Discuss importance in terns of historical or architectural context as defined by theme, period, and 9"- raphic scope. Alsti address integrity) Tho Easfin House is`architeclerally significant as a characteristic example of the,Queen Anne styto. This house was originally constructed in 1907 at an undetermined location, and was moved to its current location on March 26, 1930. At the]timeof relocation, the house was owned by Walter 0. -Scott, and the occupant was Nicholas E: Eason, a painter. Eastin liver) at the residence until 1940, when Wafter and Mary J. Scott moved in upon their retirement. Walter and his wife occupied the pioperly until at least 1950. From 1952-1964, Mary is listed as tho onfy.occupant. (See Continuation Shoal 31 or 3.) B11. Additional Resource Attributes: '(List attributes and curies) *B12, References: -Armor, Samuel, editor. History of Orange County, alfta%ria. Los Angeles: Historic. Record Company, 1911. City of Santa Ana Building Pormits. Harris, Cyril Pvt. American Architecture: An illustrated Enrychmerli_i. Now York, WW Norton, 1998. (Sea Continualion Sheat 3 of 3.) B1 a. Remarks: •B14. Evaluator: Brian Ytatuti'Chalfel, Inc., for the Clty of Santa Ana 'Date of Evaluation: September 7, 2017 (This space reserved for official comments.) DPR 5236.(1195) 25A-57 "Required information State of California—The Resources Agency " Primary # DEPARTMENT OF PARKS AND RECREATION HRI A CONTINUATION .SHEET Trinomial Page 3 of 3 Resource Name or # (Assigned by recorder) Eastin House Kecoraeu ey urian matuK -uate sepremoer r; zu7 r u conunuauon u update `810. Significance (continued): Located in the southeast section of the City of Santa Aria, the Eastside neighborhood is bounded by First Street on the north, McFadden Avenue, on the south, Standard Avcnur on the east, and Main Street onthe west. Situalod south of the tract purchased by William Spurgeon it? 1869 and recorded as onginal town of Santa Ana in 1870rthe neighborhood's begirmings date to the sante period. In 1868, Nelson 0. Stafford and Columbus Tustin, both from Petaluma, California, purchased 1,359 acros of the Rancho Santiago do Santa Ana south of what would bccomc First Street. The following year, lite two men split the properly, with Mr. Tustin obtaining 703 acres orthe eastern portion upon ivhlch he founded the town of Tustin in 1870. Stafford's wo9tern acreage, theme. ter called the Stafford Tract,' lay south of First Street, oast of Main Sfieet, and north of McFadden Sheet, the area naw known as Eastside. After selling a, portion of this property, Nelson Stafford settled on his lane! in 1873, building a largo house for his young wife and their children. Stafford,died in 1878, and his widow, Amanda, opened, the house to boarders, one of wham was Robert James Blee, formerly of Pennsylvania. In 1880, Slee bought 36 acres of land of the corner of First and Main Streets from Mrs. Stafford, including the Stafford rosklonco. Bloo married Amanda Stefford.in 1062. Monroe David Halfaday was another -pioneer who made a signiricant contribution to the deveiopment of the Eastside neighborhood: Halladay came from Michigan to Santa Ana in 1876 for health reasons and purchased 20 acres from Nelson Stafford. Halladay built his that home in 1677 on East First Street, surveying and selling a tow lots of his property.but never platting if. In 1887, ChLstnul, Pine,.and Walnut Streets were laid out on his land; then, in 1888, Halladay sold ter? acres of the property. On his remaining ton acres he grow raisins, vnlnuts, and apples. Also in 1888, Halladay bulk and occupied the magnificent Sfick/Eastlake (Late Victorian) house that slip stands on the southwasicorner of East Chestnut and Halladay Streets. An 1887 map of Santa Ana, drawn a year after Santa Ma's incorporation asp city, docurnents the early growth of the neighborhood, with house -sized lots lining both sides of Cypress Street and the west side of Orange Avenue between First. and Chestnut Streets as well Walnut, Pine, arid Chestnut Streets between Maple and Hickory Streets. The remainder of Ilia Enstsido aroo was divided into largo parcels owned by Bloc. Halladay, his older brother, hanker Daniel Halladay, and others, Maps drawn in 1898 and 1913 reveal that the neighborhood had expanded to -south, with additional subdivisions along Cypress and Orange platted during this prriotf. Asa result oflhis pahern of development, the narthwestem soction of the neighborhood was Improved with homes 117 the Victorian era Queen Anne and Eastlake styles. Colonial Revival turn- ofthe-century residences and later Clansman bungalows followed along in south west portion of the neighborhood. The soulhoastorn section of the neighborhood was the last portion to be subdivided and was initiaky developed in the years between the World Wars, with the Craftsman, Colonial Revival, Tudor Revival, and Spanish Colonial Revival styles predominating. It •.arts during this time that tho house currently at 1121 South Hickory Street had been relocated to the Eastside neighborhood, likely from a neighborhood within Santa Ana. Post World War it construction consumed the remaining unimproved land. Despite unsympathetic infill, dating primarily to the last quarter of the tuwenlieth century, and Inappropriate alterations, the Eastside neighborhood retains numerous intact examples of residences from the significant period of its development which occurred between 1873, when Stafford built his house (nolonger extant), and 1931,-wrhen construction taporod:off as a result of the Great Ooprossion. Tho Easfrn House qualltios for listing in the Santa Ana Register of Histnrirdl Properties under Crflerion 1 for its exemplification of the distinguishing characteristics of the Queen Anne style. Typical features of this style illustrated by the house include its asymmolr1rul composition; muill"gable roof form with pediments; lapped wood siding; and, rrshscalr. shingles. Additionally, the house has been categorized as "Contributive" because it "is a good example of period -archiferture" in its prosrntalion of the. Queen Anne style. All original exterior features of Ilia Easfia House are considered to be character defining and should be preserved. These features include, but may not be limited for materials and finishes (siding, lishscale shingles); root configuration, materials, and treatment,, massing and composition; fenestration (original windows); and porch configuration, materials, and composition. '812. References (continued): Marsh, Diann. Sarna Aug," M Illustrated History. Encinitas, Heritage Publishing, 1994. McAlester, Virginia and Lee. A Field Guido to American Houses. Now York: Alfred A. Knopf, 1984. National Register Bulletin 16A_ "How to Compie'to the National Register Registration Form." Washington DC: National Register Branch, National Park Service, US Dept; of the Interior, 190, Of/ice of Historic Preservation. "Instructions for Recording Historical Resources."Sacramento: March 1995. Santa Ana and Orange County Directories, 1935-1980. Santa Ana History Room Collection, Santa Ana Public Library. Whlflen..Marcus. /unerican Architecture Since 1780. Cambridge: MiT Press, 1969. W.P.A. Research Project #3105, Orange County California Biographies. Santa Ana: Board of Education, 1937. DPR 523L 25A-58 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. XXXX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-21 TO PLACE THE PROPERTY LOCATED AT 1121 SOUTH HICKORY STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2017-20 PLACING SAID. PROPERTY WITHIN THE.,::- "CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTOR__IC RESOURCES -COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the -City of Santa Ana hereby finds, determines and declares as follows: A. On October 5, 2017-tte Historic Resources Commission held a duly noticed public hearing- for the placement -on the Santa. Ana Register of Historical Properiies (Historic Resources Commission Application No, 2017-21) and categorization" (Historic -Resources Commission Categorization No. 2017-:246f the Eas('in'_House located at 1121 South Hickory:Street, Santa Ana. B. The Eastin House has distinctive architectural features of the Queen Anne style, and was built in 1907 by an unknown arcitect. 'C. This home qualifies for listing :on the Santa Ana Register of Historical Properties and is eligible for categorization as Contributive under. Criterion 1 for its exemplificationbf the distinguishing characteristics of the Queen Anne style. Typical features of this style illustrated by the house include its asymmetrical composition; multi -gable roof form with pediments; lapped wood siding; and, fishscale shingles. Additionally,, the house has been categorized as "Contributive' because It "is a good example of period architecture" in its presentation of the Queen Anne style. All original exterior features of the Eastin House are considered to be character defining and should be preserved. Character -defining 'features of the Eastin House include, but may not be limited to, materials and finishes (siding, fishscale shingles); roof configuration, materials, and treatment; massing and composition; fenestration (original windows); and porch configuration, materials, and composition. D. Jillian N. Andrews is the owner of the property. 25A-59 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. F. The subject property meets the minimal standards for placement on the City of Santa Ana Register of Historic, Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimal standards for placement in the "Contributive" category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. Section 2. In accordance with the California Environmental' Quality Act, the recommended -actions are exempt from further review ;under Section 15331, Class 31, as these actions are designed to preserve historic resources. Categorical Exemption No. ER -2017-105 will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana after conducting the public hearing hereby approves: _ A. Historic Resources Commission Application No. 2017-21 to place the Eastin House located at 1121 South Hickory Street, Santa Ana, 92701 on the historical register, and B. Historic Register Categorization No. -2017-20 placing the Eastin House located at 1121 South Hickory Street, ---.Santa Ana,; 92701 within the Contributive category' These decisions are based upon the evidence -submitted at the above said hearing, which includes, but,is not limited to:.the Staff report and exhibits attached thereto; the report entitled "Historical Property Description'' and the. public testimony, all of which are incorporated herein by this reference. Section 4. For the -:subject -property, a report entitled "Historical Property Description" is oii'fle with the Planning Division, and is hereby approved and adopted; and together with the staff report and this resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission. Secretary is authorized'and directed to include this resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder's Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. 25A-60 FREE RECORDING PURSUANT TO GOVERNMENT CODE §27383 ADOPTED this 5th day of October, 2017, Alberta Christy Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: Commission members NOES: Commission ABSTAIN: Commission NOT PRESENT: Comm CERTIFICATE OF ATTESTATION AND ORIGINALITY I, ROSA BARELA, Acting Commission Secretary, do hereby attest to and certify the attached Resolution No. XXXX to be the original resolution adopted by Historic ,Resources Commission of the City of Santa Ana on.October,5, 2017. Date: Acting Commission Secretary City of Santa Ana 25A-61 FREE RECORDING -PURSUANT TO GOVERNMENT CODE § 27383 LEGAL DESCRIPTION APN Address Legal Description Owner Names 011-076-17 1121 South Hickory Street LOT 14, BLOCK F, TRACT Jillian N. NO. 466 KILSON SQUARE,.IN Andrews THE CITY OF SANTA. ANA, COUNTY OF ORANGE, STATE OF CALIFONRIA, AS PER MAP RECORDED IN BOOK 16, PAGE .48, OF MISCELLANEOUS 'MAPS, IN, THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 25A-62 -REQUESTFOR Histcjric Re -sources Commission Action HISTORIC RESOURCES COMMISSM M=MG DATE' OCTOBER 5,2017' TITLE; PUBLIC HEARING — HISTORIC RESOURCES COMMISSION APPLICATIONNO. 2017-22; 'HISTORIC REGISTER CATEGORIzATION NO.2017.21.,.AND HISTORIC PROPERTY. PRESERVATION AGREEMENT.-N.O. 2017.-27 FOR PROPERTY LOCATED;AT 2031 NORTH ROSS STREET {STRATEGIC PLAN NOS. 5, 2; 3;_3) Frc-oared Gy Manuel J. Escamilla HISTORIC RESOURCES COMMISSION SECRETARY APPROVED .17 As'Ret.owrviended• El As.Awended D Set Puhlla Hearing For C;Q11T1NU =D TO Acting Exec live Dir;.ctor. Acting PI Qg1_6�g,{ anager REC010 MENDED -ACTION 1. Adopt �a resolution approving Historic. Resources Commission, -Application 'No. 2017-22 sand. Historic Register Categorization No. 2.01741. 2. Recommend that the pity Council authorize the City Manager "and Cleric of the Council to execute the attached Mills Act agreement with Alexander _Niessen _and Maria Nena Niessen, subject to non -substantive changes approved,by the City Phanager and,City Attorney. Request of Applicant. Alexander Niessen and Maria Nena Niessen are requesting approval to designate an exisiing residence located at 2031'North Ross Street to the Santa Ana Register of Historical Properties.,,as well as approval to execute a Mills Act agreement with the City of -Santa Ana. Project Location and Site Description The subject. property consists.of a 1,508 -square -foot, English Revival style•residence and detached garage on an 8,404=square-foot residentiaf lot (Exhibit I)- -Analysis of the Issues Historical' Listing In March 1999, the City Council approved Ordinance No. NS -2363 establishing the' Historic Resources Commission "and the Santa Ana Register of Historical Properties: The Historic Resources Commission may, by'msolution and at a noticed public. hearing; designate as a historical property any building or part, thereof, object, structure, or site'having importance. to the history or architecture of the city in accordance with' the criteria set Fo_ rth .in Section'30.-2 of the Santa Ana Municipal Code (SAMC). This project entails .applying the selection criteria established in F=P:11=311 a __11 25A-63 HRC,A No,.'2017-22i HRC - ��,NO.1017411 -N� .2617-27. O� pCi2b e r 95, 2017 Page -2 Chapter,30 of'the:Santa ;Ana Municipal Code(Places of Hist6nibal And Architectural Significance) to determine, if .. this,sOudturels!eligible f -or historic ceslgnatloj -to t-h_e'SAn- f6Ara'Register, of Hls torico Properties. Tll.errstcrtetionfoesdlectlbnrbquire§.tha(ihoEirLctures be;56.or,Mfe:years ofd l Th a st4qtbre _06nt(fi.ed nic:e.ts the. minirn u m -so loc-tio n criteria for inclusion , d , mthe'Santa Ana , rRegi, . st,er V Historical PToperti es ppr uant to. criteria contained in 8edio , n 30-2-:6f the,Santa,Aha Municipal - Code_:as,the propyears old, Nb:knoWfi code violalidets:'6kist on record for4his property. ri The pr.6perty; �ecqdnizbo�d�_the W.L. and C: T I ubbs Housdji�s�distinctive.arc - Itectural fbdtU - . I _. 1 1. 1 .1"hiO.., *. , , - ee.s., or the EnOI)SK RevivaIr Style, and'was built in 1929.,by-Rby'Roscoe'Ru��&11. Ch6ractardefining fdaturbs1of the _WL'Ohd C, Tubbs House'.jhajrshould be preserved'include, 6ut,n'iaq not be,liMited'to I materials --'arid finishes: original ,windows' wh6re. ._i.-�xiant;:bn`- I k qyoin­ingI­ro6f'shaO 'rounded7, entryway, ntrywav; a h if k 61 ney:(Exhibit2)it is recommended house be'designated. to the Santa Ana kegister of Histartal,Prbperilesand bt6gonzed:a9 "Contributive "'f6r.its ;ex6inolificetioi,6f the,distinadishing cbarefctbristi-ps of. the -English Revival style. Additionally, the, house has- been categorized - as- .C6n1:dbU(jVe" because I V "contributes to the overall chaacter and history" ;of Park neighborhood and "is. b,god,d ek.arnple of period aechit6ctdre,'',reprdsontjng , the English ROvival.style -in Santa An" Mills Act Agreement reamen ordinaricd No. NS -2382 authdrized the Historic Resourdbs'C6rmWs_slon to bk6cute;l-listoric Pf6perty Pm-servati6nrAgnaernents ',HPPA). co.rnftnlyknoWn as. M! I Is 'Act agreements -foe: 611 g ibI6 - prop4tles ;(Exhibit3). Tobe 6Ildlbief6rfhe Mills Act, the 1p,ropeity, r mu,st:belistddbjitlieSantbFAhaRedist6r-bf Historical Properties. The 'Historic Resources 'Commission `Application -and Historic •Register .Categorization actions proposed for this site authorize the listing of tfie'prppqity on tIie..Ioc,ai regisW,r.. the agreement provides monetary incentive to the Pr6pei�j.6wner in the for��of a property 'tax reduction in exd1mg'e for the ow- ner-s vo'lun6ry commitment to' maintain ,the pro -'Op t �y in a good state of repair as necessary to Maintain its chamcter and -appearance. •Once mco rd6d:, the agreement generates a different v�IuEfion method in,d6lerminidgthd,p�op(�rVsa-sse's�e'd;val'u" ' 4. Aside . I ­ - ­ .. ­ 1 6, resulting W qx savings,for the owner, Asidefrom the.tax.salvings,'the benefits include: • Long 16rm preservation of property and visual improverne.0t to the neighbohood • Allows for a mechanism to provide for prpfJerty.rph.abi_ff_WtJO'n Provides additional Inceritive for potential buyers to purchase historic structures 0 'DisroUrages inappropriatealterationsto the"property The property has no Identified unauthoked modifications and is preserved in its original condition, Upon consideration of the ao.plicatioh, it is recoffirnended that the City enteNnt6a Historic Prdp6rty Preservation Agreement 25A-64 HRCA No. 2017-22, HRC No. 20177'21 HPPA No. 2017-27 October 5.2017 'Page 3 Public.Notification The 'subject site is located within_ the, :Floral Park Neighbofhood Association • boundaries, 'The president of this neighborhood associatidn gas notified by'mall 10 days.pnor•'to this public hearing, In addition; Ihe,peoject sit?„was posted wifh a nofice advertising- this. public hearing; a notice was published_ in'U e•Orange:,County Reporter and mailed'notices were sent to all, 0roperty owners within 500 ,feet of the ,project site, At the•.fii-4.of "this; punting, no ,corre_s_pbndence, ;either written for eleclro,n,ic.ihad been receNoedfrom..anymembefs'of,ihe public; CEQA C&nipliance In accordance with the Cattfornia Lnvironmental ;Quality,Acl„the recommended;acfions arkok& pl ftbm further review_ under Section 15331, 'Class :31, 'as.1hese: actions ape designed to preserve historic resources.. Categorical Exemption'No.'ER-201;7-fo6 will tie fileddor.this project: Strategic Plan Alignment Approval of this item supports the: City's tefforts to meet Goa! No. 5. Community Health, Livability; Engagement & Sustainability, 'Objective No, 2 (expand opportunities for conservation and ,environmental sustainability) and _Objective No. 3 '(faclllta'e diverse housing -opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Manuel: J.'.Escamilla PIandng,Assfstant 'MJE:jm S:FI^nG'3Qt712031 Pl Rcss.lnc Exhibits 1. 500' Radius Map 2. Department of Parks and Recreation Form 3. Mills Act Agreement 25A-65 L i I I KW A .500' RADIUS HRC 2017-21/HRCA 2017-22/HPPA 2017-27 2031 NORTH ROSS STREET W.L and C. Tubbs House PLANNING AND BUILDING AGENC-Y EXHIBIT 1 25A-66 EXECUTIVE SUMMARY W.L. and C. Tubbs House 2031 North Ross Street Santa Ana, CA 92706 NAME Tubbs -Schatz House REF. NO. ADDRESS 2031 North Ross Street CITY Santa Ana ZIP 1 92706 ORANGE COUNTY YEAR BUILT 1929 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT None NEIGHBORHOOD Floral Park CALIF. REGISTER CRITERIA FOR EVALUATION C/3 CALIFORNIA REGISTER STATUS CODE 5S3 Location: ❑ Not for Publication N Unrestricted ❑ Prehistoric N Historic ❑ Both ARCHITECTURAL STYLE: English Revival A simplification of the Tudor Revival, which reached its height of popularity during the 1920s and 1930s, the English Revival drew upon the English country house for its inspiration. English Revival homes usually feature stucco walls and gable roofs of steep but not exaggerated pitch. A characteristic roof treatment incorporates uneven rakes, with one side of a gable extending a greater distance than the other, sometimes changing the angle of slope in the process. Arches may be used for windows and doors, and, unlike their Tudor cousins, are rounded rather than pointed. Windows are usually clustered in groups on the fagade and are often multi -paned casement in type. Almost exclusively a residential style, English Revival buildings are nearly always asymmetrical in composition. SUMMARY/CONCLUSION: The W.L. and C. Tubbs House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the English Revival style. Additionally, the house has been categorized as "Contributive" because it "contributes to the overall character and history" of the Floral Park neighborhood and "is a good example of period architecture,' representing the English Revival style in Santa Ana (Municipal Code, Section 30-2.2). EXPLANATION OF CODES: California Register Criteria for Evaluation. (From California Office of Historic Preservation, Technical Assistance Bulletin # 7, September 4, 2001.) It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • California Historical Resource Status Code. (From California Office of Historic Preservation Technical Assistance Bulletin #8, November 2004). 5S3 Appears to be individually eligible for local designation through survey evaluation. EXHIBIT 2 25A-67 State of California—The Resources Agency Primary DEPARTMENT OF PARKS AND RECREATION HRI # PRIMARY RECORD Trinomii Other L Review NRHP Status or number (assigned by recorder) P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad Date: September 6, 2017 *c. Address 2031 North Ross Street City Santa Ana Zip 92706 *e. Other Locational Data: APN: 22 Tract: 788 Lot: 22 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries.) Located on the west side of North Ross Street, the building is a one story, single-family residence constructed in the English Revival style. The building has a moderate -pitch cross -gabled roof and features asymmetrical massing. The roof has little to no eaves, and is clad in contemporary asphalt shingle roofing. Half timbering is visible on both front gables of the west elevation. The exterior is clad in stucco, and features a chimney with sporadic clinker bricks at the west elevation adjacent to the main entryway. The main entryway is a rounded wood door with an upper rectangular window and is framed in arched brick quoining. The west elevation is dominated by two multilight square windows with brick quoining and currently display fabric awnings. The parcel has a concrete and brick driveway along the south elevation leading to a detached garage that is original to the property. The site features a lawn and landscaped front yard with mature trees to the north and south of the building. The building and overall property is in good condition. *P3b. Resource Attributes: (list attributes and codes) HP2. Single-family Property *P4. Resources Present: ■Building ❑Structure ❑Object ❑Site ❑District ❑Element of District ❑Other P5a. Photo *P11. Report Citation: (Cite survey report and other sources, or enter "none") None. P5b. Photo: (view and date) West elevation, northeast August 2017 *P6. Date Constructed/Age and Sources: ■historic 1929/0riginal building permit *P7. Owner and Address: Alexander Niessan 2031 North Ross Street Santa Ana, CA 92706 *P8. Recorded by: Olivia White/Chattel, Inc., for the City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: September 6, 2017 *P10. Survey Type: Intensive Survey Update *Attachments: DNone []Location Map []Sketch Map ■Continuation Sheet ■Building, Structure, and Object Record []Archaeological Record []District Record []Linear Feature Record []Milling Station Record []Rock Art Record []Artifact Record []Photograph Record [] Other (list) DPR 523A (1195) 25A-68 *Required information State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 3 *NRHP Status Code 533 `Resource Name or #: Tubbs -Schatz House B1. Historic Name: Tubbs -Schatz House B2. Common Name: Same B3. Original Use: Single-family Residence B4. Present Use: Single-family Residence *B5. Architectural Style: English Revival *B6. Construction History: (Construction date, alterations, and date of alterations): Constructed 1929. April 20, 1933. Rebuild chimney, $10. October 30, 1944. Reroof, $154. April 12, 1983. Reroof. *B7. Moved? ■No [3Yes 13Unknown Date: Original Location: *B8. Related Features: None. B9a. Architect: Unknown b. Builder: Unknown *B10. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1929 Property Type: Single-family Residence Applicable Criteria: 1 (Discuss importance in terns of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Tubbs -Schatz House is architecturally significant as a characteristic example of the English Revival style. This house and detached garage were originally constructed in 1929, and were valued at approximately $6,000, according to the original building permit. At the time of construction, the property owner was listed as C.O. Smith and his wife Florence L. Smith, although it is unclear if the Smiths ever lived in the building. The Smith's deeded the property to W.L. Tubbs and Cynthia Tubbs a few months after the original building permit was issued in 1929. W. Lester Tubbs was a businessman who worked for the Orange County Trust and Savings Bank. Deeds indicate that the Tubbs sold the house to Harry D. Riley and Alice E. Riley in March 1932. Harry D. Riley served as supervisor of the 3"d district of Orange County from 1937 to 1941, and was also Chairman of the Anaheim Chamber of Commerce. In 1932, not long after purchasing the property, Harry D. Riley riled for bankruptcy. As one of Riley's assets, the property at 2031 North Ross Street briefly came back under the ownership of W. Lester Tubbs. Tubbs then sold the property later that year to Ernest C. Stump, who was a salesman. According to city directories and building permits, the next recorded owner and occupant is Jerome E. Braden, who was a buyer, and purchased the property in 1938. Braden sold the property to Frank and Irma K. Schatz in 1963.. In 1980, the listed occupant is L. Schatz. (See Continuation Sheet 3 of 3.) B11. Additional Resource Attributes: (List attributes and *B12. References: City of Santa Ana Building Permits. Harris, Cyril M. American Architecture: An Illustrated Encvclooedia. New York, IAW Norton, 1998. Marsh, Diann. Santa Ana, An Illustrated History. Encinitas, Heritage Publishing, 1994. (See Continuation Sheet 3 of 3.) B13. Remarks: *1314. Evaluator: Olivia White/Chattel, Inc., for the City of Santa Ana (This space reserved for official comments.) *Date of Evaluation: September 6, 2017 DPR 523B (1195) *Required information 25A-69 State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 3 of 3 Resource Name or # (Assigned by recorder) W.L. and C. Tubbs House *Recorded by Olivia White *Date September 6, 2017 El Continuation ❑ Update `1310. Significance (continued): Santa Ana was founded by William Spurgeon in 1869 as a speculative town site on part of the Spanish land grant known as Rancho Santiago de Santa Ana. The civic and commercial core of the community was centered around the intersection of Main and Fourth Streets. Stimulated by the arrival of the Santa Fe Railroad and incorporation as a city in 1886, and selection as the seat of the newly created County of Orange in 1889, the city grew outwards, with residential neighborhoods developing to the north, south, and east of the city center. Agricultural uses predominated in the outlying areas, with cultivated fields and orchards dotted with widely scattered farmhouses. The Tubbs -Schatz House is in Floral Park, a neighborhood northwest of downtown Santa Ana bounded by West Seventeenth Street, North Flower Street, Riverside Drive, and Broadway. Groves of oranges, avocados, and walnuts and widely scattered ranch houses characterized this area before 1920. Developer and builder Allison Honer (1897-1981), credited as the subdivider and builder of a major portion of northwest Santa Ana, arrived in Santa Ana from Beaver Falls, New York in 1922 (Talbert, pages 353-356). "Before nightfall on the day of his arrival, Mr. Honer purchased a parcel of land. And that month, he began building custom homes in Santa Ana" (Orange County Register, September 15, 1981). The parcel chosen became the Floral Park subdivision between Seventeenth Street and Santiago Creek. "When built in the 1920s, the Floral Park homes were the most lavish and expensive in the area. They sold for about $45,000 each"(Orange County Register September 15, 1981). Revival architecture in a wide variety of romantic styles was celebrated in the 1920s and 1930s and Floral Park showcased examples of the English Tudor, French Norman, Spanish Colonial, and Colonial Revival. The Allison Honer Construction Company went on to complete such notable projects as the 1935 Art Deco styled Old Santa Ana City Hall, the EI Toro Marine Base during World War ll, and the 1960 Honer Shopping Plaza. Honer lived in the neighborhood he had helped to create, at 615 West Santa Clara Avenue. In the late 1920s and 1930s, another builder, Roy Roscoe Russell (1881-1965), continued developing the groves of Floral Park. An early Russell project was his 1928 subdivision of Victoria Drive between West Nineteenth Street and West Santa Clara Avenue. The homes were quite grand and displayed various revival styles, including Russell's own large, Colonial Revival mansion at 2009 Victoria Drive. In the early post World War II years, Floral Park continued its development as numerous, smaller, single-family houses were built. Continuing in the Floral Park tradition, they were mostly revival in style. In the 1950s, low, horizontal Ranch Style houses completed the growth of Floral Park. Today (2014) Floral Park maintains its identity as the premier neighborhood of Santa Ana, historically home to many affluent and prominent citizens. The Tubbs -Schatz House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 for its exemplification of the distinguishing characteristics of the English Revival style. Typical features of this style illustrated by the house include its asymmetrical composition; stucco walls; arched entry door; multi -paned casement windows. Additionally, the house has been categorized as "Contributive"because it is an intact example of an English Revival style residence in the Floral Park neighborhood, and "is a good example of period architecture."Despite the house's association with Harry Riley, who is significant to the history of the county, Riley did not live at 2031 North Ross Street when he served as Supervisor of the Third District. Character -defining exterior features of the Tubbs -Schatz House that should be preserved include, but may not be limited to original windows where extant; brick quoining; roof shape; rounded entryway, and brick chimney. '1312. References (continued): McAlester, Virginia and Lee. A Field Guide to American Houses. New York., Alfred A. Knopf, 1984. National Register Bulletin 16A. "How to Complete the National Register Registration Form. " Washington DC: National Register Branch, National Park Service, US Dept of the Interior, 1991. Office of Historic Preservation. "Instructions for Recording Historical Resources."Sacramento: March 1995. Whitten, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. Orange County Plat Maps, 1912. Historic Maps, Santa Ana History Room, 1923, 1932, 1955. Santa Ana and Orange County Directories, 1926-1980. Santa Ana History Room Collection, Santa Ana Public Library. DPR 523L 25A-70 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 V *16A4 111 [NP►1► [N1KVX'chvl A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-22 TO PLACE THE PROPERTY LOCATED AT 2031 NORTH ROSS STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2017-21 PLACING SAID PROPERTY WITHIN THE CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. On October 5, 2017, the -.,Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2017-22) , and categorization (Historic Resources Commission Categorization No. 2017-29) of the Tubbs -Schatz House located at 2031 North Ross Street, Santa Ana. B. -The Tubbs -Schatz House has distinctive architectural features of the English Revival style, and was built in 1929 by Roy Roscoe Russell. C. This home qualifies for listing on the Santa Ana Register of Historical Properties and is eligible for categorization as "Contributive" under Criterion 1 for its exemplification of the distinguishing characteristics of the English Revival style. Additionally, the house has been categorized as "Contributive" because it is an intact example of an English Revival style residence in the Floral Park neighborhood, and "is a good example of period architecture." Character -defining features of the Tubbs -Schatz House that should be preserved include, but may not be limited to, materials and finishes: original windows where extant; brick quoining; roof shape; rounded entryway; and brick chimney. D. Alexander Niesssen and Maria Nena Niessen are the owners of the property. E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. 25A-71 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 F. The subject property meets the minimal standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimal standards for placement in the "Contributive" category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve historic resources. Categorical Exemption No. ER -2017-106 will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana after conducting the public hearing hereby approves: A. Historic Resources Commission Application No. 2017-22 to place the Tubbs -Schatz House located at 2031 North Ross Street, Santa Ana, 92706 on the historical register; and B. Historic Register Categorization No. 2017-21 placing the Tubbs -Schatz House located at 2031 North Ross Street, Santa Ana, 927.06 within the "Contributive" category. These decisions are based upon. the evidence' submitted at the above said hearing, which includes, but is not limited to: the Staff report and exhibits attached thereto; the report entitled "Historical Property Description" and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject property, a report entitled "Historical Property Description" is on file with the Planning Division; and is hereby approved and adopted, and together with the staff report and this resolution, justify the findings for placement on the City of Santa Ana. Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder's Office after the adoption of this Resolution. pursuant to Public Resources Code Section 5029. ADOPTED this 5th day of October, 2017. Alberta Christy Chairperson 25A-72 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: Commission members .- NOES: Commission members ABSTAIN: Commission members NOT PRESENT: Commission members CERTIFICATE OF ATTESTATION AND ORIGINALITY I, ROSA BARELA, Acting Commission_ Secretary, do hereby attest to and certify the attached Resolution .No. XXXX to be ' the original resolution adopted by Historic Resources Commission of the City of Santa Ana on October 5, 2017. Date: Acting Commission Secretary City of Santa Ana 25A-73 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 LEGAL DESCRIPTION APN Address Legal Description Owner Names 002-111-35 2031 North Ross Street LOT 22 OF TRACT NO. 788, Alexander "WALNUT DRIVE', AS PER Niessen and MAP THEROF RECORDED IN Maria Nena BOOK 23, AT PAGE 49, OF Niessen MISCELLANEOUS MAPS OF THE COUNTY RECORDER 2441A REQUEST EOR. Historic Resources Commission Action L HISTORIC RES JURCFS COMMISS*0 J NIEETiRG r)ATE: HISTORIC RE`CURCES COWIMISSM SECRETARY OCT013ER 5,1017 TITLE: PUBLIC HEARING — HISTORIC RESOURCES COMMISSION APPLICATION NO..2017-23, HISTORIC REGISTER CATEGORIZATION N6.2017-22, AND HISTORIC. PROPERTY PRESERVATION- ,AGREEMENT',NO. 2017=28 FOR THE• PROPERTY LOCATED AT.2424, NORTH RIVERSIDE.'DRIVE,{STRATEbid PLAN,NO$-. 5,72; 5,3) 13reparedby Manuel J. Escamilla }'• (��.• Lam--.` .� . Acting Plan ni{1� lvlj�r APPROVUD CI At; RPP 611irncnded I.1 ns,�lnl+�ntf�d L :Se1 Publlc 1-IF.arfng Fni C00TIPHIJEO 70 Acting F�ceculiVa',Oire for ,,! RECOMMENDED ACTION 1. Adopt a resolution apbroving Historic Resources Commission :Application No. 2017-23 and Historic Register Categorization No. 2017-22. 2. Recommend that the ,City Council authorize the City fJlanager and. Clerk of the Council to execute the attached Mills Act. agreelimenl .with the L'oria Revocable Trust, subject to non - substantive changes approved by the City Manager and City:Attorney. Request of'Applicant The Loria Revocable Trusl,is requesting approval to designate an existing residence located at.2424 North Riverside Drive to the'Santa Ana Register of Historical Properties, as well as approval to execute a'Mills Act agreement with the City.of Santa Ana. -Proiect'Location and Site,Describtion Thesubject property consists of a 1,945 -square -foot, French Eclectic; style residence and detached garage on a 7,790 -square -foot residential loh(Exhibit 1). ,Historical Listing In March 1999, the City Council approved Ordinance No.. NS -2363 establishing ahe Historic Resources Commission and the Santa Ana Register of Historical Properties: The Historic Resources Commission may, by resolution and at a noticed public hearing,.designate as -a historical property any building or part thereof, object, structure, or -site having importance to the history or architecture of the city iri,accordahce with the criteria set-forfh,in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails .applying the selection criteria established in Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure.is eligible for historic designation Lo the Santa Ana Register of. Historical Properties. The first criterion for selection requires that the structures be 50,or more years old. EXHIBIT B7 25A-75 HRCA No. 2017-23,,HRC No.•.2017-22 HPPA'No.'2017-28. October 5,'20.17 Page;T The strubturetdentified meets the minimum selection criteria 2pr Inclusion onTic Santa,Ana, Register of Historical Properties pursuant .to criteria;contafned In Section 30.2 ,of the Santa -Ana- Municipal I Code.as the'6b, ilding'is 87,years.old. 'No linown code.vtolations exist on record:fbtthis;property. The properly, recognized as. the'K; H.'Sufherland!House;'has:distinctive;architectural•.f6at&ds. 6. lite 'Fre nch'Erlecticstyle, and yras Built in 1931): Cha"racterdefining'features of the K: H: Sutlieriand'Hause, that sh'ould be preserved 'include, but,inay, not be limited td: rhaterials:arid finishes, original'windows where. extant;}patternoal"features' in lhe•6tuc_66 walls; rool'sha'pe:andi mat&ials',,arched_.entryway opening; and brick chimney: Typi:of ttie'.French iEclecUc style illusfrated by'fhe:house mclude;,its asymnietrical cornpos(tioi palterrled "stucco walls; painted door; .multi=paned casement wdifidaWs;. and wood, shingle: rooi(Exhibit 2); It is eecoriirriended thatthe:house.be designatetl to the;Santa Ana,Registerof Historical Fropertiesarid categorized"at "Key fonts exemplification.gf the distinguishing charactensliis of the.;French Ecl=ctic style;'arid for its association with"a=signtficarit•figure !0 66 history of Santa Ana. Typical features bfahe French, Eclectic; style illustrated'by the'hou'se include its asynimotrical compuAion;.pattemedcstucco walis;,pointed door,.rriulti-p6ned casement -windows; and, wood, shingle roof: ,Additionally; the'.hou'se has been calegorized'a's "Key" because it ls,an•intact example of'a French' Eclectic style residence in the Floral Park neighborh6dd, and "h"assa distinctive architectural style and qugIlty7' The building is'atsa cafegorized'as "Key" because it is'!"associated With -a significant pisrson int the city," as}(`H, Sutherlind served, as Orange County's deputy:health :officer while he Lived in theftuse: Mills ActApreement Ordinance No.:NS-2382 authorized the Historio"Resources.'Comm ssion fo.execute_ Hlstorir,.Propie- Preservation Agreements (HPPA), .commonly'known as MillstAct agreements'for eligible properties (Exhibit3). To be eligible for,the Mills .Acl; the property musEbb'listed on the'Sanla Ana Register of Historical iNciperttes: The Historic Resource's .Comm'issian Application 'and !Historic Register Categorization a ctions•pr000sed':fcr this site authorize the listing of the property.on the local, register. The agreement provides monetary rncentitie do. the property owner in the fGrm of a `properly lax seduction in exchange.for,lhe-owner's volunt6rV commitmenl'to.maintain the,pro,perty in,a•good state of repair'as hecessaryto maintain'itstharacter and appearance. Once. recorded, the agreenierit generate's•a different valuaiibn methopro d in determining'the perty's assessed walue,'resufting in ;tax savings for the owner: Aside from the lax savings; the.ben&i s include: 4 Long _term preservation�of the property and visual jftroveiiient to the, neighborhood' • Allows fora mechanisr'h to provide,forpro,perty rehabilitation • Provides additional -incentive forpoteritial buyers to"purchase,liistoric,structures. t Discourages Inappropdate.alterationsto,the property 25A-76 HnA .No. 201.7-23, HRC•.Nq.,2017; 22 HPPA " Nd�, 2017-28 Octobe'r-5,.2017 0 a' g' 6, �'3 .' The p'r6perty has no identified unauthorized modifications and is preserved ,in L its.origin'bI condition, Upon consideration of the application, it is: rec'ommerdbd'that:thL-City enter into 6,Historic Propbrty Preservation Agre,Qrfi�-3nt,.. I — . *t'U-6116 N'o-ti'ftat . ion, The subject site it loca-f6d within. he Floral Park 'NelgfjbolloodAssociaton' bOLnI i . ales. . The. id. pre-siddrit 61f,tlil-s'neIbhbb.ehobd association was n6t,ifici,d'by!miill-10-days .Orior to this public hearing_ In addition, '�ing,Ihii _c: on, th6 project �ski was pogtbd �vith. a notire,adVbrlj public hearing, a notice -Wais-, publi's'liiid in the Or*ar�g6IC60ty'Repiortdr and mail6diproperty'dwriers Wjthin. -500 feet oi`Ah6,Ip'roject site. AtIhb,-bib6j&f' this Od I nt . i . h . 0, n boirespon ence;, either i ither wntteh,or electronic, had been rec6lVed from any. mem6&s'of tt%io:bublid. - dlEdA,Compliance In -accordance with the.13blifotia Envirohm6htal,Qtjblity Act, :th& recommend6d actions, are, exempt from Jurther . review under,,Section 15331,.biats-•M', as-th'e§e- , ac . tbns.�6-re ide'si ned to, Illitdric resource. Categorical Exernption'No; ER -2017-113 will be filed fbr,thls.proje6t. Siratbck Plan Alignment Approval of this item supports the City 8, efforts to. meet GoalNo' 5 Community Health, Engagement.,& SustainabilAy, Objective No: 2 (expand bppoirtunilies; 'for conservatiori ;and' envirdn mental, sustainability) . "and Objective3 -.e diverse. ho - using opportun - itles-and No. (facilitate support efforts to Orese.rve and improve" thell,lyability of Santa -Aha neighborh.ob.ds). Mandel ,J. Escarnilla :Plan- nifig'Assistant WE:jm' SMIQ2017AIZZ4 1.4 R.v�ibdo Exhi6its 1. 600' Radiu's Map 2. 'Department of f Parks 6nd.kedreatibri'Form 3. Mills Act Agreement, 25A-77 �N� 500' RADIUS HRC, 2017-22/HRCA 2017-231 HPPA 2017-28 2424 NORTH RIVERSIDE DRIVE K.H. SUTHERLAND HOUSE PLANNING AND BUILDING AGENCY EXHIBIT 1 25A-78 EXECUTIVE SUMMARY K. H. Sutherland House 2424 North Riverside Drive Santa Ana, CA 92706 NAME K. H. Sutherland House REF. NO. ADDRESS 2424 North Riverside Drive CITY Santa Ana ZIP 1 92706 ORANGE COUNTY YEAR BUILT 1930 LOCAL REGISTER CATEGORY: Key HISTORIC DISTRICT I North Broadway Park Historic District NEIGHBORHOOD Floral Park CALIF. REGISTER CRITERIA FOR EVALUATION A/1, C/3 CALIFORNIA REGISTER STATUS CODE 2D, 5S3 Location: ❑ Not for Publication X Unrestricted ❑ Prehistoric X Historic ❑ Both ARCHITECTURAL STYLE: French Eclectic Although the French Eclectic style resembles the contemporaneous Tudor Revival and shares some of the same medieval European precedents, it is distinguished from its English counterpart by its roof treatment. A hipped roof of steep pitch is present in most examples, although one subtype may incorporate a gabled roof in association with a conical -roofed tower. Tall chimneys are often seen, as are dormers, which can emerge from the roof or be set flush with the wall, breaking the cornice. Arched openings for doors and windows are common. More formal versions feature symmetry, Renaissance detailing, and quoins at corners and around arches. Examples based on more rural prototypes are generally asymmetrical. Exterior walls may be stucco, brick, or stone, and may be adorned with half-timbering. Windows are usually casements in type. (McAlester, 386-395). As a contributor to the North Broadway Park Historic District, which has been determined eligible for listing in the National Register of Historic Places, the K.H. Sutherland House has been listed in the California Register of Historical Resources. The property also qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 for its exemplification of the distinguishing characteristics of the French Eclectic style, and under Criterion 4.b for its association with K.H. Sutherland, an important doctor in Santa Ana history. Additionally, the house has been categorized as "Key" because it "has a distinctive architectural style and quality" as a rare example of the French Eclectic style in Santa Ana, and "is associated with a significant person ... in the city" (Municipal Code, Section 30-2.2). EXPLANATION OF CODES: • California Register Criteria for Evaluation. (From California Office of Historic Preservation, Technical Assistance Bulletin # 7, September 4, 2001.) Associated with events that have made a significant contribution to the broad patterns of local or regional history or the cultural heritage of California or the United States It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • California Historical Resource Status Code. (From California Office of Historic Preservation Technical Assistance Bulletin #8, November 2004). 2D Contributor to a district determined elioible for NR by the Keeoer. Listed in the CR. 25A-79 State of California—The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other Listings Review Code e name(s) or number (E Primary H RI # NRHP Status Code P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad Date: September 7, 2017 *c. Address 2424 North Riverside Drive City Santa Ana Zip 92706 *e. Other Locational Data: APN 002-064-15 Tract: 755 Lot: 10 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries.) Located on the south side of North Riverside Drive, the building is a one story, single-family residence constructed in the French Eclectic style. Asymmetrical in plan, the building has a steep -pitched cross -hipped roof with a gable projecting at the entry. The roof has little to no eaves, and is clad in wood shingles set in a staggered pattern. The exterior is clad in stucco with decorative indentations across the elevations, creating a texture most closely resembling a combination of the trowel sweep and briar, as defined by the Portland Cement Association's Plaster/Stucco Manual. The primary entry is centrally located on the north elevation and features an arched entryway with a wood door that comes to a top central point. The windows on the primary fagade are multilight casement, one is flanked by decorative shutters, another features a wood balustrade across its lower half. The parcel is landscaped with a lawn, plantings lining a concrete path to the entry, and spiral topiaries flanking one of the windows. To the east of the house is a concrete driveway that leads to a detached garage. The building and overall property is in good condition. *P3b. Resource Attributes: (list attributes and codes) HP2. Single-family Property *P4. Resources Present: ■Building ❑Structure ❑Object ❑Site ❑District ❑Element of District ❑Other P5b. Photo: (view and date) North elevation, view south August 2017 *P6. Date Constructed/Age and Sources: ■historic 1930/0riginal building permit *P7. Owner and Address: Christopher D. 8 Delma M. Loria 2424 North Riverside Drive Santa Ana, CA 92706 *P8. Recorded by: Olivia White/Chattel, Inc., for the City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: September 7, 2017 *P10. Survey Type: Intensive Survey Update *P 11. Report Citation: (Cite survey report and other sources, or enter "none") California Department of Transportation, Broadway Overcrossing Historic Property Survey, March 1979. *Attachments: []None ❑Location Map ❑Sketch Map ■Continuation Sheet ■Building, Structure, and Object Record DArchaeological Record []District Record []Linear Feature Record []Milling Station Record []Rock Art Record ❑Artifact Record ❑Photograph Record D Other (list) DPR 523A (1195) 25A-80 *Required information State of California -The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 3 *NRHP Status Code 2D. 5S3 `Resource Name or #: K. H. Sutherland House B1. Historic Name: K. H. Sutherland House B2. Common Name: Same B3. Original Use: Single-family Residence B4. Present Use: Single-family Residence *B5. Architectural Style: French Eclectic *B6. Construction History: (Construction dale, alterations, and dale of alterations): Constructed 1930. December 10, 1934. Alterations, $350. July 20, 1941. Reroof, $71. June 14, 1990. Reroof, $71,000. March 12, 1997. Demolish Garage. March 28, 1997. New Garage with workshop. *B7. Moved? ■No OYes OUnknown Date: Original Location: *B8. Related Features: None. 139a. Architect: Unknown b. Builder: Unknown *B10. Significance: Theme Residential architecture Area Santa Ana Period of Significance: 1930 Property Type: Single-family Residence Applicable Criteria: 1, 4.b (Discuss importance in temis of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) K. H. Sutherland House is architecturally significant as a characteristic example of the French Eclectic style. This house was originally constructed in 1930, and was valued at approximately $6,000, according to the original building permit. At the time of construction, the property owner was listed as H. B. Sutherland. According to city directories, the first recorded occupant is Kenneth Holden Sutherland, H. B. Sutherland's son. Kenneth Sutherland was a doctor, and was appointed deputy health officer for Orange County in 1927. According to city directories and building permits, the second recorded owner and occupant is Adam Darling, who was retired, and who occupied the property at some time at or before 1946 through at least 1960. Darling passed away in 1962, and in 1962 directories, the property at 2424 North Riverside Drive is not listed. In 1980 directories, the property address is listed, but no owner is listed. The current residents have owned the property since 1984. (See Continuation Sheet 3 of 3.) B11. Additional Resource Attributes: (List attributes and *1312. References: City of Santa Ana Building Permits. Harris, Cyril M. American Architecture: An Illustrated Encyclopedia. New York, WW Norton, 1998. (See Continuation Sheet 3 of 3.) B13. Remarks: *614. Evaluator: Olivia White/Chattel, Inc., for the City of Santa Ana *Date of Evaluation: September 7, 2017 DPR 523B (1195) (This space reserved for official comments.) *B10. Significance (continued): 25A-81 State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial 3 of 3 Resource Name or # (Assigned by recorder) K.H. Sutherland House rded by Olivia White *Date September 7, 2017 al Continuation ❑ Update Santa Ana was founded by William Spurgeon in 1869 as a speculative town site on part of the Spanish land grant known as Rancho Santiago de Santa Ana. The civic and commercial core of the community was centered around the intersection of Main and Fourth Streets. Stimulated by the arrival of the Santa Fe Railroad and incorporation as a city in 1886, and selection as the seat of the newly created County of Orange in 1889, the city grew outwards, with residential neighborhoods developing to the north, south, and east of the city center. Agricultural uses predominated in the outlying areas, with cultivated fields and orchards dotted with widely scattered farmhouses. The K. H. Sutherland House is in Floral Park, a neighborhood northwest of downtown Santa Ana bounded by West Seventeenth Street, North Flower Street, Riverside Drive, and Broadway. Groves of oranges, avocados, and walnuts and widely scattered ranch houses characterized this area before 1920. Developer and builder Allison Honer (1897-1981), credited as the subdivider and builder of a major portion of northwest Santa Ana, arrived in Santa Ana from Beaver Falls, New York in 1922 (Talbert, pages 353-356). "Before nightfall on the day of his arrival, Mr. Honer purchased a parcel of land. And that month, he began building custom homes in Santa Ana" (Orange County Register, September 15, 1981). The parcel chosen became the Floral Park subdivision between Seventeenth Street and Santiago Creek. "When built in the 1920s, the Floral Park homes were the most lavish and expensive in the area. They sold for about $45,000 each" (Orange County Register. September 15, 1981). Revival architecture in a wide variety of romantic styles was celebrated in the 1920s and 1930s and Floral Park showcased examples of the English Tudor, French Norman, Spanish Colonial, and Colonial Revival. The Allison Honer Construction Company went on to complete such notable projects as the 1935 Art Deco styled Old Santa Ana City Hall, the EI Toro Marine Base during World War Il, and the 1960 Honer Shopping Plaza. Honer lived in the neighborhood he had helped to create, at 615 West Santa Clara Avenue. In the late 1920s and 1930s, another builder, Roy Roscoe Russell (1881-1965), continued developing the groves of Floral Park. An early Russell project was his 1928 subdivision of Victoria Drive between West Nineteenth Street and West Santa Clara Avenue. The homes were quite grand and displayed various revival styles, including Russell's own large, Colonial Revival mansion at 2009 Victoria Drive. In the early post World War II years, Floral Park continued its development as numerous, smaller, single-family houses were built. Continuing in the Floral Park tradition, they were mostly revival in style. In the 1950s, low, horizontal Ranch Style houses completed the growth of Floral Park. Today Floral Park maintains its identity as the premier neighborhood of Santa Ana, historically home to many affluent and prominent citizens. The K. H. Sutherland House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 for its exemplification of the distinguishing characteristics of the French Eclectic style, and under Criterion 4.b for its association with a significant figure in the history of Santa Ana. Typical features of the French Eclectic style illustrated by the house include its asymmetrical composition; patterned stucco walls; pointed door; multi -paned casement windows, and wood shingle roof. Additionally, the house has been categorized as "Key" because it is an intact example of a French Eclectic style residence in the Floral Park neighborhood, and "has a distinctive architectural style and quality. "The building is also categorized as "Key" because it is 'associated with a significant person... in the city,"as K.H. Sutherland served as Orange County deputy health officer while he lived in the house. Character -defining exterior features of 2424 North Riverside Street that should be preserved include, but may not be limited to original windows where extant; pattern in the stucco walls; roof shape and materials; arched entryway opening; brick chimney. *B12. References (continued): Marsh, Diann. Santa Ana, An Illustrated History, Encinitas, Heritage Publishing, 1994. McAlester, Virginia and Lee. A Field Guide to American Houses. New York: Alfred A. Knopf, 1984. National Register Bulletin 16A. "How to Complete the National Register Registration Form. " Washington DC: National Register Branch, National Park Service, US Dept. of the Interior, 1991. Office of Historic Preservation. "Instructions for Recording Historical Resources." Sacramento: March 1995. Orange County Plat Maps, 1912. Historic Maps, Santa Ana History Room, 1923, 1932, 1955. Santa Ana and Orange County Directories, 1926-1984. Santa Ana History Room Collection, Santa Ana Public Library. Whitten, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. DPR 523L 25A-82 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. XXXX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-23 TO PLACE THE PROPERTY LOCATED AT 2424 NORTH RIVERSIDE DRIVE, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2017-22 PLACING SAID PROPERTY WITHIN THE KEY CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. On October 5, 2017 the Historic Resources Commission held a duly noticed public hearingfor..the placement on the Santa Ana Register of Historical Properties '(Historic Resources Commission Application No. 2017-23).- and categorization (Historic Resources Commission Categorization No. 2017-22) of the K. H. Sutherland House located at 2424 North Riverside Drive, Santa Ana. B. The K. H. Sutherland House•.has distinctive architectural features of the -French Eclectic style, and was built in 1930. C. This home qualifies for listing_on the Santa Ana Register of Historical Properties and is eligible for categorization as Key. As a contributor to the North Broadway Park Historic District, which has been determined eligible for listing in the National- Register of Historic Places, the K. H. Sutherland House has been listed in the California Register of Historical Resources. The property also qualifies for listing on the Santa Ana Register of Historical Properties under Criterion 1 for its exemplification of the distinguishing characteristics of the French Eclectic style, and under Criterion 4.b for its association with K.H. Sutherland, an important doctor in Santa Ana history. Additionally, the house has been categorized as "Key" because it "has a distinctive architectural style and quality," and "is associated with a significant person ... in the city." Character -defining features of the K. H. Sutherland House that should be preserved include, but may not be limited to, materials and finishes: original windows where extant; pattern in the stucco walls; roof shape and materials; arched entryway opening; and brick chimney. Typical features of the French Eclectic style illustrated by the house include its asymmetrical 25A-83 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 composition; patterned stucco walls; pointed door; multi -paned casement windows; and wood shingle roof. D. The Loria Revocable Trust is the owner of the property. E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. F. The subject property meets the minimal standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimal standards for placement in the Key category pursuant to Section 30-2.2(3).of the Santa Ana Municipal Code. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve historic resources: Categorical Exemption No. ER -2017-113 will be filed for this project.. Section 3. The Historic Resources, Commission of the City of Santa Ana after conducting the public hearing hereby approves: A. Historic Resources Commission Application No. 2017-23 to place the K. H. Sutherland House located_at 2424 North Riverside Drive, Santa Ana, 92706 on the historical register, and B. Historic Register Categorization No. 2017-22. placing the K. H. Sutherland House located.at2424 North Riverside Drive, Santa Ana, 92706 within the Key category. These decisions'are based upon the evidence submitted at the above said hearing, which includes; but is not limited to: the Staff report and exhibits attached thereto; the report entitled "Historical Property Description" and the public testimony, all of which'are incorporated herein by this reference. Section 4. For the subject property, a report entitled "Historical Property Description" is on file with the Planning Division, and is hereby approved and adopted, and together with the staff reportand this resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder's Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. 25A-84 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 ADOPTED this 5th day of October, 2017. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Commission members Commission members Commission members Commission members Alberta Christy Chairperson CERTIFICATE OF ATTESTATION AND ORIGINALITY 1, ROSA BARELA, Acting Commission Secretary, do hereby attest to and certify the attached Resolution No. XXXX to be the original resolution adopted by Historic Resources Commission of the City of Santa Ana on October 5, 2017. Date: Acting Commission Secretary City of Santa Ana 25A-85 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 LEGAL DESCRIPTION APN Address Legal Description Owner Names 002-064-15 2424 North Riverside LOT 10 OF TRACT NUMBER Loria Revocable Drive 755 AS RECORDED BY MAP Trust ON FILE IN BOOK 22, PAGE 33 OF MISCELLANEOUS MAPS IN THE FILE OF THE COUNTY RECORDER OF ORANGE COUNTY CALIFORNIA 25A-99' REQUEST FOR Historic Resources Commission Action F08TORIC RESOURCES COMMISSDN MEETING DATE: OCTOBER 5, 2017 TITLE: �Ff�yv _ s 4I I•IISTORIC RESOURCES COMMISSION SECRETARY PUBLIC HEARING — HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-25, HISTORIC REGISTER CATEGORIZATION NO. 2017-24, AND HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2017.29 FOR THE PROPERTY LOCATED AT 2401 NORTH FLOWER STREET {STRATEGIC PLAN NOS. 5, 2; 5,3) Prepared by Ricardo Soto APPROVED ❑ As Recornmended ❑ As Amended ❑ Set Public Hearing For CbNTINUED TO Acting Executi a Direct _;clingzanager RECOMMENDED ACTION 1. Adopt a resolution approving Historic Resources Commission Application No. 2017-25 and Historic Register Categorization No. 2017-24. 2. Recommend that the City Council authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreement with Benjamin and Nicolette Ramirez, subject to non - substantive changes approved by the City Manager and City Attorney. Request of Applicant Benjamin and Nicolette Ramirez are requesting approval to designate an existing residence located at 2401 North Flower Street, to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. Proiect Location and Site Description The subject property consists of a 1,478 -square -foot, English Revival style residence and detached garage on a 6,603 -square -foot residential lot (Exhibit 1). Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS -2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails applying the selection criteria established in EXHIBIT 1138 25A-87 HRCA No. 2017-25, HRC No. 2017-24 HPPA No. 2017-29 October 5, 2017 Page 2 Chapter 30 of the Santa Aria Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation to the Santa Ana Register of Historical Properties, The first criterion for selection requires that the structures be 50 or more years old. The structure identified, meets the minimum selection criteria for inclusion on the Santa Ana Register of Historical Properties pursuant'to criteria contained in Section 3b-2 of the Santa Ana Municipal Code as the property is 86 years old and is a good example of period.architecture. No known code violations exist on record for this property. The property, recognized as the Hull House; has distinctive architectural features of the English Revival style, and was built in 1931 by Roy Russell, who was a contractor who subdivided the Floral Park neighborhood. Character defining features.of the Hull House that should.be preserved include, but may riot be limited to, materials and finishes, roof shape, configuration, and eave detailing; original windows where extant; brick chimney; stucco walls; porch size and shape. It is recommended that the house be designated to the Santa Ana Register of Historical Properties and categorized as "Contributive" for its exemplification of the distinguishing characteristics of the English Revival style (Exhibit 2). Mills Act Agreement Ordinance No, NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 3). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register: The agreement provides monetary incentive to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: • Long term preservation of the property and visual improvement to the neighborhood • Allows fora mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property The property has no identified unauthorized modification and is preserved in near its original condition. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement. r•• HRCA No. 2017-25, HRC No. 2017-24 HPPA No. 2017-26 October 5, 2017 Page 3 Public Notification The subject site is located within the Floral Park Neighborhood Association boundaries. The president of this neighborhood association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice advertising this public hearing, a notice was published In the Orange County Reporter and mailed notices were sent to all property owners within 500 feet of -the project site. At the time of this printing, no correspondence, either written or electronic, had been received from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve a historic resource. Categorical Exemption No. ER -2017-111 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective No. 2 (expand opportunities for conservation and environmental sustainability) and Objective No. 3 (facilitate diverse. housing opportunities, and support efforts to preserve and improve the. livability of Santa Ana neighborhoods). Ricardo`Soto Associate Planner RS.jm &HRC12017i2401 N Pownrtec Exhibits 1. 500' Radius Map 2. Department of Parks and Recreation Form 3. Mills Act Agreement 25A-89 500' RADIUS HRC 2017-24/HRCA 2017-25/HPPA'2017-29 2401 NORTH FLOWER STREET HULL HOUSE PLANNING AND BUILDING AGENCY EXHIBIT 1 25A-90 EXECUTIVE SUMMARY 2401 North Flower Street Santa Ana, CA 92706 NAME Hull -Carlyle House REF. NO. ADDRESS 2401 North Flower Street CITY Santa Ana ZIP 1 92706 ORANGE COUNTY YEAR BUILT 1931 LOCAL REGISTER CATEGORY: Key HISTORIC DISTRICT I None NEIGHBORHOOD I Floral Park CALIF. REGISTER CRITERIA FOR EVALUATION A/1, C/3 CALIFORNIA REGISTER STATUS CODE 2D, 5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: English Revival A simplification of the Tudor Revival, which reached its height of popularity during the 1920s and 1930s, the English Revival drew upon the English country house for its inspiration. English Revival homes usually feature stucco walls and gable roofs of steep but not exaggerated pitch. A characteristic roof treatment incorporates uneven rakes, with one side of a gable extending a greater distance than the other, sometimes changing the angle of slope in the process. Arches may be used for windows and doors, and, unlike their Tudor cousins, are rounded rather than pointed. Windows are usually clustered in groups on the fagade and are often multi -paned casement in type. Almost exclusively a residential style, English Revival buildings are nearly always asymmetrical in composition. SUMMARY/CONCLUSION: 2401 North Flower Street qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1, for its exemplification of the distinguishing characteristics of the English Revival style. Additionally, the house has been categorized as "Key" because it "has a distinctive architectural style and quality" and "is associated with a significant person or event in the city" (Municipal Code, Section 30-2.2). EXPLANATION OF CODES: California Register Criteria for Evaluation. (From California Office of Historic Preservation, Technical Assistance Bulletin # 7, September 4, 2001.) Associated with events that have made a significant contribution to the broad patterns of local or regional history or the cultural heritage of California or the United States It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • California Historical Resource Status Code. (From California Office of Historic Preservation Technical Assistance Bulletin #8, November 2004). 2D Contributor to a district determined eligible for NR by the Keeper. Listed in the CR. 5S3 Appears to be individually eligible for local designation through survey evaluation. EXHIBIT 2 25A-91 State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # PRIMARY RECORD Trinomial NRHP Status Code Other Listings Review Code Reviewer Date Pace 1 of 3 Resource name(s) or number Hull-Cadvle House P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad Date: September 11, 2017 *c. Address 2401 North Flower Street City Santa Ana Zip 92706 *e. Other Locational Data: APN: 002-073-09 Lot: 52 Tract: 754 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries.) Located on the east side of North Flower Street, the building is a one story, single-family residence constructed in the English Revival style. The house has an asymmetrical composition, and a cross -hipped moderate- and steep -pitched roof. The roof has little to no eaves, and is clad in contemporary asphalt shingle roofing. The primary, west elevation is dominated by a brick end chimney located at the front gable wing. The chimney is slightly taller than the top of the front facing gable it is centered on. The exterior is clad in stucco, and the primary elevation features several multilight casement windows. The primary entry faces south, and is accessed from a centrally located porch, sheltered by a moderate pitch shed roof. A poured concrete driveway south of the property leads to a detached garage located at the southeast corner of the parcel. The property is landscaped with a lawn, low vegetation, and a stone path along the north side of the lawn leading to a wood fence and gate. *133b. Resource Attributes: (list attributes and codes) HP2. Single-family Property W. Resources Present: ■Building ❑Structure ❑Object []Site ❑District El Element of District ❑Other *P11. Report Citation: (Cite survey report and other sources, or enter "none') None. P5b. Photo: (view and date) West elevation, view northeast, September 2017 *P6. Date Constructed/Age and Sources: ■historic 1931/0riginal building permit *P7. Owner and Address: Benjamin and Nicolette Ramirez 2401 North Flower Street Santa Ana, CA 92706 *P8. Recorded by: Olivia White/Chattel, Inc., for the City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: September 11, 2017 *P10. Survey Type: Intensive Survey Update *Attachments: []None ❑Location Map []Sketch Map ■Continuation Sheet ■Building, Structure, and Object Record []Archaeological Record ❑District Record []Linear Feature Record []Milling Station Record []Rock Art Record []Artifact Record []Photograph Record [] Other (list) DPR 523A (1195) 25A-92 *Required information State of California—The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 3 *NRHP Status Code _2D.5S3 'Resource Name or M 2401 North Flower Street B1. Historic Name: Hull -Carlyle House B2. Common Name: Same B3. Original Use: Single-family Residence B4. Present Use: Single-family Residence *B5. Architectural Style: English Revival style *B6. Construction History: (Construction date, alterations, and date of alterations): Constructed 1931. October 27, 1944. 1 Fix for M. Hull by Otto Juhlin, $70. October 2, 2002. Rerook Tear off shakes & apply Monier Cederlite Tile. October 16, 2002. New detached covered patio. October 11, 2011. Reroof.Tear off & apply composition shingles. *137. Moved? ENo MYes E3Unknown Date: Original Location: *138. Related Features: None. 139a. Architect: Unknown b. Builder: Roy Russell *1310. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1931 Property Type: Single-family Residence Applicable Criteria: 1, 4b. (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Hull -Carlyle House is architecturally significant as a characteristic example of the English Revival style. This house was originally constructed in 1931, and was valued at approximately $4,000, according to the original building permit. At the time of its construction the listed property owner was Roy Russell, who was a contractor who subdivided the Floral Park neighborhood. According to the 1935 city directory, the first recorded owner and occupant of the property was Martin Hull who was a veterinarian. The next recorded occupant according to city directories is Elizabeth B. Schulte. J. Wylie Carlyle is the next recorded occupant, who was a native Santa Anan and worked as the Orange County Recorder, and lived on the property from some time before 1956 through 1980. (See Continuation Sheet 3 of 3.) B11. Additional Resource Attributes: (List attributes and codes) *1312. References: California State Library, Great Register of Voters, 1900-1968. City of Santa Ana Building Permits. Harris, Cyril M. American Architecture: An Illustrated Encyclopedia. New York, WW Norton, 1998. (See Continuation Sheet 3 of 3.) B13. Remarks: *B14. Evaluator: Olivia White/Chattel, Inc., for the City of Santa Ana *Date of Evaluation: September 11, 2017 (This space reserved for official comments.) DPR 523B (1195) 25A-93 Sketch Map 2401 North Flower Street 4 5] i- N0. 7541 a FLOIER 'J ,• *Required information FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 V�Y.1oil rR]0104[. K0111F&i A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2017-25 TO PLACE THE PROPERTY LOCATED AT 2401 NORTH FLOWER STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2017-24 PLACING SAID PROPERTY WITHIN THE KEY CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. On October 5, 2017 the Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2017-25) and categorization (Historic Resources Commission Categorization No. 2017-24) of the Hull -Carlyle House located at 2401 North Flower Street, Santa Ana. B. The Hull -Carlyle House has distinctive architectural features of the English Revival style, and was built in 1931 by Roy Russell. C. This home qualifies for listing on the Santa Ana Register of Historical Properties and is eligible for categorization as Key. The Hull -Carlyle House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 for its exemplification of the distinguishing characteristics of the English Revival style. Typical features of this style illustrated by the house include its one-story massing, low -pitch hipped roof, and rectangular form; multi-level eaves; divided light casement windows; restrained porch; and dominant chimney. Additionally, the house has been categorized as "Key' because it "has a distinctive architectural style and quality' and "is associated with a significant person or event in the city." J. Wylie Carlyle, a native Santa Anan who worked as the Orange County Recorder, lived in the property from some time before 1956 through 1980. Character -defining features of the Hull -Carlyle House that should be preserved include, but may not be limited to, materials and finishes, roof shape, configuration, and eave detailing; original windows where extant; brick chimney; stucco walls; porch size and shape. D. The legal owners of the property are Benjamin and Nicolette Ramirez. Resolution No. 2017-21 25A-94 Page 1 of 4 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. F. The subject property meets the minimal standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimal standards for placement in the Key category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under Section 15331, Class 31, as these actions are designed to preserve historic resources. Categorical Exemption No. 2017-111 will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana after conducting the public hearing hereby approves: A. Historic Resources Commission Application No. 2017-25 to place the Hull - Carlyle House located at 2401 North Flower Street, Santa Ana, 92706 on the historical register, and B. Historic Register Categorization No. 2017-24 placing the Hull -Carlyle House located at 2401 North Flower Street, Santa Ana, 92706 within the Key category. These decisions are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Staff report and exhibits attached thereto; the report entitled "Historical Property Description" and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject property, a report entitled "Historical Property Description" is on file with the Planning Division, and is hereby approved and adopted, and together with the staff report and this resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorders Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. ADOPTED this 5th day of October 5, 2017. Alberta Christy Chairperson Resolution No. 2017-21 25A-95 Page 2 of 4 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Laura A. Rossini Senior Assistant City Attorney AYES: Commission m NOES: Commission members ABSTAIN: Commission NOT PRESENT: Commission members CERTIFICATE OF ATTESTATION AND ORIGINALITY I, ROSA BARELA, Acting Commission Secretary, do hereby attest to and certify the attached Resolution No. 2017-21 to be the original resolution adopted by Historic Resources Commission of the City of Santa Ana on October 5, 2017. Date: Acting Commission Secretary City of Santa Ana Resolution No. 2017-21 Page 3 of 4 25A-96 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 LEGAL DESCRIPTION APN Address Legal Description Owner Names 002-073-09 2401 North Flower Street TR 754, LOT 52 (LOT 51 SLY 30FT Benjamin and WLY 81.54 FT THEREOF Nicolette Ramirez Exhibit A Resolution No. 2017-21 Page 4 of 4 25A-97 25A-98 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: NOVEMBER 7, 2017 TITLE: APPROVED APPROVE AN AGREEMENT FOR GRANT- ❑ As Recommended FUNDED CITYWIDE SAFE ROUTES TO E]Amended E]OOrrdinance on 1s' Reading SCHOOL PLAN (PROJECT NO. 17-6730) ❑ Ordinance on od Reading (STRATEGIC PLAN NO. 5, 6B} ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Cla MANAGER RECOMMENDED ACTION Authorize the City Manager and the Clerk of the Council to execute an agreement with Alta Planning & Design, to provide transportation/traffic planning and engineering services, for the three-year term beginning November 7, 2017, and expiring November 6, 2020, in an amount not to exceed $585,000, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION Ensuring community youth are able to safely access school sites has long been a priority for the City of Santa Ana. In 2015, Public Works Agency staff submitted and received a grant from the State of California Active 'Transportation Program to develop a Citywide Safe Routes to School Plan (Plan). The intent of the Plan is to identify and map safe routes to schools, recommend infrastructure improvements and programs, develop cost estimates, and prioritize recommendations through a process of conducting walking audits at all public school site locations in the City of Santa Ana. A Request for Proposals (RFP) for transportation/traffic planning and engineering services was released and distributed on September 1, 2017 to qualified firms. The four proposals received were reviewed by a four -member committee comprised of Public Works Agency, Orange County Healthcare Agency, and Orange County Transportation Authority staff. The proposal ratings were based on experience, qualifications, project understanding, and ability to meet the schedule. Once rated, the sealed fees from the top three firms were revealed. The following table summarizes the proposal scores: FIRM 1. Alta Planning & Design 2. Nelson\Nygaard .R: 2513-1 SCORE 88 79 .• Agreement for Grant -funded Citywide Safe Routes to School Plan November 7, 2017 Page 2 Staff recommends that Alta Planning & Design be retained for an amount not to exceed $585,000 for transportation/traffic planning and engineering services. This firm has demonstrated they have the experience and resources needed to provide the required services. The Consultant will interface both locally with City staff and other affected agencies; participating in weekly and/or daily Project meetings as the Citywide Safe Routes to School Plan is developed. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. Individual environmental reviews will be conducted for each recommended improvement at the time of implementation. These types of projects typically qualify for Categorical Exemptions. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #6 (focus projects and programs on improving the health and wellness of all residents), Strategy B (incorporate the improvement of walking and biking lanes as well as the development of a citywide bike master plan into the Circulation Element of the City's General Plan). FISCAL IMPACT The total cost of the agreement is not to exceed $585,000. Funds are budgeted available in the Active Transportation Program expenditure account (No. 14817613-66220, Project 17-6730). Funds are estimated to be spent as follows: Contract Period Fiscal Year Amount 2017-18 $468,000 2018-19 $58,500 2019-20 $57,000 2020-21 $1,500 TOTAL $585,000 APPROVED AS TO FUNDS AND ACCOUNTS: Fred Mousavip dr Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Management Services Agency FM/EWG/CW Exhibit 1: Agreement 25B-2 AGREEMENT FOR CITY-WIDE SAFE ROUTES TO SCHOOL PLAN THIS AGREEMENT is made and entered into this 7th -day, of November, 2017 by and between Alta Planning + Design, Inc. ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On September 1, 2017, the City issued Request for Proposal No. 17-099, by which it sought a Consultant to provide a City -Wide Safe Routes to School Plan. B. Consultant submitted a responsive proposal that was selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 17-099 and as more specifically delineated in Consultant's proposal. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall perform the services that were described in the scope of work that was included in RFP No. 17-099 and as more specifically delineated in Consultant's proposal, which is attached as Exhibit A and incorporated in full. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services under this Agreement, the rates and charges identified in Exhibit B. The total sum to be expended under the term of this Agreement shall not exceed $585,000. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. Exhibit 1 25B-3 3. TERM This Agreement shall commence on the date first written above and terminate on November 6, 2020, unless terminated earlier in accordance with Section 16, below. 4. INDEPENDENT CONSULTANT Consultant shall, during the entire term of this Agreement, be construed to be an independent Contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible mediwn-cf-expression including -but not limited -to; physieal - drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subconsultants, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts Page 2 of 8 25B-4 of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate, Such insurance shall (a) name the CITY, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the CITY; and (c) contain standard separation of insureds provisions. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: (i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by consultant, without thirty (30) days prior written notice to the City. (iv) Consultant shall supply City with a fully executed additional insured endorsement. f. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. Exhibit 1 g 25B-5 7. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant or its subconsultants, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the teens of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. Page 4 of 8 25B-6 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of Iaw; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714- 647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 Fax 714-647-5635 Page5of8 2B-7 To Consultant: Alta Planning+Design, Inc. Brett Hondorp, AICP, Vice President 617 W. 7th Street, Suite 1103 Los Angeles, CA 90017 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail, This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any tenns or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting.on behalf of any party, which are not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City. 15. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. Page 6 of 8 25B-8 16. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 17. NON-DISCRIIVIINATION Consultant shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 18. JURISDICTION -VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 19. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies, Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 20. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terns of of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b: All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: U/ %. t Jbfin M. Funk Assistant City Attorney FOR APPROVAL FRED MOUSAVIPOUR Executive Director, Public Works Agency CITY OF SANTA ANA Raul Godinez II City Manager CONSULTANT Name: Title: Page 8 of 8 25B-10 UNDERSTANDING OF NEED PROJECT UNDERSTANDING The City of Santa Ana is taking great strides in promoting walking and bicycling as safe and viable transportation options, evidenced by many recent infrastructure improvements and planning efforts. Building on this momentum, and recognizing that a majority of students already walk or bike to school, the City seeks to develop a citywide Safe Routes to School (SRTS) Plan. This effort will involve an extensive and inclusive community engagement process, identification and prioritization of school Infrastructure improvements, and the development of programs and strategies to better educate and encourage students to walk and bike to school. The result will be a comprehensive 6 E's SRTS Plan that will lead to improved safety and mobility for all Santa Ana residents, especially the commu- nity's students and youth, through engineering, education, encouragement, and enforcement recommendations. Santa Ana has many wide streets with high traffic volumes and speeds, often with narrow or no bike lanes, gaps and barriers in the sidewalk network, and crossing challenges. Increasing rates of bicy- clist and pedestrian -involved collisions indicate a clear need to focus on safety for residents walking or riding a bicycle, particularly for children—an especially vulnerable category of roadway users. Walking audits at all the schools will result in a list of infrastructure improvements to enhance safety Households Speaking Non-English Languages in Santa Ana 6%_15% 1_ 117%-26% U� 27% - 35% [t] 36% - 47% I! 48% - 69% • Public Schi —Santa Ana Santa Ana has a large population of non-English speakers. Alta understands the unique needs of multi-lingual communities, and has developed an outreach process that is inclusive, interactive, and productive so that all members of the community have a voice. EXHIBIT A within each school area, along with a prioritized set of SRTS corridors linking multiple school sites together. Throughout this process, language and cultural barriers will need to be overcome. Approximately 60% of Santa Ana Unified School District students are English learners, with Spanish, Vietnamese, and Khmer the most common non-English languages spoken at home. As such, ensuring that outreach is culturally and linguistically appro- priate will be key to ensuring equitable participa- tion of students and their families. The planning and outreach processes will need to be compre- hensive in order to capture input from differing groups and stakeholders, and adequately address the varying needs and interests of all community members. Our outreach approach, based on our many years of SRTS program engagement in diverse schools, involves direct engagement with each school community to listen to the concerns and input of residents, and develop solutions that they can support and take ownership of to further projects toward implementation. SCOPE OF WORK We have developed a comprehensive scope of work based upon our understanding of the City's needs, regional objectives, and our experience successfully completing other Safe Routes to School plans. The scope of work addresses the RFP, includes robust public participation, and features innovative planning and public engage- ment tools. These combined efforts will yield a community -supported Safe Routes to School (SRTS) Pian that aims to both improve safety throughout the city and enhance the quality of life for the City's residents by making bicycling and walking more viable, safe, equitable, and enjoy- able for people of all ages and abilities. Task 1: Project Management TASK 1.1. PROJECT KICK-OFF MEETING Alta will hold a kickoff meeting with City of Santa Ana staff to: N Review project goals and objectives w Review scope of services u Collect available data and published materials Establish meeting schedule Establish communication protocol 5 25B-11 • Review and list applicable design and plan- ning standards r Coordinate with City departments and other agencies In advance of the kickoff meeting, Alta will prepare the agenda for the meeting and a data needs request memorandum that lists major items needed to advance the project, including GIS data and key policy documents for background review. At the conclusion of the kickoff meeting, key action items will be identified, and the project schedule will be revised (as needed). TASK 1.2. ONGOING PROJECT MANAGEMENT Alta Quality Assurance, or "AQUA", refers to our approach to providing services and developing deliverables that satisfy client requirements in a systematic, reliable way. Our goal is to achieve a high level of"Alta Quality" in our products throughout each phase of work. The project manager and prin- cipal -in -charge are always responsible for quality control, and the principal -in -charge is engaged at the beginning of the project and at major decision points. Alta's quality assurance process includes the following: Mandatory review of all products Selection of the appropriate reviewer for the product - u Good decision making about when and who to engage for review Scheduling the time required for review in advance of the product due date Alta project managers use Deltek Vision softwareto manage the complete lifecycle of a project. Project costs, fees, and schedule are captured in real time for accurate and complete client budgeting and billing. We will conduct cost and technical reviews at project milestones. These reviews enhance productivity and provide high quality service to our clients. Alta will provide monthly invoices and project status updates that will include budget and deliv- erable progress, identifying potential delays and proposed corrective actions. Alta will maintain a City of Santa Ana business license throughout the life of the project. Alta believes in open communication with our clients for successful plan development. Throughout the project, there will be ongoing coordination between Alta's Project Manager, Ryan Johnson, LCI, and the City of Santa Ana's Project Manager — including email, phone, and written communica- tion to keep the City apprised of progress, antici- pate review dates, and preview future deliverables, meetings, and presentations. We propose to hold weekly calls with the City's Project Manager so that the project stays on schedule, on budget, and continues to meet City expectations. In addition, Alta will provide monthly status updates that will include budget and deliverable progress. TASK 1.3. WEEKLY PROJECT DEVELOPMENT TEAM MEETINGS Project Manager Ryan Johnson, LCI, understands the value of community feedback and stakeholder engagement and welcomes the development of an inclusive and comprehensive Project Development Team (PDT). Expanding the membership of the PDT to include representatives with a focus on the daily school trips throughout Santa Ana will be impor- tant. The inclusion of stakeholders involved with K-12 education in Santa Ana, along with members knowledgeable about active transportation, equity, and open space, will be another important first step in the PDT/Project Team collaboration. Alta looks forward to facilitating project team coordina- tion with the PDT, as their guidance will add essen- tial value to this project and its products. In consultation with City staff, Alta will develop a list of potential PDT members. Upon agreement Primary Author w; Technical Editor J w: >: W; J •••••• Project Manager < :3 ® :w Principal :w E N ® J •W :W Primary Author ......•• :w J Principal LEVEL 3 REVIEW NV Client Review of Final Product The Alta team employs a three-tier quality control system which, coupled with our familiarity with city processes, will facilitate the highest /eve/ of OA/OC for the project. 6 25B-12 .',n .',.I I .n on membership, the City of Santa Ana will invite candidates to participate in the PDT. Alta will facili- tate weekly PDT teleconference meetings, with up to five (5) in-person meetings at key project milestones. Alta will prepare the PDT meeting agendas, presentation materials, and bullet -point summa- ries outlining next steps and action items. Task 1 Deliverables: • Kick -Off Meeting Agenda, Meeting Notes • Data Needs Memorandum • Monthly Status reports, invoices • Weekly project update calls with Client Project Manager • Weekly PDT Meetings • Meeting Agendas and Notes . AQUA Review of all deliverables Task 2: Community Outreach and Data Collection TASK 2.1. COMMUNITY OUTREACH PLAN At the beginning of the project Alta and KPA will develop a stakeholder outreach plan that outlines details for soliciting community input through a robust, transparent, equitable, and multi -layered process involving direct engagement to schools and residents, partnership with local community- based organizations, school -focused walking audits, and two (2) citywide community meet- ings. This targeted outreach plan will include a proposed schedule for the 43 meetings at elemen- tary schools including PTA and ELAC meetings, Back -to -School Nights, and may also consider Youth Football or Little League games to setting up displays and collecting surveys. The community outreach plan will also include recommendations for multi-lingual engagement, and equity consider- ations. The stakeholder outreach plan will include coordination with the PDT to build on their ideas, resources, and media outlets. We will strive to identify a school champion or liaison at each of the participating schools. These champions will be critical in serving as a connec- tion to the broader school community for outreach, input, and promoting participation at events such as the walking audits. We will also utilize existing school meetings and channels of communica- tion, such as PTA/PTO and ELAC meetings, to conduct outreach and gather feedback on issues, 7 recommendations and priorities.. Alta will also provide strategies for ensuring that outreach materials and meetings are available in identified priority languages at each school. TASK 2.2. COMPILE BASELINE DATA In preparation for the planning process, Alta will collect and analyze baseline data to understand the active transportation network deficiencies and opportunities in Santa Ana. Alta seeks to collect and review the following background data and documents to gain a better understanding of the school environment: • SWITRS injury collision data (for the most recent available 10 years) • Speed surveys, as available Traffic counts, as available Health assessments for each school from the Orange County Health Care Agency, California Health Interview Survey, and other sources Geographically based crime statistics n School attendance area maps School schedule information, including bell times and minimum days School enrollment data and maps, if available n Student travel mode tallies/surveys, as avail- able (conducting new tallies described below) Demographic and Socioeconomic Data to support equity analyses Crossing guard locations Road and right-of-way data: curb and street markings, street lights, sidewalks, bikeway facilities, bike parking Relevant studies, reports, and grant applications • Public transit nodes, major transit stops near schools, and boarding/alighting information, as available b Land use data • Existing and ongoing Active Transportation Efforts in Santa Ana and adjacent cities including Safe Mobility Santa Ana, Santa Ana In Motion, Santa Ana Downtown Complete Streets Plan, and OCTA, Garden Grove, and SCAG efforts A Data Request Memo will be prepared and provided to the City Project Manager outlining GIS and planning data requested from the City, County, 25B-13 and school districts to complete this review and analysis. The Memo will detail what information is needed from the City and/or school districts, and what data Alta will be able to collect if not provided. TASK 2.3. STUDENT TRAVEL TALLIES In order to get a current baseline for student mode of travel to school, we recommend conducting Student Travel Tallies at all schools participating in this project (assuming they do not have recent tallies from other SRTS efforts). Student tallies follow a standard protocol from the National SRTS Center and are the most cost-effective way to obtain student mode split data for large numbers of schools. Based on our experiencing managing the 180+ school Alameda County SRTS program where annual travel tallies are a required compo- nent, Alta has developed a very efficient process for distributing tally forms, providing instruction and training to teachers to administer tallies, and collecting and entering the data. Alta will mail each Santa Ana school a packet with specific instruc- tions for conducting the tallies, a sufficient number of tally forms in hardcopy (with an online form option), and postage -paid return envelope to return to Alta for data entry. Depending on the contract start date, we will work with the City and school districts to identify the optimal tally period to obtain this baseline mode data. As SRTS improvements are implemented in Santa Ana, follow up tallies Alta has extensive experience leading walking audits, which will result in a robust list of prioritized infrastructure improvements the City can incorporate into ongoing maintenance, capital improvement projects, and potential grant funding applications. can be conducted to track progress toward goals of increasing active and shared modes of travel. TASK 2.4. WALKING AUDITS Walking audits offer both an outreach opportu- nity and a formal process to identify needed engi- neering improvements at Santa Ana's 62 project schools. This task will result in a robust list of prioritized infrastructure improvements the City can incorporate into ongoing maintenance, lists of Capital Improvement Projects, and potential grant funding applications. Alta will work with City staff, the PDT, and the 62 project schools to schedule walking audits and invite stakeholders, such as parents, faculty, school and school district staff, law enforcement representatives, OCTA, commu- nity organizations (e.g., Latino Health Access, Santa Ana Active Streets, and the Safe Routes to School National Partnership), and neighbors. We will work with City staff to identify the specific walking audit routes. Pre -Audit Survey Prior to conducting an audit, we will send a short Pre -Audit Survey to the administrator of each school (typically Principal or Vice Principal). We have found that these surveys are helpful in gath- ering basic information about issues and hot spots around the school, and allow us to more effectively plan for and conduct the audits. The survey will ask basic information about operational conditions at the school, drop-off/pick-up procedures, and any problem areas that the Walking Audit Team should focus on. Information gathered from the survey will help the team prepare the base mapping and better understand conditions in advance of the walking audit, including whether to schedule the audit during the drop-off or pick-up period. Collected background data will be assembled into the base maps to be used as the basis for the walking audit and recommended improvement plan. Conducting the Walking Audit The Alta team will facilitate a walking audit at each school during either school drop-off or pick-up hours. Stakeholders invited to the audit will include City staff (Active Transportation Coordinator, Public Works, Planning), Santa Ana Police Department, school and school district staff, parents, students, community organizations (e.g., Latino Health Access, Santa Ana Active Streets, and the Safe Routes to School National Partnership), and other interested community members. The session will begin with a brief training for participants to review the process. Stakeholders are given pens and clip- boards, 8.5"x11"printed aerial maps of the schools, EV 25B-14 and a walking audit checklist that prompts them to look for specific infrastructure elements and traffic behaviors during the assessment. During the walking audit, we will observe, document, and photograph existing behavioral and physical condi- tions that may serve as barriers or challenges to safe walking, bicycling, vehicle, or transit circula- tion/access in the school area including: n Parking (onsite/offsite) A Loading/Circulation (onsite/offsite) • Crossings (intersection, midblock, marked, unmarked, yield compliance) • Sidewalks and pathways (presence, width, condition, access barriers) A Bikeways (presence, width, condition) n Transit stops, routes, and access pathways n Crossing guards (locations, times on duty) • Traffic signal operations • School area striping, signage, and markings (condition, compliance, color) n Bicycle parking facilities • School access points/gates • Local traffic circulation patterns Immediately following the observations during the drop-off or pick-up, the Alta team's engineers and planners facilitate a working session with a large- scale aerial map where stakeholders discuss and summarize the observed safety challenges and brainstorm solutions. During the working session, we will also gather input on recommended routes for walking and biking to school that will serve as a basis for the Suggested Routes to School Maps. Walking Audits at Intermediate and High Schools Alta will conduct school site and vicinity audits at the City's ten (10) intermediate and nine (9) high schools, providing the same services and deliv- erables as provided for the elementary schools. Upper grade level schools provide opportunity for increased student involvement in the walking audit process. Particularly for high schools, we will make efforts to work with a group of students (e.g., Green Team, Health Academy, Student Leadership) to participate in the walking audits—this provides an opportunity to understand students unique perspectives of barriers and challenges they face in commuting to school on foot, bicycle or via transit, and also helps to engage them in taking ownership of potential solutions and improvements on and around the campus. 