Agenda packet — Santa Ana City Council, June 16, 2026 (part 4 of 4)

POLICY NUMBER: 2023-6888
EXHIBIT 3

City Council
15 –
383
6/16/2026

COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – COMPLETED OPERATIONS
CG 20 37 12 19Taller San Jose Hope Builders dba: Hope buildersNamed Insured:

The additional insured status will not be afforded
with respect to liability arising out of or related to
your activities as a real estate manager for that
person or organization.

All insured premises and operations.

Location And Description Of Completed Operations
Name Of Additional Insured Person(s)
Or Organization(s)

SCHEDULE

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
This endorsement modifies insurance provided under the following:

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury" or
"property damage" caused, in whole or in part, by
"your work" at the location designated and
described in the Schedule of this endorsement
performed for that additional insured and
included in the "products-completed operations
hazard".

However:

1. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
B.A. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:

If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:

2. If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured will
not be broader than that which you are required
by the contract or agreement to provide for such
additional insured.

1. Required by the contract or agreement; or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.
© Insurance Services Office, Inc., 2012

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POLICY NUMBER: 2023-6888
EXHIBIT 3

City Council
15 –
384
6/16/2026

COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – SCHEDULED PERSON OR

ORGANIZATION
CG 20 10 12 19Taller San Jose Hope Builders dba: Hope buildersNamed Insured:

Any person or organization that you are required to
add as an additional insured on this policy, under a
written contract or agreement currently in effect, or
becoming effective during the term of this policy. The
additional insured status will not be afforded with
respect to liability arising out of or related to your
activities as a real estate manager for that person or
organization.

All insured premises and operations.

Location(s) Of Covered Operations
Name Of Additional Insured Person(s)
Or Organization(s)

SCHEDULE

COMMERCIAL GENERAL LIABILITY COVERAGE PART
This endorsement modifies insurance provided under the following:

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

1. Your acts or omissions; or

2. The acts or omissions of those acting on your
behalf;
in the performance of your ongoing operations for
the additional insured(s) at the location(s)
designated above.

However:

1. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
A.

B. With respect to the insurance afforded to these
additional insureds, the following additional
exclusions apply:

This insurance does not apply to "bodily injury" or
"property damage" occurring after:

1. All work, including materials, parts or
equipment furnished in connection with such
work, on the project (other than service,
maintenance or repairs) to be performed by
or on behalf of the additional insured(s) at the
location of the covered operations has been
completed; or

2. If coverage provided to the additional insured
is required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.
© Insurance Services Office, Inc., 2012

Page 1 of 2 ends

POLICY NUMBER: 2023-6888
EXHIBIT 3

City Council
15 –
385
6/16/2026

2. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or organization
other than another contractor or subcontractor
engaged in performing operations for a
principal as a part of the same project.

C. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:

If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:

1. Required by the contract or agreement; or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.
© Insurance Services Office, Inc., 2012

Page 2 of 2 ends

EXHIBIT 3

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6/16/2026

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED

PRIMARY AND NON-CONTRIBUTORY

ENDORSEMENT FOR PUBLIC ENTITIES
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Name of Person or Organization:

C. With respect to the insurance provided to the additional insured(s), Condition 4. Other Insurance of SECTION IV – COMMERCIAL GENERAL LIABILITY CONDITIONS is replaced by the following:

Section II – WHO IS AN INSURED is amended to include:

4. Any public entity as an additional insured, and the officers, officials, employees, agents and/or volunteers of that public entity, as applicable, who may be named in the Schedule above, when you have agreed in a written contract or written agreement presently in effect or becoming effective during the term of this policy, that such public entity and/or its officers, officials, employees, agents and/or volunteers be added as an additional insured(s) on your policy, but only with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused, in whole or in part, by:
a. Your negligent acts or omissions; or
b. The negligent acts or omissions of those acting on your behalf; in the performance of your ongoing operations.

No such public entity or individual is an additional insured for liability arising out of the sole negligence by that public entity or its designated individuals. The additional insured status will not be afforded with respect to liability arising out of or related to your activities as a real estate manager for that person or organization.

B. Section III – LIMITS OF INSURANCE is amended to include:

8. The limits of insurance applicable to the public entity and applicable individuals identified as an additional insured(s) pursuant to Provision A.4. above, are those specified in the written contract between you and that public entity, or the limits available under this policy, whichever are less. These limits are part of and not in addition to the limits of insurance under this policy.

4. Other Insurance
a. Primary Insurance
This insurance is primary if you have agreed in a written contract or written agreement:
(1) That this insurance be primary. If other insurance is also primary, we will share with all that other insurance as described in c. below; or

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POLICY NUMBER: 2023-6888
EXHIBIT 3

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6/16/2026

(e)
(1) When this insurance is excess, we will have no duty under Coverages A or B to defend the additional insured(s) against any "suit" if any other insurer has a duty to defend the additional insured(s) against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the additional insured(s)’ rights against all those other insurers. (2) When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:
(3) We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. (a) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and
(b) The total of all deductible and self-insured amounts under all that other insurance. c. Methods of Sharing
If all of the other insurance available to the additional insured(s) permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first.

If any other the other insurance available to the additional insured(s) does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer’s share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers.

Any other insurance available to an additional insured(s) under this Endorsement covering liability for damages which are subject to this endorsement and for which the additional insured(s) has been added as an additional insured by that other insurance.

Page 2 of 2 ends

POLICY NUMBER: 2023-6888
(2) The coverage afforded by this insurance is primary and non-contributory with the additional insured(s)’ own insurance.

Paragraphs (1) and (2) do not apply to other insurance to which the additional insured(s) has been added as an additional insured or to other insurance described in paragraph b. below. b. Excess Insurance
This insurance is excess over:

1. Any of the other insurance, whether primary, excess, contingent or on any other basis:
(a) That is Fire, Extended Coverage, Builder’s Risk, Installation Risk or similar coverage for "your work";
(b) That is fire, lightning, or explosion insurance for premises rented to you or temporarily occupied by you with permission of the owner;
(c) That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises temporarily occupied by you with permission of the owner; or (d) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of SECTION I – COVERAGE A – BODILY INJURY AND PROPERTY DAMAGE.

EXHIBIT 3

City Council
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6/16/2026

Taller San Jose Hope Builders dba: Hope buildersNAMED INSURED:

FORM: NIAC-E26 11 17
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS (WAIVER OF SUBROGATION)

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SOCIAL SERVICE PROFESSIONAL LIABILITY COVERAGE FORM
This endorsement modifies insurance provided under the following:

Name of Person or Organization:

SCHEDULE
Where you are so required in a written contract or agreement currently in effect or becoming effective during the term of this policy, we waive any right of recovery we may have against that person or organization, who may be named in the schedule above, because of payments we make for injury or damage.

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POLICY NUMBER: 2023-6888
EXHIBIT 3

City Council
15 –
389
6/16/2026

Community Development Agency
www.santa-ana.org/cd
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 16, 2026
TOPIC: State of California Volunteers Youth Service Corps award for The Santa Ana Youth Employment program

AGENDA TITLE
Resolution and Appropriation Adjustment to Accept the State of California Volunteers Youth Service Corps Award Agreement JP2017-Y2526 (Non-General Fund)

RECOMMENDED ACTION

1. Adopt a resolution to accept the State of California Volunteers grant award, and authorize the City Manager to enter into State of California – Department of General Services, Standard Agreement No. JP2017-Y2526 (Grant Agreement) for $1,500,000 for the Santa Ana Youth Employment Program.

RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA ANA APPROVING THE ACCEPTANCE OF GRANT FUNDS FOR CALIFORNIA VOLUNTEERS 2025-2026 YOUTH SERVICE

CORPS COMPETITIVE PROGRAM THROUGH THE STATE OF CALIFORNIA

FOR THE CITY OF SANTA ANA YOUTH EMPLOYMENT PROGRAM

2. Authorize the City Manager, or designee, to conduct all negotiations, sign, and submit all documents, including, but not limited to, applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Project scope, including, but not limited to, agreements with contractors, consultants, and vendors detailed in Exhibit B, Budget Detail of the Grant Agreement.

3. Approve an appropriation adjustment to recognize $1,500,000 in funds from California Volunteers State General Funds-State Grant-Direct account (no. 18318002-52025) and appropriating the same amount to expenditure account (no. 18318763-various). (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
The State of California’s Governor’s Office of Service and Community Engagement / California Volunteers has awarded the City $1,500,000 through a competitive

City Council
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1 6/16/2026

Adopt a Resolution to accept the State California Volunteers Award June 16, 2026

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application process to implement a Youth Service Corps - Santa Ana Youth Employment Program.

On December 19, 2025, staff responded to a competitive request for application (RFA) with the California Volunteers office for their 2025-2026 Youth Service Corps. On February 6, 2026, staff received notification of the award and has been working with the State to prepare the necessary documents to receive the award.

This award represents the City’s third award from California Volunteers. The City has successfully administered two previous Youth Service Corps grants. In June 2022, the City received $4,497,514 to support a youth workforce development program that provided 400 youth participants with an average of 350 hours of paid work experience over a two-year period at various City departments and local nonprofit organizations. In June 2024, the City received an additional $2,000,000 and served more than 300 youth participants, who collectively completed 77,394 hours of paid work experience at a rate of $20 per hour.

This proposed round of funding will support approximately 100 youth participants between the ages of 16 and 30. Participants will be compensated at a rate of $20 per hour and complete between 300 and 900 hours of work experience, depending on their assigned worksite and career pathway. In addition to the work experience component, participants will receive workshops and training to meet the goals for the program which include: (1) preparing youth for educational and career success, (2) expanding public service workforce pipelines, (3) strengthening community well-being by addressing food insecurity, and (4) enhancing quality of life through increased economic opportunity.

The Santa Ana WORK Center will serve as the lead and primary service provider for the program, administering all core program functions including program compliance, tracking, reporting, recruitment, eligibility determination, orientation, worksite development and placement, payroll, participant supervision, case management, career counseling, supportive services (public transportation, gas cards, clothing, and assistance in locating child care), linkages with alternative secondary education and adult continuing education, and other appropriate referrals. In addition, the Santa Ana Public Library will provide digital literacy and online research workshops, while Working Wardrobes will deliver career-readiness training, including resume development, interview preparation, workplace professionalism, and professional attire assistance.

Adoption of the Resolution will allow the City to execute the agreement with the State’s California Volunteers office and obligate the funds for the grant period ending December 31, 2027 (Exhibit 1).

FISCAL IMPACT
Approval of the appropriation adjustment will recognize $1,500,000 in funds from California Volunteers State General Funds-State Grant-Direct account (no. 18318002- 52025) and appropriate the same amount to expenditure account (no. 18318763-

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Adopt a Resolution to accept the State California Volunteers Award June 16, 2026

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various). Grant includes 10% Administrative Costs, at least 50% for Youth Fellow Wages, and remaining to Program Expenses.

Funds will be assigned, budgeted, and available for expenditure in FY 2025-26. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2026-27.

Fiscal Year Accounting
Unit-Account Fund Description Accounting Unit,
Account Description Amount
FY 2025-26 18318763-
61xxx
CA for All Youth
Workforce
Development Program
CA for All Youth
Workforce
Development Program,
Salaries & Benefits
(Staff)
$442,550
FY 2025-26 18318763-
61xxx
CA for All Youth
Workforce
Development Program
CA for All Youth
Workforce
Development Program,
Salaries & Benefits
(Participants)
$809,400
FY 2025-26 18318763-
62xxx
CA for All Youth
Workforce
Development Program
CA for All Youth
Workforce
Development Program,
Contractual Services
$41,110
FY 2025-26 18318763-
63xxx
CA for All Youth
Workforce
Development Program
CA for All Youth
Workforce
Development Program,
Commodities
$3,100
FY 2025-26 18318763-
65xxx
CA for All Youth
Workforce
Development Program
CA for All Youth
Workforce
Development Program,
Fixed Charges
$111,900
FY 2025-26 18318763-
69xxx
CA for All Youth
Workforce
Development Program
CA for All Youth
Workforce
Development Program,
Miscellaneous
$91,940
Total $1,500,000

EXHIBIT(S)

1. Resolution
Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nuñez, City Manager

City Council
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3 6/16/2026

Resolution No. 2026-XXX

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Resolution No: 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA APPROVING THE ACCEPTANCE OF GRANT
FUNDS FOR CALIFORNIA VOLUNTEERS 202 5-2026

YOUTH SERVICE CORPS COMPETITIVE PROGRAM

THROUGH THE STATE OF CALIFORNIA FOR THE CITY

OF SANTA ANA YOUTH EMPLOYMENT PROGRAM

WHEREAS, the California Volunteers has been delegated the responsibility by the Legislature of the State of California (“State”) for the administration of a grant 2025-2026 Youth Service Corps Competitive Program (“Grant”) to the City of Santa Ana (“City”), for the City of Santa Ana Youth Employment Program (“Project”), setting up necessary procedures governing Grant distribution; and

WHEREAS, the City will enter into a contract with the State of California (“Exhibit A”) to accept the Grant funds and to implement the programs detailed in the Project, which was submitted to and accepted by the State via Request for Applications, Solicitation Number CV25-YSC04.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The City Council of the City of Santa Ana hereby:

A. Approves the acceptance of grant funds of up to a maximum amount of Two Million Dollars ($1,500,000) for the Grant Project; and

B. Certifies that the City has or will have available, prior to commencement of Project work utilizing specified Grant funds, sufficient funds, including those provided by this Grant, to complete the Project; and

C. Certifies that the City has or will pro vide sufficient funds to operate and maintain the Project subject to reimbursement by the State through the Grant funds; and

D. Certifies that the City has reviewed, understands, and agrees to the provisions contained in the State of California – Department of General Services, Standard Agreement with Governor’s Office of Service and Community Engagement / California Volunteers, Agreement No. JP 2017- Y2526 (“Grant Agreement”); and

E. Delegates the authority to the City Manager , or designee to conduct all negotiations, sign and submit all documents, including, but no t limited to applications, agreements (including but not limited to the Grant Agreement, attached hereto as Exhibit A), amendments, and payment requests, which may be necessary for the completion of the Project scope(s), including but EXHIBIT 1

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Resolution No. 2026-XXX

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not limited to agreem ents with contractors, consultants and vendors detailed in the Grant Agreement; and

F. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

Section 2. This Resolution shall take effect immediatel y upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution.

Adopted this _____day of ______________, 20_______.

________________________________
Valerie Amezcua
Mayor

APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney

By:

Andrea N. Garcia
Senior Assistant City Attorney

AYES: Councilmembers

NOES: Councilmembers

ABSTAIN: Councilmembers

NOT PRESENT: Councilmembers _

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Jennifer Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2026-XXX to be the original Resolution adopted by the City Council of the City of Santa Ana on June ___, 2026.

Date: _________________ _____________________
City Clerk
City of Santa Ana

EXHIBIT 1

City Council
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Alvaro Nuñez
City Manager
APPROVED AS TO FORM:

SONIA R. CARVALHO
City Attorney
By:_______________________
Andrea N. Garcia
Senior Assistant City Attorney
See signature page
EXHIBIT 1

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.

ATTEST: CITY OF SANTA ANA
___________________________ ______________________________ JENNIFER L. HALL ALVARO NUÑEZ
City Clerk City Manager
RECOMMENDED FOR APPROVAL:
_______________________________
MICHAEL L. GARCIA
Executive Director
Community Development Agency
EXHIBIT 1

City Council
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7 6/16/2026

EXHIBIT 1

City Council
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8 6/16/2026

City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04
1 Point of
Contact:

Sandy Barba, Workforce Specialist IV
City of Santa Ana Community Development Agency
[email protected]
(714) 565-2611
Section 1: Program Goal
The City of Santa Ana seeks to expand youth employment opportunities and strengthen long-term career pathways for local youth by participating in the California Volunteers Youth Service Corps. Through this program, the City of Santa Ana will provide increased youth access to meaningful paid work experience, build a pipeline into public sector and community-serving careers, and enhance municipal capacity to address critical local needs in public service, education, and food insecurity.

Santa Ana faces ongoing barriers that hinder young people from entering the workforce, such as limited entry-level opportunities, lack of work experience, and economic and social challenges that mostly impact low-income and historically underrepresented youth. This program aims to reduce these obstacles by providing structured work experience combined with mentoring, career exploration, and comprehensive support.
preparing youth for educational and career success, (2) expanding public service workforce pipelines, (3) strengthening community well-being by addressing food insecurity, and (4) enhancing quality of life through increased economic opportunity.

The program also reinforces the City
partnership with the community by cultivating a skilled, diverse, and service-oriented local workforce.

With the support of this grant, the City will offer youth hands-on work experience across municipal departments and nonprofit agencies, complemented by skill-building workshops and individualized career guidance. These opportunities will increase youth employment readiness, expand interest in public service career pathways, and erational needs in high-
create a sustainable model that both improves youth outcomes and strengthens municipal capacity to serve residents.

Section 2: Program Design
The City of Santa Ana will implement the program in-house through the Santa Ana WORK Center, which has decades of experience operating high-quality youth workforce programs with seamless access to services for youth, connecting them with relevant programs and partners within the Youth Service Providers Network (YSPN).

The WORK Center Serves as the central navigator for these partnerships, ensuring alignment with grant objectives and best practices in youth workforce development.

The City has demonstrated capacity in administering and implementing two prior Exhibit A - Scope of Work
City of Santa Ana
JP2017-Y2526
EXHIBIT 1

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9 6/16/2026

City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

2 rounds of California Volunteers-funded Santa Ana Youth (SAY) Employment Program.

The program will serve a total of 101 youth through a structured, cohort-based workforce model that balances intensive, long-term engagement with broader exposure to career pathways within City departments. Beginning in April 2026, one 12-month cohort of 12 youth will participate in sustained paid work experience, working 20 hours per week at $20 per hour to support deeper skill development and long-term career exploration. To expand access and maximize impact, the program will also engage an additional 89 youth through four-month cohorts starting in May 2026 and continuing throughout the program year. This approach allows the City to reach a significantly larger number of participants while maintaining consistent supervision, quality programming, and meaningful workforce exposure.

City staff will be responsible for participant placement, case management, payroll oversight, and the provision of supportive services, including public transportation assistance, gas cards, work clothing, and support in locating child care. Staff will also facilitate linkages to alternative and career technical education, secondary education, and long-term employment opportunities to support career pathway development.

insecurity, and education, which guide the structure of paid work experience placements and workshops across all cohorts. Public service will be the primary focus, representing approximately 50 percent of available worksites, with additional placements supporting food insecurity and education initiatives. Detailed worksite positions and focus areas are provided in Attachment A, which outlines more than 110 paid work experience positions developed across City departments and nonprofit agencies.

