Agenda packet — Santa Ana City Council, May 16, 2023 (part 1 of 15)

City Council and Special Housing Authority
Meeting Packet
May 16, 2023
SPECIAL CLOSED SESSION MEETING – 4:30 PM
REGULAR OPEN MEETING – 5:45 PM
(Immediately following the Closed Session Meeting)
CITY COUNCIL CHAMBER
22 Civic Center Plaza Santa Ana, CA 92701
Valerie Amezcua
Mayor
Thai Viet Phan
Councilmember – Ward 1
Benjamin Vazquez
Councilmember Ward 2
Jessie Lopez
Mayor Pro Tem Ward 3
Phil Bacerra
Councilmember Ward 4
Johnathan Ryan Hernandez
Councilmember Ward 5
David Penaloza
Councilmember Ward 6
Mayor and Council telephone: 7146476900
Agenda item inquiries: 7146476520
Sonia R. Carvalho
City Attorney
Kristine Ridge
City Manager
Jennifer L. Hall
City Clerk
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

CITY VISION AND CODE OF ETHICS
The City of Santa Ana is committed to achieving a shared vision for the organization and its community. The Vision, Mission and Guiding Principles (Values) are the result of a thoughtful and inclusive process designed to set the City and organization on a course that meets the challenges of today and tomorrow, as follows:

Vision The dynamic center of Orange County which is acclaimed for our: Investment in City Council 1 5/16/2023
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

Vision The dynamic center of Orange County which is acclaimed for our: Investment in youth • Safe and healthy community • Neighborhood pride • Thriving economic climate • Enriched and diverse culture • Quality government services Mission To deliver efficient public services in partnership with our community which ensures public safety, a prosperous economic environment, opportunities for our youth, and a high quality of life for residents.

Guiding Principles Collaboration • Efficiency • Equity • Excellence • Fiscal Responsibility • Innovation • Transparency
Code of Ethics and Conduct At the Special Municipal Election held on February 5, 2008, voters approved an amendment to the City Charter which established the Code of Ethics and Conduct for elected officials and members of appointed boards, commissions, and committees to assure public confidence. The following are the core values expressed: • Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency Members of the public may attend the City Council meeting inperson or join via Zoom. The City Council meeting will occur live via teleconference Zoom webinar. You may view the meeting from your computer, tablet or smart phone via YouTube LiveStream at www.youtube.com/user/SantaAnaLibrary or on CTV3, available on Spectrum channel 3.

PUBLIC COMMENTS – Members of the public who wish to address the City Council on closed session items, items on the regular agenda or on matters which are not on the agenda, but are within the subject matter jurisdiction of the City Council may do so by one of the following ways:

MAILING OPTION written communications – Public comments may be mailed to:

Office of the City Clerk, 20 Civic Center Plaza M30, Santa Ana, CA 92701. All written communications received via mail by 4:00 p.m. on the day of the meeting will be distributed to the City Council and imaged into the City’s document archive system which is available for public review.

SENDING EMAIL OPTION – Public comments may be sent via email to the City Clerk’s office at eComment@santaana.org. Please note the agenda item you are commenting on in the subject line of the email. All emails received two (2) hours before the scheduled start of the meeting will be distributed to the City Council and imaged into the City’s document archive system which is available for public review.

LIVE VIRTUAL OPTION – Members of the public may provide live comments during the meeting by Zoom or Conference Call. To join by Zoom click on or type the following address into your web browser https://us02web.zoom.us/j/315965149. To join the Conference Call: Dial (669) 9009128 and enter MEETING ID: 315 965 149#. You will be prompted by the City Clerk when it is time for a: i) closed session item, ii) general agenda item, iii) public hearing item, iv) special agenda item, or v) for Housing Authority item. You may request to speak by dialing *9 from your phone or you may virtually raise your hand from Zoom. After the Clerk confirms the last three digits of the caller’sphonenumberorZoomIDandunmutesthemthecallermustpress*6or City Council 2 5/16/2023
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voters approved an amendment to the City Charter which established the Code of Ethics and Conduct for elected officials and members of appointed boards, commissions, and committees to assure public confidence. The following are the core values expressed: • Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency Members of the public may attend the City Council meeting inperson or join via Zoom. The City Council meeting will occur live via teleconference Zoom webinar. You may view the meeting from your computer, tablet or smart phone via YouTube LiveStream at www.youtube.com/user/SantaAnaLibrary or on CTV3, available on Spectrum channel 3.

MAILING OPTION written communications – Public comments may be mailed to:

LIVE VIRTUAL OPTION – Members of the public may provide live comments during the meeting by Zoom or Conference Call. To join by Zoom click on or type the following address into your web browser https://us02web.zoom.us/j/315965149. To join the Conference Call: Dial (669) 9009128 and enter MEETING ID: 315 965 149#. You will be prompted by the City Clerk when it is time for a: i) closed session item, ii) general agenda item, iii) public hearing item, iv) special agenda item, or v) for Housing Authority item. You may request to speak by dialing *9 from your phone or you may virtually raise your hand from Zoom. After the Clerk confirms the last three digits of the caller’s phone number or Zoom ID and unmutes them, the caller must press *6 or microphone icon to speak. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak, unless due to the number of speakers wanting to speak a decision is made to provide a different amount of time to speak.

INPERSON OPTION Members of the public can provide inperson comments at the podium in the Council Chamber. The Council Chamber will have seating available for members of the public to attend the meeting inperson. Public comments are limited to three (3) minutes per speaker, unless a different time is announced by the presiding chair. Speakers who wish to address the Council must do so by submitting a “Request to Speak” card by 4:30 p.m. for Closed Session items and by 6:00 p.m. for all other designated public comment periods as listed below. Cards will not be accepted after the Public Comment Session begins without the permission of the presiding chair.

The following designated public comment periods are:

1. LIVE PUBLIC COMMENTS ON CLOSED SESSION ITEMS – You can provide live comments on closed session items by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 4:00 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL BY 4:30 p.m.

Speakers who are not in the speaker queue by 4:00 p.m. will not be permitted to speak. 2LIVEPUBLICCOMMENTSONREGULARAGENDAITEMSANDNONAGENDA
City Council 3 5/16/2023
The following designated public comment periods are:

Speakers who are not in the speaker queue by 4:00 p.m. will not be permitted to speak.

2. LIVE PUBLIC COMMENTS ON REGULAR AGENDA ITEMS AND NONAGENDA ITEMS (GENERAL PUBLIC COMMENT) – You can provide comments by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL PRIOR TO 6:00 p.m. Speakers who are not in the speaker queue by 6:00 p.m. will not be permitted to speak.

3. LIVE PUBLIC COMMENTS ON HOUSING AUTHORITY ITEMS – You can provide comments by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speakers not in the queue by 6:00 p.m. will not be permitted to speak.

TRANSLATION SERVICES Spanish interpreting services are provided at City Council meetings. Simultaneous Spanish interpretation is provided through the use of headsets and consecutive interpretation (SpanishtoEnglish) in addition to those wishing to address the City Council at the podium.

La ciudad provee servicios de interpretación al español en las juntas del Concilio.

La interpretación simultánea al español se ofrece por medio del uso de audífonos y la interpretación consecutiva (español a inglés) también está disponible para cualquiera que desee dirigirse al concilio municipal en el podio.

About the Agenda
To download or view the attachments (staff report and other supporting documentation) for each agenda item, you must select the agenda item to see the attachments to either open in a new link (the eyeball ) or download a pdf (the cloud symbol with the down arrow ).

SPECIAL CLOSED SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Mayor Pro Tem Jessie Lopez
Mayor Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
City Council 4 5/16/2023
To download or view the attachments (staff report and other supporting documentation) for each agenda item, you must select the agenda item to see the attachments to either open in a new link (the eyeball ) or download a pdf (the cloud symbol with the down arrow ).

SPECIAL CLOSED SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Mayor Pro Tem Jessie Lopez
Mayor Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
ADDITIONS\DELETIONS TO CLOSED SESSION
PUBLIC COMMENTS – Members of the public may address the City Council on Closed Session items.

RECESS – City Council will recess to Closed Session for the purpose of conducting regular City business.

CLOSED SESSION ITEMS – The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation:

1. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code:

A. City of Santa Ana v. United California Bank Realty Corporation, Orange County Superior Court Case No. 30202101184614

2. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a):

Agency Negotiators: Jason Motsick, Human Resources Executive Director Employee Organizations:

Santa Ana Police Officers Association (POA)
Service Employees’ International Union (SEIU)
Confidential Association of Santa Ana (CASA)
Santa Ana Management Association (SAMA)
RECONVENE – City Council will reconvene to continue regular City business.

City Council 5 5/16/2023
Service Employees’ International Union (SEIU)
Confidential Association of Santa Ana (CASA)
Santa Ana Management Association (SAMA)
RECONVENE – City Council will reconvene to continue regular City business.

CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

ADJOURNMENT – Adjourn the Special Closed Session meeting.

CITY COUNCIL REGULAR OPEN SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Mayor Pro Tem Jessie Lopez
Mayor Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
PLEDGE OF ALLEGIANCE Mayor Amezcua
WORDS OF INSPIRATION Pastor Danny De Leon Jr., Templo Calvario ADDITIONS\DELETIONS TO THE AGENDA
CEREMONIAL PRESENTATIONS

1. Proclamation presented by Mayor Pro Tem Lopez and Councilmember Phan to Santa Ana’s Public Works Agency declaring May 2127, 2023, as National Public Works Week.

2. City Tile presented by Councilmember Bacerra to Mark McLoughlin for Outstanding Contributions to the Community.

3. Proclamation presented by Councilmember Penaloza declaring May 1420, 2023, as National Police Week.

4. Proclamation presented by Councilmember Vazquez to Santa Ana Active Streets declaring May 2023, as National Bike Month.

STAFF PRESENTATIONS

5. Homelessness Update
PUBLICCOMMENT–Publiccommentswillbeheldduringthebeginningofthemeetingfor City Council 6 5/16/2023
CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

ADJOURNMENT – Adjourn the Special Closed Session meeting.

1. Proclamation presented by Mayor Pro Tem Lopez and Councilmember Phan to Santa Ana’s Public Works Agency declaring May 2127, 2023, as National Public Works Week.

2. City Tile presented by Councilmember Bacerra to Mark McLoughlin for Outstanding Contributions to the Community.

3. Proclamation presented by Councilmember Penaloza declaring May 1420, 2023, as National Police Week.

4. Proclamation presented by Councilmember Vazquez to Santa Ana Active Streets declaring May 2023, as National Bike Month.

STAFF PRESENTATIONS

5. Homelessness Update
PUBLIC COMMENT – Public comments will be held during the beginning of the meeting for ALL comments on agenda and nonagenda items, with the exception of public hearings.

Comments for public hearings will take place after the hearing is opened.

CONSENT CALENDAR
RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 6 through 28.
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City Council 7 5/16/2023
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ALL comments on agenda and nonagenda items, with the exception of public hearings.

Comments for public hearings will take place after the hearing is opened.

CONSENT CALENDAR
RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 6 through 28.

6. Excused Absences
Department(s): City Clerk’s Office
Recommended Action: Excuse the absent members.

7. Appoint Keith Carpenter Nominated by Councilmember Phan as the Ward 1 Representative to the Police Oversight Comission for a FullTerm Expiring on December 10, 2024
Department(s): City Clerk’s Office
Recommended Action: Appoint Keith Carpenter to the Police Oversight Commission as the Ward 1 representative and administer the Oath of Office.

8. Minutes from the Special Closed Session and Regular Meetings of October 4, 2022 and October 18, 2022.

Department(s): City Clerk’s Office
Recommended Action: Approve minutes.

9. Receive and File the Rental Registry Fee Study
Department(s): Community Development Agency
Recommended Action: Receive and file the Rental Registry Fee Study identifying the appropriate Rental Registry Fee to recover all costs associated with the Rent Stabilization and Just Cause Eviction Ordinance.

10. Periodic Quarterly Report of Investments as of March 31, 2023 Department(s): Finance and Management Services
Recommended Action: Receive and file.

11. Fiscal Year 20222023: Third Quarter Budget Update and Appropriation Requests Department(s): Finance and Management Services
Recommended Action: 1. Receive and file the fiscal year 20222023: Third Quarter Budget Update.

2. Approve the recommended appropriation adjustments with a net General Fund impact of $1,784,000 ($1,500,000 for Business Interruption Grant, $3,900,000 for Main Library Transformation and Newhope Library Tenant Improvement, and reduction of $3,616,000 transfer from General Fund to the Cannabis Public Benefit Fund) (requires five affirmative votes).

12. Receive and File the Certification of Approval by City Engineer of the Final Tract Map 20221, County Tract Map No. 19142 (830 South Harbor Blvd.) (Applicant: City Ventures and MAS Investments LP)
Department(s): Public Works Agency
Recommended Action: Receive and file the certification of approval by City Engineer of the Final Tract Map 20221.

13. Award a Purchase Order to Galls, LLC for Body Armor Protective Vests for the Santa Ana Police Department in the Amount of $135,474 (Specification No. 23086) (NonGeneral Fund) Department(s): Police Department
Recommended Action: Authorize a onetime award and payment to Galls, LLC for the procurement of 35 body armor protective vests in the amount of $135,474, subject to nonsubstantive changes approved by the City Manager and City Attorney.

14. Award a Blanket Order Contract to BorderLAN, Inc. for Computer Endpoint Protection Software, in an amount not to exceed $200,000 (Specification No. 22060) (NonGeneral Fund) Department(s): Information Technology
Recommended Action: Award Blanket Order Contract to BorderLAN, Inc. for Endpoint Protection Software Subscription Services for a threeyear period expiring May 31, 2026, in an amount not to exceed $200,000, subject to nonsubstantive changes approved by the City Manager and City Attorney.

15. Approve and Amend an Agreement with Infor (US) LLC For Lawson Financial System Maintenance, Services, and Software Licenses in an Amount not to Exceed $1,216,709.87 (NonGeneral Fund)
Department(s): Information Technology
Recommended Action: Authorize the City Manager to amend an agreement with Infor (US) LLC for Lawson financial system maintenance, services, and software licenses in an amount not to exceed $1,216,709.87 over a twoyear period beginning June 1, 2023 through June 30, 2025, with a oneyear optional renewal, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

16. Approve a First Amendment to Agreements with Keyser Marston Associates, Inc., David Paul Rosen & Associates, and RSG, Inc. for OnCall Affordable Housing Financial, Analytical, and Advisory Services on an As–Needed Basis in a Shared Amount not to exceed $500,000 (related to Housing Authority Agenda Item No. 2) Department(s): Community Development Agency
Recommended Action: Authorize the City Manager to execute a First Amendment to three joint oncall consultant agreements for affordable housing financial, analytical, and advisory services with Keyser Marston Associates, Inc., David Paul Rosen & City Council 9 5/16/2023

17. Amend Agreement with Mekong Printing dba MK Printing, Inc. to Increase the Agreement by $60,000 for a New Total Agreement Amount not to Exceed $675,000 and to Extend the Term to June 30, 2024 (General Fund)
Department(s): Finance and Management Services
Recommended Action: Authorize the City Manager to execute a second amendment to the agreement with Mekong Printing dba MK Printing Inc. to provide citywide offset printing services, increasing the agreement amount by $60,000 ($30,000 annually for the remaining term) for a new total agreement amount of $675,000 and extending the term from June 3, 2024 to June 30, 2024, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

18. Approve an Amendment to the FY 202223 Capital Improvement Program for $483,584 and Award a Construction Contract to California Professional Engineering, Inc. in the Amount of $358,210 for the Riverview Neighborhood Street Lighting Project, with an Estimated Project Delivery Cost of $483,584 (Project No. 236030) (General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Approve an amendment to the FY 202223 Capital Improvement Program to include $483,584 in construction funds for the Riverview Neighborhood Street Lighting Project (Project No. 236030).

2. Award a construction contract to California Professional Engineering, Inc, the lowest responsible bidder in accordance with the base bid in the amount of $358,210, for the construction of the Riverview Neighborhood Street Lighting Project for a term beginning May 16, 2023 and ending upon project completion, and authorize the City Manager to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney.

3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $483,584, which includes $258,210 for the construction contract, $53,732 for contract administration, inspection and testing, and a $71,642 contingency for unanticipated or unforeseen work.

4. Determine these actions are exempt from further review pursuant to the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER2023181475 was filed for the project.

19. Approve an Appropriation Adjustment and Award a Construction Contract to Onyx Paving Company, Inc. in the Amount of $2,954,000 for the Local Street Preventative MaintenanceFY2223ProjectwithanEstimatedProjectDeliveryCostof$3840200 City Council 10 5/16/2023
administration, inspection and testing, and a $71,642 contingency for unanticipated or unforeseen work.

19. Approve an Appropriation Adjustment and Award a Construction Contract to Onyx Paving Company, Inc. in the Amount of $2,954,000 for the Local Street Preventative Maintenance FY 2223 Project with an Estimated Project Delivery Cost of $3,840,200 (Project No. 236907) (NonGeneral & General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Approve an appropriation adjustment recognizing prioryear fund balance of $248,391 in the Public WorksStorm Drain Construction Area III, Prior Year Carry Forward revenue account, and appropriating the same amount into the Public WorksStorm Drain Construction, Improvements Other Than Buildings expenditure account (requires five affirmative votes).

2. Authorize the reallocation of unspent Drainage Area Fee funds from various projects: $38,609 from D03 Channel Repair at Alton Avenue, $248,391 from Local Drainage Area III, $171,343 from Local Street Preventative Maintenance FY 1920, $98,516 from Local Street Preventative Maintenance FY 2021, and $505,341 from Local Street Preventative Maintenance FY 2122 for a total of $1,062,200 to the Local Street Preventative Maintenance FY 2223 Project, completing the project’s funding requirement.

3. Award a construction contract to Onyx Paving Company, Inc., the lowest responsible bidder, in accordance with the base bid and add alternate in the amount of $2,954,000 for construction of the Local Street Preventative Maintenance FY 2223 Project, for a term beginning May 16, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney.

4. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,840,200, which includes $2,954,000 for the construction contract; $443,100 for contract administration, inspection, and testing; and a $443,100 project contingency for unanticipated or unforeseen work.

5. Determine these actions are exempt from further review pursuant to the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER202303 was filed for project 236907.

20. Approve Agreements with KimleyHorn, Tetra Tech, HuittZollars, Inc., RICK Engineering Company, Mark Thomas & Company, Inc., Psomas, Ardurra Group, Inc., CWE, Willdan Engineering, X Engineering & Consulting, Inc., Kleinfelder, Inc., IDS Group, Inc., TAIT & Associates, Inc., Alta Planning + Design, Inc., and KPFF Consulting Engineers for OnCall Engineering Services in an Aggregate Amount Not to Exceed $5,000,000, for up to a FiveYear Term (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with KimleyHorn, Tetra Tech, HuittZollars, Inc., RICK Engineering Company, Mark Thomas & Company, Inc., Psomas, Ardurra Group, Inc., CWE, Willdan Engineering, X Engineering & Consulting, Inc., Kleinfelder, Inc., IDS Group, Inc., TAIT & Associates, Inc., Alta Planning + Design, Inc., and KPFF Consulting Engineers to provide oncall engineering services for a shared aggregate amount not to exceed $5,000,000, for a threeyeartermbeginningMay162023andexpiringonMay162026withthe City Council 11 5/16/2023
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Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with KimleyHorn, Tetra Tech, HuittZollars, Inc., RICK Engineering Company, Mark Thomas & Company, Inc., Psomas, Ardurra Group, Inc., CWE, Willdan Engineering, X Engineering & Consulting, Inc., Kleinfelder, Inc., IDS Group, Inc., TAIT & Associates, Inc., Alta Planning + Design, Inc., and KPFF Consulting Engineers to provide oncall engineering services for a shared aggregate amount not to exceed $5,000,000, for a threeyear term beginning May 16, 2023 and expiring on May 16, 2026, with the provision for one, twoyear extension, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

21. Approve Agreements with David Evans and Associates, Inc., David Volz Design, KimleyHorn and Associates, Inc., MIG, Inc., NUVIS, PlaceWorks, RJM Design Group, Inc., RRM Design Group, Studio One Eleven, and Verde Design, Inc. for OnCall Landscape Architectural Services in an Aggregate Amount Not to Exceed $5,000,000 for up to a FiveYear Term (General Fund and NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with David Evans and Associates, Inc., David Volz Design, KimleyHorn and Associates, Inc., MIG, Inc., NUVIS, PlaceWorks, RJM Design Group, Inc., RRM Design Group, Studio One Eleven, and Verde Design, Inc. to provide oncall landscape architectural services, for a shared aggregate amount not to exceed $5,000,000, for a threeyear term beginning May 16, 2023 and expiring May 15, 2026, with provisions for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

22. Approve License Agreement with Greyhound Lines, Inc.

Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a site license agreement with Greyhound Lines, Inc. for the rental of one bus bay, for a oneyear period beginning June 1, 2023 and expiring May 31, 2024, with four, oneyear optional renewals, at a monthly rate of $4,500, for a total amount of $54,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

23. Approve an Amendment to the Agreement with EcoNomics, Inc. to Modify the Scope of Work for Solid Waste Consultant Services, Increase the Agreement Capacity in an Amount Not to Exceed $634,345, and Exercise the OneYear Extension (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute the fourth amendment to the agreement with EcoNomics Inc. to expand the solid waste consulting services scope of work, increase the total compensation by $574,345, with a contingency of $60,000, for a total additional amount not to exceed $634,345, and exercise the oneyear extension expiring June 30, 2024, with option to extend the term for one additional year, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

24. Approve an Amendment to the Agreement with HF&H Consultants, LLC to Expand the Solid Waste Consultant Services Scope of Work, Increase the Agreement Amount by$234000andExercisetheOneYearTermExtension(NonGeneralFund) City Council 12 5/16/2023
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consulting services scope of work, increase the total compensation by $574,345, with a contingency of $60,000, for a total additional amount not to exceed $634,345, and exercise the oneyear extension expiring June 30, 2024, with option to extend the term for one additional year, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

24. Approve an Amendment to the Agreement with HF&H Consultants, LLC to Expand the Solid Waste Consultant Services Scope of Work, Increase the Agreement Amount by $234,000, and Exercise the OneYear Term Extension (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute the fourth amendment to the agreement with HF&H Consultants, LLC to expand the solid waste consulting services scope of work, increase the total compensation by $195,000, plus a contingency of $39,000, for a total additional amount not to exceed $234,000, and exercise the oneyear term extension expiring June 30, 2024, with an option to extend the term for one additional year, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

25. Approve an Appropriation Adjustment and Approve an Agreement with Butier Engineering, Inc. for a Total Amount Not to Exceed $500,000 for Construction Engineering Services for San Lorenzo Sewage Lift Station (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: 1. Approve an appropriation adjustment recognizing prioryear fund balance of $500,000 in the Sewer Connection Fee Fund, Sewer Connection Projects, Prior Year Carry Forward revenue account, and appropriating the same amount into the Sewer Connection Projects, Improvements Other Than Building expenditure account. (requires five affirmative votes)

2. Authorize the City Manager to execute an agreement with Butier Engineering, Inc. for construction engineering services, for a total agreement amount of $500,000 subject to nonsubstantive changes approved by the City Manager and the City Attorney (Agreement No. 2023XXX).

3. Approve an amendment to the Fiscal Year 202223 Capital Improvement Program for $500,000 in construction funds for the San Lorenzo Sewer Lift Station Project (063510).

26. Approve Appropriation Adjustment Accepting Drinking Water State Revolving Fund Loan Funds for the Automated Metering Infrastructure Project in the Amount of $10,117,365 (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Approve an appropriation adjustment accepting California State Water Resources Control Board’s Drinking Water State Revolving Fund loan funds in the amount of $10,117,365 into the Acquisition & Construction, Water Utility Water Division Capital Expense, Financing Proceeds/Reserve Appropriation revenue accounts and appropriate the same amount to the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project/Reserve Appropriation expenditure accounts for current and future year expenditures. (requires five affirmative votes)

27. Adopt a Resolution Approving the Water Supply Assessment for the Cabrillo Town Center Project Located at 1901 East Fourth Street
Department(s): Public Works Agency
City Council 13 5/16/2023
Water Division Capital Expense, Financing Proceeds/Reserve Appropriation revenue accounts and appropriate the same amount to the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project/Reserve Appropriation expenditure accounts for current and future year expenditures. (requires five affirmative votes)

27. Adopt a Resolution Approving the Water Supply Assessment for the Cabrillo Town Center Project Located at 1901 East Fourth Street
Department(s): Public Works Agency
Recommended Action: Adopt a resolution approving the Water Supply Assessment for the Cabrillo Town Center project located at 1901 East Fourth Street.

RESOLUTION NO. 2023XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE WATER SUPPLY ASSESSMENT FOR THE PROPOSED CABRILLO TOWN CENTER PROJECT

28. Resolutions of the City of Santa Ana City Council Exempting all Eligible Properties in the City of Santa Ana from the Requirements of Assembly Bill 2011 and Senate Bill 6 Pursuant to California Government Code Sections 65912.114, 65912.124, and 65852.24
Department(s): Planning and Building Agency
Recommended Action: 1) Adopt a resolution exempting all eligible properties in the City of Santa Ana from the requirements of Assembly Bill 2011 and Senate Bill 6 pursuant to California Government Code sections 65912.114 and 65912.124.

RESOLUTION NO. 2023XXX A RESOLUTION OF THE CITY OF SANTA ANA EXERCISING ITS RETENTION OF LOCAL LAND USE CONTROL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 65912.114(i) and 65912.124(i) AND EXEMPTING CERTAIN PARCELS FROM CALIFORNIA GOVERNMENT CODE SECTIONS 65912.114 AND 65912.124 BASED UPON WRITTEN FINDINGS (includes determination that this Resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15061(b)(3) and 15061(b)(5) of the CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment).
2) Adopt a resolution exempting all eligible properties in the City of Santa Ana from the requirements of Assembly Bill 2011 and Senate Bill 6 pursuant to California Government Code Section 65852.24.

RESOLUTION NO. 2023XXX A RESOLUTION OF THE CITY OF SANTA ANA EXERCISING ITS RETENTION OF LOCAL LAND USE CONTROL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65852.24(e) AND EXEMPTING CERTAIN PARCELS FROM CALIFORNIA GOVERNMENT CODE SECTION 65852.24 BASED UPON WRITTEN FINDINGS (includes determination that this Resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15061(b)(3) and 15061(b)(5) of the CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment).
**END OF CONSENT CALENDAR**

BUSINESSCALENDAR
City Council 14 5/16/2023
result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment).
**END OF CONSENT CALENDAR**
BUSINESS CALENDAR

29. Approve Agreement with All City Management Services, Inc. for the School Crossing Guard Program in an Amount not to Exceed $7,706,655 for up to a FiveYear Term (General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an agreement with All City Management Services, Inc. to provide a School Crossing Guard Program, in the total amount not to exceed $7,706,655 for a threeyear term beginning July 1, 2023 and expiring June 30, 2026, with an option for up to two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

30. Ordinance Amendment No. 202301 Amending Article II.II of Chapter 2 (Sunshine Ordinance) of the Santa Ana Municipal Code Related to Noticing, Meeting Format, and Transparency Measures for Community Meetings for Certain Development Projects
Department(s): Planning and Building Agency
Recommended Action: Conduct a first reading and adopt Ordinance Amendment No. 202301 amending Section 2153 in Article II.II of Chapter 2 of the Santa Ana Municipal Code.

ORDINANCE NO. NSXXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, AMENDING ARTICLES II.II OF CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE (includes determination that this ordinance is exempt from review under the California Environmental Quality Act (CEQA) pursuant to section 15061(b)(3) and 15061(b)(5) of the CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment).

