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HomeMy WebLinkAbout FULL PACKET_2018-03-20MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA MARCH 1, 2018 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 4:17 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES (4:19 P.M.) VICENTE SARMIENTO JOSE SOLORIO (4:19 P.M.) JUAN VILLEGAS COUNCILMEMBERS Absent: SAL TINAJERO STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS - None CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code Section 54956.8: a. Address of Property: 1126 E. Washington Avenue, # 46, Santa Ana, CA 92701 (APN No. 398-092-14). Owner: City of Santa Ana, Housing Authority Negotiators: City Manager Raul Godinez II CITY COUNCIL MINUTES 1 MARCH 1, 2018 10A-1 Terms: Potential Lease Option b. Address of Property: 3308 W. Warner Avenue, Santa Ana, CA 92704 (APN No. 414-131-55) Owner: Lynde-Ordway Co. Inc. Negotiators: City Manager Raul Godinez II Terms: Potential Purchase. CLOSED SESSION REPORT — No reportable action. ADJOURNED — 5:25 P.M. Maria D. Huizar, Clerk of the Council CITY COUNCIL MINUTES 2 MARCH 1, 2018 10A-2 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA MARCH 6, 2018 CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:12 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO (5:30 P.M.) JUAN VILLEGAS COUNCILMEMBERS Absent: NONE STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS - None CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code Section 54956.8: Address of Property: Public alley between the 300 blocks of French and Spurgeon, Santa Ana, CA Negotiators: City Manager Raul Godinez II CITY COUNCIL MINUTES 1 MARCH 6, 2018 1OB-1 Negotiating with: S&A Management Terms: Potential terms of lease or license. 2. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiators: Ellen Smiley, Acting Personnel Services Executive Director; and Peter Brown of Liebert Cassidy Employee Organizations: • Santa Ana Police Officers Association (POA) • Service Employees' International Union (SEIU) Full -Time Employees • Service Employees' International Union (SEIU) Part -Time 3. CONFERENCE WITH LEGAL COUNSEL — POTENTIAL/ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9 of the Government Code: One Case CLOSED SESSION REPORT - The City Attorney will report on any action(s) to be taken at the Regular Meeting which will begin immediately following the Closed Session Meeting. ADJOURNED CLOSED SESSION AND CONVENED TO THE REGULAR OPEN SESSION AT 6:35 P.M. CITY COUNCIL MINUTES 2 MARCH 6, 2018 10 B-2 REGULAR OPEN MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 6:38 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO JUAN VILLEGAS PLEDGE OF ALLEGIANCE INVOCATION CEREMONIAL PRESENTATIONS COUNCILMEMBERS Absent: NONE STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council GABRIELA MUNIZ, MACARTHUR FUNDAMENTAL INTERMEDIATE SCHOOL JERRY HILL, POLICE CHAPLAIN CERTIFICATES OF RECOGNITION presented by MAYOR PRO TEM MARTINEZ recognizing National Women's History Month. Recipients: Valerie Amezcua, Reyna Artero, Erika Benavides, Maricela Castro, Adriana Galdamez, Paula Garcia -Arsenault, Dionicia Gabriel, Ana Gonzalez, Inez Gonzalez, Connie Hamilton, Francine Harris, Erica Heras, Ver6nica Juarez, Laura Kanter, Isabelle M. Lopez, Yanely R Matute, Adela Montanez, Laura Pantoja, Isuri S. Ramos, Dr. Linda Rose, Delilah Snell; Maria Quezada, Idalia N. Rios, Concepcion Rodriguez, Esther Trinidad CITY COUNCIL MINUTES 3 MARCH 6, 2018 10 B-3 • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Mujeres Migrantes en Progreso in recognition of International Women's Day and contributions to the community. • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER SOLORIO to Suavecito in recognition of the introduction of the women's line and contributions to the community. • PROCLAMATION presented by COUNCILMEMBER TINAJERO naming March 6th as Barbara Lawrence Hill Day. • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER VILLEGAS to Relampago Del Cielo in recognition of their contributions to the community. CLOSED SESSION REPORT — See Agenda Item 19A for reportable action. PUBLIC COMMENTS - NONE CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on the following Consent Calendar Items 10A through 25C with the following modifications: • Councilmember Sarmiento, pulled Agenda Item 25C for separate discussion. MOTION: Tinajero VOTE: AYES: NOES: ABSTAIN ABSENT: SECOND: Sarmiento Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) None (0) None (0) Benavides (1) ADMINISTRATIVE MATTERS MINUTES 10A. MINUTES FROM THE REGULAR MEETING OF FEBRUARY 20, 2018 {STRATEGIC PLAN NO. 5, 1} — Clerk of the Council Office CITY COUNCIL MINUTES 4 MARCH 6, 2015 10 B-4 MOTION: Approve Minutes. MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — City Attorney's Office MOTION: Approve as follow: CONFERENCE WITH LEGAL COUNSEL — POTENTIAL/ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9 of the Government Code: One Case; Unanimous consent to pursue negotiations with the County of Orange regarding homeless issues and to file a motion to intervene in the existing lawsuit if necessary. 19B. EXCUSED ABSENCES — None 19C. PUBLIC WORKS AGENCY STATUS OF PROJECTS - MONTHLY CAPITAL IMPROVEMENT PROGRAM (CIP) EXECUTIVE REPORT FOR FEBRUARY 2018 {STRATEGIC PLAN NO. 5, 1} — Public Works Agency The CIP Executive Summary Schedule is available on the City's website at http://santa- ana/pwa/documents/ExecutiveMonthlvCIPUpdateFebruarv2018. pdf/ MOTION: Receive and file. BUDGETARY MATTERS APPROPRIATION ADJUSTMENTS 20A. AWARD CONTRACT AND APPROVE AN APPROPRIATION ADJUSTMENT FOR WEST GROVE VALLEY NEIGHBORHOOD WATER MAIN IMPROVEMENTS (PROJECT NO. 15-6447) {STRATEGIC PLAN NO. 6, 1 C} - Public Works Agency MOTION: 1. Award a contract to Michels Pipeline Construction, the lowest responsible bidder, in accordance with the base bid and additive item 18 in the total amount of $2,388,076 for the term beginning COUNCIL MINUTES 5 MARCH 6, 2018 1 OB -5 upon execution of the contract and ending upon project completion, for the West Grove Valley Neighborhood Water Main Improvements project, and authorize the City Manager and Clerk of the Council to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney. 2. Approve an appropriation adjustment. (Requires rive affirmative votes) APPROPRIATION ADJUSTMENT NO. 2018-090 — For Fiscal Year 17/18 to recognize $1,404,500 from prior year fund balance in the Water Utility revenue account into the Water Utility Capital Projects expenditure account. 3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,104,500, which includes the contract base bid, administration, inspection and testing, and an authorized contingency of $358,212. 20B. AGREEMENTS AND APPROPRIATION ADJUSTMENT FOR VOICE COMMUNICATION SERVICES {STRATEGIC PLAN NO. 7, 5a, 5e} — Information Technology Department, Public Works Agency, and Community Development Agency MOTION. 1. Approve and authorize the City Manager and Clerk of the Council to execute the an agreement with Packet Fusion, Inc., for the implementation, support, and maintenance of a citywide phone system for a three-year period beginning March 6, 2018 through March 5, 2021 with an option for one two-year renewal for an amount not to exceed $1,119,500 which is comprised of the sum of $757,000 for one-time costs, a 15% contingency of $112,500, and five years of annual support totaling $250,000 over the life of the agreement including any extension periods, subject to non - substantive changes and approved by the City Manager and City Attorney (AGMT. No. 2018-053). 2. Approve and authorize the City Manager and Clerk of the Council to execute an agreement with TPX Communications, Inc., for PRI lines for a three-year period beginning March 6, 2018 through March 5, 2021 for an amount not to exceed $80,000 over the life of the agreement, subject to non -substantive changes and approved by the City Manager and City Attorney (AGMT. No. 2018-054). CITY COUNCIL MINUTES 6 MARCH 6, 2018 3. Approve an appropriation adjustment. (Requires rive affirmative votes) APPROPRIATION ADJUSTMENT NO. 2018-095 — Recognizing $152,000 from prior year fund balance in the Public Works Administration & Planning revenue account, and appropriating the same into the Public Works Administrative Services expenditure account AGREEMENTS 25A. AGREEMENT FOR A WATER FEASIBILITY STUDY TO CONSERVATION AND (NONGENERAL FUND) {ST Agency ENTERPRISE ALTERNATIVE ENERGY EXPAND OPPORTUNIIES FOR ENVIRONMENTAL SUSTAINABILITY RATEGIC PLAN NO. 5, 2} — Public Works MOTION: Authorize the City Manager and Clerk of the Council to execute an agreement with Newcomb Anderson McCormick, Inc., to conduct a water enterprise alternative energy feasibility study for the three-year period beginning March 6, 2018, and expiring March 5, 2021, with provisions for a two-year renewal option exercisable by the City Manager and City Attorney, in an amount not to exceed $75,000, including a $59,400 project fee and a contingency of $15,600, for the term of the agreement, subject to nonsubstantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-055). 25B. AGREEMENT FOR ADULT CROSSING GUARD PROGRAM TO ENSURE THE SAFE MOVEMENT OF ELEMENTARY SCHOOL CHILDREN AROUND SCHOOL ZONES {STRATEGIC PLAN NO. 1, 1} — Police Department MOTION: Authorize the City Manager and Clerk of the Council to execute a three-year agreement with All City Management Services Inc. (ACMS) for the period of March 1, 2018 through February 28, 2021, in an amount not to exceed $2,978,250, which includes a ten percent contingency amount of $270,750, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018- 056). 25C. APPROVE AN UPDATE TO THE HOMEBUYER DOWN PAYMENT ASSISTANCE LOAN PROGRAM AND LOAN AGREEMENT(S) WITH QUALIFIED AND APPROVED HOMEBUYERS (NON -GENERAL FUND) {STRATEGIC PLAN NO. 5, 3; 5; 4) - Community Development Agency COUNCIL MINUTES 10 B-7 MARCH 6, 2018 Community Redevelopment and Housing Commission approved recommended action on February 27, 2018 by a vote of 7-0 (Cann absent). Councilmember Sarmiento, opined that City has received a low number of applicants, revisions will make program more available and accessible to families who need assistance. MOTION. 1. Approve an update to the Homebuyer Down Payment Assistance Loan Program and allocate an initial $400,000 of Inclusionary Housing Funds program funding. 2. Authorize the City Manager and the Clerk of the Council to enter into loan agreement(s) with qualified and approved homebuyers, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2018-057). MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Benavides (1) **END OF CONSENT CALENDAR** BUSINESS CALENDAR RESOLUTIONS 55A. ADOPT A RESOLUTION AND AUTHORIZE GRANT APPLICATION SUBMISSION FOR WATER SMART DROUGHT RESPONSE PROGRAMS (NONGENERAL FUND) {STRATEGIC PLAN NO. 6, 1G) — Public Works Agency MOTION 1. Adopt a resolution. CITY COUNCIL MINUTES 8 MARCH 6, 2018 ' woo RESOLUTION NO. 2018-015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AN APPLICATION FOR GRANT FUNDING BY THE BUREAU OF RECLAMATION'S WATERSMART DROUGHT RESPONSE PROGRAM FOR THE AUTOMATED METER INFRASTRUCTURE PROJECT 2. Authorize the Executive Director of Public Works to submit a grant application for Department of the Interior, Bureau of Reclamation's WaterSMART Drought Response Program, for the Automated Meter Infrastructure Project, in the amount up to $750,000. MOTION: Martinez SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) 55B. ADOPT A RESOLUTION TO EXTEND CONDITIONAL USE PERMIT NO. 2015-01; AND VARIANCE NOS. 2015-01 AND 2015-02 FOR THE SOUTH COAST SPEEDWASH TO BE LOCATED AT 2402 SOUTH BRISTOL STREET {STRATEGIC PLAN NO. 3,2) - Planning and Building Agency MOTION: Adopt a resolution. RESOLUTION NO. 2018-016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA FOR THE EXTENSION OF CONDITIONAL USE PERMIT NO. 2015-01 AND VARIANCE NOS. 2015-01 AND 2015-02 FOR THE SOUTH COAST SPEEDWASH DEVELOPMENT FOR AN ADDITIONAL ONE YEAR FOR THE PROPERTY LOCATED AT 2402 SOUTH BRISTOL STREET MOTION: Martinez SECOND: Sarmiento VOTE: AYES: Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinajero, Villegas (7) NOES: None (0) ABSTAIN: None (0) CITY COUNCIL MINUTES 9 MARCH 6, 2018 10 B-9 ABSENT: None (0) 55C. ADOPT A RESOLUTION AMENDING THE CLASSIFICATION AND COMPENSATION PLAN FOR THE UNREPRESENTED EXECUTIVE MANAGEMENT CLASSIFICATION OF EXECUTIVE DIRECTOR OF PUBLIC WORKS {STRATEGIC PLAN NO. 7, 4A) - Personnel Services Agency and Public Works Agency MOTION: Adopt a resolution. RESOLUTION NO. 2018-017 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO ADJUST THE SALARY FOR THE UNREPRESENTED EXECUTIVE MANAGEMENT CLASSIFICATION OF EXECUTIVE DIRECTOR OF PUBLIC WORKS (EM). MOTION: Benavides SECOND: Solorio VOTE: AYES: Benavides, Pulido, Sarmiento, Solorio, Tinajero, Villegas (6) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez (1) REPORTS 65A. PRESENTATION AND APPROVAL OF ZOO MASTER PLAN {STRATEGIC PLAN NO. 2, 2E) — Parks, Recreation and Community Services Agency The following spoke on the matter: • Armando Arementa, expressed support for the Master Zoo Plan; Zoo is a gem in Orange County and tremendous improvements made in the last ten years. • Cathi Decker, thanked City Council for starting the Master Zoo Plan and for their support. • Michele Lerison, opined folks are appreciative to be included in the Master Strategic Plan process. • Laruen Bergh, opined there are two types of community visitors, one that recognizes and visits the Zoo for the past 65 years and the other that CITY COUNCIL MINUTES 10 MARCH 6, 2018 1OB-10 has not heard existed for the past 65 years; urged the City Council to approve the Master Strategic Plan. Bryan Solis, commented that visitors pleased with the Zoo; safe and fun place for all children and asked City Council to support Master Plan. Rip Ribble, opined City of Santa Ana is fortunate to have the Zoo and importance of Master Plan. Staff report presentation by Gerardo Mouet, Executive Director of Parks, Recreation and Community Services Agency. Council discussion ensued. Councilmember Sarmiento, opined need to identify and brand Zoo better for people coming off the 5 and 55 freeway, improvements will make facility warm and inviting, opportunity to have partners to adopt exhibits to augment support, and expressed support of the item. Councilmember Solorio, noted importance to enhance quality of care and space for monkeys. Councilmember Benavides, thanked staff and friends of the zoo for their hard work and expressed support for the zoo. Mayor Pro Tem Martinez, asked staff to clarify if third parking lot will remain or will zoo extend into area; noted problem with on -street parking and visitors getting to zoo safely. Mayor Pulido, asked staff to clarify if monkey requirements are being met. MOTION: Receive and file presentation and adopt the Zoo Master Plan, including the Facility Plan and Strategic Plan. MOTION: Sarmiento VOTE: AYES: NOES: ABSTAIN: ABSENT: SECOND: Tinajero Benavides, Martinez, Pulido, Sarmiento, Solodo, Tinajero, Villegas (7) None (0) None (0) None (0) 65B. REVIEW AND CONSIDER RECOMMENDATIONS OF THE AD HOC COMMITTEE REGARDING WARD BASED ELECTIONS, PROVIDE STAFF DIRECTION AND APPROVE RESOLUTIONS AND CITY COUNCIL MINUTES 11 MARCH 6, 2015 1OB-11 APPROPRIATION ADJUSTMENT ACCORDINGLY {STRATEGIC PLAN NO. 5, 1} — Clerk of the Council The following spoke on the matter: • Arnfulfo Montero, opined community in need of equal and fair elections and election process and expressed support for the Vietnamese community. Urged City Council to move toward the election as soon as possible. • Katelyn Ogawa, addressed the City Council to request special elections to move forward and to inform of the possibility of bringing forth a civil lawsuit under the California Voting Rights Act if necessary. • Paul Gonzales, requested the City Council to not take action on this item. Opined the need to launch a thorough and public study of the issue and should provide the people of Santa Ana an opportunity to better understand the issue. • Theresa Le, addressed the City Council to request a change in the election system. • Anh-Khoa Pham, expressed support for friends and family who believe in changing the election system. • Miguel Hernandez, opined the response of the community towards district elections has always been positive, ability to prevent costly lawsuit to the city, and moving towards district election would strengthen democracy in Santa Ana. • Susana Sandoval, opined need to support the voters to make a decision regarding board based elections, to not change current policy on term limits, and district based elections would provide an opportunity for citizens to run for office. • Laura Kanter, expressed support for district elections and need to not change current term limits. • Claudio Gallegos, on behalf of Congressman Lou Correa. Noted two other cities have paid in excess of three million dollars in attempting to fight similar lawsuits. Opined it is time to change the election and save money that could be used toward community programs, after school programs, and hiring of police officers. • Dave Hoen, expressed support for district elections. • Shakeel Syed, opined district elections are a no-brainer, need for City of Santa Ana to embrace it as well, and elections is an opportunityfor every citizen in the city to make this an inclusive democracy for all • My Nguyen, expressed support for district elections and the Vietnamese community. Opined current election system is outdated and marginalizes Vietnamese voters. CITY COUNCIL MINUTES 12 MARCH 6, 2015 1OB-12 • Jeff LeTourmeau, noted both the California State Democratic Party and the Orange County Democratic Party strongly supports a move toward district elections. • Joese Hernandez expressed support towards the Vietnamese communities right to have real representation. Opined the City of Santa Ana is the largest city to not have a district election process and need to let the voters decide. • Dr. Long Pham, opined district elections not only would save the City from a lawsuit, but would allow Councilmembers to work more closely with people in their district. • Phat Bui, Chairman of the Vietnamese American Federation of Southern California, opined Vietnamese community longing to have a fair representation, belief that voting by district is not just designed to help candidates, but to help residents to be well represented in their district, and district election would benefit not only the Vietnamese community but also the Hispanic residents. • Ken Nguyen, expressed support toward district elections. Councilmember Benavides, opined that in the past be believed that the City had the best of both worlds by having nomination by Ward and elected at large, but recently more and more cities have moved to District based elections to have true representation— merit in changing; vote should not be diluted with votes from throughout the City; vote should have more impact in their community. Asked City Attorney address the letters received in relation to matter. City Attorney Carvalho, noted that City received City expressing concern for vote dilution, but different than the one received today which is official demand/strict liability; option is to take action within 45 days or to take immediate action and reduce exposure to litigation; noted that no City throughout the State has been successful in defending similar demands. Councilmember Sarmiento, thanked all speakers; reflects diversity of community; supports commitment to represent all residents; time sensitivity to approve matter; Santa Ana is one of last remaining large cities that does not have ward (district) based elections. Councilmember Tinajero, noted that Ad Hoc Committee recommended actions for the voters of the City to decide on how to elect their representatives; ward based elections will have better access to their officials. CITY COUNCIL MINUTES 13 MARCH G, 2018 1OB-13 Councilmember Villegas, commented that there are 19 different ways to establish ward based elections; concerned that matter not properly vetted; currently represents the whole City, but changing to ward based elections will have narrow representation. Councilmember Benavides motion to approve item, seconded by Councilmember Sarmiento. Mayor Pro Tem Martinez, noted that she is not opposed to ward based elections; currently 408 cities elected at large; 122 cities with Charter that do not have to follow State regulations; 11 large cities and 7 of them are district based elections, but have various forms including run off process; proposed charter amendment not clear on method; opined that plurality vote will continue to win; requested clarification from City Attorney on reset clause on term limits. City Attorney Carvalho, read the term limit language of Charter Section 401; noted that current or proposed language do not provide for reset clause. Councilmember Tinajero, clarified that plurality will be by ward/district and not the whole City; asked Mayor Pro Tem that is proposed language included run-off provision would be supportive of item. Councilmember Solorio, spoke about politics of inclusion; noted that large sums of campaign funds needed to run a raise; intent is not to extend the term of any councilmembers; supports matter. Mayor Pulido, noted that if matter considered in November will only cost $30,000 and appropriation adjustment requires five votes; currently councilmembers represent the interest of all citizens of the City; supports deliberative discussion of options; asked if demographer made any conclusions. City Attorney Carvalho, noted that easy test to prove disenfranchised voter; elections code allows for city council to adopt letter of intent within 45 days of receiving letter of demand and include outline of steps to be considered. Also, if open discussion of demographer findings would require vote to waive privileged information. Mayor Pro Tem Martinez, proposed motion to include a councilmember and mayor to be elected at -large in addition to by ward councilmembers in addition to run-off election process; recommend independent commission to review and propose map redistricting and campaign reform; addressed loop -hole of campaign independent expenditures. CITY COUNCIL MINUTES 14 MARCH 6, 2018 1OB-14 CouncilmemberSarmiento, commented that if wait until November will have a generational impact since three seats will be termed out. Councilmember Benavides, motion to approve, seconded by Councilmember Sarmiento. for option two (in the event appropriate funding then liability fund be available for Special Election). Councilmember Tinajero, supported motion. Mayor, called for the question. Councilmember Solorio, clarified that funds from the current fiscal year's liability fund in an amount not to exceed $30,000 for use for election costs, demographer costs, and outreach just so we can be inclusive with related costs that are going to deal with the issue before us. Mayor Pulido, noted that motion approved four to three, but believes that five votes needed. FRIENDLY AMENDMENT TO MOTION: Approved recommendations of the Ad Hoc Committee on a Charter Amendment regarding Ward Based Elections to be placed on June 5, 2018 Statewide Primary Election and allocate funding accordingly. 1. Direct staff to move forward with Special Municipal Election on June 5, 2018 and approve actions as follow: a. Adopt a resolution giving Notice of a Special Election and request consolidation with the County of Orange with the Statewide Primary Election, as follow: RESOLUTION NO. 2018-015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA GIVING NOTICE OF A SPECIAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF SANTA ANA ON JUNE 5, 2018 FOR SUBMISSION TO THE VOTERS OF THE QUESTION OF WHETHER CITY CHARTER SECTION 400 SHALL BE AMENDED REQUIRING CITY COUNCILMEMBER ELECTION FROM HIS OR HER RESIDENCY WARD AND ONLY BY REGISTERED VOTERS OF THAT WARD, INSTEAD OF CITY COUNCILMEMBER ELECTION BY THE REGISTERED VOTERS OF THE ENTIRE CITY AND REQUESTING THE BOARD OF SUPERVISORS OF ORANGE COUNTY TO CONSOLIDATE THE CITY'S SPECIAL ELECTION WITH THE STATEWIDE PRIMARY ELECTION b. Adopt a resolution to approve title of Charter Amendment and proposed language for consideration by voters, as follow: CITY COUNCIL MINUTES 15 MARCH 6, 2018 1OB-15 RESOLUTION NO. 2018-016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SETTING FORTH THE LANGUAGE OF A BALLOT TITLE FOR A CITY CHARTER AMENDMENT REGARDING WHETHER CITY CHARTER SECTION 400 SHALL BE AMENDED REQUIRING CITY COUNCILMEMBER ELECTION FROM HIS OR HER RESIDENCY WARD AND ONLY BY REGISTERED VOTERS OF THAT WARD, INSTEAD OF CITY COUNCILMEMBER ELECTION BY REGISTERED VOTERS OF THE ENTIRE CITY TO BE INCLUDED ON THE BALLOT FOR THE 2018 SPECIAL ELECTION TO BE HELD ON JUNE 5, 2018 c. Adopt resolution authorize the filing of Arguments and Rebuttals, as follow: RESOLUTION NO. 2018-017 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING WRITTEN ARGUMENTS FOR PROPOSED AMENDMENT TO THE SANTA ANA CHARTER REGARDING WHETHER CITY CHARTER SECTION 400 SHALL BE AMENDED REQUIRING CITY COUNCILMEMBER ELECTION FROM HIS OR HER RESIDENCY WARD AND ONLY BY REGISTERED VOTERS OF THAT WARD, INSTEAD OF CITY COUNCILMEMBER ELECTION BY REGISTERED VOTERS OF THE ENTIRE CITY d. Direct City Attorney to prepare Impartial Analysis. e. Direct Clerk of the Council to publish legal notices as required by law. f. Direct staff to use liability funds in the amount of $202,148 for election costs and $30,000 for demographer for preparing ward re -boundary maps and outreach services. MOTION: Benavides SECOND: Sarmiento VOTE: AYES: NOES: ABSTAIN: ABSENT: Benavides, Sarmiento, Solorio, Tinajero (4) Martinez, Pulido, Villegas (3) None (0) None (0) CITY COUNCIL MINUTES 16 MARCH 6, 2018 1OB-16 JOINT SESSIONS OF THE CITY COUNCIL AND THE HOUSING AUTHORITY AGENCY *Councilmember Benavides abstained on Agenda Item 80A due to proximity of his residence to one of the properties. He left the dais for the duration of the deliberation. 80A. AMENDMENTS TO PROMISSORY NOTES WITH C&C DEVELOPMENT COMPANY AND ORANGE HOUSING DEVELOPMENT CORPORATION FOR ROSS & DURANT, WILSHIRE & MINNIE, TOWNSEND & RAITT, 1410 N. DURANT, LACY & RAITT, AND 326 S. GARNSEY AFFORDABLE HOUSING DEVELOPMENTS {STRATEGIC PLAN NO. 5, 3}—Community Development Agency Community Redevelopment and Housing Commission approved recommended action on January 24, 2018 by a vote of 7-0 (Frazier absent). Mayor Pro Tem Martinez, asked staff to clarify adjustment to proposed management fee; increase will not be going to the renters, rent will remain the same, and City of Santa Ana would not receive as much money as in the past. MOTION: Authorize the City Manager and the Clerk of the Council to execute Amendments to Promissory Notes (Loan Notes) with C&C Development Company and Orange Housing Development Corporation for the following affordable housing developments, to increase the property management fee to 8% of gross rents, subject to non - substantive changes approved by the City Manager and City Attorney: CITY COUNCIL MINUTES 17 MARCH 6, 2018 1OB-17 Current Proposed AGMT. Entity Project Management Management No. Address Fee Fee 1. ROSS AND 1411 N. 6.25% 8% 2018- DURANT, DURANT 058 L.P. 2. ROSS AND 1501 N. 6.25% 8% 2018- DURANT, ROSS 059 L.P. STREET 3. WILSHIRE & 1201, 1209, 6.50% 8% 2018- MINNIE, L.P. 1213, 1221, 060 1225, 1229, AND 1233 EAST WILSHIRE, AND 1401, 1403, 1409, 1413, 1421, CITY COUNCIL MINUTES 17 MARCH 6, 2018 1OB-17 MOTION: Martinez SECOND: Pulido VOTE: AYES: Martinez, Pulido, Solorio, Tinajero, Villegas (5) Project Current Proposed AGMT. ABSENT: Entity Address Management Management No. Fee Fee 1429, 1425, 1433,1437 AND 1439 SOUTH MINNIE STREET 4. TOWNSEND 701 SOUTH 6.50°/o 8% 2018- & RAITT, TOWNSEND 061 L.P. 5. TOWNSEND 709 S. 6.50% 80/. 2018- & RAITT, TOWNSEND 062 L.P. STREET 6. TOWNSEND 817 SOUTH 6.50% 8% 2018- & RAITT, TOWNSEND 063 L.P. 7. TOWNSEND 821 SOUTH 6.50% 8% 2018- & RAITT, TOWNSEND 064 L.P. 8. TOWNSEND 834 SOUTH 6.50% 8% 2018- & RAITT, RAITT 065 L.P. 9. DURANT — 1410-1412 6.50% 8% 2018- 1410, L.P. DURANT 066 STREET 0. LACY & 703 N. LACY 7% 80/6 2018- RAITT, L.P. STREET 067 1. LACY & 702 SOUTH 7% 8% 2018- RAITT, L.P. RAITT 068 12. GARNSEY, 326 SOUTH 7% 8% 2018- L.P. GARNSEY 069 STREET MOTION: Martinez SECOND: Pulido VOTE: AYES: Martinez, Pulido, Solorio, Tinajero, Villegas (5) NOES: None (0) ABSTAINED: Benavides (1) ABSENT: Sarmiento (1) CITY COUNCIL MINUTES 18 MARCH 6, 2015 1OB-18 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 PROVIDE STAFF DIRECTION ON THE CREATION OF A CITIZENS FINANCE ADVISORY COMMITTEE TO REVIEW FINANCIAL PLANS, FINANCIAL DOCUMENTS, BUDGETARY POLICIES, CALPERS ACTIVITY, LABOR CONTRACTS, MEDICAL COSTS, AND AUDITOR SELECTION FOR THE CITY - Mayor Pro Tem Martinez Mayor Pro Tem continued item to the subsequent meeting. RECESSED CITY COUNCIL MEETING AT 9:41 P.M. TO THE HOUSING AUTHORITY MEETING AND RECONVENED WITH SAME MEMBERS PRESENT AT 9:42 P.M. Mayor Pulido left the meeting at 9:42 p.m. and did not return. WORK STUDY SESSIONS WS -1. AFFORDABLE HOUSING FUNDS POLICIES AND PROCEDURES - Community Development Agency Presentation by Housing Manager, Judson Brown Affordable Housing Funds Policies & Procedures History and Timeline of Review / Direction from City Council to develop Policies and Procedures: / June 20th / Presented draft to the Community Redevelopment and Housing Commission: / September 27th (Work Study) / October 25th (Approved by a vote of 6:0) / Presented draft to the Economic Development, Infrastructure, Budget and Technology (EDIBT) Committee for Comments: / November 13th / EDIBT Committee requested more information from staff and stakeholder feedback / Stakeholder Workshop: / December 19th ► Presented revised draft to the EDIBT Committee for Comments: ► January 8th CITY COUNCIL MINUTES 19 MARCH 6, 2018 1OB-19 ► EDIBT Committee requested additional revisions which have been incorporated into this draft Policies & Procedures Outline / Purpose 1 To guide how affordable housing funds and land assets available are allocated, committed, loaned and monitored for multi -family affordable housing development in the City / Intent 1 To provide a transparent, open and fair process in the allocation of scarce affordable housing funds and land assets available to the City for affordable housing development Policies & Procedures Outline / Types of Affordable Housing Funding Sources Available / Proposal Submittal and Review Procedures / Pre -Loan Commitment Procedure / Loan Terms and Closing Procedures ► Project Monitoring and Reporting / Detailed Overview of Funding Sources Multiple Opportunities for Proposal Submission and Review 1. Open RFP Process Proposals may be submitted at anytime RFP is continuously open throughout the year • Provides for an opportunistic process so the City will not miss out on a site for development • Quarterly review of proposals • Minimum score of 75 points required to proceed forward 2. City Council Initiated Proposal Review C A City Councilmember may request review of a proposal Developer pays for analysis by real estate advisor (e.g. KMA) City Council then presented with both City staffs and the real estate advisor's analysis and provides direction, without staff recommendation 5 votes to move forward 3. By -Right Funding for Housing • Developer may submit an application for by -right funding for housing • Project must be located in a zone designated as "by -right' for housing development Only units serving households at 30% Area Median Income or below may qualify The maximum per unit subsidy shall not exceed the maximum per unit subsidy limits set by HUD for the HOME Program CITY COUNCIL MINUTES 20 MARCH 6, 2015 1 OB -20 Only applies to local funds (e.g. Inclusionary Housing Funds) because all Federal Funds must go through a federal procurement process. • RFP Competitive Selection Criteria Policies and Procedures include a sample of the Criteria / Competitive Selection Criteria is to be reviewed at least once a year to ensure it best meets the goals and needs of the City / Based on needs identified in the Housing Element and our Regional Housing Needs Assessment Councilmember Benavides, noted lack of clarity and challenges in the past, and thanked staff for brining item forward. Directed staff to setup a meeting to review item. Councilmember Sarmiento, opined report addressed and incorporated City Council concerns, need for affordable and multi -family housing, and need to reflect lower AMI in the policy. Mayor Pro Tem Martinez, opined this is an opportunity to ensure City can provide stability and consistency with developers. *Councilmember Sarmiento abstained on WS -2 due to a potential conflict of interest and left the meeting. WS -2. COMMERCIAL CANNABIS NON -RETAIL OTHER USES - Planning and Building Agency Continue matter to the next regualrly scheduled City Council meeting. Mayor Pro Tem Martinez motion, seconded by Councilmember Tinajeo to elect Councilmember Benavides as Acting Chair. Mayor Pro Tem Martinez left the meeting at 9:52 p.m. and did not return. Councilmember Benavides assumed the Chair. COMMENTS PUBLIC COMMENTS CITY COUNCIL MINUTES 21 MARCH 6, 2018 1 OB -21 • Branden Wells, opined Apprentice Builds, a non-profit organization aims to help at risk youth and students to learn hands on skills that are not being taught well or sufficiently by building hot rods. Asked support from the City Council and the City of Santa Ana. • Curt Dyer, expressed opposition to 2525 Main Street development project and urged City Council to say no to the development project. • Dale Helvig, opined housing plan must be followed. expressed opposition to 2525 Main Street development project. • Patricia Coleman, expressed opposition to 2525 Main Street development project. • Sabrina Wilson, expressed opposition to 2525 Main Street development project. Opined lack of parking would spill traffic onto the local streets. • Jeff LeTourmeau, presented City Council with resolution on behalf of the Orange County Democratic Party regarding the demise of the OC Needle Exchange. Opined needle exchange programs have been an effective and low cost public health method for reducing infectious disease transmission as well as an effective means of used needle retrieval. 90A. CITY MANAGER'S COMMENTS City Manager Godinez, noted Emergency Response Team CERT, Santa Ana Police Department, Orange County Fire Authority, and the American Red Cross will be conducting a variety of community trainings during the month of March and informed City won the Berkeley Springs International Water Tasting competition. 90B. CITY COUNCILMEMBER COMMENTS Councilmember Solorio, • Commented that City working with School District on internship opportunity over the summer; and • Directed staff to reach out to Garden Grove, Tustin, and Orange Unified School District to promote opportunity, and to report on the agenda Councilmembers who conduct city business outside of the City. Councilmember Benavides, • Noted City Council previously took action to incentivize local businesses to win City projects; and • Directed staff to review and implement program to encourage business to bid and win City Projects, and review strategy to address potholes and street maintenance. Councilmember Tinajero, CITY COUNCIL MINUTES 22 MARCH 6, 2018 1 OB -22 • Thanked staff for their hard work; and • Noted upcoming March on Gun Violence at Centennial Park and Santa Ana School District participation in the district wide speech and debate middle school contest attended by over 400 students. ADJOURNED - 10:19 P.M. - The next meeting of the City Council is scheduled for Tuesday, March 20, 2018 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. Adjourned Meeting in Memory of Robert Banuelos Maria D. Huizar, Clerk of the Council FUTURE AGENDA ITEMS • Planning Commission Appeal of The Madison, 200 N. Cabrillo Park, Dr. • Fiscal Year 2018-19 Budget • Bristol Street Corridor Plan Update • Policy on Use of General Reserve and Enterprise Funds • Policy on Sale of Remnant Parcels • Ordinance on Non -Retail Cannabis • Amendment to Metro East Mixed -Use Overlay District • Jail Reuse Study • Work Study Sessions: o Mobile Vending Ordinance Implementation o Work Cooperatives CITY COUNCIL MINUTES 23 I MARCH 6, 2018 1 OB -23 1 OB -24 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA MARCH 9, 2018 Assistant Clerk of the Council, Norma Mitre -Ramirez announced that the Special Meeting scheduled for Friday, March 9, 2018 at 12:45 p.m. was canceled due to lack of quorum. The next meeting is scheduled for Tuesday, March 20, 2018 at 5 p.m. for a Closed Session following by the Regular Open Session at 5:45 p.m. Maria D. Huizar, Clerk of the Council CITY COUNCIL MINUTES 10C-1 MARCH 9, 2018 10C-2 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA MARCH 12, 2018 CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA SANTA ANA, CA 1:41 P.M. ATTENDANCE COUNCILMEMBERS Present: P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO COUNCILMEMBERS Absent: MIGUEL A. PULIDO, Mayor MICHELE MARTINEZ, Mayor Pro Tem JUAN VILLEGAS STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council Quorum was established thru presence of Councilmembers Benavides, Sarmiento, Solorio and Tinajero. MOTION: Elect Councilmember Tinajero as Chair (pursuant to SAMC 2- 101 due to unavailability of Mayor and Mayor Pro Tem). MOTION: Benavides SECOND: Sarmiento VOTE: AYES: Benavides, Sarmiento, Solorio, and Tinajero (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Martinez, Pulido, Villegas (3) Councilmember Tinajero assumed the Chair and presided over the meeting. SPECIAL CITY COUNCIL MINUTES 10 D- 1 MARCH 12, 2018 PUBLIC COMMENTS • Mark Rosen, on behalf of citizens of Santa Ana, opposed to actions as approved; noted that correspondence provided last week and this week on the matter – covered points in letters as submitted. • Peter Katz, echoed comments by Mr. Rosen, opposed to use of liability account for funding of election; opined that Mayor acted legally by not signing resolutions; supports placing Measure in November of 2018. • Irma Macias, opposed to having district elections; resident's interest are paramount not political benefit. • Joese Hernandez, on behalf of OCCORD, representing interest of Vietnamese community and other community members, expressed support for district elections; opined that Mayor obstructing law and not following charter requirement to sign resolutions. • Dave Hoen, opposed to Mayor's ability to block approval by majority of the City Council; supports placing matter on the ballot in June of 2018. COUNCIL RECESSED to Room 147 at 1:56 p.m. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL — THREAT OR ANTICIPATED/POTENTIAL LITIGATION AND POTENTIAL INITIATION OF LITIGATION pursuant to Government Code Section 54956.9(b): Two cases CLOSED SESSION REPORT - The City Attorney will report on any action(s) to be taken at the Regular Meeting which will begin immediately following the Closed Session Meeting. ADJOURNED CLOSED SESSION AND CONVENED TO THE REGULAR OPEN SESSION AT 2:48 P.M. OPEN SESSION ACTING CHAIR TINAJERO CALLED OPEN SESSION TO ORDER WITH SAME MEMBERS PRESENT. REPORTS 65A. CONSIDER OPTIONS TO CURE THE REJECTION OF RESOLUTIONS BY THE ORANGE COUNTY REGISTRAR OF VOTERS PERTAINING TO THE JUNE 5, 2018 SPECIAL ELECTION: REQUESTING CONSOLIDATION WITH THE SPECIAL CITY COUNCIL MINUTES 1 OD -1 MARCH 12, 2018 COUNTY OF ORANGE WITH THE STATEWIDE PRIMARY ELECTION; APPROVING TITLE OF CHARTER AMENDMENT AND PROPOSED LANGUAGE FOR CONSIDERATION BY VOTERS; AND AUTHORIZE THE FILING OF ARGUMENTS AND REBUTTALS — Clerk of the Council The following spoke on the matter: • Mark Rosen, again expressed strong opposition to action. • Peter Katz, concerned that ward reboundary will happen now now and again after 2020 Census; process inconsistent with the sunshine ordinance. • Irma Macias, reminded elected officials that they need to serve the interest of the community and not political gain. • Joese Hernandez, concerned that mayor has single handedly obstructed the decision of the council. • Carl Benninger, not opposed to District Elections, but would like to review demographic information before deciding on whether to place on the ballot; threat of litigation can wait until November when the cost is reduced; concerned with allegations of hidden agendas. • Ken Nguyen, thanked the council members for supporting the Vietnamese community and district election effort; opined that Vietnamese have been disenfranchised; does not support extension of term limit and demand that the Mayor sign the resolutions to place matters on the June ballot. City Attorney Carvalho, commented on importance of transparency laws; allegations of Brown Act conversations were carried out to identify the subject to which agenda was to be noticed, nonetheless the meeting not held; meeting today called by individual members of the city council; addressed email from Mr. Rosen regarding illegal use of liability fund account - municipal code identified is 1976 provision that is not included in budget City Manager Godinez, noted that the liability account has been used to pay for anything that has been anticipated as liability and capital projects to reduce exposure to liability to the City; the Demand letter provided credible threat of liability and staff determined that funds could be used to cover the costs; if funds were not available then five affirmative votes would be needed to transfer funds. Executive Director of Finance and Management Services, Francisco Gutierrez, noted that staff report recommend use of general fund -fund balance for payment of election costs; but when Demand Letter filed then liability fund the option of liability fund could be used that is consistent with past practice; sufficient funds are available thus appropriation was not needed. City Attorney Carvalho, further commented on allegations of City not complying with California Voter Rights Act; City Council has been discussing ward district elections since December of 2016; City received correspondence in June of 2017 expressing concerns at which time the City hired a demographer; most cities have not fought demand letters; proposed measure asks voters if representatives to be elected by ward(district); ward re -boundary process is separate. SPECIAL CITY COUNCIL MINUTES 10 D-� MARCH 12, 2018 Councilmember Solorio, served on California Legislative and worked on California Voting Rights Act; have watched other cities flight back, but no city has been successful in fighting CVRA Demand; through demographic data opined that Asian populations has been disenfranchised; need to remedy situation; supports action of the City Council. Councilmember Sarmiento, thanked staff and speakers for efforts on this matter; public policy to be decided by the voters; current method of electing officials dilutes vote; concerned with mayor veto power — courts to decide and need to cure. Councilmember Benavides, noted that there has been interest from members of the community on the matter including a presentation to Comlink on how to place Measures on the ballot; sense of urgency is the fact that we have three open seats in November; Acting Chair Tinajero, noted that council majority approved matter with a 4-3 vote; Mayor did not sign the resolutions, concerned with blocking democratic process. CLOSED SESSION REPORTABLE ACTION — City Attorney Carvalho, noted that Charter stipulates that Mayor shall sign all resolutions and ordinances with no exceptions provided; no veto power in the Charter; in the past the Mayor Pro Tem has signed documents when the Mayor not available, however (in 2016) the Torres vs Montebello case now cites that only legal remedy to obtain the Mayor's signature is to seek a writ of mandate; Mayor or member of the public could have sought a Declaratory Relief if believe to be illegal — courts do not look favorably upon city clerks, city attorneys, city managers or mayors who take the law into their hands and impede process. Reported that the City Council by unanimous consent approved to seek relief from the court and obtain an order to compel Mayor to execute the resolutions and also seek relief from County Registrar of Voters to accept documents; outside counsel will be handling matter. Councilmember Solorio, asked if open session action needed. Clerk of the Council Huizar, indicated that Open Session item agendized in the event that open session deliration required, but the City Council discussed and provided staff direction and as reported out of Closed Session. ADJOURNED- 3:25 P.M. The next meeting of the City Council is scheduled for Tuesday, March 20, 2018 at 5:00 p.m. for the Closed Session Meeting immediately followed by the Regular Open Business Meeting at 5:45 p.m. in the Council Chamber, 22 Civic Center Plaza, Santa Ana, California. Maria D. Huizar, Clerk of the Council SPECIAL CITY COUNCIL MINUTES 10 D-4 MARCH 12, 2018 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: ORDINANCE SECOND READING: ADOPT AN ORDINANCE APPROVING MITIGATED NEGATIVE DECLARATION ENVIRONMENTAL REVIEW NO. 2017-96, AND APPROVING AMENDMENT APPLICATION NO. 2017-02 REZONING THE PROPERTY LOCATED AT 2056 AND 2058 NORTH BUSH STREET FROM PROFESSIONAL (P) TO COMMUNITY COMMERCIAL -MUSEUM DISTRICT (C1 - MD) FOR A HAMPTON INN HOTEL (STRATEGIC PLAN NO. 5,1) Aw VVV ClMANAGER RECOMMENDED ACTION Place ordinance on second reading and adopt. CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2nd Reeding ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On February 20, 2018, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 6-0 (Tinajero absent): ORDINANCE NO. NS -2939 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING MITIGATED NEGATIVE DECLARATION ENVIRONMENTAL REVIEW NO. 2017-96, AND APPROVING AMENDMENT APPLICATION NO. 2017-02 REZONING THE PROPERTY LOCATED AT 2056 AND 2058 NORTH BUSH STREET FROM PROFESSIONAL (P) TO COMMUNITY COMMERCIAL -MUSEUM DISTRICT (C1 -MD) In summary, the ordinance will change the zoning district of the properties located at 2056 and 2058 North Bush Street, an approximately 0.5 -acre area, from Professional (P) to Community Commercial -Museum District (C1 -MD). 11 A-1 Ordinance — Second Reading: Zoning Ordinance Mitigated Negative Declaration Environmental Review No. 2017-96, and Amendment Application No. 2017-02 March 20, 2018 Page 2 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. t�. Maria D. Huizar, f Clerk of the Council EXHIBIT: Ordinance No. NS -2939 11 A-2 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING MITIGATED NEGATIVE DECLARATION ENVIRONMENTAL REVIEW NO. 2017-96, AND APPROVING AMENDMENT APPLICATION NO. 2017- 02 REZONING THE PROPERTY LOCATED AT 2056 AND 2058 NORTH BUSH STREET FROM PROFESSIONAL (P) TO COMMUNITY COMMERCIAL -MUSEUM DISTRICT (C1 - MD) 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. Net Development Company, hereinafter referred as "Applicant," has filed Amendment Application No. 2017-02 with the City of Santa Ana to change the zoning designation of approximately 0.5 -acre properties located at 2056 and 2058 North Bush Street from Professional (P) to Community Commercial -Museum District (C1 -MD). B. The zoning designation of Community Commercial -Museum District (C1 - MD) is consistent with the General Plan land use designation of District Center (DC). District Centers are designed to serve as anchors to the City's commercial corridors and to accommodate major development activity. C. The new zoning designation (C1 -MD) for the entire development site at 2056 and 2058 North Main Street is consistent with the proposed development project and the properties currently zoned C1 -MD in the immediate vicinity of the project site. D. On December 11, 2017, the Planning Commission held a duly noticed public hearing and voted to continue the item to the January 22, 2018 Planning Commission meeting and asked for more information on the impacts of displaced parking, the southbound Main Street left tum movement into the property, and review of the security measures. E. On January 22, 2018, the Planning Commission discussed the project and made a motion which resulted in a 3:3 vote. In the case of an impasse, pursuant to the Planning Commission Bylaws, the Applicant was offered the option of either continuing the item to a later date for further consideration by the Commission or denial without prejudice to allow the EXHIBIT 1 Ordinance No. NS-XXXX Page 7 of 4 11 A-3 Applicant to appeal the decision to the City Council. The Applicant requested that the item be denied by the Planning Commission to allow them to move forward to the City Council for a final decision. F. The City Council, prior to taking action on this ordinance, held a duly noticed public hearing on February 20, 2018. G. The City Council has reviewed applicable general plan policies and has determined that this proposed rezoning is consistent with the purpose of the General Plan. H. The City Council hereby adopts as findings all facts presented in the Request for Council Action dated February 20, 2018 accompanying this matter. For these reasons, Amendment Application No. 2017-02 is hereby found and determined to be consistent with the intent and purpose of Chapter 41 of the Santa Ana Municipal Code, thus changing the zoning district is found to be consistent with the General Plan of the City of Santa Ana and otherwise justified by the public necessity, convenience, and general welfare. Section 2. The City Council has reviewed and considered the information contained in the initial study and the mitigated negative declaration (MND)/Environmental Review No. 2017-96, prepared with respect to this project. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, determined that, as required pursuant to the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a MND adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that with the implementation of the Mitigation Monitoring and Reporting Program there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment. The City Council hereby certifies and approves the MND and directs that the Notice of Determination be prepared and filed with the County Clerk of the County of Orange in the manner required by law. Pursuant to Title XIV, California Code of Regulations (CCR) § 735.5(c)(1), the City Council has determined that, after considering the record as a whole, there is no evidence that the proposed Project will have the potential for any significant adverse effect on wildlife resources or the ecological habitat upon which wildlife resources depend. The proposed Project exists in an urban environment characterized by paved concrete, roadways, surrounding buildings and human activity. However, pursuant to Fish and Game Code § 711.2 and Title XIV, CCR § 735.5, the payment of Fish and Game Department filing fees in conjunction with this project is at the discretion of the State of California Department of Fish and Wildlife. Ordinance No. NS-XXXX Page 2 of 4 11 A-4 Section 3. The real property located at 2056 and 2058 North Bush Street in Santa Ana is hereby reclassified from Professional (P) to Community Commercial - Museum District (C1 -MD). Amended Sectional District Map number 6-5-9, showing the above described changes in use district designation, is hereby approved and attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. 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 the 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 5. The Applicant agrees to indemnify, hold harmless, and defend the City of Santa Ana, its officials, officers, agents, and employees, from any and all liability, claims, actions or proceedings that may be brought arising out of its approval of this project, and any approvals associated with the project, including, without limitation, any environmental review or approval, except to the extent caused by the sole negligence of the City of Santa Ana. ADOPTED this day of , 2018. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 11 A-5 Ordinance No. NS-XXXX 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- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2018 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 11 A-6 Ordinance No. NS-XXXX Page 4 of 4 31-4-9 qB Vcf AV C, RI, R4 wsRl C5 Rl RI SA D. Rt RI R RI R2 I's Z lull I RI 9i RI RZ R AM"AW RI MEN, 'Pon !�A RM Mali , 9 Rl RIM eml ,,, "filloolmism IM - 4WD Rl I I son TNn 0 I.D R Lig cli Ott cl 17TH ST a�i mI., C, ties- SP3;'W3j 7-S-9 J�yo 7-5-9 nNING DISTRICTS Al GENERtkLAGRCULTURAL csm SOUTHIViAIN STREEI`COVAf IAL DST. R2 TAO-FAN[ILYRESIDENCE -8 PARKNG MODMATION cl COWUNIYCOJkWERCRL GC GOVERNMENTCEN-rER M MULTPLE-FAMLY RES084CE -OZ OVERLAY ZONE CMD C2 COWAUNRY COMAERCIAL - MUSELIM DST. GENERAL CONVV[ERML Ml w LIGHTINDUSTRIAL HEAW �STRIAL R4 RE SLJSURBANAPARTMENi RESUENTIXLESTATE -PRD PLANNED RESIDENWL DEVELOPMENT U PLANNEDSHOPPINGCENTER 0 OPENSPACE ED SPECFr DEVELOPMENT -HD2 HEIGWDISTRICTU C5 ARTERIALrOMMERCIAL p PROFESSIONAL sp spmFr PLAN CR COMN'ERCLALRESIDENTIAL Rt SNGL&FAMOLYRESDBIGE SECTIONAL DISTRICT MAP: 6-5-9 1 fl CITY OF SANTA ANA. CALIFORNIA j Exhibit: A 11 A-7 11 A-8 CITY OF SANTA ARIA COUNCIL COMMITTEE MEETING AGENDA ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY COMMITTEE MONDAY, MARCH 12, 2018 5:00 P.M. CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Michele Martinez, Chairperson Vicente Sarmiento Recording Secretary: Teresa Ramirez PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee. AGENDA ITEMS 1. Approval of Minutes from January 8, 2017 Regular Meeting {Strategic Plan No. 5, 1} 2. Review of Fiscal Year 2016-17 Single Audit Report {Strategic Plan No. 4, 1} (Francisco Gutierrez, FMSA) 3. Verbal discussion: One Stop Shop Tour of City of Riverside and Next Steps {Strategic Plan 3,3 and 7,5} (Candida Neal, PBA) 4. Verbal discussion: Infrastructure Housing Policy (Development Impact Fee) {Strategic Plan 6, 1 E} (William Galvez, PWA & Candida Neal, PBA) 5. Earthquake Preparedness and Seismic Retrofit City Hall {Strategic Plan 6, 1a, c, and f; and 6, 2a and b} (William Galvez, PWA) 6. Update on the Recycled Water Cost -of -Service Study and the new Recycled Water rates {Strategic Plan No. 4,1} (Nabil Saba, PWA) (5 min) 7. Update on the Water Rate "Pass-through" increase scheduled for July 2018 {Strategic Plan No. 4,1} (Nabil Saba, PWA) (5 min) 8. Presentation of Draft Real Property Disposition Policy {Strategic Plan No. 3, 5} (Rob Zur Schmiede, CDA) 9. Update on the Pilot Parking Study {Strategic Plan No. 5, 4} (William Galvez, PWA) Santa Ana City Council Miguel A. Pulido, Michele Mamnez, Vicente Sarmiento, Jose Solana, P. David Benavides, Juan Villages, Sal Thajero, Mayor Mayor Pro Tem, Ward 2 Ward 1 Ward 3 Ward 4 Ward 5 Ward 6 MPuI'tloo(1sanW-aneao MMatllnezfolsen eene ora VSermlenlordsana an JSolotlonsanlaana.om gBepea'tles©sante-ane ora JVlllaoas sant-anaoro STneerofahsentaanaoo City Hall, 20 Civic Center Plaza e P.O. Box 1968 . Santa Ana, California 92702 Mayor & Council Telephone: 714.647-6900 a Agenda Item Inquiries: 714.647.6520 e Website: www.santa-ana.orq 13A-1 STAFF COMMENTS COMMITTEE MEMBER COMMENTS ADJOURNMENT — The next regular meeting is scheduled for Monday, May 14th at 5p.m. ®If you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title Il, 28 CFR 35.102] The complete Strategic Plan document is available at http://www.santa-ana.org/strategic-planning/ ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET 2 March 12, 2018 AND TECHNOLOGY AGENDA 13A-2 CITY OF SANTA ANA CITY COUNCIL COMMITTEE ON ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY CALL TO ORDER: ATTENDANCE: STAFF PRESENT: REGULAR MEETING MINUTES January 8, 2018 City Hall 20 Civic Center Plaza, Room 1600 Santa Ana, CA 5:07 p.m. Council Committee members: Michele Martinez, Chairperson Vicente Sarmiento None Raul Godinez II, CMO Rob Zur Schmiede, CDA Francisco Gutierrez, FMSA Sergio Vidal, FMSA Waldo Barela, FMSA Alvaro Castellon, FMSA Melanie Torres, ITD Robert Cortez, CMO Judson Brown, CDA Marc Morley, CDA Fred Mousavipour, PWA Jack Ciulla, ITD Sarah Ro, FMSA GUESTS PRESENT: Peter Katz, Com -Link; Charla Juarez; Cesar Covarrubias, Kennedy Commission; Nitin P. Patel, CPA, White Nelson Diehl Evans LLP; Joe Dieguez, Kosmont Companies PUBLIC COMMENTS • Peter Katz, Com -Link, spoke on marijuana shops and idea of public city banks being created with cash deposits to possibly assist residents with financial products and low interest rates. Cited North Dakota and Colorado as examples. AGENDA DISCUSSION ITEMS 1. Approval of Minutes from Regular Economic Development, Infrastructure, Budget and Technology Committee Meeting of November 13, 2017. MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Martinez, Sarmiento (2) NOES: None (0) ABSENT: None (0) January 8, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-3 (Item 3 taken out of order.) 3. Affordable Housing Funds Policies and Procedures (Strategic Plan No. 4, 5) - (CDA) Rob Zur Schmiede, Interim Executive Director, stated staff will be answering questions from previous committee meeting as requested. Judson Brown, Housing Division Manager, provided presentation with outline of policies and procedures that are very thorough and cover all funding sources. Discussed timeline of review of where we've come from and where we're hoping to go. Committee questions answered and additional information provided. In addition to presentation, the Affordable Housing Funds Policies and Procedures and Memorandum on Summary of Recent Housing Legislation Approved by the State of California were provided as reference. Discussion on Regional Housing Needs Allocation (RHNA) and basis for Low and Very Low area median incomes: Councilmember Sarmiento commented that due to demographics, policy decision change may be needed with less units and higher subsidy. Mr. Zur Schmiede would look into policy and potential changes to thresholds. Chairperson Martinez also stated we need to articulate the numbers to obtain our goals and strive for them, letting developers understand policy and expectations. Investing in homeownership: Chairperson Martinez would like to see homeownership obtainable for millennials and others in the City. Mr. Zur Schmiede will look into approaches that may be available to City to help in purchase of home. Additionally, Chairperson Martinez would like to have a streamlined process to help developers with a possible by -right funding for housing based on City goals and objectives versus point system. City Manager Godinez stated we could give added points. Criteria could help address some of the priorities that would help incentivize and achieve goals of council. Chairperson Martinez would like council committee members to review revised policies and procedures before it goes to council. 2. Enhanced Infrastructure Financing Districts (Strategic Plan No. 3, 5) - (Kosmont) Joe Dieguez, from Kosmont Companies, a Real Estate Economic Development Public Finance advisory firm, has worked with City on a limited basis through engagement with SLAG, as SCAG's subject matter expertise as related to EIFDs and other tools. Mr. Dieguez provided presentation on Housing and Sustainability Districts: City of La Verne TOD EIFD Case Study. Kosmot worked with SCAG to set-up a screening tool to evaluate if projects make sense and helped take the lead on pilot projects to get things going. Example was a joint effort with Santa Ana and Garden Grove regarding golf course where a preliminary analysis was presented to the cities. Kosmont can provide a logistical and collaborative meeting to help take projects to the next steps with direction from City to focus on priorities. Chairperson Martinez commented that EIFDs or CRIA (Community Revitalization and Investment Authorities) could possibly help with streetcar or affordable housing projects in Santa Ana. Councilman Sarmiento inquired if this would be of benefit for Civic Center area, i.e. homeless encampment. Mr. Dieguez commented that Civic Center improvement is a good January 8, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-4 example of where various jurisdictions could benefit. Other areas mentioned by committee members: South Main Street and First Street, could benefit. 4. Update on Rent Stabilization Measures Discussion {Strategic Plan No. 5} - (CDA) Judson Brown, Housing Division Manager, provided proposed outline for Rent Stabilization Measures Work Study Session as requested by council. Session would be in four parts that includes Academic Perspective and Administrative Perspective with expert speakers. Councilmember Sarmiento commented on better enforcement where tenants and renters are treated fairly and equitably. Need thorough discussion on all alternatives that might fit our community. (Item 6 taken out of order.) 6. Comprehensive Annual Financial Report—Audit Update {Strategic Plan No. 4, 1c} (FMSA) Francisco Gutierrez, Executive Director, introduced Nitin Patel, CPA, Partner with White Nelson Diehl Evans LLP (City auditors). Mr. Patel provided a presentation with an overview of auditors' services, responsibilities, opinion & reports and audit results. A Comprehensive Annual Financial Report (CAFR) were distributed to each committee member. Chairperson Martinez commented she would review report over the next few days. Mr. Patel offered to answer any questions or revisit. 5. Unfunded Liability / PARS Update (Strategic Plan No. 4, 11 (FMSA) Sergio Vidal, Assistant Director of Finance, provided an overview of financial report (CAFR) for the Fiscal Year Ended June 30, 2017, Francisco Gutierrez, commented that pension liabilities now have to be reported on the balance sheet with Internal Service Funds. Also one of the bigger issues is workers' compensation for Fire staff. When outsourced, claims were kept in- house and there is no revenue since fire department is no longer here and employees are no longer paying into it. 7. Review the Debt Management Policy (Strategic Plan No. 4, 1} (FMSA) Francisco Gutierrez, Executive Director, provided presentation and overview of SB1029 requirements and the development of Debt Policy for the City. Policy objectives are in alignment with the City's Strategic Plan and CIP. Finance looking for feedback in order to take to City Council in February for formal adoption. Chairperson Martinez stated she is unable to make comment on debt policy as information was just provided today; but will review and provide comment. Would like to know about any EMT feedback as well. Regarding the CAFR, information in arears and is not prospective. In response to Councilman Sarmiento, Mr. Gutierrez stated that staff does monitor, study and compare with other cities in regards to their unfunded liabilities and exposure. Santa Ana is in the middle; part of the group dealing with liabilities. City Manager Godinez added that due to our staffing levels, Santa Ana is a much leaner, hence our liabilities are midrange. January 8, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-5 8. Update on the Purchase of Real Property located at 651-657 East Washington Avenue for future Water Well and other Water System Improvements (Strategic Plan 6.1, c) (PWA) Nabil Saba, Water Resources Manager, provided presentation on Site for Future Water Well. Vacant land is ideal site to replace aging water wells; most built in the 60's. Location near existing high capacity infrastructure; like waterlines, storm drain, and power lines. Ideal size and a willing seller. 9. Brief Update: a. Ordinance for Small Businesses/Worker Cooperatives (CDA) Rob Zur Schmiede, Interim Executive Director: working with the City attorney's office on draft for small business ordinance which incorporates encouragement of worker cooperatives. Plan to present at next EDIBT meeting in March. b. Downtown Skate Park Partnership (CDA) Marc Morley, Economic Development Specialist: City Manager and staff met internally to discuss construction of a privately funded skate part in the alley behind 5'h and French parking garage. Will be meeting with the Case family to discuss feasibility of this. c, Fiber Optics Network Plan (ITD) Jack Ciulla, Chief Technology Innovations Officer: PWA issued an RFP last year. Working with PWA and ITD together to select a vendor. Met last week to refine the scope of project as it does involve street lights and small cell sites with fiber component. Public Works is negotiating with vendor all scope elements. Hope to find funding and bring to Council in February. Chairperson Martinez recently at a California League of Cities Latino caucus retreat. One of the sponsors who deals with purchase of lights and is looking to do pilot projects ready -to -go for financing. Amusement park folks have met with various councilmembers regarding fiber, looking for partnership. Fred Mousavipour, PWA Executive Director, stated that amusement park gave a presentation on fiber optic projects last year. Advised them that once City master plan is established, it can be shared and see how all can participate as a private/public partnership. City Manager Godinez, suggested a response letter should be drafted and sent to consultant letting them know where we're at. ITEMS MOVED TO NEXT COMMITTEE MEETING None PUBLIC COMMENTS: None January 8, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-6 STAFF MEMBER COMMENTS: Raul Godinez II, City Manager: Do not stop lobbying for grants. COMMITTEE MEMBER COMMENTS: None NEXT MEETING: Infrastructure — Housing policy Earthquake Preparedness and Seismic Retrofit City Hall Adjournment — 7:17 p.m. Teresa January 8, 2018 1 Economic Development, Infrastructure, Budget & Technology Minutes 13A-7 13A-8 CITY OF SANTA ANA COUNCIL COMMITTEE MEETING /e[91=1II17_1 PUBLIC SAFETY, CODE ENFORCEMENT AND NEIGHBORHOOD EMPOWERMENT March 13, 2018 5:30 P.M. CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Councilmembers Tinajero, Vlllegas and Benavides Staff: Police Chief, OCFA Division Chief, Assistant City Attorney Recording Secretary: Elizabeth Plotnik PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee. AGENDA ITEMS Approval of Minutes of the January 9, 2018 Meeting 2. Santa Ana Municipal Code 10-153 (Loud Noise) — Acting Deputy Chief Gominsky {Strategic Plan Goal No. 1, 1c} 3. Update on Dispensary Map — Candida Neal, Planning and Building {Strategic Plan Goal No. 1, 1c} If you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title II, 28 CFR 35.102] Santa Ana City Council Miguel A. Pulido Michele Martinez j Vicente Sarmiento Jose Solorio P. David Benavides I Juan Villages Sal Tinajero Mayor Mayor Pro Tem Ward 1 Ward 3 Ward 4 Ward 5 Ward 6 M aoansen a -ane ora Ward yseg,i en orasena j dsomnormeen a-anegm oaenamaesrugame.una om dvueaexmsen ne wn sena ergragan a -ane om MMm'nez(lsen eoq j I City Hall, 20 Civic Center Plaza s P.O. Box 1988 o Santa Ana, California 92702 Mayor & Council Telephone: 714-647.6900 . AgenI IQAIIas: 714.647.6520 o Website: www.santa-ana.org 4. Chief's Strategic Plan and Policing Philosophy — Chief David Valentin 5. Proposed Contract with Orange County School of the Arts — Chief David Valentin 6. Homelessness Update —Hafsa Kaka, Homeless Services Manager and Acting Deputy Chief Gominsky (update on Quality of Life Team) (Strategic Plan Goal No. 5, 3d & No. 1, 1 c) COMMITTEE MEMBER COMMENTS FUTURE AGENDA ITEMS Arson Fire Investigation Authority— Santa Ana OCFA Division Chief, Randy Black ADJOURNMENT— The next Public Safety and Neighborhood Improvement meeting is scheduled for Tuesday, May 8, 2018, at 5:30 PM at the City Hall Ross Annex, Room 1600, 20 Civic Center Plaza, Santa Ana, CA. The complete Strategic Plan document is available at http://www.santa-ana.org/strategic-planning/. If you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at / (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for �✓' accessibility to this meeting. [Americans with Disabilities Act, Title II, 28 CFR 35.102] Santa Ana Citv Council Miguel A. Pulido 1 Michele Martinez Vicente Sarmiento Jose Solorlo 1 P. David Benavldes 1 Juan Villages Sal Tinalero Mayor Mayor Pro Tem Ward 1 Ward 3 Ward 4 Ward 5 ! Ward fi Wuldola sense-ene om Ward 1ySermlen oPlsan Jso mioAsanaan a eBenav'dea(➢ean neo JV'eoae®senleane o,o 9T naerornleen eanenm Wadln.ftnn om City Hall, 20 Civic Center Plaza • P.O. Box 1988 • Santa Ana, California 92702 Mayor & Council Telephone: 714.647.6900 • All= 11t0es: 714.647.6520 • Website: www.santa-ana.org CITY OF SANTA ANA CITY COUNCIL COMMITTEE ON PUBLIC SAFETY, CODE ENFORCEMENT & NEIGHBORHOOD EMPOWERMENT MINUTES January 9, 2018 CALL TO ORDER: Ross Annex, Room 1600 City Hall, 20 Civic Center Drive Santa Ana, California 5:38 PM ATTENDANCE: Council Committee members: Juan Villegas Sal Tinajero David Benavides MEMBERS ABSENT: N/A STAFF PRESENT: Raul Godinez Il, CMO Robert Cortez, CMO David Valentin, PD Tamara Bogosian, CAO Candida Neal, PBA Jorge Garcia, CMO Alvaro Nunez, PBA Robert Carroll, PD Oscar Lizardi, PD Yessenia Aspeitia, PD Anthony Espinosa, OCFA Elizabeth Plotnik, Recording Secretary PUBLIC SPEAKERS: Ed Murashie, concerned constituent, Floral Park NA Esther Fonseca, concerned constituent, Artesia Pilar NA Peter Katz, President of Com -Link PUBLIC COMMENTS Ed Murashie, a resident of Floral Park neighborhood suggested the City create a map that lists all legal dispensaries in the City that includes all cannabis regulations. Additionally, Mr. Murashie shared iris concerns regarding coyotes in the Floral Park neighborhood, and asked that stain determine a solution to address this concern. 