Agenda packet — Santa Ana City Council, November 21, 2023 (part 1 of 11)

City Council Meeting Packet
November 21, 2023
CLOSED SESSION MEETING – 5:00 PM
REGULAR OPEN MEETING – 5:30 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
Steven A. Mendoza
Acting 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/agendasandminutes.

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 youth • Safe and healthy community • Neighborhood pride • Thriving economic climate • EihdddiltQlitti
City Council 1 11/21/2023
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/agendasandminutes.

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. As a courtesy to the public, 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 – As a courtesy, 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) 900 9128 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 speakbydialing*9fromyourphoneoryoumayvirtuallyraiseyourhandfromZoom City Council 2 11/21/2023
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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. As a courtesy to the public, 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:

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 5:00 p.m. for Closed Session items and by 5:45 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 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL and raise your hand BY 5:00 p.m. Speakers who are not in the speaker queue with their hand raised by 5:00 p.m. willnotbepermittedtospeak
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presiding chair.

The following designated public comment periods are:

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 and raise your hand PRIOR TO 5:45 p.m. Speakers who are not in the speaker queue with their hand raised by 5:45 p.m. will not be permitted to speak.

3. LIVE PUBLIC COMMENTS ON PUBLIC HEARING 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 5:45 p.m. will not be permitted to speak.

4. 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 5:45 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 ).

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 Council 4 11/21/2023
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 ).

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
Acting City Manager Steven A. Mendoza
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 LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a):

Agency Negotiator: Ramon Figueroa, Acting Human Resources Executive Director Employee Organization:

Service Employees’ International Union (SEIU) PartTime Civil Service Employees

2. PUBLIC EMPLOYEE EMPLOYMENT/APPOINTMENT pursuant to Government Code 54957
Title: Acting City Manager/Interim City Manager/Permanent City Manager RECONVENE – City Council will reconvene to continue regular City business.

CITY COUNCIL REGULAR OPEN SESSION
CALL TO ORDER
City Council 5 11/21/2023
54957
Title: Acting City Manager/Interim City Manager/Permanent City Manager RECONVENE – City Council will reconvene to continue regular City business.

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
Acting City Manager Steven A. Mendoza
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
PLEDGE OF ALLEGIANCE Mayor Amezcua
WORDS OF INSPIRATION Pastor Carl Gutierrez, Rock of
Salvation Christian Center
ADDITIONS\DELETIONS TO THE AGENDA
CEREMONIAL PRESENTATIONS

1. Certificate of Recognition presented by Mayor Amezcua to The Seva Collective for Outstanding Contributions to the Community

2. Certificate of Recognition presented by Councilmember Bacerra to Roquette’s Cafe & Bistro in Honor of their OneYear Anniversary
STAFF PRESENTATIONS

3. Update from League of California Cities
CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

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
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Session.

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: 4 through 33 and waive readings for resolutions and ordinances.

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

5. Minutes from the Special Closed Sessions and Regular Meetings of April 4, 2023 and April 18, 2023
Department(s): City Clerk’s Office
Recommended Action: Approve minutes.

6. Review and Approve the Annual Calendar of City Council Meetings for 2024 Department(s): City Clerk’s Office
Recommended Action:

1. Review calendar of regularly scheduled City Council meetings in 2024.

2. Cancel the regularly scheduled City Council meetings of January 2, 2024, August 6, 2024, and November 5, 2024.

3. Direct staff to post Notice(s) of Cancellation and waive notice to the City Council of said meetings as required by the Government Code.

7. City's Response to Orange County Grand Jury Report: Historic Rain, Yet Drought Remains
Department(s): Public Works Agency
Recommended Action: Approve the City of Santa Ana's response to the findings and recommendations of the 20222023 Orange County Grand Jury Report, Historic Rains, Yet Drought Remains, pursuant to Penal Code Sections 933 and 933.05.

8. Receive and File Quarterly Report of Investments as of September 30, 2023 Department(s): Finance and Management Services
Recommended Action: Receive and file Quarterly Report of Investments as of September 30, 2023.

9. Receive and File Quarterly Report of Contracts up to $50,000 for NonPublic Works and up to $500,000 for Public Works Authorized by the City Manager as Permitted by Charter Section 421
Department(s): Finance and Management Services
City Council 7 11/21/2023
Department(s): Finance and Management Services
Recommended Action: Receive and file Quarterly Report of Investments as of September 30, 2023.

9. Receive and File Quarterly Report of Contracts up to $50,000 for NonPublic Works and up to $500,000 for Public Works Authorized by the City Manager as Permitted by Charter Section 421
Department(s): Finance and Management Services
Recommended Action: Receive and file Quarterly Report of Contracts entered into between July 1, 2023 to September 30, 2023.

10. Award Aggregate Blanket Order Contracts to Clean Space Project, LLC & Essential Care Supplies, Inc. for Nitrile Gloves in a NottoExceed Aggregate Amount of $200,000 (Specification No. 23139) (General Fund)
Department(s): Police Department
Recommended Action: Award aggregate blanket order contracts to vendors listed below for the purchase of nitrile gloves on an asneeded basis in an annual amount not to exceed $40,000, with a total aggregate contract amount not to exceed $200,000, for an initial oneyear term expiring on November 14, 2024, with provisions for four, oneyear renewal options, subject to nonsubstantive changes approved by the City Manager and City Attorney.

Clean Space Project, LLC Wheat Ridge, CO
Essential Cares Supplies, Inc. Los Angeles, CA

11. Amend Blanket Order Contract with Hardy & Harper, Inc. for Asphalt Street Maintenance to Extend the Final Contract Term for an Additional 12 Month Period and Increase Total Contract for a Revised Total Not to Exceed Amount of $8,590,000 (Specification No. 18084) (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an amendment to the blanket order contract with Hardy & Harper, Inc. for asphalt street maintenance to extend the contract term for an additional 12 month period ending November 30, 2024, and increase the annual contract amount by $850,000 during the final extension period, for a revised total annual amount of $2,290,000, and total contract amount not to exceed $8,590,000 subject to nonsubstantive changes approved by the City Manager and City Attorney.

12. Award a Purchase Order to Terex Utilities for One Terex HiRanger LT40 Bucket Truck, in an Amount Not to Exceed $246,693 (Specification No. 23166) (General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize a onetime purchase and payment of purchase order to Terex Utilities for one Terex HiRanger LT40 Bucket Truck, in the amount of $241,693, plus a contingency amount of $5,000, for a total amount not to exceed $246,693, subject to nonsubstantive changes approved by the City Manager and City Attorney.

13. Award a Purchase Order to National Auto Fleet Group for One Ford Super Duty F550 TkiAtNttEd$200647(SifitiN23158)(N
City Council 8 11/21/2023
Department(s): Public Works Agency
Recommended Action: Authorize a onetime purchase and payment of purchase order to Terex Utilities for one Terex HiRanger LT40 Bucket Truck, in the amount of $241,693, plus a contingency amount of $5,000, for a total amount not to exceed $246,693, subject to nonsubstantive changes approved by the City Manager and City Attorney.

13. Award a Purchase Order to National Auto Fleet Group for One Ford Super Duty F550 Truck, in an Amount Not to Exceed $200,647 (Specification No. 23158) (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize a onetime purchase and payment of purchase order to National Auto Fleet Group for one Ford Super Duty F550 Truck, in the amount of $180,647, plus a contingency amount of $20,000, for a total amount not to exceed $200,647, subject to nonsubstantive changes approved by the City Manager and City Attorney.

14. Approve an Appropriation Adjustment and Approve Change Order to Add Funds in the Amount of $280,000 to an Existing Construction Contract with Excel Paving Company, Inc. for a Revised Estimated Project Delivery Cost of $2,557,000, for the West Willits Protected Bicycle Lane Project (Project No. 196948 (ATPSB1L5063(195))) (NonGeneral Fund).

Department(s): Public Works Agency
Recommended Action:

1. Approve an appropriation adjustment recognizing prioryear fund balance of $280,000 in the Residential Street Improvement fund, Prior Year Carry Forward revenue account (AU 058170250001) and appropriate the same amount into the Residential Street improvement fund, Improvements Other Than Building expenditure account (AU 0581766066220) for FY 20232024 capital operating expenses. (Requires five affirmative votes).

2. Approve an amendment to the Project Cost Analysis to reflect the new amount of $488,200 for project contingency for unanticipated or unforeseen work, for a total Construction Delivery Cost of $2,557,000, subject to nonsubstantive changes approved by the City Manager.

3. Approve an amendment to the Fiscal Year 202324 Capital Improvement Program for $280,000 for construction contingency funds, for the West Willits Protected Bicycle Lane Project (Project No. 196948).

15. Approve Agreement with XV Solutions to Provide SCADA Network Consulting and Support Services in an Amount Not to Exceed $750,000 for Up to a FiveYear Term (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an agreement with XV Solutions to provide oncall supervisory control and data acquisition network consulting and support services, for a total amount not to exceed $750,000, for a threeyear term beginning November 21, 2023 and expiring November 20, 2026, with provisions for one, twoyear extension, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX). 16ApproveanAgreementwithLittleDiversifiedArchitecturalConsultingIncforthe City Council 9 11/21/2023
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an agreement with XV Solutions to provide oncall supervisory control and data acquisition network consulting and support services, for a total amount not to exceed $750,000, for a threeyear term beginning November 21, 2023 and expiring November 20, 2026, with provisions for one, twoyear extension, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

16. Approve an Agreement with Little Diversified Architectural Consulting, Inc. for the Design Services for a Park Master Plan and Community Center at Chepa’s Park (Project No. 247533) (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a consultant agreement with Little Diversified Architectural Consulting, Inc. to provide a park master plan and design for a new community center in the amount of $441,512, with a contingency of $58,488, for a total amount not to exceed $500,000, for a threeyear term beginning November 21, 2023 and expiring November 20, 2026, with an option for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

17. Approve Agreements with Earth Mechanics, Inc., Geocon West, Inc., Kleinfelder, Inc., Leighton Consulting, Inc., and Ninyo & Moore Geotechnical and Environmental Sciences Consultants for OnCall Geotechnical Engineering Services dba Ninyo & Moore in an Aggregate Amount Not to Exceed $2,000,000, 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 Earth Mechanics, Inc., Geocon West, Inc., Kleinfelder, Inc., Leighton Consulting, Inc., and Ninyo & Moore Geotechnical and Environmental Sciences Consultants to provide oncall geotechnical engineering services for a shared aggregate amount not to exceed $2,000,000, for a threeyear term beginning November 21, 2023 and expiring on November 20, 2026, with the provision for one twoyear extension, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

18. Approve Third Amendment with E Source Companies, LLC to Extend the Agreement Term and Increase the Total Agreement Amount by $250,000 for Automated Metering Infrastructure Planning and Implementation Services (NonGeneral Fund) (Project 16 6460)
Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute a third amendment to the agreement with E Source Companies, LLC to extend the term to expire November 20, 2024, and increase the total compensation by $250,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Approve an amendment to the FY 202324 Capital Improvement Program to include $250,000 in planning funds for the Automated Metering Infrastructure Project.

19. Approve Agreement with AVEVA Select California for Wonderware Software Support Services and Licensing in an Amount Not to Exceed $291,621.75 for Up to a ThreeYear Term (NonGeneral Fund) City Council 10 11/21/2023
expire November 20, 2024, and increase the total compensation by $250,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Approve an amendment to the FY 202324 Capital Improvement Program to include $250,000 in planning funds for the Automated Metering Infrastructure Project.

19. Approve Agreement with AVEVA Select California for Wonderware Software Support Services and Licensing in an Amount Not to Exceed $291,621.75 for Up to a ThreeYear Term (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an agreement with AVEVA Select California to provide SCADA software, hardware, and installation services to the City’s water production facilities in an amount of $277,735 with a 5% contingency of $13,886.75, for a total not to exceed $291,621.75, for a threeyear term beginning November 21, 2023 and expiring November 20, 2026, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023 XXX).

20. Approve an Amendment with Sedaru, formerly known as ID Modeling, Inc., to Extend the Agreement Term through June 30, 2024 for Water System Modeling Software (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a second amendment to the agreement with Sedaru for Water System Modeling Software to extend the existing term to expire June 30, 2024, with no supplementary expenses to the previously executed amount, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

21. Amend Agreement with EEC Environmental for Waste Discharge Requirement Compliance Services by an Additional $250,000 for the Remainder of the Agreement Term (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a first amendment to the agreement with EEC Environmental for Waste Discharge Requirement compliance services to increase the total amount by $250,000 for the remainder of the term, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

22. Approve Agreement with Jacob Green & Associates for Consultant Services Related to City Manager Recruitment (General Fund)
Department(s): City Attorney’s Office, Human Resources
Recommended Action: Approve an agreement with Jacob Green & Associates for organizational and leadership development consulting services, including executive search services for recruitment for a permanent City Manager, for a term beginning November 21, 2023 and ending June 30, 2024 with one optional sixmonth extension, in an amount not to exceed $50,000 (Agreement No. 2023XXX).

23. Approve Agreement for Legal Counsel Services and Approve a Separate Agreement for Special Services: Training and Consulting Services with Liebert Cassidy Whitmore (LCW); Approve Amendment to Agreement with Richards Watson & GAPCfLlSiAAtithRiBdfLl
City Council 11 11/21/2023
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organizational and leadership development consulting services, including executive search services for recruitment for a permanent City Manager, for a term beginning November 21, 2023 and ending June 30, 2024 with one optional sixmonth extension, in an amount not to exceed $50,000 (Agreement No. 2023XXX).

23. Approve Agreement for Legal Counsel Services and Approve a Separate Agreement for Special Services: Training and Consulting Services with Liebert Cassidy Whitmore (LCW); Approve Amendment to Agreement with Richards Watson & Gerson APC for Legal Services; Approve Agreement with Ring Bender for Legal Services; and Approve Agreement with Goldfarb & Lipman LLP for Legal Services (General Fund)
Department(s): City Attorney Office, Human Resources
Recommended Action:

1. Authorize the City Manager to execute an Agreement with LCW to provide special legal counsel services for an amount not to exceed $300,000 for a term beginning November 21, 2023 and ending December 31, 2026 with one optional oneyear extension, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Authorize the City Manager to execute a separate Agreement for Special Services with LCW to provide training and consulting services as a member of the Orange County Employment Relations Committee, renewable annually, in an amount not to exceed $5,000 plus a 5% annual increase, per year, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023 XXX).

3. Authorize the City Manager to execute a first amendment to an agreement with the law firm of Richards Watson & Gershon APC (RWG) for legal services for municipal advisory and litigation services including, but not limited to, elections work and employment matters, for the period of June 1, 2020 until May 31, 2024, in an amount not to exceed $300,000 for a total amount not to exceed $550,000, subject to nonsubstantive changes approved by the City Manager and the City Attorney (Agreement No. 2023XXX).

4. Authorize the City Manager to execute a legal services agreement with the law firm of Ring Bender LLP for municipal litigation services, including but not limited to litigation regarding AC 2525 Main v. City of Santa Ana, for the period of November 21, 2023 to June 30, 2026, with an option to extend for up to one year, in an amount not to exceed $500,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

5. Authorize the City Manager to execute a legal services agreement with the law firm of Goldfarb & Lipman LLP for municipal advisory and litigation services, including but not limited to, defending the City in litigation challenging the Rent Stabilization and Just Cause Eviction Ordinance, housing, affordable housing, fair housing, rent stabilization, land use, and real property issues for the period of November 21, 2023 to November 30, 2026, with an option to extend for up to one year, in an amount not to exceed $500,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

City Council 12 11/21/2023
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2023 to November 30, 2026, with an option to extend for up to one year, in an amount not to exceed $500,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

24. Award a Purchase Order to Vector Resources, Inc. and approve an agreement with Hewlett Packard Enterprise Company for Aruba wireless communication technology hardware and services in a total not to exceed amount of $555,407 (Specification No. 23145) (NonGeneral Fund) (Revive Santa Ana Program)
Department(s): Information Technology
Recommended Action: 1. Authorize a onetime purchase and payment of Purchase Order to Vector Resources, Inc. for Aruba wireless communication technology hardware and services in an amount not to exceed $482,962, plus a 15% contingency of $72,445, for a total not to exceed amount of $555,407, subject to nonsubstantive changes approved by the City Manager and City Attorney.

2. Authorize the City Manager to execute an agreement with Hewlett Packard Enterprise Company for HPE’s Aruba High Touch Services. Vector Resources, Inc. is an authorized indirect reseller of Hewlett Packard Enterprise Company. Funding for HPE’s Aruba High Touch Services will be issued to Vector Resources, Inc. There is no fiscal impact directly associated with Hewlett Packard Enterprise Company (Agreement 2023XXX).

25. Appropriation Adjustment and Agreement Accepting $640,000 from the State Office of Traffic Safety for Selective Traffic Enforcement Program (NonGeneral 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 oneyear period beginning October 1, 2023 through September 30, 2024, in an amount not to exceed $640,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Approve an appropriation adjustment accepting $640,000 in the Office of Traffic Safety, Federal GrantIndirect revenue account and appropriate same to the Selective Traffic Enforcement Program expenditure accounts. (Requires five affirmative votes)

26. Approve Memorandum of Understanding and Appropriation Adjustment Accepting the FY 2023 Edward Byrne Memorial Justice Assistance Grant (NonGeneral Fund) Department(s): Police Department
Recommended Action: 1. Authorize the City Manager and the Chief of Police to execute a Memorandum of Understanding with the County of Orange, Sheriff’s Department accepting the 2023 Edward Byrne Memorial Justice Assistance Grant in the amount of $110,336, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Approve an appropriation adjustment recognizing $110,336 in the Law Enforcement Grants revenue account and appropriate same to the Byrne Justice Assistance expenditure accounts. (Requires five affirmative votes.)

27. Approve Agreements with MissionCentered Solutions, Inc. in the Amount of $189,875 and Utility Response Training Associates, LLC in the Amount of $134,600 to Provide Training Services for the Urban Area Security Initiative Grant Program (NonGeneral Fund)
Department(s): Police Department
Recommended Action: Authorize the City Manager to execute threeyear agreements, with two oneyear renewal options, with the following two vendors to provide ongoing training deliverables to the Anaheim/Santa Ana Urban Area on an asneeded basis, for the period of November 21, 2023 through November 20, 2026 in an aggregate amount not to exceed $324,475, subject to nonsubstantive changes approved by the City Manager and City Attorney:

MissionCentered Solutions, Inc. – total amount not to exceed $189,875 (Agreement No. 2023XXX)
Utility Response Training Associates, LLC – total amount not to exceed $134,600(Agreement No. 2023XXX)

28. Adopt a Resolution, Approve a Memorandum of Understanding and Appropriation Adjustment Accepting Additional FY 2022 Urban Area Security Initiative Grant Program Funds (NonGeneral Fund)
Department(s): Police Department
Recommended Action:

1. Adopt a resolution authorizing and directing the City Manager and the Chief of Police or their designee(s) to accept an additional $105,000 in FY 2022 Urban Area Security Initiative Funding, increasing the subrecipient award from $1,822,800 to $1,927,800.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING ADDITIONAL FY2022 URBAN AREA SECURITY INITIATIVE SUBRECIPIENT FUNDING AND APPROPRIATION ADJUSTMENT

2. Approve an Appropriation Adjustment recognizing an additional $105,000 in grant revenue from the FY 2022 Urban Area Security Initiative funding program revenue account and appropriate same to the FY 2022 Urban Area Security Initiative Program Grant expenditures accounts. (Requires five affirmative votes).

3. Authorize the City Manager and the Chief of Police to execute the Memorandum of Understanding with the City of Anaheim for the FY 2022 Urban Area Security Initiative Grant Program, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

29. Adopt Resolutions Authorizing Grant Applications for the Fiscal Year 202425 MM2ChiTttiFdiP(NGlFd)
City Council 14 11/21/2023

29. Adopt Resolutions Authorizing Grant Applications for the Fiscal Year 202425 Measure M2 Comprehensive Transportation Funding Program (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: 1. Adopt Resolutions authorizing the City of Santa Ana to submit applications for funding consideration under the Measure M2 Comprehensive Transportation Funding Program 202425 Call for Projects.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE COMPREHENSIVE TRANSPORTATION PROGRAM
RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE REGIONAL TRAFFIC SIGNAL SYNCHRONIZATION

PROGRAM

2. Direct Staff to incorporate approved Comprehensive Transportation Funding Program projects into the SevenYear Capital Improvement Program for Fiscal Year 202425.

30. Resolution and Authorization to Carry Over Grant Funds to the 2025 Federal Transportation Improvement Program as required by Funding Agency Department(s): Public Works Agency
Recommended Action:

1. Authorize the City Manager to submit selected projects to the Orange County Transportation Authority for inclusion into the 2025 Federal Transportation Improvement Program.

2. Adopt a Resolution certifying that the City has the resources to fund the projects submitted for inclusion into the 20252030 Federal Transportation Improvement Program, and confirm the City’s commitment to implement all projects submitted to the program.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CERTIFYING THAT THE CITY HAS THE RESOURCES TO FUND PROJECTS IN THE 2023/242029/30 TRANSPORTATION
IMPROVEMENT PROGRAM AND AFFIRMING THE CITY’S COMMITMENT TO IMPLEMENT ALL PROJECTS IN THE PROGRAM

31. Density Bonus Agreement No. 202302 to Facilitate the Construction of a Rental Residential Development Consisting of 22 Apartment Units, with Two Units Proposed as Affordable to Very Low Income Households
Department(s): Planning and Building Agency
Recommended Action:

City Council 15 11/21/2023
IMPLEMENT ALL PROJECTS IN THE PROGRAM

1. Adopt a resolution approving Density Bonus No. 202302 as conditioned.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DENSITY BONUS AGREEMENT NO. 202302 AS CONDITIONED FOR A NEW RENTAL
RESIDENTIAL DEVELOPMENT WITH TWENTYTWO UNITS FOR THE
PROPERTY LOCATED AT 322 NORTH HARBOR BOULEVARD (APN: 198 05117) (includes determination that no additional environmental review will be required in accordance with the California Environmental Quality Act as a Notice of Exemption, Environmental Review No. 202212 will be filed for this project)

2. Authorize the City Manager to execute a Density Bonus Agreement with P&P Bros Corp., for a 55year term, for a rental residential development consisting of 22 apartment units, with two units proposed as affordable to very low income households at 322 N. Harbor Boulevard, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

32. Resolution Approving Appeal Application Nos. 202302 and 202303 and Overturning the Determination of the Planning Commission, Thereby Denying Site Plan Review (SPR) No. 202301 and Tentative Tract Map (TTM) No. 202303 (County Map No. 19243) to Facilitate the Construction of a MixedUse Development Known as Cabrillo Town Center at 1901 E. Fourth Street
Department(s): Planning and Building Agency
Recommended Action:

Adopt a resolution documenting the City Council decision of October 3, 2023, denying SPR No. 202301 and TTM No. 202303 for the Cabrillo Town Center at 1901 E.

Fourth Street.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING APPEAL APPLICATION NOS. 202302 AND 202303 AND OVERTURNING THE DETERMINATION OF THE PLANNING COMMISSION, THEREBY DENYING SITE PLAN REVIEW (SPR) NO. 202301 AND TENTATIVE TRACT MAP (TTM) NO. 202303 (COUNTY MAP NO. 19243) TO FACILITATE THE CONSTRUCTION OF A MIXEDUSE DEVELOPMENT KNOWN AS CABRILLO TOWN CENTER AT 1901 AND 1971 EAST FOURTH STREET AND 515 AND 525 NORTH CABRILLO PARK DRIVE, COLLECTIVELY 1901 EAST FOURTH STREET (APNS: 40005102; 40005109; 40005114; AND 40005115)

33. Second OneYear Extension of Site Plan Review No. 201603 and Variance Nos. 201705 and 201706 for The Madison MixedUse Development Project Located at 200 North Cabrillo Park Drive
Dtt()PlidBildiA
City Council 16 11/21/2023
AS CABRILLO TOWN CENTER AT 1901 AND 1971 EAST FOURTH STREET AND 515 AND 525 NORTH CABRILLO PARK DRIVE, COLLECTIVELY 1901 EAST FOURTH STREET (APNS: 40005102; 40005109; 40005114; AND 40005115)

1. Adopt a resolution approving a second oneyear extension of Site Plan Review No. 201603, Variance No. 201705, and Variance No. 201706.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A ONEYEAR EXTENSION OF SITE PLAN REVIEW NO. 201603, VARIANCE NO. 201705, AND VARIANCE NO. 201705, AND VARIANCE NO. 201706 FOR THE MADISON MIXEDUSE DEVELOPMENT TO BE LOCATED AT 200 NORTH CABRILLO PARK DRIVE

2. Determine that in accordance with the California Environmental Quality Act (CEQA), the approval of the time extension is exempt form CEQA per Section 15061(b)(3).
**END OF CONSENT CALENDAR**
BUSINESS CALENDAR

34. Appointment of Interim City Manager pursuant to Government Code Section 21221(h) (Interim City Manager)(General Fund)
Department(s): City Attorney’s Office
Recommended Action: Adopt Resolution appointing an Interim City Manager effective November 21, 2023 and authorizing the Mayor to execute an employment agreement (Agreement No. 2023XXX).

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPOINTING THOMAS R. HATCH AS CITY MANAGER ON AN INTERIM BASIS AND APPROVING EMPLOYMENT AGREEMENT

35. Ordinance Amending Section 2325 of the Santa Ana Municipal Code to Provide that Compensation for City Boards and Commissions Shall be Set by Resolution of the City Council
Department(s): City Manager’s Office
Recommended Action: Approve the first reading of an ordinance amending Section 2325 the Santa Ana Municipal Code to provide that compensation for City Boards and Commissions shall be set by resolution of the City Council.

ORDINANCE NO. NSXXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 2325 OF THE SANTA ANA MUNICIPAL CODE TO PROVIDE THAT COMPENSATION FOR CITY BOARDS AND

COMMISSIONSSHALLBESETBYRESOLUTIONOFTHECITYCOUNCIL
City Council 17 11/21/2023
y
Department(s): City Manager’s Office
Recommended Action: Approve the first reading of an ordinance amending Section 2325 the Santa Ana Municipal Code to provide that compensation for City Boards and Commissions shall be set by resolution of the City Council.

ORDINANCE NO. NSXXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 2325 OF THE SANTA ANA MUNICIPAL CODE TO PROVIDE THAT COMPENSATION FOR CITY BOARDS AND COMMISSIONS SHALL BE SET BY RESOLUTION OF THE CITY COUNCIL

36. Nominate and Appoint a Representative to Serve on the Orange County Mosquito and Vector Control Board of Trustees to Serve Either a TwoYear or a FourYear Term Department(s): City Clerk Office
Recommended Action: Nominate and appoint a representative to serve on the Orange County Mosquito and Vector Control Board to Serve Either a TwoYear or FourYear Term, Effective January 1, 2024
**END OF BUSINESS CALENDAR**
PUBLIC HEARINGS
PUBLIC COMMENTS – Members of the public may address the City Council on each of the Public Hearing items.