The program will rely on a combination of internal City departments and carefully selected external partners who will enhance service delivery. The Santa Ana Public Library (SAPL), a City agency, will deliver workshops in digital literacy and the use of online research resources available through the Library. Their involvement supports both education and public service focus areas while introducing youth to internal City -based partner,
will provide career-readiness workshops drawing on its 34 years of expertise in workforce development. Their services include interview preparation, resume building, harassment prevention, workplace professionalism, and access to professional attire through their career center. Personal shoppers assist each youth in selecting appropriate career attire, including professional clothing, shoes, and accessories. Working Wardrobes offers excellent quality clothing and accessories for both men and women. Participants choose
-like setting. This
and respect of each person they serve. The goal is for all participants to look and feel successful, so they have the confidence to succeed in their interviews and careers.

EXHIBIT 1

City Council
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City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

3 Additionally, Chase Bank, a for-profit institution, will contribute in-kind financial literacy workshops that introduce youth to banking basics, budgeting, saving, and strategies for building financial stability. These collaborations strengthen the progra workforce development framework while ensuring all core program functions remain under City oversight. Through these workshops, described in more detail in Attachment B , youth gain foundational skills in communication, professionalism, financial literacy, technology, and academic support that will complement their hands- on work experience. The combination of structured placements, training, and mentoring ensures that youth build both immediate job skills and long-term career readiness.

Work experience placements will be offered at more than 110 sites, including government departments such as Public Works, Parks and Recreation, Planning and Building, Community Development, and SAPL, as well as nonprofit partners focusing on food insecurity and education. Each worksite, position, and description is listed in Attachment A . Positions are designed to promote meaningful skill development, ranging from 300-hour placements to select 900-plus-hour opportunities aligned with career paths like Code Enforcement Associate, Code Enforcement Officer, Teacher Aide, Librarian, and Recreation Leader. The more hours at a worksite enable youth to gain the experience needed for competitive hiring in City roles, including some full- time, permanent positions with the City, educational institutions, or youth-serving agencies.

Each payroll cycle will include a brief evaluation tool completed by the worksite supervisor to reinforce youth accountability and retention. Youth will have the chance to demonstrate progress and potential with each evaluation attached to their time card.

Including a brief evaluation questionnaire with each time card has been effective in motivating youth to perform at their best, providing additional mentoring and guidance when needed, and serving as a retention tool for worksites engaged with our youth. It also offers oversight of youth performance and helps identify those who may benefit from counseling and mentoring to excel on the job and truly develop. Based on positive evaluations and a strong interest in career pathways, youth and worksites will have the opportunity to extend their experience beyond the required 300 hours.

Public Service worksites, providing youth with direct exposure to careers in public service and strengthening the pipeline of future City employees. Participants will be matched to worksites based on their interests, career goals, and availability, and will choose from their top three placement preferences to promote alignment, engagement, and retention.

For select positions, youth will participate in a competitive interview process with worksite supervisors. This process ensures appropriate placement while offering participants hands-on experience in professional interviewing and workplace readiness. Program experience demonstrates that when youth interests are prioritized EXHIBIT 1

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City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

4 and career pathways are clearly aligned, participants achieve higher completion rates and show increased motivation to pursue long-term career opportunities in public service.

By providing meaningful paid work experiences with career exploration opportunities, the City of Santa Ana is addressing immediate community needs while developing a pipeline of skilled professionals. These experiences serve as stepping stones, guiding youth toward sustainable and fulfilling careers within their communities. The strong, interconnected, and service-oriented workforce, ensuring that young people gain practical experience, professional development, and opportunities for civic engagement.

The program is set to launch on April 1, 2026, and will operate throughout the year.

Across all cohorts, the program will serve 101 youth through paid work experience placements, with outcomes tracked by cohort to ensure completion and skill attainment. This cohort approach has proven very effective, as defined start and end dates help youth manage their time more effectively, stay engaged, and complete the program. Youth benefit from starting with peers, taking part in coordinated workshops, paid work experience, skill-building workshops, and personalized support meets both -term workforce ambitions. By
investing in pathways that prepare youth for careers in public service, education, and community roles, the City is nurturing a skilled, connected, and service-minded future workforce.

Section 3: Youth Recruitment/Development

To ensure broad and equitable access to the program, our team conducts ongoing, community-based outreach aligned with the goals of the Youth Corp initiative. We actively participate in outreach events across the region, including career fairs, Girls Inc. youth events, and additional community or city-sponsored events throughout the year. These engagements allow us to connect directly with young people, including those who are underserved or disconnected from traditional workforce pathways.

Through these events, we provide information about employment opportunities, supportive services, and program enrollment. This outreach strategy is a key component of our efforts to reduce barriers, increase program visibility, and ensure that all young people have access to meaningful workforce development opportunities.

Additionally, the City has established networks that will be relied upon to disseminate program information and assist in recruiting youth from the priority eligibility categories. For example, the Youth Services Provider Network through the WORK Center holds monthly meetings that bring together community-serving organizations with a youth focus and that work with foster, homeless, and justice-involved individuals.

EXHIBIT 1

City Council
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City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

5 The City will also use various media resources, including periodic news releases through its Public Information Officer, posting electronic program announcements/flyers on social media, and posting program information on the City

website. Other outreach strategies will include posting physical program announcements/flyers at all Santa Ana library branches, recreation centers, community and family resource centers, high school and college career counseling centers, and other high-traffic public spaces.

Staff have worked hard to establish a presence and the importance of the SAY Employment program since it began in 2022 with our first round of California Volunteer funding. This year alone, we have received over 573 applications and had to close our online application at https://www.santa-ana.org/californianforall-youth-employment- program/ to ensure we could enroll as many as possible within our funding and staffing capacity. With each funding cycle, we have surpassed our enrollment goal. Our current enrollment goal was 120, and we have exceeded it by 234, and have had to leverage local funding to serve more youth and address the community's need for our program.

wraparound services are designed to address the diverse needs of the target population. These supports include a competitive hourly wage, transportation assistance, professional attire, career guidance, work-readiness workshops, housing navigation support, help with accessing needs-based social services, higher education guidance, and onboarding support, such as background checks, TB testing, and required work uniforms when applicable.

While not all participants will require every support, trained and knowledgeable staff will conduct assessments to identify participant needs and ensure each youth has the resources necessary to complete the program successfully. For participants who are actively attending school, work schedules will be designed to accommodate academic commitments and prioritize educational success. This individualized, youth-centered approach has proven essential to participant retention and completion.

Section 4: Metrics/Outcomes

The City of Santa Ana will capture all required Youth Service Corps metrics using established data collection processes through
including the SAY Employment Program. The City maintains an internal database that tracks applications received, eligibility documentation, demographic characteristics, priority population status, worksite assignments, hours worked, and completion status. This database is updated continuously by program staff and serves as the foundational system for generating the monthly metrics required by California Volunteers.

EXHIBIT 1

City Council
16 –
13 6/16/2026

City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

6 All information required by the grant, including the total number of applications submitted, the number of open and filed positions, the number of youth enrolled, number actively serving during the reporting period, program exits, and total service hours, will be tracked through a combination of timesheet verification, supervisors' evaluations submitted each payroll cycle, and case management notes. The City also tracks the distribution of youth across the required focus areas of public service, education, food insecurity, and climate. This is collected at enrollment through worksite selection and validated monthly through worksite timesheets and supervisor check-ins.

Priority population data, including low-income status, justice involvement, foster care history, mental health or substance abuse system involvement, homelessness, and other barriers, is captured at intake through the SAY Employment application, which mirrors the eligibility categories outlined by California Volunteers. This ensures accurate, real-time reporting of priority demographic data required at the state level. into the California
Volunteers reporting platform (America Learns). Surveys will assess youth skills, career readiness, satisfaction, and progress toward career pathway goals.

Additionally, contact information for each participant, including name, phone, email, zip code, worksite placement, and completion status, will be maintained for statewide communications and performance monitoring.

, where supervisors complete a short
evaluation every payroll cycle, further strengthens accountability and provides qualitative insight into youth progress, soft-skill development, and areas needing coaching or support. These evaluations complement the state-required surveys and improve the accuracy of monthly reporting. Furthermore, we obtain success stories from our youth to gain their personal insight on their experience, as seen in Attachment C Success Stories. Through this integrated system of intake documentation, timesheet verification, evaluation tools, surveys, and ongoing case ensure accurate, consistent, and timely submission of all program metrics and outcomes.

Section 5: Budget/Staffing/Communications

The City of Santa Ana is requesting $1,500,000 to serve 101 youth ages 16 to 30 from April 1, 2026, through December 31, 2027. The proposed budget is structured to prioritize participant wages and direct youth services while maintaining fiscally responsible administrative and operational oversight necessary to ensure program quality, accountability, and compliance.

At least 50 percent of the total budget is dedicated to participant wages and wage- related costs to provide youth with meaningful, compensated work experience in high- quality worksites aligned with public service, food insecurity, and education. Youth will EXHIBIT 1

City Council
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14 6/16/2026

City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

7 earn $20 per hour and complete between 300 and 960 hours of paid work experience, depending on cohort structure, performance, and worksite placement. Wage calculations are based on projected participant counts, hours, and pay rates reflected in the program budget. Additional wage-
ith California Volunteers guidelines. When combined with Fellow Wages, approximately 54 percent of the total budget is invested directly in participants.

Administrative costs are capped at no more than 10 percent of the total budget and support essential fiscal oversight, contract compliance, invoicing, internal auditing, and required reporting. Administrative staffing totals approximately 0.21 FTE and includes proportional allocations of finance, accounting, and administrative support staff. These positions ensure accurate payroll reconciliation, timely submission of financial and programmatic reports, and proper stewardship of state and City funds, while maximizing resources dedicated to direct youth services.

Direct operating costs, when combined with administrative costs, remain within the allowable 30 percent cap and support core program operations. These costs include program supplies, materials, technology, and staffing time dedicated to recruitment, outreach, intake and eligibility determination, orientation, job matching, worksite coordination, timecard processing, data entry, and ongoing monitoring of participant progress. Direct program staffing includes approximately 1.00 FTE, consisting of an Economic Development Specialist III (0.05 FTE), a Workforce Specialist IV serving as program lead (0.35 FTE), a Workforce Specialist I supporting program operations (0.50 FTE), and an Account Clerk II (0.10 FTE). Together, these positions ensure consistent oversight of paid work experience placements, accurate wage payments, compliance with California Volunteers requirements, and effective coordination across more than 110 public and nonprofit worksites.

Wrap-around services are strategically budgeted and remain within the 40 percent allowable limit to address barriers to participation and support youth retention and successful completion. These services include transportation assistance, professional clothing, work-related supplies, and referral-based support for child care and social services. Intensive case management and career counseling are delivered through dedicated staffing totaling approximately 2.50 FTE. Workforce Specialists assigned to conduct individualized assessments, coordinate supportive services, provide career guidance, and maintain regular contact with participants, with a particular focus on priority populations such as low-income youth, foster youth, justice-involved youth, and youth experiencing housing instability.

The City has leveraged partnerships to expand services without additional cost to the grant. The Santa Ana Public Library will provide in-kind workshops in AI technology, digital literacy, and online research tools through existing programming, while Chase Bank will offer financial literacy workshops focused on budgeting, savings, and banking fundamentals. In addition, approximately $91,000 is allocated to Working EXHIBIT 1

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16 –
15 6/16/2026

City of Santa Ana Youth Employment Program
Funded by California Volunteers
RFA # CV25-YSC04

8 Wardrobes to deliver professional development and job-readiness workshops and to provide professional attire. Program staff will coordinate scheduling and participation for all partner-led activities to ensure alignment with program goals and participant needs.

All program materials, outreach, communication, and participant-facing materials will comply with California Volunteers branding and messaging requirements, and the City is fully committed to participating in all required trainings and curriculum activities.

Through this budget structure, the City ensures that the majority of funding directly supports youth wages and services while maintaining the staffing and operational capacity necessary to deliver a high-quality, accountable, and impactful youth employment program.

EXHIBIT 1

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Items Description Calculation Total Budget % Allocation Cross Check Case Management
Workforce Specialist I 1 FTE
- salary & benefits (PERS, Medi, SS Alt,
Health, Workers Comp, Insurance)
$(64,297.80+30,524.89) x 100% 94,823.00$
Case Management
Workforce Specialist I 1 FTE
- salary & benefits (PERS, Medi, SS Alt,
Health, Workers Comp, Insurance)
$(63,298.20+30,490.50) x 100% 93,789.00$
Case Management
Workforce Specialist I 0.50 FTE
- salary & benefits (PERS, Medi, SS Alt,
Health, Workers Comp, Insurance)
$(63,298.20+35,216.91) x 50% 49,258.00$
Support Services
Monthly parking, employment tests/scans,
transportation fees
Monthly Parking: $85 x 23 fellows x 3 months
Bus Passes Regular: $69 x 16 fellows
Bus Passes Youth: $40 x 25 fellows
Gas Cards: $50 x 45 fellows
10,358.00$
Partner
Workforce workshops, career exploration
and AI workshops (workshops & clothes)
Professional wardrobes services: $375 x 101 fellows
Workshops: $606.15 x 82 sessions
87,580.00$
Total 335,808.00$ 22.39%
Total Budget Request 1,500,000.00$
Total # of Fellows 101
Partner Status (Proposed or Secured) Contractual Amount Working Wardrobe 87,580.00$
Total 87,580.00$
IV. Program Wrap-Around Services (Not to Exceed 40% of Total Award) List of Partners
LCI - Public
EXHIBIT 1

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City of Santa Ana
Agreement #JP2017-Y2526

EXHIBIT C
Budget Payment Provisions

California Volunteers,
Youth Service Corps
City of Santa Ana

Page 1 of 1 ends

LCI - Public

BUDGET PAYMENT PROVISIONS

1. Invoicing and Payment
a) For services satisfactorily rendered, and upon receipt and approval of the invoices, the State agrees to compensate the Contractor for actual expenditures incurred in accordance with the rates specified herein, which is attached hereto and made a part of this Agreement.

b) Invoices shall include the Agreement Number and shall be submitted via PDF to [email protected].

2. Budget Contingency Clause
a) It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to the Contractor or to furnish any other considerations under this Agreement and the Contractor shall not be obligated to perform any provisions of this Agreement.

b) If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State or offer an agreement amendment to Contractor to reflect the reduced amount.

EXHIBIT 1

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City of Santa Ana
JP2017-Y2526
Exhibit D
California Volunteers - Reporting (Metrics, Deadlines and Process), Invoicing, Service Events and/or Member Convenings, Programmatic and Fiscal Document Retention

LCI - Public
Youth Service Corps Program
All Youth Service Corps Program grantees will be responsible for providing periodic and timely reports on outcomes and outputs associated with the funding received from this program.

Reporting Metrics
Municipalities will be required to report the following metrics and demographic data monthly to California Volunteers through the cloud-based platform America Learns or in any other format or method specified by California Volunteers.
• Number of applications submitted for the program – (aggregated per municipality in monthly report)
• Number of open positions in the program – (aggregated per municipality in monthly report)
• Number participants in the program – (aggregated per municipality in monthly report)
• Number of participants serving in each identified focus area: Climate, Food Insecurity, Education, Public Service, and Other – (aggregated per municipality in monthly report)
• Number of participants actively serving as of the last day of the reporting period - (aggregated per municipality in monthly report) • Number of participants in a summer specific program, if applicable – (aggregated per municipality in monthly report) • Number of participants completing the program and/or exiting early for compelling or non-compelling reasons – (aggregated per municipality in monthly report)
• Total program hours served during the month of reporting – (aggregated per municipality in monthly report)
• Number of participants who identified as low-income – (aggregated per municipality in monthly report)
• Number of participants who identified as justice-involved – (aggregated per municipality in monthly report)
• Number of participants who identified as in or transitioning from foster care – (aggregated per municipality in monthly report)
EXHIBIT 1

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LCI - Public
California Volunteers will update this reporting timeline with additional reporting periods, upon receipt of updated reporting timelines established by the California Department of Finance. Reporting metrics may be updated, depending on updated guidance from the California Department of Finance.

Reporting Process:

Municipalities will be required to report the following metrics and demographic data monthly to California Volunteers through the cloud-based platform America Learns or in any other format or method specified by California Volunteers.

Invoicing:

This grant is a cost-reimbursement grant. As such, grantees will be required to submit periodic and timely invoices to California Volunteers for expenses already incurred for processing and payment. Grantees have the discretion to invoice monthly or quarterly.

Invoicing Deadlines:

Grantees have the discretion to invoice monthly or quarterly. If monthly, invoices should be submitted by the 15
th of the following month. If quarterly, invoices
should be submitted no later than the due date identified in the reporting deadlines above.

Service Events and/or Member Convenings:

Municipalities agree to incorporate California Volunteers’ materials into the onboarding and offboarding process and commit to having participants join at least one California Service Corps convening annually, as requested by California Volunteers.

Programmatic and Fiscal Document Retention
In line with State requirements regarding record retention, grantees are required to maintain all documentation, programmatic and fiscal, pertaining to this contract for a period of five years after the close out the contract and the payment of the final invoice. The grantee is required to maintain books, records, documents, and other evidence pertaining to the reimbursable costs and hold EXHIBIT 1

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LCI - Public
them available for audit and inspection by the State for the five years following the close out of the contract and payment of the final invoice. These retention requirements pertain to all contracts associated with this program, regardless of funding source.

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Finance and Management Services
www.santa-ana.org/finance
Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 16, 2026
TOPIC: Annual Statement of Investment Policy

AGENDA TITLE
Resolution Approving the City’s Annual Statement of Investment Policy 2026-2027; Annual Statement of Investment Policy 2026-2027

RECOMMENDED ACTION

1. Adopt a Resolution approving the City’s 2026-2027 Investment Policy.

RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE CITY’S STATEMENT OF INVESTMENT POLICY 2026-2027

2. Receive and file the Annual Statement of Investment Policy 2026-2027.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
In accordance with State law, the Finance and Management Services Agency submits a resolution annually approving the City’s Investment Policy (Exhibit 1) and the Annual Statement of Investment (Exhibit 2).

The investment policy outlines the following primary goals:
Comply with all Federal, State, and local laws governing the investment of public funds;
Ensure the safety and preservation of principal;
Maintain sufficient liquidity to meet operational cash flow needs; and Achieve a reasonable rate of return within the parameters of the Investment Policy and investment portfolio guidelines.

The Investment Policy covers all City financial assets, except individual employee retirement funds and deferred compensation. These plans are excluded because they are not part of the City’s operating cash or pooled treasury investments. Instead, these assets are held for the benefit of plan participants and are subject to separate fiduciary, legal, and administrative requirements.

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Annual Statement of Investment Policy
June 16, 2026

Page 2 ends

5 8
1 9
Finance staff reviews the City’s policy annually to ensure compliance with applicable laws, industry standards, and best practices. This review evaluates whether new state statutes or regulations should be adopted or whether operational improvements are advisable.