1 13A-11 Esther Fonseca, member of Board of Directors for Artesia Pilar neighborhood, shared her concerns regarding police enforcement of SAMC 10-153 (Loud music and noise). She stated that when officers respond to a loud noise call, no citations are issued, therefore resulting in no consequences and misuse of the limited police resources. Ms. Fonseca asked the committee to request the police department alter their enforcement approach for this municipal code and report back. Peter Katz, president of Com -Link. Mr. Katz proposed to the Committee that the City of Santa Ana open their own bank, outside of federal regulations, for cannabis dispensary owners to deposit their cash/earnings. This would allow for the City to continue to be cutting-edge and for dispensaries to deposit their money in a safe way. AGENDAITEMS (Item Number 4 taken out of order) 4. Approval of Minutes of the November 14, 2017 Meeting (Item Number 6 taken out of order) 6. ShotSpotter Update — Chief Valentin {Strategic Plan Goal No. 1, gal Chief Valentin shared with the Committee that following the November 14`x` meeting, representatives from ShotSpotter presented their service and technology to members of Police Management. Based on current Police Department resources, Management recommended not pursuing ShotSpotter's service at this time. Additionally, Chief Valentin reviewed the benefits of ShotSpotter's service in locating shots, and that its cost has decreased over recent years. Chief Valentin suggested addressing the Department's vacancy rate first and reconsidering implementation of ShotSpotter in the future. 13A-12 (Item Number 5 talcen out of order) 5. Update on Police Officer Recruitment and Hiring — Manager Robert Carroll and Corporal Oscar Lizardi {Strategic Plan Goal No. 1, 111 (Continuous Item) Manager Cat -roll presented the Council Committee with an update on Police Officer hiring, by reviewing the number of vacancies compared to filled positions year-to-date, as well as the number of additional officers that are projected to be hired in 2018. Corporal Oscar Lizardi introduced himself as the recruitment coordinator, During his presentation, Corporal Lizardi shared his strategy for recruitment strategies, provided statistics of officer referrals, and reviewed his plan for tracking recruitment performance. Chief Valentin added that Corporal Lizardi's full-time assignment is the first of its kind in 30 years, and stated the importance of trying non-traditional recruitment approaches and obtaining local applicants from the Santa Ana community. (Item Number S taken out of order;) 7. Orange County Needle Exchange Program/ Homeless Update — Chief Valentin {Strategic Plan Goal No. 5, 3d & No. 1, 1c) Chief Valentin presented a detailed chronological timeline summary of the Orange County Needle Exchange Program (OCNEP) and provided an overview of his recent meetings/conference calls with OCNEP. Chief Valentin explained that OCNEP representatives were required to meet with him as part of the recertification process, during which he shared his concerns and observations, while acknowledging the Program's initial intent. (Coamcilmember Tinajero enters the meeting— 6:23pni) Assistant City Attorney Tamara Bogosian shared that there was an informed dispute in determining whether OCNEP would still require City approval if/when the State approves their recertification. Additionally, City Manager Raul Godinez II compared OCNEP's certification process to that of liquor licenses, as they require both a State license and City permit. Deputy City Manager Robert Cortez provided the Committee with an update on homelessness and the current efforts taking place. Due to the adoption of the ordinance in October 2017, power washing of the Civic Center has begun to remove prohibited items. Additionally, Deputy City Manager Cortez shared that an interdepartmental team of City M 13A-13 staff had been assembled to address the Civic Center, as well as oversee implementation of said ordinance. At the recommendation of City Manager Godinea., the ordinance and interdepartmental team would be expanded to also address homelessness in other areas of the City, and that the recently hired homeless Manager will start on February 2"', 2017. ACTION: In reference to the County's closure of the riverbed, Councilmember Benavides asked that City Staff be prepared to address any adverse impacts made in the City, as well as contact local shelters to discuss providing services to those relocated. Additionally, Councilmember Benavides requested Staff provide an update to the entire City Council later in the month on this topic. Co -Chair Villegas also requested that Staff continue to monitor the County's action in closing the riverbed, and its potential impact on the City. 8. Illegal Cannabis Enforcement — Candida Neal, Planning and Building {Strategic Plan Goal No. 1, 1c} Candida Neal provided the Committee with an update, on behalf of the Cannabis Enforcement Team (a team comprised of representatives from the Police Department, City Attorney's Office, City Manager's Office and Code Enforcement). Candida shared that as of January 1, 2018 approximately 15 illegal dispensaries remained, and that no additional illegal locations were found after the legalization of recreational cannabis. Additionally, Manager Neal shared details of the enforcement approach, stating that if a "cease and desist" order was not effective, other methods would be used, such as disconnection of utilities, administrative fines and/or installation of metal doors. City Manager Godinez acknowledged City Staff for their hard work in ensuring dispensaries were operational on January 1, 2018 for adult cannabis sales. ACTION: Councilmember Benavides asked that Mr. Mirashie's suggestion of a dispensary map be implemented and added to City Website, as a way to share information with the community, as well as identify known illegal dispensary locations. !! 13A-14 Councilmember Tinajero asked that Staff provide all Councilmembers with a notification memorandum when an illegal dispensary is closed. 2. Review By -Laws (direct staff to make changes as needed) A motion is made to accept the Bi -Laws MOTION: Tinajero VOTE: AYES: NOES: Motion passes. SECOND: Benavides Benavides, Tinajero, Villegas None 3. Review and Approve Proposed Meeting Schedule for this Committee Two options are provided to the Committee: Option 1 would fall on the 2nd Tuesday of every other month; Option 2 would fall on the 4"' Tuesday of every other month. A motion is made to approve Option No. 1. MOTION: Villegas VOTE: AYES: NOES: Motion passes. 1. Elect Chair and Vice Chair SECOND: Tinajero Villegas, Tinajero, Benavides None (0) A motion is made to elect Councilmember Sal Tinajero as Conunittee Chair, and Councilmember Juan Villegas as Committee Vice Chair. MOTION: Benavides VOTE: AYES Motion passes. SECOND: lirajero Tinajero, Benavides I 13A-15 COMMITTEE MEMBER COMMENTS Co -Chair Villegas shared his appreciation of the progress made in officer hiring, and stated that he is confident in Chief Valentin's new changes. He also shared his appreciation of Staff for their hard work and presentations. Councilmember Benavides shared his appreciation for the intentional and non-traditional recruitment strategies and for dedicating a fidl-time position to recruitment. Also, Councilmember Benavides shared his interest in the ShotSpotter service, and recommended that the Committee and City staff continue to monitor the ShotSpotter technology to be considered in the fuhure.Additionally, Councilmember Benavides recognizes OCFA for their response to calls for service pertaining to homeless. He also asked that Animal Control address Mr. Mirashie's concern regarding coyotes. Lastly, pertaining to cannabis, Councilmember Benavides commended the City as whole for a successful launch of recreational sales on January I", and urged Staff to consider implementing a City Bank for dispensary owners, Councilmember Tinajero commended Council for taking a risk in allowing the OCNEP to operate in the City, despite some of the challenges that followed. He also commented that opening a City -owned bank or credit union could help City economics, therefore asking Staff to consider the idea. lastly, Councilmember Tinajero congratulated Assistant to the City Manager, Jorge Garcia, on expecting his second child. The Committee members were engaged in the discussions, expressed interest in the presentations, and asked for some items to be brought back for further dialogue. FUTURE ITEMS Noise ordinance/complaint Update on dispensary mapping ADJOURNMENT — 7:00 P.M --DAVIDVALENTIN Chief of Police ep 13A-16 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: AUTHORIZE SUBMITTAL OF GENERAL PLAN HOUSING ELEMENT ANNUAL PROGRESS REPORT TO THE STATE OF CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT {STRATEGIC PLAN NO. 5, 3B} CIW MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 n Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize submittal of the General Plan Housing Element Annual Progress Report to the State of California Housing and Community Development. DISCUSSION The General Plan Housing Element is a comprehensive planning document designed to address current and future housing needs for Santa Ana and the surrounding region. The housing vision is expressed in the goals, policies, and implementation programs stated in the Housing Element. The purpose of the Housing Element Annual Progress Report (Exhibit 1) is to describe the activities and accomplishments made in 2017, which are consistent with the City's housing vision and associated implementation programs. The following are three major Housing Element program accomplishments in 2017: • A total of 14 meetings were held with the General Plan Advisory Group (GPAG), a group comprised of residents and stakeholders assisting with the creation and development of goals and policies for the Comprehensive General Plan update; • Continued efforts to support developers to secure tax credits and other sources of funding for quality affordable housing projects; and • A variety of local park, bikeway and pedestrian infrastructure improvements to promote livable, "complete" neighborhoods. 19C-1 City of Santa Ana General Plan Housing Element Annual Progress Report March 20, 2018 Page 2 The Housing Element Annual Progress Report includes a summary of Santa Ana's progress in meeting its share of the Regional Housing Needs Allocation (RHNA). There were a total of 195 new housing units constructed in 2017; contributing to the City meeting approximately 59 percent of the overall target for Santa Ana's 405 RHNA units for the planning period of 2014 through 2021. Moreover, the City is on track to exceed its RHNA goals following the commitments and awards for five affordable housing projects (Aqua Housing, Veterans Village, First Street Apartments, Tiny Tim Plaza Apartments, and Santa Ana Arts Collective). Presently, the RHNA process does not allow for housing unit credits to be taken for new emergency homeless shelters. City staff will continue working with both the Southern California Association of Governments (SCAG) staff and State Housing and Community Development (HCD) for consideration of homeless shelters to be counted to achieving the RHNA allocation as these facilities help to address the regions need for additional housing. Progress Towards 2014-2021 RHNA Goal Income RHNA Allocation New Housing Units 2014 New Housing Units 2015 New Housing Units 2016 New Housing Units 2017 Total Housing units by Income Total Remaining RHNA by Income Levels Very Low_ ` ` 156 20 0 0 49 69 87 Low - 122 20 1 0 12 20 52 70 Moderate 37 0 11 5 11 27 10 Above Moderate 90 - 241 127 285 115 768 0 Total: '_ 405 281 138 302 195 916 167 Based on building permits finalized The Housing Element Annual Progress Reports are due to the State Department of Housing and Community Development (HCD) and the State Office of Planning and Research in April of each year. In addition, the Housing Element Annual Progress Report is required to be eligible for certain State funding programs such as the Housing Related Parks Program (HRP). Per Government Code 65400, the report is to be considered at a public meeting before the legislative body where members of the public may provide testimony and written comments. 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 to provide a minimum of 15 percent affordable units). 19C-2 City of Santa Ana General Plan Housing Element Annual Progress Report March 20, 2018 Page 3 FISCAL IMPACT There is no fiscal impact associated with this item. Candida Neal, AICP Acting Executive Director Planning and Building Agency RS:rb SAPIanning\Ricardo\Hsg Prog Report12017TRFCA march 20 18 - RS.docx Exhibit: 1. General Plan Housing Element Annual Progress Report 19C-3 19C-4 City of Santa Ana ANNUAL GENERAL PLAN HOUSING ELEMENT PROGRESS REPORT Submitted by Planning and Building Agency April 1, 2018 19C-5 City of Santa Ana ANNUAL GENERAL PLAN HOUSING ELEMENT PROGRESS REPORT (2017) TABLE OF CONTENTS Contact Information II. Progress Report: Attachment 1 • Table A: Annual Building Activity Report- Low-, and Very Low - Income Units and Mixed -Income Multifamily Projects • Table A2: Annual Building Activity Report -Summary for Units Rehabilitated, Preserved and Acquired pursuant to GC Section 65883.1(c)(1) • Table A3: Annual Building Activity Report Summary for Moderate - and Above Moderate -Income Units • Table B: Regional Housing Needs Allocation Progress • Table C: Program Implementation Status 19C-6 MAYOR Miguel A. Pulido MAYOR PRO TEM Michele Martinez P. David Benavides Vicente F. Sarmiento Jose Solodo Sal Tinajero Juan Villegas CITY OF SANTA ANA PLANNING & BUILDING AGENCY 20 Civic Center Plaza P.O. Box 1988 • Santa Ana. California 92702 www.santa-ana.org/pba Department of Housing and Community Development CITY MANAGER Raul GDdlnez II CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Made D. Huizar ANNUAL GENERAL PLAN HOUSING ELEMENT PROGRESS REPORT CONTACT INFORMATION City or County Name: City of Santa Ana Mailing Address: 20 Civic Center Plaza, Santa Ana, CA 92701 Report Contact Person: Candida Neal Title: Interim Executive Director Phone: (714) 667-2728 FAX: (714) 973-1461 E-mail: cneal(a)santa-ana.org Reporting Period by Calendar Year: from Jan. 1, 2017 to Dec. 31, 2017 SANTA ANA CITY COUNCIL 66gud A Pulido Mtliele Marlinez Vicente F. Samtlento Jase Sdodo P. David Benzmdes Juan Villegas Sal Tinalem Mayor Mayan Pro Tem Ward 2 Ward? 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R 0 b LU §k 2 uu# ±§E % ( ) \ \� g - i 0 {% \ �b {$ ® k� - \ \» \5 19C-27 t 19C-28 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: STRATEGIC PLAN MONTHLY REPORT FOR FEBRUARY 2018 {STRATEGIC PLAN NO. 5, 1} CIfY 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 Receive and file the Strategic Plan Monthly Report for February 2018. The February 2018 monthly report provides departmental activity in alignment with the stated goals of the Strategic Plan. The report includes tasks, next steps, outcomes and percentage completed for each strategy. The Strategic Plan Monthly Reports are available on the City's website at: hftp://www.santa-ana.org/strategic-planning STRATEGIC PLAN ALIGNMENT 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 item. 19D-1 19D-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: RECEIVE AND FILE THE 2017 CITY OF SANTA ANA WATER MASTER PLAN {STRATEGIC PLAN NO. 6, 1A} I G C12 MANAGER RECOMMENDED ACTION Receive and file the 2017 City of Santa Ana Water Master Plan. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s` Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER The City Water Enterprise provides potable drinking water for all of the City's residents and businesses, delivering an average of 30 million gallons a day. In order to accomplish this, the City owns and operates a water system that consists of 480 miles of pipe, 22 groundwater wells, 4 pressure control stations, 7 import water connections, 7 water booster stations, 8 reservoirs, 6,000 fire hydrants, 12,000 valves, and 45,000 service connections. The City supplies water to meet this demand from two sources. 70 to 75 percent of the water supply comes from the local groundwater wells, which draw from the Orange County Groundwater Basin, and the remainder is imported surface water from the Colorado River and San Joaquin Delta purchased from the Metropolitan Water District. In order to properly plan for the long-term operability of the water system, it is standard practice to perform a master plan study every 10 years that takes into consideration the age and condition of the system, population and water use trends, and reliability of water supply sources. The 2017 City of Santa Ana Water Master Plan (Master Plan) was developed to improve and maintain the City's water utility infrastructure system and to meet level of service expectations for the next 10 years and beyond. The Master Plan establishes a Capital Improvement Program (CIP) schedule and budget for the planning period into 2040. It will help determine the critical tasks that should be done to maintain the City's water infrastructure. The Master Plan provides focus to areas with the most immediate needs, and includes assets of the water system such as the replacement of water mains at the end of their usable life to the refurbishment/rehabilitation of aging city wells. 19E-1 Receive and File 2017 Water Master Plan March 20, 2018 Page 2 Highlights from the Master Plan include the following: 20% of the City's 480 miles of water main is already past the typical useful life for pipe material. At the end of the planning period, 70% of the system will have surpassed the typical useful life for pipe material. On average $10.4 million should be invested in water system CIP annually over the next 10 years to maintain current service levels. • $14.2 million annual CIP investment is recommended in order to improve level of service and incorporate additional technology and security improvements. • Well criticality has been identified with the more critical wells scheduled to be rehabilitated first. • Well pump and motor expectancies have been re-established, taking original installation and normal wear and tear into account in the analysis. The City of Santa Ana Water Resources department staff will utilize the Master Plan to prepare future operations and capital improvements schedules with corresponding budgets. Staff will coordinate the Master Plan, in conjunction with the current and future water rate studies, to provide a more robust and reliable water system to the City residents. 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 A (develop a complete inventory of all assets to determine the scope of improvements needed to sustain the City's current infrastructure investment). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. Edwin "William" Galvez, P.E. Acting Executive Director Public Works Agency WG/NS/RR Exhibit: 1. 2017 Water Master Plan may be reviewed at htto://www.ci.santa-ana.ca. us/owa/documents/2017WaterMasterPlan. odf 19E-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: AWARD A PURCHASE ORDER TO MOTOROLA SOLUTIONS, INC. FOR MOTOROLA 800 MHZ RADIOS (SPEC. NO. 18-019) (STRATEGIC PLAN NO.1, 5) fr.. i� dt* MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: FTTIJ*J_0697 ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize a one-time purchase and payment of purchase order to Motorola Solutions, Inc. for 27 Motorola 800 MHz radios in the amount of $143,275, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Santa Ana Police Department utilize hand-held portable and mobile radios to communicate with other field personnel, the SAPD Dispatch center, and Orange County agencies via the Orange County Communications (county -wide dispatch center). The 800 MHz communications system has been in place since 1995 and allows all police, fire, public works, and marine safety agencies in Orange County to share a common radio system, yet provides agencies with their own dispatch and tactical channels. The radios are used for both emergent and non -emergent radio traffic. The hand held radios are a. critical lifeline for sworn and non -sworn field personnel, for sharing rapidly changing information pertaining to calls for service and for relaying field personnel safety messages. The current department inventory of 333 hand-held radios is comprised of the newer model "APX 6000" radios which was acquired as part of the 800 MHz Countywide Coordinated Communications System (CCCS) agreement in 2015 for equipment lease -purchase. The 333 radios were issued to Sworn personnel, Watch Commanders, Station Supervisors, and Dispatch. This order of 27 additional radios will consists of 15 portable APX 6000 radios for new sworn officers and 12 mobile or "bag" APX 6500 radios to be placed in patrol vehicles used in undercover instances. Additionally, Non -Sworn personnel (which includes Parking Control Officers, Forensic Specialists, Animal Control, Probation, and other ancillary positions) are currently using older "Astro XTS 5000" radios. There are approximately 85 of these older XTS 5000 radios in use or available for checkout. Although older, the XTS 5000 radios have performed adequately for the department's 22A-1 Contract Award for 800 MHz Radios March 20, 2018 Page 2 needs. Per a memo dated January 26, 2018 from the Orange County Sheriffs Department a conversion to a new system during 2018 will take place and render the older radios incompatible as they prepare to introduce a new system in 2019. The Police Department will be purchasing an additional 85 APX 6000 radios next fiscal year for use by non-swom personnel. The County of Orange has a contract system in place with MHz Countywide Coordinated Communications System safety and public service organizations across the communication system throughout Orange County. Mot offers the equipment and contract discounted pricing to under the 800 MHz CCCS program. STRATEGIC PLAN ALIGNMENT Motorola Solutions, Inc. called the 800 (800 MHz CCCS), participating public county provide the existing radio Moto Solutions, Inc., the manufacturer, all public agency's in Orange County Approval of this item supports the City's efforts to meet Goal # 1 Community Safety; Objective # 5 (provide high quality Police and Fire/Emergency Medical Services response within the City of Santa Ana). FISCAL IMPACT Funds in the amount of $80,972.28 are available in the Police Department CDC Center account (01114450-63001), $21,032.36 in the Police Department Communications account (01114465- 67200, and $41,270.36 in the Police Department Communications account (01114465-67100) for expenditure in FY 2017-18. CLalentin Acting Chief of Police Santa Ana Police Department EG/RC APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez V,XL Executive Director Finance and Management Services Agency 22A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE:. AGREEMENT WITH APOSTOLIC ASSEMBLY OF THE FAITH IN CHRIST JESUS, INC. FOR PARKING LEASE AT 308 NORTH MAIN STREET (STRATEGIC PLAN NO. 3,413) ClY 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 an agreement with Apostolic Assembly of the Faith in Christ Jesus, Inc. for the parking lease located at 308 North Main Street for the period of April 1, 2018 through March 31, 2019, at a monthly rate of $1,053 in a total amount not to exceed $12,636, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The former Community Redevelopment Agency (CRA) for the City of Santa Ana owned several parcels of land located throughout the Downtown area, including the ten -space parking lot at 308 North Main Street. In early 2011, the Apostolic Assembly of the Faith in Christ Jesus, Inc. (Apostolic Assembly) approached the CRA for the lease of such property to accommodate their daily parking needs. As such, on April 1, 2011, both entities entered into an initial five-year term agreement effective through March 31, 2016 with two, one-year renewal options. The lease payments for the property are set at $1,053 per month and have been satisfactorily met during this time. When the CRA was dissolved as of February 1, 2012, the City of Santa Ana became the owner of the above referenced property and assumed all lease associated obligations. At this time, all renewal options have been exercised; however, the City of Santa Ana and the Apostolic Assembly are in agreement and wish to continue the parking lease for one year under the same terms and conditions after which, the City will adjust the monthly rate based on market conditions. Therefore, staffs recommendation is to approve the parking lease effective April 1, 2018 through March 31, 2019. 25A-1 Agreement with Apostolic Assembly March 20, 2018 Page 2 STRATEGIC PLAN ALIGNMENT Approval of these items assists the City in meeting Goal #3 — Economic Development, Objective #4 (continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination), Strategy B (create a comprehensive program to manage parking that includes innovative strategies to provide parking, create revenue and enhance accessibility in the downtown). FISCAL IMPACT Funds received will be deposited into Parking Meter & Facilities revenue account (no. 02710002- 53804) as follows: Fiscal Year Account Amount FY 2017-18 (April 1, 2018 -June 30, 2018) 02710002-53804 $3,159 FY 2018-19 (July 1, 2018 -March 31, 2019) 02710002-53804 $9,477 Total $12,636 APPROVED AS TO FUNDS AND ACCOUNT: 13!s Francisco Gutierrez Executive Director Finance and Management Services Agency AR Exhibit: 1. Parking lease agreement 25A-2 LEASE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE APOSTOLIC ASSEMBLY OF THE FAITH IN CHRIST JESUS, INC. THIS LEASE AGREEMENT ("Agreement") is made and effective this Istt day of April, 2018, by and between City of Santa Ana, a charter City and municipal corporation organized and existing under the Constitution and law of the State of California, herein referred to as "Lessor", and the Apostolic Assembly of the Faith in Christ Jesus, Inc., a California non-profit public benefit corporation, herein referred to as "Lessee". The parties hereto agree as follows: ARTICLE I - TERM OF LEASE Section 1.01 Property and Use (a) Lessor owns the real property described in Exhibit A attached hereto and made a part hereof (the "Property"), located at 308 N. Main Street, Santa Ana, California. (b) Lessor hereby rents to Lessee sole use of the area designated as the parking lot on said Property to park motor vehicles on site per the striping plan referenced in Exhibit B attached hereto and incorporated herein. (c) Lessee is accepting the Property in an "as -is" condition. (d) Lessee may not sublet or assign the Property to any other person, entity, company or organization. (e) Any signage Lessee intends to place upon the Property is subject to prior approval of the Lessor, and must be compliant with City of Santa Ana local regulations. (1) Upon the expiration or termination of this Agreement, Lessee shall surrender the Property to Lessor in good and clean condition, less ordinary wear and tear. Section 1.02 Term (a) The term of the Agreement for renting,the,Property ("Term") shall be for one (1) year commencing on April 11 2018 and continuing_untitMarch:31 2019, at rental amounts set forth below. (b) Notice of intent to vacate or termination of the Lessor -Lessee relationship is only valid with thirty (30) days prior written notice to the other party for no cause. (c) Notice of intent to terminate due to violation of Lease terms and conditions shall be consistent with California State law. Section 1.03 Rent (a) Upon execution of this Agreement, Lessee shall pay to Lessor the monthly rate of =1053 -during the term of the Agreement. 25A-3 Rent payments will be due upon execution of this Agreement and thereafter on or before the 5a' of each month, payable to "City of Santa Ana," and remitted to: The City of Santa Ana M- 17, 20 Civic Center Plaza, P.O. Box 1988 Santa Ana, CA 92702. A late charge often percent (10%) shall be applied after any payment hereunder is due but unpaid. (b) Rent for any period during the rental term which is less than one (1) month shall be a prorated portion of the monthly installment herein, based upon a thirty (30) day month. Section 1.04 Non -Recording Neither party shall record this Agreement. ARTICLE 2 - TAXES AND MAINTENANCE Section 2.01 Taxes Lessee shall pay before they become delinquent all taxes, assessments or other charges levied or imposed by any governmental entity on Lessee's Property. If such taxes are not assessed separately to Lessee, Lessor shall provide Lessee with evidence, reasonably acceptable to Lessee, of such tax assessment and the amount due, which is attributable to Lessee. Section 2.02 Maintenance Lessee shall pay for all services furnished to the Property for the use, operation and maintenance of Lessee's Property during the Term of this Agreement, or any extension thereof, and for the removal of trash from the Property during the Term of this Agreement, or any extension thereof. Lessee shall provide lighting for the Property and for persons using the Property. ARTICLE 3 - IMPROVEMENTS AND ACCESS Section 3.01 The Property/Miscellaneous (a) Lessee shall repair any damage to the Property and will leave the Property in satisfactory condition as approved in writing by Lessor. Lessee shall be required to remove all its fixtures upon expiration/termination of the Agreement, and if Lessee fails to do so within thirty (30) days, Lessor may elect to do so at Lessee's sole cost and expense, or elect to not remove such fixtures, in which case, such fixtures shall become the property of Lessor, at Lessor's option. Any personal properly, equipment or other improvements that are not removed within said thirty -day period shall become the property of Lessor, at Lessor's option. Lessee's obligation to pay compensation to Lessor shall not cease, unless and until the fixtures that Lessee must remove, are removed to Lessor's approval. 25A-4 (b) Lessee shall provide access to the Property to the Lessor, and its employees, agents, contractors and subcontractors, twenty-four (24) hours a day, seven (7) days a week. Except in the case of emergencies, Lessor shall give Lessee twenty-four (24) hours' notice prior to entry into the Property. (c) Lessee shall, at its sole cost and expense, maintain and repair the Property including, but not limited to, the removal of all trash, debris, graffiti, as well as any special intensive cleaning. If Lessee causes any damage to the Property, to the Property or to access roadways or other nearby facilities, it shall properly repair same as specified by Lessor. (d) Upon the expiration or termination of this Agreement, Lessor shall approve in writing the surrender of the Properly by Lessee only after being satisfied that the Property has been left in good and clean condition, less ordinary wear and tear. (e) Quiet Enjoyment. Lessee shall have quiet possession of the Property for the entire term hereof subject to all the provisions of this Agreement. Section 3.02 Liens Lessee will not permit any mechanics' or materialmen's or other liens to stand against the Property by reason of any use or occupancy by Lessee, or any person claiming under Lessee. ARTICLE 4 - INDEMNITY AND INSURANCE Section 4.01 Indemnification, Defense, Hold Harmless Lessee shall protect, defend, indemnify and save and hold harmless Lessor, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation costs and fees of litigation of any nature) arising out of or in connection with Lessee's performance of this Agreement or Lessee's failure to comply with any of Lessee's obligations contained in the Agreement by Lessee, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of Lessor. In the event Lessor is named as codefendant, Lessee shall notify Lessor of such fact and shall represent Lessor in such legal action unless Lessor undertakes to represent itself as codefendant in such legal action, in which event Lessor shall bear its own litigation costs, expenses and attorney's fees. Lessee further agrees to indemnify, hold harmless, and pay all costs for the defense of the Lessor, including fees and costs for special counsel to be selected by Lessor, 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. Lessor may make all reasonable decisions with respect to its representation in any legal proceeding. 25A-5 Section 4.02 Insurance Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. 1. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: A. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions: Additional Insured Status — Exhibit C The City of Santa Ana, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 1185 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Primary Coverage For any claims related to this contract, the Contractor's insurance coverage shall be primary coverage at least as broad as ISO CG 20 0104 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. Notice of Cancellation Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. 25A-6 Waiver of Subrogation Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. Verification of Coverage Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Section 4.03 Property Insurance Lessee shall provide to Lessor, before entering the Property, and shall maintain in force during the entire term of this Agreement, property insurance with extended coverage endorsements thereon, on the Property in an amount equal to the full replacement cost and/or value thereof; this policy shall contain a replacement cost endorsement naming Lessee as the insured and shall not contain a co-insurance penalty provision. The policy shall contain a special endorsement that such proceeds shall be used to repair or rebuild any such improvements so damaged or destroyed; and if not so used, such proceeds shall be paid to Lessor. The proceeds of any such insurance payable to Lessor shall be used for rebuilding or repair as necessary to restore the Property at the discretion of Lessor. The policy shall name Lessor as an Additional Insured. The policy or policies shall also contain the following endorsements: The insurer will not cancel or reduce the insured's coverage without thirty (30) days prior written notice to Lessor; and 2. Lessor will not be responsible for premiums or assessments on the policy. A complete and signed certificate of insurance with all endorsements required by this Section shall be filed with Lessor prior to the execution of this Agreement. At least thirty (30) days' prior to the expiration of any such policy, a signed and complete certification of insurance showing that coverage has been renewed, shall be filed with Lessor. 25A-7 Section 4.04 Certificates of Insurance; Additional Insured Endorsements Prior to execution of this Agreement, Lessee shall furnish to Lessor certificates of insurance and additional insured endorsements to each of Lessee's insurance policies, subject to approval of the City Attorney, evidencing the foregoing insurance coverages as required by this Agreement; these certificates shall: 1. provide the name and policy number of each carrier and policy; 2. shall state that the policy is currently in force; and 3. shall promise to provide that such policies will not be canceled, suspended, voided, reduced in coverage or in limits, or modified without thirty (30) days prior written notice of Lessor. Lessee shall maintain the foregoing insurance coverages in force throughout the term of this Agreement. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of Lessor by Lessee under the Agreement. Lessor or its representatives shall at all times have the right to demand the original or a copy of all these policies of insurance, which Lessee shall provide within fifteen (15) days of Lessor's request. ARTICLE 5-TERMINATION/DEFAULT Section 5.01 Termination (a) In the event of any damage, destruction or condemnation of the Property, which renders the Property unusable or inoperable in Lessor's judgment, Lessee shall have the right, but not the obligation, to terminate the Agreement with respect to the subject Property by giving written notice to Lessor within thirty (30) days after such damage, destruction or condemnation. If by virtue of such casualty or condemnation, Lessor determines that the Property is no longer adequate for Lessee to continue its operations, or any repairs to the Property have not been completed or cannot reasonably be completed within sixty (60) days from the date of the damage, destruction or condemnation. This Agreement will become null and void. (b) In the event of condemnation, unless Lessee is allowed by the condemning authority to continue its operations in the Property, this Agreement shall terminate as of the date title to the Property vests in the condemning authority or Lessee is required to cease its operations, whichever is earlier. If any property described herein or hereinafter added hereto is taken in eminent domain, the entire award shall be paid to Lessor. (c) This Agreement may be terminated on fifteen (15) days prior written notice by either party upon a default of any covenant or term hereof by the other party, which default has been noticed and is not cured within thil ty (30) days of receipt of written notice of 25A-8 default, provided that the grace period for any monetary default is only ten (10) days from receipt of notice. ARTICLE 6 -ASSIGNMENT, ABANDONMENT, DEFAULT, INSOLVENCY Section 6.01 Assignment Lessee shall not, either voluntarily or by operation of law, assign, transfer, mortgage, pledge, or encumber this lease or any interest therein, and shall not sublet said Property or any part thereof, or any right or privilege appurtenant thereto, or allow any other person (the employees, agents, servants, and invitees of Lessee excepted) to occupy or use said Property, or any portion thereof, without the prior written consent of the Lessor. Section 6.02 Abandonment by Lessee Should Lessee breach this Agreement and abandon the Property prior to the expiration of the Term, Lessor may recover at least one month's rental compensation for Lessee's failure to give notice of such telmination/vacation of the Property. Section 6.03 Default by Lessee Should Lessee default in the performance of any of the terms, conditions, or obligations contained in this Agreement, Lessor may, in addition to the remedies specified in Section 6.02 of this Agreement, re-enter and regain possession of the Property in the manner provided by the laws of unlawful detainer of the State of California then in effect. Section 6.04 Insolvency of Lessee The insolvency of Lessee as evidenced by a receiver being appointed to take possession of all or substantially all of the property of Lessee, or the making of a general assignment for the benefit of creditors by Lessee, or the filing of a petition in bankruptcy shall terminate this Agreement and entitle Lessor to re-enter and regain possession of the Propel ty. Section 6.05 Cumulative Remedies The remedies given to Lessor in this Agreement shall not be exclusive, but shall be cumulative and in addition to all remedies now and hereafter allowed by law or elsewhere provided in this Agreement. Section 6.06 Waiver of Breach The waiver by Lessor of any breach by Lessee of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach by Lessee either of the same or another provision of this Agreement. 25A-9 ARTICLE 7 -HAZARDOUS MATERIALS Section 7.01 At the time of execution of this Agreement, Lessor warrants that the Property is clean and contains no known hazardous materials. Lessee represents and warrants that it will comply with all environmental laws during the term of this Agreement; its use of the Property herein will not generate any hazardous substance, and it will not store or dispose on the Property nor transport to or over the Property any hazardous substance. Lessee further agrees to clean-up and remediate any hazardous substance on the Property and hold Lessor harmless from and indemnify Lessor against any release of any such hazardous substance and any damage, loss, or expense or liability resulting from such release including all attorneys' fees, costs and penalties incurred as a result thereof except any release caused by the negligence of Lessor, its employees or agents. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance, or other similar term by any federal, state or local environmental law, regulation or rule presently in effect or promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be limited to, any substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. ARTICLE 8 - MISCELLANEOUS Section 8.01 Force Majeure - Unavoidable Delays Should the performance of any act required by this Agreement to be performed by either Lessor or Lessee be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused, provided, however, that nothing contained in this section shall excuse the prompt payment of compensation by Lessee as required by this Agreement or the performance of any act rendered difficult solely because of the financial condition of the party, Lessor or Lessee, required to perform the act. Section 8.02 Notice Any written notice or required submittals, given under the terms of this Agreement, shall be delivered personally, or mailed, certified snail, postage prepaid, addressed to the party concerned as follows: To Lessor: City of Santa Ana — Finance and Management Services Agency Attn: Executive Director 25A-10 20 Civic Center Plaza (M-25) P.O. Box 1988 Santa Ana, CA 92702 Fax: (714) 647-6549 And City of Santa Ana — City Attorney 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, CA 92702 Fax: (714) 647-6515 To Lessee: Apostolic Assembly of the Faith in Christ Jesus, Inc. P.O. Box 3416 Santa Ana, CA 92703-0416 Attn: Leobardo A. Maffey, Pastor A party may change its address by giving notice in writing to the other party. Thereafter, any notice, tender, demand, delivery, or other communication shall be addressed and transmitted to the new address. If sent by mail, any notice, tender, demand, delivery, or other 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 facsimile, any notice, tender, demand, delivery, or other 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. Section 8.03 Contract Administrator The Executive Director of the Finance and Management Services Agency, or his/her designee, shall be City's Administrator for this Agreement and all approval and notices required to be given herein shall be so directed and addressed. Section 8.04 Compliance with Laws Lessee shall at Lessee's own cost and expense comply with all statutes, ordinances, regulations, and requirements of all governmental entities, including federal and state, county and municipal, relating to Lessee's use and occupancy of the Property whether such statute, ordinances, regulations, and requirements be now in force or hereinafter enacted. The judgment of any court of competent jurisdiction, or the admission by Lessee in a proceeding brought against Lessee by any government entity, that Lessee has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between Lessor and Lessee and 25A-11 shall be considered grounds for termination of this Agreement by Lessor. Lessee will obtain all permits and other governmental approvals, required in connection with Lessee's activities hereunder, and update such permits/approvals as necessary. Section 8.05 Binding on Heirs and Successors This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the parties hereto. The provisions of this Section shall not be deemed to be a waiver of any of the conditions against assignment set forth herein. Section 8.06 Partial Invalidity Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. Section 8.07 Waste or Nuisance Lessee shall not commit or permit the commission by others of any waste on the Property. Lessee shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined in Section 3479 and/or Section 3480 of the California Civil Code on the Property; and Lessee shall not use or permit the use of the Property for any unlawful purpose. Section 8.08 Repairs Lessee shall be required to make any repairs to the Property occurring from damages caused by Lessee, its employees, agents, contractors, and subcontractors. Section 8.09 Time of Essence Time is expressly declared to be of the essence in this Agreement. Section 8.10 Governing Law 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. Section 8.11 Survival Terms and conditions of this Agreement which by their sense and context survive the termination or expiration of this Agreement, shall so survive. 25A-12 Section 8.12 Reserved Section 8.13 Conflict of Interest Lessee covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of this Agreement. Section 8.14 Attorney's Fees In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees. Section 8.15 Exclusivity and Amendment This Agreement constitutes the entire agreement and understanding between Lessor and Lessee respecting the Property and correctly sets forth the obligations of Lessor and Lessee to each other as of such date. Any agreements or representations respecting the Property or their licensing between the parties not expressly set forth in this instrument are null and void. This Agreement or any part of it may not be changed, altered, modified, limited or extended orally or by any Agreement between the parties, unless such Agreement is expressed in writing, signed and acknowledged by Lessor and Lessee, or their successors in interest. Section 8.16 Captions Captions used in this Agreement are for ease of reference only and shall not affect the construction or interpretation of this Agreement. Section 8.17 Non -Discrimination Lessee 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. Lessee affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. [signature page to follow] 25A-13 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first written above. ATTEST: MARIA HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: L Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL, FRANCISCO 9UTIERREZ Executive Dirmtcr, Finance and Management Services Agency CITY OF SANTA ANA RAUL OODINEZ II City Manager APOSTOLIC ASSEMBLY OF THE FAITH IN CHRIST JESUS, INC. By: Title: 25A-14 FOURTH STREET w THIRD STREET a —d 11 r N 308 North Main Street Exhlbit A 25A-15 Exhibit B 308 N Main Street — Parking Lot 25A-16 A EXHIBITC ADDITIONAL INSURED ENDORSEMENT Insurance Company This endorsement modifies such insurance as is afforded by the provisions of Policy # relating to the following: 1. The Community Redevelopment Agency of the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92702, and its officers, employees, agents and volunteers are named as additional insureds ("additional insureds") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is primary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insureds, this insurance shall not be canceled, or materially reduced in coverage or limits except after thirty (30) days written notice has been given to the Community Redevelopment Agency of the City of Santa Ana, 20 Civic Center Plaza (M-25), Santa Ana, California 92702. (Completion of the following, including countersignature, is required to make this endorsement effective.) Effective Policy#_ Issued to Date: Named Insured Countersigned by 25A-17 , this endorsement form as a part of Authorized Representative Or Insurance Agent 25A-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: AMEND AGREEMENT FOR SPECIAL LEGAL COUNSEL SERVICES WITH JONES & MAYER, ATTORNEYS AT LAW TO SUPPORT CODE ENFORCEMENT EFFORTS {STRATEGIC PLAN NO. 3, 3; 5, 4E} CdX 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 Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement with Jones & Mayer, Attorney at Law, for legal services in the area receivership based on nuisance conditions resulting from operating illegal marijuana dispensaries and from health and safety violations of the City's Municipal Code matters for an additional amount of $90,000 not to exceed a total contracted amount of $290,000, subject to non -substantive changes approved by the City Manager and City Attorney. The City has utilized receivership actions under the California Health and Safety Code to successfully resolve difficult code enforcement matters in both commercial and residential properties. Receivership is a legal process through which control of a real property is temporarily taken from the owners and placed with a court-appointed officer; the Receiver. These receiverships are used for abandoned and substandard properties where the owner has a history of noncompliance with the City's code enforcement efforts or, in emergency situations, where the real property presents an immediate threat to health and safety. The receivership option is a comprehensive process which eliminates substandard conditions or uninhabitable slum -like properties and allows the referring agency, when it is the prevailing party, to recuperate its enforcement costs. This process also communicates to the public that the City is actively protecting residents and tenants from dangerous conditions created by absentee or non-responsive property owners. Beginning in 2013, the City of Santa Ana has initiated more than fifteen receivership actions against dangerous and substandard properties within the City. As a result of successful prosecution of these actions, the dangerous and substandard conditions on these properties have been corrected. On August 2, 2016, the City Council approved an Appropriation Adjustment of $100,000 to the Planning and Building Agency budget for receivership activities. This item also indicated 2513-1 Amend an Agreement with Jones & Mayer March 20, 2018 Page 2 that the City would soon thereafter conduct a Request for Proposals (RFP) to retain outside legal counsel for the receivership program. In September 2016, an RFP was released inviting law firms to submit proposals to provide legal services related to the receivership program. Because the City has utilized Federal Community Development Block Grant (CDBG) funds for the program, the RFP was conducted pursuant to Federal guidelines (2 CFR 200.320(d)). The City's RFP was published for one week in the Orange County Register and copies of the RFP were mailed to law firms in the Orange County area who specialize in code enforcement litigation. Four proposals were received in response to the City's RFP. The proposals were reviewed and evaluated by staff from Code Enforcement, Planning & Building, and the City Attorney's Office. The top ranked firm was Jones & Mayer. On May 18, 2017, based on staff recommendation, the City Council approved entering into a legal services agreements with Jones & Mayer for a three year term. Jones & Mayer agreed to a capped fee by which the City will pay for attorneys' fees and costs incurred up to $18,000 for each receivership case filed, not to exceed $30,000 for the Marijuana dispensary receivership actions. Once the billed services exceed the capped amounts, Jones & Mayer will seek payment directly from the appointed receiver. In the original Agreement (#A-2017-140) under Section 2.d., Compensation, the amount to be expended for the Legal services for Jones and Mayer was not to exceed $200,000. On September 5, 2017, Council approved additional funds not to exceed $90,000 to be provided for legal services on receivership projects including code enforcement and legal actions of marijuana dispensary receiverships. Therefore the initial agreement of $200,000 plus the $90,000 is a total amount of $290,000 funds approved by City Council for code enforcement related receivership matters is $290,000. Staff requests Council approval to amend the Jones & Mayer legal Services Agreement to reflect the actual funds of $290,000 appropriated previously for legal services to be provided by Jones and Mayer. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objectives #3 (Promote a solution -based customer focus in all efforts to facilitate development and investment in the community); Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy E (Implement innovative code enforcement practices and strategies including the use of volunteers, enhanced technologies and increased collaboration with other City departments and outside agencies to address critical livability issues citywide [e.g. overcrowding, absentee landlords, landlord/tenant rights and responsibilities, etc.]). 25B-2 Amend an Agreement with Jones & Mayer March 20, 2018 Page 3 FISCAL IMPACT Funding for this amendment in the amount of $90,000 are available in the Non -Departmental — Contractual Service account (01105015-62300). (As part of the $143,000 in the Non - Departmental — Contractual Service account (01105015-62300) approved by City Council on September 5, 2017) Candida Neal, AICP Acting Executive Director Planning & Building Agency SM:rb S:RFCA\03-20-18\PBA Amend Agreement with Jones & Mayer Exhibit: 1. Amended Agreement APPROVE AS TO FUNDS AND ACCOUNTS: y Francisco Gutierrez Executive Director Finance & Management Agency 25B-3 25B-4 25B-5 r FIRST AMENDMENT TO SPECIAL LEGAL COUNSEL SERVICES AGREEMENT WITH JONES & MAYER THIS FIRST AMENDMENT TO AGREEMENT is entered into this 6a' day of March, 2018, by and between Jones & Mayer ("Attorneys'), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City'). RECITALS A. On June 14, 2017, the City entered into Agreement #A-2017-140 with Attorneys to provide legal services for the term of June 14, 2017 through May 18, 2020. B. In accordance with the terms and conditions of the Agreement, the parties desire to amend the Compensation amount of the Agreement to reflect an increase in additional funding approved by the City Council. THE PARTIES THEREFORE AGREE: 1. Section 2.d., COMPENSATION, shall be amended to increase compensation for the Agreement in an amount not to exceed $90,000. Therefore, the total amount of the Agreement shall not exceed $290,000. Except as hereinabove modified, the terns and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the 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: SONIA R. CARVALHO City Attorney's Office CITY OF SANTA ANA RAUL GODINEZ II City Manager JONES & MAYER By: Richard D. Jones Title: Owner/President EXHIBIT 1 Page 1 of 1 25B-7 25B-9 25B-10 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: APPROVE AN AGREEMENT WITH THE ORANGE COUNTY SCHOOL OF THE ARTS FOR SCHOOL RESOURCE OFFICER SERVICES (STRATEGIC PLAN NO. 1, 1C, 1D) t� r CIly MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2otl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute the attached agreement with' the Orange County School of the Arts (OCSA), which provides for the Santa Ana Police Department to staff one full time School Resource Officer to the academic institution, for a term not to exceed three -years beginning April 1, 2018 through March 31, 2021, for a total amount not to exceed $860,863.49, which includes an annual $50,000 contingency as part of the total amount, subject to non -substantive changes and approval by the City Manager and City Attorney. DISCUSSION Orange County School of the Arts (OCSA), a public charter school located in the heart of Santa Ana, provides a six-year comprehensive academic and conservatory arts program to over 2,180 7th through 12th grade students from over 100 cities throughout Southern California. As this is a charter school, the Santa Ana Unified School District Police do not provide a School Resource Officer (SRO) on this campus. OCSA wishes to augment its current security levels and enhance the safety of its students and faculty by entering into an agreement that will allow the Santa Ana Police Department to provide an SRO on the campus. This full time SRO will be responsible for providing security and crime prevention services in and around OCSA. The SRO will work directly with school administrators, teachers and students to cooperatively provide law enforcement resources coupled with the mentoring of students and the provision of law enforcement related presentations on youth issues. The proposed agreement provides for full cost recovery of the SRO as well as all equipment and necessary training. The annual not -to -exceed agreement amount of $286,954.50 covers all salary, benefits, fleet costs, uniforms, equipment, vehicle computer equipment, vehicle computer equipment data costs, and a $50,000 contingency for overtime and unanticipated expenses. The three-year agreement amount is $860,863.50. 25C-1 Agreement with Orange County School of the Arts March 20, 2018 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #1 Community Safety, Objective #1 (Modernize the Community Policing Philosophy to Improve Customer Service , Crime Prevention and Traffic/Pedestrian/Bicycle Safety), Strategy C (Deliver Crime Prevention / Community Policing Programs Based on the Community Policing Plan) and Strategy D (Establish and Implement a Plan to Partner with Community Service Organizations and Other Community Groups to Conduct Awareness, Intervention, and Prevention of Child Abuse, Domestic Violence and Driving Under the Influence of Alcohol and/or Drugs). FISCAL IMPACT Funds for this agreement are available in the Police Department Field Operations accounting unit (no. 01114420 — various). Revenues received from this agreement will be deposited in the Police Miscellaneous Reimbursement account (no. 01114002-57402). avid Valentin Chief of Police Santa Ana Police Department APPROVED AS TO FUNDS AND ACCOUNT: Francisco Gutierrez, LJ Executive Director Finance and Management Services Agency Exhibit: Agreement with Orange County School of the Arts 25C-2 SCHOOL RESOURCE OFFICER SERVICES AGREEMENT BETWEEN THE ORANGE COUNTY SCHOOL OF ARTS CHARTER SCHOOL AND THE CITY OF SANTA ANA THIS AGREEMENT is made and entered into this 20th day of March, 2018, by and between the Orange County School of the Arts (hereinafter "OSCA"), 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 (hereinafter "City"). THIS AGREEMENT shall govern all provisions for services which are to be delivered by the City to OCSA. This Agreement is based upon the following recitals and subject to the Terms and Conditions mutually agreed upon by the Parties, and each of them. RECITALS: The following recitals are a substantive portion of this Agreement. WHEREAS, OSCA desires to contract with the City to assign a Santa Ana Police officer to act in the role of a School Resource Officer to provide safety for students and staff on campus. WHEREAS, the City agrees to provide one full-time ("FTE") School Resource Officer (SRO) to OCSA. WHEREAS, City and the Santa Ana Police Department ("SAPD") represent that the assigned SRO has the necessary professional, expertise, qualifications, and capability to perform all of the duties and responsibilities assigned to an SRO. OCSA, in reliance on this representation desires to engage City to provide the Services as more fully described in Exhibit "A", attached to and made part of this Agreement. NOW THEREFORE, in consideration of the recitals, covenants, terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES AND DUTIES City and OCSA shall perform the Duties and Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Duties and Services shall be to the reasonable satisfaction of both parties. Work authorized by the City is limited to those specific duties and services set forth in Exhibit "A", and the City agrees to undertake no other duties and/or services for OCSA, under the auspices of this Agreement, whether directly, or indirectly, without prior written consent of City. OCSA agrees that it shall not have the authority to direct the officer's law enforcement activity and by way of this Agreement, the SRO is not relieved of his/her official duties as a police officer. 25C-3 2. COMPENSATION 2.1 This agreement is intended to reimburse the City for 100% of the cost of providing the School Resource Officer. The Personnel costs provided in the Table below are the maximum Personnel costs that will be invoiced Year 1. The compensation to be paid to City for performance of Services described in Exhibit "A", including both payment for professional services and reimbursable expenses shall not exceed the cost of one FTE officer. Such amount shall not exceed $286,954.50 per year, or $860,863.49 over the three-year term. An annual $50,000 contingency has been added for overtime and other expenses approved by both the City and OCSA. The City and OCSA will meet to develop an overtime strategy so that both the City and OCSA are in prior agreement regarding the circumstances under which the SRO will be scheduled to work overtime. City agrees to limit charges for service to amounts not to exceed the quotations provided by City to OCSA as set forth in this paragraph. All arrangements for specific work to be performed pursuant to this Agreement and arrangements for payment for such services shall be made solely between City and OCSA. Should City incur additional or unanticipated expenses, City shall provide notice to OCSA of such expenses and OCSA shall be obligated to pay for, or reimburse, said expenses. 2.2 Personnel costs may be lower and will be based on actual Personnel expenses for the officer assigned. Personnel costs include all salary, premiums, and cashouts provided to the employee through the POA MOU. In addition, Personnel costs include Workers Comp, Medicare, Retirement, Health, and Retiree Health benefits. Overtime will be invoiced at the actual overtime rate of the officer. The City and OCSA agree that the maximum Personnel costs can increase up to 5% for Year 2 and Year 3, only if the Personnel costs of the selected SRO exceed Year 1 Personnel costs as a result of salary and benefit increases. Fleet expenses include the monthly maintenance, depreciation, accidental repair and replacement charges, and fuel for a dedicated SRO vehicle. Uniform and Equipment includes all uniforms and equipment assigned to the SRO with charges spread over a seven year period. OCSA will pay one seventh of this total amount each year. Vehicle MDT Equipment charges include all MDT equipment installed in the SRO vehicle with charges spread over a seven year period. OCSA will pay one seventh of this total amount each year. Vehicle MDT Data charges include annual in -computer data charges ($38 per month) and GPS data charges ($10 per month). 2.3 Should City and OCSA agree to enter into a contract exceeding the scope of or differing from the services listed in Exhibit "A" attached hereto, such a contract - and any compensation due shall be the subject of a further and separate writing executed between OCSA and City. OCSA agrees and understands that the rate schedule as set in the table above, is subject to change on an annual basis to reflect actual costs and may only be changed subject to the written approval of the City Manager and OCSA's Board of Directors or designee. 2 25C-4 Personnel Fleet Uniforms and Equipment Vehicle MDT Equipment Vehicle MDT Data TABLE Annual 205,661.29 28,360.38 1,371.83 985.00 576.00 Monthly Quarterly 17,138.44 51,415.32 2,363.37 7,090.10 114.32 342.96 82.08 246.25 48.00 144.00 Contingency (Overtime/Other) 50,000.00 TBD TBD 286,954.50 19,746.21 59,23 8.62 Three -Year Agreement Total 860,863.49 INVOICES In order to request payment, City shall submit quarterly invoices to OCSA describing the services performed and the applicable charges (including the identification of personnel who performed the services, the rates and reimbursable expenses). The information on the City's payment requests shall be subject to verification by OCSA. City shall send all invoices to the OCSA address specified in Section 15 below. OCSA shall process and pay all invoices submitted within thirty (30) days of receipt. 3. TERM This Agreement shall commence on April 1, 2018 and terminate on March 31, 2021, with the option to extend for up to one (1) year until March 31, 2022, unless terminated earlier in accordance with Section 13, below. 4. SUBSTITUTE OFFICER In the event that the SRO is absent for any reason, the City shall provide a substitute SRO for the period of the absence and OCSA will pay any and all actual expenses associated with such substitution. The City and OCSA shall meet to develop guidelines for what hours OCSA wants covered in the event the SRO is on a short-term absence (e.g. sick, vacation, holiday, etc.) in order to minimize overtime expenses. 5. QUALIFICATIONS/STANDARD OF CARE AND CONTROL 5.1 All of the Services shall be performed by City or under the City's supervision. City represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel assigned has the sufficient skill and experience to perform the Services assigned to him/her. 5.2 SAPD will have authority for assignment, hours worked, supervision, wages and other terms and conditions of employment for the SRO assigned to OCSA. No part of this Agreement shall be deemed a restriction on the power of SAPD to keep the 25C-5 peace and utilize police officers, or any other designated employees, or equipment at such times and places and in such manner as SAPD, in the exercise of its judgment and discretion, may deem necessary for the carrying out of the duties of its office. While the SRO is working on OCSA property, he or she must report to and collaborate with the principal or designee. SRO's are employees of the City and are not employees of OCSA. 6. CONFIDENTIALITY 6.1 Neither party, shall, without written consent of the other, communicate confidential information, designated in writing or identified in this Agreement as such, to any third party and shall protect such information from inadvertent disclosure to any third party in the same manner that they protect their own confidential information, unless such disclosure is required in response to a validly issued subpoena or other process of law. Upon completion of this Agreement, the provisions of this paragraph shall continue to survive. 6.2 If pursuant to this Agreement with OCSA, City shares with OCSA personal information as defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), OCSA shall maintain reasonable and appropriate security procedures to protect that Personal Information and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. OCSA shall not use Personal Information for direct marketing purposes without CITY'S express consent. Similarly, City shall maintain reasonable and appropriate security procedures to protect personal information pertaining to OCSA students, including but not limited to compliance with the Family Education Rights and Privacy Act (FERPA). PERSONNEL AND OTHER CONFIDENTIAL RECORDS OCSA acknowledges that police officers are subject to the California Public Safety Officers' Bill of Rights, (Government Code sections 3300, et seq., "POBR" ). OCSA shall not take any action that may lead to punitive action against the SRO, but shall address its concerns to the City for handling consistent with POBR. 8. INDEPENDENT CONTRACTOR It is understood and agreed that in performing the Services under this Agreement, City, and any person employed by or contracted with City to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of OCSA. 0 25C-6 9. SUBCONTRACTING CITY shall not subcontract any portion of the work to be performed under this Agreement without prior written authorization of the City Manager or designee and OCSA. 10. ASSIGNMENT The parties agree that the expertise and experience of City are material considerations for this Agreement, City shall not assign or transfer any interest in this Agreement nor the performance of any of City's obligations hereunder without the prior written consent of the City Manager and OCSA. Consent to one assignment will not be deemed consent to any subsequent assignment. Any assignment made without the approval of the City Manager and OCSA will be 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. 