9 TASK 2.5. SUPPLEMENTAL DATA COLLECTION Extensive background data will be collected in Task 2.1 prior to the walking audits. We recog- nize that as part of developing engineering recom- mendations, further data collection efforts may be needed around school areas, such as additional traffic volume data, turning movements, or speed surveys. For budgeting purposes the Alta team assumes that we will conduct one set of manual bicycle/pedestrian counts (per SCAG method- ology), and one set of automated vehicular traffic counts at each of the 62 schools. Specific loca- tions at which to collect additional data would be determined in conjunction with City engineering staff to support project recommendations. TASK 2.6. RECOMMENDED IMPROVEMENTS Following each walking audit, Alta will draft a technical memo and conceptual improvement plan displaying recommended improvements on an annotated aerial map, which can serve as the basis for future grant applications. For each school the Technical Memo will include: Basic School information • Address v Arrival and dismissal times n Enrollment A Site layout and existing facilities Summary of Existing Conditions and Needs n List of participants in the assessment Photos Summary of issues identified during back- ground data collection and assessment/ walking audit » Any other identified major barriers (freeways, arterials) that may be discouraging active modes to school, even if outside immediate walking audit map boundary Recommendations: Infrastructure/operations: Conceptual improvement plan with Cost Estimates Policy or programmatic recommendations Given the large number of Walking Audits being conducted, it will be important to have a well- defined review process to ensure that draft recom- mendations are being reviewed and revised in a timely manner. In our experience conducting numerous school walking audits it is important to 25B-15 provide follow-up feedback to walking audit partici- pants within 2 months of conducting the audit, so they continue to stay engaged and understand how they can support proposed improvements. A general schedule for walking audit review would be as follows, ensuring that the recommendations from each audit reach the school stakeholders within 8 weeks. • Within 3 weeks of conducting each walking audit, an Internal Draft Technical Memo and conceptual improvement plan is completed and submitted to City x City Review (approx. 2 weeks) • Public Draft Technical Memo and conceptual improvement plan are completed and distrib- uted to school stakeholders (2 weeks) We will maintain a master database of all site assessments conducted for the project program, including date of walking audit and date of concept improvement plan. The City and school districts can use this database to track future grant pursuits and project implementation. La Escuela Elemental Brooks to invita a particiapar en la . - Inspeccion de las Rutas Seguras para it a lalEscbela - Caminando y en Bicjcleta. Martes, 12 de Novlembre. 8:25-10:25 a.m. vdw,IWtun6b:a.hln.ya,ruuYrnalrG:¢,GeI�m:N 6mli Bmok,[I.men,ary wmw„Mmo-nwm a wa+a n m m,,u_ uax n<om: r ren,..ap- r �m :am -a- x�m cAvsava J v. r aeeha WY X Md, D yedar b Mrt r Run,' 9 dduP R I Ire bl let to ,[,ivl n,- Camomejorareluauoe la oauela pantodesioen�Ros. Eunte9las W nl a bfnl a I I,u„d4 en blaaetapana s pn tid aIS ...u 'T. TASK 2.7. ONGOING OUTREACH AND COMMUNITY MEETINGS In addition to the 43 meetings or events at elemen- tary schools and targeted outreach activities for intermediate and high schools, Alta will conduct two (2) citywide community meetings; the first will occur at the beginning of the project, and a second meeting will take place after development of the draft SRTS Plan. It is suggested that meetings take place during established community festivals or high -traffic events to elicit input from those who would not necessarily attend meetings. Informal events such as the annual Cinco de Mayo Festival represent great opportunities to interact face-to- face with families to build awareness of the SRTS Plan, and get input and feedback on improvements. Our team proposes the following be included in each meeting: Meeting #1: n Introduce the SRTS planning project, identify community -wide goals and objectives, and solicit general suggestions from stakeholders x Present baseline data and improvement benchmarks SAFE ROUTES 0109 -sl _ TO SCHOOL nroai^ i Alta is experienced in creating a range of meeting materials, including meeting notifications, e -blasts, handouts, sign -in sheets, comment cards, and directional signage. us 25B-16 Meeting #2: a Present suggested priority school area walking audit findings, recommended Safe Routes to School Corridors, and engineering countermeasure assessments • Present the draft SRTS Plan, including non - infrastructure program recommendations and the Plan's Implementation Strategy At both meetings, Alta forms to participants to back and suggestions process. will circulate evaluation allow for additional feed - n improving the planning Language interpretation services will be made available at both community meetings (up to three). Additional language interpretation will be consid- ered, as requested by the City and PDT. Alta will use multiple strategies to advertise the citywide community meetings, determined in discussions with the City and PDT. These strate- gies might include: n Presentations to school staff, at PTA meet- ings, to neighborhood groups, etc. • Social media platforms such as Facebook and Twitter Flyers, posters, and other announcements such as take-home handouts, announce- ments on school campus marquees, and posters and flyers at school events, churches, and community events Coordination with other active transportation plans/projects in Santa Ana and other regional efforts to leverage stakeholder contacts and involvement. Latino Health Access (LHA) has agreed to partner with us to actively provide assistance with marketing to the community; our budget includes a stipend to compensate LHA for outreach support. Parent advocates from the City will also recom- mend tailored strategies for outreach to our diverse student population and their families. These strate- gies may vary from school to school depending on the ethnic, racial, and linguistic composition of the students and their families. Our graphic design team has worked with numerous communities to create a 'look and feel' for SRTS plans and programs, and we will create a unique font and color scheme for the Santa Ana SRTS Plan that will provide consistency and legiti- macy throughout the project. 11 Alta will develop content for up to four (4) social media posts and up to three (3) print -ready marketing materials (flyers, posters, etc.) for each community meeting using the final graphic scheme, adjusting the text content to fit with each school site as needed. We will provide outreach materials in electronic PDF and Microsoft Word copies, so the project partners can adjust the minor details if needed. We will prepare black and white versions for reproduction on school printers, and templates will help future implementors quickly have the docu- ments they need to conduct outreach. Our multi- lingual team will provide the outreach materials in up to 3 languages; we assume the City will provide translation into other languages as needed. Alta will also create one (1) introductory PowerPoint presentation that can be used for all meetings the PDT group members wish to have with stakeholder organizations, such as school PTAs. Alta can translate this presentation for up to 3 languages; we assume the City will provide translation into other languages as needed. TASK 2.8. DEMONSTRATION PROJECT AT OUTREACH MEETING Alta will identify a specific infrastructure project at one of the suggested priority school locations or along a suggested priority SRTS Corridor for a pop-up/"tactical urbanism' demonstration to immediately illustrate the benefit of adding active transportation infrastructure. Alta is currently leading the Southern California Association of Governments' (SCAG's) Go Human Tactical Urbanism Phase 2 events and will integrate many of the proven strategies from that series into this demonstration. Alta will work with City and school district staff to finalize a site plan and coordi- nate permitting, with the understanding that the demonstration would be no more than 1-2 blocks in scale, and may possibly only exist in front of one school. Depending on the availability of mate- rials and volunteers, the project may be smaller. For maximum impact, Alta recommends to tie the demonstration to an existing community event or a project community outreach meeting. Exact project elements will be determined through a collaborative design process with City and school district staff, as well as access to donated or borrowed materials. Materials will need to be affordable and easily replaceable, due to the likeli- hood of damage or vandalism, which is expected if left in place for more than a week or two. Alta will coordinate with SCAG to potentially utilize 25B-17 Alta will develop a demonstration project at one of the suggested priority school locations or along a suggested priority SRTS corridor, and will integrate many of the proven strategies that we gained from our experience leading the most recent round of SCAG Go Human Tactical Urbanism events. their existing Go Human demonstration materials. Other demonstration materials, such as vegeta- tion, can be solicited from local businesses and organizations. On-site surveys will be collected from people walking or bicycling with the aid of a temporary installation of clipboards and a box to collect paper surveys. Temporary signage will also inform pass- ersby of the demonstration project and solicit infor- mation through an easily remembered website address to allow drivers and other users passing by the project, but unable to stop, to contribute feedback. Most importantly, any temporary designs must meet safety criteria for a temporary street element, and we will work closely with City engineers to identify ways to protect the safety of all road users and reduce liability for both the City and our team. Task 2 Deliverables: . Walking Audit notices • Walking Audits at every participating school Participant lists . Audit photographs Geodatabase and AutoCAD file of infrastructure issues and recommended improvements Traffic counts near schools . Technical memorandum summarizing data collected • Community Outreach Plan • Multi-lingual marketing materials such as presentations, photos, social media postings, and flyers • One presentation slide deck for PDT use • Meeting agendas and notes • Participant evaluation forms . One (1) school focused pop-up demonstration project Task 3: GIS Mapping TASK 3.1. PREPARE SUGGESTED ROUTE TO SCHOOL MAPS Based on GIS data and input received during the site assessments, Alta will develop Suggested Route to School maps for each school that focus on key corridors near schools for students to walk, bike, and access transit. Suggested Route to School maps can be an effective tool in identifying preferred routes to school for walking and bicycling based on existing infrastructure like sidewalks and bike lanes, or traffic controls/crossing guards for crossing streets. Suggested Route maps are user maps, intended to be used as a wayfinding, encouragement, and outreach tool, and generally developed at the scale of an entire enrollment area for elementary schools, and at a 1-3 mile radius for middle and high schools. N Suggested Route maps differ from Walking Audit Conceptual Improvement maps in that they are based on existing infrastructure condition, and they can also be used to prioritize infrastructure investments on key school routes. As infrastruc- ture improvements are made, the suggested routes maps should be updated to reflect new route information. The maps will show recommended walking and bicycling routes to school for the school enrollment areas (for elementary schools), and a 1-2 mile radius for middle and high schools. Suggested routes will be designated using arrows or high- lighted corridors, and we will show average walking and bicycling times from select locations. Maps will include: 25B-18 School boundary Suggested walking and biking routes (using arrows or highlighted corridors) 12 u Park and Walk locations ., Key traffic controls ,, Bicycle facilities (lanes, routes, paths) Pedestrian facilities (sidewalks, trails, marked crossings) School access points Bicycle parking locations Crossing guard locations u Transit stops 1/2 -mile and 1 -mile radius buffers Average walking and biking times from select locations on the map Map legends will be provided in both English and Spanish. As an optional task in Suggested Route development, we can customize and utilize Alta's School Mapper app (IOS and Android, devel- oped as part of the Alameda Countywide SRTS program). This app allows participants to use their mobile phone to map their route to school, and also to identity barriers along the way. Use of this app to map school routes may be particularly effective at the middle and high school levels, and could be incorporated into a student exercise in order to gain additional input. As part of the suggested mapping process, Alta will develop a strategy for collecting infrastruc- ture data that does not exist in GIS. This may include field investigations at schools to take field measurements with GIS/GPS enabled devices and recording via the ESRI Collector app and using digital photography. The ESRI Collector app will be used to document the presence and char- acteristics of bicycle and pedestrian facilities and amenities, including sidewalks, crosswalks, bikes lanes, and more. The ESRI Collector app data will be directly synced with GIS to produce existing conditions maps. TASK 3.2. PRESENT AND FINALIZE SAFE ROUTES TO SCHOOL ROUTE MAPS Alta will present the maps and relevant findings to the PDT. One Alta team member will attend the presentations. The Client will arrange meeting logistics, including meeting date, time, location, and noticing. Alta will prepare a presentation with the most relevant findings and will bring the Safe Routes to School route maps so City staff and the PDT have an opportunity to comment and 'make recommendations. After the City Project Manager provides us with a single consolidated set of non -contradictory comments, Alta will finalize and deliver the suggested Safe Routes to School Route Maps for the PDT's review and approval. Once the PDT has reviewed and approved the Safe Routes to School Route Maps, Alta will incorporate them into the Draft SRTS Plan. Task 3 Deliverables: • Suggested Route maps for each school • Presenting Suggested Route Maps to PDT • Presentation materials 'r+11LOsR/ZU P,ANIC`EtIGH-� sccccs\iowniT�cdoumro:tiiam. . '1 Y Alta is adept at creating clear and visually pleasing Suggested Route to School maps. 13 25B-19 1\OC t tl � pyo ren 0 003\P`0 4 using digital photography. The ESRI Collector app will be used to document the presence and char- acteristics of bicycle and pedestrian facilities and amenities, including sidewalks, crosswalks, bikes lanes, and more. The ESRI Collector app data will be directly synced with GIS to produce existing conditions maps. TASK 3.2. PRESENT AND FINALIZE SAFE ROUTES TO SCHOOL ROUTE MAPS Alta will present the maps and relevant findings to the PDT. One Alta team member will attend the presentations. The Client will arrange meeting logistics, including meeting date, time, location, and noticing. Alta will prepare a presentation with the most relevant findings and will bring the Safe Routes to School route maps so City staff and the PDT have an opportunity to comment and 'make recommendations. After the City Project Manager provides us with a single consolidated set of non -contradictory comments, Alta will finalize and deliver the suggested Safe Routes to School Route Maps for the PDT's review and approval. Once the PDT has reviewed and approved the Safe Routes to School Route Maps, Alta will incorporate them into the Draft SRTS Plan. Task 3 Deliverables: • Suggested Route maps for each school • Presenting Suggested Route Maps to PDT • Presentation materials 'r+11LOsR/ZU P,ANIC`EtIGH-� sccccs\iowniT�cdoumro:tiiam. . '1 Y Alta is adept at creating clear and visually pleasing Suggested Route to School maps. 13 25B-19 1\OC t tl using digital photography. The ESRI Collector app will be used to document the presence and char- acteristics of bicycle and pedestrian facilities and amenities, including sidewalks, crosswalks, bikes lanes, and more. The ESRI Collector app data will be directly synced with GIS to produce existing conditions maps. TASK 3.2. PRESENT AND FINALIZE SAFE ROUTES TO SCHOOL ROUTE MAPS Alta will present the maps and relevant findings to the PDT. One Alta team member will attend the presentations. The Client will arrange meeting logistics, including meeting date, time, location, and noticing. Alta will prepare a presentation with the most relevant findings and will bring the Safe Routes to School route maps so City staff and the PDT have an opportunity to comment and 'make recommendations. After the City Project Manager provides us with a single consolidated set of non -contradictory comments, Alta will finalize and deliver the suggested Safe Routes to School Route Maps for the PDT's review and approval. Once the PDT has reviewed and approved the Safe Routes to School Route Maps, Alta will incorporate them into the Draft SRTS Plan. Task 3 Deliverables: • Suggested Route maps for each school • Presenting Suggested Route Maps to PDT • Presentation materials 'r+11LOsR/ZU P,ANIC`EtIGH-� sccccs\iowniT�cdoumro:tiiam. . '1 Y Alta is adept at creating clear and visually pleasing Suggested Route to School maps. 13 25B-19 Task 4: Safe Routes to School Corridors TASK 4.1. DEVELOP SRTS CORRIDOR PRIORITIES AND MAPS Once recommendations have been developed for all schools, Alta will identify suggested Safe Routes to School Corridors that link multiple school sites together. These corridors will provide opportunities to package together smaller project improvements into larger corridor or system -wide projects that can be prioritized and can more effec- tively compete for grant funding. Identified SRTS Corridors will link back to the Suggested Route Maps and will identify projects with the greatest potential for safety and mobility benefit. Alta will develop recommended prioritization criteria based on community and PDT input as well as best prac- tices from other similar communities. The criteria will be used to systematically evaluate and priori- tize projects based on potential to improve local conditions for safe walking and bicycling to school while also addressing regional connectivity and travel patterns. The criteria may include consider- ations such as ability to address safety concerns, community priorities, gap closures, connectivity to additional destinations beyond the school such as community centers and parks, and potential to address transportation challenges for under- served populations. The recommended criteria and measures will be provided to City staff and the PDT for review and approval. Alta will utilize the performance criteria and measures to develop a citywide priority project list based on the needs assessment, public and stake- holder input, and funding feasibility. The SRTS Corridor List will include cost estimates per project and per corridor. Alta will map the citywide SRTS corridors illustrating priority improvement areas. Cost estimates will be derived from the costs developed in the Conceptual Improvement Plans in Task 2. Task 4 Deliverables: • Safe Routes to School Corridor Maps • Priority Project List Task 5: Citywide Safe Routes to School Plan Alta will develop a Draft SRTS Plan, which will include input from stakeholders and community members and the list of recommendations and priorities developed in the preceding tasks, which will position Santa Ana, along with its partnerschool districts, to apply forfuture grant funding from local, state, and federal sources. The Draft SRTS Plan will be based on the "Six E's" of SRTS planning (i.e., Engineering, Education, Encouragement, Enforcement, Evaluation, and Equity). Becoming a truly bike- and walk -friendly city requires a multi -faceted approach, including strate- gies beyond traditional engineering and infrastruc- ture projects. Alta will update or develop Education, The photosimulation above demonstrates possible safety enhancements at Sepulveda Elementary School, including curb extensions and high visibility crosswalks. Photosimulalions can be used in grant applications to communicate how a facility might be used in the local context. 14 25B-20 Encouragement, Enforcement, and Evaluation Policies and Strategies to include the latest tech- nology and best practices. Alta is the only bicycle and pedestrian planning firm with a department dedicated to planning and implementing education and encouragement components. of non -motor- ized programs. Alta will review existing bicycle and pedes- trian education, encouragement, outreach, and enforcement programs in the City of Santa Ana and at individual schools. Based on community and stakeholder interests, concerns, needs, and resources for programs as well as best practices for model programs, we will develop recommen- dations among the programming "E's" (Education, Encouragement, Enforcement, and Evaluation) through an Equity lens (the fifth non -infrastruc- ture "E"). Recommendations will incorporate Safe Routes to School programs, in -school and city- wide education, marketing campaigns, regular bicycle and pedestrian counts, and more. These findings will be included in the Programs and Policies Chapter, which will include an overview of existing programs and develop a custom suite of new program recommendations, along with a brief description of the equity considerations that should be made (for instance, reviewing how enforcement policies can avoid disproportionately targeting members of disadvantaged communities). The Draft SRTS Plan will be reviewed by City staff, the PDT, and the City Council. The City Project Manager will provide Alta with one consolidated set of non -contradictory comments. The Revised Draft Plan will be presented at the second citywide community meeting to solicit public input. Alta will incorporate feedback and edits from City staff, the PDT, and the City Council into a final Safe Routes to School Plan. This will be reviewed by City staff, the PDT, and the City Council for final approval. The City Project Managerwill provide one consolidated set of non -contradictory comments to Alta for a final round of revisions. Alta will help the City Project Manager to draft the adoption reso- lution, develop presentation materials, and attend one City Council Meeting to present the final SRTS Plan or will assist City staff on the presentation. OPTIONAL TASK: ONLINE MAPPING TOOL Once the school area improvements, recom- mended routes, and improvement corridors are approved by the City and the PDT, Alta will develop an online mapping tool with toggle -able layers showing collision history, demographics, planned improvements, improvement corridors, and photo - simulations. Since the majority of the public does not look at plans and maps on a day-to-day basis, this tool will provide the public a better under- standing of what is being proposed. Alta brings creativity to our visual renderings, adding elements such as public art and potential economic development, to capture the vibrancy of streets and public spaces. We pay special atten- tion to details such as making sure figures shown in renderings depict the people regularly living and visiting the neighborhood and using native or local plants and trees. Alta will prepare up to ten (10) photosimulations of recommended projects to be included in the SRTS Plan. The photosimu- lations will address landscape and urban design elements. Task 5 Deliverables: • Education, Evaluation, Encouragement, and Enforcement Policies and Strategies, with Equity considerations • Recommended Programs and Policies Chapter • Administrative Draft Santa Ana Safe Routes to School Plan • Public Draft Santa Ana Safe Routes to School Plan • Final Santa Ana Safe Routes to School Plan • Slide Deck for Presentation before City Council • City Council Meeting (Up to two (2] Alta staff in attendance) • Online mapping tool with ten (10) project photo - simulations (Optional) 7s 25B-21 25B-22 e r'J - f-1 o O„ o u O O ..... 0 ��8�a o 6 m o "imi6 e ee,o1ega..eem;eleeo ssief•6owgeemj��mwo me{si6:6ew meigleoe oay;iemmwge�e�o;eee m ;.I. 6 eew g o. JEJ.e {" M .,., .�-1„�. .7 je w.emem wqae a -I 6 m olijl gio fw o o a o w ..olc o r•� �.r w o{ e e yea 25B-24 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE AGREEMENTS WITH KDC SYSTEMS, ENTERPRISE AUTOMATION, AND INDUSTRIAL CONTROL SYSTEMS ONLINE, INC. FOR WATER SYSTEMS CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES (RFP NO. 17- 087) (STRATEGIC PLAN NO. 6, 2) C MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute on-call agreements to provide water systems control design, programming and support services for the three-year period beginning November 7, 2017, and expiring November 30, 2020, with provisions for a two-year renewal option exercisable by the City Manager and City Attorney, in an annual amount not to exceed $85,000, for a total not to exceed amount of $255,000 subject to nonsubstantive changes approved by the City Manager and City Attorney, with the following vendors: Vendor Location KDC Systems Los Alamitos Enterprise Automation Irvine Industrial Control Systems Online, Inc. Ripon DISCUSSION The City of Santa Ana Public Works Agency (PWA) oversees and maintains the daily operations of a highly automated and complex water system consisting of pump stations, wells, reservoirs and flow control valves. These operations require a robust network of industrial controls to properly manage the water system. The controls and monitoring equipment, located at water sites across the city, allow water system operators to monitor the water system for abnormalities, check system statuses, and manage the water system effectively. It is necessary, from time to time, to adjust the control software programs due to changes in operation, system upgrades and updates, and for troubleshooting of both mechanical and software malfunctions. Staff prepared a Request for Proposals (RFP) to select up to three approved consultants for as - needed water systems control design, programming, and support services. The RFP was 25C-1 Agreements for Water Systems Control Design, Programming, and Support Services November 7, 2017 Page 2 advertised on the City's Planet Bids website, as well as the City Public Works website on August 2, 2017. Eight proposals were received and evaluated by a selection committee. All firms scored above the minimum acceptable score of 70. Listed below are the responding firms and their respective scores: Rank FIRM Location Score 1 KDC Systems Los Alamitos 95 2 Enterprise Automation Irvine 94 3 Industrial Control Systems Online, Inc. Ripon 91 4 Vertech Irvine 89 5 ASCE Engineering, Inc. Irvine 84 6 ProUsys Bakersfield 84 7 PMCM Consulting Engineers Los Angeles 77 8 Weber Water Resources Management, San Bernardino 76 LLC In accordance with the RFP, staff recommends awarding contracts to the top three rated firms. Each demonstrated a high technical competency and ability to respond to the City's needs. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and available in the current fiscal year Water Utility Water Production and Supply Fund (Account No. 06017640-62300), and will be requested in subsequent fiscal years. Funds are estimated to be spent as follows: FISCAL YEAR 2017/18 ESTIMATED EXPENDITURE $42,500 FY 2018/19 $85,000 FY 2019/20 $85,000 FY 2020/21 $42,500 TOTAL: $255,000 25C-2 Agreements for Water Systems Control Design, Programming, and Support Services November 7, 2017 Page 3 *62 t --wt Fred Mousavi ur Executive Director Public Works Agency ►ff!-. -. APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibits: 1. Agreement with Enterprise Automation 2. Agreement with Industrial Control Systems 3. Agreement with KDC Systems 25C-3 25C-4 AGREEMENT TO PROVIDE WATER SYSTEMS CONTROL DESIGN, PROGRAMMING, AND SUPPORT SERVICES ON AN ON-CALL BASIS THIS AGREEMENT is made and entered into this 7th day of November, 2017 by and between Enterprise Automation ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On August 2, 2017, the City issued Request for Proposal No. 17-087, by which it sought Consultants to provide Water Systems Control Design, Programming, and Support Services on an on-call basis for the City's water production and control facilities. B. Consultant submitted a responsive proposal that was among those selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 17-087 and attached as Exhibit A. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES On an as -needed basis, and at the sole discretion of City, Consultant shall perform the services that are described in Exhibit A. Consultant's proposal is incorporated by reference as though fully set forth herein. When the need for services arises, City may initiate services through use of a task or similar order issued to Consultant. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. Consultant is one of three consultants selected to provide services on an as -needed basis under RFP No. 17-087. The total annual compensation for services provided by all consultants selected under RFP No. 17-087 shall not exceed $85,000 during the term of the Agreement, including any extension periods. Exhibit 1 25C-5 b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. TERM This Agreement shall commence on the date first written above and terminate on November 30, 2020, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2 -year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONSULTANT Consultant shall, during the entire term of this Agreement, be construed to be an independent Contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Page 2 of 8 25C-6 Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subconsultants, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the CITY, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the CITY; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: Page 3 of 8 25C-7 (i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by consultant, without thirty (3 0) days prior written notice to the City. (iv) Consultant shall supply City with a fully executed additional insured endorsement. f. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith tenninate this Agreement. Such tennination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEIVMFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant or its subconsultants, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, J udicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant 's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Page 4 of 8 25C-8 9. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or doctunents provided by Consultant to the City pursuant to this Agreement. 10. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 11. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) ,is independently developed by the Consultant without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement Page 5 of 8 25C-9 shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 Fax 714-647-5635 To Consultant: Enterprise Automation 210 Goddard Irvine, CA 92618 Fax 949-769-6005 A party may'change its address by giving notice in writing to the other party. Thereafter; any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above, For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terns of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. Page 6 of 8 25C-10 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services -which are the subject to this Agreement performed by City personnel or by other consultants retained by City. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, not shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. JURISDICTION -VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement Pa e7of8 2C-11 shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 20. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b: All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: V. J M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL FRED MOUSAVIPOUR, Executive Director Public Works Agency CITY OF SANTA ANA Raul Godinez 11 City Manager CONSULTANT Name: Title: Page 8 of 8 25C-12 CITY OF SANTA ANA EXHIBIT A RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES SCOPE OF WORK Introduction and Background: The City of Santa Ana is located in the heart of Orange County, California and is approximately 27 square miles. The City provides potable drinking water for all of the City's residents and businesses. The City's water production system consists of 22 wells, 4 pressure control stations, 7 Metropolitan Water District connections, 7 water booster stations and 8 reservoirs. Control and monitoring of the water system is coordinated via the City SCADA system using a series of radios to send and receive data from remote locations to the City Home SCADA control room. Description of Work: The City desires to retain qualified Consultants to provide control system design, engineering, integration, and programming support on an as -requested basis for the City's water production facilities. The City's facilities are controlled by the Dynac ES SCADA software as provided by Kapsch TrafficCom USA, Inc. The City water production sites consist of facilities with many of the following components: Modicon Momentum Programmable Logic Computers (PLC), ABB Variable Frequency Drives (VFD), Limitorque motor operated valves .(MOV), mag meters (various brands) and other related appurtenances. Local control is often achieved via a human machine interface (HMI) local to the remote terminal unit (RTU) control panel. The HMIs at any station are either the Magelis HMI or a Unitronics display. It is the City's desire that all site control reside within the site PLC with the HMI acting primarily as a site control interface relaying operator commands to the site PLC. Consultant Responsibilities: CONTROL SYSTEM DESIGN SERVICES Consultant shall be required to provide full control panel designs which conform to City standards, for well, pump motor and control valve operations. Control panel designs shall contain fully engineered diagrams that specify all equipment, back panels, terminal blocks, special components and related items. Also included in the design shall be all control wiring diagrams, specific 1/0, panel elevations, item and quantity lists with specific part numbers. Control systems designs shall be complete and inclusive of all information necessary for the City to utilize as bid/procurement documents to have the panels built and installed. The Consultant shall provide SCADA, control and instrumentation design support services, including but not limited to those described below: • Consultant shall perform field investigations of existing control panel wiring to verify and, as needed, correct wiring drawings for existing control panels. Consultant shall make corrections to wiring drawings as necessary to reflect current field conditions prior to performing any detailed design work. • Consultant shall provide and/or prepare documentation, schematic drawings, and SCADA network configuration diagrams for future use, maintenance, and programming of the SCADA system. The detailed design documents may include the following: o Hardware Engineering and Design Layout— Scaled drawings shall be prepared showing existing 25C-13 Page 1 of 3 CITY OF SANTA ANA RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES and new components, such as control/PLC panels, with clear indication of new versus existing Bill of Materials of any new PLC modules of components required by the design project Control/PLC Panel Wiring Diagrams — Show all new and modified wiring required in the control panel, including wire numbers and colors, terminal numbers, and component tag numbers and/or description names. Include the panel end of field wires that terminate in the control panel for use by the electrical contractor that is responsible for pulling and terminating field wires into the control/PLC cabinets. Updated 1/0 list with existing and new point locations and addresses. The Consultant shall be responsible to provide on-call control system programming in ladder logic, function blocks, and structured text in the following programming languages: Concept v 2.6 Unity Vijeo Designer Visilogic The Consultant shall also be familiar with programming ABB VFD drives, PID loop controls programming (to be programmed in the PLC, not the VFD), and other related duties as assigned. All programming activities shall be documented, appropriately annotated within the coding and coordinated/approved witb/by the City's designated change manager. As a part of any programming task, the Consultant shall be expected to perform any or all of the following: • Develop loop diagrams for all UO connections to the PLC showing connections between the PLC Panel and the remote instruments or equipment. • Prepare a software submittal. • Include new communication to VFD's, power monitors, and equipment control panels. • Develop Factory and Site Acceptance testing plans to be submitted to the City for review and approval. • Execute the test plan to the satisfaction of the City. • Perform PLC UO software functional testing. • Provide a software operations and maintenance manual covering the developed software. • Prepare record drawings. • Perform planning, monitoring, configuration, troubleshooting, backup and repair of control system hardware and/or software. TROUBLESHOOTING. REPAIR AND MAINTENANCE: Consultant shall conduct troubleshooting and repair of electrical control systems, instrumentation equipment, communication gaps, and software as required to keep the SCADA control systems in proper working order. Consultant shall inform or make recommendations to City of all applicable software updates, licenses, or programming that would benefit or improve the City's SCADA control systems. With City approval, Consultant shall install the recommended software/hardware upgrades or make modifications as necessary and agreed upon to improve the systems as described. Page 2 of 3 25C-14 CITY OF SANTA ANA RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES ADDITIONAL RELATED DUTIES THAT MAY BE ASSIGNED: • The Consultant will be required to adhere to City's tagging standards. Tagging should include information both on physical devices, instruments, equipment, PLCs, control cabinets, as well as tagging within the historian and data warehouse. • The Consultant may be required to create dashboard concept designs and standards. This will include elements that should be provided on an HMI dashboard. The intent is to provide information to benefit operations and provide operator controls as dictated by the City. • The Consultant may be required to create, enhance and/or maintain PLC programming standards. Under this duty, the Consultant shall develop application programming templates, subroutines, function blocks and data structures to minimize the level of custom programming required to operable assets to any sites such as pump stations. Standardized templates and modules shall serve as starting points for future programming efforts. • The Consultant may be required to supply and install HMIs, PLCs and/or related replacement hardware necessary to complete assigned tasks. The Consultant shall provide an estimate to the City for all hardware necessary and proceed, upon City approval, to purchase said hardware, install as necessary and program. All equipment provided shall comply with City standards and be charged with a standard markup of no more than 10%. TINIELINESS/RESPONSIVENES S: The Consultant shall respond to on-call service requests via phone call or email within 24 hours and be capable of arriving on site to perform in-situ troubleshooting and repairs within 48 hours of service request. PROJECT MANAGEMENT & COORDINATION The selected Consultants shall attend one (1) contract kick-off meeting at the City's Corporate Yard located at 220 S. Daisy Ave., Santa Ana, CA 92703 at which City staff will share contact information, safety and security protocols and familiarize the consultants with the City's sites and equipment. Consultants must provide the City with a written estimate for all requested services. Consultant shall not proceed with any work without the approval of the City's designated project manager. Consultants shall invoice the City on a monthly basis for all work performed during the period. Each invoice shall be accompanied by a summary of tasks performed, results and progress on long-term tasks if any. HIGHLY DESIRABLE Special consideration will be given to those that can provide support for the DYNAC ES SCADA software to supplement the duties as provided by Kapsch TrafficCom USA, Inc. Knowledge of Dyndraw, Dynacell, Linux Server and data warehouse structures will be related skills necessary to perform SCADA system repairs, patches or updates. 25C 5 Page 3of3 �GYi� v N` I •RMI • 1 City of Santa Ana Engineering Rates 2017-18 Architect $250/hr CAD $125/hr Admin $95/hr Out -of -Town $195/hr $205/hr $215/hr $225/hr $275/hr Out -of -Town rates apply when overnight lodging is required. Travel time is charged as regular Engineering time. Rate classifications charged by engineers are based on a project role/responsibility basis, not title. All w I Service calls covered by an Enterprise Automation service contract are prioritized whilst all other service 0 requests are dependent on existing schedules and the availability of engineering staff. v 1. Service calls not covered by a service contract are charged at double time with a 4 hour minimum. rn I EUnless otherwise arranged, overtime rates are: Time and a half outside of normal business hours, or time in excess of 8 hours per day m > Double time Saturday, Sunday and holidays, or time in excess of 12 hours per day O dPersonal vehicle mileage as per the published IRS mileage rate L° Expenses at cost (i.e. travel costs, telephone bills, mailing, freight charges, etc.) d y Subcontractors cost + 10% 01 Materials cost + 10% (i.e. shrink wrapped software, hardware, PLC panels, etc.) 210 GODDARD, IRVINE, CA 92619 Rates effective 11112017 through 12131/2018 Nothing leaves Enterprise untested 25C-16 VIX) PHONE: (949) 769-6000 WEB: WMAI.EAINTEGRATOR.COM Rate Classification Engineering Project Engineer 1 $185/hr Project Engineer 2 $195/hr Lead Engineer $205/hr N W Project Manager $215/hr Architect $250/hr CAD $125/hr Admin $95/hr Out -of -Town $195/hr $205/hr $215/hr $225/hr $275/hr Out -of -Town rates apply when overnight lodging is required. Travel time is charged as regular Engineering time. Rate classifications charged by engineers are based on a project role/responsibility basis, not title. All w I Service calls covered by an Enterprise Automation service contract are prioritized whilst all other service 0 requests are dependent on existing schedules and the availability of engineering staff. v 1. Service calls not covered by a service contract are charged at double time with a 4 hour minimum. rn I EUnless otherwise arranged, overtime rates are: Time and a half outside of normal business hours, or time in excess of 8 hours per day m > Double time Saturday, Sunday and holidays, or time in excess of 12 hours per day O dPersonal vehicle mileage as per the published IRS mileage rate L° Expenses at cost (i.e. travel costs, telephone bills, mailing, freight charges, etc.) d y Subcontractors cost + 10% 01 Materials cost + 10% (i.e. shrink wrapped software, hardware, PLC panels, etc.) 210 GODDARD, IRVINE, CA 92619 Rates effective 11112017 through 12131/2018 Nothing leaves Enterprise untested 25C-16 VIX) PHONE: (949) 769-6000 WEB: WMAI.EAINTEGRATOR.COM AGREEMENT TO PROVIDE WATER SYSTEMS CONTROL DESIGN, PROGRAMMING, AND SUPPORT SERVICES ON AN ON-CALL BASIS THIS AGREEMENT is made and entered into this 7th day of November, 2017 by and between Industrial Control Systems Online Inc. ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), RECITALS A. On August 2, 2017, the City issued Request for Proposal No. 17-087, by which it sought Consultants to provide Water Systems Control Design, Programming, and Support Services on an on-call basis for the City's water production and control facilities. B. Consultant submitted a responsive proposal that was among those selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 17-087 and attached as Exhibit A. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES On an as -needed basis, and at the sole discretion of City, Consultant shall perform the services that are described in Exhibit A. Consultant's proposal is incorporated by reference as though fully set forth herein. When the need for services arises, City may initiate services through use of a task or similar order issued to Consultant. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. Consultant is one of three consultants selected to provide services on an as -needed basis under RFP No. 17-087. The total annual compensation for services provided by all consultants selected under RFP No. 17-087 shall not exceed $85,000 during the term of the Agreement, including any extension periods. , Exhibit 2 25C-17 b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written. above and terminate on November 30, 2020, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2 -year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on `public works" and "maintenance" projects. If the services being performed are part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONSULTANT Consultant shall, during the entire term of this Agreement, be construed to be an independent, Contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance -and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Page 2 of 8 25C-18 Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. M11,11) 617,1061 D' Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subconsultants, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles, The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the' aggregate. Such insurance shall (a) name the CITY, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the CITY; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. C. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: Page 3 of 8 25C-19 (i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by consultant, without thirty (30) days prior written notice to the City. (iv) Consultant shall supply City with a fully executed additional insured endorsement. f If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant or its subconsultants, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terns of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant 's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Page 4 of 8 25C-20 9. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. f[I;lti 0 0 Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 11. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and farther agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use •and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to infonnation disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement Page 5 of 8 25C-21 shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 Fax 714-647-5635 To Consultant: ICS Online Inc. P.O. Box 381 Ripon, CA 95366 Fax 209-599-1793 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terns or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. Page 6 of 8 25C-22 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City. No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement maybe terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. JURISDICTION -VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement 296-'h shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 20. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b: All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: /Ii." T 41 J M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL FRED MOUSAVIPOUR Executive Director, Public Works Agency CITY OF SANTA ANA Raul Godinez 11 City Manager CONSULTANT Name: Title: Page 8 of 8 25C-24 CITY OF SANTA ANA EXHIBIT A RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES SCOPE OF WORK Introduction and Background: The City of Santa Ana is located in the heart of Orange County, California and is approximately 27 square miles. The City provides potable drinking water for all of the City's residents and businesses. The City's water production system consists of 22 wells, 4 pressure control stations, 7 Metropolitan Water District connections, 7 water booster stations and 8 reservoirs. Control and monitoring of the water system is coordinated via the City SCADA system using a series of radios to send and receive data from remote locations to the City Home SCADA control room. ]Description of Work: The City desires to retain qualified Consultants to provide control system design, engineering, integration, and programming support on an as -requested basis for the City's water production facilities. The City's facilities are controlled by the Dynac ES SCADA software as provided by Kapsch TrafficCom USA, Inc. The City water production sites consist of facilities with many of the following components: Modicon Momentum Programmable Logic Computers (PLC), ABB Variable Frequency Drives (VFD), Limitorque motor operated valves (MOV), mag meters (various brands) and other related appurtenances. Local control is often achieved via a human machine interface (HMI) local to the remote terminal unit (RTU) control panel. The HMIs at any station are either the Magelis HMI or a Unitronics display. It is the City's desire that all site control reside within the site PLC with the HMI acting primarily as a site control interface relaying operator commands to the site PLC. Consultant Responsibilities: CONTROL SYSTEM DESIGN SERVICES Consultant shall be required to provide full control panel designs which conform to City standards, for well, pump motor and control valve operations. Control panel designs shall contain fully engineered diagrams that specify all equipment, back panels, terminal blocks, special components and related items. Also included in the design shall be all control wiring diagrams, specific UO, panel elevations, item and quantity lists with specific part numbers. Control systems designs shall be complete and inclusive. of all information necessary for the City to utilize as bid/procurement documents to have the panels built and installed. The Consultant shall provide SCADA, control and instrumentation design support services, including but not limited to those described below: Consultant shall perform field investigations of existing control panel wiring to verify and, as needed, correct wiring drawings for existing control panels. Consultant shall make corrections to wiring drawings as necessary to reflect current field conditions prior to performing any detailed design work. • Consultant shall provide and/or prepare documentation, schematic drawings, and SCADA network configuration diagrams for future use, maintenance, and programming of the SCADA system. The detailed design documents may include the following: o Hardware Engineering and Design Layout — Scaled drawings shall be prepared showing existing Page 1 of 3 25C-25 CITY OF SANTA ANA RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES and new components, such as control/PLC panels, with clear indication of new versus existing o Bill of Materials of any new PLC modules of components required by the design project o Control/PLC Panel Wiring Diagrams — Show all new and modified wiring required in the control panel, including wire numbers and colors, terminal numbers, and component tag members and/or description names. Include the panel end of field wires that terminate in the control panel for use by the electrical contractor that is responsible for pulling_ and terminating field wires into the control/PLC cabinets. o Updated 1/0 list with existing and new point locations and addresses. IUt(fle)wnsImilk, CeI The Consultant shall be responsible to provide on-call control system programming in ladder logic, function blocks, and structured text in the following programming languages: Concept v 2.6 Unity Vijeo Designer Visilogic The Consultant shall also be familiar with programming ABB VFD drives, PID loop controls programming (to be programmed in the PLC, not the VFD), and other related duties as assigned, All programming activities shall be documented, appropriately annotated within the coding and coordinated/approved witbfby the City's designated change manager. As a part of any programming task, the Consultant shall be expected to perform any or all of the following: • Develop loop diagrams for all UO connections to the PLC showing connections between the PLC Panel and the remote instruments or equipment. • Prepare a software submittal. • Include new communication to VFD's,.power monitors, and equipment control panels. • Develop Factory and Site Acceptance testing plans to be submitted to the City for review and approval. • Execute the test plan to the satisfaction of the City. • Perform PLC UO software functional testing. • Provide a software operations and maintenance manual covering the developed software. • Prepare record drawings. • Perform planning, monitoring, configuration, troubleshooting, backup and repair of control system hardware and/or software. TROUBLESHOOTING: REPAIR AND MAINTENANCE: Consultant shall conduct troubleshooting and repair of electrical control systems, instrumentation equipment, communication gaps, and software as required to keep the SCADA control systems in proper working order. Consultant shall inform or make recommendations to City of all applicable software updates, licenses, or programming that would benefit or improve the City's SCADA control systems. With City approval, Consultant shall install the recommended software/hardware upgrades or make modifications as necessary and agreed upon to improve the systems as described. Page 2 of 3 25C-26 CITY OF SANTA ANA RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES ADDITIONAL RELATED DUTIES THAT MAY BE ASSIGNED: • The Consultant will be required to adhere to City's tagging standards. Tagging should include information both on physical devices, instruments, equipment, PLCs, control cabinets, as well as tagging within the historian and data warehouse. The Consultant may be required to create dashboard concept designs and standards. This will include elements that should be provided on an HMI dashboard. The intent is to provide information to benefit operations and provide operator controls as dictated by the City. The Consultant may be required to create, enhance and/or maintain PLC programming standards. Under this duty, the Consultant shall develop application programming templates, subroutines, function blocks and data structures to minimize the level of custom programming required to operable assets to any sites such as pump stations. Standardized templates and modules shall serve as starting points for future programming efforts. • The Consultant may be required to supply and install HMIs, PLCs and/or related replacement hardware necessary to complete assigned tasks. The Consultant shall provide an estimate to the City for all hardware necessary and proceed, upon City approval, to purchase said hardware, install as necessary and program. All equipment provided shall comply with City standards and be charged with a standard markup of no, more than 10%. TIIyIELINESS/RESPONSIVENESS: The Consultant shall respond to on-call service requests via phone call or email within 24 hours and be capable of arriving on site to perform in-situ troubleshooting and repairs within 48 hours of service request. PROJECT MANAGEMENT & COORDINATION The selected Consultants shall attend one (1) contract /tick -off meeting at the City's Corporate Yard located at 220 S. Daisy Ave., Santa Ana, CA 92703 at which City staff will share contact information, safety and security protocols and familiarize the consultants with the City's sites and equipment. Consultants must provide the City with a written estimate for all requested services. Consultant shall not proceed with any work without the approval of the City's designated project manager. Consultants shall invoice the City on a monthly basis for all work performed during the period. Each invoice shall be accompanied by a summary of tasks performed, results and progress on long-term tasks if any. HIGHLY DESIRABLE: Special consideration will be given to those that can provide support for the DYNAC ES SCADA software to supplement the duties as provided by Kapsch TrafficCom USA, Inc. Knowledge of Dyndraw, Dynacell, Linux Server and data warehouse structures will be related skills necessary to perform SCADA system repairs, patches or updates. 25C-27 Page 3 of 3' EXHIBIT B Industrial Control Systems Online Inc. ( �www.iosonlineino.com 7 /V August 31, 2017 City of Santa Ana Attn: Cesar Barrera Public Works Agency; City Corporation Yard 220 South Daisy Avenue, Bldg A Santa Ana, CA 92703 Dear Mr. Barrera, We are pleased to submit Industrial Control Systems Online Incorporated Fee proposal in response to your RFP NO.:17-087 to provide control system design, programming and support services for the City's water production and control facilities. Fee Rate / Proposal: Ph (209) 599-9775 PO Box 381 Ripon, CA 95366 25C-28 Fax (209) 599-1793 Scheduled Service(10 Working Days Task Notice) Rate/Hr Minimum Control System Design / Engineering 100 @ ICS $95.00 N/A 101 Control System Design /CAD @ ICS $75.00 N/A PLC/HMI Programming / Engineer @ 102 ICS $95.00 NIA 103 UL508A Panel Assembly @ ICS $65.00 1 104 Remote Supportl Engineer @ ICS $95.00 1 Onsite PLC/HMI Programming / 105 Engineer $110.00 4 106 Onsite Startup Support / Technician $75.00 4 Emergency Service(w/48 hrs Task Response) Rate/Hr Minimum PLC/HMI Programming / Engineer @ 200 ICS $110.00 1 201 Remote Support/ Engineer @ ICS $110.00 1 Onsite PLC/HMI Programming / 202 Engineer $125.00 8 203 Onsite Startup Support / Technician $110.00 8 Ph (209) 599-9775 PO Box 381 Ripon, CA 95366 25C-28 Fax (209) 599-1793 f/w Industrial Central Systems Online Inc. www.icsonlineinc.com Task Parts 300 ICS cost + 10% Task Expense 400 ICS cost + 10% Onsite Rates do not include travel expenses. Travel time would be charged at the @ ICS rate. Sales tax and Delivery are not included. All tasks will be billed as they are completed with 30 day terms. We would be pleased to answer any questions you might have regarding our submission. Thank you for the opportunity to submit our proposal for your consideration. Sincerely, Steve Scrosati CEO/Engineering Manager Ph (209) 599-9775 PO Boz 381 -Ripon, CA 95366 25C-29 Fax(209)599-1793 25C-30 AGREEMENT TO PROVIDE WATER SYSTEMS CONTROL DESIGN, PROGRAMMING, AND SUPPORT SERVICES ON AN ON-CALL BASIS THIS AGREEMENT is made and entered into this 7th day of.November, 2017 by and between KDC Systems ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City'). RECITALS A. On August 2, 2017, the City issued Request for Proposal No. 17-087, by which it sought Consultants to provide Water Systems Control Design, Programming, and Support Services on an on-call basis for the City's water production and control facilities. B. Consultant submitted a responsive proposal that was among those selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 17-087 and attached as Exhibit A. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES On an as -needed basis, and at the sole discretion of City, Consultant shall perform the services that are described in Exhibit A, Consultant's proposal is incorporated by reference as though fully set forth herein. When the need for services arises, City may initiate services through use of a task or similar order issued to Consultant. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services perfonned under this Agreement at the rates and charges identified in Exhibit B. Consultant is one of three consultants selected to provide services on an as -needed basis under RFP No. 17-087. The total annual compensation for services provided by all consultants selected under RFP No. 17-087 shall not exceed $85,000 during the term of the Agreement, including any extension periods. Exhibit 3 25C-31 b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on November 30, 2020, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended for one 2 -year period upon a writing executed by the City Manager and City Attorney. 4. PREVAILING WAGES Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq„ as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the services being performed are part of an applicable `public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 5. INDEPENDENT CONSULTANT Consultant shall, during the entire term of this Agreement, be construed to be an independent Contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to -be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Page 2 of 8 25C-32 Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. I6.11M NNU40 Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subconsultants, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the CITY, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the CITY; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the California Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. C. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: Page 3 of 8 25C-33 (i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be famished to the City upon execution of this Agreement and shall be approved by the City. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect, by consultant, without thirty (30) days prior written notice to the City. (iv) Consultant shall supply City with a fully executed additional insured endorsement. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination, Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant or its subconsultants, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Page 4 of 8 25C-34 9. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney's fees, for infringement of any United States' letters patent, trademark, or copyright contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. W0 99aCK4" Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 11. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 12. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement Page 5 of 8 25C-35 shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 Executive Director Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, CA 92702 Fax 714-647-5635 To Consultant: KDC Systems Attn: William P. Davenport, Executive Vice President 4462 Corporate Center Drive Los Alamitos, CA 90720 Fax: 714-236-2291 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terns of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terns or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the tenns and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. Page 6 of 8 25C-36 15. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel, or by other consultants retained by City. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 18. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or in connection with any activities under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 19. JURISDICTION -VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement Page 7 of 8 25C-37 shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 20. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 21. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b: All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney A o7 By: lN..r Jofn M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL FRED MOUSAVIPOUR, Executive Director Public Works Agency CITY OF SANTA ANA Raul Godinez II City Manager CONSULTANT Name: Title: Paae 8 of 8 25C-38 CITY OF SANTA ANA EXHIBIT A RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES SCOPE OF WORK Introduction and Background: The City of Santa Ana is located in the heart of Orange County, California and is approximately 27 square miles. The City provides potable drinking water for all of the City's residents and businesses. The City's water production system consists of 22 wells, 4 pressure control stations, 7 Metropolitan Water District connections, 7 water booster stations and 8 reservoirs. Control and monitoring of the water system is coordinated via the City SCADA system using a series of radios to send and receive data from remote locations to the City Home SCADA control room. Description of Work: The City desires to retain qualified Consultants to provide control system design, engineering, integration, and programming support on an as -requested basis for the City's water production facilities. The City's facilities are controlled by the Dynac ES SCADA software as provided by Kapsch TrafficCom USA, Inc. The City water production sites consist of facilities with many of the following components: Modicon Momentum Programmable Logic Computers (PLC), ABB Variable Frequency Drives (VFD), Limitorque motor operated valves (MOV), mag meters (various brands) and other related appurtenances. Local control is often achieved via a human machine interface (HMI) local to the remote terminal unit (RTU) control panel. The HMIs at any station are either the Magelis HMI or a Unitronics display. It is the City's desire that all site control reside within the site PLC with the HMI acting primarily as a site control interface relaying operator commands to the site PLC. Consultant Responsibilities: CONTROL SYSTEM DESIGN SERVICES Consultant shall be required to provide full control panel designs which conform to City standards, for well, pump motor and control valve operations. Control panel designs shall contain fully engineered diagrams that specify all equipment, back panels, terminal blocks, special components and related items. Also included in the design shall be all control wiring diagrams, specific 1/0, panel elevations, item and quantity lists with specific part numbers. Control systems designs shall be complete and inclusive of all information necessary for the City to utilize as bid/procurement documents to have the panels built and installed. The Consultant shall provide SCADA, control and instrumentation" design support services, including but not limited to those described below: • Consultant shall perform field investigations of existing control panel wiring to verify and, as needed, correct wiring drawings for existing control panels. Consultant shall make corrections to wiring drawings as necessary to reflect current field conditions prior to performing any detailed design work. • Consultant shall provide and/or prepare documentation, schematic drawings, and SCADA network configuration diagrams for future use, maintenance, and programming of the SCADA system. The detailed design documents may include the following: o Hardware Engineering and Design Layout —Scaled drawings shall be prepared showing existing Page 1 of 3 25C-39 CITY OF SANTA ANA RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES and new components, such as control/PLC panels, with clear indication of new versus existing Bill of Materials of any new PLC modules of components required by the design project Control/PLC Panel Wiring Diagrams — Show all new and modified wiring required in the control panel, including wire numbers and colors, terminal numbers, and component tag numbers and/or description names. Include the panel end of field wires that terminate in the control panel for use by the electrical contractor that is responsible for pulling and terminating field wires into the control/PLC cabinets. Updated UO list with existing and new point locations and addresses. PROGRAMMING The Consultant shall be responsible to provide on-call control system programming in ladder logic, function blocks, and structured text in the following programming languages: Concept v 2.6 Unity Vijeo Designer Visilogic The Consultant shall also be familiar with programming ABB VFD drives, PID loop controls programming (to be programmed in the PLC, not the VFD), and other related duties as assigned. All programming activities shall be documented, appropriately annotated within the coding and coordinated/approved witb/by the City's designated change manager. As a part of any programming task, the Consultant shall be expected to perform any or all of the following: • Develop loop diagrams for all 1/0 connections to the PLC showing connections between the PLC Panel and the remote instruments or equipment. • Prepare a software submittal. • Include new communication to VFD's, power monitors, and equipment control panels. • Develop Factory and Site Acceptance testing plans to be submitted to the City for review and approval. • Execute the test plan to the satisfaction of the City. • Perform PLC UO software functional testing. • Provide a software operations and maintenance manual covering the developed software. • Prepare record drawings. • Perform planning, monitoring, configuration, troubleshooting, backup and repair of control system hardware and/or software. TROUBLESHOOTING. REPAIR AND MAINTENANCE: Consultant shall conduct troubleshooting and repair of electrical control systems, instrumentation equipment, communication gaps, and software as required to keep the SCADA control systems in proper working order. Consultant shall inform or make recommendations to City of all applicable software updates, licenses, or programming that would benefit or improve -the City's SCADA control systems. With City approval, Consultant shall install the recommended software/hardware upgrades or make modifications as necessary and agreed upon to improve the systems as described. Page 2 of 3 25C-40 CITY OF SANTA ANA RFP NO.: 17-087 WATER SYSTEM CONTROL DESIGN, PROGRAMMING AND SUPPORT SERVICES ADDITIONAL RELATED DUTIES THAT MAY BE ASSIGNED: • The Consultant will be required to adhere to City's tagging standards. Tagging should include information both on physical devices, instruments, equipment, PLCs, control cabinets, as well as tagging within the historian and data warehouse. The Consultant may be required to create dashboard concept designs and standards. This will include elements that should be provided on an HMI dashboard. The intent is to provide information to benefit operations and provide operator controls as dictated by the City. The Consultant may be required to create, enhance and/ot maintain PLC programming standards. Under this duty, the Consultant shall develop application programming templates, subroutines, function blocks and data structures to minimize the level of custom programming required to operable assets to any sites such as pump stations. Standardized templates and modules shall serve as starting points for future programming efforts. • The Consultant may be required to supply and install HMIs, PLCs and/or related replacement hardware necessary to complete assigned tasks. The Consultant shall provide an estimate to the City for all hardware necessary and proceed, upon City approval, to purchase said hardware, install as necessary and program. All equipment provided shall comply with City standards and be charged with a standard markup of no more than 10%. TDAELINESS/RESPONSIVENESS: The Consultant shall respond to on-call service requests via phone call or email within 24 hours and be capable of arriving on site to perform in-situ troubleshooting and repairs within 48 hours of service request. PROJECT MANAGEMENT & COORDINATION The selected Consultants shall attend one (1) contract kick-off meeting at the City's Corporate Yard located at 220 S. Daisy Ave., Santa Ana, CA 92703 at which City staff will share contact information, safety and security protocols and familiarize the consultants with the City's sites and equipment. Consultants must provide the City with a written estimate for all requested services. Consultant shall not proceed with any work without the approval of the City's designated project manager. Consultants shall invoice the City on a monthly basis for all work performed during the period. Each invoice shall be accompanied by a summary of tasks performed, results and progress on long-term tasks if any. I:ltel:lftwb Special consideration will be given to those that can provide support for the DYNAC ES SCADA software to supplement the duties as provided by Kapsch TrafficCom USA, Inc. Knowledge of Dyndraw, Dynacell, Linux Server and data warehouse structures will be related skills necessary to perform SCADA system repairs, patches or updates. 25C-41 Page 3 of 3 EXHIBIT B 1. FEE KDC Systems is offering the rates listed below for work conducted under the proposed contract. Project Manager $140 General Manager $140 Engineering Manager $140 Senior Engineer $130 Engineer $120 CAD Designer $60 25C-42 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE AN INCLUSIONARY HOUSING AGREEMENT WITH SHEA HOMES LIMITED PARTNERSHIP FOR A PROJECT TO BE LOCATED AT 2001 WEST MACARTHUR BOULEVARD, SANTA ANA, CALIFORNIA 92704 {STRATEGIC PLAN NO. 5, 3B} CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO ,..., FILE NUMBER MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute an Inclusionary Housing Agreement with Shea Homes Limited Partnership, a California Limited Partnership, in an amount not to exceed $1,727,055, subject to non -substantive changes approved by the City Manager and City Attorney. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At their Regular Meeting on October 25, 2017, by a vote of 4:0 (De Leon, Ramos and Santana absent), the Community Redevelopment and Housing Commission recommended that the City Council authorize the City Manager and Clerk of the Council to execute an Inclusionary Housing Agreement with Shea Homes Limited Partnership, a California Limited Partnership, in an amount not to exceed $1,727,055. DISCUSSION The Housing Opportunity Ordinance ("Ordinance") encourages the development of affordable housing by requiring the inclusion of affordable units within developments that involve either an increase in the density otherwise available under applicable zoning and development standards; a change in land use designation from a zoning regulation that does not permit residential uses to one that does permit residential uses; or the conversion of rental units to condominium ownership. This ordinance applied to all projects entitled after November 2011. Developers have the option to pay an in -lieu fee based on the habitable square foot of the project to satisfy the Ordinance requirements. 2513-1 Inclusionary Housing Agreement — Shea Homes Limited Partnership November 7, 2017 Page 2 Shea Homes Limited Partnership, developer of the project located at 2001 W. MacArthur Boulevard (Exhibit 1), will comply with the Housing Opportunity Ordinance by paying an in -lieu fee of $15 per habitable square foot in the total approximate amount of $1,727,055. The developer will pay this fee prior to pulling their first building permit, anticipated in March 2018. The development, the Artisan at South Coast, will consist of a 42 -unit single-family residential development within a gated community. The residences will range in size from 2,819 square feet to 3,038 square feet, will be two stories high, and will contain a minimum of three bedrooms and four bathrooms. Plan 1 will have a flex space that can be used as either a fourth bedroom or a den, with the Plan 2 incorporating an "In -Law Suite" into the residences. Four parking spaces will be provided for each unit, with two spaces in the garage and two spaces in the driveway. The project will also include 7,053 square feet to be dedicated for common open space and recreational areas. The entire development is market -rate housing. The estimated start date for construction is March 2018 and it will take approximately 18 months to complete. The project will be built in seven phases. The developer has been working with staff to complete the documents required by the Housing Opportunity Ordinance. The Inclusionary Housing Agreement (Exhibit 2) satisfies the inclusionary housing requirement of the project and is consistent with the standards set forth in the Ordinance. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy B (Ensure compliance with the City's Housing Opportunity Ordinance by requiring rental and ownership housing projects that meet specified criteria provide a minimum of 15% affordable units). FISCAL IMPACT It is anticipated that funds in the amount of $1,727,055 will be received according to the Inclusionary Housing Plan which details that the fee is to be paid. prior to obtaining the first building permit related to the project. Upon receipt, the revenues will be deposited into the Inclusionary Housing Fund revenue account (no. 41718002-57896). F�obert M. Zurc mied Interim E irector Community Development Agency Exhibits: 1. Location Map 2. Inclusionary Housing Agreement PPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Db Finance and Management Services Agency 25D-2 Exhibit 1- Location Map 25D-3 Exhibit 1 - Location Map czo.wri a 414 -ie 414-17 ZAANNe < a � I MA o LJ; �oaMocc oN�ee u I' �z:oo GRffNVICLE Iwuvrcn STREET N M� 8ma4^ u ill E I N � O O�O'v a m iii I e e . I I ti• I Ol vv 2 ro I I N I n �Oo I ^ a wl I I A I � W I O I � � o I I T _ � T I � I �i) r> y. I I A I O oAH ?m� a,rTT:,.t. RAIrr I i z a TA SEET n I ,,,�,• I .0 a N t / O afrrr ST. N �0. r+ >O e pati • y oma I • � N pf N N a q n 1 Q W �mv 1 9 Ina j - nNi 412-53 412-52 25D-4 A Exhibit 2 - Inclusionary Housing Agreement 25D-5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92701 Attention: City Clerk To be recorded without fee. (Space Above This Line For Recorder's Use Only) (Government Code, §§ 6103 and 27383) INCLUSIONARY HOUSING AGREEMENT FOR PAYMENT OF IN -LIEU FEE THIS INCLUSIONARY HOUSING AGREEMENT is dated as of November 7, 2017, by and between the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership ("Developer"). RECITALS A. The City's Housing Opportunity Ordinance ("Ordinance") was originally adopted by the City Council on November 28, 2011 and is codified in Article XVIII.1 Section 41 —1900 of the City's Municipal Code. The Ordinance was amended by the City Council on September 1, 2015, in Ordinance No. NS -2881, and on October 6, 2015, in Ordinance No. NS - 2885. B. The Roman Catholic Diocese of Orange is the current fee owner of the property located at 2001 West MacArthur Boulevard, Santa Ana, California ("Property"), but the Developer anticipates closing escrow on the Property in early November 2017. C. The Developer desires to, at the Developer's sole cost and expense, develop The Artisan at South Coast, a forty-two (42) unit single family residential project on the Property ("Project"). Inclusionary Housing Agreement - In -Lieu Fee Payment Page 1 City of Santa Ana 2501-6 D. On October 3, 2017, the City Council adopted Zoning Ordinance Amendment No. 2017-02 and a Resolution to approve Tentative Tract Map No. 2017-01, which sets forth the City Approvals for the Project. E. The Program Director, acting on behalf of the City, approved an Inclusionary Housing Plan that was prepared by the Developer in accordance with the requirements imposed by the Ordinance and the Administrative Procedures Manual established by the City Council to implement the Ordinance requirements. F. This Inclusionary Housing Agreement, when fully executed by the City and the Developer and recorded, is intended to satisfy the requirement that the Developer enter into an Inclusionary Housing Agreement, as set forth in the Ordinance and the conditions to City Approvals. NOW, THEREFORE, in consideration of the mutual promises set forth in this Inclusionary Housing Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the City and the Developer, the Parties, agree as follows: DEFINITIONS OF TERMS The following words, terms and phrases are used in this Inclusionary Housing Agreement, as follows, unless the particular context of usage of a word, term or phrase requires another interpretation. Administrative Procedures means the regulations promulgated by the Executive Director pursuant to the Ordinance. Administrative Procedures Manual is the Affordable Ownership Housing Administrative Procedures Manual — Developer Requirements dated January 2014, which has been prepared by the City for the implementation and enforcement of the Ordinance..A copy of the Administrative Procedures Manual shall be maintained on file with the City, and shall be provided to each Developer of Inclusionary Units. City means the City of Santa Ana, California. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 2 City of Santa Ana 25D-7 City Approvals are defined as the entitlement approvals and the Inclusionary Housing Plan that must be approved by the Program Director prior to the issuance of building permits for the Project. City Council means the City of Santa Ana City Council. Default means the failure of a Party to perform any action or covenant required by this Inclusionary Housing Agreement within the time period provided herein following notice and opportunity to cure, as set forth in Article 3 — Section I of this Inclusionary Housing Agreement. Developer means the developer of the Project. Effective Date means the date on which this Inclusionary Housing Agreement is approved and executed by appropriate authorities of the Developer and the City; and this Inclusionary Housing Agreement is delivered to the Developer. Executive Director is the Executive Director of the Community Development Agency of the City. The Executive Director, or designee, has the ultimate authority to evaluate appeals submitted in relation to the Administrative Procedures. Exhibits means the exhibits to this Inclusionary Housing Agreement, which are listed in Article 1 - Section V. Inclusionary Housing Fund means a separate fund of the City which is codified in Article XV111.1 Section 41-1909 of the City's Municipal Code. The fund was established for the specific purpose of providing the City with funds to assist in the development of housing that is affordable to low and moderate income households. The allowable uses of Inclusionary Housing Funds, and the related reporting are described in Attachment I of the Administrative Procedures Manual. Inclusionary Housing Plan means a plan submitted for approval to the Program Director that details the manner in which the Inclusionary Housing obligations will be fulfilled by the Project. The Inclusionary Housing Plan form is presented in Attachment B of the Administrative Procedures Manual, and also attached as Exhibit 3 to this Inclusionary Housing Agreement. In -Lieu Fee refers to a fee that may be paid by the Property Owner in specific circumstances in lieu of providing Inclusionary Units within a Project. These circumstances are identified in Section II -A of the Administrative Procedures Inclusionary Housing Agreement - In -Lieu Fee Payment Page 3 City of Santa Ana 25D-8 Manual. The In -Lieu Fee calculation worksheet is updated quarterly. The current Affordable Housing In -Lieu Fee calculation worksheet schedule is presented in Attachment J of the Administrative Procedures Manual. Ordinance means the Housing Opportunity Ordinance originally adopted by the City Council on November 28, 2011, and as amended by the City Council on September 1, 2015, in Ordinance No. NS -2881, and on October 6, 2015, in Ordinance No. NS -2885, which is codified in Article XVIII.1 Section 41-1900 et seq. of the City's Municipal Code. Party and Parties mean the City and the Developer as parties to this Inclusionary Housing Agreement. Program Director has the day-to-day authority for making determinations related to the Ordinance and Administrative Procedures Manual. The Program Director will be appointed by the Executive Director. Project means the owner -occupied housing project proposed to be developed on the Property at the Developer's sole cost and expense. Property means the real property, as shown on Exhibit 2 attached to this Inclusionary Housing Agreement, on which the Project is to be developed, for which the legal description is provided in Exhibit 1 to this Inclusionary Housing Agreement. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 4 City of Santa Ana 25D-9 ARTICLE 1 PARTIES; REPRESENTATIONS AND WARRANTIES; EFFECTIVE DATE; RECITALS; AND EXHIBITS Parties to this Inclusionary Housing Agreement -A. City. The City is a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California. The address of the City, for the purposes of this Inclusionary Housing Agreement, is: City of Santa Ana Community Development Agency 20 Civic Center Plaza, M-26 Santa Ana, California 92701 Attention: Program Director Facsimile Number: (714) 647-6549 1-13. Developer. The Developer is a California limited liability company. The principal office and address of the Developer, for the purposes of this Inclusionary Housing Agreement, is: Shea Homes Limited Partnership 2 Ada, Suite 200 Irvine, CA 92618 Attention: Jim Holas Tel: (949) 526-8836 Fax: (949) 526-8797 Inclusionary Housing Agreement - In -Lieu Fee Payment Page 5 City of Santa Ana 25D-10 II. Developer Representations and Warranties The representations and warranties of the Developer contained in Article 1 — Section II shall be based upon the actual knowledge of the Developer as of the Effective Date, and are true and correct as of the Effective Date. The Developer's liability for misrepresentation or breach of warranty, representation or covenant, wherever contained in this Inclusionary Housing Agreement, shall survive the execution and delivery of this Inclusionary Housing Agreement. The Developer hereby makes the following representations, covenants and warranties, and Developer acknowledges that the execution of this Inclusionary Housing Agreement by the City has been made in material reliance by the City on such covenants, representations and warranties: II -A. The Developer is a California limited liability company, lawfully entitled to do business in the State of California and the City. The Developer has the legal right, power and authority to enter into this Inclusionary Housing Agreement and the instruments and documents referenced herein and to consummate the transaction contemplated hereby. The persons executing this Inclusionary Housing Agreement and the instruments referenced herein on behalf of the Developer hereby represent and warrant that such persons have the power, right and authority to bind the Developer. II -B. The Developer has taken all requisite action and obtained all requisite consents in connection with entering into this Inclusionary Housing Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any other party (other than the property owner) is required for the Developer's authorization to enter into this Inclusionary Housing Agreement. II -C. Neither the execution of this Inclusionary Housing Agreement nor the consummation of the transactions contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument, or other obligation to which the Developer is a party or by which the Developer may be bound, or to the Developer's knowledge, under any law, statute, ordinance, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to the Developer or to the Property. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 6 City of Santa Ana 25D-11 II -D. This Inclusionary Housing Agreement is, and all agreements, instruments and documents to be executed by the Developer pursuant to this Inclusionary Housing Agreement shall be duly executed by, and to the best of the Developer's knowledge, are or shall be valid and legally binding upon the Developer and enforceable in accordance with their respective terms. III. Effective Date This Inclusionary Housing Agreement is dated November 7, 2017 for reference purposes only. This Inclusionary Housing Agreement shall not go into effect before the Effective Date. IV. Recitals The Recitals set forth above are true and correct. The Recitals are incorporated into this Inclusionary Housing Agreement in their entirety by this reference. V. Exhibit List The following is a list of the exhibits attached to this Inclusionary Housing Agreement. Each of the exhibits is incorporated by reference into the text of this Inclusionary Housing Agreement. Exhibit 1 Legal Description of Property Exhibit 2 Site Map Depicting Property and Zoning Designations Exhibit 3 Inclusionary Housing Plan Inclusionary Housing Agreement - In -Lieu Fee Payment Page 7 City of Santa Ana 25D-12 ARTICLE 2 INCLUSIONARY HOUSING COVENANTS Developer Compliance with the Ordinance The Developer acknowledges that the City has provided the Developer with copies of the Ordinance and the Administrative Procedures Manual. The Developer is familiar with the requirements of all the foregoing documents and shall ensure that the Project complies in all material respects with this Inclusionary Housing Agreement and the requirements set forth in all the foregoing documents. II. In -Lieu Fee In lieu of providing any Inclusionary Units, the Developer shall pay to the City the sum of $1,727,055.00, as detailed in the Inclusionary Housing Plan attached hereto as Exhibit 3 and incorporated herein by reference, prior to obtaining the first building permit related to the Project. Inclusionary Housing Agreement - In -Lieu Fee Payment Page B City of Santa Ana 25D-13 ARTICLE 3 DEFAULTS AND REMEDIES Default If either Party defaults with regard to any provision of this Inclusionary Housing Agreement, the non -defaulting Party shall serve written notice of such default upon the defaulting Party. If, after the service of written notice of such default, the defaulting Party does not cure such default within thirty (30) calendar days after service of the notice of default (or, if such cure reasonably takes longer than thirty (30) days, if such cure has not been commenced within the thirty (30) day period or is not diligently completed within a reasonable time, not to exceed an additional sixty (60) calendar days), the defaulting Party shall be in Default of the terms of this Inclusionary Housing Agreement, and may be liable to the other Party for damages caused by such Default. Alternatively, the non -defaulting Party, at its option, may institute an action for specific performance of the terms of this Inclusionary Housing Agreement. II. Legal Actions In the event of a breach or potential breach of program requirements, in addition to any other rights or remedies, either Party may institute legal action to cure, correct or remedy any Default, to recover damages for any Default, or to obtain any other remedy consistent with the purposes of this Inclusionary Housing Agreement. II -A. In the event of a Developer Default, the City's actions may include, but are not limited to, the following: The following legal actions: a. Actions to enforce compliance with the program requirements and to enjoin any actions by the Developer that violate program requirements; b. Actions to disapprove, revoke or suspend any permit, including a Building Permit, Certificate of Occupancy or other discretionary approval; Inclusionary Housing Agreement - In -Lieu Fee Payment Page 9 City of Santa Ana 25D-14 C. Injunctive relief and damages; and Cl. Civil citations with monetary penalties for violations of the Inclusionary Housing Agreement. 2. All such restitution shall be made to the City. Any funds received by the City under this provision of this Inclusionary Housing Agreement shall be placed in the City's Inclusionary Housing Fund. II -B. The laws of the State of California shall govern the interpretation and enforcement of this Inclusionary Housing Agreement. II -C. In the event that any legal action is commenced by the Developer against the City, service of process on the City shall be made by personal service upon the Clerk of the City Council, or in such other manner as may be provided by law. II -D. In the event that any legal action is commenced by the City against the Developer, service of process shall be made by personal service on the Developer's designated agent at such address as may be specified in written notice to the City, or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. 