37. Appeal No. 202307 Appealing Planning Commission Denial of CUP No. 202318 for Anchor Stone Christian Church to Allow a Proposed Assembly Use at 2938 South Daimler Street
Legal notice published in the Orange County Reporter on November 8, 2023 and notices mailed on November 9, 2023.

Department(s): Planning and Building Agency
Recommended Action: Adopt a resolution denying Appeal Application No. 202307 and upholding the determination of the Planning Commission to deny Conditional Use Permit No. 202318.

RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DENYING APPEAL NO. 202307 AND UPHOLDING THE DETERMINATION OF THE PLANNING COMMISSION TO DENY CONDITIONAL USE PERMIT NO. 202318 TO ALLOW AN ASSEMBLY USE TO OPERATE AT 2938 SOUTH DAIMLER STREET

38. Public Facilities Naming No. 202301, Abandonment No. 202303, General Plan Amendment No. 202301, and Amendment Application No. 202301 for Standard and McFadden Public Park located at 1117 S. Standard Avenue Legal notice published in the OC Reporter on November 10, 2023 and notices mailed on November 9, 2023.

Department(s): Planning and Building Agency
Recommended Action:

1. Affirm the Planning Commission’s adoption of a resolution approving Public Facilities Naming No. 202301 (Gerardo Mouet Park); and City Council 18 11/21/2023
Legal notice published in the OC Reporter on November 10, 2023 and notices mailed on November 9, 2023.

Department(s): Planning and Building Agency
Recommended Action:

1. Affirm the Planning Commission’s adoption of a resolution approving Public Facilities Naming No. 202301 (Gerardo Mouet Park); and

2. Adopt a resolution approving Abandonment No. 202303; and RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUMMARILY VACATING A PORTION OF A PUBLIC SERVICE EASEMENT ADJACENT TO 1117 SOUTH
STANDARD AVENUE (ABANDONMENT NO. 202303) (includes
determination that the vacation is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15378pf of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that it will have a significant impact on the environment)

3. Adopt a resolution approving General Plan Amendment No. 202301; and RESOLUTION NO. 2023XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL PLAN AMENDMENT NO. 202301 TO CHANGE THE GENERAL PLAN
AMENDMENT LAND USE DESIGNATIONS FOR THE PROPERTIES
RECOGNIZED AS ASSESSOR PARCEL NUMBERS 01125138 AND 011 25139 (from Low Density Residential (LR7) to Open Space (OS))

4. Adopt the first reading of an ordinance approving Amendment Application No. 202301; and
ORDINANCE NO. 2023XXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT
APPLICATION NO. 202301 REZONING THE PROPERTIES LOCATED 1113, 1117, 1121, AND 1125 SOUTH STANDARD AVENUE AND RECOGNIZED AS ASSESSOR PARCEL NUMBERS 01125117, 01125118, 01125119, 011 25120, 01125138 AND 01125139 (from MultipleFamily Residence (R3) to Open Space Land (O); read by title only and waive further reading.

5. Determine that in accordance with the California Environmental Quality Act (CEQA) and Section 15162 of the CEQA Guidelines, the project is within the scope of the 2022 Santa Ana General Plan Environmental Impact Report (EIR) (SCH No. 2020029087). Furthermore, these actions are categorically exempt from further review per Section 15304 (Class 4 – Minor Alterations of Land) of the CEQA Guidelines. Class 4 consists of minor public or private alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. As such, a Notice of Determination, Environmental Review No. 202078, will be filed for this project.

CITY MANAGER COMMENTS

COUNCILCOMMENTS
City Council 19 11/21/2023
healthy, mature, scenic trees except for forestry and agricultural purposes. As such, a Notice of Determination, Environmental Review No. 202078, will be filed for this project.

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.

Future Items

1. Sanitation Fee Cost of Service Study and Prop. 218 Process Authorization POSTING STATEMENT: On November 14, 2023, a true and correct copy of this agenda was posted at the entrance to City Hall, 20 Civic Center Plaza, Santa Ana, CA 92701. Internet Access to City Council, Agency, and Authority agendas and related material is available prior to meetings at santaana.org/agendasandminutes
City Council 20 11/21/2023
CITY COUNCIL 1 April 04, 2023
DRAFT Minutes of the
Special Closed Session and Regular
Meeting of the City Council
City of Santa Ana, California
April 04, 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

SPECIAL CLOSED SESSION

CALL TO ORDER
MINUTES:

ROLL CALL
MINUTES: Mayor Amezcua called the Special Closed Session meeting to order at 4:40 P.M.

ATTENDANCE Council Members
Mayor Pro Tem
Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Jessie Lopez
Mayor Valerie Amezcua
City Manager
City Attorney
City Clerk
Kristine Ridge
Sonia R. Carvalho
Jennifer Hall
City Council 5 – 1 11/21/2023
CITY COUNCIL 2 April 04, 2023
City Clerk Jennifer L. Hall conducted Roll Call. Councilmembers Penaloza, Phan, and Vazquez, Mayor Pro Tem Lopez, and Mayor Amezcua were present. Councilmembers Bacerra and Hernandez joined the meeting during Closed Session.

ADDITIONS\DELETIONS TO CLOSED SESSION
MINUTES: None
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.

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

MINUTES: Mayor Amezcua recessed to consider the Closed Session items at 4:41 P.M.

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

1. CONFERENCE WITH 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)
Service Employees’ International Union (SEIU) FullTime Employees

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

A. In re National Prescription Opiate Litigation, United States District Court (Northern District of Ohio), Case No. 1:17md02804
RECONVENE – City Council will reconvene to continue regular City business.

MINUTES: Mayor Amezcua reconvened the Special Closed Session meeting at 7:18 P.M.

City Council 5 – 2 11/21/2023
CITY COUNCIL 3 April 04, 2023
CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

MINUTES: Chief Assistant City Attorney Laura Rossini stated there was no reportable action from Closed Session.

ADJOURNMENT – Adjourn the Special Closed Session meeting.

MINUTES: Mayor Amezcua adjourned the Special Closed Session meeting at 7:18 P.M.

CITY COUNCIL REGULAR OPEN SESSION

CALL TO ORDER
MINUTES: Mayor Amezcua called the Regular City Council meeting to order at 7:18 P.M.

ROLL CALL
MINUTES: City Clerk Jennifer L. Hall conducted roll call.

Councilmembers Bacerra, Hernandez, Penaloza, Phan, and Vazquez, Mayor Pro Tem Lopez, and Mayor Amezcua were present.

PLEDGE OF ALLEGIANCE Mike Garcia, Community Development Director WORDS OF INSPIRATION Pastor S. Anthony Simon
City Council 5 – 3 11/21/2023
CITY COUNCIL 4 April 04, 2023
ADDITIONS\DELETIONS TO THE AGENDA
MINUTES: Mayor Amezcua announced that the Housing Authority Meeting and Public Hearing were canceled and would be heard at a later date.

City Clerk Jennifer L. Hall announced that Item No. 13 was removed from the Consent Calendar at the request of staff and would return for Council’s consideration on May 2, 2023.

CEREMONIAL PRESENTATIONS

1. Proclamation presented by Mayor Amezcua to OneLegacy declaring April as DMV/Donate Life Month.

2. Certificate of Recognition presented by Mayor Pro Tem Lopez to Tethos for 20 Years of Outstanding Contributions to the Community.

3. Proclamation presented by Councilmember Hernandez and Councilmember Vazquez to Latino Health Access declaring April as National Child Abuse Prevention Month.

4. Certificates of Recognition presented by Councilmember Bacerra to Orange County Fire Authority and Santa Ana Police Department Dispatchers in Honor of National Public Safety Telecommunicators Week.

STAFF PRESENTATIONS

5. Presentation from the Arts and Culture Commission
MINUTES: Community Development Director Mike Garcia introduced Robin McNair, Arts and Culture Commission Chairperson, who provided a brief presentation on the history and work of the Arts and Culture Commission.

Councilmember Hernandez thanked the Arts and Culture Commission and his colleagues for their help in establishing the Graffiti Arts and Mural Restoration Projects.

Councilmember Bacerra thanked the Arts and Culture Commissioners for their hard work and dedication.

Councilmember Penaloza thanked Ms. McNair for her presentation, inquired about the required surveys, and offered his assistance.

Mayor Pro Tem Lopez extended an invitation to the Commission to present recommendations in preparation for the new budget cycle.

Councilmember Vazquez thanked the Arts and Culture Commissioners for their hard work and seconded Mayor Pro Tem Lopez’s invitation.

City Council 5 – 4 11/21/2023
CITY COUNCIL 5 April 04, 2023
Councilmember Phan inquired about the Little Saigon and Historic Chinatown placards.

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.

MINUTES: At 8:12 P.M., Public Comments were heard.

The following speaker addressed Council via teleconference:

1. Victor Mendez spoke regarding the homelessness and drug issues plaguing his neighborhood and made a comment on the proposed appointment of Fernando Delgado to the Police Oversight Commission.

City Clerk Jennifer L. Hall reported the summary of email comments received: one (1) comment in support of Agenda Item No. 28 and three (3) non-agenda comments.

The following speakers addressed Council in-person:

2. Stephen Hart spoke regarding the Riverview Golf Course and the positive impact he believes it has on the community.

3. Richard Garcia provided comments on the Riverview Golf Course.

4. Peyton Garcia spoke regarding the Riverview Golf Course and how attending the course has positively impacted his life.

5. Stan Fear spoke regarding the community surrounding the Riverview Golf Course.

6. Sue Pallack spoke regarding the Police Athletic Activities League (PAAL).

7. Charlie Andres spoke in opposition to the conversion of the Riverview Golf Course into a city park.

8. Gabriel Montoya spoke regarding the worker shortage in the healthcare industry, how it will affect the residents of Santa Ana, and the need for a higher minimum wage.

9. Ruby Vallejo spoke of her experience working in the healthcare industry and expressed the need for higher pay in the industry.

10. Alicia Bernal (translation: Spanish) spoke in support of increasing the healthcare worker minimum wage to $25.

City Council 5 – 5 11/21/2023
CITY COUNCIL 6 April 04, 2023

11. Nellie LeGaspe spoke in support of appointing Fernando Delgado to the Police Oversight Commission.

12. Carl Benninger provided various comments and spoke in opposition to appointing Fernando Delgado to the Police Oversight Commission.

13. Sam Lazalde spoke in support of the appointment of Fernando Delgado to the Police Oversight Commission.

14. Alex Montepeque (translation: Spanish) spoke of the need for a higher minimum wage for healthcare workers.

RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 6 through 26.

MINUTES: At 8:50 P.M., the Consent Calendar was considered.

Councilmember Phan recused herself from Agenda Item No. 18, as the listed party is a client of her employer Rutan & Tucker.

Councilmember Hernandez pulled Item Nos. 12, 14, and 21 for separate discussion and consideration.

MOTION: Councilmember Bacerra moved to approve staff recommendations on the following Consent Calendar Items: 5 through 26 with the exception of Agenda Item Nos. 12, 13, 14, and 21, seconded by Councilmember Penaloza.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass

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

CONSENT CALENDAR
City Council 5 – 6 11/21/2023
CITY COUNCIL 7 April 04, 2023

7. Appoint Nicholas Ortiz Nominated by Councilmember Bacerra as the Ward 4 Representative to the Youth Commission for a FullTerm Expiring December 8, 2026 Department(s): City Clerk’s Office
Recommended Action: Appoint Nicholas Ortiz to the Youth Commission as the Ward 4 representative and administer Oath of Office. (Pursuant to SAMC Sec. 2-326 (a) requires five affirmative votes)
MINUTES: City Clerk Jennifer L. Hall administered the Oath of Office to Nicholas Ortiz.

8. Award a Purchase Order to Musco Sports Lighting, LLC in the Amount of $195,710 for LED Sports Lighting with Related Supplies and Services (General Fund) Department(s): Public Works Agency
Recommended Action: Authorize a onetime purchase order to Musco Sports Lighting, LLC for the purchase of LED sports lighting, control and monitoring system, and installation services for the George Upton All Access Playground and basketball courts at Thornton Park in the amount of $177,918, with a contingency of $17,792, for a total amount not to exceed $195,710, subject to nonsubstantive changes approved by the City Manager and the City Attorney.

9. Award Purchase Order to Acco Engineered Systems in an Amount Not to Exceed $274,877 to replace HVAC at the Santa Ana Police Athletic & Activity League Center (General Fund)
Department(s): Police Department
Recommended Action: 1. Award a onetime purchase and payment to Acco Engineered Systems for a new heating, ventilation, and air conditioning (HVAC) system at the Santa Ana Police Athletic and Activity League Center, in the amount of $249,888, plus a 10percent contingency of $24,989, for a total amount not to exceed $274,877, subject to nonsubstantive changes approved by the City Manager and City Attorney.

2. Approve an amendment to the Fiscal Year 20222023 Capital Improvement Program to include the Santa Ana Police Athletic and Activity League Center HVAC System Replacement project.

10.Award Contract to Motorola Solutions, Inc. in the Amount of $471,570 for Motorola 800 MHz Communications System Equipment (Specification No. 23048) (General and NonGeneral Fund)
Department(s): Police Department
Recommended Action: Award a blanket order contract to Motorola Solutions, Inc. for City Council 5 – 7 11/21/2023
CITY COUNCIL 8 April 04, 2023
Motorola 800 MHz communications system equipment for a 14month period expiring June 30, 2024 in an amount not to exceed $471,570, subject to non substantive changes approved by the City Manager and City Attorney.

11.Award a Construction Contract to AME Builders, Inc. in the Amount of $1,240,500 for the Salgado Community Center Improvements Project FY 202223 Project with an Estimated Project Delivery Cost of $1,550,625 (Project No. 221377) (General Fund) (Revive Santa Ana Program)
Department(s): Public Works Agency
Recommended Action: 1. Award a construction contract to AME Builders Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $1,240,500, for construction of the Salgado Community Center Improvements FY 202223, for the term beginning September 1, 2023 and ending December 31, 2023, and authorize the City Manager to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney.

2. Approve an amendment to the Fiscal Year 202223 Capital Improvement Program to include $1,387,759 in Revive funding for the Salgado Community Center Renovations Project. (Project No. 221377)

3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,550,625, which includes $1,240,500 for the construction contract, $186,075 for contract administration, inspection and testing, and a $124,050 project contingency for unanticipated or unforeseen work.

4.Determine these actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER202234 was filed for the project.

12.Award an Construction Contract to MMC, Inc. in an Amount Not to Exceed $2,870,000 for the Restrooms at Riverview Park, Heritage Park, Windsor Park, and Angels Park Project with an Estimated Project Delivery Cost of $3,307,000 (Project Nos. 221348, 221349, 221350, & 221412) (NonGeneral Fund) (Revive Santa Ana Program) Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute a construction contract with MMC, Inc. to provide DesignBuild services for demolition of existing restroom buildings, installation of new, prefabricated buildings, and associated site and utility work in the amount of $2,870,000, with a contingency of $287,000, for a threeyear period from April 5, 2023 to April 4, 2026, with an option for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney.

2. Approve an amendment to the Fiscal Year 202223 Capital Improvement Program for the Riverview Park, Heritage Park, Windsor Park, and Angels Park Restrooms Project to be funded from American Rescue Plan Act (ARPA) funds.

City Council 5 – 8 11/21/2023
CITY COUNCIL 9 April 04, 2023

3. Determine the recommended actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER202328 was filed for this project.

MINUTES: Councilmember Hernandez spoke in support of the item and announced that the new restroom would be built at Angels Park located in Ward 5.

Councilmember Penaloza requested the restroom be located closer to the street.

Mayor Pro Tem Lopez thanked staff for all of their hard work and stated that she hoped the restrooms are built in a timely manner so staff may begin work on the next set of park restrooms.

Councilmember Phan spoke in support of the item and noted that the current park improvements are the most the most extensive upgrades in years.

MOTION: Councilmember Penaloza moved to approve staff recommendations on Item Nos. 12 and 14, seconded by Mayor Pro Tem Lopez.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass

13. Grant an Easement to Southern California Edison to Allow Underground Power to Serve Traffic Signal (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an Easement Deed granting Southern California Edison the right to own, place, and maintain power conduits and conductors underground to serve APN 01603514.

MINUTES: Item No. 13 removed from the Consent Calendar by staff; no action taken.

14.Approve Purchase Agreement with Property Owner Garnsey Corp., in the amount of $750,000 for the Full Property Acquisition for the Real Property Located at 843 N.

Garnsey Street (APN 00514202) for the 10th and Flower Park Project (Revive Santa Ana Program)
Department(s): Community Development Agency
Recommended Action: Authorize the City Manager to execute a purchase City Council 5 – 9 11/21/2023
CITY COUNCIL 10 April 04, 2023
agreement with property owner Garnsey Corp, for the full property acquisition for the real property located at 843 N. Garnsey Street, also identified as APN 00514202, (Property) in the amount of $750,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023058).

MINUTES: Councilmember Hernandez announced that the approval of the property acquisition would result in a new park in the Willard community and expressed support for the item.

MOTION: Councilmember Penaloza moved to approve staff recommendations on Item Nos. 12 and 14, seconded by Mayor Pro Tem Lopez.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass

15.Approve an Agreement with Merritt Studio in a total agreement amount not to exceed $145,000 to provide Graphic Design Services for the Cultura Publication and Additional Design Services as Needed (General Fund)
Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute an agreement with Merritt Studio, LLC to provide graphic design services for the Cultura publication and additional design services as needed, for a threeyear term beginning on April 4, 2023 through April 3, 2026 with options for two oneyear extensions, and a total agreement amount not to exceed $145,000, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023049).

16.Amend Agreement with Landscape West Management Services, Inc. to Increase the Contract Amount by $2,300,000 for RightofWay and Median Landscape Maintenance Services (Project No. 221309) (General Fund and NonGeneral Fund) (Revive Santa Ana Program)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute the seventh amendment to the agreement for the second renewal option with Landscape West Management Services, Inc. for RightofWay and Median Landscape Maintenance Services to increase the contract amount by $2,300,000 for a total agreement amount City Council 5 – 10 11/21/2023
CITY COUNCIL 11 April 04, 2023
not to exceed $8,222,000 for the remaining term of the agreement ending on June 30, 2025, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023050).

17.Approve an Appropriation Adjustment and Amend Agreement with Berg & Associates, Inc. for Construction Engineering Services for the SR55/Ritchey Street Water Improvements Projects by an additional $900,000 for the remainder of the Agreement Term (Project Nos. 196438, 196439, 196440) (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute an amendment to the agreement with Berg & Associates, Inc. for Construction Engineering Services for the SR55/Ritchey Street Water Improvements Projects to increase the compensation amount by $900,000, which includes a $780,000 increase to the base amount and a $120,000 contingency, for a total amount not to exceed $1,900,000 for the remainder of the term of the agreement, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023051).

2. Approve an appropriation adjustment to recognize an additional $900,000 in the Acquisition & Construction, Water Utility Capital Projects, Expense ReimbursementOCTA revenue account and appropriate the same amount into the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project expenditure account. (Requires five affirmative votes)

18.Amend Agreement with Sedaru, Inc. for Water System Computer Modeling and Engineering Services by an additional $50,000 for the remainder of the Agreement Term (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a First Amendment to the Agreement with Sedaru, Inc., formerly known as ID Modeling, Inc., for water system modeling and engineering services to increase the amount by $50,000, for a total nottoexceed amount of $200,000 for the remainder of the term of the agreement, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023052).

MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 18 as part of the Consent Calendar, seconded by Councilmember Penaloza.

The motion carried, 6-0-1, by the following roll call vote:

City Council 5 – 11 11/21/2023
CITY COUNCIL 12 April 04, 2023
AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER VAZQUEZ, MAYOR PRO TEM LOPEZ,

MAYOR AMEZCUA
NONE
COUNCILMEMBER PHAN (recusal)
NONE
Status: 6 – 0 - 1 – Pass

19.Approve Agreements with Tetra Tech, Inc., Stantec Consulting Services, Inc., and EEC Environmental for OnCall Engineering Design Services for PFAS Treatment Systems in an Aggregate Amount Not to Exceed $3,000,000 for up to a FiveYear Term (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with Tetra Tech, Inc., Stantec Consulting Services, Inc., and EEC Environmental to provide oncall engineering design services for PFAS treatment systems, for a shared aggregate amount not to exceed $3,000,000, for a threeyear term beginning April 4, 2023 and expiring April 3, 2026, with provisions for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Core Agreement No. 2023053).

20.Approve a Lease Agreement with Senate Rules Committee, California Legislature for Office Space at the Santa Ana Regional Transportation Center for a Fouryear Term for a Total Amount of $300,082
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a site lease agreement with Senate Rules Committee, California Legislature to compensate the City $6,400 per month, with any partial month prorated at $206 per day, for the lease of 3,200 square feet of office space located at the Santa Ana Regional Transportation Center for a fouryear term beginning on April 4, 2023 and ending February 28, 2027, for a total of $300,082 in lease revenue for the entire term of the agreement, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023054).

21.Approve Agreement with SenseMakers LLC, in the amount of $896,370, for Grant Project and Fiscal Coordinator Services (NonGeneral Fund) Department(s): Police Department
Recommended Action: Authorize the City Manager to execute a threeyear professional services agreement with SenseMakers LLC for an onsite project and fiscal grant management coordinator services, for the period beginning June 1, 2023 through May 31, 2026, with a fourth and fifthyear option in an amount not to exceed City Council 5 – 12 11/21/2023
CITY COUNCIL 13 April 04, 2023
$896,370, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023059).

MINUTES: Councilmember Hernandez requested Police Chief David Valentin provide a brief overview of the item and what the UASI grant entails. He also expressed concern about having the City of Santa Ana partner with the Anaheim Police Department.

Police Chief David Valentin provided a brief history of the UASI Grant and the services the grant provides.

Chief Assistant City Attorney Laura Rossini reminded the Council that Item No. 21 is solely for the proposed agreement with SenseMakers LLC.

MOTION: Councilmember Penaloza moved to approve the staff recommendation on Item No 21, seconded by Councilmember Bacerra.

The motion carried, 6-1, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

PENALOZA, COUNCILMEMBER PHAN, COUNCILMEMBER

VAZQUEZ, MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA

COUNCILMEMBER HERNANDEZ
NONE
NONE
Status: 6 – 1 – Pass

22. Approve an Agreement with PetData, Inc. for Animal Licensing Services for up to a ThreeYear Term and Two OneYear Renewal Periods
Department(s): Finance and Management Services
Recommended Action: Authorize the City Manager to execute an agreement with PetData, Inc. for animal licensing services for a threeyear period, from April 4, 2023 through April 3, 2026, with two oneyear extension periods, subject to nonsubstantive changes approved by the City Manager and City Attorney; there is a onetime startup fee of $1,000 and an ongoing fee of $4.30 for each oneyear license processed (Agreement No. 2023055).

23. Adopt a Resolution Approving the Construction Installment Sale Agreement with the California State Water Resources Control Board for Financing of the Septic to Sewer Island Project (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Adopt Resolution No. 2023015
City Council 5 – 13 11/21/2023
CITY COUNCIL 14 April 04, 2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA

APPROVING A CONSTRUCTION INSTALLMENT SALE AGREEMENT WITH THE

CALIFORNIA STATE WATER RESOURCES CONTROL BOARD IN CONNECTION

WITH THE FINANCING OF THE SEPTIC TO SEWER ISLAND PROJECT AND AUTHORIZING CERTAIN OTHER RELATED ACTIONS (in an amount up to $1,529,220)

24. Adopt Resolution Accepting Grant Funds from the State Coastal Conservancy for Santiago Park Trail and Habitat Restoration Plan (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Adopt Resolution No. 2023016

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA

APPROVING THE GRANT OF FUNDS FROM THE STATE COASTAL

CONSERVANCY FOR THE SANTIAGO PARK TRAIL AND HABITAT
RESTORATION PLAN (in the amount of $400,000)

25. Adopt a Resolution to Approve the Tenant Relocation Plan for the Acquisition of Real Property at 206 and 208 South Flower Street
Department(s): Public Works Agency
Recommended Action: Adopt Resolution No. 2023017

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA

APPROVING THE RELOCATION PLAN FOR THE DEVELOPMENT OF A NEW WATER WELL SITE (206 AND 208 SOUTH FLOWER STREET)

26. Fiscal Year 202223 MidYear Appropriation Requests Department(s): Finance and Management Services
Recommended Action: Approve the recommended Appropriation Adjustments. (Requires five affirmative votes)
**END OF CONSENT CALENDAR**
MINUTES: At 9:07 P.M., the Business Calendar was considered.

27. Nominate and Appoint Representatives and Alternates to the Santa Ana River Flood Protection Agency (SARFPA), the Southern California Association of Governments (SCAG), and the Orange County Council of Governments (OCCOG) Department(s): City Clerk’s Office

BUSINESS CALENDAR
City Council 5 – 14 11/21/2023
CITY COUNCIL 15 April 04, 2023
Recommended Action:

1. Nominate and appoint a representative and alternate to the Santa Ana River Flood Protection Agency (SARFPA).

2. Nominate and appoint a representative to the Southern California Association of Governments (SCAG) and the Orange County Council of Governments (OCCOG) and nominate and appoint an alternate to OCCOG.

3. Nominate and appoint an alternate for purposes of the SCAG Regional Conference and General Assembly Business Meeting only.

4. Direct the City Clerk to update and post the Fair Political Practices Commission (FPPC) Form 806 (Agency Report of Public Official Appointments) on the City’s website.

MOTION:

1. Councilmember Vazquez moved to nominate himself as the representative for (SARFPA) and Director of Public Works Nabil Saba as the alternate, seconded by Councilmember Penaloza.

2. Councilmember Bacerra moved to nominate Mayor Amezcua as the representative and (Mayor Pro Tem as the alternate to (SCAG), seconded by Councilmember Phan.

3. Direct the City Clerk to update and post the Fair Political Practices Commission (FPPC) Form 806 (Agency Report of Public Official Appointments) on the City’s website.

28. Hear From and Consider Appointing Fernando Delgado Nominated by Councilmember Hernandez as the Ward 5 Representative to the Police Oversight Commission for a FullTerm Expiring December 10, 2024
Department(s): City Clerk Office
Recommended Action:

1. Hear from Fernando Delgado, applicant and nominee to the Police Oversight Commission, Ward 5 Representative.

2. Consider appointing Fernando Delgado to the Police Oversight Commission as MOTION: Above-stated motions for appointments, including direction to staff.

The motions carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass
City Council 5 – 15 11/21/2023
CITY COUNCIL 16 April 04, 2023
the Ward 5 representative, and if appointed, administer the Oath of Office. (Requires five affirmative votes.)
MINUTES: Fernando Delgado thanked the Council for considering the item and allowing him to speak. He spoke of his willingness and desire to serve on the Police Oversight Commission and how he believes the commission would benefit from his experience and diversity.