11. INSURANCE 11.1 OCSA, at its sole cost and expense, shall obtain and maintain in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit `B". OCSA, and its contractors, if any, shall obtain a policy endorsement naming City as an additional insured under any general liability policy or policies. 11.2 All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact business in the State of California. Any and all contractors of CITY retained to perform services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 11.3 Certificates evidencing such insurance shall be filed with City concurrently with the execution of this Agreement. The certificates will be subject to the approval of the City Attorney and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Contract Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to OCSA, OCSA shall provide the Contract Manager written notice of the cancellation or modification within two (2) business days of the OCSA's receipt of such notice. OCSA shall be responsible for ensuring that current certificates evidencing the insurance are provided to City's Contract Manager during the entire term of this Agreement. 5 25C-7 11.4 The procuring of such required policy or policies of insurance will not be construed to limit OCSA's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, OCSA will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. 11.5 The City, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit `B". The City and its contractors, if any, shall obtain a policy endorsement naming OCSA as an additional insured under any general liability policy or policies. The City may self -insure to meet the requirement specified in Section 13. 11.6 Certificates evidencing such insurance shall be filed with OCSA concurrently with the execution of this Agreement. The certificates will be subject to the approval of OCSA's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to City, City shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days ofthe City's receipt of such notice. City shall be responsible for ensuring that current certificates evidencing the insurance are provided to OCSA's Purchasing Manager during the entire term of this Agreement. 12. MUTUAL INDEMNITY City shall defend, indemnify and hold harmless OCSA, its agents, officers and employees, for any liability for injury to or death of any person or damage to or loss of any property caused by a negligent or wrongful act or omission occurring in the performance of this Agreement by City, its SRO, officers, agents or employees and OCSA shall defend, indemnify and hold harmless City, its agents, officers and employees for any liability for injury or death of any person or damage to or loss of any property caused by a negligent or wrongful act or omission occurring in the performance of this Agreement by OCSA, its officers, agents, or employees. 13. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES 13.1 Either party may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving thirty (30) days prior written notice thereof to the other party. Upon receipt of such notice, CITY will immediately discontinue its performance of the Services. 0 25C-8 13.2 Upon such suspension or termination by either party, City will be paid for the services rendered to OCSA in accordance with the scope of services on or before the effective date (i.e., 30 days after giving notice) of suspension or termination. The following Sections will survive any expiration or termination of this Agreement: 13, 14, 15, 16, and 17. 13.3 No payment, partial payment, acceptance, or partial acceptance by City will operate as a waiver on the part of City of any of its rights under this Agreement. 13.4 In the event of a Termination or Suspension of the Agreement or Services, the City shall be entitled to receive and OCSA shall pay the City compensation for all services performed by City prior to receipt of such notice of termination. 14. NOTICES 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 telefacsimile or other mutually approved electronic mail/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 Telefacsimile (714) 647-6956 With courtesy copies to: City of Santa Ana Police Department Attention: Chief of Police City of Santa Ana 60 Civic Center Plaza, M-96 P.O. Box 1981 Santa Ana, California 92702 Telefacsimile (714) 647-6591 City Attorney City of Santa Ana 20 Civic Center Plaza, M29 P.O.Box1981 Santa Ana, California 92702 Telefacsimile (714) 647-6515 25C-9 M0ZC= Steven Wagner Chief Operations Officer Orange County School of the Arts Board of Trustees 1010 North Main Street Santa Ana, CA 92701 Telefacsimile (714) 664-0461 A party may change its address by giving notice in writing to the other party. Thereafter, 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 telefacsimile or e-mail, 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. 15. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and OCSA, 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 OCSA. 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 16. 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. 17. 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. E 25C-10 b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. c. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. [signature page to follow] 25C-11 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council CITY OF SANTA ANA RAUL GODINEZ, II City Manager APPROVED AS TO FORM: SONIA R. CARVALHO Cil By Tai A.S613LMIL l ILy f LLU111Gy ORANGE COUNTY SCHOOL OF THE ARTS CHARTER SCHOOL Steven Wagner Chief Operations Officer RECOMMENDED FOR APPROVAL: DAVID VALENTIN Chief of Police Attachments: EXHIBIT "A": SCOPE OF WORK EXHIBIT "B": INSURANCE REQUIREMENTS 10 25C-12 EXHIBIT A DUTIES AND RESPONSIBILITIES Goal. To assign a sworn Santa Ana Police Department officer to OCSA as a School Resource Officer ("SRO) who will act as a visible and active resource on campus for the safety and security of all students and staff. A. SRO. The responsibilities of the SRO will include but are not limited to the following: General Duties. a. Schedule. It is the intent of the parties that the SRO's duty hours shall conform to the school day. The SRO shall be present on campus an average of forty (40) hours per week, (five (5) day work week, eight (8) hours a day) between the hours of 7:00 a.m. and 4:00 p.m. on days school is in session and other times as maybe required by prior arrangement between OCSA and the City. It is the responsibility of the SRO to report schedule conflicts to OCSA. It is understood and agreed that time spent by the SRO attending court or official police training arising from and/or out of their employment as an SRO shall be considered as hours worked under this Agreement. In the event of an emergency, if the SRO is ordered by SAPD to leave school during normal duty hours as described above and perform other services for SAPD, then the time spent shall not be considered hours worked under this Agreement. In such an event, the compensation paid by OCSA to the City shall be reduced by the number of hours of SRO service not provided to OCSA or the hours shall be made up in a manner determined by mutual agreement of the parties. The parties intend that on days when school is not in session, the SRO will be reassigned from OCSA to the City. SAPD reserves the right to temporarily remove the SRO in the event that additional officers are needed during a critical incident or natural disaster. b. Attire. The SRO will wear the Santa Ana Police Department uniform with all normal accessories and equipment, including a Taser, OC and firearm. The SRO's Commander may allow an exception to this rule at his/her discretion based on investigatory or policing needs. C. Vehicles and Equipment. Except as otherwise provided in this Agreement, the City shall furnish all equipment which may be required to support the SRO. The City shall furnish the SRO with a vehicle which is equipped and maintained pursuant to City standards and policies, equipment for vehicles, and maintenance for the vehicles. OCSA shall not acquire any legal interest in the vehicle or equipment for the vehicle furnished by the City by virtue of this Agreement. d. Chain of Command. As an employee of SAPD, the SRO will be subject to the chain of command of the police department. 11 25C-13 e. Office. The SRO will have a dedicated office on campus where he/she will maintain all required records in a locked filing cabinet. The SRO will use a computer and printer owned by the City that will remain on campus so long as the Agreement is in full force and effect. f. Radio Communication. The SRO shall be provided school-based radio Communication equipment used by school administrators and staff. g. Miscellaneous. Any existing rights or benefits of personnel assigned under this agreement shall not be abridged, and remain in full effect. 2. Investigation and Enforcement of Crimes Committed on Campus. The SRO will engage in proactive policing on the school campus and will take appropriate enforcement action at any authorized co -curricular, extracurricular and non-academic events held on campus. The SRO shall intervene when it is necessary to prevent any criminal act and/or maintain a safe school environment. The SRO will assume primary responsibility for handling all calls for service at OCSA and will enforce state and local laws and ordinances. When necessary, the SRO will make arrests and/or issue citations in accordance with California state law and department policy. The SRO may make appropriate referrals to juvenile authorities or other governmental agencies. The SRO and SAPD will have the final decision on whether criminal charges shall be filed. The SRO shall, whenever practical, advise the principal before requesting additional enforcement assistance on campus and inform the principal of additional law enforcement responsibilities that may need to be undertaken. School authorities and the parents of any child involved shall be notified as quickly as possible when the SRO takes any direct law enforcement action involving a student, on -campus during school hours. In the event of a school code violation, the SRO will take the student to the principal's office for discipline to be meted out by school officials. Disciplining students is OCSA's responsibility. 3. Transporting Students. SRO's shall not transport students in an SAPD patrol vehicle except when a student is a victim of a crime, under arrest, or some other emergency circumstances exist. Students shall not be transported to any location unless it is determined that the student's parent, guardian or custodian is at the destination to which the student is being transported. The SRO shall not transport students in their personal vehicle. The SRO shall notify school personnel upon removing a student from campus. 4. CampusSafe Work together with OCSA staff to improve student safety on campus. Be highly visible throughout the campus, yet be unpredictable in their movements. For officer safety reasons, the SRO shall not establish any set routine, which allows predictability in their movements and their locations. The SRO will share information with OCSA's administration about persons and conditions that pertain to campus safety concerns. 12 25C-14 5. Coordination With Staff. Establish and maintain a partnership with school administrators, faculty and staff in order to provide for a safe school environment. Confer with the principal to develop plans and strategies to prevent and/or minimize dangerous situations on or near the campus involving students at school -related activities. When requested, be a resource for teachers, parents and students for conferences dealing with individual problems or questions. 6. Compliance With Policies and Laws. Comply with OCSA's rules and regulations pertaining to the operation of the school unless such compliance is not practicable due to exigent circumstances. The SRO shall comply with all laws, regulations and policies regarding access to confidential student records and detaining, investigating, and searching students on school premises, provided the SRO shall under no circumstances be required or expected to act in a manner inconsistent with the duties of a law enforcement officer. The use of confidential school records by the SRO shall be done with the principal's approval in a manner consistent with school policy. The SRO will abide by all applicable legal requirements concerning interviews or searches should it be necessary to conduct formal law enforcement interviews or searches with students or staff on property or at school functions under the jurisdiction of OCSA. The SRO will not be involved in searches conducted by school personnel unless a criminal act is involved or unless school personnel require assistance of the SRO because of exigent circumstances, such as the need for safety or to prevent flight. Formal investigations and arrests by law enforcement officials will be conducted in accordance with applicable legal requirements. At all times during the performance of this Agreement, the SRO shall adhere to and obey all of OCSA's rules and regulations pertaining to the operation of the school, unless otherwise authorized by school administration or unless such compliance is not practicable due to exigent circumstances. 7. Student and Staff Interaction. The SRO will be personable, approachable and available in order to mentor and build positive relationships with students and families. mentor students, act as a role model for students, and assist them in resolving conflicts. Provide information concerning questions about law enforcement topics to students and staff. 8. Access to Education Records. OCSA shall allow the SRO to inspect and if necessary, copy any public records maintained by OCSA to the extent allowed by law. If some information in a student's record is needed in an emergency to protect the health or safety of the student or others, school officials shall disclose to the SRO that information which is needed to respond to the emergency situation based on the seriousness of the threat to someone's health or safety, the necessity of the information to meet the emergency situation and the extent to which time is of the essence. If confidential student record information is needed by an SRO, but no emergency situation exists, the information may be released only as allowed by law. 13 25C-15 B. OCSA. OCSA's responsibilities include but are not limited to: I. Office. OCSA shall provide the SRO with a private, appropriately furnished and climate controlled office space on campus that can be secured and is reasonably acceptable to SAPD. This shall include but is not limited to a desk with drawers, chair, filing cabinet for files and records which can be properly locked and secured, and a telephone. 2. Parking Space. OCSA shall provide the SRO a dedicated parking space in the campus parking lot for the SRO's patrol vehicle. 3. School Email Address. OCSA shall provide the SRO his/her own school email address such that when a global email is sent to all school administrators and staff, the SRO will be in receipt of same. 4. Internet Access. OCSA shall provide internet access to the assigned SRO. 5. Notifications. When school personnel discover weapons, drugs, alcohol, or illegal contraband on school property, the SRO shall be notified as soon as reasonably possible. If no juvenile or criminal charges are to be filed, and no administrative action is to be taken by OCSA, the contraband shall be confiscated by the SRO according to SAPD's policy and properly disposed of. School personnel shall notify the SRO with the names of specific individuals who are not allowed on school property and shall notify the SRO of any anticipated parental problems resulting from disciplinary action taken against a student. OCSA will provide SAPD with updated copies of all laws, rules, regulations and school board policies applicable to employees of OCSA, including but not limited to laws, rules, regulations and policies regarding access to confidential student records and/or the detention, investigation and searching of students on school premises. OCSA will provide the same training and materials to the SRO as those provided to OCSA employees. 6. Cooperation. OCSA will work cooperatively with SAPD to make any needed adjustments to the SRO program throughout the year. OCSA shall assist City with the evaluation of the officer, however, the City shall have the responsibility to evaluate, manage, and supervise the assigned officer. OCSA will immediately notify City of any concerns regarding the SRO's level of service. 14 25C-16 EXHIBIT "B" INSURANCE REQUIREMENTS OCSA, AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-: VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AGREEMENT IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED BELOW: I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. OCSA MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. 15 25C-17 MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES WORKER'S COMPENSATION STATUTORY YES EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $2,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 EACH PERSON $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, EACH OCCURRENCE $1,000,000 $1,000,000 YES INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON -OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, NO INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF SANTA ANA IS TO BE NAMED AS AN ADDITIONAL INSURED: OCSA, AT ITS SOLE YES COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. OCSA MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. 15 25C-17 A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, OCSA SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NONPAYMENT OF PREMIUM, OCSA SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: CITY OF SANTA ANA 20 Civic Center Plaza, M29 P.O.Box 1981 Santa Ana, California 92702 Mo 25C-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: APPROVE PURCHASE AGREEMENTS FOR REAL PROPERTY ACQUISITION FOR WARNER AVENUE IMPROVEMENTS PHASE 1 (PROJECT NO. 14-6802) (NON -GENERAL FUND) (STRATEGIC PLAN NOS. 6, 1G; 3,2C) CIT ANAGER 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 Purchase Agreements for the real property acquisition and goodwill (if any) with the property owners listed below, subject to nonsubstantive changes approved by the City Manager and City Attorney: No. Property Owner Property commonly Acquisition Amount known as / location Type 1. Heung Soo Hong 209 E. Warner Ave. Full $510,000 (APN 403-142-14) 2. Delia Castillo 2246 S. Orange Ave. Full $442,000 (APN 403-142-17) Jorge and Alicia Castro; 2245 S. Orange Ave. 3. Ariel Castro; and Miguel A. (APN 403-143-12) Full $458,000 Castro 4 Lorena Basurto and 2246 S. Maple St. Full $445,000 Margarita Martinez (APN 403-143-15) DISCUSSION Warner Avenue is classified as an East-West Major Arterial in the City's General Plan Circulation Element (GPCE) and the County of Orange Master Plan of Arterial Highways (MPAH). Improving the 1 -mile Warner Avenue segment from Warner Avenue to Wright Street has been a long-term priority project that is being constructed in several phases. Improvements include widening from a four -lane roadway to a six - lane arterial to address safety issues and provide adequate vehicular capacity; and installing parkway, raised median landscape, storm drain, protected bike lanes, sound walls, street lights, and traffic signals. The City is acquiring properties for the development of Phase 1, bounded by Main Street and Oak Street, and construction is anticipated to begin in spring 2019. 2513-1 Purchase Agreements for Real Property Acquisition Warner Avenue Improvements Phase 1 March 20, 2018 Page 2 The property acquisitions are necessary to accommodate the street improvements for Phase 1 (Exhibit 1). The purchase offers were determined based on appraised values prepared by a California State licensed appraiser, and were accepted by the property owners. The compensation amounts listed above are incorporated in the attached agreements (Exhibits 2 through 4). 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 On September 1, 2015, City Council approved the Warner Avenue Final Environmental Impact Statement (SCH No. 2012101004). FISCAL IMPACT Funds in the amount of $1,855,000 are available in the Warner Avenue Improvements Project (No. 14- 6802) for expenditure in FY 2017-2018: $1,391,250 in the Measure M2 Competitive Street Fund (Account No. 03217663-66100), and $463,750 in the Transportation System Improvement Area E Fund (Account No. 03417660-66100), subject to nonsubstantive changes. Funds budgeted in Fiscal Year 2016-17 Capital Improvement Program in the Transportation Systems Improvement Area Fee E Fund will be carried forward as needed to complete the project. Edwin "William" Galvez, P.E. Acting Executive Director Public Works Agency FM/EW G/JG/KN APPROVED AS TO FUNDS & ACCOUNTS: Francisco Gutierrez .3Y a�D Executive Director Finance & Management Services Agency Exhibits: 1. Location Map 2. Purchase Agreement — APN 403-142-14 3. Purchase Agreement — APN 403-142-17 4. Purchase Agreement—APN 403-143-12 5. Purchase Agreement—APN 403-143-15 2501-2 4 (NTS) ORANGE AV CYPRESS AV T�® 016.031.33 016.031.50 016.031.01 016.031.30 WELL0S FFARGO -SUBACT romafT -ACOUIREO PROPERTIES-1X1..®dLI SANTA ANA TRLEI • PWA �• AR ROVEIAMM NOIWMNER 25D-3 �• IBI6.107.23i ,016.103.73, OAK ST ROUSSELLE ST 016.OW-22 DELHI PARK 016.090.21 M 1016.690-25 Q i --- L°gi �s al$� 3�m FOR WARNER AVENUE (PROD Cr NO.14MM 403.141.09i Z Marl ccQ w 03.143.061 Z ARCD GAS STATION I Q T�® 016.031.33 016.031.50 016.031.01 016.031.30 WELL0S FFARGO -SUBACT romafT -ACOUIREO PROPERTIES-1X1..®dLI SANTA ANA TRLEI • PWA �• AR ROVEIAMM NOIWMNER 25D-3 �• IBI6.107.23i ,016.103.73, OAK ST ROUSSELLE ST 016.OW-22 DELHI PARK 016.090.21 M 1016.690-25 Q i --- L°gi �s al$� 3�m FOR WARNER AVENUE (PROD Cr NO.14MM 25D-4 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA°), entered into on 2018, between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California (hereinafter °City" or "Buyer"), and, Heung Soo Hong, Trustee of the H.S.H. Trust dated August 25, 2003 (hereinafter "Seller"), regardless of number or gender; THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees to purchase from Seller, that certain real property (hereinafter "Said Real Property") legally described as follows: SEE EXHIBIT "A" — Legal Description ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (Commonly known as 209 East Warner Avenue, Santa Ana CA) (APN 403-142-14)' .. Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Conveyance by Seller. Seller agrees to convey said real property to City; by Grant Deed, at the office of Commonwealth Title Company at 4100 Newport Place Drive, Suite 120, Newport Beach, California Within sixty (60) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. Seller agrees that, except as may hereinafter be otherwise expressly provided, said real property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, including any'and all leasehold Interests), liens, clouds or defects in titre except those exceptions shown in Paragraph 15 below. Seller hereby warrants that the title to said real property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to said real property, with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non -monetary, general or specific, and Including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of Its right to the full and clear title herelnabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of said real property to City, within the time and at the place hereinabove specified for said conveyance of said real property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of Five Hundred Ten Thousand and no/100 Dollars ($510,000.00). Insuring the fitle of the City to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, and Including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required In this Agreement. 28yJI 18T 2 4. Escrow. City agrees to open an escrow at the office of Commonwealth Title Company, 4100 Newport Place Drive, Newport Beach, California, (the Escrow Agent) within five (5) days from and after the date on which the City has approved this Agreement. This Agreement constitutes the joint escrow Instructions of the City and the Seller and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow to close within sixty (60) days of the City's execution of this Agreement. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third parties in the Property that cannot be resolved in Escrow, then buyer may, at its option, request cancellation of escrow and this Agreement and return of any funds it has deposited into escrow. Thereupon, all obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such request Is made, Escrow shall be closed as soon as possible thereafter. Buyer shall be entitled to possession of the Property immediately upon close of Escrow. The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this Section 4 and of the General Provisions described in Exhibit "B" attached hereto and Incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparatiod fees, escrow fees and any other closing costs incidental to the conveying of said real property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under Section 4, Section 6, Section 8 and Exhibit "B" of the General Provisions of this Agreement. 5. Property Taxes. Such real property taxes, if any, on said real property for the fiscal year within which said real property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on said real property for said fiscal year which have been paid prior to the date the deed conveying said real property to City Is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying said real property to City is recorded and made uncollectibie if unpaid by reason of Section 5086 of the Revenue and Taxation Code of the State of California. To the extent that Seller has prepaid any taxes or assessments attributable to the Property; Seller shall be solely responsible for obtaining any -refund due thereon from the taxing authority. Upon written request, Buyer shall assist Seller, at Seller's sole cost, in obtaining said refund, If any; however, In no case shall Buyer credit or otherwise pay Seller for that refund, if any, through or outside of Escrow. All unpaid taxes on said real property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of said real property to City. 6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for -said real property, fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages, the total sum of Five Hundred Ten Thousand and no/100 Dollars ($510,000.00). City agrees to deposit said purchase price in escrow with the Escrow Agent within THIRTY (30) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay the same to Seller upon and after: a. Conveyance of said real property by Seller to City as hereinabove provided; b. Acceptance by City of a Grant Deed conveying said real property to City; 25D-6 c. Delivery to City of the policy of title Insurance as hereinabove provided; d. Recordation of the Deed conveying said real property to City. 7. Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property to City is recorded, quiet and peaceful possession of said real property, which shall be made free by Seller of all personal property. a. No later than fourteen days (14) days after close of escrow, Seller shall have removed all merchandise, inventory, equipment, personal property, and/or removable trade fixtures from the Property. Any merchandise, inventory, equipment, personal property, and/or removable trade fixtures at the Property as of three days after close of escrow shall be deemed abandoned by Seller on that date. b. If Seller does not vacate the Property by the above stated date, the Seller agrees to have the Court Immediately issue a Writ of Possession and/or Assistance, directing the Marshall or Sheriff of Orange County to take physical possession of the Property in favor of the City. Seller waives the right to have the City file an unlawful detainer action, as well as waive the right to any hearing or any requirements for an application by City to obtain the Writ of Possession and/or Assistance and waives any and all rights to object to the issuance of said Writ if Seller does not vacate the Property by fourteen (14) days after close of escrow. 8. Rental and Occupancy By Seller. Seller agrees to execute a complete, current and correct statement of rentals (Seller Estoppel) on a form furnished to Seller by City and deliver same to City within fifteen (15) days hereof with copies of any written leases or rental agreements attached. All rents will be prorated as of the close of escrow on the basis of a 30 -day month/360-day year consistent with that statement, subject to approval of City. Seller hereby agrees not to rent any units on the premises which are Vacant as of the date that this agreement is executed by seller, or which may be vacated by present occupants prior to close of escrow. In return, the City agrees to reimburse seller lost rentals incurred by keeping units vacant through the close of escrow. Seller agrees that any and all Tenant Security Deposits pertaining to the subject property collected by or in the possession of Seller prior to the close of escrow shall be transferred to and become the property of City during escrow. Seller hereby warrants that the rental statement referred to shall include the terms of all rental agreements, tenancies, and leases (written, unwritten, recorded, or unrecorded) and Seller agrees to hold City harmless from all liability from any such leases or agreements. Seller also warrants that there are no oral or written leases on all or any portion of the subject property exceeding a period of one month. 9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of the Seiler shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 10. Heirs, Assigns, Successors -In -Interest. This PSA, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective Parties hereto. 11. Time Is of the Essence. In all matters and things hereunder to be done and in all payments hereunder to be made, time is and shall be of the essence. 12. Just Compensation. Seller acknowledges and agrees that said purchase price is just compensation at fair market value for said real property and includes payment for fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages. 25D-7 13. Acknowledgment of Full Benefits and Release. A. By execution of this Agreement, Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for compensation for injury to the remainder ("severance damages"); precondemnation damages; claims for inverse condemnation loss of goodwill and/or lost profits; loss or Impairment of any "bonus value" attributable to any lease; damage to or loss of improvements pertaining to the realty; damage to or loss of machinery, fixtures, inventory, equipment and/or personal property; any right to repurchase, leaseback from Seller, or receive any financial gain from, the sale of any portion of the Property , or challenge Buyer's adoption of a resolution of necessity, pursuant to Code of Civil Procedure sections 1245.245; any right to receive any notices pursuant to Code of Civil Procedure section 1245.245; any right to enforce any other obligation placed upon Seller pursuant to Code of Civil Procedure sections 1245.245, 1263.025 and 1263.615; any other rights conferred upon Sellers pursuant to Code of Civil Procedure sections 1245.245 and 1263.615 and 1263.025; and attorney's fees and costs. It being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property by Buyer. This release shall survive the Close of Escrow. B. This Agreement arose out of Buyer's efforts to acquire the Property through its municipal authority. Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives (Including attorneys), and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained by Seller, or may be sustained by Seller, as a result of Buyer's efforts to acquire the Property or to construct the works of improvement thereon, or any preliminary steps thereto. This Agreement does not, and shall not be construed to, require Seller to Indemnify Buyer for damages which may arise as a result of Buyer's efforts to construct Improvements on the Property. This acknowledgment and release shall survive the Close of Escrow. 14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the City of Santa Ana 92701, County of Orange, State of California. The mailing address of the Seller is 6921 Nyanza Drive, Huntington Beach, CA 92647. 16. Exceptions. City agrees to accept title to said real property subject to the following: NONE. 16. Entire Agreement. It Is mutually agreed that the Parties hereto have herein set forth the whole of their Agreement. Performance of this PSA by City shall lay at rest, each, every, and all Issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i)'defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) 25D-8 defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean Water Act, (33 U.S.C. S1317), (x) defined as a hazardous waste pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S6901 91 sec. (42 U.S.C. S6903) or (A) defined as a 'hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. 59601 et sec. (42 U.S.C. S9601). 18. Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations Including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, Including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act,. and the rules, regulations, and ordinances of the city within which the subject property is located, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 19. Indemnity. Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (1) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This Indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal Injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business Income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 20. Contingency. It is understood and agreed between the parties hereto that the completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City herein. The execution of these documents and the delivery of same to Escrow Agent constitute said Acceptance and approval. 21. Modification and Amendment. This PSA may not be modified or amended except in writing signed by the Seller and City. 22. Partial invalidity. Any provision of this PSA that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all the remaining provisions of this PSA shall remain in full force. 23. Captions. Captions and headings in this PSA, including the title of this PSA, are for convenience only and are not to be considered in construing this PSA. 24. Governing Law. This PSA shall be governed by and construed in accordance with the laws of the State of California. 25D-9 25. No Reliance By One Party On The Other. Each party has received independent legal advice from its attorneys with respect to the advisability of executing this PSA and the meaning of the provisions hereof. The provisions of this PSA shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. 26. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other person or entity has or shall acquire any rights hereunder. 27. Duty To Cooperate Further. Each party hereby agrees that It shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this PSA, without cost. 28. Applicability of Agreement To Assignees. This PSA shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties to this PSA. 29. Authorlty to Execute Agreement. 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 PSA, 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. 30. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this PSA. 2501-10 IN WITNESS WHEREOF, the Parties hereto have executed this PSA on the date and year first written above. SELLER: Heung Soo Hong, Trustee of the H.S.H. Trust dated August 26, 2003 "-A— Date: --Sc,'^ - 3 .2018 By: Stanley Hong Its: Successor Trustee I uDate: 2� 2018 By: Steven Hong Its: Successor Trustee City/Buyer City of Santa Ana Date: 2018 Raul Godinez it City Manager Attest: Date: 2018 Maria D. Huizar City Clerk Approved as to Form: fi Date: 2 – 2018 Jo6h M. Funk -Assistant City Attorney FOR APPROVAL: Date: .2018 Fred Mousavipour Executive Director Public Works Agency 25D-11 EXHIBIT "N' LEGAL DESRIPTION All that certain real property situated in the County of Orange, State of California, described as follows: LOT 23 IN BLOCK D OF TRACT NO. 638, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON MAP THEREOF RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. Assessor's Parcel Number: 403-142-14 25D-12 EXHIBIT "B" (Commonwealth Land Title Company) GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the date on which Instruments referred to herein are filed for record. All adjustments are to be made on the basis of a 30 -day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the Issuance of a policy of title Insurance called for, is hereby authorized. There shall be no proration of any existing insurance policies in this escrow. You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved In this transaction upon request of such lenders, brokers or attorneys. Should you before or after close, of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you in connection with, or arising out of this escrow, Including, but without limiting the generality of the foregoing, a suit in interpleader brought by you. In the event you file a suit in interpleader, you shall Ipso facto be fully released and discharged from all obligations imposed upon you in this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any.amendment.of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as If It were the original, and all of which taken together shall constitute one and the same instruction. 2501-13 25D-14 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA"), entered into on� 2017, between the CITY OF SANTA ANA, a charter city and municipal corporation dul organized under the Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and, Delia Castillo, a married woman as her sole and separate property (hereinafter "Seller"), regardless of number or gender, THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees to purchase from Seller, that certain real property (hereinafter "Said Real Property") legally described as follows: SEE EXHIBIT "A" - Legal Description ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (Commonly known as 2246 South Orange Avenue, Santa Ana, -CA) (APN 403-142-17) Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Conveyance by Seller. Seller agrees to convey said real property to City, by Grant Deed, at the office of Commonwealth Title Company at 4100 Newport Place Drive, Suite 120, Newport Beach, California within sixty (60) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. Seller agrees that, except as may hereinafter be otherwise expressly provided, said real property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, including any and all leasehold interests), liens, clouds or defects in title except those exceptions shown in Paragraph 15 below. Seller hereby warrants that the title to said real property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to said real property, with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seiler agrees to deliver to City, concurrently with the conveyance of said real property to City, within the time and at the place hereinabove specified for said conveyance of said real property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of Four Hundred Forty -Two Thousand and no/100 Dollars ($442,000.00). insuring the title of the City to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in this Agreement. 4. Escrow. City agrees to open an escrow at the office of Commonwealth Title Company, 4100 Newport Place Drive, Newport Beach, California, (the Escrow Agent) within five (5) days from and after the date on which the City has approved this Agreement. This Agreement constitutes the joint escrow instructions of the City and the Seller and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow, Escrow to close within sixty (60) days of the City's execution of this Agreement. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third parties in the Property that cannot be resolved in Escrow, then buyer may, at its option, request cancellation of escrow and this Agreement and return of any funds it has deposited into escrow. Thereupon, all obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such request is made, Escrow shall be closed as soon as possible thereafter. Buyer shall be entitled to possession of the Property immediately upon close of Escrow. The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this Section 4 and of the General Provisions described in Exhibit "B" attached hereto and incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of said real property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations Imposed upon it under Section 4, Section 6, Section 8 and Exhibit "B" of the General Provisions of this Agreement. 5. Property Taxes. Such real property taxes, if any, on said real property for the fiscal year within which said real property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on said real property for said fiscal year which have been paid prior to the date the deed conveying said real property to City is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying said real property to City is recorded and made uncollectible if unpaid by reason of Section 5086 of the Revenue and Taxation Code of the State of California. To the extent that Seller has prepaid any faxes or assessments attributable to the Property; Seller shall be solely responsible for obtaining any refund due thereon from the taxing authority. Upon written request, Buyer shall assist Seller, at Seller's sole cost, in obtaining said refund, if any; however, in no case shall Buyer credit or otherwise pay Seller for that refund, if any, through or outside of Escrow. All unpaid taxes on said real property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of said real property to City. 6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for said real property, fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages, the total sum of Four Hundred Forty -Two Thousand and no/100 Dollars ($442,000.00). City agrees to deposit said purchase price in escrow with the Escrow Agent within THIRTY (30) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay the same to Seller upon and after: a. Conveyance of said real property by Seller to City as hereinabove provided; b. Acceptance by City of a Grant Deed conveying said real property to City; 25D-16 c. Delivery to City of the policy of title insurance as hereinabove provided; d. Recordation of the Deed conveying said real property to City. 7. Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property to City is recorded, quiet and peaceful possession of said real property, which shall be made free by Seller of all personal property. a. No later than fourteen days (14) days after close of escrow, Seller shall have removed all merchandise, inventory, equipment, personal property, and/or removable trade fixtures from the Property. Any merchandise, inventory, equipment, personal property, and/or removable trade fixtures at the Property as of three days after close of escrow shall be deemed abandoned by Seller on that date. b. If Seller does not vacate the Property by the above stated date, the Seller agrees to have the Court immediately issue a Writ of Possession and/or Assistance, directing the Marshall or Sheriff of Orange County to take physical possession of the Property in favor of the City. Seller waives the right to have the City file an unlawful detainer action, as well as waive the right to any hearing or any requirements for an application by City to obtain the Writ of Possession and/or Assistance and waives any and all rights to object to the issuance of said Writ if Seller does not vacate the Property by fourteen (14) days after close of escrow. 8. Rental and Occupancy By Seller. Seller agrees to execute a complete, current and correct statement of rentals (Seller Estoppel) on a form furnished to Seller by City and deliver same to City within fifteen (15) days hereof with copies of any written leases or rental agreements attached. All rents will be prorated as of the close of escrow on the basis of a 30 -day month/360-day year consistent with that statement, subject to approval of City. Seller hereby agrees not to rent any units on the premises which are vacant as of the date that this agreement is executed by seller, or which may be vacated by present occupants prior to close of escrow. In return, the City agrees to reimburse seller lost rentals incurred by keeping units vacant through the close of escrow. Seller agrees that any and all Tenant Security Deposits pertaining to the subject property collected by or in the possession of Seller prior to the close of escrow shall be transferred to and become the property of City during escrow. Seller hereby warrants that the rental statement referred to shall include the terms of all rental agreements, tenancies, and leases (written, unwritten, recorded, or unrecorded) and Seller agrees to hold City harmless from all liability from any such leases or agreements. Seller also warrants that there are no oral or written leases on all or any portion of the subject property exceeding a period of one month. 9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of the Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 10. Heirs, Assigns, Successors -in -Interest. This PSA, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective Parties hereto. 11. Time is of the Essence. In all matters and things hereunder to be done and in all payments hereunder to be made, time is and shall be of the essence. 12. Just Compensation. Seller acknowledges and agrees that said purchase price Is just compensation at fair market value for said real property and includes payment for fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages. 25D-17 13. Acknowledgment of Full Benefits and Release. A. By execution of this Agreement, Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for compensation for injury to the remainder ("severance damages"); precondemnation damages; claims for inverse condemnation; loss of goodwill and/or lost profits; loss or impairment of any "bonus value" attributable to any lease; damage to or loss of improvements pertaining to the realty; damage to or loss of machinery, fixtures, inventory, equipment and/or personal property; any right to repurchase, leaseback from Seller, or receive any financial gain from, the sale of any portion of the Property , or challenge Buyer's adoption of a resolution of necessity, pursuant to Code of Civil Procedure sections 1245.245; any right to receive any notices pursuant to Code of Civil Procedure section 1245.245; any right to enforce any other obligation placed upon Seller pursuant to Code of Civil Procedure sections 1245.245, 1263.025 and 1263.615; any other rights conferred upon Sellers pursuant to Code of Civil Procedure sections 1245.245 and 1263.615 and 1263.025; and attorney's fees and costs. It being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property by Buyer. This release shall survive the Close of Escrow. B. This Agreement arose out of Buyer's efforts to acquire the Property through its municipal authority. Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives (including attorneys), and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained by Seller, or may be sustained by Seller, as a result of Buyer's efforts to acquire the Property or to construct the works of improvement thereon, or any preliminary steps thereto. This Agreement does not, and shall not be construed to, require Seller to indemnify Buyer for damages which may arise as a result of Buyer's efforts to construct improvements on the Property. This acknowledgment and release shall survive the Close of Escrow 14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the City of Santa Ana 92701, County of Orange, State of California. The mailing address of the Seller is 2246 South Orange Avenue, Santa Ana, CA 92707. 15. Exceptions. City agrees to accept title to said real property subject to the following: NONE. 16. Entire Agreement. It is mutually agreed that the Parties hereto have herein set forth the whole of their Agreement. Performance of this PSA by City shall lay at rest, each, every, and all issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (Iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and 25D-18 Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean Water Act, (33 U.S.C. 81317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S6901 at sec. (42 U.S.C. S6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. S9601 at seg. (42 U.S.C. 89801). 18. Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city within which the subject property is located, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 19. Indemnity. Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (1) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (Ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 20. Contingency. It is understood and agreed between the parties hereto that the completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City herein. The execution of these documents and the delivery of same to Escrow Agent constitute said acceptance and approval. 21. Modification and Amendment. This PSA may not be modified or amended except in writing signed by the Seller and City. 22. Partial Invalidity. Any provision of this PSA that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all the remaining provisions of this PSA shall remain in full force. 23. Captions. Captions and headings in this PSA, including the title of this PSA, are for convenience only and are not to be considered in construing this PSA. 24. Governing Law. This PSA shall be governed by and construed in accordance with the laws of the State of California. 2501-19 25. No Reliance By One Party On The Other. Each party has received Independent legal advice from its attorneys with respect to the advisability of executing this PSA and the meaning of the provisions hereof. The provisions of this PSA shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. 26. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other person or entity has or shall acquire any rights hereunder. 27. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this PSA, without cost. 28. Applicability of Aureement To Assianses. This PSA shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties to this PSA. 29. Authority to Execute Agreement. 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 PSA, 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. 30. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this PSA. 25D-20 IN WITNESS WHEREOF, the Parties hereto have executed this PSA on the date and year first written above. SELLER: Delia Castillo, a married woman as her sole and separate property City/Buyer City of Santa Ana Raul Godinez II City Manager Attest: Maria D. Huizar City Clerk Approved as to Form: Cllr-' 71v, ]E. _-�" JoM M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL: Date: —/ _l , 2017 Date: .2018 Date: .2018 Date: Z — t , 2018 Date: 2018 Fred Mousavipour Executive Director Public Works Agency 2501-21 EXHIBIT "A" LEGAL DESRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE SOUTH HALF OF LOTS 26 AND 27 IN BLOCK D OF TRACT NO. 638, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS MAPS, RECORD OF ORANGE COUNTY, CALIFORNIA. Assessor's Parcel Number: 403-142-17 25D-22 EXHIBIT °B" (Commonwealth Land Title Company) GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the date on which instruments referred to herein are filed for record. All adjustments are to be made on the basis of a 30 -day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized. There shall be no proration of any existing insurance policies in this escrow. You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys. Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict Is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you in connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by you. In the event you file a suit in interpleader, you shall ipso facto be fully released and discharged from all obligations imposed upon you in this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. 25D-23 When recorded, please mail this instrument and tax statements to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by THE CITY OF SANTA ANA PER GOVERNMENT CODE SECTION 6103. SPACE ABOVE THIS LINE FOR RECORDER'S USE CANCEL TAXES I APPROVBDASTO PORMBYATTY. APPROVED BY DBIEMOR DESCRRTfON WffirTENBY DESCUMON CHEMM-011L I A.P.NOMER 403-142-17 NPI MAP NUMBER PROTECT NUMBER 2246 S. Ormp Av , SwaAVa, CA 91707 DPSDNUhIDBR GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which Is hereby acknowledged, Delia Castillo, a married woman as her sole and separate property Do Hereby Grant to the CITY OF SANTA ANA, a charter City and municipal corporation duly organized under the Constitution and laws of the State of California, for public roadway purposes, all that real property in the City of Santa Ana, Orange County, State of California, located at 2245 South Orange Avenue, described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF; Dated : By: Delia Castillo 25D-24 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA"), entered into on 2018, between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and, Jorge Castro and Alicia -Castro ,"husband and wife, and Ariel Castro, a single man, and Miguel A. Castro, a single man, all as joint tenants (hereinafter "Seller"), regardless of number or gender; THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees to purchase from Seller, that certain real property (hereinafter "Said Real Property") legally described as follows: SEE EXHIBIT "A" — Legal Description ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (Commonly known as 2245 -South -Orange Avenue, Santa Ana, CA) ,(APN 403-143-12) Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Conveyance by Seller. Seller agrees to convey said real property to City, by Grant Deed, at the office of Commonwealth Title Company at 4100 Newport Place Drive, Suite 120, Newport Beach, California within sixty (60) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. Seller agrees that, except as may hereinafter be otherwise expressly provided, said real property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, including any and all leasehold interests), liens, clouds or defects in title except those exceptions shown in Paragraph 15 below. Seller hereby warrants that the title to said real property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to said real property, with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of said real property to City, within the time and at the place hereinabove specified for said conveyance of said real property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of Four Hundred Fifty Eight Thousand and no/100 Dollars ($458,000.00). insuring the title of the City to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in this Agreement. 4. Escrow. City agrees to open an escrow at the office of Commonwealth Title Company, 4100 Newport Place Drive, Newport Beach, California, (the Escrow Agent) within five (5) days from and after the date on which the City has approved this Agreement. This Agreement constitutes the joint escrow instructions of the City and the Seller and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow to close within sixty (60) days of the City's execution of this Agreement. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third parties in the Property that cannot be resolved in Escrow, then buyer may, at its option, request cancellation of escrow and this Agreement and return of any funds it has deposited into escrow. Thereupon, all obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such request is made, Escrow shall be closed as soon as possible thereafter. Buyer shall be entitled to possession of the Property immediately upon close of Escrow. The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this Section 4 and of the General Provisions described in Exhibit "B" attached hereto and incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of said real property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under Section 4, Section 6, Section 8 and Exhibit "B" of the General Provisions of this Agreement. 5. Property Taxes. Such real property taxes, if any, on said real property for the fiscal year within which said real property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on said real property for said fiscal year which have been paid prior to the date the deed conveying said real property to City is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying said real property to City is recorded and made uncollectible if unpaid by reason of Section 5086 of the Revenue and Taxation Code of the State of California. To the extent that Seller has prepaid any taxes or assessments attributable to the Property; Seller shall be solely responsible for obtaining any refund due thereon from the taxing authority. Upon written request, Buyer shall assist Seller, at Seller's sole cost, in obtaining said refund, if any; however, in no case shall Buyer credit or otherwise pay Seller for that refund, if any, through or outside of Escrow. All unpaid taxes on said real property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of said real property to City. 6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for said real property, fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages, the total sum of Four Hundred Fifty Eight Thousand and no/100 Dollars ($458,000.00). City agrees to deposit said purchase price in escrow with the Escrow Agent within THIRTY (30) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay the same to Seller upon and after: a. Conveyance of said real property by Seller to City as hereinabove provided; b. Acceptance by City of a Grant Deed conveying said real property to City; 25D-26 c. Delivery to City of the policy of title insurance as hereinabove provided; d. Recordation of the Deed conveying said real property to City. 7. Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property to City is recorded, quiet and peaceful possession of said real property, which shall be made free by Seller of all personal property. a. No later than fourteen days (14) days after close of escrow, Seller shall have removed all merchandise, inventory, equipment, personal property, and/or removable trade fixtures from the Property. Any merchandise, inventory, equipment, personal property, and/or removable trade fixtures at the Property as of three days after close of escrow shall be deemed abandoned by Seller on that date. b. If Seller does not vacate the Property by the above stated date, the Seller agrees to have the Court immediately issue a Writ of Possession and/or Assistance, directing the Marshall or Sheriff of Orange County to take physical possession of the Property in favor of the City. Seller waives the right to have the City file an unlawful detainer action, as well as waive the right to any hearing or any requirements for an application by City to obtain the Writ of Possession and/or Assistance and waives any and all rights to object to the issuance of said Writ if Seller does not vacate the Property by fourteen (14) days after close of escrow. 8. Rental and Occupancy By Seller. Seller agrees to execute a complete, current and correct statement of rentals (Seller Estoppel) on a form furnished to Seller by City and deliver same to City within fifteen (15) days hereof with copies of any written leases or rental agreements attached. All rents will be prorated as of the close of escrow on the basis of a 30 -day month/360-day year consistent with that statement, subject to approval of City. Seller hereby agrees not to rent any units on the premises which are vacant as of the date that this agreement is executed by seller, or which may be vacated by present occupants prior to close of escrow. In return, the City agrees to reimburse seller lost rentals incurred by keeping units vacant through the close of escrow. Seller agrees that any and all Tenant Security Deposits pertaining to the subject property collected by or in the possession of Seller prior to the close of escrow shall be transferred to and become the property of City during escrow. Seller hereby warrants that the rental statement referred to shall include the terms of all rental agreements, tenancies, and leases (written, unwritten, recorded, or unrecorded) and Seller agrees to hold City harmless from all liability from any such leases or agreements. Seller also warrants that there are no oral or written leases on all or any portion of the subject property exceeding a period of one month. 9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of the Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 10. Heirs, Assigns, Successors -in -Interest. This PSA, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective Parties hereto. 11. Time is of the Essence. In all matters and things hereunder to be done and in all payments hereunder to be made, time is and shall be of the essence. 12. Just Compensation. Seller acknowledges and agrees that said purchase price is just compensation at fair market value for said real property and includes payment for fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages. 25D-27 13. Acknowledgment of Full Benefits and Release. A. By execution of this Agreement, Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for compensation for injury to the remainder ("severance damages"); precondemnation damages; claims for inverse condemnation; loss of goodwill and/or lost profits; loss or impairment of any "bonus value° attributable to any lease; damage to or loss of improvements pertaining to the realty; damage to or loss of machinery, fixtures, inventory, equipment and/or personal property; any right to repurchase, leaseback from Seller, or receive any financial gain from, the sale of any portion of the Property , or challenge Buyer's adoption of a resolution of necessity, pursuant to Code of Civil Procedure sections 1245.245; any right to receive any notices pursuant to Code of Civil Procedure section 1245.245; any right to enforce any other obligation placed upon Seller pursuant to Code of Civil Procedure sections 1245.245, 1263.025 and 1263.615; any other rights conferred upon Sellers pursuant to Code of Civil Procedure sections 1245.245 and 1263.615 and 1263.025; and attorney's fees and costs. It being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property by Buyer. This release shall survive the Close of Escrow. B. This Agreement arose out of Buyer's efforts to acquire the Property through its municipal authority. Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives (including attorneys), and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained by Seller, or may be sustained by Seller, as a result of Buyer's efforts to acquire the Property or to construct the works of improvement thereon, or any preliminary steps thereto. This Agreement does not, and shall not be construed to, require Seller to indemnify Buyer for damages which may arise as a result of Buyer's efforts to construct improvements on the Property. This acknowledgment and release shall survive the Close of Escrow 14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the City of Santa Ana 92701, County of Orange, State of California. The mailing address of the Seller is 2245 South Orange Avenue, Santa Ana, CA 92707. 15. Exceptions. City agrees to accept title to said real property subject to the following: NONE. 16. Entire Agreement. It is mutually agreed that the Parties hereto have herein set forth the whole of their Agreement. Performance of this PSA by City shall lay at rest, each, every, and all issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or"restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and 25D-28 Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean WaterAct, (33 U.S.C. S1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S6901 et seg. (42 U.S.C. S6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. S9601 et sec. (42 U.S.C. S9601). 18. Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city within which the subject property is located, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 19. Indemnity. Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (1) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 20. Contingency. It is understood and agreed between the parties hereto that the completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City herein. The execution of these documents and the delivery of same to Escrow Agent constitute said acceptance and approval. 21. Modification and Amendment. This PSA may not be modified or amended except in writing signed by the Seller and City. 22. Partial Invalidity. Any provision of this PSA that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all the remaining provisions of this PSA shall remain in full force. 23. Captions. Captions and headings in this PSA, including the title of this PSA, are for convenience only and are not to be considered in construing this PSA. 24. Governing Law. This PSA shall be governed by and construed in accordance with the laws of the State of California. 25D-29 25. No Reliance By One Party On The Other. Each party has received independent legal advice from its attorneys with respect to the advisability of executing this PSA and the meaning of the provisions hereof. The provisions of this PSA shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. 26. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other person or entity has or shall acquire any rights hereunder. 27. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this PSA, without cost. 28. Applicability of Agreement To Assignees. This PSA shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties to this PSA. 29. Authority to Execute Agreement. 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 PSA, 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. 30. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this PSA. 25D-30 IN WITNESS WHEREOF, the Parties hereto have executed this PSA on the date and year first written above. SELLER: Jorge Castro and Alicia Castro, husband and wife, and Ariel Castro, a single man, and Miguel A. Castro, a single man, all as joint tenants Date: 2018 Jorge Cagiro Date: B .12018 Alicia Castro l_1.1''tL �� Date: O j - r; 2018 Ariel Castro Cy4.5TY=.Ci Date:02018 Miguel A. Castro City/Buyer City of Santa Ana Date: 12018 Raul Godinez II City Manager Attest: Date: 2018 Maria D. Huizar City Clerk Approved as to Form: 0,44 111--, ". -fa-� JqQ M. Funk sistant City Attorney RECOMMENDED FOR APPROVAL: Date: '^2--S" , 2018 Date: 12018 Fred Mousavipour Executive Director Public Works Agency 25D-31 EXHIBIT "A" LEGAL DESRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE SOUTH ONE-HALF OF LOTS 21 AND 22, IN BLOCK F OF TRACT NO. 638, FURMAN TRACT NO. 1, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP THEREOF RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY. Assessor's Parcel Number: 403-143-12 2501-32 EXHIBIT "B" (Commonwealth Land Title Company) GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the date on which instruments referred to herein are filed for record. All adjustments are to be made on the basis of a 30 -day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized. There shall be no proration of any existing insurance policies in this escrow. You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys. Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you in connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by you. In the event you file a suit in interpleader, you shall ipso facto be fully released and discharged from all obligations imposed upon you in this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. 25D-33 25D-34 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA"), entered into on , 2018, between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and, Lorena Basurto, a single woman and Margarita Martinez, a married woman as her sole and separate property, as joint tenants (hereinafter "Seller"), regardless of number or gender; THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees to purchase from Seller, that certain real property (hereinafter "Said Real Property") legally described as follows: SEE EXHIBIT "A" — Legal Description ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (Commonly known as 2246 South Maple Street, Santa Ana CA) (APN 403-143-15) Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Conveyance by Seller. Seller agrees to convey said real property to City, by Grant Deed, at the office of Commonwealth Title Company at 4100 Newport Place Drive, Suite 120, Newport Beach, California within sixty (60) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. Seller agrees that, except as may hereinafter be otherwise expressly provided, said real property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, including any and all leasehold interests), liens, clouds or defects in title except those exceptions shown in Paragraph 15 below. Seller hereby warrants that the title to said real property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to said real property; with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of said real property to City, within the time and at the place hereinabove specified for said conveyance of said real property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of Four Hundred Forty -Five Thousand and no/100 Dollars ($445,000.00). insuring the title of the City to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, and i c ' ig gand all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in this Agreement. 4. Escrow. City agrees to open an escrow at the office of Commonwealth Title Company, 4100 Newport Place Drive, Newport Beach, California, (the Escrow Agent) within five (5) days from and after the date on which the City has approved this Agreement. This Agreement constitutes the joint escrow instructions of the City and the Seller and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow to close within sixty (60) days of the City's execution of this Agreement. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third parties in the Property that cannot be resolved in Escrow, then buyer may, at its option, request cancellation of escrow and this Agreement and return of any funds it has deposited into escrow. Thereupon, all obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such request is made, Escrow shall be closed as soon as possible thereafter. Buyer shall be entitled to possession of the Property immediately upon close of Escrow. The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of.this Section 4 and of the General Provisions described in Exhibit "B" attached hereto and incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of said real property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under Section 4, Section 6, Section 8 and Exhibit "B" of the General Provisions of this Agreement. 5. Property Taxes. Such real property taxes, if any, on said real property for the fiscal year within which said real property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on said real property for said fiscal year which have been paid prior to the date the deed conveying said real property to City is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying said real property to City is recorded and made uncollectible if unpaid by reason of Section 5086 of the Revenue and Taxation Code of the State of California. To the extent that Seller has prepaid any taxes or assessments attributable to the Property; Seller shall be solely responsible for obtaining any refund due thereon from the taxing authority. Upon written request, Buyer shall assist Seller, at Seller's sole cost, in obtaining said refund, if any; however, in no case shall Buyer credit or otherwise pay Seller for that refund, if any, through or outside of Escrow. 2501-36 All unpaid taxes on said real property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of said real property to City. 6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for said real property, fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages, the total sum of Four Hundred Forty -Five Thousand and no/100 Dollars ($445,000.00). City agrees to deposit said purchase price in escrow with the Escrow Agent within THIRTY (30) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay the same to Seller upon and after: a. Conveyance of said real property by Seller to City as hereinabove provided; b. Acceptance by City of a Grant Deed conveying said real property to City; c. Delivery to City of the policy of title insurance as hereinabove provided; d. Recordation of the Deed conveying said real property to City. 7. Possession. Seller agrees to deliver to property to City is recorded, quiet and peaceful made free by Seller of all personal property. City, on the date the Deed conveying said real possession of said real property, which shall be No later than fourteen days (14) days after close of escrow, Seller shall have removed all merchandise, inventory, equipment, personal property, and/or removable trade fixtures from the Property. Any merchandise, inventory, equipment, personal property, and/or removable trade fixtures at the Property as of three days after close of escrow shall be deemed abandoned by Seller on that date. b. If Seller does not vacate the Property by the above stated date, the Seller agrees to have the Court immediately issue a Writ of Possession and/or Assistance, directing the Marshall or Sheriff of Orange County to take physical possession of the Property in favor of the City. Seller waives the right to have the City file an unlawful detainer action, as well as waive the right to any hearing or any requirements for an application by City to obtain the Writ of Possession and/or Assistance and waives any and all rights to object to the issuance of said Writ if Seller does not vacate the Property by fourteen (14) days after close of escrow. S. Rental and Occupancy By Seller. Seller agrees to execute a complete, current and correct statement of rentals (Seller Estoppel) on a form furnished to Seller by City and deliver same to City within fifteen (15) days hereof with copies of any written leases or rental agreements attached. All rents will be prorated as of the close of escrow on the basis of a 30 - day month/360-day year consistent with that statement, subject to approval of City. Seller hereby agrees not to rent any units on the premises which are vacant as of the date that this agreement is executed by seller, or which may be vacated by present occupants prior to close of escrow. In return, the City agrees to reimburse seller lost rentals incurred by keeping units vacant through the close of escrow. Seller agrees that any and all Tenant Security Deposits pertaining to the subject property collected by or in the possession of Seller prior to the close of escrow shall be transferred to and become the property of City during escrow. Seller hereby warrants that the rental statement referred to shall include the terms of all rental agreements, tenancies, and leases (written, unwritten, recorded, or unrecorded) and Seller agrees to hold City harmless from all liability -from any such leases or agreements. Seller also warrants that there are no oral or written leases on all or any portion of the subject property exceeding a period of one month. 9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of the Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 10. Heirs, Assigns, Successors -in -Interest. This PSA, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective Parties hereto. 11. Time is of the Essence. In all matters and things hereunder to be done and in all payments hereunder to be made, time is and shall be of the essence. 12. Just Compensation. Seller acknowledges and agrees that said purchase price is just compensation at fair market value for said real property and includes payment for fixtures & equipment (improvements pertaining to the realty), goodwill (if any), and severance damages. 13. Acknowledgment of Full Benefits and Release. A. By execution of this Agreement, Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for compensation for injury to the remainder ("severance damages"); precondemnation damages; claims for inverse condemnation; loss of goodwill and/or lost profits; loss or impairment of any "bonus value" attributable to any lease; damage to or loss of improvements pertaining to the realty; damage to or loss of machinery, fixtures, inventory, equipment and/or personal property; any right to repurchase, leaseback from Seller, or receive any financial gain from, the sale of any portion of the Property , or challenge Buyer's adoption of a resolution of necessity, pursuant to Code of Civil Procedure sections 1245.245; any right to receive any notices pursuant to Code of Civil Procedure section 1245.245; any right to enforce any other obligation placed upon Seller pursuant to Code of Civil Procedure sections 1245.245, 1263.025 and 1263.615; any other rights conferred upon Sellers pursuant to Code of Civil Procedure sections 1245.245 and 1263.615 and 1263.025; and attorney's fees and costs. It being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property by Buyer. This release shall survive the Close of Escrow. B. This Agreement arose out of Buyer's efforts to acquire the Property through its municipal authority. Seller, on behalf of himself, his heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives (including attorneys), and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained by Seller, or may be sustained by Seller, as a result of Buyer's efforts to acquire the Property or to construct the works of improvement thereon, or any preliminary steps thereto. This Agreement does not, and shall not be construed to, require Seller to indemnify Buyer for damages which may arise as a result of Buyer's efforts to construct improvements on the Property. This acknowledgment and release shall survive the Close of Escrow. 2501-38 14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the City of Santa Ana 92701, County of Orange, State of California. The mailing address of the Seller is 2246 South Maple Street, Santa Ana, CA 92707. 15. Exceptions. City agrees to accept title to said real property subject to the following: NONE. 16. Entire Agreement. It is mutually agreed that the Parties hereto have herein set forth the whole of their Agreement. Performance of this PSA by City shall lay at rest, each, every, and all issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any Previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material' shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division, 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean Water Act, (33 U.S.C. S1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S6901 et sem. (42 U.S.C. S6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. S9601 et sec. (42 U.S.C. S9601). 18. Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city within which the subject property is located, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 19. Indemnity. Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding "tAdamage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 20. Contingency. It is understood and agreed between the parties hereto that the completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City herein. The execution of these documents and the delivery of same to Escrow Agent constitute said acceptance and approval. 21. Modification and Amendment. This PSA may not be modified or amended except in writing signed by the Seller and City. 22. Partial Invalidity. Any provision of this PSA that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all the remaining provisions of this PSA shall remain in full force. 23. Captions. Captions and headings in this PSA, including the title of this PSA, are for convenience only and are not to be considered in construing this PSA. 24. Governing Law. This PSA shall be governed by and construed in accordance with the laws of the State of California. 25. No Reliance By One Party On The Other. Each party has received independent legal advice from its attorneys with respect to the advisability of executing this PSA and the meaning of the provisions hereof. The provisions of this PSA shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. 26. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other person or entity has or shall acquire any rights hereunder. 27. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this PSA, without cost. 28. Applicability of Agreement To Assignees. This PSA shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties to this PSA. 29. Authority to Execute Agreement. 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 PSA, and shall indemnify�jlyy deluding 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. 30. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this PSA. 2501-41 IN WITNESS WHEREOF, the Parties hereto have executed this PSA on the date and year first written above. SELLER: Lorena Basurto, a single woman and Margarita Martinez, a married woman as her sole and separate property, as joint tenants Date: — .2018 By:Loren `'\(jtctClr��t�\Clc�ir��Z Date: [t—b°I-1g ,2018 By: Margarita Martinez City/Buyer City of Santa Ana Date: 2018 Raul Godinez II City Manager Attest: Date: .2018 Maria D. Huizar City Clerk Approved as to Form: 04, - Date: l l 2018 J6Yn,M.Funk Assistant City Attorney RECOMMENDED FOR APPROVAL: Date: 2018 Fred Mousavipour Executive Director Public Works Agency 2501-42 EXHIBIT "A" LEGAL DESRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE SOUTH HALF OF LOTS 25 AND 26 IN BLOCK F OF TRACT NO. 638, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Assessor's Parcel Number: 403-143-15 2501-43 EXHIBIT "B" (Commonwealth Land Title Company) GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrows check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the date on which instruments referred to herein are filed for record. All adjustments are to be made on the basis of a 30 -day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized. There shall be no proration of any existing insurance policies in this escrow. You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys. Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you in connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by you. In the event you file a suit in interpleader, you shall ipso facto be fully released and discharged from all obligations imposed upon you in this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you Will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. 2501-44 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: APPROVE AN AGREEMENT WITH PLACEWORKS TO PROVIDE AN ENVIRONMENTAL ASSESMENT, RECREATIONAL VALUE ASSESSMENT AND NATIONAL PARK SERVICE DOCUMENTS FOR A LAND EXCHANGE, RELATED TO CENTENNIAL PARK (STRATEGIC PLAN NO. 5, 4A) L(3_06�__J Cty 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 Authorize the City Manager and Clerk of the Council to execute an agreement with Placeworks in an amount not -to -exceed $134,126, which includes a contingency of $14,022, for a term from March 21, 2018 through December 31, 2018 to provide an environmental assessment, recreational value assessment and additional documents required by the National Park Service for review of a land exchange between the Rancho Santiago Community College site and various park sites, subject to non -substantive changes approved by the City Manager and City Attorney. The City currently licenses 2.6 acres of city property at Centennial Park to Santa Ana College. The deed condition from the Department of the Interior indicates the property is to be used for recreational purposes. In order for the College to continue using the site under a license a land conversion needs to be approved by the National Park Service to remove the deed condition of the 2.6 acres and transfer it to the three new vacant sites (Sixth/Lacy, Raitt/Myrtle and Pacific Electric Park) totaling 2.89 acres. Part of the requirement is to complete a recreational value assessment of the three new sites in comparison to the site at Centennial Park. On August 15, 2017, the City of Santa Ana entered into an agreement with Placeworks to provide the required assessment. As the City and consultant have proceeded on the assessment, additional discussions have been held with the National Park Services (NPS). NPS has provided additional feedback and is requiring additional information to be incorporated in the final document that is presented to NPS for consideration of the land exchange. The additional documents requested are environmental assessments of the park sites on Sixth Street/Lacy Street and Raiff Street/Myrtle Street. They have also requested that the environmental and recreational assessments include an evaluation of the parking area used by Rancho Santiago 25E-1 Agreement with PlaceWorks to provide an Environmental Assessment Recreational Value Assessment and other Documents for the National Park Service March 20, 2018 Page 2 Community College to determine if additional land is needed to be considered an equal exchange. Additionally, the NPS has requested the final document incorporate all the prior assessments into the new document for one all-encompassing document for NPS to review. Therefore, City Staff is requesting to enter into an agreement with Placeworks in order to complete the work that remained from the previous agreement and to incorporate the additional materials requested by the National Park Service. Costs associated with this project will be reimbursed by Santa Ana College. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy A (Support the design and construction of parks to provide increased open space and opportunities for recreation throughout the city, construct the Roosevelt Walker Park and Community Center, and develop concepts and proposals for the Library Park in Civic Center and Centennial Santa Ana River Eco -Park). FISCAL IMPACT Costs associated with this project will be reimbursed by Santa Ana College. Funds are available in the following account for the specified year: Unit FY17/18 18/19 Acquisition and Development (no. 3011 Gerardo Mouet Executive Director Parks, Recreation and Community Services Agency EXHIBIT: 1. Agreement 54,126 APPROVED AS TO FUNDS AND ACCOUNT: Francisco Gutierrez Executive Director Finance and Management Services Agency 25E-2 AGREEMENT WITH PLACEWORKS TO PROVIDE RECREATIONAL VALUE ASSESSMENT TO CONVERT CITY PROPERTIES INTO RECREATIONAL USE SITES THIS AGREEMENT is made and entered into this 20th day of March, 2018 by and between P1aceWorks, Inc., a California corporation ("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. The City and Consultant agreed to terms for Agreement #A-2017-218 on August 15, 2017, to provide recreational value assessment in connection with land conversion of City properties of various types for the purpose of converting available properties into recreational use sites. B. Agreement #A-2017-218 was presented to the Council as part of an RFP selection process by the Parks, Recreation and Community Services Agency that was issued on May 18, 2017. The term of Agreement A-2017-218 was for a term from August 16, 2017 through January 31, 2018. C. The parties intend to enter into a new agreement because Agreement A-2017-218 did not provide for an extension of the term and the services provided pursuant to that Agreement have not been completed. In addition, Consultant will also provide a NEPA and CEQA assessment for the purpose of converting available properties into recreational use sites. D. The environmental assessments of proposed park sites have been requested by the National Park Service for consideration of a potential land exchange with the National Park Service involving 2.6 acres of City property at Centennial Park licensed to Santa Ana College. E. 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 consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terns and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall complete the recreational value assessment remaining under the previous Agreement A-2017-218. The attached budget status update for the original Agreement is attached hereto as Exhibit A and incorporated herein by reference. Consultant will also perform the environmental assessments including NEPA and CEQA analysis that are described in Exhibit B incorporated herein by reference. Page 1 of 8 25E-3 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Exhibit C. The total amount to be expended during the term of this Agreement shall not exceed -$134,126. --The sum of this amount includes unused monies from Agreement A-2017-218 in the amount of $25,833 plus $4,595 in remaining contingency funds. Additional funds in the amount of $94,271 plus a 10% contingency in the amount of $9,427 equal the sum noted in this Section. b. Payment by City shall be made within 45 days (forty-five) 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 which may reasonably be expected by City. klENIl Y I,mo This Agreement shall commence on the date fust written above and continue until December 31; 2018; unless terminated earlier in accordance with Section 16, below. 4. INDEPENDENT CONTRACTOR 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 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"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor 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. Page 2 of 8 25E-4 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, 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, and representatives as additional insured(s); (b) be primary and not contributory 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 provisions of Section 3700 of the 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: 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 canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. iv. Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this Agreement, the amounts provided by the certificates of insurance shall be incorporated by reference into the Agreement. Page 3 of 8 25E-5 V. 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. 7. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, 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, its subcontractors, agents, employees, or other persons acting on its 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 out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, 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 Page 4 of 8 25E-6 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. 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 law; 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 interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. DISCRIMINATION Consultant 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. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, 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 Page 5 of 8 25E-7 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 is 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. 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 of the Parks, Recreation and Community Services Agency may require Consultant to deliver to the City all work product(s) 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. 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. 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. Page 6 of 8 25E-8 18. 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. 19. 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. 20. 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 — Gerardo Mouet Sonia R. Carvalho Parks, Recreation and Community Services City Attomey Agency City of Santa Ana City of Santa Ana 20 Civic Center Plaza (M-29) 20 Civic Center Plaza (M-23) P.O. Box 1988 P.O. Box 1988 Santa Ana, California 92702 Santa Ana, California 92702 Fax: 714- 647-6515 Fax 714- 647-4211 Page 7 of 8 25E-9 To Consultant: P1aceWorks, Inc. Attn: Isabelle Minn, Principal 3 MacArthur Place Suite 1100 Santa Ana, CA 92707 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. 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. awia K-. Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: Gerardo Monet Executive Director Parks, Recreation and Community Services Agency CITY OF SANTA ANA Raul Godinez II City Manager CONSULTANT: By: Title: Page 8 of 8 25E-10 EXHIBIT A VALUE ASSESSMENT BUDGET STATUS 25E-11 c Exhibit A Recreational Value Assessment - Budget Status on March 8, 2018 25E-12 Contract „ Amount, Bliled .r• Remaining - Complete %' Task Number: 0 Contingency Total for 14,595.00 0.001 4,595.00 0% Task Number: 1 Project Inita0on and Data Collection. 1.1 Rick -off Meeting 3,692.40 3,638.85 53.55 99% 1.2 Site Visit 1,754,40 1,790.10 (35.70) 102°% 1.3 Consultation with NPS 877.20 520.20 357.00 59°% 1.4 Ongoing Meetings and Project Management 6,834.00 1,634.55 5,199.45 24°% Total fort 13,158,00 7,583.70 5,574.30 58% Task Number. 2 Park and Program Analysis - 2,1 Site Analysis and Mapping 1 9,975.601 4.006.051 5,969.55 40°% 2.2 Program Analysis 5,916.001 1,790.101 4,125.90 30°% Total for 2 16,891.601 5,796.151 10,095.45 36% Task Number: 3 Report Development - 3.1 Draft Report 1 10,761.00 5,852.25 4,908.75 54°% 3.2 Final Report 5,324.40 826.20 4,498.20 16°% Total fora 116,085.401 6,678.451 9,406,95 1 42% Task Number: X Reimbursable Expenses Total for 1 811.001 54.92 756.08 7% Total. for SNT-16.0 -,50,541.00 20,1.13.22 30,427.781 40% 25E-12 EXHIBIT B SCOPE OF SERVICES -ENVIRONMENTAL ASSESSMENT 25E-13 Exhibit B November 27, 2017 Frank Arroyo, Senior Management Analyst City of Santa Ana Parks, Recreation and Community Services Agency 20 Civic Center Plaza Santa Ana, CA 92701 Subject: Proposal to Prepare NEPA/CEQA Documentation for Parkland Substitution for the Rancho Santiago Community College's Lease at Centennial Park Dear Mr. Arroyo: Thank you for the opportunity to submit this proposal to prepare the NEPA/CEOA documentation for the proposed Centennial Park/Santa Ana College Park Replacement Project. Understanding of the Project The Rancho Santiago Community College District leases 2.6 acres within Centennial Park in the City of Santa Ana. The College District's lease requires it to provide specific on-site recreational activities; however, these activities have not been provided by the District. As a result, the College District's request to extend its 30 - year lease, which expired in November 2009, was refused. Although short lease extensions have been granted, the College District must satisfy the original lease requirements, vacate the property, or provide replacement park property. The City of Santa Ana previously identified a site known as the Pacific Electric property to serve as replacement parkland. Referenced here as Site 3, the Pacific Electric park is currently under construction. However, this site was determined to be insufficient to replace the College District's leased property, so the City has identified two additional properties to add to Site 3: » Site 1 710 E. 6th Street, Santa Ana, CA 92701(0.14 acre) • 714 E. 6th Street, Santa Ana, CA 92701(0.14 acre) 720 E. 6th Street, Santa Ana, CA 92701(0.14 acre) » Site 2 • 415S. Raitt Street, Santa Ana, CA 92703 (0.45 acre) 423 S. Raitt Street, Santa Ana, CA 92703 (0.64 acre) » Site 3, Pacific Electric Site (park under construction) 1128 S. Orange Avenue, Santa Ana, CA 92701 (0.24 acre) 309 E. McFadden Avenue, Santa Ana, CA 92701(0.17 acre) 311 E. McFadden Avenue, Santa Ana, CA 92701(0.18 acre) 317 E. McFadden Avenue, Santa Ana, CA 92701(0.27 acre) 329 E. McFadden Avenue, Santa Ana, CA 92701(0.19 acre) • 325 E. McFadden Avenue, Santa Ana, CA 92701(0.33 acre) 3 MacArthur Place, Suite 1100 1 Santa Ana, California 92707 ( 714.966.9220 PlaceWorks.com 25E-14 The following documents were prepared for Site 3: n City of Santa Ana, Recreational Value Report, Proposed Pacific Electric Park Site, 2012 u National Park Service, Environmental Assessment, Proposed Pacific Electric Park Site, 2012 City of Santa Ana, Mitigated Negative Declaration/Initial Study, Proposed Pacific Electric Park Site, 2012 The addition of Sites 1 and 2 to supplement Site 3 as compensation for the College's continued use of that portion of Centennial Park will require additional environmental clearance under both CEQA and NEPA. Scope of Work The City of Santa Ana is seeking assistance to address the National Park Service's (NPS) concerns about the adequacy of the proposed land exchange. NPS has indicated that the amount of area that must be exchanged may exceed the 2.6 -acre lease area due to the College's use of the surrounding parking lot. NPS requests a parking study to calculate the total area used by the College. The addition of Sites 1 and 2 also triggers the NEPA requirements. An Environmental Assessment (EA) following NPS guidelines is required. The following EAs and technical studies following HUD guidelines were prepared in 2016: • U.S. Department of Housing and Urban Development, Environmental Assessment, Raitt and Myrtle Street Park, 2016 • Cultural Resources Study for the Raitt & Myrtle Street Park Project, Santa Ana, CA • U.S. Department of Housing and Urban Development, Environmental Assessment, 6'h and Lacy Street Park, 2016 • Cultural Resources Study for 61h and Lacy Street Park The studies listed above will be used to the extent possible in preparing the NPS EA for Sites 1 and 2. The project as modified with Sites 1 and 2 also trigger the requirement for CEQA clearance. Tasks covering these requirements are describe below. NEPA DOCUMENTATION The following paragraphs describe our approach in satisfying the requirements identified in NPS's "Requirements for NEPA Compliance Related to Proposed Land Exchange." The NEPA document may take the form of an Addendum to the previously approved EA. Since the project also triggers requirements under CEQA, a single joint document may be prepared. The final format for the documents will be determined after further review. Proposal Description/Environmental Screening Form (PD/ESF) The PD provides the NPS with descriptive Information concerning the land exchange proposal. The PD will describe the three sites (one of which is already under construction [Site 31) involved in the exchange. Separate ESFs will be prepared for Sites 1 and 2 and attached to the Environmental Assessment. November 27, 2017 ( Page 2 25E-15 1��N1} O 1D ; , - Federal Law/Executive Order Compliance The NEPA process must also include coordination with related federal laws and executive orders, including NHPA, Section 106; ESA, Section 7; Executive Orders 11988 and 11990; Executive Order 12898; and DOI Compliance Memorandum 95-2. These requirements will be addressed in the Environmental Assessment. Environmental Assessment The. NEPA EA will follow the format prescribed by the NPS and include; Purpose and Need for Federal Action, Alternatives, Affected Environment, and Environmental Consequences. Notice will be provided to interested groups that an EA is being prepared for this project. PlaceWorks is available to attend and coordinate community meetings as optional tasks. Recreational Value Assessment Residents Irving near Santa Ana College's Career Education Center have raised concerns about the amount of parking used by the campus. Although the College leases 2.6 acres at Centennial Park, the National Park Service has questioned whether the replacement parkland should be increased because of the parking spaces used by the College. PlaceWorks will review and document applicable parking regulations for community colleges and city parks In the City of Santa Ana Municipal Code. In addition, we will pay site visits and make parking demand counts at the parking areas serving the Centennial Education Center In the northeast quadrant of Centennial Regional Park. Parking counts at the Centennial Education Center site will be conducted in 1 - hour intervals for a 12 -hour period on a weekday and for an 8 -hour period on a weekend. Parking conditions at the Centennial site will be reviewed and documented. Parking demand rates and hourly demand distribution will be researched for each of the uses in transportation publications from the Institute of Transportation Engineers (ITE) and the Urban Land Institute (UU). The parking analysis will identify the required number of off-street parking spaces for the existing Centennial Education Center and the off-street parking requirements in the City of Santa Ana Municipal Code, and based on field data and published data available. The hourly parking demand rates for the existing and proposed land uses will be identified at the existing and proposed sites at any given time on weekdays and weekends. Finally, an estimate of the land area required for the parking area needed to accommodate the existing Centennial Education Center will be provided. A technical memorandum will be provided to summarize the findings of the parking study. Following completion of this parking assessment and the Recreational Value Assessment, a draft of the RVA will be submitted to NPS for review. If the NPS occurs with the resulting recommended land exchange, PlaceWorks will continue with processing the EA. If this assessment determines that greater parkland compensation is required for the exchange, the City may be required to identify an additional site, which would require amendment to this scope of work. SummaryDocument The EA will include a detailed summary describing the City's proposal to exchange other parkland in underserved areas of the City for the College's leased property. The summary will review how the three sites qualify as eligible for the exchange and how they satisfy the requirement as "reasonably equivalent" to the leased property. NPS's legal requirements for the land exchange will be described. November 27, 2017 1 Page 3 25E-16 Alternatives considered by the City but rejected will be explained. These may include the offer of five acres on the south side of the park, use of the Godinez High School parking garage or other alternatives. The No Action alternative will also be addressed. Public Scoping and Comment With the assistance of City staff, PlaceWorks will compile of list of interested agencies, homeowner's groups, and individuals who have indicated an interest. PlaceWorks will also generate a mailing list of addresses within a 500 -foot radius of the three sites (Centennial, Site 1, and Site 2). PlaceWorks will prepare a notice for and participate in a scoping meeting. It is assumed that the City will mail the notices and secure the location for the meeting. PlaceWorks will prepare a presentation describing the project, summarizing the CEQA process and taking notes of comments received. Public Review After approval by NPS for circulation, the EA will be made public for a minimum of 30 days. Comments received on the EA will be collected, and a report on those comments will be provided to NPS. Analysis of Public Comments Comments on the EA will be reviewed, responses will be prepared, and any changes required of the EA will be reported to NPS. Revised Environmental Assessment Based on a review of the EA and all comments and responses, the NPS may determine that changes to the EA are required. If the EA is revised, the document will again be made available for public review for 30 days. Decision Document PlaceWorks will prepare a draft of the decision document, a Finding of No Significant Impact (FONSI), or Notice of Intent to prepare an EIS for NPS review. After NPS review and approval, the decision document will be made available for public review. Administrative Record PlaceWorks will be responsible for maintaining the NEPA Administrative Record. CEQA DOCUMENTATION The proposed project will also trigger requirements for environmental review under CEQA. Based on our understanding of the project and of CEQA requirements, we expect that the preparation of a (Mitigated) Negative Declaration will be sufficient. Although highly unlikely, should an impact be found to be significant and unmitigated, the project could trigger the requirement foran EIR. PlaceWorks will prepare an Initial Study that will contain a detailed description of the proposed project and environmental setting, environmental impact checklist, analysis of each environmental topic, and mitigation measures, as appropriate. November 27, 2017 1 Page 4 25E-17 F v • .1 ��m The Initial Study will address 18 topical areas and mandatory findings of significance. » Aesthetics » Agriculture and Forestry Resources » Air Quality » Biological Resources » Cultural Resources/Historic » Geology/Soils » Greenhouse Gas Emissions » Hazards / Hazardous Materials » Hydrology/ Water Quality » Land Use/ Planning » Mineral Resources » Noise » Population/ Housing » Public Services » Recreation » Transportation/Traffic » Tribal Cultural Resources » Utilities/Service Systems We believe the results of the Initial Study will lead us to recommend preparation of a (Mitigated) Negative Declaration. We will submit a screencheck of the MND/Initial Study and, upon receipt of comments on the document, we will make necessary revisions and prepare the MND/Initial Study for public review. A final version will be sent to the City for review and sign -off. PlaceWorks will prepare a Notice of Intent (N01) and submit the official MND/IS and N01 as .pdf files on CD. The electronic files will be compressed or segmented so files can be easily uploaded to and downloaded from the City's website. Once the public review period has closed, PlaceWorks will review and respond to the comments received. For budgeting purposes, a maximum number of hours for responses to comments is provided in our cost table. Some of the comments may require the participation of the project team. We will also prepare and submit the Notice of Determination (NOD) to the county and the State Clearinghouse following project approval. We assume the City will provide a check to cover the County Clerk and Department of Fish and Wildlife filing fees, if required. TECHNICAL SECTIONS The following paragraphs describe our approach in preparing various technical sections that will be used in the CEQA document. Aesthetics The proposed parks will change the visual character of the two sites. The 6th/Lacy Park involves the demolition of three single-family residences, and the Raitt/Mrytle Park involves construction on a vacant site. The parks will include trees, landscaping, play structures, hardscapes, community gardens, and shade structures, and the Raitt/Myrtle Park plan shows a restroom building. The proposed projects would be appropriately scaled for the neighborhood and should improve the visual character of the area. Air Quality and GHG For purposes of this scope and cost estimate, PlaceWorks will prepare a technical analysis to evaluate potential air quality and greenhouse gas (GHG) emissions impacts associated with the proposed parks at Site 1 and Site 2. Modeling will be conducted using the California Emissions Estimator Model (CaIEEMod) and will be included as an appendix to the environmental document. Construction Phase. The analysis will calculate construction emissions related to the development of the proposed parks at each proposed location. The construction phase regional emissions inventory will be November 27, 2017 1 Page 5 25E-18 based on the general anticipated construction schedule, including duration for each construction subphase, anticipated equipment for each construction subphase, and estimated earthwork movement (if applicable), as provided to PlaceWorks. Project -related construction emissions will be compared to the South Coast Air Quality Management District (SCAQMD) regional significance construction thresholds. Localized air pollution impacts from onsite construction equipment exhaust and fugitive dust generated at each proposed park site will also be compared to SCAQMD's screening -level localized significance thresholds (LST) for their potential to elevate concentrations of air pollutants at the adjacent land uses surrounding the project site. If necessary, mitigation measures will be identified to reduce any potentially significant regional and/or localized air quality impacts. Operational Phase. Based on the preliminary information received, the proposed parks would generally consist of open play areas and ancillary structures (e.g., restrooms) that would generate minimal to no operation -phase criteria air pollutant and GHG emissions from energy and area sources. Additionally, it is assumed that the proposed parks would serve the local communities and would generate only limited vehicular traffic that would result in nominal mobile -source emissions. Thus, the technical analysis will provide a qualitative discussion describing potential operational -phase air quality and GHG emissions impacts associated with the proposed parks. Other Areas of Impact The SoCAB is currently designated nonattainment under the National and/or California ambient air quality standards (AAQS) for ozone (03), fine inhalable particulate matter (PM2.5), coarse inhalable particulate matter (PM10), and lead (Los Angeles County only). The SCAQMD has adopted the 2016 Air Quality Management Plan (AQMP). The AQMP is prepared to ensure the SoCAB can attain the long-term National and California AAQS. The air quality analysis will include a consistency evaluation of the project's regional emissions to SCAQMD's AQMP. Furthermore, the SoCAB has been designated in attainment for carbon monoxide (CO) under both the California and National AAQS. Therefore, the air quality analysis will include only a qualitative assessment of CO hotspots. In addition, the environmental document will also include a qualitative assessment of potential odor impacts. Project Conslstency with Plana Adopted to Reduce GHG EmLsslons. The GHG section will discuss the GHG reduction goals of Assembly Bill 32 (AB 32), Senate Bill 32 (SB 32), and SB 375. To achieve the GHG reduction targets of AB 32, the California Air Resources Board (GARB) prepared the 2008. Scoping Plan and a 2014 update. CARE also recently released a draft of the 2017 update to achieve the SB 32 reduction target. In addition, the Southern California Association of Governments (SCAG) has adopted a regional transportation plan/sustainable communities strategy (2016-2040 RTP/SCS) to ensure that the southern California region can attain the regional transportation -related GHG reduction goals of SB 375. Furthermore, the City has prepared a Climate Action Plan. Project consistency with these statewide, regional, and local GHG emissions reduction strategies and plans will be reviewed. Biological Resources There are no natural biological habitats on either site, and impacts to biological resources are noy anticipated. Cultural Resources The cultural resources studies listed above will be used in preparing the related sections in the NEPA and CEQA documents for Sites 1 and 2. November 27, 2017 I Page 6 25E-19 Geology and Soils The soils and geology section of the Initial Study will be prepared based on studies and documentation generally available from the City. Hazards and Hazardous Materials This section of the Initial Study will be based primarily on the Phase I ESAs previously prepared for the NEPA document. Hydrology and Water Quality Both sites are Flat and located in urbanized areas. The existing storm drain systems in these locations will be noted and plans for connecting to such systems will be reviewed along with best management water quality requirements. Noise and Vibration PlaceWorks will prepare a noise and vibration analysis for construction and operational activities associated with providing replacement park property currently leased by Santa Ana College at the Centennial Regional Park (CRP). Our basic premise is that such replacement parkland will be secured and that the college activities at the CRP will not substantially change. The analysis will be incorporated into the environmental documents under both CEOA and NEPA (with the National Park Service [NPSj as the Federal Agency). The noise analyses will be consistent with the noise standards and criteria of the City of Santa Ana, the State of California, and the U.S. National Park Service. Specifically, the primary technical assessment driver will be NPS' NEPA Handbook (2015) and related Supplemental Guidance publications (Sept 2015). The project consists of various clearing/prepping activities at one or more sites, followed by construction of new, passive and active park facilities. The sites are generally surrounded by single-family and multi -family residential land uses which would provide the patrons to the parklands. These new park sites are assumed to be accessed primarily via local pedestrian or bicycle traffic and would, thus, not be associated with large amounts of motorized vehicle traffic. PlaceWorks will describe the existing environment setting within the vicinity; including an examination of the current regulatory framework (i.e., existing policies, regulation, and ordinances). PlaceWorks will assess existing conditions and identify the major noise sources in the vicinity of the project site, the nearest sensitive receptors, and other pertinent community characteristics; based on aerial photography, site plans, and project site photos. From on initial investigations, the area around the project sites appear to be a built -out, urbanized part of the city. As such, no notable changes in trafficflows — or the associated traffic noise levels — are anticipated and a qualitative assessment of traffic noise increases (due to the project implementation) will be made; in coordination with our in-house traffic assessment team members. Therefore, no field assessment of existing noise levels is warranted. PlaceWorks will conduct an assessment of potential noise and vibration impacts during the construction of the proposed project; with particular attention on possible disruption effects at adjacent properties. Noise generated by each construction phase will be estimated based on the construction equipment matrix, the durations of activities, and the projected haul truck traffic; all to be provided by the city staff and/or their contractor(s). Since the use of the proposed outdoor activity areas is not envisioned to be notably different than current conditions, long-term operational noise impacts will be addressed qualitatively. November 27, 2017 1 Page 7 25E-20 �OKI Public Services The two proposed parks are much needed in underserved areas of Santa Ana. The police and fire departments will be contacted to identify related service needs. Traffic and Transportation Parks of this size and character are anticipated to generate very limited vehicular traffic, which will be noted in the Initial Study. These parks will be accessed by pedestrians from the adjacent neighborhoods. A traffic study is not warranted. Utilities and Service Systems These small parks will create limited demand for utilities, which will be reviewed briefly in the Initial Study. Cost Estimate Table 1 presents our cost estimate based on our understanding of the project and the scope of work outlined above. Note: the environmental tasks cover Sites 1 and 2, since Site 3 was previously approved. Table 1, Cost Estimate TASK I COST NEPADoament Recreational Value Report/Parking Demand Assessment $6,600 Proposal Description/Summary/Environmental Screening Form 2,900 Federal Law/Executive Order Compliance 4,900 Environmental Assessment (Purpose and Need, Alternatives, Affected Environment, Environmental Consequences) 11,800 Public Scoping (1 meeting) 3,900 Public Review 3,400 Analysis of Public Comments 2,500 Revised Environmental Assessment 1,500 Decision Document 1,200 Administrative Record 2,000 Graphics 2,600 Editing/Word Processing 2,400 Distribution of Document 900 Environmental Setting 1,400 Mitigated Negative Declaration 900 Notice of Intent of Availability 1,200 Notice of Determination/Filing 800 November 27, 2017 1 Page 8 25E-21 'REM;�) P F- IN I j S� : �' Table 1, Cost Estimate TASK COST Aesthetics $1,600 Air Quality and Greenhouse Gases 7,500 Biological Resources 800 Cultural Resources (cultural resource studies by others) 800 Geology and Soils 1,400 Hazards and Hazardous Materials (Phase I ESAs by others) 1,500 Hydrology and Water Quality 2,600 Land Use and Planning 800 Noise and Vibration 5,500 Public Services 1,800 Traffic and Transportation 3,200 Utilities and Service Systems 2,200 Project Management: Project Management $3,200 Team Meetings (2); Council Meeting (1) 3,520 Subtotal -Labor $87,320 _ REIMBURSABLES, -- - Screencheck NEPA/CEQA Document (electronic only) n.a. 25 copies Draft EA/MND ($65/ea) $1,625 15 Copies CD/Summary for State Clearinghouse 300 15 copies Responses to Comments 200 Mailing Usts/Addresses (500 ft radii of Centennial, and Sites 1 and 2) 1,900 Mileage 100 Deliveries/Overnight 200 Parking Counts 880 Office Expenses (2% of labor) 1,746 County Clerk/Fish and Wildlife Filing Fees (not included) n.a. Subtotal —Relmbursables $6,951 j GHANDTOTA4 $94,271 , ; November 27, 2017 1 Page 9 25E-22 PlaceWorks - 2017 Standard Fee Schedule STAFF LEVEL HOURLY BILL RATE Principal $210-$325 Associate Principal $190-$225 Senior Associate/Senior Scientist $160-$200 Associate/Scientist $120-$170 Project Planner/Project Scientist $95-$125 Planner/Assistant Scientist $854100 Graphics Specialist $65-$135 Clerical/Word Processing 5454160 Intern $65-$85 Subconsultants are billed at cost plus 10%. Mileage reimbursement rate Is the standard IRS -approved rate. Acknowledgment This proposal shall remain valid for a period of 90 days from the time of submittal. As Principal, I am authorized to bind PlaceWorks and the project team to the contents of this proposal. We look forward to working with you to bring about the successful completion of this project. If you have any questions regarding the contents of this proposal, please feel free to contact the undersigned. Respectfully submitted, PIACEWORKS Dwayn ears, Al'P Princi 25E-23 November 27, 2017 1 Page 10 EXHIBIT C FEE PROPOSALS 25E-24 Exhibit C '�' � ! 6 - 'l t•i iri Public Services The two proposed parks are much needed in underserved areas of Santa Ana. The police and fire departments will be contacted to identify related service needs. Traffic and Transportation Parks of this size and character are anticipated to generate very limited vehicular traffic, which will be noted in the Initial Study. These parks will be accessed by pedestrians from the adjacent neighborhoods. A traffic study is not warranted. Utilities and Service Systems These small parks will create limited demand for utilities, which will be reviewed briefly in the Initial Study. Cost Estimate Table 1 presents our cost estimate based on our understanding of the project and the scope of work outlined above. Note: the environmental tasks cover Sites 1 and 2, since Site 3 was previously approved. Table 1. Cost Estimate TASK I COST i NEPADowment Recreational Value Report/Parking Demand Assessment $6,600 Proposal Description/Summary/Environmental Screening Form 2,900 Federal Law/Executive Order Compliance 4,900 Environmental Assessment (Purpose and Need, Alternatives, Affected Environment, Environmental Consequences) 11,800 Public Scoping (1 meeting) 3.900 Public Review 3,400 Analysis of Public Comments 2,500 Revised Environmental Assessment 1,500 Decision Document 1.200 Administrative Record 2,000 Graphics 2,600 Editing/Word Processing 2,400 Distribution of Document 900 AddidonalTaslsforCEOACompllarice' ._ Environmental Setting 1,400 Mitigated Negative Declaration 900 Notice of Intent of Availability 1,200 Notice of Determination/Filing 800 Technical studi4rsectionsS6pfiortihg Bath CEQA and NEPA Doamerds November 27, 2017 1 Page 8 25E-25 l f1 Table 1. Cost Estimate TASK COST Aesthetics $1,600 Air quality and Greenhouse Gases 7,500 Biological Resources 800 Cultural Resources (cultural resource studies by others) 800 Geology and Soils 1,400 Hazards and Hazardous Materials (Phase I ESAs by others) 1,500 Hydrology and Water Quality 2,600 Land Use and Planning 800 Noise and Vibration 5,500 Public Services 1,800 Traffic and Transportation 3,200 Utilities and Service Systems 2,200 Project,ManaBemerrt° Project Management $3,200 Team Meetings (2); Council Meeting (1) 3,520 Subtotal -labor $87,320 REIMBUILS4 I ES _ ... .. Screencheck NEPA/CEQA Document (electronic only) n.a. 25 copies Draft EA/MND ($65/ea) $1,625 15 Copies CD/Summary for State Clearinghouse 300 15 copies Responses to Comments 200 Mailing Lists/Addresses (500 ft radii of Centennial, and Sites 1 and 2) 1,900 Mileage 100 Deliveries/Overnight 200 Parking Counts 880 Office Expenses (2% of labor) 1,746 County Clerk/Fish and Wildlife Filing Fees (not Included) n.a. Subtotal —Relmbursabtes $6,951 November 27, 2017 1 Page 9 25E-26 PlaceWorks - 2017 Standard Fee Schedule STAFF LEVEL HOURLY BILL RATE Principal $210-$325 Associate Principal $190-$225 Senior Associate/Senior Scientist $160-$200 Associate/Scientist $120-$170 Project Planner/Project Scientist $95-$125 Planner/Assistant Scientist $8s-$100 Graphics Specialist $65-$135 Clerical/Word Processing $45-$160 Intern $65-$85 Subconsultants am billed at cost plus 100,> Mileage reimbursement rate Is the standard IRS -approved rate. Acknowledgment This proposal shall remain valid for a period of 90 days from the time of submittal. As Principal, I am authorized to bind PlaceWorks and the project team to the contents of this proposal. We look forward to working with you to bring about the successful completion of this project. If you have any questions regarding the contents of this proposal, please feel free to contact the undersigned. Respectfully submitted, PIACEWORKS Dwayn ears, AI -P Princi 25E-27 November 27, 2017 1 Page 10 Attachment 3-10: Fee As shown in the detailed budget on the following page, the estimated cost to complete the scope of work described in this proposal is $45,946. PlaceWorks recommends planning for a 5 to 10 percent contingency fund to cover any unforeseen out -of -scope work that might be necessary for the project. The billing rate for each team member is included in this budget. PlaceWorks bills forits work on a time -and -materials basis with monthly invoices. 46 CITY OF SANTA ANA RFP NO. 17.062 1 RECREATIONAL VALUE ASSESSMENT 25E-28 PROPOSAL FOR SERVICES I PLACEWORNS 47 25E-29 This page intentionally left blank. 48 CITY OF SANTA ANA RFP NO. 17-062 1 RECREATIONAL VALUE ASSESSMENT 25E-30 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: APPROVE AGREEMENT WITH INTERWEST CONSULTING GROUP FOR CITY ENGINEER STAFF SERVICES (STRATEGIC PLAN NO. 6, 1G) C°Y � CIT ti ANAGER RECOMMENDED 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 Authorize the City Manager and Clerk of the Council to execute an agreement with Interwest Consulting Group to provide City Engineer staffing services beginning March 21, 2018, and expiring on September 28, 2018, with an option to extend the agreement for up to six months on a month-to-month basis, in the total amount not to exceed $101,400, which is based on $15,600 per month at a billing rate of $150 per hour, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION On February 27, 2018, the City Engineer was assigned as the Acting Public Works Executive Director while the permanent recruitment is completed. The Public Works Agency desires to backfill the duties of the City Engineer by hiring temporary staff. The cost of these staffing services will be offset by the salary savings. The consultant agreement (Exhibit 1) provides City Engineer staffing on Tuesdays, Wednesdays, and Thursdays, or up to 24 hours per week. The staff proposed by Interwest Consulting Group includes Mr. Terry Rodrigue, with Mr. Alfred Cablay as a backup. Both are seasoned professionals, each with over 30 years of experience. Resumes summarizing their skills are attached (Exhibit 2). 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). 25F-1 J Agreement for City Engineer Staff Services March 20, 2018 Page 2 ENVIRONMENTAL IMPACTS There is no environmental impact associated with this action. FISCAL IMPACT The salary savings from the Public Works Agency City Engineer vacancy will offset the cost of these staffing services. The service agreement provides 8 hours staffing per day on Tuesdays, Wednesdays, and Thursdays, or up to 24 hours per week, at a billing rate of $150 per hour. The following table indicates accounts from which the funds will be drawn: Contract Period Fiscal Year Account Number Amount FY 2017/18 (March - June) 01117620-61000 $10,920 FY 2018/19 (July —Sept.) TOTAL: Edwin "William" G vez, P.E. Acting Executive Director Public Works Agency 05717640-61000 $10,920 08617611-61000 $10,920 08617612-61000 $10,920 10117605-61000 $10,920 01117620-61000 $9,360 05717640-61000 $9,360 08617611-61000 $9,360 08617612-61000 $9,360 10117605-61000 $9,360 $101,400 APPROVED AS TO FUNDS & ACCOUNTS: �Sl`c�irr� i� Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibits: 1. Agreement with Interwest Consulting Group 2. Letter Proposal and Resumes 25F-2 Exhibit 1 AGREEMENT WITH INTERWEST CONSULTING GROUP TO PROVIDE CITY ENGINEER STAFFING SERVICES THIS AGREEMENT is made and entered into this 21st day of March, 2018 by and between Interwesv Consulting Group, ("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. The City desires to retain a consultant having special skill and knowledge in the field of city engineering staffing services. B. Consultant represents that Consultant is able and willing to provide such services to the City. 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 consulting 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 during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described in the Proposal to Provide Interim City Engineer Services attached hereto as Exhibit A, and incorporated by reference. The Consultant shall provide services for eight hours per day on Tuesdays, Wednesdays and Thursdays or up to 24 hours per week. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as payment for its services $150 per hour as specified in the rate schedule in Exhibit A. The total amount to be expended under this Agreement shall not exceed $101,400 during the term of this Agreement. b. Payment by City shall be made within 45 days (forty-five) 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 which may reasonably be expected by City. Non -Fed Funding (9.20.2017) 25F-3 Page 1 of 15 YU9 This Agreement shall commence on March 21, 2018 and continue through September 28, 201 8,unless terminated earlier in accordance with Section 16, below. The term of this Agreement maybe extended for up to six (6) months on a month-to-month basis 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 CONTRACTOR 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"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor 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. Non -Fed Funding (9.20.2017) 25F-4 Page 2 of 15 7. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, 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, and representatives as additional insured(s); (b) be primary and not contributory 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 provisions of Section 3700 of the 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 canceled or reduced in coverage or changed in any other material aspect 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 Non -Fed Funding (920.2017) 25F-5 Page 3 of 15 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, contractors, 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, its subcontractors, agents, employees, or other persons acting on its 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 out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 9. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents 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 Non -Fed Funding (9.20.2017) 25F-6 Page 4 of 15 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 interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 13. DISCRINIINATION Consultant 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. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 14. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, 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 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 is not embodied herein. Non -Fed Funding (9.20.2017) 25F-7 Page 5 of 15 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. TERNIINATION 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(s) 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. 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. 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 Non -Fed Funding (9.20.2017) 25F-8 Page 6 of 15 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 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. 21. 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, Public Works Agency City of Santa Ana 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, California 92702 Fax: 714- 647-5635 To Consultant: Terry J. Rodrigue Owner/President Interwest Consulting Group 15140 Transistor Lane Huntington Beach, CA 92649 Fax: (714) 899-9146 Non -Fed Funding (9.20.2017) 25F-9 Page 7 of 15 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. IN WITNESS WHEREOF, the panics hereto have executed this Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA Maria D. Huiaar Raul Oodinex 11 Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO CONSULTANT: City Attorney ,,,_ &,e1_ rJ Funk Ferry J, Rodrigo® osistant City Attorney Owner/President RECOMMENDED FOR APPROVAL: EDWIN "WILLIAM" OALVEE, P,E, A@ting Excoudve Dirmtor Public Work® Aguney Pawa®f15 tten=1'N f'nn�ina (9-�B �AI7) 25F-10 EXHIBIT A r 10106 , March 3, 2010 1 N T 9 1 W/! T C O N R Y, I ING GROUP Cityol'SantaAna Mr. Raul Godineb City Manager 20 Civic Center Placa Santa Ana, CA 02701 R€: Proposal to Provide Interim City Engineer lervices Mr. Godinox, Thank YQu forgiving us the opportunity to serve the City of Santa Ana'§ PUbk works ®epartm@nt We are pleased to offer this letter proposal to provide Interim city Engin@@r §@rvl€es, Wo understand that the City will need a qualified individual to §erv@ in an interim position as the City Engineer as=nooded to provide dayzw-day management and ov@rsight of department operations, attend meetings, and work to ensure that goal§, poll€les, ordinances and codes are Wing oquilahly and €onsist@nliy inlerpret@d. Wa also und@r§land that the City €Nrr@ntiy 13 spocifi€ally interested in gaining immediate additional support and @xperd§@ In enhancing: their §olid Waste and Stre-Wighting programs. As Interim city Engineer, w@ propos@ Terry Rodrigo@, P€, TE at an hourly rate of $110 for the intlal few months of the cenlra€t, I have @v@r §§ y@ars of @xp@rhmcp in city Engin@eying, city Traffic Engine@ring, pugll€works, operation§, d@si>;n and,sp@€ial district financing. I provide le€ mi€al and §lrabOI; a§sktan€@ and support to €ify managers, @le€ted offs€lRk, and the €@mmuflity on puhli€ works programs, policies and R€livik@s, and prof @€ts. W@ Also prepo§@ At cahloy, FW1R at an huudy rale of $190 far @§=n@ed@d §uppert to Torry in the intial stages of the €@ntra€l, and as interim oily Engine@r thgr@aft@r with €Wivuing a§ n@@d@d support from Torn, Al also has mom than §§ year§ of @xpwi@R@@ In the puhli@ work§ arena In Administration, Engliva ring construction, cWMEt §@wi€@§ and Malnlonan€@ operalien§, our resum@§ have he@n attached for mfonmco- W@ appr@€iaW this oppgfWnity to §@rve the oily and work a§ a part of your management team, ptea§e do not h@§itat@ to copwt m@ at l498l 50=7ii€ or should you have any que§fi@ns. §Ifl€@t@ly, T Fy�F 9: R@@FIgHk, P€,i€ ®roll@r� af@sId@Rt of lflF@tw@§t EaR§Nlting �/aNp interwem @emnininif efeup I Page 9 of 15 25F-11 Houily Rates The rates displayed in the fee schedule below reflect Interwest's current fees. Hourly rates are typically reviewed yearly on July 1 and may be subject to revision unless under specific contract obligations. In addition, there Is no charge for shipping, supply, or material costs. CLASSIFICATION HOURLY BILLING RATE Principalin Charge ... _.......... _... .................................... .............. _............. _.... ._ .............. .............. _.. $150 CityEngineer._ .............. ....... ...... ....... ................. ....... .......... _............ _.......... ............................. ..... 150 projectManager ................ ... ...... ...... ......................... .......... _... ................ _... .......... _._.............. ..... 140 TrafficEngineer .................... _...... ................................ ... .._....... ..... ................. .............. .............. ..... 140 SupervisingEnginoor.... ...... _..... _................................. ...... ......... ..................... .............. ............... .... 140 SenlorEnginoor..........._......_.._....._.................. ............. _.._....... ............. .... __..... ...... .................... 130 EnSinoorin6Associate III ............... ............................................................................................ 114 EnginWrigAssociateII .... ... ....... ...... .............. .......................... ............. ....................... ............. _._.105 En&ooring Associate I._ ...... .......... .._.............. ........... ............. _............. ...... _... .......... _............. _... .. 94 EngineeringTechnician III .... ....... ..... _...................... ._............. _............. ....... .............. _._... ...... _...... a4 Engineering Technician II ........... .......................................................................................... ...... e0 EngineeringTechnician I ..... _........ _................. .......... _......... _... ................. .......... ................... ......... 