111. Rights and Remedies are Cumulative The rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or any other Default by the other Party. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 10 City of Santa Ana 25D-15 ARTICLE 4 GENERAL PROVISIONS Notices, Demands and Communications between the Parties Any and all notices, demands or communications submitted by any Party to another Party pursuant to, or required by, this Inclusionary Housing Agreement shall be proper if in writing and dispatched by messenger for immediate personal delivery, or by registered or certified United States mail, postage prepaid, return receipt requested, to the address of the City and Developer, as applicable, as designated in Article 1 — Section I of this Inclusionary Housing Agreement. Such written notices, demands and communications may be sent in the same manner to such other addresses as either Party may from time -to -time designate as provided in this Section. Any notice, demand or communication shall be deemed to be received by the addressee, on the day that it is personally delivered, if dispatched by messenger, or two (2) calendar days after it is placed in the United States mail. In addition to the submission of notices, demands or communications to the Parties via United States mail, copies of all notices shall also be delivered by facsimile to the facsimile numbers designated in Article 1 — Section I. Conflict of Interest No council member, official, contractor, consultant, attorney or employee of the City having any conflict of interest, direct or indirect, related to this Inclusionary Housing Agreement, or in the development of the Property, shall participate in any decision relating to this Inclusionary Housing Agreement. The Parties represent and warrant that they do not have knowledge of any such conflict of interest. III. Non -liability of City or City Officials and Employees No council member, official, contractor, consultant, attorney or employee of the City shall be personally liable to the Developer, any voluntary or involuntary successors and assignees, or any lender or other party holding any interest in the Property, in the event of any default or breach by the City, or for any amount Inclusionary Housing Agreement - In -Lieu Fee Payment Page 11 City of Santa Ana 25D-16 which may become due to the Developer or to its successors or assignees, or on any obligations arising under this Inclusionary Housing Agreement. IV. Indemnification The Developer agrees to indemnify and hold the City, and their officers, employees and agents, harmless from and against all damages, judgments, costs, expenses and fees arising from or related to any negligent or wrongful act or omission of the Developer in performing its obligations hereunder. The City agrees to indemnify and hold the Developer and its officers, employees and agents, harmless from and against all damages, judgments, costs expenses and fees arising from or related to any negligent or wrongful act or omission of the City in performing its obligations hereunder. V. No Waiver Failure to insist upon strict compliance with any of the terms, covenants, conditions and restrictions hereof on any one occasion shall not be deemed a waiver of such term, covenant, condition or restriction. Any waiver or relinquishment of rights or powers hereunder at any one time or more times shall not be deemed a waiver or relinquishment of such other rights or powers at any other time or times. VI. Attorneys' Fees and Costs If either Party hereto files any action, or brings any action or proceeding against the other arising out this Inclusionary Housing Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys' fees and costs. The recovery shall be treated as an element of its costs of the suit, and not as damages. The amount of the recovery shall be fixed by the court in such action or proceeding, or in a separate action or proceeding brought to recover such attorneys' fees and costs. VII. Jurisdiction and Venue Any legal action or proceeding concerning this Inclusionary Housing Agreement shall be filed and prosecuted in the appropriate State of California court in Orange County, California. Each Party hereto irrevocably consents to the personal jurisdiction of that court. The City and the Developer each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or Inclusionary Housing Agreement - In -Lieu Fee Payment Page 12 City of Santa Ana 25D-17 jurisdiction, including without implied limitation, federal district court due to any of the following: Any diversity of citizenship between the City and the Developer; or 2. The fact that the City is a party to such action or proceeding; or 3. That a federal question or federal right is involved or alleged to be involved. Without limiting the generality of the foregoing, the Developer and the City specifically waive any rights provided to it pursuant to California Code of Civil Procedure 394. The Developer acknowledges that the provisions of this Article 3 — Section VII are material consideration to the City for its entry into this Inclusionary Housing Agreement, in that the City will avoid the potential cost, expense and inconvenience of litigating in a distant forum. VIII. Successors and Assigns This Inclusionary Housing Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns. IX. No Third Party Beneficiaries The performance of the City's and the Developer's respective obligations under this Inclusionary Housing Agreement are not intended to benefit any party other than the City or the Developer, except as expressly provided otherwise herein. No person or entity not a signatory to this Inclusionary Housing Agreement shall have any rights or causes of action against any Party to this Inclusionary Housing Agreement as a result of that Party's performance or non-performance under this Inclusionary Housing Agreement, or for the enforcement of any provisions of this Agreement, except as expressly provided otherwise herein. X. Entire Agreement This Inclusionary Housing Agreement integrates all of the terms and conditions mentioned herein or incidental hereto. This Inclusionary Housing Agreement supersedes all negotiations or previous agreement between the Parties with respect to all or any portion of the Property and the Project thereof. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 13 City of Santa Ana 25D-18 XI. Recordation The Developer and the City agree to permit recordation of this Inclusionary Housing Agreement, against the Property in the Office of the County Recorder of Orange County, California. The legal description for the Property is provided in Exhibit 1 to this Inclusionary Housing Agreement. XII. Termination Except as set forth elsewhere, this Inclusionary Housing Agreement shall be terminated after payment of in -lieu fee to City, which shall occur prior to Developer obtaining its first building permit. Upon the termination of this Inclusionary Housing Agreement, the Developer shall have no further obligations or liability hereunder. The City and the Developer agree to promptly execute, acknowledge and deliver for recordation any documents that may be necessary to remove this Inclusionary Housing Agreement as an encumbrance against title to any portion of the Property. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 14 City of Santa Ana 25D-19 IN WITNESS WHEREOF, the Parties hereto have duly executed this Inclusionary Housing Agreement as of the dates set forth below. SIGNATURE PAGE TO INCLUSIONARY HOUSING AGREEMENT ATTEST: CITY: CITY OF SANTA ANA A California Charter City and Municipal Corporation Maria Huizar, Clerk of the Council By: Name: Its: City Manager Date: Attorney Robert M. Zur Schmiede Acting Executive Director Community Development Agency Inclusionary Housing Agreement - In -Lieu Fee Payment Page 15 City of Santa Ana 25D-20 SIGNATURE PAGE TO INCLUSIONARY HOUSING AGREEMENT SHEA HOMES LIMITED PARTNERSHIP: A California Limited Partnership 0 Name: Its: Date: IS Name: Its: Date: Inclusionary Housing Agreement - In -Lieu Fee Payment Page 16 City of Santa Ana 25D-21 EXHIBIT 1 LEGAL DESCRIPTION OF PROPERTY Inclusionary Housing Agreement— In -Lieu Fee Payment City of Santa Ana 25D-22 Exhibit 1 - Legal Description PARCEL 2, AS SHOWN ON EXHIBIT "B-1 " OF LOT LINE ADJUSTMENT NO. 2002-01, RECORDED April 16,2002 AS INSTRUMENT NO. 20020317856, OF OFFICIAL RECORDS. EXCEPTING THEREFROM THOSE PORTIONS AS CONVEYED TO THE CITY OF SANTA ANA BY DEEDS RECORDED July 8, 2003 AS INSTRUMENT NO. 797924 AND July 18, 2003 AS INSTRUMENT NO. 855320. BOTH OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM ALL UNDERGROUND WATER, WATER RIGHTS, OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN AND ALL RIGHTS THEREIN, GEOTHERMAL STEAM. AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR LTNDER THE PROPERTY, TOGETHER WITH THE PERPETUAL RTGHT OF DRILLING, PUMPING, MINING, EXTRACTING, EXPLORING AND OPERATING THEREFORE AND STORING IN AND REMOVING THE SAME FROM THE PROPERTY OR ANY OTHER PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL, PUMP AND MINE FROM PROPERTY OTHER THAN THE PROPERTY, WATER, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE PROPERTY, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRTLLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS, TUNNELS OR SHAFTS; PROVIDED, HOWEVER, THAT IN NO EVENT SHALL THE OWNER OF THESE RIGHTS HAVE THE RIGHT TO DRILL, PUMP, MINE OR EXCAVATE THROUGH THE SURFACE OR THE UPPER 200 FEET OF THE SUBSURFACE OF THE PROPERTY PROVIDED ALSO HOWEVER, THERE SHALL BE NO RIGHT TO ENTER UPON THE SURFACE OF THE PROPERTY, TO DEPRIVE THE PROPERTY OF STRUCTURAL SUPPORT OR OTHERWISE INTERFERE IN ANY WAY WITH DEVELOPMENT, CONSTRUCTION OR OPERATION OF THE PROPERTY, AS RESERVED IN DEED RECORDED NOVEMBER 22, 2002 AS INSTRUMENT NO. 1056537, OF OFFICIAL RECORDS. APN: 412-541-07 25D-23 EXHIBIT 2 SITE MAP DEPICTING PROPERTY AND ZONING DESIGNATIONS Inclusionary Housing Agreement— In -Lieu Fee Payment City of Santa Ana 25D-24 2001 WEST MACARTHUR BOULEVARD w.0 w rrsrn i EXHIBIT 2 -VICINITY ZONING AND ARIEL VIEW 25D-25 W4:11A- w INCLUSIONARY HOUSING PLAN Inclusionary Housing Agreement — In -Lieu Fee Payment City of Santa Ana 25D-26 Planning and Building Agency ` Planning Division 20 Civic Center Plaza P.O. Box 1988 (M-20) Santa Ana, CA 92702 (714)647-5804 www.santa-ana.org INCLUSIONARY HOUSING PLAN OWNER/APPLICANT INFORMATION Legal Owner Roman Catholic Diocese of Orange(714) 282-3012 Full name of Person, Finn or Corporation Area Code Phone Number 13280 Chapman Ave.7( 14 ) 457-1157 Mailing Address Area Code Fax Number Applicant Shea Homes9( 49 ) 526-8836 Full name of Person, Firm or Corporation Area Code Phone Number 2 Ada, Suite 200, Irvine, CA 926187( 14 ) 526-8797 Mailing Address Area Code Fax Number Contact Person Jim Holas jim.holas@sheahomes.com Full name of Person, Finn or Corporation Email address 2 Ada, Suite 200, Irvine, CA 92618 9( 49 ) 526-88369( 51 ) 235-34199( 49 ) 526-8797 Area Code Phone Number Area Code Mobile Phone Number Area Code Fax Number PROJECT DESCRIPTION Project Address: 2001 W. MacArthur Blvd., Santa Ana, CA Assessor Parcel Number(s): 412-541-07 Total number of units proposed: 42 Number of Rental Units: 0 Number of For Sale units: 42 Number of 15% Inclusionary obligation: 7 Identify the gross livable area of the proposed project (including private balconies, decks and patios). 115,137 square feet Will the project be constructed in phases? x Yes No Is a density bonus being requested? Yes No CITY APPROVALS (if applicable) INCLUSIONARY HOUSING PLAN NO. I p (I n al APPROVE ElG DENY Date: - �' 1 Signature: Page 1 of 4 &PlenninglCledcel-Counter FormsW OOappllcadon 1115 25D-27 DP1 6 -2' 4 HOUSING ALTERNATIVES Select the applicable alternatives to indicate how the project will comply with the inclusionary housing requirement: On-site construction of inclusionary units In -lieu fee payment for entire obligation' (With consideration of off-site rehab.) In -lieu fee payment for fractional unit Land dedication Note: For development projects with more than 20 units requesting in -lieu fee payment to fulfill their inclusionary obligation, "substantial evidence" that the cost of providing inclusionary units on site would substantially exceed the amount of the applicable in -lieu fee is to be provided with this application. Please complete the following table(s) as it applies to your project proposal: Proposed Rental Housing Projects: Number of Bedrooms Unit Size (Square Feet) Number of Market Rate Units Number of Low Income Units Number of Very -Low Income Units Total Number of Units Percent of Total Units Studio 1 2 3 4 5 Total 1 If the calculation of the number of required inclusionary housing units results in a fraction, the developer has the option to (a) provide an additional incluslonary housing unit or (b) pay an In -Lieu Fee equal to the percentage represented by the fractional Inclusionary housing unit multiplied by the applicable In -Lieu Fee Page 2 of 4 STIanningUedcal-Counter FormslHOOapplicagon 1115 2501-28 Proposed Ownership Housing Projects: Number of Bedrooms Unit Size (Square Feet) Number of Market Rate Units Number of Total Moderate Number of Percent of Income Unit Units Total Units Studio 1 2 3 4 5 Total Required Exhibits to the Inclusionary Housing Plan A. [x] Narrative description of the entire project; B. [x1 Site plan that depicts the entire project (minimum 11" x 17"); C. ❑ Depiction of the location of the inclusionary housing units; and D. ❑ If applicable, a phasing plan that provides for the proportionate number of the total inclusionary housing unit requirement to be built within each phase of the project. E. [x_1 If applicable, provide the In -Lieu Calculation Summary for the project. Page 3 of 4 SManningUedcal-Counter Fo=s%HOOappliwtlan 1/15 25D-29 Property OWNER'S AFFIDAVIT I hereby certify that I am the legally authorized owner of all property involved in this application or have been empowered to sign as the property owner on behalf of a corporation, partnership, business, etc., as evidenced by separate instrument attached herewith. I hereby grant to the applicant submitting this form full powerto sign all documents related to this application, including any conditions or litigation measures as may be deemed necessary. I declare under penalty of perjury that the. foregoing is true and correct. Executed on (Date) 17- •,ZLA 7iG at California Property Owner's Signature Af /= Property Owner's Printed Name Re. � APPLICANT'S AFFIDAVIT hereby certify that the statements furnished above and in the attached exhibits represent the data and information required for this Initial evaluation and that the facts, statements and information presented are true and correct to the best of my knowledge and belief. Further, should the stated information be found false or insufficient, I agree to the return of this form for appropriate revisions, understanding the City of Santa Ana cannot process this form until all applicable information is corrected or provided by the applicant I hereby certify that I have been legally authorized by the property owner to present this application and to sign on behalf of all documents related to this application, Including any conditions or litigation measures as may be deemed necessary. Note: When the applicant is a corporation, partnership, business, etc., a separate document verifying the authorization to sign for such applicant is required. I declare under penalty of perjury that the foregoing is true and correct. Executed on (Date) Dece r 12,201Y at Irvine California Applicant's Signatwd�j All( Applicant's Printed Na a da es Holes Page 4 DF4 SP1=1ng=erk"auMar Forms0100sppgpgon Ills 2501-30 Shea Homes Christ our Savior Residential Project Inclusionary Housing Unit Summary 12/7/2016 Lot# Plan Type Elevation Sq. Ft. Area 1 1 C 2600 2 2 D 2794 3 1X A 2787 4 2 B 2794 5 2 D 2794 6 2 C 2794 7 1X B 2787 8 2 A 2794 9 1 B 2600 10 1 D 2600 11 Ix C 2787 12 2 B 2794 13 1 A 2600 14 1X D 2787 15 2 A 2794 16 Ix B 2787 17 2 C 2794 18 1 D 2600 19 2 D 2794 20 1X C 2787 21 2 A 2794 22 1X A 2787 23 2 B 2794 24 1X D 2787 25 2 A 2794 26 1 C 2600 27 2 D 2794 28 2 C 2794 29 1 B 2600 30 1X A 2787 31 2 B 2794 32 1X C 2787 33 1 D 2600 34 1 A 2600 35 2 B 2794 36 2 D 2794 37 2 C 2794 38 1 B 2600 39 2 A 2794 40 1X D 2787 41 2 C 2794 42 1 1 B J 2600 Total Sq. Ft. Area 115,137 Cost per Sq. Ft. $15.00 Estimated Cost $1,727,055.00 This is an estimated cost based upon preliminary plotting Note: The IX Is a second story option that Wl be selected by the future buyers. Sq. Area may change based upon the selected option. 25D-31 25D-32 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE DONATION AGREEMENTS WITH VARIOUS ORGANIZATIONS TO SUPPORT COMMUNITY EVENTS AND PROGRAMS {STRATEGIC PLAN NO. 5,4) l MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City Manager and Clerk of the Council to execute agreements with various organizations in support of their community events - and programs, subject to nonsubstantive changes approved by the City Manager -and the City Attorney, as follows:- - a. Charitable Ventures of Orange County in support of the Wilshire Square Neighborhood Association's Annual Holiday Parade, in a one-time donation amount of $1,000 (Mayor Pulido); b. A.C. Green Youth Foundation in support of the Santa Ana Leadership Program/Basketball Camp for Boys and Girls in June 2018, in a one-time donation amount of $1,000 (Mayor Pro Tem Martinez); c. Long Beach Cinematheque in support of the Frida Cinema's free film screening of the documentary "Dolores" based on civil rights activist Dolores Huerta, in a one- time donation amount of $3,000 (Mayor Pro Tem Martinez); d. Makara Center of the Arts in support of the literacy program for youth, in a one-time donation amount of $430 (Mayor Pro Tem Martinez); e. Delhi Center in support of the Teens Engaged in Learning and Leadership program, in a one-time donation amount of $1,000 (Councilmember Sarmiento); f. Santa Ana Unidos Boxing Club in support of on-going services to help at -risk youth in Santa Ana, in a one-time donation amount of $1,000 (Councilmember Sarmiento); 29A-1 Donation Agreement with Organizations to Support Community Events and Programs November 7, 2017 Page 2 g. Delhi Center in support of the Teens Engaged in Learning and Leadership program, in a one-time donation amount of $500 (Councilmember Solorio); h. Santa Ana Kiwanis Club Foundation in support of the holiday event for needy children for the holiday season, in a one-time donation amount of $500 (Councilmember Solorio); i. Ser -Jobs for Progress of Orange County in support of the Santa Ana League of United Latin American Citizens for on-going youth program services, in a one-time donation amount of $500 (Councilmember Solorio); j. Te-Kenjutsu-Kan-Do Organization to support the 15th Annual Adlawan Cup Food Drive Karate Championships, in the amount of $500 (Councilmember Solorio); k. Centro Cultural de Mexico of Orange County to support Noche de Altares event, in a one-time donation amount of $800 (Councilmember Benavides); I. Charitable Ventures of Orange County in support of the Wilshire Square Neighborhood Association's Annual Holiday Parade, in a one-time donation amount of $500 (Councilmember Villegas); m. Delhi Center in support of the Teens Engaged in Learning and Leadership program, in a one-time donation amount of $500 (Councilmember Villegas); n. Makara Center of the Arts in support of the literacy program for youth, in a one-time donation amount of $750 (Councilmember Villegas); o. Healthy Smiles for Kids of Orange County for on-going services to provide dental services to children in Santa Ana, in a one-time donation amount of $1,000 (Councilmember Tinajero). DISCUSSION On August 4, 2015, City Council adopted Resolution 2015-042, establishing a City Special Event Sponsorship Policy and Guidelines for Disbursement of Discretionary Funds. This resolution and policy outlines the eligibility criteria for neighborhood associations and eligible non-profit entities for consideration of City Council sponsorship. In accordance with this policy, each Councilmember is allowed to appropriate up to $10,000 per fiscal year to support eligible organizations, including neighborhood associations and non-profit organizations. Eligible organizations that are not tax exempt under section 501(c)3 of the Internal Revenue Code are eligible for in-kind funding for City Services. 29A-2 Donation Agreement with Organizations to Support Community Events and Programs November 7, 2017 Page 3 The donation agreements listed above are in response to the Donation Requests (Exhibits 1-15) submitted by various community organizations or neighborhood associations to the specific Councilmembers, seeking sponsorship for community events and/or programs. The Councilmembers, respectively, reviewed and agreed to sponsoring the programs or events through the Special Event Sponsorship funds. Upon approval by City Council, the respective donation agreements (Exhibit 16-30) will be executed. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). FISCAL IMPACT Funds to support the City Council Sponsorship Policy are available in the Fiscal Year 2017-18 General Non -Departmental account (01105015-62300) as appropriate from each of the following Councilmember's appropriated amounts for Fiscal Year 2017-18: Mayor Pulido $ 1,000.00 Mayor Pro Tem Martinez $ 4,430.00 Councilmember Sarmiento $ 2,000.00 Councilmember Solorio $ 2,000.00 Councilmember Benavides $ 800.00 Councilmember Villegas $ 1,750.00 Councilmember Tinajero $ 1,000.00 APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director y Finance and Management Services Agency EXHIBITS: 1-15 Donation Request Forms 16-30 Donation Agreements 29A-3 29A-4 City of Donation 'Address: City, State, Zip: r SA r -_ Aj Email: -- I -he M, Ana Title: 9 U 7Y.—t31jec// Sy — ,C 0/v IFax: City Manager's Office - M31 20 Civic CenterPlaza P.O. Box 1988 Santa Ana, CA 92702 (714) 647-5200 j Name: J� Charitable Ventures of Orange County as Fiscal Sponsor for Wilshire Square Neighborhood Taxx-ExeExempt Status: isyour organization a non-protn or pubac td -X empt organization as r� defined under Section 501(c)(3) of the Interial Revenue Code? �Seiect One: M Yes I LL1 No I I1 No, you will only qualify for a credit for __ii staff time, rental rates for facilities or equ, 'approved, credit may or may not cover fu Amount Amount ':$1,000 'Event Location: DIC Address, City, State, Ztp , 177 Description of ;EventI Purpose: jCommunny Benefit: Applicant Signature: ated costs Por your request (i.e. permit fees, etc.). Costs for City services vary and if f requested City services. Needed: rent Date: I-/�- 3 . / 7 IIS (UG/%Aotlloon iQAFC, _UU 7/yDSS _ /�4✓1V Ulf L /Tr/L /�,>FY /i9Q,�Jp� Ape A24 i Mall: City Manager's Office -M31 20 Civlc Center Plaza P.O. Box 1988 Santa Ana, CA 92702 If Yer---- ITax ID W. 20-8756660 Mayor Pulido r70 W rg-p /A/61,le- ov YOL/e /.�uUDG��rr��ur ,�p1L i i2��✓s p�si�rv�_i�UrT y C�/r-5' �ciccASe Date: Email: donatlonrequest@santaana.org Fax: (714) 6475954 T - - -- — Eligibility tv9et; a rvlarrd rr vs YES 1 NO council Meeting Date : NOVEMBER 7, 2017 y' Donation Request :t: DR- ,nlrrenrc 9 y _ , YES Approved Amount: I $1,000 I City Manager Signature: Date: Revised 01/05/1017 29A-6 r City Manager's Office – M•31 ��X=+ City of Santa Ana 20 Civic Center Plaza t Donation Request P.O. Box 1988 .t. Santa Ana, CA 92702 -- (714) 647-5200 Name: A.C. Green _ --.— --_ .tie: President &Founder J —__� Address: _J1904 Silver Spur Rd., Ste. # 416 city, state, zipJ Rolling Hills, CA 90274 'Phone: J 800 -A13 -YOUTH j Email: jj acgreenyouthfoundation@gmail.comPax] � : I ---- Name: A.C. Green Youth Foundation City Services Credit Date Needed: Ma or/Counalmember.' Y I Martinez [Amount Requested: $ J .] _ _ Tax -Exempt Status: Is your organization a non-profit or public lax -exempt organization as Select One:I defined under Section 501(c)(3) of the Internal Revenue Code? J Yes ❑ No If No, you will only qualify fora credit for City -related costs for your request (i.e. permit fees, if Yes, I staff time, rental rates for facilities or equipment, etc.). Costs for City services vary and if g5-4288507 approved, credit may or may not cover full cost of requested City services. EXHIBIT 2 Revised 01/05/2017 City Services Credit Date Needed: Ma or/Counalmember.' Y I Martinez [Amount Requested: $ J .] _ _ _— Direct Payment Amount $ 1 OQO Event Date: JlJne 1-3 201 Event Time: I All da (Requested:--—�1_--y --- ------ NOVEMBER 7, 2017 Eligibility Met: Event Location: Santa Ana - Leadership Program / Basketball camp for boys and girls ages 9-16 Address, City, State, Zip City Manager Signature: Date: Description of The goal of the Leadership Program is to identify and encourage leaders among j Event/ Purpose: children who might otherwise be forgotten. j ique opportunity for those who lack positive role models, are physically and/or Community Benefit: [emotionallyabused, economically disadvantaged or victims of homelessness. J Applicant signature: A.C. Green Date_ 10/18/2017 EXHIBIT 2 Revised 01/05/2017 Donation Request It: Reference#anallrelatedDPVs DR - council Meeting Date: NOVEMBER 7, 2017 Eligibility Met: YES / NO YES Approved Amount: $1,000 City Manager Signature: Date: EXHIBIT 2 Revised 01/05/2017 29A-8 City Manager's Office- M-31 (9) C/ty of Santa Ana 20 Civic Center Plaza Donation Request P.O. Box 1988 Santa Ana, CA 92702 (714) 6475200 Name: �OgaD CrOW Address: 1305 E. 4th Street#1 - 00 city, state, zip: Fs___ anta Ana, CA 92701 - — - Email: ^ logan@thefridacinema.org --- -- - Title: 1Executive Director Phone: 1(323) 428-7411 'Fax: 1(866) 354-8617 Name: [The Frida Cinema - (fiscal Sponsor: Long Beach Cinematheque) Tax -Exempt Status: Is your organization a non-profit or public taxexempt organization as Select one: defined under Section 601(c)(3) of the Internal Revenue Code? W-1YesQ No If No, you will only qualify for a credit for City -related costs Por yourrequest (.e. permit fees, ,If Yes, staff time, rental rates forfaciliffes or equipment,etc.). Costs for City services vary and if , 27-0950151 approved, credit may or may not cover full cost of requested City services. Tax ID 9: City Services Credit ,Amount Requested: '$ ;Date Needed: 1NOV. 1, 2017 Mayor/Councilmember: Martinez I I j r--.____________ Direct Payment Amount s3 0 Event Date: [OV. 4, 2017 (Event Time: 1,2pm & 5:30pm Requested: Event Location: he Frida Cinema/ 305 E. 4th Street #100, Santa Ana CA 92701 lAddress, City, State, Zip j The Fnda Cinema will be welcoming Dolores Huerta, famed civil rights activist and co-founder of United Farm Workers I(UF", Description of to Santa Ana with new documentary film "Dolores." Funds will be applied to two screenings and associated Event Purpose: lexpenses: a free screening open just to our community's female students, and a special ticketed screening, both of which Ivnll be followed by an in-person discussion with Ms. Huerta. T We am proud to partner with Councilwoman Martinez and the City of Santa Ana in providing an opportunity to meet, _ (face-to-face, Community Benefit: one of the most celebrated of American Civil rights leaders, and learn first-hand of herwork as an activist and hilanthro Ist. Our screenings are also being held in the hope of inspiring future generations of females to take her P P 9 9 P P 9 Iiinspiring lead to effect change in their communities. lAppiicant Signature: Date: rMail: City Manager's Office -M-31 Email: donationrequesta@santa-ana.org 20 Civic Center Plaza Fax: (714) 647-6954 1 P.O. Box 1988 Santa Ana, CA 92702 J I Donation Request n: DR - NOVEMBER 7, 2017 Council Meeting Dater Eligibility Met: YES I NO YES Approved Amount: $3,000 City Manager Signature: Date: Revised 01/05/2017 29A-9 29A-10 _ 3 City of Santa Ana City Manager's 20Civic Center 20 Civic Center Plaza Donation Request P.O. Box 1988 Santa Ana, CA 92702 (714) 647-5200 Noma, ^ I Marytza Rubioiue: Executive Director fddress: 322 Wakeham Ave ity, State, zip:Santa Ana CA 92701 y Pbone: 714200462 ---- - --- ---- - — - -- - -- — -- Email: — marytza@makaracenterarts.org Fax:- -- Direct Payment Amount Qn �(n /Month) Event Date: Jan - OCt 201 8 Event Time: Requested: g 9 Y Name: . - Makara Center for the Arts _..._. _----........ ... ......------- -----_ Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as defined under Section 501(c)(3) of the Internal Revenue Code? elect One: !— Direct Payment Amount Qn �(n /Month) Event Date: Jan - OCt 201 8 Event Time: Requested: g 9 Y Yes No If No, you will only qualify for a credit for City -related costs heryour request (i.e. permit lees, tall time, rental rates for facilities or equipment, etc.). Costs for City services vary and if �Yaxel`ch!. Makers Center for the Ans seeks support far a citywide reading Initiative to celebrate the 200M anniversary of^Frankenstelnf Makers will approved, credit may or may not cover full cost of requested City services. ]181-1351769` l Event)Purpose: I Frankenstein' will run from Jan. 2018-0ct 2018. Programs and resources will be available In English, Spanish, 8 Vietnamese, and Makers will maintain a dedicalad'Frankenre.d' website with resources for additional organizations, businesses. and individuals to participate in the project. Doriation Request ily Services Credit i i I { I Date Needed: Nov. ZO18 MayorlCouncitmember:I`` Martinez i ount Requested: -- !— Direct Payment Amount Qn �(n /Month) Event Date: Jan - OCt 201 8 Event Time: Requested: g 9 Y _ _._.-.._..-,___._—.._ ________ i $434..__. _ J _______-.-I Event Location: f 811 N Main St Santa Ana CA 92701 Address, City, Stam, Zip i -- Makers Center for the Ans seeks support far a citywide reading Initiative to celebrate the 200M anniversary of^Frankenstelnf Makers will Description of distribute free copies of the novel and host free monthly STEAM programs and events for Santa Ana residents,'FrankenRead:Sanm Ana Reads l Event)Purpose: I Frankenstein' will run from Jan. 2018-0ct 2018. Programs and resources will be available In English, Spanish, 8 Vietnamese, and Makers will maintain a dedicalad'Frankenre.d' website with resources for additional organizations, businesses. and individuals to participate in the project. !'FrankenRead- will offer Santa Ana residents an opportunity to read and engage with a classic novel that explores the relationship between ad Community Benefit: science, technology, ethics, and what makes a'monsler.' This cilyvide conversation can create new communities, renew Imaginations, and ignito I a lifelong love of reading. Residents will have free access to comic books, chapter books, foreign language, and classic versions.I_Frankensteln.' Al least once a month (Jan'18.0c1'18), Santa Ana communities can attend free programs 8 events centered on specific themes of the novel. Appgeant SignatureI' { :- �.`1Date Sept 1'.5; 2017 City Manager's Office -M-31 20 Civic Center Plaza P.O. Box 1988 Email: donationrequest@santa-ana.org Fax: (714)647-6954 Revised 01/05/2017 EXHIBIT 4 29A-11 29A-12 ti ?. City of Santa Ana Donation Request ,contact Information'(Y --- City Manager's Office- M-31 20 Civic Center -Plaza P.O. Box 1988 Santa Ana, CA 92702 (714) 647-5200 Name: Jenny Rios itle: CEO � ddras� s: 505 E. Central Ave. city, state, zip.- Santa Ana,CA 82707 IPhoi a: 714-481-9601 Email: jennyrios@delhicenter.org IFa� x: 714481-9698 Nama: Delhi Center Tax -Exempt Status: Is your organization a non-profit or lefined under Section 501(c)(3) of the Internal Revenue I as IS elect One: I ❑ 11Yes No will only qualify fora credit for City -related costs for yourrequest (i.e. permit tees,ItU Yes ID #: rental rates for facf7ities or equipment,etc.).Costs for City services vary and if I 852620952 credit may ormay not cover full cost of requested City services. IT ©onatlon R:rcj IC'rty Services asested: Date Needed: 11-30-17 7llayorlCou Requested: Sarmiento oSer Council rAeeting Date: Direct Payment Amount 1,000 I Event Date: 8Even /1/17-6/30/18 t Time: M -F 2:30-8:30 pm Requested: Y YES 1 NO YES Approved Amount: Event Location: Central Ave. Address, City, State, Zip F505 Ana, CA 92707 in Learning andLeadership is a gang prevention program that uses leadership development, internships, and Description of Feemngaged ity service to train teens to overcome risk factors for gang Involvement and to develop skills to help them succeed. Event i Purpose: nts will complete 30 hours of classroom training, 80 hours of internship work, and 100 hours of volunteer service and ve a $500 scholarship for completing all requirements. Community Benefit: Participants, ages 1419 will gain job training and experience by assisting with the implementation of programs and services offered at Delhi Center. Teens will be exposed to a variety of work-related tasks and skills and will make a meaningful contribution to the community through their service, A total o/ 22 teens will be served from throughout Santa Ana and $2,500 will cover the cost of a scholarship for 5 or the 13 teens who live in Ward 1. Applicant Slgnature: Date:/qU —J USt 7, 2017 Mail: City Manager's Office -M-31 Email: donationrequest@santaana.org 20 Civic Center Plaza Fax: (714) 647.6964 P.O. Box 1986 Santa Ana, CA 92702 Revised 01/05/2017 EXHIBIT 5 29A-13 Donation P.11rt#: Reference q on all related DPVs DR • Council rAeeting Date: NOVEMBER 7, 2017 Eligibility Mot: YES 1 NO YES Approved Amount: $1,000 City Manager Signature: Dale: Revised 01/05/2017 EXHIBIT 5 29A-13 29A-14 City of Santa Ana City Manager's Office—M-31 yp y 20 Civic Center Plaza Donation Request P.O. Box 1988 v -_L' Santa Ana, CA 92702 -- - (714) 647-5200 [Name: 'IJohanthan R. Hernandez I[ritle: iIFounder and Executive Director!I E, chestnut Ave, Unit # A 657-261-1653 Name: II Santa Ana Unidos I Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as Select One: defined under Section 501(c)(3) of the Internal Revenue Code?Yes ❑ No If No, you will only qualify for a credit for City -related costs for your request (i.e. permit fees, staff time, rental rates for facilities or equipment, etc.). Costs for City services vary and if�__1147-5211563 Yes, approved, credit may or may not cover full cost of requested City services. Iax lD#: 1 „ - City Services Credit Date Needed: 10/28/2017 Mayor/Councilmember: j Sarmiento mount Requested: 11 NOVEMBER 7, 2017 irgect Payment Amount ''I$1 OOO Event Date: ! 10/28/2017 IEvent Time: _ _i 6:00 PM -10:00 PM Re uested: i YES I NO YES Approved Amount: Event Location: 505 E. Central, Santa Ana, CA 92705 Address, City, State, Zip Date: i Description of romote alternative and effective forms of youth rehabilitation programs to incarceration. Event I Purpose:borhoods d ceremony tohighlight positive Santa Ana role models who came from our local raa and attain success and recognition for their achievements. Emotional development for youth and engagement of community to address the Community Benefit: underlying conditions that contribute to gangs and deteriorating neighborhoods. Applicant Signature: /�y�(�(,�y(� �j�yydy� Date_ 1 OI1 .7I201 7 Mail: City Manager's Office—M-31 Email: donationrequest@santa-ana.org 20 Civic Center Plaza Fax: (714) 647-6954 P.O. Box 1968 Santa Ana, CA 92702 armf`,M °' yv Donation Request #: Reference # on all related DPVs DR Council Meeting Date: NOVEMBER 7, 2017 Eligibility Met: YES I NO YES Approved Amount: $1,000 City Manager Signature: Date: 29A-16 EXHIBIT 7 29A-17 City Manager's Office — M-31 City of Santa Ana 20 Civic Center Plaza Donation Request P.O. Box 1988 Santa Ana, CA 92702 (714) 647.5200 e a e Name: Jenny Rios II m CEO ddress: 505 E. Central Ave. IIty, State, tate, zip: I Santa Ana,CA 82707 Phon� e: 714-481-9601 Emall: jennyrios@delhicenter.orgFal x: 714-481-9698 Name: Delhi Center Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as elect One defined under Section 501(c)(3) of the Internal Revenue Code? W] Yes ❑ No I1 No, you will only quality fora credit for City -related costs lar your request (ie. permit fees, I Taff time, rental rates forleclitilies or equipment, etc.).Costs for City services vary and if If Yes, [952620952 approved, credit may ormay not cover full cost of requested City services. jTax ID.: Os a e CI Services Credit Date Needed: 11-30-17 MayerlCo...11member. Solodo fenount Requested: Irect Payment Amount ,C 500.00 Event Date: 8/1/17-6/30/18 EventTlme: M -F 2:30-8:30 pm Requested Event Location:505 E. Central Ave. Address, City, State, Tip Santa Ana, CA 92707 Teens Engaged in Learning and Leadership is a gang prevention program that uses leadership development, internships, and Description of community service to train teens to overcome risk factors for gang involvement and to develop skills to help them succeed. Event 1 Purpose: Participants will complete 30 hours of classroom training, 80 hours of internship work, and 100 hours of volunteer service and will receive a $500 scholarship for completing all requirements. Participants, ages 14-19 will gain job training and experience by assisting with the implementation of programs and services offered at Delhi Community Benefit: Center. Teens will be exposed to a variety of work-related tasks and skills and will make a meaningful contribution to the community through their service. A total of 22 teens Will be served from throughout Santa Ana and $1,000 will cover the cast of a scholarship for 2 teens who live in Ward 3. Applicant Signature:.- August 7, 2017 Date: ._ �__ ._ e e - -• e Mail: City Manager's Office -M-31 Email: donationrequest@santa-ana.org 20 Civic Center Plaza Fax: (714) 647-6954 P.O. Box 1988 Santa Ana, CA 92702 DonationRequest.: He/ercnce ti on alt rchfetl OPVs OR - Council Meeting Date: NOVEMBER 7, 2017 Eligibility Met: YES I NO YES Approved Amount: $500 City Manager Signature: Date: Revised 01/0512017 EXHIBIT 7 29A-17 29A-18 '. City of Santa Ana — Donation Request City Manager's Office— M-31 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 (714) 647.5200 Contaetlnformatori -� - - - '- • Name: David Poole Itle: Treasurer Pddres� s: PO Box 1256 city, state, zip: I Santa Ana, CA 92701 (Phone: 714-558-1921 Email: david@poolefosterdul.com Fax: 714-558-1626 IName: ISanta Ana Kiwanis Club Foundation Tax -Exempt status: Is your organization a non-profit or public tax-exempt organization as efined under Section 501(c)(3) of the Internal Revenue Code? elect One:W] Yes ❑ No will only qualify for a credit for City -related costs for your request (i.e. permit fees, f yes, rental rates for facilities or equipment, etc.). Costs for City services very and if credit may or may not cover full cost of requested City services. ax ID #: 956060395 Donatitiri;Request�u� --s, —'-- —' '. _'_ ,�.'.y-e__ . -• _ _ __. _ _ - . _, City Services Credit mount Requested: JOO Date Needed: ���� 10-15-17 MayarlCouncilmemher: Solaria Direct Payment Amount Requested: Event Date: 12-13-17 Event Time: r� nnnn 9Atvt Approved Amount: $$00 Event Location: Address, City, State, Zip Target Store 3300 S Bristol, Santa Ana, CA 92704 Dale: Description of 2017 Holiday Shopping Spree - Buying Holiday gifts for very needy children Event/ Purpose: F,imeenent: We sponsor a holiday shopping event for needy children from several elementary schools in Santa Ana. The children shop for family gifts, $100 each. Applicant Signature: F��i%t.(d d /(70 10-3-17 Mall: City Manager's Office—M-31 Email: donationrequest@santaana.org 20 Civic Center Plaza Fax: (714) 647.6954 P.O. Box 1988 Santa Ana, CA 92702 :; ru t1l-l�altl�` Donation RequestP.Date: Reference R on all total.I ed HPVs DR - il M Council 9 NOVEMBER 7, 2017 Eligibility Met: YES I NO YES Approved Amount: $$00 City Manager Signature: Dale: Revised 01/05/2017 29A-19 29A-20 IIT 9 -21 i1E Cit of Santa Ana - City Manager's Office -M-31 20 Civic Center Plaza Donation Request '•-_ P.O. Box 1988 Santa Ana, CA 92702 (714) 647-5200 e o 0 !Name: Zeke Hernandez �fitle: President --- —��— Address: 1P0 Box 1810 '------ - _—,._ ;city, state, zip: Santa Ana, CA 92702 Pnene: x714-581-1549 1Eman: zekeher@yahoo.com 1Fax: 0 • , a o a County (as fiscal sponsor for Santa Ana LULAC) 1 Name: Ser -Jobs for Progress of Orange (Tax -Exempt Status: Is your organization anon -profit or public tax-exe 'defined under Section 501(c)(3) of the Internal Revenue Code? pt organization as elect One: � Yes ❑ No IIIf No, you will only qualify for a credit for City -related costs for your request StaBdme,rentalratesforfacilities or equipment,etc.).Costs for City services — (i.e. permit fees, r--"-�-' '- - - vary and if If Yes, /approved, credit may or may not cover full cost of requested City services. Fax 10#: g5-2549622 D• o • IClty Services Credit IAmountRequested: jDate Needed: (asap I --- - -- iMayorlCouncilmember.-Solono 1- Dirgct Pa Ment Amount - -_-- � �- --- IRe uested: P500 iEvent Date: 111/4/1 — -- iEvent Time: 6pm-1 Opm - 1Event Location: Ebell Club 625 French Street, Santa Ana, CA92701 iAddress, City, State, Zip OC Hispanic Women Reco (Description of I p g Rion Awards Dinner 1 (Event I Purpose: 1 the lives of 'Community Benefit:Improving young Students and women through college education i(support, recognition and accomplishment events. - / Applicant Signature: —------- -------.------ Date: f OI 10/11/17 7 IqI.1III 1 I IMatl: City Manager's Office -M•31 jEmail: donationrequestClasanta-ana.org i 20 Civic Center Plaza I Fax; (714) 647-6954 P.O.Box 1986 1 San Santa Ana, CA 92702 i Donation Request 1. IDR. ...I Council Meeting Date: NOVEMBER 7, 2017 Eligibility Met: YES i No YES Approved Amount: $500 I City Manager Signature: I I I Date: Revised 0110 512 01 7 IIT 9 -21 29A-22 wa City Of Santa Ana City Manager's Office-M-31 Civic Center 20 Plaza Donation Request P.O. Box 1988 • •;�,_•,,. Santa Ana, CA 92702 - - (714) 647-5200 • o • Name ;Peter Mangosing �nu� Chief Instructor ndd� rens: 118 W. Stevens Av. 'City, S zip: -- I Santa Ana Ca. 92704 kph a 714-745-7801 Ema11E t: tkksensei@te-kenjutsu-kan.com Fax: rmatlOft, 7- Name., Te-Kenjutsu-Kan Karate-Do Organization Tax-Exempt Status: Is your organization a non-profit or public tax-exempt organization as defined under Section 501(c)(3) of the internal Revenue Code? fSelect One: I I W] Yes ❑ No IIF No, you will only qualify for a credit for Ct"fatedcosts foryourrequest(i.e. permittees, 0me, rental rates forfacdithes or equipment, etc.).Costs for Cityservices vary and if r-- �20-1371172 (staff approved, credit may or may not cover full cost of requested City services. IIf 1 ax lD III: to a o es city, Services Credit—�—� iAmeunt Requested: 1$ ate Needed: 10/20/17 IMayorlCouncilmembec Solono Direct Payment Amount--�— jRequested: x$500,00 Event Date: 11/12/17 'IEventTime: 19:00am Location: FAdd-ss, egerstrom High School City State, Zip [2301W. McArthur Blvd. Santa Ana, Ca. Te-KenIwsu-Iran Karete4)o, l5themmel-Adlawan Cup Food Drive Mrste Championships. Whemmmm tltorsora requlmdlodonate,2-0msaF ,1 DSSCrtpdOe 01 –Small Beg of Rloser Pasta,t-4 Pan[al Toilet popular, a 4-Pacitef PaperTowels. All donated goods gototm Wiselolacea sheltertorwomen inthe Cayofsama Ane. We ere Me only tournament In Southern California evagives cut trophies foal eompealurs Net place in their d3visian. Theaebophlesare Event l Purpose: handmade by the students and parents of Me TKK Organization. Eedr yearwe make over 4W trophies for our event. And we take mcch pdde tu the making of 5 foot trophies for competitors B years and under. The event benefits The Wseplece a Shelterfor Women in Santa Ana. The donated goods are much needed by the vromen transifioning Community Benefit: from being homeless to sex-sufficient and empowered to make abetter life for themselves. By bringing our community togetherto help organize the event it raises awareness to the needs of the ladies of the Wiseplam. It also benerits our youth in teaching them the Importance of community service. Applicant Signature: (Date: /0/7 v • a •• e City Manager's Office-MJ9 Ea -all donationrequest@santaanaorg �Mail: 20 Civic Center Plan P.O. Box 1908 Fax: (714) 647-6954 Santa Ana, CA 92702 — _-- ----� Donation Request# DR- Meeting Data- NOVEMBER 7, 2017 IrCouncil Eligibility Met: IYESINO YES I Approved Amount: $500 Ctty Manager Signature: I Date: � J Revised 0 V0512017 EXHIBIT 10 29A-23 29A-24 -`$` City Manager's Office M-31 y City of Santa Ana 20 Civic Center Plaza i Donation Request P.O. Box 1988 ,�.L_� Santa Ana, CA 92702 -- (714) 647.5200 Name: Centro Cultural de Mexico en el Condado de Orange Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as I,� ❑ ❑ I Select One: Yes No defined under Section 501(c)(3) of the Internal Revenue Code? � i If No, you will only qualify for a credit for City -related costs for your request (i.e. permit fees, If Yes, staff time, rental rates forfacilities or equipment,etc.).Costs for City services vary and if F33-0614169 approved, credit may or may not cover full cost of requested City services. ax ID #:— -J Name:Karen Sarabia itle: Executive Director Address: 837 N Ross aty, State, zip: Santa Ana, Ca 92701 Phone: 949 205 3954 Email: karen@elcentroculturaldemexico.org IFax:- Event Location: 4th Street and Birch Name: Centro Cultural de Mexico en el Condado de Orange Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as I,� ❑ ❑ I Select One: Yes No defined under Section 501(c)(3) of the Internal Revenue Code? � i If No, you will only qualify for a credit for City -related costs for your request (i.e. permit fees, If Yes, staff time, rental rates forfacilities or equipment,etc.).Costs for City services vary and if F33-0614169 approved, credit may or may not cover full cost of requested City services. ax ID #:— -J Mail: City Manager's Office -M-31 Email: donationrequest@santa-ana.org 20 Civic Center Plaza Fax: (714) 647-6954 P.O. Box 1988 Santa Ana, CA 92702 j Q� 71F�; tPlrjSit City Services Credit $ Date Needed: 11 /04/2017 Amount Requested: ,���� MaycrlCouncilmember.l Benavides - Direct Payment Amount g 800 Event Date: 11 /04/2017 Event Time: 1:00 PM 'Requested_ 'Fs �� - -- — _ — - YES / NO YES Approved Amount: Event Location: 4th Street and Birch Address, City, State, Zip Santa Ana.Ca-92701 _ Description of Noche de Altares is a community celebration of Day of the Dead that reflects Event/Purpose: Mexican tradition and how it lives on in our communities today. 0 For one night, community members, nonprofits, local vendors and artists are Community Benefit: invited celebrate the memory of loved ones or bring awareness social issues. 'Applicant Signature:`` Date: 10/04/2017 Mail: City Manager's Office -M-31 Email: donationrequest@santa-ana.org 20 Civic Center Plaza Fax: (714) 647-6954 P.O. Box 1988 Santa Ana, CA 92702 j Q� 71F�; tPlrjSit Donation Request ht: Reference fl on all related OPVs _ DR- Coun it Meeting Date: NOVEMBER 7, 2017 Eligibility Met: YES / NO YES Approved Amount: $800 City Manager Signature: Date: Revised 01/05/2017 29A-26 City Manager's Ofllce- M-31 City of Santa Ana 20 Civic Center Plaza Donation Request P.O. Box 19118 ... Santa Ana, CA 92702 (714) 647.5200 Name: ---<_ t--- --Title �Qgt/_9 F 6-Q (—_–_eco:Address- - -- City, State, Zip: (J —I-- ----- -- - --- — sI-ho-ne—:a7 �--- - -�ll--y Email: I:--�--�-6 ----�3----y-- j Name: Charitable Ventures of Orange County fiscal sponsor for Wilshire Square Neighborhood Associatiol Tax -Exempt Status: Is your organrzation anon-profn or public lax -exempt organization as defined under Section 501(e)(3) of the Internal Revenue Code? I Select One: FMYes F]No i If No, you will only qualify lora credit for C' -related costs Por your request (i.e. permit fees, F --- staff time, rental rates for facildies or equipment, etc.).Costs for City services vary andif i f Yes, approved, credit may or may not cover full cat of requested City services. ID It. � - ---(Tax -- ;• -. 1 14 CHyServices CreditNeeded, Date F - -- - - Amount Requested: I� ;Date Needed: I .�//J] �] Mayoj�J�`ouncllmember: VILLEGAS ,Direct Payment Amount I Requested: 500 - Event Date: Eve t I 312A7 �$ _ / I -----�C.t2Si Event Location: TI /E/G/IBOt;11o0p ` ei�BA�etzieso�s No PA.��c/4.1 / ) (Address, CRY, State, LP . /n 0 UN re -P E pit ) 7 - /-- --- -t-pOL/e ; Description of /70vN /TSL/�,A'i 1%9-e lgle IA'IaDLiJ/Gv Event/Purpose:UqL(4/ ! _.- ----- ---- - sr94 � / 4 Lc N� Spr9✓�,'3/oaf �/ fL12X _rte -----I j Community Benefit: �.iv i //L/ee- /f�f />t � i2��✓sp� -r _ __ 'Applicant Signature: I - Date: (Mall: City Manager's Office -M-31 �- Email: donationrequest@santa-ana.org 20 Civic Center Plaza Fax: (714) 647.6954 P.O. Box 1986 Santa Ana, CA 92702 ` Donation Request 0: DR - rrmronn c �n.-R r lama opus, Council Meeting Date: NOVEMBER ' 7, 2017 Eligibility Met: YES l NO YES Approved Amount:i $500 City Manager Signature: _ - Date:— ---- _ - -- - _I Revised 01/05f2017 y 7�� 2.7/18 L / 29A-28 City Manager's Office -M-31 rn::"•,> City of Santa Ana 20 Civic Center Plaza ;.i Donation Request P.O. Box 1988 ,i, ^ Santa Ana, CA 92702 - (714) 647-5200 o x Name: Jenny Rios Itfe: CEO dtire as: 505 E. Central Ave. ctly, stale, zip: Santa Ana,CA 82707 Phone: 714-481-9601 Email: jennyhos@delhicentecorg IFaI z: 714-481-9698 0 . - r a a Name= Delhi Center Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as elect One: defined under Section 501(c)(3) of the Internal Revenue Code? Yes ❑ No If No, you will onlyqualify fora credit for City-relatedcosts foryourrequest(i.e. permit fees, (Yy es, staff time, rentafrates forfac#ities orequipment, etc.).Costs for City services vary and if 852620952 approved, credit may or may not cover full cost of requested City services. ax ID #: Do r —r City Servic�lDateou ncilmember: Needed: 11-30-17 Villages INlayorfc� Prtlorecl unt Requested: Direct PayI rent Amount /17-6/30/18 nt Time: M -F 2:30-$:30 pm X500 Lents Date: 8/1Eve Event Location:505 E. Central Ave. Address, City. State, Zip Santa Ana, CA 92707 Teens Engaged in Leaming and Leadership Is a gang prevention program that uses leadership development, Internships, and Description of community service to train teens to overcome risk tactors for gang involvement and to develop skills to help them succeed. Event I Purpose: Participants will complete 30 hours of classroom training, 80 hours of intership work, and 100 hours of volunteer service and Will receive a $500 scholarship for completing all requirements. Participants, ages 14-1e will gain job training and experience by assisting with the Implementation of programs and services offered at Delhi Community Benefit: Center. Teens will be exposed to a variety of work-related tasks and skills and will make a meaningful contribution to the community through their service. A total of 22 teens will be served from throughout Santa Ana and $500 will cover the cast of a scholarship for 1 teen who lives in Ward 5. IjI ApplicantSignature: 017 . ]August _7, 2017 Mall: City Manager's Office -M-31 Email: donationrequest@santaana.org 20 Civic Center Plaza Fax: (714) 647.6964 P.O. Box 1988 Santa Ana, CA 92702 Donation Request #: DR - Council Meeting Date: NOVEMBER 7, 2017 Reference # on all related DPVs Eligibility MOL YES I NO YES Approvod Amount: $500 City Manager Signature: Dale: Revised 0 110 512 01 7 EXHIBIT 13 29A-29 29A-30 City of Santa Ana Donation Request City Manager's Office — M-31 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 (714) 647-5200 .. Named Ma a RubioExecutive Director �L_..___- —------------ - --- - ._.....L' ---..--- - - aareas: 322 Wakeham Ave ay, stale, zip: i Santa Ana CA 92701 _1111 hone ! 7142004626 I Emau: _,_____,Imarytza@makaracenterarts.org _-_-- �_� a ----- l _ .. Name: alk Makara Center for the Arts Event Time: - Ongoing/Monthly Event Location: Tax -Exempt Status: Is your organization a non-profit or public tax-exempt organization as i elect One: I F Yes ElNo i defined under Section 501(c)(3) of the Internal Revenue Code? i COmmU0lty Benefit' 'FrankenRead' will offer Santa Ana residents an oppoMmily to read and engage with a dassic novel that explores the relationship between art & science, technology, ethics, and what makes a 'monster.'This citywide conversation can create newcemmunitles, renew Imaginations, and Ignite a lifelong love of reading, Residents will have free access to comic books, chapter books, foreign language, and classic versions of 'Frankenstein.* Al least once a month (Jan'10.0018) Santa Ana communities can attend free programs & events centered on specific themes of the novel J �APPhwnt Signature: If No, you will only qualify for a credit for City -related costs for your request (i.e. permit fees, Date I staff time, rental rates for facilities or equipment,etc.). Costs ter City services vary and it �'Hy.ea g1 1351769ppmved, 'I credit may or may not cover full cost of requested City services. N: Donation Request lrtoServices Credit ! JDate Needed:__.._ MaYor/Councilmember:? unt nested: ._Villegas-� _�) i Direct Payment Amount Requested: l 75� �EventDate: JanOCt 2018 _—� Event Time: - Ongoing/Monthly Event Location: 811 N Main St Santa Ana CA 92701 Address, City, State, Zip I Description of Event/ Purpose: Makara Center for the Ads seeks support for a citywide mading initiative to celebrate the 200th anniversary of -Frankenstein' Makara will distribute free copies of the novel and host free monthly STEAM programs and events for Santa Ana residents.'FrankenRead:Sanla Ana Reads Frankenstein° will run from Jan. 2018 -Oct 2018. Programs and resources will be available In English, Spanish, 8 Vietnamese, and Makara will maintain a dedicated'Frankenread- website with resources for additional organizations, businesses, and individuals to participate in the protect J i COmmU0lty Benefit' 'FrankenRead' will offer Santa Ana residents an oppoMmily to read and engage with a dassic novel that explores the relationship between art & science, technology, ethics, and what makes a 'monster.'This citywide conversation can create newcemmunitles, renew Imaginations, and Ignite a lifelong love of reading, Residents will have free access to comic books, chapter books, foreign language, and classic versions of 'Frankenstein.* Al least once a month (Jan'10.0018) Santa Ana communities can attend free programs & events centered on specific themes of the novel J �APPhwnt Signature: (/ t Date Sept 15, 2017 f I Mail: City Manager's Office -M-31 I Email: donationrequest@sanla-ana.org 20 Civic Center Plaza i Fax: (714) 647-6954 I P.O. Box 1988 I Santa Ana. CA 92702 Revised 01/05/2017 EXHIBIT 14 29A-31 29A-32 p.-. City Manager's Office—M-31 City of Santa Ana _�. 20 Civic Center Plaza i) Donation Request P.O. Box 1986 Santa Ana, CA 92702 _ (714) 647-5200 Name: Michelle Chan—�— Title: CommuNcallonsd Devebpmenl Maruger Address: 12101 E. 4th Street, Suite A220 city sstate,zi: [Santa Ana - l — --- P Phone: 714-5103846 Email: mchan@healthysmilesoc.org i [Fax; f —. o . Name: Healthy Smiles for Kids of Orange County Tax-Exempt Status: Is your organization a non-profit or public tax-exempt organization asSelect One: defined under Section 501(c)(3) of the Internal Revenue Code? a Yes No ❑ If No, you will only qualify for a credit for City-related costs for your request (i.e. permit fees, 1 staBtime, rental rates for lacUities or equipment,efc.).Costs for City services vary and if �f Yes, - (3g_3675065 approved, credit may ormay not cover full cost of requested City services. [Tax ID #: De Clry ces Credit 1$--�—�� Amount Requested: IS (] ate Needed: 5,ZO1 I [Mayor/Councilmember: Tinajero 'rOCtOber �Dlre—ct Payment Amount s100 Eve t^ D eat: [October 21, 20 EVent Time: Grp. Requested: IOpjtj Event Lc cation: Bowers Museum, 2002 North Main Street, Santa Ana, CA 92706 Address, C8g State, Zip Funding will contnbute to ongoing program success and help Healthy Smiles for Kids of Orange County (Healthy Smiles) Description of expand Its services, reach, and Impact. As a community-based nonprofit organization, Healthy Smiles is dedicated to Event / Purpose: empowering all children to live healthy and happy lives. To realize this vision, our mission is to reduce oral disease in children through collaborative programs aimed at prevention, education, treatment, and advocacy. Healthy Smiles serves over 100,000 low-Income children and parents each year through the following programs: Smile Community Benefit: Mobile Program (dental clinics on wheels that travel to Title 1 schools), Outreach Program (childre ages 0-5), TeledenlistryProgram ('Cla oo t try"), and treatment at our 2 clinics (Garden Grove and CHOC Children's Hospital of Orange Coun _ __—I 7 —— -- -- — —.I atm— 9_20_1 Applicant Signature- — -- — __ —_ • --_—_ __ —_J ity Managers Office—M-31 Email: donatlonrequest@santa-ana.org Civic Center Plaza Fax: (714) 647.6954 n2P.O. Box 1966 —0 Santa Ana, CA 92702 De^aOonRegaeat#: I DR- Rekra:mc d en nil retstccl nFVs Council Meeting Date: NOVEMBER 7, 2017 Eligibility Met: YES/NO YES $1,000 i Approved Amount: City Manager Signature: Date: j Revised 01/0512017 EXHIBIT 15 29A-33 29A-34 CITY OF SANTA ANA DONATION AGREEMENT WITH CHARITABLE VENTURES OF ORANGE COUNTY 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and CHARITABLE VENTURES OF ORANGE COUNTY (FISCAL SPONSOR FOR WILSHIRE SQUARE NEIGHBORHOOD ASSOCIATION), a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in HOSTING THE ANNUAL HOLIDAY PARADE WITHIN WILSHIRE SQUARE NEIGHBORHOOD ON DECEMBER 3, 2017, FREE TO THE COMMUNITY ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of MAYOR PULIDO, believes there is a public purpose in supporting the Community Benefit because it PROVIDES RESIDENTS WITH AN OPPORTUNITY TO ENGAGE IN A POSITIVE EVENT DURING THE HOLIDAY SEASON AND PROMOTES COMMUNITY PRIDE. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of ONE THOUSAND DOLLARS ($1,000), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all fluids provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 16 29A-35 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Cormmmity Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements, The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perforin this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 16 29A-36 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By:. lm M. Funk Assistant City Attorney CHARITABLE VENTURES OF ORANGE COUNTY (FISCAL SPONSOR FOR WILSHIRE SQUARE NEIGHBORHOOD ASSOCIATION), a 501(c)(3) NON- PROFIT ORGANIZATION By: Signature Ted Kim Name Chief Operating Officer Title Exhibit 16 29A-37 29A-38 CITY OF SANTA ANA DONATION AGREEMENT WITH A.C. GREEN YOUTH FOUNDATION 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and A.C. GREEN- YOUTH FOUNDATION, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALs 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING A PROGRAM FOR YOUTH THAT LACK POSITIVE ROLE MODELS, ARE PHYSICALLY OR EMOTIONALLY ABUSED, ARE ECONOMICALLY DISADVANTAGED, AND/OR ARE HOMELESS ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terns and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of MAYOR PRO TEM MARTINEZ, believes there is a public purpose in supporting the Community Benefit because it WILL SUPPORT THE A.C. GREEN YOUTH FOUNDATION'S SANTA ANA LEADERSHIP PROGRAM/BASKETBALL CAMP FOR BOYS AND GIRLS WITHIN THE AGES OF 9-16 FOR THEIR EVENTS ON JUNE 1-3, 2018. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERbIS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of ONE THOUSAND DOLLARS ($1;000), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the firnds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 17 29A-39 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the fiords will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on fomes, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 17 29A-40 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: _ .qui M. Funk Assistant City Attorney A.C. GREEN YOUTH FOUNDATION, a 501(c) 3 NON-PROFIT ORGANIZATION By: Signature Name Title Exhibit 17 29A-41 29A-42 CITY OF SANTA ANA DONATION AGREEMENT WITH LONG BEACH CINEMATHEQUE 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and LONG BEACH CINEMATHEQUE (AS FISCAL SPONSOR FOR THE FRIDA CINEMA), a California 501(c) (3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in HOSTING A MOVIE SCREENING EVENT AT THE FRIDA CINEMA TO SHOWCASE THE FILM i°DOLORES" BASED ON FAMED ACTIVIST DOLORES HUERTA ON NOVEMBER 4, 2017 ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of MAYOR PRO TEM MARTINEZ, believes there is a public purpose in supporting the Community Benefit because it WILL PROVIDE AN FACE-TO-FACE OPPORTUNITY FOR THE COMMUNITY TO MEET DOLORES HUERTA, CO-FOUNDER OF THE UNITED FARM WORKERS WITH THE GOAL OF INSPIRING FUTURE GENERATIONS TO BE LEADERS IN THEIR COMMUNITIES. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of THREE THOUSAND DOLLARS_($3,000),-because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the fiords only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 18 29A-43 3.3 Waivers. Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement maybe altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement, Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 18 29A-44 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: iYlr• �- hn M. Funk Assistant City Attorney LONG BEACH CINEMATHEQUE (AS FISCAL SPONSOR FOR THE FRIDA CINEMA); a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title Exhibit 18 29A-45 CITY OF SANTA ANA DONATION AGREEMENT WITH MAKARA CENTER FOR THE ARTS PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and MAKARA-CENTER_FOR THE ARTS, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING A TEN MONTH CITYWIDE READING INITIATIVE TO CELEBRATE THE 200Th ANNIVERSARY OF FRANKENSTEIN BEGINNING JANUARY 2015 AND WILL HOST FREE MONTHLY STEAM EVENTS FOR SANTA ANA RESIDENTS ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of MAYOR PRO TEM MARTINEZ, believes there is a public purpose in supporting the Community Benefit because it WILL PROVIDE FREE COPIES OF THE NOVEL, ENGAGE YOUTH IN LITERACY IN ENGLISH, SPANISH, AND VIETNAMESE, THE OBJECTIVE OF THE INITIATIVE IS TO ENGAGE YOUTH WITH ART, SCIENCE, TECHNOLOGY, AND ETHICS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FOUR HUNDRED THIRTY DOLLARS ($430),because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the fiends pursuant to Section 3.2 below. 3.2 Tenn; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City tenninate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indeimmification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 19 29A-47 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authoritv to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 19 ,, • CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney 107 By: )ITSi ohn M. Funk Assistant City Attorney MAKARA CENTER OF THE ARTS, a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title 29A-49 29A-50 CITY OF SANTA ANA DONATION AGREEMENT WITH DELHI CENTER 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and DELHI --CENTER, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING ON-GOING SERVICES FOR THE DELHI CENTER'S TEENS ENGAGED IN LEARNING AND LEADERSHIP PROGRAM FROM AUGUST 2017 THROUGH JUNE 2018 ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recorrnnendation of COUNCILMEMBER SARMIENTO, believes there is a public purpose in supporting the Community Benefit because it PROVIDES GANG PREVENTION PROGRAMMING THAT USES LEADERSHIP DEVELOPMENT, INTERNSHIPS, AND COMMUNITY SERVICES TO TRAIN TEENS TO OVERCOME BARRIERS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of ONE THOUSAND DOLLARS ($1,000), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate retum of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of Exhibit 20 29A-51 injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in cormection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This .Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Extubit 20 29A-52 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: LE Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: 91L�V'�� hn M. Funk Assistant City Attorney DELHI CENTER, a 501(c)(3) NON- PROFIT ORGANIZATION LE Signature Jenny Rios Narne Executive Director Title 29A-53 29A-54 CITY OF SANTA ANA DONATION AGREEMENT WITH SANTA ANA UNIDOS BOXING CLUB 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and SANTA ANA-UNIDOS BOXING CLUB, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. REcrrALs 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING ON-GOING SERVICES TO AT -RISK YOUTH IN SANTA ANA AND HOST A CEREMONY HIGHLIGHTING SANTA ANA ROLE MODELS ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER SARMIENTO, believes there is a public purpose in supporting the Community Benefit because it PROMOTES ALTERNATIVES AND EFFECTIVE FORMS OF YOUTH REHABILITATION PRORGAMS TO COMBAT INCARCERATION AND HIGHLIGHTS POSITIVE ROLE MODELS THAT HELP YOUTH ATTAIN SUCCESS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of ONE THOUSAND DOLLARS ($1,000), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the fluids. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 21 29A-55 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the fands will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and vohmteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or vohmteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 21 29A-56 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: w M. Funk Assistant City Attorney SANTA ANA UNIDOS BOXING CLUB, a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title Exhibit 21 29A-57 29A-58 CITY OF SANTA ANA DONATION AGREEMENT WITH DELHI CENTER 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and -DELHI CENTER, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING ON-GOING SERVICES FOR THE DELHI CENTER'S TEENS ENGAGED IN LEARNING AND LEADERSHIP PROGRAM FROM AUGUST 2017 THROUGH JUNE 2018 ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER SOLORIO, believes there is a public purpose in supporting the Community Benefit because it PROVIDES GANG PREVENTION PROGRAMMING THAT USES LEADERSHIP DEVELOPMENT, INTERNSHIPS, AND COMMUNITY SERVICES TO TRAIN TEENS TO OVERCOME BARRIERS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. TERms AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FIVE HUNDRED DOLLARS ($500); because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date fust above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City tenninate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per anmun. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Waivers. Insurance or Other Obligations. For proposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of Exhibit 22 29A-59 injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, includuig without Iimitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of thein in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 22 29A-60 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By:A lop 1/. hn M. Funk Assistant City Attorney DELHI CENTER, a 501(c)(3) NON- PROFIT ORGANIZATION Signature Jenny Rios Name Executive Director Title 29A-61 29A-62 CITY OF SANTA ANA DONATION AGREEMENT WITH SANTA ANA KIWANIS CLUB FOUNDATION 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and SANTA -ANA KIWANIS CLUB FOUNDATION, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in A HOLIDAY EVENT FOR NEEDY CHILDREN FOR THE HOLIDAY SEASON ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER SOLORIO, believes there is a public purpose in supporting the Community Benefit because it SUPPORTS THE COMMUNITY TO GIVE BACK TO CHILDREN IN NEED DURING THE HOLIDAY SEASON. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FIVE HUNDRED DOLLARS ($500), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement, Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the finds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Waivers. Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and Exbibit 23 29A-63 participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terns and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 23 29A-64 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney Q G{ Q By: Olin M. Funk Assistant City Attorney SANTA ANA HIWANIS CLUB FOUNDATION, a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title Exhibit 23 29A-65 I 0 A .., CITY OF SANTA ANA DONATION AGREEMENT WITH SER -JOBS FOR PROGRESS OF ORANGE COUNTY 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and SER=JOBS FOR PROGRESS OF_ -ORANGE COUNTY (AS FISCAL SPONSOR FOR SANTA ANA LULAC), a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in HOSTING THE OC HISPANIC WOMEN RECOGNITION AWARDS DINNER ON NOVEMBER 4, 2017, AT THE EBELL CLUB IN SANTA ANA ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER SOLORIO, believes there is a public purpose in supporting the Community Benefit because it IMPROVES THE LIVES OF YOUNG STUDENTS AND WOMEN THROUGH COLLEGE EDUCATION SUPPORT, RECOGNITION, AND ACCOMPLISHMENT EVENTS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TEILNIS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FIVE HUNDRED DOLLARS ($500y, because the City has determined that there is a public put -pose to be served in supporting the Community Benefit. In executing this Agreement and receiving the finds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Tenn; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 24 29A-67 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City, 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any mamier arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 24 r� CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: ohn M. Funk Assistant City Attorney SER -JOBS FOR PRORGESS OF ORANGE COUNTY (AS FISCAL SPONSOR FOR SANTA ANA LULAC), a 501(c)(3) NON-PROFIT ORGANIZATION M Signature Name Title Exhibit 24 29A-69 29A-70 CITY OF SANTA ANA DONATION AGREEMENT WITH TE -KE KARATE -DO 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and TE -KE NJUTSU KAN KARATE -DO, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in HOSTING THE 15Tx ANNUAL ADLAWAN CUP FOOD DRIVE KARATE CHAMPIONSHIP AT SEGERSTROM HIGH SCHOOL ON NOVEMBER 12, 2017, WHERE ALL COMPETITORS WILL DONATE GOODS TO GIVE THE WISEPLACE WOMEN'S SHELTER ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEIVIBER SOLORIO, believes there is a public purpose in supporting the Community Benefit because it PROVIDES AN OPPORTUNITY FOR YOUTH AND FAMILIES TO GIVE BACK TO THEIR COMMUNITY, BRING AWARENESS TO THOSE IN NEED, AND THE VALUE OF COMMUNITY SERVICE. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FIVE HUNDRED DOLLARS ($500), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the tenns and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply (ally with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 25 29A-71 3.3 Waivers. Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3,4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious traruna or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willfiil misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perfonn this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 25 29A-72 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: " Nf, lm M. Funk Assistant City Attorney TE-KENJUTSU-KAN KARATE -DO, a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title Exhibit 25 29A-73 29A-74 CITY OF SANTA ANA DONATION AGREEMENT WITH CENTRO CULTURAL DE MEXICO EN EL CONDADO DE ORANGE 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and EL CENTRO CULTURAL DE MEXICO EN EL CONDADO DE ORANGE, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PARTICIPATING IN THE NOCHE DE ALTARES EVENT ON NOVEMBER 4, 2017, IN DOWNTOWN SANTA ANA TO PROMOTE CULTURE AND ART ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public P=ose. The City, by recommendation of COUNCILMEMBER BENAVIDES, believes there is a public purpose in supporting the Community Benefit because it PROVIDES A DAY OF CULTURAL CELEBRATION OF THE DAY OF THE DEAD IN MEMORY OF LOVED ONES THAT HAVE PASSED AWAY, AND PROMOTES COMMUNITY PRIDE, ART, AND MUSICAL AWARENESS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of EIGHT HUNDRED DOLLARS (S800), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the fluids for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to tenninate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 26 29A-75 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on farms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement maybe altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 26 29A-76 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: m Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: , Tt—� J M. Funk Assistant City Attorney CENTRO CULTURAL DE MEXICO EN EL CONDADO DE ORANGE, a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title Exhibit 26 29A-77 29A-78 CITY OF SANTA ANA DONATION AGREEMENT WITH CHARITABLE VENTURES OF ORANGE COUNTY 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017 by and between the City of Santa Ana, a municipal corporation ("City") and CHARITABLE VENTURES OF ORANGE COUNTY (FISCAL SPONSOR FOR WILSHIRE SQUARE NEIGHBORHOOD ASSOCIATION), a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in HOSTING THE ANNUAL HOLIDAY PARADE WITHIN WILSHIRE SQUARE NEIGHBORHOOD ON DECEMBER 3, 2017, FREE TO THE COMMUNITY ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEM 3ER VILLEGAS, believes there is a public purpose in supporting the Community Benefit because it PROVIDES ALL RESIDENTS WITH AN OPPORTUNITY TO ENGAGE IN A POSITIVE EVENT DURING THE, HOLIDAY SEASON AND PROMOTES COMMUNITY PRIDE. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONMIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FIVE HUNDRED DOLLARS ($500), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terns and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per aimuim. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 27 29A-79 3.3 Waivers. Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them hi connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject inatter hereof, and supersedes all prior negotiations, understandings or agreements. The terns and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 27 rq •I CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney ohn M. Funk Assistant City Attorney CHARITABLE VENTURES OF ORANGE COUNTY (FISCAL SPONSOR FOR WILSHIRE SQUARE NEIGHBORHOOD ASSOCIATION), a 501(c)(3) NON- PROFIT ORGANIZATION LE Signature Ted Kim Name Chief Operating Officer Title Exhibit 27 29A-81 29A-82 CITY OF SANTA ANA DONATION AGREEMENT WITH DELHI CENTER 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and DELHI CENTER, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING ON-GOING SERVICES FOR THE DELHI CENTER'S TEENS ENGAGED IN LEARNING AND LEADERSHIP PROGRAM FROM AUGUST 2017 THROUGH JUNE 2018 ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER VIL-LEGAS, believes there is a public purpose in supporting the Community Benefit because it PROVIDES GANG PREVENTION PROGRAMMING THAT USES LEADERSHIP DEVELOPMENT, INTERNSHIPS, AND COMMUNITY SERVICES TO TRAIN TEENS TO OVERCOME BARRIERS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERIYIS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of FIVE HUNDRED DOLLARS ($500), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Waivers. Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of Exhibit 28 29A-83 injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 28 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: '%YID, _T"'A J M. Funk Assistant City Attorney DELHI CENTER, a 501(c)(3) NON- PROFIT ORGANIZATION 0 Signature Jenny Rios Name Executive Director Title I 0 A .., CITY OF SANTA ANA DONATION AGREEMENT WITH MAKARA CENTER FOR THE ARTS 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017 by and between the City of Santa Ana, a municipal corporation ("City") and MAI{ARA CENTER FOR THE ARTS, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING A TEN MONTH CITYWIDE READING INITIATIVE TO CELEBRATE THE 200TH ANNIVERSARY OF FRANKENSTEIN BEGINNING JANUARY 2018 AND WILL HOST FREE MONTHLY STEAM EVENTS FOR SANTA ANA RESIDENTS ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Piupose. The City, by recommendation of COUNCILMEMBER VILLEGAS; believes there is a public purpose in supporting the Community Benefit because it WILL PROVIDE FREE COPIES OF THE NOVEL, ENGAGE YOUTH IN LITERACY IN ENGLISH, SPANISH, AND VIETNAMESE, THE OBJECTIVE OF THE INITIA'T'IVE IS TO ENGAGE YOUTH WITH ART, SCIENCE, TECHNOLOGY, AND ETHICS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of SEVEN HUNDRED FIFTY DOLLARS ($750), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the fiords. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. Exhibit 29 29A-87 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certaininsurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release fonns shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 29 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney () By: 4r2&=- i ohn M. Funk Assistant City Attorney MAKARA CENTER OF THE ARTS, a 501(c)(3) NON-PROFIT ORGANIZATION By: Signature Name Title 29A-90 CITY OF SANTA ANA DONATION AGREEMENT WITH HEALTHY SMHLES FOR KIDS OF ORANGE COUNTY 1. PARTIES AND DATE This Donation Agreement ("Agreement") is entered into on NOVEMBER 7, 2017, by and between the City of Santa Ana, a municipal corporation ("City") and HEALTHY SMILES FOR RIDS OF ORANGE -COUNTY, a California 501(c)(3) NON-PROFIT ORGANIZATION ("Recipient"). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in PROVIDING ON-GOING DENTAL SERVICES FOR CHILDREN IN SANTA ANA FREE OF COST OR LOW COST ("Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER TINAJERO, believes there is a public purpose in supporting the Community Benefit because it IS DEDICATED TO EMPOWERING ALL CHILDREN TO LIVE HEALTHY AND HAPPY LIVES, REDUCE ORAL DISEASE IN CHILDREN AND PROVIDE EDUCATION, TREATMENT AND ADVOCACY. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one-time payment of ONE THOUSAND DOLLARS ($1,000), because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the Rinds for such purpose or otherwise comply fully with the terms of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10%) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Waivers. Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of Exhibit 30 29A-91 injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver/release protections. This right shall be on-going and may be implemented by the City at any time, and all insurance and waiver/release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in Iaw or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification, This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The tenns and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authoritv to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. Exhibit 30 29A-92 CITY OF SANTA ANA By: Raul Godinez City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: Sonia R. Carvalho City Attorney By: u J hn M. Funk Assistant City Attorney HEALTHY SMILES FOR KIDS OF ORANGE COUNTY, a 501(c)(3) NON- PROFIT ORGANIZATION By: Signature Name Title Exhibit 30 29A-93 29A-94 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 17, 2017 TITLE: PUBLIC HEARING - ZONING ORDINANCE AMENDMENT NO. 2017-03 TO AMEND SPECIFIC DEVELOPMENT NO. 60 TO ALLOW A NEW 75 -FOOT TALL DOUBLE FACE DIGITAL ILLUMINATED PYLON SIGN AT THE SANTA ANA AUTO MALL LOCATED AT 1505 SOUTH AUTO MALL DRIVE — SCOTT HAMPTON, APPLICANT / APPROVE SALES TAX LOAN AGREEMENT BETWEEN CITY OF SANTA ANA AND SANTA AUTO MALL AUTO DEALERS ASSOCIATION; APPROVE PAYMENT TO EMI INC. FOR THE PURCHASE OF AN LED SIGN AT THE SANTA ANA AUTO MALL {STRATEGIC PLAN NO. 3,21 RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER NOV 0 7 2017 1. Adopt an ordinance approving Zoning Ordinance Amendment No. 2017-03. 2. Authorize the City Manager and the Clerk of the Council to execute a Sales Tax Loan Agreement between the City of Santa Ana and the Santa Ana Auto Dealers Association LLC, subject to non -substantive changes approved by the City Manager and the City Attorney. 3. Approve the payment to EMI, Inc. for purchase and installation of an LED sign at the Santa Ana Auto Mall PLANNING COMMISSION ACTION At its regular meeting on September 25, 2017, the Planning Commission recommended that the City Council adopt an ordinance approving Zoning Ordinance Amendment No. 2017-03 to amend Specific Development No. 60 of the Santa Ana Municipal Code (SAMC) to allow a new 75 -foot tall double face digital illuminated pylon sign at the Santa Ana Auto Mall located at 1505 South Auto Mall Drive. The Planning Commission made no changes to the modifications outlined in the attached staff report (Exhibit A). 75A-1 Zoning Ordinance Amendment No. 2017-03 — Amend Specific Development No. 60 for Santa Ana Auto Mall Digital Sign October 17, 2017 Page 2 DESCRIPTION Scott Hampton, representing HSA LLC., is requesting approval to install a new 75 -foot tall double face digital illuminated pylon sign at the Santa Ana Auto Mall. The proposed code changes will allow installation of a more visible sign utilizing new L.E.D. technology. Currently, SD -60 standards allow a 70 -foot tall, 835 -square -foot, double -sided electronic reader board sign which was approved in April of 1994 and constructed shortly after. Since the date of construction of the existing , pylon sign, competing auto malls have been approved with new full color digital electronic message display signs. To facilitate the new sign, modifications to the specific development zoning document are needed. The modifications would allow for an increase in total height of 75 feet and a maximum signable area of 1,200 square feet for the new sign. One additional change to the code will eliminate the option for individual dealerships to place a logo or name brand on the column of the sign. The new sign will help provide an enhanced method of business identification and advertising and will contribute to the community and the City by advertising the Auto Mall regionally. The Auto Mall recognizes that the current sign is obsolete in nature and allowing the new sign will help ensure that the Auto mall remains competitive to other automobile centers in the area. Full sized site plans are available for public viewing in the Clerk of the Council Office. Sales Tax Loan between the City of Santa Ana and Santa Ana Auto Mall Dealer's Association Exhibit C The City has maintained a long and successful relationship with the Santa Ana Auto Mall (Auto Mall) for almost forty years. During that time the Auto Mall has become a regional destination in purchasing and/or leasing vehicles. As a result of the successful business environment for the Auto Mall, it has been a high performing Sales Tax generator for the City. Since 2011, the Auto Mall has undergone extensive renovation of its facilities totaling approximately $66 million, which includes modernization of the various components of the existing dealers for consumers as well as expansion of its inventory base. Also it has attracted new franchises / dealers to the Auto Mall expanding their vehicle selection. This recent investment by the dealers has allowed the Auto Mall to remain competitive with other nearby dealers and has provided for future increase in the amount of vehicles to be sold/leased resulting in both higher revenue and greater sales tax for the City. Adoption of the ordinance and recommended actions will allow for the purchase and installation of the new sign. In order to continue leveraging its investment of its dealers, the Auto Mall has approached the City to assist with the Purchase of an Auto Mall Sign (Sign). The sign will be utilized as the primary advertising medium, for the. Auto Mall, reaching approximately 250,000 vehicles a day traversing on the 55 freeway. The Sign will contain up -to date LED technology and disclose the various dealers in business at the Auto Mall along with the various incentives for prospective buyers. 75A-2 Zoning Ordinance Amendment No. 2017-03 — Amend Specific Development No. 60 for Santa Ana Auto Mall Digital Sign October 17, 2017 Page 3 The Sign is estimated to increase revenue for the Auto Mall which is projected to increase approximately 8% to 12% (Exhibit D) of Sales Tax for the City. A review of the previously completed five fiscal years disclosed the average sales tax received by the City (from the Auto Mall) is approximately $2.8 million. An analysis conducted by the Auto Mall anticipates the Loan to be repaid the City (General Fund) in approximately six years. The assistance requested by the Auto Mall is as follows: • Payment of the Sign - $1,032,948 • Term - 10 years • Payable - 50% increase in Sales Tax over Base Year • Base Year - Calendar Year 2016 • Other — Remaining loan balance will be repaid by the Auto Mall if increase in Sales Tax is not incurred As noted if the projected sales tax increase is not received by the City, the Auto Mall will be responsible for repaying the remaining loan balance at the end of the loan term including accrued interest. Funding of the Loan The Loan to the Auto Mall will be funded, from the City's Operating Reserve which as of June 30, 2017 maintained a balance of $42,397,974. The funding of this loan will reduce the Operating Reserve•to $41,364,446. When the repayment of the Loan occurs, via fifty percent of the sales tax received over and above the base year, the Operating Reserve will be increased by the amount of the repayment earned in the given year. Payment to EMI Signs EMI (Electric Media, Inc.) is the vendor designated by the Auto Mall to demolish the existing sign; and install the new sign (see Exhibit E). The City's sole responsibility is to furnish payment on behalf of the Auto Mall. Subsequently the Auto Mall will be responsible for the operation, maintenance and liability of the Sign. As noted above, the Sign costs will be $1,032,948. In addition, Auto Mall has also agreed to provide the City access to sign for the purpose of marketing City sponsored events (e.g. Council or Commission or Special events). The programming would assist in increasing notification efforts to the public for City business and recreational events. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). 75A-3 Zoning Ordinance Amendment No. 2017-03 — Amend Specific Development No. 60 for Santa Ana Auto Mall Digital Sign October 17, 2017 Page 4 FISCAL IMPACT There is no fiscal impact associated with this action regarding the Planning and Building activities. Sales Tax Loan Agreement A Receivable will be established in the General Fund Note Receivable account (01101001- 11465) in the amount of $1,032,948. Repayment will be made by offsetting Sales Tax received by the City which is fifty percent over the base year amount (noted above). Interest received / accrued annually will be recorded in Earnings on Investments account (01102002-58000). Payment to EMI, Inc. Funds will be appropriated from the General Fund Note Receivable account (01101001-11465) in the amount of $1,032,948 for the purchase and installation of the sign and funded via the City's General Fund Operating Reserve (fund balance). Candida Neal, AICP Acting Executive Director Planning & Building Agency IO:rb S:RFCA\10-17-17\ZOA2017-03.m APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency Exhibit: A. Planning Commission Staff Report B. Ordinance C. Sales Tax Agreement D. Auto Mall Deal Points E. EMI Signs Invoice 75A-4 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: SEPTEMBER 25, 2017 TITLE: PUBLIC HEARING - FILED BY SCOTT HAMPTON FOR ZONING ORDINANCE AMENDMENT NO. 2017-03 TO AMEND SPECIFIC DEVELOPMENT NO. 60 TO ALLOW A NEW 75 -FOOT TALL DOUBLE FACE DIGITAL ILLUMINATED PYLON SIGN AT THE SANTA ANA AUTO MALL LOCATED AT 1505 SOUTH AUTO MALL DRIVE (STRATEGIC PLAN NO. 3, 2) Prepared by Ivan Orozco. PLANNING COMMISSION SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request ❑ 'Staff Recommendation CONTINUED TO Acting Executive irector Acting Plari ing Manager RECOMMENDED ACTION Recommend that the City Council adopt an ordinance approving Zoning Ordinance Amendment No. 2017=03 to revise Specific Development No. 60 of the Santa Ana Municipal Code (SAMC). Executive Summary Scott Hampton, representing HSA LLC., is requesting approval to install a new 75 -foot tall double face digital illuminated pylon sign at the Santa Ana Auto Mall. The proposed code changes will allow installation of a more visible sign utilizing new L.E.D. technology. Staff is recommending approval of the request because the site meets all Santa Ana Municipal Code requirements and applicable development standards and because the site is located away from any sensitive land uses. Table 1: Project and Location Information Item Information Project Address 1505 South Auto Mall Drive Nearest Intersection Auto Mall Drive and East Edinger Avenue General Plan Designation Industrial (IND) Zonin Designation $ ecific Develo ment SD No. 60/Santa Ana Auto Mall Surrounding Land Uses North Automobile Dealership and LOSSAN railroad corridor East Costa Mesa SR -55 Freeway South Automobile Dealership West Automobile Dealership Pro erty Size 120,661 square feet 2.77 acres Existing Site Develo ment The site contains an existing automobile dealership building. Use Permissions Permitted by right Zoning Code Sections Affected Use Signage Requirements I SD -60, Section No. 3 ISD -60, Section No. 8 EXHIBIT A 75A-5 Zoning Ordinance Amendment No.'201 V03, September.25, 2017 Page 2 Project Description Currently, $D=60 standards allow.a 70 -foot tall, 835 -square -foot, double sided: electronic reader, board sign. The applicantiis now proposing to, remove the existing teader'board sign and construct a new full-color double-sided,75-foot tall, 11020-square400t LED sign.. As a.result of the new sign's larger size, .changes to. the 'SD are needed that will allow the new sign to be, constructed. Table 2rAuto Mall Reader Board Signage'Requirements Standards Required by current,SD NoAQ 'Proposed by, amendment to'SD'Nd. 0 One electronic reader board sign One full color digital electronic message. Pylon.Sign for the Santa And Auto Mall shall display sign for the Santa,Ana,Auto'Mall be,p&mltted,along the Costa -Mesa_ shall be permitted along the Costa Mesa (SR -55) Freeway. (SR -55) Freeway. Maximum Height 8f P Ion.Si" n 70;Feet 75 Feet ,Square Footage of. Sigh'Face g35 Square Feet l7 ptor 1,206Square Fee t The copy area.for individual merchandise shall be limited to .either the registered logo or the Dealership Branding manufacturer's product name. Colors utilized shall be the To be deleted !standard auto manufacturer's color mode, which is typically a shade of red,, blue or black'. Prolect'Backaround The'Santa Ana Auto Mall is constantly striving to be competitive with similar auto malls in the surrounding area, including those 'in Costa Mesa,. Garden Grove, Tustin and. Irvine. Over the years, ;the majority of the dealerships within the auto mall have either expanded from their existing footprints_ or have remodeled their buildings, all in an effort to remain competitive. In April 1994, the City of Santa Ana approved a proposal to construct a 70 -foot high electronic reader board designed to be used for advertising for the existing automobile dealerships. 'Since the date of construction of the existing pylon sign, competing auto malls have been approved with new full color digital electronic message display signs. The Auto Mall originally approached the City approximately two years .ago with a similar proposal, but the City never received a formal application. The ownership's 'association is now requesting that the City partner with them in the construction of a new full color digital electronic message display :sign. To facilitate the new sign, modifications to the specific development zoning document are needed. 75A-6 Zoning .Ordinance Amendment No: 2017-03 September 25, 2017 Page 3 Table 3: Proiect *Analysis .Issue or Topie. Analysis CEQA7ype The proposed sign conforms to all'the conditions and provisions of the Document Type electronic message display:section of the Santa Ana Municipal Code (Sec. 41-885). These standards are designed to minimize light intrusion Conformity to development into any surrounding periods and require that brightness be automatically standards for digital signs adjusted depending on weather and ambient light conditions. Additionally, Exempt or Analysis the proposed sign, the subject, property, and corresponding structures will be in compliance with all applicable development standards in SD -60.. Strategic Plan •Ali g ninerit The sign will not be detrimental to persons residing or working in the Approval of this item supports the City's efforts to meet Goal No.3 (Economic area as it is located within an area of the City that is, predominantly Proximity to Sensitive Land Uses commercial in nature with no sensitive land uses located nearby. In and encourage private development through new General Plan and.Zoning addition, the SR -55 freeway provides a buffer between the project site Ordinance policies. and residential uses in Tustin. The new sign will help provide an enhanced method of business identification and advertising and will contribute to the community and, the City by advertising the Auto Mall regionally. The Auto Mall Significant Impacts to Project Site recognizes that the current sign is obsolete in nature and allowing the. new.sign will help ensure that the Auto mall remains competitive to other automobile centers in the area. Since the sign is a replacement of an existing pylon sign no negative, impactswill occur to the project site. Staff has analyzed the applicant's request and has worked closely with the firm contracted to construct the sign to ensure that its design and architectural, style. match the modern, high-tech industrial architecture required for all structures in the Santa Ana Auto Mall. In addition, modifications to SD -60 require the proposed sign will allow the City to enter into an agreement with the. Auto Mall association for revenue sharing. This agreement, part of a separate effort led by the Community Development Agency, will provide enhanced revenues to:the City while providing new signage and advertising options to the Auto Mall through the digital sign. Table 4• CEQA Strategic Plan Alignment and Public Notification & Community Outreach, CECA, Strategic Plan Ali nment,;and'Public Notification &CbmmunityOutreach CEQA CEQA7ype Cate orical Exemption Section 15311 Document Type Existing Facilities ER No. 2017-107 Class 11 exemptions apply to accessory structures. The proposed sign is a replacement of an existing pylon sign which is located 10 feet.south of the proposed Reason(s) location. As the new sign will only be a replacement and is partof a larger auto mall Exempt or Analysis development and no other building expansion being proposed, this accessory structure will not result in a substantive change to the site. Strategic Plan •Ali g ninerit Approval of this item supports the City's efforts to meet Goal No.3 (Economic Goal(s) and Development) Objective No. 2 of creating new opportunities for business/job-growth Policy(s), and encourage private development through new General Plan and.Zoning Ordinance policies. 75A-7 Zoning Ordinance -Amendment No. 2017-03 .September 25, 2017 Page 4 Public Notification & Community- Outreach A public noticed was posted on the project site on September 15, 2017. Required Measures Notification by mail was mailed to all property owners and occupants within 500 -feet Of the project site on September 15; 2017. Newspaper posting was published in the Orange County Reporter on September 15, 2017. Conclusion The proposed action would amend Specific Development (SD) No. 60. provided within this report, staff recommends that the Planning Commission Council approve Zoning Ordinance Amendment. No. 2017-03. Ivan Orozco .v Assistant Planner tO.jm M.TlanningCommisslon11505AutoMall 1ZOA2017-03.pc Exhibits 1. Vicinity Zoning and Aerial View 2. Site Plan 3. Site Photo 4. Sign Elevations 5. Ordinance 75A-8 Based on the analysis recommend that the City 911312017 ZOA-2017-03 5 South Auto Mall D G—�.