Councilmember Vazquez inquired about the nominee’s qualifications.

Mayor Pro Tem Lopez spoke of her initial proposed requirements for members of the commission.

Councilmember Phan inquired with the nominee about his ability to remain impartial and his social media presence.

Mr. Delgado stated that his social media is not indicative of his true character and he is continually learning and attempting to better himself.

Councilmember Bacerra spoke of his opposition to the item and asked the nominee about two social media posts, which Councilmember Bacerra previously shared with the public and staff, to which Mr. Delgado responded.

Councilmember Hernandez inquired with the nominee about his ability to remain impartial and his background in civil rights.

Mr. Delgado spoke of his experience during the 2020 civil unrest and the perspective he gained.

Councilmember Phan spoke regarding political differences, Santa Ana being the home to the first Vietnamese refugees of the Vietnam War, and her concern with the nominee’s biases.

Councilmember Hernandez spoke of his concern with bias and the First Amendment and moved to approve the nomination.

Councilmember Bacerra spoke of differences of opinion and the need to be analytical of all nominees.

Mayor Amezcua thanked the nominee for his attendance and inquired if he had ever participated in a police ride-along. She also inquired with Chief Assistant City Attorney Laura Rossini if the nominee's appointment would result in any liability to the City.

City Council 5 – 16 11/21/2023
CITY COUNCIL 17 April 04, 2023
Chief Assistant City Attorney Rossini stated that the Police Oversight Commission would not make final determinations, but rather make recommendations. **END OF BUSINESS CALENDAR**

COUNCILMEMBER REQUESTED ITEMS

29. Discuss and Direct the City Manager to Direct Staff to Implement a Temporary Promotion Freeze for Police Management Until at Least 90 Percent of the Current Vacant Police Officer Positions are Filled – Mayor Amezcua MINUTES: Mayor Amezcua provided a brief background and summary of the item.

Councilmember Penaloza clarified that the item is a discussion item and spoke only in support of staff returning with data regarding vacancies and patrol-to-commander ratios, prior to supporting the item.

Councilmember Vazquez provided comments on the current vacancies.

Mayor Pro Tem Lopez provided comments and spoke in opposition to the item.

Councilmember Hernandez provided comments.

City Manager Kristine Ridge recommended refraining from implementing a promotion freeze.

Councilmember Bacerra spoke of his hesitation to support the item but expressed his willingness to try different approaches to ensure vacancies are filled.

MOTION: Councilmember Hernandez moved to appoint Fernando Delgado to the Police Oversight Commission as the Ward 5 representative, seconded by Councilmember Vazquez.

The motion failed, 3- 4, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER HERNANDEZ, COUNCILMEMBER

VAZQUEZ, MAYOR PRO TEM LOPEZ

COUNCILMEMBER BACERRA, COUNCILMEMBER

PENALOZA, COUNCILMEMBER PHAN, MAYOR AMZECUA
NONE
NONE
Status: 3 – 4 – Fail
City Council 5 – 17 11/21/2023
CITY COUNCIL 18 April 04, 2023
Councilmember Phan provided comments and spoke in opposition to the item.

Police Chief David Valentin provided comments and responded to Council inquiries.

CITY MANAGER COMMENTS
MINUTES: City Manager Kristine Ridge announced that the Parks and Recreation Department would be hosting the “Egg-Cellent Adventure” event on Saturday April 8, 2023 at Centennial Park.

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. 1 March 31 – April 1, 2023 Mayor Pro Tem Lopez – WELL 11th Annual Statewide Conference in Van Nuys, CA
MINUTES:

Councilmember Becerra spoke in appreciation of Agenda Item No. 8 and thanked Senator Umberg for his work related to Senate Bill 44 and Senator Sandra Nguyen for her work related to Senate Bill 62. He wished everyone a happy National Public Safety Telecommunicators Week and a good night.

Councilmember Hernandez thanked everyone who provided comments during the meeting and thanked Councilmember Bacerra for shedding light on the importance of Senate Bill 44 and the dangers or fentanyl.

Councilmember Vazquez provided comments on crime reduction and wished everyone a good night.

Councilmember Phan thanked everyone who participated in the meeting, spoke of her recent tour of the Diemer Plant, and thanked Supervisor Sarmiento for hosting an event geared at educating the public on the recent food stamp and benefit changes. She also announced she is partnering with several nonprofits to host two free legal clinics in Ward 1 at the Newhope Library on April 4, 2023, and April 22, 2023.

Mayor Pro Tem Lopez reported her AB1234 disclosure: March 31 – April 1, 2023 WELL 11th Annual Statewide Conference in Van Nuys, CA. She wished Sammy a Happy 2nd Birthday, spoke of her experience touring the Diemer Plant, thanked healthcare workers for their work, and wished everyone a good night.

City Council 5 – 18 11/21/2023
CITY COUNCIL 19 April 04, 2023
Councilmember Penaloza spoke regarding the OC Street Car construction, the “Mujeres Migrantes en Progeso” reunification event, the Santa Ana Police Department Awards ceremony, and wished everyone a Happy Easter.

Mayor Amezcua wished all those who observe the holiday a Happy Easter, spoke regarding the OC Street Car construction business disruption, and requested an update on the Joint School Collaboration Subcommittee. She announced that her next Coffee with the Mayor event would be on April 15, 2023 at El Salvador Park.

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

MINUTES: Mayor Amezcua adjourned the meeting at 11:12 P.M.

Respectfully Submitted,
Jennifer L. Hall, CMC
City Clerk
City Council 5 – 19 11/21/2023
CITY COUNCIL 1 April 18, 2023
DRAFT Minutes of the
Special Closed Session and Regular
Meeting of the City Council
City of Santa Ana, California
April 18, 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

SPECIAL CLOSED SESSION

CALL TO ORDER
MINUTES: Mayor Amezcua called the Special Closed Session Meeting to order at 4:38 P.M.

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
City Council 5 – 20 11/21/2023
CITY COUNCIL 2 April 18, 2023

ROLL CALL
MINUTES: City Clerk Jennifer L. Hall conducted roll call.

Councilmembers Penaloza, Phan, and Vazquez, Mayor Pro Tem Lopez, and Mayor Amezcua were present. Councilmembers Bacerra and Hernandez joined the meeting during Closed Session.

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

MINUTES: No in person or virtual public comments were received regarding Closed Session Agenda items. City Clerk Jennifer L. Hall announced that one (1) email was received regarding Closed Session Item No. 03.

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

MINUTES: Mayor Amezcua recessed to consider the Closed Session items at 4:39 P.M.

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

A. Candelario Jalomo v. City of Santa Ana, et al., Orange County Superior Court, Case No. 30201901118103CUWTCJC

2. 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)
Service Employees’ International Union (SEIU) FullTime Employees

3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(California Government Code Section 54947(b)(1))
Title: City Manager

4. CONFERENCE WITH LABOR NEGOTIATOR
(California Government Code Section 54957.6)
Unrepresented Employee: City Manager
City Council 5 – 21 11/21/2023
CITY COUNCIL 3 April 18, 2023
RECONVENE: - City Council will reconvene to continue regular City business.

MINUTES: Mayor Amezcua reconvened the City Council at 7:23 P.M. and recessed the Special Closed Session Meeting to be reconvened following the Regular Meeting.

At 11:51 P.M., Mayor Amezcua reconvened the Special Closed Session Meeting and recessed to consider the Closed Session items.

Councilmember Hernandez left the meeting at 12:16 A.M. on April 19, 2023.

Mayor Amezcua reconvened the Special Closed Session Meeting.

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 from Closed Session.

ADJOURNMENT – Adjourn the Special Closed Session meeting.

MINUTES: Mayor Amezcua adjourned the Special Closed Session Meeting at 1:17 A.M., on April 19, 2023.

City Council 5 – 22 11/21/2023
CITY COUNCIL 4 April 18, 2023

CITY COUNCIL REGULAR OPEN SESSION

CALL TO ORDER
MINUTES: Mayor Amezcua called the Regular City Council meeting to order at 7:23 P.M.

ROLL CALL
MINUTES: City Clerk Jennifer L. Hall conducted roll call. All members were present.

PLEDGE OF ALLEGIANCE Jeffrey Katz
WORDS OF INSPIRATION Juan Plascencia
ADDITIONS\DELETIONS TO THE AGENDA
MINUTES: City Clerk Jennifer L. Hall announced a revision of the recipient for the Workers’ Memorial Day Proclamation to Southern California Coalition for Occupational Safety & Health and the move of Item No. 21, the first reading of an ordinance amending Santa Ana Municipal Code Section 8-6 pertaining to license requirements, from the Consent Calendar to the Business Calendar.

CEREMONIAL PRESENTATIONS

1. Certificate of Recognition presented by Mayor Amezcua to Selina Mendez for Outstanding Contributions to the Community.

2. Proclamation presented by Mayor Pro Tem Lopez and Councilmember Vazquez to Southern California Coalition for Occupational Safety & Health declaring April 28, 2023 as Workers’ Memorial Day. (Revised 4/12/23)
City Council 5 – 23 11/21/2023
CITY COUNCIL 5 April 18, 2023

3. Certificates of Recognition presented by Councilmember Bacerra and Councilmember Penaloza to the 2023 Santa Ana Police Athletic & Activity League Ladybug Champions for their Exceptional Athletic Performance.

4. Certificates of Recognition presented by Councilmember Penaloza to the Santa Ana Police Department’s 2023 Distinguished Service Medal Recipient, Detective Joshua Espadas, and Uniformed Officer of the Year, Officer Dominic Dominguez.

5. Proclamation presented by Councilmember Phan to Boat People SOS Center for Community Advancement declaring April 30 as Black April.

MINUTES: At 7:32 P.M. Mayor Amezcua considered the agenda out of order and heard Ceremonial Presentation Item No. 03 first, followed by Item No. 02, Item No. 04, Item No. 05, and Item No. 01.

MINUTES: At 8:14 P.M. Mayor Amezcua considered the agenda out of order and heard Public Comments prior to the Staff Presentations.

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

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

MINUTES:

City Clerk Jennifer L. Hall reported out the summary of email comments received:
seven (7) non-agenda comments, one (1) comment regarding Agenda Item No. 9, five (5) regarding Item No. 22, and three (3) regarding Item No. 24. She also announced that the Public Comment time limit would be two (2) minutes.

The following speakers addressed Council via teleconference:

1. Lucy Solorzano requested Council direct staff to schedule a community meeting regarding the proposed Dog Park at Centennial Park.

2. David Ball spoke in support of Agenda Item No. 24.

3. Lisa spoke on behalf of VietRise and provided comments regarding Councilmember Bacerra and photographs presented at a previous meeting.

The following speakers addressed Council in-person:

4. Johanna Lopez provided comments on an article published regarding the Santa Ana Police Department.

5. Michael Myers spoke regarding office space vacancies and the housing crisis.

City Council 5 – 24 11/21/2023
CITY COUNCIL 6 April 18, 2023

6. Martha Molina spoke regarding the Riverview Golf Course.

7. Irma Jauregui spoke in opposition to Agenda Item No. 24.

8. Boris Gresley spoke regarding Agenda Item No. 21.

9. Danny Vega spoke in support of Agenda Item No. 24 and the Santa Ana Police Department.

10. John Hanna spoke regarding Agenda Item No. 24 and transparency.

11. Kristian Grimaldo spoke regarding housing insecurity his family is experiencing and requested help.

12. Sarai Arpero (translation: Spanish) spoke regarding tenant rights and eviction conditions.

13. Silvia Ramos (translation: Spanish) spoke regarding tenant rights and violations.

14. Marcela Prado (translation: Spanish) spoke regarding the disruption to businesses in Downtown Santa Ana as a result of the OC Street Car construction.

15. Fernando Delgado provided comments on an article published regarding the Santa Ana Police Department and the Major Enforcement Team (MET).

16. Marie Cofinco spoke regarding her nephew’s death and police brutality.

17. Kourosh Karimi spoke in opposition to Agenda Item No. 24.

18. Jose Armendariz spoke regarding the appointment of Fernando Delgado to the Police Oversight Commission.

19. Gaurav Karan spoke regarding the appointment of Fernando Delgado to the Police Oversight Commission.

20. Ferdinand Silero commented on the healthcare workers minimum wage.

21. Ana Leon (translation: Spanish) spoke regarding signs and displays in front of downtown businesses.

22. Maria Perez (translation: Spanish) spoke regarding the closure of her business located in Downtown Santa Ana.

23. Carolyn McHardy provided comments on the Riverview Golf Course.

24. Maribel Gomez (translation: Spanish) provided comments on the disruption to businesses in Downtown Santa Ana as a result of the OC Street Car construction.

City Council 5 – 25 11/21/2023
CITY COUNCIL 7 April 18, 2023

25. Sonia Hernandez (translation: Spanish) provided comments on increasing the healthcare minimum wage to $25 an hour.

26. Valentin Martinez (translation: Spanish) provided comments on the disruption to businesses in Downtown Santa Ana as a result of the OC Street Car construction.

27. Jose Garay (translation: Spanish) spoke regarding trees lining his street and the issues they are causing to the sidewalks.

28. Juliet Castro (translation: Spanish) provided comments on the disruption to businesses in Downtown Santa Ana as a result of the OC Street Car construction.

29. Martin Ocampo (translation: Spanish) requested additional trash cans and security in Downtown Santa Ana.

STAFF PRESENTATIONS

6. Homelessness Update
MINUTES: Homeless Services Division Manager Ken Gominsky Jr. provided a brief presentation on Homeless Services Data Dashboard, drugs and homelessness, and CARE Court.

RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 7 through 20.

MINUTES: At 9:39 P.M., Councilmember Hernandez pulled Agenda Item No. 09 and Mayor Pro Tem Lopez pulled Agenda Item No. 20 for separate discussion and consideration.

MOTION: Councilmember Bacerra moved to approve staff recommendations on the following Consent Calendar Items: 7 through 20 with the exception of Agenda Item Nos. 09 and 20, seconded by Mayor Pro Tem Lopez.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 - Pass

CONSENT CALENDAR
City Council 5 – 26 11/21/2023
CITY COUNCIL 8 April 18, 2023

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

8. Minutes from the Special Closed Session and Regular Meeting of September 20, 2022
Department(s): City Clerk’s Office
Recommended Action: Approve minutes.

9. Appoint Nadin Said Nominated by Councilmember Bacerra as the Ward 4 Representative to the Police Oversight Commission for a FullTerm Expiring December 8, 2026
Department(s): City Clerk’s Office
Recommended Action: Appoint Nadin Said to the Police Oversight Commission as the Ward 4 representative and administer Oath of Office.

MINUTES: Councilmember Hernandez requested the item be brought back at a later date in order to allow him additional time to meet with the nominee.

MOTION: Councilmember Hernandez moved to continue Item No. 09 to May 2, 2023, seconded by Councilmember Vazquez.

SUBSTITUTE MOTION: Councilmember Bacerra moved to approve Item No. 09 as presented, seconded by Councilmember Penaloza.

MINUTES: Mayor Amezcua requested staff the research the implementation of procedures for future nominees’ appointments.

Councilmember Bacerra commented on streamlining future nominees’ appointments and suggested the nominees’ names be circulated amongst the Council prior to adding them to the agenda.

SUBSTITUTE MOTION: Councilmember Bacerra moved to approve Item No. 09 as presented, seconded by Councilmember Penaloza.

The motion failed, 3-4, by the following roll call vote:

City Council 5 – 27 11/21/2023
CITY COUNCIL 9 April 18, 2023
AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

PENALOZA, MAYOR AMEZCUA

COUNCILMEMBER HERNANDEZ, COUNCILMEMBER PHAN,

COUNCILMEMBER VAZQUEZ, MAYOR PRO TEM LOPEZ
NONE
NONE
Status: 3 – 4 - Fail
MOTION: Councilmember Hernandez moved to continue Item No. 09 to May 2, 2023, seconded by Councilmember Vazquez.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0- Pass

10.Award a Purchase Order to Siemens Industry, Inc. in the Amount of $400,000 to Automate Heating, Ventilation, and Air Conditioning (HVAC) Building Controls at the Ross Annex (Specification No. 23047) (General Fund)
Department(s): Public Works Agency
Recommended Action: Authorize a onetime purchase order and payment to Siemens Industry, Inc. for the automation of HVAC building controls on the third and fourth floors of the Ross Annex Building in the amount of $356,538, plus a contingency of $43,462 for a total amount not to exceed $400,000, subject to nonsubstantive changes approved by the City Manager and City Attorney.

11.Award Purchase Order to Matthews Specialty Vehicles, in the Amount of $439,922, for an F59 Ford Chassis Book Mobile Conversion Vehicle (Specification No. 23013) (General Fund and Cannabis Public Benefits Fund) Department(s): Public Works Agency and Library Services Agency Recommended Action: Authorize a onetime purchase and payment to Matthews Specialty Vehicles for a 2023 F9 Ford chassis book mobile conversion, in the amount of $414,922, plus a contingency of $25,000 for a total amount not to exceed $439,922, subject to nonsubstantive changes approved by the City Manager and City Attorney.

City Council 5 – 28 11/21/2023
CITY COUNCIL 10 April 18, 2023

12.Authorize a OneTime Appropriation Adjustment of $500,000 Using General Funds Balance to Increase the FY 202223 Annual Amount for Asphalt Pothole Repair by $300,000, and the Remaining $200,000 Will be Issued Through Emergency Purchase Order Procedures to Quickly Improve Service Levels For Pothole Repairs (Specification No. 18092) (General Fund)
Department(s): Public Works Agency
Recommended Action: 1. Authorize a onetime appropriation of $500,000 using General Fund balance to 01117017 Public Works Service Enhancements for FY 202223 Roadway Maintenance. (Requires five affirmative votes)

2. Approve an amendment to the Purchase Order Contract with All American Asphalt for asphalt pothole repair to increase the current term by $300,000, for a total annual amount not to exceed $1,200,000, and add one, twoyear renewal term to the purchase order exercisable by the City Manager and City Attorney, subject to non substantive changes approved by the City Manager and City Attorney.

13.Award a Construction Contract to Diamond Construction & Design in the Amount of $1,374,150 for the Kennedy Elementary and Villa Fundamental Intermediate Safe Route to School (SRTS) Project With an Estimated Project Delivery Cost of $1,659,049 (Project No. 206963, ATPSB1L5063(199) (General and NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: 1. Approve an amendment to the Fiscal Year 202223 Capital Improvement Program to include $130,000 of funding in General Fund for the Kennedy Elementary and Villa Fundamental Intermediate SRTS.

3. Authorize the reallocation of unspent Measure M2 Local Fairshare funds from various projects; $128,316 from Bike Lane Project Development, $84,733 from Traffic Safety Project Development, and $25,000 from the Jackson Elementary Improvements Project, for a total of $238,047 to the Kennedy Elementary and Villa Fundamental Intermediate SRTS Project to complete the project’s funding requirement.

4. Award a construction contract to Diamond Construction & Design, the lowest responsible bidder, in accordance with the base bid in the amount of $1,374,150, for construction of the Kennedy Elementary and Villa Fundamental Intermediate SRTS Project, for the term beginning April 18, 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.

5. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,659,049, which includes $1,374,150 for the construction contract, $147,484 for contract administration, inspection, and testing; and a $137,415 project contingency for unanticipated or unforeseen work.

City Council 5 – 29 11/21/2023
CITY COUNCIL 11 April 18, 2023

6. Determine that the recommended actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER202096 was filed for Project 206963.

14.Approve Additional Contingency Funds for an Existing Construction Contract with HYM Engineering, in the Amount of $1,198,427, for the Santa Ana Zoo Giant River Otter and Primate Trials Project with an Estimated Project Delivery Cost of $7,798,427 (Project No. 162658) (General and NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: 1. Approve an amendment to the Project Cost Analysis to recognize $1,198,427 for $1,056,880 in additional contingency funds and $141,547 in additional contract administration, inspection, and testing for a new estimated total construction delivery cost of $7,798,427. The new estimated total construction delivery costs include $5,289,238 for the construction contract, $923,385 for contract administration, inspection, testing, and a $1,585,804 project contingency for unanticipated or unforeseen work, subject to nonsubstantive changes approved by the City Manager and City Attorney.

2.Approve an amendment to the Fiscal Year 202223 Capital Improvement Program for $1,198,427.

15.Award a Construction Contract to CJW Construction, Inc. in the Amount of $4,942,135, Approve an Amendment to the Fiscal Year 202223 CIP, and Approve Amendment to the Agreement with J. Smith & T. Muli, Inc. to Increase the Contract for the Centennial Lake Circulation Renovation Project with an Estimated Total Delivery Cost of $6,179,135 (Project No. 182681) (Revive Santa Ana program) Department(s): Public Works Agency
Recommended Action: 1. Approve an amendment to the Fiscal Year 202223 Capital Improvement Program to include $1,342,240 of funding in American Rescue Plan Funds for the Centennial Lake Circulation Renovation project.

2. Award a construction contract to CJW Construction, Inc., the lowest responsive and responsible bidder, in accordance with the base bid in the amount of $4,942,135, for the construction of the Centennial Lake Circulation Renovation Project, for a term beginning April 18, 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
$6,179,135, which includes $4,942,135 for the construction contract; $742,000 for contract administration, inspection, and testing; and a $495,000 project contingency for unanticipated or unforeseen work.

4. Authorize the City Manager to execute the first amendment to the agreement City Council 5 – 30 11/21/2023
CITY COUNCIL 12 April 18, 2023
with J. Smith & T. Muli, Inc. to increase the Contract Amount by $11,500, for a total amount not to exceed $61,391, for lake engineering and construction services for the remaining term of the agreement, beginning May 20, 2022 through December 31, 2023, including up to two additional oneyear periods upon a writing executed by the City Manager and City Attorney (Agreement Nos. 2023-061 and 2023-062).

5. Determine the recommended actions are exempt for further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER202331 was filed for Project 182681.

16.Approve Agreements with Hillsborough Fence Company, J & A Engineering Corporation, and Quality Fence Co. Inc., for a Total Amount Not to Exceed $3,000,000, for up to a FiveYear Term for AsNeeded Installation, Maintenance, and Repair for Fencing and Gate Services (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with Hillsborough Fence Company, J & A Engineering Corporation, and Quality Fence Co. Inc. to provide oncall installation, maintenance, and repair for fencing and gates, for a shared aggregate amount not to exceed $3,000,000 for a threeyear term beginning April 18, 2023 and expiring April 18, 2026, with provisions for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Core Agreement No. 2023-063).

17.Approve Agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc., for a Total Amount Not to Exceed $2,950,000, for OnCall Material Testing and Special Inspection Services (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute a Caltrans federally procured agreement with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. to provide OnCall Material Testing and Special Inspection Services, for a shared aggregate amount not to exceed $950,000, for a term beginning April 18, 2023 and expiring July 5, 2024, with provisions for two, oneyear extensions, subject to non substantive changes approved by the City Manager and City Attorney (Core Agreement No. 2023-064).

2.Authorize the City Manager to execute the first amendment to the standard agreement with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. to provide OnCall Material Testing and Special Inspection Services, and increase the contract amount by $1,000,000 for a total amount not to exceed $2,000,000, for the remaining term through July 5, 2024, subject to nonsubstantive changes approved by the City Manager and City Attorney (Core Agreement No. 2023-065).

City Council 5 – 31 11/21/2023
CITY COUNCIL 13 April 18, 2023

18.Approve First Amendment to Agreement with Elite Special Events, Inc. to Increase the NottoExceed Amount by $20,000 per Year through June 30, 2023, for a Total Agreement Amount of $38,050, to Provide Event Equipment and Services at Various City Events (General Fund)
Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute the first amendment to the agreement with Elite Special Events to provide event equipment and services for various City events, to increase the amount by $20,000, for a total nottoexceed amount of $38,050, through June 30, 2023, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023-066).

19. Historic Property Preservation Agreement
Department(s): Planning and Building Agency
Recommended Action: Authorize the City Manager or designee to execute the attached Mills Act agreement with the belowreferenced property owners for the identified structure(s), subject to nonsubstantive changes approved by the City Manager and City Attorney (includes determination that the proposed project is exempt from further review in accordance with the California Environmental Quality Act (CEQA) as the following Categorical Exemption will be filed for this project: ER No. 202310).

Property Owner(s), Historic Property Preservation Agreement No., Address/House, Vote by HRC
Brian and Krystle Newquist, 202301, 2311 N. Benton Way, 8:1:0:0 (Murashie dissented) (Agreement No. 2023-067)

20.Adopt a Resolution to Authorize the City Manager to Accept the California Automated Permit Processing Program Grant in the Amount of $100,000 and Execute the Grant Agreement with the State of California Energy Commission, and Approve an Appropriation Adjustment Recognizing Funds
Department(s): Planning and Building Agency
Recommended Action: 1. Adopt Resolution No. 2023-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING

THE RECEIPT OF FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR THE CALIFORNIA AUTOMATED PERMIT PROCESSING PROGRAM (includes determination that the proposed action is exempt from further review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) and the CEQA Guidelines as there is no potential for any environmental impact).

2. Approve an appropriation adjustment recognizing the CalAPP grant funds, in the amount of $100,000, to revenue account number and appropriate same to City Council 5 – 32 11/21/2023
CITY COUNCIL 14 April 18, 2023
expenditure account numbers. (Requires five affirmative votes) MINUTES: Mayor Pro Tem Lopez requested staff provide the public information regarding the current solar panel state program.

MOTION: Mayor Pro Tem Lopez moved to approve the recommended action for Agenda Item No. 20, seconded by Councilmember Penaloza.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass
**END OF CONSENT CALENDAR**
MINUTES: At 9:51 P.M., the Business Calendar was considered.

21. First Reading of an Ordinance to Amend Section 86 of the Santa Ana Municipal Code (SAMC) Pertaining to License Requirements of Contractors and Subcontractors to Include the Collection and Disclosure of Information Regarding Pending or Prior Enforcement Actions for any State or Federal Labor Violations (Revised 4/12/23) Department(s): Planning and Building Agency
Recommended Action: Conduct a first reading of Ordinance Amendment No. 2023 02 – An ordinance of the City Council of the City of Santa Ana amending Section 86 of the Santa Ana Municipal Code (SAMC) pertaining to license requirements of contractors and subcontractors to include the collection and disclosure of information regarding pending or prior enforcement actions for any state or federal labor violations.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SANTA ANA MUNICIPAL CODE SECTION 86 RELATING TO LICENSE REQUIREMENTS OF CONTRACTORS AND SUBCONTRACTORS (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 in the environment, as there is no possibility it will have a

BUSINESS CALENDAR
City Council 5 – 33 11/21/2023
CITY COUNCIL 15 April 18, 2023
significant effect on the environment, and it is not a “project,” as defined in Section 15378 of the CEQA Guidelines).