31. Ordinance Amending City Manager’s Contracting Authority for Public Works and NonPublic Works Contracts Under Chapter 2, Article VII and Article VII.II and Public Works Construction Rules and Regulations Under Chapter 33, Article VIII of the Santa Ana Municipal Code
Department(s): Public Works Agency
Recommended Action: Approve the first reading of an ordinance amending Articles VII and VII.II of Chapter 2 regarding the City Manager’s contracting authority and City purchasing rules and regulations, and Article VIII of Chapter 33 regarding Public Works construction rules and regulations of the Santa Ana Municipal Code as follows:
i) Amend Section 2748 of Chapter 2, Article VII concerning the City Manager’s Contracting Authority: (1) Public Works contracts to increase from $250,000 to $750,000; (2) emergency public works construction contracts to increase from $100,000 to $750,000; and (3) NonPublic Works and Public Works contract change City Council 15 5/16/2023
Department(s): Public Works Agency
Recommended Action: Approve the first reading of an ordinance amending Articles VII and VII.II of Chapter 2 regarding the City Manager’s contracting authority and City purchasing rules and regulations, and Article VIII of Chapter 33 regarding Public Works construction rules and regulations of the Santa Ana Municipal Code as follows:
i) Amend Section 2748 of Chapter 2, Article VII concerning the City Manager’s Contracting Authority: (1) Public Works contracts to increase from $250,000 to $750,000; (2) emergency public works construction contracts to increase from $100,000 to $750,000; and (3) NonPublic Works and Public Works contract change orders authority increase from 10 percent or $25,000, whichever is greater, to 20 percent.
ii) Amend Section 2803 to 2807 of Chapter 2, Articles VII.II concerning Purchasing Rules and Regulations: (1) Clarifying language administrative in nature; (2) Extending local vendor preference to increase from procurement between $5,000 and $100,000 to procurement between $15,000 and $100,000; (3) For administrative contracts to increase from $5,000 to $15,000; (4) For informal contracts to increase from $5,000 and $25,000 to $15,000 and $50,000; (5) For formal contracts to increase from $25,000 to $50,000; (6) For nobid purchases to increase from $25,000 to $50,000; and (7) Add language to coincide with current practices for awarding service contracts.
iii) Amend Section 33203 of Chapter 33, Article VIII concerning the Public Works Construction Rules and Regulations: (1) Housekeeping language administrative in nature.

ORDINANCE NO. NSXXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLES VII AND VII.II OF CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE REGARDING CITY MANAGER’S CONTRACTING AUTHORITY AND CITY PURCHASING RULES AND REGULATIONS, AND ARTICLE VII OF CHAPTER 33 OF THE SANTA ANA MUNICIPAL CODE REGARDING PUBLIC WORKS CONSTRUCTION RULES AND REGULATIONS (includes determination that this ordinance is not subject to the California Environmental Quality Act (CEQA) as it is exempt from CEQA review pursuant to sections 15061(b)(3) and 15061(b)(5) of the CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment).

32. Ordinance Amending Article XI of Chapter 33 of the Santa Ana Municipal Code (Streets Sidewalks and Public Works) Related to Ceremonial Street Naming (continued from City Council meeting of March 7, 2023, Item No. 17) Department(s): Public Works Agency
Recommended Action: Approve first reading of an ordinance amending Article XI of Chapter 33 of the Municipal Code relating to ceremonial street naming.

ORDINANCE NO. NSXXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE XI OF CHAPTER 33 OF THE SANTA ANA MUNICIPAL CODE (STREETS, SIDEWALKS AND PUBLIC WORKS) RELATING TO CEREMONIAL STREET NAMING (includes determination that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change to the environment, as there is no possibility it will have a significant effect on the environment and it is not a “project,” as defined in Section 15378 of the CEQA Guidelines).

City Council 16 5/16/2023

UCCO(SS,SSUCOS)
RELATING TO CEREMONIAL STREET NAMING (includes determination that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change to the environment, as there is no possibility it will have a significant effect on the environment and it is not a “project,” as defined in Section 15378 of the CEQA Guidelines).
**END OF BUSINESS CALENDAR**
COUNCILMEMBER REQUESTED ITEMS

33. Discuss and Consider Directing the City Manager to Develop and Implement an Employee Anniversary Pin and Recognition Policy – Mayor Amezcua and Councilmember Phan
CITY MANAGER COMMENTS
COUNCIL COMMENTS
AB1234 DISCLOSURE – If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended.

ADJOURNMENT – Adjourn the City Council meeting and convene to the Special Housing Authority meeting.

Future Items

1. Water Quality PFAS Work Study Session
HOUSING AUTHORITY
CALL TO ORDER
ATTENDANCE Authority Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Vice Chair Jessie Lopez
Chair Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
Recording Secretary Jennifer L. Hall
ROLL CALL
ADDITIONS\DELETIONS TO THE HOUSING AUTHORITY AGENDA
PUBLIC COMMENTS – Members of the public may address the Housing Authority on items on the Special Housing Authority agenda.

City Council 17 5/16/2023
Authority meeting.

Future Items

CONSENT CALENDAR
RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 and 2.

1. Excused Absences
Department(s): City Clerk’s Office
Recommended Action: Excuse the absent members.

2. Approve a First Amendment to Agreements with Keyser Marston Associates, Inc., David Paul Rosen & Associates, and RSG, Inc. for OnCall Affordable Housing Financial, Analytical, and Advisory Services on an As–Needed Basis in a Shared Amount not to exceed $500,000 (related to City Council Agenda Item No. 16) Department(s): Community Development Agency
Recommended Action: Authorize the Executive Director to execute a First Amendment to three joint oncall consultant agreements for affordable housing financial, analytical, and advisory services with Keyser Marston Associates, Inc., David Paul Rosen & Associates, and RSG, Inc., to add an additional $250,000 and to extend the term for two years until November 1, 2026, for a total shared amount not to exceed $500,000, subject to nonsubstantive changes approved by the Executive Director and Authority General Counsel.

City Council 18 5/16/2023
Recommended Action: Authorize the Executive Director to execute a First Amendment to three joint oncall consultant agreements for affordable housing financial, analytical, and advisory services with Keyser Marston Associates, Inc., David Paul Rosen & Associates, and RSG, Inc., to add an additional $250,000 and to extend the term for two years until November 1, 2026, for a total shared amount not to exceed $500,000, subject to nonsubstantive changes approved by the Executive Director and Authority General Counsel.
**END OF CONSENT CALENDAR**
HOUSING AUTHORITY MEMBER COMMENTS
ADJOURNMENT – Adjourn the Housing Authority meeting.

City Council 19 5/16/2023
City Council {{item.number}} –
{{item.pagenumber}} 5/16/2023
CITY COUNCIL MINUTES 1 October 04, 2022
DRAFT Minutes of the Regular and Special
Closed Session Meeting of the City Council
City of Santa Ana, California
October 04, 2022
SPECIAL CLOSED SESSION MEETING – 4:00 pm
REGULAR OPEN MEETING – 5:45 pm
(Immediately following the Closed Session Meeting)

CITY COUNCIL CHAMBER
22 Civic Center Plaza, Santa Ana, CA 92701

SPECIAL CLOSED SESSION

CALL TO ORDER
ATTENDANCE Council Members Johnathan Ryan Hernandez
Jessie Lopez
Nelida Mendoza
David Penaloza
Thai Viet Phan
Mayor Pro Tem Phil Bacerra
Mayor Vicente Sarmiento
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
Acting Clerk of the Norma Orozco
Council
MINUTES: Mayor Sarmiento called the Special Closed Session Meeting to order at 4:10 P.M.

City Council 8 – 1 5/16/2023
CITY COUNCIL MINUTES 2 October 04, 2022

ROLL CALL
MINUTES: Acting Clerk of the Council Norma Orozco conducted roll call.

Councilmembers Lopez, Mendoza, Phan, and Mayor Sarmiento were present in person.

Mayor Pro Tem Bacerra and Councilmembers Hernandez and Penaloza attended via teleconference.

PUBLIC COMMENTS – Members of the public may address the City Council on Closed Session items.

MINUTES: No public comments were received regarding Closed Session items.

1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code:

A. Heather Heider v. City of Santa Ana, Orange County Superior Court, Case No. 30- 2019-01055281
B. Aaron Giron v. City of Santa Ana, Orange County Superior Court, Case No. 30- 2021-01197646

2. CONFERENCEWITH LEGAL COUNSEL – POTENTIAL INITIATION OF LITIGATION pursuant to paragraph (4) of subdivision (d) of Section 54956.9 of the Government Code: (one case – Taco Bravo)

3. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a):

Agency Negotiators: Human Resources Executive Director, Jason Motsick Employee Organizations:

Santa Ana Police Officers Association (POA)
Santa Ana Police Management Association (PMA)
Service Employees’ International Union (SEIU) Full-Time Employees Service Employees’ International Union (SEIU) Part-Time Non-Civil Service Employees
Confidential Association of Santa Ana (CASA)
Santa Ana Management Association (SAMA)
City Council 8 – 2 5/16/2023
CITY COUNCIL MINUTES 3 October 04, 2022

4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957
Title: City Attorney and City Manager

5. PUBLIC EMPLOYEE EMPLOYMENT/APPOINTMENT pursuant to Government Code 54957
Title: Clerk of the Council, Acting Clerk of the Council, or Interim Clerk of the Council CLOSED SESSION REPORT – The City Attorney will report on any action(s) to be taken at the Regular Open Session which will begin immediately following the Closed Session.

RECESS – City Council will recess to Closed Session for the purpose of conducting regular City business.

MINUTES: Mayor Sarmiento recessed to consider the Closed Session items at 4:12 P.M.

RECONVENE – City Council will reconvene to continue regular City business.

CITY COUNCIL REGULAR OPEN SESSION

CALL TO ORDER
MINUTES: Mayor Sarmiento reconvened the City Council at 6:50 P.M.

ROLL CALL
MINUTES: Acting Clerk of the Council Norma Orozco conducted roll call. Councilmembers Lopez, Mendoza, Penaloza, Phan, Mayor Pro Tem Bacerra, and Mayor Sarmiento were present in person. Councilmember Hernandez attended via teleconference.

PLEDGE OF ALLEGIANCE Mayor Sarmiento
MINUTES: Councilmember Mendoza led the Pledge of Allegiance.

WORDS OF INSPIRATION Heidi Lucero
City Council 8 – 3 5/16/2023
CITY COUNCIL MINUTES 4 October 04, 2022

CEREMONIALPRESENTATIONS

1. Proclamation presented by Mayor Pro Tem Bacerra declaring October 2022 as Breast Cancer Awareness Month.

2. Certificates of Recognition presented by Councilmember Lopez and Mayor Sarmiento to the Garden Grove Unified School District Board of Education for Outstanding Contributions to Exemplary Academic Achievements.

3. City Seal Tile presented by Councilmember Mendoza to Cecilia Aguinaga for Outstanding Contributions to the Community.

4. Certificate of Recognition presented by Councilmember Penaloza to Fabian Flores for Outstanding Contributions to the Community.

CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

MINUTES: City Attorney Sonia Carvalho stated there was no reportable action.

PUBLIC COMMENT – Public comments will be held during the beginning of the meeting for ALL comments on agenda and non-agenda items, except for public hearings. Comments for public hearings will take place after the hearing is opened.

MINUTES: Acting Clerk of the Council Norma Orozco reported the summary of the email comments received; One (1) email from a Santa Ana resident regarding a non-agenda item. Five (5) emails from Santa Ana residents in support of Item 25. Twelve (12) emails in support of Item 25, including the proposed ordinance changes. Two (2) emails in opposition to Item 25.

Nathaniel Greensides spoke in support of Item 25 and the proposed changes pertaining to mobile home parks.

David Carbajal spoke in support of Item 25 and requested that the mediators receive a minimum of 40 to 80 hours of formal training.

Gema Suarez spoke in support of Item 25 and thanked the Council for all their hard work.

Silvia Avendano (translation: Spanish) spoke in support of Item 25 and advocated in support of a rental registry and board.

Mextli Lopez spoke in support of Item 25 and requested that rental board be composed of three (3) tenants, one (1) mobile home resident, two (2) landlords, and one (1) at-large member with no conflicting financial interest.

Ignacio Sanchez (translation: Spanish) spoke in support of Item 23 and thanked Council for their consideration of the item.

City Council 8 – 4 5/16/2023
CITY COUNCIL MINUTES 5 October 04, 2022
Jesus Santana spoke in support of Item 25 and requested that the rent board be composed of three (3) tenants, one (1) mobile home resident, two (2) landlords, and one (1) at-large member with no conflicting financial interest.

James Shih spoke in support of Item 22 and spoke regarding the inquiries his manufacturing company has received related to the retail tax decrease.

Idalia Rios (translation: Spanish) spoke in support of Item 25 and asked the Council to support a rental board and rental registry.

Maggie Moreno, staff member with Congressmember Lou Correa’s office, read a letter on behalf of the Congressmember in support of Item 16.

Kandice HawesLopez spoke in support of Item 22 and regarding the outreach Orange County Norml provides to senior citizens regarding medicinal cannabis use.

Julio Cesar Flores (translation: Spanish), Santa Ana property owner, spoke in opposition to Item 25 and regarding the financial hardships he has experienced.

Tracy La, on behalf of Viet Rise, spoke in support of Item 25 and the positive impact the Rent Stabilization Ordinance had in her community.

Indigo Vu spoke in support of Item 25 and in support of a rental registry board.

Vincent Tran spoke in support of Item 25 and the proposed redline ordinance submitted by Tenants United.

Michael Nguyen spoke in support of Item 25 and thanked the Council for their support.

Cesar Medina (translation: Spanish) spoke in support of Item of 25 and requested a rental registry.

Carl Benninger spoke in support of undocumented immigrants that serve as a member of the military should receive American citizenship and asked Council to write to their representatives and ask for their support on this issue. He requested Council to look into solar power and renewable energy sources and inquired about the enforcement of street vendors.

Rosa M. Pizano (translation: Spanish) spoke in support of Item 25 and in support of a rental registry.

City Council 8 – 5 5/16/2023
CITY COUNCIL MINUTES 6 October 04, 2022
Guadalupe Barragan (translation: Spanish) spoke in support of Item 25, in support of a rental registry, and requested training for mobile home park managers.

Marisol (translation: Spanish) spoke in support of Item 25 and the lack of privacy afforded to mobile home park residents.

Guadalupe Rubalcava (translation: Spanish) spoke in support of Item 25 and rent control.

Michelle Kerns spoke in support of Item 25 and requested Council to monitor the safety and living conditions of senior citizen communities.

Karen Sarabia (translation: Spanish) spoke in support of the “Noche De Altares” event and requested the City help provide security and approve the closure of Ross and Third Streets for the event.

Dora Trejo (translation: Spanish) spoke in support of the “Noche De Altares” event and requested the City’s approval regarding the closure of Ross and Third Streets.

Carlo Rubalcava spoke in support of Item 25 and urged Council to adopt a rent board that is representative of the City’s residents.

The following speakers addressed Council via teleconference:

Jennifer Rojas, ACLU Orange County, spoke in support of Item 26. She recommended Council increase transparency regarding the Police Officers Association negotiations by providing periodic public status reports and holding a public hearing once an agreement has been made.

Victor Mendez spoke regarding equity and transparency when discussing negotiations for the Police Officers Association and the Police Management Association.

Kaley Lovitt spoke in support of Item 25 and requested that the rental board be composed of three (3) tenants, one (1) mobile home resident, two (2) landlords, and one (1) at-large member with no conflicting financial interest.

Benjamin Vasquez spoke in support of Item 25 and also supported the amendments suggested by Tenants United Santa Ana.

Arielle Badel spoke regarding Item 25 and was supportive of the ordinance with modifications to ensure compliance with mobile home residency laws and protections.

City Council 8 – 6 5/16/2023
CITY COUNCIL MINUTES 7 October 04, 2022
Brandon Cisco spoke in support of Item 22 and regarding additional retail cannabis permits.

RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 5 through 23.

MINUTES: Mayor Pro Tem Bacerra pulled Item 11 and Mayor Sarmiento pulled Item 23 for separate discussion and consideration.

Councilmember Phan recused herself from Items 7 and 19, as both of the listed vendors are clients of her employer, Rutan & Tucker.

Consent Calendar Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Penaloza to approve Consent Calendar Items 5 through 23 with the exception of Items 11 and 23.

YES: 7 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Mendoza, – Councilmember Penaloza, – Councilmember Phan, – Mayor Pro Tem Bacerra, – Mayor Sarmiento
NO: 0
ABSTAIN: 0
ABSENT: 0
Status: 7 – 0 – 0 – 0 – Pass

5. Excused Absences
Department(s): Clerk of the Council Office
Recommended Action: Excuse the absent members.

6. Minutes from the Special City Council Meeting of July 29, 2022 Department(s): Clerk of the Council Office
Recommended Action: Approve minutes.

7. Receive and File the Certification of Approval by City Engineer of the Final Parcel Map 2018-188 (666 East Dyer Road) (Applicant: Shea Properties; Owner: Dyer Business Park, LLC)
Department(s): Public Works Agency
Recommended Action: Receive and file the certification of approval by City Engineer of the final Parcel Map 2018-188.

CONSENT CALENDAR
City Council 8 – 7 5/16/2023
CITY COUNCIL MINUTES 8 October 04, 2022
Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Penaloza to approve Item 7.

YES: 6 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Mendoza, – Councilmember Penaloza, – Mayor Pro Tem Bacerra, – Mayor Sarmiento
NO: 0
ABSTAIN: 1 – Councilmember Phan
ABSENT: 0
Status: 6 – 0 – 1 – 0 – Pass

8. Award a Construction Contract to GB Cooke, Inc., in the amount of $721,531 for the Santa Ana Zoo Goat Trail FY 2022-23 Project with an Estimated Project Delivery Cost of $881,531 (Project No. 21-2744) (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Award a construction contract to GB Cooke, Inc., a responsive bidder, in accordance with the base bid in the amount of $721,531, for construction of the Santa Ana Zoo Goat Trail for the term beginning October 4, 2022 and ending upon project completion, and authorize the City Manager to execute the contract subject to non-substantive changes approved by the City Manager and the City Attorney.

2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $881,531, which includes $721,531 for the construction contract, $80,000 for contract administration, inspection and testing, and $80,000 project contingency for unanticipated or unforeseen work.

3. Approve an amendment to the Fiscal Year 2022-23 Capital Improvement Program to include the Santa Ana Zoo Goat Trail project.

9. Approve the Third Amendment to the Construction Contract with CJ Concrete Construction, Inc., to Increase the Contract Amount by $1,000,000 to Perform Additional Concrete Repairs through the End of Project Completion (Project No.22- 6970) (General and Non-General Fund)
Department(s): Public Works Agency
Recommended Action:

1. Authorize the City Manager to approve the third amendment to the construction contract with CJ Concrete Construction, Inc., by an increase of $1,000,000, to perform additional concrete improvements through the end of project completion, for a new estimated project delivery cost of $4,700,000.

2. Approve the revised Project Cost Analysis increasing construction administration, inspection, and testing by $50,000 and the project contingencies by $950,000, for a new estimated project delivery cost of $4,700,000.

City Council 8 – 8 5/16/2023
CITY COUNCIL MINUTES 9 October 04, 2022

10. Award a Blanket Order Contract to Aqua-Metric Sales Company for Water Meters and Related Supplies in an Annual Amount Not to Exceed $500,000 (Specification No. 22-131) (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: Award a blanket order contract to Aqua-Metric Sales Company for water meters and supplies for an annual amount not to exceed $500,000, for a one-year term beginning October 4, 2022 and expiring October 3, 2023, with four one-year renewal options, subject to non-substantive changes approved by the City Manager and the City Attorney.

11. Approve Appropriation Adjustment and Award a Purchase Order in the Amount of $3,042,449 to Musco Sports Lighting, LLC, for LED Sports Lighting with Related Supplies and Services (Specification No. 22-114) (Project Nos. 22-2754, 22-2756 & 22-2769) (General and Non-General Fund)
Department(s): Public Works Agency
Recommended Action:

1. Authorize a one-time purchase order to Musco Sports Lighting, LLC for the purchase of LED sports lighting, including light-structure systems, light controls, removal and disposal of existing equipment, and installation services, for Memorial Park, Thornton Park and the Dan Young Soccer Complex (DYSC), in the amount of $3,042,449, plus a contingency of $384,751, for a total amount not to exceed $3,427,200, subject to non-substantive changes approved by the City Manager and the City Attorney.

2. Approve an Appropriate Adjustment to recognize $1,020,838 in revenue received from prior years into the Residential Development District 3, Park Acquisition & Development Fees revenue account and appropriate the same amount into the Residential Development District 3, Building improvements expenditure account (Requires five affirmative votes)
MINUTES: Mayor Pro Tem Bacerra pulled Item 11 for separate discussion and consideration. Mayor Pro Tem Bacerra sought clarification on locations of lights and future projects. Councilmember Penaloza inquired about the full replacement of the lighting at Memorial Park.

Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Penaloza to approve Item 11.

YES: 7 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Mendoza, – Councilmember Penaloza, – Councilmember Phan, – Mayor Pro Tem Bacerra, – Mayor Sarmiento
City Council 8 – 9 5/16/2023
CITY COUNCIL MINUTES 10 October 04, 2022
NO: 0
ABSTAIN: 0
ABSENT: 0
Status: 7 – 0 – 0 – 0 – Pass

12. Approve Appropriation Adjustment and Award a Purchase Order in the Amount of $1,049,983 to National Auto Fleet Group for Eighteen Ford Interceptor Utility SUVs for the Police Department (Specification No. 22-127) (Non-General Fund) Department(s): Public Works Agency
Recommended Action: 1. Authorize a one-time purchase and payment of purchase order to National Auto Fleet Group for the purchase of eighteen Ford Interceptor Utility SUVs, of which includes three K-9 build with rear air option, in the amount of $1,029,983, plus a contingency of $20,000, for a total amount not to exceed $1,049,983, subject to non-substantive changes approved by the City Manager and the City Attorney.

2. Approve an appropriation adjustment recognizing $1,525,024 in prior year fund balance in the Equipment Replacement Fund, Prior Year Carry Forward revenue account and appropriate the same amount into the Equipment Replacement Fund, Machinery and Equipment expenditure account for this item and anticipated FY22-23 replacement vehicle expenditures. (Requires five affirmative votes)

13. Appropriation Adjustment and Agreement Accepting $580,000 from the State Office of Traffic Safety for Selective Traffic Enforcement Program (Non-General Fund) Department(s): Police Department
Recommended Action: 1. Authorize the City Manager to execute an agreement with the State of California - Office of Traffic Safety for the Selective Traffic Enforcement Program, for a one-year period beginning October 1, 2022 through September 30, 2023, in an amount not to exceed $580,000, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2022-188).

2. Approve an appropriation adjustment accepting $580,000 in the Office of Traffic Safety, Federal Grant-Indirect revenue account and appropriate same to the Selective Traffic Enforcement Program expenditure account. (Requires five affirmative votes)

14. Approve Agreements with The Counseling Team International, Eric Gruver, Ph.D., and Susan Saxe-Clifford, Ph.D. for Law Enforcement Psychological Services (General Fund)
Department(s): Police Department
Recommended Action: 1. Authorize the City Manager to execute an agreement with The Counseling Team International for law enforcement psychological services, in an amount not to exceed $78,000, for a three-year period beginning October 4, 2022 City Council 8 – 10 5/16/2023
CITY COUNCIL MINUTES 11 October 04, 2022
through September 30, 2025, with an option for two, one-year extensions, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2022- 189).

2. Authorize the City Manager to execute an agreement with Eric Gruver, Ph.D. for law enforcement psychological services, in an amount not to exceed $30,000 for a threeyear period beginning October 4, 2022 through September 30, 2025, with an option for two, one-year extensions, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2022-190).

3. Authorize the City Manager to execute an agreement with Susan Saxe-Clifford, Ph.D. for law enforcement psychological services, in an amount not to exceed $12,000, for a three-year period beginning October 4, 2022 through September 30, 2025, with an option for two, one-year extensions, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2022-191).

15. Agreement Amendment with A1 Party Rental for Event Equipment Rental Services at City Events to Increase the Annual Amount by $64,000 per Year through March 31, 2025, for a total Increase of $192,000 and New Agreement Total of $450,000 (General Fund)
Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute an agreement amendment with A1 Party Rental for event equipment rental services at City events to increase the annual amount by $64,000 per year through March 31, 2025, for a total increase of $192,000 and new agreement total of $450,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2022-192).

16. Approve an Agreement with IDS Group for Architectural and Engineering Services for Public Health Plaza and Wellness Programming in an Amount Not to Exceed $370,077 for a Three-Year Term (Non-General Fund) (Revive Santa Ana Program) Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute an agreement with IDS Group for architectural and engineering services for Santa Ana’s Public Health Plaza and Wellness Programming project in the amount of $336,433, with a contingency of $33,644 for a total amount of $370,077, for a three-year term beginning October 4, 2022 and expiring October 3, 2025, with an option for two, oneyear extensions, subject non-substantive changes approved by the City Manager and the City Attorney (Agreement No. 2022-193).

2. Approve an amendment to the Fiscal Year 2022-23 Capital Improvement Program to include $4,000,000 for the Public Health Plaza and Wellness Programming project.

City Council 8 – 11 5/16/2023
CITY COUNCIL MINUTES 12 October 04, 2022

17. Grant an Easement to Southern California Edison to Allow Underground Power to Serve 2202 Magnolia Avenue
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an Easement Deed granting Southern California Edison (SCE) the right to place, own, and maintain power conduits and conductors underground to serve 2202 South Magnolia Avenue, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2022-194).

18. Purchase and Sale Agreement of Real Property at 206 S. Flower Street for Future Water Resources Well Facility (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute a purchase and sale agreement with Tom Morrison, Patricia Morrison, Jimmy Hsieh, and Natalie Marquez for the purchase of real property located at 206 S. Flower Street (APN 008- 213-31), in the amount of $775,000, plus normal closing costs and escrow fees and relocation expenses, for a total amount not to exceed $1,050,000, subject to nonsubstantive changes approved by the City Manager and the City Attorney (Core Agreement No. 2022-195).

2. Approve an amendment to the Fiscal Year 2022-23 Capital Improvement Program to include $1,050,000 in funds for the Flower Street Well Project (No. 23-6475).

19. Approve First Agreement Amendment with TACenergy for the Purchase of Gasoline and Diesel Fuel, to Increase the Contract Amount by $600,000 and Extend Through January 31, 2023 (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute the first amendment to the gasoline and diesel purchase agreement with TACenergy, by an increase of $600,000 and extend agreement services through January 31, 2023, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2022-196).

Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Penaloza to approve Item 7.

YES: 6 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Mendoza, – Councilmember Penaloza, – Mayor Pro Tem Bacerra, – Mayor Sarmiento
NO: 0
City Council 8 – 12 5/16/2023
CITY COUNCIL MINUTES 13 October 04, 2022
ABSTAIN: 1 – Councilmember Phan
ABSENT: 0
Status: 6 – 0 – 1 – 0 – Pass

20. Approve an Agreement with the County of Orange for Exchange of Real Property and Adopt a Resolution Declaring City Property as Exempt Surplus Land Department(s): Public Works Agency
Recommended Action: 1. Resolution No. 2022-076 – Adopt a resolution declaring City-owned property as exempt surplus land pursuant to California Government Code § 54220 et seq. for the purpose of a real property exchange with the County of Orange.

2. Authorize the City Manager to execute an Exchange of Real Property agreement between the City of Santa Ana and the County of Orange, a political subdivision of the State of California, for proposed property exchange of the Civic Center Plaza of the Flags area and the Civic Center Library Parking Structure subject to non-substantive changes approved by the City Manager and the City Attorney (Agreement No. 2022- 197).

21. Teleconferencing for Meetings of City Council and All Boards, Committees, and Commissions Pursuant to the Provisions of Assembly Bill 361 Department(s): Clerk of the Council Office
Recommended Action: Resolution No. 2022-077 – Adopt a resolution to consider continuing the use of teleconferencing for City Council, board, committee, and commission meetings pursuant to the provisions of Assembly Bill 361 for the next 30 days.

22. Ordinance Amendment No. 2022-01 – Commercial Cannabis Amendments Second Reading
Legal notice published in the Orange County Reporter on September 23, 2022.

Department(s): Finance and Management Services, Planning and Building Agency Recommended Action:

1. Ordinance NS-3026 – Place on second reading and adopt Ordinance Amendment No. 2022-01 to Update Chapters 18, 21, and 40 of the Santa Ana Municipal Code Addressing Medicinal Cannabis Retail, Consumption Lounges and Temporary Events, Retail Facility Relocation, Commercial Cannabis Eligible Areas, Commercial Cannabis Tax Rate Reductions for Commercial Cannabis Retail, Cultivation, Distribution, and Manufacturing, and Adopt Language Addressing Proposed Tax Treatment of Microbusinesses and Shared Manufacturing, and Make Other Administrative Amendments of a Complimentary Nature.