%`�,;r}, ilii• � - Santa Ana Boundary' y ' '1250 fee[ Exhibit 1 e ; - -- n 2n14 niniral Man Protlllrr<. All rinht, rP<nrvad. http:l/maps.digitaimapcentral.com/production/DashboardIB/6/5/releasglyt Il/lgpWUcommands/printlhtmlprinUPdnlPreview.hlml# 7/1 ZOA NO. 2017-03 AMENDEMENTTO SPECIFIC DEVELOPMENT NO. 60 1505 SOUTH AUTO MALL DRIVE EXHIBIT 2 75A-10 ZOA NO. 2017-03 AMENDEMENTTO SPECIFIC DEVELOPMENT NO. 60 1505 SOUTH AUTO MALL DRIVE EXHIBIT 3 75A-11 WA As inti � j' ZOA NO. 2017-03 AMENDEMENTTO SPECIFIC DEVELOPMENT NO. 60 1505 SOUTH AUTO MALL DRIVE EXHIBIT 4 75A-12 I 35 �£ WA As inti � j' ZOA NO. 2017-03 AMENDEMENTTO SPECIFIC DEVELOPMENT NO. 60 1505 SOUTH AUTO MALL DRIVE EXHIBIT 4 75A-12 LS 925.17 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO PROVISIONS OF SPECIFIC DEVELOPMENT (SD) NO. 60; PERTAINING TO THE SANTA ANA AUTO MALL, RELATING TO THE SIGNAGE REQUIREMENTS THE CITY .COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN•,AS' FOLLOWS: 'Section 1. Th.e,City Councilof the City of Santa. Ana hereby finds,•deterrnines and declares as follows: .A. In a continuing effort to establish high-quality development' standards and to create a user friendly environment for the business community within the city, the. applicant is requesting that the existing .signage requirements for Specific: Development (SD):No. 60 be revised in order to construct a. new75-foot'tall full color electronic digital messeige'board.. B. After a :thorough analysis of the signage code requirements for Specific Development (SD) No. 60, -specifically Section 8 m (A) of the zoning docuent, staff identified the applicant's request to revise the allowed signage type, ,the maximum allowed height and maximum allowed sign face square footage for a pylon sign dedicated to the Santa 'Ana Auto Mall development site. The proposed changes to the allowed signage requirements for a pylon sign enable the City to implement a regulatory framework that both ,protects the health; safety, and welfare of the city and offers .alternative forms of business growth .and identification 'for business operators and o developers. Staff analyzed several projects With similar characteristics including physical construction of large pylon signs in automobile dealerships or other commercial uses that have already provided signage of this extent. In addition to allowing a taller and larger pylon sign, the applicant has also requested that the construction of the sign•allow for a full color digital electronic message displaysign. By making this change, staff guarantees that the proposed sign will meet all applicable development standards set forth`in the Specific Development No. 60. C. Section8 of Specific Development (SD) No. 60 describes•all signage types allowed and addresses the signage requirements for each type of sign. Currently the applicant is only requesting to modify Section 8(A)(1) through Section 8(A)(4) which state that a proposed electronic reader board pylon.sign can have a maximum height'of 70 feet and,a maximum"face area square footage of 835 square feet. The applicant has requested- that equestedthat signage requirements for a pylon sign consider the 'installation of an electronic full Ordinance No. NS -XXX EXHIBIT 5 Page 1 of 4 75A-13 color digital electronic message display sign and be allowed a maximum height of 75 feet with the face area square footage Maxim um. allowed being 1,200 square feet, In an effort to. provide a modem approach to signage and considering the recent remodeling of the majority of automobile dealerships within the Santa Ana Auto Mall, staff has also revised Section 8(A)(4) to be removed in its entirety. The last sub -section allowedfor individual dealerships to place •a'logo or manufacturer's product name on the solid,portion of the Pylon structure. The determination was made to remove such sub -section in order to guaranteethat a clean, sleek, and full color digital electronic message display sign will complete the look'forthe Auto Mall that proJides'an industrial, Modem style. D. On September 25, '2017 the Planning Commission 'held 'a. duly noticed ,public hearing on Zoning Ordinance Amendment 2017-03. E. The City Council has held,a noticed public hearing on this Ordinanceand has. considered all,testimony, presented .thereto: THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 2: In orderto implement a regulatory framework that both protects the health, safety, and welfare of. the :city and promotes business growth for business operators and developers, Section 8 of the Specific• Development ,(SD) No..- 60 is hereby. amended such that it reads as follows: &&tion B. Signage Requirements. A. Electronic Reader-E3eaFd Pylon Sign.. 1. One full, color -digital electronic message display sign for the.Santa An Auto Mall shall be permitted along the Newooit-Costa Mesa Freeway (SR -55):, The sign shall be located on parcel 6 or parcel7 per Exhibit A. 2. The maximum'height of the readier board sign shall 6e 7- 0 75 feet •in , height: 3. The maximurri square footage.of the dig_ ital sign face shall be up Lo 9W 1:200.square feet. 4, Thliep s, the area feF. .. �.. a i a I h limit eitheF the registeFe4 lege er t , PFGd Gt .. QGIGFS utilized shall be the t ;31k�2-BF�126k. brd_ina_ nce _No.'NS-XXX Page 2 of 4 75A-14 Section 3. .In accordance with the California Environmental Quality Act (CEQA) the recommended action is .exempt from CEQA per•Section 15311. This exemption applies to accessory structures. The proposed sign ,is a direct replacement of an existing pylon sign which is located Just ten feet:south of the proposed ilocation. As the new sign will only be a replacement and is.part of a larger,auto mall development with no other building expansion being proposed, this accessory"structure will not result in a substantive change to the site. Categorical Exemption'No. ER 2017-107 will be filed for 'this' project. Section 4. 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 anv 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 ADOPTED this: day of APPROVED AS TO. FORM:. Sonia R. Carvalho City-Attomey By: Lisa Storck Assistant Ciity-Attorney AYES`. NOES:'. ABSTAIN: NOT PRESENT: Councilmerribers Councilmembers.- Councilmembers ,Council members 2017. Miguei A: Pulido. Mayor 75A-15 Ordinance No. NS -XXX Page 3 of 4 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 -XXX .to, be the original ordinance adopted by the City Council of the City of Santa Ana .on . and that said ordinance. was published in accordance with the Charter of the City of Santa Ana. .Date: Clerk• of the Council City of Santa Ana Ordinance No. NS -XXX Page..4 of 4 75A-16 LS 9.25.17 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO PROVISIONS OF SPECIFIC DEVELOPMENT (SD) NO. 60, PERTAINING TO THE SANTA ANA AUTO MALL RELATING TO THE SIGNAGE REQUIREMENTS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In a continuing effort to establish high-quality development standards and to create a user friendly environment for the business community within the city, the applicant is requesting that the existing signage requirements for Specific Development (SD) No. 60 be revised in order to construct a new 75 -foot tall full color electronic digital message board. B. After a thorough analysis of the signage code requirements for Specific Development (SD) No. 60, specifically Section 8(A) of the zoning document, staff identified the applicant's request to revise the allowed signage type, the maximum allowed height and maximum allowed sign face square footage for a pylon sign dedicated to the Santa Ana Auto Mall development site. The proposed changes to the allowed signage requirements for a pylon sign enable the City to implement a regulatory framework that both protects the health, safety, and welfare of the city and offers alternative forms of business growth and identification for business operators and developers. Staff analyzed several projects with similar characteristics including physical construction of large pylon signs in automobile dealerships or other commercial uses that have already provided signage of this extent. In addition to allowing a taller and larger pylon sign, the applicant has also requested that the construction of the sign allow for a full color digital electronic message display sign. By making this change, staff guarantees that the proposed sign will meet all applicable development standards set forth in the Specific Development No. 60. C. Section 8 of Specific Development (SD) No. 60 describes all signage types allowed and addresses the signage requirements for each type of sign. Currently the applicant is only requesting to modify Section 8(A)(1) through Section 8(A)(4) which state that a proposed electronic reader board pylon sign can have a maximum height of 70 feet and a maximum face area square footage of 835 square feet. The applicant has requested that signage requirements for a pylon sign consider the installation of an electronic full Ordinance No. NS -XXX Page 1 of 4 Exhibit 8 75A-17 color digital electronic message display sign and be allowed a maximum height of 75 feet with the face area square footage maximum allowed being 1,200 square feet. In an effort to provide a modern approach to signage and considering the recent remodeling of the majority of automobile dealerships within the Santa Ana Auto Mall, staff has also revised Section 8(A)(4) to be removed in its entirety. The last sub -section allowed for individual dealerships to place a logo or manufacturer's product name on the solid portion of the pylon structure. The determination was made to remove such sub -section in order to guarantee that a clean, sleek, and full color digital electronic message display sign will complete the look for the Auto Mall that provides an industrial modem style. D. On September 25, 2017 the Planning Commission held a duly noticed public hearing on Zoning Ordinance Amendment 2017-03. E. The City Council has held a noticed public hearing on this Ordinance and has considered all testimony presented thereto. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 2: In order to implement a regulatory framework that both protects the health, safety, and welfare of the city and promotes business growth for business operators and developers, Section 8 of the Specific Development (SD) No. 60 is hereby amended such that it reads as follows: Section 8. Signage Requirements. A. Electronic Reader-SeaFd Pylon Sign. 1. One elPctrc^;c read-e-FbeaFd full color digital electronic message display sign for the Santa Ana Auto Mall shall be permitted along the Newpoft-Costa Mesa Freeway (SR -55). The sign shall be located on parcel 6 or parcel 7 per Exhibit A. 2. The maximum height of the reader board sign shall be 7&75 feet in height. 3. The maximum square footage of the digital sign face shall be up Lo 8351,200 square feet. 4. redYGt Y hl, Lq Ar ^I' bR. Ordinance No. NS -XXX Page 2 of 4 75A-18 Section 3. In accordance with the California Environmental Quality Act (CEQA) the recommended action is exempt from CEQA per Section 15311. This exemption applies to accessory structures. The proposed sign is a direct replacement of an existing pylon sign which is located just ten feet south of the proposed location. As the new sign will only be a replacement and is part of a larger auto mall development with no other building expansion being proposed, this accessory structure will not result in a substantive change to the site. Categorical Exemption No. ER 2017-107 will be filed for this project. Section 4. 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. ADOPTED this day of 2017. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney �¢ By: a `.EJ';i-- Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Ordinance No. NS -XXX Page 3 of 4 75A-19 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 -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75A-20 Ordinance No. NS -XXX Page 4 of 4 SALES TAX LOAN AGREEMENT This SALES TAX LOAN AGREEMENT ("Agreement") is made and entered into this day of November, 2017, by and between the Santa Ana Auto Mall Dealers Association, LLC, a California limited liability company ("Auto Mall"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Sales tax assistance is an economic development tool used to encourage the development or upgrade of businesses that create additional sales tax for a City. The purpose of this Agreement is to help pay the costs of installing a new 75 -foot tall double face digital illuminated pylon sign at the Santa Ana Auto Mall located at 1505 South Auto Mall Drive. B. The City has maintained a long and successful relationship with the Auto Mall for almost forty years. During that time the Auto Mall has become a regional destination in purchasing and/or leasing vehicles. As a result of the successful business environment for the Auto Mall, it has been a high performing Sales Tax generator for the City. C. During the past five years, the Auto Mall has undergone extensive renovation of its facilities, which include modernization of the various components of the existing dealers for consumers as well as expansion of its inventory base. Also it has attracted new franchises / dealers to the Auto Mall expanding their vehicle selection. This recent investment has allowed the Auto Mall to remain competitive with other nearby dealers and has provided for future increase in the amount of vehicles to be sold/leased resulting in both higher revenue and greater sales tax for the City. D. In order to continue leveraging the investment of its dealers, the Auto Mall approached the City to assist with the purchase and installation of a new double face digital illuminated pylon sign at the Santa Ana Auto Mall ("Sign"). The Sign will have a total height of 75 feet and a maximum signable area of 1,200 square feet. The Sign will contain up -to date LED technology and disclose the various dealers in business at the Auto Mall along with the various incentives for prospective buyers. A true and correct copy of Auto Mall's initial request letter to the City is attached hereto as Exhibit A and incorporated herein by reference. E. The Sign will be utilized as the primary advertising medium for the Auto Mall, reaching approximately 250,000 vehicles a day traversing on the 55 freeway. The Sign will help provide an enhanced method of business identification and advertising and will contribute to the community and the City by advertising the Auto Mall regionally. The Auto Mall recognizes that the current sign is obsolete in nature and the new Sign will help ensure that the Auto Mall remains competitive to other automobile centers in the area. F. Electric Media, Inc. ("EMI") is the vendor designated by the Auto Mall to demolish the existing sign, and install the new Sign. The City's sole responsibility as part of this Agreement is to furnish payment to EMI on behalf of the Auto Mall. Subsequently, the Auto Mall will be responsible for the operation, maintenance and liability of the Sign. The total Sign costs will be $1,032,948.00. A true and correct copy of EMI's purchase order is attached herewith as Exhibit B and incorporated herein by reference. Exhibit C 75A-21 G. The Auto Mall will be responsible for repaying the Loan Amount to the City over 10 years. Each year the Auto Mall will receive credit for 50% of the new sales tax revenue generated to the City over the base year (calendar year 2016), which will be applied as a yearly repayment of the Loan Amount. At the end of 10 years of Loan Repayments, the remaining Loan Amount, if any, will be due and payable by the Auto Mall to the City. H. Additionally, the Auto Mail has agreed to provide the City access to space on the Sign for the purpose of marketing City sponsored events (e.g. Council or Commission or Special events). The programming would assist in increasing notification efforts of the public for City business and recreational events. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: DEFINED TERMS, The following terms when used in this Agreement shall have the meanings set forth below: "Base Year" shall mean January 1, 2016, through December 31, 2016. "Commencement Date" shall mean the date on which EMI completes the Sign installation, as set forth in a written notice from Auto Mall to the City. The parties anticipate that such work will take approximately 90-120 days to complete. "Contract Year" shall mean the period from January 1 to December 31 during each year of the Operating Period. For the purposes of this Agreement, the first Contract Year ends on December 31, 2018. "Covered Parties" shall mean the City and its elected and appointed boards, members, officials, officers, agents, representatives, employees and volunteers. "Effective Date" shall mean the date first written on page 1 of this Agreement. "Loan Amount" shall mean the amount paid by the City to EMI, on behalf of the Auto Mall, for the delivery and installation of a new 75 -foot tall double face digital illuminated pylon Sign at the Santa Ana Auto Mall, which shall not exceed $1,032,948.00, pursuant to the terms of the EMI purchase order attached hereto as Exhibit B, plus an interest rate of 0.92%, which is the California Local Agency Investment Fund ("LAIF") rate of return as of June 30, 2017. The interest rate (0.92%) will be applied to the remaining loan balance after the annual repayment on an annual basis. "Loan Repayment" shall mean the amounts to be credited by the City to the Auto Mall for repayment of the Loan Amount. The credit shall be calculated as 50% of the new sales tax revenue generated to the City by the Auto Mall over the base year. The base year shall be calendar year 2016, in which the City received $2,483,889.00 in sales tax revenue from the Auto Mall. The credits shall continue for 10 years from calendar year 2018 through calendar year 2027. At the end of the 10 years, the Auto Mall shall be responsible for payment of any remaining Loan Amount and accrued interest, if any, to the City. "Operating Period" shall mean the period commencing as of the Commencement Date, and continuing until and expiring after ten (10) years. 75A-22 "Required Operations" shall collectively refer to the following on and with respect to Auto Mall dealerships conducting automotive retail sales and service operations in the City: (i) Auto Mall shall have dealerships as its members which own or lease facilities in the City to allow the automotive retail sales and service operations to be conducted; and (ii) Auto Mall shall have dealerships as its members which operate automotive retail sales and service operations within the corporate boundaries of the City. "Sates Tax(es)" means that portion of taxes that is allocated, paid to, and actually received by City from the imposition of the Bradley -Burns Uniform Sales and Use Tax law (commencing with Section 7200 of the California Revenue and Taxation Code), or any successor law thereto, arising from all taxable sales transactions, occurring from Required Operations conducted by Auto Mall dealerships within the City during the Operating Period. "Sales Tax" shall not include sales tax revenues that are provided to a city based upon a special election and are limited to be used for a specified governmental function or functions. "Sales Tax Reports" shall include, for each Contract Year: (t) a statement identifying the amount of Sales Tax paid by Auto Mall dealerships from Required Operations within the City during the Contract Year; and, (ii) copies of all statements and reports filed with the State Board of Equalization. SALES TAX LOAN. 2.1 Loan Amount. On behalf of the Auto Mall, the City shall make payment to EMI in an amount not to exceed $1,032,948.00 ("Loan Amount") for the delivery and installation of a new 75 -foot tall double face digital illuminated pylon Sign at the Santa Ana Auto Mall, including the demolition and removal of the old sign, pursuant to the terms of the EMI purchase order attached hereto as Exhibit B. The City shall not be responsible for any other payments, expenses, or change orders beyond the Loan Amount. 2.1.1 Interest Rate. The Loan Amount shall include an Interest rate of 0.92°/x, which is the California Local Agency Investment Fund ("LAIF') rate of return as of June 30, 2017. 2.2 Repayment of Loan Amount to City. 2.2.1 Calculation of Auto Mall Consideration. The Auto Mall will be responsible for repaying the Loan Amount, including interest, to the City. Each Contract Year the Auto Mall will receive Loan Repayment credit for 50% of the new sales tax revenue generated to the City over the base year, which will be applied as a yearly repayment of the Loan Amount. The base year shall be calendar year 2016, in which the City received two -million, four -hundred and eighty-three thousand, and eight -hundred and eighty-nine dollars ($2,483,889.00) in sales tax revenue from the Auto Mall. At the end of 10 Contract Years of repayments, commencing with calendar year 2018 and continuing through calendar year 2027, the remaining Loan Amount not covered by the Loan Repayments, if any, will be due and payable by the Auto Mall to the City. 2.2.1.1 Subject to Paragraph 2.1.1.2 below, for Required Operations conducted by Auto Mall dealerships in the Operating Period, the Auto Mall shall receive Loan Repayment credit toward the Loan Amount based on the actual net amount of Sales Tax directly received by the City from the State Board of Equalization during that Contract Year. Subject to the terms of Section 2.1.2, the Loan Repayments for each Contract Year shall be 75A-23 applied to Loan Amount in a single calculation within ninety (90) days following the end of that Contract Year. 2.2.1.2 Loan Repayments shall be applied to the Loan Amount from any source of funds legally available to City. in this regard, it is understood and agreed that the Sales Tax from the Auto Mall's Required Operations in the City is being used merely as a measure of the amount of Loan Repayments that are periodically applied by the City to the Loan Amount, and that City does not and legally cannot pledge any portion of that Sales Tax to Auto Mall. 2.2.1.3 Once the City receives the sales tax from the Auto Mall, the entire amount of the sales tax revenue will remain with the City. No sales tax will be paid or credited back to the Auto Mall from the City as part of this Agreement. 2.2.1.4 City shall analyze the Loan Repayments after five (5) years, in November of 2022, and return to the City Council to provide an update on the sufficiency of the Loan Repayments and the remainder of the Loan Amount. 2.2.2 Repayment Procedure. 2.2.2.1 After the end of each Contract Year, and no later than one hundred and twenty (120) days after the Auto Mall dealerships' payment of the Sales Tax to the State Board of Equalization for that Contract Year, Auto Mall shall submit to City the Sales Tax Reports for the preceding Contract Year and a written request for application of the Loan Repayment amount for said Calendar Year to the Loan Amount. Any delay shall not constitute either a breach of this Agreement or a waiver of Auto Mall's right to receive Loan Repayment credit under this Agreement, but may result in a delay in the City's application of the Loan Repayment to the extent that such delay by Auto Mall causes the City to be unable to meet its obligations in a timely manner. 2.2.2.2 Calculation of the Loan Repayment amount determined by City to be credited to Auto Mall for each Contract Year shall be made by City within ninety (90) days after the later of the following: (i) Auto Mall's submission of its completed Loan Repayment request; and (ii) City's verification, based upon corroborating information provided to City by either the State Board of Equalization and/or a sales tax consultant retained by City, that City has received the Sales Tax attributable to sales from all Required Operations within the City for the applicable Contract Year. Any disapproval by City of an Auto Mall Loan Repayment request shall state in writing the reasons for disapproval and shall be provided to Auto Mall within fifteen (15) days after City has received information necessary to make the determination that the Loan Repayment request cannot be approved. City agrees to expeditiously process Auto Mall's requests for Loan Repayment. Auto Mall expressly understands that nothing contained in this Agreement shall obligate or otherwise commit City to apply the Loan Repayment for a Contract Year unless and until City receives reasonably satisfactory verification that City has received the Sales Tax attributable to sales from the Required Operations in the City for that Contract Year. 2.2.2.3 In the event that the State Board of Equalization conducts a review or audit of Auto Mall's Required Operations or Sales Tax payments during the Operating Period that results in an actual and final loss or reduction of monies that City has already applied to the Loan Repayment for one or more Contract Years, or in the event that Auto Mall amends any sales tax returns that causes a reduction in the Sales Tax due to the City for one or more Contract Years, the City shall recalculate the Loan Repayment accordingly. In the event that the State Board of Equalization conducts a review or audit of Auto Mall's Required Operations or 4 75A-24 Sales Tax payments during the Operating Period that results in an increase of Sales Tax that Auto Mall must pay for one or more Contract Years, or in the event that Auto Mall amends any sales tax returns that causes an increase in the Sales Tax due for one of more Contract Years, Auto Mall shall inform the City and the City shall commensurately increase the Loan Repayment credited to Auto Mall. The provisions of this paragraph shall survive the termination of this Agreement. 2.2.2.4 The parties acknowledge that certain payments of Sales Tax received by City may be based on estimates and that such amounts will be periodically reduced or increased by the State Board of Equalization to reflect the actual amount of Sales Tax owed to City. The Loan Repayments shall be adjusted accordingly as necessary to conform to such reconciliations. The adjustment shall be made within sixty (60) days through any necessary recalculation. Within thirty (30) days of a written request by Auto Mall, the City shall provide Auto Mall with documentation to substantiate the adjustment of the Loan Repayment(s). 2.2.2.5 Within ninety (90) days following the end of each Contract Year, the City may conduct an accounting of all of Auto Mall's Sales Tax Reports and Sales Tax payments during the immediately preceding Contract Year, and the amount of the Loan Repayments applied to Auto Mall during that immediately preceding calendar year. However, the City may also conduct such an accounting at any time by giving thirty (30) days written notice in the event that facts or circumstances arise, such as change in operations, change of ownership or business entity status, which can impact the method or amount of Auto Mall's Sales Tax Reporting or Payments. The City shall provide Auto Mall a copy of that accounting and reconciliation upon its completion. In the event that the accounting and reconciliation identifies a disparity between the Required Operations, Auto Mall's Sales Tax payments, or Loan Repayments during that immediately preceding calendar year, appropriate adjustments shall be made within sixty (60) days. 2.2.3 No Acceleration. It is acknowledged by the parties that any Loan Repayments by City provided for in this Agreement may only be applied for those periods in which City receives the performance of Auto Mall pursuant to this Agreement. Therefore, the failure of City to apply any Loan Repayments or the failure by City to perform any of its other obligations hereunder shall not cause the acceleration of any anticipated future Loan Repayments by City. 2.3 Conditions Precedent to City's Obligations. City's obligation to perform hereunder, including without limitation its obligation to apply the Loan Repayment pursuant to Section 2.1 of this Agreement, shall be contingent and conditional upon Auto Mall's full and satisfactory performance of its obligations set forth in this Agreement. Notwithstanding the foregoing, any delay by Auto Mall in sending reports or other information to the City, or the existence of inadvertent errors in reports or information sent by Auto Mall to the City, shall not constitute either a breach of this Agreement or a waiver of Auto Mall's right to receive credit for the Loan Repayments under this Agreement. However, such delay or error by Auto Mall may result in a delay in the City's calculation of Loan Repayments to the extent that such delay or error by Auto Mall causes the City to be unable to meet its obligations on a timely basis. 2.4 Disclosure of Payments. Auto Mall agrees that the calculation of Loan Repayments and the amounts thereof do not constitute a violation of Revenue and Taxation Code Section 7056 or any other provision of law pertaining to the disclosure of sales tax information, shall be a matter of public record, may be disclosed to any person, and may be included on the City's warrant register. Auto Mall waives any law that is contrary to any of the agreements in this Section 2.4. 75A-25 2.5 City Facilitation of Site Improvements. The City shall take commercially reasonable steps to expedite the review and processing of building permits, certificates of occupancy and final instruction, and other permits, approvals and entitlements needed by Auto Mall in connection with the installation of the Sign. AUTO MALL OBLIGATIONS. 3.1 Operating Agreement Continuous Operation. The Auto Mall hereby covenants and agrees to continuously conduct or cause to be conducted Required Operations within the City during the entire Operating Period. Such continuous operations shall be subject to the force majeure provisions of Section 5.11 hereof. Notwithstanding any provision of this Agreement to the contrary, nothing contained herein shall restrict or prevent any member of the Auto Mall from closing or relocating its dealership or transferring or selling its dealership property or business. Further, provided, that any such closing, relocation, transfer or sale shall not constitute an event of default under this Agreement provided that at least one automotive dealership that is a member of the Auto Mall continues to perform the Required Operations. 3.2 Maximization of Sales Tax. At all times during the Operating Period, the Auto Mall shall designate its dealerships and sales offices in the City as the point of sale for sales and use tax purposes in all automotive retail sales and service operations that originate from within the City. 3.3 Payment of Taxes. The Auto Mall dealers shall pay or cause to be paid any and all taxes applicable to or arising out of the lease, operation and/or use of its dealerships and sales offices in the City, including, without limitation, all taxes attributable to sales occurring at such offices, except that the Auto Mall dealers retain the right to protest and contest County of Orange decisions related to the value of its interest in any property or leasehold. The Auto Mall dealers shall make or cause to be made timely sales and use tax payments to the State Board of Equalization, except that the Auto Mall dealers retain the right to protest and contest State Board of Equalization assessments or decisions that it believes to be erroneous. 3.4 Compliance with Laws. Subject to the Auto Mall dealers' right to contest same, the Auto Mall dealers shall conduct or cause to be conducted all activities within the City and shall perform its obligations under this Agreement in conformity with all applicable federal, state, and local laws, ordinances, and regulations. Nothing in this Agreement is a representation or warranty by City that any construction work performed by EMI within the City on or after the date of this Agreement is not a public work as defined in Labor Code Sections 1720, et seq., including but not limited to Sections 1771 and 1781. 3.5 Title and Ownership of Sion. The Auto Mall shall own and take full responsibility for the operation and maintenance of the Sign. City acknowledges and agrees that title to the Sign shall be vested exclusively in the Auto Mall immediately upon City's payment to EMI in the amount set forth in Recital F. Upon City's payment to EMI, City will cooperate with Auto Mall regarding any documents that may be reasonably necessary in order to vest title to the Sign with the Auto Mall. 3.6 City Time on Sign. The Auto Mall shall provide the City access to digital space on the Sign for the purpose of marketing City sponsored events (e.g. Council or Commission or Special events). The Auto Mall shall dedicate 10% of its advertising time on the Sign (e.g. six minutes per hour) to City sponsored events provided by the City. The provisions of this paragraph shall survive the termination of this Agreement. 75A-26 4. TERM. 4.1 This Agreement shall commence on the Commencement Date and terminate on March 31, 2028, unless terminated earlier in accordance with Section 5, below. The Term of this Agreement may be extended for the purpose of completing final calculations only, if necessary, upon a writing approved and executed by the City Manager, City Attorney, and the representative for the Auto Mall. 5. TERMINATION RIGHTS. 5.1 City Termination Rights. Subject to the force majeure provisions of Section 6.12 below, Cityshall have the right to terminate this Agreement if, following the Commencement Date, Required Operations are not conducted within the City by at least one dealership who is a member of the Auto Mall for a period of ninety (90) consecutive days. If the City terminates the Agreement pursuant to this Section 5. 1, any remaining balance of the Loan Amount and accrued interest shall be immediately due and payable from the Auto Mall to the City. 5.2 Auto Mall Termination Rights. Auto Mall may terminate this Agreement for any reason, or no reason, upon one hundred and eighty (180) days written notice to the City, at which point, any remaining balance of the Loan Amount and accrued interest shall be immediately due and payable from the Auto Mall to the City. 5.3 Mutual Termination Rights. City makes no representation or warranty to Auto Mall as to the legality of the Loan Repayments or the City's authority to make such Loan Repayments. In the event that a final, non -appealable judgment or decree is rendered against City invalidating its Loan Repayment obligations set forth in this Agreement, either City or Auto Mall may terminate this Agreement by delivery of written notice of termination to the other party, and any remaining balance of the Loan Amount and accrued interest shall be immediately due and payable from the Auto Mall to the City. 6. GENERAL PROVISIONS. 6.1 Incorporation of Recitals. The recitals to this Agreement are deemed by the parties to be true and correct and are hereby incorporated into the Agreement by this reference. 6.2 Entire Agreement. and Amendments. This Agreement incorporates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to the subject matter hereof. Any amendment or modification to this Agreement must be in writing and executed by Auto Mall and City. 6.3 Limitations on City's Liability. Auto Mall and City acknowledge and agree that: 6.3.1 The relationship between Auto Mall and City pursuant to this Agreement is and shall remain solely that of contracting parties, and City and Auto Mall neither undertakes nor assumes any responsibility pursuant to this Agreement to review, inspect, supervise, approve, or Inform the other party of any matter in connection with this Agreement or the Required Operations, except as required by the terms of this Agreement; 6.3.2 City shall not be directly or indirectly liable or responsible for any loss or injury of any kind to any person or property, except to the extent proximately caused by 75A-27 City's active negligence or intentional misconduct, resulting or in any way arising from: (a) any defect in any building, grading, landscaping, or other onsite or offsite improvement; (b) any act or omission of Auto Mall or any of Auto Mall's agents, employees, independent contractors, licensees, sub lessees or invitees; or (c) any accident at the Auto Mall facility, or any fire or other casualty or hazard thereon; and 6.3.3 By accepting or approving anything required to be performed or given to City under this Agreement, City shall not be deemed to have warranted or represented the sufficiency or legal effect of the same, and no such acceptance or approval shall constitute a warranty or representation by City to anyone. 6.4 Interpretation: Governing Law; Venue. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California, without regard to conflict of law principles. All legal actions must be instituted and maintained in the Superior Court of the County of Orange, State of California, or in any other appropriate court in that County. 6.5 Severability. If any term, provision, agreement, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. 6.6 Binding Effect Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. 6.7 Notices. All notices and other communication required under this Agreement shall be in writing and shall be delivered by either: (i) personal delivery, (ii) reliable courier service that provides a receipt showing date and time of delivery, (iii) registered or certified U.S. Mail, postage prepaid, return receipt requested, or (iv) facsimile. Notices shall be addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designate by written notice to the other party hereto: To City: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: City Manager Facsimile: (714) 647-6954 To Auto Mall: Santa Ana Auto Mall Dealers Association, LLC c/o Premier Property Management 25108 Marguerite Parkway #A-262 Mission Viejo, CA 92692 Email: emilybenedick@gmail.com Each notice shall be deemed delivered on the date delivered if by personal delivery or by overnight courier service, on the date of receipt as disclosed on the return receipt if by mail, or on the date of transmission with confirmed successful transmission and receipt if by facsimile. By giving to the other party written notice as provided above, the parties to this Agreement shall have 75A-28 the right from time to time, and at any time during the term of this Agreement, to change their respective addresses or contact persons. 6.8 Representations and Warranties. As a material inducement to City's entry into this Agreement, Auto Mall represents and warrants to City that (i) Auto Mall has the full power and authority to enter into and perform under this Agreement; and (ii) all authorizations and approvals required to make this Agreement binding upon Auto Mall have been duly obtained. As a material inducement to Auto Mall's entry into this Agreement, City represents and warrants to Auto Mall that, subject to and limited by the provisions of Section 5.2: (i) City has the full power and authority to enter into and perform under this Agreement; and, (ii) all authorizations and approvals required to make this Agreement binding upon City have been duly obtained. 6.9 Litigation Expenses. If either of the parties institutes any legal action against the other in connection with any controversy related to, concerning or arising out of this Agreement, or any facts based upon or involving this Agreement, then the prevailing party, whether in court, through mediation, arbitration or by way of out-of-court settlement, shall be entitled to recover from the non -prevailing party such prevailing party's reasonable attorneys' fees, court costs, expert witness fees and other expenses relating to such controversy, including such fees, costs and expenses on appeal, if any; and the arbitrator(s), if any, is hereby authorized to make such an award to the prevailing party in arbitration. 6.10 Termination. In the event this Agreement terminates, no termination shall release any party in default and this Agreement shall survive for purposes of allowing a party to enforce its rights and remedies under this Agreement in the event of a default. All indemnification provisions and any other provision that by its nature cannot be performed during the term of this Agreement shall survive the termination of this Agreement. 6.11 Defense of Third Party Claims. To the fullest extent permitted by law, Auto Mall shall indemnify, defend and hold harmless the City, its officers, agents, and employees from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs in the event that a third party files litigation challenging the validity or enforceability of this Agreement, or any Loan Repayments. The City and Auto Mall may jointly defend the Agreement and/or Loan Repayments. The Auto Mall's obligation to defend, hold harmless and indemnify is contingent on the City cooperating in the defense of the action throughout the litigation, and entering into a mutually agreeable Joint Defense Agreement, although the Auto Mall will be responsible for any and all costs and fees related to any such defense. 6.12 Force Majeure. The obligations by either party hereunder shall not be deemed in default and times for performance hereunder shall be extended where delays are caused by fire/casualty losses; strikes, riots or war; litigation; unusually severe weather; inability to secure necessary labor, materials or tools because of a shortage in the market; delays of any contractor, subcontractor or supplier; unjustified acts or failure to act by City in the processing or approval of plans or permits or inspection or approvals of improvements; acts of God, or other similar causes without the fault and beyond the reasonable control of the party, despite the party's diligent efforts (collectively, "force majeure"), if written notice is provided to the other party within a reasonable period following commencement of any such circumstances and, provided further; that the extension of time shall be only for the period of the force majeure delay. Adverse market conditions or the inability to obtain financing shall not constitute an event of force majeure. 75A-29 6.13 Counterparts. This Agreement may be executed in two or more counterparts, each of which when so executed and delivered shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument. 10 75A-30 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA MARIA D. HUIZAR Clerk of the Council Raul ManGodager 11 g City Manager APPROVED AS TO FORM: SONIA City AA By: IL Ryan O. RECOMMENDED FOR APPROVAL: FRANCISCO GUTIERREZ Executive Director Finance and Management Services 75A-31 SANTA ANA AUTO MALL DEALERS ASSOCIATION, LLC Jim Speck Volvo of Orange County George Raysik — Secretary and Treasurer PAG Santa Ana B1, LLC d/b/a Crevier BMW George Raysik— Secretary and Treasurer PAG Santa Ana AVW, Inc. d/b/a Audi South Coast George Raysik— Secretary and Treasurer PAG Orange County S1, Inc. d/b/a Subaru Orange Coast 12 Derrick Van Nieulande Freeway Honda George Raysik— Secretary and Treasurer PAG Santa Ana B1, LLC d/b/a Crevier Mini George Raysik— Secretary and Treasurer PAG Santa Ana AVW, Inc. d/b/a Volkswagen South Coast George Raysik— Secretary and Treasurer PAG Orange County L1, Inc, d/b/a Lincoln South Coast 75A-32 EXHIBIT A Santa Ana Auto Mall Dealers Association Initial Request Letter 13 75A-33 SANTA AN, {A AUTO MALL DEALERS ASSOCIATi TON; LLC C!0 Premier Property Management ♦ 25108 Marguerite Parkway #A-2621 Mission Viejo, CA 92692 0: 949.837.2701 D: 714.348.0002 E: emilybenedick@gmail.com August 28, 2017 City Council City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Santa Ana Auto Mall Freeway Sign Upgrade for Increased Revenue Dear Honorable Mayor and City Council Members, The Santa Ana Dealers Association (SADA) is hereby requesting the City's assistance in a Sales Tax Participation Agreement to upgrade the electronic freeway sign that is used as the Auto Center's main advertising medium to reach the 250,000 cars/day that drive on the 55 freeway. It is near Impossible to convey to the public driving by on the freeway, that the Santa Ana Auto Mall encompasses 35+ acres of different Auto Dealerships without an Impactful electronic freeway sign that has up-to-date technology. The assistance needed from the City of Santa Ana for this project Is an upfront funding of $1,032,948 (100% of project cost) In order to capitalize on the 11 %-13% average sales increase for a sign upgrade of this size. This sales increase will result in a sales tax revenue increase of the same proportion to the City; this will allow the City to recoup their costs in 12 years or less. If the total amount of is not recouped by year 12, the SADA will pay the remaining balance to the City. Note: final terms of agreement to be finalized and approved by SADA and the City of Santa Ana. The recoup structure breakdown Is as follows: ➢ Total Remitted Sales Tax 2016 (approx.): $3,000,000 ➢ 12% Increase Estimate on 2018 (approx,): $360,000 ➢ 50% of that Increase Goes To City: $180,000 ➢ Recoup Time: approx. 6 years $1,080,000 SADA agrees to guarantee that any shortage not paid back to the City from Increased sales tax at the end of the term, shall be paid by the Dealers Association. With this mutual investment, the SADA will be able to make their sign a landmark and will be able to capture more of the Orange County market share from other Cities who also have digital Auto Center signs such as: Tustin, Irvine, Anaheim, Huntington Beach, Westminster and Garden Grove. In order to capture the above market share as soon as possible, please support our request and schedule the SADA project for a Planning Commission meeting to vote on approval by the last meeting In September 2017. Regards, Santa Ana Auto Mall Dealers Association EXHIBIT C 75A-34 SANTA ANAAUTO MALL DEALERS ASSOCIATION LLC C10E:[emierproPertyM�egmnenfi2 Joaftgm petAwayRA282iWS*nM40,CAW92 0:948.N72TOf 0:714.348.M �emryhenedidn�pmimm Crevier BMW (Penske) Penske Lincoln South Coast Penske Audi South Coast Frea X —D m mdn -' Crevier Mlni (Penske) Penske Volkswagen South Coast x.. x _ ce n liwbz—� Volvo of Orange County Jfm Spac4 75A-35 EXHIBIT B Electra -Media, Inc. Purchase Order 14 75A-36 EMI ELECTRA-MEDIA, INC. ustomer E.Oylpmenl Address: Sante Ana Aola Dcalen ASfOC,a:iOP 55 Freeacy 1505 Auto Mall Dave Santo Ana. CA 92705 I/V/e hereby order_ for purchase under the terms and conditions of this agreement, incorperated herein by reference, the following pmducl(s) 20MM RESOLUTION — YESCO SIGN INSTALLATION Product Dwell n: Remove ealire existing 70' Santa Ana Auto 61011 sign Cul existing pipes lull bolaw grade, cap and pave over. Fabricate and iretall new 75' double tow pylon sign, ute ing fooling and steel pip-, wah Mo (2) no.. single face, full color Pdutsvia-V'd LED displays 1304 pixels high by 70; p�xCs .villa - 20MM Resclueom) v ilb metal on nolo of sign lemdng back, top and bottom open lur an open V siructmo'modern' appearance. Encs pixel to be comprised Of premium diodes lied, blue and green) of the highest quality Each pixel to be shaded by a conastonl linear lommy. Display to hoo-e night.iime dimming mpobiihy to 1% of full brightness, still maintaining 100% of the color spectrum. The LED circuit boards and modules to be confameal mated, and enclosed in a sealed. ..roer.11910 enclosure. All electrical components are to be wired into central distribution panel whtds then will connect to existing primory disconnects. YESCO and EMI technicians will Complete all wiring, lum-on and tell display. Also includes lime and temperature, two (2) remote computers In marquee, aotort is dimming circuit, modem and ventilation system Manufacture and install lo (2) new single lace lop ID calinab 5' s 48' 2.5' and install onto steel pipes will, intervally illuminated (.1m while LEDs) black channel letters that and 'Santa Ana A.L. Moil' Includes two (2) I'8' a 48' 2.5' painted silver aluminum decorative bonds Installed below LED cabinets and two 12) 1'6' s 45'10' painted blue aluminum decoralive bonds installed below aluminum decorative bonds. Fabricate and install custom .090 aluminum Pole weer will, lermte finish, includes Yl' s 46'6' radius painted alumina, edge sa-fion and install ever structural steel. See Etdi! yESCO Design #803367-1L Note: All fabrication, installation and permits to be performed by California Licensed Contractor -Young Electric Sign Company- (YESCO), State Contractors License C-45 #250739 and EMI State Contractors License C-45 0815508. EMI Maintenance Centrad: Includes all parts, labor and crane labor for five 151 years for monthly service to change out LED malulm, power supplies, interface cards, line dOxii OVI cards, transformers, fuses, rectifier boards, modem, controllers, S.fl.am, etc., i wah prevantative maintenance calls once per month over and abo+e emergency wa„kend calls. Also inclad,n pads and labor for servicing illuminated rdentilicofon displays, including LEDs, ballasts and transiormom. EMI Programming Contract: Includes ail programming services for live (5) ..is which consists of <fail, updates, ank iled changes, videa gt ie transfer. Int,,mcl downloads, a.mail confirmafons, holiday graphics, and weekly frame rviews- Aho includes our pro tcGva E6Il Ieam periodically r(Mewing sign content to ers.ro that messages Stay up to dale. Doliverv: 90.120 days from dote permits are obbind and down puymenl is receieed Electrical. Phone & Web Cams: Rause existing alearicnl and apgrmfo communications In Ve,aan Conular as included m price Lei—, Valuer solli xs foe of S60/mo. to li billed separately by EMI. Also includes two (2) web comers, one pm face, and monitoring service 124 hours a day, 7 days o wooL, viewed avary hew will amotl notifications upon risers to EMI and Santa Amo Deale,s Association) for one vmr. Add,tlanal mw imring .ill be available so ansiol, fharmher for S 150/ma. ra be paid bt Dealers Assecimr.r. CiN EundIng 8' Pe,'milt, Includes morrdlna6roshsg ng and procCity Funding Agreement grid Co, permit Le: Actual cost of City application fees. inspttlon welding fees, structural eng:neeMg, soil report lees. acquisition Inbar and final building permit fees are to be billed sapomlely. Soil: Does not include installation m mralmil sea cendifions (if applicable). Note: If high -alar tahle c-xin1s, stool casings may be needd Contingency: Agreement contingent upon EMI and Deafsn Association obtaining 100% lunding hon the Cil, of Santa Are tfuough o $ales lux participation cg,cemant with final payment terms and conditions of funding agreement being appro*eri by Santa Arm Auto Mall Deah,m AssvAtion EMI to uss;st in coordinating the Cp funding process and provide sampf. Iunding aq,,,ts encs used recently at other cities Prevailing Wage: Price based on prevailing .age for orrnte labor. Price Eampmant 6 Labor 51.032,948.00 Applicable Tax. Included Total Will, Tax S1,032,9E8 00 Payment Terms i 3.1.316.00 Darn Posmmm Upon Signing 5 344,316.00 Upon Shiprnem of LEDs S 344,31600 Upan Completion II I WITNESS (`:HEREOF, Owner and FMi have nsadd flys agreuumm flys I_' day of Septomber. 2017 Qmu": Sona Ara Auto Deolen Associrtien 1505 Auto bioll Drive 5 mea Ana, CA 92705 gy.. .. - ooh lira pets. Elocu. Mndfa, Inc 4'371.'.' 156' Snit La.odale.'CA 90260 fig ./�-, - - . �R ,Wilson Dale 0101 l FIF EXHIBIT D 75A-37 75A-38 SANTA ANA AUTO MALL DEALERS ASSOCIATION ION LLC CIO Premier Properly Management ♦ 25108 Marguerite Parkway #A-262 ♦ Mission Viejo, CA 92692 0: 949.837.2701 D: 714.348.0002 E: emJybenedlck@gmail.com August 28, 2017 City Council City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Santa Ana Auto Mall Freeway Sign Upgrade for Increased Revenue Dear Honorable Mayor and City Council Members, The Santa Ana Dealers Association (SADA) is hereby requesting the City's assistance in a Sales Tax Participation Agreement to upgrade the electronic freeway sign that is used as the Auto Center's main advertising medium to reach the 250,000 cars/day that drive on the 55 freeway. It is near impossible to convey to the public driving by on the freeway, that the Santa Ana Auto Mall encompasses 35+ acres of different Auto Dealerships without an impactful electronic freeway sign that has up-to-date technology. The assistance needed from the City of Santa Ana for this project is an upfront funding of $1,032,948 (100% of project cost) in order to capitalize on the 11%-13% average sales increase for a sign upgrade of this size. This sales Increase will result in a sales tax revenue increase of the same proportion to the City; this will allow the City to recoup their costs in 12 years or less. If the total amount of is not recouped by year 12, the SADA will pay the remaining balance to the City. Note: final terms of agreement to be finalized and approved by SADA and the City of Santa Ana. The recoup structure breakdown is as follows: ➢ Total Remitted Sales Tax 2016 (approx.): $3,000,000 ➢ 12% Increase Estimate on 2018 (approx.): $360,000 ➢ 50% of that Increase Goes To City: $180,000 ➢ Recoup Time: approx. 6 years $1,080,000 SADA agrees to guarantee that any shortage not paid back to the City from increased sales tax at the end of the term, shall be paid by the Dealers Association. With this mutual Investment, the SADA will be able to make their sign a landmark and will be able to capture more of the Orange County market share from other Cities who also have digital Auto Center signs such as: Tustin, Irvine, Anaheim, Huntington Beach, Westminster and Garden Grove. In order to capture the above market share as soon as possible, please support our request and schedule the SADA project for a Planning Commission meeting to vote on approval by the last meeting in September 2017. Regards, Santa Ana Auto Mall Dealers Association EXHIBIT 75A-39 SANTA ANA AUTO MALL DEALERS ASSOCIATION LLC CFOPremier MP6dYM2ne9"nt♦26108Mer6aeftPmk*q#A-282#WIOWO,CA 62662 0:81flW2101 0,14.3aWIQ E:emYwmdd4NmWLccm Crevier BMW (Penske) Penske Lincoln South Coast X-, x._! Crevier Mini (Penske) Penske Volkswagen South Coast K iQ _ x Volvo of Orange County 75A-40 EMI ELECTRA-MEDIA, INC. customer E,qupment Addrau: San,. Ana Auto Dsaien Assoc,onoo 55 Freeway 1505 Auto Mali Duvc Sam. Ann. CA 92705 1/We hereby order for purchase under the terms and conditions of this agreement, incorporated herein by reference, she lollowmg pmduct(s) 20MM RESOLUTION — YESCO SIGN INSTALLATION Product Description: Re.ve entire existing 70' Santa Ano Auto Mall sign. Cut evsnng apes just below grade. cap and pave over FnOricare and .nstn1l ne. 75double face pylon sign, ncludng louring and steel papa, .cath two (2) n,, sAg1A face, full tato. PAs nwmw V'd LED displays 1304 piu s, high by 704 pueu w¢ie 20MM Resolution) with metal on nose of sign having back, top and banom open lar an open V gructvwo'mori oppenrance Each pixel to be Comprised n) internam diodes (red, blue and green) of the highest yutilit, Each pival 1. be shaded by a convslenl linear louver Display to hose nighl4.me dimming capability ro 1% of lull brightness, 61.11 maintaining 100% of the color spKeum The LED ci cult bounds and modules to be mnlormol cooled, and enclosed m a sealed. .aeotight enclosure. All electrical components are In be carred into central dis:nhutan pane! which then will connect to unsung pfimary dlsconnerls. YESCO one EMI technicians will complete all wiring, lum.an and !eel display Also mcladea time and !emperatuee, two (2) romoto computers In marquee, m,omnac dimming circui!, modem and +entWiAn ryste-o Manu&tdure and ins,.11 two (21 ne» single face or, ID cabinets 3'5' s 48' 2.5' and lash11 area steel pipes with ,memclly d o rnn. ed (with while LEDs) bloat channel letters the, reed 'Sorb Ana Arlo MAID Includes two (2) 1'8' a 48' 2.5' pmmed silver afomirwm decomlae brads metalled below, LED cabinets and two (2) 1'6' 1 45'T0' palmed blue aluminum decorative bonds installed below aluminum decorative bands. fabocma and Asia)) cusmm ,090 clummum pole cover, wah to,,we lunch, includes 2'l ' s 46'6' radius pointed aluminum edge section and install over etruearol steel. See Eh111 yESCO Design >803367-11 NNote: All fabrication, Installation and permits to be performed by California Lkensod Contractor "Young Electric Sign Company" (YESCO), State Contraction Liconse C-45 0250739 and EMI State Contractors License C-05 0!815508. EMI Maintenance Contract: Includes all porn, labor and crane labor for live (5) yeen lot montFlr service to change out LED modules, pawer sumttom, interface curds, line drivws, DVI cards, tmnsformen, fuses, rectifier boards. modem, cooudlen. sohwe,e, etc., along wish preventative maintenance calls onto incl month over and bawe emergency wrekend calls. Also includm pans and labor lar servicing itlummmed .dani,f<ofon displms, mdudmg LEDs, ballasts and twnsformess. EMI Psoarammfna Contract: Includes all programming services fon live (5) yeah which consists of daily updates. unli.,I d changes, v,da4 graphic tansies, bdemel downloods, ..mail confirmations, holiday graphics. and weekly frorne rwtews. ;deo mclu&S our puma,+e EMI Team prmoda(1lly ra+aw.ag sign come t to ensom thot messages stay ep to date. Delhie : 90 .120 dory hom dote pennns esu obtained and auwn p.ymem a rsxasvud Electrical, Phone & Web Cams: Red" esisting alacvicol and upgrade cinntmgnma.an, to Venice, C.Vula, as mdudad .n price below Veracn servo- Ire of W/mo to be billed separately by EMI. Also includes n.o 12) web cameras. one pct loce, and monaoring serrata 124 hours o day. ? days a work. wowed esery hour yob emoil nouFcarusns upon eaors Io EMI and Sent. Ann Dealws Assocnriarl in, one year Add. crl.t mn t dog will be Available s.paolcl, thedoffle, for $15D/mo. As be paid by Dealers Astaci.6on tlN Fuadi"a 8 Per min:. Includes coordinating and processing Cil, Fumifig Ag,eemnm and City perm, Nota. Actual call of City appl,cc non Ices, msec +ion +cos, welding Ices, sounswal anginearing, soil ropon leen, acit,00o, lobar and final building pernm leas arc to it billed sapamlelr Soil: Dees nal indudv. muaholiam in abnormal sal conditions (if oppl,wble.). Note: 11 high wore, sable ausb, st_ei casings may be needed Cont naon<v: Agreement contingent upon EMI and Dealer, Association obtaining 100% landing from the City of Santa Ana through 0 soles In. purocryohn, agreomont with final payment toms and condilions al Funding ag,eemenl beteg approved by Santo Ann Asda Mull D:atea Aasa'iolion EMI to assssl in coordinating the City funding process and provide sample funding agnsemena Ano recentf, at other ones Prevailing Wage: Price based on prevailing wage for on-site labor Price E.mpm,tm 6 Laba- Applicable Tac S 1.032 948 00 Included Payment Terns S 344,51600 Dean Pnymn•nl Upon Stu n.,.g S 344.31600 Upon Shipment of LEDs Total Wilk Tor $1,032,948 00 S 344,316 00 Upon Camhlan.a ,N WITNESS s%HEREOF. Gane, nod EMI have nuocuid this agreemnm this Ila day of September. 2017 Gw_nc,' Sento Ana Auto Dealers Association 1505 Auto Mel Dnvp FAAO. CA 927058 Duro Elea,n Meda, in, 4737 'n, 156' Snord Lawndde. CA 90260 _ /i 9- /y 8r jgff l /i Orae OI O) t1 EXHIBIT E 75A-41 75A-42 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING —ZONING ORDINANCE AMENDMENT NO. 2017-01 TO AMEND CERTAIN SECTIONS OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE — CITY OF SANTA ANA, APPLICANT (STRATEGIC PLAN NO. 3,2) LCty MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1u Reading ❑ Ordinance on ed Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt an ordinance approving Zoning Ordinance Amendment No. 2017-01. PLANNING COMMISSION ACTION At its regular meeting on October 9, 2017, the Planning Commission by a vote of 6:0 (Alderete absent) recommended that the City Council adopt an ordinance approving Zoning Ordinance Amendment No. 2017-01 to amend various sections of Chapter 41 of the Santa Ana Municipal Code (SAMC) to allow farmers' markets as temporary outdoor activities with issuance of a land use certificate and allow retail markets to operate between the hours of 12:00 a.m. and 5:00 a.m. in the Commercial South Main (C -SM) zoning district. In addition, staff is proposing to amend Chapter 41, the Harbor Mixed Use Transit Corridor Specific Plan (SP2), Metro East Mixed Use Overlay Zone (MEMU), and Transit Zoning Code — Specific Development No. 84 (SD -84) to allow tattoo and/or body art establishments. The Planning Commission recommended adoption of the proposed zoning ordinance amendment with no changes to the proposed ordinance found in the attached staff report (Exhibit A). Staff is proposing to amend several sections of Chapter 41 of the SAMC to clarify and revise certain standards, comply with changes in state laws, and respond to current economic trends. The following provides a brief summary of the recommended solutions to the three key areas of concerns identified by the Planning Division Staff and the public: 1. Farmers' Markets -Section 41-195.5 (h) The proposed ordinance will allow farmers' markets in the various zones subject to the approval of a land use certificate, similar to other temporary outdoor activities listed in Section 41-195 of the SAMC. This amendment is intended to support the public health movement of the City by 75B-1 Zoning Ordinance Amendment No. 2017-01 — Update Various Sections of Chapter 41 of the SAMC November 7, 2017 Page 2 allowing additional opportunities to purchase organic and similarly healthy foods. Outdoor swap meets are not allowed under this provision. 2. Retail Markets open between the hours of 12:00 a.m. and 5:00 a.m. - Section 41-522 The proposed amendment will allow retail markets having less than 20,000 square feet of floor area which are open at any time between the hours of 12:00 midnight and 5:00 a.m. subject to the approval of a conditional use permit in the C -SM zone. This modification is a business friendly amendment that will provide additional business opportunities and enhance the retail activities along this corridor as well as making the C -SM zone consistent with the C1, C2, C4 and C5 zones, which allow after hours operations with a CUP. 3. Tattoo and/or Body Art Establishments Sections 41-159, 41-159.5, 41-195.5, 41-199.3, 41- 365, 41-365.5, and 41-489.5 of SAMC, Table 3-2 of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), Table 3 of the Metro East Mixed Use Overlay Zone (MEMU), and Table 2A of the Transit Zoning Code — Specific Development No. 84 (SD -84) Tattoo and/or body art establishments will be allowed by right in the zoning districts identified in Table 1 below subject to development and operational standards noted in Table 2. Various courts have ruled that tattoos, tattooing, and the business of tattooing are considered a form of artistic expression and therefore protected under the First Amendment. These rulings made it illegal for any jurisdiction in California to prohibit tattoo establishments and determined that municipalities should ensure that there are sufficient locations in which tattoo establishments may operate. The proposed amendment will bring the City's tattoo regulations into compliance with laws regarding freedom of expression and will allow new tattoo businesses to open in specific commercial areas by right. Table 1: Tattoo and/or Body Art Establishment Allowed Zoning Districts FZonin Document FZonin Disfricts , Chapter 41 —Zoning Community General Commercial Planned Shopping district shall be located within 500 feet of a public or private school (K-12) Commercial C-1 C-2 Center C-4 Harbor Mixed Use Transit Corridor Transit Node (South and North) Corridor Specific Plan SP -2 Metro East Mixed Use Overlay Zone Village Center District Active Urban District MEMU Transit Zoning Code — Specific Transit Village Downtown (DT) Urban Center Corridor (CDR) Development No. 84 SD -84 TV UC FSu6 ect [Standa[d in Location and Placement No tattoo and/or body establishment in the C-1, C-2, and C-4 zoning district shall be located within 500 feet of a public or private school (K-12) or public park as measured from the outermost boundary of the property to 75B-2 Zoning Ordinance Amendment No. 2017-01 – Update Various Sections of Chapter 41 of the SAMC November 7, 2017 Page 3 [Sutl-eCt -:: [Standard.... the entrance of the facility. This restriction is based at the time of issuance of a business license and such future school or public park that may be located within this 500 -foot zone will not cause the relocation of that tattoo and/or body art establishment. No tattoo and/or body art establishment in the C-1, C-2, and C-4 zoning districts shall be located within 500 feet of another tattoo and/or body art establishment. Hours of Operation No tattoo and/or body art establishment shall operate between the hours of 12:00 a.m. and 7:00 a.m., unless a Conditional Use Permit is approved. Signage Signage, advertising, or images depicting specific anatomical parts shall not be placed on the windows or be visible to persons outside the facility. A sign shall be posted on the door or in view of the entrance of the facility stating that no person under the age of 18 is allowed on site, unless accompanied by their parent or legal guardian. Temporary Establishments or Events This section does not authorize temporary establishments or events. Temporary establishments or events are subject to approval of a Land Use Certificate by the Planning Manager. Additional Standards Live animals, except service animals, shall not be allowed on the remises. The facility shall be designed to screen tattooing and/or body modifications or similar services performed on a patron from persons outside the facilit The applicant/operator of the tattoo and/or body art establishment shall comply with all applicable state and local laws as they may be amended from time to time, including Health and Safety Code Sections 119300 et seq. (California Safe Body Art Act), Penal Code Sections 653 and 655 and Chapter 18 of the SAMC. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Objective #2 (create new opportunities for business/job growth development through new General Plan and Zoning Ordinance policies). FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP—� Acting Executive Director Planning & Building Agency AN:rb S:RFCA120M11-07-2017\ZOA17-01 Code Amendment REV Exhibit: A. Planning Commission Staff Report B. Ordinance 75B-3 Economic Development, and encourage private 75B-4 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: .00TOBER 9, 2017 TITLE: PUBLIC HEARING — FILED BY THE CITY OF SANTA ANA FOR ZONING ORDINANCE AMENDMENT NO. 2017-01 TO AMEND CERTAIN SECTIONS OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE.(STRATEGIC PEAN NO.3; 2). -Prepared by Ann Hsin-An Ni Acting Executive Di ector RECOMMENDEII ACTION PLANNING COMMISSION SECRETARY APPROVED D As Recommended 'D As Amended D. Set Pubtic Hearing For DENIED D Apoicant's Request CI Staff 'Recommendation CONTINUED TO U4 Actir Plann ,g, Manager Recommend that the City Council adopt: an'ordinance`approying Zoning Ordinance Arimendmeht. No. 2017-01 to revise certain sections of Chapter 41 (Zoning) of the .Santa Ana Municipal Code (SAMC). Executive Summary Earlier this year, staff began work on a series of zoning code -revisions intended to streamline the development process and update outdated.code provisions. The first series, of.improvements were, approved by the Council in September' 2017. This second set of improvements to the Zoning Code is aimed, at addressing outdated sections of the code: Staff is proposing to. amend sections of Chapter 41 of the SAMC to allow certified farmers'. markets as.temporary outdoor activities with issuance of a land use certificate and allow retail markets to operate between.the hours of 12:00 a.m. and 5:00 a.m. in the Commercial 'South Main (C -SM) zoning district. In addition, staff is proposin,"g to amend Chapter 41, the Harbor: Mixed Use Transit Corridor Specific Plan (SP2), Metm East, Mixed Use Overlay Zone (MEMU), and Transit Zoning Code — Specific Development No,, 84 (SD-84)'to allow tattoo and/or body art establishments. Proiect Background Staff is proposing the following amendments in order to address outdated code sections, respond to current'economic and social trends, and to comply with"recent court cases. Currently, farmers' .markets are not allowed in any zone, with temporary stands for the sale of.agricultural or farming products only allowed in the General Agricultural (Al) zone. The proposed changes will allow certified farmers' markets as temporary outdoor activities in specific commercial zones subject to the' approval of a land use certificate. This will help advance the City's goal of increasing citizen access to healthy foods and becoming a more sustainable city. EXHIBIT A 75B-5 Zoning Ordinance Amendment No. 2017-01 October 9, 2017 Page 2 In addition, staff is proposing to allow retail markets that are less than 20,000 square feet in size and are -Within the South Main Commercial (C-SM)•zoning district the ability to operate between the hours of 12:00 a.m. and 5:00 a.m. subject to the approval of a conditional use permit (CUP). This actio_ n will make theC-SM zone consistent with the C1, C2, C4 and C5_ zoning districts. Lastly, staff is proposing to allow tattoo and/or body ,art establishments' by -right in :certain zoning districts. Currently, tattoo establishments are only allowed in.the Heavy Industrial (M-2) zone with approval of a CUP. in 201{), the United.States Court of Appeals ruled that tattoos, tattooing,_ and the business of tattooing are considered a form of artistic expression and therefore. protected, under the First Amendment. This it decision made illegal for any jurisdiction In California to prohibit 'tattoo establishments. More recently, a{ the beginning of this'year, Court of Appeals also determined that municipalities should ensure that there aresufficient locations in which tattoo, establishments may operate. The proposed tattoo amendments will bring the City's tattoo regulations into compliance with laws regarding freedom'of expression and will allow new tattoo businesses to,open in Santa Ana. Project Analysis Staff is proposing several amendments to Chapter 41 of the SAMC. The amendments identified below are the second of.several amendments that will be made to the Code until the General Plan update is completed -and a comprehensive'Zoning Code update -commences. The following provides a brief summary of the recommended amendments to the three key areas;of,concerns identified ;by the Planning Division staff and.the.public: 1. Farmers" Markets -Section 41-195.5 (h)' The proposed ordinance. will allow certified farmers' markets in the commercial and industrial zones subject to the approval of a land use certificate, similar to other temporary outdoor activities listed In Section 41-195 of the SAMC. Thls.amendment is Intended to support the public health movement of the City. 2. Retail Markets open between the hours of 12:00 a.m. and 5:00 a.m. Section 41-522 The proposed amendment will allow retail markets having less than 20,000 square feet of floor .area which are open at any time between the hours of 12:00. midnight and 5:00 a.m. subject to the approval of a conditional use permit in the C -SM zone. This modification will make the•C- SM zone consistent with the C1, C2, C4.and C5 zones, which allow after hours operations with a CUP. 75B-6 Zoning`Ordinance Amendment No. 2017-0.1 October:9„2017 Page 3 3. Tattoo and/or'Body Art Establishments Sections 41-159, 41-.159.5, 41-195.5, 41-199.3, 41-365, 41-365.5, and 41-489.5 of SAMC, Table 3-2 of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), Table 3 of the -Metro East Mixed Use IOverlay Zone (MEMU), and Table 2A of "the. Transit Zoning Code -Specific Development No. 84(SD-84) Tattoo and/or bodyart establishments will :be allowed by right.in, the zoning districts mentioned in Table 1 but.will t%e.subject to the development and operational.standards below: Table 1 • Tattoo andlor Body Art Establishment Allowed Zoning Districts Zoning, Document Zoning. Districts Chapter 41 –Zoning Community General Commercial Planned Shopping CommercialC-1 sCC-2), Center (C 4} Harbor, Mixed Use Transit Corridor Transit Node (South and North) Corridor Specific Plan SP -2 body art establishment: Metro East Mixed Use Overlay Zone Village Center District Active Urban District MEMU No tattoo;andlor body art establishment shalt be located beyond the ground TransitZoning Code – Specific Transit Village Dcwntovm (DT) Urban Center Corridor(CDR) -Development No. 84 (SD-84) T.V be placed'on the windows or be visible to persons outside the'facility. UC A sign shall be posted on the door or in view of the entrance' of the facility Table 2 Development and Operational` Standards for Tattoo and/or Body Art Establishments Subject Standard Location and Placement No tattoo andlor body establishment in the C-1, C=2, and C-4 zoning district shall be located within 500-feetbf a' public or private school (K-12) or public. park as measured from the outermost boundary, of the property -to the entrance of the facility. This restriction is based -at the time of issuanceofa business license and such'future'school-or public park that may be located within this 500 -foot zone will not cause the relocation of that tattoo andlor body art establishment: No tattoo andlor body art, establishment in the C-1, C-2, and C-4 zoning districlsahall b_e located within 500 feet of another tattoo andlor body"'Wit establishment. No tattoo;andlor body art establishment shalt be located beyond the ground floor of a fiuiidin' .. Hours of Operation No tatloo.andlor body art.establisiment shall operate between the,hours'of, 12:00 a.m`. and 7:00 a.m. unless a Conditional.Use Permit is ap roved. Signage._ Signage, advertising, or Images depicting specific anatomical'parts shall not be placed'on the windows or be visible to persons outside the'facility. A sign shall be posted on the door or in view of the entrance' of the facility stating that, no person under the age of '18 is,allowed on site,•.unless accom ahp ied by their parent or legal guardian. _ Temporary Establishments or Events This section does not authorize temporary establishments or events. Temporary establishments or events are subject io approval of -a Land Use _ Certificate by the Planning Rtanager. 75B-7 Zoning Ordinance Amendment No. 2017-01 October 9, 2017 Page 4 to not be allowed on the I he applicant/operator of the tattoo' andlor body art. establishment .shall comply with all applicable state and local laws as ,66y may be amended from time to time, including Health and Safety Code Sections 119300 at seq. (California Safe Body Art Act), Penal Code Sections 653.and 655 and Chapter 18 of the SAMC. community Feedback and Zoning and General Plan Subcommittee On August 10, 2017, staff hosted a community meeting and presented an. overview of the history and culture of tattooing, current city regulations, addressed how .other cities are addressing tattoo establishments, discussed pro posed'regulations, and received comm"unity feedback -that was. taker) into consideration by staff and used to draft the proposed ordinance. In addition to the community meeting; staff created a survey that was posted on social.medla and the City's webpage and.was sent via email using the City"'s'email blast piatform. A total of 131 surveys were completed by individuals, -with the survey results used to. draft this ordinance. On September 11, 2017; staff presented an in package of proposed amendments to Chapter41 to the Zoning and General Plan Subcommittee, comprised of Commissioners Bacerra,.McLoughlin and Mendoza. The"Zoning'and General Plan Subcommittee recommended minor changes and noted that: the proposed amendments would create a user and business friendly version of Chapter 41 (Zoning) of the. Santa Ana Municipal Code. Table 3: CEQA, Strategic Plan Alignmont. and Public Notification & Community Outreach CEQA CEQAType Exempt per Section 15061 b 3 Reason(s) In accordance with the California Environmental Quality Act (CEQA) the recommended Exempt or Analysis action Is exempt from CEQA per Section 15061(b)(3). This exemption applies to projects covered by the general rule.that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen -with certainty -that there is no possibility that the activity in question may have a significant effect on the environment,therefore, the activity is not subject to CEQA. _ ' Strategicplan All Goal(s).and Policy(s) Approval of this item supports the.Cilys efforts to meet Goal No. 3 - Economic Developriment, Objective No. 2 (create new opportunities for businessrjob growth ;and encourage, private' (development _ through new General Plan and Zoning Ordinance' olicies). Public Notification'& Cofnmunit 'Outreach Required Measures The proposed amendments are citywide and the project site is not located within the boundaries of one single neighborhoodassociation. However, a notice was published in the Orange County Register. At the time of this printing, no correspondence, by phone, written. or electronic, has been received from any members of the public. 75B-8 Zoning. Ordinance Amendment No, - -20 1. 7r,6-1. ,October'9,,2017 Page 5 conclusion Based on t . he analysis provided vvithi - n, this report, staff recommends that the :Planning Commission re . pommojgthatAhO GOrCOU 0C.H.'apprpveloning Ordinance Arnendhie.nt, No. 2,017-01. SIPCQ0I710-9-201MA17-01 Code Mlandillo,AIZOA No. 2017 -W -6c Exhibit; -1. Proposed Draft.Ordinahce' 75B-9 ORDINANCE NO. NS -XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 41-159, 41-159.5, 41-195.5, 41-199.3, 41-365.5, 41-365, 41-489.5 AND 41-522 OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE (SAMC), TABLE 3-2 OF THE HARBOR MIXED USE TRANSIT CORRIDOR SPECIFIC PLAN (SP2), TABLE 3 OF THE METRO EAST MIXED USE OVERLAY ZONE (MEMU), AND TABLE 2A OF THE TRANSIT ZONING CODE — SPECIFIC DEVELOPMENT NO. 84 (SD -84) THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Various sections within Chapter 41 of the Santa Ana Municipal Code (Zoning) have been revised periodically over the last several years to respond to changes in development, to adopt new permitting procedures, and to comply with changes to state and federal laws. In a continuing effort to establish high- quality development standards and to create a user-friendly environment for residents and the business community within the city, the Planning Division is proposing revisions to various sections of the Zoning Code. B. After a thorough analysis of the current code requirements in the city, staff identified a number of code amendments and additions that are necessary to ensure clear, uniform, and legally consistent regulations. The proposed changes and additions will enable the City to implement a regulatory framework that both protects the health, safety, and welfare of the city and limits undue strain on the Santa Ana community. C. Zoning Amendment No. 2017-01 amends Sections 41-159, 41-159.5, 41- 195.5, 41-199.3, 41-365, 41-365.5, 41-489.5 and 41-522 of Chapter 41 of the Santa Ana Municipal Code (SAMC) and sections of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), the Metro East Mixed Use Overlay Zone (MEMU), and the Transit Zoning Code — Specific Development No. 84 (SD - 84). D. On October 9, 2017, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt Zoning Ordinance Amendment No. 2017-01 to amend Sections 41-159, 41-159.5, 41-195.5, 41-199.3, 41-365, 41-365.5, 41-489.5 and 41-522 of Chapter 41 of the Santa Ana Municipal Code (SAMC) and sections of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), the Metro East Mixed Use Overlay Zone (MEMU), and the Transit Zoning Code — Specific Development No. 84 (SD - 84). EXHIBIT 1 75B-10 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 Environmental Quality Act Section 15061(b)(3), and a Notice of Exemption will be filed upon adoption of this ordinance. Section 3. Section 41-159 (Tattoo and/or Body Art Establishments) of SAMC is hereby amended to read as follow: Sec. 41-159. — ThFift ShOp, purGhase and loan, pawRshop. Tattoo and/or Body A Establishment A thFift shep, PLIFGhase and loan, OF paWRGhGp is a Fetail establishment that sells 9 Any facility that includes any of the following activities: (a) sterilization area "Body art establishments" does not include a facility that only pierces the ear with a disposable single -use presterilized clasp and stud or solid needle that is applied using a mechanical device to force the needle or stud through the ear. (b) "Body art" means the body piercing tattooing branding or application of permanent cosmetics. (c) 'Body piercing' means the creation of an opening in a human body for the purpose of inserting jewelry or other decoration. 'Body piercing' includes the piercing of an ear, including the tragus; lips tongue; nose: eyebrow; or clasp or solid needle that is applied using a mechanical device to force the needle or stud through the ear. (d) `Branding' means the process in which a mark or marks are burned into human skin tissue with a hot iron or other instrument, with the intention of leaving a permanent scar. (e) "Permanent cosmetics" means the application of pigments in human skin tissue for the purpose of permanently changing the color or other appearance of the skin. This includes permanent eyeliner, eyebrow, or Iia color. Permanent cosmetics if done as an ancillary use within a beauty salon or spa is not subject to the standards and restrictions in Section 41- 199.3. -Tattoo and/or BodV Art Establishments. (f) 'Tattooing' means the insertion of pigment in human skin tissue by piercing with a needle. 75B-11 Section 4. Section 41-159.5 (Thrift shop, purchase and loan, pawnshop) of SAMC is hereby amended to read as follow: Sec. 41-159.5 — Thrift shoo purchase and loan pawnshop A thrift shoo purchase and loan or pawnshop is a retail establishment that sells or Purchases secondhand articles or provides loans secured by secondhand articles Section 5. Section 41-195.5 (Temporary outdoor activities) of SAMC is hereby amended to read as follow: Sec. 41-195.5. - Temporary outdoor activities. Notwithstanding any other provision of this chapter, the following activities may be conducted in any C1, C1 -MD, C2, C4, C5, M1, M2, CSM, GC, P, SD with commercial use, or SP with commercial use district and are not required to be carried on within an enclosed building, provided they are carried on in accordance with the limitations hereinafter set forth, and provided a land use certificate is first obtained in accordance with sections 41-675 through 41-677: a. Bazaars, fiestas and fund-raising events, provided the activities do not occur on the same lot more frequently than six (6) days in any one-year period, do not continue on the same lot for more than three (3) successive days, do not begin earlier than 10:00 a.m. and do not continue past 10:00 p.m. Monday through Saturday and do not begin earlier than 11:00 a.m. and do not continue past 9:00 p.m. on Sunday. Provided, however, activities in the SD65 district and museum and science center activities in the C1 -MD district, may not occur more frequently than one (1) time per month, do not continue on the same lot for more than three (3) successive days and are not held more than twelve (12) times per year. b. Rummage sales, promotional events, sidewalk or parking lot sales, and temporary sales booths, provided the activities do not occur on the same lot more frequently than six (6) days in any one-year period and do not continue on the same lot for more than two (2) successive days. c. Mobile library, medical and veterinary units, provided activities are not conducted on the same lot for more than six (6) days in any one-year period, do not begin earlier than 8:00 a.m., and do not continue past 5:00 p.m. d. Outdoor auctions, provided that activities are not conducted on the same lot more frequently than four (4) days in any one-year period, do not begin earlier than 8:00 a.m., and do not continue past 5:00 p.m. e. Seasonal activities for uses such as, but not limited to, fireworks stands, pumpkin lots and Christmas tree lots, provided that pumpkin lots do not set up more than thirty (30) days prior to Halloween and are removed within one (1) 75B-12 day after Halloween, Christmas tree lots do not set up more than thirty (30) days prior to Christmas and are removed within one (1) day after Christmas and fireworks stands are in compliance with chapter 14, article II of this Code. f. Carnivals, circuses, radio or d.j. remotes and outdoor music concerts, provided the following conditions are met: 1. The activity is not conducted on the same lot for more than five (5) successive days in any one-year period and may not occur more than five (5) days in any one-year period. 2. Hours of activities shall not begin earlier than 10:00 a.m. and do not continue past 11:00 p.m. Monday through Saturday and do not begin earlier than 11:00 a.m. and do not continue past 9:00 p.m. on Sunday. 3. Off-street parking shall be provided in the manner prescribed in article XV of the Santa Ana Municipal Code. 4. On-site circulation shall be maintained in a manner that will assure efficient internal parking lot circulation. Also, lots shall assure that vehicles need not exit on the street then re-enter the lot to find another parking space. 5. No equipment and/or rides may be located on the lot of such activity for more than forty-eight (48) hours prior to opening day. 6. All equipment and rides used for such activity must be removed within twenty-four (24) hours of closing, day of activity. 7. Noise sources associated with construction, dismantling of equipment, deliveries and rides, shall be permitted provided said activities do not take place between the hours of 8:00 p.m. and 7:00 a.m. on weekdays, Saturday or Sunday. 8. A 30 -foot setback clear of, but not limited to, equipment, booths, stages and rides shall be maintained at all times along any property line abutting residential uses. 9. The activity is subject to cancellation or additional conditions if conducted in a manner detrimental to the health, safety, or welfare of the community as determined by authorized City of Santa Ana representatives including police, fire, public works, or downtown development. g. Temporary outdoor activities where alcohol sale or and/or consumption is allowed. 1. All cooking: equipment (grills, barbecues, etc.) must be turned off one- half ('/z) hour before the activity closure each evening. 75B-13 2. The sale, service and consumption of alcohol shall occur only within a fenced -in area. This area shall be designated with appropriate signage identifying it as such and shall be approved by the police department. 3. The applicant shall ensure that security personnel are on duty at all times and monitoring the fenced -in area designated for the sale, service and consumption of alcohol. Security personnel shall prevent people from carrying alcoholic beverages outside the designated area noted in 41-195.5(g)(2). 4. Advertising which indicates the availability of alcoholic beverages shall be posted at the point of beverage dispensing only. 5. Alcoholic beverages shall be served in distinctive cups, which are different from those used for non-alcoholic beverages. 6. No more than two (2) cups containing alcoholic beverages may be sold to a customer at a time. All alcoholic beverages shall be sold in paper or plastic cups and not in their original glass or metal containers. 7. The server is prohibited from selling alcoholic beverages to an obviously intoxicated person. 8. The server is prohibited from consuming alcoholic beverages. 9. The sale, service and consumption of alcoholic beverages shall cease one (1) hour prior the end of the activity. h All to td V' '4' hall be bjeGt te the f II ... .... ...�`:r���"j .'�.a moor 'a oaw'ioc� onaroa. `ov' vJcocZv-n'rcwrmwrncfi 1. The ^FFfisant must pFevide a Minimum- seF of state I Gensed, 75B-14 h. Farmers markets provided the activities do not occur on the same lot more 7:00 a.m. and do not continue past 11:00 p.m. L Mobile and temporary tattoo and/or body art events, provided activities are not conducted on the same lot for more than six (6) days in any one-year period do not begin earlier than 10:00 a.m. and do not continue past 11:00 p.m. Monday through Saturday and do not begin earlier than 11:00 a.m. and do not continue past 9:00 p.m. on Sunday. j. All temporary outdoor activities shall be subject to the following: 1. The applicant must provide a minimum number of state licensed, representative during the application process These guards shall be present from the opening of the activity until closing and all persons have vacated the grounds. Under special circumstances city police 2. Security guards must carry a cellular phone. 3. 4. All security personnel shall have equipment enabling two-way communication with other security personnel. 5. The applicant shall be required to pay for any additional police services that may result from the activity. 6. Noise levels generated by the activity must remain under specified S.A.M.C.levels. 7. The sale of tickets must cease thirty (30) minutes prior to the closure of the activity daily. 75B-15 Section 6. Section 41-199.3 (Tattoo and/or Body Art Establishments) of SAMC is hereby amended to read as follow: Sec. 41-199.3. — Tattoo and/or Body Art Establishments All tattoo/body modification establishments shall be subject to the following in addition to all other requirements of the law: No tattoo and/or body art establishment in the C-1 C-2 and C-4 zoning districts shall be located within 500 feet of a public or private school (K-12) or public park as measures from the outermost boundary of the property to the entrance of the facility. This restriction is based at the time of issuance of a business license and such future school or public park that may be located within this 500 -foot zone will not cause the relocation of that tattoo and/or body art establishment. b. No tattoo and/or body art establishment in the C-1 C-2 and C-4 zoning districts shall be located within 500 feet of another tattoo and/or body art establishment. c. No tattoo and/or body art establishment shall operate between the hours of 12:00 a.m. and 7:00 a.m. d. Live animals, except service animals, shall not be allowed on the premises. e. Temporary establishments or events are not authorized by this section unless a Land Use Certificate is approved by the Planning Manager. f. The facility shall be designed to screen tattooing and/or body modifications or similar services performed on a patron from persons outside the facility. Q h. A sign shall be posted on or by each entrance stating that no person under 18 years old shall be allowed without parent or legal guardian. 75B-16 time including Health and Safety Code Sections 119300 et seq. (California Safe Body Art Act), Penal Code Section 653 and 655 and Chapter 18 of this Code. Section 7. Section 41-365 (Community Commercial) of SAMC is hereby amended to read as follow: Sec. 41-365. - Uses permitted in the C1 district. The following uses are permitted in the C1 district: a. Retail and service uses b. Professional, administrative and business offices. c. Automobile parking lots and parking structures. d. Automobile sales, but excluding truck, trailer, tractor and boat sales e. Churches and accessory church buildings. f. Mortuaries. g. Theaters. h. Hospitals, clinics, and sanitariums. i. Animal hospitals and veterinaries. j. Plant nurseries. k. Gymnasiums. I. Golf courses, both regulation and miniature, and driving ranges. m. Public utility structures, including electric distribution and transmission substations. n. Restaurants, cafes, and eating establishments, other than those specified in Section 41-365.5. o. Schools and studios operated for commercial or public purposes p. Childcare facilities. q. Service stations. 75B-17 r. Automobile servicing. s. Cyber cafes, subject to compliance with the requirements of Section 41- 198.200. t. Tattoo and/or Body Art Establishments subject to the development and operational standards set forth in Section 41-199.3. Section 8. Section 41-365.5 (Community Commercial) of SAMC is hereby amended to read as follow: Sec. 41-365.5. - Uses subject to a conditional use permit in the C1 district. The following uses may be permitted in the C1 district subject to the issuance of a conditional use permit: a. Clubs. b. Outdoor and indoor recreational or entertainment uses other than those set forth in Section 41-365. c. Hotels, motels, lodging houses, care homes, fraternity houses and sorority houses. d. Thrift shops, purchase and loan, pawn shops. e. Eating establishments with drive-through window service f. Eating establishments open at any time between the hours of 12:00 a.m. and 5:00 a.m. and located within one hundred fifty (150) feet of residentially zoned or used property, measured from property line to property line. g. Laundromats, subject to the development and performance standards set forth in Section 41-199. h. Retail markets having less than twenty thousand (20,000) square feet of floor area which are open at any time between the hours of 12:00 midnight and 5:00 a.m. i. Check cashing facilities, as defined by Section 41-42.7 of this Code. j. Banquet facilities, subject to development and operational standards set forth in Section 41-199.1. k. Banquet facilities as an ancillary use, subject to development and operational standards set forth in Section 41-199.1. 75B-18 I. Adult day care facilities. m. Superstores. n. Tattoo and/or Body Art Establishments open at any time between the hours of 12 a m and 7.00 a m subject to the development and operational standards set forth in Section 41-199.3. Section 8. Section 41-489.5 (Heavy Industrial) of SAMC is hereby amended to read as follow: Sec. 41-489.5. - Additional uses subject to a conditional use permit in the M2 district. In addition to uses permitted subject to the issuance of a conditional use permit pursuant to sections 41-489and 41-472.5, the following uses may be permitted in the M2 district subject to the issuance of a conditional use permit: a. Acid manufacturing. b. Junkyards, automobile wrecking yards and salvage yards, and impound yards. c. Cement, lime, gypsum or plaster of paris manufacture. d. Fertilizer manufacture. e. Gas or acetylene manufacture. f. Glue manufacture. g. Smelting of tin, copper, zinc or iron ores. h. Sites for the transfer, disposal or dumping of rubbish, garbage, trash, or refuse. L Tat L Any facility where payment is offered for blood or plasma donations. j. Crematories. k. Hazardous waste treatment facilities. I. Recycling facilities in excess of forty-five thousand (45,000) gross square feet and in compliance with Section 41-1253 of this Code. 75B-19 Section 9. Section 41-522 (South Main Commercial District) of SAMC is hereby amended to read as follow: Sec. 41-522. - Uses subject to a conditional use permit in the C -SM district. The following uses may be permitted in the C -SM district subject to the issuance of a conditional use permit: a. Clubs, lodges and fraternal organizations. b. Outdoor and indoor recreational or entertainment uses including night clubs, other than those set forth in section 41-521. c. Hotels, motels, lodging houses, care homes, fraternity houses and sorority houses. d. Thrift and resale stores, antique shops and collectable stores, excluding pawn shops and auction houses. e. Eating establishments open at any time between the hours of 12:00 midnight and 5:00 a.m. and located within one hundred fifty (150) feet of residentially zoned or used property, measured from property line to property line. f. Laundromats. g. Ancillary outdoor dining facilities located in the front yard area. h. Banquet facilities, subject to development and operational standards set forth in section 41-199.1. i. Banquet facilities as an ancillary use, subject to development and operational standards set forth in section 41-199.1. j. Automobile repair and automobile servicing. IN 5:00 a.m. Section 10. Table 3-2 (Permitted Uses) of Harbor Mixed Use Transit Corridor Specific Plan (SP -2) is hereby amended and attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. Section 11. Table 3 (Permitted Land Uses) of Metro East Mixed Use Overlay Zone (MEMU) is hereby amended and attached hereto as Exhibit B and incorporated by this reference as though fully set forth herein. 75B-20 Section 12. Table 2A (Use Standards) of Transit Zoning Code — Specific Development No. 84 (SD -84) is hereby amended and attached hereto as Exhibit C and incorporated by this reference as though fully set forth herein. Section 13. If any section, subsection, 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, or portions be declared invalid or unconstitutional. ADOPTED this 21St day of November, 2017 Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney 0 Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 75B-21 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2017, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75B-22 EXHIBIT A TABLE 3-2 (PERMITTED USES) HARBOR MIXED USE CORRIDOR SPECIFIC PLAN (SP -2) Table 3.2. Permitted Uses Joint SdrgMmr g Ruartraa P (L) P P (2) CUP - N CareForms N N CUP CUP lJ Singlefaraly darelfmg Muhllamlls'tixeling5 (in building ppes 09 a titan a hand m Llv yklk) fl P(1) N P(1) P P P P IJ N .. Cmlmunly assunty or OldouS laody PR) Plll P CUP N library, nWnmum P P P P SPR Pad( arrareation Lxiliy iolndaon P P P P P r,. -r... -a Cnp cup N .'. -"1(-. P Sc6vd Pf) P(1) P CUP - :.N . $iVJva P(3) P P CUP N Thea'er, ®aerlu ca Wforming acts P P P N Geooral mtaa P 43) P P P (2) _ N" G..y, food narkel P(3) P P(3) P(2) FaNrs.1aL ubmeN P 137 P P P (2) N j Auto or mein vefikU Sales 'N N CUP N, -N' ! s. Aum o mnmr which mrslm IJ N CUP N, N I 6rrnluel [.r>Try/raW'ugt-SnLjw1 b 4Um, 5 1.149.1 H Um, WPM WPM CUP (1) N N --y Cali LLn-1.-.v than U am RP m li Onkfmn Pfll P P LUC ChL'O Chad dal wra Cer G 5 or mom chft.) P(1) P P CUP N 11f Ilotal, eachtivtiaasanl rPsW,ntlal IWA61 am wwtam stay p P P N N l Pu:cmal mi Pf31 P p P(2) N er , es- eta - EsmbL¢Mnm4-snbjN baL1993d Ne5ANC P P P 4vYt. 1'rLYa]I amm, ralya a Gax'rw. aemsf, W wua nal e.n�n.n.n aParam.0 u�f.,aan la ar.r nlearar en.w.asa.amwa..rnr.mra, AtluW bu."vrss LL3AuluavY 4rJualriW Pu) P P PU) P P (4) P P SPR P P P PR SPR I S UP CUP UP Cup N N ry — N EXHIBIT B 75B-23 N N { N I N N N P (2) (J ri SPR WP SPR WR .n 500. N . a TmmyaOdyArt 4vYt. 1'rLYa]I amm, ralya a Gax'rw. aemsf, W wua nal e.n�n.n.n aParam.0 u�f.,aan la ar.r nlearar en.w.asa.amwa..rnr.mra, AtluW bu."vrss LL3AuluavY 4rJualriW Pu) P P PU) P P (4) P P SPR P P P PR SPR I S UP CUP UP Cup N N ry — N EXHIBIT B 75B-23 N N { N I N N N P (2) (J ri SPR WP SPR WR .n 500. N TABLE 3 (PERMITTED LAND USES) METRO EAST MIXED USE OVERLAY ZONE (MEMU) 75B-24 �—p£ JvIF- ie ResidanBvl Usas R.e/N'al U.lh I P I P I P I N S:Ipoiv pvelbud R:s drrlilmi h1t41rfar$y Pn47er:A1 P N P N NomRasldanliul Usos /.I g�0r,t�mJ ssm1m rd.,iug. W ra4� mil n: FfomgvyIry;fs:epl:sx}6d-Y-Phy,obl mL.PaF1�Y: r raaJc aro4lm+f. 6l�afA.a4g v i ICLIP4, P P P P 1na"'Alil�mew.