The current policy was reviewed and certified by the California Municipal Treasurers Association (CMTA). CMTA re-certification was granted on May 31, 2022. CMTA recommends that policies be reviewed annually and recertified every three to five years, absent significant legislative changes, shifts in industry standards, or major revisions to the policy. The City is scheduled to undergo its next policy recertification review in 2027, in preparation for the 2027-28 fiscal year. Only minor revisions are proposed for FY2026- 27, including:
Reorganization of the Delegation of Authority provisions in Section 5.2 to improve clarity and eliminate duplicative language without changing policy intent. Streamlining of Section 12.1, Safekeeping and Custody, without modifying any substantive requirements.

All remaining revisions are organizational, grammatical, or formatting improvements that do not materially alter the City’s investment objectives, controls, or reporting requirements.

According to the Local Agency Investment Guidelines published annually by the California Debt and Investment Advisory Commission (CDIAC), there are no federal or regulatory changes affecting the City’s investment practices for FY2026-27.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

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

EXHIBIT(S)

1. Resolution

2. Annual Statement of Investment Policy
Submitted By: Alexander Trinidad, Executive Director, Finance and Management Services
Approved By: Alvaro Nuñez, City Manager

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2 6/16/2026

Resolution No. 2026-XX

Page 1 of 2 ends

RESOLUTION NO. 2026-XX
A RE

SOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA APPROVING THE CITY’S
STATEMENT OF INVESTMENT POLICY 2026-2027
NOW
, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SANTA ANA AS FOLLOWS:

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

A. California Government Code §53646, provides that each city may have a written statement of investment policy to govern investment of the City’s monies.

B. Pursuant to §53646, the City Treasurer shall annually submit a Statement of Investment Policy for City Council consideration.

C. The City
Treasurer has submitted the attached Statement of
Investment Policy to this Council at its regular meeting of June 16 , 2026, for its consideration.

Sec
tion 2. The City Council of the City of Santa Ana has duly considered and approves the City’s Statement of Investment Policy submitted by the City Treasurer.

Sec
tion 3 . The City Treasurer shall submit quarterly reports to the City Council stating all investments made in the preceding quarter and that such investments have been made in conformance with the City’s investment policy.

Sec
tion 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution.

AD
OPTED this _____day of __________, 2026.
______
_______________
Valerie Amezcua
Mayor
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Resolution No. 2026-XX

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APPROVED AS TO FORM:

Sonia Carvalho, City Attorney

By:________________________
Jonathan T. Martinez
Assistant City Attorney

AYES: Councilmembers: __________________________

NOES: Councilmembers: __________________________

ABSTAIN: Councilmembers: __________________________

NOT PRESENT: Councilmembers: __________________________

CERTIFICATION OF ATTESTATION AND ORIGINALITY

I, JENNIFER L. HALL , City Clerk, do hereby attest to and certify the attached Resolution No. ___________ to be the original resolution adopted by the City Council of the City of Santa Ana on ________________, 2026.

Date: ____________________ ________________________________ Jennifer L. Hall, City Clerk
City of Santa Ana

City Council
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4 6/16/2026

City of Santa Ana

EXHIBIT 2
JUNE 16, 2026

INVESTMENT POLICY
STATEMENT 2026-27

City Council
17 –
5 6/16/2026

TABLE OF CONTENTS

Page

Contents
CITY OF SANTA ANA .............................................................................................................................. 1

1.0 POLICY ......................................................................................................................................... 1

2.0 SCOPE ......................................................................................................................................... 1

3.0 PRUDENCE .................................................................................................................................. 2

4.0 OBJECTIVES ................................................................................................................................ 3

5.0 DELGATION OF AUTHORITY ........................................................................................................ 6

6.0 ETHICS AND CONFLICTS OF INTEREST ................................................................................... 7

7.0 AUTHORIZED FINANCIAL INSTITUTIONS AND QUALIFIED BROKER-DEALERS ......................... 8

8.0 AUTHORIZED AND SUITABLE INVESTMENTS ............................................................................. 8

9.0 PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES................................................ 15

10.0 INVESTMENT POOLS/MUTUAL FUNDS .................................................................................... 16

11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS ...................................... 17

12.0 SAFEKEEPING AND CUSTODY .................................................................................................. 17

13.0 DIVERSIFICATION ..................................................................................................................... 18

14.0 INTERNAL CONTROLS .............................................................................................................. 18

15.0 REPORTING ............................................................................................................................... 19

16.0 POLICY CONSIDERATIONS ...................................................................................................... 20

17.0 POLICY REVIEW, CERTIFICATION, AND ADOPTION ................................................................. 21

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June 30, 2027
City of Santa - Annual
Statement of Investment Policy Page 1

CITY OF SANTA ANA

ANNUAL STATEMENT OF INVESTMENT POLICY
JULY 1, 2026 – JUNE 30, 2027

INTRODUCTION: The purpose of this Statement of Investment Policy is to provide specific criteria for the prudent investment of City of Santa Ana (City) funds and to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of idle or unexpended funds for the City. The ultimate investment goal is to enhance the City's economic status while protecting the funds under management and meeting the City's daily cash flow demands.

1.0 POLICY

The policy of the City of Santa Ana is to invest idle or unexpended funds within the scope of this investment policy prudently and suitably, so that it will provide, within the parameters of this investment policy, the highest reasonable investment return relative to the risk being assumed while maintaining maximum security and meeting all cash flow demands. This policy is intended to comply with Federal law and the California Code regarding the investment of public funds. In instances where this policy is more restrictive than Federal or State law, this policy shall control.

This policy is fixed and general in nature; it defines authorized investments and guides the investment decisions and security selection process. The City’s Investment Policy will be regularly reviewed and adjusted to create an investment portfolio suitable for the City under current conditions.

2.0 SCOPE

2.1 Applicability of Investment Policy
This investment policy applies to all funds and investment transactions of the City. These funds are accounted for in the Annual Comprehensive Financial Report (ACFR), which includes the following:
• General Fund
• Special Revenue Funds
• Capital Projects Funds (includes restricted bond proceeds) • Enterprise Funds (includes restricted bond proceeds)
• Trust and Agency Funds
• Internal Service Funds
• Any new fund created by the City of Santa Ana,
unless specifically exempted

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June 30, 2027
City of Santa - Annual
Statement of Investment Policy Page 2

The restricted bond proceeds are invested in compliance with this investment policy and applicable bond resolutions. Individual employee retirement contribution funds and deferred
compensation are excluded from this policy.

2.2 Pooling of Funds
Except for cash in certain restricted and special funds, the City of Santa Ana will consolidate cash balances from all funds to maximize investment earnings and increase efficiency in investment pricing, safekeeping, and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

3.0 PRUDENCE

3.1 Standard of Care – Prudent Investor
The City investment program shall be managed professionally and prudently, worthy of the public trust and review. The standard of prudence to be used by City Investment Officials shall be the "prudent investor rule" standard. It shall be applied in the context of managing the overall investment portfolio.

The “prudent investor rule,” pursuant to California Government Code Section 53600.3, provides that investments shall be made with judgment and care. When investing, reinvesting, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing. Investment officers acting in accordance with written procedures and this investment policy, and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from exceptions are reported in a timely fashion and that the liquidity and the sale of securities are carried out in accordance with the terms of this policy.

The California Government Code governs the City, Sections 16429.1 and Title 5, Division 2, Part 1, Chapter 4, entitled Financial Affairs, commencing with section 53630. Each investment transaction and the entire portfolio must comply with California Government Code, Sections 53600 and 53635 et seq., and this policy.

3.2 Written Investment Procedures
City Investment Officials shall establish written procedures, consistent with this investment policy, for the operation of the investment program. Procedures should include, but not be limited to: authorized personnel, segregation of duties, internal controls, wire transfer

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City of Santa - Annual
Statement of Investment Policy Page 3

agreements, daily cash flow review, basis for awarding bids, portfolio inventory, and reporting. The procedures document is intended to provide guidance for staff and to ensure continuity in the event of an interruption to the services of the Treasury and Customer Services Manager and/or Assistant Finance Director.

4.0 OBJECTIVES

The primary objectives, in priority order, for the City of Santa Ana’s investment activities shall be Safety, Liquidity, and Yield:

4.1 Safety of Principal
Safety of principal is the foremost objective of the City of Santa Ana; care must be taken to ensure the preservation of capital and the protection of principal. Each investment transaction shall be undertaken to ensure the preservation of capital in the overall portfolio. The objective is to mitigate credit and interest rate risk by following the guidelines below.

A. Credit Risk
Credit Risk is the risk of loss arising from the failure of the security's issuer or backer to redeem the
outstanding debt on the stated maturity date. Credit risk also encompasses the overall market perception of the
issuer's financial strength and capacity . The City of
Santa Ana will minimize credit risk by:
i. Limiting investments to authorized investments
as set forth in Section 8 of this investment policy;
ii. Pre-qualifying the financial institutions, broker - dealers, intermediaries, and advisors with which
the City will do business;
iii. Diversifying the inve stment portfolio so that
potential losses on individual securities will be
minimized.
iv. Holding a minimum percentage of the total
portfolio in highly marketable short -term
treasuries, checking with interest, government
pooled account, or a combination of all three.

The minimum percentage shall be set monthly by
the FMSA Investment Advisory Committee based
on a rolling twenty-four-month analysis of the
City’s minimum cash position requirements
adjusted for any exceptional anticipated cash

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City of Santa - Annual
Statement of Investment Policy Page 4

outflows.

B. Market or Interest Rate Risk
Market or interest rate risk is the risk that the market value of securities in the portfolio may fall due to
changes in general interest rates. The City of Santa
Ana will minimize interest market interest rates by:
i. Structuring the investment portfolio so that
securities mature to meet cash requirements
for ongoing operations, thereby avoiding the
need to sell securities on the open market
prior to maturity, and

ii. By investing operating funds primarily in
shorter-term securities, money market mutual
funds, or similar investment pools and limiting
the average maturity of the portfolio to 3 years
using the securities’ stated final maturities.

4.2 Liquidity
The investment portfolio shall remain sufficiently liquid to meet all reasonably anticipated operating requirements . This is accomplished by structuring the portfolio so that securities mature in concert with cash needs , meeting anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). The City’s cash flow shall be updated daily and considered before investing in securities, thereby reducing the need to sell investments for liquidity.

4.3 Yield (Return on Investment)
The City's investment portfolio shall be designed to achieve a market-average rate of return across budgetary and economic cycles, while accounting for investment risk constraints and liquidity needs. Investment return is to be accorded secondary importance compared to the safety and liquidity objectives described above. The core of the investment portfolio will focus on relatively low -risk securities, with the expectation of earning a reasonable return commensurate with the risk assumed. It is the City's general policy to hold investments until their market value equals or exceeds the security's amortized cost or book value. Securities shall not be sold prior to maturity, except as follows:

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City of Santa - Annual
Statement of Investment Policy Page 5

A. a declining credit security could be sold early to
minimize loss of principal;

B. a simultaneous purchase of a security and the sale of another (security swap) to enhance the quality, yield,
or target duration in the portfolio; or

C. a sale of a specific security prior to its maturity and a capital gain or loss recorded to improve the credit
quality, liquidity, or rate of return of the portfolio in response to market conditions and/or City risk
preferences;

D. general liquidity needs of the investment portfolio
require that a security be sold;

E. prepayment of City debt or contribution servicing
obligation. In the event the City is presented with an
option to prepay a City debt or contribution servicing
obligation, the following analysis will be conducted
to compare the amortized savings that may be
realized by exercising such prepayment option and:
i. the current portfolio yield;
ii. the trend of the debt or contribution servicing obligation; iii. whether variances in the trend are substantial;
iv. the City’s net cash position; and
v. the market value of investment instrument(s)
recommended by staff to be liquidated to
fulfill a prepayment election.

When selling a security before maturity, City Investment Officials and/or officers (see generally subsection 5.1 et seq. - Investment Authority and Responsibility) must be prepared to justify the reasons and explain any gains or losses.

Compliance with the investment policy does not measure
return but rather manages risk. Policy compliance does not provide a benchmark to meet or exceed, but serves as a model to follow. The City will benchmark its investment performance against an agreed-upon Treasury index.

The City shall strive to maintain one hundred percent
(100%) of idle funds invested after consideration of a

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City of Santa - Annual
Statement of Investment Policy Page 6

compensating balance to cover the cost of services
provided by the City’s depository bank. Daily cash flow projections determine the funds available for investment .

Investments are monitored to ensure that legal limits on investment types are not exceeded.

5.0 DELGATION OF AUTHORITY

5.1 Investment Authority and Responsibility
The authority to conduct investment transactions rests with the Executive Director of the Finance and Management Services Agency (FMSA), who serves as the chief fiscal officer and City Treasurer.

The Executive Director for (FMSA), under the general direction of the City Council, shall be responsible for all investment transactions undertaken and shall establish a system of controls to regulate the investment activities of subordinate officials.

5.2 Delegation of Authority
The Executive Director for FMSA, or their designee, shall invest all funds for the City in accordance with the City's adopted investment policy. The Executive Director for FMSA hereby delegates day-to-day responsibility for the investment of City funds to the FMSA Financial Analyst. Managerial and supervisory responsibility for the investment of City funds may be held by either the Assistant Director of Finance and Management Services (Assistant Director) or the Treasury and Customer Services Manager (Treasury Manager). Each designee shall act in accordance with the established policies and internal controls set forth in the investment policy.

The Executive Director may engage external investment
management advisors to assist in managing the City’s investment portfolio in a manner consistent with the City’s objectives. Such advisors may be granted discretion to purchase and sell investment securities in accordance with the Policy. Such advisors must be registered with the Securities and Exchange Commission and possess experience in public funds investment management. Such engagement and /or delegation by the Executive Director shall not remove or diminish her/his investment responsibility.

5.3 Assignment of Activities
Supporting and ancillary activities, including but not limited to:
cash flow analysis, municipal or corporate bond credit worthiness evaluation, investment risk assessment, portfolio analysis, purchase and sale recommendation, safekeeping, policy and investment procedures review recommendation, and monthly and

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quarterly reporting, may be assigned to qualified persons within Treasury or within the FMSA Accounting or Administrative Services divisions as deemed appropriate by either the Director and/or Assistant Finance Director.

5.4 Qualified Persons
Qualified Persons shall refer to: (1) persons holding either a California Municipal Treasurers Association, California Treasury Certificate and/or Certified California Municipal Treasurer Certificate; or an Association of Public Treasurers of the United States and Canada, Certified Public Finance Administrator Certificate, or a National Association of State Treasurers Certificate in Public Treasury Management; or (2) persons who are performing investment related duties under the guidance and direction of certificate holders. Working together, Investment Officials and Qualified Persons comprise the FMSA investment staff.

5.5 FMSA Investment Advisory Committee
To provide a regular departmental forum and consultative body for evaluating investment portfolio performance and strategy, internal procedures and controls, and making recommendations to the Executive Director of FMSA, in their capacity as chief fiscal officer and City Treasurer, an FMSA Investment Advisory Committee is established. All authorized Investment Officials are de facto standing members of the FMSA Investment Advisory Commit tee. At the discretion of the Executive Director for FMSA, other FMSA investment staff may be authorized to serve on the committee.

Meetings shall be held regularly, with the frequency determined by the Executive Director for FMSA. The FMSA Investment Advi sory Committee’s evaluations and recommendations are subject to approval by the Executive Director of FMSA, who serves as the committee chair.

6.0 ETHICS AND CONFLICTS OF INTEREST

6.1 Investment Officials and Officers
Investment Officials, officers, and employees involved in the investment process shall refrain from personal business activities that could conflict with the proper execution and management of the investment program or impair their ability to make impartial decisions.

Investment Officials, officers, and employees shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial or investment positions that could relate to the performance of the

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investment portfolio. Investment Officials, officers, and employees shall refrain from engaging in personal investment transactions with the same individual with whom they conduct business on behalf of the City of Santa Ana.

6.2 Statement of Economic Interests
Investment Officials and officers authorized to approve investment decisions shall submit an annual Statement of Economic Interests, also known as Form 700, in accordance with California Government Code Section 1090 et seq. The Form 700 provides transparency and ensures accountability in two ways:

1) It provides necessary information to the public about officials’ and officers’ personal financial interests to ensure that officials and officers are making decisions in the best interest o f the public and not enhancing their personal finances.

2) It serves as a reminder to the public official of potential conflicts of interest so the official or officer can abstain from making or participating in governmental decisions that are deemed conflicts of interest.

7.0 AUTHORIZED FINANCIAL INSTITUTIONS AND QUALIFIED BROKER-

DEALERS

7.1 If the City utilizes a SEC registered external investment advisor, the advisor shall maintain a list of authorized broker -dealers and complete the appropriate due diligence required by the SEC. The external investment advisor may use its own list of approved broker/dealers and financial institutions for investment purposes on behalf of the City. The investment advisor shall submit the list of approved broker-dealers to the City’s FMSA investment staff annually. The Executive Finance Director may restrict the use of a broker/dealer which may be deemed unsuitable.

8.0 AUTHORIZED AND SUITABLE INVESTMENTS

8.1 Allowable Investment Instruments – State Law
California Government Code Section 53601 establishes allowable investment instruments for all local agencies, along with maximum maturities, maximum specified percentages of the total portfolio, and minimum quality requirements. Section 53601.1 authorizes local agencies to invest in financial futures or financial option contracts in any of the allowable investment categories enumerated in section 53601. The City may invest in any of the investments

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described in the table in Figure 1. Where the table does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment.

8.2 Authorized Investments
The City of Santa Ana further restricts permitted investments to those listed below, and, where applicable, the Investment Advisory Committee may reduce the maximum specified percentages of the total portfolio (concentration limits) and may increase minimum quality requirements. Within this scope, the City diversifies its investments by investment type, maturity dates, concentration limits, and qualit y requirements.

A. United States Treasury Bills, Notes, and Bonds for which the full faith and credit of the United States is pledged for payment of principal and interest. Purchases of this Category shall not have maturities exceeding 5 years. There is no percentage limit in this category.

B. Obligations issued by a Federal Agency or a United States Government-Sponsored Enterprise. Federal Agency issues
include, but are not limited to, GNMA (Government National Mortgage Association), FFCB (Federal Farm Credit Bank), FHLB (Federal Home Loan Bank), FHLMC (Federal Home
Loan Mortgage Corporation), FNMA (Federal National
Mortgage Association), FHA (Federal Housing Administration), and TVA (Tennessee Valley Authority). Although there is no percentage limitation on these issues, purchases in this category shall not have more than 5 years to maturity, and the “prudent investor” shall apply to a single agency name, as U.S.

Government backing is implied rather than guaranteed.