City Council 8 – 13 5/16/2023
CITY COUNCIL MINUTES 14 October 04, 2022

2. Resolution No. 2022-079 – Adopt a resolution modifying various commercial cannabis retail and non-retail tax rates.

3. Resolution No. 2022-080 – Adopt a resolution modifying the medicinal cannabis retail tax rate.

4. Resolution No. 2022-081 – Adopt a resolution establishing a map of commercial cannabis eligible areas in the City, the number of annual temporary consumption events, and the community benefit, sustainable business practices, and social equity plan template.

23. Adopt a Resolution Establishing a Sister City Relationship with Sahuayo, Michocan, Mexico
Department(s): City Manager Office
Recommended Action: Resolution No. 2022-081 – Adopt a resolution proclaiming the establishment of an educational, cultural, and business affiliation with the City of Sahuayo of the state of Michoacán of the United Mexican States.

MINUTES: Mayor Sarmiento expressed gratitude towards “Fundacion Sahuayo” and the Mayor of Sahuayo, Dr. Manuel Galvez Sanchez, for all of their hard work and dedication in making the item possible.

Moved by Mayor Sarmiento, seconded by Mayor Pro Tem Bacerra to approve Item 23.

24. Appoint Member to the Orange County Mosquito and Vector Control District’s Board of Trustees
Department(s): Clerk of the Council Office

BUSINESS CALENDAR
City Council 8 – 14 5/16/2023
CITY COUNCIL MINUTES 15 October 04, 2022
Recommended Action: Select a member to the Orange County Mosquito and Vector Control District’s Board of Trustees and appoint for the current term expiring in January 1, 2024.

Moved by Mayor Sarmiento to nominate and appoint Councilmember Mendoza to the Orange County Mosquito and Vector Control District Board, seconded by Councilmember Penaloza.

25. Adoption of Ordinance amending the Rent Stabilization and Just Cause Eviction Ordinances
Department(s): Community Development Agency
Recommended Action: Approve first reading of the Ordinance amending the Rent Stabilization and Just Cause Eviction Ordinances.

MINUTES: Community Development Housing Manager Judson Brown and Housing Program Analyst Sara Court provided a brief presentation.

Councilmember Mendoza inquired about the costs to run the program and for the fee study, expressed concern on how fees might be passed on to tenants, and questioned how the City plans to assist low-income tenants.

Mayor Pro Tem Bacerra inquired regarding the fiscal impact of the item and spoke in opposition to the item.

MOTION: Councilmember Hernandez requested the following amendments: 1) Requested consistency in the capitalization of the word “Tenants” throughout the ordinance; 2) The rental board be composed of three (3) tenants, one (1) mobile home resident, two (2) landlords, and one (1) at-large member who has no conflicting financial interest; 3) Amendment to the judicial review period from thirty (30) days to ninety (90) days; 4) Inclusion of the date of the last Code Enforcement inspection and a rebate for seniors, and 5) Mediation training be a minimum of forty (40)-eighty (80) hours, not twenty-four (24).

Councilmember Hernandez moved to approve Item 25 with amendments, seconded by Mayor Sarmiento. The amended motion and second were subsequently retracted and not voted on.

City Council 8 – 15 5/16/2023
CITY COUNCIL MINUTES 16 October 04, 2022
SUBSTITUTE MOTION: Councilmember Phan requested amendments to include language indicating that the ordinance shall not supersede any mobilehome residency law or domestic violence law. and include amendments regarding capitalization standardization, increased mediation training, a need for DEI/cultural competency training, having Rental Board nominations, appointments, and terms track with the process of other City boards and commissions, and add back an exception for affordable housing providers, seconded by Mayor Sarmiento.

Mayor Sarmiento spoke in support of Councilmember Phan’s suggested changes and offered a friendly amendment of option 3 regarding the composition of the board, which was accepted by Councilmember Phan.

Councilmember Hernandez withdrew his original motion.

Councilmember Lopez spoke in support of the amended motion put forth by Councilmember Phan.

Councilmember Penaloza spoke in opposition to the item, citing the unknown fiscal impact of a rental registry fee as his reason for opposing the item.

Moved by Councilmember Phan, seconded by Mayor Sarmiento to approve Item 25, as amended.

YES: 4 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Phan, – Mayor Sarmiento
NO: 3 – Councilmember Mendoza, – Councilmember Penaloza, – Mayor Pro Tem Bacerra
ABSTAIN: 0
ABSENT: 0
Status: 4 – 3 – 0 – 0 – Pass
**END OF BUSINESS CALENDAR**

COUNCILMEMBER REQUESTED ITEMS

26. Discuss and Provide Direction to the City Manager and City Attorney to Report to the City Council What is Necessary to Adopt a Policy to Move all Santa Ana Police Officers Association Contract Negotiations into a Public Forum – Councilmember Lopez
MINUTES: Councilmember Lopez spoke in support of the item.

Councilmember Hernandez spoke in support of the item and requested to add the Police Management Association.

Councilmember Phan spoke in support of the item.

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CITY COUNCIL MINUTES 17 October 04, 2022
Councilmember Mendoza inquired with staff about the pros and cons of discussing items in Closed Session.

Mayor Sarmiento spoke in support of the item.

Mayor Pro Tem Bacerra spoke in opposition to the item.

Councilmember Penaloza inquired about the seven (7) categories for which the Brown Act permits Closed Session discussions.

Majority direction was given to bring something back for Council’s consideration.

27. Discuss and Consider Directing the City Manager to Direct Staff to Refrain from Using any City Resources and/or Messaging Capabilities to Promote, Advertise, or Mention Any Elected Official within 90 Days of an Election – Councilmember Penaloza
MINUTES: Councilmember Penaloza spoke in support of the item and spoke regarding communications he has received from various community members about billboards throughout the City.

Mayor Sarmiento spoke in support of the item and requested the item also include the improper use of City-funded gift cards and the use of public funds.

Councilmember Bacerra spoke in support of the item and addressed comments regarding gift cards being raffled at neighborhood association meetings.

Councilmember Lopez spoke in support of the item.

Councilmember Hernandez spoke in opposition to the item.

Councilmember Phan requested staff research and bring back best practices regarding blackout dates in close proximity to election season.

Councilmember Lopez requested the policy apply to all dignitaries.

Majority direction was given to bring something back for Council’s consideration.

CITY MANAGER COMMENTS
MINUTES: City Manager Kristine Ridge reminded the public that the City would be hosting the first Indigenous Peoples Day event on Saturday, October 8, 2022, and that Wednesday, October 5, 2022 is National Walk to School Day.

COUNCIL COMMENTS
AB1234 DISCLOSURE – If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or City Council 8 – 17 5/16/2023
CITY COUNCIL MINUTES 18 October 04, 2022
commission meeting or any conference, meeting or event attended.

MINUTES: Councilmember Hernandez extended an invitation to the community to attend the Indigenous Peoples Day event on Saturday, October 8, 2022.

Councilmember Penaloza thanked Councilmember Phan for leading the Mid-Autumn Festival.

AB1234 - Councilmember Phan announced her participation as a panelist at the National Conference of Vietnamese American Attorneys. She also provided comments regarding the Mid-Autumn Festival and thanked staff for all the time and hard work they invested into hosting the event.

Mayor Pro Tem Bacerra announced his community office hours, scheduled for Saturday October 8, 2022 at Thornton Park.

ADJOURNMENT – Adjourn the City Council meeting.

MINUTES: Mayor Sarmiento adjourned the meeting at 11:03 P.M.

Respectfully Submitted,
Jennifer L. Hall, CMC
City Clerk
City Council 8 – 18 5/16/2023
City Council 12 10/18/2022
DRAFT Minutes of the Regular and Special
Closed Session Meeting of the City Council
City of Santa Ana, California
October 18, 2022
SPECIAL CLOSED SESSION MEETING – 3:00 P.M.

REGULAR OPEN MEETING – 5:45 P.M.
(Immediately following the Closed Session Meeting)

CITY COUNCIL CHAMBER
22 Civic Center Plaza, Santa Ana, CA 92701

SPECIAL CLOSED SESSION

City Council 8 – 19 5/16/2023
City Council 12 10/18/2022

ROLL CALL
MINUTES: Acting Clerk of the Council Norma Orozco conducted Roll Call.

Councilmembers Lopez, Mendoza, Penaloza, Mayor Pro Tem Bacerra, and Mayor Sarmiento were present in person. Councilmember Hernandez and Councilmember Phan attended via teleconference.

PUBLIC COMMENTS – Members of the public may address the City Council on Closed Session items.

MINUTES: No public comments were received regarding Closed Session items.

1. PUBLIC EMPLOYEE EMPLOYMENT/APPOINTMENT pursuant to Government Code 54957
Title: Clerk of the Council, Acting Clerk of the Council, or Interim Clerk of the Council

2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code:

A. Santa Ana Police Officers Association and Gerry Serrano v. City of Santa Ana, Santa Ana Police Department, David Valentin, Kristin (sic) Ridge, Sonia Carvalho, Jason Motsick, and Does I-X, Orange County Superior Court, Case No. 30-2021- 01230129
B. Santa Ana Police Officers Association and Doe Officers v. David Valentin, Sonia Carvalho, Kristine Ridge, City of Santa Ana, Santa Ana Police Department, Santa Ana City Attorney’s Office, and Does I-X, Orange County Superior Court, Case No. 30- 2021-01230134

3. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a):

Agency Negotiators: Human Resources Executive Director, Jason Motsick Employee Organizations:

Santa Ana Police Officers Association (POA)
Santa Ana Police Management Association (PMA)
Service Employees’ International Union (SEIU) Full-Time Employees Service Employees’ International Union (SEIU) Part-Time Non-Civil Service Employees
Confidential Association of Santa Ana (CASA) Santa
Ana Management Association (SAMA)
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City Council 12 10/18/2022

4. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code 54956.8
Agency Negotiator: Nabil Saba, Executive Director Public Works Negotiating Parties: Frank Bryan John Turner, Authorized Signer, RIF 40, LLC.

Under Negotiation: Price and terms related to the possible disposition/acquisition of real property interest.

Address of Properties: 4404 W. First Street, APN: 188-021-08 CLOSED SESSION REPORT – The City Attorney will report on any action(s) to be taken at the Regular Open Session which will begin immediately following the Closed Session.

RECESS – City Council will recess to Closed Session for the purpose of conducting regular City business.

MINUTES: Mayor Sarmiento recessed to consider items on the Special Closed Session Agenda at 3:13 P.M.

RECONVENE – City Council will reconvene to continue regular City business.

CITY COUNCIL REGULAR OPEN SESSION

CALL TO ORDER
MINUTES: Mayor Sarmiento reconvened the City Council at 6:58 P.M.

ROLL CALL
MINUTES: Acting Clerk of the Council Norma Orozco conducted Roll Call.

Councilmembers Lopez, Mendoza, Penaloza, Phan, Mayor Pro Tem Bacerra, and Mayor Sarmiento were present in person. Councilmember Hernandez and Councilmember Phan attended via teleconference and in-person.

PLEDGE OF ALLEGIANCE Mayor Sarmiento
MINUTES: Councilmember Mendoza led the Pledge of the Allegiance.

WORDS OF INSPIRATION Pastor Matt Doan

CEREMONIALPRESENTATIONS

1. Proclamation presented by Mayor Pro Tem Bacerra declaring October 2022 as Filipino American History Month.

2. Certificates of Recognition presented by Councilmember Lopez to the Santiago City Council 8 – 21 5/16/2023
City Council 12 10/18/2022
Elementary School Speech & Debate Team for Exemplary Academic Achievements.

3. Proclamation presented by Councilmember Mendoza declaring October 30 to November 5, 2022 as Childhood Cancer Awareness Week.

4. Proclamation presented by Councilmember Penaloza declaring October 2022 as National Pregnancy and Infant Loss Awareness Month.

5. Proclamation presented by Councilmember Phan declaring October 2022 as Domestic Violence Awareness Month.

CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

MINUTES: City Attorney Sonia Carvalho stated there was no reportable action.

MINUTES: Acting Clerk of the Council Norma Orozco reported the summary of the email comments received; two (2) emails from Santa Ana residents regarding non-agenda items.

Twelve (12) emails in support of Item 25, including the proposed ordinance changes. Two (2) emails in opposition to Item 25.

Andrew Rivas spoke on nonagenda items regarding Councilmember Hernandez.

Jennifer Rojas, policy advocate and organizer with ACLU Southern California, spoke on agenda Item 22 and on policy language and recommendations for policy changes to the Police Oversight Commission.

Fernando Delgado spoke on Item 22 and policy changes they would like to see with the Police Oversight Commission.

Sonny Bianchi spoke on Item 22 and police accountability, transparency, and excessive use of force.

Hector Bustos, Communications Director with Chispa, spoke on Item 22 and amendments that they would like to see with the Police Oversight Commission.

Nathaniel Greensides spoke in support of Item 21 and mobile home tenants and residents.

Bulmaro Vicente, Policy Director for Chispa, spoke on Item 22 and the changes they would like to see with the Police Oversight Commission.

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City Council 12 10/18/2022
Maggie Moreno, on behalf of Congressmember Lou Correa, read a letter from Congressmember Lou Correa in support of Item 24.

Biff Baker spoke on Item 22 and changes they would like to see with the Police Oversight Commission.

Jesus Santana spoke on Item 21 and spoke in support of continuing implementation of a rental registry, a rent board for transparency, rent protection, and accountability within the City’s rental properties.

Gema Suarez (translation: Spanish) spoke on Item 21 in support of protection for vulnerable residents and low-income families.

Vincent Tran, Community Engagement Coordinator for VietRise, spoke in support of Item 21 and in support Item of 22 with changes they would like to see with the Police Oversight Commission.

David Carbajal spoke in support of Item 21 and upcoming elections.

Carlos Perea, Director for the Harbor Institute for Immigrant and Economic Justice, spoke in support of Item 21 and Item 22 with changes they would like to see with the Police Oversight Commission.

Perla S spoke on Domestic Violence Awareness Month and the process of establishing a police report at the police station.

America Najera spoke on Item 21 and on displacement and division of families due to high rent.

The following speakers addressed Council via teleconference:

Roxel Soto spoke on Item 22 and the changes they would like to see with the Police Oversight Commission.

Loran Quniones addressed a nonagenda item regarding repealing the anti cruising ordnance.

Benjamin Vasquez spoke in support of the Police Oversight Commission, Renter Registry, and a Renters Board.

Victor Mendez spoke on changes they would like to see with the Police Oversight Commission.

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City Council 12 10/18/2022
Daisy Chavez, Vice Chair of Anaheim Police Review Board, spoke on Item 22, the Anaheim Police Review Board, and changes they would like to see with the Police Oversight Commission.

Mextli Lopez spoke in support of Item 21, in support of an equitable rental board.

Adam Overton spoke on Item 22 and the changes they would like to see in the Police Oversight Commission.

Carl spoke in support of Item 9, in support of citizenship for veterans who were honorably discharged from service, homelessness, in support of the Police Oversight Commission, and changes they would like to see in the Police Oversight Commission.

Flavio Weezer spoke on removing the No Cruising Ordinance.

Amina Mirza Kazi, CoDirector of the Peace and Justice Law Center, spoke on Item 22 and changes they would like to see with the Police Oversight Commission.

Tanya Navarro spoke in support of Item 21, in support of Item 22, and changes they would like to see with the Police Oversight Commission.

Betty Santos spoke on a nonagenda item to repeal the No Cruising Ordinance.

RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 6 through 21.

MINUTES: Mayor Pro Tem Bacerra, Councilmember Penaloza, and Councilmember Mendoza dissented on Item 21. Mayor Sarmiento dissented on Item 14. Councilmember Phan recused herself from Items 10, 13, 16, and 17 due to a conflict of interest, as the listed vendors are clients of her employer, Rutan & Tucker.

Consent Calendar Moved by Mayor Pro Tem Bacerra, seconded by Councilmember Penaloza to approve Consent Calendar Items 6 through 21.

CONSENT CALENDAR
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City Council 12 10/18/2022

6. Excused Absences
Department(s): Clerk of the Council Office
Recommended Action: Excuse the absent members.

7. Minutes from the Regular City Council Meeting of August 2, 2022 Department(s): Clerk of the Council Office
Recommended Action: Approve minutes.

8. Appoint Michelle Cisneros Nominated by Councilmember Mendoza as the Ward 2 Representative to the Personnel Board for a Partial-term Expiring December 13, 2022 Department(s): Clerk of the Council Office
Recommended Action: Appoint Michelle Cisneros to the Personnel Board as the Ward 2 representative and administer Oath of Office.

Acting Clerk of the Council Norma Orozco administered the Oath of Office to Commissioner Cisneros.

9. Appoint Dr. Annebelle Nery, representing Title II Adult Education, to the Santa Ana Workforce Development Board
Department(s): Community Development Agency
Recommended Action: Appoint Dr. Annebelle Nery, for a partial term expiring May 31, 2023 (replacing Dr. Marilyn Flores), to represent Title II Adult Education on the Workforce Development Board.

10. Award a Purchase Order in an Amount of $368,636 to Altec Industries, Inc. for Two Utility Boom Trucks (Specification No. 22-079) (General and Non-General Fund) Department(s): Public Works Agency
Recommended Action: Authorize a one-time purchase and payment of purchase order to Altec Industries, Inc. in the amount of $368,636, plus a contingency of $20,000, for a total amount not to exceed $388,636, for the purchase of two utility boom trucks, subject to non-substantive changes approved by the City Manager and the City Attorney.

Moved by Councilmember Penaloza, seconded by Mayor Pro Tem Bacerra to approve Item 10.

YES: 6 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Mendoza, – Councilmember Penaloza, – Mayor Pro Tem Bacerra, – Mayor Sarmiento
City Council 8 – 25 5/16/2023
City Council 12 10/18/2022
NO: 0
ABSTAIN: 1 – Councilmember Phan
ABSENT: 0
Status: 6 – 0 – 1 – 0 – Pass

11. Award a Purchase Order in the Amount of $83,872 to National Auto Fleet Group for Two Ford F-150 Trucks for the Public Works Agency’s Code Enforcement Officers (Specification No. 22-128) (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize a one-time purchase and payment of purchase order to National Auto Fleet Group for the purchase of two Ford F-150 Trucks in the amount of $78,872, plus a contingency of $5,000, for a total amount not to exceed $83,872, subject to non-substantive changes approved by the City Manager and the City Attorney.

12. Award a Purchase Order in the Amount of $104,058 to National Auto Fleet Group for Ford Transit T-350 Plumbers Van for Parks Maintenance (Specification No. 22-127) (General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize a one-time purchase and payment of purchase order to National Auto Fleet Group for the purchase of one Ford Transit T-350 Plumbers van in the amount of $94,058, plus a contingency of $10,000, for a total amount not to exceed $104,058, subject to non-substantive changes approved by the City Manager and the City Attorney.

13. Approve Appropriation Adjustment to Recognize Grant Revenue, Approve an Agreement with the State of California Office of Traffic Safety to Secure a Bicycle Safety Grant in an Amount Not to Exceed $156,000; and Approve an Agreement with Charitable Ventures of Orange County to Provide Bicycle Safety Education in an Amount Not to Exceed $156,000 (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Approve an appropriation adjustment to recognize Office of Traffic Safety (OTS) Pedestrian and Bicycle Safety grant funds in the amount of $156,000 in the OTS-PWA Traffic Safety Grants, Federal Grants-Indirect revenue account and appropriate the same amount to the OTS-Bicycle Safety PWA, Contract Services-Professional expenditure account. (Requires five affirmative votes)

2. Authorize the City Manager to execute a one-year grant agreement (PS23007) with the State of California Office of Traffic Safety for Pedestrian and Bicycle Safety Program funds in an amount not to exceed $156,000, for a one-year period beginning October 1, 2022 and ending September 30, 2023, (time frame consistent with the grant cycle), subject to non-substantive changes approved by the City Manager and the City Attorney (Agreement No. 2022-199).

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City Council 12 10/18/2022

3. Authorize the City Manager to execute an agreement with Charitable Ventures of Orange County, Inc. to provide bicycle safety education services for a one-year period, beginning October 18, 2022 and ending October 31, 2023, in an amount not to exceed $156,000, subject to non-substantive changes approved by the City Manager and the City Attorney (Agreement No. 2022-200).

Moved by Councilmember Penaloza, seconded by Mayor Pro Tem Bacerra to approve Item 13.

14. Approve an Agreement with Lyons Security Services Inc. to Provide Security Guard Services at Various City Sites in an Amount Not to Exceed $15,035,621, plus a $3,007,125 contingency, for a total Amount Not to Exceed $18,042,746 for a ThreeYear Term (General and Non-General Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an agreement with Lyons Security Services, Inc. to provide unarmed and armed security guard services at various City sites, in an amount not to exceed $18,042,746, which includes a contingency of $3,007,125, for a three-year term beginning November 1, 2022 and expiring October 31, 2025, with an option for two, one-year extensions, subject to nonsubstantive changes approved by the City Manager and the City Attorney (Agreement No. 2022-201).

Moved by Councilmember Penaloza, seconded by Mayor Pro Tem Bacerra to approve Item 14.

YES: 6 – Councilmember Hernandez, – Councilmember Lopez, – Councilmember Mendoza, – Councilmember Penaloza, – Councilmember Phan, – Mayor Pro Tem Bacerra
NO: 1 – Mayor Sarmiento
ABSTAIN: 0
ABSENT: 0
Status: 6 – 1 – 0 – 0 – Pass

15. Authorize Two Purchase Agreements in the Amount of $1,535,000 for Full Real Property Acquisition for Warner Avenue Improvements Phase 2 (Property Owners: Le City Council 8 – 27 5/16/2023
City Council 12 10/18/2022
and Martinez) (Project No. 18-6901) (Non-General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute a purchase agreement with Vivian Montejano Martinez for the full acquisition and goodwill (if any) of the property located at 2245 S Hickory Street (APN 016-104-28) in the amount of $725,000, subject to non-substantive changes approved by the City Manager and the City Attorney (Agreement No. 2022-202).

2. Authorize the City Manager to execute a purchase agreement with Huyn T. Le and My Nguyen, husband and wife, and Hien The Le, a single man, as joint tenants, for the full acquisition and goodwill (if any) of the property located at 2247 S Cedar Street (APN 016-212-26) in the amount of $810,000, subject to non-substantive changes approved by the City Manager and the City Attorney (Agreement No. 2022-203).

16. Approve Agreements with A-Tech Consulting, Inc., Dudek, and Leighton Consulting Inc. for On-Call Various Environmental Services in an Amount Not to Exceed $135,000 for Each Specialty Area for Three-Year Terms (Non-General Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with ATech Consulting, Inc., Dudek, and Leighton Consulting Inc., to provide environmental site assessments and hazardous materials survey services in a shared aggregate amount not to exceed $135,000 annually for each specialty area, for a three-year term beginning October 18, 2022 and expiring October 17, 2025, with an option for two, one-year extensions, subject non-substantive changes approved by the City Manager and the City Attorney ( Core Agreement No. 2022-204).

Moved by Councilmember Penaloza, seconded by Mayor Pro Tem Bacerra to approve Item 16.

17. Approve Agreements with P2S, Inc. and SMAART POWER for Arc Flash Analysis and Electrical Safety Program Development for a Total Amount not to Exceed $500,000 for up to a Five-Year Term (Non-General Fund)
Department(s): Public Works Agency
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City Council 12 10/18/2022
Recommended Action: Authorize the City Manager to execute an agreement with P2S, Inc. and SMAART POWER, LLC for arc flash analysis and electrical safety program development for a three-year period, beginning October 18, 2022 and expiring October 17, 2025, with provisions for one, two-year renewal period exercisable by the City Manager and City Attorney, with a shared aggregate amount not to exceed $500,000, subject to non-substantive changes approved by the City Manager and the City Attorney (Core Agreement No. 2022-205).

Moved by Councilmember Penaloza, seconded by Mayor Pro Tem Bacerra to approve Item 17.

18. Historic Property Preservation Agreements
Department(s): Planning and Building Agency
Recommended Action: Authorize the City Manager or designee to execute the attached Mills Act agreement with the below-referenced property owners for the identified structure(s), subject to non-substantive changes approved by the City Manager and City Attorney.

Property Owner(s), Historic Property Preservation Agreement No., Address/House, Vote by HRC

1. Benjamin and Catherine Mayberry, 2022-03, 2405 N Bonnie Brae, 6:1:0:2 (Pena Sarmiento and Shipp Absent) (Agreement No. 2022-206)

2. Duane Rohrbacher and Shannon Quihuiz, 2022-05, 419 E. Wellington Avenue, 7:0:0:2 (Pena Sarmiento and Shipp Absent) (Agreement No. 2022-207)

3. Eriq Dominguez, 2022-13, 2222 N Ross Street, 7:0:0:2 (Pena Sarmiento and Shipp Absent) (Agreement No. 2022-208)

4. Mark and Wendy Blalock, 2022-14, 1720 N Olive Street, 7:0:0:2 (Pena Sarmiento and Shipp Absent) (Agreement No. 2022-209)

5. Yi Ran and Tom Nguyen, 2022-15, 1802 N Ross Street, 7:0:0:2 (Pena Sarmiento and Shipp Absent) (Agreement No. 2022-210)

6. Marny Gae Renteria, 2022-16, 1128 W Riviera Drive, 7:0:0:2 (Pena Sarmiento and Shipp Absent) (Agreement No. 2022-211)

7. Katherine Canada, 2022-17, 2425 N Valencia Street , 7:0:0:2 (Pena Sarmiento City Council 8 – 29 5/16/2023
City Council 12 10/18/2022
and Shipp Absent) (Agreement No. 2022-212)

19. Approve Second Amendment to the Agreement with Siemens Industry, Inc. in the amount of $37,000 for Public Safety Video Surveillance System Repairs (General and Non-General Fund)
Department(s): Police Department
Recommended Action: Authorize the City Manager to execute a second amendment to the agreement with Siemens Industry, Inc. in an amount not to exceed $37,000 forrepairs and replacement of surveillance camera components, for a total aggregate amount not to exceed $3,419,870 during the term of the agreement, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2022-213).

20. Agreement with Seaside Ice, LLC, dba Ice-America, for a Seasonal Ice Rink and Related Services (General Fund)
Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute an agreement with Seaside Ice, LLC, dba Ice-America, for a total amount not to exceed $707,062, which includes the base amount of $646,462 and a contingency amount of $60,600, for a term beginning October 18, 2022 and ending January 31, 2023, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2022-214).

21. Second Reading of Ordinance amending the Rent Stabilization and Just Cause EvictionOrdinances
First reading at the October 4, 2022 City Council meeting and approved by a vote of 4-3 (Bacerra, Mendoza and Penaloza dissented)
Published in the Orange County Reporter on October 7, 2022.

Department(s): Community Development Agency
Recommended Action: NS-3027 – Place Ordinance amending the Rent Stabilization and Just Cause Eviction Ordinances on second reading and adopt.

Moved by Councilmember Penaloza, seconded by Mayor Pro Tem Bacerra to approve Item 21.

22. Discuss Draft Ordinance Establishing a Police Oversight Commission and Provide Direction to Staff
Department(s): City Manager Office
Recommended Action: Discuss a draft ordinance establishing a police oversight commission and provide direction to staff.

MINUTES: Senior Management Analyst Daniel Soto provided a brief presentation.

Mayor Sarmiento requested the strongest powers allowable within existing laws and requested the next step include the ordinance for discussion and possible approval.

Councilmember Lopez requested inclusion of some items from the communityadvocated ordinance and provided thoughts regarding specific language in the draft ordinance.

Councilmember Hernandez concurred with Mayor Sarmiento and Councilmember Lopez’s comments and expressed concerns with the independent nature of the proposed Commission, access to records, and powers allowed to the Commission.

Councilmember Phan addressed various components of the model ordinance provided by the community, the multiple steps required to fully implement this process, and how complaints would be reviewed.

Councilmember Penaloza felt it was important to move forward with the current model before them as other changes would require a charter amendment and addressed components of the proposed ordinance.

Mayor Pro Tem Bacerra discussed the process involved with this item and believed the ordinance and commission would continue to grow and evolve over time after its initial approval and creation. He requested the Ad Hoc Committee reconvene to continue reviewing this item going forward.

Councilmember Mendoza expressed support for the Police Oversight Commission, by-ward membership, and professional guidance.