[m�.iw:wmml N P P P 02 br k,mvhYvSr hews gxravon B�iRlea N P P P Pst+�ard Sn.ix un N P P P Pmbssx.^J,odrh smY,e mAb.n iresa d=m• P P P P OAJ.faA6 P P P P G,r- ''.s ari h,,N dots N P P CU' I,... N P P GIN Hrbor/wdm enienx'amxn N P P P Gl d dr Smv Aw ldu.slpd Cale rt Establishments N P P N Sugactbsscvon al-ssw.Cade ¢tMa M,-,bUd.. ov N P P P 5tavdvadaUdm._+a N IJ tJ N 75B-24 EXHIBIT C TABLE 2A (USE STANDARDS) TRANSIT ZONING CODE - SPECIFIC DEVELOPMENT NO. 84 (SD -84) Table 2A - Use Standards CUP Permit Required by Zone Land Use Type CDR .USN UN -1 ear toKey to Zone Symbo Is table on fDiIOWknff page lot zone description and use notations RESIDENTIAL Live.Wark Use / Joint living -working quarters P (2) P (2) P (2) P (2) CUP CUP Care Homes CUP CUP CUP CUP CUP CUP Single Dwelling — — — P P M.ld-Family Dwelling. P 0) P 0) p (1) P (1) P P EDUCATION AND ASSEMBLY Community assembly P(1) P (1) P (I) P CUP CUP Health/Rtness facility P P I P P CUP — Library, museum P P p P P CLIP Schools P (1) P (1) P (1) P CUP CUP Studio P P P P CUP CUP Theater, clnem a or Performing arts P P P P — -- Commercial Recreation (Indoor) CUP CUP CUP — — --- RETAIL General retail, except whh any ofthe following Poawres P P P I P P(2) — Floor area over 20,000 per tenant CUP CUP P Cup Eating establish ments P P P P(2)- Autoormotorvehtdeservica — I — I P P — — SERVICE GENERAL Banquet facility/catering-sub. to 41.199.1(a) through (d) CUP CUP CUP CUPM — — Child day care- morethan 8 and up to 14 children P (3) P (3) P P LUC(2) LUC Child day care center P (3) P (3) P P CUP CUP Adult day un cancer...bled to 41.199.2 fthe SAMC P (3) P (3) P P P — Hotel, eicL vanslent resid.mlal hotel and Iangtemi stay P P P P — — Mortuaries,funeralhomes — — CUP P — — Penonal services P P P P P(2) P (2) T.ttoo)Body AREsubGshments-subjeato a1.199.3 of SM1NC p P P P --- 75B-25 75B-26 ORDINANCE NO. NS -XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 41-159, 41-159.5, 41-195.5, 41-199.3, 41-365.5, 41-365, 41-489.5 AND 41-522 OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE (SAMC), TABLE 3-2 OF THE HARBOR MIXED USE TRANSIT CORRIDOR SPECIFIC PLAN (SP2), TABLE 3 OF THE METRO EAST MIXED USE OVERLAY ZONE (MEMU), AND TABLE 2A OF THE TRANSIT ZONING CODE — SPECIFIC DEVELOPMENT NO. 84 (SD -84) THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: Various sections within Chapter 41 of the Santa Ana Municipal Code (Zoning) have been revised periodically over the last several years to respond to changes in development, to adopt new permitting procedures, and to comply with changes to state and federal laws. In a continuing effort to establish high- quality development standards and to create a user-friendly environment for residents and the business community within the city, the Planning Division is proposing revisions to various sections of the Zoning Code. 2. After a thorough analysis of the current code requirements in the city, staff identified a number of code amendments and additions that are necessary to ensure clear, uniform, and legally consistent regulations. The proposed changes and additions will enable the City to implement a regulatory framework that both protects the health, safety, and welfare of the city and limits undue strain on the Santa Ana community. 3. Zoning Amendment No. 2017-01 amends Sections 41-159, 41-159.5, 41- 195.5, 41-199.3, 41-365, 41-365.5, 41-489.5 and 41-522 of Chapter 41 of the Santa Ana Municipal Code (SAMC) and sections of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), the Metro East Mixed Use Overlay Zone (MEMU), and the Transit Zoning Code — Specific Development No. 84 (SD - 84). 4. On October 9, 2017, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt Zoning Ordinance Amendment No. 2017-01 to amend Sections 41-159, 41-159.5, 41-195.5, 41-199.3, 41-365, 41-365.5, 41-489.5 and 41-522 of Chapter 41 of the Santa Ana Municipal Code (SAMC) and sections of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), the Metro East Mixed Use Overlay Zone (MEMU), and the Transit Zoning Code — Specific Development No. 84 (SD - 84). Ordinance No. NS-xx Exhibit IS Page 1 of 17 75B-27' 5. On November 7, the City Council held a duly noticed public hearing on Zoning Ordinance Amendment No. 2017-01 to amend Sections 41-159, 41-159.5, 41-195.5, 41-199.3, 41-365, 41-365.5, 41-489.5 and 41-522 of Chapter 41 of the Santa Ana Municipal Code (SAMC) and sections of the Harbor Mixed Use Transit Corridor Specific Plan (SP2), the Metro East Mixed Use Overlay Zone (MEMU), and the Transit Zoning Code — Specific Development No. 84 (SD - 84). 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 Environmental Quality Act Section 15061(b)(3), and a Notice of Exemption will be filed upon adoption of this ordinance. Section 3. Section 41-159 (Thrift shop, purchase and loan, pawnshop) of the SAMC is hereby amended to read as follows: Sec. 41-159. — ThFift ShOp, puFohase and loan, pawnshop-. Tattoo and/or Body A Establishment A thFift shop, p6iFGhase and leaR, er paWRGh9P is a Fetail establishment that sells a Any facility that includes any of the following activities: (a) "Body art establishments" means any specified building section of a sterilization area. `Body art establishments' does not include a facility that needle or stud through the ear. (b) "Body art" means the body piercing tattooing branding or application of Permanent cosmetics. (c) needle or stud through the ear. (d)"Branding" means the process in which a mark or marks are burned into human skin tissue with a hot iron or other instrument, with the intention of leaving a permanent scar. (e) "Permanent cosmetics" means the application of pigments in human skin tissue for the purpose of Permanently changing the color or other Ordinance No. NS-xx Page 2 of 17 75B-28 appearance of the skin This includes permanent eyeliner, eyebrow, or lip color. Permanent cosmetics if done as an ancillary use within a beauty salon or spa is not subject to the standards and restrictions in Section 41- 199.3 1-199 3 -Tattoo and/or Body Art Establishments. (f) "Tattooing' means the insertion of pigment in human skin tissue by piercing with a needle. Section 4. Section 41-159.5 is hereby added to the SAMC to read as follows: Sec 41-159.5 — Thrift shop purchase and loan, pawnshop. A thrift shop purchase and loan or pawnshop is a retail establishment that sells or purchases secondhand articles or provides loans secured by secondhand articles. Section 5. Section 41-195.5 (Temporary outdoor activities) of the SAMC is hereby amended to read as follows: Sec. 41-195.5. - Temporary outdoor activities. Notwithstanding any other provision of this chapter, the following activities may be conducted in any C1, C1 -MD, C2, C4, C5, M1, M2, CSM, GC, P, SD with commercial use, or SP with commercial use district and are not required to be carried on within an enclosed building, provided they are carried on in accordance with the limitations hereinafter set forth, and provided a land use certificate is first obtained in accordance with sections 41-675 through 41-677: a. Bazaars, fiestas and fund-raising events, provided the activities do not occur on the same lot more frequently than six (6) days in any one-year period, do not continue on the same lot for more than three (3) successive days, do not begin earlier than 10:00 a.m. and do not continue past 10:00 p.m. Monday through Saturday and do not begin earlier than 11:00 a.m. and do not continue past 9:00 p.m. on Sunday. Provided, however, activities in the SD65 district and museum and science center activities in the C1 -MD district, may not occur more frequently than one (1) time per month, do not continue on the same lot for more than three (3) successive days and are not held more than twelve (12) times per year. b. Rummage sales, promotional events, sidewalk or parking lot sales, and temporary sales booths, provided the activities do not occur on the same lot more frequently than six (6) days in any one-year period and do not continue on the same lot for more than two (2) successive days. c. Mobile library, medical and veterinary units, provided activities are not conducted on the same lot for more than six (6) days in any one-year period, do not begin earlier than 8:00 a.m., and do not continue past 5:00 p.m. Ordinance No. NS-xx Page 3 of 17 75B-29 d. Outdoor auctions, provided that activities are not conducted on the same lot more frequently than four (4) days in any one-year period, do not begin earlier than 8:00 a.m., and do not continue past 5:00 p.m. e. Seasonal activities for uses such as, but not limited to: fireworks stands, pumpkin lots and Christmas tree lots, provided that pumpkin lots do not set up more than thirty (30) days prior to Halloween and are removed within one (1) day after Halloween, Christmas tree lots do not set up more than thirty (30) days prior to Christmas and are removed within one (1) day after Christmas and fireworks stands are in compliance with Chapter 14, Article II of this Code. f. Carnivals, circuses, radio or d.j. remotes and outdoor music concerts, provided the following conditions are met: 1. The activity is not conducted on the same lot for more than five (5) successive days in any one-year period and may not occur more than five (5) days in any one-year period. 2. Hours of activities shall not begin earlier than 10:00 a.m. and do not continue past 11:00 p.m. Monday through Saturday and do not begin earlier than 11:00 a.m. and do not continue past 9:00 p.m. on Sunday. 3. Off-street parking shall be provided in the manner prescribed in Article XV of the Santa Ana Municipal Code. 4. On-site circulation shall be maintained in a manner that will assure efficient internal parking lot circulation. Also, lots shall assure that vehicles need not exit on the street then re-enter the lot to find another parking space. 5. No equipment and/or rides may be located on the lot of such activity for more than forty-eight (48) hours prior to opening day. 6. All equipment and rides used for such activity must be removed within twenty-four (24) hours of closing, day of activity. 7. Noise sources associated with construction, dismantling of equipment, deliveries and rides, shall be permitted provided said activities do not take place between the hours of 8:00 p.m. and 7:00 a.m. on weekdays, Saturday or Sunday. 8. A 30 -foot setback clear of, but not limited to, equipment, booths, stages and rides shall be maintained at all times along any property line abutting residential uses. 9. The activity is subject to cancellation or additional conditions if conducted in a manner detrimental to the health, safety, or welfare of Ordinance No. NS-xx Page 4 of 17 75B-30 the community as determined by authorized City of Santa Ana representatives including police, fire, public works, or downtown development. g. Temporary outdoor activities where alcohol sale or and/or consumption is allowed. 1. All cooking: equipment (grills, barbecues, etc.) must be turned off one- half ('/2) hour before the activity closure each evening. 2. The sale, service and consumption of alcohol shall occur only within a fenced -in area. This area shall be designated with appropriate signage identifying it as such and shall be approved by the police department. 3. The applicant shall ensure that security personnel are on duty at all times and monitoring the fenced -in area designated for the sale, service and consumption of alcohol. Security personnel shall prevent people from carrying alcoholic beverages outside the designated area noted in 41-195.5(g)(2). 4. Advertising which indicates the availability of alcoholic beverages shall be posted at the point of beverage dispensing only. 5. Alcoholic beverages shall be served in distinctive cups, which are different from those used for non-alcoholic beverages. No more than two (2) cups containing alcoholic beverages may be sold to a customer at a time. All alcoholic beverages shall be sold in paper or plastic cups and not in their original glass or metal containers. The server is prohibited from selling alcoholic beverages to an obviously intoxicated person. 8. The server is prohibited from consuming alcoholic beverages. 9. The sale, service and consumption of alcoholic beverages shall cease one (1) hour prior the end of the activity. Ordinance No. NS-xx Page 5 of 17 75B-31 Nov h. Farmers markets, provided the activities do not occur on the same lot more frequently that fifty-two (52) days in any one-year period do not continue on the same lot for more that two (2) successive days do not begin earlier than 7:00 a.m. and do not continue past 11:00 p.m 1. On-site circulation shall be maintained in a manner that will assure emergency vehicle circulation. 2. Adequate trash containers and toilet facilities shall be provided during the hours of operation. 9 only, "cleaned" shall include, but not be limited to: the removal of stalls, retail items, debris and trash used or generated in conjunction with market activities. L Mobile and temporary tattoo and/or body art events P�ovjded activities are not conducted on the same lot for more than six (6) days in any one-year period, do not begin earlier than 10:00 a.m. and do not continue past 11.00 P.m. Monday through Saturday and do not begin earlier than 11.00 a.m. and do not continue past 9:00 p.m. on Sunday. j. All temporary outdoor activities shall be subject to the following: The applicant must provide a minimum number of state licensed uniformed security guards for each day of the activity. This minimum number is to be determined by the chief of police or his authorized representative during the application process These guards shall be present from the opening of the activity until closing and all persons have vacated the grounds Under special circumstances city police Ordinance No. NS-xx Page 6 of 17 75B-32 officers may be required in addition to the security guards. The applicant will bear the cost of the police officers. 2. Security guards must carry a cellular phone. 3. All personnel serving as security guards must wear attire such as a racket shirtvest etc that clearly identifies them as security. 4. All security personnel shall have equipment enabling two-way communication with other security personnel. 5. 6. Noise levels generated by the activity must remain under specified levels set forth in the Santa Ana Municipal Code. 7. The sale of tickets must cease thirty (30) minutes prior to the closure of the activity daily. Section 6. Section 41-199.3 (Tattoo and/or Body Art Establishments) is hereby added to the SAMC to read as follows: Sec. 41-199.3. — Tattoo and/or Body Art Establishments All tattoo/body modification establishments shall be subject to the following, in addition to all other requirements of the law: 91 public park as measures from the outermost boundary of the property to the entrance of the facility. This restriction is based at the time of issuance of a business license and such future school or public park that may be located within this 500 -foot zone will not cause the relocation of that tattoo and/or body art establishment. b. No tattoo and/or body art establishment in the C-1 C-2, and C-4 zoning districts shall be located within 500 feet of another tattoo and/or body art establishment. c. No tattoo and/or body art establishment shall operate between the hours of 12:00 a.m. and 7:00 a.m. d. Live animals except service animals shall not be allowed on the premises. Ordinance No. NS-xx Page 7 of 17 75B-33 e. f. The facility shall be designed to screen tattooing and/or body modifications or similar services performed on a patron from persons outside the facility. g. Signage advertising or images depicting specific anatomical parts shall not be placed in the windows or be visible to persons outside the facility. h. A sign shall be posted on or by each entrance stating that no person under 18 years old shall be allowed without parent or legal guardian i. The applicant/operator of the Tattoo and/or Body Art Facility shall also comply with all applicable state county and local laws as they may be amended from time to time. including Health and Safety Code Sections 119300 et sea Section 7. Section 41-365 (Community Commercial) of the SAMC is hereby amended to read as follows: Sec. 41-365. - Uses permitted in the C1 district. The following uses are permitted in the C1 district: a. Retail and service uses b. Professional, administrative and business offices. c. Automobile parking lots and parking structures. d. Automobile sales, but excluding truck, trailer, tractor and boat sales e. Churches and accessory church buildings. f. Mortuaries. g. Theaters. h. Hospitals, clinics, and sanitariums. L Animal hospitals and veterinaries. j. Plant nurseries. Ordinance No. NS-xx Page 8 of 17 75B-34 k. Gymnasiums. I. Golf courses, both regulation and miniature, and driving ranges. m. Public utility structures, including electric distribution and transmission substations. n. Restaurants, cafes, and eating establishments, other than those specified in Section 41-365.5. o. Schools and studios operated for commercial or public purposes p. Childcare facilities. q. Service stations. r. Automobile servicing. s. Cyber cafes, subject to compliance with the requirements of Section 41- 198.200. t. Tattoo and/or _Body Art Establishments subject to the development and Section 8. Section 41-365.5 (Community Commercial) of the SAMC is hereby amended to read as follows: Sec. 41-365.5. - Uses subject to a conditional use permit in the C1 district. The following uses may be permitted in the C1 district subject to the issuance of a conditional use permit: a. Clubs. b. Outdoor and indoor recreational or entertainment uses other than those set forth in Section 41-365. c. Hotels, motels, lodging houses, care homes, fraternity houses and sorority houses. d. Thrift shops, purchase and loan, pawn shops. e. Eating establishments with drive-through window service. f. Eating establishments open at any time between the hours of 12:00 a.m. and 5:00 a.m. and located within one hundred fifty (150) feet of residentially zoned or used property, measured from property line to property line. Ordinance No. NS-xx Page 9 of 17 75B-35 g. Laundromats, subject to the development and performance standards set forth in Section 41-199. h. Retail markets having less than twenty thousand (20,000) square feet of floor area which are open at any time between the hours of 12:00 midnight and 5:00 a.m. i. Check cashing facilities, as defined by Section 41-42.7 of this Code. j. Banquet facilities, subject to development and operational standards set forth in Section 41-199.1. k. Banquet facilities as an ancillary use, subject to development and operational standards set forth in Section 41-199.1. I. Adult day care facilities. m. Superstores. n. Tattoo and/or Body Art Establishments open at any time between the hours Section 9. Section 41-489.5 (Heavy Industrial) of the SAMC is hereby amended to read as follows: Sec. 41-489.5. - Additional uses subject to a conditional use permit in the M2 district. In addition to uses permitted subject to the issuance of a conditional use permit I pursuant to sections 41-489 and 41-472.5, the following uses may be permitted in the M2 district subject to the issuance of a conditional use permit: j a. Acid manufacturing. b. Junkyards, automobile wrecking yards and salvage yards, and impound yards. c. Cement, lime, gypsum or plaster of paris manufacture. d. Fertilizer manufacture. e. Gas or acetylene manufacture. f. Glue manufacture. g. Smelting of tin, copper, zinc or iron ores. Ordinance No. NS-xx Page 10 of 17 75B-36 h. Sites for the transfer, disposal or dumping of rubbish, garbage, trash, or refuse. i. Tatiee par{erG. i. Any facility where payment is offered for blood or plasma donations. j. Crematories. k. Hazardous waste treatment facilities. I. Recycling facilities in excess of forty-five thousand (45,000) gross square feet and in compliance with Section 41-1253 of this Code. Section 10. Section 41-522 (South Main Commercial District) of the SAMC is hereby amended to read as follows: Sec. 41-522. - Uses subject to a conditional use permit in the C -SM district. The following uses may be permitted in the C -SM district subject to the issuance of a conditional use permit: a. Clubs, lodges and fraternal organizations. b. Outdoor and indoor recreational or entertainment uses including night clubs, other than those set forth in section 41-521. c. Hotels, motels, lodging houses, care homes, fraternity houses and sorority houses. d. Thrift and resale stores, antique shops and collectable stores, excluding pawn shops and auction houses. e. Eating establishments open at any time between the hours of 12:00 midnight and 5:00 a.m. and located within one hundred fifty (150) feet of residentially zoned or used property, measured from property line to property line. f. Laundromats. g. Ancillary outdoor dining facilities located in the front yard area. h. Banquet facilities, subject to development and operational standards set forth in section 41-199.1. L Banquet facilities as an ancillary use, subject to development and operational standards set forth in section 41-199.1. Ordinance No. NS-xx Pagel 1 of 17 75B-37 j. Automobile repair and automobile servicing. k. Retail markets having less than twenty thousand (20,000) square feet of floor area which are open at any time between the hours of 12.00 midnight and 5:00 a.m. Section 11. Table 3-2 (Permitted Uses) of Harbor Mixed Use Transit Corridor Specific Plan (SP -2) is hereby amended and attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. Section 12. Table 3 (Permitted Land Uses) of Metro East Mixed Use Overlay Zone (MEMU) is hereby amended and attached hereto as Exhibit B and incorporated by this reference as though fully set forth herein. Section 13. Table 2A (Use Standards) of Transit Zoning Code — Specific Development No. 84 (SD -84) is hereby amended and attached hereto as Exhibit C and incorporated by this reference as though fully set forth herein. Section 14. If any section, subsection, 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, or portions be declared invalid or unconstitutional. ADOPTED this 7�h day of November, 2017. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By. (C�t9�c— Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75B-38 Ordinance No. NS-xx Page 12 of 17 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2017, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75B-39 Ordinance No. NS-xx Page 13 of 17 EXHIBIT A TABLE 3-2 (PERMITTED USES) HARBOR MIXED USE CORRIDOR SPECIFIC PLAN (SP -2) Ordinance No. NS-xx Page 14 of 17 75B-40 Tablu 3.2. Purinitled US"5 Ordinance No. NS-xx Page 15 of 17 75B-41 F P tz) —t4 clip —CI!'._— N P p N Pit) I, it I P P P. to Pill p(l) Clip It P SPR Ne, I., lmmroi 1 .1.71 kw�,) p p (M.A cup rup N 14 p () Pill P Clip N Sub P(3) 1 p p Clip P P p it p P P(21 P13) 1 fmd r000!l,el P (3) P P(3) P(2) P(2) P p pm m WON J4 rloj—p—i CUP N I 14 VY) I H R., E1M' COP (1) Cup'll ill N I'l C1,dd,j, 8 14 chki,11 Pilo P P LIXl I to (36 .1 W'W,nj P I D P V CUP to 16t•31. 9.11 T (3) p P(21 No T,imW�9trf -wbjen W 41-5I of ilx UW P P p k 1,j it, I --- oil -- , - - P P 12, to i IM 14 os;, N N 11, ..n Ii,H I t, CUP up CUP 1 Cup to N i M Ordinance No. NS-xx Page 15 of 17 75B-41 EXHIBIT B TABLE 3 (PERMITTED LAND USES) METRO EAST MIXED USE OVERLAY ZONE (MEMU) Ordinance No. NS-xx Page 16 of 17 75B-42 e yr�u - i s ' o Syed prosvna 6d un U olav-•tcW._rll.. I cone recta m B+ecasal Residontial Usos 'Yco Ywaa.. uo+ l.s,hil-P�d; e<as..ad P N P N Non•Rvsidanlial M., tr1 y:,ll:.aa mrJ A lra rrtF.Jlx1. W rrol LrrraJ b: douP'+tty, l.re mr; tLc, z1: urva"y. 6'lan�5s'. r.il Clryb:F:Y. 4�amC unF CtlY'N: 31raa tJ>x[�y �N rCd;;'IrrJ P P P P Ca: y a_EOJ.ren, lulm, rawvwrd rl P P P CU"a baar aly, n^a Min q:<vunrr Bal arty N P P p R:cJnrct Sn.�e :ent N P P p A•z xd W peal o: cea- p p p P Pru4.suoxJ, r4..e.ure'Ly :wl lb w, • o`K II- p P P t Orb oue'ocA�as P P P p G.rrr.nuns a.1 Mdi clre.a N P p CUP IbiL N P P CL9 Jd.lo, . erc cvrrrarl N P p p •1+:0-1 Cl., -, dI .14. k. ll fKlprl Crkle "1 C Tattoo/Body Art Establishments N p P N ab,w to Sac 41499.3 ohne nta?. Mvnii al Cctle bgovyrns:m m'ertcs N ffiaw Ma L'.r.k:al Coin- ILC 1}avua mJ w.Yua N p P f Usa/OposatioI Stnndoada 5111 f. na;Ussi m:m 1 N N N N Ordinance No. NS-xx Page 16 of 17 75B-42 EXHIBIT C TABLE 2A (USE STANDARDS) TRANSIT ZONING CODE - SPECIFIC DEVELOPMENT NO. 84 (SD -84) Table 2A -Use Standards",. Permit Requredby 2one- Land Use Type `- Re er to Key to Zone Sym s to no g ege or aane deao;ptlon an mx notation, RESIDENTIAL Live=Fork Use/Jointlain3workingquarters P(:) P Care Homes Aluli-Family Duelling. CUP CUP P (2) P (2) CUP SCUP CUP CUP CUP CUP P I P P (1) P (1) P (1) P (1) F _ r_ P_ RECREATION, EDUCATION AND ASSEMBLY Banquet facility/otering.sub. to= 1.199.1 h) through lot Community auambly P(1} ipj P(1) P CUPI CUP ' I Health ;fitness facilityP _ P - P P --p—_p_ P CUP_--- P (3) Library, museum P Adul: dry care cantensubject to 41.139.2 of the SAMC P (3) _ P I- CUP -; schools P(1) P (1) P (1) P CUP CUP Studio P P P P CUP CUP _ _ Theateq cinemaor, performing arts ?_ Pp''___ P - P P(2) 1 P (2) Commercial Recreation (Indoor) CUP CUP CUP -- RETAIL Canenl retail, except with anyof+.e following features P P _.__. _P p Floor area over 20,x00 per tenant CUP CUP p - _ CUP_ - - Eatingastablishmen s -- - _ -, . - - _ P -_ _P_ P _-- P _ - P(2)_ f , Auto or mato, vehicle service -- - p P SERVICE GENERAL Banquet facility/otering.sub. to= 1.199.1 h) through lot CUP CUP _CUP _CUPP) Child day ore - more than g and up to 14 Children _P (3) P (3) ,. _ P - _ P LUQ') c LUC _- Child day wre center P (3) P (3) P P CUP CUP Adul: dry care cantensubject to 41.139.2 of the SAMC P (3) P (3) P P P -- Hotel,escl. tnmient rvsidembl hotel and long term stay P _ P a- _ a __-- . Mortuaries, funeral homes - -- CUP p - ^- - Personal aervicev-- - -- - P __-I P - -i P - P P(2) 1 P (2) T.ttoo/Body A,t Es blishrhen3 - subject m 41.199.3 of SAM P 75B-43 p I P Ordinance No. NS-xx Page 17 of 17 75B-44 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING - AMEND SANTA ANA MUNICIPAL CODE SECTIONS 5-1 (DEFINITIONS) AND 5-7 (BEES PROHIBITED) TO ALLOW RESIDENTIAL BEEKEEPING (STRATEGIC PLAN NO. 5, 2) 1 + C MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt an ordinance amending Santa Ana Municipal Code (SAMC) Sections 5-1 (Definitions) and 5-7 (Bees Prohibited) to allow residential beekeeping. DISCUSSION In 1979, the City Council adopted Ordinance No. NS -1466 prohibiting the keeping of any hive or swarm of honey bees or any other kind of wasp or bee within City limits, with the exception of apiaries located in the city's General Agricultural (A-1) zoning district with an approved conditional use permit (CUP). Beekeeping is currently not allowed in any other zoning district. With a growing interest by the Santa Ana community in supporting the decreasing bee population and in the by-products of beekeeping, the Planning and Building Agency was directed by the City Council to research and develop code language to allow beekeeping on residential properties, similarly to those adopted by the cities of Los Angeles, New York, Seattle, Portland and San Francisco. The Changing Context in Urban Beekeeping Bees have been declining in great numbers for decades and are threatened with Colony Collapse Disorder (CCD). There are a number of factors contributing to this decline, including changing weather patterns, loss of forage, bee pests and the use of pesticides. Bees play a crucial role in our ecosystem and economy as they pollinate more than 1/3 of the world's crops. Indirectly, bees are also responsible for products like alfalfa pollination that produce alfalfa seeds, which assist in the production of meat and dairy products. By having bees within city boundaries, plants of all types will benefit and garden crops will have much higher yields. Allowing for small-scale beekeeping in urban areas is also thought to be a potential means to mitigate the effects of CCD. In light of these benefits, many communities have begun to explore drafting new or modifying existing land use ordinances and/or policies pertaining to beekeeping in urban areas. 75C-1 Ordinance Amending Santa Ana Municipal Code Sections 5-1 and 5-7 November 7, 2017 Page 2 Research and Community Input Staff researched residential beekeeping regulations and guidelines in other cities in California and other states. A summary of this research is attached for reference (Exhibit A). In addition, staff consulted with the Orange County Agricultural Commissioner, the city's Animal Control Division and local biologist specializing in bee research to discuss proposed regulations and addressed safety concerns. Research indicates that beekeeping is a use that is compatible with other urban uses, as domestic bees are typically docile and nonaggressive, and become defensive only when their hives are directly threatened. Furthermore, on August 10, 2017, staff hosted a community meeting and introduced the public to the concepts being explored by staff, as well as to receive public comments on the preliminary beekeeping regulations. In addition, staff created a survey that was posted on social media and the city's webpage and was sent via email using the city's email blast platform. A total of 143 surveys were completed by individuals. Community feedback received during the community meeting and via the online survey was used to draft the proposed beekeeping regulations. Proposed Ordinance The proposed ordinance (Exhibit B) will allow beekeeping on single-family residential properties, subject to the regulations noted on Table 1. Table 1: Beekeeping Reaulations [$uki ectI I I [Standard General Requirements No more than two (2) hives may be maintained on a single-family residential property with 6,000 square feet or less. On lots larger than 6,000 square feet, the number of hives is limited to one (1) hive for every 3,000 square feet of lot area. All bee colonies shall be kept in hives consisting of moveable frames which shall be kept in sound and usable condition. Hive Placement Requirements Hives shall be located within the rear yard of a single-family residential property. A rear yard is a yard extending across the full width of the lot between the most rear main building and the rear lot line. The depth of the required rear yard shall be measured from the nearest point of the rear lot line toward the nearest main wall of the building. Hives shall be located a minimum of 20 feet from public rights-of-way or private streets. Hives shall be located a minimum of five (5) feet from interior lots lines; provided, however, that this requirement may be waived in writing subject to the approval of the adjoining property owner(s). Hives must either be screened so that bees must fly over a six-foot barrier, which may be vegetative, before leaving the property, or be placed eight feet above the adjacent ground floor. Hives must face away from nearest lot lines. Hive Management Requirements Colonies must be maintained so as to not interfere with the quiet enjoyment of surrounding properties. A water source for bees shall be provided at all times on the property where the 75C-2 Ordinance Amending November 7, 2017 Page 3 Santa Ana Municipal Code Sections 5-1 and 5-7 [Susi _, [Standard bees are kept to discourage bee visitation at swimming pools, hose bibs and other water sources on adjacent public or private property Hive maintenance materials or equipment must be stored in a sealed container or laced within a building or other bee -proof enclosure. Nuisance Bees or hives shall be considered a public nuisance when any of the following occurs: (a) Colonies of bees that exhibit defensive or objectionable behavior, or interfere with the normal use of neighboring properties. (b) Colonies of bee swarm (c) Hives that are abandoned by resident bees or by the owner. d Bees or hives not in conformance with this Section. Penalties for Violations Any person violating this Section shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punishable as follows: By a fine of not less than fifty dollars ($50.00) but not to exceed the maximum punishment for misdemeanors, except that upon a second conviction within one (1) year of a prior conviction for violation of said subsections, punishment shall be a fine of not less than seventy-five dollars ($75.00) but not to exceed the maximum punishment for misdemeanors, and a third conviction within one (1) year of two (2) prior convictions shall be punishable by a fine of not less than one hundred fifty dollars ($150.00) but not to exceed the maximum punishment for misdemeanors. STRATEGIC PLAN ALIGNMENT Approval of this ordinance supports the City's effort to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Object No. 2 (Expand opportunities for conservation and environmental sustainability). FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP Acting Executive Director Planning & Building Agency JG:rb S:RFCA111-07-17TBeekeeping0rdinanw.cc Exhibit: A. Summary of Beekeeping Regulations in other Cities B. Diagram of Proposed Regulations C. Ordinance 75C-3 75C-4 EXHIBIT A SI IMMARY OF BEEKEEPING REGULATIONS IN OTHER CITIES 75C-5 Distance City Number of Hives Barriers Hive Position ROW Lot Lines Buildin s 6'tall barrier Face away from or 5' from all property unless hive is parallel to nearest Santa Monica 2hives per lot --- lines located 8' property lines above rade T1r. r 1- o -'w r Faces most distant outside all outside all property line, away setbacks or 15' setbacks or - --from entrances and 20' from ROW from all property 6'tall harrier walkways on lines unless hive is premises to the -Ip 6r o ax ices) - San Diego Per Distance located 8' extent possible 600" from above grade while ensuring 100'from residential entrance faces most ROW buildings not distant property line on same lot 6'tall wall, Not allowed in fence or hedge l hive per 2,500 SF of 20, front yard and S' --- unless hive is Face away from Los Angeles lot area from all other located 8' nearest lot line property lines above ground 15' from any public building 6'tall barrier Face awayfrom or if 1Y from all and any extending 10' parallel to nearest Redondo Beach a; no ore0SF of lot area; no more lot area; 15' property lines residential beyondthe roe lines property than 2colonies per lot building not on hives the same lot Face away from Not allowed doors and/or Boston 2hives per lot 10' within front or --- Optional windows if barrier is side street yard not present 25from any property line, No more than 4 hives unless 8feet Seattle on lots less than --- above grade of --- Optional --- 10,000SF adjacent lot or seperated by 6' high barrier San Francisco Must abide bythe City's nuisance regulations Only allowed to be kept for education or research for study or observation, or within a physician's laboratory or Irvine office for medical research 75C-5 100' EXHIBIT B DIAGRAM OF PROPOSED REGULATIONS Example: 6.000 Square Foot Lot 60' Sidewalk Parkway Street =Allowed Hive Area ® 6 ft. Fly Barrier ® Water Source 75C-6 LS 11.7.17 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SANTA ANA MUNICIPAL CODE SECTIONS 5-1 (DEFINITIONS) AND 5-7 (BEES PROHIBITED) TO ALLOW RESIDENTIAL BACKYARD BEEKEEPING THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The proposed amendments to Section 5-1 and 5-7 of .the Santa Ana Municipal Code (SAMC) would allow backyard beekeeping on properties developed with a single-family residence. B. Bees have been declining in great numbers for decades and threatened with Colony Collapse Disorder (CCD). C. Honeybees benefit mankind by providing agriculture, fruit, and garden pollination services and by furnishing honey, wax, and other useful products. D. Bees, via pollination, are responsible for 15 to 30 percent of the food eaten by U.S. consumers. E. Domestic strains of honey bees can be maintained within populated areas in reasonable densities without causing a nuisance if the bees are properly located and carefully managed. F. The City Council, prior to taking action on this ordinance held a duly noticed public hearing on November 7, 2017. G. The City Council herby finds that the proposed ordinance amendment to regulate backyard beekeeping shall protect the public health, safety and welfare of the City residents, and is consistent with the Santa Ana General Plan. Section 2. The proposed ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.). The project is exempt from CEQA as it can be seen with certainty that there is no impact on the environment [Section 15061(b) (3)] and a Notice of Exemption will be filed upon adoption of this ordinance. Exhibit C 75C-7 Ordinance No. NS-xx Page 1 of 7 Section 3. Section 5-1 (Definitions) of the SAMC is hereby amended to read as follows: Sec. 5-1. — Definitions Unless the particular provisions or the context otherwise requires the definitions and provisions contained in this section shall govern the construction meaning and application of words and phrases used in this chapter. (a) Animal Includes, but not limited to, birds, cats, dogs, fishes, fowl, rabbits, reptiles and nonhuman mammals. (b) Apiary means the Place where bees are kept and maintained usually in a collection of hives or colonies. (c) Bee means any stage of the common domestic honey bee Apis Mellifera (d) Bird includes, but is not limited to, budgies, canaries, cardinals, cockatiels, cockatoos, doves, finches, lories, lorikeets, lovebirds, macaws, parakeets, parrots, pigeons, sparrows, toucans and weavers. (e) Commercial kennels means any lot, building, structure, or premises where more than three (3) dogs over the age of four (4) months are kept or maintained for any purpose, including but not limited to boarding, training, or breeding, exclusive of dental, medical, or surgical care, or for quarantine purposes. (f) Domesticated animal means any dog, housecat (fells catus), livestock, rabbit, poultry or bird. (g) Dog includes any male, female, or neuter domesticated member of the species canis familiaris, but excludes other members of the family canidae. (h) Estray means any animal found running at large upon any land within the city. (i) Fowl means any larger domestic bird generally used for food and includes, but is not limited to, the chicken, duck, goose and turkey. (j) Hive means a structure for the housing of a bee colony. (k) Livestock means animals kept for use on a farm and includes, but is not limited to, any swine, sheep, goat, horse, cattle, equine or bovine animal. Ordinance No. NS-xx Page 2 of 7 75C-8 (1) Owner means any person having title to any animal, or a person who has, harbors, or keeps, or who causes or permits to be harbored or kept, an animal in his care, or who permits an animal to remain on or about his premises for thirty (30) consecutive days. (m) Premises means a parcel of land. (n) Quarantine means the isolation of any animal within a substantial enclosure to avoid its contact with other animals or unauthorized persons. (o) Running at large means free of restraint beyond the boundaries of the premises of the owner or custodian. (p) Vaccination means a protective inoculation against rabies with an anti rabies vaccine recognized and approved by the Orange County Health Department. (q) Vicious animal means any animal which has bitten or broken the skin of, or in any manner attacked or attempted to attack any person or any animal within the City of Santa Ana. (r) Wild animal means any animal which is either: (1) Not a domesticated animal, or (2) A vicious animal over which the owner has evidenced a failure to maintain control. (s) Exotic animal means nonhuman primates and prosimians (such as chimpanzees, monkeys) felids, except domesticated cats; ursids (bears); elephants; crocodilians (such as alligators and crocodiles); ungulates (such as hippopotamus, rhinoceros, giraffes, zebra); and camels. These terms shall apply whether the animal is bred in the wild or captivity. It is not the intent of this definition to include domesticated species such as horses, cows, sheep, or llamas among the animals listed above. (t) Barking dog means a dog that barks, bays, cries, howls, or makes any noise for an extended period of time to the disturbance of any person at any time of day or night, regardless of whether the dog is physically situated in or upon private property. Such extended period of time shall consist of incessant barking for thirty (30) minutes or more in any 24-hour period, or intermittent barking for sixty (60) minutes or more during any 24-hour period. A dog shall not be deemed a "barking dog" for purposes of this Chapter if, at any time the dog is barking, a person is trespassing or Ordinance No. NS-xx Page 3 of 7 75C-9 threatening to trespass upon private property in or upon which the dog is situated, or when a dog is teased or provoked. (u) Responsible person as defined in section 1-21.1(a)(1)-(5) of this Code. (v) Enforcement officer as defined in section 1-21.1(b) of this Code. Section 4. Section 5-7 (Bees Prohibited) of the SAMC is hereby amended to read as follows: Sec. 5-7. - Rees prohibited. Backyard Beekeeoin The purpose of this section is to authorize backyard beekeeping subiect to certain requirements intended to avoid problems that may otherwise be associated with beekeeping in populated areas The keeping of wasps hornets Africanized bees (Apis mellifera scutellata), and any other noxious insects is prohibited Beekeeping is allowed in the General Agricultural (A-1) zoning district subiect to the conditions set forth in Section 41-201.5 (k) and on properties developed with a single- family residence subject to the conditions set forth herein. (a) General Requirements: (1) No more than two (2) hives may be maintained on a single-family residential Property with 6.000 square feet or less On lots larger than 6,000 square feet the number of hives is limited to one (1) hive for every 3,000 square feet of lot area, with a maximum of five (5) hives whichever is less (2) All bee colonies shall be kept in hives consisting of moveable frames which shall be kept and maintained in sound and usable condition (b) Hive Placement Requirements: (1) Hives shall be located within the rear yard of a single-family residential lot A rear yard is a yard extending across the full width of the lot between the most rear main building and the rear lot line The depth of the required rear yard shall be measured from the nearest point of the rear lot line toward the nearest main wall of the building Ordinance No. NS-xx Page 4 of 7 75C-10 (2) Hives shall be located a minimum of twenty (20) feet from public rights-of-way or private streets. (3) Hives shall be located a minimum of five (5) feet from interior lots lines; provided however, that this requirement may be waived in writing subject to the approval of the adjoining property owner(s). (4) Hives must either be screened so that bees must fly over a six (6) foot barrier, which may be vegetative before leaving the property, or be placed eight (8) feet above the adjacent around floor. (5) Hives must face away from nearest lot lines. (c) Hive Management Requirements: (1) Colonies must be maintained so as to not interfere with the quiet enjovment of surrounding properties. (2) A water source for the bees shall be provided at all times on the property where the bees are kept to discourage bee visitation at swimming pools, hose bibs and other water sources on adjacent public or private property. (3) Hive maintenance materials or equipment must be stored in a sealed container or placed within a building or other bee -proof enclosure. (d) Nuisance: Bees or hives shall be considered a public nuisance when any of the following occurs: (1) Colonies of bees that exhibit defensive or objectionable behavior, or interfere with the normal use of neighboring properties; (2) Colonies of bees swarm; (3) Hives that are abandoned by resident bees or by the owner; (4) Bees or hives are not kept and/or maintained in conformance with this Section. (e) Penalties for Violations: Violation of this section shall be subject to all remedies and enforcement measures authorized by this Code. At the discretion of the issuing enforcement officer, violations may be cited as a misdemeanor or infraction. As an alternative enforcement method, Ordinance No. NS-xx Page 5 of 7 75C-11 violations of this section may be addressed through the use of an administrative citation as set forth in sections 1-21.1 through 1-21.9 of this Code. Section 5. If any section, subsection, 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, or portions be declared invalid or unconstitutional. Section 6. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be posted as required by law. ADOPTED this day of November, 2017 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:�c— Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75C-12 Ordinance No. NS-xx Page 6 of 7 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2017, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No. NS-xx Page 7 of 7 75C-13 75C-14 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING —ZONING ORDINANCE AMENDMENT NO. 2017-04 TO AMEND PROVISIONS OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS — CITY OF SANTA ANA, APPLICANT (STRATEGIC PLAN NO. 5, 3) Ct MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1e Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt an ordinance approving Zoning Ordinance Amendment No. 2017-04. PLANNING COMMISSION ACTION At its regular meeting on October 23, 2017, a vote of 5:0 (Nguyen and Mendoza absent), the Planning Commission recommended that the City Council adopt an ordinance approving Zoning Ordinance Amendment No. 2017-04 to amend certain sections of Chapter 41 of the Santa Ana Municipal Code (SAMC) regulating the establishment of accessory dwelling units. The Planning Commission recommended adoption of the proposed zoning ordinance amendment with no changes as outlined in the attached staff report (Exhibit A). DESCRIPTION Staff is proposing to amend certain sections of Chapter 41 of the SAMC to replace the City's second dwelling unit ordinance. Second dwelling units, also known as accessory dwelling units (ADUs), refer to a second home on a property with a preexisting primary home. Accessory dwelling units are seen by many as an important housing option, particularly in cities that have a shortage of housing. They offer a smaller, often more affordable option for renters, allow family members such as seniors or young people a convenient housing option, and offer important assistance for homeowners in paying their mortgage. The City's second dwelling unit ordinance, established in 2003, was superseded by changes made to state ADU laws (Assembly Bill 2299 and Senate Bill 1069) that took effect January 1, 2017, and is no longer enforceable. The proposed amendments would change the second dwelling unit ordinance to be in compliance with state law by repealing the City's 2003 second dwelling unit ordinance, incorporating new state provisions, and introducing new tailored ADU regulations that recognize the diversity of Santa Ana neighborhoods. 75D-1 Zoning Ordinance Amendment No. 2017-04 — Amend Sections of Chapter 41 of the SAMC Relating to Accessory Dwelling Units November 7, 2017 Page 2 The following provides a brief summary of the key provisions of the recommended amendments: 1. Open Space Deficient Areas - Section 41-194.5 The previously existing second dwelling unit ordinance identified areas of the city that are "open space deficient." These are areas that are more than one-quarter mile from a pocket park (a park of less than five acres) and more than one-half mile from a neighborhood park (a park of more than five acres). Properties located within the identified areas did not qualify to construct an ADU. Since the adoption of the previous ordinance, there have been new public park spaces constructed. However, the City remains well below the goal set forth in the Land Use Element of the General Plan of two acres of parkland per 1,000 residents. The proposed ordinance will prohibit the construction of ADUs in open space deficient areas using' the same criteria that were previously applied as to not place further strain on the limited parkland resources that are in close proximity to these areas 2. Parking for ADUs -Sections 41-194.11, 41-194.12 The proposed ordinance would require that at minimum .one off-street parking space be provided for a studio or one -bedroom ADU, and an additional parking space be provided for each bedroom in excess of one. To be compliant with state law (Section 65852.2(d) of the Government Code) parking for ADUs will not be required if they are within one-half mile of public transit, in an architecturally significant historic district, within one block of a car share vehicle, in an area where on -street parking permits are required but not offered to the occupant of the second dwelling unit, or if second dwelling unit involves the conversion of a portion of the existing primary residence or an accessory structure. 3. Size and Scale of ADUs - Sections 41-194.7(2), 41-194.7(6), 41-194(7), 41-194.8(1) An out of scale ADU could negatively affect neighborhood character and the privacy of neighbors. State law permits local jurisdictions to regulate the maximum size of newly constructed ADUs as long as they permit at least the minimum permitted by Building Code and do not permit units larger than 1,200 square feet. The proposed ordinance recognizes that size is often contextual. What is considered large in one area may be small in another. As such, the proposed ordinance regulates size and scale of ADUs by requiring that the ADU be no more than 50 percent of the total floor area of the primary home, excluding garages, up to a maximum of 750 square feet. As such, an ADU will always be smaller than the primary home unless the primary home is very small (less than 300 square feet). 4. Location of ADUs - Sections 41-194.7(5), 41-194.8(2), 41-194.8(3) The location of buildings on an individual parcel greatly influences the ability to develop an ADU and how it impacts neighboring properties. Zoning district standards and general provisions of the Zoning Code contain a set of development standards that determine how far back buildings must be set from property lines (called setbacks or yards), how far they 75D-2 Zoning Ordinance Amendment No. 2017-04 — Amend Sections of Chapter 41 of the SAMC Relating to Accessory Dwelling Units November 7, 2017 Page 3 must be distanced from each other, as well as several specific location requirements. These zoning standards will continue to be applicable to an ADU's location. These provisions also require a minimum 15 -foot separation between a detached ADU and primary home. The draft ordinance goes further and prevents a detached ADU from being located between the primary residence and the street adjoining the front yard, to maintain the appropriate relationship between accessory and primary structures on a lot. Public outreach and notification of the proposed changes to the ordinance was conducted in various manners. Staff held a community meeting with community groups and neighborhood association members from various districts throughout the city in November 2016. Staff also met with Community Linkage Forum (ComLink) in August and September 2017 to discuss the proposed amendments. Further, staff communicated the proposed changes via phone to various members of the community and held a meeting with housing advocacy groups to discuss the proposed changes. Generally, community members. expressed concerns regarding ADUs being constructed in areas of the city that lack open space (parks), on -street parking being further impacted by ADUs, and the impact that these units might have on the unique character of Santa Ana neighborhoods. Community comments from these meetings were incorporated into the proposed amendments. Ultimately, with one exception, members of the public at the October 23, 2017 Planning Commission meeting voiced their support for the proposed ordinance. STRATEGIC PLAN ALIGNMENT Approval of these items supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP Acting Executive Director Planning & Building Agency RS: rb S:RFCA72017\11-07-2017200 7-04 Accessory Dwelling Units= Exhibit: A. Planning Commission Staff Report B. Ordinance C. Correspondence 75D-3 75D-4 REQUEST EOR Planning Commission Action PLANNING COMMISSION MEETING DATE: OCTOBER 23, 2017 TITLE: PUBLIC HEARING — FILED BY THE CITY OF SANTA ANA FOR ZONING ORDINANCE AMENDMENT NO. 2017-04 TO AMEND PROVISIONS OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE -RELATING TO. ACCESSORY DWELLING UNITS {STRATEGIC PLAN NO. 5,3) Prepared by .Ricardo Soto PLANNING COMMISSION SECRETARY APPROVED El As Recommender) L1 As Amended EI Set Publlc Hearing For DENIED ❑ Applicant's , Request ❑ Staff I p9mmenrlation :CONTINUED TO �` -� - Acting Executive Director Acting Planni g Manao' RECOMMENDED ACTION Recommend that the City Council adopt an ordinance :approving Zoning Ordinance Amendment No. 2017-04 to revise Chapter 41 (Zoning) of the Santa Ana Municipal Code (SAMC). Request of the Applicant The City of Santa Ana is'requesting amendments to. Chapter 41 'of the SAMC, which will include Section 41-150.5 (Definitions), Section 41-194 (Second dwelling unit - Standards), and Section 41- 236 (R1 — Single Family Residence). Project Description The proposed amendments to Chapter 41 of the SAMC would replace the Citys second unit ordinance, established in 2003, with a new'accessory dwelling unit (ADU) ordinance (Exhibit1). The. ordinance will incorporate new provisions of the state ADU law (AB 2299 and SB 1.069) .that took effect January 1, 2017; and introduce new provisions to regulate the size and location of ADUs in Santa Ana while taking into account the unique characteristics'of the city. Background Second dwelling units,,also, known as ADUs, refer to a second home on a property with a preexisting primary home. Accessory dwelling units are seen by many as an important housing option, particularly in cities that have a shortage of housing. They offer a smaller, often more affordable option for renters, allow family members such .as seniors or young people a convenient housing option, and offer important assistance for homeowners in paying their mortgage. However, many existing homeowners express concerns about the impacts of ADUs on privacy, traffic, parking, and neighborhood character. EXHIBIT A 7501-5 Zoning Ordinance Amendment No. 2017.04 October 23, 2017 Page 2 In 2003,'the California State Legislature enacted AB1866, which took effect on July 1, •2003. The so- called "Granny Flat" bill instructed local governments to Include_ provisions that encourage the addition of accessory dwelling units in'their municipal codes and to remove unreasonable restrictions on constructing such units by making them ministerial in nature. The bill hadbroad support from a variety of.constituents and.sources and has been lauded as a'means of improving affordable housing stock throughout California, In response to AB1866, the City Council adopted Ordinance No. NS 2629, amending the Santa Aha Municipal Code (SAMC) regarding second dwelling units in accordance with the changes made at the state level. The ordinance allowed for second dwelling .units to be constructed In residential zoning districts provided development standards„ such as. parking, lot coverage, setbacks, and unit size'were met. While state legislators and proponents of the Granny Flat bill.. had anticipated'an_ influx of second dwelling units to help alleviate.the shortage of affordablehousing in the state, individuals trying to construct these, units often -faced what legislators perceived as' prohibitive` local regulations that discouraged, their construction. To ease and streamline the perceived prohibitive local regulations, state legislators approved Senate Bill 1069 (SB1069) and Assembly Bill 2299(AB2299) to amend Section 65852.2 of the Government Code relating to second .dwelling units, or ADus (Exhibit 2): The amendments are. intended to further reduce the barriers :to constructing these units, to help combat the complex housing shortage problem, and to increase the number.of affordable housing units while preserving the character of residential neighborhoods. The amendments took effect January 1, 2017, and due to several sections of the City's previously existing second dwelling unit ordinance conflicting with SB1069 and AB2299, Santa Ana's local ordinance wail superseded by state taw and is no longer enforceable. The proposed ordinance would change the City's second dwelling unit ,ordinance to be in compliance with state law by repealing the City's 2003 second dwelling unit ordinance (Section 41 .194 'of the SAMC), incorporating the new state provisions, :and introducing new tailored ADU 'regulations that recognize the diversity of Santa Ana neighborhoods. New State Accessory Dwelling Unit Law The new state ADU law (effective January 1, 2017) preempts'a local jurisdiction's ability to regulate, aspects of ADU location and development. Local ordinances must adhere to the following standards: • Approvals must be "by right"'or ministerial in nature. • No passageway (unobstructed pathway extending from a street to one entrance of the accessory dwelling unit) shall be required in conjunction with the construction of a ADU. • No setbacks shall be required for an existing garage that is'converted to an ADU 75D-6 Zoning Ordinance Amendment No. 2017-04 October 23, 2017 Page 3 Existing accessory structures, when converted to an ADU, are permitted without additional restrictions provided the structure has independent exterior access and side and rearsetbacks sufficient for fire safety. Parking standards are limited to no more than one space per ADU or bedroom, with required parking permitted to be a tandem space in an existing driveway. Parking standards for new ADUs are reduced to zero spaces under certain circumstances (within 1/2 mile.of public transportation, located in an historic district, is part of an existing primary residence,.or if a car -share vehicle Is located within one block). When a garage, carport .or covered parking structure. is demolished in conjunction with !the construction of an ADU, the replacement parking spaces may be located in any configuration on the some lot as the ADU, including, but not limited to, covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. Key Issues Open Space Deficient Areas The previously existing second dwelling unit ordinance identified :areas of the city that are "open space deficient" These are areas that are more than one-quarter mile from a pocket -park (a park'of less than five acres) and more than one-half mile from a neighborhood park (a park of more than five acres). Properties located within the identified areas did not qualify to construct an ADU. While a vast majority of the city that was considered open space deficient was within commercial and industrial areas, there were pockets of residentially zoned properties which met the open space deficient criteria. Since the adoption of the previous ordinance, there have been'new,public park spaces constructed. However, the City remains well below the goal set forth in the Land Use Element of the General Plan of two .acres of parkland per 1,000 residents, which is a relatively conservative standard when compared to the National Parks and Recreation Association recommendation of 2.5 to 5 acres of parkland for every 1,000 residents, The proposed ordinance will prohibit the. construction of ADUs in open space deficient areas using the same criteria that were previously applied as to not place further strain on the limited parkland resources that are in close proximity to these areas (Exhibit 3). For unique circumstances where lack of open space can be mitigated; a minor'exception may be applied for and the request analyzed. Parking for ADUs Parking has been a topic of concern, especially from community members that live in neighborhoods with limited available on -street parking. The proposed ordinance would require that at minimum one off-street parking space be provided for a studio or one -bedroom ADU,-and an additional parking 75D-7 Zoning Ordinance Amendment No. 20117-04 October 23, 2017 Page 4 space be provided for each bedroom in excess of one. To be compliant with state law (Section 65852.2(d) of the Government Code) parking for ADUs will not be required if they are within one-half mile of public transit (Exhibit 4), in an architecturally significant historic district, within one block of a car share vehicle, In an area where on -street parking permits are required but not offered to the occupant of thesecond dwelling unit, or if second dwelling unit involves the conversion of a portion of the existing primary residence or an accessory structure. As,such, the proposed ordinance includes an exception for those units that qualify for a state mandated parking exception. Regulating Size and Scale of ADUs The size and. scale of ADUs is also a source of community concern, An out of scale.ADU could negatively affect neighborhood character and .the privacy of neighbors. State law permits local jurisdictions to regulate the.maximum size of newly constructed ADUs as long as they permit at least the minimum permitted by Building Code -and do not permit units larger than 1,200 square feet. The proposed ordinance recognizes that size is often contextual. What is considered large in one area may be small in another. As such, the proposed ordinance_. regulates size and scale of ADUs,-by requiring that the ADU be no more than 50 percent of the total floor area of the primary home, excluding garages, up to a maximum of 750 square feet. :As such, an ADU.will always be smaller than the primary home unless the primary home is very small (less than 300 square feet). By adopting this .standard, the proposed ordinance would ensure that size and scale of ADUs is regulated in a manner that is tailored to the unique characteristics of individual residential neighborhoods. Regulating the Location of ADUs on a Lot The location of buildings on an individual parcel greatly influences the. ability to develop an ADU and how it impacts neighboring properties. Zoning district standards and general provisions of the Zoning Code contain a set of development standards that determine how far back buildings must be set from property lines. (called setbacks or yards), how far they must be distanced from each other, as well as several specific. location requirements. These zoning standards will continue to be applicable to an ADU's location. These provisions also require a minimum 15 -foot separation between a detached ADU and primary home. The draft ordinance goes further and prevents a detached ADU from being located between the primary residence anis the street adjoining the front yard, to maintain the appropriate relationship between accessory and primary structures on a lot.. However, AB Mb reduces allowable setback provisions across the state in the following cases: when existing garage buildings are converted (zero feet), and when any other existing square footage is converted to an ADU (as necessary to protect life -safety), 75D-8 Zoning Ordinance Amendment No. 2017-04 October 23, 2017 Page 5 Public Notification The proposed amendments are citywide and the project site is not located within the boundaries of one single neighborhood association. Public outreach and notification of the proposed changes to the ordinance was conducted in various manners. Staff held a community meeting with community groups and neighborhood association members from various districts throughout the _city irr November 2016. Staff also met with`Community Linkage Forum"(ComLink) in August and,September2017 to discuss the proposed amendments. Further, staff communicated .the proposed changes via phone to various members of the,community and held_a "meeting with housing advocacy'groups to discuss'the, proposed changes. Comments from these meetings will be: summarized and presented to the Planning Commission at the scheduled public hearing. In addition, a notice was published in the Orange County Reporter. At the time of'this printing, electronic correspondence pertaining to the proposed changes has been received from various members of the public and is included with this- staff hisstaff report (Exhibit 5). CEQA Compliance In accordance with the California Environmental Quality Act (CEQA), the recommended action is exempt from CEQA per Section 15282(h) of the CEQA "Guidelines. This exemption applies to the adoption of,an ordinance regarding second 'units to implement the provisions of Sections 65852:1 and 65852.2 of the Government Code. Statutory Exemption No. ER 201.7-129 will be filed for this project. Strategic Plan Alignment Approval of these items supports the City's efforts to meet Goal No. 5 (Community Health, Livability, Engagement & Sustainability), Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). Conclusion The proposed action would amend several sections of the Santa Ana Municipal Code. Based on the analysis provided within'this report, staff recommends that the Planning Commission recommend that the City Council approve Zoning Ordinance Amendment No. 2017-04. Ricardo Soto Associate Planner RS:jm SuM29171IU-23-17RQA17-131 Acccrcry q-XeI ing Units. pc 7501-9 Zoning Ordinance Amendment No. 2017-04' October 23, 2017 Page 6 Exhibits 1. Proposed Amendments to Chapter 41 2. SB 1069 and AB 2299 3. Park Deficient Areas 4. Transit Proximity Map 5. Correspondence 75D-10 ZONING ORDINANCE AMENDAIENT NO. 2017-04 PROPOSED MODIFICATIONS Strike -out is deletion Underline is addition Derinitioiis 'Sec. 41-150.5. - Seeeutl Accessory dwelling units. An seeom# accessory•dwelling unit is an attached or a detached residential dwelling unit which provides complete iiidcpendenl-living facilities (or one or more perspns and includes permanent provisions for living, sleeping,.eating, cooking, rind sanitation on. tlic sante parcel as the single -tinnily dwelling is situated. It sliall have the same meaning as " as that term is defined in California Government Code section-6i4S42r2(i)(4), as it may:Ue amended from time to tiinc. Use Districts - General Provisions See -,41-194:. Seeond-dwe1}it G unix.. eR r-�-.tt;�ukmis uses-arc-perxtilk�d;an-�.e-wttx�xe-t+1-sttrgte-iamuy,uti�.uu�ng (a)—No-second-dwel ' atfel Wtieh-the-city-has designated-a-delicieat-ix- j3tibkie-eperrspae�ns=shotk•n-ori-the-niap-cntitted�'�reas er(Dpen Spijee L)ef ejeney arrfile-avith-the clerk cif llre ceuneil: (h) The�csond-<1welliltt a b, me, le-, han three'�•'.�__difed (400)-square-€eet; (e) The seem; (725"9) sgtt e feet-or-thirty-(zU)-per-ct�#-c�1=1 en the -square-lbY " I -not (e)-Fhe-size-aad-location-of-44rc seeend (Woulliag unit shall .et-- the--areel-te-be re"ved below e -ketal of ijxe hetrstxd H+ -o lxrriiared-(l,2UU)-squtire-Feet-ci�usal�le; e.:•-�ix�; t;ex-fient��ard-open-space,-uxeluding-driret�-wand-per'.'.ny open -space caitlt-a-ruinimnttrclit_fi}en i,.� 01,1i fl ell n c feet b,, deerned�intinuotis. I EXHIBIT 1 75D-11 e tiont�rrrd setl�acl: shall-hc tlot-less-tlian-twenty-(20}- t f-a�,,je • ..'kall�t��[�:-wttH-the-prcivisietis-of-secEions ��,�;eh-side-jar�l�ha(!-leo-a-�uiniinutn-of-five-{�}-feet-for-the-sees ,� .,...;,amu P(WHera.''• ""' sids yard mi llt e-1tn4-be-"4ttiuium-of-teii-(4weet: (h)--Tho-year-yard-shall-be:a-mi nimuin-o€ten~eet; dwelling.nit, (r})---'FHe�seafld�'elli,tb un#t-shill-riot-he-a-trailer-cnach,-t'CCl'entieflnl .::-;ne}>ite ......... .... .1..,.... t.,....- .. -e , .l- . 7ill qWte , .. he--�ln.-�=-�o��,�t, -- - - --__.. ............._,. .. ....;x+s •-kistarie resourco--on-tho-parcel,—unless-niterations-te-fhe-ex' 'V eolifbmlthe U.... ' States: , of=lntu iers nfticinl Standerds owl=reaHnent of w7.,t....:,. D.,....,..•• 2 75D-12 n. .,,. Va., -1 n ;1.....:t""Ian�ing-mdi.iager-a-recorded E�e-Hwile,�n .....•...., .. .• t.-..c-�-:+„vrr.r.�*r* Covenant, iii it Pam appH-ed by !be ey�+€Fi��tiitg tt�d cHraseiilitig Elfak eirile.-he . l.vc::: g ::cit -e oecupiedr �.�jG-.qen-a-pi reel-W-1icli-is-already ttyit�ottld-ereatezt-non-conformiEy-Eo-ikiis-eNapter: erTieliti 1i0fI44” this seetiHt%-wkiekrtnfty-ie�ede (1) All c w appt•twed-pursuant-to-sect ion -41-194: s tar -) dwelling -unit -(iv Appeal; froth-Eime-to-tithe; the-city-council-sha{l-ny-orditiaiice-or-resoltttietresEt+l3lislrttppiepn;�te geu. 11 ... Seeond dwelling, 0 o r rl�tiiltf administratci� deeisien. Any-person-aggrieved-E>ra-doteriili nation-of-the-planning-manager-4"isappFevE-pkins tipti� ttion-fi3r-a-tninor-eci prion whieh shall be lieriFd by the zoning, dmj�stFatef ..taint to AtAcle• . - . appkieatioo-may-tnektde-a-reoitest-to-v_ary-froth-the-standards-Hf-seette .. . .3 75D-13 Scc. 41- 194.— Purpose; The purpose of this section is to provide re'lsonablc rceulatioas for (lie developnicnl of accessory dwelling units on residentially zoncd oropertics on lots developed or proposed to be developed with single-family residential d+vcllines 'Such reeulations are intended to III itipLe otcutial impncts to neighborhoods and comply with the goals •md policies of the CbLs G6nerit Plan and comply, with requirements codified in the state Planning, and Zoning Law related to • ceessory dwellin�,- units in residential areas including, Cnlifomia Goycmmcnt Code section 65852.2. Sec. 41-194.1 - Definitions. As used in this section, the [iallowin words, (elms or phrases hnve the following,; meanihes. (I) "Attached accessory dwelling, unit" means a residential dwelling unit that is (2) (4) ordinance. (5) "Living aired' is defined as the interior habitable area ol'a dwelling unit but lot including a garage or any accessorvstructure (6) cook ine.'and samitntion facilities occupied and intended fir one hciusehdld See. 41-194:2 - Applicability. (1) The development and desigia standards in -this section shall he avolicable to all accessory-dwelliiu=_ units. (2) The Director of the Pl anni»s and Building Agenc} or his/her desig,nce, shall review kind approve or (Icily ministerial -permits for accessory dwelling units 75D-14 conforming -to the titre limits specified M(jjot,cLjjjjcjjt Code Section 65852.2 or successor provision. Sec 41-194.3 - Non -conforming Status. (1) Accessory dwelling units may he permitted on parcels which are non -conforming to this chapter, with exception ol'minimuru lot size provided they do not erette any new non -conformances. (2) A parcel shall comply widr the current parkbw standaeds, of this ch5pter 6rior to sir concurrent with the est•rblishment of an accessory dwelling unit:. Sec 41-m.4 Permitted Zones Accessory dwelling, units are ponnitted in the til; R2. 113, R4, Sec. 41-194.6 - Use Restrictions. (1) An accessory dwelling unit msry lie developed on a lot that either: (u) bmlains one legally established single-family residence; or (b) (2) Only one accessory dwelling unit may be located on the lot. (3) The accessory dwelling Unit shall not be sold separately horn the primary dwelling. (4) The acwsso cfwcllii unit shall not be rentcd'for periods of less thau 30. 86 (5) (1) Minimum Lot Ai -ca. A minimum lot area of six thousand (6'000) square feet shall be required in order to establishui �ccassory dwelling unit. (2) Maximum Sire The maxinwm size of an accessory dwelling unit living area shall 5iot ekceed seven hundred fifty 750 s(I are feet or tifly_(50 "/a)_pereeut of 75D-15 (3) the size of the living area of the primary dwelling unit on the parcel whichever is less. (4) Lot Cc chanter. district. (5) Selbacl AMLI ica] (6) Design. adiaccil dwellnl and TOO. (7) HistoH4 (8) Yassagmay. No passageway shall be required in unliunction with talc extembi, li-om a street to one entrance of the accessory dwellili 'tit_ the too of the structure. dwelling unit to the nearest wall of the accessory dtvellin>_' unit or attached structure. G 75D-16 (3) and size: Sec 41-194.9 Develoyiueut Standards — Attaclted Accessory Dwelling Units. Attaclied accessory dwelling nllits S11all comply with all provision nl Sec, 41-194.7in addition to the following: (1) Maximum Height The height of an allnelied accessm dwelling unit shnll not exceed the height limit a,ilied to a lirimary dwelling unit iii'the underlying. zoning district. (2) Exterior Stairs An attached accesstwv tlwollin€ unitshall have no exlcrior stairs. (3) froth the street. requirements: (1) (2) (3) Dlinbnum Size Is no 'lees than the minimum 220 square feel in living arca remtired for an offi6ency'dwelling gait ns�ticfined in Section 17958.1 of the Health & Safety Code; (4) Setbi&s The side and rear setbacks comply with buildotg code Provisions related to fire safety; (5) dwellina; and (G) 75D-17 (l) One (1) narking spnce per bedroom A minimum ol'onc (1) parkina space shall be, provided for the accessory dwelling will (2) same lot as the accessory dwelling unit including but not limited to as cxnered spaces, uncovered spaces tandem spaces or by the use of mechanical automobile parkme lifts. (1) The accessory dwelling unit is located within one-lialb"ile of 6ublic transit For' during, peak commute periods (2) The accessory dwelling uliit is located within mi historic district, '(3) The accessory dwolline unit is part-ol'lhe exisLing &im ary dwellin-, or 1n existing accessory structure. (4) What on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (S) "Wen there is a cur share vehicle located within one block of the accessor and available to 4he public (1) 'rile accessory dwelling unit shall not be sold separately from the primtny dwelling. (2) The unit is restricted to the auuroval size and attributcs_ofthis chanter• 75D-18 (3) 'rhe covenant restrictions run with the had and Inay be enforced against future. purchasers. (4) The covenant restrictions may be removed if the owner eliminates the accessciry dwelling, unit. (5) the nronerty owner to e mtily with -the covenant restrictions may result in Icgal Article V. Use Districts — Regulations Specifically Scc. 41-236. - Rear.yards in the ltl district. There shall he a rear yard setback of not less than twenty (20) feCt. This -se �l .a�,n„y to legid seeend-dwelling-units: 75D-19 ari. / 1,GISLr1T1VL lNl'ORn171TION Home Bill Information California Lav; Publications OEher Resources tiny Subscriptions My Favorites iiHAR,ETl41.9i in 5§; AB -2299 Land use; housing: 2nd units. (2j)js aub) MsCll bly Bill V0. 2299. GI L10TEK 735 An act'ti)'amend Sectlon 65'85L2',' f the- vernmer t-Code,,relating to.land,use:. I,Approyed b•y Governor S-plb6mber27, 2016: Flied with Secretary of'State September 27; 2016. j CEGTSLATiVE'COUXTSEL'S 1)[GE9T AB 2299, Bloom. Land use: housing: 2nd uni is. The Planning and 7_oning Ln i auti orizes the legislaflve'body ofa tity.or.county to regulatP, ameng.bthei things, the Intensity of land use, and?Iso authorizes a focal agency to provide: by ordinance for ,creatlon'of2nd'units In single-ramily :and niultIf6mlly residential zones, as specified. Existing law authorizes�'.the ordinance to designate areas within the jurisdiction of the local agency -.-.,here 2nd units may be perrnitted,:to impose specified standards on 2nd units,and to provide that 2nd units do not exceed allowable density and'are a residential use, as specified. This hill would replace theterm "second unit" writh "accessory dwelling _unit." The bill v:auld,.instead, require the: grdtnance.to include.the.alements described above andwould al.+o mquirethe ordinance to require accessory dtrelling units to comply witll specified conditions,, This bill would require ministerial; nondlscl;etlianary, approval of an:accessory duelling ,unit under an existing ordinance. I'he b111.viould alsri specify,thata 16 al•anency meV reduce or eliminate parking requirements fvrany accessory .dwelling unit located within its juriidlctidn. Existing law requires -that parking requirements for 2nd units nut exceed one parking 'space per unit or per t eclroom. Under existing laid, additional parking may be -required. provided that a finding is made that the additional parking requirements are di ectly related to the. use. of the 2nd unit and are cnn-si_stent,with existing' neighborhood standards.appl)catile to residential dwellings. This.bill would delete theabove•described authorization for additional parking requirements, By'increa'sing the •duties -of local officlals with respect -to lOrld L196 regulatlOns, this bill would lirfpose:a state - mandated local program. This 6111 would incorporate ocklidonal changes in' Section 65852.2 of the,G66ernment Codw proposed by SB LOG9 that would become operative only'(f 58.1069 and: this. bill ;are both chaptemd and Become effectroe,on or bPfore. January 1, 2017, and this Bill is chaptered last, The California Constitution requires the state to reimburse local agencies and school districts for certain costs maiidated by the state. Statutory pi'oJlslons"establlsll procedures for making that re lmburserrieiif. This bill would provide that no reimbursement is'required 'by this act for a�spec;hed reason. :rote: iiiajiirity Appropriation: ao Fiscal Conlrfilttee: yes Local Prbgraiir: yes EXHIBIT`2 75D-20 THE PEOPLE OF THE STATE OF CALiFORNIA DQ ENACT AS FOLLMS: SECTION 1. Section 65852:2 of the Government Code Is amended to read: 65852.2 (a), (t) A local agency may, by ordihance,,,provide for the creation of"accessory dv+ciling units in single- farnily and multifamily residential zones. The ordinance shall doalfof the:folloivinn: (A) Designate areas Within the jurisdiction of the local agency.where.accessory dwelling units may be permitted. The designation of areas may be based on criteria, that may Include; but are not limited to; the adequacy of water and sewer services and.the impact of accessory dowelling units on traffic flow and pUpllc safety. (B) impose standards"on accessory d•r'jelling units _that"include, but are not limited to; parking, helyht, SeLback, lot coverage, landscape, architectural rovicw, maximum we of a unit, and standards thatprevent adverse impacts on,any real property that Is listed In the California Register of Historic Places. (C) TJotwithstandiiig. subparagraph (0); a local agency may [educe' or,611mihate parking na ulremenksJor "any accessory dwelling unit located within Its Jurisdiction: _ (Q) Provide that accessory dwelling units (1o'hot, imded'.the ollgwanle density for the lot upon which the accessory dwelling•unit isJocaled, and that accessory dwelling units'are-a residential Use that Is camsistent with' the, existing general plan and zoning designation for the lot. (E} Require the accessory,; dwelling units to comply',vith all of the folloedrig.: (i) The,unit is not intended.for sale separate from.the primary residence:and may :be rented: (it) The lot is. zoned for 46 le -family or multifamily use. (iii)jhe"accessury dwelling unit Is either attached to the existing civaelling or located within thelivingarea'of-the existing dwelling or detached from the existing dwelling and located on thesanle lovas file existing dwelling. (iv) The' increased floor area :of -an attached, accessory d,tielling unit shall not exceed 5U.percent,of Lhe' existing living area. (v) The total area of.flgorspace for a detached accessory dwelling unit shall hot exceed 1,200 square feet. (vi) No passageway shall be required In conjunction with the construction of an accessory dwellingunit: (viq No setback shall be required For an existing garage that Is coroi&1.6d W a accessory dwelling unit, find a setback' of no more than five feet from the side and rear lot lines shall be required for an acc?ssory darelling Unit- that nitthat is constructed above a garage: (viii) Local huilding codc:rcquirements that appl% to detached dwellings, as appropriate. (ix) App: oval by the local health officer where a private sewage disposal system Is being used, If required.. (x) (1) Parking requircinents for accessory duvelling units shall nof.exceed one parking space per unit or pe'r bedroom. These spices may be provided as tandem parking on,an.existing 'driveway. '(If) Offstrect parking shall bepermitted in setback areas in locations determined by the local agency or"through' tandem parkirig, :unless specific findings are made that parking in ,setback areas or tardem' parking is not feasible based upon specific site or regional topographical Tor fire and life safety -conditions, Or that it is: not permitted anywhere else In.the. jurisdiction. (xi) When a garage,"carport, or covered parking, structure 'isdemolished In cbnjunction:wlhh lhe•corn;Cuctloh'or an accessory dwelling unit; and the local agency rcquires`that those offstreet parking spaces l e replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit,. inctudfng, but not Ihnited to, as covered spaces, uncovered. spaces, .or tandem spaces, or by the use of mechanical automobile parking -lifts. (2) The ordinance shall net be considered in Lhe application of any local ordinance" policy; qr program to Ilmit residential growth. (3) When a. local agency recoives its first application on or after July 1.. 2001, fill- a permit pursuantto this subdivision, the application shall be considered' ministerially without discretionary review .Or a hearing, 75D-21 n6hvithstandlnd Section 65901 or 65906.6r any local ordinancetregulaLlhg the Issuance of variances -or'special use permits; Within 120 21'!.ys,afiet receiving"thd applicafion.. A local agency may charge.a fee to'reimburse it fair costs that it incurs as a result of afnendmcnts to this paragraph enacted during t1.he 2013]-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance. that provides -for the.creation of - accessory, dwelling units, (4) Any existing ordinance goderning the:creation of accessorl dwelling uniLs by a local agency'or.any such ordinance adopted by a local agency subsequent to theeffective date of the act adclinoihis paragraph shall provide an approval process that includes only ministerial provisions for the approval ofaccessoty clwelling units and shall not include any discretionary processes, provisions, or requirements' for those units ,except as otherwise. provided In this subdivision. fn the cventthat a localragency has an existing accessory. dwelling unit ordinance that fails to meet.lherequir'ements of this subdivision, that -ordinance shall be null and void upon the effective' date of the act adding this paragraph and that. agency shall thereafter- apply the: standards established in this subdivision for. the approval of accessory dwell{ng. units, unless and; until the agency adopts an ordinance. tliat complies with this section, (5) No-otiier local ordinanco, policy, or'regulation shall be the basis for"the 'denial of a.buliding, period or a use permit under this subdivision. (6) This subdivision establishes the maximum -" standards dhaL.local agencies -shall usezto evaluate proposed iccesory -dwelling units onlots:zoned for'rosidential use that contain an existing "single-family dwelling. -No addlki6nal standard,, other than those provided In this subdivision, shall be utilized or Imposed," except th"ata local,agency may require,an applicant for a peirrnk Issued pursuant to this s ihdivision to be;ah`owner-occupant. (7) A local (agency may amend its zoning, ordinance or general plan to incorporaLe the policies, procedures, or, other :prcvisionc;appiicable to'the creation or accessory dwelling units,ifAliesc prdvisions are consistent with _the limltationsor this subdivision. _ ' (8) An accessory dwelling unit that conforms to this subdivision shallbe deemed ,to bean accessary use or an. accessory building and shall not be 'considered to exceed -the>allowable density for.the lot upon which It is< located, and shall be'deemed to be a residential lisp. that is consistent with the existing general plan and zoning' designations for the lot.'The accessory dwelling; units shall net be in the -application of any local oixlinahce, policy, or program to Ilrnit rzsideritial growth. (b) when a local agency that has not adopLed an ordinance governing, accessory dwelling, Units In accordance with subdivision (a) 'receives Its first :application on or after July -1, 1983, for "a .permit ,pursuant to this subdivision, the )ocal agency shall accept the.application and approvd.;or disapprove the appllcatfori ministerial{y withogtdlkictionaiy review pursuant to sub�diyisipn (a) within 120 days alter receiving Ida lappticIation. (c) A local agency may establish minimum and maximum unit size requirements for beth attached and detached accessary doielbng •units. 'No mininfdm or maximum size fa, a" accessory dwelling unit, or size based upon a percentage of the uisting dwelling, shall be.'established by ordinance'fo, eltha:r attached or detached dwellings that does not permit, at least an efficiency unit to be.,constructed In curnpliance viith local `development. standards.. (d) Fees charged for the construction of aceessoYy (livening units shall be determined In accordince with Chapter 5 (commencing with Section 1166000). (e) This section does not limit the 'authority of local agencies to adopt less restrictive requirements for the, 'creation of accessory dwelling units, provided those requirements comply.wllh subdivision (a). (f) Local agencies -shall a copy of the ordinances adopted pursuant to subdivision (a) to the Department. of Housing and CornrnunllyDevelopment !wRhln'66 days after adoption, (g), As used in this section, the following terips nican: "(1) ".Living area" means the Interior habitable area of a dwelling unit including basements and.ettics but. does not include 7 garage orany accessoa'ysti:ucture. (2) "Local agency" means a city, county, or city and counLyi. whether general lavy or chartered. (3) For purposes of this section, "neighborhood" lies the same meaning as set forth in Section;€+5589.5. 75D-22 "til) "Accessory dsyefling unit" means an attached or a detached residential' dwelling unit which provides complete Independent living factlitie5: for one or more, persons, It shall Include permanent provisions for living, sleeping) eating, "cooking, and sanitation on Che same parcel,a5 Che single-family dwe.1169 is situated. An accessory dwating.unitalso Includes the follmving;. (.A) All efficiency Unit; as dzfined In Ser-tion`1795BA of Health.and.5afatr+ Code. (B) A.manufacLured home;,,as'denned in Section 18007 of the Health and Safety Code.; (C) '•passageway" means a' pathway that is unobstructed dear j6 the sky and extends from a str'ect to one entrance, of the accessory dwelling unit. (h) Nothing inAhls section shall,be.c6nstruad to supersede or in any way.alteror lessen the effect or:applicattnn of Lhe California Coastal Ac,. (Division 20'(commencing with Section 30000) of the Public Resources Code), except that the local government shall not be. required to hold public_ lfearings, forcoastal development permit applications for accessory dwelling.units. SEC.A:5. Section 65852,2W tile Government Code is amended to read; 658522.:(x)'(1) la local agency ini by ordinance, provide forr-the creaLion of accessory dwelling units in single- family and multifamily resfdenllal zones The ordinance ;,hall do;all of the following; (A) Designate rheas within the. jurisdiction of the local agency where accessory:dwElling units. l7hay,lie permitted, Thc,dsrgnallon of areas ina/ 1.be based on:critErra, that. may intlude,.,buhare not limited.to,, Lhe adequacy of`. water and sewer seryice,a and the Impart of accessory dwelling units on traffic flow and'pub8csafery, (B) (i) Impose standards -an :accessory. dwelling units- that include, but are not limitetl to, Parking, height,. setbacki lot coverage, landscape, architectural review;: maximum size of a unit, and :standards that prevent. adverse Impacts on any real property that is listed in the California Register of Historic Places;. (11) Notwithstanding clause (i), a local agency may reduce'or'elirihinate parking requlren"l For any "accessory dwelling unit located.witlhih Its jurisdiction. (C) Provide .that accoss6ry dwelling units;do bot exceed the. allowable density for the Int upiin L,.-thc accessory dwelling unit is located, and that accessory dwelling units are a residential use that Is consistent with the ezisling general plan and zoning designation for the IOL. (o) Require the accessory dwelling units to Comply with all of thesollod;in9t (i) Tile unit isnot intended for sale separate from.the-prlmary residence and may be rented: _(li) The lot is z,ned for single-farnily or multifamily use and,containe all existing, single-family, dwelling. (lit) The accessory dwelling .unit is either att,iclhcd to the existing dwelling or located within the living area of the existiriy dwelling or'det2died from the exlstiny.dwelling and located on the same lot as the existing dwelling. (if) The Increased floor area of an attached accessory dwelling unit shall not. exceed 59 percent of• the-existln<j living area, with a maximum increase in floor area of 1,200 square feet. (v) The total area of floorspace for a detached accessgry dwelling unit shall not exceed 1;200 square feet. (vi) Nq passag2way shall be.require8"in conjunctlon '-with the.constrliction of awaccessory dwelling unit. (vtl),No setback shall be -required For an existing garage that Is convertod to a accessory dwelling unit, and e setback of no more *,hall five feet from the side and rear lot lines shall be required for all accessory dh4elling unit that is constructed above a,garage. (viii)Local building code requirements that apply to detacheddwellings, as apPropriate_ (ix),Approkal by the local (health Off)cer where a private sewage disposal system Is being used, if required, (x) (1) Parking requirements 'for, accessory dwelling units shall not exceed and ill space per unit. or per bedroom. These spaces may be provided as tandem parking on an existing driveway. (II) offstreet parking shall.be permitted in setback areas in locations. determined by the local agency or through tandem parking, unless specific findings are made that parking In setbark areas or tandem parking is not 75D-23 feasible. bass id upon specific site'.or regional ,topographic_ al -or fire and life safety conditions, or .that It Is not pormitted anywh -re elserin the jurisdiction. (111)'Tliis clause. shall not apply to a unit that is described in subdivision (d), (xi) When garage, carport, or covered par king;structul c is,demollshcd in conjunction with the• construction of 'an accessory duelling unit, and the local -agency requires that those pffstreet parking'spaces be replaced, the replacement "spaces may he located in any configuration on the same lot as the accessory dwelling unit; 'including, but not Ilmited to; :as covered spaces, uncovered spaces,. or tandem spaces, or by the use' of mechanical automobile parking lifts. This clause shall not apply to unit that is described in subdivision•(dj. (2) The ordinance shall not`be considered in Lhe,application-of any local ordinance, policy, or program to limit residenttal growth: (3) When -a local agency receives its first appllcaflOn on 'or after July 1, 2003, for a permit pursuant to this subdivision, the. application shall be considered ministerially wi,thout discretionary review, or a hearing, notivlthstanding Section 65901 or 65906 or:any aueal ordinance regulating the issuance of vartances,or special use permits,, •within 120,days after receiving the application. A local agency may 'charge a feeto iGimbilrse It for casts that It Incurs as.aresult of amendments to this paragraph enacted during Lhe 2001-02 Regular Sesslorl of the Legislature, lhcluding the costs of adopting,or amending any ordinance% that provides for. the creat ion of an ,accessory dwelling unit. (4) An existing ordinance governing. the creation of.an'accessory dlVellinid milt by, "a local agency or an.acces.sorIy dwelling ordinance adapted by a local agency subsequent to the effectF✓e date of the act adding this:pangraph- shall provide an approval process thbt includes only -ministerial provisions' for the approval of accessory tiv:ellbtg units and shall not Include any disEi'etionary:processes, firoVfsions, or requirements for those units, "except as otherwise provided in thls subdivision. In the event:that a locaj agency has -an existing accessary. dwelling unit ordinance that fails•to meet the requirementso rthis subdivision, that ordinance shall tie null and .void upon the% effective irate of the act adding this paragraph -and that agency shall thereafter apply the stardards'established in tfils*subdivisiori for theapproval of accessory dwelling units, unless. and' until,the agency adopts an: ordinance thak'i:,ompliesavith this_sdction, (5) No other local ordinance, policy, or regulation'shall be the basis, for the denial of a building permit or a use perrrdt.Undor this subdivision. (6) This subdivision establishes the.,maximurn standards that lo_cai.agencies 511,411 use to evaluate a proposed accessory duelling unit on a lot zoned for resloantial. rise that, contains ad 'existing single-family dwelling; No 'additional standards; other than .those ,provided in this subdlVision, `s11'111.be utiliied o1' "Imposed, except ttiat a local agency may require an applicant for a permit issued pursuant to..thfs"subdivision to be an owner=occupant or that the property be used for rentals of terms longer than 30 days. (7) A local agency may "amend its zoning ordinance 0 general plain to Incorporate the' policies, -procedures; or other' provisions applicable. to the creation af;an accessory duelling unit if these provislons are consistent •riith the limitations of this subdivision,' (B) An accessory duelling' unit that corifornis'to_ this subdivision Shall be deemed to be an accessory use•or.an 'accessory building and shall not be ronsideted. to exceed the allowable de'nsity:for the lot upon which it is "located, and shall be deemedtobe a residential usethatis corislstent+eiltti the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of zany local ,ordinance; policy, or program to limit' residential growth. (b). When a local agency that has not adopted an ordinance governing accessory d -welling units in accordance With subdivision (a) receives as first applicatlon an or arter-July 1; 1903; for a permit to create an accessory dwelling unit pursuant to this suLdivision; the local agency shall .accept the appllcation 'and approve or disappro4e the applIcatiod ministerially without• discretionary review pursuant to subdivision (a) within 12a. 'days. after rerelving the application: (c) A local agency may establish minimum and maximtnn unit size requirements fpr both attached and detached accessory doveliing.units, No minimum or maximum size for.an accessory dwelling unit, or size based upon a porcentago,of the existing dwelling, shall bz.est,iblished by ordinance for either attached or detached dl4ellings that does not permit at least an efficiency Unlit to- be constructed in compliance with local :development standards: Accessory dwelling units,shall not he required to provide Fite sprinklers if they are not required for the primary residence. 75D-24 (d) Notwithstanding any other law, a. local agency, whether or not lit has adopted an ordinance governing accessory deaelling.units in accordance with subdivision (a), shall not impose parking standards furan accessory ,dwelling union any of the following instances) ,(I) The,accessory dwelling unit is located k'4iiin one-half mile'or public transit. (2) The accessory dwelling unit is located within an architecturally and hisioricallysignificanthistoric:district. (3) The. accessory dyielling unit Is e,artbf the.exlsting primary residence or an existing accessory structure. (4) t^lhen ori street parking permits are required but not offered to the occupant of the accessory dwelling unit. ($) When literals a car share vehicle located wiLidn'one block of the accessolry dwelling unit. ic), Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall mini'sterially approve an application for a.building permit to 'create within1. a single-family residential zone' one accessory dwelling unit pertructurfamiVy lot if the,unit Is contained within the existing space of a single fam!ly residence or -accessory structure; has independent -exterior access from the existing residence, and the side and Year setbacks are sufficient, for Fre.: safeiy..Accr•.ssory dwelling units shall not be requited to, provide fire sprinklers if they are no required for the primary residence. (f) (1) Fees charged for the construction of ,accessory d•rrelliny units shall he determined ins•_accordance with di dpter 5:(commencing with Section 66000) anti Chapter 7 (COMMet7c[n(_7 wltlj Section 66017.), (2) Accessory'dwelling unit .shall not be considered new residential uses for the purposes of calculatinglocal agency.connectton fees br`capacity charges for uClhties, incluiiing water and sewerservice. (A) For an accessory dwelling unit described in subdivision (ej, a local agency si all notrequireI the appfcantto. install a new or separate tltllRyconnection direct between the accessory :dwelling unit and the utility orimpgse` a related connect lon'fce-orcap6city charge.. (B) For accessory dwelling unit that Is not described in subdlvislon (ea local -agency roay require a new or separate Utility connection directly betiveen the accessory dwelling Unit and tlie.utility• Consist1. ent with Section 66013, the connealoti may be:sub)ect to a connection fee or capacity charge that shall be•proportiohafe toaho' burden of the proposed accessory dwelling unit; based upon either Its sizeor the number of its plumbing fixtures, upon the water or server system. This fee or charge sliall not exceed the reasonable cost of providing this.service. ;(g) This section does not limit the authority of locai•agencies to admit less restrictive requirements for the creation of an amessory'dwellina unit. (h) tr cal anencies shall submit a copy of theordinance adopted pursuant to sobdivNion (a) to:the Department of Housing -and Community Development vtithln 6o days after adoptlom. (i)'As used in.thls.section, the following lemic. mean: (1) "l.lving area" means the ,intrri&habitable , area of a dwelling unit including basements avid attics but floes not include garage or any accessory structure. (2) "Local agency" means'a city,,county; or city and county, whether genoral law or,chartered. 