74 Resumes Resumes for Terry Rodriguo, PE, TE and Al Cablay, FWLF have been included in the following pages. f0E@F4Ytr 4 �r3n5n111n� GFOU19 I w-Intemestg,9.eem Non -Fed Funding (920.2017) 25F-12 Page 10 of 15 Non -Fed Funding (920.2017) City €ngin@er sell, Cy InWW12st Nas beet) suPP0191 th@ oily @f geii since ftaye,gheF 2P30; Forty 4e999 vwking with the Fitt' in VeEef her 2@11, Or@vjding eggipgerigg sorvj@gi, WhiJl igaluded m4wgigg PII of the Cjtyrs eagigeering, pft?f@€f m@n3gerngntr. tr3f C3qd constryeti@q In3gagargent; This v(@s gn @@@qf unity tq @ssjst poll in its ro yeFV the€ass_ He clerks El9sely With staff, be Iq@igtgin @ Nigh level @f @u0@n; F sopf_o ;go. dgljvef 991IM1y @i?n teyi¢Ws t@ the City., Ltire@r@F Of PRhh@ g@Furl€ei tin€@In• ce ®±4t)@ @jFgctot of Public WaFt§ f9t the pity Pf 4t)@SIR, q+3flaged the dolly @P,efjji@gs 9f the folIgyring fuRgtiagc 25F-13 Page 11 of 15 Terry ROd17gUt?, PE, TE Praoldont, Intorwo@t Consulting Group, Inc. INTERWEST CONSULTING Terry hes over 39 yours of experience In City Englneering, City Trafnc Engineering, public GROUP i works, operations, design and special district financing. He provides technical and www. ink erwes r orp.c em strategic assistance and support to city managers. elected officials, and the community on Public works Programs, policies and activities, and Projects. He has successfully negotiated Ind resolved sensitive, political, and controversial program, policy, staffing, E X P I P T 1 s c and project issues. Nis approach Is to ensure he Is mooting the needs of the client in the ('fry Tnnalaenl I Stnlapk OParetion4 most effective and efficient way possible end to wont With Individual communities and Ont' a^S'neann, to focus on Whotts possible through creativity, expertise and relationships, PvaAe Wgras9aaratian, r+tl'T4rA41nginaadng BUSINESS E% P E R I E tic E rvndly obtnett T"'Innaapn syrtens Iatarwest consulting Group 1 @ V s e p 10 N In 2007. Torry }@Vnded (ntgry/g§t Consulting Group, a company dedicated to providing a variety (it aeryk,10 to local, State Ind Fgdoral 6ovornmOR- 9pencI04. Slnco that time, the MPA, waventity ofsouth4in tal.10" 1101; Company hes grown to over 510 Profession 911 and IUPPOFt #tell PROVIaling §arvicgs in thg Is,VnhawUofMPhq' Western Unlied Shtea th@r@gh @ ngtWorh of 10 offices - ffices.04lqpae�g 04 lqpzqr�,v11110 'rho;ervlg@s provided by the c@m@any includgi P5a14TPaT1@14a e 19 T 1 E I c a T I@ s 3 '� city Pnpineeriflg Big" ell ppllding@00491 tp fgFV!ffl RrgMalinn4l €At; na4r I B94de 1IT `� €1@CFrippl, Mgel,yfll€af afld Sfryehrrp(€(pfngering Ra" 44 01"11 '� Site Development Design pi4ra venal cirl englgeer 11@914 Manieipq, RfannOF state ar 411kki Tran3P91"011611 €flPfnegring pnur'uileetl Fgmc9ngiq-V 171997 InfOrmation feChnP(a§y B P@ E@ 3§ I @NAF EBe@grPpd(eol InfornigUen Servicgs a F E 14 I A F I@ N 3 � seal FrPP@riY AcOpisjf(@n ?In4r PnsP€'a#Pleivd Enyai447 @rei@vt@nil PrU r@m MQgsgement wa:yn 9tyran;pert dw €n[omVe PROJECT SPECIFIC EXPERIEUCE @Ira4E@Fr C@mmp@ity 4g1y14g§and Dlre€t@F @f PNAIi€ W@FR5 ft@n€h@ P@I@§ y@fd@§ &6 Ferry tv3§ PPP@Igtgd Intorirg Dirp€ter far the City of R3gch@ Rel@§ V@riles On tWo sap3r@tg @qcq§i@ns. 19 both Instances, thi§ Wg§ be fill a §toff Wwcy Pn the 940 €aecptive lylggggamenj regal, Fhe first gssiggntenE Wgs At Bire¢jor @E Corgrgqgft D@vgia0F@@i# Whiclt €Pnsisted of of@ngiR@, bujlQing. cod@ ent9marilient aqd View tire§¢rvgtipn, Fhg iq;gnd 91siggmggt w@3 @s thg @Ire€t@f @f Public WoFk§ which In€luded the City's Engineerjgg 3ng 8011@ W@rke Eliytdons. In both @ssigflmgR1l& Terry Fe@mr@d to the @Ry M3Rgger eqd rapte§ent@d the neggFjT@J+t g) City €@yncil god Pllnning 9ORIMl§5101ii qi@@tings, Taffy @r@yide? 640f8hiu. Pverall direetlon 3qd plentprjng to St3rf while gssisting the Ejty In recrnititts g yeFni@ngnt Director. Non -Fed Funding (920.2017) City €ngin@er sell, Cy InWW12st Nas beet) suPP0191 th@ oily @f geii since ftaye,gheF 2P30; Forty 4e999 vwking with the Fitt' in VeEef her 2@11, Or@vjding eggipgerigg sorvj@gi, WhiJl igaluded m4wgigg PII of the Cjtyrs eagigeering, pft?f@€f m@n3gerngntr. tr3f C3qd constryeti@q In3gagargent; This v(@s gn @@@qf unity tq @ssjst poll in its ro yeFV the€ass_ He clerks El9sely With staff, be Iq@igtgin @ Nigh level @f @u0@n; F sopf_o ;go. dgljvef 991IM1y @i?n teyi¢Ws t@ the City., Ltire@r@F Of PRhh@ g@Furl€ei tin€@In• ce ®±4t)@ @jFgctot of Public WaFt§ f9t the pity Pf 4t)@SIR, q+3flaged the dolly @P,efjji@gs 9f the folIgyring fuRgtiagc 25F-13 Page 11 of 15 f INTERWEST CONSULTING GROUP www.interwestgrp.com Non -Fed Funding (9.20.2017) Engineering — including environmental permitting. GIs, Capital Project Development and Implementation and development plan review Wastewater Treotment—A4MGD tertiary wastewater treatment plan V Wastewater Collection—A complete wasteweter collection system. v' Water Distribution —Tanks, reservoirs wells and a complete distribution system for the community water supply Streets — Maintenance and management of 250 miles of streets Including signals, signing and stripping and sidewalks parks/open $Pace/ Facilities — Maintenance and oParallon of all city Parks, open space and facilities irslnait — A local fixed route and Dial•o-Rido svotam, Solid Waste — Residential and Coatmorclol solid waste collection and recycling Program Airport- Operation and rralnlanenco of munieipai airport Canstfvetl@o Management— Managing and In5P@cting oil Ppbnc infiestructum Construction, Worked as part of the City's @x@cutiv@ mpnog@ment team to dev@lop and Impf@ment @ I@ng•t@rm staffing and r@org@nis@lien plan and improve suslam@r serla5@§. AWate_d In resolving major autslonding claims and is5ue5 on 59V91Pl VFlyatg d4V@lopm@nt Proj@at5. Neggtipted @xten5lv@ly With lergg land elvelg@mant eatili@P, WPFked with P multitude of fending s@urca5 incivding 511mul45 funding gF@nts. Prinsl@ablmChorge Transition T@@m Wildonpr, EA PFin€ipaLimEh@rge @f the 5u€Sa§SfYI transition pf PAIN W@rk§, Planning, bVilding and Witty. And Sade enf@Fcement s@rvlca5 from the Eaurty @f giyaF§ide 42 lh@ City of Wlld@mPF. Triumf@r Pf $@rywu = Th@ to@m, loge?h@r with key Riverside C@Ynty slA developed detailed pr@€g51es, pn9?@gels, delivery methods, @nd egragmgnts neves§pry W e§eomPlish the immles§ and eP@PerefjV@ tren§feF of seFvi€e§, MPnopomeal 3ys!ents = pgvelep@d and Im@IemariW4 m@nPgemeq? §ysl@m§ 19 m@nit@F @nd tr@€k @€tiVllie§ a§§q@ieled with tilmfng and develapinent entitlement F@VIEW§, @ngjFq@f1n§ and buildjflg plan fevieWs, Egde @af@FeeR+@n? E@5@5, and §?r'@@F pi]Iq!@nagEB wpFk§ @Fd@F§; / 1141gef§ = are@?ed fls-411Y PFuden? and pDnsery@?iye PgeF;ting cad E@pj?el imPwyemen? hYdge?§ qe§ed YR@fl aVDlable E_ Mainp'sppF€es @nd reV4g4@5. Beggrfm@nfs =Overs@w @nd res@onsjbie f@F @II ;§@eats of pghlie WeFk§, plenning, hujlding Ind safely, @fld €@dD enf@FEeFnen?. fir@n§Itlan Maneg@r � €@nva€E M@nageF €nglnDDFing � @4lldiflg alk �F@ye, ca A§ Elie M@n@ger pf gngjnagring end @Yildiflg f@F the CRIV pf €ik @rqy@, tFDn§ilipned @II Public W@Fks @ad @4ildiag gepeF?moni Servjges fFgm $DgFameOt@ fqu9ty to the Elty of ilk Gr@V& guilt @ §t@ff of ¢¢ @egple willhin 9 m@gth§ and Igo tiie lF@n§jligp of the fellowjgg servigesfrom 4@f4rPento.Wily: L1011f W@f4•§?10 Clief4og `' Nr9ind4a � gphfic l4i9ryts igsg@ftiwn �' i=mn§P@F?Ptian Forrpf?fssgcin€e gyge?MPln ERRI fe P.uhfia Egygtef@P?!gUms C�eBM.-mi $p@dpi Oisfrf§1s / PrfPf BM. -m3 .. All PPlldino pePPFim@nf pp?.M49% 09i!?f@€? @Ihf @pgjimi, ErlestlEke tpliege, Cg $§ Can?:]EE Litt Eggin@er f@F Eh@ City 9. Westl@ke YII@ge, @F@@§Fe� gapit@I i?mgr@ms fpr IInPF@y@m@qt§ tq D';Y-.1?Vma4 `• EiIib@s sypsFVjsed ih@ prep99ljefl of plan§F limifintiefls end bid„ding; rp9949red the -RAFggiqn of f@pit@I premu—i Fespgn9ed tq gitizen iogulr4s, reylglyed tlavalepment Pmmiti§ 9gd gi@de prasagtetj@pE iq City Fgynsil apQ kjlis@p gcgyps; 25F-14 Page 12 of 15 I INTERWEST CONSULTING GROUP www. in terwestgrp. cc Non -Fed Funding (920.2017) City Traffic Engineer Various Southern CA Cities Terry has served as Contract CRY Traffic Engineer for the Cities of Malibu, Rolling Hills Estates, Thousand Oaks, and Moreno Valley. In this capacity, he performed a variety of traffic Investigations requested by citizens and City Council, reviewed developer plans and studies, developed and Implemented traffic safety programs and policles. conducted traffic analyses and studies, and made Presentations to traffic commissions, City Councils and citizens groups. 25F-15 Page 13 of 15 Non -Fed Funding (9.20.2017) 25F-16 Page 14 of 15 j Alfred Cablay, PWLF Public Works Leadorehlp Follow INTERWEST Public Works Project Manager CONSULTING Al's Public Works experience spans over 35 years In Administration, Engineering, Construction, Contract Servieeo and Maintenance Operations. He possesses a broad range GROUP of experience In Public Works Engineering, Water end Wastewater Systems, Maintenance Operations, and Personnel Adminirtraticin, He brings a solid history of private and public COUCATIPH experience with succe i; la managing and implementing large-scale projects, Nil depth of Mo11RS ofItwinors Mn,1,LPanon nubile works practices fold in both post and present practices with the ever-changing N*MhowVal VrivaNhY technology trends. M4XR d,inrig pli cm gra, nw At adds value to an organiretion by providing service that model Innovation. Creativity and CaNmah P9uPc Vniver:iry customer care, His ultimate goat is to always Provide superior support to our clients, effectively and efticlen* menage oil Projects and collabofatively lead and mentor staff. a4C M li Bering B/gciinrg SNi as menod a strong Na hinteitrofl Iny9lyom4nt in the Industry and has experience in technical G9Wn+aie PauqVNS VnNIFiM writing and teaching, 4941 STRATION4 PROJECT SPECIFIC EXPERIENCE eIRT1119ATI@N5 Senior Engineer E.mif.d suwnwaraf InInow NRi.ol gwwworer comer 2934=Present Interwast ronsulting 9f@up I CA e Provide Project and orgUram management fpr various city clients Wo inTfeg".1 Ea§famia lita14 rin%erurv:64€ MIRM a En5Yre QVillity A§§P/an€?/C1uali!V Control @n an array Of PYb119 imomyement Prall0it far City Clients BPB€igl gad/PF PEI Pilot RFagram (ClR)Rr@j@@ts TM-19pnoom Planning: aFAvairy a Burin $914 = 2917 SUee4§5f411y Performed shit da!ies g @s P@puty City EPgB@@r Lie"."ie9 assigned to the CJ;Y of PeIL PeiiatiF4d @99A oaegR llws wgr 1 A,ssi5t@d In directing city's CePIk@I Im@rpyglnent PFagFem ICIet PF@je€t§ = Annyet Pillsian ltlsS4s, deli, Criywid4 P@vepteR( lighAilit0pit PF@grgm. OFAnnual City Sewer Collection lityw WI-Elian gainils, SV§leln FI@ahing Pf@#f@Fp and i8gPle4{ent@tiaa of EPA's W45t@W@ter fiFant for 4rae41119590, MIA sygtam MQdeFnI9@tion Whir p47+p0eR 9alrop, 1 Pfavided tgehni@al §@FOEas IFeview Of Nvdrel@gy-gydfjk e!udV. Low IgIPa€t yN4t i a§14s,aW1Yd @@ygi@pnl@ntjVP Fermlt4ng, StF@et 1F9Pr@yenignt aI@Ps, aF@dlne:Er@gl@P CaPiF@I PraIBEa M4Pig9'R9Rt Pl@n5 and P;reel/Pin@I M@P Ehttkg) for @II Pfiyaj@ P@yeinpmcnt antitiginvis San @js§P 4t:rq unr{9giry 1 Pr@p@Fad @R 54armyletarjNPP€5 dq€Pman15 andf@P@A§ f@F firs4 Pot it Earofied EggipaeaiggTgcl+p:atan C@rppll@nEe and P@rVEWPOR to 1A RivgF UPp@F Re@Eh 3 Wal@fihed nig0mgs Tr4R6 O24Fi49af 01961, HIE4T IR!Etim €@€ilI!ta§ Harasser 3019=2@34 Ptv@ff19wPPFt4e@EhICA a Brovidad §4pp@Ft t@ Aigimiant Eisy Engin@ea'g e(fgfis PP nevv $SSB fPi111Pn ClyiE C_'PR4er C91RP125 to; @II {uag:key Facility M@ln!gR@nE@ OpoatitV45 gystem§ : Energy Efh j@nsv, ! 519FIV12194111pe, 5@W@F F.:0119 9R,WMF Pisifibyrianand Alf Quality Mligrg§ ! 1 d Eli! W- lt@ @ f.rM9 a @-ra 4-@Rd ! k5 M@R§g Pa I VMaiq!eRaREe ea f7 d F6 q Municipal O @ t'q 6 Public yqf aenlaT PF4j@€t €Rgin@@f 20.13=2$14 PS C@RwIt F14IN 9 Wenar, 1n€ 1 CA Perf@Finad ERIII 4e519A syeacigpt an €f9R! Wg@t PP4sc9Ve ImPmyemant Frajeq for the Eity pf tmi Angeles= PaFt of fes Angeles/POLA I Assisted EAIJMfl3 Mint 0111914ni E02M pill an M€ liQ'g 54717 ERvifanrgeR41 ARaly§I§Pf fEMM M. Alf@fnetiyes €1e14 eper@ii9n5 €ngipaai a012 _2015 {it@ Qls@n Etimplily l cA EFPaassed EegstryEtipq El,ns and PaFmi4 f9F {FfA0 964949 PayalPPM91im. P and In: TPwR 4psidentjal and EePllnt'rliiel Pfq)eats in y@FI99§ 599theFn E?lifemi@ P199; Non -Fed Funding (9.20.2017) 25F-16 Page 14 of 15 INTERWEST CONSULTING GROUP Pa OFlaalOAA1 AFFIt1ATI0N6 Fraridem MenWartm SVP@+ifltmdeniF Ass@@Isp9n 2917 FvV,,w* rs 1®Fdarshie 11e119w Amadgan P01etye•1u44s9dmi9n 2919 wre Frasidenl hlamt@nanEe;upgrietmd€nIP A ladalion 2914:19 FreFldFm aur 4i@ge C?vflw Wriirr, wg*3 @'PUP 2492.90 Presidgm IWand €rardre e4}Rgr91APWA 179?4as Favi EPIiw+�n@@ M@Ri?Er natlute yFynnlP map E-Jinvifs Fif{eam�na@rA@meax Lyse pepRgRR{wt@•puar{y YattneriN@ east ePInM{{ta M@meaF A.Fwa spas' caaPcgr/segawr4irly 20 9§l} A6 WSO Mama@x @a?e_'ear pt.- Py3EE wPE pr4gfa eancemE•1{ea A1fm5@r son 901.1?=9 tBf Acts!es siva• sicxawa:gFG--leap; Pea PFIPni!e@ 5{emhFF §?00n IF 6'A'.°Pl gegvlA{ism j�gFin, Pfeaiper{ wanem €eyrei9f €^§inPe•r tees ERf$1BFBr%smlaa¢r f�lieFaan T{4E('wyxf�.lgaa?al E9as{ CAfF{@x }s?s:}ase Non -Fed Funding (9.20.2017) Director of Public Works 2OC6-2013 City of Pico Rivera I CA • Construction of $45M BNSF & UPRR Raitropd Underpass for Passons Boulevard • Project managed $5M ARRA funded projects; Beverly Blvd. median and roadway rehobilltatlon; and the ClMvide Energy Efficiency Community Block Grant Program • Represented City for Congressional hearings to obtain Federal Appropriations for the BNSF Railroad Underpass Repab/Remmtruction projects obtaining S2M In funding • Implemented City Master plans for Citylvlde Pavement Rehabilitation, Community Development Black Grant/CDBG Sidawoik•H@ndicapped Romp Improvement Program, Traffic Slgnois, Storm Water, Water Distribution (Including Rccycled Water), and Sanitary $ewer Management Plan/SSMP. • Provided technical and finanelal support data for the inclusion of Public Works In iostructvre noads in the City's Local Tax Mquoum TR' which was auaeesefully passed In November 2009 • In conjunction with the Water Replenishment Plstrlct/WRD and the thru the Southeast Water C0911Npin/SEWAC heln4d to develop the framework for the GrOpndwater R@II@biiity tmpmvement PrOjggVGRIP as an active member of the Central Dpain MOnI9ip91 W91ier Dtatflct/CBMWp acting as the Citv'a Water Purvey9r (Ries Rivera Water Authority) at all District functions and attivittes Aasocl@t@ Development Engineer 2006-2099 City Of Dceonside l CA Performed to€hnl€ai ravlow (Planning and EiRAI Design Review) on all cag5tel D@v@lopment gfgj@ccs far Impacts to all €ity In(fastf4atufe= §h@ets, §eWefs and §term Dr@Inage Public Wallis §@pefintendant 2559 =2996 City of jiI Calan I CA As M@inten@n€e eogniti @ns Manager @Wsted the Vvidi€ W@Fks Dire€ter with drafting Stand@Fd @P@rating Pr@€edP as/§b@s for all lon ices and a5tivitigg In€Iudigg Salyer 41*111an. Storm Drain@g@, streets and §id@walks Public WOrhs 5uperietend@nt 1B6@=4995 City of jneinJe4@5I CA DgvelePed standard OPeraljgg PreggdtjFQ?AQh for all seFytee6 and a€tiyjties iq€lyding Wafer, §eyynF. §t9pm @rain. &Pa€hBa, Eigetagd Faciut}as Maintaganee Puhlif Wafks Manpg_ar }955=}999 CiWali4inL4iao..blfge CA Pivlsien Manager Pfaviding Pvafslght, cgFecfion and gyidgneg 19 9agt!@n Maq@ggry of {raq§parta{ien Plagnir5, i=eafbe EggineeFing. {ransit:}igttf P@il sad Perpigg Manag@maflf nir£€t@r R1 POIi€ WPrkg4QFvitas Me=1995 City of Lena Ludo 10 15 city Paparmant H@ad @gAition €rested to meFga PF@yie@sly nePr;ted divjsiens eE W;teF, Sew£f. §term Pnigw, MfWa. ?0S. facilities and fleet K&Fgt@r AHtdeF of sever@I fechgig@I guhljEjtlgns, and yyas a regalaHy s€heAuled g4esi legturof @f C§49Fnta PPIyt9EIINE IFORlite = Set Luis Willa, uRdeFSFadq@ta squrse ars PAPF TFaRs@9FWgR, 1994 to 199B. Bast Ad(ygFF jiacylty, €RYkenm9941 MaRagemegt €9@FSP of cjtFy. eP11Pea. §laRq@fa 25F-17 Page 15 of 15 25F-18 March 3, 2018 City of Santa Ana Mr. Raul Godinez, City Manager 20 Civic Center Plaza Santa Ana, CA 92701 EXHIBIT 2 INTCRWEIc N5 U L T I N G G R O U P RE: Proposal to Provide Interim City Engineer Services Mr. Godinez, Thank you forgiving us the opportunity to serve the City of Santa Ana's Public Works Department. We are pleased to offer this letter proposal to provide Interim City Engineer Services. We understand that the City will need a qualified individual to serve in an interim position as the City Engineer as -needed to provide day-to-day management and oversight of department operations, attend meetings, and work to ensure that goals, policies, ordinances and codes are being equitably and consistently interpreted. We also understand that the City currently is specifically interested in gaining immediate additional support and expertise in enhancing their Solid Waste and Streetlighting programs. As Interim City Engineer, we propose Terry Rodrigue, PE, TE at an hourly rate of $150 for the intial few months of the contract. I have over 35 years of experience in City Engineering, City Traffic Engineering, public works, operations, design and special district financing. I provide technical and strategic assistance and support to city managers, elected officials, and the community on public works programs, policies and activities, and projects. We also propose Al Cablay, PWLF at an hourly rate of $150 for as -needed support to Terry in the intial stages of the contract, and as Interim City Engineer thereafter with continuing as -needed support from Terry. AI also has more than 35 years of experience in the public works arena in Administration, Engineering, Construction, Contract Services and Maintenance Operations. Our resumes have been attached for reference. We appreciate this opportunity to serve the City and work as a part of your management team. Please do not hesitate to contact me at (303) 549-7776 or trodrigue@interwestgrp.com should you have any questions. Sincerely, 5ry'J Ro Owner I President of Interwest Consulting Group Interwest Consulting Group I W Jnterwestgrp.com 25F-19 Hourly Rates The rates displayed in the fee schedule below reflect Interwest's current fees. Hourly rates are typically reviewed yearly on July 1 and may be subject to revision unless under specific contract obligations. In addition, there is no charge for shipping, supply, or material costs. CLASSIFICATION Principal in Charge ................................. City Engineer .......................................... Project Manager ..................................... Traffic Engineer ...................................... Supervising Engineer ............................. Senior Engineer ...................................... Engineering Associate III ........................ Engineering Associate II ......................... Engineering Associate I .......................... Engineering Technician III ...................... Engineering Technician 11 ....................... Engineering Technician I ........................ Resumes HOURLY BILLING RATE $160 .............150 .............150 .............140 ............. 140 ............. 130 .............115 .............105 ............... 95 ............... 85 ............... 80 ............... 75 Resumes forTerry Rodrigue, PE, TE and Al Cablay, PWLF have been included in the following pages. Interwest Consulting Group I www.interwestgrp.com 25F-20 GTS 1 Te" R®di1gL1P..y PE, TE President, Interwest Consulting Group, Inc. INTERWEST CONSULTING GROUP Terry has over 35 years of experience in City Engineering, City Traffic Engineering, public works, operations, design and special district financing. He provides technical and www. i me rwe s tgrp. c o m strategic assistance and support to city managers, elected officials, and the community on public works programs, policies and activities, and projects. He has successfully negotiated and resolved sensitive, political, and controversial program, policy, staffing, E X P E R T I S E and project issues. His approach is to ensure he is meeting the needs of the client in the CityTransitions I Strategic Operations most effective and efficient way possible and to work with individual communities and City Engineering to focus on what is possible through creativity, expertise and relationships. Public Works Operations City Traffic Engineering BUSINESS EXPERIENCE Funding Districts Transportation systems Interwest Consulting Group E D U C A T I O N In 2002, Terry founded Interwest Consulting Group, a company dedicated to providing a variety of services to local, State and Federal Government Agencies. Since that time, the MBA, University of Southern California 1989 company has grown to over 350 professionals and support staff providing services in the BS, Universityof Maine, Western United States thorugh a network of 10 offices. Civil Engineering 11980 The services provided by the company include: REGISTRATIONS CE RTI Fl CATIONS ✓ City Engineering State of Colorado ✓ Building and Safety Services Professional Engineer 130697 ✓ Electrical, Mechanical and Structural Engineering State of California ✓ Site Development Design Professional Civil Engineer 138694 ✓ Municipal Planning State of California ✓ Transportation Engineering Professional Traffic Engineer I T1497 ✓ Information Technology P R O F E S S I O N A L ✓ Geographical Information Services A F F I L I A T I O N S ✓ Real Property Acquisition American Society of Civil Engineers ✓ Project and Program Management Institute of Transportation Engineers PROJECT SPECIFIC EXPERIENCE Director, Community Services and Director of Public Works Rancho Palos Verdes CA Terry was appointed interim Director for the City of Rancho Palos Verdes on two separate occasions. In both instances, this was to fill a staff vacancy on the City's Executive Management Team. The first assignment was as Director of Community Development which consisted of planning, building, code enforcement and view preservation. The second assignment was as the Director of Public Works which included the City's Engineering and Public Works Divisions. In both assignments, Terry reported to the City Manager and represented the Department at City Council and Planning Commission meetings. Terry provided leadership, overall direction and mentoring to Staff while assisting the City in recruiting a permanent Director. City Engineer Bell, CA Interwest has been supporting the city of Bell since November 2010. Terry began working with the city in December 2011, providing engineering services, which included managing all of the City's engineering, project management, traffic and construction management. This was an opportunity to assist Bell in its recovery process. He works closely with staff to maintain a high level of customer service and deliver quality plan reviews to the City. Director of Public Services Lincoln, CA As the Director of Public Works for the City of Lincoln, managed the daily operations of the following functions: 25F-21 GT 1 INTERWEST CONSULTING GROUP www. in to rwestgrp. a am ✓ Engineering — including environmental permitting, GIS, Capital Project Development and implementation and development plan review ✓ Wastewater Treatment— A 4MGD tertiary wastewater treatment plan ✓ Wastewater Collection — A complete wastewater collection system. ✓ Water Distribution—Tanks, reservoirs wells and a complete distribution system for the community water supply ✓ Streets — Maintenance and management of 250 miles of streets including signals, signing and stripping and sidewalks ✓ Parks/Open Space/ Facilities — Maintenance and operation of all city parks, open space and facilities ✓ Transit—A local fixed route and Dial -a -Ride system. ✓ Solid Waste — Residential and Commercial solid waste collection and recycling program ✓ Airport—Operation and maintenance of municipal airport ✓ Construction Management — Managing and inspecting all public infrastructure construction. Worked as part of the City's executive management team to develop and implement a long-term staffing and reorganization plan and improve customer services. Assisted in resolving major outstanding claims and issues on several private development projects. Negotiated extensively with large land development entities. Worked with a multitude of funding sources including stimulus funding grants. Principal -in -Charge Transition Team Wildomar, CA Principal -in -Charge of the successful transition of public works, planning, building and safety, and code enforcement services from the County of Riverside to the City of Wildomar. ✓ Transfer of Services — The team, together with key Riverside County staff, developed detailed processes, protocols, delivery methods, and agreements necessary to accomplish the seamless and cooperative transfer of services. ✓ Management Systems — Developed and implemented management systems to monitor and track activities associated with planning and development entitlement reviews, engineering and building plan reviews, code enforcement cases, and street maintenance works orders. ✓ Budgets — Created fiscally prudent and conservative operating and capital improvement budgets based upon available funding sources and revenues. ✓ Departments — Oversaw and responsible for all aspects of public works, planning, building and safety, and code enforcement. Transition Manager I Contract Manager Engineering & Building Elk Grove, CA As the Manager of Engineering and Building for the City of Elk Grove, transitioned all Public Works and Building Department Services from Sacramento County to the City of Elk Grove. Built a staff of 60 people within 9 months and led the transition of the following services from Sacramento County: ✓ Public Works Plan Checking ✓ Drainage ✓ Public Works Inspection Transportation ✓ Permit Issuance ✓ Street Maintenance ✓ Public Counter Operations ✓ Special Districts ✓ Capitol Projects ✓ All Building Department Operations Contract City Engineer Westlake Village, CA As Contract City Engineer for the City of Westlake Village, prepared capital programs for improvements to City -owned facilities; supervised the preparation of plans, specifications and bidding; monitored the construction of capital projects; responded to citizen inquiries, reviewed development proposals and made presentations to City Council and citizen groups. 25F-22 INTERWE1ST CONSULTING GROUP www.interwestgrp.com City Traffic Engineer Various Southern CA Cities Terry has served as Contract City Traffic Engineer for the Cities of Malibu, Rolling Hills Estates, Thousand Oaks, and Moreno Valley. In this capacity, he performed a variety of traffic investigations requested by citizens and City Council, reviewed developer plans and studies, developed and implemented traffic safety programs and policies, conducted traffic analyses and studies, and made presentations to traffic commissions, City Councils and citizens groups. 25F-23 IF I INTERWEST CONSULTING GROUP EDUCATION Masters of Business Administration Northcentral University Master of Science Civil Engineering Columbia Pacific University Bachelor of Science Civil Engineering Columbia Pacific University REGISTRATIONS CERTIFICATIONS Certified Stormwater Inspector National Stormwater Center Water Treatment California State University -Sacramento Transportation Planning - Air Quality UC Riverside Registered Construction Inspector Division 1 #5004, ACIA Sewer Collection Operator Grade III #600, CWEA Water Distribution Operator Grade 1 #5145, AW WA Project Management San Diego State University Certified Engineering Technician Traffic Operations #71251, NICET Alfred Cablay, PWLF Public Works Leadership Fellow Public Works Project Manager AI's Public Works experience spans over 35 years in Administration, Engineering, Construction, Contract Services and Maintenance Operations. He possesses a broad range of experience in Public Works Engineering, Water and Wastewater Systems, Maintenance Operations, and Personnel Administration. He brings a solid history of private and public experience with success in managing and implementing large-scale projects. His depth of public works practices fold in both past and present practices with the ever-changing technology trends. Al adds value to an organization by providing service that model innovation, creativity and customer care. His ultimate goal is to always provide superior support to our clients, effectively and efficiently manage all projects and collaboratively lead and mentor staff. He has maintained a strong involvement in the industry and has experience in technical writing and teaching. PROJECT SPECIFIC EXPERIENCE Senior Engineer 2014—Present Interwest Consulting Group I CA • Provide project and program management for various city clients • Ensure Quality Assurance/Quality Control on an array of public improvement projects for City Clients Special and/or Capital Improvement Program (CIP) Projects • During 2014 — 2017 Successfully performed the duties as Deputy City Engineer assigned to the City of Bell. ✓ Assisted in directing City's Capital Improvement Program (CIP) Projects—Annual Citywide Pavement Rehabilitation Program, Bi -Annual City Sewer Collection System Flushing Program and implementation of EPA's Wastewater Grant for System Modernization ✓ Provided technical services (review of Hydrology -Hydraulic Study, Low Impact Development/LID Permitting, Street Improvement Plans, Grading -Erosion Control Plans and Parcel/Final Map checks) for all Private Development entitlements ✓ Prepared all Stormwater/NPDES documents and reports for MS4 Permit Compliance and participation to LA River Upper Reach 2 Watershed meetings Interim Facilities Manager 2013-2014 City of Newport Beach I CA • Provided support to Assistant City Engineer's efforts on new $150 million Civic Center Complex for all Turn -key Facility Maintenance Operations systems - Energy Efficiency, Storm Drainage, Sewer Collection, Water Distribution and Air Quality Systems • Managed Facility Maintenance Work Orders for Municipal Operations and Public Works Senior Project Engineer 2013-2014 DR Consultants& Designer, Inc. ICA • Performed civil design oversight on Front Street Landscape Improvement Project for the City of Los Angeles — Port of Los Angeles/POLA • Assisted CALTRANS Prime Consultant CH2M Hill on METRO'S SR710 Environmental Analysis of TSM/TDM Alternatives Field Operations Engineer 2012-2013 The Olson Company I CA Processed Construction Plans and Permits for Transit Oriented Development/TOD and In - Town Residential and Commercial projects in various Southern California Cities 25F-24 25F-25 Director of Public Works 2006-2011 City of Pico Rivera I CA • Construction of $45M BNSF & UPRR Railroad Underpass for Passons Boulevard INTERWEST • Project managed $5M ARRA funded projects; Beverly Blvd. median and roadway rehabilitation; and the Citywide Energy Efficiency Community Block Grant Program CONSULTING • Represented City for Congressional hearings to obtain Federal Appropriations for the BNSF Railroad Underpass Repair/Reconstruction projects obtaining $2M in funding GROUP • Implemented City Master Plans for Citywide Pavement Rehabilitation, Community Development Block Grant/CDBG Sidewalk -Handicapped Ramp Improvement Program, P R O F E S S I O N A L Traffic Signals, Storm Water, Water Distribution (including Recycled Water), and AFFILIATIONS Sanitary Sewer Management Plan/SSMP. President . Provided technical and financial support data for the inclusion of Public Works Maintenance Superintendents Association 2017 Infrastructure needs in the City's Local Tax Measure TR' which was successfully passed in November 2009 Public Works Leadership Fellow . In conjunction with the Water Replenishment District/WRD and the thru the Southeast American Public Works Association Water Coalition/SEWAC helped to develop the framework for the Groundwater 2015 Reliability Improvement Project/GRIP as an active member of the Central Basin Vice President Municipal Water District/CBMWD acting as the City's Water Purveyor (Rica Rivera Maintenance Superintendents Association Water Authority) at all District functions and activities 2014-15 Associate Development Engineer President 2004-2006 City of Oceanside I CA San Diego County Water Works Group 2002-06 Performed technical review (Planning and Final Design Review) on all Coastal Development projects for impacts to all city infrastructure— Streets, Sewers and Storm Drainage President Inland Empire Chapter of APWA 11994-96 Public Works Superintendent Past Committee Member 2000-2004 City of El Cajon ICA Institute of Transportation Engineers As Maintenance Operations Manager assisted the Public Works Director with drafting Past Committee Member Standard Operating Procedures/SOPS for all services and activities including Sewer Los Angeles Stormwater Quality Collection, Storm Drainage, Streets and Sidewalks Partnership Public Works Superintendent Past Committee Member 1998-2000 City of Encinitas I CA APWA SOCaI Chapter/Sustainability Developed Standard Operating Procedures/SOPs for all services and activities including 2008-2011 Water, Sewer, Storm Drain, Beaches, Fleet and Facilities Maintenance Advisory Member Gateway Cities Public works Officers Public Works Manager 2007-11 1996-1998 City of San Luis Obispo I CA Past Committee Member Division Manager providing oversight, direction and guidance to Section Managers of San Gabriel and Los Angeles River Transportation Planning, Traffic Engineering, Transit -Light Rail and Parking Management Stormwater Groups Past Committee Member Director of Public Works/Services Coalition for Practical Regulations 1989 —1996 City of Loma Linda I CA Interim President 1" City Department Head position created to merge previously separated divisions of Western Council of Engineers Water, Sewer, Storm Drainage, Streets, Parks, Facilities and Fleet 2006 co-editor of Newsletter Educator American Public Works/Central Coast Author of several technical publications, and was a regularly scheduled guest lecturer at Chapter California Polytechnic Institute — San Luis Obispo, undergraduate course on Public 1996-1998 Transportation, 1996 to 1998. Past Adjunct Faculty, Environmental Management course at Citrus College, Glendora 25F-25 25F-26 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: DESIGNATE A VOTING DELEGATE AND ALTERNATE FOR THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS REGIONAL CONFERENCE AND GENERAL ASSEMBLY MEETING (STRATEGIC PLAN NO. 5, 1) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 061TWo- El ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2°d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Designate a voting delegate and an alternate for the Southern California Association of Government's Regional Conference and General Assembly scheduled for May 3 and 4, 2018. BACKGROUND Each year, the City Council/County Board appoints a Delegate and Alternate Representative to the Southern California Association of Governments (SCAG) General Assembly. The Regional Conference and Assembly will include a diverse program of expert panels, keynote presentations and technical demonstrations that will share insights on how local governments and civic partners can work together to make the most of new technologies to enhance mobility, economic opportunity and quality of life. The event will also present the 2018 SCAG Sustainability Awards, which will recognize excellence in sustainable planning throughout Southern California. To view the draft Program, please visit their website at: http:Hscagmain-auth/calendar/Documents/2018GA ConferenceScheduleDRAFT.pdf Mayor Pro Tem Michele Martinez serves on the Orange County Council of Governments and SCAG boards and has expressed an interested in serving as a voting delegate. The voting delegate or alternate will consider all proposed Resolutions and/or Bylaw revisions on behalf of the City of Santa Ana. 65A-1 Designate a Voting Delegate and Alternate for SCAG March 20, 2018 Page 2 The City delegate representative will receive a complimentary one-night hotel accommodation at the Renaissance Resort & Spa for the night of May 3. An invitation was sent to the entire City Council as the conference registration is free for all elected officials and city managers in the region. 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 65A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: AUTHORIZE THE CITY MANAGER AND CITY ATTORNEY TO ENTER INTO AGREEMENTS RELATED TO REVENUE GENERATION IN AN AMOUNT NOT TO EXCEED $100,000, THROUGH DECEMBER 31, 2018 {STRATEGIC PLAN NOS. 1 THROUGH 7} � � r I MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and City Attorney to enter into agreements related to revenue generation in an amount not to exceed $100,000, through December 31, 2018. BACKGROUND On February 5, 2018, at a Special Council Meeting, the City Manager and Executive Director of Finance provided the Mayor and City Council with an update on CalPERS, a mid -year budget update, a preliminary budget for FY 2018/19, and a revised Five -Year Forecast. During this presentation, it was noted that the current Fiscal Year 2017/18 budget has a $9.3 million deficit, with the next two fiscal years having a projected $16.9 million and $31.8 million, respectively. Staff, in consultation with the Mayor and City Council, are working diligently to find ways to address our budgetary challenges, while maintaining services to the community. This has included looking at ways to provide services alternatively, reviewing purchasing practices, and also looking at revenue generation. In order to continue pursuing options for the City Council to consider, staff requires the assistance of experts from a cross sections of industries. This expertise must be retained in order to properly evaluate options. At this time staff has begun preliminary research to identify various firms, however no decisions have been made. Because time is of the essence, staff is requesting this authority. In order to properly track these costs, a project activity code will be created within the City's accounting software and no expenditures will be made without the concurrence of both the City Manager and City Attorney. 6513-1 Agreements Related to Revenue Generation March 20, 2018 Page 2 At this time, staff is requesting authority for up to $100,000. Although staff does not anticipate needing the entire amount, this would prevent any delays that may place revenue options in jeopardy. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet all seven goals and objectives of the strategic plan which include: 1) Community Safety; 2) Youth, Education, Recreation; 3) Economic Development; 4) City Financial Stability; 5) Community Health, Livability, Engagement and Sustainability; 6) Community Facilities and Infrastructure; and 7) Team Santa Ana. FISCAL IMPACT Fund are available within the FY 2017/18 Non -Departmental Account to cover these potential expenditures (01105015-62300). APPROVED AS TO FUNDS AND ACCOUNTS: 11, Francisco Gutierrez i Executive Director Finance & Management Services Agency 65B-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 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) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a 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). 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' 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 ' Assembly Bill 2299 and Senate Bill 1069 that took effect January 1, 2017, and Assembly Bill 494 and Senate Bill 229 that took effect January 1, 2016 75A-1 Zoning Ordinance Amendment No. 2017-04 — Amend Sections of Chapter 41 of the SAMC Relating to Accessory Dwelling Units March 20, 2018 Page 2 state provisions, and introducing new tailored ADU regulations that recognize the diversity of Santa Ana neighborhoods. DISCUSSION Staff presented the recommended changes, found in Exhibit A, to certain sections of Chapter 41 of the SAMC to replace the City's second dwelling unit ordinance to the City Council on November 7, 2017. At said meeting, staff was directed to prepare a study session related to accessory dwelling units. At the December 5, 2017, City Council meeting, staff delivered a presentation related the changes to state law that caused the City's previously existing ordinance to be unenforceable and were the catalyst for the update. In addition, staff discussed the community engagement efforts that led to the development of standards that were included in the draft. After discussing the development standards included in the draft, the City Council directed staff to analyze provisions in the draft ordinance related to open space deficient areas, setbacks and parking, and recommend amendments that would allow ADUs to be constructed citywide while limiting parking impacts and protecting neighborhood character. Subsequently, a second study session was held at the February 20, 2018 City Council meeting, where staff presented recommended changes to the previous draft ordinance. The following provides a brief summary of the key provisions of the recommended amendments: 1. Open Space Deficient Areas - Section 41-194.5(7) The City's obsolete 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 in an open space deficient area did not qualify to construct an ADU. Recognizing the severity of the housing shortage and that the areas that were previously deemed "open space deficient' would greatly benefit from additional housing units, the proposed ordinance permits the construction of ADUs in all areas of the city provided 1,200 square feet of private open space is maintained on the property. Requiring private open space on lots with ADUs will maintain a more livable environment for residents and assuage the strain on limited parkland resources in the City. 2. Parking for ADUs - Sections 41-194.9, 41-194.10 The proposed ordinance would require one off-street parking space be provided for an ADU, unless the ADU has no bedrooms, in which case no parking space is required. 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 (a bus stop with fixed route express bus service that provides transit service at 15 -minute intervals or better during peak commute periods), 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 75A-2 Zoning Ordinance Amendment No. 2017-04 — Amend Sections of Chapter 41 of the SAMC Relating to Accessory Dwelling Units March 20, 2018 Page 3 occupants of a second dwelling unit, or if second dwelling unit involves the conversion of a portion of the existing primary residence or an accessory structure. Modifications to sections 41-194.9 and 41-194.10 of the proposed ordinance reviewed by the Planning Commission have been made to comply with Senate Bill 229 and Assembly Bill 494, which took effect January 1, 2018. 3. Setbacks and Site Planning - Sections 41-194.6(1), 41-194.6(3), 41-194.6(4), and 41- 194.7(1) 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. However, a rear yard setback of 10 feet will be required for detached ADUs instead of the 20 feet required for primary buildings. The reduced setback for ADUs will allow flexibility in site planning and spatial relationships between buildings to be maintained. Design standards will also be applicable to ensure that privacy of neighboring properties and neighborhood character are maintained. 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. Moreover, members of the public were informed of the two study sessions regarding the ordinance and generally expressed support for the staff recommended changes. 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). 75A-3 75A-4 Zoning Ordinance Amendment No. 2017-04 — Amend Sections of Chapter 41 of the SAMC Relating to Accessory Dwelling Units March 20, 2018 Page 4 FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP Acting Executive Director Planning & Building Agency RS:rb SARFCA\03-20-181Z0A17-04 ADU\PBA ZOA17-04 Accessory Dwelling Units 3,20.18.doc Exhibit: A. Planning Commission Staff Report B. Ordinance C. Correspondence 75A-5 75A-6 REQUESTFOR 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. 20117-04 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 ❑ As Recommended Cl As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request LI Staff Rep"mend'ati6n :CONTINUED TO Acting Executive Director Acting Planni g Mana r 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'Aha 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). Prosect Description The proposed amendments to Chapter 41 of the SAMC would replace the City's second unit ordinance, established in 2003, with a new accessory dwelling unit (ADU) ordinance (Exhibit -1). The ordinance will incorporate new provisions of the state ADU law (AB 2299 and SB 1069) 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 75A-7 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 govemments 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 had broad 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 Ana Municipal Code .(SAMC), regarding second dwelling units in accordance.with the changes made at the state level. The.ordinarice allowed forseconddwelling units to be constructed in residential zoning districts pn?vlded 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 affordable housing 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 theperceived_prohibitive local regulations, state legislators approved Senate Bill 1069 (SB1069) and Assembly Bili 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 A132299, Santa Ana's local ordinance Was superseded by state law 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 75A-8 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 rear setbacks 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 ''/z 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 stricture is demolished in conjunction with the construction of an ADU, the replacement parking spaces may be located in any configuration on the same 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 notqualify to construct an ADU. While a vast majority of the city that was considered open space'defiicient 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 dhat 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 75A-9 Zoning Ordinance Amendment No. 2017-04 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 the second 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. Reoulatin4 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 and the street adjoining the front yard, to maintain the appropriate relationship between accessory and primary structures on a lot. However, AB 2299 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), 75A-10 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 in November 2016. Staff also met with -Community Linkage Forum'(Coml-ink) in August and September201746 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 report (Exhibit 5). CEQA Compliance In accordance with the California Environmental Quality Act (CECIA),'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 2017-129 will be filed forthis 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 S7PGZ01700-23C712UA17-04 Accessary DAiAing Urf, a.pc 75A-11 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 75A-12 ZONING; ORDINANCE AMENDMENT NO. 2017-04 PROPOSED MODIFICATIONS Strike -out is deletion Underline is addition Definitions Sec. 41-150.5. - Seeend Accessory dwelling units. An seeand accessory dwelling unit is an attached or a detached residential dwelling unit which provides complete independent living facilities for one .or mote 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 "seeontl-accessory unit," as that teml is defined in California Government Code section 654842.2(i)(4), as it hilly be amended from time to time. Use Distriets - General Provisions See-1-194--See-eltd d. ^1, 44i --units cels b ' space .....1,..t the existing ti......rovlded-the-following-Irtlfttstela.al), applied ,.i.,.;.1.....1........ et: (a)—Ne--seeond-dwells unit A.11 be ..e:...::....,7 a fiafty dtl.'iotaiet as cletieieut-irrl�ul�lie epen3paee ns shown-on-the-ntap-cntiiled�Areas „rn.,..., rpfle.. council-. (b)The—second—dwelling eet-, The hundred lifty (750) square #eet or thirty-(30)-per-eet , w4iieltev& is firs. p" vided, "....�eveF that the seeend dtvellin� ttltit-shad-ili-all-eases be p..fmit'"fl is `•. -. -.:-:•., m of three hundred -(300) squat v feet ( )— r.:,e., :z—=. �ltis�ltapter, shall -trot d Titt�lt�t--ct>varat=bc�-fe� n......,_.,..1_ its that leen, I-- fle ,.--d thle p.............n ......peeir ti-the-ttnderlying;zoniug-disn-ict. (e) The-size-and-loeatiotreel-te-be reduced "vo4tundtvd-(1 00) -square -feet -of -usable; eantintiou-tten-€ro"zarti-open-space-oscluding-d riveways awl p r4ing iffeas. AH5 open -space tvitlt-a tninimuttt dit{renes tall-1te I EXHIBIT 1 75A-13 (1) The lint-yard-setbaek-sllall-b not -less -than -twenty -p_0)1 feet wfn the street. •,".^ ^ ...._. ink! ...........1. _, dwell: unmis, ;•Mall eof"ply-wi(h he-provisien"Pseetions (aE} The-rear-yard-shall-be-a-minimum-o€telt-(19)f'eeF (j)---44ie (1) pa..,.:.....-^aee ^..,..,ided per- ..,d.00m ori, see, ^d dwelling-unit-wilt-a-nlnintunt-on-one-(I)-parkihtg-space . elid dwelling unit. tom-primary-dwollingatnit-iFt-tho-tmderlying zottingdisfrieE (1) The e, .,.��,-,,.nier„-a.,n--«.,r-e of the raoP eNie,,.,.-%ya..s n enestration-c>f-a r.,, No utladWd ..eeond dwelling ,..+hall-have,tn-outsideAeor-onthe-pr{mary dwellingele,vaiian ef the primary ' (o) �Pie ,;eendw.,^ e' n4-shall-not4tc-a-trailer-coach; reereatie home, its !hose iemis fire dekud in siate !HA.. (h` 'r,�w,e�econd-dweNind In1f is-lo-he-collsttticfed olltrpareet is^^'0a�,, .,n the c.;a.,. , tateor- ,.,., a list „r..:,.^:r,.,..^, , istoiio resoareecthe- l'E{hnd-dwellhig-unit-Shall-llot "lac^., or cons.. -sets., SO HS tO _,..-..lt iH ,.....,di float:,.,. „r the exist %-4iMode 75A-14 (y) Th"wner , ownem „r th 1 ;a,..0 1:1 .,.:1> l,e-plt}aping manager -a recorded eavellaiiiin a rofm .,.1 by !b .:.. attoffley affin"ing and ,gg8tttiHg-�1taE eithe.. the pfifflaE5, dwelling anit or the ....,.ead dwelling „R;I shall be o neF emipie& `,r\ The ,..,..and dwelling unit ..1,.,11 ....,,6win i., Wie ..._„livable ac-sigtt.tandarde eatitained in the urban design elemnent of the eity's gefiefal plan. unit-weuld-create-n-nott-eonfot•tnity-to-tFtiseHn{>ter: The p1miHir'g--Funafil- ao-eff Aalnprepare wfitien p ia6evldFesl:• nletiEation-,cit tl.:......TTsco-ocetiei'c,iiriCti'1n•••• :••••L..l .. ...... d...•H......,1 F ..,,...r ...1 ...:.....,d .1......;.....• Ne ei5afl-er-pet30ns-owning-lin}-pareel-ettie a end ;i4eelli.. Onit has 1..,en constnicted-pursuanTA t-to-section4i- -Aiial4annit-any-person-to-occup"tielt se F -1-11--d {he ftiliO ..n9 co".U. (1) All development of thb site must be in aeemihfflee wiIh Oie philis ang drawings appm,ed-pursuant-to-sectioit41-49 -. have on file with tlie-planning,and- iu:lditi ....:. ftey it _:...;._, ed;..., c,..,,. approved-by-tho-eity attorney demonstrating-coiitpliance wtiil�itisrtiRt:i�ttmt: Qu�r�r�xr=unelee� �nee�lm+rnr. From -time -to -time, tlto-city-council-shall-by-ordinance-or-tesoluti y eft establish. appfep appt 1 .., I r,.,.. Ibr persons .,.,,.;ng approval ogpl. ttsand-draNdiiigs-for-a-seeond dwelling tknit. Such kaes AF -11 not eveeed the reasonable e6st of b stiob an approval -or appeal See.,u ,—rr 194.3. eee..., .,....,,r.... ;L. �.....:,....r_,....:.,o �oiting adFninistrator deeisit� Any -person -aggrieved -by -•a -determination -of -the -planning -manager- e disapprovplans and drawing, ,...bmit(ed p.:.... ,..I to eefi..,_ 41 194 may r.,. an . pp fi jon-fora-minoFCXCeption zoningy4iieh shall be heard by the application-ntay-inetude-a-request-to-vary-from-tlie-standards o€-seetien 41 194. The .1:,eisi,.n a the aonutgadimttttstrater-ot"uch application or n.- ^pplivalio n-oC41 08 -may -be -appealed -to -the 75A-15 Sec. 41- 194. - Purpose. The putrosc of this section is to provide reasonable reeulations for (lie development of accessory dwelling units on residentially zoned properties on lots developed or proposed to be developed with single-family residential dwellings Such regulations are intended to mitigate potential dwelling units in residential areas, including California Government Code section 65852.2. See. 41-194.1 - Definitions. As used in tliis Section, the following wonls terms or phrases have the following meanings: (1) "Attached accessory dwelling unit" means a 'residential dwelling .unit that is Safety Code section 17958.1. (2) "Detached accessory dwelling unit' means a residential dwelling unit that is 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. (3) ordinance. (4) (5) "Living tired' is defined as the interior habitable arra of a dwelling unit but not including n garage or any accessory structure. (6) "Primary dwelling" means an esistimg single-family residential structure on a single parcel with provisions for living, sleeping„ eating. a single kitchen for cooking, and sanitation facilities occupied and intended for one household See. 41-194.2 - Amnlicabili(y. (1) The development and design standards in this section shall be applicable to all accessory dwelling units, (2) The Director of the Planning and Building Agcncy. or his `her designee, shall review and approve, or deify ministerial permits for accessory dwelling 4 75A-16 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-conforint to this chanter, with exception of minimum lot sire, provided they dd not create anv new non -conformances. (2) A parcel shall comply with the current parking standards ofthis chanter prior to or concurrent with the establishment of an accessory dwelling unit.. Sec. 41-194.4 - Perntitied Zones. Accessory dwelling units are Permitted in fltcRI. R2, R3, R4, CR, A I, or RE zoning districts, or on a parcel within my Specilic Plan or Specilie Development, zoning district in which residential uses are pemiitted, map entitled "Areas of Open Space Deficiency" on file with the clerk of the council. Sec. 41-194.6 - Use Restrictions. (1) An accessory dwelling unit may be developed on a lot that either: (a) Contains one legally established single-lamilyresidence, or (b) Will have one new detached single-family residence pemtitted concurrently with the accessory dwelling unit. (2) Only one accessory dwelling unit may be located on the lot. (3) The accessory dwelling unit shall not be sold separately from the primary dwelling. (4) The accessory dwelling unit sliall not be rented for periods of less tlian 30 days. (5) Theprimary dwelling unit or the accessoly dwelling unit shall be continuously occupied by at Icast one person having in ownership interest in the list. (1) Minimum Lot Arca. A minimrim lot area of six thousand (6,000) square feet shall be required in order to establish an nccessory dwelling unit. (2) 75A-17 the size of the living area of the primary dwelling unit on the parcel, whichever is less. (3) Minimum Sire. The accessory dwellina unit shall contain no less than the 220 square feet of living area the City requires for ari ellieiency dwelling unit as defined in Section 17958.1 of the Health Sc Safetv Code. (4) Lot Coverage. The lot coverage for the parcel, as that teen is defined in this chapter, shall not exceed the percentage specified in the underlying zoning district. (5) (G) (7) 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 otiicial Standards forTreatmcnt of Historic Properties. (8) Passageway. No passageway shall be recluirect in conjunction with the constniction of an accessory dwelling unit. For the purpose of this section, "nassagcw'ay" shall mean a nathway that is unobstructed clear to the sky and extends from a street to one entrance of the aemsory dwclliita unit. Sec. 41.194.8 - Development Standards — Detached Accessory Dwelling Units. Detached accessory dwelling uiiits shall comply with all provisions in Sec. 41-194.7, in addition to the hollowing: (1) the top of the structure. (2) :Separation. There shall be a minimum of fifteen ( 15) feet separation between the primary dwelling unit and a detached accessory dwellinp. unit and a minimum of five (5) feet behyeen a detached accessory dwelling unit and an accessory building. Separation shall be measured from the exterior wall of the primary dwelling ttnil to the nearest wall of the accessory dwelling unit or attached stricture. 75A-18 (3) Site Planning. A detached accessory dwelling unit shall be located behind the rear huildin,, line of the primary dwelling and he clearly subordinate_ by location and size. Sec. 41-194.9 - Development Standards — Attached Accessory Dwelling Units. Attached accessory dwelling units shall comply with all provision in Sec. 41-194.7, in addition to the following: zoning district. (2) Exterior Stairs. An attached accemmy dwelling unit shall have no exterior stairs. (3) from the street. rcq_uirements., (2) Maximum Size. Is a maximum of seven hubdred fitly (750) square feel of living (3) 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 (6) 75A-19 subsection shall not apply to accessory dwelling units thatgualifv for a parking exception listed in subsection 41-194.12. (1) One (1) narkinc pace per bedroom. A minimum of one (1) narking space shall be provided for the accessory dwelling unit. (2) When a garage is demolished in coniunction with the construction of an accessory spaces, uncovered spaces. tandem spaces, or by the use of mechanical automobile Parking lifts. Sec. 41-194.12 - Parking Exceptions. No off-street parking shall be required for an accessory dwelling unit in any of the following circumstances: (1) during peak commute periods. (2) The accessory dwelling unit is located within an historic district. (3) The accessory dwelling unit is nart'ol'the existing tirimary dwelling or an existin 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 poses of this section, "car -share vehicle" shall mean part of an established nroaraitu intended to stav in a fixed location for at least 10 vears and available to the public. Sec. 41-194.13 - Restrictive Covenant. Prior to issuance of a building permit for -an accessory dwelling unit, a covenant consenting that either the priniary dwelling unit ar 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 nm (1) The accessory dwelling unit shall not be sold separately from the printer dwelling. (2) The unit is restricted to the approval size and attributes of this chapter. 75A-20 (3) The covenant restrictions run with the land and may be enforced against finurc purchaser. (4) The covenant restrictions may be removed if the owner eliminates the accessory dwelling unit. (5) the property owner to comply with' the covenant restrictions may result in Icgal action against the property owner and the City shall be authorized to obtain any Sec. 41-194.14 - Appeals of planning manager or zoning administrator decision. Am• person administrator on suen ayolteation may he appealed to the planning commission pursuant to said Article V. Sec. 41-194.15 - Applicability to other regulations. The provisions of this article are not intended to provide exclusive regulation of accecsory dwelling units. Such uses must comply and the provisions of other articles of chapier_41 of this Code. the provisions of this article shall prevail. Use Districts — Regulations Specifically Sec. 41-236. - Rear yards in the R1 district. There shall be a rear yard setback of not less than twenty (20) feet. T4+is-i,• upplyto legal seeeud-dwelling-units: 75A-21 A j LEGISLATIVE 1NPORAdATION Home Bill Information Calilornla Law Publications Oiher Resources My Subscriptions My Favorites SHARETHIS: ® `J A13-2299 Land use: housing: 2nd units. r2oi5•ioib) Assemble hill No. 2299 CHAPTER 735 An act to amend Section 65852.2 of the Government Code, relating to land use. [ Approved by Governor September 27, 2016."Filed with Secretary of'State September 27, 2016, 1 LEGISLATIVE COUNSEL'S D[GFST AS 2299, Bloom. Land use: housing: 2nd units. The Planning and Zoning Law authorizes the legislative body of a city or county to regulate, among other thlnas, the Intensity of land use, and also authorizes a local agency to provide by ordinance for the creation of 2nd units in single-family and multifamily residential. zones, as specified. Existing law authorizes the ordinance to designate areas within the jurisdiction of the local agency where 2nd units may be permitted, 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 the term "second unit" .with "accessory dwelling unit." The bill would, instead; require the, ordinance to include the elements described above and would also require the ordinance to require accessory dwelling units to comply with specified conditions, This bill would require ministerial, nondlscretionary approval of an accessory dwelling .unit under an existing ordinance. The bill would also specify Lhat a local agency may reduce or eliminate parking requlrements for any accessory dwelling unit located within its jurisdiction. Existing lar requires that parking requirements for 2nd units not exceed one parking space per unit or per bedroom. Under existing law, additional parking may be required provided that a finding is made that the additional parking requirements are directly related to the use of the 2nd unit and are consistent with existing neighborhood standards applicable to residential dwellings. This bill would delete the above-described authorization for additional parking requirements. By increasing the dudes of local officials with respect to land use regulations, lids bill would Impose a state - mandated local program. This bill would Incorporate additional changes In Section 65852.2 of the Government Code proposed by SB 1069 that would become.operatiye only if 5B 1069 and this bill are both chaptered and become effective on or before 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 mandated by the state. Statutory provisiolis establish procedures for making that reimbursement. This bill would provide thaL no reimbursement is required by this act for a specified reason. Vote; majority appropriation: no fiscal Committee: yes Local Program; yes EXHIBIT 75A-22 THE PEOPLE OF THE STATE OF CALiFORNTA DO ENACT AS FOLLOWS: SECTION 1. Section 65852.2 of the Government Code Is amended to read: 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in single- family and multifamily residential zone's. The ordinance shall do all of the following: (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 dwelling units on traffic flow and public safety. (B) Impose. standards on accessory dwelling units that include, but are not limited to, parking,, height, setback, 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. (C) Notwlthstanding subparagraph "(6), a local'agency may [educe or eliminate parking requirements for any accessory dwelling unit located within Its jurisdiction,. (0) Provide; that accessory dwelling units do 'not exceed ,the. adlowaple density for the lot upon ;which the accessory' dwelling unit tsil cated, and that accessory dwelling units are a residential use that is consistent with the existing general plan.and.zoning desfgnationforthe lot, (Ep Require the"accessory; dwelling units to comply with all'of the foflowlni : (f) The.unit is not intended for sale separate from.fhe-primary residence and•may be rented; (R) The let is Toned for single-farrilly or multifamlly use; (fii),The-accessory dwelling unit is either attached to the existing dwelling or located within the living area of tile existing dwelling or detached from the existing dwelling and located on the same lot as the'existing.dwelling. (iv) The increased floor area of an attached accessory dwelling unit shall not- exceed 50.percent of the.existing living area. {v) The total area of floorspace for a detached accessory dwelling unit•shall not exceed 1,200,square feet. (vi) No passageway shall be required in conjurctiun with the constructionof an accessory dwelling unit. (vip Nq setback shall be required for an existing garage that is coriverled to a accessory, dwelling unit, and a setback of no. more than five feet from the side and rear lot lines shall he. required for an acciissoty'dwe8ing unit. that is constructed above a,garage; (viii) Local tiuiiding'coderequirements that applyto'detached dwellings, as appropriate. (ix) Approval by'the local health officer where a private sevrage disposal system is being used, If required. (x) (f) Parking requirements. for accessory dwelling units shall not exceed one parking space per unit or per bedroom. These spaces may, be provided as tandem parking on,anexisting driveway. (IT). Offstrectparking•shall be permitted insetliack areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in "setback areas or tandem ;parking is not feasibletbaseid upon specific site or regional topographical or fire and life safety conditions; or that itis not permitted anywhere else In the jurisdiction.. (xi) When a garage, carport, or covered parking structure is demolished in corijuoction with the'constrvctlon oF, an accessory dwelling unit, and toe local agency requires that those�offstreei parking spaces tie replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit,, Including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parkin"lifts: (2) the ordinance shall not he considered in the., application of any local ordinance, policy; or program to limit Fail dential growth. (3) when a local agency receives its first application on or after July 1, 2003, for a" permitpursuant to this subdivision, the application shall be considered ministerially without discretionary review or a hearing, 75A-23 no.rrithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances Pr special use permits, within 120 days after receiving the. application. A local agency may charge a fee to reimburse it for costs that It incurs as a result of amendments to this paragraph enacted during the 2001-02 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 governing the creation of accessory dwelling units by a local agency or any such ordinance adopted by a local agency subsequent to the effective date of the act adding this paragraph shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units except as otherwise, provided In this subdivision. in the event that a local agency has an existing accessory dwelling unit ordinance that falls to meet the requirements of this subdivision, that. ordinance shall be null and void upon the effective date of the act adding this paragraph and that agendy shall thereafter apply the standards established in this subdivision for the approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this section. (5) No other local ordinance, policy, or regulation shall be the basis for the.donial of a. building permit or a use permit underthis, subdivision. (6) This subdivision establishes the maximum standards that local' agencies shall use to evaluate proposed accessory dwelling units on lots zoned for residential use that contain an existing single-family dwelling. No additl6 ial standards, ather .than those provided In this subdivision, shall be utilized or Imposed, except that a local agency may require an applicant for a permit Issued pursuant to this subdivision to, be an, owner -occupant. (7) A local agency may amend Its zoning ordinance or general plan to incorporate the policies, procedures, or, other provisions applicable to the creation of accessory dwelling_ units If these provisions are consistent with the limitations of this subdivision. (8) An accessory dwelling unit that conforms to this subdivision shall be deemed to be accessory 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 use that is consistent with the existing general plan and zoning designations for the lot. The accessory dwelling units shall not be considered In the application of any local ordinance, policy, or program to limit residential growth. (b) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives Its first application on at, after July 1, 1983, for a permit .pursuant to this subdivision, the focal agency shall .accept the application and approver or disapprove the application ministerially without discretionary review pursuant "to subdivision (a) aA!.Nn 120,days after receiving the. applicaLio i. (c) A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling, units. No minimum or maximum size for ar accessory 'dwelling unit, or size based upon.a. percentage of the existing diwalling, shall be.ostablished by ordinance (or,elLher attached or detached dwellings that does not permit. at least an efficiency unit zto he constructed in 'compliance with local development standards. {d) fees charged for the construction of accessory dwelling units shall be. determined In accordance with Chapter 5 (commencing with Sectiori 66000). (e) This section does not limit the authority of local .agencies to adopt'less 'restrictive requirements for the. creation or accessory dwelling units, provided those requirements comply With subdivision (a). (f) Local agencies shall submit a copy of the ordinances. adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. (g) As used in this section, the following terms mean: (J) "Living area" means tilie Interior habitable area of a dwelling unit including basements and attics but does not Include,6. garage or any accessory structure. (2) "Local agency" means a city,rcounty, or city and county,, whether general lawor chartered, (3).For purposes of this section, "neighborhood" has the same meaning as set forth in Section' 65589.5. 75A-24 (4) "Accessory dwelling unit" means an attached or a detached residential dwellirig unit which provides complete Independent living facilities for one or more persons, It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated, An accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17458.1 of Health and Safety Code,_ (0)-A. manufactured home, as defined in Section 18007 of the Health and Safety Code. (C) "Passageway" means a pathway,that is unobstructed 'clear to the sky and extends from a street to one entrance of. the accessory dwelling unit. (h) Nothing in this .section"shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local government shall not be required to hold public hearings, for coastal development permit applications for accessory dwelling units. SEC. -1.5. Section 65852.2',of the Government Code is amended to.read: 65852.2..