Mayor Sarmiento reiterated his initial comments about expansive powers subject to existing laws and requested the ordinance return for Council consideration by November 1, 2022.City Attorney Sonia Carvalho summarized Council direction.

BUSINESS CALENDAR
City Council 8 – 31 5/16/2023
City Council 12 10/18/2022
**END OF BUSINESS CALENDAR**

PUBLIC HEARINGS
PUBLIC COMMENTS – Members of the public may address the City Council on Public Hearing items.

23. Public Hearing – Report on Water Quality Relative to Public Health Goals Legal Notice published in the Orange County Reporter on October 7, 2022.

Department(s): Public Works Agency
Recommended Action: Receive and file the Report on Water Quality Relative to Public Health Goals.

MINUTES: Mayor Sarmiento opened the Public Hearing at 10:47 P.M. and, seeing no public speakers, closed the Public Hearing at 10:48 P.M.

Moved by Councilmember Hernandez, seconded by Councilmember Mendoza to approve Public Hearing Item 23.

COUNCILMEMBER REQUESTED ITEMS

24. Discuss and Consider Directing the City Manager to Direct Staff to Bring Back a Resolution Opposing the County of Orange from Operating any Cold Weather Shelter within Santa Ana City Limits and Encourage the County to Rotate the Annual Cold Weather Shelter Throughout Different Cities within the Different Service Planning Areas (SPA's) - Councilmember Penaloza
MINUTES: Councilmember Penaloza spoke in support of the item and requested that the item be brought back for consideration on November 1, 2022.

Mayor Sarmiento spoke in support of the item and thanked staff for their work related to homelessness and meeting with Judge Carter.

Mayor Pro Tem Bacerra spoke in support of the item and in support of permanent supportive housing.

Councilmember Hernandez spoke in support of the item.

City Council 8 – 32 5/16/2023
City Council 12 10/18/2022
Councilmember Lopez spoke in support of the item.

Councilmember Mendoza spoke in support of the item.

Councilmember Phan expressed support for the item.

CITY MANAGER COMMENTS
MINUTES: City Manager Kristine Ridge reminded the Council that Judge Carter requested the attendance of South County leaders at the hearing scheduled to take place on Friday, October 21, 2022 at 3:00 P.M.

COUNCIL COMMENTS
AB1234 DISCLOSURE – If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended.

MINUTES: Councilmember Hernandez requested the meeting be adjourned in memory of Art Lebeau.

Councilmember Lopez announced that her office is partnering with OC Habitat to host a park cleanup and wished everyone a Happy Halloween.

Councilmember Mendoza reminded the public of the upcoming Dia De Los Muertos, taking place on Sunday, October 23, 2022, at the Orange County Heritage Museum.

Councilmember Penaloza spoke regarding concerns raised by Delhi and Madison Park community members related to construction on Warner Avenue and the use of City properties for construction equipment storage.

Councilmember Phan reminded the community that the federal student loan debt relief website is live and can be accessed via “studentaid.gov”. She also announced her participation at the UCLA Housing Symposium, in Lake Arrowhead, California. She congratulated her sister on opening her optometrist office.

Mayor Pro Tem Bacerra thanked the community, staff, and the Santa Ana Police Department for their presence at the community meeting regarding the flood control channel along Flower Street, which took place at Saddleback High School. He asked for more drive-through patrols of the trail along Bristol Street between Flower Street and Alton Avenue. He also expressed his gratitude towards the Public Works Department for all their work on the Bristol and Alton Bike Lane.

Mayor Sarmiento spoke regarding the potential Orange County Transportation Authority workers’ strike and its effects on Santa Ana. He requested that staff add the Anti-Cruising Ordinance to the future items list. He wished everyone a Happy Halloween and Dia de los Muertos.

City Council 8 – 33 5/16/2023
City Council 12 10/18/2022
ADJOURNMENT – Adjourn the City Council meeting.

MINUTES: Mayor Sarmiento adjourned the meeting at 10:54 P.M.

Respectfully submitted,
Jennifer L. Hall, CMC
City Clerk
City Council 8 – 34 5/16/2023
Community Development Agency
www.santa-ana.org/community-development
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Rental Registry Fee Study

AGENDA TITLE
Receive and File the Rental Registry Fee Study

RECOMMENDED ACTION
Receive and file the Rental Registry Fee Study identifying the appropriate Rental Registry Fee to recover all costs associated with the Rent Stabilization and Just Cause Eviction Ordinance.

DISCUSSION
On October 18, 2022, the City Council adopted the Rent Stabilization and Just Cause Eviction Ordinance (“Ordinance”). The Ordinance requires the creation of a rental registry, which is a portal where landlords register their rental units, update rental unit information, update tenancy information, submit notices, and pay a Rental Registry Fee.

Per the Ordinance, effective July 1, 2023, the City must create a rental registry and all landlords with rental units in the City must complete and submit registration forms for each of their rental units.

In addition, effective July 1, 2023, an annual Rental Registry Fee will be imposed on each rental unit in the City that is subject to the Ordinance. All landlords with rental units that are subject to the Ordinance must pay the Rental Registry Fee as established by the City Council. The purpose of the Rental Registry Fee is to fund the City’s costs to implement, administer, monitor, support, and enforce the Ordinance. The amount of the Rental Registry Fee must be determined by resolution of the City Council and set forth in the City’s Fiscal Year 2023-24 Miscellaneous Fees Schedule. The Fee must not exceed the amount found by the City Council to be reasonable and necessary to administer the Ordinance.

To fulfill this statutory requirement, on November 18, 2022, staff issued a Request for Proposals (No. 22-155) from qualified firms to conduct a comprehensive fee study to determine appropriate program fees that would recover all program costs associated with services provided under the Ordinance. The Program fees include, but are not limited to, a Rental Registry Fee and three petition fees (Fair Return Petition, Capital Improvement Petition, and Tenant Petition). Following this competitive procurement City Council 9 – 1 5/16/2023
Rental Registry Fee Study
May 16, 2023

Page 2 ends

process, Revenue & Cost Specialists (“RCS”) was selected by the City. RCS entered into an Agreement with the City effective January 3, 2023 to conduct this fee study.

In compliance with the Ordinance, staff is now providing the Rental Registry Fee Study to City Council as Exhibit 1. The Rental Registry Fee Study identifies the appropriate Rental Registry Fee to recover all costs associated with the Ordinance and the Rent Stabilization Program. Under Section 50076 of the California Government Code, fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service or regulatory activity for which the fee is charged and which is not levied for general revenue purposes. In compliance with this law, RCS conducted this Rental Registry Fee Study on behalf of the City.

The Rent Stabilization Program’s annual cost is approximately $3.24 million and includes 14.4 full-time equivalent City employees, plus contractual support for hearings, appeals, education and outreach, translation services, equipment, and technology.

Appendix E of the Rental Registry Fee Study provides the Work Plan to justify and support this annual cost. The Work Plan served as the baseline of information used by RCS to establish a Rental Registry Fee to offset and ultimately fully recover the costs for the administration and enforcement of the Ordinance. Most cities that have adopted rent stabilization programs have established annual rental registry fees to recover their costs for program administration and enforcement. Based on this precedence, user fees are established in circumstances such as this, where unique benefits are established for a subset of individuals. Under the law, such fees must bear a nexus to the actual costs incurred in administering the program. The Rental Registry Fee Study and Work Plan is intended to serve as the nexus for the development of the Rental Registry Fee to support the administration and enforcement of the Ordinance.

Based on the amount of activity projected for the number of rental units in Santa Ana, staffing the Rent Stabilization Program with 14.4 full-time equivalent City employees is appropriate and reasonable for the City. Based upon the Rental Registry Fee Study, RCS recommends Option 1 below:

Option 1: Single Rental Registry Fee (Petition Fees included in the Rental Registry Fee) Fee Title Suggested Fee # of Units Revenue
Annual Registration $100 per unit 32,450 $3,245,000
After timely payment of the Rental Registry Fee, the landlord may pass through up to fifty percent of the Rental Registry Fee to tenants of the applicable rental unit, to be paid by the tenant in 12 equal monthly installments (Section 8-3161(d)). This is equal to $4.17 per month to be paid by the tenant.

Options 2 and 3 below were developed to meet the request of the City Council to present the following options as it relates to the fees associated with a Fair Return Petition, Capital Improvement Petition, and Tenant Petition:

Option 1. Financial impact of having petition fees included in the Rental Registry Fee; City Council 9 – 2 5/16/2023
Rental Registry Fee Study
May 16, 2023

Page 3 ends

Option 2. Financial impact of having petition fees separate from the Rental Registry Fee; or Option 3. Financial impact of having no petition fees.

Option 3: No Petition Fees
Fee Title Suggested Fee # of Units/Petitions Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $0 per petition 4 Petitions $0
Capital Improvement Petition $0 per petition 4 Petitions $0 Tenant Petition $0 per petition 958 Petitions $0
Total
$2,794,654
-$3,245,000
(-$450,346)
Under Option 3, the removal of petition fees results in an annual operating deficit of up to ($450,346) to pay for all costs associated with the Ordinance. As a result, the City’s General Fund would have to annually subsidize the petition fees with up to $450,346 to ensure the Rent Stabilization Program can process Fair Return Petitions, Capital Improvement Petitions, and Tenant Petitions as required under the Ordinance. Fair Return Petitions are a constitutional right for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions are available options for landlords and tenants in the Ordinance.

Based upon the Rental Registry Fee Study, staff recommends a Rental Registry Fee of $100 per unit (Option 1). This new Rental Registry Fee of $100 per unit provides a simple streamlined fee for tenants and landlords that includes all of the costs to implement, administer, monitor, support, and enforce the Ordinance, while supporting cost recovery and no impact to the City’s General Fund. This Rental Registry Fee also adheres to the principles approved by the City Council on September 6, 2022 for the Rental Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants and landlords; to blend a hybrid of services between consultants and City staff; and builds upon other existing services across the City to administer the Ordinance.

City Council 9 – 3 5/16/2023
Rental Registry Fee Study
May 16, 2023

Page 4 ends

Next Steps
Following the City Council receiving and filing this Rental Registry Fee Study, staff will return to the City Council with the new Rental Registry Fee of $100 per unit incorporated into the FY 2023-24 Miscellaneous Fees Schedule.

FISCAL IMPACT
Staff recommendations for a Rental Registry Fee of $100 per unit and the spending plan have been included in the City Manager’s proposed budget for FY 2023-24. If the City Council directs staff to make changes, then staff will update the proposed budget accordingly.

EXHIBIT(S)

1. Rental Registry Fee Study
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager
City Council 9 – 4 5/16/2023
Copyright, 2023 by Revenue & Cost Specialists
Cost of Services
Study for the
City of Santa Ana
March 17, 2023
Prepared by:

Revenue & Cost Specialists, LLC
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
www.revenuecost.com
EXHIBIT 1
City Council 9 – 5 5/16/2023
City of Santa Ana Rent Stabilization Program Fee – March 2023

City Council 9 – 6 5/16/2023
City of Santa Ana Rent Stabilization Program Fee – March 2023 March 17, 2023
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Honorable Mayor, City Council, and City Manager:

On October 18, 2022, the City Council adopted the Rent Stabilization and Just Cause Eviction Ordinance (“Ordinance”). The Ordinance includes a rental registry, which is a portal where landlords register their rental units, update rental unit information, update tenancy information, submit notices, and pay the Rental Registry Fee. Per the Ordinance, effective July 1, 2023, the City shall create a rental registry and all landlords with rental units in the City shall complete and submit registration forms for each of their rental units.

In addition, effective July 1, 2023, or as modified by resolution of the City Council, an annual Rental Registry Fee shall be imposed on each rental unit in the City. All landlords with rental units that are subject to the Ordinance shall pay the Rental Registry Fee as established by the City Council. The Rental Registry Fee is to fund the City’s cost to implement, administer, monitor, support, and enforce the provisions of the Ordinance. Regarding the amount of the fee, a landlord shall pay to the City a Rental Registry Fee for each of the landlord’s rental units in the City. The amount of the Rental Registry Fee shall be determined by resolution of the City Council adopted from time to time and set forth in the City’s Miscellaneous Fee Schedule. The Fee shall not exceed the amount found by the City Council to be necessary to administer the provisions of the Ordinance, and the City Council’s findings in this regard shall be final.

To fulfill this statutory requirement, on November 18, 2022, the City of Santa Ana issued a Request for Proposals No. 22-155 seeking proposals from qualified firms to conduct a comprehensive fee study to determine appropriate program fees that would recover all program costs associated with services provided under the Ordinance. The Program fees include but are not limited to a Rental Registry Fee and three petition fees (Fair Return Petition, Capital Improvement Petition and Tenant Petition). Following this competitive procurement process, Revenue & Cost Specialists (“RCS”) was selected and approved by the City and entered into an Agreement with the City effective January 3, 2023 to conduct this Fee Study.

RCS is now providing the City of Santa Ana (“City”) with a comprehensive Fee Study identifying the appropriate fee(s) to recover all costs associated with the Rent Stabilization and Just Cause Eviction City Council 9 – 7 5/16/2023
City of Santa Ana Rent Stabilization Program Fee – March 2023 Ordinance (“Ordinance”), and the Rent Stabilization Program (“RSP”). [Ordinance and RSP may be used interchangeably throughout this Fee Study.]
The Rent Stabilization Program’s annual cost is approximately $3.24 million and includes 14.4 full time equivalent city employees, plus contractual support for hearings, appeals, education & outreach, on-call translation services, equipment and technology. Based upon this Fee Study, RCS recommends Option 1 below:

Option 1: Single Rental Registry Fee (Petition Fees Included in the Rental Registry Fee) Fee Title Suggested Fee # of Units Revenue
Annual Registration $100 per unit 32,450 $3,245,000
After timely payment of the Rental Registry Fee, the landlord may pass through up to fifty percent (50%) of the Rental Registry Fee to tenants of the applicable rental unit, to be paid by the tenant in twelve (12) equal monthly installments (Section 8‐3161(d)). This is equal to $4.17 per month to be paid by the tenant.

Option 2: Petition Fees Separate from the Rental Registry Fee Fee Title Suggested Fee
# of Units/
Petitions
Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $21,357 per petition 4 Petitions $85,428 Capital Improvement Petition $13,442 per petition 4 Petitions $53,768 Tenant Petition $350 per petition 958 Petitions $311,150 Total: $3,245,000
Option 3: No Petition Fees
Fee Title Suggested Fee
# of Units/
Petitions
Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $0 per petition 4 Petitions $0
Capital Improvement Petition $0 per petition 4 Petitions $0 Tenant Petition $0 per petition 958 Petitions $0
Total:
$2,794,654
-$3,245,000
(-$450,346)
Under Option 3, the removal of petition fees results in an annual operating deficit of up to ($450,346) to pay for all costs associated with the Rent Stabilization and Just Cause Eviction Ordinance. As a result, the City’s General Fund would have to annually subsidize the petition fees with up to $450,346 in order to ensure the Rent Stabilization Program can process Fair Return Petitions, Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a constitutional right City Council 9 – 8 5/16/2023
City of Santa Ana Rent Stabilization Program Fee – March 2023 for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions are available options for landlords and tenants in the Ordinance.

Since the Rent Stabilization Program is a new endeavor for the City, reasonable and evidence-based assumptions were made in the areas of staff time allocation and number of task participants. Where possible, we benchmarked with data from other cities’ that have a rent stabilization ordinance. Our Fee Study focused on calculating the lowest fee reasonably possible to operate the Rent Stabilization Program successfully. Our Fee Study also adheres to the principles approved by City Council for the Rental Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants and landlords; to blend a hybrid of services between consultants and City staff; and builds upon other existing services across the City to administer the Ordinance.

RCS wants to thank Judson Brown, Housing Division Manager, and his team within the Community Development Agency, for providing the crucial information needed to complete this Fee Study.

Respectfully submitted,

ERIC JOHNSON CHU THAI
President Partner
City Council 9 – 9 5/16/2023
City of Santa Ana Rent Stabilization Program Fee – March 2023 Table of Contents
CHAPTER I – THE NEED FOR USER FEES ________________________________________________________________ 7 CHAPTER II – IDENTIFYING THE COST OF SERVICES _________________________________________________ 10 CHAPTER III – ALLOCATING TIME TO SERVICES ______________________________________________________ 13 CHAPTER IV – COST RECOVERY RECOMMENDATIONS _______________________________________________ 22 APPENDIX A – STAFF TIME ALLOCATION SUMMARY ________________________________________________ 25 APPENDIX B – PROGRAM TASK COST SUMMARY _____________________________________________________ 27 APPENDIX C – PROGRAM TASK COST DETAILS _______________________________________________________ 29 APPENDIX D – ESTIMATED RENTAL UNITS ___________________________________________________________ 58 APPENDIX E – WORK PLAN DATED JANUARY 17, 2023 ______________________________________________ 60 APPENDIX F – RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE ___________________ 86 City Council 9 – 10 5/16/2023
Pg. 07 CHAPTER I – THE NEED FOR USER FEES
City of Santa Ana Rent Stabilization Program Fee – March 2023 CHAPTER I – THE NEED FOR USER FEES
Impact of Propositions 13, 4, 218 and 26
Proposition 13 was passed by California voters in 1978, forever changing city budgets. Prior to 1978, cities and counties balanced their budgets with a property tax formula. The property tax which property owners paid could increase dramatically year over year, creating hardship for those with fixed incomes. Proposition 13 capped property tax rates at 1%, with annual inflation increase of no more than 2%. The passage of Proposition 13 immediately reduced property tax payments from homes, businesses and farms by 57%.

The following year, Proposition 4 was passed primarily to clean up language related to taxes and appropriations limits after the wake of Proposition 13. However, there is one phrase in section 8(c) of the proposition text which better defines user charges and user fees:
“Proceeds of taxes” shall include, but not be restricted to, all tax revenues and the proceeds to an entity of government, from (1) regulatory licenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that entity in providing the regulation, product, or service…” Restated, any proceeds from user charges and user fees which exceed the “costs reasonably borne” are considered taxes. The legal ability for government agencies to charge fees in California in the City Council 9 – 11 5/16/2023
Pg. 08 CHAPTER I – THE NEED FOR USER FEES
City of Santa Ana Rent Stabilization Program Fee – March 2023 wake of all of the changes wrought by Proposition 13 comes out of that little phrase. The importance, and the deeper meaning, is detailed in this section of the author’s intent documents:
“The phrase ‘costs reasonably borne by such entity in providing the regulation, product, or service’ is intended to incorporate all appropriations by an entity for reasonable costs appropriate for the continuation of service over time. This includes ongoing expenses such as operation costs and a reasonable allocation for overhead and administration, but it also includes responsible allocations for capital replacement, expansion of services, and repayment of related bond issuances would be considered ‘costs reasonably borne’.”
Then, Proposition 218, passed in 1996 and became Articles XIIIC & D, further restricting municipal utility rates charged on property owners. Prop 13, 4 and 218 have had, and will continue to have, a profound effect on California governments.

But it was left to the passage of Proposition 26, passed in 2010, to codify many of the fee setting practices of the previous 30 years. Article XIII C of the State Constitution was amended to formally declare that fees are not considered taxes if they do not exceed the reasonable costs of the service.

Government Code Section 66014 further defined that statement for development fees.

Some of the types of services for which reasonable fees are allowable are:
 A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.  A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.  A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.

Article XIII C also provides that a local government agency must demonstrate that the amount of revenue to be generated by a fee is no more than necessary to cover the reasonable costs of the governmental activity supported by the fee, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received City Council 9 – 12 5/16/2023
Pg. 09 CHAPTER I – THE NEED FOR USER FEES
City of Santa Ana Rent Stabilization Program Fee – March 2023 from, the governmental activity. For example, a fee on liquor store owners to fund an alcohol education program would not be allowed.

While Proposition 26 was built on the foundations of Propositions 4 and 218, it provided a sharper definition of the reach and limits of service fees, and the courts have looked to it when reviewing fee challenges.

Legal Approach to User Fees
This Fee Study presents the analytical advantages which are available to the City through the institution of a comprehensive system designed by RCS to implement Article XIIIB of the California Constitution.

Systematic and Documented Approach. This analysis was designed to provide the City with a systematic and documented approach to understand, control, and recapture the costs which are forced on it by normal service demands, growth and general economic inflation.

Constitutional Methodology. The methodology used for this analysis is the "costs reasonably borne" test established by Section 8(c) of Proposition 4, now Article XIIIB of the California Constitution. In following that process, RCS has analyzed the ways in which City services can be financed more equitably to assure the City's future financial viability.

Full Business Costs Determined. The methodology followed by both the Authors of Proposition 4, and consequently by RCS, determines the full business cost of providing the reported City services.

It also identifies the beneficiaries of those services and determines if they are paying in relationship to benefits derived or if they are deserving of a subsidy paid from the taxes paid by all local citizens and businesses. Thus, the City Council will have full knowledge and cannot ignore costs which are actually occurring.

Financial Integrity Established. This text summarizes the work accomplished and presents recommendations. These recommendations, if implemented, would firmly establish the financial integrity of the analyzed City services and would establish a continuing cost control system following the business principles which are generally espoused for government, but often are ignored in application.

City Council 9 – 13 5/16/2023
Pg. 10 CHAPTER II – IDENTIFYING THE COST OF SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 CHAPTER II – IDENTIFYING THE COST OF

SERVICES
The costs determined by RCS for the various services are based on the definitions of “costs reasonably borne” as utilized in Article XIIIB (Proposition 4) and as further defined by its authors in their background documents. The following are generally accepted elements of "costs reasonably borne."
Cost of Services
a) Labor costs
b) Employee benefit costs
c) Operational services and supply expenses
d) Overhead expense
e) Administrative costs
f) Start-up costs
g) Future capital and replacement expenses
h) Costs of expansion of services
i) Repayment of debt
Table 1: Salary & Employee Benefits Costs
Program Staffing
# of FTE
Employees
Salary
Costs
Benefit
Costs Total Costs
RSP Board & Management
Division Manager 1.0 170,390 50,535 220,925
Commission Secretary 1.0 68,950 26,734 95,684
Program Administrative Unit
Housing Programs Coordinator 1.0 108,348 42,010 150,358 Housing Programs Analysts 2.0 190,540 73,879 264,419
Management Analyst 1.0 84,233 24,982 109,215
Senior Office Assistant 1.0 57,017 22,107 79,124
Legal Unit
Assistant City Attorney 1.0 130,668 38,754 169,422
Deputy City Attorneys 2.0 204,096 60,532 264,628
Senior Paralegal 1.0 80,424 33,666 114,090
Other City Staffing
Executive Director of Comm. Dev. 0.2 39,398 10,873 50,271 Administrative Services Manager 0.2 32,628 9,677 42,305 Accountant II 0.5 40,212 15,592 55,804
Senior Accounting Assistant 0.5 29,292 11,358 40,650
Code Enforcement Officers 2.0 147,360 57,137 204,497
*Total Program Staffing 14.4 $1,383,556 $477,836 $1,861,392 *The Work Plan includes a detailed description of the functions and responsibilities for each position required to implement, administer, monitor, support, and enforce the provisions of the Ordinance.

City Council 9 – 14 5/16/2023
Pg. 11 CHAPTER II – IDENTIFYING THE COST OF SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 Labor and Employee Benefit Costs - The City provided RCS with its Work Plan for the Rent Stabilization and Just Cause Eviction Ordinance (“Work Plan”), dated January 17, 2023. The Work Plan is attached as Appendix E. The Work Plan outlines the necessary staffing, and the essential job functions and responsibilities for each position needed to implement, administer, monitor, support, and enforce the provisions of the Ordinance. RCS calculated the labor costs based on Santa Ana’s methodology for estimating vacant positions. We calculated the employee benefit costs based on the average fringe benefit percentage of each bargaining group.

Operational Services and Supply Expenses - Various contracted services and operating expenses are essential to the Rent Stabilization Program. These include the need for a hearing officer and mediator, rental registry software, education & outreach services, and on-call translation services.

Other expenses include insurance, rent and advertising.

Overhead Expenses and Administrative Costs - The purpose of deriving overhead costs is to apportion these amounts to direct service program costs. By adopting this method, the City will be aware of its true costs and be able to mirror business methods.

Santa Ana administrative agencies (ex. Finance and Management Services, Human Resources, City Attorney’s Office) support other agencies (ex. Community Development Agency, Planning and Building, Police Department) without providing a deliverable service to the public. The City produces and updates its Cost Allocation Plan (“CAP”) annually to determine the overhead cost provided by the administrative agencies. The CAP includes the following citywide functions:
 City Manager, City Clerk, City Attorney
 Human Resources, Finance and Treasury
 Municipal Utility Services, Central Services
 City Hall Depreciation, Equipment Use Charge and Other Building Use Charge For this fiscal year, the Community Development Agency was calculated an overhead rate of

15.91% for salaries. Therefore, the Rent Stabilization Program’s general city overhead is $220,124.

The Rent Stabilization Program budget includes other administrative costs for insurance, IT maintenance and benefit costs.

Startup Costs – The RSP budget includes costs which are one-time and ongoing. For example, the City entered into an Agreement with RSG, Inc. (“RSG”) to assist with program implementation and administration, and it is reasonable to assume the need for these services will lessen as permanent staff is hired. Costs associated with education and outreach, specialized legal services, and on-call translation may continue in future years, based on demand and other factors.

City Council 9 – 15 5/16/2023
Pg. 12 CHAPTER II – IDENTIFYING THE COST OF SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 Future Capital and Replacement Expense, Costs of Expansion of Services, and Repayment of Debt – None of these costs apply to the Rent Stabilization Program.

Combined, the full cost for the Rent Stabilization Program is $3.24 million per year. Table 2 below shows the line-item budget for the Rent Stabilization Program’s first year of operations.

Table 2: Rent Stabilization Program Budget
Account Projected
RSP Budget
61000-Salaries Regular $1,383,556
6xxxx-Fringe Benefits 477,836
62010-Communications 1,650
62012-Cellular Phone Charges 3,600
62120-Training, Transportation, Meetings 10,000
62130-Tuition Reimbursement 1,500
62140-Membership, Subscription & Dues 2,500
62200-Advertising 5,000
62300-Contract Services-Professional 100,000
623xx-Contract Services-Mediation & Hearing 267,340
623xx-Contract Services-3Di Rental Registry 85,000
623xx-Contract Services-On Call Translation Svcs. 25,000 623xx-Contract Services-Specialized Legal Svcs. 50,000
623xx-Contract Services- RSG Addl. Contract Svcs. 500,000 62500-Rent Payments 85,203
62600-Parking Validation 250
62700-Auto Expense 250
63001-Miscellaneous Operating Expenses 10,500
65040-IT Maintenance Charge 8,210
65100-Insurance Charges 5,650
65105-Benefits Overhead 830
65400-Indirect Costs (CAP) 220,124
Total $3,244,000
City Council 9 – 16 5/16/2023
Pg. 13 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 CHAPTER III – ALLOCATING TIME TO SERVICES
Available Work Hours
The available work hours by position are based on current labor contracts. Available work hours were calculated as the total possible work-hours in a year (2,080) minus the away-from-work benefit hours from holidays, vacations, personal leave, sick leave, morning/afternoon breaks, and start up/down time.

Table 3: Available Work Hours
Group Starting Hours
Available Work
Hours
Executive Management
(Executive Director of Community Development)
2,080 1,635
SAMA - Middle Management /Administrative
Management Association
(Administrative Services Manager, Assistant City
Attorney, Deputy City Attorney, Division Manager,
Management Analyst)
SEIU – General Employees
(Accountant II, Code Enforcement Officer, Commission
Secretary, Housing Programs Analyst, Housing
Programs Coordinator, Senior Accounting Assistant,
Senior Office Assistant)
CASA Confidential Association
(Senior Paralegal) 2,080 1,627
The 14.4 full-time equivalent city employees within the Rent Stabilization Program equals 23,541 total available work hours. To validate the reasonableness of the Fee Study, 100% of the available work hours for all City employees must be accounted for, even if it’s not public serving. In other words, one staff member cannot state they overworked on fee services beyond 100% of their hours, and another staff member cannot account for 100% of their time. Their times were distributed to those program tasks where the time would be expended.

Identifying Program Tasks
From reviewing the Rent Stabilization and Just Cause Eviction Ordinance, the Work Plan, and the proposed organizational chart provided by the City, we have divided the Rent Stabilization Program into the following service delivery areas:

Service Delivery Area

1. Rental Registry – Section 8-3160

2. Enforcement and Compliance

3. Notice of Termination of Tenancy/Evictions – Section 8-3121(a)(4) To validate the
reasonableness of
the Fee Study,
100% of the
available work
hours for all RSP
employees were
distributed and
accounted for,
even if it’s not
public serving.