55II9,5. (3) For purposes of this saction,_"ncighborligod"has the same meaning 'as set forth In Section 6 (4)'Y'.ccesso y di^,elling.,unit" means an attached or a detached residential dwellino unit which provides, complete Independent living fatlliites:for one.or more persons. It shall include permanent proi!Isions 'for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is.sitoated. An accessory ,d,t-elling unit also includesthe following: (h).An officiency unit, -as defined in Section 17950:1 of Health and Safety Code. (B) A manufactured home; as defined in Section 6667 of the Health'and Safety Code. (5)'•passageway' means . -a pathway that is.unobstructed clear to the sky and extends from a.street to one entrance of the accessory dWelling unit. 75D-25 J) Nothing In this.sectlon shall be coristr led to::supersede or in any ymy-alter or lessen the''effect or application of�the-;California Coastal Act (6lvjsion 20 (cornmencrng with $ectlon-30Q00) of 'the Publtr. Rnsovrri:§ Code); except that the local government shall not be, required to hold public hearings for coastal development permit applications for accessory dwelling units. SEC: 2. Sectioq 1 5..nf-thls bill incorporates amendments to Section6Stt52.2 of the Goveinrrtent Code proposed by both this bill and.'Sen de i3m 1069. it shali only heconie operative if (l).both bills''are.enactedand bacome effective on or before January 1;. 207, (2). each bfll arrienus Seaton 65§52.2 ol"the Goveriihient Codo, and (3) this. 6111 is enacted after Senate Bill 1069, in Which case Section J:of thirbill shall not become: operative.. SEC 3. Ptd reimbursement. Is required by this act pursuant. to Seclfon G of A ticle .XIII. B' of, the California Cdn.htufion because a .local agency or schen) district, has the authority, to leery ser vicecharges, fees, or assessments sufficient fo:.pay for the. program or level of service mandated by tlirs act„ w$liin the meaning.of Section. 17556 of the Government Code. 75D-26 City. of Santa Ana. Open. Space Deficient Areas j - s ' /. [�+� » Jin I,•: tl;rhd .jc4^ �..da.� . EXHIBIT 3 75D-27 City of Santa Ana Transit Proximity Map OCTA Express Bus Routes 15 Minutes (or less) with Limited Stops Weekday Rush Hour Frequency 12 mile radio, from Bus stops EXHIBIT a 75D-28 Soto, Ricardo From: Keith Carpenter <edison@pacbell.net> Sent: Thursday, August 24, 2017 8:39 PM To: Soto, Ricardo Subject: ADU Thank,you for coming to the con) Link Forum, I believe a very important point to make is the very low number of applications.'If I heard you correctly there have.been only 40 requests. That seems to translate. to.less than .00001% based on the population of 350,000. It would seem that permitting the "illegal " units is a better option than having housing that is, at best, unsafe. I find it ironic that the issue of "bootleg" units is only being exacerbated by'making the AM expensive and somewhat difficult. also find IOronic that the same people who complain about illegal units.are also opposed to a path to. legalization: Thanks Sent from my (Phone EXHIBIT 5 75D-29 Soto, Ricardo From: Mike Tardif <mike@tardifsheetmetal.corn>i. Sent: Friday, August 25, 2017 1:29 PM To: aaandres@andreslaw.corn; Adchristy@aol.com; Alison.Young@phs.com; annc0i1@alLnet; bacerra@yahoo.com; bist@sbcglobal.net; chfsp2@gmail.com;'Dave Lopez'; dayid a heliotrope-studios.com; dianemorter@gmail.com; clickmanaj a att,net; Don Cribb; 'Ed Murashie" fosca94@gmaiLcom; fraudfinders2O10@gmaiLcom; George@santa-ana.ty; ginelleann@gmaiLcom; Helen Martinez; imacias1230 @yahoo.com;'Irina Jauregui'; lanelleMcloiighlin@gmaiLcom; Javier epi vrashington- square.org; jean@kolodny-anteau.com; keren1219@aol.com; kirstensketch@ine.com; Lauratobiasgarcia@gineil.com; LiLia.Ramos23@yahoo.com; fj.bateson@sbcglobal.net; LuterLutz@aol.corn;'Mcewenl@aol.com: Nancy-Lutz@sbcglobai.net olivana@dslextreme.com; oscargarza @gmaiLcom; pdavid.benavides@gmai1.com;'Peter Katz',, Phil Bacerra; Evangeline Prodigy Gawronski;'Rene Guzman'; rvdave@roadrunner.com; Sarahcrealtor@gmaiLcom; Stprstn@aol.com; suml9anet.net Susan van der Roest; 'Terry McCall'; TFlainmarig@sbcglobal.net; thomas.a.gordon6gmail.com; timrusha bhhscaprops.com; vjedge@pacbell.net Cc: SantaAnaCitizens@yahoogroups.com; Neal, Candida; Kutner; Scott; Soto, Ricardo; Benavides, David; Solorio, Jose; Villegas, Juan; Martinez, Michele; Polido, Miguel; Tinajero, Sal; Sanniento, Vicente Subject: Granny flats - City staff announcement Com -Link meejing,yesterday Re: Santa Ana Com -Link meeting yesterday Thursday, August 24, 2017 Announcement by City staff regarding the proposed Accessory Dwelling Unit ("Granny Flat") ordinance. Granny Flats iGFI current status 1. In the previous 13 years the City has approved a total of 40 GF (3 per year) 2. The City has received 29 applications so far this year 3. The City does not have a GF ordinance in place' 4. The City has been implementing the State "mandated" ordinance Now City intends to address GF I. Staff will take feedback they have been receiving from the community and the impacts of GF currently spread throughout the neighborhoods 2. Staff will then draft a local ordinance to put before the Planning Commission in Oct./Nov, and then before the city Council in Nov./Dec. 3; "Well before then .." Staff will have a draft ready for public review and input "to refine that ordinance" Concerns of residents in attendance 1. "When is the draft coming out? It doesn't look like there will be much time for public comment." Staff response: We hope to have that available for review (by Com -Link) sometime next month (September) and it will be posted to the City website. 2. "Can we have a committee to meet with you, instead of us listening to what is happening up at City Hall"? "How are you going to hear from us."? Staff response: "We'll explore different ways to get.as much input from the community has we can - and then once we develop a strategy to get that input we'll relay that to you guys here." 3. "What are you doing to get the information out to the community"? Staff response: This is step one. 75D-30 4. There was continued concerns from residents on the short time frame' for public input. Staff response: "We heard.your concerns in many previous meetings." Note: To my personal knowledge there were only two neighborhood meetings (other than Com -Link) where GF was addressed — and staff could name only one such meeting. There were one or two Council sub -committee meetings at which GF was discussed. Further staff response: "We are willing to do that again" and "We will use Neighborhood Improvement to reach out to you." "If we have a need to get additional input we will take that time." Note: Staff did not make a commitment for additional public meetings concerning Granny Flats before it would go to Planning Commission and Council. 5. Further Staff response: "We heard what you said- you talked about how these units impacted your neighborhoods." "We are working with our City Attorney's office — we want to get it 'right." "We heard your direction in terms of regulating units so that they are safe and that they don't impact our neighborhoods." "And to be honest l am hoping that we have some open communication._ I'm hoping that we can really talk'about, this because we have limitations on what we can do as a community." 6. "Will there be further community meetings (on GFi." Staff response: "We will if we are requested to do so." Worth notin' again 1. In the previous 13 years the City has approved a total of 40 GF 2. The City has received 29 applications since Jan. V of this year Note: Staff did not make a commitment for additional public meetings concerning Granny Flats before it would to to Planning Commission and Council. Important note - The State "mandated" law has "wiggle room" built into.it— it can be adjusted to fit the needs of Santa Ana's neighborhoods - otherwise we would not be talking about it now. Thank you, Mike Tardif 75D-31 Ricardo From: Tom Lutz .IuterIutz@aoLtom> Sent: Friday, August 7.5, 2017 1:55 PM To: mike « tardifsheetmetaLcom; aaandres@andreslaw.com; Adchristy@aol.com; Alison.Young@phs.com; anncoil@,att.nett bacerra@yahoo:com; bist@sbcglobal,net; chfsp2@gmaiLcom; lopezlthev@hotmaiLcom; davidgheliotrope-studios.com; dionemorter@gmaiLcom; dickmanaj@att.net., doncribb@aol.com; emurashie@att.net; fosca94@grnail.corn; fragdfinders20106gmail.com; George@santa-ana.ty; ginelleann@gmaiLcom; martinezhln@gmaiLcom; imaciasl230@yahoo.com; irmapj@yahoo.com;JanelleMclouglilin@grnail.corn; javier@washington-sguare.org; jean@kolodny-anteau.com; kerenl219@6ol com; kirsterisketch@me.com; Liuratobiasgarcia@gmail.com; LiLia.kamos23@yahoo.com; Ij.bateson@sbcglobaUiet; Mcewenl@aol.com; Nancy-Lutz@sbcglobal.net; olivana@dslexireme.com; oscargarza@gmail.com; pdavid.benavides@gmaii.com; petekatz9@gmaiLcom; philbacerra@grnail.com; Evangeline Prodigy Ginvronski; codch.guzman37@gmaiLcom; rvdave@roadrunner.com; Sarahcrealtor@gmaiLcom; Stprstn@aot.com; suml@anet.nei; Susan@vdccom; tryrnc@aol.com; TFlammang@sbcglobal.net;, thomas.a.gordon@gmail.com; timrush@bhhscaprops.com; vjedge@pacbell.net; jgrialey3@gmaiIxorn; fosca94@gmail.corn; Adchrlsty@aol.com Cc: SantaAnaCitizens@yahoogroups.com; Neal, Candida; Kutner; Scott; Soto, Ricardo; Benavides, David; Solorio, Jose; Villegas,.luan; Martinez, Michele;,Pulido, Miguel; Tinajero, Sal; Sarmiento, Vicente, befranklio@dslextreme.com;' rob.richardson0earthlink.nei; Imills0076mac.com Subject: Re: Granny flats -City staff announcemehl Com -Link meeting yesterday Thanks Mike. I noticed that too about the 29 applicants just this year or at at least from the meeting earlier this year when Janet Nguyen was there and staff indicated there were only about 3 or 5 applications in the last couple of years and make It sound like we didn't have anything to worry about. And now we have 29 applications and as I told Evarigeline I would bet dollars to donuts that those applicants aren't for "granny and gramps" but are absentee landlords who want to add another dwelling to get another $1500+. bucks a month rent. I also wonder how this has now become a big rush? At the Nice Meeting held four or so months ago Willi Jose and Juan, Sal was absent, along with Hussain and Candid I carne away that there was no urgency and no direction from council to even look Into writing an ordinance and Hussain saying we don't have enough staff people to address writing any kind of an ordinance. Tom In a message dated 3/25/2017 1:29:35'PM Pacific Slandartl Tithe, mike u?hudif'shealinetuLcom writes: Ret Santa Ana Com -Link meeting yesterday Thursday, August 24, 2017 Announcement by City staff regarding the proposed Accessory Dwelling Unit ("Granny Flat'.') ordinance. Granny Flats (GF) current status 1. In the previous 13 years the City has approved a total of 40 GF (3 per year) 75D-32 2. The City has received 29 applications so far this year 3. The City does not have a GF ordinance in place 4. The City has been implementing the State "mandated" ordinance How City intends to address GF 1. Staff will take feedback they have been receiving from the community and the impacts of GF currently spread throughout the neighborhoods 2. Staff will then draft a local ordinance to put before the.planning Commission in Oct:/Nov, and then before the City Council in Nov./Dec. '3. "Well before then.." Staff will have a draft ready for public review and input "to refine that ordinance" Concerns of residents in attendance 1. "When Is the draft coming out? It doesn't look like there will be much time for public comment." Staff response: We hope to have that available for review (by Com -Link) spmetime next month (September) and it will be posted to the City website. 2. "Can we have a committee to meet with you, instead of us -listening to what is happening up at City Hall"? "How are you going to hear from us."? Staff response: "We'll explore different ways to get as much input from the community has we can - and then once we develop a strategy to get that input we'll relay that to you guys here." 3. "What are you doing to get the information outto the community"? Staff response: This Is step one. 4. There was continued concerns from residents on the short time frame for public input. Staff response: "We heard your concerns in many previous meetings." Note: To my personal knowledge there were only two neighborhood meetings (other than C_ om-Link) where GF was addressed — and staff could name only one such meeting. There were one or two Council sub, committee meetings at which GF was discussed. Further staff response: "we are willing to do that again" and "We will use Neighborhood Improvement to reach out to you." 2 75D-33 "If we have a need to get additional input we will take that time." Note: Staff did not make a commitment for additional public meetings concerning Granny Flats before it would go to Planning Commission and Council. S. Further Staff response: "We heard what you said —you talked about how these units impacted your neighborhoods." "We are working with our 'City ' Attorney's office — we want to get it right." "We heard your direction in terms of regulating units so that they are safe and that they don't impact our neighborhoods." "And to be honest I am hoping that we have some open communication. I'm hoping that we tan really talk about this because we have limitations on what we can do as a community." 6. "Will there be further community meetings (an GF). - Staff response: "We will If we nre.reci-Bested to do so." Worth noting=_ again 1. In the previous 13 years the City has approved a total of 40 GF 2. The City has received 29 applications since Jan.1`� of this year Note: Staff did not make a commitment for additional public meetings concerning Granny Fiats before it would go to planning Commission and Council. Important note - The State "mandated" law has "wiggle room" built into it— it can be adjusted to fit the needs of Santa Ana's neighborhoods - otherwise we would not be talking about it now. Thank you, Mike Tardif 75D-34 LS 11.7.17 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO PROVISIONS OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE RELATING TO SECOND DWELLING UNITS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Santa Ana Municipal Code (SAMC) requires updates periodically in order to gain compliance with new state or federal legislation. B. On September 27, 2016, the Governor of California approved Senate Bill 1069 (SB1069) and Assembly Bill 2299 (AB2299) to amend section 65852.2 of the Government Code relating to second dwelling units. These statutes impose new limitations on local authority to regulate second units, which are now referred to as ..accessory dwelling units". C. The proposed changes to the second dwelling unit development standards are proposed to comply with the new state legislation which took effect on January 1, 2017, to allow greater flexibility in allowing these units. D. The ordinance will incorporate new provisions of the state accessory dwelling unit law as well as introduce provisions to regulate the size and location of such units while taking into account the unique characteristics of the city such as service deficiency areas. E. The City desires to amend its local regulatory scheme for the construction of accessory dwelling units that fully complies with section 65852.2 of the Government Code, and finds that the proposed ordinance promotes the public health, safety and welfare of the community. F. The City Council has held a duly noticed public hearing on this ordinance and has considered all testimony presented thereto. Ordinance No. NS -XXX Page 1 of 12 Exhibit 5 75D-35 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 14 California Code of Regulations section 15061(b)(3), and a Notice of Exemption will be filed upon adoption of this ordinance. Section 3: Section 41-150.5 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 41-150.5. - Sesend Accessory dwelling units. An sesend accessory dwelling unit is an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons and includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. It shall have the same meaning as "sesead accessory dwelling unit," as that term is defined in California Government Code section 54842.2(i) ), 65852.2 as it may be amended from time to time. Section 4: Sections 41-194 through Section 41-194.3 of the Santa Ana Municipal Code are hereby deleted and replaced with the new Sections 41-194 through Section 41-194.15 to read as follows: Ordinance No. NS -XXX Page 2 of 12 75D-36 OWN 10@11 .. i WWI - ISO 11 NOW Ordinance No. NS -XXX Page 2 of 12 75D-36 OWN 10@11 .. Ordinance No. NS -XXX Page 2 of 12 75D-36 Ordinance No. NS -XXX Page 3 of 12 75D-37 IMEM ve .. - Ordinance No. NS -XXX Page 3 of 12 75D-37 Ordinance No. NS -XXX Page 4 of 12 75D-38 Sec. 41-194. - Purpose. The purpose of this section is to provide reasonable regulations for the development of accessory dwelling units on residentially zoned properties on parcels developed or proposed to be developed with single-family residential dwellings. Such regulations are intended to mitigate potential impacts to neighborhoods and comply with the goals and including California Government Code section 65852.2. Sec 41-1941 - Definitions As used in this section the following words, terms or phrases have the following meanings: (1) "Attached accessory dwelling unit" means a residential dwelling unit that is attached to or located within the living area of an existing primary dwelling unit and that provides independent living sleeping eating a single kitchen for cooking and sanitation facilities for one or more persons. An attached (2) "Detached accessory dwelling unit' means a residential dwelling unit that facilities for one or more persons A detached accessory dwelling unit also includes an efficiency unit as defined in California Health and Safety Code section 17958 .1, and a manufactured home, as defined in section 18007. Ordinance No. NS -XXX Page 5 of 12 75D-39 (3) "Existing accessory structure" means an accessory structure. as defined in this chapter, which was legally established and existing prior to adoption of this ordinance. (4) "Existing garage" means a garage that was legally established and existing prior to adoption of this ordinance. (5) "Living area" is defined as the interior habitable area of a dwelling unit but not including a garage or any accessory structure (6) 'Primary dwelling" means an existing single-family residential structure on household. Sec. 41-194.2 - Applicability. (1) The development and design standards in this section shall be applicable to all accessory dwelling units. (2) dwelling units conforming to the time limits specified by Government Code Section 65852.2 or successor provision. Sec. 41.194.3 - Non -conforming Status. (1) Accessory dwelling units may be permitted on parcels which are non- conforming to this chapter, with exception of minimum lot size provided they do not create any new non -conformances (2) Sec. 41-194.4 - Permitted Zones. Accessory dwelling units are permitted in the R1 R2 R3 R4 CR Al or RE zoning districts or on a parcel within any Specific Plan or Specific Development zoning district in which residential uses are permitted Sec. 41-194.5 - Open Space Deficiency. No accessory dwelling unit shall be permitted on any parcel within an area the city has designated as deficient in public open space as shown on the maD entitled "Areas of Open Space Deficiency" on file with the clerk of the council. Ordinance No. NS -XXX Page 6 of 12 75D-40 Sec. 41-194.6 - Use Restrictions. (I) An accessory dwelling unit may be developed on a parcel that either: (a) Contains one legally established single-family residence; or (b) Will have one new detached single-family residence permitted concurrently with the accessory dwelling unit. (2) Only one accessory dwelling unit may be located on the parcel. (3) The accessory dwelling unit shall not be sold separately from the primary dwelling. (4) The accessory dwelling unit shall not be rented for periods of less than thirty (30) days. (5) The primary dwelling unit or the accessory dwelling unit shall be continuously occupied by at least one person having an ownership interest in the parcel. Sec. 41-194.7 - General Development Standards. Unless specifically stated in subsection 41-194.9, accessory dwelling units shall comply with the following development standards: (1) Minimum Lot Area. A minimum lot area of six thousand (6.000) (2) Maximum Size. The maximum size of an accessory dwelling unit livin area shall not exceed seven hundred fifty (750) square feet or fifty (50%) percent of the size of the living area of the primary dwelling unit on the parcel, whichever is less. (3) Minimum Size. The accessory dwelling unit shall contain no less than the 220 square feet in living area the City requires for an efficiency dwelling unit which is defined in Section 17958.1 of the Health & Safety Code. (4) Lot Coverage. The lot coverage for the parcel, as that term is defined in this chapter, shall not exceed the percentage specified in the underlying zoning district. (5) Setbacks. An accessory dwelling unit must meet the setback standards of the applicable zoning district. Ordinance No. NS -XXX Page 7 of 12 75D-41 (6) Design. The design of the accessory dwelling unit shall preserve the privacy of adjacent uses and be architecturally compatible to the design of the primary dwelling by use of similar materials and textures, window types, roofing materials and roof pitch, and shall comply with the adopted Citywide Design Guidelines. (7) the accessory dwelling unit shall not be placed or constructed so as to result in a modification of the existing historic resource on the parcel, unless alterations to the existing primary dwelling unit conform to the United States Secretary of Interior's official Standards for Treatment of Historic Properties. (8) Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. For the purpose of this section, "Passageway" shall mean a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. addition to the following: structure to the too of the structure. (2) Separation. There shall be a minimum of fifteen (15) feet separation between the primary dwelling unit and a detached accessory dwelling unit and a minimum of five (5) feet between a detached accessory dwelling unit and an accessory building. Separation shall be measured from the exterior wall of the primary dwelling unit to the nearest wall of the accessory dwelling unit or attached structure. (3) location and size. addition to the following: 75D-42 Ordinance No. NS -XXX Page 8 of 12 (1) Maximum Height. The height of an attached accessory dwelling unit shall not exceed the height limit applied to a primary dwelling unit in the underlying zoning district. (2) Exterior Stairs. An attached accessory dwelling unit shall have no exterior stairs. (3) Entrances. No attached accessory dwelling unit shall have an outside door on the primary elevation of the primary dwelling unit or an outside door that is visible from the street. Sec. 41-194.10 - Development Standards — Conversion of Existing Structures. An existing structure converted to an accessory dwelling unit is not subject to the development standards of subsections 41-194.7 through 41-194.9 provided that the unit complies with all of the following requirements: (1) Conversion of Existing Space. Is contained within an existing single-famil residence, existinq garage or existing accessory structure: (2) Maximum Size. Is a maximum of seven hundred fifty (750) square feet of living area in size or fifty (50%) percent of the size of the living area of the primary dwelling unit on the parcel, whichever of the two is less; (3) Minimum Size. Is no less than the minimum 220 square feet in living area the City requires for an efficiency dwelling unit which is defined in Section 17958.1 of the Health & Safety Code; (4) Setbacks: The side and rear setbacks comply with building code provisions related to fire safety. (5) Independent Access. Has independent exterior access from the existing residence, which shall not be located on the primary elevation of the primary dwelling; and (6) Independent Living Facilities. Has independent living, sleeping, eating, a (1) 75D-43 Ordinance No. NS -XXX Page 9 of 12 (2) When a -garage is demolished in conjunction with the construction of an accessory dwelling unit, the replacement spaces may be located in any configuration on the same parcel as the accessory dwelling unit including, but not limited to, as covered spaces, uncovered spaces tandem spaces or by the use of mechanical automobile parking lifts. (1) The accessory dwelling unit is located within one-half mile of public transit. For the purposes of this section "public transit' shall mean a bus stop with fixed route express bus service that provides transit service at 15 -minute intervals or better during peak commute periods. (2) The accessory dwelling unit is located within an historic district. (3) The accessory dwelling unit is part of the existing primary dwelling or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. For the purposes of this section "car -share Sec. 41-194.13 - Restrictive Covenant. Prior to issuance of a building permit for an accessory dwelling unit, a covenant consenting that either the primary dwelling unit or the accessory dwelling unit shall be owner -occupied shall be recorded against the title of the property in the County Recorder's office and a copy filed with the Planning Division. Said covenant shall run with the land, and shall bind all future owners, heirs, successors, or assigns.. The form of the deed restriction shall be provided by the City and shall provide that: (t) The accessory dwelling unit shall not be sold separately from the primary dwelling. (2) The unit is restricted to the approval size and attributes of this chapter. (3) The covenant restrictions run with the land and may be enforced against future purchasers. Ordinance No. NS -XXX Pagel 0 of 12 75D-44 (4) The covenant restrictions may be removed if the owner eliminates the accessory dwelling unit. (5) The covenant restriction shall be enforced by the Director of Planning and Building or his or her designee for the benefit of the City of Santa Ana. Failure of the propertV owner to comply with the covenant restrictions may result in legal action against the property owner and the City shall be unit in violation of the recorded restrictions or abatement of the illegal unit. exception which shall be heard by the zoning administrator pursuant to Article V of this chapter. Such application may include a request to vary from the standards of section 41- 194. The decision of the zoning administrator on such application may be appealed to the planning commission pursuant to said Article V. Section 5. Section 41-236 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 41-236. - Rear yards in the R1 district. There shall be a rear yard setback of not less than twenty (20) feet. This seGtioa she'! Rot apply to legal seGend dwelliRg units. Section 6. 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. Ordinance No. NS -XXX Page 11 of 12 75D-45 ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:a� Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 2017. Miguel A. Pulido Mayor 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 -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75D-46 Ordinance No. NS -XXX Page 12 of 12 Jeffrey Fertal 809 Grovemont Street Santa Ana, CA 92706 October 27, 2017 Santa Ana City Council 20 Civic Center Plaza Santa Ana, CA 92701 RE: ACCESSORY DWELLING UNITS ORDINACE Dear Honorable Mayor and members of the City Council, My name is Jeffrey Fertal, a resident of Santa Ana. I expect to close escrow on a home very soon for a property located at 1801 N. Bush Street. The subject property is an existing single- family residence and is a Legal Non -Conforming Use on a property currently zoned (P) Professional. This letter serves as a written request to the City Council to consider a revision to the proposed Ordinance regulating Accessory Dwelling Units (ADUs). As drafted, the proposed Ordinance would not permit an ADU on a property that is not zoned for Single Family use. Unfortunately, there are dozens, perhaps hundreds, of existing single-family properties within the City of Santa Ana that are not currently zoned for single family use, that would be prohibited from constructing an ADU. In all likely hood, these properties may never be developed or used as permitted under their existing zoning designation. Consequently, these single family residential properties will be unfairly discriminated from benefiting from the ADU Ordinance. The intent of the State's Revised ADU Bill is to increase the opportunities to construct ADUs and provide more flexibility in the development and approval of these units. Therefore, I respectfully request that the City Council consider revising the proposed Ordinance to include more flexibility as provided below: "Accessory Dwelling Units (ADUs) shall be permitted on properties that contain a single-family residence but are Legal Non -Conforming Use. The ADU shall only be permissible on eligible Legal Non - Conforming properties during such time that the property is used as a single-family residence." My intent to construct an ADU at 1801 N. Bush Street is to provide living quarters for my mother in-law. She is not physically able to reside in the main house where the bedrooms and bathrooms are on the second story. The ADU will provide her with a safe and accessible living quarter. If the proposed language is too broad, perhaps the approval of an ADU on Legal Non -Conforming lots can be considered by the City Manager on a case by case basis. Thank you for your consideration of my request. Jeffrey FertaI EXHIBIT C 7501-47 75D-48 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING - ORDINANCE AMENDMENT NO. 2017-04 TO AMEND CERTAIN SECTIONS OF CHAPTERS 18 AND 21 OF THE SANTA ANA MUNICIPAL CODE (MEDICAL MARIJUANA COLLECTIVES/ COOPERATIVES) - CITY OF SANTA ANA, APPLICANT (STRATEGIC PLAN NOS. 3, 2, 3, 5) CIO MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: MJ4110 /ce', ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt an ordinance approving Ordinance Amendment No. 2017-04. BACKGROUND On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in sections of Chapters 18 and 21 of the Santa Ana Municipal Code (SAMC). In November 2016, the majority of voters in California approved Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA). The AUMA immediately legalized. the possession, use, and growing and keeping of up to six mature cannabis plants for personal use at a private residence. To comply with the AUMA, on October 17, 2017, the City Council approved the first reading of the new commercial cannabis ordinance that expands commercial cannabis business activities in the city's industrial areas. In order to comply with additional provisions of the AUMA and State law, the City is required to amend additional portions of Chapter 18 relating to Medical Marijuana Collectives/Cooperatives. These amendments will update the ordinance to require that applications for a Regulatory Safety Permit (RSP) be processed through the Planning and Building Agency and will authorize the Executive Director of the Planning and Building Agency to approve or deny RSP applications rather than the Chief of Police. The amendments will also update certain definitions to comply with State law and to ensure consistency with Chapter 40, the City's new commercial cannabis ordinance. In addition to the required amendments to Chapter 18, the City is proposing to amend Chapter 21 to increase the gross receipts tax rate for medical marijuana collective/cooperatives. The amendment increases the tax rate one percentage from 5% to 6%. 75E-1-1 Ordinance Amendment No. 2017-04 — Amending Certain Sections of Chapter 18 (Medical Marijuana Collectives/Cooperatives) and Chapter 21 of the Santa Ana Municipal Code November 7, 2017 Page 2 DESCRIPTION , °l Tatile`JiMPTo os_ed('AmeniimentsltolMeasu[eeBB Item Current Ordinance Proposed Amendment Impact Definitions Contains definitions for a Amend certain definitions to Enables compliance with variety of medical -marijuana comply with State law. State law. terms. Operational standards Contains operational Amends Chapter 18 to Enables compliance with standards to ensure safe ensure compliance with State law. operation such that medical State law. marijuana retail establishments do not negatively impact the surrounding community. Regulatory safety Requires RSP applications Requires RSP applications Transfers review and permit (RSP) process be submitted to the Police be submitted to the Planning approval authority of RSP Department for review and and Building Agency for applications from the Police approval. review and approval. Department to the Planning and Building Agency. Chapter 18 Contains provisions to Amends Chapter 18 to Ensures consistency compliance with State ensure Chapter 18's ensure compliance with between various SAMC law compliance with State law State law and consistency chapters and compliance and consistency with with Chapter 40 (Commercial with State law. Chapter 40 (Commercial Cannabis). Cannabis). Gross receipts tax rate Establishes gross receipts Raises gross receipts tax Ensures adequate revenue tax rate at 5%. rate to 6%. stream due to changes in State laws on taxing medical cannabis. Staff has reviewed the proposed amendments to ensure consistency with other provisions of the Santa Ana Municipal Code, including Chapters 40 (Commercial Cannabis) and 41 (Zoning). The proposed amendments would raise the current gross receipts tax rate for sale of medicinal cannabis by marijuana collectives/cooperatives from 5% to 6%. Adoption of this 1% increase is estimated to generate additional general fund revenue from $300,000 to $500,000 annually. It is recommended that the additional general fund be dedicated to enforcement (one-third), administration (one-third), and community services (one-third). Staff anticipates bringing forward an appropriation adjustment for City Council consideration at a future date. Based on the information and analysis in this report, staff recommends adopting Ordinance Amendment No. 2017-04. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a 75E-1-2 Ordinance Amendment No. 2017-04 — Amending Certain Sections of Chapter 18 (Medical Marijuana Collectives/Cooperatives) and Chapter 21 of the Santa Ana Municipal Code November 7, 2017 Page 3 solutions -based customer focus in all efforts to facilitate development and investment in the community), and Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP Acting Executive Director Planning & Building Agency AP:rb S:RFCA\11-07-17\OA2017-04.=.11072017 (Chapter 18-21) Exhibit: 1. Ordinance 75E-1-3 75E-1-4 11.7.17 LS ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CERTAIN SECTIONS OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO MEDICINAL MARIJUANA TO UPDATE DEFINITIONS TO COMPLY WITH STATE LAW AND ENSURE CONSISTENCY WITH CHAPTER 40 OF THE MUNICIPAL CODE, AND AMENDING ARTICLE XII, SECTION 21-127 OF CHAPTER 21 OF THE SANTA ANA MUNICIPAL CODE INCREASING THE TAX ON MEDICINAL RETAIL MARIJUANA BY ONE PERCENT, FROM FIVE PERCENT TO SIX PERCENT 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. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") allowing up to twenty (20) medical marijuana retail cannabis collectives/cooperatives ("dispensaries"). B. Following the adoption of Measure BB, the provisions of the measure were codified in Chapters 18 and 21 of the Santa Ana Municipal Code. The City also established an implementation plan, enforcement program, administrative policies, and best practices. C. In May 2016 and early 2017, following initial implementation of the ordinance, the City held a roundtable discussion that invited stakeholders, dispensary owners, and members of the medical marijuana industry to meet with City staff regarding the implementation of Measure BB. Participants of the roundtable discussions voiced opinions on various aspects of the regulatory program and provided their recommendations for future policy level consideration. D. On June 20, 2017, the City Council approved amendments to Chapter 18 to streamline Measure BB and create more business -friendly conditions for the existing collectives/cooperatives. Ordinance No. NS -XXX Page 1 of 20 75E-1-5 E. Further modifications to amend Chapter 18 and Chapter 21 are currently proposed to update certain definitions to comply with state law and ensure consistency with the newly adopted Chapter 40 (Commercial Cannabis). F. The proposed amendment includes increasing the tax on medicinal retail marijuana. Measure BB authorized a business license tax rate of up to ten percent (10%) of the gross receipts generated from each collective/cooperative. The proposed ordinance increases the tax from the initial rate of five percent (5%) to six percent (6%) as permitted by . Measure BB. G. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of section 418 of the Charter of the City of Santa Ana. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. 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. Section 18-611 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-611. - Definitions. (Not in alphabetical order) (a) "Cultivation" and/or "Cultivate" shall mean the planting, growing, harvesting, drying, curing, grading or trimming PF0Ge66iRg, or stoFage of one 1 or more mari"uana plants or anv part thereof, as set forth in Business and Profession Code 6 26001 (1) as amended from time to time. (b) "Medical marijuana collective" or 'cooperative" or 'collective" means any facility or location where medical marijuana is made available and/or distributed by or to one (1) or more of the following: a primary caregiver, a qualified patient or a person with an identification card in strict accordance with California Health and Safety Code Section 11362.5 et seq., as sometimes amended. This term shall include any legal form of business recognized in the State of California. A "medical marijuana collective" shall not include the following uses, as long as the location of such uses are otherwise regulated by this Code or applicable law: a clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code, a health care facility licensed Ordinance No. NS -XXX Page 2 of 20 75E-1-6 pursuant to Chapter 2 of Division 2 of the Health and Safety Code, a residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code, a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code, a residential hospice or a home health agency licensed pursuant to Chapter 8 of Division 2 of the Health and Safety Code, as long as such use complies strictly with applicable law including, but not limited to, Health and Safety Code Section 11362.5 et seq. (c) "Identification card" shall have the same definition as that contained in Health and Safety Code § 11362.7 et seq., as sometimes amended. (d) "Manager" means any person responsible for the establishment, organization, supervision, or oversight of the operation of a Collective, including but not limited to members who perform the functions of president, vice-president, director, operating officer, financial officer, secretary, or treasurer. Ability to control one (1) or more of the following functions shall be prima facie evidence that such person is a manager: (1) To hire, select, or separate employees or staff, including volunteers; (2) To acquire facilities, furniture, equipment or supplies other than occasional replenishment of stock; (3) To disburse funds of the business other than occasional expenditures for replenishment of stock; or (4) To make, or participate in making, policy decisions relative to the operations of the business. (e) "Marijuana" shall have the same definition as that contained 'in Health and Safety Code § 11018 as sometimes amended. (f) "Medical marijuana" shall have the same definition as that contained in Health and Safety Code § 11362.5 et seq., as sometimes amended. (g) "Primary caregiver" shall have the same definition as that contained in Health and Safety Code § 11362.5 and 11362.7, as sometimes amended. (h) "Qualified patient' shall have the same definition as that contained in Health and Safety Code § 11362.5 as sometimes amended. (i) 'Private Residence' shall have the same definition as that contained in Health and Safety Code sections 11362.2(5) and 17922. A recreational vehicle does not constitute a lawfully established structure for the purposes of this article. Q) `Premises' means a single, legal parcel of property. Where contiguous legal parcels under common ownership or control, such contiguous legal parcels shall constitute a single "premises" for purposes of this chapter. (k) 'Parcel' means property assigned a separate parcel number by the Orange County assessor. Ordinance No. NS -XXX Page 3 of 20 75E-1-7 (1) "Marijuana Products' shall have the same definition as that contained in Health and Safety Code section 11018.1. (m) "Marijuana Accessories" shall have the same definition as that contained in Health and Safety Code section 11018.2. (n) "Personal Cultivation" shall mean the planting, su{i+vating— rg owing, harvesting, drying, curing, grading or trimming GF-presessieg of marijuana plants for personal use within a private residence or accessory structure to a private residence. (o) "Commercial Cultivation" shall mean the planting, saltivat+ng growing, harvesting, drying, curing, grading or trimming GF presessing or processing of marijuana plants in any structure other than a private residence. (p) "Outdoor Cultivation" shall mean the planting, cultivating, -growing, harvesting, drying, curing, grading or trimming er-presessing of marijuana plants in any location within the City of Santa Ana that is not within a fully enclosed and secure structure. (q) "Fully enclosed and secure structure" means a space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more lockable doors. (r) "Delivery' means the commercial transfer of medical cannabis or medical cannabis products from a dispensary, up to an amount determined to be authorized by the State of California, or any of its departments or divisions, to qualified patients and their caregivers. "Delivery" also includes the use by a dispensary of any technology platform owned, controlled, and/or licensed by the dispensary, or independently licensed by the State of California under the State law (as amended from time to time), that enables anyone to arrange for or facilitate the commercial transfer by a licensed dispensary of medical cannabis or medical cannabis products. For the purposes of this article, "delivery' does not include distribution or purchase of cannabis from a licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed dispensary or a wholesale establishment. (s) "Dispensary" means a premises where medical cannabis or medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to Business and Professions Code § 19340, medical cannabis and medical cannabis products as part of a retail sale. (t) "Responsible person" means any of the following: (1) A person who causes a Code violation to occur. (2) A person who maintains or allows a Code violation to continue, by his or her action or failure to act. Ordinance No. NS -XXX Page 4 of 20 75E-1-8 (3) A person whose agent, employee, or independent contractor causes a Code violation by its action or failure to act. (4) A person who is the owner of, and/or a person who is a lessee or sub lessee with the current right of possession of, real property where a property -related Code violation occurs. (5) A person who is the on-site manager of a business who normally works daily at the site when the business is open and is responsible for the activities of such premises. For the purposes of this section "person" includes a natural person or legal entity, and the owners, majority stockholders, corporate officers, trustees, and general partners of a legal entity. (u) "Distribution" means the procurement, sale and transport of cannabis and cannabis products between liGeRsees as set f rth in BusiRess and wnfessinRs Code oannv entities licensed pursuant to the Medicinal and Adult -Use of Cannabis Regulation and Safety Act and any subsequent State of California legislation regarding the same. Section 4. Section 18-613 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-613. - Operating Standards. (a) At all times the collective is open, a collective shall provide at least one security guard who is licensed, possesses a valid Department of Consumer Affairs security guard card", and has a valid Santa Ana Business License. In the event that the security guard is employed by an outside security guard company' such security guard company shall maintain a valid Santa Ana Business License. (b) The security guard and collective personnel shall monitor the site and the immediate vicinity of the site to assure that patrons immediately leave the site and not consume medical marijuana in the vicinity of the collective or on the property or in the parking lot. (c) Exterior signage shall comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. Interior signage or advertising may not be visible from the exterior. Collectives and dispensaries must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. (d) No recommendations from a doctor for medical marijuana shall be issued on-site. (e) There shall be no on-site sales of alcohol or tobacco products, and no on-site consumption of food, alcohol, tobacco or marijuana by patrons. (f) Hours of operation shall be limited to: 7:00 a.m. to 11 p.m. daily. No licensed dispensary/collective shall be open to the public between the hours of 11:01 p.m. and 6:59 a.m. of any day. Ordinance No. NS -XXX Page 5 of 20 75E-1-9 (g) The property shall provides an air treatment system with sufficient odor absorbing ventilation and exhaust systems so that odor generated inside the preper-Location is not detected outside the building preperty, anywhere on adjacent property or public rights-of-way, or within any other unit located within the same building as the collective if the use only occupies a portion of a building. (h) A collective shall only dispense medical marijuana to qualified patients and their caregivers as defined by California Health and Safety Code § 11362.5 (Proposition 215). This shall include possession of an original valid doctor's recommendation, not more than one (1) year old, for medical marijuana use by the patient. (i) A collective shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: (1) Use of medical marijuana shall be limited to the patient identified on the doctor's recommendation. Secondary sale, barter or distribution of medical marijuana is a crime and can lead to arrest. (2) That loitering on and around the collective site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume medical marijuana in the vicinity of the collective or on the property or in the parking lot. (3) Forgery of medical documents is a felony crime. (4) A warning that patrons may be subject to prosecution under federal marijuana laws. (5) That the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery. (j) A collective shall not provide marijuana to any individual in an amount not consistent with personal medical use. (k) Resepved.All agents, private security officers or other persons acting for or employed by a collective shall display a laminated identification badge at least 2" x 2" in size, issued by the collective. The badge at a minimum shall include the collective's "doing business as" name and license number, the employee's first and last name, and a color photo of the employee that shows the full front of the employee's face. (1) No one under twenty-one (21) years of age shall be permitted to enter establishment, unless such person is a qualified patient and is accompanied by his or her primary caregiver, licensed attending physician, parent(s) or documented legal guardian. (m) A collective shall provide the name and phone number of an on-site staff person to the police department and the Code Enforcement Division of the Planning and Building Agency for notification if there are operational problems with the establishment. Ordinance No. NS -XXX Page 6 of 20 75E-1-10 (n) Each collective owner, operator(s) and employees shall complete a criminal background check and wear a visible photo ID at all times during operating hours. Owners, operator(s), €employees, managers or volunteers may not have been convicted of, or pleaded guilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years; nor shall they be a person required to register as a controlled substance offender pursuant to Health & Safety Code section 11590. (o) Marijuana shall not be grown or cultivated at collective sites unless licensed for such uses by the State and pursuant to Chapter 40 of this Code, except that cuttings of the marijuana plant may be kept or maintained on-site for distribution to qualified patients and primary caregivers as follows: (1) The cuttings shall not be utilized by a collective as a source for the provision of marijuana for consumption on-site, however, upon provision to a qualified patient or primary caregiver, that person may use the cuttings to cultivate marijuana plants off-site for their own use and they may also return marijuana from the resulting mature plant for distribution by the collective. (2) For the purposes of this paragraph, the term "cutting" shall mean a rootless piece cut from a marijuana plant, which is no more than six (6) inches in length, and which can be used to grow another plant in a different location. (p) A collective shall comply with applicable provisions of the California Health and Safety Code §§ 11362.5 through 11362.83, inclusive. (q) If food is distributed, the collective shall comply with all relevant state laws and city and/or County ordinances pertaining to the preparation, distribution an..d_ saleof food. (r) The location, interior and exterior, shall be monitored at all times by web -based closed-circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained for a period of not less than ninety (90) days. The police department may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the police department may seek a warrant or court order for the recordings. (s) The location shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or the portion of the building where the collective is located shall contain a fire -proof safe or fire -proof filing cabinet and include a safety and security plan. (t) Reserved. and Safety Code SeGtdE)R 14 379.6 01; AIIA-M.'Ad. (u) Reserved. Ordinance No. NS -XXX Page 7 of 20 75E-1-11 mapijuana shall be allowed PFG)vided that they are IR StFiGt GOFApilanGe with State Law. All S61Gh Gash alld in kiRd arAeURtS and items shall be fully &)GUMPAfed (v) If the collective operator is not the owner of the property where the collective is to operate, the operator shall provide evidence that the property owner(s) consent to the operation of a collective on the property. (w) Collectives must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining their regulatory safety permit. (x) Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. Section 5: Section 18-617.2 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-617.2. - Medical marijuana collective—Regulatory permit application process. (a) Any Medical Marijuana Collective desiring a regulatory safety permit required by this article shall, prior to initiating operations and after receiving notice of its successful registration under section 18-617.1 as being on the RSP Eligibility List, must complete and file a Regulatory Safety Permit Application to the Director of the Planning and Building Agency or designee Ghief 9f PGlise on a form supplied by the Planning and Building Agencv Reline Department. The application shall be filed together with a nonrefundable fee as established by resolution of the City Council, to defray the cost of investigation required by this article. The application shall contain all of the following: (1) The address of the property where the proposed Medical Marijuana Collective(s) will operate; (2) A site plan describing the property with fully dimensioned interior and exterior floor plans including electrical, mechanical, plumbing, and disabled access compliance pursuant to Title 24 of the State of California Code of Regulations and the federally mandated Americans with Disabilities Act; (3) Exterior photographs of the entrance(s), exits(s), street frontage(s), parking, front, rear and side(s) of the proposed property; (4) Photographs depicting the entire interior of the proposed property; (5) If the property is being rented or leased or is being purchased under contract, a copy of such lease or contract; (6) If the property is being rented or leased, written proof that the property owner, and landlord if applicable, were given notice that the property will be used as a Ordinance No. NS -XXX Page 8 of 20 75E-1-12 Medical Marijuana Collective, and that the property owner, and landlord if applicable, agree(s) to said operations; (7) The name, address, telephone number, title and function(s) of each manager, employee, volunteer, etc; (8) For each manager, employee, volunteer, a fully legible copy of one valid government issued form of photo identification, such as State Driver's License or Identification Card; (9) If the Medical Marijuana Collective is a corporation, a certified copy of the Collective's Secretary of State Articles of Incorporation, Certificate(s) of Amendment, Statement(s) of Information and a copy of the Collective's Bylaws; (10)lf the Medical Marijuana Collective is an unincorporated association, a copy of the Articles of Association; (11)The name and address of the applicant's current agent for Service of Process; (12)A copy of the applicant's Board of Equalization Seller's Permit; (13)A copy of the Medical Marijuana Collective Operating Standards, listed in section 18-613, containing a statement dated and signed by the responsible party on-site stating under penalty of perjury, that they read, understand and shall ensure compliance with the aforementioned operating standards. (b) The Shief of PGIise Director of the Planning and Building Agency or designee shall have sixty (60) calendar days in which to investigate the application and background of the applicant. The department of building safety and housing, the fire department and the Orange County Health Department shall inspect the premises proposed to be devoted to the collective establishment and shall make separate recommendations to the Director of the Planning and Building Agency or designeeSbief Gf P-elise or designee concerning compliance with the foregoing provisions. (c) The Chieff Pe;ise Director of the Planning and Building Agencv or designee, after receiving the application and aforementioned recommendations, shall grant the permit if s/he finds: (1) The required fee has been paid. (2) The application conforms in all respects to the provisions of this article. (3) The applicant has not knowingly made a material misrepresentation in the application. (4) The applicant has fully cooperated in the investigation of the application. (5) The applicant has not had a regulatory safety permit or other similar license or permit denied or revoked for cause by this city or any other City located in or out of this state within the five (5) years prior to the date of application. Ordinance No. NS -XXX Page 9 of 20 75E-1-13 (6) The collective as proposed by the applicant would comply with all applicable laws including, but not limited to, health, zoning, fire and safety requirements. (7) The applicant has demonstrated compliance with the California Department of Justice, Office of the Attorney General, "Guidelines for the Security and Non - Diversion of Marijuana Grown for Medical Use" standards. (d) Failure of an applicant listed on the RSP Eligibility List to obtain a Certificate of Occupancy within six (6) months of submitting a completed RSP application will result in disqualification from the RSP Eligibility List and Waitlist. This sub -section applies to RSP applications submitted after April 5, 2016. Section 6: Section 18-617.3 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-617.3. - Medical marijuana collective—Regulatory permit annual renewal. (a) Applications for the renewal of a permit shall be filed with the Director of the Planning and Building Agency or designee s#ief of pelise at least sixty (60) calendar days before the expiration of the current permit. Temporary permits will not be issued. Any permittee allowing his or her permit to lapse or which permit expired during a suspension shall be required to submit a new registration application and pay the corresponding original application fees. (b) Any person desiring to obtain a renewal of his/her respective permit shall file a written application under penalty of perjury on the required form with the chief of police who shall conduct an investigation. The application shall be accompanied by a nonrefundable filing fee established by separate resolution of the city council to help defray the cost of the investigation required by this article. An applicant shall be required to update the information contained in his/her original permit application and provide any new and/or additional information as may be reasonably required by the Ghief of pelise Director of the Planning and Building Agencv or designee in order to determine whether said permit should be renewed. Section 7: Section 18-620 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 18-620. - Compliance with this article and state law. (a) It is unlawful for any person to: (i) Cause, permit or engage in the cultivation, possession, distribution or giving away of marijuana unless licensed for cultivation or distribution Ordinance No. NS -XXX Page 10 of 20 75E-1-14 activities in accordance with Chapter 40 of this Code and State licensing requirements, or (ii) Own establish, operate, use or permit the establishment or operation of a medical marijuana collective or cooperative, or to participate as an employee, contractor, agent, responsible person or volunteer of a collective or cooperative, except as provided in this article, and pursuant to any and all other applicable local and state laws. (iii) The prohibition in subsection (ii) above includes, renting, leasing, or otherwise permitting a medical marijuana business to occupy or use a location, vehicle, or other mode of transportation. (b) It is unlawful for any person to cause, permit or engage in any activity related to medical marijuana except as provided in Health and Safety Code Sections 11362.5 et seq., and pursuant to any and all other applicable local and state laws. (c) It is unlawful for any person to knowingly make any false, misleading or inaccurate statements or representations in any forms, records, filings or documentation required to be maintained, filed or provided to the City under this article, or to any other local, state or federal government agency having jurisdiction over any of the activities of collectives. (d) It shall be the sole responsibility of the members engaged in the management of the collective to ensure that the collective is at all times operating in a manner compliant with all applicable state laws and this article. Nothing in this article shall be construed as authorizing any actions which violate state law with regard to the cultivation, transportation, provision, and sale of medical marijuana. (e) Cultivation of Marijuana. (1) Personal Cultivation. Individuals 21 years of age or older may plant, cultivate, harvest, dry, or process up to (6) living marijuana plants for personal use in a private residence or accessory structure to a single private residence in the City of Santa Ana and must comply with the following requirements: (i) The marijuana cultivation area shall be located indoors within a private residence or accessory structure on a single parcel of property; (ii) No more than six (6) living marijuana plants is permitted for indoor personal cultivation; Ordinance No. NS -XXX Page 11 of 20 75E-1-15 (iii) Marijuana in excess of 28.5 grams produced by plants kept for indoor personal cultivation must be kept in a locked space on the grounds of the private residence not visible from the public right -of way. (iv) There shall be no exterior visibility or evidence of marijuana cultivation outside the private residence from the public right-of-way, including but not limited to any marijuana plants, equipment used in the growing and cultivation operation, or any light emanating from the cultivation; or (v) The cultivation may not violate any California Building, Electrical or Fire Codes or any other health and safety standards. (2) Commercial Cultivation. Commercial cultivation of marijuana of fnedisalFRafijaana is only permitted by a licensed business in accordance with Chapter 40 of this Code and State licensing requirements. , (3) Outdoor Cultivation. Outdoor cultivation of marijuana or medical marijuana is prohibited anywhere in the City. No person, including a qualified patient or primary caregiver, shall engage, permit, or participate in the outdoor cultivation of marijuana in the City. (4) Nuisance (i) It is hereby declared to be unlawful, a public nuisance, and a violation of this Chapter for any person owning, leasing, occupyirig, or having charge or possession of any parcel within the City to cause or allow such parcel to be used for the cultivation of marijuana without a license required by Chapter 40 of this Code and State license; unless the person is authorized by state law to grow marijuana within a private residence, and such authorized person is complying with all requirements of this Chapter, Chapter 40 of this Code. and State law. (5) Public Nuisance Prohibited. (i) It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel within the City to create a public nuisance Ordinance No. NS -XXX Page 12 of 20 75E-1-16 in the course of cultivating marijuana plants or any part thereof in any location, indoor or outdoor. A public nuisance may be deemed to exist, if such activity produces: (1) Odors which are disturbing to people of reasonable sensitivity residing or present on adjacent or nearby property or areas open to the public; (2) Repeated responses to the parcel by law enforcement personnel; (3) A repeated disruption to the free passage of persons or vehicles in the neighborhood, excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby property or areas open to the public; (4) Any other impacts on the neighborhood which are disruptive of normal activity in the area including, but not limited to, grow lighting visible outside the dwelling, excessive vehicular traffic or parking occurring at or near the dwelling, and excessive noise emanating from the dwelling. (5) Outdoor and Commercial growing and cultivation of marijuana. (f) A permitted medical marijuana dispensary may deliver medical marijuana only to a qualified patient or caregiver. Medical marijuana delivery services by dispensaries possessing regulatory safety permits must comply with Business and ProfessionsCode §19340. Delivery of cannabis from a dispensary permitted pursuant to this Chapter can only be made in a city or county that does not expressly prohibit it by ordinance. Delivery services by dispensaries not in possession of regulatory safety permits is expressly prohibited. Section 8: Section 21-127 of Article XII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-127. - Marijuana collectives/cooperatives—Annual business license tax assessment. (a) Annual business license tax assessment for marijuana collectives/cooperatives. (1) Every collective/cooperative whether it is organized or conducted as a "not for profit' business, a "non-profit' business, or a "for-profit' business, shall pay an annual business license tax in accordance with Chapter 21 of this Code and the sections and subsections hereunder. Ordinance No. NS -XXX Page 13 of 20 75E-1-17 (2) For the purposes of this article, a marijuana collective/cooperative is defined in section 18-611 of this Code and is considered to be a business as that term is defined in section 21-3 of this chapter. (3) For the purposes of this article, a collective/cooperative is not considered to be a religious or charitable organization. (4) "Medical marijuana collective/cooperative" or "collective/cooperative" shall mean any activity regulated or permitted by Chapter 18 of this Code. (5) For the purposes of this article, a marijuana collective/cooperative is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49 of this chapter. (6) For the purposes of this article, a "nonprofit organization" shall mean any institution or organization that is exempted from taxes measured by income or gross receipts pursuant to Article XIII, Section 26 of the California Constitution as codified under Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code and Section 37101 (c) of the Government Code or Sub -Chapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986. An institution or organization operating as a collective/cooperative and claiming a gross receipts assessment business license tax exemption under this section shall have the burden of furnishing to the collector such information as the collector may require to validate the claim of exemption including but not limited to such a determination- by the California Franchise Tax Board or any other information requested by the collector. (7) For the purposes of this article, "gross receipts" shall mean any transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for marijuana whatsoever, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount of cash or in-kind contributions, including all operating costs related to the growth, cultivation or provision of marijuana or any transaction related thereto. "Gross receipts" shall also include without limitation anything else of value obtained by a collective/cooperative. The term "gross receipts" shall also include the total amount of the sale price of all sales, the total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, merchandise, for which a charge is made or Ordinance No. NS -XXX Page 14 of 20 75E-1-18 credit allowed, including all refunds, cash credits and properties of any amount or nature, any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included. "Gross receipts" shall also include the amount of any federal, manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge. "Gross receipts" shall not include the amount of any federal tax imposed on or with respect to retail sales whether or not the amount of such tax is stated as a separate charge. "Gross receipts" shall not include the amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge, or any California state, city or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale. "Gross receipts" shall be calculated without any deduction on account of any of the following: (i) The cost of tangible property sold or bartered; (ii) The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; or (iii) The cost of transportation of the marijuana, or other property or product. (b) Business license tax rates for marijuana collectives/cooperatives. (1) Every collective/cooperative, excepting a qualified "nonprofit organization," whether it is organized or conducted as a "not for profit" business, a "non- profit" business, or a "for-profit" business, shall pay a separate business license tax at a rate of up to ten (10) percent of the gross receipts generated or otherwise received for each branch establishment or separate property location of the business. The gross receipts tax shall be initially set at a rate of five (5) percent. The maximum tax rate shall not exceed ten (10) percent of gross receipts. This tax shall not be adjusted for inflation pursuant to section 21-121 of this chapter. Ordinance No. NS -XXX Page 15 of 20 75E-1-19 (2) Notwithstanding the maximum tax rate of ten (10) percent of gross receipts imposed under subsection (b)(1), the city council may in its discretion at any time by ordinance implement a lower gross receipts tax rate for all marijuana collectives/cooperatives, as defined in such ordinance, subject to the maximum rate of ten (10) percent of gross receipts. The city council may by ordinance increase any such gross receipts tax rate from time to time, not to exceed the maximum gross receipts tax rate established under subsection (b)(1). to section 21-121 of this chapter. (3)(4) As part of the gross receipts tax imposed by this article, each collective/cooperative shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each separate branch location or separate property location of the business. (c) Modification, repeal or amendment. The city council may repeal the ordinance codified in this article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The city council may likewise by ordinance adopt and add additional provisions to any other article of this chapter and relate them to this article, or amend any existing provisions of any article of this chapter as they may already relate to this article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the city council repeals said ordinance or any provision of this article, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein. (d) Administration—Rules, regulations, and guidelines, interpretation/ clarification. In order to aid in the city's collection of taxes due under this article and to ensure that all marijuana collectives/cooperatives are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this article including, but not limited to rules, regulations, and guidelines harmonizing other provisions of this chapter with the provisions of this article in any manner not inconsistent with the intent of this article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such Ordinance No. NS -XXX Page 16 of 20 75E-1-20 interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this article. (e) Occasional transactions—Exemptions. (1) The provisions of this article shall not apply to persons having no fixed place of business within the City of Santa Ana who come into the city for the purpose of transacting a specific item of marijuana collective/cooperative business at the request of a specific patient, client or customer, provided that such person does not come into the city for the purpose of transacting business on more than five (5) days during any calendar year. (2) For any person not having a fixed place of business within the City of Santa Ana who comes into the city for the purpose of transacting collective/cooperative activities, the business tax payable by such person may be apportioned by the collector in accordance with this chapter. (f) Reporting and remittance. Beginning as set forth in subsection (k) below, and monthly thereafter, each marijuana collective/cooperative (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts) required to pay a tax based on gross receipts under this article, shall report to the city any gross receipts received during the preceding monthly reporting period and shall likewise remit to the city the taxes due and owing during said period. For purposes of this section, month shall mean calendar month,_and taxes shall begin to accrue on the date that a person or entity first receives a business license or other permit to operate as a collective/cooperative. The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance subsection (b)(3), shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31st day of March of the following year. In the case of a new collective/cooperative the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one-quarter ('/) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued. (g) Delinquent date—Penalty. Any individual or entity who fails to pay the taxes required by this article when due shall be subject to penalties and interest as set forth in accordance with this chapter. The collector is not required to send a delinquency or other notice or bill to any person subject Ordinance No. NS -XXX Page 17 of 20 75E-1-21 to the provisions of this chapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter. (h) Payment of tax does not authorize unlawful business. (1) The payment of a business tax required by this article, and its acceptance by the city, shall not entitle any person to carry on any collective/cooperative unless the person has complied with all of the requirements of this code and all other applicable laws, nor to carry on any collective/cooperative in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such collective/cooperative is in violation of any law. (2) No tax paid under the provisions of this article shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any legal business in an illegal manner, or any business in violation of any ordinance of the city. Nothing in this article implies or authorizes that any activity connected with the distribution or possession of marijuana is legal unless otherwise authorized and allowed by California and federal law. Nothing in this section shall be applied or construed as authorizing the sale of marijuana. (i) Business license tax certificate—Required. There are imposed upon all persons engaged in transacting and carrying on any collective/cooperative business activity in the city taxes in the amounts prescribed in this article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this chapter and having paid the taxes set forth in this article, and without complying with any and all applicable provisions contained in this chapter. The carrying on of any collective/cooperative without complying with all the provisions of this article shall constitute a separate violation of this chapter for each and every day that such collective/cooperative is so carried on. (j) Classification of business license assessment type—Term and renewal. The business license issued to marijuana collectives/cooperatives shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77 of this chapter. (k) Operative date. Upon the approval by the majority of the voters of the City of Santa Ana at the November 4, 2014 general election, the taxes Ordinance No. NS -XXX Page 18 of 20 75E-1-22 imposed by this article shall become operative and shall be applied by the collector upon all marijuana collectives/cooperatives. (1) Operative date of increased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5) percent pursuant to subsection (b)(1) shall be increased to a rate of six (6) percent effective January 1 2018 pursuant to subsection (b)(3). Section 9. 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. ADOPTED this day of Miguel A. Pulido Mayor APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: c. Lisa Storck Assistant City Attorney AYES: Councilmembers: NOES ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: 75E-1-23 2017. Ordinance No. NS -XXX Page 19 of 20 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 --to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75E-1-24 Ordinance No. NS -XXX Page 20 of 20 REQUEST FOR , COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: ORDINANCE SECOND READING: ADOPT ORDINANCE AMENDMENT NO. 2017-03 TO CREATE CHAPTER 40 IN THE SANTA ANA MUNICIPAL CODE (COMMERCIAL CANNABIS) {STRATEGIC PLAN NO. 5, 1} Myllyiri Mire? ME Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1°l Reading ❑ Ordinance on 2"d Reeding ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On October 17, 2017, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 4-0 (Pulido, Sarmiento abstained; Martinez absent): ORDINANCE NO. NS -2929 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CREATING CHAPTER 40 OF THE SANTA ANA MUNICIPAL CODE, "REGULATION OF COMMERCIAL CANNABIS", TO REGULATE COMMERCIAL CANNABIS ACTIVITIES, EXCEPTING MEDICINAL RETAIL STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). FISCAL IMPACT There is no fiscal impact associated with this action. Maria D. Huizar, Clerk of the Council EXHIBIT: 1. Ordinance — Redline Version 2. Ordinance — Clean Version 75E-2-1 75E-2-2 REDLINED VERSION Exhibit I 75E-2-3 75E-2-4 *Redlined Version* ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CREATING CHAPTER 40 OF THE SANTA ANA MUNICIPAL CODE, "REGULATION OF COMMERCIAL CANNABIS", TO REGULATE COMMERCIAL CANNABIS ACTIVITIES, EXCEPTING MEDICINAL RETAIL THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana herby finds, determines and declares as follows: A. In 1996, the California electorate approved Proposition 215, the Compassionate Use Act which allows a patient, with a doctor's recommendation, to use cannabis for medical purposes without the fear of prosecution or arrest. B. In 2003, the California . legislature passed Senate Bill 420 (Medical Marijuana Program Act) which amended the Health and Safety Code to permit the establishment of medical cannabis dispensaries for the distribution of cannabis for medical purposes. C. In 2005, the California Board of Equalization began issuing seller's permits for sales consisting of medical cannabis. D. In 2008, the California Attorney General issued guidelines for the security and non -diversion of cannabis grown for medical use. E. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. F. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA") further amended in 2016 as the Medical Cannabis Regulation and Safety Act ("MCRSA"), which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. G. In 2016, the voters of the State of California approved and passed Proposition 64 also known as the Adult Use of Marijuana Act ("AUMA"). Ordinance No. NS -XXX Page 1 of 28 75E-2-5 H. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). I. Health & Safety Code Section 11362.83 provides that cities are free to adopt and enforce local ordinances that regulate the location, operation, or establishment of medical cannabis. J. The City Council of the City of Santa Ana intends that nothing in this article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. Section 2. This Ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including by not limited to, Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act (AB 266, AB 243, and SB 643; hereafter "MMRSA"), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94; hereafter "MAUCRSA"). Section 3. 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 4. The City hereby amends the Santa Ana Municipal Code ("SAMC) by adding Article 1 to Chapter 40, entitled 'Regulation of Commercial Cannabis Activities" as follows: Chapter 40 ARTICLE 1. REGULATION OF COMMERCIAL CANNABIS ACTIVITIES Section 40-1. Purpose and Intent. The purpose and intent of this article is to regulate commercial cannabis business activities, as defined in this article, in order to ensure the health, safety and welfare of Ordinance No. NS -XXX Page 2 of 28 75E-2-6 the residents of the City of Santa Ana by establishing regulations necessary for a commercial cannabis business to obtain and maintain a Regulatory Safety Permit. Any commercial cannabis businesses operating in the City of Santa Ana shall at all times be in compliance with current State Law and this article. All commercial cannabis facilities shall operate in accordance with the regulations in this article and with the conditions of approval associated with the applicable zone for the parcel of real property upon which the commercial cannabis activities are conducted. Any commercial cannabis business shall qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as provided by this article and operate only in a zone in compliance with Santa Ana Municipal Code before commencing with any commercial cannabis activity. Any commercial cannabis business without a Regulatory Safety Permit is in violation of this article. The regulations in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code (collectively referred to as "State Law") do not interfere with the right to use cannabis or medical cannabis as authorized under State Law, nor do they criminalize the possession or commercial activities of cannabis or medical cannabis as authorized under State Law. Section 40-2. Definitions The definitions are incorporated herein as fully set forth and are applicable to this article. All definitions are intended to comply with those set forth by the State of California for all commercial cannabis activities. 1. "Applicant' means a person who is required to file an application for a permit under this article, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of a commercial cannabis business. 2. "Adult -use" means cannabis or cannabis products that are intended to be used for non -medicinal purposes by a person 21 years of age or older. 3. "Authorized City of Santa Ana representative" any police officer, city employee or agent of the city designated by the director of any city department which has the authority and responsibility to enforce provisions as set forth in this article. 4. "Business owner" means any of the following: a. A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. b. The chief executive officer of a nonprofit or other entity. c. A member of the board of directors of a nonprofit. d. An individual who will be participating in the direction, control, or management of the person applying for a license. Ordinance No. NS -XXX Page 3 of 28 75E-2-7 5. "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. 6. "Cannabis waste" means waste that is not hazardous waste, as defined in Public Resources Code section 40191, that contains cannabis and that has been made unusable and unrecognizable in the manner prescribed by the State. 7. "Canopy" means all of the following: a. The designated area(s) at a licensed premise that will contain mature plants at any point in time: b. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries: c. Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary such as an interior wall or by at least 10 feet of open space: and d. If mature plants are being cultivated using a shelving system the surface area of each level shall be included in the total canopy calculation 8. "City" means the City of Santa Ana, a charter city and municipal corporation. 9. "Commercial cannabis activity" includes the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, delivery, or sale of medicinal and adult -use cannabis or a cannabis product, except as set forth in Section 19319 of the Business and Professions Code, related to qualifying patients and primary caregivers, excepting medicinal cannabis retail. 10. "Commercial cannabis business" means a business that obtains a Regulatory Safety Permit and engages in the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, delivery, or sale of Ordinance No. NS -XXX Page 4 of 28 75E-2-8 adult -use cannabis, medicinal cannabis or an adult -use cannabis or medicinal cannabis product, except as related Business and Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as amended from time to time, excepting medicinal cannabis retail. 11. "Commercial vehicle" means a vehicle as defined in Vehicle Code section 260. 12. "Concentrated cannabis product" means a consolidation of cannabinoids made by dissolving cannabis in its plant form into a solvent. 13. "Cultivation" means any activity involving the propagation, planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Indoor cultivation means using exclusively artificial lighting -greater than 22,000 square feet 14. "Customer" means a natural person 21 years of age or over. 15. "Delivery" means the commercial transfer of cannabis or cannabis products from a retail cannabis business to a customer up to an amount determined to be authorized by the State of California, or any of its departments or divisions. "Delivery" also includes the use by a retail cannabis business of any technology platform owned, controlled, and/ or licensed by the retail cannabis business, or independently licensed by the State of California under the State law (as amended from time to time), that enables anyone to arrange for or facilitate the commercial transfer by a licensed retail cannabis business of cannabis or cannabis products. For the purposes of this article, "delivery" does not include distribution or purchase of cannabis from a licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed cannabis business or a wholesale establishment. 16. "Delivery employee" means an individual employed by a licensed retail cannabis business who delivers cannabis goods from the permitted retail premises to a medicinal cannabis patient or primary caregiver or customer at a physical address. 17. "Display" means cannabis goods that are stored in the licensed retail business during the hours of operation. 18. "Display case" means container in the licensed retail business where cannabis goods are stored and visible to customers. 19. "Distribution" means the procurement, sale, and transport of cannabis or cannabis products between entities licensed pursuant to the Medicinal and Adult - Ordinance No. NS -XXX Page 5 of 28 75E-2-9 Use of Cannabis Regulation and Safety Act and any subsequent State of California legislation regarding the same. 20. "Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for consumption. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. 21. "Free sample" means any amount of commercial cannabis goods provided to a purchaser of cannabis without cost or payment or exchange of any other thing of value. 22. "In -Lieu Fee Agreement' means a mitigation option used by the City to compensate for authorized impacts to City services and/or residents. 23. "License/Licensee" means a license issued by the State and includes both an A -license and an M -license, as well as a testing laboratory license, and the holder of such license. 24. "Limited -access area" means an area in which cannabis goods are stored or held and which is only accessible to a Licensee and the Licensee's employees and contractors. 25. "Manufacturer" means a Licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. 26. "Manufacturing" or "manufacturing operation" means all aspects of the extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, holding, or storing of components and ingredients. 27. "Medicinal cannabis" or "Medicinal cannabis product', means cannabis or a product containing cannabis, including, but not limited to, concentrates, and extractions, intended to be sold for use by medicinal cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. 28. "Medicinal cannabis patient" is a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, Ordinance No. NS -XXX Page 6 of 28 75E-2-10 chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 29. "Microbusiness" means a commercial cannabis business that cultivates cannabis on an area less than 10,000 square feet and acts as a licensed distributor, Level 1 manufacturer, and retailer. 30. "Non-volatile solvent' means any solvent used in the extraction process that is not a volatile solvent. For purposes of this chapter, a non-volatile solvent includes carbon dioxide used for extraction, or as it may be defined and amended by the State. 31. "Nursery" means a commercial cannabis Licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. 32. "Operating hours" means the hours within a day during which a permitted commercial cannabis business may allow cannabis customers to enter the retail premises and purchase cannabis goods. 33. "Outdoor Cultivation" means the cultivation of cannabis without the use of artificial lighting of any kind. Outdoor cultivation is prohibited within the City of Santa Ana. 34. "Ownership interest' means an interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of 5% or more. 35. "Package" and "Packaging" means any container or wrapper that may be used for enclosing or containing any cannabis goods for final retail sale. 'Package' and "packaging" does not include a shipping container or outer wrapping used solely for the transport of cannabis goods in bulk quantity to a Licensee. 36. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. 37. "Premises" means the designated structure(s) and land specified in the application that are in possession of and used by the applicant or Licensee to conduct the commercial cannabis activity. 38. "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code. Ordinance No. NS -XXX Page 7 of 28 75E-2-11 39. "Private Residence" shall have the same definition as that contained in Health and Safety Code section 11362.2(5) and also means a lawfully established structure, suitable for human occupancy as required by section 17922 and 17958 of the California Health and Safety Code. A recreational vehicle does not constitute a lawfully established structure for the purposes of this article. 40. "Private security officer" has the same meaning as that term as defined in the State of California Business and Professions Code section 7574.01. 41. "Publicly owned land" means any building or real property that is owned by a city, county, state, federal, or other government entity. 42. "Purchase" means obtaining cannabis goods in exchange for consideration. 43. "Purchaser" means a person who is engaged in a transaction with a Licensee for purposes of obtaining cannabis goods. 44. "Responsible person" means any of the following: a) A person who causes a Code violation to occur. b) A person who maintains or allows a Code violation to continue, his or her action or failure to act. c) A person whose agent, employee, or independent contractor causes a Code violation by its failure to act. d) A person who is the owner of, and/or a person who is a lessee or sub lessee with the current right of possession of, real property where property -related Code violation occurs. e) A person who is the on-site manager of a business who normally works daily at the site when the business is open and is responsible for the activities of such premises. For the purposes of this article "person" includes a natural person or legal entity, and the owners, majority stakeholders, corporate officers, trustees, and general partners of a legal entity. 45. "Retail area" means a building, room, or other area upon the licensed cannabis retail business premises in which cannabis goods are sold or displayed. 46. "Retail business" means a premises where adult -use cannabis, commercial cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination for retail sale, including an establishment that delivers cannabis or cannabis products as part of a retail sale. 47. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to this article to a commercial cannabis business. Ordinance No. NS -XXX Page 8 of 28 75E-2-12 48. "Security monitoring" means the continuous and uninterrupted attention to potential alarm signals that can be transmitted from a security alarm system for the purpose of summoning law enforcement. 49. "Sell," "sale," and "to sell' include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis goods pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis goods by a licensee to the licensee from whom such cannabis goods were purchased. 50. "Sublet' means to lease or rent all or part of a leased or rented property. 51. "State" means the State of California. 52. "Testing Laboratory" means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: a) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and, b) Licensed by the Bureau of Cannabis Control. 53. "Volatile solvent' means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include but are not limited to, butane, hexane, propane, and ethanol, or as it may be defined and amended by the State. 54. "Wholesale" means the sale of cannabis goods to a distributor for resale to one or more retail cannabis businesses. Section 40-3. Compliance with State and Local Licensing Requirements Any commercial cannabis business as defined by the State of California and the City of Santa Ana shall operate in conformance with all regulations and standards set forth in this article to assure that the operations of any commercial cannabis business as defined by the State of California and allowed by the City of Santa Ana are in compliance with local and State law and are established to mitigate any adverse secondary effects from its operations. Commercial cannabis businesses shall be required to obtain a Regulatory Safety Permit (RSP) from the City of Santa Ana and a State license once they become available, and shall comply with any applicable State licensing requirements, such as operational standards and locational criteria. Ordinance No. NS -XXX Page 9 of 28 75E-2-13 Multiple cannabis uses and licenses proposed on any one site shall occur only if authorized by the State and the City of Santa Ana and only if all uses proposed are allowed pursuant to the City's Zoning Code. Any cannabis activity not specifically permitted by this article is prohibited. Section 40-4. Maximum Number of Regulatory Safety Permits The total number of commercial cannabis businesses in operation shall be determined based on the number of locations which have been issued a Regulatory Safety Permit by the City of Santa Ana. In no case shall the City of Santa Ana allow more the than the following commercial cannabis businesses to operate within City limits, regardless of the location's compliance with any other Section specified in this article: A. 20 total cannabis indoor cultivation businesses. B. 20 total cannabis manufacturing businesses. C. 20 total cannabis medicinal retail businesses (as regulated by Article XIII of Chapter 18). D. 23 total cannabis adult -use retail businesses. E. 20 total cannabis distribution businesses. F. No cap on cannabis testing laboratory businesses. Section 40-5. Zoning Compliance and Regulatory Safety Permit Requirements Commercial cannabis activities are expressly prohibited in all zones in the City of Santa Ana; however, specific commercial cannabis businesses are allowed as a special use in the Industrial zone (M-1, M-2). Commercial cannabis businesses shall apply for and conduct business only in the appropriate zones as described in Table 40-5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a Regulatory Safety Permit. No commercial cannabis business may operate in the City of Santa Ana without a Regulatory Safety Permit. This Land Use Table 40-5 shall be used to determine whether a commercial cannabis business is permitted — "P", or not permitted — "X". Any commercial cannabis business in the City of Santa Ana shall also operate in compliance with the City's zoning ordinance. If a Zoning District is not listed in the Land Use Table in this section then the use is expressly not permitted. Ordinance No. NS -XXX Page 10 of 28 75E-2-14 commercial .. ., Cannabis Business,M'2 1 `RegulatoryAttivities . land Use Classification - Zone" Zone Permit Use Type F" ' Required P . Yes Cultivator Indoor - Type A Cultivator Indoor -TypeB P,•. P _' Yes Cultivator Indoor - Type C P P Yes Nursery Indoor/Outdoor - Type D " ;X, ." X:.. NA Manufacturing Manufacturing P , R Yes Retail Medicinal Retail P'' ,.P' Yes (SAMC Chapter 18) Retail Adult -Use Retail P. ', . `P Yes Testing No Retail sp " p' " Yes Laboratory Distribution FreightlTransport ; ^ "R " ' • P Yes Micro-BusinessDistribution Cultivation / Retail / Manufacture '' ."' ' NA Land Use Classifications: Commercial A - permitted cultivation area: 0 to 5,000 square feet Commercial B — permitted cultivation area: 5,001 to 10,000 square feet Commercial C — permitted cultivation area: 10,000 to 22,000 square feet Commercial D — permitted cultivation area: 22,000 square feet Section 40-6. Separation Requirements (a) No commercial cannabis business shall be located within 1,000 feet of any: (1) School (K-12) as defined by Section 11362.768 of the Health and Safety Code; or (2) Park; or (3) Existing Residential zone. (b) No cannabis retail business shall be located within 500 feet of another retail business, except for permitted co -location. (c) No separation requirements for all non -retail commercial cannabis businesses. Ordinance No. NS -XXX Page 11 of 28 75E-2-15 Section 40-7. Exceptions Commercial cannabis cultivation is expressly prohibited in all zones and all specific plan areas in the City except for Industrial zone (M-1, M-2); provided, however, that six (6) plants per private residence may be cultivated indoors within a legally permitted structure for personal use in compliance with all applicable local and State regulations. Section 40-8. General Provisions for Commercial Cannabis Activities in the City of Santa Ana 1. Commercial Cannabis Regulatory Safety Permit Required a. Each business shall obtain a Regulatory Safety Permit (RSP) specific to the business activity defined by the State pertaining to that activity. Following is a list of current permit types: I. Cultivation ii. Distribution iii. Manufacturing iv. Retail sales (Adult Use) v. Testing b. It shall be unlawful for any person, association, partnership or corporation to engage in, conduct or carry on, in or upon any premises within the City of Santa Ana any commercial cannabis business without a RSP. A cannabis business shall register and obtain a RSP from the City of Santa Ana prior to operation. The RSP applicant shall pay an annual non-refundable application fee in an amount established by the City Council. c. A copy of the RSP shall be displayed at all times in a place visible to the public. d. A RSP shall be valid for a period of one (1) year, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above -referenced period. 