C. Supranational Obligations in United States dollar-denominated senior unsecured, unsubordinated obligations issued or
unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance
Corporation, or Inter -American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase or sale within the United States. Investments under this subdivision shall be rated “AA” or better by a Nationally Recognized Statistical Rating Organiz ation

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(NRSRO). They shall not exceed thirty percent (30%) of the cost value of the investment portfolio.

D. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as banker’s acceptances, which are eligible for purchase by the Federal Reserve
System. Purchases of banker’s acceptances may not exceed one hundred eighty (180) days or forty percent (40%) of the cost value of the Fund, which may be invested pursuant to this section. However, no more than thirty percent (30%) of the City’s cost value of the investment portfolio may be invested in the banker’s acceptances of any one commercial bank
pursuant to this section.

E. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by an NRSRO. The entity that issues the commercial paper shall be organized and operating within the United States, as a general corporation, shall have total assets in excess of five hundred million dollars ($500,000,000), and have debt other than commercial paper, if any, that is rated "A" or higher by NRSRO. The entity is organized within the United States as a special purpose corporation, trust, or limited liability company; has program wide credit enhancements including, but not limited to: over-collateralization, letters of credit, or a surety bond; has commercial paper that is rated “A -1” or higher, or the equivalent, by an NRSRO Eligible commercial paper shall have a maximum maturity of two hundred
seventy (397) days or less. The City may purchase no more than ten percent (10%) of the outstanding commercial paper of any single corporate issue. Purchases of commercial
paper may not exceed twenty -five percent (40%) of the
investment portfolio.

F. Repurchase Agreements. For purposes of this section, the term "repurchase agreement” means a purchase of
securities by the local agency pursuant to an agreement by which the seller will repurchase the securities on or before a specified date and for a specified amount and will deliver the underlying securities to a third-party custodian. The City may invest in repurchase agreements with primary dealers of the Federal Reserve with which the City has entered into a
Securities Industry and Financial Markets Association
(SIFMA) Master Repurchase Agreement (MRA), which
specifies terms and conditions of repurchase agreements.

The market value of securities used as collateral for
repurchase agreements shall not be allowed to fall below one hundred two percent (102%) of the value of the

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repurchase agreement. It shall be adjusted at least quarterly by the tri -party custodial agent. The investments in
repurchase agreements shall comply if the underlying
securities are brought back up to one hundred two percent (102%) no later than the next bus iness day. The underlying collateral shall be limited to United States Government Treasury Bills, Notes, and Bonds, or obligations issued by a Federal Agency or United States Government-sponsored
enterprises obligations. Upon the written approval of the Executive Director for FMSA, substituted securities may be pledged as collateral. They shall consist only of investments permitted under this investment policy, with a maximum maturity of five (5) years. If the broker defaults, the collateral securities can be sold. Since the securities are valued daily, the sale proceeds are likely to equal or exceed the
repurchase agreement amount. Purchases in this category shall not exceed one (1) year or twenty percent (20%) of the cost value of the investment portfolio. Retail repurchase agreements and reverse agreements shall not be authorized for purchase
G. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state-licensed branch of a foreign bank. However, the City shall not invest in negotiable certificates of deposit issued by a state or federal credit union if a member of the City Council or any City personnel with investment decision making authority also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. Effective January 1, 2026, the maximum percentage of the portfolio shall revert to thirty percent (30%) . Investments made pursuant to Government Code Section 53635.8 remain
subject to a maximum of thirty percent (30%) of the cost value of the investment portfolio. The amounts so invested shall be subject to the limitations of Government Code
Section 53638, which generally provides that the deposit shall not exceed the shareholder’s equity of any depository bank, or the total net worth of any depository savings
association or federal association, or the total of the unimpaired capital and surplus of an insured industrial loan company. Purchases in this category shall not have more than five (5) years to maturity.

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H. Local Agency Investment Fund - State Pool. The City may invest in the Local Agency Investment Fund (LAIF)
established by the State Treasurer under California
Government Code Section 16429.1 for the benefit of local agencies. LAIF provides daily liquidity; therefore, there is no final stated maturity for this investment category. Although there is no percentage limitation on this fund, the "prudent investor" rule shall apply for a single agency name. In keeping with LAIF deposit-limit investments, City LAIF investments shall not exceed $75 million per active account, unless the State Treasurer authorizes a higher deposit limit for regular accounts during the term of this Statement of Investment Policy, in which case City LAIF investments may increase to that limit.

I. California Cooperative Liquid Assets Securities System (CLASS) Prime Fund – Joint Powers of Authority Pool . The City may invest in the California CLASS Prime Fund
established by a joint exercise of powers entity authorized under California Government Code Section 6509.7 for the benefit of all public agencies in the State of California that have authority to invest their treasury funds. The California CLASS Prime Fund provides daily liquidity; therefore, there is no final stated maturity for this investment category.

Although there is no percentage limitation on this fund, the “prudent investor” rule shall apply for a single agency name.

The California CLASS Prime Fund does not limit a maximum or minimum investment balance; therefore, its investments may increase or decrease based on pool performance, daily cash flow needs, etc.

J. Municipal Bonds. The City may invest in notes or bonds of any of the fifty (50) states, as well as the debt of any local agency within the State of California. Notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely from the revenues of a revenue-
producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Investments in this category shall be restricted to instruments that have a rating of “A” or higher, or the equivalent, by at least one of the following nationally recognized statistical rating organizations: Moody’s, Standard & Poor’s, or Fitch. Purchases in this category shall not have more than five (5) years to maturity. There is no percentage limit in this category.

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K. Medium Term Corporate Notes (MTN) are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United
States or by depository institutions licensed by the United States or any state and operating within the United States.

Notes eligible for investment shall be rated in a rating category of "A" or higher by a nationally recognized rating service. Purchases in this category shall not exceed five (5) years to maturity or thirty percent (30%) of the cost value of the investment portfolio. Purchases in a single issuer in this category shall not exceed five percent (5%) of the cost value of the investment portfolio.

L. A mortgage pass -through security, collateralized mortgage obligation, mortgage- backed or other pay -through bond, equipment lease- backed certificate, consumer receivable pass-through certificate, or consumer receivable- backed bond. Securities eligible for investment under this
subdivision shall be rated in a rating category of “AAA” or its equivalent or better by an NRSRO and have a maximum
remaining maturity of five years or less. Purchase of
securities authorized by this subdivision shall not exceed 10 percent (10%) of the agency's surplus moneys that may be invested pursuant to this section.

M. Shares of beneficial interest, otherwise known as money market shares, are issued by diversified management
companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. The company shall have met either of the following criteria:

i. Attain the highest ranking or the highest letter
and numerical rating provided by not less than
two NRSROs, and

ii. Retained an investment adviser registered or
exempt from registration with the Securities
and Exchange Commission with not less than
five (5) years’ experience investing in the
securities and obligations authorized by
subsection (a) t o (k), inclusive, and
subdivisions (m) to (o), inclusive, of Section
53601 of the Government Code and with assets
under management in excess of five-hundred,

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million dollars ($500,000,000). The purchase
price of shares of beneficial interest (mutual
funds) purchased pursuant to this subdivision
shall not include any commission that these
companies may charge. Investments in this
category shall be restricted to money market
mutual funds that seek to maintain a Net Asset
Value of $1. Money market mutual funds
provide daily liquidity; therefore, there is no
final stated maturity for this investment
category. Investments in mutual funds shall be
restricted to funds that have the highest
ranking or the highest letter and numerical
rating provided by not less than two of the
following nationally recognized statistical
rating organizations: Moody's, Standard &
Poor's or Fitch. Purchases in this category
shall not exceed twenty percent ( 20%) of the
book value of the investment portfolio.

Purchases in a single mutual fund shall not
exceed ten percent 10% of the book value of
the Portfolio.

8.3 Suitability of Investments
Suitability, not simply return, is the standard for selecting investments for the portfolio. The Executive Director for FMSA, and all authorized Investment Officials and other supporting FMSA investment staff shall review the following when selecting or recommending investments for the City:
• Sufficient liquidity to meet current obligations
• Appropriate level of market risk
• Diversified portfolio
• Legal investments
• Market rate of return
The Executive Director of FMSA and his/her designees are not required to invest in all investment options authorized under this Statement of Investment Policy. Selection will be based on cash flow characteristics, exposure to market risk, rate of return, the technical ability of the staff responsible for administering the program, and the availability of time and tools for staff to engage in conservative yet effective management of the City’s investment portfolio.

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9.0 PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES

9.1 Ineligible Investments - State Law
Certain investments, however, are prohibited by California Government Code Section 53601.6. Accordingly, the City shall not invest in any inverse floaters, range notes, mortgage- derived or interest-only strips, or other securities that could result in zero interest accrual if held to maturity. However, prohibited securities purchased and currently held in the City's portfolio as of the date of this policy's adoption, which were previously allowed under the California Government Code but are now prohibited due to changes in the Code, may be held until their maturity dates.

9.2 Disallowed Investments- Higher Perceived Risk
Besides investments prohibited by statute, this policy disallows investments in the following due to a higher perceived risk:
• Investment agreements - contracts regarding funds
deposited by an investor are often separated into
those offered by banks and those offered by
insurance companies, commonly known as
Guaranteed Investment Contracts (GICs) or
Guaranteed Investment Agreements (GIAs);
• Securities lending agreements- agreements allowing
local agencies to earn incremental income on their
investment portfolio by loaning securities in their
portfolio to financial services companies for a limited time;
• Unregistered securities- purchases of private resales of unregistered securities to institutions, such as the Securities Act of 1933, Section 5, Rule 14A
securities.

9.3 Prohibited Investment Practices
Assets of the City shall not be invested pursuant to the following investment practices:
• Trading of securities strictly for speculation or solely for the realization of short-term trading gains.
• A contract providing for the compensation of an agent or fiduciary solely based upon the performance of the
invested assets.

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• If a fiduciary or other third party with custody of public investment transaction records of the City fails to
produce records within a reasonable time, when
requested by the City, the City shall make no new
investments with or through the fiduciary or third
party. It shall not renew maturing investments with or
through the fiduciary or third party.

10.0 INVESTMENT POOLS/MUTUAL FUNDS

Government-sponsored investment pools (Local Agency Investment Fund (LAIF), County Pools, Joint Powers Authority Pools, and the State Treasury Voluntary Investment Program Fund) are sources for short - term cash management.

Before seeking City Council approval to participate in one or more additional investment pools/money market mutual funds, the Executive Director for FMSA or their designees will conduct a thorough investigation of the prospective pool before recommending City investment.

Before recommending investing in a prospective pool, the following issues must be reviewed and considered:

The pool must meet the requirements of the state
statute describing eligible investment securities and
include a written statement of investment policy and
objectives.

A description of interest calculations and how they are distributed, and how gains and losses are treated.
i. A description of how the securities are safeguar ded (including the settlement processes), and how often
the securities are priced and the program audited.
ii. A description of who may invest in the program, size and frequency of minimum and maximum deposits,
how many withdrawal transactions are allowed (daily,
monthly, quarterly, annually, etc.), and whether
advance notice is required for withdrawal
transactions.
iii. A description of how and who in the governing body of the program is authorized to make program
changes, including frequency. The description must
include how program participants are informed of
program changes and their impacts.
iv. A schedule for receiving statements and portfolio

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listings.
v. A description of how reserves, retained earnings,
etc., are utilized by the pool.
vi. A model of the fee schedule, and when and how it is assessed.
vii. A description of eligibility and/or acceptance of bond proceeds.
viii. The pool must contain only the types of investment allowed by the California Code.

Upon approval for participation in one or more additional investment pools, the FMSA investment staff shall, on an annual basis, investigate and reconfirm the pool’s compliance with items listed above and shall monitor the pool’s performance reports.

11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS

Money must be deposited in state or national banks, state or federal savings associations, or state or federal credit unions in the State of California. It may be in inactive deposits, active deposits, or interest- bearing active deposits. The deposits cannot exceed the amount of the bank's or savings and loan's paid-up capital and surplus.

The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of one hundred ten percent (110%) of the total amount of the deposits. State law also allows first trust deeds with a value of one hundred fifty percent (150%) of the total amount of the deposits as an eligible security . A third class of collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB).

The Treasurer may, at their discretion, waive security for the portion of a deposit insured under federal law. Currently, the first two hundred fifty thousand dollars ($250,000) of a deposit is federally insured.

12.0 SAFEKEEPING AND CUSTODY
In accordance with California Government Code Section 53601, to protect against potential losses caused by collapse of individual securities dealers, all securities owned by the City, except securities used as collateral for repurchase agreements, shall be kept in safekeeping with "perfected interest" by the City’s custodial bank or a third-party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. Perfected interest refers to the establishment of a superior ownership right in and legal control over

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the securities assets held by the bank custodian on the City’s behalf. It is intended to protect the City from the custodial bank’s creditors in the event of a bank default and bankruptcy filing . All securities, excepting investments which are not deliverable (such as LAIF, California CLASS Prime Fund, direct time certificates of deposit, and money market mutual funds), will be received and delivered using standard “delivery versus payment”. Delivery versus payment refers to the delivery of securities in exchange for money at the time of delivery, rather than for a signed receipt.

13.0 DIVERSIFICATION
The purpose of diversification is to reduce overall portfolio risk, achieve market-rate returns, and enable the City to meet all anticipated cash requirements. The investment portfolio shall consist of various types of securities approved by state statute and this Statement of Investment Policy. Investments shall vary by issuer, asset class, industry, and maturity to meet the City’s financial obligations. Diversifying the investment portfolio will help mitigate losses resulting from the failure of any one issuer. Investments shall also be diversified across structures and embedded options within the security.

The investments shall be diversified by:
• Limiting investments to avoid over-concentration in
securities of a specific issuer (excluding treasury bills). • Limiting investment in securities that have higher credit risks. • Limiting certificates of deposit to the maximum federally insured amount.
• Investing in securities with varying maturities.
• Investing a minimum percentage of the total portfolio as established by the FMSA Investment Advisory Committee
in highly marketable short -term treasuries, checking
accounts with interest, government pooled account, or a combination of all three (See Section 4.1 (A)(iv)).

14.0 INTERNAL CONTROLS

The Executive Director for FMSA is responsible for establishing and maintaining an internal control structure designed to ensure that the entity's assets are protected from loss, theft, or misuse. The Finance Department, with oversight and approval from the Executive Director for FMSA, has developed a system of internal investment controls and a

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segregation of responsibilities for investment functions to ensure adequate internal control over these functions. No investment personnel may engage in an investment transaction except as provided under this policy and the procedure established by the Executive Director for FMSA.

Internal control procedures address:

• Control of collusion
• Control of fraud
• Control of misrepresentation by third parties
• Control of employee error
• Separation of transaction authority from accounting and record keeping
• Custodial safekeeping
• Delivery versus payment
• Clear delegation of authority
• Confirmation of transactions for investment and wire transfers • Written procedures for placing investment transactions • FMSA Investment Advisory Committee

In addition, cash balances are reconciled daily by non- investment employees and reconfirmed by the City's accounting staff. Accounting staff also regularly verify investment activities and holdings, and the FMSA Investment Advisory Committee reviews them. The Executive Director for FMSA, at his/her discretion, shall establish a process for annual independent reviews by an external auditor, to the extent contemplated by generally accepted auditing standards, as part of the City’s annual audit.

15.0 REPORTING

Government Code Section 53646(b)(1) previously mandated that annual investment policies and quarterly reports be rendered to the legislative body (for the City of Santa Ana, the City Council) . AB 2853 amended Government Code Section 53646, making these requirements permissive rather than mandatory. Although the Annual Statement of Investment Policy and Quarterly Reports to the City Council are no longer required, we believe it is both prudent and consistent with the spirit of the City’s Sunshine Policy to continue providing these documents . The Executive Director for FMSA shall therefore continue to render to the City Council an annual Statement of Investment Policy and to the City Manager and the City

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Council regular reports containing detailed information on all securities, investments, and monies of the City. Pursuant to Government Code 53607, the reports shall include monthly transactions for the reporting period. The reports will be submitted to the City Manager and City Council monthly and formally rendered to the City Council quarterly as part of a scheduled open City Council Meeting agenda within forty-five (45) days following the end of each quarter.

The report will contain the following information on the funds that are subject to this investment policy:
1) Type of investment and name of issuer;
2) Date of maturity;
3) Par amount;
4) Dollar amount invested in all securities, investments, and monies held by the City (amortized cost or book value); 5) Weighted average maturity of the investments;
6) Current market value as of the date of report of all funds held by the City and under the management of any outside party that is not also a local agency or LAIF, and the source of the valuation;
7) Source of the market value information;
8) A list of any funds, investments, or programs, including loans, under the management of contracted parties such
as LAIF, investment. pools, outside money managers, and securities lending agents);
9) A statement of compliance with the investment policy or an explanation for non-compliance; and
10) A statement of the local agency’s ability to meet its pool’s expenditure requirements for the next six months, as well as an explanation of why sufficient money will not be
available if that is the case.

16.0 POLICY CONSIDERATIONS

16.1 Exemptions
Any investment currently held that does not meet the guidelines of this policy shall be exempt from the requirements of this policy, provided it complied with State of California law and the City’s investment policy in effect at the time of purchase. At maturity or liquidation, such funds shall be reinvested only as provided by this policy.

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16.2 Stabilization Fund
Except for cash in certain restricted and special funds, the consolidation of cash balances from all funds and the
maintenance of portfolio liquidity (both static and dynamic), as provided for in this policy, together with the monthly affirmation to the City Manager and City Councilmembers of the City’s ability to meet its pool’s expenditure requirements for the next six months, shall be deemed to functionally meet and exceed the
requirements of Article VI., Sec. 610, of the City of Santa Ana Charter as relates to the maintenance of a stabilization fund.

16.3 Amendments
In the event this policy is amended prior to the end of its twelve- month fiscal year term, the amended Statement of Investment Policy shall be resubmitted to City Council for review and adoption by City Council Resolution.

16.4 Approval
This Statement of Investment Policy is approved by City Council on this 16th day of June, 2026, pursuant to City Council Resolution #2026-XXX.

17 POLICY REVIEW, CERTIFICATION, AND ADOPTION

17.1 Policy Review
This Statement of Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of PRINCIPAL, LIQUIDITY, AND YIELD, and to: 1) reflect changes in applicable California state codes, 2) maintain its relevance to current financial and economic trends, and 3) meet the needs of the City of Santa Ana.

17.2 Policy Certification
This certified Statement of Investment Policy will be resubmitted to the Association of Public Treasurers of the United States and Canada (APTUS&C) and the California Municipal Treasurers Association (CMTA) for review and re- certification every five (5) years, or more often in the event of significant legislative changes, changes in industry standards, or substantive non- administrative modifications to the body of the policy statement, exclusive of revisions or additions to appendices or glossaries. In FY 2019-20, the City of Santa Ana received Investment Policy Certifications

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from both the APTUS&C at the international North American level and the CMTA at the state level. In FY 2021-22, the City of Santa Ana received a state-level Investment Policy Certification from the CMTA.