(a)'(1) A, local agency may,"by ordinance, provide for the creation of accessory dwelling units in single+ family and multifamily.restlenual zones., The ordinance shall do all of the following: (A) Designate areas within the;jurisdiction of the local agency where accessory dwelling units. maybe permitted. The designation of areal ria y'be based on. -criteria; that rt ay'Inclutle, but are not limited ao; the adequacy of water and sewer,services.and the Impact of accessory dwelling units on trafftc.fiow and public safety. (8) (1) Impose standards on .accessory dwelling units that include, but are not. limited to, parking, height,, setback,, lot coverage, landscape, architectural review, maximum size of a unit, and standards that prevent adverseimpacts on.'any real property that -Is listed in the California Register of Historic Places: (II) Notwithstanding clause (Ij, a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (C) Provide that accessory dwelling units do not exceed the allowable density for the lot upon which the accessory dwelling unit is located, and that accessory dwelling units are a residential use that is consistent with the existing general plan and zoning designation for the lot. (b) Require the'accessory dwelling units to comply with all of the following: (i). The. unit is not intended for sale separate from -the -primary residence and may be rented. (li) The lot is zoned for single-family or multifamily, use and contains an existing, single-family dwelling, (iii) Theaccessory dwelling .unit is either attached to the existing dwelling or located within the living area of the. existing dwelling or detached from the existing dwelling and located on the sante lot as the existing dwelling. (iv). The increased floor area of an attached accessory dwelling unit shall Prot exceed 50 "percent of; the existing living"ai:ea, with a maximum Increase in floor area of i,200 square feet. (v) The total area of floorspace for a detached acce.ssory' dwelling unit shall not exceed 1,200 square feet. (vi)N6'passaaeway shall be required in conjunction with theconstruction of an accessory dwelling unit. No setback shall be"requ[red for an existing garage that is converted to -a accessory dwelling unit, and. a setback of no more than five feet from the side and rear lot lines .shall be required for all accessory dwelling unit that is -constructed above,a ga,age. (viii) Local building code requirements that apply to detaclied'dweliings, as appropriate. (ix),Approval by the local health officer where a private sewage disposal system is -being used, If required. (x) (1) Parking requirernents'for accessory dwelling units shall not exceed one parking 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 sotback areas or tandem parking Is not 75A-25 feasible based upon specific site or regional topographical or fire and life safety conditions, or that It Is not permitted anywhere else, in the Jurisdiction. (111) This clause shall not apply to a unit that is described in subdivision (d). (xi) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, and the local agency requires that those offstreet parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem =paces, or by the use of mechanical automobile parking lifts, This clause shall not apply, to a unit that is described in subdivision (d). (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) When a local agency receives Its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be considered ministerially without discretionary review, or a hearing, notwithstanding Section 65401 or 65906 or:any.local ordinance regulating the issuance of variances or special use permits,, within 120,day5 after receiving the application. A local agency may Ogige a fee,to reimburse It for costs that it Incurs as a. result of amendments to this paragraph enacted during lthe20o1-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance that provides for the,creation of an accessory. dwelling unit. (4) Ari -existing ordinance governing the creation of an accessory dv elling iinit. by a local agency Oren accessory dwelling ordinance adopted by a local agency subsequent to the effective date of the act adding this".piiragraph shall provide an approval process that includes only -ministerial provisions for�the'approval of'accessory dwelling units and shall not Include any discretionary: processes, provisions, or requirements for those units, except as otherwise provided in this subdivision, in the event that a local agency has an existing accessary. dwelling unit ordinance that fails to meet the requirements of this subdivision, that ordinanceshall be null and Vold 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 dwelling units, unless and until theagency adapts an ordinance that'coriiplies wJith tills section. (5) No other local ordinance, policy, or regula den shall be the basi's for the denial of a building permit or a use permit ander this subdivision. (6) This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot zoned for residential use that.,cantains an existing single-family dwelling. No additional standards; other than those provided in this subdivision, Shall be utilized or Imposed, except that a. .local agency may require an applicant for a permit Issued pursuant to this subdivision to be an owner-accupant or that the property be used (or rentals of terms Ionger.than:30 days.: (7) R local agency may amend its zoning ordinance or general plan to incorporate the -policies, procedures; or other provisions applicable to the creation of an accessory d•.veiling unit if these provisions are consistent with' the limitations of this subdivision, (8) An accessory dwelling' unit that conforms te, this subdivision shall be deemed to be an accessory 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 use that is consistent�wlth the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application :of any local .ordinance, policy, or program to limit residential growth. (b) When a local agency that has not adopted an ordinancegoperniing accessory dwelling units in accordance with subdivision (a) receives its first application on or after July 1, :1983, for a permit to create an accessory dwelling unit pursuant to this subdivision, the local agency shall accept thz application and approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a) within 120 days after rec6ving the application. (c} A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. No minimum or maximum size for an accessory dwelling unit, or size based upon a percentage of the existing dwelling, shall be .established by ordinance for either attached or detached dwellings that does not permit at least an efficiency Unit to be constructed in compliance with local development standards. Accessory dwelling emits shall not herequired to provide fire sprinklers if they are not required for the primary residence. 75A-26 (d) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing accessory dwelling units in accordance with subdivislcin (a), shall not impose parking standards for an accessory dwelling unit in any of the following instances: (I) Th'e, accessory dwelling unit is located within one-half mile of public transit. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of theexisting primary residence or -an existing accessory.structure. (4) When ori -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 wKininone block of the accessory. dwelling unit. (e), Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall ministerially approve an application for a building permit to create Within a single-family residential zone one,accessory dwelling unit per single-family lot if the unit Is contained writhin the existing space .pf a single-family residence or accessory structures has Independent exterior access from the existing residence, and the side and 'rear setbacks are sufficient for fire. safety. Accessory dwelling units shall not be teg6lreci to provide fire sprinklers If they are not roquired for the primary residence, (f) (t) Fees charged for the construction of accessory dwrelling units shall be determined in accordance with Chapter 5,(commencing with Section 66o00).and.Chapter 7 (commencing WIth Section 66012),, (2) Accessory :dwelling units shall not be coZ nsidered new residential uses for the purposes. of calculating. local agency connection fees or, capacity charges for utilities Including Vtaterand seyicrservice. (A) For an accessory dwelling unit described in subdi4lsion (e), a local agency shall not require the applicant, to Install a new or separate. utility connection directly between the accessory dwelling unit and the utility o[ impose a related connection fee orCapacitycharge, (B) For an accessory dwelling unit that Is not described in subdivision '(e), a local agency may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent witb'.Sectlon 66013, the connection may be subject to a connection fee or rapacity charge that shall be proportionate to. the burden of the proposed accessory dwelling unit, based upon either its size or the number of its plumbing fixtures, upon the watef or sesver,systern. This fee or charge shall not exceed the reasonable cost of providing this service. :(g) This section does not limit the authority of ,local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit. (h) Local agencies shall submit a copy of the ordinance adopted pursuant to subdivision (a) to'the Department of Housing and Community Development within 60 days after adoption: (i) As used in this section, the following terms mean. (1) "Living.area" means the interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure. (2) "Local agency" means a city, county; or city and county, whether r general law or;cha iteired. (3) For purposes of this section, "neighborhood" has the same meaning as set forth in Section 65589':5. (4) "Accessory dwelling unit" means an attached Ora detached residential dwelling unit which provides'eamplete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includestile following: (A) An efficiency unit, as defined In Section 17958;1 of Health and Safety Code. (B) A manufactured home, as defined in'Section 18067 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 dwielling unit. 75A-27 rj) Nothing in this section shall be construed to supersede or in any way alter or lessen the .effect or application of the .California Coastal Act (Division 20 (commencing with Section 30000) of the Public' Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for accessory dsvelling units. SEC. 2. Section 1..5.of this bill incorporates amendments to Section 65852.2 of the Government Code proposed by both this bill and Senate Bill 1069. It shall only become operative if (1) both bills -are enacted and become efrective oil or before January 1, 2017, (2) each bill amends Section 65852.2 of,the Gove.rnment Code, and (3) this bill is enacted after -Senate Bill 1069, in which case Section 1 of this bill shall not become operative, SEC. 3. No reimbursement Is required by this act pursuant to Section 6 or Article XIIIB of'the California constitution because a local agency or school. district has the authority to levy service charges, fees, or assessments sufficient topayfor the program or level of service mandated by this act, within the. meaning of section. 17556 of the'GovernmentCode. 75A-28 City of Santa Ana Open, Space Deficient Areas D I.� 1 l `}• L P f ,, r 111 I t 1 1. t �71 A Cl.r I �r 1 EXHIBIT 3 75A-29 Lip r t �71 •tl� � i�� Pk �`t ..�1 EXHIBIT 3 75A-29 r t �71 41 li'; 1 I , • i i _.—ttom - ;-,"'" ;��-//-////` EXHIBIT 3 75A-29 City of Santa Ana Transit Proximity Map OCTA Express Bus Routes 15 Minutes (or less) with Limited'Stops Weekday Ruse Hour Frequency 102 mile radius from Bus Stops EXHIBIT 4 75A-30 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 Com 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 AUDs expensive and somewhat difficult. I also find it ironic that the same people who complain about illegal units. are also apposed to a path to legalization: Thanks sent from my (Phone EXHIBIT 5 75A-31 Soto, Ricardo From: Mike Tardif <mike@ tardifsheetmetal.com > Sent: Friday, August 25, 2017 1:29 PM To: aaandres@andresiaw.com; Adchristy@aol.com; Alison.Young@phs.com; anncoil@att.neC bacerra@yahoo.com; bist@sbcglobal.net; chisp2@gmail.com;'Dave Lopez; david@heli otrope•studios.com; dianemorter@gmail.com; clickmanaj@attnet; Don Cribb, Tcl Murashie'; foscag4@gmail.com; fraudfinders20lb@gmaii.com; George@santa-ana.ty; ginelleann@gmail.com; Helen Martinez: imacias1230 @yahoo.com;'Irma Jauregui'; JanelleMcloughlin@gmail.com; Javier@washington- square.org; jean@kolodny-anteau.com; keren1219@aol.com; kirstensketch@me.com; Lauratobiasgarcia@gmail.com; LiLia.Ramos23@yahco.com; j.bateson@sbcglobal.net; LuterLutz@aol.com; Mcewenl@aol.com; Nancy-Lutz@sbcglobal.net olivana@dslextreme.com; oscargarza@gmail.cok pdavid.benavides@gmail.com;'Peter Katz',, Phil Bacerra; Evangeline Prodigy Gawronski; 'Rene Guzman'; rvdave@roadrunneccom; Sarahcrealtor@gmail.com; Stprstn@aol.com; suml@anet.net; Susan van der Roest; 'Terry McCall'; TFlarnmang@sbcglobal.net; thomas.a.gordon@gmail.com; timrush@bhhscaprops.com; vjedge@pacbell.net Ce: SantaAnaCitizens@yahoogroups.com; Neal, Candida; Kutner; Scott; Soto, Ricardo; Benavides, David; Solorio, Jose; Villegas, Juan; Martinez. Michele; Pulido, Miguel; Tinajero, Sal; Sarmiento, Vicente Subject: Granny flats - City staff announcement Coin -Link meeting yesterday Re: Santa Ana Com -Link meeting yesterday Thursday, August 24, 2017 Announcement by City staff regarding the proposed Accessary Dwelling Unit ("Granny Flat") ordinance. Granny Flats (GFI 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 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) 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. 75A-32 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 subcommittee 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. 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 fight." "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 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 GF)." Staff response: "We will If we are requested 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.'V of this Year Note: Staff did not make a commitment for additional public meetings concerning Granny Flats 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 75A-33 Soto, Ricardo From: Tom Lutz <luterlutz@aol.com> Sent: Friday, August 25, 2017 1:55 PM To: mike@tardifsheetmetal.com; aaandres@andresiaw.com; Adchristy a aol.com; Alison.Young@phs.com; anncoil@attnet; bacerra@yahoo.com,' bist@sbcglobal.net chfsp2@gmaii.com; lopezlthev@hotmaii.com; david@heliotrope-studios.com; dianemorter@gmaiLcom; dickmanaj@att.net doncribb@aol.com; emurashie@att.net; fosca94@gmaiLcom; fraudfinders20lO@gmaiLcom; George@santa-ana.ty; ginelleann@gmail.com; martinezhln@gmail.com; imacias1230@yahoo.com; irmapj@yahoo.com; JanelleMcloughlin@gniatl.com; Javier@wastiington-square.org; jean@koladny-anteau.com; keren1219@aolcom; kirstensketch@me.com; Lauratobiasgarcia@gmaii.com; LiLia.Ramos23@yahoo.com; Ij:bateson@spcglobal.net; Mcewenl@aol.com; Nancy-Lutz@sbcglobal.net olivana@dslextreme.com; oscargarza@gmail.com; pdavid.benavides@gmaiLcom; petekatz9@gmail.com; phi lbacerra@gmai Lcom; Evangeline Prodigy Gawronski; coach.guirrian37@gmail.com; rvdave@roadrunner.com; Sarahcrealtor@gmail.com; Stprstn@aol.com; suml@anet.net.; trymc@aol.com; TFlammong@sbcglobal.net; thomas.a.gordon@gmaiLcom; timrush@bhhscaprops.com; vjedge@pacbell.net; jqualey3@gmaiLcom; fosca94@gmail.com; Adchristy@aol,com Cc: SantaAnaCitizens@yahoogroups.com; Neal, Candida; Kutner,Scott; Soto, Ricardo; Benavides, David; Solorio, Jose; Villegas„Juan; Martinez, Michele` Pulido, Miguel; Tinajero, Sal; Sarmiento, Vicente; befr inklin@dsleztreme.com; rob.richardson@earthlink.net; Imitis007@mac.com Subject: Re: Granny flats - City staff announcement 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 Evangeline 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? Al the Nice Meeting held four or so months ago with_Jose and Juan, Sal was absent, along with Hussain and Candid I came 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 8/25/2017 1:29:35 PM Pacific Slandard Time, mikq@ ardiFsheetnietal:cervi writes: 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 (GF) current status 1. In the previous 13 vears the City has approved a total of 40 GF (3 per year) 75A-34 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 O_ ct./Nov. and the_ n 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 Coin -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. 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." 75A-35 "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 1 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 GF)." Staff response: "We will if we are requested 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. V of this year Note: Staff did not make a commitment for additional public meetings concerning Granny Flats 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 talkind about it now. Thank you, Mike Tardif 75A-36 LS 3.20.17 ORDINANCE NO. NS-XXXX 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. The City's second dwelling unit ordinance, established in 2003, was superseded by changes made to state second dwelling unit laws (Assembly Bill 2299 and Senate Bill 1069 that took effect January 1, 2017, and Assembly Bill 494 and Senate Bill 229 that took effect January 1, 2018), and is no longer enforceable. These statutes impose new limitations on local authority to regulate second units, which are now referred to as "accessory dwelling units" or an "ADU". C. The proposed changes to the accessory dwelling unit development standards are proposed to comply with the new state legislation to allow greater flexibility in allowing these units. D. 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. 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. EXHIBIT B Ordinance No. NS -XXX Page 1 of 15 75A-37 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 41-11.1 of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 41-11.1. - Accessory dwelling unit. An 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 that term is defined in California Government Code section 65852.2 as it may be amended from time to time. Section 4: Section 41-150.5 of the Santa Ana Municipal Code is hereby deleted in its entirety: Section 5: 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 41-194.14 to read as follows: 410 .. fffir.-MUS-110MM Section 5: 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 41-194.14 to read as follows: Ordinance No. NS -XXX Page 2 of 15 75A-38 410 WIN% 110 Ordinance No. NS -XXX Page 2 of 15 75A-38 .Wraia Ordinance No. NS -XXX Page 3 of 15 75A-39 .. Ordinance No. NS -XXX Page 3 of 15 75A-39 Ordinance No. NS -XXX Page 4 of 15 75A-40 MoM 7"57ME - MR, JIMCNTM 41 Ordinance No. NS -XXX Page 4 of 15 75A-40 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 lots 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 policies of the City's General Plan and comply with requirements codified in the state Planning and Zoning Law related to accessory dwelling units in residential areas, including California Government Code section 65852.2. Sec. 41-194.1 - Definitions. As used in this section, the following words, terms or phrases have the following meanings: Ordinance No. NS -XXX Page 5 of 15 75A-41 (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 accessory dwelling unit also includes an efficiency unit, as defined in California Health and Safety Code section 17958.1. (2) "Detached accessory dwelling unit' means a residential dwelling unit that is detached from the primary dwelling unit and that provides independent living, sleeping, eating, a single kitchen for cooking, and sanitation 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. (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 building or portion of a building designed or used for parking or storage of motor vehicles 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 a single parcel with provisions for living, sleeping, eating, a single kitchen for cooking, and sanitation facilities occupied and intended for one household. Sec. 41-194.2 - Applicability. (1) The development and design standards in this section shall be applicable to all accessory dwellinq units. (2) The Director of the Planning and Building Agency, or his/her designee, shall review and approve, or deny ministerial permits for accessory dwelling units conforming to the time limits specified by Govemment Code Section 65852.2 or successor provision. Sec. 41-194.3 - 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. Ordinance No. NS -XXX Page 6 of 15 75A-42 Sec. 41-194.4 - Use Restrictions. 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 lot. (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. (5j The primary dwelling unit or the accessory dwelling unit shall be continuously occupied by at least one person having an ownership interest in the lot. described in subsection 41-194.8: (1) (2) percent of the size of the living area of the primary dwelling unit on the parcel, whichever is less, and contain no more than one (1) bedroom. (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) Design. The design of the accessory dwelling unit shall preserve the privacy of adiacent uses and be architecturally compatible to the design of the primary dwelling by use of similar materials and textures, window Ordinance No. NS -XXX Page 7 of 15 75A-43 (6) types, roofing materials and roof pitch, and shall comply with the adopted Citywide Design Guidelines. the accessory dwelling unit shall conform to the United States Secretary of Interior's official Standards for the Treatment of Historic Properties. If the Proposed accessory dwelling unit is placed or constructed so as to result in a modification of the existing historic resource on the parcel, a certificate of appropriateness shall be issued by the Historic Resources Commission upon the finding that the proposed accessory dwelling unit conforms to the United States Secretary of Interior's official Standards for the Treatment of Historic Properties and does not substantially change the character and integrity of the historic property. (7) Open Space. A minimum of one thousand two hundred (1,200) square feet of usable, continuous, non -front yard open -space, excluding driveways and parking areas, shall be provided. Any open space with a minimum dimension of fifteen (15) feet by fifteen (15)feet shall be deemed continuous open space. (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: (1) Setbacks. The accessory dwelling unit shall comply with the front and (2) Maximum Height. A detached accessory dwelling unit shall not exceed fifteen (15) feet in height as measured from the lowest adjacent grade of the structure to the top of the structure. (3) 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 Ordinance No. NS -XXX Page 8 of 15 75A-44 wall of the primary dwelling unit or attached structure to the nearest wall of the accessory dwelling unit or attached structure. (4) Site Planning. A detached accessory dwelling unit shall be located behind the rear building line of the primary dwelling, and be clearly subordinate by location and size. addition to the following: (1) Setbacks. The accessory dwelling unit shall comply with the setback standards for primary dwellings prescribed in the zoning district. (2) 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. (3) Exterior Stairs. An attached accessory dwelling unit shall have no exterior stairs. (4) 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. 41-194.8 - Development Standards — Conversion of an Existing Structure. An existing primary dwelling unit, existing accessory structure or existing garage, or portion of the following requirements: the adoption of this ordinance; (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 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: Ordinance No. NS -XXX Page 9 of 15 75A-45 (4) Setbacks: The side and rear setbacks of the accessory dwelling unit comply with building code provisions related to fife and 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: (6) and, (7) 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. (1) constructed as a studio without bedrooms, in which case no parking is required. (2) When an existing garage is demolished in conjunction with the construction of an accessory dwelling unit, or converted to an accessory dwelling unit, replacement garage spaces for the primary dwelling unit shall not be required. Sec. 41-194.10 - Parking Exceptions. No off-street parking shall be required for an accessory dwelling unit in any of the following circumstances: (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 dudnq peak commute periods. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of the existing primary dwelling or an existing accessory structure. Ordinance No. NS -XXX Page 10 of 15 75A-46 (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) vehicle" shall mean part of an established program intended to stay in a fixed location for at least 10 years and available to the public. Sec. 41-194.11 - Non -conforming Properties. (1) Legal nonconformities of the existing primary dwelling, except for legal nonconformities related to the parking standards of this chapter, shall (2) A lot shall comply with the current parking standards of this chapter prior to or concurrent with the establishment of an accessory dwelling unit. Sec. 41-194.12 - 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: (1) 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. (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 property owner to comply with the covenant restrictions may result in legal action against the property owner and the City shall be authorized to obtain any remedy available to it at law or equity, including but Ordinance No. NS -XXX Page 11 of 15 75A-47 not limited to obtaining inlunction enloining use of the accessory dwelling unit in violation of the recorded restrictions or abatement of the illegal unit. Sec. 41-194.13 - Appeals of planning manager or zoning administrator decision. Any person aggrieved by a determination of the planning manager to disapprove plans and drawings submitted pursuant to section 41-194, et seq. may file an application for a minor 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 et seq. The decision of the zoning administrator on such application may be appealed to the planning commission pursuant to said Article V. comply with any and all applicable regulations imposed in other articles of the zoning code, provisions of this article shall prevail. Section 6. 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 section shall not apply to4egal-sessad permitted accessory dwelling units. Section 7. Section 41-626(f) of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 41-626 (f). - Underground utility installations. The requirements of this section shall not apply to construction of new sesend accessory dwelling units provided, however, that all utility cables or wires between the primary residence and a detached sesend accessory dwelling unit shall be placed underground. Section 8. Section 41-681.4(g) of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 41-681.4. - Rehabilitation of single-family and two-family dwellings. Ordinance No. NS -XXX Page 12 of 15 75A-48 (a) Rehabilitation of a nonconforming building whose primary use is a single-family dwelling or a two-family dwelling is permitted: (1) In a residential district or a specific development where residential is permitted, or (2) In a P district where the continuance of the use is not barred by section 41-683 and the building complies with the minimum yard requirements applicable to buildings located in the R2 district. (b) Structural alterations and additions may be made where the total floor area of all such expansions occurring in a five-year period does not exceed forty (40) percent of the floor space of the building as it existed at the beginning of said time, provided: (1) The number of bedrooms is not increased; (2) The number of dwelling units is not increased; and (3) No new nonconfonnitiesanses with the requirements of this chapter are created. (c) Structural alterations and additions which exceed forty (40) percent of the total floor area as it existed at the beginning of a five-year period; include the creation of new bedrooms; or remodeling which involves the demolition of more than fifty (50) percent of the building shall be permitted; provided: (1) The number of dwelling units is not increased; (2) The parking is brought into conformance with code provisions; (3) No new nonconformities with the requirements of this chapter are created; and (4) A minimum of one thousand two hundred (1,200) square feet of usable, continuous, non -front yard open -space, excluding driveways and parking areas is provided. Any open space with a minimum dimension of fifteen (15) feet by fifteen (15) feet shall be deemed continuous open space. (d) Where rehabilitation of a building involves more than fifty (50) percent of a building wall which encroaches into a front or side yard setback is demolished or is structurally altered, the remainder of the building wall shall be demolished. Any subsequent building wall shall conform to all provisions of this chapter. (e) For the purpose of this section, an existing two -car garage with a minimum dimension of eighteen (18) feet by eighteen (18) feet exterior dimension shall be considered conforming. (f) For the purpose of this section, remodel shall mean to reconstruct, or to make over in structure or style, but shall exclude re -roof, window replacement, exterior finish replacement and repair or similar modifications. (g) For the purpose of this section the limitations on adding a dwelling unit listed in subsections (a) (b) and (c) shall not apply to accessory dwelling units as defined and regulated in Section 41-194 of this Chapter. Existing non -conformities on a property Ordinance No. NS -XXX Page 13 of 15 75A-49 otherwise eligible to build an accessory dwelling unit shall not disqualify it from building an accessory dwelling unit. 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 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 2018. Miguel A. Pulido Mayor 75A-50 Ordinance No. NS -XXX Page 14 of 15 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-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2018, 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-51 Ordinance No. NS -XXX Page 15 of 15 75A-52 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 undertheir 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 Fertal EXHIBIT C 75A-53 Soto, Ricardo From: Keith Carpenter <edison@pacbell.net> Sent: Thursday, August 24, 2017 8:39 PM To: Soto, Ricardo Subject: ADO Thank you for coming to the Com'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 AUDs expensive and somewhat difficult. I also find It Ironic that the same people who complain about illegal units are also opposed to a path to legalization. Thanks Sent from my (Phone 75A-54 Soto, Ricardo From: Mike Tardif <mike@tardifsheetmetal.com�. Sent: Friday, August 25,'2017 1:29 PM To: aaandres@andreslaw.com; Adchristy@aol.com; Alison.Young@phs.com; anncoil@att.net•, bacerra@yahoo.com; hist@sbcglobal.net; chfsp2@gmail.com;'Dave. Lopez; david@heliotrcpe•studios.com; dianemorter@gmail.com; dickmanaj@att.60; Don Cribb; 'Ed Murashie; fosca946gmaiLcom; fraudfinders20iO@gmail.com; George@santa-ana.tv; ginelleann@gmail.com; Helen Martinez; imacias1230 @yahoo.com;'Irma Jauregui'; JanelleMcloughlin@gmaii.com; Javier@washington- square.org; jean@kolodny-anteau.coni, keren1219@aol.corn;kirstensketch@me.coni; Lauratobiasgarcia@gmail.com; LiLia.Ramos23@yahoo.com; P.bateson@sbcglobal.net; LuterLutz@aol.corn;'Mcewenl@aol.com; Nancy-Lutz@sbcglobal.net olivana@dslextreme.coni; oscargarza@gmaiLcom;'pdavid.benevides'@gmail.com;'Peter Katz'; Phil Bacerra; Evangeline Prodigy Gawronski; 'Rene Guzman'; rvdave@roadrunner.com; Sarahcrealtor@gmaiLcom; Stprstn@aol.com; suml@anetnet;' Susan van der Roest'Terry McCall'; TFlammang@sbcglobal.net; thomas.a.gordon@gmaiLcom; timrush@bhhscaprops.com; vjedge@pacbell.net Ce: SantaAnaCitizens@yalioogroups.com; Neal, Candida; Kutner, Scott; Soto, Ricardo; Benavides, David;Soloria. Jose; Villegas, Juan; Martinez, Michele; Pulido,'Miguel; Tinajero, Sal; Sarmiento, Vicente Subject: Granny flats - City staff announcement Com -Link meeting,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 (GF) current status 1. In the previous 13 Vears 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 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) 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. t 75A-55 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. 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 erms 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 can really taik'about, this because we have limitations on what we can do as a community." 6. 'Will there be further community meetings (on GF)." Staff response: "We will if we are requested 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 1an.1" of this year Note: Staff did not make a commitment for additional public meetings concerning Granny Flats 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 75A-56 Soto, Ricardo From: Tom Lutz <luterlutz@aol.com> Sent Friday, August 25, 2017 1:55 PM To: mike@tardifsheetmetal.com; aaandres@andreslaw.com; Adchristy@aol.com; Alison.Young@phs.com; anncoil@att.net; bacerra@yahoo.com: bist@sbcglobal,neC chfsp2@gmaiLcom; lopezlthev@hotmail,com; david@heliotrope-studios.com; dianemorter@gmaiLcom; dickmanaj@att.net; doncribb@aol.com; emurashie@att.net; fosca94@gmail.com,, fraudfinders2010@gniail.com; George@santa-ana.ty; ginelleann@gmaiLcom; martinezhfn@gmail.com; imaciasl230@yahoo.com; irmapjC�yahoo.com; JanelleMcloughlinC@grnail.com; Javier@washingion-square.org; jean@kolodny-inteau.com; keren1219@aol.com; kirstensketch@me.com; Lauratobiasgarcia@gmaiLcom; LiUa.Ramos23@yahoo.com; Ij.bateson@sbcglobaLnet; Mcewenl@aol.com; Nancy-Lutz@sbcglobal.net;olivanaodslextreme.com; oscargarza@ginail.com; pdavid.benavides@gmail.com; petekatz9@gmail.com; phi lbacerra@gmail.com; Evangeline Prodigy Gawronski; coach.guzman37@gmail.c6m; rvdave@roadrunner.com: Sarahcrealtor@gmail.com; Stprstri@aol.com; suml@anetnet; Susan@vdr.com; trymc@aoLcom, TFlammang@sbcglobal.net; thomas.a.gordon@gmaiLcom; timrush@bhhscaprops.com; vjedge@pacbell,riet; jqualey39gmail.com; fosca94@gmaii.com; Adchristy@aol.com Cr.. SantaAnaCitizens@yahoogroups.com; Neal, Candida; Kutner, -Scott; Soto, Ricardo; Benavides, David; Solodo, Jose; Villegas„Juan; Martinez, Michele; Pulido, Miguel; Tiriajero, Sal; Sarmiento, Vicente; befranklin@dslextreme.com; rob.richardson@earthlink.net; Imil1s007@mac.com Subject: Re: Granny flats - City staff announcement 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 Evangeline 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 with 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 3125/2017 1:29:35 PM Pacifie Standard Time, mike ri.!tarclifslieetmetnLcom writes: 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 (GF) current status 1. In the previous 13 ears the City has approved a total of 40 GF (3 per year) 75A-57 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 the_ h 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. 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." 75A-58 "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 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 GF)." Staff response: "We will if we are requested to do so." Worth noting again 1. In the previous 13 years the City has approved a total of 40 GF 2. The qty has received 29 applications since Jan. 1" of this year Note: Staff did not make a commitment for additional public meetings concerning Granny Flats 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 75A-59 Soto, Ricardo From: Fregoso, Vince Sent: Tuesday, October 17, 2017 7:54 PM To: Soto, Ricardo Subject: FW::::: RE: Granny Flats fyi Thanks, Vince C. Fregoso, AICP City of Santa Ana Planning and Building Agency 20 Civic Center Plaza, M-20 Santa Ana, CA 92701 T: (714) 667-2713 F: (714) 973-1461 www.santa-ana.org/pba From: Tim Rush [mailto:timrush@bhhscaprops.com] Sent: Monday, September 18, 2017 1:37 PM To: Fregoso, Vince Subject: FW::::: RE: Granny Flats From: Mary Thornton imailto:mfthornt@gmail.coml Sent: Monday, September 18, 2017 11:22 AM To: 'Mike Tardif' <mike@tardifsheetmetal.com>; 'Tom Lutz' <1uteri utz@aol.com>; 'Ginelle Hardy' <ginelleann@gmail.com>; Susan@vdr.com: Mcewenl@aol.com; timrush @bhhscaprops.com:'Susana Sandoval' <Suzie.csandoval@gmail.com>; Nancy-Lutz@sbcglobal.net; 'Irma Jauregui' <irmapi@vahoo.com>;'Jose Rea' <iose irea @gma il.com> Subject::::: RE: Granny Flats Sure, share with whomever you wish. Mary From: Mike Tardif[mailto:mike@tardifsheetmetal.com] Sent: Monday, September 18, 2017 8:58 AM To: 'Mary Thornton'; Tom Lutz;'Ginelle Hardy'; Susan(a)vdr.com; McewenlOaol.com; timrush(olbhhscaprops.com; 'Susan Sandoval'; Nancy-Lutz@sbcalobal.net; 'Irma Jauregui'; 'Jose Rea' Subject: RE: Granny Flats Mary, 75A-60 Thank you for this great report from the Public Safety Cmt. meeting. May I share your report with others? Best regards, Mike Tardif -----Original Message ----- From: Mary Thornton [mailto:mfthornt@gmail.com] Sent: Tuesday, September 12, 2017 9:48 PM To: Tom Lutz <luterlutz@aol.com>; Ginelle Hardy <ginelleann@gmail.com>; Susan@vdr.com; mike@tardifsheetmetal.com: Mcewenl@aol.com; timrush@bhhscaprops.com: Susana Sandoval <Suzie.csandoval@gmail.com>; Nancy-Lutz@sbcglobal.net; Irma Jauregui <irmapi@vahoo.com>; Jose Rea <ioseirea @gmail.com> Subject: Granny Flats An update from the Public Safety meeting tonight: So far, the GF ordinance appears to have taken into account most of what would be considered "residents' concerns". A draft of the ordinance was available at the meeting; some key highlights are below: - owner must live in one of the two units (primary home or ADU) on the parcel: will be deed restricted to this even upon sale of the property property must be sold as a parcel; cannot separately sell the ADU - only one additional unit (of any type) per parcel - height limit of 15 ft (which pretty much wipes out building them over a garage) - size limit is 50% of the primary dwelling or 750 sq. Ft, whichever is less - lot size must be 6,000 sq. Ft minimum - existing lot coverage and setbacks limits still apply; architectural guidelines to match the style and character of the primary residence - cannot be rented for less than 30 days - existing illegal units cannot be "converted" to legal ADUs - they would have to be permitted and meet all requirements as apply to new ADUs - there will be no "conversion" process for illegal garage units, for example Additionally, ADUs will be prohibited in areas of the City classified as "Areas of Open Space Deficiency" - which I believe applies to a lot of neighborhoods. There was also discussion as to using public safety concerns, water/sewage impacts, etc., to limit where ADUs can be permitted (the state law allows these considerations): Public Works was tasked with determining if 75A-61 water/sewage would be affected but did an evaluation and came up with no areas of impact. Jose Solorio also encouraged another look at Public Safety impacts as we have a low ratio of police/population. There were several questions: Candida did a very nice job of answering and clearly, even though they apparently did not hear from too many people early on, they got the right message. There will be additional opportunities for public comment (future Coml-ink and supposedly a public community forum through Planning Commission). There is some urgency to pass the ordinance however, since anybody can now request a permit and without a city ordinance in place, the city has to grant the permit within 120 days as long as the State regulations are met (which are much more lenient than what the city ordinance is proposing). There have been over 29 applications since January, so I think it is safe to assume some have already been granted. So the adage "be careful what you ask for, you just might get it" applies here - the more meetings requested, the longer the delay to get it passed. My suggestion is to pick up a copy of the draft ordinance, read it, and if you have questions, send to Candida. She appears to be very receptive to listening. Jose Solorio also seemed on board with the concerns expressed by the residents at the meeting. Candida spoke with the Executive Board of ComLink last night; I believe there might be a presentation at the Sept meeting. I suggest to contact the ComLink board members you know and ask for that on the upcoming agenda. Also suggest if you have comments, send them to Candida ASAP. Thanks, . Mary PS: I did not stay to hear the discussion re the homeless issue; if anybody can provide an update on that it would be appreciated; seemed like there were some agitated folks in the audience waiting for that issue. Please forward to anybody who may have been left off this email inadvertently. Sent from my Whone 75A-62 REQUEST FOR COUNCIL ACTION CITY.COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: PUBLIC HEARING — ADOPT URGENCY ORDINANCE ALLOWING COMMERCIAL CANNABIS TESTING LABORATORIES AND ORDINANCE AMENDMENT NO. 2018-01 TO AMEND CERTAIN SECTIONS OF CHAPTERS 40 AND 18 OF THE SANTA ANA MUNICIPAL CODE (COMMERCIAL CANNABIS) TO ALLOW COMMERCIAL CANNABIS LABORATORY TESTING AND ADOPT RESOLUTION TO MODIFY CANNABIS- RELATED REGISTRATION APPLICATION AND REGULATORY SAFETY PERMIT FEES IN FISCAL YEAR 2017/18 MISCELLANEOUS FEE SCHEDULE (STRATEGIC PLAN NOS. 3,2; 3,3; 3,5; 4, 21 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 �CfTY MANAGER RECOMMENDED ACTION 1. Adopt an Urgency Ordinance to permit and regulate Commercial Cannabis Laboratory Testing facilities in the Light and Heavy (M-1 and M-2) Industrial zoning districts. 2. Adopt Ordinance Amendment No. 2018-01 to permit and regulate Commercial Cannabis Laboratory Testing facilities in the Light and Heavy (M-1 and M-2) Industrial zoning districts. 3. Adopt a resolution to modify the adult -use cannabis Registration Application (Phase 1) and Regulatory Safety Permit (RSP/Phase 2) application fees for commercial cannabis business activities to include cannabis testing facilities in the fiscal year 2017/18 Miscellaneous Fee schedule for the Planning and Building Agency. BACKGROUND The California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64), requires that all cannabis processed and sold in the state of California be subject to professional laboratory testing for cannabinoid content, toxins, adulterants, pesticides, potency, and other important elements that affect product safety. Testing must be done 7513-1 Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 2 at laboratories licensed by the Bureau of Cannabis Control (BCC). Pursuant to various State laws, a cannabis testing laboratory may not hold any other license type, which is intended to ensure neutrality and product safety. Significance of cannabis testing Cannabis testing is a critical component of the commercial cannabis supply chain. Voters in Colorado, a state considered to be an early adopter of commercial cannabis regulations, approved Colorado Amendment 64 in 2012 legalizing adult -use commercial cannabis in their state. Although Amendment 64 permitted testing laboratories at the time, it did not require safety and potency testing for all types of commercial cannabis products. In July 2016, Colorado adopted regulations that required testing of all products, including medicinal products. Because the supply chain had been largely established without an integrated testing stage, the supply chain was disrupted by new and stringent requirements for product testing. California voters approved Proposition 64 in November 2016, legalizing certain types of commercial and adult use cannabis business activities. Proposition 64 requires testing for some cannabis products by July 1, 2018 and for all products by January 1, 2019. This accelerated timeline is based in part on lessons learned from supply chain disruptions in Colorado. The State of California began issuing cannabis business licenses on January 1, 2018; since then, numerous commercial cannabis testing laboratories have expressed interest in operating in Santa Ana's industrial zoning districts. Nearby jurisdictions have adopted ordinances to allow cannabis testing laboratories, including Bellflower, Costa Mesa, Irvine, Long Beach and Los Angeles, while the City of La Habra is considering ordinances in the near term to allow various forms of commercial cannabis business activity, including testing. Local impacts Testing laboratories are the least "public" of all the commercial cannabis business activities since they are prohibited from holding any other commercial cannabis license and may not co -locate with any other commercial cannabis business. Similar to other quality -control product testing facilities, they require high-value, high-technology equipment and employ highly -educated and highly - trained personnel. Because cannabis is a lightweight product, facilities may occupy as little as 500 square feet, although typical testing facilities range between 2,000 and 4,000 square feet. All testing laboratories are subject to strict State regulations regarding the quantity of cannabis that may be on the premises, the operation of equipment, and disposal of tested materials. The proposed ordinance revisions will also include mandates to ensure safe laboratory testing operations. 75B-2 Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 3 City Council Direction On February 20, 2018, staff presented the proposed ordinance amendments and fee resolution to the City Council. The City Council provided direction on the several items. These items have been addressed in the draft ordinance and/or this Request for Council Action (RFCA), with descriptions and addition information included below. 1. Areas allowed and sensitive land use buffers— Maintain 1,000 -foot buffers from residential land uses/zones in place on November 4, 2014 when Measure BB was adopted. The draft ordinance has been revised to reference residential land uses in place on November 4, 2014 when Measure BB was approved by Santa Ana voters (Exhibit 1). 2. Fee rate and consistency with neighboring jurisdictions — Ensure that the proposed gross receipts fees are fair and consistent with those of surrounding jurisdictions. The proposed gross receipts fee has been reduced from eight (8) to six (6) percent, making Santa Ana equal to or more competitive than other large jurisdictions in California, including Bellflower, Long Beach, Los Angeles, and Oakland (Exhibit 2). 3. Application process and consistency with neighboring jurisdictions — Revise application process to be efficient and not onerous for applicants; ensure process and application fees are consistent with those of surrounding jurisdictions. While legal statewide, cannabis is classified as a controlled substance at the federal level. The City's RSP process ensures the safe handling and operations of cannabis by those owning or operating commercial cannabis businesses in Santa Ana. Moreover, the City's commercial cannabis ordinance requires community involvement, community benefits, and sustainable business practices; the RSP process requires that operators and owners have clean records as a condition of operating a commercial cannabis business and engaging in the Santa Ana community. In addition, the draft ordinance has been revised to allow Phase 1 and Phase 2 applications to be submitted concurrently, saving approximately 60 days of processing time while still recuperating implementation and administration costs. A review of application fees found that Santa Ana's application processing fees are consistent with or below other Southern California jurisdictions that permit commercial cannabis activities. 4. Revenue allocations — Incorporate language in the RFCA to recommend that application and fee revenues be dedicated to administration (one-third), enforcement (one-third), and community services (one-third). 75B-3 Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 4 The RFCA has been revised to include this language and to state that staff anticipates bringing forward an appropriation adjustment for City Council consideration at a future date. DESCRIPTION Table 1 (Proposed Amendments to Chapter 18 and Chapter 40) describes the draft ordinance to allow commercial cannabis testing facilities, including changes based on City Council direction. Table 1 — Proposed Amendments to Chapter 18 and Cha ter 40 Item Current Ordinances Proposed Amendment Impact Definitions (chapters Contain definitions for a Amends Chapter 40 and Enables compliance with 18 and 40) variety of terms relating to Chapter 18 to add definitions State law and ensures commercial cannabis. for commercial cannabis consistency between businesses/activities and for chapters 18 and 40. cannabis testing facilities/laboratories. Separation criteria Requires all commercial Amends Chapter 40 to clarify Provides certainty to existing cannabis activities to be that the 1,000 -foot buffer property owners or those in 1,000 feet from any school, required from residential control of property to submit park, or existing residential zones is based on the original applications for commercial zone. residential zones in place on cannabis retail and testing or before November 4, 2014. based on residential land uses at the time Measure BB was adopted. Uses permitted and Contain operational Amends Chapter 40 to allow Ensures safe operations of operational standards standards addressing and establish operational cannabis testing laboratories general operations and retail standards for cannabis in accordance with all operations, testing laboratories, including applicable State laws. prohibition against holding other license types, requiring inspections, and allowing educational tours. Application process Require Registration Requires Phase 1 and Phase Streamlines the Phase 1 and (Chapter 40) Application (Phase 1) to verify 2 applications for cannabis Phase 2 review process for zoning, buffers, and testing laboratories but allows cannabis testing, saving separation criteria, and Phase 1 and Phase 2 approximately 60 days, and Regulatory Safety Permit applications to be submitted allows cannabis testing (Phase 2) for background concurrently and for testing laboratories to begin checks processes for laboratories to be approved operating in Santa Ana's commercial cannabis retail without merit criteria industrial zoning districts, businesses. consideration. Eliminates subject to compliance with all separation criteria for testing applicable standards and facilities. regulations. Chapter 18 edits Chapters 18 and 40 prohibit Amends Chapter 18 to Ensures consistency all other commercial cannabis ensure consistency with between various SAMC business activities, including Chapter 40 (Commercial chapters and compliance with cannabis testing laboratories. Cannabis). State law. 75B-4 Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 5 Staff has reviewed the proposed amendments to ensure consistency with other provisions of the Santa Ana Municipal Code, including chapters 18, 40, and 41 (Zoning). Similar to commercial cannabis retail businesses, commercial cannabis testing facilities/laboratories will be required to enter into an operating agreement to pay fees to the City based on gross receipts (6 percent) or facility square footages ($2.00 per square foot), whichever is the greater of the two calculations. These operating agreements will ensure sustainable building and business practices, local hiring and sourcing, labor peace agreements, and community/youth benefit plans. It is recommended that application and fee revenues be dedicated to administration (one-third), enforcement (one-third), and community services (one-third), similarto commercial cannabis retail. 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. 2018-01. Uraencv Ordinance The urgency ordinance would permit and regulate commercial cannabis laboratory testing facilities immediately, subject to review and approval of the required Phase 1 and Phase 2 applications and operating agreements and all applicable operational and location standards contained in the ordinance. The urgency ordinance is identical to the permanent ordinance, including: location/buffer criteria, operational standards, permitting and enforcement process, and the requirement to enter into an operating agreement. A permanent ordinance, if approved, would then take effect 30 days after its second reading. Based on the current City Council meeting calendar, the permanent ordinance would take effect on Monday, May 7, immediately following the 45 -day urgency ordinance period. Resolution modifying application fees The City of Santa Ana requires that all commercial cannabis retail businesses permitted in Chapter 18 and Chapter 40 submit a Registration Application and a Regulatory Safety Permit (RSP), the latter of which is renewed annually. Currently, the fees may only be collected for applicants seeking to apply for or renew those permits associated with retail businesses. Pursuant to Chapter 40, all applicants for adult -use cannabis retail sales or testing laboratories must also submit a Registration Application ($1,690, one-time) and RSP ($12,086, renewed annually). In order to collect fees for these two applications, the existing fee description must be amended to apply to all commercial cannabis applicants, including testing laboratories. 75B-5 Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 6 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). Approval of this item also supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #3 (achieve a structurally balanced budget with appropriate reserve levels). FISCAL IMPACT Approval of the ordinance and resolution is expected to generate an additional $8,450 in one-time Registration Application fees (five initial applications) and $48,344 in annual Regulatory Safety Permit fees for testing laboratories (four approved applications). Should the resolution allowing application fees to be charged to commercial cannabis laboratories be approved, funds will be deposited into the Adult -Use Commercial Cannabis Registration Fee account (01116002-51616) and the Adult -Use Commercial Cannabis Regulatory Safety Permit account (01116002-51617). Candida Neal, AICP Acting Executive Director Planning & Building Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez M (7511 Executive Director Finance & Management Services Agency AP:rb S:RFCA13-20-18\PBA OA No. 2018-01 cannabis testing u 03-20-2018 (Chapter 18-40) Exhibits: 1. Existing Residential Zones on November 4, 2014 2. Sample of Cannabis Testing Facility Rates from California Jurisdictions 3. Ordinance A, 4. Resolution 75B-6 Eli,ibla IMoaMal (M-1 aM M-3) ansa in Santa Ane on Nov. 4, W14 F m J VETAAV m __ N N GAR EN GROVE F _ BLVD n y w FAIRHAVEN AV '1 O m y LL SANTACLARAAV w SANTA O CLARA AV < _¢ p O O ¢ 17TH ST m m < 17TH ST PIJ WESTMINS ER AV z m _ WASHINGTON AV .t 1 �I z w F I CIVIC CENTER DR � 2 i > SANTA ANA BLVD m 1ST ST IST FT O 1ST ST O � rn m w Q Q MC FADDEN AV G Q JO K j ,___ _ y MC FADDEN AV EDINGER AV m v EDINGERAV m 7 Legend L-I'J t AV '...r maa,xa r Sd ols Q o 2 analrzls eunerarea ¢ < zonmgareas saaable for conanroes 0 t MI m mF M2 WARNERAV y W WAR, ER AV OM AV k l— D E D h N wFO f- \yyPd N K Q: Z < m < MACARTHUR BLVD ib SUNFLOWER AV '70� e EXHIBI 1 wi. 75B-7 75B-8 Sample of Cannabis Testing Facility Rates from California Jurisdictions Jurisdiction Rate Notes Adelanto 5% or $15 per square foot Business can opt in to the $15/sq. ft. alternative minimum tax; Council may adjust 5% lower, but never higher than 5% Bellflower 5%, increased by 2.5% annually beginning July 1, 2020 until 10% maximum California Cit 2% Costa Mesa 6% Davis 5% for receipts from $0- $50,000/month; 4% for receipts from $50,001 to $100,000/month; 3% for receipts over $100,001/month Irvine None Long Beach 6% Council can increase to 8% Los Angeles (City) 10.% or $100 per $1,000 of gross receipts Monterey 5% Oakland Medicinal - 5% or $50 per $1,000 of gross receipts Adult -use - 10% or $100 per $1,000 of gross receipts San Jacinto $15 per square foot Santa Ana - Proposed 6% or $2 per square foot Sonoma(County) None EXHIBIT 2 75B-9 75B-10 LS 3.20.18 AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PURSUANT TO CHARTER SECTION 415 AMENDING CERTAIN SECTIONS OF CHAPTER 40 TO ALLOW COMMERCIAL CANNABIS TESTING LABORATORIES FOR MEDICINAL AND ADULT - USE PURPOSES AND AMENDING CERTAIN SECTIONS OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE . PERTAINING TO MEDICINAL MARIJUANA TO ENSURE CONSISTENCY WITH CHAPTER 40 OF THE MUNICIPAL CODE 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. 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 Ordinance No. NS -XXX Page 1 of 35 Exhibit 3A 75B-11 licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. G. The California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) which the voters of the State of California approved and passed in 2016, requires that all cannabis processed and sold in the state of California be subject to professional laboratory testing for cannabinoid content, toxins, adulterants, pesticides, potency, and other important elements that affect product safety. Testing must be done at laboratories licensed by the Bureau of Cannabis Control (BCC) and testing laboratories cannot co -locate with any other commercial cannabis business. Pursuant to various State laws, a cannabis testing laboratory may not hold any other license type, which is intended to ensure neutrality and product safety. Proposition 64 requires testing for some cannabis products by July 1, 2018 and for all products by January 1, 2019. 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. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. J. Chapter 40 of the Santa Ana Municipal Code is intended to contain standards and regulations to address all commercial cannabis business activities in Santa Ana, except that medicinal cannabis retail businesses are subject to the standards and regulations in Article XII I of Chapter 18. K. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. However, the City has not permitted the operation of testing laboratories/facilities in Santa Ana since January 2018. As a result, cannabis sold in Santa Ana may be untested. L. If commercial cannabis retail sale is permitted in the City without required quality -control testing, it will pose a serious threat to the public, health, safety and welfare for the following reasons: 1. Cannabis products that are untested for cannabinoid content will not display potency, dosage, and other important elements that affect the qualities of the product. As with any other medicinal product, medicinal cannabis must be tested to ensure the safety of those that use it for medicine. Pursuant to the AUMA, adult -use cannabis must be tested for cannabinoid content to guarantee the safety of its usage to consumers. Without allowing testing laboratories/facilities in Santa Ana, the retail cannabis sold in the City will not Ordinance No. NS -XXX Page 2 of 35 75B-12 display important elements that guarantee the safety of cannabis for all consumers. Cannabis products that are untested for toxins, adulterants, and pesticides will pose serious health risks to consumers. While the City has allowed cannabis retail sales since 2014, products sold are not required to undergo the same level of stringent testing now required by the State of California. Without cannabis testing laboratories/facilities in Santa Ana, the retail cannabis sold in the City may contain toxins, adulterants, pesticides, or other harmful elements that pose serious threat to public health, safety, and welfare of Santa Ana's residents and visitors. M. Prevention of detrimental impacts to residents, the public interest, health, safety and welfare requires the immediate enactment of this ordinance. The untested commercial cannabis may be in conflict with or frustrate other provisions of the SAMC intended to guarantee or preserve the public peace, health, or safety. Moreover, permitting the sale of commercial cannabis without allowing the required cannabis testing laboratories/facilities would create impacts on the public health, safety and welfare that the city council, in adopting this ordinance, has found to be unacceptable. N. The Request for Council Action for this ordinance dated March 20, 2018 and duly signed by the Executive Director of the Planning and Building Agency shall, by this reference, be incorporated herein, and together with this ordinance, any amendments or supplements, and written and oral testimony constitute the necessary findings for this ordinance. O. The city council has held a duly noticed public hearing in connection with consideration and adoption of this ordinance. P. The city council finds, determines and declares that the current and immediate threat to the public health, safety and welfare of the city and its citizens necessitates the immediate enactment of the ordinance. The facts constituting such urgency are set forth in paragraphs A -M of this ordinance. Q. 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. 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 Ordinance No. NS -XXX Page 3 of 35 75B-13 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 adoption of this ordinance. Section 3. Any ordinance declared by the City Council to be necessary as an emergency measure for preserving the public peace, health and safety, and containing a statement of the reasons for its urgency, may be introduced and adopted at one and the same meeting if passed by the affirmative votes of at least two-thirds (2/3) vote of the City Council members pursuant to Section 415 of the City Charter. Section 4. The City Council finds that this Ordinance should be read in full and shall be immediately effective pursuant to Section 417 of the City Charter. Section 5: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Chapter 40 ARTICLE 1. REGULATION OF ADULT -USE RETAIL COMMERCIAL CANNABIS RETA16 ACTIVITIES OTHER THAN MEDICINAL CANNABIS RETAIL ACTIVITIES Section 40-1. Purpose and Intent. A. The purpose and intent of this article is to regulate Adultvse commercial cannabis retail business activities, as defined in this article, in order to ensure the health, safety and welfare of the residents of the City of Santa Ana by establishing regulations necessary for an Adult Use commercial cannabis Few business operating in the City of Santa Ana to obtain and maintain a Regulatory Safety Permit ("RSP"). Any Adult Use commercial feta# 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 Ad 'meq cannabis retail 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 Adult Us cannabis retail activities are conducted. Any commercial Adult _ Use 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 Ad, dt-lose cannabis retail business activity. Any commercial A�'��'.-�.t-Ilse cannabis retail 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 adult -use cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize the possession of cannabis as authorized under State Law. All other commercial cannabis activities, including but not limited to, cultivation, Ordinance No. NS -XXX Page 4 of 35 75B-14 manufacture, and distribution, and testing of GaRnabi are prohibited and banned in the City of Santa Ana. B. Any person operating a medicinal marijuana collective/cooperative (as defined in Chapter 18 of this Code) as of December 14, 2017, or who has as RSP application pending to operate a medicinal collective/cooperative, and has met all of the requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for the sale of Adult -Use cannabis provided that they enter into the Adult -Use Cannabis Retailer Operating Agreement with the City. C. The Adult Use Commercial Cannabis Retailef Operating Agreement shall be a legally binding written agreement between each Adult Use commercial cannabis fetaN business operator and the City, executed by the City Manager, or his or her designee, and in a form and substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. 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 business Adult Use eannabic •a'^m' 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 an ^a Adult Use 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. "Adult -Use Cannabis Retailer Operating Agreement," "Commercial Cannabis Business Operating Agreement," or "Operating Agreement' means the agreement entered into by and between the City and the commercial Adult Use cannabis fetail business operator which will specify terms for local hiring and sourcing, community benefit plans, and fees to compensate for authorized impacts on City services. 4. "Adult -Use cannabis retail activity" includes the delivery, or sale of 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. Ordinance No. NS -XXX Page 5 of 35 75B-15 5. "Adult -Use cannabis retail business" means an Adult -Use retail business that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use cannabis, or an Adult -Use 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. 6. "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. 7. '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. 8. "Cannabis' or "cannabis product" 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. 9. "City" means the City of Santa Ana, a charter city and municipal corporation. 10. "Commercial cannabis activity" means the cultivation, Possession, Chapter. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of this Chapter. Ordinance No. NS -XXX Page 6 of 35 75B-16 10.1. "Commercial cannabis business" means a facility, establishment, or other entity that engages in commercial cannabis activity. 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. "Customer" means a natural person 21 years of age or over. 14. "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 retail business. 15. "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. 16. "Display" means cannabis goods that are stored in the licensed retail business during the hours of operation. 17. "Display case" means a container in the licensed retail business where cannabis goods are stored and visible to customers. 18. "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. 19. "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. 20. "Labor Peace Agreement' means a legally binding agreement between an employer and a labor organization in which the employer agrees to remain neutral in the event its employees wish to unionize. Ordinance No. N8 -XXX Page 7 of 35 75B-17 219. "License/Licensee" means a license issued by the State and includes both an A -license (Adult -Use) and an M -license (Medicinal), and the holder of such license. 224. "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. 232. "Medicinal/medical 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. 243. "Operating hours" means the hours within a day during which a permitted commercial cannabis retail business may allow cannabis customers to enter the retail premises and purchase cannabis goods. 25. "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. 26. "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. 27. "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. 28. "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. 29. "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code. 30. "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. Ordinance No. NS -XXX Page 8 of 35 75B-18 31. "Private security officer" has the same meaning as that term as defined in the State of California Business and Professions Code section 7574.01. 32. "Publicly owned land" means any building or real property that is owned by a city, county, state, federal, or other government entity. 33. "Purchase" means obtaining cannabis goods in exchange for consideration. 34. "Purchaser' means a person who is engaged in a transaction with a Licensee for purposes of obtaining cannabis goods. 35. "Qualified patient" is a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 36. "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. 37. "Retail area" means a building, room, or other area upon the licensed cannabis retail business premises in which cannabis goods are sold or displayed. 38. "Retail business" means a premises where adult use cannabis, 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. 39. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to this article to An a commercial cannabis retail business. Ordinance No. NS -XXX Page 9 of 35 75B-19 40. "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. 41. "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. 