City Council 9 – 17 5/16/2023
Pg. 14 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023

4. Petition Process – Section 8-3145

5. Voluntary Mediation – Section 8-3146(a)

6. Petition Hearings and Appeals – Section 8-3145(f)

7. Rental Housing Board – Section 8-3180

8. Administration (Overhead)
For each of the service delivery areas above, we further identified relevant program tasks. The program tasks were created based on the ability to measure the time of work performed and estimate the number of service recipients. For instance, the Rental Registry applies to all units covered by the city’s Ordinance, while the petition process only applies to those who submit such petitions. Our list of service delivery areas and program tasks also capture 100% of the work to be performed by every staff person within the Rent Stabilization Program.

Allocating Times to Tasks
The following Table 4 below summarizes the times allocated to program tasks. Times are presented as per unit, per week or per year, depending on the frequency that the task is performed. Per unit times multiplied by the number of units equal the total annual time for that project task. Conversely, the annual time, divided by the number of units, gives us the time per task.

Since the Rent Stabilization Program is a new endeavor for the City of Santa Ana, reasonable assumptions were made to the times required for each task. It was a collaborative effort, engaging City staff, RCS’ decades of experience in measuring workflow times, and RSG’s experience in assisting to administer the City’s Ordinance and similar programs in other jurisdictions. We referred to the City’s Rent Stabilization and Just Cause Eviction Ordinance, and reviewed other cites’ rent stabilization program annual reports to identify trends in annual services provided. The allocation of time to tasks required several reviews before everyone was comfortable with the results.

The number of units per year are based on City staff’s experience within the past year, evaluation of other city’s data, and available industry standards. Where the unit per year is 1, that number represents how often that program task is performed. The base number of units covered by the City’s Ordinance is 32,450. See Appendix D – Estimated Rental Units for the details on partially and fully covered rental units. This number was identified by conducting a detailed analysis of the County of Orange tax assessor’s data, ArcGIS, existing City data, and data available through CoStar.

City Council 9 – 18 5/16/2023
Pg. 15 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 Table 4: Allocation of Time (Page 1 of 4)

ALLOCATION OF TIME

PROGRAM TASKS
Housing
Programs
Coordinator
Housing
Programs
Analyst
Management
Analyst
Senior Office
Assistant
1) Rental Registry ‐ Section 8‐3160 10% of time 1% of time 15% of time 15% of time Change of Onwership - Section 8-3160(b) 30 min ea 15 min ea 15 min ea Re-Registration - Section 8-3160(c) 30min/wk 3hrs/wk
Claim of Exemption - Section 8-3160(d) 30min/wk 1hr/wk
Termination of Exemption - Section 8-3160(e) 30min/wk 15min/wk Rental Registry Fee (Collection) - Section 8-3161(a) 5% of time 30% of time Late Fee - Section 8-3161(c)/Settlements/Admin Cite 3hrs/wk General Inquiries (Phone Calls & Walk Ins) 10% of time Remainder 2) Enforcement and Compliance
Inquiry about compliance/violation 30 min ea 10 min ea
Notices of violation/complaints 30 min ea 15 min ea
Investigation of complaints 2hrs ea
Citations, Prosecutions & Litigations 2hrs/wk
Code Enforcement Inspections 1hr/wk 15 min ea
Case correspondence and record keeping 10% of time
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4) Receive and file - Sections 8-3121(a)4) & 8-3149(d) 1hr/wk 4hrs/wk Follow-up on unjust evictions 2hrs/wk 4hrs/wk
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review 8hrs/wk 10hrs/wk
Annual Allowable Rent Adj - Section 8-3140(b) 40hrs/yr 80 hrs/yr 80 hrs/yr 20hrs/yr Fair Return Petition - Section 8-3142 25hrs ea 125hrs ea Capital Improvement Petition - Section 8-3143 15hrs ea 75hrs ea Tenant Petition - Section 8-3144 2hrs/wk 15 min ea
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling 1hr/wk 2hrs/wk 4hrs/wk
Mediation cases heard 1hr/wk 2hrs/wk
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals 1hr ea
Time of Hearing - Section 8-3145(h) 2hrs/wk
Appeal (of decision) - Section 8-3145(q) 2hr ea 1hr ea
7) Rental Housing Board ‐ Section 8‐3180
8) Administration (Overhead) Remainder Remainder Remainder Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
City Council 9 – 19 5/16/2023
Pg. 16 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 Table 4: Allocation of Time (Page 2 of 4)

ALLOCATION OF TIME

PROGRAM TASKS
Contract
Hearing
Officer
Contract
Mediator
Assistant City
Attorney
Deputy City
Attorney
1) Rental Registry ‐ Section 8‐3160
Change of Onwership - Section 8-3160(b)
Re-Registration - Section 8-3160(c)
Claim of Exemption - Section 8-3160(d)
Termination of Exemption - Section 8-3160(e) 4hrs/mo
Rental Registry Fee (Collection) - Section 8-3161(a)
Late Fee - Section 8-3161(c)/Settlements/Admin Cite
General Inquiries (Phone Calls & Walk Ins)
2) Enforcement and Compliance
Inquiry about compliance/violation
Notices of violation/complaints 30 min ea 2hr ea
Investigation of complaints 30 min ea
Citations, Prosecutions & Litigations 2hrs ea 8hrs ea
Code Enforcement Inspections
Case correspondence and record keeping
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4) Receive and file - Sections 8-3121(a)4) & 8-3149(d)
Follow-up on unjust evictions 10hrs/wk 20hrs/wk
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review
Annual Allowable Rent Adj - Section 8-3140(b) 4hrs/yr
Fair Return Petition - Section 8-3142 3hrs ea 5hrs ea
Capital Improvement Petition - Section 8-3143 3hrs ea 5hrs ea Tenant Petition - Section 8-3144 10hrs/wk 20hrs/wk
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling
Mediation cases heard 20hrs/wk
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals
Time of Hearing - Section 8-3145(h) 20hrs/wk
Appeal (of decision) - Section 8-3145(q) 3hrs ea
7) Rental Housing Board ‐ Section 8‐3180 16hrs/mo
8) Administration (Overhead) Remainder Remainder
Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
City Council 9 – 20 5/16/2023
Pg. 17 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 Table 4: Allocation of Time (Page 3 of 4)

ALLOCATION OF TIME

PROGRAM TASKS
Senior
Paralegal
Division
Manager
Commission
Secretary
Code
Enforcement
Officers
1) Rental Registry ‐ Section 8‐3160 10% of time
Change of Onwership - Section 8-3160(b)
Re-Registration - Section 8-3160(c)
Claim of Exemption - Section 8-3160(d) 4hrs/wk
Termination of Exemption - Section 8-3160(e)
Rental Registry Fee (Collection) - Section 8-3161(a) 5% of time Late Fee - Section 8-3161(c)/Settlements/Admin Cite
General Inquiries (Phone Calls & Walk Ins)
2) Enforcement and Compliance
Inquiry about compliance/violation 5 min ea
Notices of violation/complaints 20 min ea 15 min ea 2hrs ea Investigation of complaints 1hr ea 4hrs ea
Citations, Prosecutions & Litigations 8hrs ea
Code Enforcement Inspections 25% of time
Case correspondence and record keeping 25% of time
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4) Receive and file - Sections 8-3121(a)4) & 8-3149(d)
Follow-up on unjust evictions 1hr/wk
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review
Annual Allowable Rent Adj - Section 8-3140(b) 4hrs/yr
Fair Return Petition - Section 8-3142 4hrs ea
Capital Improvement Petition - Section 8-3143 4hrs ea
Tenant Petition - Section 8-3144 8hrs/wk
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling
Mediation cases heard
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals
Time of Hearing - Section 8-3145(h)
Appeal (of decision) - Section 8-3145(q) 3hrs ea 1hr ea 1hr ea 1hr 7) Rental Housing Board ‐ Section 8‐3180 40% of time 75% of time 8) Administration (Overhead) Remainder Remainder Remainder Remainder Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
City Council 9 – 21 5/16/2023
Pg. 18 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 Table 4: Allocation of Time (Page 4 of 4)

ALLOCATION OF TIME

PROGRAM TASKS
Senior
Accounting
Assistant
Accountant
II
Administrative
Services
Manager
Executive
Director of
Comm Dev
Units
Per Year
1) Rental Registry ‐ Section 8‐3160 32,450
Change of Onwership - Section 8-3160(b) 120
Re-Registration - Section 8-3160(c) 10,281
Claim of Exemption - Section 8-3160(d) 4,835
Termination of Exemption - Section 8-3160(e) 240
Rental Registry Fee (Collection) - Section 8-3161(a) 80% of time 20% of time 10% of time 32,450 Late Fee - Section 8-3161(c)/Settlements/Admin Cite 5% of time 5% of time 1,000 General Inquiries (Phone Calls & Walk Ins) 16,225
2) Enforcement and Compliance
Inquiry about compliance/violation 325
Notices of violation/complaints 16
Investigation of complaints 24
Citations, Prosecutions & Litigations 18
Code Enforcement Inspections 208
Case correspondence and record keeping 1
3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4) Receive and file - Sections 8-3121(a)4) & 8-3149(d) 10,281 Follow-up on unjust evictions 103
4) Petition Process ‐ Section 8‐3145
Direct Inquiries & Petition Review 1,388
Annual Allowable Rent Adj - Section 8-3140(b) 1
Fair Return Petition - Section 8-3142 4
Capital Improvement Petition - Section 8-3143 4
Tenant Petition - Section 8-3144 889
5) Voluntary Mediation ‐ Section 8‐3146(a)
Mediation (pre)counseling 103
Mediation cases heard 103
6) Petition Hearings and Appeals – Section 8‐3145(f)
Direct Inquiries for hearings and appeals 45
Time of Hearing - Section 8-3145(h) 897
Appeal (of decision) - Section 8-3145(q) 123
7) Rental Housing Board ‐ Section 8‐3180 1 8) Administration (Overhead) Remainder Remainder Remainder 100% of time 1 Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach - Section 8-3162
Agency Liaison & Regional/State representation
City Council 9 – 22 5/16/2023
Pg. 19 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 With the allocation of time completed, we analyzed the data and tested for reasonableness.

Table 5: Analysis of Time Allocation

TIME ANALYSIS

PROGRAM TASKS
Units Per
Year
Time Per
Unit
(Hours)
Annual
Time
(Hours)
% of Total
Time
Service
Area % of
Total Time
1) Rental Registry ‐ Section 8‐3160 0.02 32,450 850 3.3% 16% Change of Onwership - Section 8-3160(b) 120 0.50 120 0.5% Re-Registration - Section 8-3160(c) 10,281 0.02 182 0.7% Claim of Exemption - Section 8-3160(d) 4,835 0.06 286 1.1% Termination of Exemption - Section 8-3160(e) 240 0.36 87 0.3% Rental Registry Fee (Collection) - Section 8-3161(a) 32,450 0.04 1,505 5.9% Late Fee - Section 8-3161(c)/Settlements/Admin Cite 1,000 0.24 238 0.9% General Inquiries (Phone Calls & Walk Ins) 16,225 0.04 721 2.8% 2) Enforcement and Compliance 10%
Inquiry about compliance/violation 325 0.75 244 1.0%
Notices of violation/complaints 16 5.33 93 0.4%
Investigation of complaints 24 7.50 180 0.7%
Citations, Prosecutions & Litigations 18 18.00 428 1.7% Code Enforcement Inspections 208 4.18 922 3.6%
Case correspondence and record keeping 1 570.30 570 2.2% 3) Notice of Termination of Tenancy/Evictions – Section 8‐3121(a)(4) 9% Receive and file - Sections 8-3121(a)4) & 8-3149(d) 10,281 0.02 260 1.0% Follow-up on unjust evictions 103 17.67 1,924 7.5%
4) Petition Process ‐ Section 8‐3145 18%
Direct Inquiries & Petition Review 1,388 0.67 936 3.7%
Annual Allowable Rent Adj - Section 8-3140(b) 1 188.00 228 0.9% Fair Return Petition - Section 8-3142 4 137.00 648 2.5% Capital Improvement Petition - Section 8-3143 4 87.00 408 1.6% Tenant Petition - Section 8-3144 889 2.47 2,302 9.0%
5) Voluntary Mediation ‐ Section 8‐3146(a) 6%
Mediation (pre)counseling 103 3.03 364 1.4%
Mediation cases heard 103 11.11 1,196 4.7%
6) Petition Hearings and Appeals – Section 8‐3145(f) 10% Direct Inquiries for hearings and appeals 45 1.00 45 0.2% Time of Hearing - Section 8-3145(h) 897 1.28 1,144 4.5% Appeal (of decision) - Section 8-3145(q) 123 10.00 1,476 5.8% 7) Rental Housing Board ‐ Section 8‐3180 2,072.63 1 2,073 8.1% 8% 8) Administration (Overhead) 5,834.53 1 6,191 24.2% 24% City Council 9 – 23 5/16/2023
Pg. 20 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 The data shows that staff resources are divided among the eight service areas. Having 24% for administration (overhead) is typical and reasonable. By completing a comprehensive analysis of time allocation for each program task, we were able to identify the Rental Registry and Petition Process as the most time-consuming services to administer, with a combined 33% of total time spent on these two service delivery areas.

Finally, we compared the staff time allocation to their job functions and responsibilities described in the Work Plan. For example, in the table below the Management Analyst’s job functions are properly allocated 69.9% to the Rental Registry, where they will be responsible for database and financial analysis, and 25.2% towards general administration (overhead). The two Housing Program Analysts’ job functions are properly spread between petition processing, mediation, and reviewing the notices of terminations of tenancy and evictions. The Housing Programs Coordinator’s job functions are correctly spread among all service areas as a supervisor position.

Table 6: Percent of Staff Time (Example from Administrative Unit) We conducted this exercise for all positions in the Rent Stabilization Program, and times were allocated to the correct service areas. See Appendix A – Staff Time Allocation Summary for the other positions.

Fines and Penalties
Section 8-3161(c) of the Ordinance refers to late payment, and states that [a]ny Landlord responsible for paying the Rental Registry Fee who fails to pay the Fee by October 1, or within sixty (60) calendar days of any midyear due date, will be delinquent and shall, in addition to the Fee, pay additional late charges, penalties of assessments as determined by resolution of the City Council. The amount of Rental Registry Fee and any penalty imposed by the provisions of this Article shall be deemed a debt to the City.

Establishing the appropriate fines and penalties is necessary to ensure compliance with the Ordinance. Fines are not governed by Propositions 13, 4, 218 and 26, and the City may set the

PERCENT OF TIME

SERVICE DELIVERY AREA
Housing
Programs
Coordinator
Housing
Programs
Analyst
Management
Analyst
Senior Office
Assistant
1) Rental Registry - Section 8-3160 18.7% 13.4% 69.9% 40.9% 2) Enforcement and Compliance 10.0% 8.1% 0.0% 13.3%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4) 9.5% 12.7% 0.0% 0.0%
4) Petition Process - Section 8-3145 18.6% 46.4% 4.9% 33.0% 5) Voluntary Mediation - Section 8-3146(a) 6.4% 6.4% 0.0% 12.7% 6) Petition Hearings and Appeals –
Section 8-3145(f) 15.0% 8.3% 0.0% 0.0%
7) Rental Housing Board - Section 8-3180 0.0% 0.0% 0.0% 0.0% 8) Administration (Overhead) 21.8% 4.7% 25.2% 0.0%
Total 100.0% 100.0% 100.0% 100.0%
City Council 9 – 24 5/16/2023
Pg. 21 CHAPTER III – ALLOCATING TIME TO SERVICES
City of Santa Ana Rent Stabilization Program Fee – March 2023 terms and amounts to what is appropriate and reasonable for the City. RCS recommends the following fee/late fee for the City based upon best practices from other jurisdictions with a rent stabilization ordinance:

Late Fees starting on October 1 Total Fees & Fines
If paid late, 30 days or less past October 1, add 10% late fee Rental Registry Fee + 10% of remaining balance due
If paid 31 to 60 days past October 1, add 25% late fee Rental Registry Fee + 25% of remaining balance due
If paid after 60 days past October 1, add 50% late fee Rental Registry Fee + 50% of remaining balance due
However, RCS recommends waiving all late fees within the first year (FY 2023/24) as the Rent Stabilization Program is being established. This is common with many city programs, which offer amnesty periods to encourage higher participation. Enforcement of the fines and penalties should resume after the first year, subject to approval by City Council in the Miscellaneous Fee Schedule for FY 24/25.

City Council 9 – 25 5/16/2023
Pg. 22 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
City of Santa Ana Rent Stabilization Program Fee – March 2023 CHAPTER IV – COST RECOVERY

RECOMMENDATIONS
User Fee versus Tax
The Rent Stabilization Program meets the three criteria of a user fee, based on the following:
1) The customer is identifiable
2) The service is measurable
3) The service benefits the individual or group
A tax-based service typically benefits the community as a whole. Police service is a good example of a tax-based service, because it cannot meet the three criteria of a user fee and requires tax revenues to operate.

Fee Options
The Study shows that the service times involved are reasonable. With the amount of activity projected, staffing the Rent Stabilization Program with 14.4 full-time equivalent city employees is appropriate and reasonable for the City of Santa Ana. The Program’s budget is $3.24 Million.

Based upon this Fee Study, RCS recommends Option 1 below:

Option 1. Financial impact of having petition fees included in the Rental Registry Fee; Option 2. Financial impact of having petition fees separate from the Rental Registry Fee; or Option 3. Financial impact of having no petition fees.

City Council 9 – 26 5/16/2023
Pg. 23 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
City of Santa Ana Rent Stabilization Program Fee – March 2023 Option 2: Petition Fees Separate from the Rental Registry Fee Fee Title Suggested Fee
# of Units/
Petitions
Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $21,357 per petition 4 Petitions $85,428 Capital Improvement Petition $13,442 per petition 4 Petitions $72,680 Tenant Petition $350 per petition 958 Petitions $311,150 Total: $3,245,000
Option 3: No Petition Fees
Fee Title Suggested Fee
# of Units/
Petitions
Revenues
Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $0 per petition 4 Petitions $0
Capital Improvement Petition $0 per petition 4 Petitions $0 Tenant Petition $0 per petition 958 Petitions $0
Total:
$2,794,654
-$3,245,000
(-$450,346)
Under Option 3, the removal of petition fees results in an annual operating deficit of up to (-$450,346) to pay for all costs associated with the Rent Stabilization and Just Cause Eviction Ordinance. As a result, the City’s General Fund would have to annually subsidize the petition fees with up to $450,346 in order to ensure the Rent Stabilization Program can process Fair Return Petitions, Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a constitutional right for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions are available options for landlords and tenants in the Ordinance.

Option 1 is recommended to the City of Santa Ana because it provides a simple streamlined fee for program participants that includes all of the costs to implement, administer, monitor, support, and enforce the provisions of the Ordinance, while supporting cost recovery and no impact to the City’s General Fund. Option 1 also adheres to the principles approved by City Council for the Rental Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants and landlords; to blend a hybrid of services between consultants and City staff; and builds upon other existing services across the City to administer the Ordinance.

OTHER CONSIDERATIONS
In considering all options related to the Rental Registry Fee, we also analyzed the number of rental units that would be only partially covered by the Rent Stabilization and Just Cause Eviction City Council 9 – 27 5/16/2023
Pg. 24 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
City of Santa Ana Rent Stabilization Program Fee – March 2023 Ordinance, meaning they are exempt from the Rent Stabilization provisions of the Ordinance, but the Just Cause Eviction provisions apply. Due to the substantially low number of partially covered units (currently less than 633), and the small impact of separating out the fee, this was not considered as a necessary and viable option for the city to explore.

Fee Title Suggested Fee # of Units Revenues
Partially Covered Units $94.97 per unit 633 60,118
Fully Covered Units $100.10 per unit 31,817 3,184,882
Total: $3,245,000

SUPPORTING DOCUMENTATION
The following appendices provide backup documentation that support the Rent Stabilization Program calculated costs throughout this Fee Study.

City Council 9 – 28 5/16/2023
APPENDIX A – STAFF TIME ALLOCATION SUMMARY

Page 25 of 130 ends

City Council 9 – 29 5/16/2023

PERCENT OF TIME

SERVICE DELIVERY AREA
Contract
Hearing Officer
Contract
Mediator
Assistant City
Attorney
Deputy City
Attorney
1) Rental Registry - Section 8-3160 0.0% 0.0% 0.0% 1.5% 2) Enforcement and Compliance 0.0% 0.0% 2.7% 5.7%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4) 0.0% 0.0% 31.8% 31.8%
4) Petition Process - Section 8-3145 0.0% 0.0% 33.5% 33.0% 5) Voluntary Mediation - Section 8-3146(a) 0.0% 100.0% 0.0% 0.0% 6) Petition Hearings and Appeals –
Section 8-3145(f) 100.0% 0.0% 22.6% 0.0%
7) Rental Housing Board - Section 8-3180 0.0% 0.0% 0.0% 5.9% 8) Administration (Overhead) 0.0% 0.0% 9.4% 22.1%
Total 100.0% 100.0% 100.0% 100.0%

PERCENT OF TIME

SERVICE DELIVERY AREA
Senior
Paralegal
Division
Manager
Commission
Secretary
Code
Enforcement
Officers
1) Rental Registry - Section 8-3160 0.0% 15.0% 0.0% 6.4% 2) Enforcement and Compliance 26.8% 1.9% 0.0% 33.3%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4) 0.0% 0.0% 0.0% 1.6%
4) Petition Process - Section 8-3145 0.0% 0.2% 0.0% 13.7% 5) Voluntary Mediation - Section 8-3146(a) 0.0% 0.0% 0.0% 0.0% 6) Petition Hearings and Appeals –
Section 8-3145(f) 22.7% 7.5% 7.5% 3.8%
7) Rental Housing Board - Section 8-3180 0.0% 40.0% 75.0% 0.0% 8) Administration (Overhead) 50.5% 35.3% 17.5% 41.3%
Total 100.0% 100.0% 100.0% 100.0%

PERCENT OF TIME

SERVICE DELIVERY AREA
Senior
Accounting
Assistant Accountant II
Administrative
Services
Manager
Executive
Director of
Comm Dev
1) Rental Registry - Section 8-3160 85.0% 25.0% 10.0% 0.0% 2) Enforcement and Compliance 0.0% 0.0% 0.0% 0.0%
3) Notice of Termination of Tenancy/
Evictions – Section 8-3121(a)(4) 0.0% 0.0% 0.0% 0.0%
4) Petition Process - Section 8-3145 0.0% 0.0% 0.0% 0.0% 5) Voluntary Mediation - Section 8-3146(a) 0.0% 0.0% 0.0% 0.0% 6) Petition Hearings and Appeals –
Section 8-3145(f) 0.0% 0.0% 0.0% 0.0%
7) Rental Housing Board - Section 8-3180 0.0% 0.0% 0.0% 0.0% 8) Administration (Overhead) 15.0% 75.0% 90.0% 100.0%
Total 100.0% 100.0% 100.0% 100.0%

Page 26 of 130 ends

City Council 9 – 30 5/16/2023
APPENDIX B – PROGRAM TASK COST SUMMARY

Page 27 of 130 ends

City Council 9 – 31 5/16/2023
Task Program Task Title Full Cost % of Total
T-100 Rental Registry 195,025
T-101 Change Of Ownership 14,395
T-102 Re-Registration 20,459
T-103 Claim Of Exemption 29,832
T-104 Termination Of Exemption 7,798
T-105 Rental Registry Fee (Collection) 160,303
T-106 Late Payment/Other Finance Transact 24,740
T-107 General Inquiries 72,526
525,078 16%
T-201 Inquiry About Compliance/Violation 30,969
T-202 Notices Of Violation/Complaints 11,946
T-203 Investigation Of Complaints 20,016
T-204 Citations Prosecution & Litigations 54,790
T-205 Code Enforcement Inspections 95,861
T-206 Case Correspondence & Record Keepin 57,734
271,316 8%
T-301 Receive/File T.O.T/Evictions 34,441
T-302 Follow-Up On Unjust Evictions 273,152
307,593 9%
T-401 Direct Inquires & Petition Review 93,773
T-402 Annual Allowable Rent Adjustment 28,036
T-403 Fair Return Petitions 85,427
T-404 Capital Improvement Petitions 53,768
T-405 Tenant Petition 311,283
572,287 18%
T-501 Mediation (Pre)Counseling 37,085
T-502 Mediation Cases Heard 154,706
191,791 6%
T-601 Direct Inquiries For Hearings/Appea 5,803
T-602 Time Of Hearing 147,081
T-603 Appleal (Of Decision) 206,398
359,282 11%
T-700 Rental Housing Board 284,493 9%
T-800 Rent Stabilization Program 732,064 23%
TOTAL BY PROGRAM TASKS $3,243,904 100%

Page 28 of 130 ends

City Council 9 – 32 5/16/2023
APPENDIX C – PROGRAM TASK COST DETAILS

Page 29 of 130 ends

City Council 9 – 33 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
RENTAL REGISTRY T-100
32,450
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION DIVISION MANAGER 10% Of Time 0.01 $1.11 32,450 $36,020 RENT STABILIZATION HOUSING PROGRAMS ANALYST 1% Of Time 0.00 $0.13 32,450 $4,219 RENT STABILIZATION HOUSING PROGRAMS COORD 10% Of Time 0.01 $0.74 32,450 $24,013 RENT STABILIZATION MANAGEMENT ANALYST 15% Of Time 0.01 $0.83 32,450 $26,934 RENT STABILIZATION SR OFFICE ASST 15% Of Time 0.01 $0.58 32,450 $18,821 RENT STABILIZATION 3Di Software 0.00 $2.62 32,450 $85,019 TYPE SUBTOTAL 0.03 $6.01 $195,025
TOTALS 0.03 $6.01 $195,025

Page 30 of 130 ends

City Council 9 – 34 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
CHANGE OF OWNERSHIP T-101
120
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS COORD 30 Min Ea 0.50 $73.34 120 $8,801 RENT STABILIZATION MANAGEMENT ANALYST 15 Min Ea 0.25 $27.33 120 $3,280 RENT STABILIZATION SR OFFICE ASST 15 Min Ea 0.25 $19.29 120 $2,315 TYPE SUBTOTAL 1.00 $119.96 $14,395
TOTALS 1.00 $119.96 $14,395

Page 31 of 130 ends

City Council 9 – 35 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
RE-REGISTRATION T-102
10,281
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 30 Min/Wk 0.00 $0.33 10,281 $3,393 RENT STABILIZATION MANAGEMENT ANALYST 3 Hrs/Wk 0.02 $1.66 10,281 $17,066 TYPE SUBTOTAL 0.02 $1.99 $20,459
TOTALS 0.02 $1.99 $20,459

Page 32 of 130 ends

City Council 9 – 36 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
CLAIM OF EXEMPTION T-103
4,835
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION CODE ENF OFFICER 4 Hrs/Wk 0.04 $4.29 4,835 $20,742 RENT STABILIZATION HOUSING PROGRAMS ANALYST 30 Min/Wk 0.01 $0.70 4,835 $3,385 RENT STABILIZATION MANAGEMENT ANALYST 1 Hr/Wk 0.01 $1.18 4,835 $5,705 TYPE SUBTOTAL 0.06 $6.17 $29,832
TOTALS 0.06 $6.17 $29,832

Page 33 of 130 ends

City Council 9 – 37 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
TERMINATION OF EXEMPTION T-104
240
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION DEPUTY CITY ATTORNEY 4 Hrs/Mo 0.20 $26.53 240 $6,367 RENT STABILIZATION MANAGEMENT ANALYST 15 Min/Wk 0.05 $5.96 240 $1,430 TYPE SUBTOTAL 0.25 $32.49 $7,798
TOTALS 0.25 $32.49 $7,798