MOTION: Councilmember Penaloza moved to approve the recommended action for Agenda Item No. 21, seconded by Councilmember Phan.

The motion carried, 7-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

HERNANDEZ, COUNCILMEMBER PENALOZA,

COUNCILMEMBER PHAN, COUNCILMEMBER VAZQUEZ,

MAYOR PRO TEM LOPEZ, MAYOR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass

22.Early Direction for Fiscal Year 202324 Budget Cycle Department(s): Finance and Management Services
Recommended Action: Provide early budget direction to staff for the upcoming fiscal year.

MINUTES: Director of Finance Management Services Kathryn Downs provided a brief presentation. Discussion ensued regarding the Fiscal Year 2023-24 Budget Cycle.

Councilmember Penaloza provided direction regarding the current commissioner payment amount, spay and neuter programs, and the opioid settlement services.

Councilmember Vazquez commented on library services, community events, housing services, and a school liaison.

Councilmember Hernandez spoke in support of a trap, neuter, and release program. He provided direction to staff regarding a new youth center, additional senior centers, breakfast programs, Fiestas Patrias, street improvements, and additional youth services.

Councilmember Phan spoke regarding street maintenance, additional youth services, library services, opioid settlement services, and community event funding.

Councilmember Bacerra provided comments on traffic signal improvements, community police staffing, cannabis tax rates, opioid settlement services, and new revenue generators.

City Council 5 – 34 11/21/2023
CITY COUNCIL 16 April 18, 2023
Mayor Pro Tem Lopez provided comments on future community surveys, general funding expenditures, animal control services, and opioid settlement services.

Mayor Amezcua provided comments on youth programs, additional police officers, additional code enforcements officers, gang prevention programs, expansion of the Discovery Cube, crossing guards, and opioid settlement services.

23. Resolution Declaring the Termination of Local Emergency Regarding the COVID19 Pandemic
Department(s): City Manager’s Office
Recommended Action: Adopt Resolution No. 2023-019

A RESOLUTION OF THE SANTA ANA CITY COUNCIL DECLARING THE

TERMINATION OF THE PROCLAMATION OF A LOCAL EMERGENCY REGARDING THE CORONAVIRUS (COVID19) PANDEMIC
MINUTES: City Manager Kristine Ridge provided a brief summary of the item.

MOTION: Mayor Amezcua moved to approve the recommended action for Agenda Item No. 23, seconded by Councilmember Bacerra.

The motion carried, 5-0, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

PENALOZA, COUNCILMEMBER PHAN, COUNCILMEMBER

VAZQUEZ, MAYOR AMEZCUA
NONE
NONE

MAYOR PRO TEM LOPEZ, COUNCILMEMBER HERNANDEZ
Status: 5 – 0 - 2 – Pass

24. Resolution Declaring Opposition to Assembly Bill 742 (Jackson) Department(s): City Manager’s Office
Recommended Action: Adopt Resolution No. 2023-020

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA OPPOSING CALIFORNIA ASSEMBLY BILL 742 (JACKSON)
MINUTES: Senior Management Analyst Daniel Soto provided a brief presentation.

Council discussion ensued regarding the Resolution Declaring Opposition to Assembly Bill 742.

City Council 5 – 35 11/21/2023
CITY COUNCIL 17 April 18, 2023
MOTION: Councilmember Penaloza moved to approve the recommended action for Agenda Item No. 24, seconded by Mayor Amezcua.

The motion carried, 5-2, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

COUNCILMEMBER BACERRA, COUNCILMEMBER

PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM

LOPEZ, MAYOR AMEZCUA

COUNCILMEMBER HERNANDEZ, COUNCILMEMBER

VAZQUEZ
NONE
NONE
Status: 5 – 2 – Pass
**END OF BUSINESS CALENDAR**

25. Sunshine Ordinance Amendments Work Study Session
Department(s): Planning and Building Agency
Recommended Action: Discuss and provide direction to staff.

MINUTES: At 11:33 P.M., the Work Study Session was considered.

Director of Planning and Building Minh Thai announced that he had provided Council a summary of proposed changes. Council had no additional questions or comments.

CITY MANAGER COMMENTS
MINUTES: Assistant City Manager Steven Mendoza made community announcements regarding the 5K and 10K races and the Dia De Los Ninos Event.

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. 1 April 12–14, 2023 Mayor Amezcua – League of California Cities City Leaders Summit in Sacramento, CA

WORK STUDY SESSION
City Council 5 – 36 11/21/2023
CITY COUNCIL 18 April 18, 2023
MINUTES: Councilmember Vazquez provided comments on the upcoming Fiestas Patrias event and congratulated his students for winning a bronze medal at a recent speech competition.

Councilmember Hernandez thanked residents for their participation and wished everyone a goodnight.

Councilmember Bacerra thanked the City of Orange for their assistance and advocating for an additional bus stop for the City and wished everyone a good night.

Councilmember Phan provided comments on Astiva Health, the Los Amigos High School English and Civics Department, a free legal clinic she hosted at Newhope Library, and the importance of Sexual Assault Awareness Month.

Councilmember Penaloza commented on Sexual Assault Awareness Month, Denim Day, requested the water tower be lit up in teal in recognition of Sexual Assault Awareness month, and congratulated Norma Orozco on her promotion to Senior Deputy City Clerk.

Mayor Pro Tem Lopez announced that the Orange County Transportation (OCTA) is looking for participants for their teen council and spoke of the importance of public transportation.

Mayor Amezcua announced that Republic Services would be hosting a free compost event on April 29, 2023 at Centennial Park. She disclosed her participation in the League of California Cities City Leaders Summit in Sacramento. She summarized her first Coffee with the Mayor event and the City’s Easter event.

Mayor Amezcua announced that Council would be adjourning the Regular Meeting and reconving the Special Closed Session meeting at 11:51 P.M.

ADJOURNMENT – Adjourn the City Council meeting.

MINUTES: Mayor Amezcua adjourned the City Council Regular Meeting at 11:51 P.M.

Respectfully submitted:
___________________________
Jennifer L. Hall, CMC
City Clerk
City Council 5 – 37 11/21/2023
City Clerk’s Office
www.santa-ana.org/city-clerks-office
Item # 6
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 21, 2023
TOPIC: 2024 City Council Meeting Calendar

AGENDA TITLE
Review and Approve the Annual Calendar of City Council Meetings for 2024

RECOMMENDED ACTION

1. Review calendar of regularly scheduled City Council meetings in 2024.

2. Cancel the regularly scheduled City Council meetings of January 2, 2024, August 6, 2024, and November 5, 2024.

3. Direct staff to post Notice(s) of Cancellation and waive notice to the City Council of said meetings as required by the Government Code.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
Pursuant to Charter Section 409, the City Council has adopted a resolution setting the time, place, and manner of holding its meetings. Resolution No. 2023-047, Section 2(a), states “Regular meetings of the City Council shall be on the first and third Tuesdays of each month beginning on January 1, 2014.” Past practice by the City Council has been to cancel the first meeting of the year, a meeting during the summer months, and a meeting that falls on Election Day. Staff recommends that the same past practices be adopted for 2024:

1. Cancel the first meeting of the year scheduled for January 2, 2024.

2. Cancel the meeting scheduled for August 6, 2024 for the summer months.

3. Cancel the meeting scheduled for November 5, 2024 (Election Day).

The proposed 2024 calendar (Exhibit 1) includes the three above recommendations and sets a Special Meeting for December 10, 2024 for the certification of election results and swearing-in ceremony pursuant to Charter Section 400.

If the City Council cancels any regularly scheduled meeting, consideration of agenda City Council 6 – 1 11/21/2023
2024 City Council Meeting Calendar
November 21, 2023

Page 2 ends

items will resume at the next regularly scheduled meeting. The City Council reserves the right to cancel any other meetings and notify the public as legally required by the Brown Act.

The 2024 Master Calendar and agendas for all regular and special City Council meetings will be posted on the City’s website at: www.santa-ana.org/agendas-andminutes. City Council meetings are typically held in the Council Chamber, 22 Civic Center Plaza, Santa Ana, CA 92701 or as otherwise noted on the agenda.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. 2024 Calendar of City Council Meetings
Submitted By: Jennifer L. Hall, City Clerk
Approved By: Steven A. Mendoza, Acting City Manager
City Council 6 – 2 11/21/2023
Draft

S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 1 2 3 1 2
7 8 9 10 11 12 13 4 5 6 7 8 9 10 3 4 5 6 7 8 9
14 15 16 17 18 19 20 11 12 13 14 15 16 17 10 11 12 13 14 15 16 21 22 23 24 25 26 27 18 19 20 21 22 23 24 17 18 19 20 21 22 23 28 29 30 31 25 26 27 28 29 24 25 26 27 28 29 30
31 S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 1 2 3 4 1
7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8
14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15 21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22 28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29
30 S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 1 2 3 1 2 3 4 5 6 7
7 8 9 10 11 12 13 4 5 6 7 8 9 10 8 9 10 11 12 13 14
14 15 16 17 18 19 20 11 12 13 14 15 16 17 15 16 17 18 19 20 21 21 22 23 24 25 26 27 18 19 20 21 22 23 24 22 23 24 25 26 27 28 28 29 30 31 25 26 27 28 29 30 31 29 30

S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 1 2 1 2 3 4 5 6 7
6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14
13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31

HOLIDAY - CITY HALL CLOSED
CITY HALL CLOSED - 9/80 WORK SCHEDULE
CITY COUNCIL SPECIAL MEETING (December 10 - Certification of Election Results, per Charter Sec. 400) CITY COUNCIL REGULAR MEETING (January 2, August 6, and November 5 (Election Day) Canceled) CITY HALL WINTER CLOSURE (As approved by various labor group Memoranda Of Understanding) * Special Meetings may be scheduled 24-hours in advance (as permitted by the Brown Act).

For agendas and meeting location, please refer to the City's website at: www.santa-ana.org/agendas-and-minutes/ April May June
Santa Ana City Council Meetings Schedule
2024
January February March
July August September
October November December
City Council 6 – 3 11/21/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 7
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 21, 2023
TOPIC: Grand Jury Report: Historic Rain, Yet Drought Remains

AGENDA TITLE
City's Response to Orange County Grand Jury Report: Historic Rain, Yet Drought Remains

RECOMMENDED ACTION
Approve the City of Santa Ana's response to the findings and recommendations of the 2022-2023 Orange County Grand Jury Report, Historic Rains, Yet Drought Remains, pursuant to Penal Code Sections 933 and 933.05.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
On June 9, 2023, the Orange County Grand Jury released a report entitled “Historic Rain, Yet Drought Remains”. The report presents information about the current state of water planning, existing projects to increase the supply of non-potable water for irrigation, and storage issues. Of note, the report makes recommendations for a reliable source of potable water through desalination of ocean water.

In their report, the OC Grand Jury concludes that existing water agencies in Orange County are not adequately structured or managed to implement strategies necessary to create a new source of potable water, specifically through desalination. Further, the OC Grand Jury suggests that a merger of two or more public agencies could assist the county with securing desalinated water, but notes that it might be challenging for such an agency to do so because the agencies would already be performing the functions for which they were created and it might be difficult to assimilate new functions. To that end, the Orange County Grand Jury concludes that the creation of a new agency, a Climate Resiliency District, should be established to develop and manage countywide water resources, while taking into consideration the ongoing statewide drought conditions.

City Council 7 – 1 11/21/2023
Grand Jury Report: Historic Rain, Yet Drought Remains
November 21, 2023

Page 2 ends

In accordance with California Penal Code Sections 933 and 933.05, the Orange County Grand Jury mandates that the City must respond to the conclusions and recommendations outlined in their report. An overview of the Orange County Grand Jury’s findings, recommendations, and the City’s corresponding responses are attached to this report. (Exhibit 2). Once authorized by the City Council, the responses documented in Exhibit 2 will be submitted to the Presiding Judge of the Superior Court.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Orange County Grand Jury Report: “Historic Rain, Yet Drought Remains”

2. City of Santa Ana's Response to Orange County Grand Jury Report: Historic Rain, Yet Drought Remains
Submitted By: Nabil Saba, P.E. – Executive Director of Public Works Approved By: Steven A. Mendoza, Acting City Manager
City Council 7 – 2 11/21/2023

Historic Rain,
Yet Drought Remains
County of Orange

Grand Jury 2022-2023
City Council 7 – 3 11/21/2023

HISTORIC RAIN, YET DROUGHT REMAINS
ORANGE COUNTY GRAND JURY 2022 I 2023 Page 2 of 57

TABLE OF CONTENTS
SUMMARY...................................................................................................................... 3 BACKGROUND .............................................................................................................. 4 REASON FOR STUDY ................................................................................................... 5 METHOD OF STUDY...................................................................................................... 6 INVESTIGATION AND ANALYSIS.................................................................................. 7 Climate ........................................................................................................................ 7 Water Demands........................................................................................................... 8 Overview of Water Suppliers and Agencies................................................................. 9 Metropolitan Water District (MET) – (Water Wholesaler)............................................. 9 Municipal Water District of Orange County (Water Wholesaler)................................ 11 Orange County Water District (Water Wholesaler).................................................... 12 Water Retailers.......................................................................................................... 12 State of California Managed Supplies........................................................................ 14 Federal Intervention................................................................................................... 16 Water Justice............................................................................................................. 16 Actions to Secure and Strengthen Supply ................................................................. 17 Effective Management of Initiatives ........................................................................... 17 Public Awareness of the Need for Action................................................................... 20 Effect on Local Economy ........................................................................................... 21 Drinking Water Obtained from the Sea...................................................................... 22 COMMENDATIONS...................................................................................................... 24 FINDINGS..................................................................................................................... 24 RECOMMENDATIONS................................................................................................. 25 REQUIRED RESPONSES............................................................................................ 26 REQUESTED RESPONSES......................................................................................... 27 GLOSSARY .................................................................................................................. 31 REFERENCES.............................................................................................................. 34 APPENDIX A: ACTIONS BY LOCAL AGENCIES TO SECURE SUPPLY.................... 38 Purchase of water rights ............................................................................................ 39 Utilization of other supplies........................................................................................ 44 Water Efficiency to Increase Supply .......................................................................... 44 APPENDIX B: GRAPHICS OF INTEREST ............................................................................ 45 BIBLIOGRAPHY ........................................................................................................... 48 City Council 7 – 4 11/21/2023

HISTORIC RAIN, YET DROUGHT REMAINS
ORANGE COUNTY GRAND JURY 2022 I 2023 Page 3 of 57
NOTICE......................................................................................................................... 56 ENDNOTES .................................................................................................................. 56

SUMMARY
The “atmospheric river” of winter 2022-23 in California, causing floods in the lowlands and record snowpack in the mountains, has many people assuming that the “drought is over.” This assumption is far from the truth. Drought conditions are here to stay. While Orange County dams and reservoirs are currently at full capacity and the Sierra snowpack is at its deepest level in many years, there has been limited impact on the Western Rockies, the Colorado River, Lake Powell, and Lake Mead from which Southern California draws a significant amount of its potable water supply.

For the purposes of this report, the Orange County Grand Jury differentiated between source and supply. The source of water is the ocean and the resultant precipitation.

The supply of water is how precipitation is captured and delivered to consumers of water, including recycling and reuse of this water.

Climatologists, water experts, and water managers agree we must adapt to climate change because longer droughts and extreme weather patterns are inevitable, adding urgency towards finding new methods for obtaining additional water sources.

In Orange County, the lack of available water over the past few years has frequently been identified as a “Water Crisis”, yet the phrase has failed to capture the scope of how dire the situation is. Generally, people don’t think about having enough water because it has been reliably available their entire lives. Throughout the county, there are numerous innovative water projects under consideration or development, but they may not be timely enough to avoid people running short of water and having to conserve much more, ultimately leading to mandated rationing.

Approximately half of all water used in Southern California is imported from the Colorado River and from the California Aqueduct. This imported water is severely constrained and unreliable. With infrequent and unreliable amounts of precipitation supplying both the Northern California Water Project and the Colorado River, the situation is becoming more critical. Several South Orange County cities rely almost solely on these imports. Locally, significant efforts are being made to re-use wastewater. These efforts are limited by the amount of water available from everyday use and do not create a new water source.

North and Central Orange County are served by a well-managed supply of water in underground storage, but it cannot meet the needs of the entire County. South County is entirely dependent on imported water.

The State of California mandated local governments to provide more affordable housing and is also promoting higher density development. This does not recognize the limitations of the current water supply and its social and economic impacts. The State has failed to provide a supply of water to support these mandates.

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Public awareness must be expanded to encourage better management of our water by expediting the process for planning and construction of new water sources such as desalination and prioritizing funding.

The Orange County Grand Jury recommends the creation of a “Climate Resiliency District” to lessen the County’s dependence on State and regional water projects. Just as Orange County supported Measure M and created the Orange County Transportation Authority to solve the county’s transportation crisis, the same bold leadership is needed to solve the county’s water crisis.

This report presents information about the current crisis in water planning, existing projects to increase the supply of non-potable water for irrigation, and storage issues.

The report makes recommendations for a reliable source of potable water through desalination of ocean water.

BACKGROUND
Water is our most precious resource, but due to shifts in climatic weather patterns, the reliability of traditional water supplies is under intense pressure in Orange County. Many water business insiders are stating privately that these systemic events are now at a “crisis” stage, despite the recent precipitation.

To date, traditional water suppliers in Orange County have not addressed the implications of this systemic shift. They have maximized local resources by recycling, capturing flood water runoff, and finding new areas for storage. However, they have yet to fully develop a transformational drought-resistant water resource outside the status quo.

Numerous past Orange County Grand Jury reports1 have dealt with the internal governance and organizational structure or the need for conservation efforts to maximize water utilization. This report elaborates on the dependency on outside water supplies such as the California Water Project and the Colorado River Basin that provide over 50% of our county’s local water supply. South Orange County lacks a bountiful aquifer that provides North and Central Orange County with 70% of its water supply. 2 South Orange County depends on imported water for 90% of its needs. These imported water supplies are becoming less reliable, with annual reductions occurring in both the California Water Project and the Colorado River Basin creating major disruptions.

Conservation measures have been put in place throughout Orange County to maximize existing supplies to help mitigate these concerns. This is simply inadequate to resolve the long-term supply issue. One of the ways to resolve this issue is desalination, a proven alternative that has not yet been fully implemented in Orange County.

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REASON FOR STUDY
The Western United States is experiencing a water crisis. The climate is changing, and our supply of water has diminished while our population has increased. This situation did not occur overnight and the efforts to mitigate the crisis have been slow and ineffective.

Existing water agencies in Orange County are not adequately structured or managed to implement the transformational strategies necessary to create a new source of potable water, specifically through desalination. It is possible that a merger of two or more agencies could pivot this new source, but they are already performing the functions for which they were created and it might be difficult to assimilate new functions. The Orange County Grand Jury recommends the creation of a new agency, a Climate Resiliency District, to develop and manage this drought-resistant resource.

Local water suppliers, including cities and special districts, are to be commended for attempting to meet the crisis within constraints. The Orange County Water District very City Council 7 – 7 11/21/2023

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successfully manages the ground water basin serving North and Central Orange County. These efforts include actively pursuing water transfer and water banking agreements outside of Orange County. Local water suppliers need to expand their portfolio to meet demands. Additional capture of precipitation, supplying groundwater through infiltration, additional storage systems, development of ocean desalination, and recycling and reuse of water all need to be considered and improved and implemented.

The general public, the ultimate users of the water, need to continue their efforts to conserve water by installing low-flow toilets and showerheads, appliances that use less water, using recycled water for landscape irrigation, and eventually accepting the use of recycled water purified for drinking purposes. They also need to support and expedite the development of desalination plants to create a new source of water for the future. It will be necessary for the water suppliers to develop effective public awareness programs to help the public understand the need and desirability of this new paradigm.

METHOD OF STUDY
The Orange County Grand Jury (OCGJ) took the following steps in investigating this issue:
• Identified and interviewed key personnel:
o Persons or entities responsible for providing potable water to their Orange County constituents
o Persons knowledgeable in projects to improve capture, reclamation, recycling, delivery, and infrastructure improvements
o Persons involved in the planning and execution of providing new habitable dwellings
o Persons who are reputable in the field of climatology – past, present, and future
• Reviewed information from the various water districts and interested parties including:
o Orange County Water District (OCW)
o Orange County Coast Keepers
o California Department of Water Resources
o Miscellaneous Water Districts
o Municipal Water District of Orange County (MWDOC)
o Metropolitan Water District (MET)
• Reviewed numerous documents pertaining to this report (see bibliography for complete list)
• Members of the OCGJ toured the following facilities:
o Municipal Water District of Orange County Headquarters o Orange County Water District Ground Water Recovery Facility o Metropolitan Water District
 Headquarters
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“The current state of our climate
is a prolonged drought. To survive, local
sources of water need to be more resilient. “
 F.E. Weymouth Water Treatment Plant and Quality Control Laboratory
 Pure Water Southern California Demonstration Plant in Carson

INVESTIGATION AND ANALYSIS
Climate
The current state of our climate is a prolonged drought. To survive, local sources of water need to be more resilient.

Throughout Earth’s evolution, there have been and continue to be impacts on its climate. The continents have been drifting since there was a super continent, Pangea, 175 million years ago. The resulting different geographic locations have differing climate conditions which are still evolving. These “climate changes” have been extensively studied and documented by paleo-climatologists, and their data has been used to forecast what climate conditions will most probably be in the future.

Today’s scientists and climatologists agree that Earth is changing due to evolutionary cycles and that climate warming is being acutely exacerbated and accelerated by the effects of human activities. Worldwide, glaciers are receding, sea levels are rising, and permafrost melting. Many global regions that were historically self-sufficient for potable water are now in periods of extended drought where precipitation is a declining resource. Orange County is directly affected by the resulting effects of climate change, evidenced by water reduction mandates and the various proposed means and methods to capture, recycle, and store more water.

This report acknowledges climate change and its effects on the people of Orange County. It examines whether the current proposed means and methods for securing more water are sufficient to sustain the projected growth in the county and support the green and vibrant lifestyle to which its inhabitants have become accustomed.

As evidenced over the past five decades, the durations and resulting expectations from the seasons in this geographic region of the U.S. (Western) have dramatically changed.

Winters have seen declining periods of sustained precipitation, and summers are hotter, longer, and drier. This has directly affected the rivers, lakes, streams, dammed reservoirs above ground and aquifers below ground that rely on melted snow and rain for continued and reliable replenishment. Paleo-climatologists have validated the past City Council 7 – 9 11/21/2023

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climate drought trends, and today’s climatologists are predicting the same, punctuated by infrequent periods of precipitation, like the precipitation events of this past winter (2022-23). This all points to the current supplies of water not being dependable.

Key facts and predictions identified during interviews and the numerous climate articles reviewed are:
• The current Western United States drought is the longest in 1,200 years • The drought is likely to continue for the next 100 years. • The current Southern California climate is characterized as “drought” but this is likely to be interrupted by infrequent wet years.
• Human activities have affected the climate. The Southern California climate is expected to enter a cooler phase based upon long-term historic trends, rather than the current warming.
• Even if carbon emissions are suddenly decreased, the climate could take up to 100 years to adjust.

The following graph illustrates the current tendency of the climate. It shows five categories: Abnormally Dry (D0), showing areas that may be going into or are coming out of drought, and four levels of drought (D1–D4). The darker the color, the deeper the drought. It clearly shows increased and more frequent levels of drought for California.

Drought as the norm has reduced precipitation as a source of water and Orange County needs to respond to it by providing a more drought resilient supply of water.

Water Demands
• In the past fifty years, California’s population has nearly doubled. Water is needed, and expected, to sustain the current population in all aspects: quality of life, commerce, industry, agriculture, etc., and promote growth and development.

However, current, and foreseeable circumstances regarding water availability City Council 7 – 10 11/21/2023

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have severely impacted modern Californians’ expected way of life. To preserve the status quo, water reduction mandates are used to facilitate further development.
• Some water agencies are paying farmers to not grow crops. They are transferring the farmer’s water rights to the water agency to feed the thirst of metropolitan areas. Many projects to capture, transport, and store water have been proposed but not yet constructed due to various political and environmental obstructions. The projects that have been approved to capture, store, recycle, and transport more water will only succeed if there is enough water to do so.

Precipitation is a declining source of water. Interviews with water experts, e.g., wholesalers, retailers, and suppliers have said that “we cannot conserve our way out of the drought” but they have yet to make Orange County self-sufficient.

Overview of Water Suppliers and Agencies
The water supply for Orange County is primarily managed by three entities – Orange County Water District (OCWD), Municipal Water District of Orange County (MWDOC), and Metropolitan Water District (MET).

Consumers receive their water from 29 independent water districts and cities. The suppliers primarily receive water from either the groundwater basin managed by OCWD, directly from MET, or through MWDOC. The water agencies also have additional minor supplies of water, including treated surface waters and supplies obtained from agreements with other entities. Some of the water agencies provide treated wastewater for landscaping and industrial uses (recycling).

Metropolitan Water District (MET) – (Water Wholesaler)
The Metropolitan Water District (MET) serves the water needs of Southern California by securing and transporting water. This includes overseeing the importation of water from the Colorado River Basin since 1941 and the State Water Project since 1971. MET is a wholesaler which sells and allocates this water to other water agencies, municipalities, 3 and counties from Ventura to San Diego. Orange County receives its purchased allocation through the Municipal Water District of Orange County. Recognizing the longterm effects of drought and reduced flows from the Colorado river and California Aqueduct, the MET has initiated major water conservation and recycling programs to make water management a priority. They have attempted to create storage capability and negotiate contracts with the agricultural entities within the Colorado basin to limit their water usage and acquire their allocations.

The long-term threat of climate change and historic droughts have challenged MET and they have failed to identify new supplies of water beyond their historic charter. The State Water Project is delivering only 10% of the historical allocation and the Colorado River supply allocation was reduced 25% in 2022.

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Metropolitan Water District is in the water movement business and is not historically tasked with securing new sources of water. As the leading water agency in Southern California, MET has not taken on this responsibility. Their supply of water is dependent on precipitation. When the water allocation was reduced from the State Water Project, MET had to switch many of its customers to the Colorado River. However, numerous articles have documented that the lakes on the Colorado River (Mead and Powell) are at the lowest levels since they were built, and their future viability is at question due to a decade’s long drought in the west.

The State Water Project4 includes 700 miles of delivery canals (California Aqueduct) that serves 27 million people and irrigates 750,000 acres of farmland, which supplies fifty percent of the United States’ produce. The project originated in 1960 and although it is well maintained, it has not been upgraded in years. The water for the State Water Project comes primarily from the Sacramento-San Joaquin Delta. When forming its water strategies, Orange County needs to recognize that the State Water Project’s reliability is in doubt due to its 53-year history of not being adequately maintained.