42. "Sublet" means to lease or rent all or part of a leased or rented property. 43. "State" means the State of California. 44. "Testing Facility" or "Testing Laboratory" defined in the Business and Professions Code section 26001, as amended from time to time, means a laboratory. 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. Section 40-3. Compliance with State and Local Licensing Requirements Any Ad -It -13se commercial cannabis fetal 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 Adult Use cannabis fetail 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 Ad '..tee cannabis fetail 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. Co -location of Ad, M -rase commercial cannabis businesses Feta" and MeElmeina4 eannadis fetail proposed on any one site shall occur only if authorized by the State and the City of Santa Ana and only if allowed pursuant to the City's Zoning Code. Any commercial cannabis activity not specifically permitted by this article is prohibited. Ordinance No. NS -XXX Page 10 of 35 75B-20 Section 40-4. Maximum Number of Regulatory Safety Permits The total number of Adult Use cannabis retail 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 retail businesses to operate within City limits, regardless of the location's compliance with any other Section specified in this article: A. 20 total medicinal cannabis retail businesses (as regulated by Article XIII of Chapter 18); B. 30 total adult -use cannabis retail businesses (which could include any or all of the medicinal cannabis retail businesses) Section 40-5. Zoning Compliance and Regulatory Safety Permit Requirements Commercial Ad, A Ilse cannabis fetall activities are expressly prohibited in all zones in the City of Santa Ana; however, specific commercial cannabis fetall businesses are allowed as a special use in the Industrial zone (M-1, M-2). The only allowed current permit types P61FSuant to the ..,+,.. „ is f„F Adult Use ,.9FnFReFGiaI shall apply for and- G-e-na, nt -business only an the , iate zeRes are 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 Adult cannabis fetail 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 Adult Use cannabis fetail 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 11 of 35 75B-21 City, of Sauia.Vna Mnuietpai, Code Table 40-5 ConnnerciaL_. Cannabis j' M,1' M-2 , Regulatory Land Use.Classification Zone Zone... Perinit X X Re u<red NA Cultivator Indoor - Type A Cultivator Indoor - Type B X X NA Cultivator Indoor - Type C X X NA Ordinance No. NS -XXX Page 11 of 35 75B-21 Nursery Indoor/Outdoor - Type D X X NA Manufacturing Manufacturing X X NA Retail Medicinal Retail (SAMC Chapter 18) P P - Yes Retail Adult -Use Retail P P Yes Testing Laboratory Adult -Use and/or Medicinal No P.E NA -Yes Retail -Industrial Distribution Freight/Transport X X NA Micro -Business Cultivation / Retail / Manufacture / Distribution X X` NA Section 40-6. Separation Requirements (a) No Adult -Use commercial cannabis fetail 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 zones in place on November 4. 2014. (b) No commercial Adak-tlse cannabis retail business shall be located within 500 feet of another retail cannabis business, except for permitted co -location. Section 40-7. Exception Commercial cannabis cultivation is expressly prohibited in all zones and all specific plan areas in the City; provided, however, that six (6) plants per private residence may be cultivated indoors within a legally permitted structure for personal use in compliance with Section 18-620 (e) of the Santa Ana Municipal Code and all applicable local and State regulations. Section 40-8. General Provisions for Adult -Use Commercial Cannabis Retail Activities in the City of Santa Ana Regulatory Safety Permit Required a. Each Adult Use commercial cannabis fetail business shall obtain a Regulatory Safety Permit (RSP) specific to the business activity defined by the State Ordinance No. NS -XXX Page 12 of 35 75B-22 pertaining to that activity. The only allowed current permit type pursuant to this article is for commercial cannabis Adult Use retail sales and testing laboratories/facilities. b. It shall be unlawful for any person, association, partnership, limited liability company, or corporation to engage in, conduct or carry on, in or upon any premises within the City of Santa Ana any commercial Ad, A Use cannabis retail business without a RSP. An Adult use A commercial cannabis fetail 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 from the date of issuance, 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 Adult Use cannabis fetal business for a period of five (5) years and shall be made available by the commercial cannabis businessto 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 Adult Use GaRRabis •etail business may maintain, these records shall be stored by the business at the location in a printed format in a fire -proof safe or filing cabinet. Any loss, damage or destruction of the records shall be reported to the Police Department within 24 hours of the loss, destruction or damage. 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 Califomia 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. Training records, including but not limited to the content of the training provided and the names of the employees that received the training. Ordinance No. NS -XXX Page 13 of 35 75B-23 e. Contracts with other businesses regarding commercial cannabis business retail activity. Permits, licenses, and other local authorizations to conduct the commercial cannabis business retail activity. g. Security records. h. Proof of building ownership or landlord letter acknowledging business type. Proof of insurance. 3. Operational Standards for All Adult Use Commercial Cannabis Business Retail 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 ingress/egress 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. d. T v --If applicable, 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. Adult Use Commercial cannabis retail businesses shall create and maintain an active account within the State's track and trace system prior to commencing any commercial cannabis retail 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. Ordinance No. NS -XXX Page 14 of 35 75B-24 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 Adult Use Gannabis bUSO.._.._ Fetal! businesses 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 businessdull Use Gannahes retail business shall provide adequate disabled access parking per the requirements in the California Building Code. L The commercial cannabis Adult Use Gannabos Fetawl 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 Adult Use GaRnab-s Fetaffil 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, !am adiacent tenant suites, 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 Adult Use Gannab's •etail 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 his or her designee. A permitted commercial cannabis Adult Use eannab'S Fetal! 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. M. The commercial cannabis Adult Use cannabis Feta!! 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 Ordinance No. NS -XXX Page 15 of 35 75B-25 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 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. o. No free samples of any cannabis or cannabis product may be distributed at any time. P. All agents, private security officers or other persons acting for or employed by as commercial cannabis A.di '* "se nannahis retail 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 employee's first and last name, and a color photo of the employee that shows the full front of the employee's face. q. All private security officers acting for or employed by an a commercial cannabis Adult Use GaRRabis retail business shall be licensed by the State and issued a business license from the City of Santa Ana. r. The commercial cannabis Adult Wse Gannabate mt;W 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 business is located shall contain a fire -proof safe or fire proof filing cabinet and include a safety and security plan. S. The commercial cannabis ^moose Gannabis retail 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. t. The commercial cannabis Adult Use an ab g retail 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. U. The commercial cannabis business must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining its regulatory safety permit. Ordinance No. NS -XXX Page 16 of 35 75B-26 V. 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. W. For any commercial cannabis Adult Use Gannabis retail 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. X. 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. V. All signage for the commercial cannabis business must comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. 4. Additional Operational Standards for Adult -Use Cannabis Retail Business a. At all times the Adult -Use cannabis 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 cannabis 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. 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 cannabis 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 140 p.m. daily. No licensed retail business shall be open to the public between the hours of 104:01 p.m. and 6:59 a.m. of any day. Ordinance No. NS -XXX Page 17 of 35 75B-27 f. The Adult -Use cannabis 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 cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use cannabis RSP issued by the City and 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 non -cannabis 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 Adult -Use cannabis retail businesses shall establish and implement a program to incentivize the recycling of used containers. Failure to establish and implement a program to incentivize the recycling of used containers will result in a violation of the terms of the required commercial cannabis Operating Agreement requiring sustainable building or business practices. j. Adult -Use cannabis retail businesses shall also record on the video surveillance system point-of-sale areas and areas where cannabis goods are displayed for sale. 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. Ordinance No. NS -XXX Page 18 of 35 75B-28 n. No cannabis product shall be visible from 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 Adult Use Commercial Cannabis Retail Delivery Services a. Adult Use Commercial cannabis retail deliveries may be made only from as Adult Use 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 Adult Use commercial cannabis retail business' Regulatory Safety Permit and State license at all times while making deliveries. C. All Adulte commercial cannabis retail 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 Adult Use 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. An Adult Use 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. 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. L 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). Ordinance No. NS -XXX Page 19 of 35 75B-29 j. Each delivery request shall have a receipt prepared by the Ad'1i»e commercial cannabis retail business with the following information: i. Name and address of the Ad, -'. � t I Ise commercial cannabis 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 Commercial Cannabis Testinq Facilities or Laboratories testing laboratory 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 facility/laboratory businesses shall be allowed. Section 40-9. A -'-,'r �..'ge Commercial Cannabis Retail Selection Process 1.—^'-,. 'tee Commercial Cannabis Retall — Registration Application and Regulatory Safety Permit Required a. Existing medicinal cannabis business operators, or those with pending applications for a medicinal RSP, who desire to operate an adult cannabis retail business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before December 14, 2017. The Director of Planning and Building shall review such Ordinance No. NS -XXX Page 20 of 35 75B-30 application and issue the RSP, without consideration of the merit based point system, so long as they satisfy all other requirements of this article and Chapter 18. b. The 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 Adult Use commercial cannabis retail business registration application forms and a related administrative policy. Each Adult Use commercial cannabis retail 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: 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. 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. Phase 1 application fee is paid. Ordinance No. NS -XXX Page 21 of 35 75B-31 vi. A signed statement that the proposed location of the Adan -else commercial cannabis reW 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 his or her 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 his or her 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 his or her 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: 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. Ordinance No. NS -XXX Page 22 of 35 75B-32 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; and, 3. No zoning violations exist on the property. e. The Director of Planning and Building or his or her 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 reasonably required by the Director of Planning and Building or designee(s) in order to determine whether said permit should be renewed. Ordinance No. NS -XXX Page 23 of 35 75B-33 5. Appeal of Denial of Regulatory Safety Permit/ Denial of RSP Renewal The City Manager or his or her 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 40-9.1. Commercial Cannabis Testing Facility/Laboratory Selection Process 1. Commercial Cannabis Testing Facilities/Laboratories — Registration Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required a. Every Commercial Cannabis Testing Facility/Laboratory shall apply for the Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application) in the manner described in Section 40-9 except that the Director of Planning and Building may accept Phase 1 and Phase 2 applications for a Commercial Cannabis Testing Facility/Laboratory concurrently, and shall review such applications and issue Chapter 18. Phase 1 or Phase 2 application periods. Section 40-10. Audits. Annual audits. No later than June 30th of every year, each licensed Adult Use eannab*6Te-tai! business 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 his or her designee(s). Section 40-11. Inspection and enforcement responsibilities. The Code Enforcement Division of the Planning and Building Agency may enter and inspect the location of any commercial cannabis Adult Use eannab.s Fetail business Ordinance No. NS -XXX Page 24 of 35 75B-34 between the hours of 7:00 a.m. and 104:00 p.m., or at any reasonable time, to ensure compliance with this article. In addition, any police officer may enter and inspect the location of any commercial cannabis feted 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 fetall 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. Section 40-12. Violation and enforcement. Viol ation/e nforceme nt. 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 Adu 'ase Gannabis re}^.�,,,"business Regulatory Safety Permit, 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 Adult "5^ GanRab.s ret -ail 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 Rfegulatory Ssafety Ppermit 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 Rfegulatory Ssafety Ppermit 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 Rfegulatory Ssafety Ppermit 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. ordinance No. NS -XXX Page 25 of 35 75B-35 Section 40-13. Transfer of Ownership. 1. Upon the transfer of any interest in an commercial cannabis business the Rregulatory Ssafety Ppermit shall be null and void. Any person, firm or entity desiring to own and operate the commercial cannabis business Adda;t-'—'segos retail business shall make a new Regulatory Safety Permit 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 retail business. The provisions of this section shall apply to any person, firm, or entity applying for a Rregulatory Ssafety Ppermit for premises previously used as such establishment. 2. Any such transfer of any interest in an existing commercial cannabis business dl Q-"1^ ^^^^^-h'S •^'a" WS'Ress or any application for an extension or expansion of the building or other place of business of the commercial cannabis retail business shall require inspection and compliance with section 40-11 of this article. 3. The owner or operator of asenanRabisTetail bUG'Ress 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 40-14. 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 Adult Use GaRRabis retail 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 business 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; Ordinance No. NS -XXX Page 26 of 35 75B-36 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 40-15. Fees and Taxes All commercial cannabis Adult Use eaRnabis retail businesses shall pay applicable fees and taxes, which shall include one or more of the following: 1. Application Fees. The business owner shall submit a non-refundable fee to cover the cost of processing an application for the commercial cannabis Adult t cannabis rem„ business. These fees may be divided into two fees according to Registration Application Fee (Phase 1) and RSP Application Fee (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 Taxes. The business owner shall at all times maintain a current and valid City of Santa Ana business license and shall pay all business license taxes, deposits, charges, fees, deficiencies, penalties, interest, and other associated assessments as may be required pursuant to ordinances of the City of Santa Ana and/or the Santa Ana Municipal Code. 4. Adult Use Cannabisretaile Operating Agreement Fees. 5. Additional cannabis -specific gross receipts, excise taxes, or other municipal tax approved by the voters of the City of Santa Ana. 6. All required state taxes including sales and use taxes, business/franchise or income taxes, payroll taxes, etc. All required federal taxes. Section 6. Section 18-611 of Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Ordinance No. NS -XXX Page 27 of 35 75B-37 Sec. 18-611. - Definitions. (Not in alphabetical order) (a) "Cultivation" and/or "Cultivate" shall mean the planting, growing, harvesting, drying, curing, grading or trimming of one (1) or more marijuana plants or any part thereof, as set forth in Business and Profession Code § 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 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. Ordinance No. NS -XXX Page 28 of 35 75B-38 (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. (j) "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. (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, growing, harvesting, drying, curing, grading or trimming of marijuana plants for personal use within a private residence or accessory structure to a private residence. (o) "Commercial Cultivation' shall mean the planting, growing, harvesting, drying, curing, grading or trimming 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 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 Ordinance No. NS -XXX Page 29 of 35 75B-39 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. (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 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. (v) 'Testing Facility" or "Testing Laboratory" defined in the Business and Professions Code section 26001, as amended from time to time, 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. 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. Ordinance No. NS -XXX Page 30 of 35 75B-40 (a) It is unlawful for any person to: (i) Cause, permit or engage in the cultivation, possession, distribution or giving away of marijuana, 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; Ordinance No. NS -XXX Page 31 of 35 75B-41 (ii) No more than six (6) living marijuana plants is permitted for indoor personal cultivation; (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 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 commercial cultivation of marijuana in the City. (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, occupying, 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, 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. (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 in the course of cultivating marijuana plants or any part thereof in Ordinance No. NS -XXX Page 32 of 35 75B-42 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 Professions Code §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. (4) Testing Facilities/Laboratories for Medicinal and Adult -Use Cannabis as defined in Chapters 18 and 40 of the Santa Ana Municipal Code (SAMC) are permitted subject to the regulations and standards contained within Chapter 40 of the SAMC. Section 8. 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 33 of 35 75B-43 Section 9. This ordinance shall be adopted and thereafter immediately effective by two-thirds (2/3) vote of the City Council members pursuant to Section 415 of the City Charter. Section 10. This ordinance is introduced, passed and adopted at one and the same meeting and is thereafter immediately effective. The city council finds that this ordinance is necessary as an emergency measure for preserving the public peace, health or safety to protect the public. The reasons for the emergency are set forth in Section 1, paragraphs A -M, inclusive. ADOPTED this day of Miguel A. Pulido Mayor APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: Councilmembers: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: 75B-44 2018. Ordinance No. NS -XXX Page 34 of 35 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 Ordinance No. NS -XXX Page 35 of 35 75B-45 75B-46 LS 3.20.18 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CERTAIN SECTIONS OF CHAPTER 40 TO ALLOW COMMERCIAL CANNABIS TESTING LABORATORIES FOR MEDICINAL AND ADULT - USE PURPOSES AND AMENDING CERTAIN SECTIONS OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE PERTAINING TO MEDICINAL MARIJUANA TO ENSURE CONSISTENCY WITH CHAPTER 40 OF THE MUNICIPAL CODE 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. 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 Exhibit 3B Ordinance Page of 33 75B-47 licensing system for medical cannabis cultivation, manufacturing, delivery, and dispensing. G. The California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) which the voters of the State of California approved and passed in 2016, requires that all cannabis processed and sold in the state of California be subject to professional laboratory testing for cannabinoid content, toxins, adulterants, pesticides, potency, and other important elements that affect product safety. Testing must be done at laboratories licensed by the Bureau of Cannabis Control (BCC) and testing laboratories cannot co -locate with any other commercial cannabis business. Pursuant to various State laws, a cannabis testing laboratory may not hold any other license type, which is intended to ensure neutrality and product safety. Proposition 64 requires testing for some cannabis products by July 1, 2018 and for all products by January 1, 2019. 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. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. J. Chapter 40 of the Santa Ana Municipal Code is intended to contain standards and regulations to address all commercial cannabis business activities in Santa Ana, except that medicinal cannabis retail businesses are subject to the standards and regulations in Article XIII of Chapter 18. K. Since November 2014, the City of Santa Ana has permitted the retail sale of cannabis for medicinal purposes and since January 2018 for adult -use purposes. However, the City has not permitted the operation of testing laboratories/facilities in Santa Ana since January 2018. As a result, cannabis sold in Santa Ana may be untested. L. 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. M. The City of Santa Ana has a compelling interest in ensuring that cannabis is not sold 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 businesses may operate, and in providing access of cannabis to residents. Ordinance No. NS -XXX Page 2 of 33 75B-48 N. The city council has held a duly noticed public hearing in connection with the consideration and adoption of this ordinance. Section 2. Pursuant to the California Environmental Quality Act ("CEQK) 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 adoption of this ordinance. Section 3: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Chapter 40 ARTICLE 1. REGULATION OF ADULT USE RETAIL COMMERCIAL CANNABIS RETA16 ACTIVITIES OTHER THAN MEDICINAL CANNABIS RETAIL ACTIVITIES Section 40-1. Purpose and Intent. A. The purpose and intent of this article is to regulate Adult Use commercial cannabis feW business activities, as defined in this article, in order to ensure the health, safety and welfare of the residents of the City of Santa Ana by establishing regulations necessary for an Adult Use commercial cannabis feta4 business operating in the City of Santa Ana to obtain and maintain a Regulatory Safety Permit( RSP„). Any Adult commercial feW 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 Adult Use cannabis fetail 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 Adult Use cannabis few activities are conducted. Any commercial Adult UseTetail 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 Adak Use cannabis retail business activity. Any commercial Adulte cannabis fetail 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 adult -use cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize the possession of Adult Use GanRabis eF medioal cannabis as authorized under State Law. All other commercial cannabis activities, including but not limited to, cultivation, manufacture, and distribution, and testing ^f GaRRab°are prohibited and banned in the City of Santa Ana. Ordinance No. NS -XXX Page 3 of 33 75B-49 B. Any person operating a medicinal marijuana collective/cooperative (as defined in Chapter 18 of this Code) as of December 14, 2017, or who has an RSP application pending to operate a medicinal collective/cooperative, and has met all of the requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for the sale of Adult -Use cannabis provided that they enter into the Adult -Use Cannabis Retailer Operating Agreement with the City. C. The Adult Use Commercial Cannabis Retailer Operating Agreement shall be a legally binding written agreement between each Adult Use commercial cannabis retail business operator and the City, executed by the City Manager, or his or her designee, and in a form and substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. 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 business Adult Use Gannabos Feta" 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 an GaF;nab*s retail business 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. "Adult -Use Cannabis Retailer Operating Agreement," "Commercial Cannabis Business Operating Agreement," or "Operating Agreement' means the agreement entered into by and between the City and the commercial Ach �', �e cannabis reta4 business operator which will specify terms for local hiring and sourcing, community benefit plans, and fees to compensate for authorized impacts on City services. 4. "Adult -Use cannabis retail activity" includes the delivery, or sale of 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. 5. "Adult -Use cannabis retail business" means an Adult -Use retail business that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use cannabis, or an Adult -Use cannabis product, except as related Business and Ordinance No. NS -XXX Page 4 of 33 75B-50 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. 6. "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. 7. `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. 8. "Cannabis' or "cannabis product" 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. 9. "City" means the City of Santa Ana, a charter city and municipal corporation. 10. "Commercial cannabis activity" means the cultivation, possession, manufacture, distribution, processing, storing laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for this 10.1. "Commercial cannabis business" means a facility, establishment, or other entity that engages in commercial cannabis activity. Ordinance No. NS -XXX Page 5 of 33 75B-51 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. "Customer' means a natural person 21 years of age or over. 14. "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 retail business. 15. "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. 16. "Display" means cannabis goods that are stored in the licensed retail business during the hours of operation. 17. "Display case" means a container in the licensed retail business where cannabis goods are stored and visible to customers. 18. "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. 19. "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. 20. "Labor Peace Agreement" means a legally binding agreement between an employer and a labor organization in which the employer agrees to remain neutral in the event its employees wish to unionize. 210. "License/Licensee' means a license issued by the State and includes both an A -license (Adult -Use) and an M -license (Medicinal), and the holder of such license. Ordinance No. NS -XXX Page 6 of 33 75B-52 224. "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. 232. "Medicinal/medical 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. 243. "Operating hours" means the hours within a day during which a permitted commercial cannabis retail business may allow cannabis customers to enter the retail premises and purchase cannabis goods. 25. "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. 26. "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. 27. "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. 28. "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. 29. "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code. 30. "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. 31. "Private security officer" has the same meaning as that term as defined in the State of California Business and Professions Code section 7574.01. Ordinance No. NS -XXX Page 7 of 33 75B-53 32. "Publicly owned land" means any building or real property that is owned by a city, county, state, federal, or other government entity. 33. "Purchase" means obtaining cannabis goods in exchange for consideration. 34. "Purchaser' means a person who is engaged in a transaction with a Licensee for purposes of obtaining cannabis goods. 35. "Qualified patient" is a person whose physician has recommended the use of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. 36. "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. 37. "Retail area" means a building, room, or other area upon the licensed cannabis retail business premises in which cannabis goods are sold or displayed. 38. "Retail business" means a premises where adult use cannabis, 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. 39. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to this article to an Adult Use a commercial cannabis feta4 business. 40. "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. Ordinance No. NS -XXX Page 8 of 33 75B-54 41. "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. 42. "Sublet' means to lease or rent all or part of a leased or rented property. 43. "State" means the State of California. 44. "Testing Facilitv" or "Testing Laboratory" defined in the Business and Professions Code section 26001, as amended from time to time, means a laboratory, al Accredited by an accrediting body that is independent from all other Section 40-3. Compliance with State and Local Licensing Requirements Any Adult Use commercial cannabis fetait 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 Adult Use cannabis feta4 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 °' ',Qo'r'�e cannabis fetail 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. Co -location of Arli�'rvaTose commercial cannabis businesses retail and MediGina4 cannabis fetail proposed on any one site shall occur only if authorized by the State and the City of Santa Ana and only if allowed pursuant to the City's Zoning Code. Any commercial cannabis activity not specifically permitted by this article is prohibited. Section 40-4. Maximum Number of Regulatory Safety Permits The total number of Adult Use cannabis retail 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 retail businesses to operate within Ordinance No. NS -XXX Page 9 of 33 75B-55 City limits, regardless of the location's compliance with any other Section specified in this article: A. 20 total medicinal cannabis retail businesses (as regulated by Article XIII of Chapter 18); B. 30 total adult -use cannabis retail businesses (which could include any or all of the medicinal cannabis retail businesses) Section 40-5. Zoning Compliance and Regulatory Safety Permit Requirements Commercial Ad, -'tee cannabis retail activities are expressly prohibited in all zones in the City of Santa Ana; however, specific commercial cannabis Petah businesses are allowed as a special use in the Industrial zone (M-1, M-2). The only allowed current permit types pursuant to the ^a.^'e 06 fGF Adult I ase. nernmemial are 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 Adult -else -cannabis retail 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 — W'. Any commercial A`'. �', �e cannabis fetail 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 33 75B-56 Commercia Cannabis M-1. M-2 Regulatory Land Use Classification Zone Zone Permit X X Required NA Cultivator Indoor - Type A Cultivator Indoor - Type B X X. NA Cultivator Indoor - Type C X X NA Nursery Indoor/Outdoor - Type D X X NA Manufacturing Manufacturing X X NA Medicinal Retail Yes Retail P P (SAMC Chapter 18) Ordinance No. NS -XXX Page 10 of 33 75B-56 Retail Adult -Use Retail P P Yes Testing Laboratory Adult -Use and/or Medicinal No F P.P. -X P #A -Yes Retail -Industrial Distribution Freight/Transport X, X NA Micro -Business Cultivation/ Retail / Manufacture / Distribution XX NA Section 40-6. Separation Requirements (a) No Adult Use commercial cannabis reta4 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 zones in place on November 4. 2014. (b) No commercial Ad, k-11se cannabis retail business shall be located within 500 feet of another retail cannabis business, except for permitted co -location. Section 40-7. Exception Commercial cannabis cultivation is expressly prohibited in all zones and all specific plan areas in the City; provided, however, that six (6) plants per private residence may be cultivated indoors within a legally permitted structure for personal use in compliance with Section 18-620 (e) of the Santa Ana Municipal Code and all applicable local and State regulations. Section 40-8. General Provisions for Adult Use Commercial Cannabis Retail Activities in the City of Santa Ana Regulatory Safety Permit Required a. Each Adult Use commercial cannabis retail business shall obtain a Regulatory Safety Permit (RSP) specific to the business activity defined by the State pertaining to that activity. The only allowed current permit type pursuant to this article is for commercial cannabis Adult Use retail sales and testing laboratories/facilities. b. It shall be unlawful for any person, association, partnership, limited liability company, or corporation to engage in, conduct or carry on, in or upon any premises within the City of Santa Ana any commercial Adult'� cannabis retail business without Ordinance No. NS -XXX Page 11 of 33 75B-57 a RSP. A^ ^. Adult use A commercial cannabis retail business shall register and obtain 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 from the date of issuance, 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 Adult Use cannabis fetail business for a period of five (5) years and shall be made available by the commercial cannabis business Adult Use Gannab;s Fetal! 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 Adult Use ^a^^ab'^ Fetal! businessmay maintain, these records shall be stored by the business at the location in a printed format in a fire -proof safe or filing cabinet. Any loss, damage or destruction of the records shall be reported to the Police Department within 24 hours of the loss, destruction or damage. 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 business fetail activity. Permits, licenses, and other local authorizations to conduct the commercial cannabis business fetail activity. Ordinance No. NS -XXX Page 12 of 33 75B-58 g. Security records. h. Proof of building ownership or landlord letter acknowledging business type. i. Proof of insurance. 3. Operational Standards for All Adult Use Commercial Cannabis Business Retell 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 ingress/egress 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. d. T4;ie-If applicable, 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. Ad, W-1 Ise Commercial cannabis feW businesses shall create and maintain an active account within the State's track and trace system prior to commencing any commercial cannabis retail 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 Adult Use oannab?s bUGiRec_ Feta!! businesses 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. Ordinance No. NS -XXX Page 13 of 33 75B-59 h. The commercial cannabis business shall provide adequate disabled access parking per the requirements in the California Building Code. i. The commercial cannabis A.,'�I IRP PA naNsrpta" 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 Adult Use GaRRabus Fetail 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, jam adjacent tenant suites, 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 Adult Use GaRnab:c; retail 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 his or her designee. A permitted commercial cannabis Adult Use GaRnabis Fetail 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. M. The commercial cannabis Adult Use Gannabos Fetaal 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 Adult Use GanRab s rp ta;l 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. Ordinance No. NS -XXX Page 14 of 33 75B-60 No free samples of any cannabis or cannabis product may be distributed at any time. P. All agents, private security officers or other persons acting for or employed by an commercial cannabis Adult Use eaRnab 0 S Fetail 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 employee's first and last name, and a color photo of the employee that shows the full front of the employee's face. q. All private security officers acting for or employed by as a commercial cannabis Adult Uc bisFizail business shall be licensed by the State and issued a business license from the City of Santa Ana. r. The commercial cannabis Adult Use oannabig retail 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 business is located shall contain a fire -proof safe or fire proof filing cabinet and include a safety and security plan. S. The commercial cannabis Ad '�seA;;;RgbwsTetai; 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. t. The commercial cannabis Adult Use GaRRabla ratail 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. U. The commercial cannabis Adult Use saRnab.s;etail business must obtain and maintain a valid City business license at all times as a condition for receiving, renewing, and maintaining its regulatory safety permit. V. 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. W. For any commercial cannabis Adult Use Gannab sretail 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. X. Each commercial cannabis Ad u'�se nannahisret-ailbusiness owner, operator(s) and employee(s) shall complete a criminal background check and wear a Ordinance No. NS -XXX Page 15 of 33 75B-61 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. V. All signage for the commercial cannabis business must comply with Article XI of Chapter 41 of the Santa Ana Municipal Code. 4. Additional Operational Standards for Adult -Use Cannabis Retail Business a. At all times the Adult -Use cannabis 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 cannabis 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. 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 cannabis 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 104 p.m. daily. No licensed retail business shall be open to the public between the hours of 104:01 p.m. and 6:59 a.m. of any day. f. The Adult -Use cannabis 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. 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. Ordinance No. NS -XXX Page 16 of 33 75B-62 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 cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use cannabis RSP issued by the City and 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 non -cannabis 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 Adult -Use cannabis retail businesses shall establish and implement a program to incentivize the recycling of used containers. Failure to establish and violation of the terms of the required commercial cannabis Operating Agreement requiring sustainable building or business practices. j. Adult -Use cannabis retail businesses shall also record on the video surveillance system point-of-sale areas and areas where cannabis goods are displayed for sale. 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. No cannabis product shall be visible from 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 Adult Use Commercial Cannabis Retail Delivery Services Ordinance No. NS -XXX Page 17 of 33 75B-63 a. AAS �'r A"Re Commercial cannabis retail deliveries maybe made only from an Ate' '.-,w,t Us 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 Adult Use commercial cannabis retail business' Regulatory Safety Permit and State license at all times while making deliveries. C. All Adult Use commercial cannabis retail 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 Adult Use 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. An Adult Use 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. 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. L 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 Adult Use commercial cannabis retail business with the following information: i. Name and address of the Adult Use commercial cannabis 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 Ordinance No. NS -XXX Page 18 of 33 75B-64 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 Commercial Cannabis Testing Facilities or Laboratories 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 facility/laboratoryfacility/laboratory businesses shall be allowed. Section 40-9. Adu#-Mise Commercial Cannabis Retail Selection Process 1. Adult Use Commercial Cannabis Retail — Registration Application and Regulatory Safety Permit Required a. Existing medicinal cannabis business operators, or those with pending applications for a medicinal RSP, who desire to operate an adult cannabis retail business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before December 14, 2017. The Director of Planning and Building shall review such application and issue the RSP, without consideration of the merit based point system, so long as they satisfy all other requirements of this article and Chapter 18. b. The 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 Ordinance No. NS -XXX Page 19 of 33 75B-65 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 Adult Use commercial cannabis fetail business registration application forms and a related administrative policy. Each A�'i'.-,�1 Ise commercial cannabis retail 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: All application documents required in the City's Phase 1 Registration Application package. 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 Ad, �'�e commercial cannabis fetail 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 his or her 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. Ordinance No. NS -XXX Page 20 of 33 75B-66 e. The Director of Planning and Building or his or her 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 his or her 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. Phase 2 requirements include but are not limited to: 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. Ordinance No. NS -XXX Page 21 of 33 75B-67 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; and, 3. No zoning violations exist on the property. e. The Director of Planning and Building or his or her 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 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 his or her 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 Ordinance No. NS -XXX Page 22 of 33 75B-68 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 40-9.1. Commercial Cannabis Testing Facility/Laboratory Selection Process 1. Commercial Cannabis Testing Facilities/Laboratories — Registration Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required in the manner described in Section 40-9, except that the Director of Planning and system, insofar as the applications satisfy all other requirements of this article and Chapter 18. Phase 1 or Phase 2 application periods. Section 40-10. Audits. Annual audits. No later than June 30th of every year, each licensedd '. t Use r,;;nn;;h sTPtAil hiss 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 his or her designee(s). Section 40-11. Inspection and enforcement responsibilities. The Code Enforcement Division of the Planning and Building Agency may enter and inspect the location of any commercial cannabis Adult Wse GaRRabis •etail business between the hours of 7:00 a.m. and 104:00 p.m., or at any reasonable time, to ensure compliance with this article. In addition, any police officer may enter and inspect the location of any commercial cannabis fetail 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 fetail 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 Ordinance No. NS -XXX Page 23 of 33 75B-69 limited to, the concealment, destruction, and falsification of any recordings, records, or monitoring. Section 40-12. Violation and enforcement. 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 Fetail,Us RessRegulatory Safety Permit, 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 Adult Use GannabiG Fetai; 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 Rregulatory Ssafety Ppermit 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 Rfegulatory Ssafety Ppermit 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 Rfegulatory Ssafety Ppermit 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 40-13. Transfer of Ownership. 1. Upon the transfer of any interest in an commercial cannabis business Adult Use GaRnahis retail h, si„ess, the Rfegulatory Ssafety Ppermit shall be null and void. Any person, firm or entity desiring to own and operate the commercial cannabis business ^d -i " " e rA-Rnabis retail business shall make a new Regulatory Safety Permit 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 Ordinance No. NS -XXX Page 24 of 33 75B-70 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 retail business. The provisions of this section shall apply to any person, firm, or entity applying for a Rfegulatory Ssafety Ppermit for premises previously used as such establishment. 2. Any such transfer of any interest in an existing commercial cannabis business Adult Use eaRnabis Fetail business or any application for an extension or expansion of the building or other place of business of the commercial cannabis retail business shall require inspection and compliance with section 40-11 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 40-14. 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 Adult Use GaARabis Fetail 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 business Adult Use GanRabis fasi% 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, Ordinance No. NS -XXX Page 25 of 33 75B-71 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 40-15. Fees and Taxes All commercial cannabis Adult Use Gannabis •e'a" businesses shall pay applicable fees and taxes, which shall include one or more of the following: 1. Application Fees. The business owner shall submit a non-refundable fee to cover the cost of processing an application for the commercial cannabis Adult Use eann„abis Petail business. These fees may be divided into two fees according to Registration Application Fee (Phase 1) and RSP Application Fee (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 Taxes. The business owner shall at all times maintain a current and valid City of Santa Ana business license and shall pay all business license taxes, deposits, charges, fees, deficiencies, penalties, interest, and other associated assessments as may be required pursuant to ordinances of the City of Santa Ana and/or the Santa Ana Municipal Code. 4 Adult Use r.,.,Ralg•s Retails Operating Agreement Fees. 5. Additional cannabis -specific gross receipts, excise taxes, or other municipal tax approved by the voters of the City of Santa Ana. 6. All required state taxes including sales and use taxes, business/franchise or income taxes, payroll taxes, etc. 7. All required federal taxes. Section 4. 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 of one (1) or more marijuana plants or any part thereof, as set forth in Business and Profession Code § 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 Ordinance No. NS -XXX Page 26 of 33 75B-72 (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 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 at 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. Ordinance No. NS -XXX Page 27 of 33 75B-73 (j) "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. (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, growing, harvesting, drying, curing, grading or trimming of marijuana plants for personal use within a private residence or accessory structure to a private residence. (o) "Commercial Cultivation" shall mean the planting, growing, harvesting, drying, curing, grading or trimming 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 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. Ordinance No. NS -XXX Page 28 of 33 75B-74 (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. (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" and the owners, majority stockholders, ci partners of a legal entity. includes a natural person or legal entity, rporate officers, trustees, and general (u) "Distribution" means the procurement, sale and transport of cannabis and cannabis products between 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. (v-) "Testing Facility" or "Testing Laboratory' defined in the Business and Professions Code section 26001 as amended from time to time, 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: b) Licensed by the Bureau of Cannabis Control. Section 5: 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, 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 Ordinance No. NS -XXX Page 29 of 33 75B-75 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; (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 Ordinance No. NS -XXX Page 30 of 33 75B-76 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 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 commercial cultivation of marijuana in the City. (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, occupying, 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, 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. (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 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; Ordinance No. NS -XXX Page 31 of 33 75B-77 (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 Professions Code §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. (g) Testinc Facilities/Laboratories for Medicinal and Adult -Use Cannabis as defined in Chapters 18 and 40 of the Santa Ana Municipal Code (SAMC) are 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. ADOPTED this day of 2018. Miguel A. Pulido Mayor Ordinance No. NS -XXX Page 32 of 33 75B-78 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: 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 75B-79 Ordinance No. NS -XXX Page 33 of 33 75B-80 LS 3.20.18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MODIFYING THE ADULT -USE CANNABIS RETAIL REGISTRATION APPLICATION FEE AND REGULATORY SAFETY PERMIT FEE TO APPLY TO ANY COMMERCIAL CANNABIS BUSINESS IN ACCORDANCE WITH CHAPTERS 18 AND 40 OF THE SANTA ANA MUNICIPAL CODE 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. The City of Santa Ana ("City") currently requires that all medical marijuana collectives/cooperatives permitted in Chapter 18 (Measure BB) and all adult -use commercial cannabis retail businesses permitted in Chapter 40 submit a Registration Application and a Regulatory Safety Permit (RSP), the latter of which is renewed annually. Currently, the fees may only be collected for applicants seeking to apply for or renew those permits associated for medical marijuana collectives/cooperatives and adult -use commercial cannabis retail businesses. B. On October 17, 2017, the City Council of the City of Santa Ana placed on first reading and approved Ordinance No. NS -2929 adding Chapter 40 to the Santa Ana Municipal Code to allow and regulate adult -use cannabis retail businesses. C. On March 20, 2018, the City Council of the City of Santa Ana placed on first reading and approved Ordinance No. NS-XXXX amending Chapter 18 and Chapter 40 of the Santa Ana Municipal Code to allow and regulate commercial cannabis testing facilities and laboratories. C. Section 40-9 of the Santa Ana Municipal Code authorizes a registration application fee and regulatory safety permit fee related to the processing of applications to open and operate an adult -use cannabis retail business. D. Based on analysis and evaluation of staff time, equipment, and materials, these fees are recommended as set forth below. E. These fees shall become effective concurrently with the effective date of Ordinance No. NS-XXXX and shall be incorporated into the City's Uniform Schedule of Miscellaneous Fees for Fiscal Year 2017-18, as updated annually. Exhibit 4 75B-81 Resolution No. 2018 -XXX Page 1 of 3 LS 3.20.16 Section 2. The City Council hereby modifies the "Adult -Use Cannabis Retail Registration Application Fee". This fee will now apply to all commercial cannabis businesses permitted pursuant to Chapters 18 and 40 of the Santa Ana Municipal Code to include City staff costs associated with reviewing the required Phase 1 application pursuant to Chapters 18 and 40 and be referenced to as the "Commercial Cannabis Registration Application Fee". City staff costs are $1,690.00 per application. The City Council hereby also modifies the "Adult -Use Cannabis Retail Regulatory Safety Permit (RSP) Fee" which will now be referenced to as the "Commercial Cannabis Regulatory Safety Permit (RSP) Fee". This fee will apply to all commercial cannabis businesses permitted pursuant to Chapters 18 and 40 of the Santa Ana Municipal Code to include City staff costs associated with reviewing the required Phase 2 (RSP) application pursuant to Chapters 18 and 40. City staff costs are $12,086.00 per application. The dollar amounts attributed with these fees has not changed; merely the listing name of the fee has changed so that it will include any allowed commercial cannabis business. Section 3. Without further action of the City Council, the above -referenced fees re -named and affirmed by this Resolution shall be incorporated into the City's Uniform Schedule of Miscellaneous Fees for Fiscal Year 2017-18 and updated annually. Section 4. 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 _ day of , 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 75B-82 Resolution No. 2018 -XXX Page 2 of 3 LS 320.18 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018- to be the original resolution adopted by the City Council of the City of Santa Ana on .2018. Date: Clerk of the Council City of Santa Ana 75B-83 Resolution No. 2018 -XXX Page 3 of 3 75B-84 REQUEST FOR COUNCIL/ HOUSING AUTHORITY ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: ADOPT THE DRAFT AFFORDABLE HOUSING FUNDS POLICIES AND PROCEDURES {STRATEGIC PLAN NO. 4,5) CITY MANA R EXECUTIVE I ECTOR RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt the draft Affordable Housing Funds Policies and Procedures, subject to non -substantive changes approved by the City Manager and City Attorney. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting on October 25, 2017, the Community Redevelopment and Housing Commission (CRHC) recommended that the City Council adopt the draft Affordable Housing Funds Policies and Procedures by a vote of 6:0 (de Leon absent). DISCUSSION On June 20, 2017, the City Council directed staff to develop a policy to allocate affordable housing development funds and criteria for selection of projects. The draft Affordable Housing Funds Policies and Procedures have been developed to guide how affordable housing funds and land assets available to the City of Santa Ana are allocated, committed, loaned and monitored for multi -family affordable housing development in the City (Exhibit 1). The intent of these Policies and Procedures is to provide a transparent, open and fair process for developers, businesses, non-profit organizations, individuals and other entities interested in the allocation of affordable housing funds and land assets available to the City for affordable housing development. The Policies and Procedures apply to the following Programs currently administered by the Housing Division of the City of Santa Ana and any other funds for housing purposes that become available: 80A-1 Affordable Housing Funds Policies and Procedures March 20, 2018 Page 2 • Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) including land assets owned by the Housing Successor Agency • Inclusionary Housing Fund • HOME Investment Partnerships Program • Community Development Block Grant Program • Project -Based Voucher Program The Policies and Procedures are comprised of six (6) sections: • The Types of Loans and Grant's section describes the types of projects that may be undertaken using Program funds. • The Proposal Submittal and Review Procedures section describes three options that may be used to allocate Program funds: 1) Open RFP Process; 2) City Council Initiated Proposal Review; and 3) By -Right Funding for Achieving City Goals and Objectives. In addition, this section discusses procedures to determine reasonable development costs and financial feasibility of projects by a 3rd party real estate advisor, establishes a local preference for Santa Ana residents, and other criteria that must be met for each project. • The Pre -Loan Commitment section describes the actions by staff to recommend an award / pre -loan commitment of funds to a project to the Community Redevelopment and Housing Commission and then to City Council for approval. • The Loan Terms and Closing Procedures section provides terms of the loans that will be incorporated into the final Loan Agreement for a project, including the procedures for a Loan Closing. • The Project Monitoring and Reporting section summarizes the policies and procedures to ensure each project remains affordable and financially viable while also reporting this information to the public via the Housing Division Quarterly Report. • The Funding Sources section provides a detailed description of each funding source available to the City for affordable housing development. Each source is described in as much detail as necessary to provide a developer or member of the public with sufficient information on the basic requirements and eligible uses. The above sections outline the City's process to allocate affordable housing development funds and establish criteria for the selection of projects. Additional information not included in the Policies and Procedures may be found in the regulations for the Federal or State funds, Loan Documents, RFP documents, the City Municipal Code, and/or other administrative procedures maintained by the Housing Division. These Policies and Procedures were drafted to memorialize our current practices that had not been formally adopted by City Council. A draft of the Policies and Procedures was presented to the Community Redevelopment and Housing Commission on September 27, 2017 in a Work -Study Session and then again on October 25, 2017 for recommendation to City Council. At its regular meeting on October 25, 2017, the Community Redevelopment and Housing Commission recommended that the City Council adopt the draft Affordable Housing Funds Policies and Procedures by a vote of 6:0 (de Leon absent). 80A-2 Affordable Housing Funds Policies and Procedures March 20, 2018 Page 2 On November 13, 2017, the draft Policies and Procedures was then presented to the Economic Development, Infrastructure, Budget and Technology (EDIBT) Committee. Following direction by the EDIBT Committee, staff held a Stakeholder Meeting on Tuesday, December 19, 2017. A total of 15 stakeholders attended the meeting. All of the stakeholders were in favor of the draft Policies and Procedures and appreciated the City's efforts to memorialize and adopt a fair and transparent process. A second draft of the Policies and Procedures was presented to the EDIBT Committee on January 8, 2018. In addition, staff researched what other cities are doing. Generally, larger cities issue RFPs for the allocation of their affordable housing funds and smaller cities allocate funds internally (e.g. "sole source awards'). Most cities do not have specific policies regarding the allocation of affordable housing funds (few exceptions include the City of Santa Monica and City of Los Angeles). On March 6, 2018, a draft of the Policies and Procedures was presented to City Council in a Work -Study Session. The draft Policies and Procedures have also been available on the City's website for the past three months for public review and comment. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 4 Fiscal Sustainability, Objective # 1 (maintain a stable, efficient and transparent financial environment) and 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. Robert M. ZurScl mi d Interim Execut irector Community Development Agency Exhibit: 1. Draft Affordable Housing Funds Policies and Procedures • I . EXHIBIT 1 Affordable Housing Funds Policies and Procedures City of Santa Ana Housing Division and Housing Authority of the City of Santa Ana •M. EXHIBIT 1 TABLE OF CONTENTS INTRODUCTION TYPES OF LOANS AND GRANTS r PROPOSAL SUBMITTAL AND REVIEW PROCEDt PRE -LOAN COMMITMENT� r/ r\`\ LOAN TERMS AND CLOSING PROCEDURES PROJECT MONITORING AND REPORTING FUNDING SOURCES Low and Moderate Incoine Housing AssefFund/1 } Inclusionary Housing Fund- '• HOME Investment Partnerships Program \ `' Community'Devel6pment Blo , Grant Program y.. s Project -Based Voucher' Program, \ J a NI ,'N Affordable Housing Funds Policies and Procedures 7 8 9 19 20 22 23 23 26 28 32 34 Page 2 EXHIBIT 1 PURPOSE On June 20, 2017, the City Council for the City of Santa Ana directed staff to develop a policy to allocate affordable housing developmentfimds and criteria for selection ofprojects. These policies and procedures have been developed to guide how affordable housing funds and land assets available to the City of Santa Ana are allocated, committed, loaned and monitored for multi family affordable housing development in the City. INTENT The intent of these policies and procedures is to provide a transparent, open and fair process for developers, businesses, non-profit organizations, individuals and other entities interested in the allocation of scarce affordable housing funds and land assets available to the Cityfor affordable housing development. Affordable Housing Funds Policies and Procedures Page 3 80A-7 EXHIBIT 1 Definitions Available Funds: The total amount of Inclusionary Housing Funds, HOME Investment Partnerships Program, Community Development Block Grant Program, Project -Based Voucher Program, Low and Moderate Income Housing Asset Funds (Housing Successor Agency Funds) and/or any other funds received by the City of Santa Ana for housing purposes as published on a quarterly basis in the Housing Division Quarterly Report. Inclusionary Housing Fund In -Lieu Fee pending payments and any other funds that have not yet been received by the City shall not be considered Available Funds. Affordability Restrictions: Covenants that shall run with the land and bind a property owner, its successors, its assignees and every successor in interest to a property that the property owner will make all subsidized rental units on the property available to extremely -low, very -low, low and/or moderate -income households at rents affordable to such households for at least fifty-five (55) years unless superseded by the regulations for an applicable program fund. City: The City of Santa Ana when using the hiclusionary Housing Fund, HOME Investment Partnerships Program, and/or Community Development Block Grant Program funds; or the Housing Authority of the City of Santa Ana when using the Project -Based Voucher Program and/or Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund). Community Housing Develonment Organization (CHDO): A private nonprofit housing development corporation which meets a series of HUD qualifications prescribed in the HOME Program regulations, including the requirement that it is duly organized to provide decent housing that is affordable to low- and moderate -income persons; maintains at least one-third of its governing board's membership for residents of low-income neighborhoods, other low-income residents, or elected representatives of low-income neighborhood organizations; and, provides a formal process for low-income program beneficiaries to advise the organization in its decisions regarding the design, siting, development, and management of affordable housing. Community Based Development Organization (CBDO): A Housing Development Corporation which meets the requirements of the CDBG Program regulations as defined in 24 CFR 570.204(a)(2)(c)(1), as amended from time to time. Congregate Housing: A multi -family residential facility with shared kitchen facilities, deed - restricted or restricted by an agreement approved by the City for occupancy by low or moderate income households, designed for occupancy for periods of six months or longer, providing services which may include meals, housekeeping and personal care assistance as well as common areas for residents of the facility. Deed of Trust: Legal title in the property that is transferred to the City, which holds it as security for a loan provided by the City. Development of Affordable Housing: The process of creating affordable housing through acquisition and/or rehabilitation of eligible properties for rental or transitional housing; Affordable Housing Funds Policies and Procedures Page 4 EXHIBIT 1 acquisition and conversion of non-residential property to multifamily rental housing units; and/or new construction of housing units for rental housing. Extremely Low -Income Household: Households with incomes that do not exceed 30% of the Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Fair Market Rents: Maximum rents as published by HUD for the Housing Choice Voucher Program for Orange County, adjusted for unit size. Grant: Transfer of funds for purposes of financing the development of affordable housing, on the condition that grantee remains in full compliance with the Regulatory Agreement. Unlike a loan, the grant only becomes due and payable in the event that grantee is in default of the Regulatory Agreement. Nonprofit Housing Development Corporation (HDC): A private, nonprofit corporation with proven capacity to develop, own and operate housing, and which has a valid 501(c)(3) or (4) designation from the IRS. Limited Equity Cooperative: A form of ownership whereby the residents form a cooperative corporation which owns and manages the property, and where the return on residents' original equity is limited to no more than 10%, as defined in the California Health and Safety Code Section 33007.5. Loan Agreement: A loan of program funds for purposes of developing affordable housing with a Promissory Note secured by a Deed of Trust and Affordability Restrictions on the property. Qualified Developer: A non-profit or for-profit affordable housing developer with proven capacity to develop, own and operate affordable housing. Low -Income Household: Households with incomes that do not exceed 80% of Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Maximum Affordable Rent: A rent which does not exceed thirty percent (30%) of the maximum income level of the income group being served (see "Low and Moderate Income Households"), adjusted for unit size and utility costs. For Low and Moderate Income Housing Asset Fund: the Maximum Affordable Rent for households with incomes that do not exceed 120% of the area median income for Orange County shall be 30% of 110% of such median income. Moderate -Income Household: Households with incomes that do not exceed 120% of the Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Affordable Housing Funds Policies and Procedures F46111mo Page 5 EXHIBIT 1 New Construction: The construction of new housing, including, but not limited to, assembly of factory -built modular housing, or conventional on-site construction. Notice of Completion: Written notice issued by the owner of a project (or his or her agent) to notify concerned parties that all work on the project has been completed. Operating Reserve Account: An account established for the purpose of funding a deficit in the project's operation. Permanent Loan: A long-term (maturity period of 55 years) mortgage loan. Permanent loan financing is obtained after completion of construction, usually to repay the short-term (non- permanent) construction loan. Promissory Note: A "promise to pay" and evidence of an obligation of a borrower to the City for repayment of a Permanent Loan. Rehabilitation: Correction of local code violations and removal of health and safety hazards; upgrading of housing units to decent, safe and sanitary conditions to comply with the Housing Quality Standards promulgated by HUD and with local standards; repair or replacement of major building systems or components in danger of failure; and alterations, additions and improvements to expand the number of affordable units, or needed to improve the basic livability, energy efficiency, accessibility for the disabled, or security of the property, and to reduce overcrowding. Replacement Reserve Account: An account established for the purpose of funding major repairs or replacement of capital components of a building which reach the end of their economic life and require replacement. Residual Receipts: The gross receipts from the property, less actual costs of operation, administration, maintenance, taxes, insurance, utilities, management, approved replacement and operating reserves, payments of principal and interest on loans senior to the City loan(s), and required debt service coverage. The amount of Residual Receipts shall be calculated based on the actual income and expenses set forth in the Annual Operating Budget required under the Regulatory Agreement or recorded Affordability Covenants, as approved by the City. Transitional Housing: A type of supportive housing used to facilitate the movement of homeless individuals and families to permanent housing. Typically, transitional housing is housing in which homeless people live for up to 24 months and receive supportive services that enable them to live more independently. The supportive services may be provided by the organization managing the housing or coordinated by them and provided by other public or private social service agencies. Very Low -Income Household: Households with incomes that do not exceed 50% of the Orange County area median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time. Affordable Housing Funds Policies and Procedures Foorlymul Page 6 iacu:I1a I. INTRODUCTION The City of Santa Ana provides financial assistance to support the acquisition, rehabilitation, and new construction of properties to preserve and increase affordable housing opportunities for lower income households through the following Programs: • Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) including land assets owned by the Housing Successor Agency • Inclusionary Housing Fund • HOME Investment Partnerships Program (HOME) • Community Development Block Grant Program (CDBG) • Project -Based Voucher Program (PBV) Under these Funds and Programs ("Programs"), the City provides deferred payment loans and/or grants to bridge the financial gap between available resources, including the borrower's/grantee's equity and private financing, and the costs of developing affordable multi -family housing. The Affordable Housing Funds Policies and Procedures ("Policies and Procedures") provides an overview of the types and terms of loans which are available, proposal requirements, review procedures, selection criteria, loan commitment and closing procedures, and project monitoring and reporting requirements of these varied Programs within one comprehensive source of reference. [Throughout this document, loans and grants may be referred to collectively as "loans" except when the terms are unique to a loan or to a grant.] These requirements are minimum requirements for participation in City Programs and are subiect to approval by City Council. Meeting these requirements does not guarantee participation in any Program. The City reserves the right to require additional qualifications for individual proiects. The City reserves the right to reiect anv and all proposals. At a minimum these Policies and Procedures will be compared and reviewed to the City's Progress to achieve the goals in the Housing Element each year. If it is determined that the City is not making adequate progress to achieve the goals of the Housing Element, staff will review these Policies and Procedures to determine whether they should be amended to more effectively achieve the goals of the Housing Element These Programs are administered by the Housing Division of the City of Santa Ana (under the direct supervision of the Housing Division Manager, the direction of the Executive Director of Community Development, and the general supervision of the City Manager). These Policies and Procedures should be interpreted in conjunction with Federal, State, and City statutes and regulations governing the use of these funds. In the event of a conflict between these Policies and Procedures and such statutes and regulations, the requirements of those statutes and regulations shall prevail. All projects must comply with all applicable statutes and regulations, which may include federal requirements contained in 24 CFR 92, 570, 982, and 983, including, but not limited to, environmental reviews, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Leveraging of City dollars (to the extent possible) with outside funding sources will continue to be a priority to preserve and increase affordable housing opportunities for low income households. Affordable Housing Funds Policies and Procedures Page 7 80A-11 EXHIBIT 1 II. TYPES OF LOANS AND GRANTS Program funds may be used for development loans for the following eligible purposes: (1) The purchase of existing multi -family or other buildings for rent or sale to low- and very low-income households and for the development of congregate housing for rent to low- and very low-income persons with special needs (e.g. homeless individuals and families, elderly, persons with a disability). Except for congregate housing, existing buildings shall consist of four or more units, unless the Housing Division Manager finds that a substantial public benefit will be provided by a project consisting of less than 4 units. (2) The purchase or lease of land and buildings for new construction or rehabilitation of housing that may utilize available State and Federal housing assistance programs such as Low -Income Housing Tax Credits, the Section 202 Supportive Housing for the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing Program, and/or other available State and Federal programs. (3) The development of limited -equity housing cooperatives through either conversion or new construction. (4) The provision of interim loan funds for any of the above purposes prior to the funding of a public or private loan. Eligible development costs for the above uses include, but are not necessarily limited to: a. site acquisition and preparation; b. rehabilitation of dwelling units, common areas and related structures; c. new construction; d. carrying charges and financing fees; e. architectural, legal, and organizational fees; f. temporary or permanent tenant relocation costs; and g. developer fees consistent with the policies described in Section IV below. Affordable Housing Funds Policies and Procedures 80A-12 Page 8 EXHIBIT 1 III. PROPOSAL SUBMITTAL AND REVIEW PROCEDURES Proposal Submittal All Proposals for Program funds shall be submitted to the Housing Division and shall be reviewed and recommended for approval to the Community Redevelopment and Housing Commission for its review and recommendation for City Council or Housing Authority approval through a transparent, open and competitive selection and review process as established in this section. The competitive selection process will begin with a determination by Housing Division staff that the City has sufficient Available Funds to develop one or more affordable housing projects. If the City has sufficient Available Funds to develop one or more projects, the Housing Division, upon City Council approval, will issue a Request for Proposals (RFP), Request for Qualifications (RFQ) or Notice of Funding Availability (NOFA), collectively referred to as the "RFP Process" for a certain amount of Available Funds. The RFP Process will be open ("Open RFP Process") and provide sufficient time for applicants to identify an eligible site and complete and submit a proposal in response to the RFP announcement. It will also align with annual funding cycles through the Low -Income Housing Tax Credit Program. The RFP Process will be open for at least one year with four (4) quarterly deadlines to submit a proposal scheduled throughout the year. The RFP Process will be announced through notices to the following parties: • Interested Developers and Nonprofit Organizations on the Housing Division's RFP Process Database o Developers and Nonprofit Organizations interested in being added to the RFP Process Database can do so by contacting the City's Housing Division Other affordable housing membership association resources (e.g. Southern California Association of Nonprofit Housing, Kennedy Commission, 2-1-1 OC) Public Notice in the local newspaper Published on www.Planetbids.com Proposals must meet the minimum requirements outlined in the RFP Process to ensure compliance with available funding sources' regulations and requirements. Proposals will be received from qualified firms for projects consistent with the requirements of the Available Fund(s) issued through the RFP Process. Proposals shall not exceed the amount of the City's total Available Funds as published on a quarterly basis in the Housing Division Quarterly Report. A Qualified Developer (an "Applicant") shall complete and submit to the Housing Division the Proposal for Program funds and prepare all required attachments and exhibits, including, but not limited to, the project proforma, budget, sources and uses, project management plan, tenant selection and marketing plan, relocation plan (i£ applicable), signed purchase agreement and escrow instructions, preliminary title report, and limited partnership documents (if applicable). Affordable Housing Funds Policies and Procedures Page 9 M:cn.11a Proposal Review After each deadline for the Open RFP Process, the Housing Division staff shall review the Proposal to determine that the minimum Program and RFP Process requirements are met (minimum threshold review). Proposals that do not meet the minimum threshold review will be considered non-responsive. If the Proposal meets the minimum threshold review, the Housing Division will form a Review Panel. The Review Panel for the RFP Process will consist of at least one employee from the City's Public Works Agency, Planning and Building Agency, and Community Development Agency and one outside agency or government -entity. If an employee is not available in one department, a second employee may be requested from one of the other two departments so long as there are at least two of the three City Agencies represented on the Review Panel. Using the scoring and selection criteria provided in the RFP Process and provided below, the Review Panel shall determine whether the proposal is recommended for a pre -loan commitment, with or without conditions. Including the scoring and selection criteria, the Review Panel shall review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. Proposed projects must receive a minimum threshold score of 75 points to move forward with the proposal review process. If the Review Panel determines, in its discretion, that the Proposal may be recommended for approval, the Housing Division shall request an underwriting and subsidy layering review by a real estate advisor selected by the City. The real estate advisor shall confirm the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. If the Review Panel determines that the Proposal will not be recommended for approval (i.e. the Proposal does not meet the minimum threshold score of 75 points), the Developer will be notified in writing of the decision and the result will be published in the Housing Division Quarterly Report. City Councillrritiated Proposal Review A Developer may submit a request for a sole source award of funding directly to the City Council (the request cannot exceed the amount of the City's total Available Funds as published on a quarterly basis in the Housing Division Quarterly Report). At least one Councilmember must then submit a written request to staff to review the Developer's proposal. After a written request has been received, staff will request a complete proposal from the Developer. After the proposal has met a minimum threshold review by staff, the project will undergo an underwriting and subsidy layering review analysis by a real estate advisor selected by the City, to be paid for by the Developer. After the analysis has been completed, staff will present the real estate advisor's analysis and the proposal to City Council for direction without any recommendation(s) from staff on funding or not funding the project. If City Council requests a second real estate analysis to be conducted, the City will pay for the second analysis, not the developer. Affordable Housing Funds Policies and Procedures Page 10 EXHIBIT 1 By Right Funding for Achieving City Goals and Objectives If at any time a developer proposes a project that is located in a zoning district permitting development of residential uses "by -right" and such approvals do not require any discretionary actions by the City, the developer may submit an application for by -right funding of extremely low-income affordable housing units. Staff may then form a Review Panel to consider the developer's application for by -right funding as quickly as possible using the scoring and selection criteria from the Open RFP Process. This policy will expedite consideration of the developer's application for by -right funding. Only units serving households at 30% Area Median Income and below may qualify for by -right funding under this application process. The maximum per unit subsidy shall not exceed the maximum limits established by HUD for the HOME Program at the time of submission of the application for by -right funding by the developer. Applications for by -right funding may only request Inclusionary Housing Funds from the City under the above-described process and the requested amount shall not exceed the amount of the City's total Available Funds as published quarterly in the Housing Division Quarterly Report. However, funding is subject to the availability of actual Inclusionary Housing Funds. Additionally, the City reserves the right to amend these policies at any time, which could affect the availability of such funding, or to deny funding for any project that the City determines in its sole discretion does not align with the City's goals and objectives for this program. Three -Year Goals for By -Right Funding Proposals: The City of Santa Ana has established the following Goals for the next three years, to be evaluated on an annual basis, for proposals submitted under this section. The Goals are linked to the Regional Housing Needs Assessment (RHNA) per the City's Housing Element and based upon what affordable housing development projects that the City has in the pipeline for development and estimates/goals for Year 3: Competitive Selection Criteria In selecting among competing project proposals, consideration shall be given to projects that meet the following General Principles: • Significantly increase affordable housing opportunities for large families (three- and four- bedroom units). • Benefit a higher percentage of units for extremely low-income households with deeper affordability. • Are cost effective with low operating costs (green building techniques). • Increase affordable housing opportunities for special needs populations, including homeless individuals and families, persons with a disability, and seniors. • Are located in areas currently underserved by affordable housing developments. Affordable Housing Funds Policies and Procedures Page I I # of Extremely Low- # of Very Low -Income # of Low -Income Units Year Income Units at 30% Units at 50% AMI at 80% AMI AMI 1 54 111 9 2 54 33 38 3 115 82 34 TOTAL 223 226 81 Competitive Selection Criteria In selecting among competing project proposals, consideration shall be given to projects that meet the following General Principles: • Significantly increase affordable housing opportunities for large families (three- and four- bedroom units). • Benefit a higher percentage of units for extremely low-income households with deeper affordability. • Are cost effective with low operating costs (green building techniques). • Increase affordable housing opportunities for special needs populations, including homeless individuals and families, persons with a disability, and seniors. • Are located in areas currently underserved by affordable housing developments. Affordable Housing Funds Policies and Procedures Page I I EXHIBIT 1 The following constitute the City's general selection criteria, and may be modified from time to time to address practical requirements arising from a particular solicitation at the City's discretion: COMPETITIVE SELECTION CRITERIA _ 1. LEVEL OF AFFORDABILITY AND TARGET POPULATION (Max. 25 Points) ELIGIBLE POINTS Project significantly increases affordable housing opportunities for large families (three- and four-bedroom units) 10 Project provides a higher percentage of units for extremely low-income households with deeper affordability 10 Project increases affordable housing opportunities for special needs populations including, but not limited to, homeless individuals and families, and persons with a disability 5 Sub -total 25 2. TIMELINESS TO BUILD NEW HOUSING (Max. 20 Points) Project has demonstrated site control 7 Project is zoned appropriately 5 Project does not have any other site -related issues 5 Project aligns with the City's Housing Element, Strategic Plan, and/or 5 -Year Consolidated Plan 3 Sub -total 20 3. PROPERTY MANAGEMENT EXPERIENCE AND SHILLS Max. 15 Points Project is energy efficient and incorporates green -building techniques 6 Applicant's ability to manage affordable rental units to ensure ongoing compliance with affordability requirements and long term financial solvency 3 Applicant's past experience in property management 3 Applicant's capacity and ability to quickly lease completed units 3 Sub -total 15 4. DEVELOPER EXPERIENCE AND SHILLS (Max. 15 Points) Applicant's capacity and ability to obtain additional funding 4 Applicant's capacity and ability to obtain entitlements 4 Applicant's overall past and projected effectiveness to provide affordable housing 4 Applicant's past and projected effectiveness to manage the construction process and stay on schedule 3 Sub -total 15 5. LEVERAGING OF CITY FUNDS ax. 5 Points) Applicant's potential or capacity to obtain additional financing 5 Sub -total 5 Affordable Housing Funds Policies and Procedures Page 12 EXHIBIT 1 6. ANTICIPATED CASH FLOWS (Max. 15 Points) Project's proposed development costs are reasonable and comparable 3 Project's proposed rents are realistic 3 Project's operating costs are realistic and reasonable 3 Project has sufficient operating and replacement reserves 3 Project is projecting a positive cash flow through affordability period 3 Sitb-total 15 7. PROJECT LOCATION (Max. 5 Points) Project is located in an area currently underserved by affordable housing 5 Sub -total 5 TOTAL ELIGIBLE POINTS 100 Developer Input on In -Lieu Fee Payments to the Inclusionary Housing Fund Under Section 41-1904(c)(3) of the Housing Opportunity Ordinance, a "Developer may provide input regarding what project the in lieu fees should be applied towards, but such input shall not be dispositive. The in -lieu fees collected by the City are City funds over which the City has complete and absolute discretion". If a Developer chooses to provide input on the allocation of their in -lieu fees, input must be submitted in writing within no more than 90 calendar days from the date payment of the in -lieu fees are deposited with the City. The Developer's request will be worth up to five (5) bonus points awarded to the applicant within the RFP Process through the Competitive Selection Criteria provided above. The bonus points do not guarantee that the project will be funded with the in -lieu fees paid by the Developer that provided the input. Determination of Reasonable Costs and Financial Feasibility A real estate advisor shall review the Applicant's estimates and projections of rents, expenses, reserves and development costs in accordance with industry -standard underwriting guidelines. The Applicant shall provide a proforma and background documentation on all costs for the analysis, as requested by the City. The City may recommend adjustments to cost and expense amounts as appropriate to conform to current market and industry standards. The total amount of the Program loan and all private loans shall not exceed the total development costs approved by the City. The maximum allowable purchase price shall not exceed the appraised value as evidenced by an appraisal prepared by a California State Certified General Appraiser and approved by the Housing Division, which is dated not more than six (6) months prior to the date of the proposal. The appraisal may not determine property value based solely on sales of properties financed by public agencies. The maximum affordable mortgage amount shall be calculated using the rent schedule proposed by the Applicant as approved by the City, the proposed interest rate and terms of the primary loan(s), and reasonable operating allowances and reserves, including a reserve to amortize a mortgage, as needed. Affordable Housing Funds Policies and Procedures 80A-17 Page 13 EXHIBIT 1 The requested City loan for a project shall not exceed the total amount of the gap between the maximum affordable mortgage amount available from non -City sources plus funds available from other sources of public subsidy, and the total development costs plus any on-going annuity necessary to maintain affordable rent levels as defined in the Proposal. All assisted units must maintain rents that do not exceed the Maximum Affordable Rent, as defined in the Loan Documents, for the life of the loan in accordance with the terms of the loan or other recorded Covenants. Syndicated projects must be structured such that ownership can feasibly be acquired by the nonprofit General Partner at the end of the term of the limited partnership agreement, when appropriate. When determining the maximum City loan, the real estate advisor will review the rent schedule and annual cash flows to determine whether long- term affordability is maintained. In cases where a rent subsidy program is used and the mortgage is calculated on the basis of the subsidized rents, an "affordability reserve" may be required, where the amount of the reserve shall be sufficient to cover the difference between affordable rents and the subsidized rents. Developer Fee For new construction, acquisition and rehabilitation projects utilizing Low -Income Housing Tax Credits, the developer fee shall not exceed the maximum fee allowed by the California Tax Credit Allocation Committee. The Housing Division Manager may require the developer to defer a portion of their developer fee, based upon an analysis by the real estate advisor, to make the project feasible, reduce the amount of Program funds being requested for the project, or both. Developer Capacity Applicants must demonstrate the capacity to successfully develop the proposed project. The City shall evaluate capacity on the basis of the Applicant's track record in developing and managing affordable housing, or inclusion of development team members with a successful record in developing such housing. In addition, Applicants must demonstrate the financial and legal capacity to undertake the proposed project. Clear Title The Applicant shall have the responsibility to obtain clear title to the property. As soon as feasible, the Applicant will submit a preliminary title report for City review and written approval. Staff shall review the state of title, including the conditions, covenants, restrictions, and legal description of the property. In the case of title issues, the Applicant shall correct the state of title and remove all exceptions to the title not consented to by the City before the City closes the loan. Senior Financing The Applicant shall secure other resources such as equity from syndication proceeds, tax exempt financing, federal and state housing rental and development subsidies and available private financing to minimize the amount of the City loan. The Applicant will submit to the City the terms and conditions of all non -City financing as well as equity contributions for review. The Affordable Housing Funds Policies and Procedures Page 14 FOODINFOO EXHIBIT 1 Applicant must submit projected cash flows for the term of the loan, showing the maximum possible increases (i.e. worst case scenario) in debt service per year, the projected rent and expense increases, the means of making up any deficits, and projected payments of Residual Receipts. The real estate advisor shall analyze the feasibility of the project to carry the loan(s), and if feasible will review the terms of the non -City financing. The City may, at its sole discretion, calculate the mortgage amount at the terms and rates of available financing programs other than that proposed by the Borrower, if alternative terms and rates are available that would reduce the amount of City subsidy required, and would otherwise conform to the City/Agency requirements. Management and Affirmative Marketing Plan The Applicant shall prepare a Project Management Plan for City review and approval. The Plan shall describe the Applicant's policies and procedures concerning: (1) Affirmative marketing and tenant selection procedures, including proposal procedures, prioritization of Santa Ana residents and workers (see Local Preference section below) where possible; waiting lists, and lease agreements; and marketing efforts and tenant selection procedures that will be used to attract eligible persons from all racial, ethnic and gender groups, as well as persons living with disabilities, in the housing market area to the available housing opportunities. The Plan should describe the protocols for keeping records of affirmative marketing activities and for keeping records of requests (from applicants and existing tenants) for all units assisted with affordable housing funds; (2) Procedures for determining tenant eligibility and certifying incomes. The Plan should demonstrate sufficient outreach to disability -related service providers to ensure that accessible units are occupied to the extent possible by those households who need the accessibility features due to disability. The Plan should demonstrate that the Developer conducted sufficient outreach to persons that meet the qualifications identified in the Local Preference section below. An outreach plan and results from outreach efforts should be maintained by the developer and available to submit to the City upon request; (3) Management/tenant relations and assistance to tenant organizations, including the training and use of tenants to perform maintenance and management functions as appropriate; (4) Maintenance and repair services; (5) On-site management facilities; (6) Rent collection; (7) Records and reporting requirements; (8) Personnel and staffing; (9) Compliance with all tenant protection laws, including Building and Health and Safety Codes; (10) Fee schedule; and (11) Any other relevant issues requested by the City to be addressed. Affordable Housing Funds Policies and Procedures Page 15 EXHIBIT 1 No person shall on the grounds of race, marital status, sex, color, age, religion, national origin, ancestry, immigration status, physical disability, AIDS, sexual orientation, or any other protected class, be excluded from participating in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with these funds. Local Preference Local preference for Santa Ana residents and workers in tenant selection shall be a requirement of the City's Affordable Housing Funds and Programs. Local preference shall be a requirement of the HOME, CDBG, and PBV Programs only ifpermitted by the federal government. In evaluating a loan request, staff shall evaluate a loan applicant's effectiveness in achieving the City's local preference goals and give priority to those loan applicants who administer their wait lists using sorting protocols which result in outcomes where households who live or work in Santa Ana are beneficiaries of City -funded affordable housing. Subject to applicable tenant income limits and any preferences required by the laws of the United States or the State of California (including, but not limited to, laws and regulations governing nondiscrimination and preferences in housing occupancy), the Borrower shall give preference in leasing units in the following order of priority: First priority shall be given to persons who have been permanently displaced or who face permanent displacement from housing in Santa Ana as a result of any of the following: a. A redevelopment project undertaken pursuant to California's Community Redevelopment Law (Health & Safety Code Sections 33000, et seq.) -- applicable only to projects funded by the Low -Moderate Income Housing Asset Fund. b. Ellis Act, owner -occupancy, or removal permit eviction; c. Earthquake, fire, flood, or other natural disaster; d. Cancellation of a Housing Choice Voucher HAP Contract by property owner; or e. Governmental Action, such as Code Enforcement. 2. Second priority shall be given to persons who are either: a. Residents of Santa Ana and/or b. Working in Santa Ana at least 32 hours per week for at least the last 6 months. c. Persons who seek to reside in Santa Ana as an accommodation to a mental or physical disability. Regarding any "accessible units" that are required as part of a multifamily development, such accessible units should be fust offered to existing occupants of the building (if applicable) who are not occupying an accessible unit and who have indicated a need for the features of an accessible unit. If no existing occupants of the building have indicated the need for the features of an accessible unit, or if the building is being leased for the initial occupancy, then such accessible units should first be offered to applicants who have indicated the need for the features of an accessible unit, inclusive of the preferences above. The application of preferences may not conflict with Section 504 of the Rehabilitation Act of 1973, 24 C.F.R. §100.202, and any other preemptive laws that may be enacted regarding fair housing for persons living with disabilities. Affordable Housing Funds Policies and Procedures FOODMIKII Page 16 OVA: 11::a "Accessible units" refers to those units which were originally approved by the City specifically as accessible units and which provide specific features to address the needs of persons living with mobility impairments or persons living with sensory impairments. Environmental Review Project sites must be free from adverse environmental impacts or the proposed project must successfully mitigate these impacts. The City shall assess the environmental effects of each activity proposed to be carried out with City funding in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the California Environmental Quality Act (CEQA), as applicable. For projects subject to NEPA review, no loan funds (except for activities normally exempted from the environmental clearance requirements in 24 CFR Part 58.34) shall be released until the environmental review is completed, the notice of finding and environmental assessment results are published, and the 15 -day public comment period expires. Prevailing Wages Any contract for construction (rehabilitation or new construction) of affordable housing with 12 or more units assisted with HOME Program funds, 8 or more units if the project is assisted with CDBG Program funds, or 9 or more units if the project is assisted with PBV Program funds, must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis -Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. Relocation If necessary, the Applicant shall develop a plan for temporary relocation or permanent voluntary relocation, where necessary, for review by the City. The Relocation Plan shall be in accord with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42, and the California Relocation Assistance Act, where applicable. There shall be no permanent involuntary tenant displacement. In cases where tenants will be voluntarily displaced, the Applicant must submit a copy of a letter to each tenant which details the tenant's rights to relocation assistance. In the case of a tenant's waiver of relocation payments, the Applicant must submit a letter signed by the tenant indicating the tenant's knowing and voluntary waiver of any relocation assistance. In the absence of these items, the Applicant/ other displacing entity," as that term is defined under applicable state or federal law will be responsible for paying the tenant the appropriate level of relocation assistance. Contracting Requirements All Applicants will be required to submit an affirmative action/equal employment opportunity plan indicating the methods that they will use to encourage the participation of certified Minority Affordable Housing Funds Policies and Procedures Page 17 80A-21 EXHIBIT 1 Business Enterprise/Women Owned Business Enterprise (MBE/WBEs) in their development project. City staff will review the plan and competitive bid and selection process to ensure that required procedures have been followed. City staff will also monitor construction to ensure that MBE/WBEs are participating in the project as indicated in the construction contract. All work shall be completed by State -licensed contractors which shall have Santa Ana business licenses. All contracts must comply with competitive bidding requirements. All efforts shall be made by the private owner or the Borrower to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin, ancestry, physical disability, AIDS, sexual orientation, or any other protected class, in seeking contractors and subcontractors. Affordable Housing Funds Policies and Procedures 80A-22 Page 18 EXHIBIT 1 IV. PRE -LOAN COMMITMENT Pre -Loan: Commitment Following the RFP Process, Proposal Review, Determination of Reasonable Costs and Financial Feasibility, and conditional on meeting the other requirements and conditions outlined above, a pre -loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager, the City Attorney's Office, and the Executive Director of Community Development, before being recommended for approval. The letter shall state the maximum amount of program funds reserved for the project and list all of the additional conditions, documents and steps that must be taken by the Borrower prior to loan closing. After the pre -loan commitment letter has been drafted, staff will prepare a written staff report recommending a commitment of funds for a proposal and explaining the reasons for the commitment. The recommendation will be made first by the Housing Division to the Community Redevelopment and Housing Commission (CRHC) to issue the commitment of program funds to the project in the form of an award of program funds. If recommended by the CRHC to City Council, a recommendation will then be made by the Housing Division to the City Council and/or Housing Authority for final approval of the commitment of program funds by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members. If approved by City Council and/or the Housing Authority, a notice of the issuance of the pre - loan commitment shall be posted publicly, and a copy of such notice shall be published in a newspaper of general circulation, no later than 21 days after the commitment is issued. Upon issuance of a pre -loan commitment letter, the Housing Division shall work with the Developer to secure all of their remaining financing. If the conditions and projections for the project rent schedule or non -City loans changes or is modified after the pre -loan commitment letter is issued, a second underwriting and subsidy layering analysis will be conducted by a real estate advisor. Conflict of Interest No person who is an employee, agent, consultant, officer, or elected official or appointed official of the City who exercises or has exercised any function or responsibility regarding activities assisted with Program funds or who is in a position to participate in a decision making process or gain inside information concerning these activities, may obtain a financial interest or benefit from an activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Affordable Housing Funds Policies and Procedures Page 19 EXHIBIT 1 V. LOAN TERMS AND CLOSING PROCEDURES Loan Terms Permanent loans that are not grants shall be due and payable in no more than fifty-five (55) years subject to the terms of the applicable Loan Agreement and recorded Affordability Restrictions. If a developer requests a shorter term loan, the City would be willing to negotiate. However, except for certain HOME funded projects, the Affordability Restrictions shall remain in effect for at least 55 years. Purchase Option At the end of the permanent loan term, the City may have the option to take title to the property in accordance with the terms of an option agreement if the owner of the property decides to sell Interest Rates for Loans The interest rate shall be set at either: (1) The rate established by the Federal Home Loan Mortgage Corporation for the average conventional commitment of a fixed rate, thirty-year (30) mortgage, and shall be compounded annually; or (2) When necessary to secure investor equity, interest rates of affordable housing projects that include tax credits or conventional lenders, at 3% simple interest; or (3) When the City loan is in a subordinate position to a first trust deed capital advance/loan made under the U.S. Department of Housing and Urban Development (HUD) Section 202 or Section 811 Programs, the interest rate shall not exceed the highest permissible rate on the applicable HUD Section 202 or Section 811 Program mortgages, under authority of Chapter 24 of the Code of Federal Regulations (CFR), Subpart 885.410(g); or (4) When required to meet federal subsidy layering guidelines, at the Applicable Federal Rate (that rate established by the Internal Revenue Service pursuant to Section 1274(d)(1) of the Internal Revenue Code). Loan Payments Payments on permanent loans shall be made as follows: (1) Payments of principal and interest shall be made annually to the City in an amount equal to 50% of project Residual Receipts, if any. Payments shall be applied first to accrued interest, and then to principal. (2) The Borrower may elect to prepay the loan prior to the end of the term. However, the Regulatory Agreement or recorded Affordability Covenants shall remain in full force and effect for its term regardless of any prepayment. Affordable Housing Funds Policies and Procedures Page 20 EXHIBIT 1 (3) If the Borrower violates the terms of the Regulatory Agreement or recorded Affordability Covenants such that the City declares the loan in default, the entire amount of unpaid principal plus accrued interest at the rate established at the time of closing shall be due based on the terms of the agreement. (4) Unless paid in full earlier, the remaining principal balance of the loan and accrued interest shall be due and payable at the end of the term of the Promissory Note. Where necessary to meet requirements of third parry investors and with approval of the Housing Division Manager, the City may allow the remaining principal and accrued but unpaid interest to be payable only to the extent that the fair market value of the Project exceeds the principal balance of the existing indebtedness secured by the property. Security The loan shall be secured as follows: (1) The loan shall be secured by a Deed of Trust and Promissory Note which may be subordinated to Deeds of Trust securing other Federal, State, City loans, or loans from conventional financing institutions used in conjunction with the loan on the same property. The City must approve all requests for subordination. (2) The loan shall be further secured by a Regulatory Agreement or recorded Affordability Covenants to assure that Program funds are used to provide long-term affordable rental housing opportunities for low-, very low-, and extremely low-income households, as applicable. The Borrower and the City shall execute the Regulatory Agreement or recorded Affordability Covenants regulating project rents, tenant selection procedures, use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use. The Regulatory Agreement or recorded Affordability Covenants shall be recorded with the Deed of Trust. Loan Closing Procedures After the developer has secured all of their remaining non -City financing (e.g. Low -Income Housing Tax Credits), the Housing Division will prepare draft loan documents following the Loan Terms above, including a draft Loan Agreement, Promissory Note, Deed of Trust (or other appropriate security as determined by the Housing Division Manager), and Regulatory Agreement or recorded Covenants, and submit them to the City Attorney's Office for review and approval as to form. Requirements for a Regulatory Agreement or recorded Covenants may be waived in the case of a project which is funded under the HUD Section 202 or Section 811 Program. After the loan documents have been finalized, a recommendation will be made by the Housing Division to the CRHC to approve the loan documents. If recommended by the CRHC to City Council, a recommendation will then be made by the Housing Division to the City Council and/or Housing Authority for final approval of the loan documents by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members. Funds may be disbursed following execution and recording of the Loan Documents by the Borrower and the City Manager, and compliance with all commitment conditions. Staff shall submit a request for release of funds required for loan closing to the Executive Director of Finance. The Executive Director of Finance may then authorize release of loan funds into an escrow account established for the loan closing with instructions for disbursement. Affordable Housing Funds Policies and Procedures Page 21 EXHIBIT 1 VI. PROJECT MONITORING AND REPORTING The Housing Division shall monitor the project during rehabilitation or construction as needed for compliance with any loan documents and applicable City, State and/or Federal regulations. The Housing Division shall request notification of the final inspection and final construction release from the primary lender, and shall review management practices and reporting procedures with the borrower and project management agent at that time for full compliance with Program requirements. A copy of the Notice of Completion for the project shall be submitted to the Housing Division at the time the Notice is recorded. Borrowers shall be required to certify annually that they have complied with affirmative marketing and tenant selection procedures, and shall submit an annual report to the Housing Division in the form specified by the Division. The Housing Division shall monitor compliance with any Regulatory Agreement or recorded Affordability Covenants, the loan documents, and applicable City, State and/or Federal regulations on an annual basis. Additional details regarding the monitoring process will be included as part of the final Loan Documents. Fair Housing and Equal Opportunity Borrower shall post notices stating that a housing project is subject to Fair Housing and Equal Employment Opportunity requirements of 24 CFR 92.350 and 351 at each project site. Establishment and Use of Reserve Funds Upon completion of project construction, the borrower will be required to capitalize a reserve fund in an amount determined by the City and make annual contributions to the fund. The reserve fund can be used for expenditures related to necessary structural and equipment replacements and improvements of a capital nature, and is not intended to be used for ordinary maintenance items. Annual Reporting by the Housing Division On a quarterly basis, the Housing Division shall prepare a report to the CRHC for its review and recommendation for City Council approval. The quarterly report shall include details on at least the following items: (1) Loan Activity; (2) Loan Portfolio Management and Monitoring; (3) Proposals that were submitted during the previous quarter under the RFP Process but were not recommended for approval by a Review Panel; (4) Affordable Housing Projects under Development; and (5) Available Funds for Affordable Housing Development Projects. Affordable Housing Funds Policies and Procedures Page 22 *AV NMI Is Is VII. FUNDING SOURCES Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) Source of Funds Funding sources for this program are generated from proceeds from the sale of former Redevelopment Agency housing assets, residual receipts from former Redevelopment Agency assets (i.e. loans), as well as a portion of the loan repayments from the former Redevelopment Agency to the City. Sources are set aside for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing as stipulated by California Health and Safety Code Section 34176. (Further information on grant terms provided in Section III). This fund includes land assets owned by the Housing Authority acting as the Housing Successor Agency that must be developed for affordable housing or sold at or above fair market value to increase the Low and Moderate Income Housing Asset Fund. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC's) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Proiects All new construction projects shall be affordable to households whose income, as adjusted for household size, does not exceed 80% of area median income. Eligible acquisition and/or rehabilitation projects will: (1) have four or more apartments or be congregate housing or mobile home units, except where the Housing Division Manager finds that the project will provide a substantial public benefit; (2) be in need of rehabilitation as defined herein; (3) be located in the City of Santa Ana; (4) be free from significant adverse environmental conditions, except those that can be mitigated at a reasonable cost through rehabilitation; and, (5) minimize tenant displacement. Eligible Uses and Activities Program funds can be used to make loans or grants to eligible borrowers who will provide affordable housing, principally for low- and moderate -income households. Eligible uses of deferred payment loan funds or grants include, but are not limited to, the following: (1) acquisition and/or rehabilitation of eligible properties for rental or transitional housing; Affordable Housing Funds Policies and Procedures 80A-27 Page 23 EXHIBIT 1 (2) acquisition and conversion of non-residential property to multifamily rental housing units; and (3) new construction of housing units for rental or transitional housing. Affordability Requirements As required by State law, all projects shall be targeted to households earning 80% or less of the area median income, based on the State of California Housing and Community Development income and rent limits. State law also requires that at least thirty percent (30%) shall be expended for rental housing affordable to and occupied by "low-income" households does not exceed thirty percent (30%) of the area median income and no more than twenty percent (20%) affordable to and occupied by households between 60% of the area median income and 80% of the area median income. Units are considered affordable when the rent, less a deduction for a utility allowance, for a "very low-income" household does not exceed thirty percent (30%) of 50% of the area median income; for a "low-income" household does not exceed thirty percent (30%) of 60% of the area median income. Very low-income households are households whose incomes do not exceed 50% of the area median income. Low-income households are households whose income does not exceed 80% of the area median income. The area median income as referenced above is the Orange County area median income figure, adjusted for household size, as published by the California Department of Housing and Community Development (HCD) from time to time. Security The loan or grant shall be secured by a Deed of Trust and Promissory Note which may be subordinated to deeds of trust securing other Federal, State, or City loans, or loans from conventional financing institutions used in conjunction with the Low and Moderate Income Housing Asset Fund loan on the same property. The City must obtain written commitments to protect the City's investment in the event of a default. The City must approve all requests for subordination. The loan or grant shall be further secured by recorded Affordability Covenants and Restrictions, running with the land, to assure that Program funds are used to provide long-term affordable rental housing opportunities for low- and moderate -income households. The Borrower and the City shall execute and record Affordability Covenants and Restrictions regulating project rents, tenant selection procedures, use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use, including a prohibition on conversion of the project to condominium or stock cooperative ownership for the term of the recorded Affordability Covenants and Restrictions. The recorded Affordability Covenants and Restrictions shall provide for the longest feasible time. Notwithstanding the above, the Affordability Covenants and Restrictions would in no event, be shorter than any other term of a Regulatory Agreement or Covenant recorded concurrently with the City's Covenants and Restrictions. The Affordability Covenants and Restrictions shall be recorded with the Deed of Trust. Affordable Housing Funds Policies and Procedures Page 24 EXHIBIT 1 In some circumstances, these Affordability Covenants and Restrictions may be subordinated by the City, pursuant to Section 33334.14 of California Health and Safety Code, to liens, encumbrances, or regulatory agreements of other federal or state agencies or lenders providing financing for the project, subject to assurances by senior lenders that the City's lien rights will be protected. Affordable Housing Funds Policies and Procedures Page 25 EXHIBIT 1 Inclusionary Housing Fund Source of Funds Funding for this program is provided using revenues generated through in -lieu fees from the City of Santa Ana Housing Opportunity Ordinance (revised and adopted by City Council in October 2015). Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC's) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Funds can be used to increase and improve the supply of housing affordable to moderate, low, very -low and extremely -low income households in the City. Eligible rehabilitation projects will: (1) be in need of rehabilitation as defined herein; (2) be located in the City of Santa Ana; (3) be free from significant adverse environmental impacts, except those that can be mitigated through rehabilitation; and (4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program. Eligible projects which involve new construction or conversion of an existing non-residential use will conform to items (2), (3), and (4) above. Eligible Uses and Activities Funds can be used to make loans to eligible borrowers to provide affordable housing, for low - and very low-income households, including, but not limited to, the following: 1. acquisition and rehabilitation of eligible rental properties; 2. acquisition and conversion of non-residential property to multifamily rental housing units; 3. new construction of rental housing units; 4. predevelopment loans up to a period of 24 months for site acquisition, predevelopment activities, including professional services which cannot be obtained on a contingency basis, and construction. Such loans may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Division Manager; 5. homeless services programs; 6. security deposit assistance programs; Affordable Housing Funds Policies and Procedures Foorlyfficl Page 26 EXHIBIT 1 7. immigrant -focused housing programs and services; 8. foreclosure prevention; and 9. cooperative housing programs. Affordable Housing Funds Policies and Procedures 80A-31 Page 27 EXHIBIT 1 HOME Investment Partnerships Program Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME Program (including program income and residual receipts), and therefore is subject to the federal rules and regulations found in 24 CFR Part 92, as amended from time to time. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC's) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Proiects Projects eligible for HOME funding shall: (1) be rental projects located in the City of Santa Ana; (2) contribute to the achievement of the City's Strategic Plan and fair housing goals; (3) involve 4 or more apartments which will be rented to eligible lower income households at rents that do not exceed rents as defined by 24 CFR 92.252, as amended from time to time. Projects serving persons with special needs, or where the City Manager finds that the project will provide a substantial public benefit, may have fewer than four units. Transitional or permanent supportive housing may be provided (but not temporary shelters). (4) have at least 20% of the HOME -assisted units rented to very low-income families (50% of median income) under the terms and conditions set forth in 24 CFR 92.252 (2)(b); (5) demonstrate financial feasibility -- including the ability to maintain rents for the subsidized units at affordable levels for the periods specified in 24 CFR 92.252; (6) be free of significant adverse environmental impacts, except those that can be mitigated through the project itself; (7) minimize tenant displacement; (8) comply with all local building and zoning codes and standards, including energy efficiency and water conservation standards, and meet housing quality standards in Section 882.109 of Title 24. Newly constructed housing must meet the current edition Model Energy Code of the Council of American Building Officials; (9) make efficient use of public funds and avoid "layering" of subsidies beyond those necessary to achieve a financially feasible project; and, (10) have at least 51 % of the project space be residential, if in a mixed use project. Eligible Uses and Activities HOME funds may only be used to finance new construction or acquisition and/or rehabilitation of rental housing which is affordable to very low and low-income households as defined by 24 Affordable Housing Funds Policies and Procedures 80A-32 Page 28 EXHIBIT 1 CFR 92.2. Fifteen percent (15%) of the annual HOME fund allocation shall be set aside for certified Community Housing Development Organizations (CHDO's). New construction costs eligible for HOME funding shall be as specified in 24 CFR Part 92, including: 1. site acquisition; 2. site preparation costs (grading, filling, etc.); 3. financing costs as described in 24 CFR 92.206; 4. architectural, engineering, and other related soft costs; 5. the cost of extending or upgrading utilities to the site to support the proposed project; 6. construction costs; 7. relocation costs; and, 8. affirmative marketing and audit costs related to HOME program requirements. Rehabilitation costs eligible for HOME funding include: 9. project acquisition with or without rehabilitation; 10. financing costs, as described in 24 CFR 92.206; 11. architectural, engineering, or other design costs; 12. utility upgrade or extension costs; 13. costs associated with demolition (where necessary) only if rehabilitation is commenced within 12 months of demolition; 14. construction costs; 15. project audit costs; and, 16. affirmative marketing costs. Ineligible Uses and Activities The following costs are not eligible for HOME funding: 1. project reserve accounts for replacement or operating reserves, and operating subsidies; 2. payment of impact fees; 3. land banking; 4. emergency repair or weatherization programs; 5. commercial properties; 6. temporary shelters; or 7. project -based rental assistance. Affordability Requirements HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of: 1. The fair market rent for existing housing for comparable units in the area as established by HUD; or 2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. Affordable Housing Funds Policies and Procedures Page 29 FoorlyffiN WPM Mal In rental projects with five or more HOME -assisted rental units, twenty (20) percent of the HOME -assisted units must be occupied by very low-income families and meet one of following rent requirements: The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project -based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the Federal or State proj ect-based rental subsidy program. To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent and occupancy requirements over the length of an affordability period. For homebuyer and rental projects, the length of the affordability period depends on the amount of HOME assistance to the project or buyer, and the nature of the activity funded. Table 1-1: Determining the HOME Period of Affordability: HOME Assistance per Unit or Buyer Length of the Affordability Period Less than $15,000 5 years $15,000 - $40,000 10 years More than $40,000 15 years New construction of rental housing 20 years Refinancing of rental housing 15 years Throughout the affordability period, income -eligible households must occupy the HOME - assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME rent. Other Requirements Minimum Loan: All HOME investments must total not less than $1,000 multiplied by the number of HOME -assisted units in the project. Maximum Loan: The maximum amount of subsidy per unit shall not exceed the maximum allowed by HUD under the HOME program (24 CFR 92.250), or that provided for under Section IV, Loan Terms, of these Policies and Procedures, whichever is less. The City will avoid unnecessary layering of subsidies from different federal, state and local programs and seek to maximize the benefit to target households from the investment of HOME funds in a project. The Housing Division will use HUD's Cost Allocation Tool to identify the maximum subsidy per unit for each project. Affordable Housing Funds Policies and Procedures Page 30 EXHIBIT 1 Property Standards: Housing that is assisted with HOME funds must meet, at a minimum, the City's Property Standards, including all applicable local, State and Federal codes and regulations. Newly constructed housing must also meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost-effective energy conservation and effectiveness standards in 24 CFR 39. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis -Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. These provisions apply whether HOME funds are used for construction or non -construction costs. Lead-based Paint: Housing assisted with HOME funds constitutes HUD -associated housing for the purpose of the Lead -Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Affordable Housing Funds Policies and Procedures FOR Page 31 EXHIBIT 1 Community Development Block Grant Program Source of Funds Funding for this program is provided through the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program (including program income and residual receipts), and therefore is subject to the federal rules and regulations found in 24 CFR Part 570, as amended from time to time. Eligible Borrowers/Grantees Eligible borrowers are community-based nonprofit housing development corporations (CBDO's) duly organized or with capacity to promote and undertake community development activities on a not-for-profit basis, with proven capacity to develop, own and operate affordable housing, within a neighborhood identified in the Community Development plan (Annual Action Plan). Such organizations are defined in CDBG regulations (24 CFR 570.204(a)(2)(c)(1)). Nonprofit Housing Development Corporations (HDC's) and social service agencies with proven capacity to develop, own, and operate affordable housing, and limited partnerships whose general partner(s) is otherwise eligible under the above provisions, are also eligible to borrow Program funds if the nonprofit partner is the managing general partner throughout the term of the loan and will receive at least 51 % of the developer fee. Nonprofit corporations must have a valid 501(c)(3) or (4) designation from the Internal Revenue Service. Eligible Projects Eligible projects will: (1) have four or more apartment units or fewer than four units in the case of congregate housing, mobile home units or where the Housing Division Manager finds that the project will provide a substantial public benefit; (2) if new construction, have 51% of the units occupied by low income tenants; (3) be free from significant adverse environmental impacts, except those that can be mitigated; and, (4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program. Transitional or permanent supportive housing may be provided. Rents of assisted units shall be affordable to households whose incomes do not exceed 80% of the area median income. Eligible Uses and Activities Funds can be used to make loans to eligible borrowers to provide affordable housing, principally for low and moderate income households, including, but not limited to: (1) acquisition and/or rehabilitation of eligible rental properties; (2) new construction of rental or limited equity cooperative housing by a CBDO is eligible, provided the construction activity is carried out as part of a neighborhood revitalization, community economic development or energy conservation project. New housing construction carried out by an eligible CBDO must be part of a larger effort to revitalize the neighborhood (i.e., a plan for the community's revitalization efforts based on a comprehensive plan, not just for the sake of the CDBG project); Affordable Housing Funds Policies and Procedures Page 32 107A M IM No Ineligible Uses and Activities Funds may not be used for the following activities: 1. the construction of new rental housing or for any program to subsidize or assist such housing, except when carried out by a CBDO, provided the construction activity is carried out as part of a neighborhood revitalization, community economic development or energy conservation project; 2. to provide income payments for rent or utilities, except in emergency situations for a period not longer than three months; or, 3. to assist rental housing properties if less than 51 % of the units will be occupied by low and moderate income households. Compliance with Federal and Local Regulations All projects must comply with all applicable federal requirements contained in 24 CFR Part 570 Subpart K, including, but not limited to, standards of financial management, environmental review, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Borrowers should note: Contract Requirements: All work shall be completed by licensed contractors. All contracts must comply with competitive bidding requirements. Labor Standards: A project with eight or more residential units must comply with the Federal Labor Standards, including the Davis -Bacon Act requirements, as promulgated by HUD, and set forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Lead-based Paint: Housing assisted with CDBG funds constitutes HUD -associated housing for the purpose of the Lead -Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8. Affordable Housing Funds Policies and Procedures 80A-37 Page 33 EXHIBIT 1 Proiect-Based Voucher Program Source of Funds Project -based vouchers are a component of a public housing authority's (PHA) Housing Choice Voucher Program. Funding for project -based vouchers comes from funds already obligated by the U.S. Department of Housing and Urban Development to a PHA under its Annual Contributions Contract. A PHA can attach up to 20 percent of its Annual Contributions Contract to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. The PHA can use up to 20 percent of its housing choice vouchers for project -based vouchers. Eligible Borrowers Eligible borrowers are nonprofit Housing Development Corporations (HDC's) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Eligible projects include acquisition, rehabilitation, or new construction of rental housing projects which: 1. The PHA may attach PBV assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an Agreement. a. Existing housing—A housing unit is considered an existing unit for purposes of the PBV program, if at the time of notice of PHA selection the units substantially comply with HQS. i. Units for which rehabilitation or new construction began after owner's proposal submission but prior to execution of the Agreement to Enter into a Housing Assistance Payments Contract do not subsequently qualify as existing housing. ii. Units that were newly constructed or rehabilitated in violation of program requirements also do not qualify as existing housing. Eligible Uses and Activities Program funds can be used to enter into an Agreement with eligible borrowers who will provide affordable housing, principally for low and moderate income households. Eligible uses of Project -Based Voucher funds include, but are not limited to, the following: (1) acquisition and/or rehabilitation of eligible rental properties; (2) acquisition and conversion of nonresidential property to multifamily rental housing units; and (3) new construction of rental housing units. Affordability Requirements All units assisted under this program shall be affordable to households with incomes that do not exceed 30% of median income. Affordable Housing Funds Policies and Procedures Page 34 EXHIBIT 1 Compliance with Federal and Local Regulations All projects must comply with all applicable federal requirements contained in 24 CFR 982, including, but not limited to, environmental review, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Borrowers should note: Contract Requirements: All work shall be completed by licensed contractors. All contracts must comply with competitive bidding requirements. Labor Standards: A project with nine or more residential units must comply with the Federal Labor Standards, including the Davis -Bacon Act requirements, as promulgated by HUD, and set forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Lead-based Paint: Housing assisted with PBV funds constitutes HUD -associated housing for the purpose of the Lead -Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8. Affordable Housing Funds Policies and Procedures Page 35