Page 34 of 130 ends

City Council 9 – 38 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
RENTAL REGISTRY FEE (COLLECTION) T-105
32,450
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ACCOUNTANT II 20% Of .5 Fte 0.01 $0.55 32,450 $17,848 RENT STABILIZATION ADMIN SVCS MGR 10% Of Time 0.00 $0.21 32,450 $6,815 RENT STABILIZATION DIVISION MANAGER 5% Of Time 0.00 $0.56 32,450 $18,172 RENT STABILIZATION HOUSING PROGRAMS COORD 5% Of Time 0.00 $0.37 32,450 $12,007 RENT STABILIZATION MANAGEMENT ANALYST 30% Of Time 0.02 $1.65 32,450 $53,543 RENT STABILIZATION SR ACCOUNTING ASST 80% Of .5 Fte 0.02 $1.60 32,450 $51,920 TYPE SUBTOTAL 0.05 $4.94 $160,303
TOTALS 0.05 $4.94 $160,303

Page 35 of 130 ends

City Council 9 – 39 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
LATE PAYMENT/OTHER FINANCE TRANSACT T-106
1,000
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ACCOUNTANT II 5% Of .5 Fte 0.04 $4.45 1,000 $4,450 RENT STABILIZATION MANAGEMENT ANALYST 3 Hrs/Wk 0.16 $17.05 1,000 $17,050 RENT STABILIZATION SR ACCOUNTING ASST 5% Of .5 Fte 0.04 $3.24 1,000 $3,240 TYPE SUBTOTAL 0.24 $24.74 $24,740
TOTALS 0.24 $24.74 $24,740

Page 36 of 130 ends

City Council 9 – 40 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
GENERAL INQUIRIES T-107
16,225
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 10% Of Time 0.02 $2.60 16,225 $42,185 RENT STABILIZATION SR OFFICE ASST Remainder 0.02 $1.87 16,225 $30,341 TYPE SUBTOTAL 0.04 $4.47 $72,526
TOTALS 0.04 $4.47 $72,526

Page 37 of 130 ends

City Council 9 – 41 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
INQUIRY ABOUT COMPLIANCE/VIOLATION T-201
325
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION DIVISION MANAGER 5 Min Ea 0.08 $17.69 325 $5,749 RENT STABILIZATION HOUSING PROGRAMS ANALYST 30 Min Ea 0.50 $64.48 325 $20,956 RENT STABILIZATION SR OFFICE ASST 10 Min Ea 0.17 $13.12 325 $4,264 TYPE SUBTOTAL 0.75 $95.29 $30,969
TOTALS 0.75 $95.29 $30,969

Page 38 of 130 ends

City Council 9 – 42 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
NOTICES OF VIOLATION/COMPLAINTS T-202
16 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 30 Min Ea 0.50 $84.80 16 $1,357 RENT STABILIZATION CODE ENF OFFICER 2 Hrs Ea 2.00 $199.46 16 $3,191 RENT STABILIZATION DEPUTY CITY ATTORNEY 2 Hrs Ea 2.00 $264.88 16 $4,238 RENT STABILIZATION DIVISION MANAGER 15 Min Ea 0.25 $55.29 16 $885 RENT STABILIZATION HOUSING PROGRAMS ANALYST 15 Min Ea 0.25 $32.24 16 $516 RENT STABILIZATION HOUSING PROGRAMS COORD 30 Min Ea 0.50 $73.34 16 $1,173 RENT STABILIZATION SR PARALEGAL 20 Min Ea 0.33 $36.60 16 $586 TYPE SUBTOTAL 5.83 $746.61 $11,946
TOTALS 5.83 $746.63 $11,946

Page 39 of 130 ends

City Council 9 – 43 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
INVESTIGATION OF COMPLAINTS T-203
24 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION CODE ENF OFFICER 4 Hrs Ea 4.00 $398.92 24 $9,574 RENT STABILIZATION DEPUTY CITY ATTORNEY 30 Min Ea 0.50 $66.22 24 $1,589 RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs Ea 2.00 $257.92 24 $6,190 RENT STABILIZATION SR PARALEGAL 1 Hr Ea 1.00 $110.92 24 $2,662 TYPE SUBTOTAL 7.50 $833.98 $20,016
TOTALS 7.50 $834.00 $20,016

Page 40 of 130 ends

City Council 9 – 44 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
CITATIONS PROSECUTION & LITIGATIONS T-204
18 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 2 Hrs Ea 2.00 $339.18 18 $6,105 RENT STABILIZATION CODE ENF OFFICER 8 Hrs/Ea 8.00 $797.84 18 $14,361 RENT STABILIZATION DEPUTY CITY ATTORNEY 8 Hrs Ea 8.00 $1,059.52 18 $19,071 RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Wk 5.78 $847.35 18 $15,252 TYPE SUBTOTAL 23.78 $3,043.89 $54,790
TOTALS 23.78 $3,043.89 $54,790

Page 41 of 130 ends

City Council 9 – 45 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
CODE ENFORCEMENT INSPECTIONS T-205
208
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION CODE ENF OFFICER 25% Of Time 3.93 $391.97 208 $81,530 RENT STABILIZATION HOUSING PROGRAMS ANALYST 15 Min Ea 0.25 $32.24 208 $6,706 RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.25 $36.66 208 $7,625 TYPE SUBTOTAL 4.43 $460.87 $95,861
TOTALS 4.43 $460.87 $95,861

Page 42 of 130 ends

City Council 9 – 46 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
CASE CORRESPONDENCE & RECORD KEEPIN T-206
1 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION SR OFFICE ASST 10% Of Time 163.50 $12,617.30 1 $12,617 RENT STABILIZATION SR PARALEGAL 25% Of Time 406.75 $45,116.71 1 $45,117 TYPE SUBTOTAL 570.25 $57,734.01 $57,734
TOTALS 570.25 $57,734.00 $57,734

Page 43 of 130 ends

City Council 9 – 47 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
RECEIVE/FILE T.O.T/EVICTIONS T-301
10,281
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 4 Hrs/Wk 0.02 $2.61 10,281 $26,833 RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.01 $0.74 10,281 $7,608 TYPE SUBTOTAL 0.03 $3.35 $34,441
TOTALS 0.03 $3.35 $34,441

Page 44 of 130 ends

City Council 9 – 48 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
FOLLOW-UP ON UNJUST EVICTIONS T-302
103
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 10 Hrs/Wk 5.05 $856.07 103 $88,175 RENT STABILIZATION CODE ENF OFFICER 1 Hr/Wk 0.50 $50.34 103 $5,185 RENT STABILIZATION DEPUTY CITY ATTORNEY 20 Hrs/Wk 10.10 $1,337.08 103 $137,719 RENT STABILIZATION HOUSING PROGRAMS ANALYST 4 Hrs/Wk 2.02 $260.39 103 $26,820 RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Wk 1.01 $148.08 103 $15,252 TYPE SUBTOTAL 18.68 $2,651.96 $273,152
TOTALS 18.68 $2,651.96 $273,152

Page 45 of 130 ends

City Council 9 – 49 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
DIRECT INQUIRES & PETITION REVIEW T-401
1,388
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 8 Hrs/Wk 0.30 $38.65 1,388 $53,646 RENT STABILIZATION SR OFFICE ASST 10 Hrs/Wk 0.37 $28.91 1,388 $40,127 TYPE SUBTOTAL 0.67 $67.56 $93,773
TOTALS 0.67 $67.56 $93,773

Page 46 of 130 ends

City Council 9 – 50 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
ANNUAL ALLOWABLE RENT ADJUSTMENT T-402
1 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 4 Hrs/Yr 4.00 $678.36 1 $678 RENT STABILIZATION DIVISION MANAGER 4 Hrs/Yr 4.00 $884.56 1 $885 RENT STABILIZATION HOUSING PROGRAMS ANALYST 80 Hrs/Yr 80.00 $10,316.80 1 $10,317 RENT STABILIZATION HOUSING PROGRAMS COORD 40 Hrs/Yr 40.00 $5,866.80 1 $5,867 RENT STABILIZATION MANAGEMENT ANALYST 80 Hrs/Yr 80.00 $8,746.40 1 $8,746 RENT STABILIZATION SR OFFICE ASST 20 Hrs/Yr 20.00 $1,543.40 1 $1,543 TYPE SUBTOTAL 228.00 $28,036.32 $28,036
TOTALS 228.00 $28,036.00 $28,036

Page 47 of 130 ends

City Council 9 – 51 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
FAIR RETURN PETITIONS T-403
4 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 3 Hrs Ea 3.00 $508.77 4 $2,035 RENT STABILIZATION CODE ENF OFFICER 4 Hrs Ea 4.00 $398.92 4 $1,596 RENT STABILIZATION DEPUTY CITY ATTORNEY 5 Hrs Ea 5.00 $662.20 4 $2,649 RENT STABILIZATION HOUSING PROGRAMS ANALYST 125 Hrs Ea 125.00 $16,120.00 4 $64,480 RENT STABILIZATION HOUSING PROGRAMS COORD 25 Hrs Ea 25.00 $3,666.75 4 $14,667 TYPE SUBTOTAL 162.00 $21,356.64 $85,427
TOTALS 162.00 $21,356.75 $85,427

Page 48 of 130 ends

City Council 9 – 52 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
CAPITAL IMPROVEMENT PETITIONS T-404
4 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 3 Hrs Ea 3.00 $508.77 4 $2,035 RENT STABILIZATION CODE ENF OFFICER 4 Hrs Ea 4.00 $398.92 4 $1,596 RENT STABILIZATION DEPUTY CITY ATTORNEY 5 Hrs Ea 5.00 $662.20 4 $2,649 RENT STABILIZATION HOUSING PROGRAMS ANALYST 75 Hrs Ea 75.00 $9,672.00 4 $38,688 RENT STABILIZATION HOUSING PROGRAMS COORD 15 Hrs/Ea 15.00 $2,200.05 4 $8,800 TYPE SUBTOTAL 102.00 $13,441.94 $53,768
TOTALS 102.00 $13,442.00 $53,768

Page 49 of 130 ends

City Council 9 – 53 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
TENANT PETITION T-405
889
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 10 Hrs/Wk 0.58 $99.18 889 $88,171 RENT STABILIZATION CODE ENF OFFICER 8 Hrs/Wk 0.47 $46.66 889 $41,481 RENT STABILIZATION DEPUTY CITY ATTORNEY 20 Hrs/Wl 1.17 $154.91 889 $137,715 RENT STABILIZATION HOUSING PROGRAMS ANALYST 15 Min Ea 0.25 $32.24 889 $28,661 RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Wk 0.12 $17.16 889 $15,255 TYPE SUBTOTAL 2.59 $350.15 $311,283
TOTALS 2.59 $350.15 $311,283

Page 50 of 130 ends

City Council 9 – 54 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
MEDIATION (PRE)COUNSELING T-501
103
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs/Wk 1.01 $130.20 103 $13,411 RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.50 $74.03 103 $7,625 RENT STABILIZATION SR OFFICE ASST 2.02 $155.82 103 $16,049 TYPE SUBTOTAL 3.53 $360.05 $37,085
TOTALS 3.53 $360.05 $37,085

Page 51 of 130 ends

City Council 9 – 55 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
MEDIATION CASES HEARD T-502
103
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs/Wk 1.01 $130.20 103 $13,411 RENT STABILIZATION HOUSING PROGRAMS COORD 1 Hr/Wk 0.50 $74.03 103 $7,625 RENT STABILIZATION Contr Mediator 0.00 $1,297.77 103 $133,670 TYPE SUBTOTAL 1.51 $1,502.00 $154,706
TOTALS 1.51 $1,502.00 $154,706

Page 52 of 130 ends

City Council 9 – 56 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
DIRECT INQUIRIES FOR HEARINGS/APPEA T-601
45 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 1 Hr Ea 1.00 $128.96 45 $5,803 TYPE SUBTOTAL 1.00 $128.96 $5,803
TOTALS 1.00 $128.96 $5,803

Page 53 of 130 ends

City Council 9 – 57 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
TIME OF HEARING T-602
897
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs/Wk 0.12 $14.95 897 $13,410 RENT STABILIZATION Contr Hearing Ofcr 0.00 $149.02 897 $133,671 TYPE SUBTOTAL 0.12 $163.97 $147,081
TOTALS 0.12 $163.97 $147,081

Page 54 of 130 ends

City Council 9 – 58 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
APPLEAL (OF DECISION) T-603
123
REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY 3 Hrs Ea 3.00 $508.77 123 $62,579 RENT STABILIZATION CODE ENF OFFICER 1 Hr Ea 1.00 $99.73 123 $12,267 RENT STABILIZATION COMMISSION SECRETARY 1 Hr Ea 1.00 $93.33 123 $11,480 RENT STABILIZATION DIVISION MANAGER 1 Hr/Ea 1.00 $221.14 123 $27,200 RENT STABILIZATION HOUSING PROGRAMS ANALYST 2 Hrs Ea 1.00 $128.96 123 $15,862 RENT STABILIZATION HOUSING PROGRAMS COORD 2 Hrs/Ea 2.00 $293.34 123 $36,081 RENT STABILIZATION SR PARALEGAL 3 Hrs Ea 3.00 $332.76 123 $40,929 TYPE SUBTOTAL 12.00 $1,678.03 $206,398
TOTALS 12.00 $1,678.03 $206,398

Page 55 of 130 ends

City Council 9 – 59 5/16/2023
March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
RENTAL HOUSING BOARD T-700
1 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION COMMISSION SECRETARY 75% Of Time 1,226.25 $114,445.91 1 $114,446 RENT STABILIZATION DEPUTY CITY ATTORNEY 16 Hrs/Mo 191.95 $25,421.86 1 $25,422 RENT STABILIZATION DIVISION MANAGER 40% Of Time 654.00 $144,625.56 1 $144,626 TYPE SUBTOTAL 2,072.20 $284,493.33 $284,493
TOTALS 2,072.20 $284,493.00 $284,493

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March 21, 2023

CITY OF SANTA ANA
FY 2022/23

COST DETAIL WORKSHEET

SERVICE
RENT STABILIZATION PROGRAM T-800
1 REFERENCE NO.

NOTE TOTAL UNITS
Unit Costs are an Average of Total Units
DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST RENT STABILIZATION ASST CITY ATTORNEY Remainder Of 1 Fte 154.14 $26,140.60 1 $26,141 RENT STABILIZATION CODE ENF OFFICER Remainder Of 1 Fte 1,349.60 $134,595.61 1 $134,596 RENT STABILIZATION COMMISSION SECRETARY Remainder Of 1 Fte 285.75 $26,669.05 1 $26,669 RENT STABILIZATION DEPUTY CITY ATTORNEY Remainder Of 2 Fte 722.26 $95,656.11 1 $95,656 RENT STABILIZATION DIVISION MANAGER Remainder Of 1 Fte 578.73 $127,980.35 1 $127,980 RENT STABILIZATION HOUSING PROGRAMS ANALYST Remainder Of 1 Fte 177.37 $22,873.64 1 $22,874 RENT STABILIZATION HOUSING PROGRAMS COORD Remainder Of 1 1 Fte 355.80 $52,185.19 1 $52,185 RENT STABILIZATION MANAGEMENT ANALYST Remainder Of Time 412.20 $45,065.83 1 $45,066 RENT STABILIZATION SR ACCOUNTING ASST Remainder Of .5 Fte 122.63 $9,724.56 1 $9,725 RENT STABILIZATION SR PARALEGAL Remainder Of 1 821.97 $91,172.91 1 $91,173 RENT STABILIZATION Educ & Outreach 0.00 $100,000.00 1 $100,000 TYPE SUBTOTAL 4,980.45 $732,063.85 $732,064
TOTALS 4,980.45 $732,064.00 $732,064

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APPENDIX D – ESTIMATED RENTAL UNITS

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Year Built
Total Rental
Units
Single‐Family
Rental Units
Multi‐Family
Rental Units
Mobile
Homes
Fully Covered (Pre 1995) 31,817 4,908 24,039 2,870
Partially Covered (1995-2008) 633 24 609 -
Total 32,450 4,932 24,648 2,870
Source: City of Santa Ana

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APPENDIX E – WORK PLAN DATED JANUARY 17, 2023

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January 17, 2023
City of Santa Ana
Work Plan for the Rent Stabilization
and Just Cause Eviction Ordinance

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1 TABLE OF CONTENTS
RENT STABILIZATION DIVISION OVERVIEW .............................................................. 4 Functions of the Division.............................................................................................. 4 ORGANIZATIONAL CHART ........................................................................................... 5 FUNCTIONAL UNITS...................................................................................................... 7 Administrative Unit....................................................................................................... 9 Legal Unit .................................................................................................................. 15 Hearings and Mediation Unit ..................................................................................... 17 ADDITIONAL STAFF AND SERVICES......................................................................... 18 STAFFING PLAN METHODOLOGY AND ESTIMATED COSTS.................................. 20 EXISTING CITY RESOURCES..................................................................................... 21 Code Enforcement Division ....................................................................................... 21 City Attorney’s Office ................................................................................................. 21 ADDITIONAL CONSIDERATIONS................................................................................ 22 Budget Considerations .............................................................................................. 22 Contractor Considerations ......................................................................................... 22 Division Office............................................................................................................ 23 Subscriptions ............................................................................................................. 23 EXHIBIT A..................................................................................................................... 24

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2 INTRODUCTION
Effective November 18, 2022, the Santa Ana City Council (“City Council”) adopted the Rent Stabilization and Just Cause Eviction Ordinance (“Ordinance”). The Ordinance provides for the administration and enforcement of renter protections for Santa Ana renters by establishing a rental housing board and a rental registry program. The Ordinance also includes petitions for tenants and landlords, voluntary mediation services, and various other administrative components. The Ordinance adheres to the Long-Term Implementation Plan adopted by City Council on September 6, 2022. In compliance with the Ordinance and the Long-Term Implementation Plan, City staff and RSG, Inc. have developed this Work Plan describing the administrative structure necessary to support the delivery of efficient and effective program services to landlords and tenants.

The City currently administers the Ordinance through a consultant, RSG, Inc. and partial staff time from a Housing Programs Analyst, Housing Division Manager, and Assistant City Attorney. Before adopting a rental registry fee, a Work Plan detailing and itemizing exactly how the Ordinance will be administered (e.g., how the fees will be used) needs to be established. In our research of sample jurisdictions throughout the State of California, the following general services were provided as best practices to effectively implement rent stabilization and just cause eviction ordinances:
 Annual Registration – Process registration fees for the rental registry, maintain rental registry, and send annual notices of maximum allowable rent increases.  Compliance – Process notices of violations and complaints, send notices of noncompliance to landlords, and pursue compliance activities as necessary for noncompliant properties.
 Evictions/Termination of Tenancy – Review notices of eviction/termination of tenancy to ensure compliance with the JCEO.
 Hearings and Appeals – Process hearings for appeals to rent amounts and petitions. This includes communicating with the tenants and landlords involved, collecting supporting documentation, coordinating with the Rental Housing Board, and writing letters of determination.
 Housing Counseling/Mediation – Provide tenant and landlord housing counseling and mediation services.
 Petitions – Receive, review, and analyze data to provide decisions on petitions, subject to appeal.
 Public Information – Provide customer service to inquiring tenants and landlords and conduct on-going community outreach and education.
 Rental Housing Board Administration – Facilitate regular meetings and complete administrative tasks related to the Rental Housing Board.

Considering all these best practices, this Work Plan has been prepared and provided to Revenue & Cost Specialists, LLC to conduct a fee study to determine the rental registry fee. A detailed budget to match the Work Plan will also be included in the process to develop a rental registry fee. Under Section 50076 of the California Government Code, fees charged for any service or

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3 regulatory activity must not exceed the reasonable cost of providing the service. To ensure this requirement is satisfied, the City is conducting the fee study. The Fee Study will determine the Rental Registry Fee to be adopted by the City Council and paid by landlords to finance the Program's reasonable and necessary expenses.

The Work Plan accounts for the best practices outlined above in jurisdictions with existing rent stabilization and just cause eviction programs across the State of California while adhering to the guiding principles approved by the City Council. Specifically:
1) The Rental Registry Fee will be as low and lean as possible as to avoid any unnecessary burdens on tenants;
2) Analyze the efficiency and provide a cost comparison of utilizing a hybrid of services between consultants and city staff; and
3) Identify and analyze ways to build upon other existing services across the City to administer the Ordinance.

This Work Plan is considered a key component of the administrative framework needed to proceed with program implementation. The Work Plan will serve as the baseline of information needed by Revenue & Cost Specialists, LLC to establish a Rental Registry Fee to offset and ultimately fully recover the costs of Program administration and enforcement. Most cities that have adopted rent stabilization and just cause eviction programs have established annual rental registry fees to recover the cost of program administration and enforcement. Based on this precedence, user fees are established in circumstances such as this, where unique benefits are established for a subset of individuals. Under the law, such fees must bear a nexus to the actual costs incurred in administering the program. The following Work Plan is intended to serve as the primary nexus for the development of a fee to support the administration and enforcement of the Ordinance.

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4 RENT STABILIZATION DIVISION OVERVIEW
The Rent Stabilization Division (“Division”) will administer the Rent Stabilization Program (“Program”).1 The Division and Program will serve landlords and tenants who are covered by the Ordinance by providing rental housing stability, housing affordability, and housing habitability for renters and landlords in the City of Santa Ana.

The Division will be established as a new division in the Community Development Agency (“Agency”). The Agency currently has four divisions: Housing Division, Homeless Services, Economic Development, and Administrative Services. The Renter Protections Division will be the fifth division in the Agency. To date, the Agency has been integrally involved in the development and implementation of the Ordinance. The Agency overall has developed a strong knowledge of the policy foundations and program issues and is well suited to oversee the Division. To implement the services required in the Ordinance, the Division will require paid administrative staff and support functions from consultants and other Departments in the City. The Rent Stabilization Division staff will manage the day-to-day administration and enforcement of the Ordinance, including all the administrative components outlined within this Work Plan.

Functions of the Division
The primary functions of the Division are to:
 Promote rental housing stability, housing affordability, and housing habitability for renters.  Protect tenants from unreasonable rent increases and unjust evictions.  Implement, administer, monitor, support, and enforce all the provisions of the Ordinance.  Support the Rental Housing Board to administer their powers and duties including schedule regular meetings at least once each calendar month; conduct hearings on petitions, applications and appeals; promulgate and implement policies and procedures for the administration and enforcement of the Ordinance; and other duties specified in the Ordinance.
 Implement, administer, monitor, support, and enforce the policies and procedures issued and approved by staff and the Rental Housing Board.
 Protect, enforce, support, educate and publicize: 1) a landlord’s right to receive a fair return on their property through a Fair Return Petition; 2) a landlord’s right to submit a Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant Petition.  Provide the highest level of customer service to the rental housing community including landlords, tenants, real estate brokers, prospective tenants and prospective property owners.
 Conduct education and outreach to the community related to the Ordinance.

1 Division and Program may be used interchangeably throughout this Work Plan.

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5  Collect, enforce, account, budget, allocate, expend and report rental registry fees.  Hire, train, develop, support, retain, deploy and compensate paid staff and consultants to fulfill these goals with revenue generated through the rental registry fee.  Report to the Executive Director of Community Development, City Manager, Rental Housing Board, and the Santa Ana City Council, in that order.

All the activities and actions described in this Work Plan must conform to the Ordinance and these functions. The activities, actions and functions described in this Work Plan are not intended to be exhaustive.

ORGANIZATIONAL CHART
The administration and enforcement of the Ordinance will require an Administrative Unit supported by a Legal Unit, and a Hearings and Mediation Unit. The Organizational Chart on the following page details the full-time equivalents (FTEs) that will be assigned to each unit.

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6

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7 FUNCTIONAL UNITS
The administration and enforcement of the Ordinance will require the following functional units:

Administrative Unit, Legal Unit and Hearings Unit. Each unit will be responsible for the following functions as part of the Division.

I. Administrative Unit
The Administrative Unit will have the most responsibility amongst all three units. The unit will be responsible for the general management and oversight of the Rent Stabilization Program including the following functions:
 Promote rental housing stability, housing affordability, and housing habitability for renters.
 Protect tenants from unreasonable rent increases and unjust evictions (Shared with Legal Unit)
 Implement, administer, monitor, support, and enforce all the provisions of the Ordinance. (Shared with Legal and Hearings Unit)
 Support the Rental Housing Board to administer their powers and duties including schedule regular meetings at least once each calendar month; conduct hearings on petitions, applications and appeals; promulgate and implement policies and procedures for the administration and enforcement of the Ordinance; and other duties specified in the Ordinance. (Shared with Legal and Hearings Unit)  Implement, administer, monitor, support, and enforce policies and procedures issued and approved by staff and the Rental Housing Board. (Shared with Legal and Hearings Unit)
 Collect, enforce, account, budget, allocate, expend and report rental registry fees.  Hire, train, develop, support, retain, deploy and compensate paid staff and consultants to fulfill these goals with revenue generated through the rental registry fee.
 Protect, enforce, support, educate and publicize: 1) a landlord’s right to receive a fair return on their property through a Fair Return Petition; 2) a landlord’s right to submit a Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant Petition. (Shared with Hearings Unit)
 Provide the highest level of customer service to the rental housing community including landlords, tenants, real estate brokers, prospective tenants and prospective property owners. (Shared with Legal and Hearings Unit)  Conduct education and outreach to the community related to the Ordinance.

In addition, the unit will be responsible to 1) administer and enforce the Rental Registry on behalf of tenants and landlords; 2) respond to and direct action throughout the Division; 3) fully resolve issues and concerns; and 4) provide management support to the other two units.

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8 II. Legal Unit
The Legal Unit services will be provided by a new division in the City Attorney’s Office and generally responsible for enforcing the Ordinance, including the following functions:
 Protect tenants from unreasonable rent increases and unjust evictions (Shared with Administrative Unit)
 Implement, administer, monitor, support, and enforce all the provisions of the Ordinance. (Shared with Administrative and Hearings Unit)  Support the Rental Housing Board to administer their powers and duties including regular meetings at least once each calendar month; conduct hearings on petitions, applications and appeals; promulgate and implement policies and procedures for the administration and enforcement of the Ordinance; and other duties specified in the Ordinance. (Shared with Administrative and Hearings Unit)  Implement, administer, monitor, support, and enforce policies and procedures issued and approved by staff and the Rental Housing Board. (Shared with Administrative and Hearings Unit)
 Provide the highest level of customer service to the rental housing community including landlords, tenants, real estate brokers, prospective tenants and prospective property owners. (Shared with Administrative and Hearings Unit) In addition, the unit will be responsible to investigate allegations and complaints; make referrals to code enforcement officers to conduct inspections, and follow-up and prosecute violations of the Ordinance. The Planning and Building Agency will provide two Code Enforcement Officers (2 FTEs) dedicated to this unit and will be responsible to conduct inspections on behalf of this unit.

III. Hearings and Mediation Unit
The Hearings and Mediation Unit will consist of two consultants and be responsible for overseeing petitions, voluntary mediation services, hearings and appeals including the following functions:
 Implement, administer, monitor, support, and enforce all the provisions of the Ordinance. (Shared with Administrative and Legal Unit)
 Support the Rental Housing Board to administer their powers and duties including conduct hearings on petitions, applications and appeals. (Shared with Administrative and Legal Unit)
 Implement, administer, monitor, support, and enforce policies and procedures issued and approved by staff and the Rental Housing Board. (Shared with Administrative and Legal Unit)
 Protect, enforce, support, educate and publicize: 1) a landlord’s right to receive a fair return on their property through a Fair Return Petition; 2) a landlord’s right to submit a Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant Petition. (Shared with Administrative Unit)

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9 Administrative Unit
The Administrative Unit’s primary goal is to administer the Ordinance and implement the day-today operations of the Rent Stabilization Program. The structure of the Administrative Unit includes seven (7) full-time equivalents (FTEs). The Division Manager – Rent Stabilization Program is a new position to the City. The Housing Programs Coordinator position and Housing Programs Analyst position are existing positions that will need to be formally updated to incorporate new responsibilities into the job descriptions. The other positions are existing positions shared throughout the City; these positions will have specific responsibilities when assigned to the Rent Stabilization Program that comply with their current job description(s).

These positions will be responsible for the following essential functions and job responsibilities:

1. NEW - Division Manager – Rent Stabilization Program (1 FTE): Manages the implementation, administration, monitoring, support, and enforcement of the Rent Stabilization and Just Cause Eviction Ordinance. Manages and oversees the Rent Stabilization Division and provides highly responsible and complex administrative support to the Executive Director of Community Development. Administers the development of policies, procedures, performance standards, strategies, and priorities for the Rent Stabilization Program based on analysis and interpretation of state and local laws and direction from the Executive Director of Community Development, City Manager, Rental Housing Board and City Council, in that order. Oversees the formulation of long and shortterm strategies to fulfill the goals and functions of the Ordinance and Division.