The Colorado River has been in the news due to the drought reducing its flow over the past twenty years. The agreements regarding the allocation of Colorado River water are set to expire in 2026 and are currently being renegotiated. Water levels at Lake Mead and Lake Powell have dropped significantly, and experts say it would take at least 10 years of above average precipitation to restore them. Orange County should simply not rely upon the Colorado River as a dependable supply, now or in the future.

Following numerous interviews and a thorough review of project documentation, the Grand Jury reached several conclusions regarding MET programs to replace dwindling City Council 7 – 12 11/21/2023

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“MET water will not be reliable for at least a decade and Orange County needs to consider developing other resources to make up for this lack of reliability.”
water supplies. Most notable is that the Carson wastewater reclamation project is years away from being completed and 20 years behind similar projects in Orange County.

Overall, MET cannot be expected to significantly replace the reductions in water allocations from the Colorado River and the State Water Project within the next decade.

Municipal Water District of Orange County (Water Wholesaler) The Municipal Water District of Orange County (MWDOC) is primarily a wholesale water provider and, to a lesser extent, a water resource development and planning agency for nearly 3.2 million Orange County residents, and businesses. MWDOC buys imported water from the California State Water Project in Northern California and the Colorado River through the Metropolitan Water District of Southern California. MWDOC has four representative seats on the Metropolitan Water District (MET) Board. Through its member agencies, MWDOC covers all of Orange County except the Cities of Anaheim, Fullerton, and Santa Ana.

Orange County must import water due to limited local water supplies. Central and North County import approximately 30% of their water to supplement its existing supply.

However, South County is highly reliant on the Municipal Water District, as South County water districts must import 90% of their water supply from outside of Orange County.

The Municipal Water District of Orange County is extremely important as a wholesaler or broker to the retail water districts in Orange County and as a representative of Orange County’s interest on the Metropolitan Water District Board.

MWDOC has completed a comprehensive study of Orange County’s water reliability needs that could serve to achieve a climate resilient water supply. The study covers MET system reliability and Orange County projects including desalination projects, water shed projects, and water banking projects. The study also identifies the crisis Orange County is facing – by 2030, eight out of every ten years can be expected to be in drought. However, the study is devoid of information about financing and implementation, and its conclusions rely too much on MET efforts that are decades behind where they should be.

Based upon this study and MWDOC’s countywide area of responsibility, MWDOC could conceivably lead Orange County’s efforts to plan, finance, and implement water source and supply projects.

MWDOC serves no other purpose than to distribute water and has not attempted to expand its supply of water beyond its engagement with the MET. Previous Orange City Council 7 – 13 11/21/2023

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County Grand Juries have recommended that the MWOC and OCWD merge for a more efficient and streamlined approach towards water management.

Orange County Water District (Water Wholesaler)
The Orange County Water District (OCWD) provides water to 2.5 million residents in North and Central Orange County. The District effectively manages the Orange County groundwater basin that provides approximately 77% of water used in the region. It supplies the 19 cities and retail water agencies in Central and North Orange County with potable water. As the sole adjudicator of Orange County’s ground water basin, the agency plays a vital role in assuring the aquifer is effectively managed.

The Orange County Water District has been a true innovator in water management and operates the world’s largest water purification replenishment system for indirect potable water use. Over 130 million gallons per day are recycled into the Orange County aquifer, thus replenishing this vital resource. It has exhausted the wastewater supply available for recycling through its comprehensive efforts.

The management of Orange County’s underground reservoir has been exceptional.

OCWD has also implemented a regional groundwater banking program to assure longterm reliability and increasing stormwater capture behind Prado Dam where water eventually gets released and recharged into the Orange County aquifer, thus becoming part of the local water supply.

Despite its absolute success at recycling, the Orange County Water District must still import 23% of its water brokered by the Municipal Water District of Orange County through the Metropolitan Water District. The local Orange County ground water basin is simply not large enough to meet demand.

Water Retailers
The Irvine Ranch Water District serves a large Orange County populace of 600,000, primarily in the Cities of Irvine, Lake Forest, parts of the Cities of Orange, Costa Mesa, Tustin, and Newport Beach. IRWD provides water as well as reliable sewage collection and treatment. The combination of being a water retailer combined with managing sewage treatment has allowed IRWD to implement groundbreaking recycling water programs for non-potable use and innovative urban runoff programs. The district relies partially on the Orange County basin for its water supply, but also is dependent on 20% of imported water from the Municipal Water District of Orange County.

As an innovator, the IRWD secured rights to the Kern water basin for water storage.

This storage reduces its reliance on Metropolitan Water District and provides access to a potential supply of water in an emergency. Through conservation and water efficiency programs, IRWD has reduced overall water consumption year over year allowing development to continue to move forward unabated within the jurisdiction it serves.

However, growth in community development exposes IRWD to shortages as its allocation of imported water is determined by Municipal Water District of Orange County.

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Until the desalination plant comes online, and should
MWDOC fail to deliver required water, SCWD is highly
vulnerable to supply disruption.

The Moulton Niguel Water District serves 170,000 residents in South Orange County, and is highly dependent on imported water from the Municipal Water District of Orange County (in excess of 90% of its potable water). Therefore, the District has made a major effort to drive efficiency and conservation efforts, which have been successful in reducing water utilization and continue to allow local development. Negotiations are underway with local sanitation districts to attempt to initiate recycling programs for the betterment of the community. The collaboration with South Orange County Wastewater Authority (SOCWA) has been less than cooperative thereby impeding recycling efforts.

Should the Municipal Water District of Orange County fail to deliver the required water, Moulton Niguel Water District is highly vulnerable to supply disruption.

The Rancho Santa Margarita Water District (RSMWD) imports 100% of its potable water from the Municipal Water District of Orange County and services over 200,000 residents in south Orange County, primarily the eastern portion of Orange County from Mission Viejo to San Clemente. As a result, the District has committed to developing local reliable drinking water supplies. RSMWD constantly monitors opportunities to enhance its water portfolio. The current major effort is the San Juan Watershed project that will capture local stormwater runoff as well as directing recycled water to recharge the local underground aquifer.

Conservation water efficiency efforts have also played a major role to minimize water usage. Within RSMWD’s service area, there are major communities being planned. The planned communities under development, Los Flores and the Ranch, will add 15,000 homes or approximately 60,000 additional residents to the District’s customer base.

With this development the water demand will increase and therefore will increase the need to import water. Should Municipal Water District of Orange County fail to deliver required water, RSMWD is highly vulnerable to supply disruption.

The South Coast Water District (SCWD), like other south Orange County water districts, is highly dependent on imported water from the MWDOC. SCWD serves 35,000 residents and 2 million visitors a year. SCWD relies on 90% of its potable water being supplied by the MWDOC. SCWD is to be applauded in its attempt to expand its efforts to decrease its dependence on imported water. Recently, SCWD was granted approval to proceed with an ocean desalination plant of 5 million gallons of water a day.

The plant is to be built within the next five years. SCWD is working to maximize recycling efforts to minimize reliance on imported water. Major conservation and water efficiency programs have been implemented locally. Until the desalination plant comes online, and should MWDOC fail to deliver required water, SCWD is highly vulnerable to supply disruption.

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Other Orange County Water Suppliers. Water wholesalers in Orange County work with local water retailers to provide water to their residents. The Orange County local retailers include 29 cities and local water districts.

Most of the cities and water agencies have implemented programs to minimize water utilization to become more efficient. They are to be applauded for their efforts.

South Orange County retailers Moulton Niguel Water District, Rancho Santa Margarita Water District, and South Coast Water District are highly dependent on the importation of water, in excess of 90% of total local demand.

Irvine Ranch Water District is included because of the unique characteristics that were identified during the course of this investigation. Specifically, the Grand Jury noted its creativity in securing potential sources of water coupled with the continued development of the Irvine Ranch and water required to serve new residents.

South Orange County retailers are highly dependent on the importation of water for more than 90% of local demand. The Grand Jury’s investigatory efforts have included a focus on this dependency.

State of California Managed Supplies
The State of California is responsible for operating the State Water Project, planning and implementation of statewide projects for water supply, State bond financing for projects, and management of federal and State funding programs. These have been insufficient to address the threats to Orange County water supply.

Water management in California is very complex. There are numerous constituents placing a huge demand on water resources: agriculture, urban centers, industry, business, developers, tourism, and residents. This pressure coupled with an antiquated water structure with hundreds of water wholesalers and retailers makes a challenging dynamic.

Environmental pressure exacerbates the challenge. The State’s lack of long-term solutions to California’s water needs is not new. No new reservoirs have been built since the 1970’s when the population was 20 million people. 50 years later, California’s population has almost doubled to 39 million. For years, the State has studied proposals to secure additional supplies of water by moving water from the Sacramento delta to Southern California through the California Water Project, with no discernable results.

The project is needed to protect the existing water supply and secure additional water but has been bogged down by debate about approach and environmental review.

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No new reservoirs have been built since 1970 when the
population was approximately 20 million, yet
California’s population has almost doubled to 39
million.

In 2014, a bond initiative was passed to provide $7.3 billion in funding for 10 new reservoirs and other water related projects, yet the reservoirs have not been completed.

The recent rains that swept California this winter resulted in billions of gallons of water flowing out to sea.5 The California Natural Resources Agency maintains a web page that shows the progress of the bond issue.
6 The web page shows most of the funds
have been committed but lacks information regarding what has been accomplished.

In terms of planning, in August 2022, the California Environmental Protection Agency issued a major report entitled “California Water Supply Strategy – Adapting to a Hotter, Drier Future, California Agencies.”7 But the strategy does not detail schedules or actions or assign resources or funding. In the report, the Newsom administration points out that in order to deliver the pace and scale of projects necessary to meet California’s water crisis, the State’s regulatory structures must be modernized so that “State agencies can assess, permit, fund and implement projects at the pace this climate emergency warrants.” The report does not describe how Newsom’s directive is to be understood or executed. Other relevant State reports touching upon State water resources include those on climate change, water supply assessment, and an analysis of recent droughts.

While all these reports help identify problems, they provide few and limited actionable recommendations.

The California State Water Control Board is the State’s key water agency, yet its focus on water supply is not clear. Other State agencies that have water oversight include: the Department of California Water Resources, the California Water Commission, and the National Resources Agency, and State Conservancies, such as the Sacramento-San Joaquin Delta Conservancy that are involved in water grants and planning. The State environmental and river basin authorities also complicate planning and actions. There seems to be no coordinated focus on water supply.

The Sacramento-San Joaquin levees are very important to the State Water Project.

They protect the integrity of the system. For decades, the levees have been identified as needing bolstering, yet this has not been done. If the levees fail or are breached there will be an influx of brackish water from the San Joaquin Delta that will contaminate the fresh water in the Project, making it unusable. The recent rains have focused the need for action, yet nothing is likely to be done anytime soon. As an example, the need to capture and store rainwater in aquifers has been recognized for decades, yet the recent rainfalls show little has been done.

Recently, the State initiated the Delta Conveyance Project (DCP). This is a joint powers authority formed to help ensure water supply reliability for the State Water Project and to adapt to forecasts of future changes in precipitation and seasonal flow patterns due City Council 7 – 17 11/21/2023

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to climate change. An important part of the DCP is a proposed tunnel under the Delta.

The concept for the project originated in the 1970s and subsequent versions included the Trans-Delta System, Peripheral Canal, Bay Delta Conservation Plan, and the California Water Fix (a dual tunnel). The Delta Conveyance Project faces strong opposition from environmentalists. The prospect of the project being completed in a timely manner, if at all, is doubtful.

Governor Newsom himself noted the difficulty of getting water projects going in his statement at an August 2022 news conference: “The time to get these damn projects is ridiculous,” Newsom said. “It’s absurd. It’s reasonably comedic. In so many ways, the world we invented from an environmental perspective is now getting in the way of moving these projects forward.”8 Projects take decades to accomplish, if they are completed at all. The State cannot be relied upon for consistent water delivery in wet or dry years.

Water management in California can best be summed up as always studied but never resolved. The impacts of this paralysis mean that Orange County cannot currently rely on the State to identify or secure a new source or supplies of water.

Federal Intervention
California may have to reduce its reliance on Colorado river water under a proposal by the U.S. Department of the Interior, unveiled on April 11, 2023, that upends the longstanding system of water rights. The Department proposed two methods for reducing water usage by as much as 25% in 2024. The seven states utilizing the Colorado river have been negotiating with each other since August 2022 to make voluntary cuts. To date no agreement has been reached.

The U.S. Bureau of Reclamation, part of the U.S. Department of the Interior, warned that it would impose large cuts if the states relying on the river did not come up with a plan by January 31, 2023. The states failed to do so. Although California has experienced an unusually wet winter, this has not changed the Colorado River’s longstanding challenges amid a much drier climate.

The rationing of water from the Colorado River basin appears inevitable at the time of this report, disrupting the long-tenured stability of Southern California’s imported water supply. It reinforces the idea that the time to act for securing a new source of water for Orange County is now.

Water Justice
As the demand for water increases, not only to sustain the status quo but also for development, equal access to water must also be addressed. What regions will be entitled to preserve their way of life and what regions will have to compromise? The cost of obtaining and distributing water is equally important to water justice. The projects required to ensure a reliable water supply are costly and, if delegated to the ratepayers, may have a significant impact on lower income households. Traditionally, City Council 7 – 18 11/21/2023

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Orange County should develop a funding strategy for
water projects that is acceptable to rate-payers and does not overly burden lower income groups.
major water projects have been financed through state and federal governments or through special tax assessments. This is an easier burden on lower income groups than strictly through rate structures. Orange County should develop a funding strategy for water projects that is acceptable to rate-payers and does not overly burden lower income groups.

Actions to Secure and Strengthen Supply
Numerous initiatives and projects have been planned to improve and strengthen the existing supply systems:
1) water banking,
2) purchasing water rights,
3) recycling water,
4) reuse of water for potable purposes,
5) aquifer management,
6) utilization of other supplies, and
7) water efficiency.

However, these projects are years behind schedule and taking an extraordinarily long time to complete. These initiatives are important to point out as efforts, but it must be noted that by themselves, they are not solutions to Orange County’s water reliability.

The Grand Jury’s evaluation of these efforts is included in Appendix A “Local Agency Action to Secure Water Supply.”
The efforts to diversify the water portfolio and make the existing supply more resilient are commendable, but a new source is also needed.

Effective Management of Initiatives
Orange County needs an entity to champion and lead the efforts to develop a water source that will enhance the reliability of existing water supplies. Orange County water suppliers have completed and are engaged in several projects to improve the resilience of our water supply, but efforts for the whole County have been limited. A countywide effort to develop a drought-resistant source of water is necessary due to climate change.

Effective countywide management of water resources would alleviate the jurisdictional issues that have hampered the development of recycled water in South County including shared use of the aquifer for all of Orange County. A Climate Resiliency District could serve this purpose.

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A Climate Resiliency District is authorized by the Climate Resilience District Act, codified in California Government Code Sections 62300-62312. Section 62301 describes the legislative intent of the Act:

It is the intent of the Legislature in enacting this division to provide the ability for local governments to create districts for the purpose of addressing climate change effects and impacts through activities and actions that include mitigation and adaptation, as necessary and appropriate, to achieve all of the following:
(a) Providing a sustained and certain level and source of funding at the local level.
(b) Allowing activities and actions on an appropriate geographic basis. (c) Facilitating the receipt and use of federal, state, local, and private funds.

The purpose of the Climate Resiliency District would be to promote a project that addresses drought, including multiuse land repurposing, groundwater replenishment, groundwater storage, or conjunctive use.
9 It is envisioned that a Climate Resiliency
District would be capable of planning and financing water source projects such as desalination that are beyond the means of existing Orange County water agencies.

There were concerns about a Climate Resiliency District expressed by some water district leaders interviewed by the Grand Jury. They stated that a Climate Resiliency District might be another level of bureaucracy that could impede the pursuit and development of their own projects. However, these concerns would carry more weight if planned projects were actually being implemented.

Alternative structural entities could be a joint powers authority (JPA) created for this purpose, either spearheaded by Orange County Water District (OCWD) or Municipal Water District of Orange County (MWDOC), or a collaborative effort between both.

The Joint Exercise of Powers Act, codified in California Government Code Section 6500 et seq., authorizes two or more public agencies, by agreement, to exercise any power common to the agencies to provide more effective or efficient government services or to solve a service delivery problem. A JPA could plan, finance, and implement water source and water supply projects. Similarly, Orange County Transportation Authority (OCTA) was created in 1991 to fund, plan, and implement transit and capital projects.

OCTA has been successful in solving some of Orange County’s transportation needs. A JPA focused on Orange County’s water needs could similarly succeed.

Forming a JPA to comprehensively address all of Orange County’s water needs would ultimately require the cooperation of 29 entities including special water districts and cities that supply water. The political effort required for this cooperation would be significant and would require a new approach towards such collaboration.

Either separately or cooperatively, OCWD or MWDOC could take the lead for the planning, financing, and implementing of water source and supply projects to the benefit City Council 7 – 20 11/21/2023

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for all of Orange County. Unifying the water districts is also a possibility, as previously reported by the 2021-2022 Grand Jury.
10 Through its member agencies, MWDOC covers all of Orange County except the Cities of Anaheim, Fullerton, and Santa Ana. MWDOC has completed a comprehensive study of Orange County’s water reliability needs that could serve as means to achieve a climate resilient water supply.11 The study covers MET system reliability and Orange County projects including desalination projects, watershed projects, and water banking projects. The study clearly identifies that Orange County is facing a water crisis, and forewarns that by the year 2030, eight out of every ten years can be expected to be dry.

Based upon this study and MWDOC’s countywide charter, MWDOC could accept responsibility to lead Orange County’s efforts to plan, finance, and implement water source and supply projects. However, the study would need to be updated, as it is totally devoid of financing and implementation data, and it relies too much on MET efforts that are decades behind where they should be.

Orange County needs a champion to lead the efforts to develop a water source and to enhance the reliability of existing water supplies. OCWD and MWDOC have planned but failed to implement a solution, and a joint powers authority requires a level of political cooperation that may not be possible with 29 separate water agencies.

Therefore, the County of Orange should initiate the Climate Resiliency District to plan, finance, and implement water supply projects to meet future conditions and needs.

Orange County needs a champion to lead the efforts to
develop a water source and to enhance the reliability of existing water supplies
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Public Awareness of the Need for Action
Public awareness of the consequences of current and future climate change is important as a catalyst for adapting to the change. In the past several months, there have been numerous newspaper and magazine articles on water concerns in California and the Western United States. There have also been at least two television documentaries. Many local water agencies have included fact sheets and other information on their web pages and in monthly statements warning of the water “crisis”.

These messages have resulted in increased public awareness but more needs to be done. Public education to promote projects to address the crisis is a must.

As a result of increased public awareness, water agencies have noticed a decrease in per-capita water usage. The public is using water more efficiently. However, several Grand Jury interviewees noted that we cannot conserve our way out of the drought.

Solving Orange County’s future water shortfall through conservation alone would require drastic changes in water usage and would likely meet strong public resistance.

Additional efforts are needed to inform the public of potential lifestyle changes if additional water sources and supplies are not developed.

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Some water agencies in Orange County have conducted public campaigns to make the public aware of the need to increase rates. The rate increases are for projects to increase the water supply and source resiliency of the agency. South Coast Water District’s outreach to its customers has been most notable and enabled the District to proceed with community support for the Doheny Desalination Project.

The public needs to be galvanized to move forward. The Grand Jury recommends that the County Board of Supervisors lead a countywide campaign to mobilize the public in support of new water sources that will make the supply systems more efficient and resilient.

Effect on Local Economy
If no new sustainable source of potable water is developed there will be an adverse impact on Orange County. While North Orange County has an underground aquifer with a substantial amount of water, South County is almost entirely dependent upon external supplies. Major strides have been made in recycling water for industrial and landscaping purposes, but there is still a shortage of potable water with the only current source of “new” water being the Doheny Desalination plant, which will take years to complete and probably not begin operations until 2028. Capital costs of building a desalination plant are generally beyond the capability of a single water district.

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… experts predict an eventual shortage of water would
result in a moratorium on development.

Water supplies collected through precipitation are the most economical but the most unreliable. There are insufficient storage facilities in Orange County for capturing precipitation and there are no aquifers in South County.

The State of California has mandated that municipalities create new housing opportunities, particularly low-income housing. Developers are required to install water saving features such as low-flow toilets and showers, water-saving washing machines and drought-resistant landscaping, all of which increase the cost of building. These features do not offset the effects of the drought, and experts predict an eventual shortage of water would result in a moratorium on development.

Businesses and industries such as retailers, manufacturers, and theme parks rely on clean and dependable water. If they cannot depend on the local suppliers their enterprises are at risk. Homeowners, as ratepayers, are likely to see increases in their water bills due to increased costs of purchased water by the wholesalers and retailers.

Severe drought, causing major reductions in river flow, has an adverse effect on hydroelectric plants resulting in shortages of power to the grid. Developing an alternative source of water (desalination) reduces the reliance on this supply for consumption, thus making more available for power generation.

Drinking Water Obtained from the Sea
South Orange County imports 90% of its drinking water, with most of it currently coming from the Colorado River. The allotment of water from the river is at serious risk and will likely be significantly reduced. In recent years, not enough precipitation has fallen to meet Orange County’s drinkable water needs, and there is no way to make it rain or snow.

Seawater can be made into fresh potable water in a process called desalination, one of the solutions being considered to resolve this looming crisis. However, the Grand Jury determined that desalination is not being implemented fast enough. Although ocean desalination currently requires an initial capital investment and high operating costs and raises environmental challenges, critics acknowledge it would make a significant contribution to Orange County’s water portfolio.
12 Desalination is being used increasingly around the world to provide people with needed freshwater.
13 According to the International Desalination Association, more than 300 million people around the globe receive their water from desalination plants. 14 Multiple desalination plants are under consideration in California, with only a few in operation. The Carlsbad Desalination Plant, near San Diego, provides approximately ten percent of the freshwater used in the region, and Santa Barbara is currently City Council 7 – 24 11/21/2023

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upgrading an older plant. Recently, two new seawater plants have received approval to begin construction: one on the Monterey Peninsula, and the Doheny Plant in Dana Point. Orange County must consider the benefits of a high-capacity facility as a means towards self-sufficiency.

Current challenges to desalination include planning, construction costs, impact on marine life from saltwater intake, high energy demands, operating complexities, difficulty of cycling plants on and off, and disposal of concentrated salt brine.

Desalination challenges are mitigated by creating economies of scale with high volume production and careful planning, selecting suitable locations, and technological improvements. For example, the Carlsbad plant produces 50 million gallons per day or more than 56,000 acre feet (AF) per year. The plant started operation in 2015 and reports that it produces water for ½ cent per gallon, or $1600 per AF, in large part due to its high volume.15 For comparison, the MWDOC published rate as of January 1, 2023, is $1,209 per acre foot.
16 If Orange County were to establish a similar facility, it would offset the need for imported water and allow imported water to be redirected to other Southern California communities relying on importation, such as Inland Empire.

The length of time to plan, obtain permits, and construct a desalination plant can take decades. A proposed plant at Huntington Beach was in planning and permitting for over twenty years and ultimately was not approved. South Coast Water District began the initial steps for the Doheny Plant at Dana Point in 2016 and it is expected to be in operation by 2028.

Unless the State of California initiates methods for expediting the planning and approval processes, it can take at least as long as these two projects for any new ocean desalination plants. The State has shown it can accelerate the approval process as evidenced by the approval of SoFi Stadium17 in record time by enacting legislation that expedited the permit and environmental requirements without compromise.

It is well known that desalination has an impact on the environment, and we are fortunate to live in a state where protecting the environment is important. Engineers and water experts are researching how to integrate more renewable energy into the next generation of plants. The environmental impacts and costs of desalination should be compared against the full environmental impacts and costs of importing water from 700 miles away, not just wholesale rate costs as is usually done.

Orange County cannot continue to rely on imported water, nor can it ignore the fact that there is an immediate need to take advantage of the ocean as a drought-resistant source of water. According to the Grand Jury’s research and interviews, the environmental concerns, surrounding intake and outflow of saltwater, and high electricity demand are being met as evidenced by the Doheny approval, therefore allowing desalination plants to operate. Orange County should embrace desalination as a major part of an overall local plan, not just a last resort.

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COMMENDATIONS
South Coast Water District is to be commended for its strategic foresight. The District has recently gained approval for the Doheny Ocean Desalination Project for which they initiated feasibility studies in 2008. The plant is now anticipated to be operational in 2028. The Doheny Ocean Desalination Project is a new, reliable, local, and droughtproof water supply. The Doheny Ocean Desalination Project is the first desalination project in the State of California to be fully compliant with the California Ocean Plan. 18 Orange County Water District successfully manages the aquifer under Central and North Orange County for the benefit of multiple water suppliers. It has also built the Groundwater Recovery System (GWRS) to treat wastewater to potable levels for supplementing the aquifer. Recently, it expanded and commissioned the GWRS. The Orange County Grand Jury commends OCWD for its work.

The water suppliers for Orange County have undertaking numerous initiatives to increase the resiliency of their water supplies. The Orange County Grand Jury commends these suppliers for their efforts and encourages them to continue pursuing expanded opportunities.

The Orange County public has significantly reduced the per-capita water usage through conservation efforts. This is important to maximizing the water supply. The Orange County Grand Jury commends the public for these efforts.

The Orange County Grand Jury commends the leadership of MWDOC and OCWD for their continued negotiations regarding merger.

The Orange County Grand Jury commends the Southern California news media for their continued efforts in reporting on the critical nature of our water supply.

FINDINGS
In accordance with California Penal Code Sections 933 and 933.05, the 2022-2023 Grand Jury requires (or, as noted, requests) responses from each agency affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court.

Based on its investigation titled “Historic Rain, Yet Drought Remains,” the 2022-2023 Orange County Grand Jury has arrived at the 12 principal findings, as follows:

F1 Future water supplies are impacted by climate change and current supplies will not meet future demands.

F2 Climatologists predict future extended periods of low moisture with occasional wet years.

F3 Climate change is inevitable and is exacerbated by human behavior.

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F4 South Orange County relies primarily on the importation of water.

F5 Local water suppliers recognize that enhanced stormwater capture and storage, wastewater recycling, and infrastructure improvements will not be sufficient to address the long-term forecast of drought and its effects on supply.

F6 There is significant water infrastructure planning, but inadequate implementation.

F7 The review and approval process for major water capital projects is cumbersome and overly restrictive.

F8 Failing to find solutions to water shortages will have a significant impact on the Orange County economy.

F9 Continued development in Orange County creates additional water supply needs.

F10 Conservation and efficient use of water is essential.

F11 Increased outreach and public education are necessary.

F12 Desalination has proven to be technologically and environmentally feasible and is slowly being embraced as a drought-resistant source of water.

RECOMMENDATIONS
In accordance with California Penal Code Sections 933 and 933.05, the 2022-2023 Grand Jury requires (or as noted, requests) responses from each agency affected by recommendations presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court.