2. Maintenance of Records and Reporting All records shall be maintained by the commercial cannabis business for a period of five (5) years and shall be made available by the commercial cannabis business to an authorized City of Santa Ana representative upon request. If they are not produced as requested the City may seek a search warrant, subpoena, or court order. In addition to all other formats that the commercial cannabis business may maintain, these records shall be stored by the commercial cannabis business at the location in a printed format in a fire -proof safe. Any loss, damage or destruction of the records shall be reported to the Police Department within 24 hours of the loss, destruction or damage. Ordinance No. NS -XXX Page 12 of 28 75E-2-16 a. The business shall obtain and maintain a valid Seller's Permit from the State Board of Equalization. b. Financial records include, but are not limited to: bank statements, sales invoices, receipts, tax records, and all records required by the California State Board of Equalization under Title 18 California Code of Regulations section 1968. c. Personnel records, including each employee's full name, address, phone number, social security, or individual tax payer identification number, date of beginning employment, and date of termination of employment if applicable. d. Training records, including but not limited to the content of the training provided and the names of the employees that received the training. e. Contracts with other businesses regarding commercial cannabis activity. f. Permits, licenses, and other local authorizations to conduct the commercial cannabis activity. g. Security records. h. Proof of building ownership or landlord letter acknowledging business type. i. Proof of insurance. 3. Operational Standards for Commercial Cannabis Business Activities a. The location, interior and exterior, shall be monitored at all times by web -based closed circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained unaltered in a secure location for a period of not less than ninety (90) days. The police department may request the recordings in connection with an investigation. b. All controlled access areas, security rooms and all points of ingresslegress to limited access areas and all point of sale (POS) areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet. c. The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the police department or their designee on request. Ordinance No. NS -XXX Page 13 of 28 75E-2-17 d. The applicant shall conduct and pay for any required CEQA reviews and analyses, and pay for all costs, including those of the City, associated with project review under CEQA. e. Commercial cannabis businesses shall create and maintain an active account within the State's track and trace system prior to commencing any commercial cannabis activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available. f. No physical modification of the licensed premises is allowed without written prior permission by the City of Santa Ana and payment of any additional fees required by the City. g. Commercial cannabis business activities shall provide adequate off-street parking and comply with the City of Santa Ana Municipal Code parking requirements in order to service customers without causing negative impact. h. The commercial cannabis business shall provide adequate disabled access parking per the requirements in the California Building Code. i. The commercial cannabis business shall minimize nuisances such as trash, litter, and graffiti. j. Any and all signage, packaging, and facilities shall not be 'attractive', as it is defined by the State, to minors. k. Commercial cannabis business facilities shall be required to provide an air treatment system that ensures off-site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the facility if the use occupies only a portion of a building. I. A permitted commercial cannabis business entity shall have 180 days after permit issuance by the City of Santa Ana to begin initial operations, unless otherwise approved by the Director of Planning and or designee. A permitted commercial cannabis business entity that ceases to operate for more than 180 calendar days shall be deemed "abandoned" and the permit shall be forfeited. A business may temporarily suspend operations for a period of time as may be reasonably required to affect upgrades, modifications, repairs, or other property issue mitigations as approved by the Director of Planning or designee. Ordinance No. NS -XXX Page 14 of 28 75E-2-18 m. The commercial cannabis business shall comply with all State regulations regarding: i. Testing, labeling and storage of all cannabis products. ii. Use of appropriate weighing devices. iii. Electrical and plumbing regulations subject to periodic and unannounced inspections to ensure compliance. iv. State deadlines for applying for a State license and receiving a State license within six (6) months after the date the State begins issuing licenses. This may be waived if the State has longer delays in issuing licenses of the type the commercial cannabis business seeks. n. The commercial cannabis business shall meet all State and local regulations for the disposal of all cannabis materials and materials used in conjunction with processing, distributing and cultivating of cannabis. o. The commercial cannabis business shall conform to all State and local regulations regarding water usage. No liquids of any kind shall be discharged into a public or private sewage or drainage system, watercourse, body of water or into the ground, except in compliance with applicable regulations of the California Regional Water Quality Control Board (California Administrative Code, Title 23, Chapter 3). p. The commercial cannabis business shall maintain a comprehensive general liability combined single occurrence insurance policy issued by an "A" rated insurance carrier in an amount no less than Two Million Dollars, with primary coverage, naming the City of Santa Ana as additional insured. q. No free samples of any cannabis or cannabis product may be distributed at any time. r. All agents, private security officers or other persons acting for or employed by a commercial cannabis business shall display a laminated identification badge at least 2" X 2" in size, issued by the business. The badge, at a minimum, shall include the business's "doing business as" name and license number, the employees first and last name, and a color photo of the employee that shows the full front of the employee's face. s. All private security officers acting for or employed by a commercial cannabis business shall be licensed by the State and issued a business license from the City of Santa Ana. t. The commercial cannabis business shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or portion of the building where the commercial Ordinance No. NS -XXX Page 15 of 28 75E-2-19 cannabis business is located shall contain a fire -proof safe or fire proof filing cabinet and include a safety and security plan. u. The commercial cannabis business shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors and responds to the alarm system. The alarm company shall obtain a City of Santa Ana business license. v. The commercial cannabis business shall provide the name and phone number of an on-site staff person to the police department and the Code Enforcement Division of the Planning and Building Agency for notification if there are operational problems with the establishment. w. The commercial cannabis business must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining their regulatory safety permit. x. Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. y. For any commercial cannabis business with two (2) or more employees, the business owner shall attest that he/she has entered into a labor peace agreement and provide a copy of the agreement to the City. z. Each commercial cannabis business owner, operator(s) and employee(s) shall complete a criminal background check and wear a visible photo ID at all times during working hours. Owners operators employees managers or volunteers may not have been convicted of or pledguilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years: nor shall they be a person required to register as a controlled substance offender pursuant to Health & Safety Code section 11590. 4. Additional Operational Standards for Adult -use Retail Business a. At all times the adult -use retail business is open, it shall provide at least one private security guard who is licensed, possesses a valid Department of Consumer Affairs "security guard card", and has a valid business license from the City of Santa Ana. b. The private security guard and adult -use retail business personnel shall monitor the site and the immediate vicinity of the site to ensure that patrons immediately leave the site and do not consume cannabis in the vicinity of the retail business or on the property or in the parking lot. Ordinance No. NS -XXX Page 16 of 28 75E-2-20 c. Exterior signage shall comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. Interior signage or advertising may not be visible from the exterior. Retail businesses must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. d. There shall be no on-site sales of alcohol or tobacco products, (excluding rolling papers and lighters) and no on-site consumption of food, alcohol or tobacco by patrons. e. Hours of operation shall be limited to: 7 a.m. to 11 p.m. daily. No licensed retail business shall be open to the public between the hours of 11:01 p.m. and 6:59 a.m. of any day. f. An adult -use retail business shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: Secondary sale, barter or distribution of adult -use cannabis is a crime and can lead to arrest. ii. That loitering on and around the retail site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume cannabis in the vicinity of the retail site or on the property or in the parking lot. iii. A warning that patrons may be subject to prosecution under federal cannabis laws. iv. That the use of cannabis may impair a person's ability to drive a motor vehicle or operate machinery. g. No one under the age of 21 shall be allowed to enter an Adult -use facility unless the licensed adult -use facility holds a medicinal use cannabis retail license issued by the State and the licensed premises for the adult -use cannabis license and medicinal cannabis license are the same in accordance with Business and Professions Code section 26140. h. If food is distributed, the retail business shall comply with all relevant State laws, County and City ordinances pertaining to the preparation, distribution and sale of food. i. All retail businesses shall establish and implement a program to incentivize the recycling of used containers. j. Retail businesses shall also record on the video surveillance system point-of-sale areas and areas where cannabis goods are displayed for sale. Ordinance No. NS -XXX Page 17 of 28 75E-2-21 k. Adequate signage shall clearly state who has inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location. I. Shipments of cannabis goods may only be accepted during regular business hours. m. Inventory shall be secured using a lockable storage system during non -business hours. n. No cannabis product shall be visible form the exterior of the business. o. All required labelling shall be maintained on all product, as required by State law, at all times. p. Educational tours of adult -use retail cannabis businesses shall be allowed. 5. Additional Operational Standards for Commercial Cannabis Delivery Services a. Commercial cannabis deliveries may be made only from a commercial cannabis retail business permitted by the City in compliance with this article, and in compliance with all State regulations. b. All employees who deliver cannabis shall have valid identification and a copy of the commercial cannabis retail business' Regulatory Safety Permit and State license at all times while making deliveries. c. All commercial cannabis delivery businesses shall maintain proof of vehicle insurance for any and all vehicles being used to transport cannabis goods as required by State law. d. Deliveries may only take place during normal business hours of the commercial cannabis retail business. e; During delivery, the delivery employee shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers. The delivery request documentation shall comply with State law. f. A licensed delivery employee shall not leave the State of California while possessing cannabis products. g. A commercial cannabis retail business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State. Ordinance No. NS -XXX Page 18 of 28 75E-2-22 h. A manifest with all information required in this section shall accompany any delivery person at all times during the delivery process and delivery hours. I. Any delivery method shall be made in compliance with State law, as amended, including use of a vehicle that has a dedicated GPS device for identifying the location of the vehicle (cell phones and tablets are not sufficient). j. Each delivery request shall have a receipt prepared by the retail business with the following information: i. Name and address of the retail business ii. The name of the employee who delivered the order iii. The date and time the delivery request was made iv. The complete delivery addresses v. A detailed description of the cannabis goods requested for delivery including the weight or volume, or any accurate measure of the amount of cannabis goods requested. vi. The total amount paid for the delivery including any fees or taxes. k. At the time of the delivery, the date and time delivery was made, and the signature of the person who received the delivery. I. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement with the exception of a maximum four -inch by four -inch decal. m. Inspections by an authorized City of Santa Ana representative may be a conducted anytime during regular business hours. 6. Additional Operational Standards for Manufacturing Cannabis Businesses a. Commercial cannabis manufacturing facilities are prohibited from using volatile solvents in the manufacturing process as defined in the California Health and Safety Code 11362.3(d) and as further defined in the California Health and Safety Code 11362.775(b)(1)(A) and as amended from time to time, unless a conditional use permit (CUP) for volatile solvents is applied for and granted pursuant to Chapter 41 of the Santa Ana Municipal Code. b. A licensed commercial cannabis non-volatile manufacturing facility may conduct all activities permitted by the State. This includes but is not limited to, non-volatile extractions, repackaging and relabeling, infusions and extractions. c. Any manufacturing activity that will be conducted by the commercial cannabis business shall be included on the application. No additional manufacturing activity can be conducted without applying for and receiving written permission from the City of Santa Ana for that additional activity. Ordinance No. NS -XXX Page 19 of 28 75E-2-23 d. At all times, the commercial cannabis manufacturing facility will be compliant with all State regulations for cannabis manufacturing including Health and Safety Code 11362.775, as amended from time to time. Signage shall be posted regarding chemicals being used at the manufacturing facility. e. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. f. Cannabis manufacturing facilities shall not contain an exhibition or product sales area or allow for retail distribution of products at that location. g. Educational tours of cannabis manufacturing businesses shall be allowed. 7. Additional Operational Standards for Indoor Cannabis Cultivation Businesses a. From a public right-of-way, there shall be no exterior evidence of cannabis cultivation. b. The Building Official may require additional specific standards to meet the California Building Code and Fire Code, including but not limited to installation of fire suppression sprinklers. c. Compliance with Section 13149 of Water Code as enforced by the State Water Resources Control Board. d. Educational tours of indoor cannabis cultivation businesses shall be allowed. 8. Additional Operational Standards for Cannabis Testing Laboratory Businesses a. A licensed cannabis testing facility business, its owners and employees may not hold an interest in any other cannabis business except another testing business. b. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. c. Educational tours of cannabis testing laboratory businesses shall be allowed. 9. Additional Operational Standards for Cannabis Distribution Businesses a. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. b. A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor's premises. Ordinance No. NS -XXX Page 20 of 28 75E-2-24 c. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from the storage areas. d. Educational tours of cannabis distribution businesses shall be allowed. Section 40-8. Commercial Cannabis Selection Process 1. Commercial Cannabis — Registration Application and Regulatory Safety Permit Required The Commercial Cannabis Regulatory Safety Permit ('RSP") selection process will be conducted in two phases, Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application). Registration Applications will be reviewed by the Director of Planning and Building or designees(s) for completeness and compliance, and if eligible, will be placed on the 'Regulatory Safety Permit ('RSP") Eligibility List' and entered into the Phase 2 Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has established a merit based point system to objectively award permits as described in the Regulatory Safety Permit Application. 2. Phase 1 — Registration Application a. Following the adoption of this article, the Director of Planning and Building shall prepare commercial cannabis business registration application forms and a related administrative policy. Each commercial cannabis business interested in operating pursuant to this article may submit an application together with a non- refundable processing fee in an amount established by the City Council. b. The Registration Application period shall be thirty (30) calendar days from the date the applications are released. Following the application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 1. Each application that is complete and in compliance with the application requirements in Phase 1 shall be placed on the 'RSP Eligibility List' and shall be notified in writing whether they are a 'RSP Eligible Applicant' or not. Each applicant on the RSP Eligibility List may then choose to file an application for a RSP in Phase 2. c. The requirements for Phase 1 include but are not limited to: I. All application documents required in the City's Phase 1 Registration Application package. ii. Application was submitted during the application period. iii. Application forms are filled out completely. Ordinance No. NS -XXX Page 21 of 28 75E-2-25 iv. Business Owner(s)/Applicant(s) referenced on the application provides a Live Scan that was conducted within 14 days prior to submitting the application. V. Phase 1 application fee is paid. vi. A signed statement that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this article including, but not limited to, any and all sensitive use separation criteria required by this article. d. The Director of Planning and Building or designee(s) shall determine whether each application demonstrates compliance with the minimum requirements (above) and be placed on the RSP Eligibility List and entered into the Phase 2 application and review process. e. The Director of Planning and Building or designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified in writing of the deficiencies. The applicant shall be given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period is applicable. 3. Phase 2 - Regulatory Safety Permit Application a. Each applicant identified on the RSP Eligibility List may choose to complete and file a RSP application to the Director of Planning and Building. The application shall be filed together with a nonrefundable fee as established by resolution of the City Council, to defray the cost of investigation required by this article. b. The RSP application period shall be open for thirty (30) calendar days and may run concurrently with the Phase 1 review period. Following the RSP application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 2. c. The Director of Planning and Building or designee(s) will review all application documents required in the City's Phase 2 application package plus the additional requirements in subsection (d) below. The Director of Planning and Building or designee(s) will use a merit based point system to review and rank each of applications from the most to the least points and objectively award the top applicants a RSP. A complete description of the merit based point system and all merit based point considerations shall be included with the application forms. d. Phase 2 requirements include but are not limited to: Ordinance No. NS -XXX Page 22 of 28 75E-2-26 L All application documents required in the City's Phase 2 RSP application package. ii. Phase 2 application fee is paid and a comprehensive owner background check is completed. iii. The Building Official or designee has inspected all structures in which the use is located to determine that all applicable standards and requirements are met. If a building permit is required for site improvements, Permit issuance will be deferred until a certificate of occupancy or other building permit approval is issued. Additionally, the Building Official has determined that there are no notices of nuisance or other code compliance issues recorded or on the property. iv. The Planning Manager or designee has issued a Zoning Clearance documenting compliance with the following: 1. The use is permitted; 2. All land use permits, if any, have been approved and all conditions of approval have been met or are in good standing; 3. No zoning violations exist on the property; and e. The Director of Planning and Building or designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified that business day of the deficiencies. The applicant shall be -given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period is applicable. 4. Regulatory Safety Permit Annual Renewal a. Applications for the renewal of a permit shall be filed with the Director of Planning and Building or designee(s) at least sixty (60) calendar days before the expiration of the current permit. Temporary permits will not be issued. Any permittee allowing their permit to lapse or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees and be subject to all aspects of the selection process. b. Any person desiring to obtain a renewal of their respective permit shall file a written application under penalty of perjury on the required form with the Director of Planning and Building or designee(s) who will conduct a review. The application shall be accompanied by a nonrefundable filing fee established by the City Council to defray the cost of the review required by this article. An applicant shall be required to update the information contained in their original permit application and provide any new and/or additional information as may be Ordinance No. NS -XXX Page 23 of 28 75E-2-27 reasonably required by the Director of Planning and Building or designee(s) in order to determine whether said permit should be renewed. 5. Appeal of Denial of Regulatory Safety Permit / Denial of RSP Renewal The City Manager or designee(s) will review all Regulatory Safety Permit applications and renewal requests, along with all other relevant information, and determine if a RSP should be granted and/or renewed. If the City Manager determines that the permit shall not be granted and/or renewed, the reasons for denial shall be provided in writing to the applicant. No such denial shall become effective until the applicant for the regulatory safety permit and/or renewal has been notified in writing by certified mail of the right to appeal the denial decision pursuant to the provisions of Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon decision of the City Council. Otherwise, the denial shall become effective after the timely appeal period has passed. The matter may be subject to judicial review under the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6. Section 40-9. Audits. Annual audits. No later than June 30Th of every year, each licensed commercial cannabis business shall file with the City an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the Executive Director of Finance and Management Services, or designee(s). Section 40-10. Inspection and enforcement responsibilities. The Code Enforcement Division of the Planning and Building Agency may enter and inspect the location of any commercial cannabis business between the hours of 7: 00 a.m. and 11:00 p.m., or at any reasonable time, to ensure compliance with this article. In addition, a designated unit within the police department may enter and inspect the location of any commercial cannabis business and the recordings and records maintained as required by this article, except that the inspection and copying of private medical records shall be made available to the police department only pursuant to a properly executed search warrant, subpoena, or court order. It is unlawful for any owner, responsible person, landlord, lessee, member including but not limited to a member engaged in the management), or any other person having any responsibility over the operation of the commercial cannabis business to refuse to allow, impede, obstruct or interfere with an inspection, review or copying of records and closed- circuit monitoring authorized and required under this article, including but not limited to, the concealment, destruction, and falsification of any recordings, records, or monitoring. Ordinance No. NS -XXX Page 24 of 28 75E-2-28 Section 40-11. Violation and enforcement. 1. Violation/enforcement. Each and every violation of this article shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this Code. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, revocation of the commercial cannabis business registration, revocation of the certificate of occupancy for the location, disgorgement and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity. The City may also pursue any and all remedies and actions available and applicable under local and State laws for any violations committed by the commercial cannabis business and persons related or associated with the business. 2. Suspension or revocation. When an authorized City of Santa Ana representative finds that any person holding a regulatory safety permit under the provisions of Chapter 40 has violated the provisions of this chapter or is found guilty of conduct which would form the basis of denial of the regulatory safety permit as set forth in Article XIII of Chapter 18, s/he may revoke or suspend the permit. No such revocation shall become effective until the regulatory safety permit holder has been notified in writing by certified mail of the right to appeal the revocation decision pursuant to the provisions or Chapter 3 of this Code. If a timely appeal is filed, the revocation shall be effective only upon decision of the City Council. Otherwise, the revocation shall become effective after the timely appeal period has passed. Section 40-12. Transfer of Ownership. 1. Upon the transfer of any interest in a commercial cannabis business, the regulatory safety permit shall be null and void. Any person, firm or entity desiring to own operate the commercial cannabis business shall make a new application. Prior to or concurrent with the submission of said application the transferee shall obtain all required business licenses, post all required security deposits, acquire all necessary, certificates, permits or other licenses allowing the doing of any act which the person paying or holding the same would not otherwise be entitled to do; and any permit, license, variance or other instrument of approval or evidence that any conditions exist as required by any other section of this Code or by any statute or code provisions of the state must first be obtained or complied with before the doing of any act or thing for which it is required. A fee as established by resolution of the City Council shall be payable for each such application involving transfer of any interest in an existing commercial cannabis business. The provisions of this section shall apply to any person, firm, or entity applying for a regulatory safety permit for premises previously used as such establishment. Ordinance No. NS -XXX Page 25 of 28 75E-2-29 2. Any such transfer of any interest in an existing commercial cannabis business or any application for an extension or expansion of the building or other place of business of the commercial cannabis business shall require inspection and compliance with section 40-10 of this article. 3. The owner or operator of a commercial cannabis business shall be responsible for notifying the City of any intention to rename, change management, or convey the business to another person/entity. Notification to the City must be made a minimum of sixty (60) days prior to such transfer. Section 40-13. Limitations on the City's Liability To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any Regulatory Safety Permits pursuant to this article or the operation of any commercial cannabis business approved pursuant to this chapter. As a condition of approval of a Regulatory Safety Permit as provided in this chapter, the applicant or its legal representative shall: 1. Execute an agreement indemnifying the City from any claims, damages, injuries or liabilities of any kind associated with the registration or operation of the commercial cannabis facility or the prosecution of the applicant or business or its members for violation of federal or State laws; 2. Maintain insurance in the amounts and types that are acceptable to the City Attorney or designee; 3. Name the City as an additionally insured on all City required insurance policies; 4. Agree to defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a Regulatory Safety Permit; and 5. Agree to indemnify and reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to this ordinance and/or the City's approval of a Regulatory Safety Permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. Section 40-14. Fees and Taxes All commercial cannabis businesses shall pay applicable fees and taxes, which may shall include one or more of the following: Ordinance No. NS -XXX Page 26 of 28 75E-2-30 1. Application Fees. The business owner shall submit a non-refundable fee to cover the cost of processing an application for the commercial cannabis business. These fees may be divided into two fees according to Registration Application (Phase 1) and RSP Application (Phase 2). 2. Regulatory Safety Permit Renewal Fees. The business owner shall submit a non- refundable fee to cover the cost of processing an application renewal annually. 3. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all business taxes required by the Santa Ana Municipal Code. 4. In -Lieu Agreement Fees. 5. Additional cannabis -specific gross receipts, excise, cultivation or any other tax approved by the voters of the City of Santa Ana. 6. All required taxes including sales and use taxes, business, payroll etc. 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 day of 2017. APPROVED AS TO FORM Sonia R. Carvalho, City Attorney 0 Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75E-2-31 Ordinance No. NS -XXX Page 27 of 28 AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: 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- to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75E-2-32 Ordinance No. NS -XXX Page 28 of 28 CLEAN VERSION Exhibit 2 75E-2-33 75E-2-34 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF SANTA ANA CREATING CHAPTER 40 OF THE SANTA ANA MUNICIPAL CODE, "REGULATION OF COMMERCIAL CANNABIS", TO REGULATE COMMERCIAL CANNABIS ACTIVITIES, EXCEPTING MEDICINAL RETAIL THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana herby finds, determines and declares as follows: A. In 1996, the California electorate approved Proposition 215, the Compassionate Use Act which allows a patient, with a doctors recommendation, to use cannabis for medical purposes without the fear of prosecution or arrest. B. In 2003, the California legislature passed Senate Bill 420 (Medical Marijuana Program Act) which amended the Health and Safety Code to permit the establishment of medical cannabis dispensaries for the distribution of cannabis for medical purposes. C. In 2005, the California Board of Equalization began issuing seller's permits for sales consisting of medical cannabis. D. In 2008, the California Attorney General issued guidelines for the security and non -diversion of cannabis grown for medical use. E. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and the retail sale thereof. F. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA") further amended in 2016 as the Medical Cannabis Regulation and Safety Act ("MCRSA"), which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. G. In 2016, the voters of the State of California approved and passed Proposition 64 also known as the Adult Use of Marijuana Act ("AUMA"). Ordinance No. NS -XXX Page 1 of 28 75E-2-35 H. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). I. Health & Safety Code Section 11362.83 provides that cities are free to adopt and enforce local ordinances that regulate the location, operation, or establishment of medical cannabis. J. The City Council of the City of Santa Ana intends that nothing in this article shall be deemed to conflict with federal law as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or other applicable law. K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not distributed in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access of cannabis to residents. Section 2. This Ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including by not limited to, Article IX, Section 7 of the California Constitution, the Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act (AB 266, AB 243, and SB 643; hereafter "MMRSA"), the Adult Use of Marijuana Act (Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act (SB 94; hereafter "MAUCRSA"). Section 3. 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 4. The City hereby amends the Santa Ana Municipal Code ("SAMC") by adding Article 1 to Chapter 40, entitled 'Regulation of Commercial Cannabis Activities" as follows: Chapter 40 ARTICLE 1. REGULATION OF COMMERCIAL CANNABIS ACTIVITIES Section 40-1. Purpose and Intent. The purpose and intent of this article is to regulate commercial cannabis business activities, as defined in this article, in order to ensure the health, safety and welfare of Ordinance No. NS -XXX Page 2 of 28 75E-2-36 the residents of the City of Santa Ana by establishing regulations necessary for a commercial cannabis business to obtain and maintain a Regulatory Safety Permit. Any commercial cannabis businesses operating in the City of Santa Ana shall at all times be in compliance with current State Law and this article. All commercial cannabis facilities shall operate in accordance with the regulations in this article and with the conditions of approval associated with the applicable zone for the parcel of real property upon which the commercial cannabis activities are conducted. Any commercial cannabis business shall qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as provided by this article and operate only in a zone in compliance with Santa Ana Municipal Code before commencing with any commercial cannabis activity. Any commercial cannabis business without a Regulatory Safety Permit is in violation of this article. The regulations in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code (collectively referred to as "State Law") do not interfere with the right to use cannabis or medical cannabis as authorized under State Law, nor do they criminalize the possession or commercial activities of cannabis or medical cannabis as authorized under State Law. Section 40-2. Definitions The definitions are incorporated herein as fully set forth and are applicable to this article. All definitions are intended to comply with those set forth by the State of California for all commercial cannabis activities. 1. "Applicant' means a person who is required to file an application for a permit under this article, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of a commercial cannabis business. 2. "Adult -use" means cannabis or cannabis products that are intended to be used for non -medicinal purposes by a person 21 years of age or older. 3. "Authorized City of Santa Ana representative" any police officer, city employee or agent of the city designated by the director of any city department which has the authority and responsibility to enforce provisions as set forth in this article. 4. "Business owner" means any of the following: a. A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. b. The chief executive officer of a nonprofit or other entity. c. A member of the board of directors of a nonprofit. d. An individual who will be participating in the direction, control, or management of the person applying for a license. Ordinance No. NS -XXX Page 3 of 28 75E-2-37 5. "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. 6. "Cannabis waste" means waste that is not hazardous waste, as defined in Public Resources Code section 40191, that contains cannabis and that has been made unusable and unrecognizable in the manner prescribed by the State. 7. "Canopy" means all of the following: a. The designated area(s) at a licensed premise that will contain mature plants at any point in time; b. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries; c. Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary such as an interior wall or by at least 10 feet of open space; and d. If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. 8. "City" means the City of Santa Ana, a charter city and municipal corporation. 9. "Commercial cannabis activity" includes the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, delivery, or sale of medicinal and adult -use cannabis or a cannabis product, except as set forth in Section 19319 of the Business and Professions Code, related to qualifying patients and primary caregivers, excepting medicinal cannabis retail. 10."Commercial cannabis business" means a business that obtains a Regulatory Safety Permit and engages in the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, delivery, or sale of Ordinance No. NS -XXX Page 4 of 28 75E-2-38 adult -use cannabis, medicinal cannabis or an adult -use cannabis or medicinal cannabis product, except as related Business and Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as amended from time to time, excepting medicinal cannabis retail. 11. "Commercial vehicle" means a vehicle as defined in Vehicle Code section 260 12. "Concentrated cannabis product' means a consolidation of cannabinoids made by dissolving cannabis in its plant form into a solvent. 13. "Cultivation" means any activity involving the propagation, planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Indoor cultivation means using exclusively artificial lighting greater than 22,000 square feet, inclusive, of total canopy size on one premises, in accordance with Business & Professions Code section 26061(c)(2). 14. "Customer" means a natural person 21 years of age or over. 15. "Delivery" means the commercial transfer of cannabis or cannabis products from a retail cannabis business to a customer up to an amount determined to be authorized by the State of California, or any of its departments or divisions. "Delivery" also includes the use by a retail cannabis business of any technology platform owned, controlled, and/ or licensed by the retail cannabis business, or independently licensed by the 'State of California under the State law (as amended from time to time), that enables anyone to arrange for or facilitate the commercial transfer by a licensed retail cannabis business of cannabis or cannabis products. For the purposes of this article, "delivery" does not include distribution or purchase of cannabis from a licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed cannabis business or a wholesale establishment. 16. "Delivery employee" means an individual employed by a licensed retail cannabis business who delivers cannabis goods from the permitted retail premises to a medicinal cannabis patient or primary caregiver or customer at a physical address. 17. "Display" means cannabis goods that are stored in the licensed retail business during the hours of operation. 18. "Display case" means container in the licensed retail business where cannabis goods are stored and visible to customers. 19. "Distribution" means the procurement, sale, and transport of cannabis or cannabis products between entities licensed pursuant to the Medicinal and Adult - Ordinance No. NS -XXX Page 5 of 28 75E-2-39 Use of Cannabis Regulation and Safety Act and any subsequent State of California legislation regarding the same. 20. "Edible cannabis product' means manufactured cannabis that is intended to be used, in whole or in part, for consumption. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. 21. "Free sample" means any amount of commercial cannabis goods provided to a purchaser of cannabis without cost or payment or exchange of any other thing of value. 22. "In -Lieu Fee Agreement" means a mitigation option used by the City to compensate for authorized impacts to City services and/or residents. 23. "License/Licensee" means a license issued by the State and includes both an A -license and an M -license, as well as a testing laboratory license, and the holder of such license. 24. "Limited -access area" means an area in which cannabis goods are stored or held and which is only accessible to a Licensee and the Licensee's employees and contractors. 25. "Manufacturer" means a Licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. 26. "Manufacturing" or "manufacturing operation" means all aspects of the extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, holding, or storing of components and ingredients. 27. "Medicinal cannabis" or "Medicinal cannabis product", means cannabis or a product containing cannabis, including, but not limited to, concentrates, and extractions, intended to be sold for use by medicinal cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. 28. "Medicinal cannabis patient" is a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, Ordinance No. NS -XXX Page 6 of 28 75E-2-40 chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 29. "Microbusiness" means a commercial cannabis business that cultivates cannabis on an area less than 10,000 square feet and acts as a licensed distributor, Level 1 manufacturer, and retailer. 30. "Non-volatile solvent" means any solvent used in the extraction process that is not a volatile solvent. For purposes of this chapter, a non-volatile solvent includes carbon dioxide used for extraction, or as it may be defined and amended by the State. 31. "Nursery" means a commercial cannabis Licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. 32. "Operating hours' means the hours within a day during which a permitted commercial cannabis business may allow cannabis customers to enter the retail premises and purchase cannabis goods. 33. "Outdoor Cultivation" means the cultivation of cannabis without the use of artificial lighting of any kind. Outdoor cultivation is prohibited within the City of Santa Ana. 34. "Ownership interest' means an interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of 5% or more. 35. "Package" and "Packaging" means any container or wrapper that may be used for enclosing or containing any cannabis goods for final retail sale. 'Package' and "packaging" does not include a shipping container or outer wrapping used solely for the transport of cannabis goods in bulk quantity to a Licensee. 36. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. 37. "Premises" means the designated structure(s) and land specified in the application that are in possession of and used by the applicant or Licensee to conduct the commercial cannabis activity. 38. "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code. Ordinance No. NS -XXX Page 7 of 28 75E-2-41 39. "Private Residence" shall have the same definition as that contained in Health and Safety Code section 11362.2(5) and also means a lawfully established structure, suitable for human occupancy as required by section 17922 and 17958 of the California Health and Safety Code. A recreational vehicle does not constitute a lawfully established structure for the purposes of this article. 40. "Private security officer" has the same meaning as that term as defined in the State of California Business and Professions Code section 7574.01. 41. "Publicly owned land" means any building or real property that is owned by a city, county, state, federal, or other government entity. 42. "Purchase" means obtaining cannabis goods in exchange for consideration. 43. "Purchaser" means a person who is engaged in a transaction with a Licensee for purposes of obtaining cannabis goods. 44. "Responsible person" means any of the following: a) A person who causes a Code violation to occur. b) A person who maintains or allows a Code violation to continue, his or her action or failure to act. c) A person whose agent, employee, or independent contractor causes a Code violation by its failure to act. d) A person who is the owner of, and/or a person who is a lessee or sub lessee with the current right of possession of, real property where property -related Code violation occurs. e) A person who is the on-site manager of a business who normally works daily at the site when the business is open and is responsible for the activities of such premises. For the purposes of this article "person' includes a natural person or legal entity, and the owners, majority stakeholders, corporate officers, trustees, and general partners of a legal entity. 45. "Retail area" means a building, room, or other area upon the licensed cannabis retail business premises in which cannabis goods are sold or displayed. 46. "Retail business" means a premises where adult -use cannabis, commercial cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination for retail sale, including an establishment that delivers cannabis or cannabis products as part of a retail sale. 47. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to this article to a commercial cannabis business. Ordinance No. NS -XXX Page 8 of 28 75E-2-42 48. "Security monitoring" means the continuous and uninterrupted attention to potential alarm signals that can be transmitted from a security alarm system for the purpose of summoning law enforcement. 49. "Sell," "sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis goods pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis -goods by a licensee to the licensee from whom such cannabis goods were purchased. 50. "Sublet" means to lease or rent all or part of a leased or rented property. 51. "State" means the State of California. 52. "Testing Laboratory" means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: a) Accredited. by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and, b) Licensed by the Bureau of Cannabis Control. 53. "Volatile solvent' means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include but are not limited to, butane, hexane, propane, and ethanol, or as it may be defined and amended by the State. 54. "Wholesale" means the sale of cannabis goods to a distributor for resale to one or more retail cannabis businesses. Section 40-3. Compliance with State and Local Licensing Requirements Any commercial cannabis business as defined by the State of California and the City of Santa Ana shall operate in conformance with all regulations and standards set forth in this article to assure that the operations of any commercial cannabis business as defined by the State of California and allowed by the City of Santa Ana are in compliance with local and State law and are established to mitigate any adverse secondary effects from its operations. Commercial cannabis businesses shall be required to obtain a Regulatory Safety Permit (RSP) from the City of Santa Ana and a State license once they become available, and shall comply with any applicable State licensing requirements, such as operational standards and locational criteria. Ordinance No. NS -XXX Page 9 of 28 75E-2-43 Multiple cannabis uses and licenses proposed on any one site shall occur only if authorized by the State and the City of Santa Ana and only if all uses proposed are allowed pursuant to the City's Zoning Code. Any cannabis activity not specifically permitted by this article is prohibited. Section 40-4. Maximum Number of Regulatory Safety Permits The total number of commercial cannabis businesses in operation shall be determined based on the number of locations which have been issued a Regulatory Safety Permit by the City of Santa Ana. In no case shall the City of Santa Ana allow more the than the following commercial cannabis businesses to operate within City limits, regardless of the location's compliance with any other Section specified in this article: A. 20 total cannabis indoor cultivation businesses. B. 20 total cannabis manufacturing businesses. C. 20 total cannabis medicinal retail businesses (as regulated by Article XIII of Chapter 18). D. 23 total cannabis adult -use retail businesses E. 20 total cannabis distribution businesses. F. No cap on cannabis testing laboratory businesses. Section 40-5. Zoning Compliance and Regulatory Safety Permit Requirements Commercial cannabis activities are expressly prohibited in all zones in the City of Santa Ana; however, specific commercial cannabis businesses are allowed as a special use in the Industrial zone (M-1, M-2). Commercial cannabis businesses shall apply for and conduct business only in the appropriate zones as described in Table 40-5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a Regulatory Safety Permit. No commercial cannabis business may operate in the City of Santa Ana without a Regulatory Safety Permit. This Land Use Table 40-5 shall be used to determine whether a commercial cannabis business is permitted — "P", or not permitted — "X". Any commercial cannabis business in the City of Santa Ana shall also operate in compliance with the City's zoning ordinance. If a Zoning District is not listed in the Land Use Table in this section then the use is expressly not permitted. Ordinance No. NS -XXX Page 10 of 28 75E-2-44 Land Use Classifications: Commercial A - permitted cultivation area: 0 to 5,000 square feet Commercial B — permitted cultivation area: 5,001 to 10,000 square feet Commercial C — permitted cultivation area: 10,000 to 22,000 square feet Commercial D — permitted cultivation area: 22,000 square feet Section 40-6. Separation Requirements (a) No commercial cannabis business shall be located within 1,000 feet of any: (1) School (K-12) as defined by Section 11362.768 of the Health and Safety Code; or (2) Park; or (3) Existing Residential zone. (b) No cannabis retail business shall be located within 500 feet of another retail business, except for permitted co -location. (c) No separation requirements for all non -retail commercial cannabis businesses. Ordinance No. NS -XXX Page 11 of 28 75E-2-45 1 M 2 Regulatory, Land Use -Classification Zo . e Permit Required Indoor - Type A FBF- P Yes Cultivator Cultivator Indoor - Type B;P P Yes Cultivator Indoor - Type C wF,a P Yes Nursery Indoor/Outdoor - Type D Xi X; NA Manufacturing Manufacturing Yes Medicinal Retail ' a Yes Retail (SAMC Chapter 18) P Retail Adult -Use Retail LIDO 3 SMI Yes Testing No Retail MIM Yes Laboratory Distribution Freight/TransportF P Yes Micro -Business Cultivation / Retail / Manufacture Distribution NA Land Use Classifications: Commercial A - permitted cultivation area: 0 to 5,000 square feet Commercial B — permitted cultivation area: 5,001 to 10,000 square feet Commercial C — permitted cultivation area: 10,000 to 22,000 square feet Commercial D — permitted cultivation area: 22,000 square feet Section 40-6. Separation Requirements (a) No commercial cannabis business shall be located within 1,000 feet of any: (1) School (K-12) as defined by Section 11362.768 of the Health and Safety Code; or (2) Park; or (3) Existing Residential zone. (b) No cannabis retail business shall be located within 500 feet of another retail business, except for permitted co -location. (c) No separation requirements for all non -retail commercial cannabis businesses. Ordinance No. NS -XXX Page 11 of 28 75E-2-45 Section 40-7. Exceptions Commercial cannabis cultivation is expressly prohibited in all zones and all specific plan areas in the City except for Industrial zone (M-1, M-2); provided, however, that six (6) plants per private residence may be cultivated indoors within a legally permitted structure for personal use in compliance with all applicable local and State regulations. Section 40-8. General Provisions for Commercial Cannabis Activities in the City of Santa Ana 1. Commercial Cannabis Regulatory Safety Permit Required a. Each business shall obtain a Regulatory Safety Permit (RSP) specific to the business activity defined by the State pertaining to that activity. Following is a list of current permit types: i. Cultivation ii. Distribution iii. Manufacturing iv. Retail sales (Adult Use) v. Testing b. It shall be unlawful for any person, association, partnership or corporation to engage in, conduct or carry on, in or upon any premises within the City of Santa Ana any commercial cannabis business without a RSP. A cannabis business shall register and obtain a RSP from the City of Santa Ana prior to operation. The RSP applicant shall pay an annual non-refundable application fee in an amount established by the City Council. c. A copy of the RSP shall be displayed at all times in a place visible to the public. d. A RSP shall be valid for a period of one (1) year, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above -referenced period. 2. Maintenance of Records and Reporting All records shall be maintained by the commercial cannabis business for a period of five (5) years and shall be made available by the commercial cannabis business to an authorized City of Santa Ana representative upon request. If they are not produced as requested the City may seek a search warrant, subpoena, or court order. In addition to all other formats that the commercial cannabis business may maintain, these records shall be stored by the commercial cannabis business at the location in a printed format in a fire -proof safe. Any loss, damage or destruction of the records shall be reported to the Police Department within 24 hours of the loss, destruction or damage. Ordinance No. NS -XXX Page 12 of 28 75E-2-46 a. The business shall obtain and maintain a valid Seller's Permit from the State Board of Equalization. b. Financial records include, but are not limited to: bank statements, sales invoices, receipts, tax records, and all records required by the California State Board of Equalization under Title 18 California Code of Regulations section 1968. c. Personnel records, including each employee's full name, address, phone number, social security, or individual tax payer identification number, date of beginning employment, and date of termination of employment if applicable. d. Training records, including but not limited to the content of the training provided and the names of the employees that received the training. e. Contracts with other businesses regarding commercial cannabis activity. f. Permits, licenses, and other local authorizations to conduct the commercial cannabis activity. g. Security records. h. Proof of building ownership or landlord letter acknowledging business type. i. Proof of insurance. 3. Operational Standards for Commercial Cannabis Business Activities a. The location, interior and exterior, shall be monitored at all times by web -based closed circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the location. The recordings shall be maintained unaltered in a secure location for a period of not less than ninety (90) days. The police department may request the recordings in connection with an investigation. b. All controlled access areas, security rooms and all points of ingresslegress to limited access areas and all point of sale (POS) areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet. c. The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the police department or their designee on request. Ordinance No. NS -XXX Page 13 of 28 75E-2-47 d. The applicant shall conduct and pay for any required CEQA reviews and analyses, and pay for all costs, including those of the City, associated with project review under CEQA. e. Commercial cannabis businesses shall create and maintain an active account within the State's track and trace system prior to commencing any commercial cannabis activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available. f. No physical modification of the licensed premises is allowed without written prior permission by the City of Santa Ana and payment of any additional fees required by the City. g. Commercial cannabis business activities shall provide adequate off-street parking and comply with the City of Santa Ana Municipal Code parking requirements in order to service customers without causing negative impact. h. The commercial cannabis business shall provide adequate disabled access parking per the requirements in the California Building Code. i. The commercial cannabis business shall minimize nuisances such as trash, litter, and graffiti. j. Any and all signage, packaging, and facilities shall not be 'attractive', as it is defined by the State, to minors. k. Commercial cannabis business facilities shall be required to provide an air treatment system that ensures off-site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the facility if the use occupies only a portion of a building. I. A permitted commercial cannabis business entity shall have 180 days after permit issuance by the City of Santa Ana to begin initial operations, unless otherwise approved by the Director of Planning and or designee. A permitted commercial cannabis business entity that ceases to operate for more than 180 calendar days shall be deemed "abandoned" and the permit shall be forfeited. A business may temporarily suspend operations for a period of time as may be reasonably required to affect upgrades, modifications, repairs, or other property issue mitigations as approved by the Director of Planning or designee. Ordinance No. NS -XXX Page 14 of 28 75E-2-48 m. The commercial cannabis business shall comply with all State regulations regarding: L Testing, labeling and storage of all cannabis products. ii. Use of appropriate weighing devices. iii. Electrical and plumbing regulations subject to periodic and unannounced inspections to ensure compliance. iv. State deadlines for applying for a State license and receiving a State license within six (6) months after the date the State begins issuing licenses. This may be waived if the State has longer delays in issuing licenses of the type the commercial cannabis business seeks. n. The commercial cannabis business shall meet all State and local regulations for the disposal of all cannabis materials and materials used in conjunction with processing, distributing and cultivating of cannabis. o. The commercial cannabis business shall conform to all State and local regulations regarding water usage. No liquids of any kind shall be discharged into a public or private sewage or drainage system, watercourse, body of water or into the ground, except in compliance with applicable regulations of the California Regional Water Quality Control Board (California Administrative Code, Title 23, Chapter 3). p. The, commercial cannabis business shall maintain a comprehensive general liability combined single occurrence insurance policy issued by an "A" rated insurance carrier in an amount no less than Two Million Dollars, with primary coverage, naming the City of Santa Ana as additional insured. q. No free samples of any cannabis or cannabis product may be distributed at any time. r. All agents, private security officers or other persons acting for or employed by a commercial cannabis business shall display a laminated identification badge at least 2" X 2" in size, issued by the business. The badge, at a minimum, shall include the business's "doing business as" name and license number, the employees first and last name, and a color photo of the employee that shows the full front of the employee's face. s. All private security officers acting for or employed by a commercial cannabis business shall be licensed by the State and issued a business license from the City of Santa Ana. t. The commercial cannabis business shall have a centrally -monitored fire and burglar alarm system which shall include all perimeter entry points and perimeter windows and the building or . portion of the building where the commercial Ordinance No. NS -XXX Page 15 of 28 75E-2-49 cannabis business is located shall contain a fire -proof safe or fire proof filing cabinet and include a safety and security plan. u. The commercial cannabis business shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors and responds to the alarm system. The alarm company shall obtain a City of Santa Ana business license. v. The commercial cannabis business shall provide the name and phone number of an on-site staff person to the police department and the Code Enforcement Division of the Planning and Building Agency for notification if there are operational problems with the establishment. w. The commercial cannabis business must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining their regulatory safety permit. x. Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance. y. For any commercial cannabis business with two (2) or more employees, the business owner shall attest that he/she has entered into a labor peace agreement and provide a copy of the agreement to the City. z. Each commercial cannabis business owner, operator(s) and employee(s) shall complete a criminal background check and wear a visible photo ID at all times during working hours. Owners, operators, employees, managers or volunteers may not have been convicted of, or pled guilty/no-contest to a felony or misdemeanor drug charge within the past four (4) years; nor shall they be a person required to register as a controlled substance offender pursuant to Health & Safety Code section 11590. 4. Additional Operational Standards for Adult -use Retail Business a. At all times the adult -use retail business is open, it shall provide at least one private security guard who is licensed, possesses a valid Department of Consumer Affairs "security guard card", and has a valid business license from the City of Santa Ana. b. The private security guard and adult -use retail business personnel shall monitor the site and the immediate vicinity of the site to ensure that patrons immediately leave the site and do not consume cannabis in the vicinity of the retail business or on the property or in the parking lot. Ordinance No. NS -XXX Page 16 of 28 75E-2-50 c. Exterior signage shall comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. Interior signage or advertising may not be visible from the exterior. Retail businesses must comply with the advertising and marketing provisions of Business and Professions Code §§ 26150-26155. d. There shall be no on-site sales of alcohol or tobacco products, (excluding rolling papers and lighters) and no on-site consumption of food, alcohol or tobacco by patrons. e. Hours of operation shall be limited to: 7 a.m. to 11 p.m. daily. No licensed retail business shall be open to the public between the hours of 11:01 p.m. and 6:59 a.m. of any day. f. An adult -use retail business shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: L Secondary sale, barter or distribution of adult -use cannabis is a crime and can lead to arrest. ii. That loitering on and around the retail site is prohibited by California Penal Code § 647(e) and that patrons must immediately leave the site and not consume cannabis in the vicinity of the retail site or on the property or in the parking lot. iii. A warning that patrons may be subject to prosecution under federal cannabis laws. iv. That the use of cannabis may impair a person's ability to drive a motor vehicle or operate machinery. g. No one under the age of 21 shall be allowed to enter an Adult -use facility unless the licensed adult -use facility holds a medicinal use cannabis retail license issued by the State and the licensed premises for the adult -use cannabis license and medicinal cannabis license are .the same in accordance with Business and Professions Code section 26140. h. If food is distributed, the retail business shall comply with all relevant State laws, County and City ordinances pertaining to the preparation, distribution and sale of food. L All retail businesses shall establish and implement a program to incentivize the recycling of used containers. j. Retail businesses shall also record on the video surveillance system point-of-sale areas and areas where cannabis goods are displayed for sale. Ordinance No. NS -XXX Page 17 of 28 75E-2-51 k. Adequate signage shall clearly state who has inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location. I. Shipments of cannabis goods may only be accepted during regular business hours. m. Inventory shall be secured using a lockable storage system during non -business hours. n. No cannabis product shall be visible form the exterior of the business. o. All required labelling shall be maintained on all product, as required by State law, at all times. p. Educational tours of adult -use retail cannabis businesses shall be allowed. 5. Additional Operational Standards for Commercial Cannabis Delivery Services a. Commercial cannabis deliveries may be made only from a commercial cannabis retail business permitted by the City in compliance with this article, and in compliance with all State regulations. b. All employees who deliver cannabis shall have valid identification and a copy of the commercial cannabis retail business' Regulatory Safety Permit and State license at all times while making deliveries. c. All commercial cannabis delivery businesses shall maintain proof of vehicle insurance for any and all vehicles being used to transport cannabis goods as required by State law. d. Deliveries may only take place during normal business hours of the commercial cannabis retail business. e. During delivery, the delivery employee shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers. The delivery request documentation shall comply with State law. f. A licensed delivery employee shall not leave the State of California while possessing cannabis products. g. A commercial cannabis retail business shall maintain a list of all deliveries, including the address delivered to, the amount and type of product delivered, and any other information required by the State. Ordinance No. NS -XXX Page 18 of 28 75E-2-52 h. A manifest with all information required in this section shall accompany any delivery person at all times during the delivery process and delivery hours. I. Any delivery method shall be made in compliance with State law, as amended, including use of a vehicle that has a dedicated GPS device for identifying the location of the vehicle (cell phones and tablets are not sufficient). j. Each delivery request shall have a receipt prepared by the retail business with the following information: I. Name and address of the retail business ii. The name of the employee who delivered the order iii. The date and time the delivery request was made iv. The complete delivery addresses v. A detailed description of the cannabis goods requested for delivery including the weight or volume, or any accurate measure of the amount of cannabis goods requested. vi. The total amount paid for the delivery including any fees or taxes. k. At the time of the delivery, the date and time delivery was made, and the signature of the person who received the delivery. I. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement with the exception of a maximum four -inch by four -inch decal. m. Inspections by an authorized City of Santa Ana representative may be conducted anytime during regular business hours. 6. Additional Operational Standards for Manufacturing Cannabis Businesses a. Commercial cannabis manufacturing facilities are prohibited from using volatile solvents in the manufacturing process as defined in the California Health and Safety Code 11362.3(d) and as further defined in the California Health and Safety Code 11362.775(b)(1)(A) and as amended from time to time, unless a conditional use permit (CUP) for volatile solvents is applied for and granted pursuant to Chapter 41 of the Santa Ana Municipal Code. b. A licensed commercial cannabis non-volatile manufacturing facility may conduct all activities permitted by the State. This includes but is not limited to, non-volatile extractions, repackaging and relabeling, infusions and extractions. c. Any manufacturing activity that will be conducted by the commercial .cannabis business shall be included on the application. No additional manufacturing activity can be conducted without applying for and receiving written permission from the City of Santa Ana for that additional activity. Ordinance No. NS -XXX Page 19 of 28 75E-2-53 d. At all times, the commercial cannabis manufacturing facility will be compliant with all State regulations for cannabis manufacturing including Health and Safety Code 11362.775, as amended from time to time. Signage shall be posted regarding chemicals being used at the manufacturing facility. e. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. f. Cannabis manufacturing facilities shall not contain an exhibition or product sales area or allow for retail distribution of products at that location. g. Educational tours of cannabis manufacturing businesses shall be allowed. 7. Additional Operational Standards for Indoor Cannabis Cultivation Businesses a. From a public right-of-way, there shall be no exterior evidence of cannabis cultivation. b. The Building Official may require additional specific standards to meet the California Building Code and Fire Code, including but not limited to installation of fire suppression sprinklers. c. Compliance with Section 13149 of Water Code as enforced by the State Water Resources Control Board. d. Educational tours of indoor cannabis cultivation businesses shall be allowed. 8. Additional Operational Standards for Cannabis Testing Laboratory Businesses a. A licensed cannabis testing facility business, its owners and employees may not hold an interest in any other cannabis business except another testing business. b. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. G. Educational tours of cannabis testing laboratory businesses shall be allowed. 9. Additional Operational Standards for Cannabis Distribution Businesses a. Inspections by an authorized City of Santa Ana representative may be conducted anytime during the business's regular business hours. Ordinance No. NS -XXX Page 20 of 28 75E-2-54 b. A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor's premises. c. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from the storage areas. d. Educational tours of cannabis distribution businesses shall be allowed. Section 40-8. Commercial Cannabis Selection Process 1. Commercial Cannabis — Registration Application and Regulatory Safety Permit Required The Commercial Cannabis Regulatory Safety Permit ('RSP") selection process will be conducted in two phases, Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application). Registration Applications will be reviewed by the Director of Planning and Building or designees(s) for completeness and compliance, and if eligible, will be placed on the 'Regulatory Safety Permit (`RSP") Eligibility List' and entered into the Phase 2 Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has established a merit based point system to objectively award permits as described in the Regulatory Safety Permit Application. 2. Phase 1 — Registration Application a. Following the adoption of this article, the Director of Planning and Building shall prepare commercial cannabis business registration application forms and a related administrative policy. Each commercial cannabis business interested in operating pursuant to this article may submit an application together with a non- refundable processing fee in an amount established by the City Council. b. The Registration Application period shall be thirty (30) calendar days from the date the applications are released. Following the application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 1. Each application that is complete and iri compliance with the application requirements in Phase 1 shall be placed on the 'RSP Eligibility List' and shall be notified in writing whether they are a 'RSP Eligible Applicant' or not. Each applicant on the RSP Eligibility List may then choose to file an application for a RSP in Phase 2. c. The requirements for Phase 1 include but are not limited to: Ordinance No. NS -XXX Page 21 of 28 75E-2-55 i. All application documents required in the City's Phase 1 Registration Application package. H. Application was submitted during the application period. iii. Application forms are filled out completely. iv. Business Owner(s)/Applicant(s) referenced on the application provides a Live Scan that was conducted within 14 days prior to submitting the application. V. Phase 1 application fee is paid. vi. A signed statement that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this article including, but not limited to, any and all sensitive use separation criteria required by this article. d. The Director of Planning and Building or designee(s) shall determine whether each application demonstrates compliance with the minimum requirements (above) and be placed on the RSP Eligibility List and entered into the Phase 2 application and review process. e. The Director of Planning and Building or designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified in writing of the deficiencies. The applicant shall be given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period is applicable. 3. Phase 2 - Regulatory Safety Permit Application a. Each applicant identified on the RSP Eligibility List may choose to complete and file a RSP application to the Director of Planning and Building. The application shall be filed together with a nonrefundable fee as established by resolution of the City Council, to defray the cost of investigation required by this article. b. The RSP application period shall be open for thirty (30) calendar days and may run concurrently with the Phase 1 review period. Following the RSP application period, the Director of Planning and Building or designee(s) shall stop accepting applications and review all applications received in Phase 2. c. The Director of Planning and Building or designee(s) will review all application documents required in the City's Phase 2 application package plus the additional requirements in subsection (d) below. The Director of Planning and Building or designee(s) will use a merit based point system to review and rank each of Ordinance No. NS -XXX Page 22 of 28 75E-2-56 applications from the most to the least points and objectively award the top applicants a RSP. A complete description of the merit based point system and all merit based point considerations shall be included with the application forms. d. Phase 2 requirements include but are not limited to: i. All application documents required in the City's Phase 2 RSP application package. ii. Phase 2 application fee is paid and a comprehensive owner background check is completed. iii. The Building Official or designee has inspected all structures in which the use is located to determine that all applicable standards and requirements are met. If a building permit is required for site improvements, Permit issuance will be deferred until a certificate of occupancy or other building permit approval is issued. Additionally, the Building Official has determined that there are no notices of nuisance or other code compliance issues recorded or on the property. iv. The Planning Manager or designee has issued a Zoning Clearance documenting compliance with the following: 1. The use is permitted; 2. All land use permits, if any, have been approved and all conditions of approval have been met or are in good standing; 3. No zoning violations exist on the property; and e. The Director of Planning and Building or designee(s) shall review each application upon submission and ensure that the application is complete. Incomplete applications will be promptly rejected and the applicant shall be notified that business day of the deficiencies. The applicant shall be given an opportunity to cure any incomplete or deficient application prior to the conclusion of the application processing term, if such time period is applicable. 4. Regulatory Safety Permit Annual Renewal a. Applications for the renewal of a permit shall be filed with the Director of Planning and Building or designee(s) at least sixty (60) calendar days before the expiration of the current permit. Temporary permits will not be issued. Any permittee allowing their permit to lapse or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees and be subject to all aspects of the selection process. b. Any person desiring to obtain a renewal of their respective permit shall file a written application under penalty of perjury on the required form with the Director Ordinance No. NS -XXX Page 23 of 28 75E-2-57 of Planning and Building or designee(s) who will conduct a review. The application shall be accompanied by a nonrefundable filing fee established by the City Council to defray the cost of the review required by this article. An applicant shall be required to update the information contained in their original permit application and provide any new and/or additional information as may be reasonably required by the Director of Planning and Building or designee(s) in order to determine whether said permit should be renewed. 5. Appeal of Denial of Regulatory Safety Permit I Denial of RSP Renewal The City Manager or designee(s) will review all Regulatory Safety Permit applications and renewal requests, along with all other relevant information, and determine if a RSP should be granted and/or renewed. If the City Manager determines that the permit shall not be granted and/or renewed, the reasons for denial shall be provided in writing to the applicant. No such denial shall become effective until the applicant for the regulatory safety permit and/or renewal has been notified in writing by certified mail of the right to appeal the denial decision pursuant to the provisions of Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon decision of the City Council. Otherwise, the denial shall become effective after the timely appeal period has passed. The matter may be subject to judicial review under the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6. Section 40-9. Audits. Annual audits. No later than June 3011, of every year, each licensed commercial cannabis business shall file with the City an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the Executive Director of Finance and Management Services, or designee(s). Section 40-10. Inspection and enforcement responsibilities. The Code Enforcement Division of the Planning and Building Agency may enter and inspect the location of any commercial cannabis business between the hours of 7: 00 a.m. and 11:00 p.m., or at any reasonable time, to ensure compliance with this article. In addition, a designated unit within the police department may enter and inspect the location of any commercial cannabis business and the recordings and records maintained as required by this article, except that the inspection and copying of private medical records shall be made available to the police department only pursuant to a properly executed search warrant, subpoena, or court order. It is unlawful for any owner, responsible person, landlord, lessee, member including but not limited to a member engaged in the management), or any other person having any responsibility over the operation of the commercial cannabis business to refuse to allow, impede, obstruct or interfere with an inspection, review or copying of records and closed- circuit monitoring authorized and required under this article, including but not limited to, the concealment, destruction, and falsification of any recordings, records, or monitoring. Ordinance No. NS -XXX Page 24 of 28 75E-2-58 Section 40-11. Violation and enforcement. 1. Violation/enforcement. Each and every violation of this article shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this Code. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, revocation of the commercial cannabis business registration, revocation of the certificate of occupancy for the location, disgorgement and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity. The City may also pursue any and all remedies and actions available and applicable under local and State laws for any violations committed by the commercial cannabis business and persons related or associated with the business. 2. Suspension or revocation. When an authorized City of Santa Ana representative finds that any person holding a regulatory safety permit under the provisions of Chapter 40 has violated the provisions of this chapter or is found guilty of conduct which would form the basis of denial of the regulatory safety permit as set forth in Article XIII of Chapter 18, s/he may revoke or suspend the permit. No such revocation shall become effective until the regulatory safety permit holder has been notified in writing by certified mail of the right to appeal the revocation decision pursuant to the provisions or Chapter 3 of this Code. If a timely appeal is filed, the revocation shall be effective only upon decision of the City Council. Otherwise, the revocation shall become effective after the timely appeal period has passed. Section 40-12. Transfer of Ownership. 1. Upon the transfer of any interest in a commercial cannabis business, the regulatory safety permit shall be null and void. Any person, firm or entity desiring to own operate the commercial cannabis business shall make a new application. Prior to or concurrent with the submission of said application the transferee shall obtain all required business licenses, post all required security deposits, acquire all necessary, certificates, permits or other licenses allowing the doing of any act which the person paying or holding the same would not otherwise be entitled to do; and any permit, license, variance or other instrument of approval or evidence that any conditions exist as required by any other section of this Code or by any statute or code provisions of the state must first be obtained or complied with before the doing of any act or thing for which it is required. A fee as established by resolution of the City Council shall be payable for each such application involving transfer of any interest in an existing commercial cannabis business. The provisions of this section shall apply to any person, firm, or entity applying for a regulatory safety permit for premises previously used as such establishment. Ordinance No. NS -XXX Page 25 of 28 75E-2-59 2. Any such transfer of any interest in an existing commercial cannabis business or any application for an extension or expansion of the building or other place of business of the commercial cannabis business shall require inspection and compliance with section 40-10 of this article. 3. The owner or operator of a commercial cannabis business shall be responsible for notifying the City of any intention to rename, change management, or convey the business to another person/entity. Notification to the City must be made a minimum of sixty (60) days prior to such transfer. Section 40-13. Limitations on the City's Liability To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any Regulatory Safety Permits pursuant to this article or the operation of any commercial cannabis business approved pursuant to this chapter. As a condition of approval of a Regulatory Safety Permit as provided in this chapter, the applicant or its legal representative shall: 1. Execute an agreement indemnifying the City from any claims, damages, injuries or liabilities of any kind associated with the registration or operation of the commercial cannabis facility or the prosecution of the applicant or business or its members for violation of federal or State laws; 2. Maintain insurance in the amounts and types that are acceptable to the City Attorney or designee; 3. Name the City as an additionally insured on all City required insurance policies; 4. Agree to defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a Regulatory Safety Permit; and 5. Agree to indemnify and reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to this ordinance and/or the City's approval of a Regulatory Safety Permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. Section 40-14. Fees and Taxes All commercial cannabis businesses shall pay applicable fees and taxes, which shall include one or more of the following: Ordinance No. NS -XXX Page 26 of 28 75E-2-60 1. Application Fees. The business owner shall submit a non-refundable fee to cover the cost of processing an application for the commercial cannabis business. These fees may be divided into two fees according to Registration Application (Phase 1) and RSP Application (Phase 2). 2. Regulatory Safety Permit Renewal Fees. The business owner shall submit a non- refundable fee to cover the cost of processing an application renewal annually. 3. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all business taxes required by the Santa Ana Municipal Code. 4. In -Lieu Agreement Fees 5. Additional cannabis -specific gross receipts, excise, cultivation or any other tax approved by the voters of the City of Santa Ana. 6. All required taxes including sales and use taxes, business, payroll etc. 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 day of 2017. APPROVED AS TO FORM Sonia R. Carvalho, City Attorney Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75E-2-61 Ordinance No. NS -XXX Page 27 of 28 AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT:Councilmembers: 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 --to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75E-2-62 Ordinance No. NS -XXX Page 28 of 28 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVE AN IN -LIEU FEE AGREEMENT TEMPLATE AND MERIT -BASED CRITERIA DRAFT FOR COMMERCIAL CANNABIS BUSINESSES PURSUANT TO CHAPTER 40 OF THE SANTA ANA MUNICIPAL CODE — CITY OF SANTA ANA, APPLICANT {STRATEGIC PLAN NOS. 3, 2, 3, 5} '41A MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: U»:iNkyl q ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve the in -lieu fee agreement template and authorize the City Manager and Clerk of the Council to execute agreements with qualified businesses. 2. Approve the merit -based criteria required for all new commercial cannabis businesses pursuant to Chapter 40. BACKGROUND To comply with the Adult Use of Marijuana Act (AUMA)/Proposition 64, on October 17, 2017, the City Council approved the first reading of the new commercial cannabis ordinance that expands commercial cannabis business activities in the city's industrial areasmit Pursuant to the ordinance's requirements contained in Chapter 40, all applications for new commercial cannabis businesses will be evaluated using a merit -based criteria system through which permits will be awarded to the applications scoring the highest points. The selected applicants must then enter into an in -lieu fee agreement with the City to remit a percentage of gross receipts or a minimum fee based on each facility's square footage. The in -lieu fee agreement (Exhibit 1) for commercial cannabis businesses is intended to collect fees for commercial cannabis businesses and for the purposes of providing a fee for mitigation options used by the City to compensate for impacts to City services and Santa Ana residents and/or businesses. Each commercial cannabis business is required.to enter into an agreement for each type of business activity, including adult -use retail, as well as any form of warehousing/distribution, manufacturing, cultivation, or product testing. As a component of the in - lieu fee agreement, each business owner is required to agree to take reasonable steps to hire 75E-3-1 Approve an In -Lieu Fee Agreement template and Merit Criteria draft for Commercial Cannabis November 7, 2017 Page 2 local, qualified Santa Ana residents and to use reasonable efforts to retain the services of qualified, local contractors and suppliers located in Santa Ana. Utilizing in -lieu fee agreements with commercial cannabis businesses is anticipated to result in an increase in General Fund revenue. Estimates currently range from $9.1 million to $20.25 million per fiscal year. The merit -based criteria will be used to evaluate applications for commercial cannabis businesses. Each criteria is designed to promote sustainable community -benefiting practices, including: community safety, youth, education, and recreation; economic development; and community health, livability, engagement, and sustainability. Criteria will also address medical marijuana collectives/cooperatives currently operating in Santa Ana, as well as those on the "selected" or wait lists (Exhibit 2). As such, staff recommends approval of the in -lieu fee agreement and merit -based criteria. The City has identified a preliminary implementation timeline in order to comply with the AUMA and process applications in a timely manner. The timeline is outlined below: • December 2017: Finalize applications and procedures • January 2018: Open registration application period for 30 days and review applications for completeness and eligibility • February: Open Regulatory Safety Permit (RSP) application period for 30 days • March: Review RSP applications and determine eligibility • April: Score RSP applications using merit -based criteria and award permits. City Manager's Office to execute in -lieu fee agreements STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), and Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP Acting Executive Director Planning & Building Agency AP: rb S:IRFCA111-07-17-171PBA In Lieu Fee and Merit Catena RFCA Exhibits: 1. In -lieu fee agreement template 2. Merit -based criteria 75E-3-2 IN -LIEU FEE AGREEMENT FOR COMMERCIAL CANNABIS BUSINESSES This In -Lieu Fee Agreement ("Agreement") is dated 201_ between the City of Santa Ana, a charter city and municipal corporation ("City') and , a ("(Dwner'), collectively referred to as "the Parties'. This Agreement shall become effective on the date that Owner is issued a Regulatory Safety Permit ("RSP") for the operation of a commercial cannabis business by the City. Public Benefit A. Intent. The purpose of this In -Lieu Fee Agreement is to collect fees from commercial cannabis businesses and to provide a fee for mitigation options to be used by the City to compensate for impacts to City services, residents, and/or businesses as set forth in Santa Ana Municipal Code section 40-2(22): The Parties agree that this Agreement confers substantial private benefits on Owner which should be balanced by commensurate public benefits. As part of the commercial cannabis RSP process, Owner agrees to enter into this Agreement. Owner acknowledges that City and Owner have had extensive negotiations and proceedings prior to entering into this Agreement. Owner has elected to execute this Agreement as it provides Owner with important economic benefits. Accordingly, the Parties intend to provide consideration to the public to balance the private benefits conferred on Owner by providing mitigation measures to the public and to pay for City services as a result of the fees collected. B. Local Hiring. Owner agrees to use its reasonable efforts to hire qualified City residents living in Santa Ana to work at its commercial cannabis business(es). Owner shall also use reasonable efforts to retain the services of qualified contractors and suppliers who are located in the City or who employ a significant number of City of Santa Ana residents. Owner shall make a good faith effort to advertise on various social media sites, at local job fairs, and through public agencies and organizations. C. Community Benefit Plan. Owner agrees to submit a Community Benefit Plan ("Plan") to the City to be attached and incorporated into this Agreement as Exhibit A. Said Plan will detail Owner's experience working with community-based groups such as school districts, college districts, city or county agencies, non-profit organizations, artist or downtown groups. Said Plan must also outline commitments by the cannabis business owner to engage his or her staff in community service events or programs in the City of Santa Ana. Owner shall adequately document that it has met the Plan's obligations and commitments as a condition of renewal/extension of this Agreement upon expiration of the initial term. 2. In -Lieu Fee Rates for Commercial Cannabis Businesses. For each separate branch establishment or separate property location of the commercial cannabis business, In -Lieu fees shall be paid monthly to the City based on each state cannabis license type authorized and permitted as follows: A. Every non -medicinal retail cannabis business as the terms are defined in Chapter 40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent Exhibit ( 75E-3-3 (8%) of the gross receipts generated or otherwise received. The monthly In -Lieu fee shall not be less than Twenty-five Dollars ($25.00) per square foot of the non -medicinal cannabis retail business prorated monthly at the rate of one -twelfth for each month or fraction of a month. B. Every commercial indoor cannabis cultivation business as the terms are defined in Chapter 40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent (8%) of the gross receipts generated or otherwise received. The monthly In -Lieu fee shall not be less than Ten Dollars ($10.00) per square foot of the commercial cannabis cultivation business prorated monthly at the rate of one -twelfth for each month or fraction of a month. C. Every commercial cannabis manufacturing business as the terms are defined in Chapter 40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent (8%) of the gross receipts generated or otherwise received. The monthly In -Lieu fee shall not be less than Ten Dollars ($10.00) per square foot of the commercial cannabis manufacturing business prorated monthly at the rate of one -twelfth for each month or fraction of a month. D. Every commercial cannabis distribution business as the terms are defined in Chapter 40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent (8%) of the gross receipts generated or otherwise received. The monthly In -Lieu fee shall not be less than Four Dollars ($4.00) per square foot of the commercial cannabis distribution business prorated monthly at the rate of one -twelfth for each month or fraction of a month. E. Every commercial cannabis testing laboratory as the terms are defined in Chapter 40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent (8%). of the gross receipts generated or otherwise received. The monthly In -Lieu fee shall not be less than Two Dollars ($2.00) per square foot of the commercial cannabis testing laboratory prorated monthly at the rate of one -twelfth for each month or fraction of a month. F. The square footage referenced in Section 2(A) -(E) of this Agreement is based on the gross square footage, at the rates specified above in subsections (A) -(E), for all improvements owned, rented, leased or otherwise occupied, controlled, or used by the commercial cannabis business at the permitted establishment or property location. Square footage shall be calculated as follows: Gross Square footage of every level of cannabis activity (including vertical and horizontal areas where cannabis or any of its derivatives may be cultivated, grown, harvested, packaged, processed or stored) as identified on the Building Plan set submitted to and approved by the City. 3. In -Lieu Fees Not a Pass -Through Fee: Gross Receipts Defined. A. Commercial cannabis businesses shall not pass the In -Lieu fee or any portion thereof through to the commercial cannabis customer or other commercial 2 75E-3-4 cannabis business in any fashion except as part of the basic product sales price or service price. B. For the purposes of this Agreement, "gross receipts" shall mean any and all of the following: • Transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for commercial cannabis, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount of cash or in-kind contributions, including all operating costs related to the growth, cultivation, manufacture, distribution, testing, or provision of commercial cannabis or any transaction related thereto. • Anything else of value obtained by a cannabis business • The total amount of the sale price of all sales • The total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, merchandise, for which a charge is, made or credit allowed, including all refunds, cash credits and properties of any amount or nature, • Any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any .other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included. • The amount of any federal, manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge. C. "Gross receipts" shall not include the following: • The amount of any federal tax imposed on or with respect to retail sales whether or not the amount of such tax is stated as a separate charge. • The amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge. "Gross receipts" shall not include the amount of any California state excise tax or state cultivation tax regardless of whether or not the amount of such excise tax or cultivation tax is stated to customers as a separate charge, or any California state, city or city and county sales or use tax required by 3 75E-3-5 9 law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale. D. "Gross receipts" shall be calculated without any deduction on account of any of the following: • The cost of tangible property sold or bartered; • The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; or • The cost of transportation of the commercial cannabis, or other property or product. Remittance and Reporting. A. Payment. Beginning as set forth below and monthly thereafter, each commercial cannabis business is required to pay to the City the applicable In -Lieu fee set forth in Sections 2 and 3 of this Agreement. In addition the commercial cannabis business owner shall report to the City any gross receipts received during the preceding monthly reporting period and shall remit to the City on or before the last day of the month following the fees due and owing during said period as applicable. For purposes of this section, month shall mean calendar month, and any fraction of a month shall be deemed to be a whole month and In -Lieu fees shall begin to accrue on the date that a person or entity first receives a Commercial Cannabis Regulatory Safety Permit. When the last day of the month falls on a City Holiday or City Hall Closure Date then the reporting/remittance date shall fall on the next City business day following. When reporting/remitting is made by mail then the postmark date shall serve as proof of timely reporting/remittance. More than one location. The payment of the In -Lieu fee is required monthly for each separate branch location or separate property location of the commercial cannabis business and for each state cannabis license type approved by the state and permitted by the City. C. Records Inspection. Owner acknowledges and agrees that the City is empowered to examine Owner's books and records, including tax returns, to ascertain the amount of the fee due and owing. The City or its authorized agents have the power and authority to examine such books and records at any reasonable time, including but not limited to, during normal business hours. If the City wishes to inspect the areas of the commercial cannabis business where cannabis is being cultivated, City must provide Owner with written notice, with such notice being provided in a reasonable time, requesting entry into the cultivation and curing areas. City agrees that all of its employees or agents that enter the cultivation and curing areas shall follow all of the policies and guidelines imposed on Owner's employees, including without limitation, rd 75E-3-6 the wearing of any clothing or equipment to insure that no pests or impurities shall enter the cultivation and curing areas. 