17.3 Adoption

The Executive Director of FMSA shall present this Statement of Investment Policy annually to the City Council and the City Manager. The City Council shall annually review and adopt this Statement of Investment Policy by resolution at a public meeting.

Submitted to the Santa Ana City Council for approval, this 16th day of June 2026.

________________________________________

Alex Trinidad, CPA
Executive Director & City Treasurer
Finance & Management Services Agency

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July 1, 2026 -
June 30, 2027
City of Santa - Annual
Statement of Investment Policy Page 23

ALLOWABLE INVESTMENT INSTRUMENTS PER STATE GOVERNMENT
CODE (AS OF JANUARY 1, 2026)A APPLICABLE TO ALL LOCAL AGENCIESB See “Table of Notes for Figure 1” on the next page for footnotes related to this figure.

INVESTMENT
TYPE

MAXIMUM

MATURITYC

MAXIMUM

SPECIFIED
% OF

PORTFOLIOD

MINIMUM

QUALITY

REQUIREMENTS

GOV'T CODE

SECTIONS
Local Agency Bonds 5 years None None 53601(a)
U.S. Treasury Obligations 5 years None None 53601(b)
State Obligations—CA
And Others 5 years None None 53601(c)
53601(d)
CA Local Agency Obligations 5 years None None 53601(e)
U.S Agency Obligations 5 years None None 53601(f)
Bankers’ Acceptances 180 days 40%E None 53601(g)
Commercial Paper—Non-Pooled FundsF
(under $100,000,000 of investments)
397 days or less 25% of the
agency’s moneyG
Highest letter and
number rating by an
NRSROH

53601(h)(2)(c)
Commercial Paper—Non-Pooled FundsI (min.
$100,000,000 of investments)
397 days or less 40% of the
agency’s moneyG
Highest letter and
number rating by an
NRSROH

53601(h)(2)(c)
Commercial Paper—
Pooled FundsJ
270 days or less 40% of the
agency’s moneyG
Highest letter and
number rating by an
NRSROH

53635(a)(1)
Negotiable Certificates of Deposit 5 years 30%K None 53601(i) Non-negotiable Certificates of Deposit 5 years None None 53630 et seq.

Placement Service
Deposits 5 years 50%L None 53601.8 and 53635.8
Placement Service Certificates
of Deposit 5 years 50%L None 53601.8 and 53635.8
Repurchase Agreements 1 year None None 53601(j)
Reverse Repurchase Agreements and
Securities Lending Agreements 92 daysM 20% of the base
value of the portfolio NoneN 53601(j)
Medium-Term NotesO 5 years or
less 30% “A” rating category or
its equivalent or better 53601(k)
Mutual Funds And Money Market
Mutual Funds N/A 20%P MultipleQ, R 53601(l) and
53601.6(b)
Collateralized Bank DepositsS 5 years None None 53630 et seq. and 53601(n)
Mortgage Pass–Through and
Asset–Backed SecuritiesT
5 years or
lessT 20% “AA” rating category or
its equivalent or betterT 53601(o)
County Pooled
Investment Funds N/A None None 27133
Joint Powers Authority Pool N/A None MultipleU 53601(p) Local Agency Investment Fund (LAIF) N/A None None 16429.1 Voluntary Investment Program FundV N/A None None 16340
Supranational ObligationsW 5 years or
less 30% “AA” rating category or
its equivalent or better 53601(q)
Public Bank Obligations 5 years None None 53601(r), 53635(c) and 57603

City Council
17 –
29 6/16/2026

City Council
17 –
30 6/16/2026

Finance and Management Services
www.santa-ana.org/finance
Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 16, 2026
TOPIC: Resolution Establishing the Appropriations Limit for FY2026-27

AGENDA TITLE
Resolution Establishing the Appropriations Limit for FY2026-27

RECOMMENDED ACTION
Adopt a resolution establishing the City of Santa Ana's appropriations limit for FY2026- 27, as required by state law.

RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FISCAL YEAR 2026-2027
GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
Article XIII B of the California Constitution, commonly referred to as the “Gann Limit,” was approved by California voters in 1979 through Proposition 4. The Gann Limit establishes a constitutional restriction on the amount of tax proceeds that state and local governments may appropriate each fiscal year. The limit is adjusted annually based on changes in population and the cost of living to allow government spending capacity to grow in line with economic and demographic conditions.

Pursuant to California Government Code Section 7910, the City is required to establish its annual appropriations limit by resolution. Adoption of the proposed resolution will establish the City’s appropriations limit for Fiscal Year 2026-27 (FY26-27), and ensure compliance with State constitutional requirements.

The appropriations limit calculation for FY26-27 was prepared using the growth factors provided by the California Department of Finance. Consistent with prior years, staff used the change in California per capita personal income as the cost-of-living factor and Orange County population growth as the population factor.

City Council
18 –
1 6/16/2026

Resolution Establishing the Appropriations Limit for FY2026-27 June 16, 2026

Page 2 ends

5 8
2 0
Using the formula provided by the state, staff calculated the spending limitation from the “Proceeds of Taxes” at $1,591,945,027 (Exhibit 1) for FY26-27, a 4.6% increase over Fiscal Year 2025-26. Funds governed by the appropriations limit include the General Fund, the Capital Outlay Fund, and Special Revenue Funds. Exhibit 1 identifies the factors used to determine the inflationary increases from the prior year. Exhibit 2 categorizes the FY26-27 anticipated revenues under “Proceeds of Taxes” and “Non- Proceeds of Taxes.” Exhibit 3 computes the FY26-27 appropriations subject to this limitation and identifies the difference between the limit and the budgeted appropriation.

As demonstrated in Exhibit 3, the City’s anticipated appropriations subject to limitation in FY26-27 are $328,803,299, which is approximately $1,263,141,728 or 79% below the calculated limit. This substantial margin demonstrates that the City’s budgeted appropriations remain well within the constitutional spending limitation.

The Gann Limit serves as an important fiscal safeguard by ensuring that growth in government spending supported by tax revenues remains aligned with changes in population and economic conditions. The City’s appropriations are significantly below the allowable limit, indicating that the City has considerable capacity under the constitutional threshold and remains fully compliant with Article XIII B of the California Constitution.

The proposed resolution has been prepared in accordance with applicable constitutional and statutory requirements.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

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

EXHIBIT(S)

1. Computation of Appropriation Limit

2. Schedule to Categorize Anticipated Revenues

3. Appropriation Subject to Limitation

4. Resolution
Submitted By: Alexander Trinidad, Executive Director, Finance and Management Services Agency
Approved By: Alvaro Nuñez, City Manager

City Council
18 –
2 6/16/2026

Fiscal Year 2025-26 Appropriations Limit $ 1,522,518,198 California Per Capita Personal Income: 4.950% *
Converted into a Factor 1.0495
Population Growth: -0.37% *
C
onverted into a Factor: 0.9963
Calculation of factor for fiscal year 2025-26: 1.0456
Fiscal Year 2026-27 Appropriations Limit $ 1,591,945,027 * Source: State of California, Department of Finance, Price and Population Information - FY 2026-27 EXHIBIT 1

COMPUTATION OF APPROPRIATION LIMIT
FOR FISCAL YEAR ENDING JUNE 30, 2027
EXHIBIT 1

City Council
18 –
3 6/16/2026

REVENUE

PROCEEDS OF
TAXES

NON-PROCEEDS OF

TAXES TOTALS
TAXES:

Property Tax $ 113,751,600 $ - $ 113,751,600
Sales Tax 146,415,470 - 146,415,470
Hotel Visitors' Tax 9,500,000 - 9,500,000
Business Tax 18,299,000 - 18,299,000
Documentary Stamp Tax 1,150,000 - 1,150,000
Utility Users' Tax 29,450,000 - 29,450,000
Medical Marijuana/Cannabis Tax 13,116,000 - 13,116,000 Total Taxes 331,682,070 - 331,682,070
F
ROM STATE:

State Motor Vehicle License 425,000 - 425,000
Homeowner Prop Tax Subvention 180,000 - 180,000
State Gas Tax - 18,078,380 18,078,380
SB90 Reimbursements - 200,000 200,000
State Grants - 10,198,620 10,198,620
Standards Training for Corrections
Reimbursement - 54,660 54,660
Total State 605,000 28,531,660 29,136,660
OTHER GOVERNMENT:

Community Development (CDBG) - 4,621,190 4,621,190
Urban Area Security Initiative Grant - 662,390 662,390 Housing (Section 8) - 80,389,360 80,389,360
Workforce Investment Act - 2,743,890 2,743,890
Measure M, Street Grants - 6,198,920 6,198,920
Civic Center and Park - 3,893,890 3,893,890
Program Income - 1,003,140 1,003,140
Other Federal Grants - 1,297,260 1,297,260
Total Other Government - 100,810,040 100,810,040
EXHIBIT 2

SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES
FOR FISCAL YEAR ENDING JUNE 30, 2027
EXHIBIT 2

City Council
18 –
4 6/16/2026

Exhibit 2
Continued

PROCEEDS NON-PROCEEDS

REVENUE OF TAXES OF TAXES TOTALS
LOCALLY RAISED:

Licenses and Permits - 7,129,550 7,129,550 Franchise Fees - 14,100,000 14,100,000 Fines and Forfeitures - 5,261,980 5,261,980 Charges for Services - 36,622,700 36,622,700 From Use of Property - 12,858,020 12,858,020 Others - 201,000 201,000 Others - Inter-Agency - 1,202,590 1,202,590 Total Locally Raised - 77,375,840 77,375,840 OTHER MISCELLANEOUS:

Donation - 327,710 327,710 Expense Reimbursements - 2,503,400 2,503,400 Indirect Cost Recovery - 20,633,390 20,633,390 Interfund Transfers - 21,097,430 21,097,430 Opioid Settlements - 937,400 937,400 Total Other Miscellaneous - 45,499,330 45,499,330 FROM USE OF MONEY:

Earnings on Investment 2,310,554 1,825,776 4,136,330 TOTAL REVENUES $ 334,597,624 $ 254,042,646 $ 588,640,270

City Council
18 –
5 6/16/2026

Proceeds of taxes 334,597,624$
Less: Exclusions (5,794,325)
Appropriation subject to limitation 328,803,299$
Current year limit 1,591,945,027
Over(under) limit (1,263,141,728)$
EXHIBIT 3

APPROPRIATION SUBJECT TO LIMITATION
FOR FISCAL YEAR ENDING JUNE 30, 2027
EXHIBIT 3

City Council
18 –
6 6/16/2026

Resolution No. 2026-XXX

Page 1 of 3 ends

RESOLUTION NO. 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT

OF THE CITY OF SANTA ANA FOR FISCAL YEAR
2026-2027

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

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

A. Article XIIIB of the Constitution of the State of California, adopted by the voters of the State of California in 1979, imposes upon State and local government the obligation to limit each fiscal year’s appropriations to those established in fiscal year 1978 -79 as adjusted for by inflation and population, together with other specified changes required or permitted.

B. In June of 1990, the voters of the State of California approved Proposition 111, which amended Article XIIIB to establish the limit originally calculated for fiscal year 1986 -87 as a new adjustment base , and to change the definition of the cost of living to be either the percentage change in California per capita personal income from the preceding year or the percentage change in the local assessment roll from the preceding year for the jurisdiction due to the addition of local non-residential new construction.

C. Proposition 111 further modified Article XIIIB requirements by making certain capital outlay, debt service, emergency and court ordered expenditures not subject to the limit, and by allowing expenditures in excess of one year's limit to be offset by under expenditures in an immediately following year.

D. The City of Santa Ana has opted to use as the inflation adjustment factor the percentage change in the California per capita personal income from the preceding year.

E. The City of Santa Ana has opted to use as the population adjustment factor the County’s percentage change in population from the preceding year.

F. Section 7910 of the Government Code of the State of California requires the governing body of each local jurisdiction each year to, by resolution, establish its appropriations limit and make other necessary determinations for the following fiscal year pursuant to Article XIIIB of the California Constitution at a regularly scheduled meeting or noticed special meeting.

EXHIBIT 4

City Council
18 –
7 6/16/2026

Resolution No. 2026-XXX

Page 2 of 3 ends

Fifteen days prior to the meeting, documentation used in the determination of the appropriations limit and other necessary determinations shall be available to the public.

G. This matter came before the City Council at its regularly scheduled meeting of June 16, 2026.

H. The Executive Director of the Finance and Management Services Agency of the City of Santa Ana has determined the City’s appropriation limit for fiscal year 2026-2027 in accordance with said provisions of the Constitution and laws of the State of California , and the documentation used in the determination has been available to the public since not later than June 1 2026, in the office of the Executive Director of the Finance and Management Services Agency.

Section 2. Based upon the above referenced facts, and all facts specified in the accompanying Request for Council Action and its attachments, and each of them, the appropriation limit of the City of Santa Ana for fiscal year 2026-2027 is hereby found and determined to be $1,591,945,027.

Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this _____ day of ______________, 2026.

_______________________
Valerie Amezcua
Mayor

APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney

By:________________________
Jonathan T. Martinez
Assistant City Attorney

City Council
18 –
8 6/16/2026

Resolution No. 2026-XXX

Page 3 of 3 ends

AYES: Councilmembers ___________________________________

NOES: Councilmembers ___________________________________

ABSTAIN: Councilmembers ___________________________________

NOT PRESENT: Councilmembers ___________________________________

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Jennifer Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2026-______ to be the original resolution adopted by the City Council of the City of Santa Ana on June 16, 2026.

Date: ____________ ___________________________
City Clerk
City of Santa Ana

City Council
18 –
9 6/16/2026

Finance and Management Services
www.santa-ana.org/finance
Item # 19
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 16, 2026
TOPIC: Ordinance to Adopt the Fiscal Year 2026-27 Budget

AGENDA TITLE
Second Reading and Adoption of City Council Ordinance NS-3096 Appropriating Monies to the Several Offices, Agencies, and Departments of the City of Santa Ana for the Fiscal Year Budget Period Commencing July 1, 2026
First reading at the June 2, 2026, City Council Meeting and approved by a vote of 7-0.

Published in the OC Reporter on June 8, 2026.

RECOMMENDED ACTION
Approve the second reading and adopt Ordinance NS-3096 to appropriate monies to the several offices, agencies, and departments of the City for Fiscal Year 2026-27 (FY26-27), which begins on July 1, 2026, and ends on June 30, 2027. (Requires five affirmative votes)
UNCODIFIED ORDINANCE NO. NS-3096 entitled AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO SEVERAL

OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2026
GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
Pursuant to Sections 604 and 605 of Santa Ana’s City Charter, the City Manager worked with staff to prepare and present a proposed budget to the City Council for the fiscal year beginning July 1, 2026.

Consistent with Section 606 of the City’s Charter, the City Council conducted a public hearing on the proposed budget on June 2, 2026 and unanimously approved the ordinance and proposed budget as presented by staff with no changes. According to the Santa Ana Charter Section 607, the City Council is required to adopt the annual budget by July 31.

City Council
19 –
1 6/16/2026

Ordinance to Adopt the FY2026-27 Budget
June 16, 2026

Page 2 ends

5 8
2 7

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
The Estimated Spendable Fund Balance Summary in the Budget Document includes the estimated fiscal impact for each Fund.

All exhibits have been posted on the City’s website at https://www.santa-ana.org/fy-2026- 27-proposed-budget-documents/.

EXHIBIT(S)

1. Detailed proposed budget document available at: https://www.santa-ana.org/fy- 2026-27-proposed-budget-documents/

2. Ordinance NS-3096 to adopt the FY2026-27 Budget
Submitted By: Alexander Trinidad, Executive Director, Finance and Management Services Agency
Approved By: Alvaro Nuñez, City Manager

City Council
19 –
2 6/16/2026

Ordinance No. NS-XXXX

Page 1 of 3 ends

ORDINANCE NO. NS-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA APPROPRIATING MONIES TO THE SEVERAL

OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY

FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY
1, 2026

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

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

A. The City Manager has prepared and submitted to the City Council, pursuant to Section 605 of the City Charter, a proposed budget for expenditures for the fiscal year commencing July 1, 2026.

B. In accordance with Section 606 of the City Charter , a public hearing has been held upon the proposed budget of expenditures after notice of such public hearing had been published in the manner prescribed in Section 606 of the City Charter.

C. The proposed budget of expenditures duly submitted and considered as herein stated, together with any supplemental revisions and amendments thereto, was approved, adopted, and fixed by the City Council as the budget of the City for fiscal year 202 6-2027, commencing July 1, 202 6, in the amounts and for the funds, purposes, functions, department activities, and programs as therein set forth, including the Seven-Year Capital Improvement Program update per Orange County Transportation Authority Measure M2 eligibility requirement . The adopted budget, including any supplemental revisions and amendments, together with a copy of the appropriation ordinance, shall be placed in the official files of the City Clerk.

Section 2. There are hereby appropriated to the several offices, agencies, and departments of the City, being the respective object and purposes specified in that certain document entitled "Fiscal Year 202 6-27 City Budget", a copy of which is on file in the Office of the City Clerk, out of the various funds of the City for fiscal year 2026-2027, the several amounts stated as proposed expenditures from such funds, respectively, in those columns of the Budget that are headed "FY 26-27". Each aggregate of expenditures so specified in the Budget for the fiscal year for each program shall be deemed to be an appropriation for a single object and purpose within the meaning of Section 609 of the City Charter, except that as to any o ffice, department, or agency of the City for which more than one program is designated in Fiscal Year 202 6-2027 City Budget, the aggregate expenditure authorized for all programs in Fiscal Year 2026-2027 City Budget EXHIBIT 2

City Council
19 –
3 6/16/2026

Ordinance No. NS-XXXX

Page 2 of 3 ends

of each such office, department, or agency shall be deemed to be an appropriation for a single object and purpose within the meaning of Section 609 of the City Charter.

Section 3. The appropriations hereby made shall constitute the maximum expenditures authorized for the several offices, agenc ies, and departments opposite which the amounts of such appropr iations are shown in the Budget, and as set forth in Exhibit 1 attached hereto and incorporated herein by reference.

Section 4. No warrant shall be issued or indebtedness incurred for any purpose that exceeds the unexpended balance of the appropriations established by this ordinance, unless such appropriation shall have been amended or supplemented by the City Council in the manner set forth in Section 609 of the City Charter . The City Manager is hereby authorized to make revisions between the items included within any such appropriation if, in his/her opinion, such revisions are necessary and proper.