Based on its investigation titled “Historic Rain, Yet Drought Remains,” makes the following four recommendations:

R1 The County of Orange Board of Supervisors should take a leadership role by the end of calendar year 2023 to explore the establishment of a “Climate Resiliency District” or Joint Powers Authority to fund and expedite implementation of a drought-resistant source of water. F1, F2, F3, F4, F5, F6, F7, F8, F9, F12 R2 Orange County water agencies should expedite the planning, development, and construction of desalination plants over the next five years to insure a sustainable and reliable drought-resistant source of water. F1, F2, F3, F4, F5, F6, F7, F8, F9, F11, F12
R3 The County of Orange and all Orange County cities should formulate an emergency development moratorium plan in anticipation of the Colorado River water supply being constrained. The emergency moratorium plan should be developed by the end of calendar year 2023. F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12
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R4 Orange County water agencies should update their public communication strategies, by calendar year end 2023, to inform the public of lifestyle changes if additional water sources are not developed. F10, F11, F12

REQUIRED RESPONSES
Findings – 90 Day Response Required
County of Orange Board of
Supervisors
F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12
Municipal Water District of
Orange County
F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12
Orange County Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Irvine Ranch Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Moulton Niguel Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Santa Margarita Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 South Coast Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Recommendations – 90 Day Response Required
County of Orange Board of
Supervisors
R1, R3
Municipal Water District of
Orange County
R2, R4
Orange County Water District R2, R4
Irvine Ranch Water District R2, R4
Moulton Niguel Water District R2, R4
Santa Margarita Water District R2, R4
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Recommendations – 90 Day Response Required
South Coast Water District R2, R4

REQUESTED RESPONSES
Findings – 90 Day Response Requested
East Orange County Water
District
F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12
El Toro Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Anaheim F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Santa Ana F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Fullerton F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Emerald Bay Service District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Golden State Water Company F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Laguna Beach County Water
District
F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12
Mesa Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Serrano Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Trabuco Canyon Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Yorba Linda Water District F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of San Juan Capistrano F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of San Clemente F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Tustin F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Fountain Valley F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City Council 7 – 29 11/21/2023

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Findings – 90 Day Response Requested
City of Westminster F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of La Habra F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Brea F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Buena Park F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of La Palma F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Seal Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Huntington Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Garden Grove F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 City of Newport Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12 Santa Ana Water Shed Project
Authority
F1, F2, F3, F5, F6, F7, F8, F9, F10, F11, F12
Metropolitan Water District of
Southern California
F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12
Recommendations – 90 Day Response Requested
East Orange County Water
District
R2, R3, R4
El Toro Water District R2, R3, R4
City of Anaheim R2, R3, R4
City of Santa Ana R2, R3, R4
City of Fullerton R2, R3, R4
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Recommendations – 90 Day Response Requested
Emerald Bay Service District R2, R3, R4
Golden State Water Company R2, R4
Laguna Beach County Water
District
R2, R3, R4
Mesa Water District R2, R3, R4
Serrano Water District R2, R3, R4
Trabuco Canyon Water District R2, R3, R4
Yorba Linda Water District R2, R3, R4
City of San Juan Capistrano R2, R3, R4
City of San Clemente R2, R3, R4
City of Tustin R2, R3, R4
City of Fountain Valley R2, R3, R4
City of Westminster R2, R3, R4
City of La Habra R2, R3, R4
City of Brea R2, R3, R4
City of Buena Park R2, R3, R4
City of La Palma R2, R3, R4
City of Seal Beach R2, R3, R4
City of Huntington Beach R2, R3, R4
City of Garden Grove R2, R3, R4
City of Newport Beach R2, R3, R4
Santa Ana Water Shed Project
Authority
R2, R3
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Recommendations – 90 Day Response Requested
Metropolitan Water District of
Southern California
R2, R3, R4
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GLOSSARY
Acre-feet
The unit of volume typically used to describe the quantity of water stored in large reservoirs and aquifers and delivered through large conveyance systems for irrigation use and for treating for public use. An acre-foot is one surface acre that is one foot deep and is equal to 325,851 gallons.

Aquifer
An underground layer or body of permeable rock, sediment, or soil that can store and yields water. Orange County has a large aquifer underlying North and Central County.

California State Water Project (CSWP)
A multi-purpose water storage and delivery system that extends more than 705 miles and includes a collection of canals, pipelines, and reservoirs to deliver water to 27 million Californians, 750,000 acres of farmland, and businesses throughout the state.

Conjunctive Use
Using surface water in wet years and storing as groundwater for use in dry years.

Surface water is injected directly into aquifers and wells to be used as needed as part of groundwater banking or is stocked in ponds or basins and then allowed to percolate naturally into aquifers.

Desalination
The process of removing salt from brackish water or seawater. For the purposes of this report, desalination is used primarily in terms of sea or ocean water.

Direct Potable Water Reuse
The process by which recycled wastewater is treated to a high degree suitable for potable use and placed directly into potable distribution systems. California has recently created regulations for direct potable water reuse.

Drought
A prolonged period of low or no rainfall that causes water scarcity and affects ecosystems, agriculture, and human health.

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Gray Water
Wastewater from bathtubs, shower drains, sinks, washing machines and dishwashers; however, some plumbing codes exclude water from sink and dishwasher as being classified as gray water.

Ground Water Recovery System (GWRS)
Operated by Orange County Water District, the system takes highly treated wastewater that would have previously been discharged into the Pacific Ocean and purifies it to potable standards.

Potable Water Reuse Indirect
Treatment of water such as recycled wastewater, to a high degree suitable for potable purposes and uses an environmental buffer, such as a lake, river, or a groundwater aquifer, before the water is treated again and utilized as potable water.

This process is used by Orange County Water District at GWRS to treat water and replenish the aquifer under North and Central Orange County.

Recycled Water
Water reuse (also commonly known as water recycling or water reclamation) reclaims water from a variety of sources then treats and reuses it for beneficial purposes such as agriculture and irrigation, potable water supplies, groundwater replenishment, industrial processes, and environmental restoration. For the purposes of this report, recycled water comes primarily from highly treated wastewater.

Reverse Osmosis
A process of producing pure water by forcing it through a semipermeable membrane that only allows water to pass. It is the primary method for large scale desalination and is also used as one of the final treatment steps for producing potable water from wastewater.

Sustainability
The long-term viability of a community or practice.

Urban Runoff
As commonly referred to in Orange County, surface runoff during dry weather of landscape irrigation, and car washing created by urbanization. It can also refer to the stormwater runoff over impervious surfaces (roads, parking lots and sidewalks). The concern with urban runoff is possible contamination of surface and groundwater.

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Water Banking
The practice of forgoing water deliveries during certain periods, and “banking” either the right to use the water in the future or saving it for someone else to use in exchange for a fee or delivery in kind. Typically, in Southern California, it is stored in aquifers.

Water Source
As used in this report, a water source is defined as the ocean or precipitation.

Water Suppliers
As used in this report, water suppliers include water districts and cities that provide water to the public.

Water Supply
As used in this report, water supply includes water derived from a water source and that is stored, conveyed, and utilized by the public.

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REFERENCES
• 10 You Tube Videos posted by Orange County Water District, posted between 2015 and recent
• 14 YouTube Videos Posted by Municipal Water District of Orange County over last 5 years
• 2 YouTube Videos posted by Santa Margarita Water District 2020 • 3 YouTube Videos regarding OC’s Largest Recycled Water Reservoir posted by Santa Margarita Water District 2020
• 5 YouTube videos posted by ABC regarding OC Water issues, between 2018 and recent
• A Review of Water Demands for the Orange County Water District by James Fryer, Environmental Scientist July 2016
• A Study of Deep Aquifers Underlying Orange County, United State Geological Survey 1969
• ACWA Communications Committee Water Reuse Terminology 2016 • Assessing Risk to the National Critical Functions as a Result of Climate Change, Homeland Security, 2022
o California Department of Conservation
o California Department of Fish and Wildlife
o California Department of Water Resources
• California Department of Water Resources | Natural Resources Agency Drought In California Report 2021
• California Department of Water Resources 2022 Annual Water Supply And Demand Assessment Summary Report
• California National Resources Agency Report to the Legislature on the 2012– 2016 Drought
• California Natural Resources Agency Department of Water Resources 2022 Urban Community Drought Relief Grant Program Guidelines and Proposal Solicitation Package
• California Natural Resources Agency Department of Water Resources 2022 Integrated Regional Water Management Grant Program Guidelines • California Senate Bill No. 852 Climate Resilience District 2021 City Council 7 – 36 11/21/2023

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• California State Water Boards – Water Rights Frequently Asked Questions Web Page
o California State Water Resources Control Board
• California Water Boards - Ocean Plan Requirements for Seawater Desalination Facilities
o California Water Commission
• California’ Water Supply Strategy – Adapting to a Hotter, Drier Future, 4 California Agencies, August 2022
• Clean Water Act Section 3 l 2(f) Application by the California State Water Resources Control Board
• Climate Change 2022 Mitigation of Climate Change Intergovernmental Panel On Climate Change
o Colorado River Board of California
o County of Orange
• Delta Flood Risk Management Delta Protection Commission State of California Assessment District Feasibility Study And Delta Levee Financing Option 2018 • EPA The Water Infrastructure Finance and Innovation Act (WIFIA) Doheny Ocean Desalination Project Funding Information
• How water works in Orange County, web page by Orange County Water District https://www.cpc.ncep.noaa.gov/
https://www.drought.gov/forecasts
https://www.weather.gov/riw/drought
• Indicators Of Climate Change In California Fourth Edition November 2022 California Environmental Protection Agency
o Irvine Ranch Water District
• Local water providers, web page by Orange County Water District • Major Water Conveyance Facilities, Map by Metropolitan Water District of Southern California
• Map of Orange County Water Agencies from Municipal Water District of Orange County
o Mesa Water District
o Metropolitan Water District of Southern California
• Metropolitan Water District Presentation Emergency Conservation Program for the SWP Dependent Areas 2022
• Metropolitan Water District Water Glossary Web Page
o Moulton Niguel Water District
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o Municipal Water District of Orange County
• MWDOC 2020 Water Shortage Contingency Plan
• MWDOC Announcement Newsom administration releases draft EIR to modernize Delta Conveyance
• MWDOC Directors Support Legislation to Streamline Approval of Storage Projects Statement
• National Oceanic and Atmospheric Administration Related Links on Climate, Drought https://www.cpc.ncep.noaa.gov/
• Numerous Related YouTube Postings
• OC Water Reliability Study MWDOC 2018
• OCWD Webinar – Preparing for Maximum Stormwater Capture while Safeguarding the Region from Flooding 2022
o Orange County Water District
• Orange County Water District 2018 Information Brochure • Orange County Water District Act 2018
• Orange County Water District Coastal Aquifers Merger Zones 2002 • Orange County Water District Depth to Shallow most groundwater map, 1997 • Orange County Water District Groundwater Contours Map 2020 • Orange County Water District Surface Water Recharge Facilities Map 2018 • Orange County Water District Three-Layer Basin Model Extent Map 2015 • Orange County Water District Well Locations 2018
o Others, not noted
• Pacific Institute The Untapped Potential of California’s Urban Water Supply:

Water Efficiency, Water Reuse, and Stormwater Capture 2022 • Pacific Institute Water Resilience Brief 2021
• Public Policy Institute of California Managing California’s Water From Conflict to Reconciliation 2021
• Public Policy Institute of California Paper on Storing Water 2018 o Sacramento-San Joaquin Delta Conservancy
o Santa Ana Water Shed Project Authority
o Santa Margarita Water District
o South Coast Water District
• South Coast Water District Doheny Ocean Desalination Project Water Cost Analysis Executive Summary 2021
• Stanford University Report Growth in California and Water 2012 City Council 7 – 38 11/21/2023

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• The following websites were referred to:
• The Untapped Potential of California’s Water Supply: Efficiency, Reuse, and Stormwater Pacific Institute June 2006
• Treehugger - What Is Desalination? How Does It Impact the Environment? 2021 • Various information regarding 2014 Water Bond
• Water Advisory Committee of Orange County – monthly reports • Water Education Foundation – Conjunctive Use
• Webinar OCWD A Regional Update on Southern California Water Supplies 2022 • Webinar OCWD Take It to the (Water) Bank: Ensuring Regional Water Supply Reliability 2022
o Yorba Linda Water District
• You Tube Posting, OCSD Replenishing precious Ground Water, Black and Vetch, 2013
• YouTube Posting, Michelson Water Recycling Plant, Irvine Ranch Water District 2009
• YouTube Video, Research in Action, Orange County Water District Reuse, posted by the Water Research Foundation 2022
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APPENDIX A: ACTIONS BY LOCAL

AGENCIES TO SECURE SUPPLY
Water Banking:

Water banking may help with droughts but is only a part of the solution and it has yet to prove itself.

Water banking is being pursued Metropolitan Water District and various water suppliers.

Simply put, water banking is a voluntary, market-based tool that could facilitate water transactions between willing sellers and buyers. Water right owners, who are willing to free up some of their water in a particularly dry year or years, would temporarily lease it to those who simply cannot afford to be without water. Water banking also takes water during periods when it is available and stores it. Banking water during wet years provides water districts with a cushion of protection during droughts. It also conserves any unused water, rather than letting it run out to the sea or be lost to evaporation. The storage is usually done in aquifers and generally not within the individual agencies area.

The water banking agreements can be complex and depend upon broad cooperation among various agencies for delivery and storage.

Conjunctive use is a
catchphrase for
coordinated use of surface
water and groundwater.

The state considers water
banking a “conjunctive
use” and
encourages such uses.19
On a statewide level,
California has 517
groundwater basins.

Stanford’s Water in the West institute estimates that the capacity of underground water storage in California is at least 20 times greater than that of the state’s reservoirs and lakes. However, the means to store surplus water and return it in dry years is lacking. The Sustainable Groundwater Management Act of 2014 has created the opportunity to expand recharge basins and banking particularly in agricultural areas but to date, action is lagging.

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The largest water banking project
underway that affects Orange
County is the Santa Ana River
Conservation and Conjunctive
Use Program (SARCCUP). It is a
regional program that involves
several agencies in Orange
County, Riverside County, and
San Bernardino County. While a
logical program to undertake,
there are technical and
distribution issues that must be
worked out and these items may
take several years.

A more controversial banking program is
the Cadiz project. The Cadiz Water
Project is a water supply project to
manage the groundwater basin underlying
a portion of the Cadiz and Fenner Valleys
in California’s Mojave Desert. At least one
water agency in Orange County has
considered this program as a potential
source of water to meet their needs. The
program has been promoted since 1997
and has yet to move forward. There are several environmental concerns with the program and concerns about transferring water between basins, particularly one under a desert. The Cadiz project currently is not viable supply of water.

There are criticisms of water banking and its effect on local communities. A Georgetown Environmental Law Review article in March 2022 stated, “While advocates of water banking believe its market-based approach will efficiently allow a reduction of use of water, especially during droughts, opponents may cite some examples of how letting the market take over may be detrimental to local communities.” Such concerns are valid and need to be considered prior to relying on water banking as the only solution to ensure water supply during times of drought.

Purchase of water rights
Temporary transfers of water from one water user to another have been used increasingly as a way of meeting statewide water demands, particularly in drought years. This has been done through the purchase of water rights. There are numerous articles concerning the possible negative effects of this practice, including the effects on less wealthy communities and agricultural. Due to these concerns, this practice should be limited. Farms in western Arizona are growing alfalfa – one of the most waterCity Council 7 – 41 11/21/2023

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intensive crops – in an area where there's a shortage of water. Some farms are foreignowned and are shipping the crop to Saudi Arabia, where it's illegal to grow because it takes too much water.20
Water sources cannot be bought or sold but the water taken from a lake, river, stream, or creek, or from underground supplies for a beneficial use, requires you have a water right.21 The right to use that water can be conveyed on a temporary basis. Temporary transfers of water from one water user to another have been used increasingly as a way of meeting water demands, particularly in drought years.

During interviews, the Grand Jury found the purchase of water rights to be widespread.

Agencies stated the cost of acquiring water rights is significantly less than developing new sources. The practice includes asking agricultural users to allow their land to lay fallow.

There are numerous articles about making the agriculture industry more efficient.

These effects, if they occur, will take time and be costly. Taking water from a major industry to satisfy urban demands is inherently wrong and will not solve the problem of extended drought.

Recycling Water
Recycled water offers Orange County a way to reduce water requirements but is limited by the amount of wastewater that can be recycled which in turn is dependent upon available water supply. It is an important piece of Orange County water resiliency but not a solution itself.

Recycled water is wastewater that has been treated to a level acceptable for landscaping and certain other industrial uses. The regulations regarding the use and stand for treatment of recycled water are referred to as Title 22. 22 Orange County has
been a leader in recycling of water through Orange County Water District and Irvine Ranch Water District.23 Irvine Ranch Water District reports that 25% of the water it supplies is recycled. Recycled water replaces the need for using potable water.

Currently, various water districts are expanding their recycling systems by constructing additional reservoirs and distribution systems. The cities and water districts in Orange County have also been active in sponsoring legislation that supports recycling of water.

South Orange County Wastewater Authority (SOCWA) treats and distributes for reuse roughly six billion gallons of water every year.
24 However, not all SOCWA treatment
plants are recycling as much as feasible, most notably the JB Latham Treatment Plant does not recycle any treated wastewater. During the interviews, different agencies noted there are jurisdictional friction that is being worked on to increase recycling and potentially water reuse in South Orange County. The Grand Jury strongly encourages cooperation or mergers that would increase recycling in South Orange County.

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In summary, water recycling is an important part of Orange County’s water supply and needs to be utilized to the maximum extent. However, it will not resolve water resiliency issues by itself and it relies on existing sources of water.

Reuse of Water for Potable Purposes
Reusing wastewater for potable purposes is an important part of North Orange County’s water portfolio. Orange County Water District produces 130 million gallons of indirect reuse water per day. However, the amount reused water is dependent upon the diminishing supplies within Orange County.

Water reuse is used to enhance water security, sustainability, and resilience. The process of using treated wastewater for drinking water is called potable water reuse.

Potable water reuse provides another option for expanding a region’s water supply portfolio.

There are two types of potable water reuse:
• Indirect potable reuse: Uses an environmental buffer, such as a lake, river, or a groundwater aquifer, before the water is treated at a drinking water treatment plant.
• Direct potable reuse: Involves the treatment and distribution of water without an environmental buffer.
25 Orange County Water District has been providing indirect potable reuse. In the mid1990s, OCWD began the planning and construction that created the Groundwater Replenishment System to produce indirect potable water. The process built upon an earlier process to produce water to prevent groundwater intrusion. The process took over ten years to implement and the system is working well. However, it should be noted as being limited because it relies upon a declining supply and it is a lengthy process.

Interviewees have noted that OCWD is considering direct potable reuse. The State of California is currently enacting regulations to enable direct potable reuse. One of the advantages of direct potable reuse is the elimination of the loss due to evaporation at the percolation ponds and the efficiency of direct use.

In summary, water reuse is a vital part of the portfolio of water for Orange County to insure water resiliency. Water reuse should also be expanded to the practical extent possible. The time to complete such projects is lengthy and needs to be started immediately. However, reuse is only part of the water needed by Orange County and the source problem needs to be addressed.

Aquifer Management
Managing the aquifer underneath North Orange County created a highly resilient source of water, but it is challenged by the climate change. The main and supplemental supplies of water are diminishing with less precipitation. The use of the aquifer for wet City Council 7 – 43 11/21/2023

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weather storage has not met it potential due to challenges in trapping rainwater and runoff. The aquifer has not been made a regular source of water for all of Orange County which could ease South Orange County’s supply problems.

The aquifer supplies approximately 72% of the water for North and Central Orange County. The aquifer is primarily supplied by runoff in the Santa Ana River and supplemented with water from the OCWD’s Groundwater replenishment project and water purchased through MWDOC and MET.

OCWD has done well managing the aquifer for North and Central Orange County with existing flows. It has also taken steps to increase the supply of water by working with the Corps of Engineers to better manage the flow of water in the Prado Reservoir, expanding the groundwater replenishment system, and participating in the Santa Ana River Conservation and Conjunctive Use Program.26 All of these steps reinforce the ability of the basin to supply water but do not in themselves assure an increased supply water.

South Orange County can only receive water during times of emergencies but does not have regular access to the water. Interviewees noted there was a lack of ability to move water to South Orange County. Because South Orange County is almost 100% dependent upon water imported from MET, this is highly problematic during drought.

The Santa Ana River
water basin covers San
Bernardino and
Riverside Counties as
well as Orange County.

The Santa Ana
Watershed Project
Authority (SAWPA)
works to maintain the
water quality in the
Santa Ana River and is
actively working on
drought responses.

According to its web
site, “SAWPA’s work in
the Santa Ana River
Watershed advances projects and programs that build water resiliency and promote collaborative, innovative responses to water planning, all of which help address drought conditions.”27 SAWPA also prepared a water shed management plan.28 City Council 7 – 44 11/21/2023

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Weather modification
and promoting water
efficiency are the
primary drought
responses of SAWP.

Through weather
modification (cloud
seeding) it hopes to
achieve 5% more
precipitation in
specific types of
storms.

The water efficiency approach is to help implement water use efficiency programs and conservation-based rate structures.
29 We were provided with no specifics regarding
what percentage can be saved, but through interviews the Grand Jury learned that the savings are between 15% to 30%.

None of the initiatives by SAWPA are likely to have an impact on water supplies during prolonged California drought. Interviewees consistently stated that we cannot conserve our way out of a drought.

Adding to the concern about the Santa Ana River ground water supply basin is the Inland Empire’s future demands on the water. Development is rapidly taking place and surface water sources and water agencies are recycling water to greater degrees rather than discharging treated wastewater to the Santa Ana River.30 The Inland Empire communities are largely dependent upon Metropolitan Water District supplies which are subject to drought.

Orange County Water District only has rights to withdrawing an adjudicated amount of 34,000-acre feet of water from the Santa Ana River. This is approximately half of the 70,000-acre feet typically used to manage the aquifer levels. OCWD typically purchases 30% of the water added to the aquifer from MWDOC. The water MWDOC supplies comes from Metropolitan Water District (MET). During late 2022, MET reduced the water from Northern California Sources to 5% of previous amounts. The water MET receives from the Colorado River is endangered as discussed elsewhere.

In summary, the Central and North Orange County aquifer has limits on its ability to supply water to Orange County. These include dependencies on water from Metropolitan Water District, which has had problems supplying water, and a potentially dwindling supply of water from the Santa Ana River. The aquifer is not a supply of water for South Orange County. The aquifer limitations reinforce the need for Orange County to provide for a more drought-resistant supply of water.

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Utilization of other supplies
Besides the North/Central Orange County aquifer and those obtained from Metropolitan Water District, there are other insignificant supplies of water. These include surface water captured in Irvine Lake and the San Juan Creek Groundwater Basin in South Orange County. Neither of these are significant supplies of water.

Water Efficiency to Increase Supply
Orange County Water Districts have found they can reduce the immediate need for increasing water supplies by more efficient use of water. This certainly stretches the water supplies, but it is limited in its ability. Future water needs will require more than just efficient water use.

During the recent drought from 2011 to late 2022, Orange County Water Suppliers reduced the per-capita water use significantly by more efficient water use and conservation. This has allowed development to continue to occur even as the water supply was reduced.

Irvine Ranch Water District (IRWD) customers reduced their water use from 89 gallons per capita in 2007 to 67 gallons per capita in 2021.
31 The area served by IRWD is a
newer area where much of the landscaping is irrigated by recycled water and is drought tolerant. The IRWD also has extensive use of water saving plumbing in homes. Older areas of Orange County have also reduced per-capita water use. North and Central Orange County reduced water use from 330 acre-feet in water year 1999-2000 to 230 acre-feet in water year 2022-202332 while the population grew slightly. 33 Water efficiency savings have been achieved by adopting water saving devices, changes in landscape practices, greater recycling of water, tiered water rates (higher users, higher rates) and the public’s participation. Water suppliers have worked with users to identify the need for greater efficiency by promoting these changes. The State of California also mandated a 20 percent reduction in urban per-capita water use by 2020 in the Water Conservation Act of 2009.

The change to efficient use of water will need to become the future standard as water supplies diminish and as housing development increases. However, it is not reasonable to expect greater efficiency to make up for the reduction in supply caused by climate change. Several of the interviewees and many of the reference documents the Grand Jury reviewed stated Orange County cannot conserve its way out of a drought.

Besides the significant reduction in per-capita water use, greater savings may be made by more drastic changes in lifestyle. None of the information supplied by water suppliers and reviewed by the Grand Jury addressed these changes. As an example of lifestyle changes, areas such as Phoenix and Las Vegas have either adopted or are in the process of adopting drastic restrictions on landscape water use as a long-term City Council 7 – 46 11/21/2023

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climate mitigation. Among these restrictions is a moratorium on development by restricting new water connections.
34 Continue efficient water use is needed for the future. Orange County has made significant changes in per-capita water use by being efficient, but any additional savings will only come through changes to lifestyle. This needs to be made clear to residents if additional efficiency is to be achieved, but even additional efficiency will not mitigate the effects of climate on Orange County’s current water supply. Ocean desalination is recommended as the ultimate answer to an untapped source of water and can secure Orange County’s future.