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10 Manages the City's Rental Registry and collection, enforcement, accounting, budgeting, allocation, expenditure and reporting of fees. Manages the general enforcement of the Ordinance and all legal actions undertaken by the City. Approves and enforces the administrative citation process and schedule of fines for violations of the Ordinance.

Fosters compliance with the Ordinance by educating the rental community on their rights and responsibilities, correcting curable violations, and citing instances of violations when necessary. Identifies instances of potential non-compliance and investigates and enforces such instances with a targeted approach to inform residents and landlords of their rights and responsibilities. Strengthens enforcement with follow up on key requirements of the Ordinances, including landlords’ filing of tenancy termination notice to identify potential non-compliance.

Protects, enforces, supports, educates and publicizes: 1) a landlord’s right to receive a fair return on their property through a Fair Return Petition; 2) a landlord’s right to submit a Capital Improvement Petition; and 3) a tenant’s right to submit a Tenant Petition. Ensures tenants and landlords who participate in the Petitions or in mediation follow through with the process, are accountable with the outcomes, and are satisfied with the process.

Manages the outreach and multilingual engagement to vulnerable communities to provide petition and mediation services to resolve tenant and landlord conflicts.

Manages all public information issued and released pertaining to the Ordinance. Fully responds to all general inquiries and complaints. Provides the highest level of customer service to the rental housing community including landlords, tenants, real estate brokers, prospective tenants and prospective property owners. Hires, trains, develops, supports, retains, deploys, compensates, and supervises all paid staff in the Rent Stabilization Division. Oversee staff procurement and training as it relates to the administration of the Ordinance. Appoints and contracts a Mediator, Hearing Officer and any other contracted services and positions as needed. Serves as direct staff for the Rental Housing Board to administer their powers and duties including schedules regular meetings at least once each calendar month; conducts hearings on petitions, applications and appeals; promulgates and implements policies and procedures for the administration and enforcement of the Ordinance; and other duties specified in the Ordinance. Designates and coordinates training requirements for the Rental Housing Board and all staff. Provides direct support to the Rental Housing Board by coordinating meeting agendas and preparing reports for all Board meetings. Oversees the preparation of agendas for the Rental Housing Board. Implements, administers, monitors, supports, and enforces policies and procedures issued and approved by staff and the Rental Housing Board.

Conducts education and outreach to the community related to the Ordinance. Coordinates and participates in citywide and neighborhood-based housing planning activities to promote rental housing stability, housing affordability, and housing habitability for renters in the City. Protects tenants from unreasonable rent increases and unjust evictions.

Develops the Division budget. Coordinates the annual audit of the Division with outside agencies; conducts internal audits and quality control to ensure compliance with the Ordinance; responds to external audit reviews. Establishes Division goals and objectives.

Monitors and evaluates the efficiency and effectiveness of customer service delivery methods and procedures. Prepares, publishes, presents and maintains a variety of reports, including annual reports to the Rental Housing Board and financial reports and records; conducts and oversees complex studies and related research. Establishes and

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11 maintains effective relationships with community-based organizations, neighborhood groups, citizen advisory bodies and elected officials; resolves complaints and mediates disputes. Acts as an advisor to appointed and elected officials on housing stability, housing affordability, and housing habitability issues; ensures record management in accordance with legal requirements and City policy; represents the City, or delegates such authority, in relations with the community, local, and state agencies and professional organizations. Performs other assigned functions as required.

2. NEEDS FORMAL UPDATE - Housing Programs Coordinator (1 FTE): Click Here for City Job Description
Coordinates and manages the Rental Registry, Ordinance Enforcement, Petitions, Housing Counseling, Public Information, General Inquiries and Complaints. Provides highly responsible and complex administrative support to the Division Manager.

Supervises assigned staff including the Housing Programs Analyst (2 FTEs), the Management Analyst (1 FTE), and Senior Office Assistant (1 FTE). Performs responsible and professional staff work to ensure efficient and effective internal operations of administrative and management systems in the Rent Stabilization Program.

Coordinates and manages the Rental Registry, including processing and accepting a registration fee, maintaining the Rental Registry, and sending notices to landlords as needed. Collects, enforces, accounts, budgets, allocates, expends and reports rental registry fees. Works with landlords and tenants to submit required documentation, verify coverage under the Program, and ensure rental unit data is always up to date (e.g., rent increases, vacancies, and notices). Performs complex studies, research, and analysis relative to the Rent Stabilization Program. Prepares annual Division Budget and mid-year budget adjustment for Division Manager based on annual fees collected.

Coordinates with the Legal Unit to investigate, coordinate, implement and oversee enforcement action; coordinates and manages advice on legal matters as they pertain to the Ordinance and public inquiries. Coordinates and manages inspections for Code Enforcement Officers on matters related to rental housing habitability and inspections of units. Coordinates and manages the administrative citation process and schedule of fines for violations of the Ordinance.

Coordinates and manages all Fair Return, Capital Improvement, and Tenant Petitions.

Implements processes and procedures to ensure the most efficient implementation of petitions. Coordinates and manages tenant and property owner petitions, as well as scheduling mediations and administrative hearings. Coordinates hearing officers, mediations and administrative hearings to assist in resolving rental issues under the Ordinance including contracted hearing officer services. Coordinates and manages all mediation services including contracted mediator(s) services. Coordinates and manages the outreach and multilingual engagement to vulnerable communities to provide petition and mediation services to resolve tenant and landlord conflicts.

Coordinates and manages tenant and landlord housing counseling and mediation services.

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12 Coordinates and manages compliance with the Ordinance to reduce avoidable displacement by providing access to resources, and analyzes data compiled to understand trends among just cause terminations.

Coordinates and manages the spread of information about the Ordinance by maintaining informational handouts and keeping the City’s webpage up to date. Plans, prepares, and conducts community educational workshops for landlords and tenants and maintains the Agency’s social media accounts.

Coordinates and manages Division-wide response to daily inquiries from landlords and tenants on their rights and responsibilities under the Ordinance, including phone calls, emails, and walk-ins.

Coordinates and manages Division-wide response to questions and concerns by tenants and landlords through phone calls, emails and in-person appointments. Provides additional information to tenants and landlords to meet individual needs, ensures public information materials are available and responsive to the latest questions and concerns made by the public.

3. NEEDS FORMAL UPDATE - Housing Programs Analyst (2 FTEs): Click Here for City Job Description
When assigned to the Rent Stabilization Division:

Under general supervision, assists with the administration and enforcement of the Rent Stabilization Ordinance. Analyzes and evaluates Rent Stabilization Program for the purpose of developing plans and procedures. Conducts surveys and research; performs financial analyses. Collects, analyzes and evaluates data to assess local housing needs.

Oversees and implements the rental registry, collection of rental registry fees and related software. Researches, analyzes, makes recommendations and implements the Rent Stabilization and Just Cause Eviction Ordinance. Develops measurable program objectives to ensure effective operation of the Rent Stabilization Program. Coordinates implementation of Rent Stabilization Program and monitors compliance. Works closely with Legal Unit and Hearings Unit to monitor and enforce compliance.

Responds to general inquiries and meets with property owners and tenants to address issues, develop solutions, and answer questions; develops and implements policies and procedures; manages notices of tenancy termination, including reviewing notices to examine accuracy and analyze trends; engages and educates community members and community-based organizations through printed and digital medias, community presentations, site visits to both apartment complexes and mobilehome communities, and multilingual workshops.

Assists owners with the process to withdraw rent stabilized units from the rental market.

Assists and coordinates with tenants to ensure relocation assistance is provided. Monitors withdrawn properties that have or have not been rehabilitated, as well as evaluate impacts on tenants displaced by the economics of redevelopment.

Administers the Rental Registry with primary financial and administrative support from the Management Analyst, including processing and accepting a registration fee, maintaining the Rental Registry, and sending notices to landlords as needed. Works with landlords

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13 and tenants to submit required documentation, verify coverage under the Program, and ensure rental unit data is always up to date (e.g., rent increases, vacancies, and notices).

Receives and processes Fair Return, Capital Improvement, and Tenant Petitions.

Reviews petitions for completeness, notifies petitioners of the acceptance or denial of the petition based on completeness. Provides complete petitions to the Hearings Unit in a timely manner. Manages tenant and property owner petitions, as well as scheduling mediation and administrative hearings. Coordinates hearing officers, mediators and administrative hearings to assist in resolving rental issues under the Ordinance. Receive, facilitate and coordinate requests for mediation. Field inquiries and submit referrals to get the mediation process started. Ensure tenants and landlords who participate in the petitions or in mediation follow through with the process, are accountable with the outcomes, and are satisfied with the process. Manage the outreach and multilingual engagement to vulnerable communities to provide petition and mediation services to resolve tenant and landlord conflicts.

Collaborates and coordinates with the Division Manager, Housing Programs Coordinator and Legal Unit to investigate, coordinate, and implement enforcement action; receive and implement advice on legal matters as they pertain to the Ordinance and public inquiries.

Reviews notices of eviction/termination of tenancy to ensure compliance with the Ordinance. Coordinates and refers inspections to Code Enforcement Officers on matters related to rental housing habitability and inspections of units. Implements the administrative citation process and schedule of fines for violations of the Ordinance with approval by the Division Manager.

Provides community members with individualized counseling and supportive services on issues related to the Ordinance and associated state laws. Provides tenant and landlord housing counseling and mediation services to prevent displacement.

Monitors compliance with the Ordinance to reduce avoidable displacement by providing access to resources; analyzes data compiled to understand trends among just cause terminations. Follows-up with landlords who fail to provide a copy of a notice to the city.

Coordinates the spread of information about the Ordinance by maintaining informational handouts and keeping the City’s webpage up to date. Plans, prepares, and conducts community educational workshops for landlords and tenants and maintains the Agency’s social media accounts.

Responds to daily inquiries from landlords and tenants on their rights and responsibilities under the Ordinance, including phone calls, emails, and walk-ins. General inquiries are most often about the Ordinance and basic provisions such as evictions, allowable rent increases, and the petition process.

Receives and responds to questions and concerns by tenants and landlords through phone calls, emails and in-person appointments. Provides additional information to tenants and landlords to meet individual needs, ensures public information materials are available and responsive to the latest questions and concerns made by the public.

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14 4. Management Analyst (1 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Oversees and administers the Rental Registry, including processing and accepting the rental registry fee, maintaining the Rental Registry, and sending notices to landlords as needed. Oversees the enrollment of all properties in the City in the rental registry.

Collects, enforces, accounts, budgets, allocates, expends and reports all rental registry fees for the entire operation of the Division. Works with landlords and tenants to submit required documentation and payment; verify coverage under the Program, and ensure rental unit data is always up to date (e.g., rent increases, vacancies, and notices).

Monitors compliance and analyzes trends for rent-stabilized properties subject to the Ordinance. Collects information in the rental registry relating to rent increases, security deposits, vacancies, and vacancy reasons, to ensure tenants’ rights are protected. Tracks rent stabilized rents and annual rent increases. Analyzes the length of tenancy and turnover rates in rent stabilized apartments to measure effects of rent stabilization and compare to market rate turnover rates. Leverages database as an enforcement mechanism of rent increases to ensure rent stabilization by informing landlords of improper rent increases beyond the lower of 3% or 80% of the Consumer Price Index in the Rent Registry and assists and coordinates with tenants to verify rent levels. Provides rental registry workshops; issues mailers to property owners and managers; sends e-mail blasts to e-mail subscribers. Develops video tutorials and responds to phone, e-mail and in-person interaction to provide support. Provides guidance and information in multiple languages. Provides paper registration forms to landlords who prefer not to submit information electronically. Informs landlords about the Rental Registry, educates them about their obligations, and provides technical assistance throughout the registration process. Reviews non-registered property owners and identifies property owners in violation. Mails and e-mails corrective action and notices of violation as needed.

Receives and processes payments for Fair Return, Capital Improvement, and Tenant Petitions. Collects, enforces, accounts, budgets, allocates, expends and reports all petition payments for the entire operation of the Division. Notifies petitioners of the acceptance or denial of the petition based on payment. Provides efficient and effective customer service to process petitions submitted by landlords and mobilehome park owners.

5. Senior Office Assistant (1 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Coordinates the spread of information about the Ordinance by maintaining all informational handouts in multiple languages and keeping the City’s front-desk and webpage up to date with the most current public documents.

Receives and responds to questions and concerns by tenants and landlords through phone calls, emails and in-person appointments. Maintains detailed records of public inquiries and complaints; provides additional information to tenants and landlords to meet

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15 individual needs, ensures public information materials are available and responsive to the latest questions and concerns made by the public.

6. Commission Secretary (1 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Under general supervision of the Division Manager, performs responsible and complex clerical work, secretarial work and routine administrative activities in support of the City’s Rental Housing Board. Facilitates regular meetings and complete administrative tasks related to the Rental Housing Board.

Legal Unit
The Legal Unit’s primary goal is to enforce the Ordinance and provide legal services for the Division. The unit will be an entirely separate division physically located in the City Attorney’s Office. The structure of this unit includes three (3) full-time equivalents (FTEs). Two of the three full-time equivalents could be replaced by specialized legal services contracted by the City (<$150,000), but at least one FTE must be a City employee dedicated only to the Ordinance.

There is also one (1) shared position with the Hearings and Mediation Unit in the Division. These positions may be assigned to the City Attorney’s Office instead of the Community Development Agency.

These positions will be responsible for the following essential functions and job responsibilities:

1. Assistant City Attorney (1 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Directly supports the Division Manager and Housing Programs Coordinator to manage the implementation, administration, monitoring, support, and enforcement of the Rent Stabilization and Just Cause Eviction Ordinance. Protects tenants from unreasonable rent increases and unjust evictions. Implements, administers, monitors, supports, and enforces all the provisions of the Ordinance. Enforces compliance with the City's Rental Registry and collection and enforcement of fees to administer the Ordinance. Manages the general enforcement of the Ordinance and any legal actions undertaken by the City

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16 together with the Division Manager. Oversees the administrative citation process and schedule of fines for violations of the Ordinance together with the Division Manager.

Provides investigatory and enforcement support for violations of the Ordinance as determined by Division staff. This includes the use of administrative citations, followed by prosecution as a misdemeanor or infraction.

Provides enforcement against any landlord who fails to register a rental unit or provide current and accurate data regarding a Rental Unit. Additionally, monitors situations in which the landlord has advertised for Rent, demanded or accepted rent, or evicted any tenant from a rental unit, if the registration is not complete and accurate.

Serves as staff support together with the Division Manager – Rent Stabilization Division to the Rental Housing Board. Facilitates regular meetings and completes administrative tasks related to legal aspects of the Rental Housing Board. Supports the Rental Housing Board to administer their powers and duties including attends regular meetings at least once each calendar month; facilitates and attends hearings on petitions, applications and appeals; promulgates and implements policies and procedures for the administration and enforcement of the Ordinance; and other duties specified in the Ordinance. Implements, administers, monitors, supports, and enforces policies and procedures issued and approved by staff and the Rental Housing Board. Provides an annual training to the Board on the Brown Act.

Assists the Division’s contracted Mediator, Hearing Officer and any other contracted services and positions.

Reviews all public information issued and released pertaining to the Ordinance.

Acts as a direct advisor to the Division Manager on housing stability, housing affordability, and housing habitability issues; advises on record management in accordance with legal requirements and City policy.

Provides the highest level of customer service to the rental housing community including landlords, tenants, real estate brokers, prospective tenants and prospective property owners.

2. Deputy City Attorney (2 FTEs): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Identifies instances of potential non-compliance and investigates and enforces such instances with a targeted approach on behalf of both tenants and landlords. Strengthens enforcement with follow up on key requirements of the Ordinances, including landlords’ filing of tenancy termination notice to identify potential non-compliance.

Investigates all allegations and complaints of violations of the Ordinance. Reviews notices of eviction/termination of tenancy to ensure compliance with the Ordinance.

Makes referrals of possible code violations. Provides enforcement support for violations of the Ordinance as determined by Division staff, including the issuance of noncompliance notices, citations, and forwarding cases to the City Attorney for prosecution

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17 as needed. Two Code Enforcement Officers (2 FTEs) will be located in the Planning and Building Agency and will be responsible to conduct inspections on behalf of this position.

Provide tenant and landlord housing counseling and mediation services.

3. Senior Paralegal (1 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Manages and coordinates all hearings for appeals to rent amounts and petitions.

Communicates with the tenants and landlords involved, collects supporting documentation, coordinates with the Rental Housing Board, and coordinates the issuance of letters of determination. Manages and coordinates all mediation services and hearing officer services for the Hearings and Mediation Unit.

Manages the collection, organization and distribution of all documentation for actions undertaken by the Deputy City Attorney, Assistant City Attorney, Contract Hearing Officer, and Contract Mediator.

Hearings and Mediation Unit
The Hearing and Mediation Unit’s primary goal is to process petitions, appeals, hearings and voluntary mediations. The structure of this unit includes two contracted, full-time equivalents (FTEs). There is also one (1) shared Senior Paralegal position with the Legal Unit in the Division.

These positions maintain the following roles:

1. Contract Hearing Officer: Conducts administrative hearings dealing with tenant or landlord petitions for relief under the Ordinance. Coordinates hearing schedules with City and Division Staff and facilitates pre-hearing routine matters. Reviews Appeals, Petitions and all relevant documents and identifies potential concerns. Performs legal research, interprets complex statutes, policies, and procedural guidelines. Conducts hearings in a fair, impartial, courteous and professional manner. Prepares written determinations of decisions, which sets forth the legal and evidentiary basis for the decision. Provides

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18 reports to the City Attorney, City Manager, Assistant City Manager, Community Development Director and Division Manager and/or designee as requested.

Petitions: Coordinates and manages the appeal of all petitions including Fair Return Petitions, Capital Improvement Petitions, and Tenant Petitions. This includes reviewing the petition, collecting supporting documentation, scheduling inspections, providing written notice to the Landlord or Tenant of the receipt of an appeal, coordinating hearings, and providing notice of the decision.

Hearings: Coordinates hearings for appeals to the Rental Housing Board. May present to Rental Housing Board. This includes collecting supporting documentation, coordinating with the Commission Secretary for scheduling, administering settlement agreements, writing letters of determination, and processing the hearing.

Appeals: Responds to appeals, including inquiries, calling the counterparty to coordinate the appeal, collecting supporting documentation, coordinating appeals with the Rental Housing Board, and drafting letters of determination.

2. Contract Mediator: Coordinates and manages the voluntary confidential mediation process. This includes educating petitioners on the option for voluntary mediation, and administering settlement agreements if issues are mediated successfully. Works with broad discretion, prudence, and independence with minimum supervision to facilitate communications between complainants and respondents to discuss their dispute and reach a mutually agreeable resolution. Educates landlords and tenants with respect to their rights and responsibilities under State and local law. Keeps thorough documentation on cases and assists in preparing accurate periodic program reports.

SHARED POSITION - Senior Paralegal (1 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Manages and coordinates all hearings for appeals to rent amounts and petitions.

Communicates with the tenants and landlords involved, collects supporting documentation, coordinates with the Contract Hearing Officer, Rental Housing Board, and coordinates the issuance of letters of determination. Manages and coordinates all mediation services and hearing officer services for the Hearings and Mediation Unit.

ADDITIONAL STAFF AND SERVICES
The administration and enforcement of the Ordinance will require additional staff support and services from throughout the City including the following:

1. Executive Director of Community Development (.2 FTE): Click Here for City Job Description
When assigned to the Rent Stabilization Division:

Plans, organizes, and directs program functions in the Community Development Agency.

The agency is divided into five divisions: Housing Division, Rent Stabilization Division, Economic Development, Homeless Services, and Administrative Services.

2. Administrative Services Manager (.2 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

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19 Under administrative direction, plans, manages and supervises the development and operation of systems for budgeting, accounting, payroll, personnel and/or other administrative functions for the Rent Stabilization Division.

3. Code Enforcement Officer (2 FTEs): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Conducts and enforces inspections for habitability for the Rent Stabilization Division, this includes inspections for units based on the landlord claim of exemption, the filing of a landlord or tenant petition, or other issues of habitability for covered units. Enforces Federal, State and Municipal Laws pertaining to rent stabilization and property maintenance; coordinates code enforcement activities with other divisions, departments, and outside agencies; prepares cases for court as needed. Coordinates and assists the Legal Unit with documentation for enforcement of the Ordinance.

4. Accountant II (.5 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Collects, enforces, accounts, budgets, allocates, expends and reports all rental registry fees for the entire operation of the Division. Collects, enforces, accounts, budgets, allocates, expends and prepares reports of all petition payments for the entire operation of the Division. Coordinates and assists the Management Analyst.

5. Senior Accounting Assistant (.5 FTE): Click Here for City Job Description When assigned to the Rent Stabilization Division:

Collects, accounts, budgets, and reports all rental registry fees for the entire operation of the Division. Collects, accounts, and reports all petition payments for the entire operation of the Division. Provides paper registration forms to landlords who prefer not to submit payments electronically. Informs landlords about the Rental Registry, educates them about their obligations, and provides technical assistance throughout the payment and registration process. Coordinates and assists the Management Analyst.

6. Specialized Legal Services (<$50,000):

Advanced legal services from outside legal counsel to landlord-tenant law to support the enforcement, defense, litigation, and risk management of the Ordinance under housing issues and landlord-tenant law.

7. Education and Outreach Services (<$100,000):

The Division Manager shall contract with community-based organizations for them to assist in the education and outreach for the Ordinance. The community-based organization(s) will have the following responsibilities: assists in the development of a comprehensive strategy and methodology for citizen, participant and stakeholder engagement (e.g. proposed outreach process, methods of outreach, outreach tools and anticipated timelines). Assists with drafting content and messaging for the Program, including social media, press releases, newsletters, talking points, frequently asked questions (FAQs), flyers, and/or mailers. Designs graphics for social media, flyers, informational videos, signage, and/or mailers and coordinates distribution. Develops and

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20 implements outreach strategies for engaging target audiences, including those with limited access to the internet or limited English-language proficiency. Coordinates with program staff on key updates to keep the community informed. Monitors social media to understand community sentiment and highest needs. Facilitates media inquiries and assists with developing messaging for interviews. Evaluates and measures outreach efforts.

STAFFING PLAN METHODOLOGY AND ESTIMATED COSTS
The proposed staffing outlined in this Work Plan is based on an analysis of the number of potential rental housing units subject to the Ordinance and the current staffing in other jurisdictions with rent stabilization and just cause eviction programs. Staffing depends largely on the number of units within the jurisdiction and the program services being offered. Because the actual workload that will be associated with the program is unknown at this time, staff and RSG have estimated the number of positions as we believe reasonable and necessary to carry out the essential elements of the program. Once the program is in full operation, data regarding the actual workload will be available and the City will be able to update this Work Plan and the staffing needs.

This Work Plan also follows the guiding principles approved by the City Council:
 The Rental Registry Fee will be as low and lean as possible as to avoid any unnecessary burdens on tenants and landlords:
o The Work Plan has been designed to reduce duplication, maximize efficiency and reduce any unnecessary work that would increase the fee upon tenants and landlords.
 Analyze the efficiency and provide a cost comparison of utilizing a hybrid of services between consultants and city staff:
o The Work Plan utilizes a hybrid of consultants in the Hearings and Mediation Unit and a portion of the Legal Unit. Two consultants would be hired for this Unit instead of two full-time equivalents.
 Identify and analyze ways to build upon other existing services across the City to administer the Ordinance.
o The Work Plan builds upon existing services in the Community Development Agency (Executive Director of Community Development, Administrative Services Manager), Code Enforcement department (Code Enforcement Officers) and the City Attorney’s Office. Only one new job classification will be created from the Ordinance.

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21 PROGRAM STAFFING IN OTHER JURISDICTIONS
The table below provides full-time equivalent (“FTE”) staff of several cities with rent stabilization and just cause eviction programs along with the approximate number of rental units.

City Total FTEs
Management
and
Administration
Legal Hearing Approximate
Rental Units
Alameda 10 9 0 1 12,000
Berkeley 25 20 3 2 20,000
Beverly
Hills 6 4 1 1 7,700
Inglewood 8 (Projected to
reach 17) 8 0 0 23,000
Richmond 12 9 2 1 7,750
Santa
Monica 24 13 4 7 26,600
West
Hollywood 10 8 1 1 16,700
Each city is unique in its approach, however, some commonalities include that a higher number of rental units requires a higher number of staff to administer the Ordinance. Management and Administrative staff also consistently account for the largest portion of staff, making up nearly 70% of comparable jurisdictions’ Rental Housing Divisions on average. For Legal and Hearings Units, these units each account for approximately 10% of staff on average.

EXISTING CITY RESOURCES
There are existing departments within the City of Santa Ana that currently perform some responsibilities related to the Ordinance. The protections offered by the amended Ordinance are expected to increase the number of complaints generally, including those related to code violations and legal services; thus, additional staff resources will be necessary.

Code Enforcement Division
The City’s Code Enforcement Division works closely within the community to protect public health, safety and welfare, enforcing City codes related to nuisance and land use violations. Code Enforcement Officers also examine properties either in response to a complaint or as part of ongoing proactive enforcement efforts.

City Attorney’s Office
The City Attorney’s Office, appointed by and serving at the pleasure of the City Council, is mandated to provide legal services to the various officials and departments of the City of Santa Ana. The powers and duties of the City Attorney include appearing in litigation on

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22 behalf of the City and its officials; drafting all Ordinances, resolutions and contracts; and advising officials and employees on all matters of law pertaining to official duties. The Santa Ana City Attorney is also empowered to prosecute violations of municipal and state law on behalf of the People of the State of California.

ADDITIONAL CONSIDERATIONS
Budget Considerations
In addition to the staffing needs required to effectively implement the Program, the fee study should account for the additional budget considerations associated with staffing and administering a new division.

Expense Description
Permanent
Employees
Salary-related costs for all required
Positions, including fringe benefits
Advertising
and
Outreach
The cost of publishing public notices, other announcements required by law, and other miscellaneous announcements.

Building
Rental,
Office Space
and Office
Equipment
Funds to rent office space, reconfigure workspaces, purchase and install office equipment and furniture for the Division.

Existing
Staff Time
(Allocation
Plan)
Services provided by the departments of
Finance, Purchasing, Human Resources, Facilities, Maintenance, Code Enforcement, and Information Services
Printing Newsletter, announcement letter, registration fee bills/envelopes, special mailings
Risk
Management Insurance policies for the Division
Contractor Considerations
During year one of operations, the Rent Stabilization Division may require external contractors for services while the new Division determines actual staffing needs. Each agreement or contract would include performance expectations and costs, which would then be charged to the program.  Examples of contractor considerations by Unit are detailed below.

Unit Contractor Considerations
Administrative
Unit
Continuing work with RSG through a $500,000 renewal Agreement to assist in the administration of the Ordinance and Year 1 of operations.

Legal Unit Utilizing contracts with outside counsel for matters related to the Ordinance.

Hearings Unit Contracting with local organizations to provide voluntary mediation services and a hearing officer.

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23 Division Office
The Rent Stabilization Division will occupy office space in the Santa Ana WORK Center.

Necessary equipment and supplies include postage and mailing materials, available printers for publication notices, general office supplies, telephones, office furniture, and computers.

Estimated monthly expenses for housing up to ten (10) employees at the Santa Ana WORK Center are included as Exhibit A.

Subscriptions
Annual subscriptions include:
 3Di for the Rental Registry
 On-call translation services
 CoStar
 Zoom

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24 Exhibit A

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APPENDIX F – RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE

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ORDINANCE NO. NS- 3027

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING ARTICLE X OF CHAPTER 8

OF THE SANTA ANA MUNICIPAL CODE AND CREATING
A NEW ARTICLE XIX IN CHAPTER 8 OF THE SANTA ANA

MUNICIPAL CODE PERTAINING TO THE RENT

STABILIZATION AND JUST CAUSE EVICTION

ORDINANCES

THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS:

Section 1. The City Council of Santa Ana hereby finds, determines, and declares as follows:

A. At the City Council meetings on September 21, 2021, and October 5, 2021, the City Council discussed the City of Santa Ana' s (" Santa Ana" or " City") ability to address rent increases on residential real property and in mobilehome parks.