Section 5. In accordance with Governmental Accounting Standards Board Statement 54, the City Manager or his/her designee is hereby authorized, as of the date of this ordinance, to allocate assigned governmental funds' balances to specific programs and activities as deemed necessary and proper.

Section 6. The Executive Director of Finance and Management Services is hereby authorized to transfer monies in accordance with the Inter-fund Transfers listed in the Budget, in such amounts and at such times during the fiscal year as he /she may determine necessary to the competent operation and control of City business, except that no such transfer shall be made in contravention of State law or City ordinance or exceed in total the amount stated herein or as amended by the City Council.

Section 7. One certified copy of this appropriation ordinance , together with a certified copy of each amendment thereto, shall be transmitted by the City Clerk to the Executive Director of Finance and Management Services.

Section 8. The City Council of the City of Santa Ana hereby adopts the updated Seven-Year Capital Improvement Program, as set forth in the 2026-2027 City Budget.

Section 9. Upon and from the effective date of this ordinance, expenditures of monies appropriated hereby are authorized beginning July 1, 2026.

Section 10. The City Clerk shall cause the title of this ordinance to be published as required by law.

Section 11. All presently applicable documentation pertaining to the number, titles, qualifications, powers, duties, or compensation of officers or employees of the City, which has been previously approved by resolution or order of the City Council and which is currently on file with the Executive Director of Human Resources, is incorporated herein and is hereby approved. The City Manager is authorized to create, alter, or abolish any position of employment, or the number, title, qualifications, powers, duties, or

City Council
19 –
4 6/16/2026

Ordinance No. NS-XXXX

Page 3 of 3 ends

compensation thereof, when such action is appropriate to promote the efficiency of the City administrative organization; provided, however, that no such action shall be effective unless and until approved by resolution or order of the City Council.

ADOPTED this ___ day of June, 2026.

_______________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney

By: _______________________
Jonathan T. Martinez
Assistant City Attorney

AYES: Councilmembers ___________________________________

NOES: Councilmembers ___________________________________

ABSTAIN: Councilmembers ___________________________________

NOT PRESENT: Councilmembers ___________________________________

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Jennifer Hall, City Clerk do hereby attest to and certify the attached Ordinance No. NS- ______ to be the original ordinance adopted by the City Council of the City of Santa Ana on __________________, 2026 and that said ordinance was published in accordance with the Charter of the City of Santa Ana.

Date ___________________________ City Clerk
City of Santa Ana

City Council
19 –
5 6/16/2026

EXPENDITURE BY FUND PROPOSED
FY 26-27
CITY ATTORNEY 5,565,650
CITY CLERK 1,648,020
CITY COUNCIL LEGISLATIVE 1,058,730
CITY MANAGER 4,620,270
COMMUNITY DEVELOPMENT 3,692,030
FINANCE & MANAGEMENT SERVICES 13,903,610
FIRE & EMERGENCY MEDICAL SERVICES 62,589,400
GENERAL NON-DEPARTMENTAL 3,350,700
HUMAN RESOURCES 4,533,690
LIBRARY 7,894,510
MUSEUM CAPITAL AND MAINTENANCE FUND 1,827,000
PARKS, RECREATION & COMMUNITY SERVICES 13,947,230
PLANNING & BUILDING 17,735,910
POLICE 165,882,960
PUBLIC WORKS 58,474,530
PROJECT TRANSFERS 19,318,740
PENSION LIABILITY PAYDOWN 48,993,520
GENERAL FUND EXPENDITURE GRAND TOTAL 435,036,500

GENERAL FUND

City Council
19 –
6 6/16/2026

FUND FUND DESCRIPTION DEPARTMENT PROPOSED
FY 26-27
032 MEASURE M-STREET CONSTRUCTION Public Works 6,198,920 148 TRAFFIC SYSTEM MGMT GRANT Public Works 50,000
058 RESIDENTIAL STREET IMPROVEMENT Public Works 644,100 059 SELECT STREET CONSTRUCTION Public Works 12,553,420
147 STREET SAFETY PROGRAMS Public Works 651,200
312 RESIDENTIAL DEVELOP DISTRICT 2 Public Works 800,000 417 CDA INCLUSIONARY HOUSING FEE Community Development 2,261,100 418 CDA CAPITAL PROJECTS Community Development 8,900
607 HOUSING ASSET LMIHF Community Development 1,492,050 24,659,690

FUND FUND DESCRIPTION DEPARTMENT PROPOSED
FY 26-27
404 COSA 2014 LEASE FINANCING Debt Service 735,030
406 2021 PENSION OBLIGATION FUNDS Debt Service 18,129,830 18,864,860
FUND FUND DESCRIPTION Department PROPOSED
FY 26-27
027 PARKING FUND Police 4,836,270
054 SANITARY SEWER CAPITAL Public Works 600,000
056 SANITARY SEWER SERVICE Public Works 10,199,130
057 FED CLEAN WATER PROTECTION ENT Public Works 3,847,810 060 WATER Public Works 74,559,160
067 REGIONAL TRANSP CENTER Public Works 1,781,230
068 SANITATION FUND Public Works 7,897,070
069 REFUSE COLLECTION SERVICE Public Works 26,751,910
112 GOLF COURSE Parks, Rec & Comm Svcs 3,913,500
134,386,080

CAPITAL PROJECT FUNDS

CAPITAL PROJECT FUNDS GRAND TOTAL

DEBT SERVICE FUNDS

DEBT SERVICE FUNDS GRAND TOTAL

ENTERPRISE FUNDS

ENTERPRISE FUNDS GRAND TOTAL

City Council
19 –
7 6/16/2026

FUND FUND DESCRIPTION DEPARTMENT PROPOSED
FY 26-27
012 CANNABIS PUBLIC BENEFIT FUND
City Attorney Enforcement Services City Attorney 298,700 Enforcement Services (FMSA) Finance & Mgmt Svcs 129,190 Library Youth Services Library 1,032,920
Youth Services (PRCSA) Parks, Rec & Comm Svcs 3,603,290 Enforcement Services (PBA) Planning & Building 1,448,040 Police Enforcement Services Police 2,220,160
016 CASP CERTIFICATION & TRAINING Planning & Building 85,000 020 OTS-TRAFFIC OFFENDER PROGRAM Police 18,300
021 CATV FUND City Manager 220,000
022 PRCSA FEES & DONATION Parks, Rec & Comm Svcs 40,450 024 POLICE ACTIVITIES & PROGRAMS Police 690,690
025 IDB & EZ VOUCHER MONITORING Community Development 3,750 051 CAPITAL OUTLAY FUND Parks, Rec & Comm Svcs 655,000
053 CITY SERVICES
Agency Services Planning & Building 3,089,200
Police Services Police 10,000
110 STRONG MOTION INSTRUMENTATION Planning & Building 16,000 120 FIRE FACILITIES FUND Public Works 150,000
121 SPECIAL REPAIR/DEMOLITION Planning & Building 100,000 655 2018 SERIES TAX ALLOC BONDS Community Development 13,133,850 670 COSA RDA Community Development 72,340
671 COSA RDA OBLIGATION RETIREMENT Community Development 13,437,770 40,454,650

FUND EXPENDITURE BY FUND DEPARTMENT PROPOSED
FY 26-27
023 INMATE WELFARE FUND Police 1,302,000
026 CRIMINAL ACTIVITIES FUND Police 10,000
029 SPECIAL GAS TAX Public Works 17,825,750
031 AIR QUALITY IMPR. (AB 2766)
HR- Air Quality Improvement Human Resources 141,280
PBA- Air Quality Improvement Planning & Building 242,340 Fleet Services- Air Quality Improvement Public Works 33,400 074 CIVIC CENTER MAINTENANCE Public Works 3,590,000
111 OPIOID REMEDIATION City Manager 937,400
122 EMERGENCY AND HEALTH GRANTS Community Development 6,861,490 123 WORKFORCE INNOV AND OPP ACT Community Development 2,739,550 124 ORANGE COUNTY GRANTS Community Development 2,380
125 OES UASI Police 662,110
128 LAW ENFORCEMENT GRANTS Police 1,074,470
130 HOME PROGRAM FEDERAL GRANT Community Development 3,134,180 131 MISC GRANTS Community Development 134,590
133 HOUSING AUTHORITY-ISSUER FEE Community Development 841,500 135 COMMUNITY DEV BLOCK GRANT/ESG Community Development 5,170,300

SPECIAL REVENUE FUNDS

OTHER RESTRICTED FUNDS

OTHER RESTRICTED FUNDS GRAND TOTAL

City Council
19 –
8 6/16/2026

136 HOUSING AUTHORITY-VOUCHER HAP Community Development 65,001,000 137 HOUSING AUTHORITY- NED Community Development 2,800,000 138 HOUSING AUTHORITY-MS 5 Community Development 5,000,000 139 HOUSING AUTHORITY-NEW CONSTR Community Development 344,080 140 HOUSING AUTHORITY-VOUCHER ADM Community Development 6,418,980 143 CALHOME PROGRAM Community Development 181,240
144 PRISON TO EMPLOYMENT PROGRAM Community Development 60,660 145 RENTAL REHABILITATION GRANT Community Development 10,990 152 PUBLIC LIBRARY GRANT FUND Library 170
158 HOUSING & COMMUNITY DEV GRANTS Community Development 1,865,810 165 OFFICE OF SAFETY GRANT Police 234,000
166 US DOJ ASSET FORFEITURE FUND Police 585,000
167 US TREASURY ASSET FORFEITURE Police 100,000
169 RECREATION GRANTS FUND Parks, Rec & Comm Svcs 488,760 177 EMERGENCY RENTAL ASSISTANCE PG Community Development 6,280 179 ARPA EHV HAP Community Development 1,000,000
180 ARPA EHV ADMIN FEES Community Development 70,490
181 AMERICAN RESCUE PLAN ACT (ARPA) Finance & Mgmt Services 101,840 182 HOME-ARP PROGRAM FEDERAL GRANT Community Development 19,230 183 ARPA - CA FOR ALL YOUTH WDP Community Development 307,410 185 RENT STABILIZATION Community Development 3,356,120
186 HCV FSS Forfeitures Community Development 120,000
SPECIAL REVENUE FUNDS GRAND TOTAL 132,774,800
General Fund 435,036,500
Non-General Funds (Less Internal Service Funds) 351,140,080 Total Citywide FY26-27 Budget 786,176,580

City Council
19 –
9 6/16/2026

City Clerk’s Office
www.santa-ana.org/cityclerk
Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 16, 2026
TOPIC: Dissolve Five Commissions

AGENDA TITLE
Dissolve the Arts and Culture Commission; Environmental and Transportation Advisory Commission; Historic Resources Commission; Parks, Recreation, and Community Services Commission; and Youth Commission as Part of the Fiscal Year 2026/27 Budget Adoption

RECOMMENDED ACTION

1. Introduce for first reading an Ordinance amending various sections of the Santa Ana Municipal Code to dissolve five commissions, to remove references to the dissolved commissions, and to reallocate certain powers and duties.

ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA ANA AMENDING ARTICLE IV (OFFICERS, DEPARTMENTS, BOARDS AND COMMISSIONS) OF CHAPTER 2
(ADMINISTRATION) OF THE SANTA ANA MUNICIPAL CODE TO DISSOLVE

THE ARTS AND CULTURE COMMISSION, THE ENVIRONMENTAL AND

TRANSPORTATION ADVISORY COMMISSION, THE HISTORIC RESOURCES

COMMISSION, THE PARKS, RECREATION AND COMMUNITY SERVICES COMMISSION, AND THE YOUTH COMMISSION; AND RELATED
AMENDMENTS TO CHAPTER 30 (PLACES OF HISTORICAL AND
ARCHITECTURAL SIGNIFICANCE), CHAPTER 33 (STREETS, SIDEWALKS AND PUBLIC WORKS), AND CHAPTER 41 (ZONING) TO REALLOCATE

COMMISSION POWERS AND DUTIES AND TO REMOVE REFERENCES TO

THE DISSOLVED COMMISSIONS

2. Adopt a Resolution Pertaining to Compensation for Existing City Boards and Commissions
RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REPEALING RESOLUTION NO. 2023-093 AND

SETTING COMPENSATION FOR CITY BOARDS AND COMMISSIONS

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June 16, 2026

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GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
On June 2, 2026, City Council unanimously approved for first reading Ordinance No.

NS-3096, approving the budget for Fiscal Year 2026-27. As part of that budget approval, and as previously discussed during several Budget Workshops, five commissions have been recommended to be dissolved: Arts and Culture Commission, Environmental and Transportation Advisory Commission (ETAC), Historic Resources Commission, Parks, Recreation, and Community Services Commission, and Youth Commission.

The proposed ordinance removes Division Nos. 4, 6, 7, 8, and 9 from Article IV (Officers, Departments, Boards and Commissions) of Chapter 2 (Administration) of the Santa Ana Municipal Code (SAMC) to dissolve the above referenced five commissions.

Additionally, language has been added to Division 12 (Community Development Commission) and Division 5 (Planning Commission) of Article IV, Chapter 2, SAMC, to absorb the duties of the Arts and Culture Commission and the Historic Resources Commission, respectively.

The proposed ordinance also amends a provision of Article VII (Regulation of the Planting, Maintenance, and Removal Trees) of Chapter 33 (Streets, Sidewalks and Public Works) of the SAMC to replace a reference to the ETAC with the Executive Director of Public Works.

In addition, the proposed ordinance replaces each instance of “historic resources commission” with “planning commission” in SAMC Chapter 30 (Places of Historical and Architectural Significance), removes a reference to the historic resources commission in Section 41-653 of Division 1 (Generally) of Article V (Conditional Use Permits, Variances, Minor Exceptions, Amendments, and Development Project Plan Approvals) of Chapter 41 (Zoning) of the SAMC, and amends Table 1A of Division 1 (General Provisions) of Article XIX (The Transit Zoning Code, Specific Development No. 84) of SAMC Chapter 41 to replace “historic resources commission” with “planning commission.”
Pursuant to SAMC Section 2-325(1), the City Council has set compensation for City boards and commissions by resolution (Resolution No. 2023-093). The dissolution of the five commissions necessitates an updated resolution setting the compensation for the six remaining boards, commissions, and committees.

Nothing precludes the City Council from evaluating the purpose of, or need for, any board or commission in the future and re-introducing them at a later date.

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ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
There is no fiscal impact associated with these actions. Approval of the ordinance and resolution aligns with the adopted FY2026/27 budget.

EXHIBIT(S)

1. Ordinance

2. Resolution
Submitted By: Jennifer L. Hall, City Clerk
Approved By: Alvaro Nuñez, City Manager

City Council
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3 6/16/2026

Ordinance No. NS-XXXX

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ORDINANCE NO. NS-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA AMENDING ARTICLE IV (OFFICERS,

DEPARTMENTS, BOARDS AND COMMISSIONS) OF
CHAPTER 2 (ADMINISTRATION) OF THE SANTA ANA

MUNICIPAL CODE TO DISSOLVE THE ARTS AND

CULTURE COMMISSION, THE ENVIRONMENTAL AND

TRANSPORTATION ADVISORY COMMISSION, THE

HISTORIC RESOURCES COMMISSION, THE PARKS,

RECREATION AND COMMUNITY SERVICES
COMMISSION, AND THE YOUTH COMMISSION ; AND
RELATED AMENDMENTS TO CHAPTER 30 (PLACES OF

HISTORICAL AND ARCHITECTURAL SIGNIFICANCE ),
CHAPTER 33 (STREETS, SIDEWALKS AND PUBLIC
WORKS), AND CHAPTER 41 (ZONING) TO REALLOCATE

COMMISSION POWERS AND DUTIES AND TO REMOVE

REFERENCES TO THE DISSOLVED COMMISSIONS

WHEREAS, the City of Santa Ana currently has ten boards and commissions;

WHEREAS, vacant board and commission member positions can be hard to fill;

WHEREAS, all City boards and commissions need a quorum of their respective members to hold a meeting pursuant to the Brown Act;

WHEREAS, several of the City boards and commissions have had difficulty keeping quorum due to absences and/or vacant positions;

WHEREAS, City employees staff the boards and commissions in various capacities, prepare the agendas, and facilitate the meetings; and

WHEREAS, during the budget process for FY26 -27, the City Council determined that five commissions could be dissolved and their duties reassigned to other boards and commissions.

THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS:

Section 1. That Division 4 of Article IV of Chapter 2 of the Santa Ana Municipal Code be, and the same is hereby, repealed in its entirety, and that the Parks, Recreation, and Community Services Commission is hereby dissolved.

Section 2. That Division 6 of Article IV of Chapter 2 of the Santa Ana Municipal Code be, and the same is hereby, repealed in its entirety, and that the Historic Resources Commission is hereby dissolved.

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Section 3. That Division 7 of Article IV of Chapter 2 of the Santa Ana Municipal Code be, and the same is hereby, repealed in its entirety, and that the Youth Commission is hereby dissolved.

Section 4. That Division 8 of Article IV of Chapter 2 of the Santa Ana Municipal Code be, and the same is he reby, repealed in its entirety, and that the Arts and Culture Commission is hereby dissolved.

Section 5. That Division 9 of Article IV of Chapter 2 of the Santa Ana Municipal Code be, and the same is hereby, repealed in its entirety, and that the Environmental and Transportation Advisory Commission is hereby dissolved.

Section 6. That Section 2-621 of Division 12 (Community Development Commission) of Article IV of Chapter 2 of the Santa Ana Municipal Code be amended to read as follows (additions underlined, deletions in strikethrough):

Sec. 2-621. – Commission created; composition.

There is hereby created the community development commission, originally named the community redevelopment and housing commission, consisting of seven (7) members, except as otherwise provided in section 2 -626. The community development commission shall serve both in the capacity of a community redevelopment commission pursuant to Section 33201 and 33202 of the Health and Safety Code of the State of California, and in the capacity of a housing commission pursuant to Section 34291 and 34292 of said Health and Safety Code, and as an advisory body to the city manager and the city council concerning arts and cultural issues in the city.

Section 7. That Section 2-350.2 of Division 5 of Article IV of Chapter 2 is hereby amended to add subsections (f) through ( m) and read as follows (additions underlined and deletions in strikethrough):

Sec. 2-350.2 - Planning commission—Powers and duties.