APPENDIX B: graphics of interest
Metropolitan Water District of Southern California, Municipal Water District Orange County and Orange County Water District Information Sheets City Council 7 – 47 11/21/2023

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Rob Jordan, Reasons for hope amid California’s drought, Water in the West News, October 27, 2021
Robert Reid, The new1.6 billion gal. reservoir is the largest facility of its kind in Orange County and the first to be constructed there in decades., American Society Civil Engineers CE Magazine, October 2022
Robyn White, Lake Mead Water Levels Over Time Shown in Before and After Pictures, Newsweek, January 3, 2023
Robyn White, Lake Mead Water Levels Over Time Shown in Before and After Pictures, Los Angeles Times, January 3, 2023
Robyn White, Why Is the Colorado River Drying Up? Newsweek, December 21, 2022 Sammy Roth, These farmers dominate the Colorado River. Cross them at your own peril, Boiling Point republished Los Angeles Times, January 19, 2023
Sammy Roth, Want to solve climate change? Open more land to solar, industry leader says, Los Angeles Times, December 1, 2022
City Council 7 – 56 11/21/2023

HISTORIC RAIN, YET DROUGHT REMAINS
ORANGE COUNTY GRAND JURY 2022 I 2023 Page 55 of 57
Sammy Roth, Want to solve climate change? This California farm kingdom holds a key, Los Angeles Times, January 17, 2023
Sharon Udasin , DRIED UP: In California, desalination offers only partial solution to growing drought, The Hill, December 5, 2022
Staff Drinking water from the sea, THE WEEK, February 17, 2023 Staff, Remarkable recovery at Northern California's most beleaguered reservoir, CBS San Francisco, February 19, 2023
Staff, Sites Reservoir Is a Solution to California’s Megadrought, South Coast Water District, November 5, 2022
Stan Metz and Felicia Fonseca, Deadline looms for western states to cut Colorado River use by about 15%, Associated Press, August 17, 2022
Stephen Katz, For Potable Reuse, Innovation Drives Adaptation, Waterworld, December 2022 Steven Greenhut, Editorial - Enviros just want to make everyonemiserable, Orange County Register, January 15, 2023
Steven Greenhut, Editorial - Will Our State Get Water Policy Right, Orange County Register, July 31, 2022
Stuart Snell, World-first major desalination field study finds minimal marine impact, UNSW Sydney, September 20, 2018
Teri Sforza, Build more houses! Use less water! California, can you have it both ways? Orange County Register, July 18, 2022
Teri Sforza, Editorial You’re not saving enough water, Southern California, Orange County Register, July 11, 2022
Teri Sforza, One OC water agency fights for its life in face of consolidation desires, Orange County Register, February 10, 2023
Teri Sforza, Who are Orange County’s biggest water or wasters? Here’s the list, Orange County Register, August 14, 2022
Teri Sforza, Who’s cracking down on water wasters in OC? Orange County Register, November 23, 2022
Thomas Elias, Opinion - California will resist bullying along the Colorado River, Letter in Los Angeles Times, February 17, 2023
City Council 7 – 57 11/21/2023

HISTORIC RAIN, YET DROUGHT REMAINS
ORANGE COUNTY GRAND JURY 2022 I 2023 Page 56 of 57
Times Editorial Board, Editorial: An unfair plan to cut California’s use of Colorado River water, Los Angeles Times, February 26, 2023
Tom Coleman, Editorial Water Conservation is not enough, Orange County Register, January 1, 2023
Various, A Water War Is Brewing Over the Dwindling Colorado River, Washington Post, December 27, 2022
White, Robyn, Biden Says Climate Change Could Dry Up Colorado River. Is It Possible? Newsweek, March 15, 2023
NOTICE
Reports issued by the Grand Jury do not identify individuals interviewed.

Penal Code section 929 requires that reports of the Grand Jury not contain the name of any person or facts leading to the identity of any person who provides information to the Grand Jury.

ENDNOTES
1 The Groundwater Replenishment System - Providing Water for The Future. 2003-2004; Water Budgets, Not Water Rationing 2007-2008; “Paper Water” — Does Orange County Have A Reliable Future? 2008-2009; Orange County Water Sustainability: Who Cares? 2012-2013; Sustainable and Reliable Orange County Water Supply: Another Endangered Species? 2013-2014; Increasing Water Recycling: A Win-Win for Orange County 2014-2015 2 Metropolitan Water District Web Site See Metropolitan Water District Web Site MWD | Homepage (mwdh2o.com) 3 See Metropolitan Water District Web Site https://www.mwdh2o.com 4 California Department of Water Resources State Water Project Web Page State Water Project (ca.gov) 5 Washington Examiner Article “$2.7 billion bond fund to build water reservoirs sits idle in California” dated August 16, 2021
6 Natural Resources Bond Accountability Web Page Proposition One (ca.gov) 7 California Environmental Protection Agency – Indicators of Climate Change in California – 4th Addition, California’s Water Supply Strategy – Adapting to A Hotter, Drier Future – Introduction – August 2022.

City Council 7 – 58 11/21/2023

HISTORIC RAIN, YET DROUGHT REMAINS
ORANGE COUNTY GRAND JURY 2022 I 2023 Page 57 of 57
8 Newsom calls for funding for water – Bay Area News Group Article dated August 11, 2022 9 California Government Code (Beginning with Section 62300) to Title 6 of the Government Code 10 Water in Orange County Needs “One Voice” Orange County Grand Jury Report 2021-2022 11 018 OC Study Report Final Report_02-01-2019 td with apendices.pdf (mwdoc.com) 12 See Treehugger Sustainability for All article dated April 15, 2021 13 United States Geological Survey Web Page on Desalination | U.S. Geological Survey (usgs.gov) 14 International Desalination Association web page IDA | The Global Desalination and Water Reuse Community (idadesal.org)
15 Claude Lewis Carlsbad Desalination Plant, “Homepage.” https://www.carlsbaddesal.com 16 Municipal Water District of Orange County webpage Water Rates and Charges | MWDOC 17 SoFi Stadium is a sports and entertainment destination built in Inglewood, California 18 Ocean Plan Requirements for Seawater Desalination Facilities by the California Water Boards – State Water Resources Control Board
19 Conjunctive Use - Water Education Foundation
20 Ben Tracy, Saudi company draws unlimited Arizona ground water amid drought, CBS News 21 California State Water Control Boards Web Site – Water Rights Page 22 Water Recycling and Title 22 - Water Education Foundation 23 50 Years of Recycled Water (irwd.com)
24 Recycled Water | SOCWA
25 Potable Water Reuse and Drinking Water | US EPA
26 Drought - Orange County Water District (ocwd.com)
27 Drought Response - SAWPA - Santa Ana Watershed Project Authority 28 Wic07Aone-one-watershed-plan-update.pdf (OCWD.com)
29 Water Conservation Portal - California Statutes | California State Water Resources Control Board 30 Recycled Water Service - Eastern Municipal Water District (emwd.org) 31 See Irvine Range Water District web site IRWDis
32 See Water Advisory Committee of Orange County Water Supply Report Dated March 3, 2023 33 USA Facts Orange County, CA population by year, race, & more | USAFacts 34 Water shortages threaten development throughout the West – AZMirrow Article dated June 10, 20 City Council 7 – 59 11/21/2023

MAYOR PRO TEM
Jessie Lopez

COUNCILMEMBERS
Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez

CITY OF SANTA ANA

PUBLIC WORKS AGENCY
20 Civic Center Plaza ● P.O. Box 1988
Santa Ana, California 92702
www.santa-ana.org

ACTING CITY MANAGER
Steven Mendoza

CITY ATTORNEY
Sonia R. Carvalho

CITY CLERK
Jennifer L. Hall
November 21, 2023 Via E-mail and U.S. Mail
The Honorable Judge Maria Hernandez
Presiding Judge of the Superior Court
700 Civic Center Drive West
Santa Ana, CA 92701
Dear Judge Hernandez,
The City of Santa Ana hereby submits its response to the findings and recommendations in the 2022- 2023 Orange County Grand Jury report, “Historic Rain, Yet Drought Remains.” The City of Santa Ana (City) thanks the Orange County Grand Jury for the significant time and effort that was invested to evaluate the important issues of water supply and drought in Orange County. We appreciate the Grand Jury’s recommendations of possible solutions and we look forward to being a part of the solution.

The City of Santa Ana is the sole water purveyor for all of its 320,000-plus residents and the businesses it serves. The City is unique in that it is one of the three Orange County founding member agencies of Metropolitan Water District (MWD), a member of Orange County Water District (OCWD), and contracts with Municipal Water District of Orange County (MWDOC) for various conservation programs and regional services. Given our level of involvement with all three of these agencies, we are committed to doing what it takes to protect the reliability of our water supply and delivery system for the future.

The City appreciates the opportunity to provide feedback and comments on the 2022-2023 Orange County Grand Jury Report. Per the 2022-2023 Orange County Grand Jury’s request, and in accordance with Penal Code 933.05, below are the City’s responses to findings F1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12, and Recommendations R2, R3, and R4.

City Council 7 – 60 11/21/2023
November 21, 2023 Honorable Maria Hernandez, Presiding Judge Page 2

FINDINGS
F1 – Future water supplies are impacted by climate change and current supplies will not meet future demands.

RESPONSE: Differ Partially with this Finding
Future water supplies are likely impacted by climate change. However, the City does not agree with “current supplies will not meet future demands.” OCWD successfully manages the local groundwater aquifer for the benefit of multiple water suppliers, including the City. The City’s water supply portfolio current comprises of 85% groundwater supplies and 15% imported water. Based on this diversified portfolio, the City is well positioned for water supply reliability in the face of potential climate change impacts on water supply. In addition, at this point in time, local and imported water supplies are in good condition and the groundwater basin is effectively full.

F2 – Climatologists predict future extended period of low moisture with occasional wet years.

RESPONSE: Concur Partially with this Finding
The City agrees that some climatologists predict future extended period of low moisture with occasional wet years, while others may have varying opinions.

F3 – Climate change is inevitable and is exacerbated by human behavior.

RESPONSE: Concur Partially with this Finding
The City agrees climate is constantly changing, but the City does not have the expertise to comment on the impact of human behavior on the climate.

F4 – South Orange County relies primarily on the importation of water.

RESPONSE: Concur with this Finding
The City agrees with this finding.

F5 – Local water suppliers recognize that enhanced storm water capture and storage, wastewater recycling, and infrastructure improvements will not be sufficient to address the long-term forecast of drought and its effects on supply.

RESPONSE: Disagree with this Finding
The City does not agree with this finding. Current City’s water portfolio is sufficient for addressing water supply needs.

F6 – There is significant water infrastructure planning, but inadequate implementation.

RESPONSE: Disagree with this Finding
The City does not agree with this finding with respect to the OCWD service area. OCWD has planned and implemented numerous projects that maximize the utility and annual yield of the groundwater basin.

City Council 7 – 61 11/21/2023
November 21, 2023 Honorable Maria Hernandez, Presiding Judge Page 3

SANTA ANA CITY COUNCIL
Valerie Amezcua
Mayor
[email protected]
Jessie Lopez
Mayor Pro Tem, Ward 3
[email protected]
Thai Viet Phan
Ward 1
[email protected]
Benjamin Vazquez
Ward 2
[email protected]
Phil Bacerra
Ward 4
[email protected]
Johnathan Ryan Hernandez
Ward 5
[email protected]
David Penaloza
Ward 6
[email protected]
F7 – The review and approval process for major water capital projects is cumbersome and overly restrictive.

RESPONSE: Concur with this Finding
The City generally concurs with this statement and would support regulatory and California Environmental Quality Act (CEQA) reform measures to quicken the permitting process for infrastructure projects.

F8 – Failing to find solutions to water shortages will have significant impact on the Orange County economy.

RESPONSE: Concur with this Finding
The City concurs with this finding if such were to occur.

F9 – Continued development in Orange County creates additional water supply needs.

RESPONSE: Differ Partially with this Finding
The City differs partially with this finding. The water demands within the City of Santa Ana have decreased by 30% over the past 10 years despite continued development and population changes.

F10 – Conservation and efficient use of water is essential.

RESPONSE: Concur with this Finding
The City concurs with this finding.

F11 – Increased outreach and public education are necessary.

RESPONSE: Concur with this Finding
The City concurs with this finding and actively promotes outreach and education.

F12 – Desalination has proven to be technologically and environmentally feasible and is slowly being embraced as a drought-resistant source of water.

RESPONSE: Concur with this Finding
The City agrees that ocean desalination can play a vital role in securing additional and future water supply reliability.

City Council 7 – 62 11/21/2023
November 21, 2023 Honorable Maria Hernandez, Presiding Judge Page 4

RECOMMENDATIONS
R1 – The County of Orange Board of Supervisors should take leadership role by the end of calendar year 2023 to explore the establishment of a “Climate Resiliency District” or Joint Powers Authority to fund and expedite implementation of a drought-resistant source of water (F1, F2, F3, F4, F5, F6, F7, F8, F9, F12).

RESPONSE NOT REQUESTED
The Orange County Grand Jury did not request a response from the City regarding this recommendation.

R2 – Orange County Water agencies should expedite the planning, development, and construction of desalination plants over the next five years to insure a sustainable and reliable drought-resistant source of water (F1, F2, F3, F4, F5, F6, F7, F8, F9, F11, F12).

RESPONSE: The recommendation requires further analysis
The City agrees partially with the recommendation and it requires further analysis. The City supports the development of desalination plants depending upon the water supply circumstances, needs, and resources of individual water agencies and cities. Other water supply alternatives may prove to be beneficial and cost-effective as well, but ultimately, the responsibility for expediting desalination primarily falls in the domain of State and Federal authorities.

R3 – The County of Orange and all Orange County cities should formulate an emergency development moratorium plan in anticipation of the Colorado River water supply being constrained. The emergency moratorium plan should be developed by the end of the calendar year 2023 (F1, F2, F3, F4, F5, F6, F7, F8, F9, F11, F12).

RESPONSE: The recommendation will not be implemented
The City disagrees and will not be implementing this recommendation. A Colorado River shortage would affect various Orange County cities differently and a moratorium on development would likely have more adverse impacts than the theoretical shortage. Moratoriums placed on development could have significant negative impacts on housing needs, employment, and local economy.

R4 – Orange County water agencies should update their public communication strategies, by calendar year end 2023, to inform the public of lifestyle changes if additional water sources are not developed (F10, F11, 12).

RESPONSE: The recommendation requires further analysis
It is not known if lifestyle changes will be necessary within Orange County if additional water sources are not developed. The City will continue to actively monitor the availability of imported and local water supplies, and other issues to determine if additional water supplies are needed in the future. The City will continue to update communications with the public for conservation through educational and outreach purposes.

City Council 7 – 63 11/21/2023
November 21, 2023 Honorable Maria Hernandez, Presiding Judge Page 5

SANTA ANA CITY COUNCIL
Valerie Amezcua
Mayor
[email protected]
Jessie Lopez
Mayor Pro Tem, Ward 3
[email protected]
Thai Viet Phan
Ward 1
[email protected]
Benjamin Vazquez
Ward 2
[email protected]
Phil Bacerra
Ward 4
[email protected]
Johnathan Ryan Hernandez
Ward 5
[email protected]
David Penaloza
Ward 6
[email protected]
The City of Santa Ana thanks you for the opportunity to weigh in on this important matter. We believe it is a practice of good governance to periodically review, reflect on, and evaluate how we conduct business and best serve our community.

The City of Santa Ana looks forward to continued collaboration on this issue and discovering answers that will be satisfactory to all.

Sincerely,
Steven Mendoza
Acting City Manager
Attachments: Staff report dated November 21, 2023 and related exhibits City Council 7 – 64 11/21/2023
Finance and Management Services
www.santa-ana.org/finance
Item # 8
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 21, 2023
TOPIC: Periodic Quarterly Report of Investments as of September 30, 2023

AGENDA TITLE
Receive and File Quarterly Report of Investments as of September 30, 2023

RECOMMENDED ACTION
Receive and file Quarterly Report of Investments as of September 30, 2023.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
California Code Section 53646 (b) states that if a quarterly report is rendered to the legislative body, the quarterly investment report shall be submitted within 45 days following the end of the quarter covered by the report. In an effort to meet the statutory requirement, Finance & Management Services Agency (FMSA) submits the Report via email for review and distribution to the City Council in advance. The report was emailed for distribution on October 30, 2023. The legislation specifies that this quarterly report contain the seven major elements listed below:

1. Type of investments

2. Date of maturity

3. Par and dollar amounts invested in each security

4. Weighted average maturity of the investments

5. Market value as of the date of the report

6. Source of the market value information

7. Any funds, investments, or programs, including loans, under the management of contracted parties
These specifications include a statement outlining the ability of the City to meet the budgeted expenditures for the subsequent six months be submitted to the City Council on a quarterly basis. Staff performs an end-of-month expenditure analysis to comply with the expenditure requirement and a statement confirming the ability to meet this requirement in the monthly and quarter-ending Treasurer’s Report. The information is in compliance with State law and the City’s Investment Policy.

The attached Treasurer’s Report (Exhibit 1) accurately reflects all pooled investments held on behalf of the City as of September 30, 2023.

City Council 8 – 1 11/21/2023
Quarterly Report of Investments
November 21, 2023

Page 2 ends

The attached Cash held by Bank and Cash held by Fund(s) Listing (Exhibit 2) is a schedule of cash by funds added to the monthly and quarterly Report of Investments to enhance FMSA’s reporting and transparency.

The following tables represent: (1) percentage limits set by the City’s Investment Policy and State Law and shows respective City investment portfolio investment types, amounts, and percentages; and (2) the restricted cash balance as of September 30, 2023.

Type of Investment Amounts Invested
$
Portfolio %
COSA
Policy
Limits
%
State Law
Limits %
Certificates of Deposit (CDs) $6,696,000 1.44% 30% 30%
Federal Farm Credit Bank (FFCB) $54,424,085 11.70% None None Federal Home Loan Bank (FHLB) $229,371,209 49.30% None None Federal Home Loan Mortgage Corp. (FHLMC) $48,971,750 10.53% None None Federal National Mortgage Association (FNMA) $59,484,750 12.79% None None Local Agency Investment Fund (LAIF) $13,702,036 2.95% None None Local Agency Investment Fund (LAIF – ARPA) $47,589,190 10.23% None None U.S. Treasury $4,990,000 1.07% None None
Sub- Total: $465,229,020 100% None None
Cash : $32,346,231
Total: $497,575,251
Restricted Cash In $
Restricted Cash † $13,542,964
Total $13,542,964
† Restricted cash is held by various Trustees such as Bank of New York Mellon; US Bank; Signature Bank; and State of California Condemnation Fund. Restricted Cash is segregated from cash used for daily operations.

The following City investment portfolio graph represents percentages within the respective investment types as of September 30, 2023.

City Council 8 – 2 11/21/2023
Quarterly Report of Investments
November 21, 2023

Page 3 ends

The following table represents, as of September 30, 2023, the aggregate Average Market.

Aggregate Average Market Yield To Date
Average Month To Date (AMTD) 1.663%
Cash held by Bank and Cash by Fund(s) Listing (Exhibit 2) The above-referenced exhibit (Exhibit 2) includes a comparison of bank balances between each City Cash account including Investments; Cash held at a City designated financial institution; Cash on Hand; and Restricted Cash versus the Cash held by various Fund(s).

EXHIBIT(S)

1. Treasurer’s Report

2. Cash Held by Bank and Cash Fund(s) Listing
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Steven A. Mendoza, Acting City Manager
City Council 8 – 3 11/21/2023
City of Santa Ana
Portfolio Management
September 30, 2023
Portfolio Summary
% of
Portfolio
Book
Value Investments
Market
Value
Par
Value
Days to
Term Maturity
YTM/C
Certificates of Deposit 6,696,000.00 5,991,173.67 6,696,000.00 1.44 1,653 1,005 1.181 Local Agency Investment Funds 13,702,035.99 13,702,035.99 13,702,035.99 2.95 1 1 3.534 Cash in Banks 47,589,190.42 47,589,190.42 47,589,190.42 10.23 1 1 3.353 Federal Agency Coupon Securities 382,675,000.00 354,313,132.25 382,610,705.25 82.24 1,576 283 1.296 Federal Agency Discount Securities 10,000,000.00 9,743,100.00 9,641,088.89 2.07 248 187 5.482 Treasury Coupon Securities 5,000,000.00 4,864,050.00 4,990,000.00 1.07 837 273 1.839 465,229,020.55 100.00%
Investments
465,662,226.41 436,202,682.33 1,334 254 1.663
Cash
(not included in yield calculations)
Passbook/Checking 32,346,230.73 32,346,230.73 32,346,230.73 1 1 0.000 497,575,251.28 Total Cash and Investments 498,008,457.14 468,548,913.06 1,334 254 1.663 Current Year
September 30
678,351.41
Fiscal Year To Date
2,358,463.66
Average Daily Balance
Effective Rate of Return
521,417,323.42 557,988,023.95

1.58% 1.68%
Total Earnings Month Ending
This report contains all the required information in SB 866 and SB 564 and accurately reflects all pooled investments held during this reporting period on behalf of the City and the City of Santa Ana acting on behalf of the Community Redevelopment Agency. The information reported herein is in compliance with State law and the City's Investment Policy. Based on liquidity of investments, the City of Santa Ana is able to meet budgeted expenditure requirements for the next six months, barring any catastrophic natural disasters. Market pricings are obtained through the City's third party trust services at BNY Mellon Trust.
__________________________________________________ ____________________ Finance & Mgmt Services Agency,
Portfolio COSA
CP
Reporting period 09/01/2023-09/30/2023
Run Date: 10/20/2023 - 10:48 PM (PRF_PM1) 7.3.11
Report Ver. 7.3.11
EXHIBIT 1
City Council 8 – 4 11/21/2023
YTM/C
365

Page 1 ends

Par Value Book Value
Maturity
Date
Stated
Market Value Rate
September 30, 2023
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Santa Ana
Days to
Maturity
YTM/C
CUSIP Investment # 360
Purchase
Date
Certificates of Deposit
06417NF73 14051 BANK OZK 11/12/2021 248,000.00 218,534.33 248,000.00 0.600 0.592 0.600 954 05/12/2026 02568KAJ4 14043 American Equity Bank 11/26/2021 248,000.00 218,758.07 248,000.00 0.700 0.690 0.700 969 05/27/2026 70962LAV4 14050 PENTAGON FCU 11/10/2021 248,000.00 216,904.35 248,000.00 1.000 0.986 1.000 1,136 11/10/2026 549104ZS9 14046 LUANA SAVINGS BK 11/05/2021 248,000.00 214,497.66 248,000.00 0.600 0.592 0.600 1,131 11/05/2026 87165FD76 14047 SYNCHRONY BANK 11/05/2021 248,000.00 218,005.62 248,000.00 1.100 1.085 1.100 1,131 11/05/2026 02589ABT8 14078 AMERICA EXPRESS NATL BK 03/16/2022 248,000.00 222,112.02 248,000.00 2.000 1.973 2.000 1,262 03/16/2027 15721UET2 14044 CFBANK 11/10/2021 248,000.00 218,267.75 248,000.00 0.850 0.838 0.850 1,013 07/10/2026 32022EAU0 14065 FIRST FEDERAL 12/29/2021 248,000.00 226,624.83 248,000.00 0.850 0.838 0.850 698 08/29/2025 88413QDE5 14056 THIRD FEDERAL S&L 11/24/2021 248,000.00 229,277.84 248,000.00 0.800 0.789 0.800 600 05/23/2025 07371AH22 14084 BEAL BANK PLANO TX 03/30/2022 248,000.00 223,957.19 248,000.00 2.250 2.219 2.250 1,270 03/24/2027 38149MR47 14064 GOLDMAN SACHS 12/22/2021 248,000.00 224,598.15 248,000.00 1.000 0.986 1.000 813 12/22/2025 856285YQ8 14057 ST BK INDIA NY 11/29/2021 248,000.00 217,810.61 248,000.00 1.150 1.134 1.150 1,156 11/30/2026 14042TEP8 14079 CAPITAL ONE BANK 03/16/2022 248,000.00 222,107.96 248,000.00 2.000 1.973 2.000 1,262 03/16/2027 59013KPN0 14049 MERRICK BANK 11/09/2021 248,000.00 217,602.07 248,000.00 1.100 1.085 1.100 1,135 11/09/2026 30781JAW0 14054 FARMERS & MERCHANTS 11/19/2021 248,000.00 215,571.50 248,000.00 0.850 0.838 0.850 1,145 11/19/2026 05580AH64 14061 BMW BANK OF NA 12/17/2021 248,000.00 234,375.90 248,000.00 0.950 0.937 0.950 443 12/17/2024 45776NEN2 14062 INSBANK 12/20/2021 248,000.00 219,433.48 248,000.00 0.900 0.888 0.900 992 06/19/2026 58404DMQ1 14063 MEDALLION BK UT 12/20/2021 248,000.00 217,809.92 248,000.00 1.250 1.233 1.250 1,177 12/21/2026 89235MMB4 14052 TOYOTA FINANCIAL 11/12/2021 248,000.00 217,850.22 248,000.00 1.100 1.085 1.100 1,138 11/12/2026 292079AR1 14045 EMPIRE ST BK NA 11/12/2021 248,000.00 219,493.74 248,000.00 0.900 0.888 0.900 1,016 07/13/2026 07371CT25 14085 BEAL BANK USA 03/30/2022 248,000.00 223,957.19 248,000.00 2.250 2.219 2.250 1,270 03/24/2027 73319FBJ7 14053 POPPY BANK 11/17/2021 248,000.00 215,313.20 248,000.00 0.800 0.789 0.800 1,143 11/17/2026 320337EZ7 14048 FIRST GENERAL BK 11/05/2021 248,000.00 231,396.05 248,000.00 0.500 0.493 0.500 493 02/05/2025 39573LCC0 14055 GREENSTATE CU 11/23/2021 248,000.00 224,580.81 248,000.00 0.900 0.888 0.900 785 11/24/2025 61768U3U9 14082 MORGAN STANLEY PVT BANK 03/31/2022 248,000.00 223,931.40 248,000.00 2.250 2.219 2.250 1,276 03/30/2027 61773TCX9 14083 MORGAN STANLEY PVT BANK 03/31/2022 248,000.00 223,931.40 248,000.00 2.250 2.219 2.250 1,276 03/30/2027 795451BA0 14060 SALLIE MAE BANK 12/15/2021 248,000.00 234,470.41 248,000.00 1.000 0.986 1.000 442 12/16/2024 Subtotal and Average 6,696,000.00 6,696,000.00 5,991,173.67 6,696,000.00 1.165 1.181 1,005 Local Agency Investment Funds
LAIFCITY LAIFCITY Local Agency Investment Fund 13,702,035.99 13,702,035.99 13,702,035.99 3.534 3.486 3.534 1 Subtotal and Average 23,368,702.66 13,702,035.99 13,702,035.99 13,702,035.99 3.486 3.534 1 Cash in Banks
LAIF ARPA LAIF ARPA Local Agency Investment Fund 47,589,190.42 47,589,190.42 47,589,190.42 3.353 3.307 3.353 1 Portfolio COSA
CP
Run Date: 10/20/2023 - 10:48 PM (PRF_PM2) 7.3.11
Report Ver. 7.3.11
City Council 8 – 5 11/21/2023
YTM/C
365