5. Past due date — Penalty; interest. Any individual or entity who fails to pay the In -Lieu fees required by this Agreement when due shall be subject to past due penalties and late interest as set forth herein. For failure to fully pay any monthly fees when due the following past due penalty fees shall be added: A. Ten percent (10%) of the unpaid balance of said fees on the past due date thereof, B. Fifteen percent (15%) of the unpaid balance of said fees on the first day of the second month after the due date thereof; C. Twenty-five percent (25%) of the unpaid balance of said fees on the first day of the third month after the due date thereof; and D. Fifty percent (50%) of the unpaid balance of said fees on the first day of the fourth month after the due date thereof. The City is not required to send a past due or other notice or bill to any person subject to the provisions of this Agreement and failure to send such notice or bill shall not affect the validity of any fee or late penalty due under the provisions of this Agreement. Owner shall be considered past due if fees are not paid within thirty (30) days of the date they are due. Interest of one percent (1 %) per month will be imposed on all past due amounts. 6. Term. This Agreement shall start on the date indicated above and shall terminate on December 31, 2020 regardless of starting date unless terminated earlier in accordance with Section 13 of this Agreement. The Agreement will have one (1) two-year year extension period until December 31, 2022 exercisable by a writing executed by the City Manager and City Attorney's Office with the approval of Owner. 7. Administration — Rules regulations and guidelines: interpretation/clarification. In order to aid in the City's collection of fees due pursuant to this Agreement and to ensure that all commercial cannabis business fees are consistent to the best of the City's ability, the Executive Director of the Finance Department, with the concurrence of the City Attorney, may promulgate rules, regulations, and guidelines, to implement and administer this Agreement including, but not limited to rules, regulations, and guidelines harmonizing this Agreement with the provisions of the Santa Ana Municipal Code, Charter, and state law in any manner not inconsistent with the intent of this Agreement and which does not result in an increase in the fees imposed herein. The Executive Director of the Finance Department may also, with the concurrence of the City Attorney, interpret or clarify the methodology of the fees, or any definition applicable to the fee, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Agreement. 75E-3-7 8. Payment of In -Lieu fee does not authorize unlawful business. A. The payment of the In -Lieu fee required by this Agreement, and its acceptance by the City, shall not entitle any person to carry on any commercial cannabis business unless the person has complied with all of the requirements of the Santa Ana Municipal Code and all other applicable laws, nor to carry on any commercial cannabis business in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such commercial cannabis business is in violation of any law. No fee paid under the provisions of this Agreement shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any legal business in an illegal manner, or any business in violation of any ordinance of the City. Nothing in this Agreement implies or authorizes that any activity connected with the distribution or possession of cannabis is legal unless otherwise authorized and allowed by Califomia and federal law. Nothing in this section shall be applied or construed as authorizing the sale of cannabis. 9. Business License Required. A business license is required for all persons engaged in transacting and carrying on any commercial cannabis business activity in the City. It is unlawful for any person or legal entity to commence, transact or carry on business in the City without first having procured a business license from the City. 10. Operatinq Commercial Cannabis Business. Owner shall not operate a commercial cannabis business authorized under the Santa Ana Municipal Code unless: A. It is the holder of a valid Regulatory Safety Permit issued by the City in accordance with the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana Municipal Code; and B. At such time as the State of California requires commercial cannabis facilities and businesses to hold a valid license or permit issued by the State of California, it also holds such license or permit, unless, however, such permit or license is not required by the State of California for the type of commercial cannabis facility or business operation that is the subject of this Agreement. C. Owner remains in compliance with any and all other laws and regulations pertaining to commercial cannabis businesses. 11. Owner Indemnification of City. A. Owner will indemnify City from any claims, damages, injuries, or liabilities of any kind whatsoever sustained or incurred by City resulting from entering into this Agreement, and Owner's performance and/or breach of this Agreement. 75E-3-8 Owner agrees to defend, at its sole expense, any action against City, its agents, officers, and employees related to this Agreement. Owner agrees to indemnify and reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to this Agreement and/or the City's approval of a Regulatory Safety Permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the Owner of its obligation hereunder. 12. Compliance with Laws. Owner agrees to comply with the City of Santa Ana Charter and Municipal Code, including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the State of California. 13. Default and Termination for Cause. A. This Agreement may be terminated by the City for cause with thirty (30) days' written notice to Owner. Cause as used in this section, is defined as: 1) Failure to pay In -Lieu fees within 30 days of the date those fees are due; 2) Failure to comply with the terms of the Cannabis Regulatory Safety Permit issued by the City of Santa Ana; 3) Unauthorized transfer of the Cannabis Regulatory Safety Permit issued by the City of Santa Ana; or 4) Failure to accurately report data necessary to calculate in -lieu fees B. Owner may cure the default resulting from thecause for termination within 30 days of the date of the notice of termination for cause. if Owner fails to cure the default within thirty (30) days of the date of the notice of termination for cause, this Agreement will be terminated. C. This Agreement will be terminated by the City in the event that the City's electorate pass a commercial cannabis tax applicable to Owner's commercial cannabis business. In the event that occurs, this Agreement shall be terminated on the date the new tax law goes into effect. D. This Agreement will automatically terminate if: 1) Owner's Regulatory Safety Permit is revoked by the City or is not renewed by the City, or 2) Owner's transfer of his or her Regulatory Safety Permit pursuant to Santa Ana Municipal Code section 40-12. 14. Remedies. A. It is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof, except as hereinafter expressly provided. 7 75E-3-9 B. Each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that City shall not be liable in monetary damages, unless expressly provided for in this Agreement, to Owner, or to any other person, and Owner covenants not to sue City for damages or claim any damages: 1) For any breach of this Agreement or for any cause of action which arises out of this Agreement; or 2) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement. 15. Attornev's Fees and Costs In any action or proceeding between City and Owner brought to interpret or enforce this Agreement, or which in any way arises out of the existence of this Agreement or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non -prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this Agreement, the prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 15 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding. 16. Notice. Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 With courtesy copies to: Executive Director— Planning and Building Agency City of Santa Ana 20 Civic Center Plaza (M-20) P.O. Box 1988 Santa Ana, California 92702 Fax 714-973-1461 75E-3-10 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Fax 714-647-6515 To Owner: A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 17. Exclusivity and Amendment. This Agreement represents the complete and exclusive statement between the City and Owner, and supersedes any and all other agreements, oral or written, between the parties. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Owner. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 18. Assignment. Owner may not assign or transfer any interest herein without the prior written consent of the City and any such assignment or transfer without the City's prior written consent shall be considered null and void. 19. Discrimination. Owner shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Owner affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local labor laws and regulations. 20. Jurisdiction -Venue. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that 75E-3-11 Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 21. Severability. If any part of this Agreement is found to conflict with applicable local or state laws or regulations, such part shall be inoperative, null and void insofar as it conflict with said laws or regulations, or may be modified or suspended as may be necessary to comply with any local or state law or regulation but the remainder of the Agreement shall continue in full force and effect. 22. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual, facsimile or electronic signature. 23. Disclaimer Despite California's commercial cannabis laws and the terms and conditions of this Agreement or any Regulatory Safety Permit issued pertaining to Owner or the property specified herein, California commercial cannabis cultivators, transporters, distributors, or possessors may still be subject to arrest by state or federal officers and prosecuted under state or federal law. The Federal Controlled Substances Act, 21 USC § 801 et. seq., prohibits the manufacture, distribution, and possession of cannabis without any exemptions for medical use. 24. Authority to Bind Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. {Signature page follows} 10 75E-3-12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: Candida Neal; Interim Executive Director Planning & Building Agency 11 CITY OF SANTA ANA RAUL GODINEZ II City Manager OWNER: NAME: 75E-3-13 75E-3-14 EXHIBIT 2 P / 5G-',/ 1297 Draft Commercial Cannabis Merit -Based Criteria and Possible Points No. Merit Criteria Points Public Safety _ Maintains a security plan on file with the City that details all security measures required on- site and that lists additional measures not required by Chapters 18 or 40 of the Santa Ana 1 Municipal Code. 1 Maintains a plan on file with the City to prevent the diversion of medicinal cannabis to 2 persons under the age of 18 or adult -use cannabis to persons under the age of 21. 1 Proposed location exceeds the 1,000 -foot buffer from sensitive land uses by 500 feet or 3 more (may not be combined with numbers 4 and 5). 1 Proposed location exceeds the 1,000 -foot buffer from sensitive land uses by 750 feet or 4 more (may not be combined with numbers 3 and 5). 2 Proposed location exceeds the 1,000 -foot buffer from sensitive land uses by 1,000 feet or 5 more (may not be combined with numbers 3 and 4). 3 Applicant or entity has no previous record of violating federal or state laws relating to 6 workplace safety, wages and compensation, discrimination, or union activity. 1 Certifies that the facility will not employ as managers, employees, or volunteers any person 7 with any drug-related felony or misdemeanor conviction. 1 Total Possible Points in Public Safety Sub -Category 7 Operations and History Demonstrates experience with operating a permitted or licensed commercial cannabis 8 business for the last two (2) years. 1 9 Owner or operator provides career development training or courses to his or her staff. 1 Proposed site is located within one quarter -mile of a public transportation stop or station 10 measured from the primary entrance to the facility. 1 Demonstrates use of green technology or energy-saving equipment, or applicant purchases 11 carbon offsets or green sources of energy. 1 Owner or operator offers its employees incentives for using alternative modes of 12 transportation for work commutes. 1 Total Possible Points in Operations and History Sub -Category 5 Community Benefits* Demonstrates involvement in the community, non-profit associations, or neighborhood 13 associations in non -cannabis related activities. 1 Demonstrates experience in working with local school districts to implement underage 14 drug use and drug abuse prevention programs. 1 Demonstrates experience in working with local school districts to implement youth 15 dropout prevention programs. 1 Demonstrates experience in providing financial or personnel support for a Santa Ana -based 16 cultural or arts program. 1 Demonstrates experience in financial or personnel support for an Orange County -based 17 homeless or affordable housing services program. 1 EXHIBIT 2 P / 5G-',/ 1297 P / �? */ I7 Draft Commercial Cannabis Merit -Based Criteria and Possible faints No. Merit Criteria Points Demonstrates experience in providing financial or personnel support for a Santa Ana -based 18 community health improvement program. 1 Owner or operator submits a program requiring employees to engage in volunteer park or 19 open space cleanup activities in Santa Ana to remove litter. 1 Total Possible Points in Community Benefits Sub -Category 7 Economic Development 20 Pays a living wage (at least 200% of the Federal Poverty Level for a family of two). 1 Provides employer -paid health insurance benefits for its employees, if not already required 21 and/or contributes to employee retirement accounts. 1 If the applicant is establishing a business in a building or tenant space that has been vacant 22 for at least three (3) years (may not be combined with number 23). 1 If the applicant is establishing a business in a building ortenant space that has been vacant 23 for at least four (4) years (may not be combined with number 22). 2 24 Commits to local hiring and local sourcing of contractors and suppliers. 1 Total Possible Points in Economic Development Sub -Category 5 Total Possible Points without Local Attributes Points 22 Local Attributes Owner or operator has at least one year of experience operating a licensed cannabis business in Santa Ana and is in good standing (may not be combined with any other "Local 25 Attributes" point). 2 Owner or operator as been on the Measure BB "selected" list for at least one (1) year (may 26 not be combined with any other "Local Attributes" point). 1 Owner or operator has been on the Measure BB waitlist for at least one (1) year (may not 27 be combined with any other "Local Attributes" point). 1 Total Possible Points in Local Attributes Sub -Category 2 Maximum Possible Points (AII Categories) 26 "A community benefits plan will be reviewed and incorporated into the required in -lieu fee agreement for any selected commercial cannabis business operating in Santa Ana. P / �? */ I7 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF FIRST POINT APARTMENTS AND RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATEGIC PLAN NO. 5, 3) CITY 64ANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of the Santa Ana Pacific Associates, L.P. (the 'Borrower"), for the benefit of First Point Apartments (the "Project') to finance the acquisition, construction, improvement and equipping of First Point Apartments, a 346 -unit multifamily rental housing project located at 2114 E. 1st Street, Santa Ana, California. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $157,500,000 for the purpose of financing the acquisition, construction, improvement and equipping of First Point Apartments, a 346 -unit multifamily rental housing project. DISCUSSION Santa Ana Pacific Associates, a California Limited Partnership or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $157,500,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 346 -unit multifamily rental housing project located at 2114 E. 1st Street, Santa Ana, California, generally known as First Point Apartments and operated by Barker Management, Inc. However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the TTEFRA Hearing") providing for the members of 75F-1 First Point Apartments — TEFRA Hearing November 7, 2017 Page 2 the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. The bonds to be issued by the Authority are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of this project. The Housing Element of the City's General Plan contains various goals and policies which are intended to provide a diversity of quality housing, affordability levels and living experiences that accommodate Santa Ana's residents to foster an inclusive community. Additionally, the General Plan encourages development of affordable rental and ownership housing for seniors, people with disabilities, families with children, and people needing emergency, transitional or supportive housing options. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The Board of Directors of the California Foundation for Stronger Communities, a California non- profit public benefit corporation (the "Foundation"), acts as the Board of Directors for the California Municipal Finance Authority (CMFA). Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Santa Ana, it is expected that 25 percent of the issuance fee will be granted by the CMFA to the general fund of the City. Such grant may be. used for any lawful purpose of the City. The CMFA does not receive issuance fees until a bond issuance closes. The fees the CMFA receives are based upon the par amount of the bonds issued. The Borrower ultimately decides when and if the bonds are actually issued and the final amount of bonds issued. The amount granted to the City is to be determined, but will not exceed $35,416 under the assumption the 75F-2 First Point Apartments — TEFRA Hearing November 7, 2017 Page 3 entire $157.5 million in bonds are issued. Upon receipt, the funds will be deposited to the Miscellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002-57010). RobertM Zur Schmiede Interim Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency Candida Neal, AICP Acting Executive Director Planning & Building Agency Exhibits: 1. Resolution 2. Narrative Description of Proposed Project 3. Notice to Applicant 75F-3 75F-4 RESOLUTION NO. 2017 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $157,500,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF FIRST POINT APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO - - — ._WHERE -Aa, -Santa Arra--Pacific- A-ssociates, -a— California-Limited—Partrrershiir(ti EF -- -__ - "Borrower") or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "Authority") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $157,500,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 346 -unit multifamily rental housing project located at 2114 E. 1st Street, Santa Ana, California, generally known as First Point Apartments (the "Project") and operated by Barker Management, Inc.; and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the City of Santa Ana (the "City") because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in Exhibit V 75F-5 which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contfibution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. This resolution shall take effect immediately upon its adoption ADOPTED this _ day of , 2017. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75F-6 Narrative Description of Proposed Project First Point Family Apartments, Santa Ana, Orange County, California Location The site for the proposed project, First Point Family Apartments, is on approximately 3.98 +/- acres of land identified as APNs 402-191-01 and 402-191-02. The site is situated south of East First Street, between Interstate 5 and the Costa Mesa Freeway (State Route 55) in the City of Santa Ana, Orange County, California. Adjacent Land Uses NORTH: Commercial / Retail SOUTH: Multi -Family Residential EAST: Rehabilitation and Care Center WEST: Commercial/Retail Housing Tvoe The proposed development will be a 346 -unit rental new construction apartment community. With a mix of 26 one -bedroom units (approximately 610 sq. ft.), 160 two-bedroom units (approximately 929 sq. ft.), 84 three-bedroom units (approximately 1,170 sq. ft.) and 76 four-bedroom units (approximately 1,243 sq. ft.), First Point Family Apartments will provide affordable housing for families earning up to 60% of the area median income (AMI) for Orange County. Construction Design & Project Description The project will consist of one, elevator serviced residential building. The proposed type of construction will be a six story, wood frame structure, designed and detailed in conformance with applicable building, life, safety and fire codes, supported by perimeter foundations with concrete slab flooring on top of the parking podium. Parking will be contained within the ground level, reinforced concrete and masonry podium structure. This type of construction will allow the building to conform to the natural terrain with only minor amounts of grading. Minimum construction standards will be adhered to in order to assure that a quality family housing development is provided. The building will have various amenities such as community gathering areas, community rooms, a playground, and community laundry facilities located on the first, third, and fifth levels. Courtyards will provide open space and opportunities for families and children to recreate and socialize. Three managers will provide assistance and management while residing in designated manager's units. Exhibit 2 First Point Family Apartments 75F-7 Narrative Description of Proposed Project The unit mix will be as follows: Number of Units Bedrooms Unit Size AMI 26 1 610 sq. ft. (approximate) 50% & 60% 159 2 929 sq. ft. (approximate) 50% & 60% 82 3 1,170 sq. ft. (approximate) 50% & 60% 76 4 1,243 sq. ft. (approximate) 50%& 60% 1(Manager's Unit) 2 929 sq. ft. (approximate) 2 (Manager's Units) 1 3 1,170 sq. ft. (approximate) Within the units, tenants will enjoy standard features such as refrigerators, exhaust fans, dishwashers, disposals, and ranges with ovens. Most units will feature a covered patio or balcony and provide secure storage. Fully accessible units will serve disabled individuals. First Point Family Apartments will be water and energy efficient, provide healthy indoor air quality and will incorporate long lasting durable materials on both the interior and exterior of the project. The design of these apartments will adhere to all necessary requirements to satisfy Section 504 as well as any additional mandates that the local jurisdiction deems appropriate. Unit Amenities All units will feature: • Refrigerators • Exhaustfans • Dishwashers • Garbage disposals • Ranges with ovens • Covered patio or balcony (most units) Project Amenities Project amenities include: • Approximately 100,000 sq. ft. of community facilities and common areas • Exercise room • Computer room • Recreation room including TV and lounge area, seating and kitchen • Community laundry rooms • Playground area for children • Elevators • Podium parking • Controlled access and security features First Point Family Apartments Narrative Description of Proposed Project 75F-8 Development Schedule The community will be developed in one phase. The anticipated construction phase will be approximately thirty [30] months. The anticipated construction start date is June 2018 with a projected completion date of December 2020. First Point Family Apartments 75F-9 Narrative Description of Proposed Project 75F-10 MAYOR Miguel A. Pulido MAYOR PRO TEM Michele Martinez COUNCILMEMBERS P. David Benavides Vicente Sarmiento Jose Solorio Sal Tinalero Juan Villegas November 2, 2017 Tony Crowder The Pacific Companies 430 E State Street, Suite 100 Eagle, ID 83616 CITY OF SANTA ANA 20 Civic Center Plaza . P.O. Box 1988 Santa Ana, California 92702 714-647-6900 vmvv.santa-ana.oro Subject: Notice to Applicant Regarding Request for TEFRA Hearing Dear Mr. Crowder, INTERIM CITY MANAGER Cynthia J. Kurtz CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar This is in response to your request for the City of Santa Ana to conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority ("Authority") on behalf of the Santa Ana Pacific Associates, L.P. The TEFRA Hearing has been placed on our City Council agenda per your request. This TEFRA Hearing is not being considered by City Council as a recommended action per our staff. Instead this item is being considered as an applicant requested action. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of your project. If you have any questions regarding this letter, I may be reached by telephone at (714) 667-2241 or by e-mail at jbrown(cilsama-ana.orQ. Sincerely, Judson Brown Housing Division Manager Exhibit 3 SANTA ANA CITY COUNCIL Miguel A %Fdo Michela MaNnm NA.M. Samuenfo Jose Solorio P. David Ben"des Juan Villages Sal Tmalero Mayor Mayor Pro Tem, Ward 2 Word Ward 34 Ward Word rrioulidonsanta-ana.Oro mlmaninesCdsanla-ana.oro vsann'ento(olsanta-anaora =nt an dbenaNdes/a�santa-ana.om 'v'lleoasna sanla-ane Ora sVnaero(oieaa1a-.ra.oro 75F-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF FIRST POINT SENIOR APARTMENTS AND RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATE�GIIC� PLAN NO. 5, 3) MANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: F-W=•T ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of the Santa Ana Pacific Associates II, L.P. (the 'Borrower"), for the benefit of First Point Senior Apartments (the `Project') to finance the acquisition, construction, improvement and equipping of First Point Senior Apartments, a 348 -unit senior multifamily rental housing project located at 2110 E. 1 st Street, Santa Ana, California. 2. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $112,500,000 for the purpose of financing the acquisition, construction, improvement and equipping of First Point Senior Apartments, a 348 -unit senior multifamily rental housing project. DISCUSSION Santa Ana Pacific Associates II, a California Limited Partnership or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $112,500,000 (the 'Bonds") for the acquisition, construction, improvement and equipping of a 348 -unit senior multifamily rental housing project located at 2110 E. 1st Street, Santa Ana, California, generally known as First Point Senior Apartments (the `Project') and operated by Barker Management, Inc. 75G-1 First Point Senior Apartments — TEFRA Hearing November 7, 2017 Page 2 However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. The bonds to be issued by the CMFA are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of this project. The Housing Element of the City of Santa Ana's General Plan has identified special housing needs for various population groups. Although this project serves to provide additional affordable senior housing units towards representing 7 percent of Santa Ana residents, the General Plan has identified the greatest need in the area of larger housing units which represent 38 percent of all city households (Santa Ana General Plan Housing Element- 2014). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The Board of Directors of the California Foundation for Stronger Communities, a California non- profit public benefit corporation (the "Foundation"), acts as the Board of Directors for the California Municipal Finance Authority (CMFA). Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Santa Ana, it is expected that 25 percent of the issuance fee will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City. The CMFA does not receive issuance fees until a bond issuance closes. The fees the CMFA receives are based upon the par amount of the bonds issued. The Borrower ultimately decides when and if the bonds are actually issued and the final amount of bonds issued. The amount granted to the City is to be determined, but will not exceed $27,916 under the assumption the 75G-2 First Point Senior Apartments — TEFRA Hearing November 7, 2017 Page 3 entire $112.5 million in bonds are issued. Upon receipt, the funds will be deposited to the Miscellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002-57010). Robert M. Zur Schmiede Interim Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez �p Executive Director Finance and Management Services Agency Candida Neal, AICP Acting Executive Director Planning & Building Agency Exhibits: 1. Resolution 2. Narrative Description of Proposed Project 3. Notice to Applicant 75G-3 75G-4 RESOLUTION NO. 2017 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $112,500,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF FIRST POINT SENIOR APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, Santa Ana Pacific Associates II, a California Limited Partnership (the "Borrower") or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "Authority') adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $112,500,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 348 -unit senior multifamily rental housing project located at 2110 E. 1st Street, Santa Ana, California, generally known as First Point Senior Apartments (the "Project") and operated by Barker Management, Inc.; and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the City of Santa Ana (the "City") because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in Exhibit I 75G-5 which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. This resolution shall take effect immediately upon its adoption ADOPTED this _ day of , 2017. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney 12 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75G-6 Narrative Description of Proposed Project First Point Senior Apartments, Santa Ana, Orange County, California Location The site for the proposed project, First Point Senior Apartments, is on approximately 2.86 +/- acres of land identified as APN 402-191-04. The site is situated south of East First Street, between Interstate 5 and the Costa Mesa Freeway (State Route 55) in the City of Santa Ana, Orange County, California. Adiacent Land Uses NORTH: Commercial/ Retail/ First Point (To Be Built Multi -Family Apartments) SOUTH: Multi -Family Residential EAST: Rehabilitation and Care Center WEST: Commercial/Retail Housing Tvye The proposed development will be a 348 -unit rental new construction apartment community. With a mix of 271 one -bedroom units (approximately 586 sq. ft.) and 77 two-bedroom units (approximately 860 sq. ft.), First Point Senior Apartments will provide affordable housing for seniors earning up to 60% of the area median income (AMI) for Orange County. Construction Design & Proiect Description The project will consist of one, elevator serviced residential building. The proposed type of construction will be a six story, wood frame structure, designed and detailed in conformance with applicable building, life, safety and fire codes, supported by perimeter foundations with concrete slab flooring on top of the podium parking. Parking will be contained within the ground level, reinforced concrete and masonry podium structure. This type of construction will allow the building to conform to the natural terrain with only minor amounts of grading. Minimum construction standards will be adhered to in order to assure that a quality senior housing development is provided. The building will have various amenities such as community gathering areas, community rooms, and community laundry facilities located on the first, third, and fifth levels. Courtyards will provide open space and opportunities for seniors to socialize. Three managers will provide assistance and management will residing in designated manager's units. Exhibit Z First Point Senior Apartments 75G-7 Narrative Description of Proposed Project 75G-8 The unit mix will be as follows: Number of Units Bedrooms Unit Size AMI 270 1 586 sq. ft. (approximate) & 60% 75 2 860 sq. ft. (approximate) q500%0 % & 609%lo 1(Manager's Unit) 1 586 sq. ft. (approximate) 2 (Manager's Units) 2 860 sq. ft. (approximate) Within the units, tenants will enjoy standard features such as refrigerators, exhaust fans, dishwashers, disposals, and ranges with ovens. Most units will feature a covered patio or balcony and provide secure storage. Fully accessible units will serve disabled individuals. First Point Senior Apartments will be water and energy efficient, provide healthy indoor air quality and will incorporate long lasting durable materials on both the interior and exterior of the project. The design of these apartments will adhere to all necessary requirements to satisfy Section 504 as well as any additional mandates that the local jurisdiction deems appropriate. Unit Amenities All units will feature: • Refrigerators • Exhaustfans • Dishwashers • Garbage disposals • Ranges with ovens • Covered patio or balcony (most units) Pro[ect Amenities Project amenities include: • Approximately 70,000 sq. ft. of community space • Exercise room • Computer room • Recreation room including TV and lounge area, seating and kitchen • Community laundry rooms • Elevators • Podium parking • Controlled access and security features Development Schedule The community will be developed in one phase. The anticipated construction phase will be approximately thirty [30] months. The anticipated construction start date is June 2018 with a projected completion date of December 2020. First Point Senior Apartments 75G-9 Narrative Description of Proposed Project 75G-10 MAYOR Miguel A. Pulido MAYOR PRO TEM Michele Martinez P. David Benavides Vicente Sarmiento Jose Solorio Sal Tinajero Juan Villages November -2,2017 Tony Crowder The Pacific Companies 430 E State Street, Suite 100 Eagle, ID 83616 CITY OF SANTA ANA 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 714-647-6900 W W W.santa-ana.om Subject: Notice to Applicant Regarding Request for TEFRA Hearing Dear Mr. Crowder, INTERIM CITY MANAGER Cynthia J. Kurtz CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar This is in response to your request for the City of Santa Ana to conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority ("Authority") on behalf of the Santa Ana Pacific Associates, L.P. The TEFRA Hearing has been placed on our City Council agenda per your request. This TEFRA Hearing is not being considered by City Council as a recommended action per our staff. Instead this item is being considered as an applicant requested action. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of your project. If you have any questions regarding this letter, I may be reached by telephone at (714) 667-2241 or by e-mail at i brown6?4santa-ana. ora. Sincerely, Judson Brown Housing Division Manager Exhibit 13 SANTA ANA CITY COUNCIL Mguel A Pulido Mtbele Martinez Voenle SamAento Jose Solaria P. David Benavldes Juan Villegas Sal Tnalero Mayor Mayor Pro Tem, Ward 2 Ward Ward Ward Ward 'vllegasraffiantaana.om Ward mou7ldo0santa-ane Qm rrimadinez(irsanla-anaoro vsanniento0santaana.0rad a-ta dbenavdeslananlaana.ora srna eroAsanta-ana.ora 75G-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF VILLA COURT SENIOR APARTMENTS AND RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATEGIC PLAN NO. 5, 3) CI ANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on I� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of the Santa Ana Senior Associates, L.P. (the 'Borrower"), for the benefit of Villa Court Senior Apartments (the 'Project') to finance the acquisition, construction, improvement and equipping of a 418 -unit senior multifamily rental housing project located at 2222 E. 1st Street, Santa Ana, California, generally known as Villa Court Senior Apartments. 2. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $156,000,000 for the purpose of financing the acquisition, construction, improvement and equipping of a 418 -unit senior multifamily rental housing project located at 2222 E. 1st Street, Santa Ana, California, generally known as Villa Court Senior Apartments. DISCUSSION Santa Ana Senior Associates, a California Limited Partnership or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $156,000,000 (the `Bonds") for the acquisition, construction, improvement and equipping of a 418 -unit senior multifamily rental housing project located at 2222 E. 1st Street, Santa Ana, California, generally known as Villa Court Senior Apartments (the 'Project') and operated by Barker Management, Inc. 75H-1 Villa Court Senior Apartments — TEFRA Hearing November 7, 2017 Page 2 However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative' of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. The bonds to be issued by the CMFA are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of this project. The Housing Element of the City of Santa Ana's General Plan has identified special housing needs for various population groups. Although this project serves to provide additional affordable senior housing units towards representing 7 percent of Santa Ana residents, the General Plan has identified the greatest need in the area of larger housing units which represent 38 percent of all city households (Santa Ana General Plan Housing Element- 2014). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The Board of Directors of the California Foundation for Stronger Communities, a California non- profit public benefit corporation (the "Foundation"), acts as the Board of Directors for the California Municipal Finance Authority (CMFA). Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Santa Ana, it is expected that 25 percent of the issuance fee will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City. The CMFA does not receive issuance fees until a bond issuance closes. The fees the CMFA receives are based upon the par amount of the bonds issued. The Borrower ultimately decides when and if the bonds are actually issued and the final amount of bonds issued. The amount granted to the City is to be determined, but will not exceed $35,166 under the assumption the 75H-2 Villa Court Senior Apartments — TEFRA Hearing November 7, 2017 Page 3 entire $156 million in bonds are issued. Upon receipt, the funds will be deposited to the Miscellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002-57010). Rob rt M. Zur Schmiede Candida Neal, AICP Interim Executive Director Acting Executive Director Community Development Agency Planning & Building Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Ao Executive Director Finance and Management Services Agency Exhibits: 1. Resolution 2. Narrative Description of Proposed Project 3. Notice to Applicant 75H-3 75H-4 RESOLUTION NO. 2017 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $156,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF VILLA COURT SENIOR APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, Santa Ana Senior Associates, a California Limited Partnership (the "Borrower") or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "Authority') adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $156,000,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 418 -unit senior multifamily rental housing project located at 2222 E. 1st Street, Santa Ana, California, generally known as Villa Court Senior Apartments (the `Project") and operated by Barker Management, Inc.; and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the City of Santa Ana (the "City") because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in Exhibit i 75H-5 which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. This resolution shall take effect immediately upon its adoption. ADOPTED this _ day of , 2017. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney Ryan Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75H-6 Narrative Description of Proposed Project Villa Court Senior Apartments, Santa Ana, Orange County, California Location The site for the proposed project, Villa Court Senior Apartments, is on approximately 3.17 +/- acres of land identified as APN 402-181-11. The site is situated south of East First Street, just west of State Route 55 (Costa Mesa Freeway) in the City of Santa Ana, Orange County, California and is currently addressed as 2222 East First Street. The site is currently improved with an old hotel that is open but at the end of its economic life and soon to be demolished. Adiacent Land Uses NORTH: Commercial/Retail SOUTH: Multi -Family Residential EAST: Vacant; State Route 55 (Costa Mesa Freeway) WEST: Advanced Rehab Center of Tustin Housing Tvoe The proposed development will be a 418 -unit rental new construction apartment community. With a mix of 96 studio units (approximately 407 sq. ft.), 257 one -bedroom units (approximately 568 sq. ft.) and 65 two-bedroom units (approximately 816 sq. ft.), Villa Court Senior Apartments will provide affordable housing for seniors earning up to 60% of the area median income (AMI) for Orange County. Construction Design & Project Description The project will consist of one residential building. The proposed type of construction will be a five [5] story, Type III wood framed structure, designed and detailed in conformance with applicable building, life, safety and fire codes. The structure will be supported by a Type I parking structure podium with perimeter foundations and a concrete slab. Minimum construction standards will be adhered to in order to assure that a quality senior housing development is provided. Per the City's requirements, three exterior finish materials will be utilized: painted light sand 16/20 finish stucco will comprise a majority of the exterior, fiber cement board panel (grey color material) in a corrugated finish from Nichiha, and a porcelain tile (rust color material) used at the main leasing area along East First Street and at both corners of the building fronting the Costa Mesa Freeway. The building will have various amenities such as community gathering areas spread over four courtyards and a roof deck for the residents to interact and enjoy. There will also be an approximately 22,800 square feet paseo accessible to both the residents and the public. In addition, there will be a clubhouse, gym, computer room, seating benches throughout the site, and on-site laundry facilities. The amenities are situated throughout the site to offer opportunities for seniors to be active and socialize. habit 2 Villa Court Senior Apartments 7 d bit Narrative Description of Proposed Project The unit mix will be as follows: Number of Units Bedrooms Unit Size AMI 96 Studio 407 sq. ft. (approximate) 50%&60% 256 1 568 sq. ft. (approximate) 50%& 60% 63 2 816 sq. ft. (approximate) 50%& 60% 1(Manager's Unit) 1 568 sq. ft. (approximate) 2 (Manager's Units) 2 816 sq. ft. (approximate) Within the units, residents will enjoy standard features such as refrigerators, exhaust fans, dishwashers, disposals, and ranges with ovens. All units will feature a covered patio or balcony and provide secure storage. Fully accessible units will serve disabled individuals. Villa Court Senior Apartments will be water and energy efficient, provide healthy indoor air quality and will incorporate long lasting durable materials on both the interior and exterior of the project. The design of these apartments will adhere to all necessary requirements to satisfy Section 504 as well as any additional mandates that the local jurisdiction deems appropriate. Unit Amenities All units will feature: • Refrigerators • Exhaust fans • Dishwashers • Garbage disposals • Ranges with ovens • Covered patio or balcony Project Amenities Project amenities include: • Approximately 80,000 sq. ft. of community facilities and common areas • Exercise room • Computer room • Community laundry rooms • Elevators • Podium parking • Controlled access and security features Develonment Schedule & Off -Site Imorovements The community will be developed in one phase. The anticipated construction phase will be approximately thirty [301 months. The anticipated construction start date is June 2018 with a projected completion date of December 2020. The development budget includes $350,000 in demolition costs that will be incurred while removing the current structure that resides on the site. Villa Court Senior Apartments Narrative Description of Proposed Project 75H-8 MAYOR Miguel A. Pulido MAYOR PRO TEM Michele Martinez COUNCILMEMBERS P. David Benavides Vicente Sarmiento Jose Solodo Sal Tinajero Juan Villages November 2, 2017 Tony Crowder The Pacific Companies 430 E State Street, Suite 100 Eagle, ID 83616 CITY OF SANTA ANA 20 Civic Center Plaza . P.O. Box 1988 Santa Ana, California 92702 714-647-6900 W W W.santa-ana.om Subject: Notice to Applicant Regarding Request for TEFRA Hearing Dear Mr. Crowder, INTERIM CITY MANAGER Cynthia J. Kurtz CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar This is in response to your request for the City of Santa Ana to conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority ("Authority") on behalf of the Santa Ana Senior Associates, L.P. The TEFRA Hearing has been placed on our City Council agenda per your request. This TEFRA Hearing is not being considered by City Council as a recommended action per our staff. Instead this item is being considered as an applicant requested action. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of your project. If you have any questions regarding this letter, I may be reached by telephone at (714) 667-2241 or by e-mail at ibrownftanta-ana.or¢. Sincerely, Judson Brown Housing Division Manager Exhibit 3 SANTA ANA CITY COUNCIL Miguel a Pulido McHale Martinez Vicente Samdeds Jose Salado P. Dowd aenavides Juan YYlegas Sal Tinalero Mayor Mayor Pro Tem, Ward 2 Wad Wada Wad Wad Ward moulido(dsanla-ana.ors mimartinezOsanta-anae ysannienWWsanta-ana.ora tgklagoua dsenay1des(alsantaana.om iv'lleaa,Msanta-arena sl'nserruolsanto-sna.om 75H-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED PUBLIC HEARING — RESOLUTION TO ❑ As Recommended AUTHORIZE NEGOTIATION FOR THE SALE OF ❑ As Amended PORTIONS OF CITY -OWNED REAL PROPERTY El Ordinance on 10Readi AT 827, 829, AND 907 NORTH BRISTOL El Ordinance on 2 Reading Reading ❑ Implementing Resolution STREET ❑ Set Public Hearing For (NONGENERAL FUND) (STRATEGIC PLAN NOS. 6, 1G; 3, 2C} CONTINUED TO VJ FILE NUMBER CI ANAGER Adopt a resolution authorizing direct negotiation for the sale of portions of three City -owned properties at 827, 829, and 907 North Bristol Street, without the need for public auction or competitive bidding, as permitted by Section 2-709 of the Santa Ana Municipal Code upon 2/3 vote of the City Council. DISCUSSION During the course of the Bristol Street Improvement Project, the Public Works Agency has acquired numerous properties along the corridor. The subject properties at 827, 829, and 927 North Bristol Street (APN 405-262-21, 22, and 23) were acquired as part of Bristol Street Improvements Phase 3A (Exhibit 1), bound by Civic Center Drive and Washington Avenue. The purchase prices of the three properties acquired by the City were based on appraised values prepared by a state licensed appraiser. The portions of these properties that will remain after the Bristol Street Improvement Project is completed will not be used by the City and are being held for purposes of exchange or sale. In -N -Out Burgers operates a drive-through restaurant immediately adjacent to the properties. In -N -Out Burgers has approached the Public Works Department to address their drive-through spill-over traffic issues. Due to the restaurant's popularity, spill-over traffic regularly backs up on Bristol Street far enough to block the driveways of adjacent businesses, block pedestrian crosswalks, and interfere with regular traffic. As a result, City staff has received numerous complaints from adjacent businesses, residents, and neighborhoods, including threats of legal action that could result in an involuntary solution. The negotiation of the sale of the properties would be contingent on a redesign of the restaurant's site plan and mitigating the spill-over traffic issue. City staff has been working proactively with In -N -Out Burgers and has reviewed a draft site plan that will triple the drive-through stacking capacity and meet the site vehicular demands. Under the Santa Ana Municipal Code (SAMC) Section 2-706, surplus real property may be sold (after authorization by the Council) only to the highest bidder, subject to final confirmation by the Council and with notice of the sale given by newspaper publication. SAMC Section 2-709, however, provides an exemption to this procedure and permits a sale on direct negotiation without the need for public auction or competitive bidding, upon 2/3 vote of the City Council after a duly noticed public hearing. 751-1 Public Hearing — Resolution to Authorize Negotiation for Sale of City -owned Real Property at 827, 829, and 907 N. Bristol Street November 7, 2017 Page 2 Staff recommends direct negotiation with In -N -Out Burgers to ensure that the current traffic issue is mitigated, as well as business and resident complaints are addressed. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact to the general fund. Revenue from the sale of City -owned real property must be recognized as such by the Select Street Construction Fund and the Measure M2 Street Construction Fund used for its acquisition. Upon completion of negotiations, staff will bring the transaction, including the revenues generated, for City Council authorization to recognize and receive the proceeds. -:! 1 ;ZY2 Fred Mousavipou Executive Director Public Works Agency FM/EWG/JG/KN/ML Exhibits: 1. Location Map 2. Resolution Candida Neal Acting Executive Director Planning & Building Agency 751-2 MATCHLINE SEE BELOW RIGHT 405-282-27 10TH STREET I'_m -T� LEGEND. -WJECT FP.OPEP.TILS SANTA ANA P I CI1Y COUNCL AGENDA DATE NOV. 7, 2017 MELIG VMS FGCCY 405-202-26 405-262-25 405-262-24 405-262-23 405-262-22 405-262-2I a E r a CMC CENTER DR. i L--j- WASHINGTON AVENUE N 40 -27-0-12 r ti N 0 40 -''74'11 g 12TH STREET 405-274-09 405-202-33 405-202-32 405-2662-31 405-262-30 405-2662-29 405-262-29 MATCHLINE SEE TOP LEFT EXHIBIT 1 PUBLIC HEARING - RESOLUTION TO AUTHORIZE NEGOTIATION FOR THE SALE OF PORTIONS OF CITY -OWNED REAL PROPERTY AT 827, 829, AND 907 NORTH BRISTOL STREET (NONGENERAL FUND) ISiralealc Plan No. 6. L G and 3, 2, C) 751-3 PAGE 1 OF 1 751-4 ]mf 10/13/2017 RESOLUTION NO. 2017 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING DIRECT NEGOTIATIONS FOR THE SALE OF PORTIONS OF CITY -OWNED REAL PROPERTY AT 827 NORTH BRISTOL STREET, 829 NORTH BRISTOL STREET AND 907 NORTH BRISTOL STREET BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In 2016, during the course of the Bristol Street Improvements Project, the City acquired the adjacent real property at 827 North Bristol Street, 829 North Bristol Street, and 907 North Bristol Street, B. The portions of these properties that will remain after the Bristol Project is completed have not been used by the City and are being held for purposes of exchange or sale. C. In -N -Out Burgers operates a drive-through restaurant immediately adjacent to the properties. The City finds that the development of the properties by In -N -Out Burgers to redesign its site plan would serve the public interest by relieving spill over traffic on Bristol Street regularly caused by the restaurant's queueing line, thereby improving access to neighboring properties and relieving congestion on a major street. D. Santa Ana Municipal Code section 2-706 establishes the procedures for the sale of City -owned surplus real property. Under these procedures, following council authorization for sale, City -owned surplus real property shall be sold by competitive bidding to the highest bidder subject to final authorization of the City Council. E. As permitted by Santa Ana Municipal Code section 2-709, the sale of City - owned real property may be exempted from this manner of sale upon 2/3 vote of the City Council after a duly noticed public hearing, whereby the sale may instead be made upon a basis of direct negotiations without the necessity for public auction or competitive bidding, when the authority to so negotiate has been granted by the City Council. Resolution No. 2017-xxx Exhibit 2 Page 1 of 3 751-5 W 10/13/2017 F. On November 7, 2017, the City Council held a duly noticed public hearing after which a 2/3 majority of the City Council voted to exempt the sale of portions of the real property at 827 North Bristol Street, 829 North Bristol Street, and 907 North Bristol Street from competitive bidding and authorize direct negotiations for their sale with In -N -Out Burgers, an entity that intends to redesign their existing adjacent site to relieve spill over traffic over Bristol Street, Section 2. The City Council of the City of Santa Ana hereby exempts the sale of portions of the City -owned real property at 827 North Bristol Street, 829 North Bristol Street, and 907 North Bristol Street from the competitive bidding procedures in Santa Ana Municipal Code section 2-706 and authorizes the City Manager or his or her designee to negotiate directly for their sale with In -N -Out Burgers, Inc., in accordance with Santa Ana Municipal Code section 2-709. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 7w day of November, 2017. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney 4J�n M. Funk Assistant City Attorney AYES NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor 751-6 Resolution No. 2017-xxx Page 2 of 3 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council Resolution No 2017 -XXX to be the original City of Santa Ana on November 7, 2017. Date Jmf 10/13/2017 do hereby attest to and certify the attached resolution adopted by the City Council of the Clerk of the Council City of Santa Ana 751-7 Resolution No. 2017-xxx Page 3 of 3 751-8 REQUEST FOR COUNCIL/ HOUSING AUTHORITY ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: APPROVED SECOND AMENDMENT TO JOSEPH HOUSE LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS {STRATEGIC PLAN NO. 5,31 CITY MA ER EXECUTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute a Second Amendment to the Joseph House Loan Agreement and Affordable Housing Covenants with Mercy House Living Centers, formerly known as Mercy House Transitional Living Centers, to allow for the remaining transitional housing unit to be turned into permanent affordable housing and dissolve transitional housing and transitional shelter at 210 E. 16th Street, subject to non -substantiative changes approved by the City Manager and City Attorney. HOUSING AUTHORITY ACTION Authorize the Executive Director of the Housing Authority and the Clerk of the Council to execute a Second Amendment to the Joseph House Loan Agreement and Affordable Housing Covenants with Mercy House Living Centers, formerly known as Mercy House Transitional Living Centers, to allow for the remaining transitional housing unit to be turned into permanent affordable housing and dissolve transitional housing and .transitional shelter at 210 E. 16th Street, subject to non - substantiative changes approved by the Executive Director and the Housing Authority General Council. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on October 25, 2017, by a vote of 6:0 (De Leon absent), the Community Redevelopment and Housing Commission approved the recommended action. 80A-1 Second Amendment to Joseph House Loan Agreement and Affordable Housing Covenants November 7, 2017 Page 2 DISCUSSION On April 11, 2006, the City of Santa Ana and the former Community Redevelopment Agency of the City of Santa Ana (RDA) entered into a Housing Development Loan Agreement and Affordable Housing Covenants with Mercy House Transitional Living Centers (Mercy House) for the rehabilitation of the Joseph House Project located at 210 E. 16th Street. Mercy House has operated Joseph House as a transitional housing program for homeless single men in the community since 1990. At the time of the loan agreement in 2006, the City provided HOME Investment Partnerships Program (HOME Program) and RDA tax increment funds for the rehabilitation of the property. At the time of committing the HOME funds, the HOME Program allowed funds to be used for transitional housing. In accordance with the loan agreement and funding regulations, the City has continued to monitor Joseph House to ensure compliance with the loan documents, regulations, and affordable housing covenants. Due to funding and policy changes at the federal level, a First Amendment to the Agreement was entered into on December 1, 2016, to modify the Joseph House transitional housing program to become a dual-purpose facility offering both transitional housing and permanent housing with supportive services for single homeless men from the community. The proposed program modification from a transitional shelter to a dual-purpose model included the following: (1) convert two units of transitional housing into permanent housing with supportive services, offering low rental costs in compliance with low HOME rents to meet the needs of low-income homeless individuals in the community; (2) one unit to continue to operate as a transitional housing program; and (3) leverage rapid re -housing funds to reduce the length of time clients stay at the shelter with the goal of connecting them to permanent affordable housing opportunities. In May 2017, Mercy House began operation of the Bridges at Kraemer Place, a 200 -bed year round emergency shelter located in the City of Anaheim that serves single men and women. The advent of this large year round shelter for single adults as well as the Courtyard in Santa Ana, has replaced the need for Mercy House to continue to operate Joseph House as a transitional shelter. Furthermore, as demonstrated in the Business Plan and analysis of Orange County's housing market (Exhibit 1), there is a strong need in the community for the development of affordable housing for low-income including formerly homeless individuals. As such, Mercy House now seeks to amend the Housing Development Loan Agreement and Affordable Housing Covenants a second time to allow for the remaining transitional housing unit to be turned into affordable housing and dissolve transitional housing at the site (Exhibit 2). STRATEGIC PLAN ALIGNMENT The activities covered by this report allow the City to meet Goal # 5 (Community Health, Livability, Engagement & Sustainability), Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). 80A-2 Second Amendment to Joseph House Loan Agreement and Affordable Housing Covenants November 7, 2017 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Exhibits: 1. Joseph House Business Plan 2. Second Amendment to Housing Development Loan Agreement and Affordable Housing Covenants • I . Exhibit 1 Business Plan For Joseph Residence Permanent Housing Program Submitted to the City of Santa Ana 9/28/2017 Plan to transition Joseph House from its current state as a dual-purpose facility to a facility exclusively providing permanent housing with supportive services for single, homeless or low-income men from the community known as Joseph Residence. Executive Summary On April 1 1, 2006, the City of Santa Ana and the former Community Redevelopment Agency of The City of Santa Ana (RDA) entered into a Housing Development Loan Agreement and Affordable Housing Covenants with Mercy House Transitional Living Centers (Mercy House) for the rehabilitation of the Joseph House Project located at 210E. 16th Street. Mercy House operated Joseph House exclusively as a transitional housing program for homeless single men with in the community from 1990 -2015. At the time of the loan agreement in 2006, the City provided HOME Investment Partnership Program (HOME Program) and RDA tax increment funds for the rehabilitation of the property. In 2015, Mercy House submitted a request that was approved by the City and amended the HOME Program agreement to modify the Joseph House Transitional Shelter to a dual-purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless from the community. This included transitioning two of the transitional housing units into permanent housing with supportive services, offering low rental costs in compliance with HOME low rents to meet the needs of low-income and formerly homeless individuals. The remaining unit was kept as transitional housing serving homeless single men. In May 2017, Mercy House begun operation of the Bridges at Kraemer Place, a 200 -bed year round emergency shelter located in the City of Anaheim that serves single men and women. The advent of this large year round shelter for single adults as well as the Courtyard in Santa Ana, has replaced the need for Mercy House to continue to operate Joseph House as a transitional shelter. Furthermore, as demonstrated in the analysis of Orange County's housing market, there is a strong need in the community for the development of affordable housing for low-income including formerly homeless individuals. This document demonstrates Mercy House's plan to further modify Joseph House from its current state as a dual-purpose facility to a facility exclusively providing permanent housing with supportive services for single, homeless or low-income men from the community. Page 1 of 13 Organization Summary Mercy House Living Centers ("Mercy House") is a non-profit organization serving the homeless in Orange County, San Bernardino County, Riverside County. The non-profit was incorporated in 1988, began operations in 1990 and has been able to operate successful homeless service programs for over 27 years. Mercy House was quickly grown from a single shelter serving 10 single men, to a full system of care designed to meet the needs of the homeless at all stages of their struggle. In the past year, Mercy House provided services to nearly 5,000 of our community's most vulnerable men, women, and children. Though our services have expanded and changed, our mission and reason for existence remains the same: to end the homelessness of all who enter our system of care. Over the years we have created a system of care based on a blend of both continuum of care and housing first models of ending homelessness. This includes operating a variety of programs ranging from homeless prevention, emergency services and shelters, transitional and interim housing, rapid re -housing programs, permanent supportive housing, residential services and affordable permanent housing facilities. The intention of these programs is to address homelessness at every level. The diversity of these programs has also afforded us the experience of working with a wide variety of homeless subpopulations including, but not limited to; families, adult men and women, mothers and their children, veterans, chronically homeless individuals, persons living with HIV/AIDS, individuals overcoming substance addictions, and those who are both physically and/or mentally disabled. Mission Mission Statement: To be a leader in ending homelessness by providing a unique system of dignified housing opportunities, programs, and supportive services. Operational Statement: To end the cycle of homelessness of those who enter our system of care. Page 2 of 13 80A-7 2016-2017 Statistics Last year, Mercy House set a goal to prevent or end the our homelessness of 1,200 men, women. and children. We Results: surpassedthatgoalandprovidedapermanenthousingsolution to 1,390 men, women, and children in our communities! See the individual impacts of our programs below: Marcy Houses Homeless Prevention Program served 73 families Including 1 219 indwidaals Housing Portfolio MINIM Merccy Houses shelter programs ended the homelessnes of 107 men, women, & children Mercy House's ongoing permanent housing programs provide a permanent housing solution to 1,064 unduplicated incSviduais see through Rapid Re -Housing 122881n our Affordable Housing Programs .e 210 In our Permanent Supportive Housing Programs Housing operated by Mercy House in Orange County: Total Units: 582 Homeless Prevention (FYI 6) Rapid Rehousing (FYI 6) Units Under Development Low -Income Housing Permanent Supportive Housing 0 50 100 150 200 250 ■Total Units: 582 Page 3 of 13 Legal Entity Mercy House is a nonprofit 501(c) (3) organization founded in 1988 by Father Jerome T. Karcher. Mercy House has developed a continuum of care of provide homeless prevention, emergency shelter and services, transitional housing, and permanent housing with supportive services to homeless men, women, and children living in Orange County, San Bernardino County, Riverside County, and Phoenix, Arizona. Tax 1D: 33-0315864 Until 2009, Mercy House was known as Mercy House Transitional Living Centers. With the development of the Rapid Re -Housing Program and the Family Redirection Program, it became clear that permanent housing had emerged as a more viable solution to ending homelessness for many clients. On February 6, 2009, Mercy House changed its name to Mercy House Living Centers. Keys to Organizational Success • Build and leverage strong, active board of directors. • Only engage in projects and services that support identified primary strategic programs • Continue to design and implement strict financial controls and accountability • Align programs and services to national best practices to ensure effective service, delivery, better housing outcomes and increased cost effectiveness. Organizational Management Board of Directors The Board of Directors exists to advocate on behalf of the homeless. This entity has a responsibility to the agency to co -create and provide resources necessary for the mission and strategic development of Mercy House with the Executive Director. Board members are expected to contribute financially to the agency and secure outside monetary contributions through personal and corporate contacts. It is an expectation that the Board members attend bi-monthly meetings where they review important and relevant information relating to the agency's mission. Subcommittees of the Board address specific needs including strategic planning, fundraising and resource development, board development, overseeing audit activities, legal, human resources and agency finances. The Board holds responsibility for the operation of Mercy House. The Executive Director's performance is managed by the Board. This allows the staff (including the Page 4 of 13 Executive Director) to be held accountable to ensure effective service delivery, honest use of funds, and dignified general operations. Our current Board of Directors is a mix of 20 members, including participation by a formerly homeless individual. They come from a variety of sources, with varying professions. Some have been with Mercy House since its inception and have seen the agency through its entire history, whereas, others are new and bring an outside perspective. Executive Leadership Larry Haynes is the driving force behind the organization and fills the executive director role since 1990. His accomplishments include: • More than 27 years' experience as Executive Director of Mercy House, one of the longest tenures in Orange County, Calif. • Grew current agency from the smallest most unstable shelter provider to one of the most respected homeless service providers in Orange County and throughout Southern California. • Increased current agency's financial position from $20,000 in cash and no assets to an agency with several million dollars in assets, three months operating reserve, and no current debt service. • Speaker at numerous local, state, and national workshops and conferences on homelessness, housing, and leadership issues. • Led Mercy House in winning contract and operating the Orange County Cold Weather Armory Emergency Shelter in 2008, increasing services and security while serving more than 2,000 unduplicated homeless individuals during a five- month period annually. • Created and acquired funding for the Family Redirection Program during the Armory program, preventing hundreds of families with children from having to spend a night in an armory. Since inception this program has served nearly 2,000 families including more than 7,000 parents and children. Patti Long -Associate Director As Operations Director, Patti oversees and is responsible for all of the daily activities of the agency, concretely implementing on behalf of the Executive Director the agency's mission as defined by the Board of Directors. All staff, with the exceptions of the Executive and Housing Directors, report to the Operations Director. This is an inherently dynamic position whose duties will be in constant motion. Therefore, flexibility and creativity are of premium value. The Operations Director reports to the Executive Director. Further responsibilities include managing and supervising identified staff, and coordinating trainings and orientations when needed. Page 5 of 13 Fi l l Linda Wilson - Housing Director As Housing Director, Linda oversees the agency's housing programs, partner relations, and significantly assists with special projects that add meaningful value to the agency's system of care. This is an inherently dynamic position whose duties will be in constant motion. Therefore, flexibility and creativity are of premium value. The Housing Director reports directly to the Executive Director. Further responsibilities include the design and implementation of ongoing operations for supportive housing programs, develop and implementation of Aftercare and support services, delivering Aftercare Services to Mercy House graduates in the voucher program, delivering Aftercare Services to Mercy House graduate residing at San Miguel, and the development and implementation of new projects as identified by Executive and Operations Directors. Allison Davenport - Program Development and Compliance Director As the Program Development and Compliance Director, Allison is responsible for providing support to the Associate Director to ensure effective and compliant service delivery of existing and expansion projects. This position manages the agency's public and private grants including procurement, compliance, contracts and reporting. This position also manages and oversees the agency data and program evaluation. She reports directly to the Associate Director. Management of Finances Mercy House recognizes it is responsible for establishing and maintaining effective internal controls to ensure compliance with laws, regulations, contracts, and grants applicable to federal, state, local, and private funding. As a result, Mercy House has established fiscal accounting procedures in accordance with the Financial Accounting Standards Board (FASB) and as needed, GASB. Mercy House follows certain precepts in the conduct of its activities that include: • A Board of Directors to oversee business activities • Written policies for all accounting procedures and internal controls • Separation of accounting duties and responsibilities • Use software for accounting procedures that can track how grant money is spent • An annual outside audit after the fiscal year end (June 30) The objective of these practices is intended to: • Provide a reasonable assurance that all assets are safeguarded against loss by unauthorized use or disposition • Ensure all transactions are executed in compliance with management authorizations and are recorded properly and accurately in accordance with generally accepted accounting principles Page 6 of 13 80A-11 • Adequately maintain records and internal control procedures to ensure compliance with laws and regulations Mercy House has a full-time Finance Manager and supporting accounting team, who are responsible for the following bookkeeping activities: managing accounts payable, cash receipts and payroll; preparing monthly financial statements and grant billings and assisting with the annual budget and audit. Our Operations Director oversees all financial activities. Our Finance Manager and Operations Director will review financial statements and budgets with each Program Manager on a regular basis and will make adjustments on spending as necessary. We utilize a fund accounting system designed specifically for non-profit agencies. We use a cash -basis accounting system. Our Finance Manager prepares the following reports on a monthly basis: balance sheet, profit and loss statement, general ledger, grant general ledgers, a functional expense report, and other reports as needed and required. A Certified Public Accountant who is a member of the Board of Directors is responsible for reviewing all financial statements on a monthly basis, presenting the organization's financial status at monthly Board meetings, securing Board approval of financials and preparing the annual tax returns. Keys to Organizational Success • Build and leverage strong, active board of directors. • Only engage in projects and services that support identified primary strategic programs. • Continue to design and implement strict financial controls and accountability. • Align programs and services to national best practices to ensure effective service delivery, better housing outcomes and increased cost effectiveness. Market Analysis Orange County Housing Challenges According to the Orange County Community Indicators Report (2017), the following present key indicators of homelessness and housing stability challenges for Orange County residents: Rental Affordability In 2017, the hourly wage needed to afford a median -priced one -bedroom unit was $27.62, equivalent to an annual income of $57,440. This Housing Wage is up from $25.46 in 2016 and above the previous five-year average of $25.37. Workers earning above Page 7 of 13 80A-12 minimum wage, but below the Housing Wage of $27.62 may experience increased economic insecurity, as a larger proportion of their earnings must go towards housing. High rent burden can also lead to overcrowding and homelessness. $28/HOUR NEEDED TO AFFORD A ONE -BEDROOM MINIMUM WAGE INCREASES INSUFFICIENT IN THE IN ORANGE COUNTY FACE OF ORANGE COUNTY'S HEFTY RENT BURDEN Reglonal Comparison pf the Houdy Wage Needed to Afield Rental Market Af(ardabNty in Orange County. ]016 and 2017 a One -Bedroom Unit. 2017 f I k 8 Zi s _ a `______ U - 2016 .017 MEDIAN MARKET RENT (MONTHLY) $1,324 $1,436 jONEBEDROOM TWO BEDROOM $ 1.672 $ 1,613 THREE BEDROOM $2.322 S2.531 AMOUNT A HOUSEHOLD WITH ONE 5 520 S 546 MINIMUM WAGE EARNER CAN AFFORD TO PAY IN RENT (MONTHLY) NUMBER OF HOURS PER WEEK A MINIMUM WAGE EARNER MUST WORK TO AFFORD A ONE -BEDROOM APARTMENT 102 IDS SanctiC.." avrice:h.s Rtgu!enat—at Fair 1111Anu rbua hdn nc� Sou eei Conunw!Y/^dke[o-f hoo,temyvz a/FNr KVFe(Rmt tla[e/ Me US OeN `u of Hw,yYp am'r n Melyvnent (wwivlu,W!nmp)uf4g us papartmenl I Heusv mM.Oew'be—l(mvwhadus o.a the tM metlroauYx]ya/Me Nafiwlfan lntm�e Nauhg Ca+n:vn (.n.wM+evpk melhaddu]yot[l,e NeevultnNlncame lbuv,g CwGrm (nm>•MiM1Gwyl GlAanle Emp(tymml Cewlpv,anlCms'Nsn((x'x�veddNpav) In Orange County, median hourly wages for carpenters, machinists and administrative assistants are too low to afford median rent for a one -bedroom unit. Wages for personal care aides and retail salespersons are lower still, less than half the amount needed to afford a one -bedroom unit. For these lower-income workers, a substantial proportion of their personal income must go toward housing, leaving less for other basic needs and unexpected expenses. High rent burden can also lead to overcrowding, when families double- or triple -up in a house to save money on rent, or homelessness if a family or individual gets behind on rent or cannot afford the upfront costs of renting. RENT BURDEN IS HIGH FOR MANY LOWER -WAGE WORKERS Hourly Wage Needed to Afford a Median One -Bedroom Unit in Omoge County (20U) Compared to Medan Local Wages in Selected Occupations (3rd Quarter 2016) Software D2VBIRRer Biomedical Engineer Registered Nurse Computer Programmer Carpenter Setreter,%dministralaw Assistant Machinist Retail Salesperson Personal Care Aide Soun-er Ca,rmurr:rylMieafors Report e,ralysis aIFALMariet Rent cars from the US Oepartnxnf olHausn9 a,M lNhen OevNpmrars uam9 tMn:ethaadroay atthe Ne'Avl Low1.Houmrg Oaastion GV17M,u Wa9U U8(arvaF.NPyment Oerplmmenf CeOv:ment Occuverm ml Fmpbyrnml3N(ena (3AQUNer20i6) Page 8 of 13 Homeless Point -in -Time Count The Homeless Point -in -Time Count and Survey is conducted every two years during the last part of January. Since 2013, Orange County has seen a continuous increase in the number of homeless persons in the community. The 2017 Point -in -Time Count revealed that the number of unsheltered homeless individuals increased since the 2015 count. A total of 2,584 unsheltered homeless individuals were found to be living on the streets of Orange County compared to the 2,201 individuals counted in 2015. Numbers of Unsheltered and Sheltered Number of People Experiencing Homeless Persons, 2013 - 2017 Homelessness January 27, 2017 6000 4,792 people were homeless in Orange County 5000 on January 27-2811h 4000 3000 2000 • _ 1000 - 3.090,132 4,251 - -- 0.14% 0 3,145,515 4,452 0.14% t1 2013 2015 2017 3,194,024- 4,792 — 0.15% f ■Sheltered ■unsheltered JJ ®�OCLS F.sStrat"' -nd Program Implementation and Strategic Changes Mercy House first began operation of the Joseph House Transitional Shelter Program in 1990. It was designed to meet the needs of 10 homeless, single men within the community. Since that time, Joseph House rapidly expanded to provide shelter and supportive services to 21 homeless single men. Though homeless single men have consistently been overrepresented in Orange County Homeless Point -in - Time counts, the services available to them have not been able to meet their large numbers. As homeless services continue to grow and adapt to the needs of specific subpopulations including homeless families, the chronically homeless, individuals facing domestic violence and veterans, there continues to be a lack of • A 2 .� Bridges at Kraemer Place: Bridges at Krae mer Place Is a 24-hour emergency shelter facility In the City of Anaheim. Currently In Phase 1, Bridges serves 100 adult men and women by providing emergency shelter, housing search and support, and offers additional supportive services. Phase 2wlll serve up to 200 men and women In 2018 and will operate a full multi -service center, on-site health clinic, full kitchen, and more. Page 9 of 13 services designed specifically for single, homeless men. For many years, Joseph House served as one of the only shelters in Orange County serving single men. In May 2017, Mercy House began operations of Bridges at Kraemer Place a 200 -bed year round shelter for single adult men and women, replacing the need for the Joseph House facility to continue to operate as a transitional shelter. Additionally, the County of Orange in partnership with the City of Santa Ana began operations of the Courtyard in the City of Santa Ana further reducing a local need for shelter beds for single adults. While the need for shelter beds has diminished as demonstrated in the analysis of Orange County's housing market, there is a strong need in the community for the development of affordable housing for low-income including formerly homeless individuals. In response to this need, "Joseph House" will be modified to "Joseph Residence" a 3 unit, 15 -bed facility exclusively providing permanent housing with supportive services for single, homeless or low-income men from the community. Joseph Residence Permanent Housing Program The Joseph Residence Permanent Housing Program will be designed to provide low- income permanent housing with supportive services to 15 low-income single men including but not limited to those who are homeless or may have other barriers to housing. Two units have already been converted and one remaining unit will be converted to permanent housing. Each unit has two bedrooms. One will bedroom in each unit will house 4 single men in permanent housing; the remaining bedroom will house 1 single homeless man. Bedrooms will not have private bathrooms. Each unit offers a communal kitchen, dining area, and living area with shared bathrooms. Mercy House staff will be available to provide required supportive services include case management and life skills classes as well as emergency and maintenance assistance. The targeted outcome for each individual will be long-term, stable housing. Each client will be provided with case management to identify barriers to permanent housing, with the ultimate goal being stable housing for each individual, whether that is through our permanent housing programs, or permanent housing outside of Mercy House's Continuum of Care. Eligibility for Admission To be eligible for admission to the Joseph Residence Permanent Housing Program, an applicant must be documented and of legal age (18 years of age or older). Page 10 of 13 Every participant will be required to meet the definition of homelessness as set forth by HUD and will be required to be under 80% Area Median Income at time of entry and throughout their stay. Applicants must be single men and homeless or at risk of homelessness and be willing to live in a shared space facility. All applicants will be considered individually. Applicants will be considered when they complete the application packet and the following criteria are met: 1) Applicant can exhibit documentation confirm homeless status 2) Applicant's verified minimum monthly gross income is $100 over the amount of resident's rent payment. 3) Household's annual income does not exceed the low-income limits (80% of area median income) as established by HUD. 4) Household income is such that applicant can satisfactorily meet their debt obligations without subtracting from other necessary living expenses. This includes payment of rent, current debt payments and basic necessities. 5) No eviction history for a period of 2 years prior to entry 6) No history of criminal convictions for sex offenses, violent crimes and distribution of drugs. No outstanding felony warrants. 7) No record of disturbance of neighbors, damage to or destruction of property, living or housekeeping habits at prior residences, which adversely affects the health, safety or welfare of other tenants. 8) Willing and able to live cooperatively in a communal living situation and abide by the policies outlined in the Joseph Residence Rules of Occupancy and Rental Agreement addendums. 9) Willing to participate in annual recertification meetings to verify income and continued eligibility. Residents for the Joseph Residence Permanent Supportive Housing Program will be selected based on their eligibility as well as their need for low-income housing and the statutory purpose in leasing a socially and financially sound housing development, which provides not only a decent home and suitable living environment, but fosters economic and social diversity in the tenant body as a whole. Definition of Homelessness All clients receiving services through the Joseph Residence Permanent Housing Program will be required to be homeless as defined by the HEARTH Act's Final Rule Defining Homelessness (76 FR 75994) published on December 5, 2011. 1. Category 1 - Literal Homelessness: Page 11 of 13 (1) Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (i) Has a primary nighttime residence that is a public or private place not meant for human habitation; (ii) Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state and local government programs); or (iii) Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution Transitional housing for homeless persons who originally came from the streets or emergency shelters. 2. Category 2 - Imminent Risk of Homelessness: (2) Individual or family who will imminently lose their primary nighttime residence, provided that: (i) Residence will be lost within 14 days of the date of application for homeless assistance; (ii) No subsequent residence has been identified; and (iii) The individual or family lacks the resources or support networks needed to obtain other permanent housing. 3. Category 3 - Homeless Under Other Statutes (3) Unaccompanied youth under 25 years of age, or families with Category 3 children and youth, who do not otherwise qualify as homeless under this definition, but who: (1) Are defined as homeless under the other listed federal statutes; (ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing during the 60 days prior to the homeless assistance application; (iii) Have experienced persistent instability as measured by two moves or more during in the preceding 60 days; and (iv) Can be expected to continue in such status for an extended period of time due to special needs or barriers. Structure and Location Joseph Residence is located in the city of Santa Ana in the French Park neighborhood. Mercy House owns three properties in the same neighborhood and has been an active participant in the community since 1990. The Joseph Residence property has access to grocery stores, restaurants and public transportation. The property is comprised of four units, three of which will be used for permanent housing with supportive services. The three units are 2 -bedroom units with adequate cooking and hygiene facilities. The fourth unit is occupied by an on-site residential coordinator. Zoning and Uses Mercy House is currently operating Joseph House under a Conditional Use Permit that allows the housing of homeless single men. Page 12 of 13 80A-17 Rehabilitation for Use as Permanent Housing Facility The Joseph Residence facility would require little rehabilitation to transition to a permanent housing facility. During the past year Mercy House made a number of minor repairs to the units. Prior to lease up Mercy House will inspect the units again for any necessary repairs and/or alterations in preparation for new low-income tenants. It is not anticipated that these repairs would significantly delay project start-up. On-going Maintenance of the Facility Mercy House has on staff Maintenance Managers who are in charge of regular maintenance and repair of Mercy House's facilities including the Joseph House Facility. Additionally, Mercy House has connections to a network of professional service volunteers who provide pro-bono services such as plumbing, electrical and landscaping as needs should arise. Volunteer groups will be recruited to support facility beautification projects that include upgrades to the facility grounds and gardens, interior furniture replacement as well as interior and exterior painting projects. Mercy House also allocates a percentage of funding as replacement reserves that may be used for special projects to improve the facility, regular maintenance and replacement of furniture as needed. Strategies for Sustainability and Leveraging Mercy House has consistently funded the operations of Joseph House as a transitional shelter for over 25 years and as such has garnered a variety of both public and private resources to support the project. In moving to a permanent housing facility, Mercy House will effectively communicate the programmatic changes to these partners to ensure continued support of the project. As part of its resource development strategies, Mercy House is engaged in ongoing funding research that replaces, supplants or provides new funding opportunities. Page 13 of 13 Exhibit 2 i SECOND AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS THIS SECOND AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS, made and entered into this 29th day of September, 2017, by and between MERCY HOUSE LIVING CENTERS, formerly known as MERCY HOUSING TRANSITIONAL LIVING CENTERS, a California non-profit public benefit corporation ("Developer"), the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and the Housing Authority of the City of Santa Ana acting as the Successor Housing Agency to the Community Redevelopment Agency of the City of Santa Ana ("Successor Housing Agency"). RECITALS A. The City and Successor Housing Agency entered into a Housing Development Loan Agreement and Affordable Housing Covenants with Developer, dated April 11, 2006, to provide financial. assistance from Redevelopment funds and the United States Department of Housing and Urban Development ("HUD") under the HOME Investment Partnership Program ("HOME Program") for the rehabilitation of the Joseph House Project located at 210 East Sixteenth Street, Santa Ana, for the operation of a transitional living center for homeless, single men ("said Agreement'). B. Due to funding and policy changes at the federal level, a First Amendment to the Agreement was entered into on December 1, 2016, to modify the Joseph House transitional housing program to become a dual-purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless men from the community. The proposed program modification from a transitional shelter to a dual-purpose model included the following: (1) Transition two units of transitional housing into permanent housing with supportive services, offering low rental costs in compliance with HOME low rents to meet the needs of low-income homeless men in the community; (2) One unit to continue operating as a transitional housing program; and (3) Leverage rapid re -housing funds to reduce the length of time clients stay at the shelter with the goal of connecting them to permanent affordable housing opportunities. C. Due to the need for affordable housing for formerly homeless and low-income individuals, and in accordance with the terms and conditions of said Agreement, the parties seek to further amend the Housing Development Loan Agreement and Affordable Housing Covenants to allow for the remaining transitional housing unit to be turned into affordable housing and dissolve transitional shelter at the site. NOW THEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement and the First Amendment to the Agreement, except as herein modified, the parties agree as follows: Section 1. 1, Defined Terms, the first sentence of the definition of "Property" shall be amended in pertinent part to read as follows: "The Property is located in the City of Santa Ana, and is used as permanent housing with supportive services for single, homeless or low-income men from the community." 2. Section 5.4, Other Terms and Conditions of Loan, subsection (5) shall be amended to read as follows: "failure of Developer or a subsequent owner*to use the Property for the purpose of permanent housing with supportive services for single, homeless or low-income men from the community." 3. Section 7. 1, Use and Maintenance of the Property, subsection (B) shall be amended to read as follows: "Use the Property as a facility offering permanent housing with supportive services for single, homeless or low-income individuals from the community, as detailed in the Developer's Plan attached hereto as Exhibit G-1 and incorporated herein by this reference." 4. Except as hereinabove modified in this Second Amendment, the terms of said Agreement as modified by the First Amendment shall remain in full force and effect. In the event of any conflict between the tenns of this Second Amendment and the terns of said Agreement and First Amendment, the terms of this Second Amendment shall control. --signature page to follow-- Fi IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to said Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA MARIA D. HUIZAR Clerk of the Council Recording Secretary APPROVED AS TO FORM: SONJA7R. C,ARVALHO Raul Godinez II City Manager HOUSING AUTHORITY OF THE CITY OF SANTA ANA e ROBERT M. ZUR SCHMIEDE Attorney Interim Executive Director— Housing Authority DEVELOPER MERCY USE LIVING CENTERS By: Title: a 80A-21 80A-22