The planning commission shall have the power and be required to:
a) Periodically review the city's general plan;
b) Make studies and plans for future civic land use, including use as public recreation facilities;
c) Annually review the city's capital improvement program solely for consistenc y with the general plan;
d) Exercise such functions as to land subdivisions, zoning and other city planning as may be prescribed by ordinance; and
e) By its own motion, make such studies and investigations as it may deem necessary for the formulation of planning and land use policies and report its findings and recommendations to the city council or the city manager, or to both

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such authorities, as it may see fit.;
f) Consider all matters that may be referred to it by the city council or the city manager and shall render its recommendations, counsel and advice in regards thereto;
g) Carry out those duties enumerated in chapter 30 of this Code regarding places of historical and architectural significance;
h) Advise and make recommendations to the city council on applications for properties to be included in financial incentive programs participated in by the city for the preservation of historic resources;
i) Advise and make recommendations to the city council and other city boards and commissions regarding historical projects and property; j) Recommend to the city council policies and regulations regarding the protection, reuse and rehabilitation of historical property;
k) Recommend to the city council programs for the protection, retention and use of historic resources including utilizing federal, state, local and/or private funding sources and mechanisms, such as Certified Local Government Program, Mills Act Contracts, and the state Historic Building Code;
l) Recommend to the city council programs that confer recognition upon the owners of designated historic resources; and
m) Encourage public understanding and involvement in his toric and architectural heritage.

Section 8. That Chapter 30 (Places of Historical and Architectural Significance) be amended to read as follows (additions underlined and deletions in strikethrough):

Sec. 30-1. - Register of historical properties.

The historic resources planning commission may, by resolution and at a noticed public hearing, designate as historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in section 30-2. The commission secretary shall maintain a register which shall consist of copies of each such resolution and which shall be known as the city register of historical properties. The historic resources planning commission may at any time repeal, revise, or modify any such resolution upon reconsideration of the historical or architectural importance of the places therein described.

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Sec. 30-1.5. - Definitions.

Certificate of appropriateness means the method by which the historic resources planning commission approves modifications to a historic property pursuant to section 30-6.

Dangerous building shall have the same definition as the Uniform Code for the Abatement of Dangerous Buildings which may from time to time be amended.

Historic property shall include a building, structure, object or site designated as having historical significance and listed on the federal, state or local register of historical properties, as well as those contributing properties located in an historic district.

Local historic district means a collection or group of historic properties within a defined area.

Modification means any change, alteration, restoration, remodeling, rehabilitation, construction, or relocation of the physical exterior of a historic structure. Modification shall not include painting.

Sec. 30-2. - Criteria for selection.
(a) Any person or group may request a building, or part thereof, structure, object or site, to be designated to be included on the city register of historical properties (called "register" in this section). The applicant must submit documentation that demonstrates how the nominated building, structure, object or site satisfies the criteria for designation. A building, structure, object, or site may be designated for inclusion on the register if the building, structure, object or site is fifty (50) or more years old and if the commission finds that one (1) or more of the following conditions are met:
(1) Buildings, structures or objects with distinguishing characteristics of an architectural style or period, that exemplify a particular architectural style or design features;
(2) Works of notable architects, builders, or designers whose style influenced architectural development;
(3) Rare buildings, structures, or objects or original designs; (4) Buildings, structures, objects or sites of historical significance which include places:
a. Where important events occurred;
b. Associated with famous people, original settlers, renowned organizations and businesses;
c. Which were originally present when the city was founded; or

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d. That served as important centers for political, social, economic, or cultural activity.
(5) Sites of archaeological importance;
(6) Buildings or structures that were connected with a business or use which was once common, but is now rare.
(b) The owner of a property(s) must be notified of its nomination upon receipt of an application by the planning and building agency. Upon adoption and placement of the property on the register, the resolution of designat ion shall be recorded with the county recorder's office pursuant to California Public Resources Code section 5029, as it may be amended from time to time.

Sec. 30-2.1. - Criteria for selection; exceptions.

A building, structure, object or site less than fifty (50) years old may be nominated provided that it can be proven to be of exceptional significance as outlined in subsections 30-2(a)(1)—(6).

Sec. 30-2.2. - Categorization.

The historic resources planning commission shall, by resolution and at a duly noticed public hearing, place all buildings, structures, objects, or sites on the city register of historical properties in one (1) of the following categories based upon the criteria for each category:
(1) Landmark category.
a. The building, structure, object or site is on the national register or appears to be eligible to be placed on the register; or
b. The building, structure, object or site is on the state register or appears to be eligible to be placed on the register; or
c. The building, structure, object or site has an historical/cultural significance to the city; or
d. The building, structure, object or site has a unique architectural significance.
(2) Key category.
a. The building, structu re, object or site has a distinctive architectural style and quality; or
b. The building, structure, object or site is characteristic of a significant period in the history of the city; or
c. The building, structure, object or site is associated with a significant person or event in the city.
(3) Contributive category. The building, structure, object or site contributes to the overall character and history of a neighborhood or district and is a good example of period architecture.

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The historic resources planning commission may after a duly noticed public hearing revise, or modify any such categorization upon reconsideration of the historical or architectural importance of the places therein described.

Sec. 30-2.3. - Removal from the city register of historical properties. (a) Any owner of a historic property may apply to the city for removal from the city register of historical properties. The historic resources planning commission shall by adoption of a resolution, following a duly noticed public hearing, remove the historic property from the city register of historical properties if the historic property meets one or more of the following:
(1) The building, structure, object or site does not meet the criteria for being placed on the city register of historical properties; or
(2) Discovery of information subsequent to placement on the register of historical properties regarding the significance of the building, structure, object or site, such that the criteria for placement on the city register of historical properties is not met; or
(3) The building, structure, object or site has been substantially damaged or destroyed by a catastrophic event such that it no longer meets the criteria for placement on the city register of historical properties; or (4) There has been a loss of the integrity of the building, structure, object or site, provided the loss of integrity was not the result of any illegal act or willful neglect by the owner or agent of the owner; or
(5) The owner proves that he/she would have no economically viable use of the property unless the building, structure, object or site is removed from the register of historic properties.
(b) The historic resources planning commission shall give notice of its decision, which shall be final unless timely appealed pursuant to section 30-8.

Sec. 30-2.4. - Same—Filing fees.

Every application under this chapter to designate a building, or part thereof, structure, object or site for inclusion on the city register of historical properties or appeal to the city council shall be accompanied by a filing fee. No application shall be accepted for filing without the required fee, except that all governmental agencies are exempt from the fee requirement. The city council shall from time to time by resolution adopt a schedule of fees to be charged, a copy of which shall be maintained in the office of the planning department.

Sec. 30-3. - Application of state historical building code.

Any building or structure designated as having historical or architectural importance by inclusion in the city register of historical properties shall be deemed a "qualified historical building or structure" for purposes of applying the state historical building code, as set forth in Part 2.7 (commencing with Section 18950) of Division 13 of the Health and Safety Code of the State of California and Part 8 of Title 24 of the California Administrative Code. The city's building official is authorized to apply the said state historical building code to any such building or structure.

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Sec. 30-4. - Local historic districts.
(a) The historic resources planning commission, after public hearing noticed and held in the manner prescribed by Section 37628 of the Health and Safety Code of the state, may, recommend that the city council designate an area within the city as a local historic district.
(b) A local historic district shall be designated only if it meets one or more of the following standards:
(1) The area constitutes a distinct section of the city and has special character, historical, architectural, or aesthetic interest and value. (2) The area provides significant examples of architectural values of the past or landmarks in the history of architecture.
(3) The area serves as a reminder of past eras, events, or persons important in the history of the city, the county, the state or the United States of America or illustrates past living styles for future generations to observe, study, or inhabit. (4) The area is the site of a historically or culturally significant ground, garden, or object.
(c) The city council, after receiving the recommendation from the historic resources planning commission, may by resolution designate the recommended area as a local historic district. At the time of the creation of the local historic district, the city council may adopt design guidelines for the district.

Sec. 30-5. - Historical rehabilitation financing program.

The standards set forth in sections 30-2 and 30-4 shall constitute criteria for selection of historical properties eligible for financing and criteria for the selection of historical rehabilitation areas, pursuant to the provisions of the Marks Historical Rehabilitation Act of 1976, as set forth in Part 10 (commencing with Section 37600) of Division 24 of the Health and Safety Code of the State of California, for the purposes of any historical rehabilitation financing program which may be undertaken pursuant to that act by the City of Santa Ana or the community redevelopment agency of the City of Santa Ana.

Sec. 30-6. - Modification of historic properties.
(a) No exterior physical modifications, other than those identified by the historic resources planning commission for administrative approval by city staff, shall be permitted with respect to an historic structure until the historic resources planning commission approves such request at a duly noticed public hearing and issues a certificate of appropriatene ss. The planning historic resources commission shall issue the certificate of appropriateness upon finding that the proposed modification(s) does not substantially change the character and integrity of the historic property. The minutes of the historic res ources planning commission meeting shall serve as the official record.
(b) An application for exterior modification of a historic structure shall be accompanied, except for those subject to administrative approval by city staff

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pursuant to subsection (a), by payment of an application fee set in such amounts as shall be established by resolution of the city council. (c) The building official may determine a historic property is a dangerous building.

Modifications as determined necessary by the building of ficial to correct the dangerous building shall not require a certificate of appropriateness. Modifications shall be consistent with the overall architectural design and historic character of the structure and blend in with the surrounding environment. (d) The historic resources planning commission may impose and/or recommend conditions of approval deemed reasonable and necessary on applications that are subject to review and approval or recommendation by the historic resources planning commission.

Sec. 30-7. - Demolition of historic properties.
(a) An application of intent to demolish an historic property shall be submitted to the planning and building agency. At a duly noticed public hearing, the historic resources planning commission must revi ew all applications for demolition permits for historic properties. The commission shall investigate all feasible alternatives to demolition. These alternatives include, but are not limited to:
(1) Seeking private citizens, local trusts, and other financial sources who may be willing to purchase the structure for restoration or relocation. (2) Publicizing the availability of the structure for purchase for restoration or relocation purposes.
(3) Exploring possible sites for relocation of the historic bui lding if on -site preservation is not possible. Any structure relocated under this section shall not require a residential relocation permit, pursuant to section 41 -620 of this Code.
(4) Suggesting to the city council that the city purchase the structure when private preservation or relocation is not feasible.
(b) All of the above items are to be completed within two hundred and forty (240) days from the date of application submittal. After two hundred and forty (240) days, or at the conclusion of the environmental review period, whichever is longer, a demolition permit must be issued. Prior to the issuance of the demolition permit, the applicant shall provide, to the reasonable satisfaction of the commission, and at the applicant's sole cost, complete photo-documentation of archival quality and historical profile of the structure to be demolished, prior to the scheduling of the demolition.
(c) The building official may determine a historic property is a dangerous building.

Such determination allows the waiver of historic resources planning commission review and the required review period for demolition if the historic property is declared a dangerous building.

Sec. 30-8. - Appeals from decisions of historic resources planning commission. (a) An appeal from a decision or requirement of the historic resources planning commission may be made by any interested party, individual or group.

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(b) Any appeal made under the terms of this section shall be made within ten (10) calendar days following the date of the decision by the historic resources planning commission, and shall be accompanied by payment of an appeal fee set in such amounts as shall be established by resolution of the city council. Further, such appeal period shall end at 5:00 p.m. on the tenth calendar day following such date of the decision by the historic resources planning commission. If such tenth calendar day ends on a Saturday, Sunday or holiday, the ten-day period shall end at 5:00 p.m. on the next regular business day. The formal action by the historic resources planning commission shall become effective on the day following the first regularly scheduled council meeting after the ten -day appeal period, unless the city council, in compliance with section 41-643, section 41-644 or section 41- 645, holds a public hearing on the matter, then the decision of the city council will become effective on the day following the hearing and decision by the city council. (c) All appeals shall be in writing and on forms provided by the planning department and shall specify wherein there was any error of decision or requirement by the commission. Furthermore, a copy of such appeal shall be filed with the planning department and the city clerk of the council.
(d) Upon receipt of such appeal, the planning department shall set the matter for hearing by the council.
(e) All appeals shall be heard in the same manner as prescribed for the original hearing.
(f) Upon filing of an appeal, the planning department shall forward to the city clerk of the council a copy of the written findings, maps, papers and exhibits upon which the decision of the historic resources planning commission was based. (g) The council may, after public hearing, affirm, reverse, change, or modify the original decision and may make any additional determination it shall co nsider appropriate within the limitations imposed by this chapter. Such decision shall be filed with the city clerk of the council , and the city planning department; one (1) copy thereof shall be sent to the applicant.

Sec. 30-9—30-24. - Reserved.

Section 9. That Section 30 -27 (Authority) of Division 1 of Chapter 30 shall be amended to read as follows (additions underlined and deletions in strikethrough:

Sec. 30-27. - Authority.

The historic resources planning commission reviews and forwards recommendations for historic property preservation agreements to the city council for consideration. approval consistent with the procedures established in section 2- 374(c).

Section 10. That Section 33 -185 of Article VII of Chapter 33 of the Santa Ana Municipal Code be amended to read as follows (additions underlined, deletions in strikethrough):

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Sec. 33-185 – Street tree species to be planted.

The following list constitutes the official street tree species for the City of Santa Ana. Species other than those included in this list may be planted as street trees with the consent from the environmental and transportation advisory committee executive director of public works.

COMMON NAME BOTANICAL NAME
CATEGORY I* •Queen Palm
•Crape Myrtle
•Arecastrum
•romanzoffianum
•Lagerstroemia indica
CATEGORY II** •Australian Willow
•New Zealand Christmas
•Bradford Pear
•Lavender Bloom
•Geijera parviflora
•Metorsiderso excelsus
•Pyrus calleryanan
•Tabebuia ipe
CATEGORY III† •Peppermint Tree
•Bottle Tree
•Modesto Ash
•Jacaranda
•Magnolia-Samuel
•Summers
•Canary Island Pine
•Sycamore, London
•Plane
•Sycamore, California
•Oaks, Holly
•Oaks, Coastal Live Oak
•Brisbane Box
•Gold Medallion Tree
•Agonis flexuosa
•Brachychiton populneus
•Fraxinus velutina
•Jacaranda mimosifolia
•Magnolia grandiflora
•Pinus canariensis
•Platanus acerifolia
•Platanus racemosa
•Quercus ilex
•Quercus agrifolia
•Tristania conferta
•Cassia leptophylla
CATEGORY IV‡ •Camphor Trees
•Tulip Tree
•Chinese Elm
•Cinnamomum camphora
•Liriodenfron Tulipifera
•Ulmus Parvifolia
* 2½—4 Foot Parkways
** 4—5 Foot Parkways
† 5—8 Foot Parkways
‡ 8 Foot or Larger Parkways

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Section 11. That Section 41-653 of Division 1 of Article V of Chapter 41 of the Santa Ana Municipal Code be, and the same is hereby, amended to read, in its entirety (additions underlined, deletions in strikethrough):

Sec. 41-653. - Same—Review.

(a) Executive director review. An application for reasonable accommodation shall be reviewed by the executive director of the planning and building agency, or his or her designee, as appropriate.

(b) Decision. Within sixty (60) days of acceptance of the application as complete, the executive director shall issue a written decision to grant, grant with modifications, or deny an application for reasonable accommodation in accordance with section 41-654 and shall notify the applicant of the decision. The written decision shall expl ain in detail the basis of the decision, including the executive director's findings on the factors stated in section 41-654. If necessary to reach a determination on the request for reasonable accommodation, the executive director may request additional information from the applicant consistent with the Fair Housing Amendments Act of 1988 and the California Fair Employment and Housing Act, specifying in detail the information that is required. If a request for additional information is made, the sixty-day period to issue a decision is stayed until the applicant responds to the request.

(c) Referral to other reviewing authority. The executive director shall have the authority, upon his or her sole discretion, to refer any reasonable accommodation application to any other reviewing authority, including, but not limited to, the planning commission, or the zoning administrator, or the historic resources commission, to review the reasonable accommodation application and make a determination on the same in accordance with the applicable sections.

Section 12. That Table 1A of Division 1 of Article XIX of Chapter 41 of the Santa Ana Municipal Code be amended to read as follows:

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Section 13. If any section, subsection, sentence, clause or phrase or portio n of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Sa nta Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause or phrase or portion thereof irrespective of the fact that any one or more section, subsection, sentence, clause or phrase or portions be decla red invalid or unconstitutional.

Section 14. This ordinance shall become effective thirty (30) days after its adoption.

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Section 15. The City Clerk shall certify the adoption of this ordinance and shall cause the same to be published as required by law.

ADOPTED this day of , 2026.

__________________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney

By:________________________
Laura A. Rossini
Chief Assistant City Attorney

AYES: Councilmembers

NOES: Councilmembers

ABSTAIN: Councilmembers

ABSENT: Councilmembers

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2026.

Date:

Jennifer L. Hall
City Clerk
City of Santa Ana

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RESOLUTION NO. 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA REPEALING RESOLUTION NO. 2023-093

AND SETTING COMPENSATION FOR CITY BOARDS AND

COMMISSIONS

WHEREAS, the City of Santa Ana has City Boards and Commissions whose members carry out the various tasks delegated by the City Council to such Boards and Commissions or make recommendations to the City Council on various items within the purview of the Board or Commission; and

WHEREAS, Resolution No. 2023 -093 set compensation for all City boards and commissions; and

WHEREAS, the City Council of the City of Santa Ana has now determined to dissolve five Boards and Commissions; and

WHEREAS, there is now a need to remove the compensation provisions for the dissolved Boards and Commissions.

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The foregoing recitals are true and correct and are hereby incorporated by reference.

Section 2. Resolution No. 2023-093 is hereby repealed in its entirety.

Section 3. The Santa Ana City Council hereby sets compensation for the following City Boards and Commissions as follows:

A. Community development and housing commission. One hundred dollars ($100.00) per meeting, three (3) meetings maximum per month, plus twenty dollars ($20.00) per month automobile allowance.

B. Personnel board. One hundred dollars ($100.00) per meeting.

C. Planning commission. One hundred dollars ($100.00) per meeting, three (3) meetings maximum per month, plus fifty dollars ($50.00) per mont h automobile allowance.

D. Police oversight commission. O ne hundred dollars ($100.00) per meeting , four (4) meetings maximum per month.

E. Rental housing board. One hundred dollars ($100.00) per meeting, plus fifty dollars ($50.00) per month automobile allowance.

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Resolution No. 2026-015

Page 3 of 3 ends

F. Transactions and use tax measure x citizen oversight committee. One hundred dollars ($100.00) per meeting. The number of compensated meetings shall be determined by the Resolution to establish a citizen oversight committee set forth in Resolution No. 2019-034 or as later amended.

Section 4. The compensation for City boards and commissions as outlined in Section 3 of this Resolution shall be effective July 1, 2026.

Section 5. This Resolution shall take effect upon the effective date of Ordinance No. NS-XXXX and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this _____ day of , 2026.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
ABSENT: Councilmembers

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Resolution No. 2026-015

Page 3 of 3 ends

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached Resolution No. 2026-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on , 2026.

Date:

Jennifer L. Hall
City Clerk
City of Santa Ana

City Council
20 –
19 6/16/2026

CITY ATTORNEY
Sonia R. Carvalho

CITY MANAGER
Alvaro Nuñez

CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M-31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Councilmember-Requested Item Report
DATE
June 16, 2026
TOPIC
City of Santa Ana opposition to the U.S. Environmental Protection Agency (EPA) proposal to rescind federal drinking water regulations and the drafting of a City ordinance requiring City Council approval of any change to City’s drinking water standards and regulations.