B. On October 19, 2021, the City Council adopted Ordinance No. NS- 3009, known as the Rent Stabilization Ordinance (" RSO") and Ordinance No. NS3010, known as the Just Cause Eviction Ordinance (" JCEO") appearing as Article X, Division 4 and Division 5 in the Santa Ana Municipal Code SAMC"). The RSO and JCEO were adopted to regulate rent increases and evictions in certain rental properties and mobilehome spaces in the City of Santa Ana.

C. The findings in Ordinance No. NS- 3009 and Ordinance No. NS-3010 articulate that significant rent increases and housing instability pose a threat to public health, safety and welfare, and a particular hardship for senior citizens, persons living on fixed incomes, and other vulnerable persons living in Santa Ana. These findings are still true and incorporated herein.

D. Additionally, the City Council adopted Resolution No. 2021- 054, directing staff to: ( 1) Conduct further study of the additional regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability; and, ( 2) Include the creation and operation of a Rent Board or similar body, a rent registry, and the related costs thereof.

E. On September 6, 2022, staff presented the Long -Term Implementation Plan for the RSO and JCEO to the City Council detailing various best practices based on findings from local sample jurisdictions with similar ordinances in the State of California.

Ordinance No. NS- 3027

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F. On September 6, 2022, the City Council adopted the Long -Term Implementation Plan for the RSO and JCEO and provided direction to staff to prepare amendments to the RSO and JCEO to implement efficient and effective program services to rental property owners and tenants and promote long- term sustainability of the programs.

G. The amendments proposed by this Ordinance are consistent with the adopted Long -Term Implementation Plan of the RSO and JCEO and the direction by City Council at the September 6, 2022 City Council meeting. These include:

1. Create a Rental Housing Board;

2. Create a Rental Registry;

3. Adopt a Rental Registry Fee;

4. Develop a Work Plan;

5. Conduct a Fee Study Based on the Work Plan and Staffing Needs;

6. Expand Compliance Activities;

7. Create a Capital Improvement Petition and Tenant Petition;

8. Establish Petition Fees and a Petition Review Process;

9. Create a Voluntary Mediation Process; and,

10. Join the Rent Stabilization Consortium.

H. Pursuant to the City' s police power, as granted broadly under Article XI, section 7 of the California Constitution, and Santa Ana Charter section 200, the Santa Ana City Council has the authority to enact and enforce ordinances and regulations for the public peace, health, and welfare of the City and its residents.

I. The City Council finds, determines and declares that the threat to the public health, safety and welfare of the City and its residents necessitates the enactment of the Ordinance.

The Request for City Council Action for amendments to these Ordinances dated October 4, 2022, shall, by this reference, be incorporated herein, and together with this Ordinance, any amendments or supplements, and oral testimony, constitute the necessary findings for this Ordinance.

Section 2. The recitals and statements of fact set forth in the preamble to this Ordinance are true and correct, constitute a substantive part of this Ordinance, and are incorporated herein by this reference.

Section 3. Divisions 4 and 5 of Article X ( Property Maintenance) of Chapter 8 Buildings and Structures) of the Santa Ana Municipal Code are hereby amended and moved to a new Article XIX ( Rent and Evictions) of Chapter 8 of the Santa Ana Municipal Code to read as follows:

Ordinance No. NS- 3027

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ARTICLE XIX. — RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCE DIVISION 1. — GENERALLY
Section 8- 3100 — Title
This Article shall be known in its entirety as the " City of Santa Ana Rent Stabilization and Just Cause Eviction Ordinance" and, for the sake of convenience, as the " Rent Stabilization and Just Cause Eviction Ordinance." Section 8- 3101 — Background
The Rent Stabilization Ordinance, previously adopted by the City Council on October 19, 2021, and the Just Cause Eviction Ordinance, also previously adopted by the City Council on October 19, 2021, are hereby amended pursuant to this newly adopted Rent Stabilization and Just Cause Eviction Ordinance.

Section 8- 3102 — Definitions
a) For purposes of this Article, the words and phrases shall be defined as set forth herein, unless the context clearly indicates a different meaning is intended. b) Words and phrases used in this Article, which are not specifically defined, shall be construed according to their context and the customary usage of the language. c) Words and phrases defined:

Annual Allowable Rent Adjustment" means the limit on the Maximum Allowable Rent Increase, which a Landlord may charge on any Rental Unit each year.

Capital Improvement" means an improvement, addition or major repair to a Rental Unit that were paid for and completed after November 19, 2021 the effective date of the first adopted Rent Stabilization Ordinance), provided such new improvement, addition or major repair has a useful life of five ( 5) years or more and that is required to be amortized over the useful life of the improvement, such as: structural, electrical, plumbing, or mechanism system, roofing, carpeting, draperies, stuccoing the outside of a building, air conditioning, security gates, swimming pool, sauna or hot tub, fencing, children' s play equipment permanently installed, the complete exterior painting of a building, and other similar improvements as defined under the straight line depreciation provisions of the Internal Revenue Code and the regulations issued pursuant thereto and determined by the Rental Housing Board. Capital Improvement does not Ordinance No. NS- 3027

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include normal or routine maintenance, repair, replacements, and/ or deterioration resulting from an unreasonable delay in the undertaking of completion or after a Notice of Violation by a government agency ordering repairs.

City" means the City of Santa Ana.

Hearing Officer" means a person who has been appointed by the Program Administrator to perform the duties set forth in this Article.

Housing Services" means those services provided and associated with the use or occupancy of a Rental Unit including, but not limited to, insurance, repairs, replacement, maintenance, effective waterproofing and weather protection, painting, providing light, heat, hot and cold water, elevator service, window shades and screens, laundry facilities and privileges, janitorial services, utilities that are paid by the Landlord, refuse removal, allowing pets, telephone, parking, storage, the right to have a specified number of Tenants or occupants, computer technologies, entertainment technologies, including cable or satellite television services, and any other benefits, privileges or facilities connected with the use or occupancy of such Rental Unit including a proportionate share of the services provided to common facilities of the building in which such Rental Unit is located and/or of the property on which such Rental Unit is located.

Landlord" or " Owner" means an owner of record, lessor, sublessor or any person, partnership, corporation, family trust, or any other business entity, or any successor in interest thereto, offering for rent or lease any Rental Unit or Mobilehome or Mobilehome Space in a Mobilehome Park in the City and shall include the employee, agent or representative of the Landlord if the agent or representative has the full authority to answer for the Landlord and enter into binding agreements on behalf of the Landlord.

Mediator" means a person whom the Program Administrator determines meets all of the following criteria:
1) Has received forty (40) to eighty (80) hours of formal training in mediation, including training in anti -racism, elimination of bias, diversity, equity, inclusion, and cultural competency; and, 2) Has mediated Rent disputes and/ or has had other experience or training showing a capability to mediate the issues which arise in landlord/ tenant disputes.

Mobilehome" means a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code. Mobilehome includes a manufactured home, as defined in Section 18007 of the Health and Safety Code, and a Mobilehome, as defined in Section 18008 of the Health and Safety Code, Ordinance No. NS- 3027

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but does not include a recreational vehicle, as defined in Section 799. 29 of this code and Section 18010 of the Health and Safety Code or a commercial coach as defined in Section 18001. 8 of the Health and Safety Code.

Mobilehome Space" means the rental of a spot for a Mobilehome within a Mobilehome Park by a homeowner, as defined in Civil Code section 798.9, or a resident, as defined in Civil Code section 798.11.

Mobilehome Park" means an area of land where two or more Mobilehome Spaces are rented, or held out for rent, to accommodate Mobilehomes used for human habitation.

Net Operating Income" means the net revenue received by the Landlord after paying the normal Operating Expenses ( gross revenue less normal operating expenses).

Operating Expenses" means the costs of normal operations, including, but not limited to, management, taxes, insurance, maintenance, repairs and other recurring costs.

Program Administrator" is a person designated by the City Manager to administer the provisions of this Article.

Rental Registry Fee" or "Fee" means the fee the City imposes on each Rental Unit to cover the costs to administer the provisions of this Article.

Rent' means all periodic compensation, including all non -monetary consideration, that a Tenant provides to a Landlord concerning the use or occupancy of a Rental Unit, including any amount included in the Rent for utilities ( unless separately billed to the Tenant by the utility company), parking, storage, pets or for any other fee or charge associated with the Tenancy for the use or occupancy of a Rental Unit and related Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. With respect to Mobilehomes and Mobilehome Spaces in Mobilehome Parks, any regulations of rent, fees, and costs included within the Mobilehome Residency Law, Civil Code section 798, et seq., shall be incorporated into the definition of Rent, as applicable.

Rent Increase" means any additional Rent demanded of or paid by a Tenant for a Rental Unit, including any reduction in Housing Services without a corresponding reduction in the amount demanded or paid for Rent; or a pro rata increase in costs of Housing Services apportioned to a Rental Unit.

Ordinance No. NS- 3027

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Rental Agreement" means a lease, sublease, or other agreement, written, oral or implied, between a Landlord and a Tenant for the use and/ or occupancy of a Rental Unit and for Housing Services. With respect to Mobilehomes and Mobilehome Spaces in Mobilehome Parks, any regulations of rental agreements or leases within the Mobilehome Residency Law, Civil Code section 798, et seq., shall be incorporated into the definition of Rental Agreement, as applicable.

Rental Housing Board" or "Board" means the Rental Housing Board established by Division 5 of this Article XIX of Chapter 8 of the Santa Ana Municipal Code.

Rental Registry" means the database or portal where Landlords register Rental Units, update Rental Unit information, update Tenancy information, submit notices, and pay the Rental Registry Fee.

Rental Unit" means any building, structure, or part thereof, or any Mobilehome and Mobilehome Spaces in a Mobilehome Park, offered or available for rent for residential use or occupancy in the City, including the land appurtenant thereto, together with all Housing Services in connection with the use or occupancy thereof, including common areas and recreational facilities held out for use by the Tenant, which is not exempt pursuant to the exemptions set forth in this Article.

Residential Real Property" or " Residential Property" means any housing unit, including a room or group of rooms designed and intended for occupancy by one or more persons, including a Rental Unit and a Mobilehome or Mobilehome Space in a Mobilehome Park, offered for rent or lease in the City.

Tenancy" means the right or entitlement of a Tenant to use or occupy a Rental Unit, including a Mobilehome or Mobilehome Space in a Mobilehome Park.

Tenant" means any renter, tenant, subtenant, lessee, sub -lessee, roommate with Landlord' s consent, or any other person or entity entitled under the terms of a Rental Agreement, or by sufferance, or by state or federal law, to the use or occupancy of any Rental Unit and ( i) has the legal responsibility for the payment of Rent for a Rental Unit or (ii) has agreed to pay the Rent for a Rental Unit.

Section 8- 3103 — Implementing Regulations, Policies and Procedures The City Manager or Program Administrator shall have the authority to promulgate regulations, policies and procedures to implement the requirements and Ordinance No. NS- 3027

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fulfill the purposes of this Article. No person shall fail to comply with such regulations, policies and procedures.

Section 8- 3104 — Mobilehome Residency Law
The provisions of this Article shall not supersede the regulations of the state Mobilehome Residency Law, Civil Code section 798, et seq., as applicable. If there is any conflict between the terms of this Article and the Mobilehome Residency Law, the Mobilehome Residency Law shall prevail.

DIVISION 2. — JUST CAUSE EVICTIONS
Section 8- 3120 — Restrictions on Termination of Tenancy without Just Cause a) After a Tenant has continuously and lawfully occupied a Residential Real Property for thirty ( 30) days, the Owner of the Residential Real Property shall not terminate the Tenancy without just cause, which shall be stated in the written notice to terminate Tenancy. The provisions of this section related to the termination of Tenants shall not apply to Mobilehomes or Mobilehome Spaces in Mobilehome Parks subject to the termination provisions of the Mobilehome Residency Law, Civil Code section 798. 56, as applicable.
1) The Owner shall post a notice on a form prescribed by the City, providing information about the existence of this Division 2 of Article XIX of Chapter 8 of the Santa Ana Municipal Code, including protections related to immigration or citizenship status of Tenant found under Civil Code section 1940. 35 and Code of Civil Procedure section 1161. 4, as may be amended. Notice must be posted in a conspicuous location on the property. The notice shall be written in the language that the Owner and Tenant used to negotiate the terms of the Tenancy e. g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as well as English.
2) In addition to all other notice requirements specified elsewhere in this Division, the Owner of any Residential Real Property or Mobilehome Space, is required to provide written notice to Tenants of their rights under this Division as follows:

A. The notice required by this Division must be on a form prescribed by the City and include the following information:

The existence and scope of this Division 2 of Article XIX of Chapter 8 of the Santa Ana Municipal Code; and,
Ordinance No. NS- 3027

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ii. The right to relocation assistance in limited
circumstances pursuant to subsection ( d)( 2) herein.

B. The Owner must provide Tenant with the notice upon serving any notice of change in terms of Tenancy.

C. The Owner must provide the notice on or before the
commencement of all Tenancies initiated after the effective date of this Division.
b) For purposes of this section, " just cause" includes either of the following:
1) At -fault just cause, which is any of the following:

A. Default in the payment of Rent.

B. A breach of a material term of the lease, as described in paragraph ( 3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation. A breach of a material term" shall not include:
i. The obligation to limit occupancy, provided that the additional occupant who joins the Tenant of the
Residential Real Property thereby exceeding the limits on occupancy set forth in the lease is:

I. A dependent under age 18, or
II. A replacement Tenant who moved in after an
approved Tenant vacated the Residential Real
Property, so long as the addition does not exceed
the Uniform Housing Code.

I. The Owner shall have the right to approve
or deny the prospective additional or
replacement Tenant, who is not a minor
dependent child, provided that the Owner
does not unreasonably withhold approval. If
the Owner fails to respond to the Tenant in
writing with a description of the reasons for
the denial of the request within a
reasonable amount of time of receipt of the
Tenant' s written request, the Tenant' s
request shall be deemed approved by the
Ordinance No. NS- 3027

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Owner if the lease is for a period of one ( 1)
year or less.
ii. A change in the terms of the Tenancy that is not the result of an express written agreement signed by both of the parties. An Owner is not required to obtain a Tenant' s written consent to a change in the terms of the Tenancy if the change in the terms of the Tenancy is authorized by this section, or if the Owner is required to change the terms of the Tenancy pursuant to federal, State, or local law. Nothing in this subsection shall exempt an Owner
from providing legally required notice of a change in the terms of the Tenancy.

C. Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph ( 4) of Section 1161 of the Code of Civil Procedure.

D. Committing waste as described in paragraph ( 4) of Section 1161 of the Code of Civil Procedure.

E. The Tenant had a written lease that terminated on or after the effective date of this Ordinance, and after a written request or demand from the Owner, the Tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.

F. Criminal activity by the Tenant on the Residential Real Property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision ( a) of Section 422 of the Penal Code, on or off the Residential Real Property, that is directed at any Owner or agent of the Owner of the Residential Real Property or members of Tenant' s household or other Tenants of the Residential Real Property. This at -fault, just cause provision shall apply if the Owner has, within a reasonable time, reported the criminal activity to law enforcement. Further, at -fault, just cause eviction of a Tenant under this provision shall only apply to that Tenant who committed the criminal activity described herein. If a Tenant is acquitted or found not guilty of the charges giving rise to eviction, or if charges are not filed against the Tenant within the applicable statute of limitations period, the Tenant shall be offered the right to restore the Tenancy only if the same Residential Real Property is available.

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G. Assigning or subletting the premises in violation of the Tenant' s lease, as described in paragraph ( 4) of Section 1161 of the Code of Civil Procedure.
i. Notwithstanding any contrary provision in this section, an Owner shall not take any action to terminate a Tenancy
based on a Tenant' s sublease of the Residential Real
Property if all the following requirements are met:

I. The Tenant requests permission from the Owner
in writing to sublease the Residential Real
Property;
II. The Tenant continues to reside in the Residential
Real Property as their primary residence;
III. The sublease replaces one or more departed
Tenants under the lease on a one -for -one basis;
and
IV. The Owner fails to respond to the Tenant in writing within a reasonable amount of time of the receipt
of the Tenant' s written request. If the Owner fails
to respond to the Tenant' s written request, the
request shall be deemed approved by the Owner if
the lease is for a period of one ( 1) year or less. An
Owner' s reasonable refusal of the Tenant' s written
request may be based on, but is not limited to, the
ground that the total number of occupants in a
Residential Real Property exceeds the maximum
number of occupants as determined under Section
503(b) of the Uniform Housing Code or successor
provision.

H. The Tenant' s refusal to allow the Owner to enter the Residential Real Property as authorized by Sections 1101. 5 and 1954 of the Civil Code, and Sections 13113. 7 and 17926. 1 of the Health and Safety Code.

I. Using the premises for an unlawful purpose as described in paragraph ( 4) of Section 1161 of the Code of Civil Procedure.

J. The employee, agent, or licensee' s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph ( 1) of Section 1161 of the Code of Civil Procedure.

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K. When the Tenant fails to deliver possession of the Residential Real Property after providing the Owner written notice as provided in Section 1946 of the Civil Code of the Tenant' s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the Owner but fails to deliver possession at the time specified in that written notice as described in paragraph ( 5) of Section 1161 of the Code of Civil Procedure.
2) No- fault just cause, which includes any of the following:
0 Intent to occupy the Residential Real Property by the Owner or their spouse, domestic partner, children,
grandchildren, parents, or grandparents.
ii. For leases entered into on or after the effective date of this Ordinance, this subsection shall apply only if the Tenant agrees, in writing, to the termination, or if a
provision of the lease allows the Owner to terminate the lease if the Owner, or their spouse, domestic partner,
children, grandchildren, parents, or grandparents
unilaterally decides to occupy the Residential Real
Property for a period of at least 24 months, as affirmed by the Owner in a written affidavit submitted to the City.

Addition of a provision allowing the Owner to terminate the lease as described in this clause to a new or renewed Rental Agreement or fixed -term lease constitutes a
similar provision for the purposes of subparagraph ( E) of paragraph ( 1).

B. Withdrawal of the Residential Real Property from the rental market for an anticipated period of at least 24 months, as affirmed by the Owner in a written affidavit submitted to the City.

The Owner complying with any of the following:

An order issued by a government agency or court
relating to habitability that necessitates vacating
the Residential Real Property.

II. An order issued by a government agency or court
to vacate the Residential Real Property.

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III. A local ordinance that necessitates vacating the
Residential Real Property.
ii. If it is determined by any government agency or court that the Tenant is at fault for the condition or conditions triggering the order or need to vacate under clause ( i), the Tenant shall not be entitled to relocation assistance as outlined in paragraph ( 3) of subdivision ( d).

Intent to demolish or to substantially remodel the
Residential Real Property.

The Owner shall provide advance notice to the
Tenant of the ability to reoccupy the unit upon
completion of the repairs, or if requested by the
Tenant, the right of first refusal to any comparable
vacant Rental Unit which has been offered at
comparable Rent owned by the Owner; and
II. In the event the Owner seeks to rent the
remodeled unit within six ( 6) months following the
completion of the remodeling work, the evicted
Tenant shall have the right of first refusal to
reoccupy and rent the unit, unless the Owner
provides a written waiver by the Tenant of their
right to reoccupy the premises pursuant to this
subsection.
iii. For purposes of this subparagraph, " substantially remodel' means the replacement or substantial
modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a
governmental agency, or the abatement of hazardous
materials, including lead -based paint, mold, or asbestos, in accordance with applicable federal, State, and local laws, that cannot be reasonably accomplished in a safe
manner with the Tenant in place and that requires the
Tenant to vacate the Residential Real Property for at
least 30 days. Cosmetic improvements alone, including
painting, decorating, and minor repairs, or other work that can be performed safely without having the Residential
Real Property vacated, do not qualify as a substantial
remodel.

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c) Before an Owner of Residential Real Property issues a notice to terminate a Tenancy for just cause that is a curable lease violation, the Owner shall first give notice of the violation to the Tenant with an opportunity to cure the violation pursuant to paragraph ( 3) of Section 1161 of the Code of Civil Procedure. If -the violation is not cured within the time period set forth in the notice, a three- day notice to quit without an opportunity to cure may thereafter be served to terminate the Tenancy.
d)
1) Any written notice to cease or correct must:

A. Be dated and served upon the Tenant, pursuant to at least one of the methods authorized under California Code of Civil Procedure Section 1162, as may be amended;
B. Inform the Tenant that failure to cure may result in the initiation of eviction proceedings;
C. Inform the Tenant of the right to request a reasonable accommodation;
D. Inform the Tenant of the contact number for the Program Administrator; and
E. Include a specific statement of the reasons for the written notice to cease or correct with specific facts to help the Tenant determine the date( s), place( s), witness( es), and
circumstance(s) that support the reason( s) for the eviction. 1) For a Tenancy for which just cause is required to terminate the Tenancy under subdivision ( a), if an Owner of Residential Real Property issues a termination notice based on a no- fault just cause described in paragraph ( 2) of subdivision ( b), the Owner shall, regardless of the Tenant' s income, at the Owner' s option, do one of the following:

A. Assist the Tenant to relocate by providing a direct payment to the Tenant as described in paragraph 3; or
B. Waive in writing the payment of Rent for the final three ( 3) months of the Tenancy, prior to the Rent becoming due.
2) If an Owner issues a notice to terminate a Tenancy for no-fault just cause, the Owner shall notify the Tenant of the Tenant' s right to relocation assistance or Rent waiver and all other rights pursuant to this section. If the Owner elects to waive the Rent for the final three ( 3) Ordinance No. NS- 3027

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3)
month of the Tenancy as provided in subparagraph ( B) of paragraph 1), the notice shall state the amount of Rent waived and that no Rent is due for the final three ( 3) months of the Tenancy.

A. The amount of relocation assistance or Rent waiver shall be equal to three ( 3) months of the Tenant' s Rent that was in effect when the Owner issued the notice to terminate the Tenancy.

Any relocation assistance shall be provided within 15 calendar days of service of the notice.

B. If a Tenant fails to vacate after the expiration of the notice to terminate the Tenancy, the actual amount of any relocation assistance or Rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.

C. The relocation assistance or Rent waiver required by this section shall be credited against any other relocation assistance required by any other law.
4) An Owner' s failure to strictly comply with this section shall render the notice of termination void.
e) This section shall not apply to the following types of residential real properties or residential circumstances:
1) Transient and tourist hotel occupancy as defined in subdivision ( b) of Section 1940 of the Civil Code.
2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569. 2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. 4) Housing accommodations in which the Tenant shares bathroom or kitchen facilities with the Owner who maintains their principal residence at the Residential Real Property.
5) Single-family Owner -occupied residences, including a residence in which the Owner -occupant rents or leases no more than two units or Ordinance No. NS- 3027

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bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
6) A duplex in which the Owner occupied one of the units as the Owner's principal place of residence at the beginning of the Tenancy, so long as the Owner continues in occupancy.
7) Housing that has been issued a certificate of occupancy within the previous 15 years.
8) Residential Real Property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:

A. The Owner is not any of the following:

I
A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one member is a corporation.

The Tenants have been provided written notice that the
Residential Property is exempt from this section using the following statement: " This property is not subject to the just cause requirements of Santa Ana Municipal Code
Chapter 8, Article XIX, Division 2. This property meets the requirements of Santa Ana Municipal Code section 8- 3120( e)( 8) and the Owner is not any of the following: ( 1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; ( 2) a corporation; or (3) a limited liability company in which at least one member is a corporation."
ii. For a Tenancy existing before the effective date of this Ordinance, the notice required under clause ( i) may, but is not required to, be provided in the Rental Agreement. iii. For any Tenancy commenced or renewed on or after the effective date of this Ordinance, the notice required under clause ( i) must be provided in the Rental Agreement.
iv. Addition of a provision containing the notice required under clause ( i) to any new or renewed Rental
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Agreement or fixed -term lease constitutes a similar
provision for the purposes of subparagraph ( E) of
paragraph ( 1) of subdivision ( b).
9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
f) An Owner of Residential Real Property subject to this section shall provide notice to the Tenant as follows:
1) For any Tenancy commenced or renewed on or after the effective date of this Ordinance, as an addendum to the lease or Rental Agreement, or as a written notice signed by the Tenant, with a copy provided to the Tenant.
2) For a Tenancy existing prior to the effective date of this Ordinance, by written notice to the Tenant no later than thirty ( 30) days after the effective date of this Ordinance, or as an addendum to the lease or Rental Agreement.
3) The notification or lease provision shall be in no less than 12- point type, and shall include the following: " The Santa Ana Municipal Code provides that after all of the Tenants have continuously and lawfully occupied the property for at least thirty ( 30) days, an Owner must provide a statement of cause in any notice to terminate a Tenancy.

See Division 2 of Article XIX of Chapter 8 of the Santa Ana Municipal Code for more information."
g) It shall be a defense to an action for possession of a Rental Unit under this Division if a trier of fact determines that:
1) Both of the following provisions apply:

A. The Tenant or Tenant' s household member is a victim of an act or acts that constitute domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking if the domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking has been documented by one of the following:

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i. A temporary restraining order, emergency protective
order, or protective order issued within the last 180 days pursuant to law that protects the Tenant or a household member from domestic violence, elder or dependent
adult abuse, sexual assault, human trafficking, or
stalking; or
ii. The Tenant or a member of their household has filed a police report within the previous 180 days alleging that they are a victim of domestic violence, elder or
dependent adult abuse, sexual assault, human
trafficking, or stalking.

B. The notice to vacate is substantially based upon the act or acts constituting domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking against the Tenant or their household member, including, but not limited to, an action for possession based on complaints of noise,
disturbances, or repeated presence of police.
2) Notwithstanding this Section, an Owner may terminate the Tenancy if:

A. The Tenant or the person protected by a court order or who filed a police report allows the person against whom the protective order has been issued or who was named in the police report as committing an act of domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking, to visit the rental property; or
B. The Owner reasonably believes the presence of the person against whom the protective order has been issued or who was named in the police report as having committed an act of domestic violence, elder or dependent adult abuse, sexual assault, human trafficking, or stalking poses a physical threat to other Tenants, guests, invitees, or to a Tenant' s right to quiet enjoyment and the Owner previously gave the Tenant a three 3) day written notice to cease and correct this violation. 3) The provisions of this Division shall not supersede any other applicable state laws relating to victims of an act of domestic violence, sexual assault, stalking, human trafficking, abuse of an elder or a dependent adult, or of other specified crimes, as provided for in Civil Code section 1946. 7 and Code of Civil Procedure sections 1161. 3 and 1174.27. h) It shall be a defense to a no fault just cause action for possession of a Rental Unit under this Division if a person under the age of 21 is a resident Ordinance No. NS- 3027

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of the subject Rental Unit, or has a custodial or family relationship with a Tenant in the subject Rental Unit, and who is registered and actively attending any level of school during a specified school term. i) At least sixty ( 60) days prior to the sale of a Mobilehome Park, the Owner shall provide notice of such proposed sale to the Mobilehome Park residents and prepare a report on the impact of the sale of the Mobilehome Park, including a replacement and relocation plan that adequately mitigates the impact upon the ability of any displaced residents of the Mobilehome Park to be sold to find adequate housing in a Mobilehome Park, as applicable.

Q) Any waiver of the rights under this section shall be void as contrary to public policy.

Section 8- 3121 — Notice of Termination of Tenancy.
a) When terminating a Tenancy either at -fault or no- fault, an Owner must comply with all of the following:
1) The Owner must serve a written notice in accordance with Civil Code sections 1946 through 1946. 5, to the Tenant that states that, in addition to any information required by federal or State law, the Owner will terminate the Tenancy, and that indicates at least one at -fault or no-fault just cause reason as provided in section 8- 3120( b); and 2) The Owner has not accepted and will not accept Rent or any other consideration in return for the continued use of the Residential Property beyond the term of the terminated Tenancy in compliance with Civil Code sections 1945 through 1946. 5; and
3) The Owner qualifies the termination as at -fault or no- fault just cause, as specified in section 8- 3120( b); and
4) The Owner has submitted to the City, within five ( 5) days after service of the notice of termination on the Tenant, a true and accurate copy of the Owner' s written notice of termination, and proof of such service, signed under penalty of perjury, on the Tenant, through the City's Rental Registry portal. The Owner shall maintain proof of service to the City as evidence that the Owner has complied with this section. 5) The Owner must provide the notice in the language that the Owner and Tenant used to negotiate the terms of the Tenancy, in addition to English.

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Santa Ana City CouncilMay 16, 2023

Santa Ana City Council
May 16, 2023