Page 2 ends

Par Value Book Value
Maturity
Date
Stated
Market Value Rate
September 30, 2023
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Santa Ana
Days to
Maturity
YTM/C
CUSIP Investment # 360
Purchase
Date
Subtotal and Average 86,509,164.62 47,589,190.42 47,589,190.42 47,589,190.42 3.307 3.353 1 Federal Agency Coupon Securities
3133EJ5W5 13868 Federal Farm Credit Bank 01/29/2019 925,000.00 923,492.25 924,195.25 2.650 2.634 2.670 22 10/23/2023 3133EKBW5 13876 Federal Farm Credit Bank 03/04/2019 3,000,000.00 2,965,620.00 2,998,740.00 2.610 2.583 2.619 149 02/27/2024 3133EK3M6 13934 Federal Farm Credit Bank 10/23/2019 5,000,000.00 4,989,100.00 5,003,650.00 1.625 1.584 1.606 22 10/23/2023 3133ELX33 13974 Federal Farm Credit Bank 07/22/2020 6,000,000.00 5,524,380.00 6,000,000.00 0.690 0.681 0.690 660 07/22/2025 3133EMBH4 13988 Federal Farm Credit Bank 09/29/2020 5,000,000.00 4,558,150.00 5,000,000.00 0.530 0.523 0.530 729 09/29/2025 3133EMFR8 13991 Federal Farm Credit Bank 11/03/2020 5,000,000.00 4,533,550.00 4,997,500.00 0.540 0.543 0.550 764 11/03/2025 3133EMSU7 14005 Federal Farm Credit Bank 03/09/2021 4,000,000.00 3,598,440.00 4,000,000.00 0.800 0.789 0.800 890 03/09/2026 3133EMUP5 14006 Federal Farm Credit Bank 04/01/2021 6,000,000.00 5,592,180.00 6,000,000.00 0.710 0.692 0.701 548 04/01/2025 3133EMWH1 14016 Federal Farm Credit Bank 04/21/2021 5,000,000.00 4,657,600.00 5,000,000.00 0.710 0.700 0.710 568 04/21/2025 3133EM2C5 14032 Federal Farm Credit Bank 08/10/2021 6,000,000.00 5,301,780.00 6,000,000.00 0.710 0.700 0.710 1,044 08/10/2026 3133ENPB0 14075 Federal Farm Credit Bank 02/16/2022 3,500,000.00 3,182,375.00 3,500,000.00 2.180 2.150 2.180 138 02/16/2027 3133ENUH1 14086 Federal Farm Credit Bank 04/12/2022 2,000,000.00 1,890,200.00 2,000,000.00 3.330 3.284 3.330 1,289 04/12/2027 3133ENVV9 14088 Federal Farm Credit Bank 05/03/2022 3,000,000.00 2,839,260.00 3,000,000.00 3.630 3.580 3.630 1,310 05/03/2027 3130AFW94 13873 Federal Home Loan Bank 02/27/2019 2,000,000.00 1,977,820.00 1,996,220.00 2.500 2.506 2.541 135 02/13/2024 3130AB3H7 13889 Federal Home Loan Bank 04/29/2019 3,000,000.00 2,959,620.00 2,999,250.00 2.375 2.348 2.380 159 03/08/2024 3130AKPQ3 13996 Federal Home Loan Bank 01/28/2021 4,000,000.00 3,595,000.00 4,000,000.00 0.580 0.572 0.580 27 01/28/2026 3130AKU53 13997 Federal Home Loan Bank 01/28/2021 5,000,000.00 4,487,250.00 5,000,000.00 0.520 0.513 0.520 27 01/28/2026 3130AKN69 13998 Federal Home Loan Bank 01/28/2021 6,000,000.00 5,382,120.00 6,000,000.00 0.500 0.493 0.500 119 01/28/2026 3130ALA53 13999 Federal Home Loan Bank 02/25/2021 5,000,000.00 4,481,800.00 5,000,000.00 0.600 0.592 0.600 55 02/25/2026 3130ALBM5 14001 Federal Home Loan Bank 02/24/2021 5,000,000.00 4,485,050.00 5,000,000.00 0.625 0.616 0.625 54 02/24/2026 3130ALB52 14002 Federal Home Loan Bank 02/25/2021 5,000,000.00 4,655,450.00 5,000,000.00 0.375 0.370 0.375 147 02/25/2025 3130ALDZ4 14003 Federal Home Loan Bank 03/10/2021 4,000,000.00 3,725,800.00 4,000,000.00 0.500 0.493 0.500 70 03/10/2025 3130ALKN3 14004 Federal Home Loan Bank 03/24/2021 4,000,000.00 3,807,240.00 4,000,000.00 0.500 0.493 0.500 84 09/24/2024 3130ALLP7 14007 Federal Home Loan Bank 03/29/2021 6,000,000.00 5,596,260.00 5,997,000.00 0.650 0.658 0.667 77 03/17/2025 3130ALW67 14008 Federal Home Loan Bank 04/22/2021 5,000,000.00 4,514,350.00 5,000,000.00 1.100 1.085 1.100 21 04/22/2026 3130AMYU0 14024 Federal Home Loan Bank 06/30/2021 6,000,000.00 5,375,400.00 6,000,000.00 1.050 1.036 1.050 90 06/30/2026 3130AMYC0 14025 Federal Home Loan Bank 06/30/2021 6,000,000.00 5,413,800.00 6,000,000.00 1.000 0.986 1.000 90 03/30/2026 3130AMSF0 14026 Federal Home Loan Bank 06/28/2021 6,000,000.00 5,774,880.00 6,000,000.00 0.400 0.395 0.400 88 06/28/2024 3130ANFU9 14027 Federal Home Loan Bank 07/29/2021 5,000,000.00 4,442,250.00 5,000,000.00 0.850 0.838 0.850 1,032 07/29/2026 3130ANFG0 14028 Federal Home Loan Bank 08/18/2021 5,000,000.00 4,479,300.00 5,000,000.00 0.875 0.863 0.875 48 05/18/2026 3130ANE30 14029 Federal Home Loan Bank 07/29/2021 5,000,000.00 4,483,000.00 5,000,000.00 0.500 0.493 0.500 28 07/29/2026 3130ANHV5 14033 Federal Home Loan Bank 08/19/2021 5,000,000.00 4,709,750.00 5,000,000.00 0.550 0.542 0.550 445 12/19/2024 3130ANPE4 14034 Federal Home Loan Bank 08/26/2021 6,000,000.00 5,506,860.00 6,000,000.00 0.700 0.690 0.700 330 08/26/2025 3130ANQ78 14035 Federal Home Loan Bank 08/27/2021 6,000,000.00 5,323,020.00 6,000,000.00 0.900 0.888 0.900 1,061 08/27/2026 3130AP3E3 14036 Federal Home Loan Bank 09/30/2021 5,000,000.00 4,446,450.00 5,000,000.00 0.820 0.809 0.820 1,095 09/30/2026 Portfolio COSA
CP
Run Date: 10/20/2023 - 10:48 PM (PRF_PM2) 7.3.11
City Council 8 – 6 11/21/2023
YTM/C
365

Page 3 ends

Par Value Book Value
Maturity
Date
Stated
Market Value Rate
September 30, 2023
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Santa Ana
Days to
Maturity
YTM/C
CUSIP Investment # 360
Purchase
Date
Federal Agency Coupon Securities
3130ANX62 14037 Federal Home Loan Bank 09/30/2021 5,000,000.00 4,611,050.00 5,000,000.00 0.650 0.641 0.650 90 06/30/2025 3130APB79 14038 Federal Home Loan Bank 09/30/2021 5,000,000.00 4,435,100.00 5,000,000.00 1.000 0.986 1.000 1,095 09/30/2026 3130AP3A1 14039 Federal Home Loan Bank 09/29/2021 5,000,000.00 4,454,850.00 4,998,750.00 0.850 0.848 0.860 89 06/29/2026 3130APB46 14040 Federal Home Loan Bank 10/13/2021 10,000,000.00 8,844,500.00 10,000,000.00 0.950 0.937 0.950 12 10/13/2026 3130APQC2 14041 Federal Home Loan Bank 11/23/2021 5,000,000.00 4,847,650.00 5,000,000.00 0.750 0.740 0.750 53 05/23/2024 3130APQB4 14042 Federal Home Loan Bank 11/23/2021 5,000,000.00 4,480,700.00 5,000,000.00 1.500 1.479 1.500 22 11/23/2026 3130APVC6 14058 Federal Home Loan Bank 12/14/2021 5,000,000.00 4,460,900.00 4,997,500.00 1.375 1.382 1.401 61 12/01/2026 3130AQAB9 14059 Federal Home Loan Bank 12/30/2021 3,750,000.00 3,364,800.00 3,750,000.00 1.625 1.603 1.625 90 12/30/2026 3130AQLQ4 14069 Federal Home Loan Bank 01/27/2022 5,000,000.00 4,473,900.00 5,000,000.00 1.650 1.628 1.650 26 01/27/2027 3130AQKM4 14070 Federal Home Loan Bank 01/28/2022 1,500,000.00 1,346,505.00 1,500,000.00 1.750 1.726 1.750 27 01/28/2027 3130AQNR0 14071 Federal Home Loan Bank 01/27/2022 3,000,000.00 2,693,280.00 3,000,000.00 1.750 1.726 1.750 26 01/27/2027 3130AQSA2 14072 Federal Home Loan Bank 02/10/2022 5,000,000.00 4,495,850.00 5,000,000.00 1.830 1.805 1.830 40 02/10/2027 3130AQW33 14073 Federal Home Loan Bank 02/24/2022 5,000,000.00 4,519,500.00 5,000,000.00 2.020 1.992 2.020 54 02/24/2027 3130AQYA5 14074 Federal Home Loan Bank 02/28/2022 1,500,000.00 1,366,155.00 1,500,000.00 2.250 2.219 2.250 54 02/24/2027 3130ARA35 14076 Federal Home Loan Bank 03/24/2022 3,000,000.00 2,852,880.00 3,000,000.00 2.000 1.973 2.000 84 03/24/2025 3130ARC82 14077 Federal Home Loan Bank 03/29/2022 3,000,000.00 2,738,760.00 3,000,000.00 2.100 2.071 2.100 1,275 03/29/2027 3130ARR60 14087 Federal Home Loan Bank 04/29/2022 2,000,000.00 1,929,560.00 2,000,000.00 3.100 3.058 3.100 28 04/29/2025 3130ASLJ6 14090 Federal Home Loan Bank 06/29/2022 20,000,000.00 19,885,400.00 20,000,000.00 3.100 2.028 2.056 89 12/29/2023 3130AVCN0 14092 Federal Home Loan Bank 03/13/2023 2,000,000.00 1,998,460.00 2,000,000.00 5.375 5.301 5.375 164 03/13/2024 3130AVDB5 14093 Federal Home Loan Bank 03/30/2023 2,000,000.00 1,982,160.00 2,000,000.00 6.000 5.918 6.000 179 03/28/2028 3130AWBL3 14102 Federal Home Loan Bank 05/30/2023 10,000,000.00 9,997,900.00 10,000,000.00 5.250 5.250 5.323 29 10/30/2023 3130AVB84 14103 Federal Home Loan Bank 07/28/2023 4,000,000.00 3,990,840.00 3,991,400.00 5.250 5.368 5.443 348 09/13/2024 3134GVQX9 13962 Federal Home Loan Mortgage Co. 05/05/2020 5,000,000.00 4,642,950.00 4,995,000.00 0.700 0.711 0.720 582 05/05/2025 3134GVVX3 13964 Federal Home Loan Mortgage Co. 05/28/2020 5,000,000.00 4,635,550.00 4,998,750.00 0.750 0.747 0.757 58 05/28/2025 3134GVR26 13967 Federal Home Loan Mortgage Co. 06/25/2020 6,000,000.00 5,540,940.00 6,000,000.00 0.700 0.690 0.700 268 06/25/2025 3134GVT99 13968 Federal Home Loan Mortgage Co. 06/30/2020 6,000,000.00 5,545,380.00 6,000,000.00 0.650 0.641 0.650 638 06/30/2025 3134GV5R5 13979 Federal Home Loan Mortgage Co. 07/15/2020 6,000,000.00 5,768,700.00 6,000,000.00 0.570 0.562 0.570 14 07/15/2024 3134GWUE4 13987 Federal Home Loan Mortgage Co. 09/30/2020 5,000,000.00 4,554,900.00 5,000,000.00 0.500 0.493 0.500 90 09/30/2025 3134GW4Z6 13989 Federal Home Loan Mortgage Co. 10/27/2020 6,000,000.00 5,451,420.00 6,000,000.00 0.540 0.533 0.540 26 10/27/2025 3134GXJL9 13995 Federal Home Loan Mortgage Co. 12/30/2020 6,000,000.00 5,400,600.00 6,000,000.00 0.500 0.493 0.500 90 12/30/2025 3134GYZ21 14105 Federal Home Loan Mortgage Co. 08/02/2023 4,000,000.00 3,952,680.00 3,978,000.00 5.000 5.221 5.294 305 08/01/2025 3135G0X24 13940 Federal Nat'l Mtg. Assoc. 01/15/2020 5,000,000.00 4,771,850.00 4,990,750.00 1.625 1.641 1.664 464 01/07/2025 3135G0W66 13941 Federal Nat'l Mtg. Assoc. 01/15/2020 5,000,000.00 4,805,450.00 4,994,000.00 1.625 1.629 1.651 380 10/15/2024 3136G4WV1 13965 Federal Nat'l Mtg. Assoc. 06/16/2020 5,000,000.00 4,625,450.00 5,000,000.00 0.750 0.740 0.750 624 06/16/2025 3136G4D42 13976 Federal Nat'l Mtg. Assoc. 07/28/2020 8,000,000.00 7,336,560.00 8,000,000.00 0.510 0.503 0.510 666 07/28/2025 3136G4C43 13977 Federal Nat'l Mtg. Assoc. 08/14/2020 6,000,000.00 5,508,480.00 6,000,000.00 0.650 0.641 0.650 683 08/14/2025 Portfolio COSA
CP
Run Date: 10/20/2023 - 10:48 PM (PRF_PM2) 7.3.11
City Council 8 – 7 11/21/2023
YTM/C
365

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Page 5 ends

Par Value Book Value
Stated
Market Value Rate
September 30, 2023
Portfolio Details - Cash
Average
Balance Issuer
Portfolio Management
City of Santa Ana
Days to
Maturity
YTM/C
CUSIP Investment # 360
Purchase
Date
Cash in Banks
PETTY CASH PETTY CASH CITY OF SANTA ANA 83,344.00 83,344.00 83,344.00 0.000 0.000 1 HOUSING 13943 JP MORGAN CHASE 4,758,973.68 4,758,973.68 4,758,973.68 0.000 0.000 1 WORKERS COMPENS 37983 JP MORGAN CHASE 2,481,220.09 2,481,220.09 2,481,220.09 0.000 0.000 1 GENERAL LIABILI 38130 JP MORGAN CHASE 2,166,229.69 2,166,229.69 2,166,229.69 0.000 0.000 1 PROPERTY MANAGE 8695 JP MORGAN CHASE 35,084.30 35,084.30 35,084.30 0.000 0.000 1 PROPERTY MGMT 2 PROP MGMT 2 JP MORGAN CHASE 1,492.50 1,492.50 1,492.50 0.000 0.000 1 HEALTHCARE SPEN 0112 JPMorgan Chase 333,336.51 333,336.51 333,336.51 0.000 0.000 1 COMMISSARY 7962 JPMorgan Chase 363,185.04 363,185.04 363,185.04 0.000 0.000 1 GENERAL ACCOUNT 9500 JPMorgan Chase 21,366,917.64 21,366,917.64 21,366,917.64 0.000 0.000 1 FSS FSS Santa Ana Federal Credit Union 756,447.28 756,447.28 756,447.28 0.000 0.000 1

0.00 521,417,323.42 498,008,457.14 1.644 1.667 254
Average Balance 1
Total Cash and Investments 468,548,913.06 497,575,251.28 Portfolio COSA
CP
Run Date: 10/20/2023 - 10:48 PM (PRF_PM2) 7.3.11
City Council 8 – 9 11/21/2023
City Council 8 – 10 11/21/2023
Investments Amount
Bank of New York Mellon - Investment Custodian 403,937,794 Local Agency Investment Fund (L.A.I.F) 13,702,036
Local Agency Investment Fund (L.A.I.F) - ARPA 47,589,190 Total - Investments 465,229,021
Cash Held at City Financial Institution(s) and Cash on Hand Amount General Account 21,366,918
General Liability Account 2,166,230
Housing Account 4,758,974
Workers Compensation Account 2,481,220
Santa Ana Federal Credit Union - Family Self Sufficiency (FSS-Housing 756,447 Commissary Account 363,185
Flexible Benefit Spending Account 333,337
Property Management Account 35,084
Property Management - Phase 2 Account 1,493
Petty Cash 83,344
Total - Cash Held at City Financial Institution(s) and Cash on Hand 32,346,231 Restricted Cash Amount
Signature Bank - Streetlight Project 1,268,870
US Bank - Pension Stability Funds (Section 115 Trust with PARS) 10,543,308 State of California Condemnation Fund - Right of Way Deposits 1,571,525 Various US Bank & BNY 159,261
Total - Restricted Cash 13,542,964
Total Cash Held City at Financial Institution(s), Cash on Hand and Restricted Cash 511,118,216 Cash by Fund(s) - Total (see below for listing) 511,118,216 Fund Fund description Amount
011 GENERAL FUND 111,607,989
012 CANNABIS PUBLIC BENEFIT 23,526,575
016 CASP CERTIFICATION & TRAINING 440,545
020 OTS-TRAFFIC OFFENDER PROGRAM 31,200
021 PRCSA CATV FUND 1,852,257
022 PRCSA FEE & DONATION 985,571
023 INMATE WELFARE FUND 2,183,346
024 PD ATHLETIC ACTIVITIES LEAGUE (170,718)
025 IDB & EZ VOUCHER MONITORING 187,928
026 ASSET FORFEITURE FUND 163,549
027 PARKING FUND 3,787,887
029 SPECIAL GAS TAX 31,551,841
030 PROP 1B BOND ACT OF 2006 155,720
031 AIR QUALITY IMPR. (AB 2766) 1,353,443
032 MEASURE M-STREET CONSTRUCTION (9,853,267)
033 NEW TRANSPO SYS IMPR AREA B 582,798
034 NEW TRANSPO SYS IMPR AREA E 1,740,865
035 NEW TRANSPO SYS IMPR AREA F 2,119,128
041 TRANSP SYS IMPR AREA A-2 708,748
042 TRANSPO SYS IMPR AREA B 9,704
048 TRANSPO SYS IMPR AREA C-2 216,754
049 TRANSPO SYS IMPR AREA G 99,906
051 CAPITAL OUTLAY FUND 3,331,619
053 CITY SERVICES 8,212,981
054 SANITARY SEWER CAPITAL 9,243,543
055 SEWER CONNECTION FEE 4,906,074
056 SANITARY SEWER SERVICE 8,807,162
057 FED CLEAN WATER PROTECTION ENT 8,350,422
058 RESIDENTIAL STREET IMPROVEMENT 6,238,487
059 SELECT STREET CONSTRUCTION 21,971,265
060 WATER REVENUE 12,259,196
066 ACQUISITION & CONSTRUCTION 4,751,620
067 REGIONAL TRANSP CENTER 479,757
068 SANITATION FUND 4,709,207
069 REFUSE COLLECTION SERVICE 5,928,435
070 EQUIPMENT REPLACEMENT FUND 7,925,243
073 BUILDING MAINT FUND 1,796,943
074 CIVIC CENTER MAINTENANCE (512,184)
075 FLEET MAINTENANCE/STORES 1,190,738
076 STORES & PROPERTY CONTROL (411,486)
078 RETIREMENT SYSTEM (5,039,391)
080 LIABILITY AND PROPERTY INS FND 8,559,710
081 EMPLOYEE GROUP INSURANCE 1,687,021
082 WORKERS COMPENSATION FUND 18,629,772
083 PAYROLL REVOLVING 9,727,237
085 CITY YARD OPERATION (544,614)
086 PUB WKS ENG/PROJ MGMT (1,850,768)
087 PT RETIREMENT FUND 10,179
088 QUALITY SERVICE TRAINING 31,038
089 CA SEISMIC HAZARD PROGRAM 30,828
090 ORANGE CO SANITATION DIST 2&3 557,169
093 BUSINESS IMPROVEMENT DISTRICT 57,276
095 POLICE COMMISSARY ACCOUNT 318,082
096 SA TOURISM MARKETING DISTRICT 135,689
097 POLICE SEIZED ASSETS 2,300,384
100 SECTION 457 FIDUCIARY ADMIN 96,404
101 PUB WKS-ADMIN & PLANNING 3,208,817
EXHIBIT 2
City Council 8 – 11 11/21/2023
103 PMA RETIREE HEALTH INSURANCE 8,291
104 SEIU RETIREE HEALTH INSURANCE 53,285
106 MGMT RETIREE HEALTH INSURANCE 59,496
107 UC RETIREE HEALTH INSURANCE (3,443)
109 INFO SYS STRATEGIC PLAN 13,347,795
110 STRONG MOTION INSTRUMENTATION 107,208
111 OPIOID REMEDIATION 610,015
120 FIRE FACILITIES FUND 2,353,147
121 SPECIAL REPAIR/DEMOLITION 709,542
122 EMERGENCY & HEALTH GRANTS 13,426,142
123 WORKFORCE INVESTMENT ACT (1,271,348)
124 ORANGE COUNTY SSA GRANTS (175,589)
125 OES UASI (748,190)
127 D.O.J. GRANT FUND 39,051
128 POLICE BLOCK GRANTS 1,989,031
130 HOME PROGRAM FEDERAL GRANT 2,210,891
131 MISC GRANTS 1,248
133 HOUSING AUTHORITY-ISSUER FEE 2,600,023
135 COMMUNITY DEV BLOCK GRANT (1,551,468)
136 HOUSING AUTHORITY-VOUCHER HAP 777,484
138 HOUSING AUTHORITY-MS 5 (41,034)
139 HOUSING AUTHORITY-NEW CONSTR 361,889
140 HOUSING AUTHORITY-VOUCHER ADM 3,017,238
142 NSP FEDERAL GRANT 238,822
143 CALHOME MFGD HSG LOAN 764,812
145 RENTAL REHABILITATION GRANT 48,926
147 FEDERAL AID SAFETY PROGRAM (1,218,567)
148 TRAFFIC SYSTEM MGMT GRANT (2,470,900)
149 WIC ASSESSMENT DIST ST IMPRV 33,253
152 PUBLIC LIBRARY GRANT FUND 4,679,705
158 PLANNING GRANTS PROGRAM (108,260)
161 PRCSA CAPITAL GRANTS (902,991)
162 ENERGY CONSERVATION PROGRAM (59,446)
164 PUB WKS-WTR QUALITY & CONTROL (5,727,863)
165 OFFICE OF SAFETY GRANT 7,224
166 US DOJ ASSET FORFEITURE FUND 1,584,565
167 US TREASURY ASSET FORFEITURE 208,308
169 RECREATION GRANTS FUND 681,024
172 NATL RECREATION TRAILS FND ACT 17,329
177 EMERGENCY RENTAL ASSISTANCE PG 3,094,965
178 COVID RELIEF FUND (590,191)
179 GENERAL FIXED ASSETS (18,516)
180 ARPA EHV ADMIN FEES 128,909
181 AMERICAN RESCUE PLAN ACT 94,113,737
182 HOME-ARP PROGRAM FEDERAL GRANT (803)
183 ARPA - CA FOR ALL YOUTH WDP (1,131,651)
186 HCV F S S FORFEITURES 153,865
201 LOCAL DRAINAGE AREA NO 1 135
202 LOCAL DRAINAGE AREA NO 2 1,452
203 LOCAL DRAINAGE AREA NO 3 767,014
204 LOCAL DRAINAGE AREA NO 4 1,072
205 LOCAL DRAINAGE AREA NO 5 609
206 LOCAL DRAINAGE AREA NO 6 894
207 LOCAL DRAINAGE AREA NO 7 197,254
209 LOCAL DRAINAGE AREA NO 9 744
210 LOCAL DRAINAGE AREA NO 10 17,442
211 LOCAL DRAINAGE AREA NO 11 226
212 LOCAL DRAINAGE AREA NO 12 13
213 LOCAL DRAINAGE AREA NO 13 2,740
221 LOCAL DRAINAGE AREA I 1,102,734
222 LOCAL DRAINAGE AREA II 286,346
223 LOCAL DRAINAGE AREA III 427,592
224 LOCAL DRAINAGE AREA IV 582,786
225 LOCAL DRAINAGE AREA V 286,903
226 LOCAL DRAINAGE AREA VI 388,701
301 REC/COMM SVS 6,138
311 RESIDENTIAL DEVELOP DISTRICT 1 1,069,200
312 RESIDENTIAL DEVELOP DISTRICT 2 4,352,531
313 RESIDENTIAL DEVELOP DISTRICT 3 13,182,868
314 RESIDENTIAL DEVELOP DISTRICT 4 465,450
315 RESIDENTIAL DEVELOP HARBOR SPECFIC 1,433,250
400 POLICE UUT LEASE REVENUE BONDS 1,176,914
404 COSA 2014 LEASE FINANCING 1,358,909
406 2021 PENSION OBLIGATION BONDS 25,316
417 INCLUSIONARY HOUSING FEE 8,954,418
418 CDA - PEEBLER CAPITAL FUND 530,063
607 HOUSING AUTHORITY LMIHF 3,786,365
655 2018A SERIES TAX ALLOC BOND 16,024
670 COSA RDA 558,562
671 COSA RDA OBLIGATION RETIREMENT 337,365
991 TRAN SYS IMP AUT C-2 TUSTIN 2,640,701
992 TRAN SYS IMP AUT AREA D-TUSTIN 11,133,785
993 WIC ASSESSMENT DISTRICT 337,068
999 Lawson Clearing 26,086
Reconciling Item(s) - Outstanding Checks * 3,747,771
Reconciling Item(s) - Bank Direct Deposits* 781,908
Reconciling Item(s) - Deposits in Transit* (431,375.55) Reconciling Item(s) - Withdrawals in Transit* -
Reconciling Item(s) - Various* (218,348)
Reconciling Item(s) - Various: A difference between Cash held by Financial Institution, Fiscal Agent and Cash on Hand exists when comparing to Cash by Fund due, to reconciling items such as timing of payments; outstanding checks; and deposits in transit City Council 8 – 12 11/21/2023
Finance and Management Services
www.santa-ana.org/finance
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 21, 2023
TOPIC: Quarterly Report of Contracts Awarded by the City Manager

AGENDA TITLE
Receive and File Quarterly Report of Contracts up to $50,000 for Non-Public Works and up to $500,000 for Public Works Authorized by the City Manager as Permitted by Charter Section 421

RECOMMENDED ACTION
Receive and file Quarterly Report of Contracts entered into between July 1, 2023 to September 30, 2023.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
Section 421 of the Charter requires the City Manager to submit a Quarterly Report (Report) to the City Council disclosing all contracts approved and executed under their authority for informational purposes. The Report is required to include the names of the contractors and the amounts of each contract along with a brief description.

Section 2-748 provides the City Manager contracting authority to enter into non-public works contracts and agreements up to $50,000 and public works contracts and agreements up to $500,000.

Exhibit 1 is a listing of all purchase orders and agreements entered into during the period July 1, 2023 to September 30, 2023, valued at amounts between $500 and $50,000 for non-public works expenditures, and up to $500,000 for public works contracts and agreements. The list of City Manager-authorized contracts will be published on the City’s website in a searchable format.

City Council 9 – 1 11/21/2023
Quarterly Report of Contracts Awarded by the City Manager November 21, 2023

Page 2 ends

Santa Ana City CouncilNovember 21, 2023

Santa Ana City Council
November 21, 2023