COUNCILMEMBER-REQUESTED ITEM TITLE
Discuss and Consider Directing the City Manager to Direct City Staff to: (1) Draft a Letter from the City of Santa Ana Expressing Opposition to the U.S. Environmental Protection Agency’s (EPA) Proposals to Rescind Federal Drinking Water Regulations for Certain Contaminants in Drinking Water; and (2) Draft a City Ordinance to Require City Council Approval of any Change to the City’s Drinking Water Standards and Regulations.

DISCUSSION
Numerous studies have shown that exposure to per- and polyfluoroalkyl substances (PFAS) can decrease our immunity and increase our risk for certain types of cancer, birth defects, liver disease, and kidney disease.

On December 16, 1974, President Gerald Ford signed The Safe Drinking Water Act (SDWA) into law. The SDWA is the primary federal law that is intended to ensure safe drinking water for the American public. The SDWA requires the EPA to generate scientifically based standards that apply to all water supplies that serve 25 or more customers and create a process for setting new standards.

On April 10, 2024, President Joe Biden issued the first-ever national and legally enforceable Safe Drinking Water Act standard for PFAS to protect communities from exposure to harmful ‘forever chemicals.’ The rule sets health safeguards, requires public water systems to monitor and reduce the levels of PFAS in our nation's drinking water, and requires the notification of the American public of any exceedances of those levels.

On May 18, 2026, the EPA announced major revisions to federal drinking water Maximum Contaminant Levels (MCLs) for two PFAS compounds: perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS), and a proposal to rescind drinking water standards for

City Council
21 –
1 6/16/2026

CITY ATTORNEY
Sonia R. Carvalho

CITY MANAGER
Alvaro Nuñez

CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M-31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Councilmember Requested Item

Page 2 of 2 ends

four additional PFAS compounds: perfluorohexane sulfonic acid (PFHxS), hexafluoropropylene oxide dimer acid (HFPO-DA), and perfluorononanoic acid (PFNA), as well as Hazard Index mixtures of these three PFAS chains, plus perfluorobutane sulfonic acid (PFBS).

The recent proposals from the EPA threaten to increase PFAS exposure for approximately 100 million people, cause thousands of deaths, and cause tens of thousands of serious illnesses.

The recent proposals from the EPA are also in extreme conflict with President Biden’s Cancer Moonshot and its commitment to ending cancer as we know it, to Americans having access to clean, safe, drinking water, and to advancing environmental justice by protecting communities that are most exposed to toxic chemicals.

The EPA will accept written comments on the proposed rules in the public docket until July 20, 2026, and it is important for the City of Santa Ana to express opposition to the EPA’s proposals that threaten the quality and safety of our city’s and our nation’s drinking water.

Currently, the State of California has drinking water requirements and standards that exceed those of the EPA. The recent proposals from the EPA have demonstrated that government requirements and standards for drinking water can change and even diminish. The City of Santa Ana has won awards for having the world’s best-tasting, highest-quality tap water, and we need to take action to enact City regulations to protect our communities from exposure to toxic chemicals in our City’s precious drinking water. Adoption of an ordinance that would codify the requirement for City staff to bring any proposed change in the standard of quality and safety of our City’s drinking water to the City Council for public review and scrutiny and approval by the City Council before implementation would allow our City to protect our City’s drinking water in spite of changes to federal and state regulations and standards.

I therefore request that the City Council direct the City Manager to direct City staff to: (1) draft a letter from the City of Santa Ana expressing opposition to the U.S. Environmental Protection Agency (EPA) proposal to rescind federal drinking water regulations for certain contaminants in drinking water and (2) draft a City ordinance to require City Council approval of any change to City’s drinking water standards and regulations.

SUBMITTED BY
Councilmember Phil Bacerra

EXHIBIT

1. Draft Letter to the EPA

City Council
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2 6/16/2026

SANTA ANA CITY COUNCIL
Valerie Amezcua
Mayor
[email protected]
David Penaloza
Mayor Pro Tem - Ward 6
[email protected]
Thai Viet Phan
Ward 1
[email protected]
Benjamin Vazquez
Ward 2
[email protected]
Jessie Lopez
Ward 3
[email protected]
Phil Bacerra
Ward 4
[email protected]
Johnathan Ryan Hernandez
Ward 5
[email protected]
June 17, 2026
U.S. Environmental Protection Agency
Office of Water
1200 Pennsylvania Avenue, NW
Washington, DC 20460
Re: Opposition to Proposed Rescission of Drinking Water Regulations for PFHxS, PFNA, HFPO-DA (GenX), and Hazard Index Mixtures – Docket No. EPA-HQ-OW-2025- 0654
Dear Administrator and EPA Staff:

On behalf of the City of Santa Ana, California, I respectfully submit this letter opposing the U.S. Environmental Protection Agency’s proposed rescission of drinking water regulations for perfluorohexane sulfonic acid (PFHxS), perfluorononanoic acid (PFNA), hexafluoropropylene oxide dimer acid and its ammonium salt (HFPO-DA, commonly known as GenX chemicals), and Hazard Index mixtures involving these compounds.

The proposed action would eliminate enforceable federal drinking water standards for contaminants that have been identified as presenting significant risks to human health.

The City of Santa Ana has made a substantial commitment to protecting public health through the planning, design, construction, and operation of advanced treatment facilities intended to remove PFAS compounds from drinking water. These investments reflect our responsibility to provide safe, reliable, and high-quality drinking water to the residents and businesses we serve.

While we recognize the EPA’s stated intent to revisit the regulatory process, the proposed rescission creates uncertainty for water systems and undermines the progress that communities across the nation have made in addressing PFAS contamination. Public water agencies require stable and predictable regulatory standards to effectively plan long-term infrastructure investments, secure funding, and maintain public confidence in the safety of drinking water supplies. The removal of established standards, even temporarily, risks sending the message that protections against known contaminants are no longer a national priority.

MAYOR
Valerie Amezcua

MAYOR PRO TEM
David Penaloza

COUNCILMEMBERS
Phil Bacerra
Johnathan Ryan Hernandez
Jessie Lopez
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

CITY MANAGER
Alvaro Nuñez

CITY ATTORNEY
Sonia R. Carvalho

CITY CLERK
Jennifer L. Hall

City Council
21 –
3 6/16/2026

SANTA ANA CITY COUNCIL
Valerie Amezcua
Mayor
[email protected]
David Penaloza
Mayor Pro Tem - Ward 6
[email protected]
Thai Viet Phan
Ward 1
[email protected]
Benjamin Vazquez
Ward 2
[email protected]
Jessie Lopez
Ward 3
[email protected]
Phil Bacerra
Ward 4
[email protected]
Johnathan Ryan Hernandez
Ward 5
[email protected]
The City is particularly concerned about the potential impact on public trust. Residents expect drinking water regulations to be based on the best available science and to provide consistent protection against contaminants that may increase the risk of cancer and other adverse health outcomes. Efforts to weaken or rescind existing standards may create confusion among the public and erode confidence in drinking water systems that are already investing significant resources to address these contaminants.

Santa Ana remains committed to removing PFAS from its water supplies and, regardless of changes at the federal level, our city will continue advancing treatment projects necessary to protect public health. However, local efforts are strengthened when supported by clear and enforceable federal standards that establish a consistent baseline of protection for all communities.

For these reasons, the City of Santa Ana respectfully urges the EPA to withdraw the proposed rescission and maintain enforceable drinking water protections for PFHxS, PFNA, HFPO-DA (GenX), and Hazard Index mixtures while continuing to evaluate emerging scientific information and regulatory approaches.

Thank you for the opportunity to provide comments on this important matter impacting our nation’s drinking water resources.

Sincerely,
Rodolfo Rosas, P.E.

Acting Executive Director of Public Works
City of Santa Ana
cc: Mayor and City Council
City Manager

City Council
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4 6/16/2026

HOUSING AUTHORITY 1 May 19, 2026
Minutes of the Special Meeting
of the Housing Authority
Santa Ana, California
May 19, 2026

CALL TO ORDER
MINUTES: Chair Amezcua called the Housing Authority Special Meeting to order at 8:46 P.M.

ATTENDANCE Authority Members Phil Bacerra
Johnathan Ryan Hernandez
Jessie Lopez
Thai Viet Phan
Benjamin Vazquez
Vice Chair David Penaloza
Chair Valerie Amezcua
City Manager Alvaro Nuñez
City Attorney Sonia R. Carvalho
Recording Secretary Jennifer L. Hall

ROLL CALL
MINUTES: Secretary Jennifer L. Hall conducted Roll Call.

Chair Amezcua, Vice Chair Penaloza, and Authority Members Bacerra, Hernandez, Lopez, Phan, and Vazquez were present.

ADDITIONS\DELETIONS TO THE HOUSING AUTHORITY AGENDA
MINUTES: None.

City Council
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HOUSING AUTHORITY 2 May 19, 2026
PUBLIC COMMENTS – Members of the public may address Housing Authority on items on the Housing Authority agenda.

MINUTES: None.

RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 through 3.

MINUTES: At 8:47 P.M., the Consent Calendar was considered.

MOTION: Authority Member Hernandez moved to approve staff recommendations on the following Consent Calendar Items: 1 through 3, seconded by Chair Amezcua.

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

AYES:

NOES:

ABSTAIN:

ABSENT:

AUTHORITY MEMBER BACERRA, AUTHORITY MEMBER

HERNANDEZ, AUTHORITY MEMBER LOPEZ, AUTHORITY

MEMBER PHAN, AUTHORITY MEMBER VAZQUEZ, VICE

CHAIR PENALOZA, CHAIR AMEZCUA
NONE
NONE
NONE
Status: 7 – 0 – Pass

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

2. Minutes of the Special Meeting of May 5, 2026
Department(s): City Clerk’s Office
Recommended Action: Approve minutes.

3. Purchase Order to Insight Public Sector, Inc. for MRI / HAPPY Software PHA Pro Housing Authority Management Software (Specification No. 26-016) (Non- General Fund)
Department(s): Community Development Agency

CONSENT CALENDAR

City Council
2 –
2 6/16/2026

HOUSING AUTHORITY 3 May 19, 2026
Recommended Action: Authorize a Purchase Order to Insight Public Sector, Inc. to provide MRI Software / HAPPY Software PHA Pro housing authority management software for a term beginning June 1, 2026 and expiring April 30, 2028, in an amount not to exceed $147,344.
**END OF CONSENT CALENDAR**

HOUSING AUTHORITY MEMBER COMMENTS
MINUTES: None.

ADJOURNMENT – Adjourn the Housing Authority meeting.

MINUTES: Chair Amezcua adjourned the Housing Authority Meeting at 8:47 P.M.

Respectfully submitted:
__________________________
Jennifer L. Hall, CMC
Secretary

City Council
2 –
3 6/16/2026

Community Development Agency
www.santa-ana.org/cd
Item # 3
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 16, 2026
TOPIC: Subordination Agreement and Lease Rider for FX Residences

AGENDA TITLE
Subordination Agreement and Lease Rider with the State of California Department of Housing and Community Development for FX Residences

RECOMMENDED ACTION

1. Authorize the Executive Director of the Housing Authority to execute a Subordination Agreement with the State of California Department of Housing and Community Development (“HCD”) and Shelter Providers of Southern California, Inc. DBA HomeAid Orange County | Los Angeles (“HomeAid”) to subordinate the Housing Authority’s $1,656,947 loan to a $3,006,567 senior permanent loan from HCD for FX Residences (Agreement No. A-2026-XXX).

2. Authorize the Executive Director of the Housing Authority to execute a Lease Rider with HCD and HomeAid to induce / allow HCD to make a $3,006,567 senior permanent loan for FX Residences (Agreement No. A-2026-XXX).

GOVERNMENT CODE §84308 APPLIES: Yes

DISCUSSION
On December 7, 2021, the Housing Authority approved a Loan Agreement in the amount of $1,656,947 and a ninety-nine (99) year Ground Lease with Shelter Providers of Orange County, Inc. DBA HomeAid Orange County (“HomeAid”) for the development of FX Residences, a 17-unit permanent supportive housing development located at 801, 807, 809, and 809½ East Santa Ana Boulevard (Exhibit 1). [After this approval, HomeAid changed their legal name to Shelter Providers of Southern California, Inc. and their business name to HomeAid Orange County | Los Angeles.] At that time, the Housing Authority also authorized the Executive Director to execute a future Subordination Agreement with a senior lender as may be required to complete the project financing.

The Housing Authority’s loan is secured by a Deed of Trust, Promissory Note, and Affordability Restrictions recorded against the project.

FX Residences was completed in July 2025 and provides permanent supportive housing for individuals and families experiencing homelessness and includes on-site supportive services provided by Mercy House. The project was developed on Housing Authority-

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Subordination Agreement and Lease Rider for FX Residences June 16, 2026

Page 2 ends

5 8
1 6
owned land through a 99-year Ground Lease with HomeAid and serves as an important component of the City’s success to reduce homelessness by over 25% since 2019.

Entering into an Agreement with the Housing Authority for the $1,656,947 loan, three (3) project-based vouchers, and a 99-year Ground Lease were instrumental in facilitating the development of the project and leveraging additional public and private investment. In May 2026, FX Residences received the Supportive Housing Development Award at the 2026 Affordable Housing Awards ceremony.

Following completion and stabilization of the project, HomeAid now needs to secure their permanent financing from the State of California Department of Housing and Community Development (“HCD”) through the State’s No Place Like Home (“NPLH”) Program. The NPLH Program was established by the State of California to finance permanent supportive housing for persons in need of mental health services and are experiencing homelessness, chronic homelessness, or who are at risk of chronic homelessness. HCD has approved a permanent loan in the amount of $3,006,567 to support the long-term operation and financial sustainability of FX Residences. As a condition of funding their loan, HCD requires the Housing Authority to execute a Subordination Agreement and Lease Rider in favor of HCD.

Subordination Agreement
The proposed Subordination Agreement with HCD and HomeAid is attached as Exhibit

2. Under the terms of the Subordination Agreement, the Housing Authority agrees to subordinate its existing $1,656,947 loan and related security interests to HCD’s larger, senior, permanent loan. HCD requires a first-priority lien position as a condition of providing their permanent financing for the project. The Subordination Agreement establishes that HCD’s deed of trust, regulatory agreement, and related loan documents will be senior to the Housing Authority’s Deed of Trust and loan documents. However, the Housing Authority’s Affordability Restrictions will remain senior and will not be subordinated to HCD’s loan. The proposed subordination is consistent with standard affordable housing financing requirements by HCD and it is required to facilitate the closing of HCD permanent financing for affordable housing developments across the State of California.

Lease Rider
The proposed Lease Rider to the Housing Authority’s Ground Lease is attached as Exhibit 3. Because FX Residences is located on land owned by the Housing Authority and leased to HomeAid through a 99-year long-term Ground Lease, HCD requires a Lease Rider as a condition of making its NPLH loan. The Lease Rider amends and supplements certain provisions of the Ground Lease to recognize HCD’s interests as a senior lender and to provide HCD with protections customarily required in connection with leasehold financing. Among other provisions, the Lease Rider acknowledges HCD’s loan and regulatory agreement, permits HCD to rely upon the Ground Lease as collateral for its financing, and establishes certain notice and cure rights in favor of HCD in the event of a default under the Ground Lease. The Lease Rider does not alter the Housing

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Subordination Agreement and Lease Rider for FX Residences June 16, 2026

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5 8
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Authority’s ownership of the property and does not change the underlying public purpose of the project.

Approval of the Subordination Agreement and Lease Rider will allow HomeAid to receive HCD’s permanent loan financing and complete the transition from construction financing to long-term permanent financing. The Housing Authority’s existing Affordability Restrictions and general public benefits associated with FX Residences will remain unchanged. Moreover, approval of these documents will help ensure the long-term financial stability and continued operation of the project as permanent supportive housing serving vulnerable residents.

If the Housing Authority does not approve the Subordination Agreement and Lease Rider, HCD will be unable to provide its NPLH loan of $3,006,567 for the project. This will jeopardize the project’s permanent financing structure, impair HomeAid’s ability to refinance their existing construction loan obligations, and negatively impact the long-term viability of FX Residences. While the Housing Authority's loan will become subordinate to HCD's senior loan, subordination was contemplated as part of the original financing structure and authorized by the Housing Authority on December 7, 2021. As such, staff recommends approval of the proposed Subordination Agreement and Lease Rider.

FISCAL IMPACT
There is no fiscal impact associated with approval of the Subordination Agreement and Lease Rider. The proposed actions do not increase the Housing Authority's existing loan commitment to FX Residences, require the expenditure of additional Housing Authority funds, or modify the terms of the Housing Authority's $1,656,947 loan.

EXHIBIT(S)

1. Housing Authority Staff Report from December 7, 2021

2. Subordination Agreement

3. Lease Rider
Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nuñez, City Manager

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3 6/16/2026

NPLH R1 Subord. Agrmt Page 1 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

FREE RECORDING IN ACCORDANCE

WITH CALIFORNIA GOVERNMENT
CODE SECTION 27383 and 27388.1.

RECORDING REQUESTED BY, AND
WHEN RECORDED, MAIL TO:

State of California
Department of Housing and
Community Development
P. O. Box 952052
Sacramento, CA 94252-2052
Attn: Legal Affairs Division
18-NPLH-12673

SUBORDINATION AGREEMENT

NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY

INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.

THIS SUBORDINATION AGREEMENT (the "Agreement") is dated as of June 16, 2026, for reference purposes only, and is entered into by and among the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic, (the "Junior Lienholder") and Shelter Providers of Southern California, Inc. DBA HomeAid Orange County Los Angeles, a California nonprofit public benefit corporation (the "Borrower"), and the Department of Housing and Community Development, a public agency of the State of California (the "Senior Lender").

RECITALS

A. Borrower is the owner of the leasehold estate in that real property described in Exhibit A attached hereto and made a part hereof (the "Property"). The Borrower has acquired and constructed a 17 unit multifamily residential rental development on the Property (the "Improvements"). The Property and the Improvements are sometimes referred to collectively as the "Development."

B. The Junior Lienholder has made a loan to the Borrower in the principal sum of One Million Six Hundred Fifty Six Thousand Nine Hundred Forty Seven and No/100 Dollars ($1,656,947.00) (the "Junior Lienholder Loan"). The Junior Lienholder Loan is evidenced by a certain promissory note (the “Junior Lienholder Note”), secured by a certain deed of trust (the EXHIBIT 2

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NPLH R1 Subord. Agrmt Page 2 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

“Junior Lienholder Deed of Trust”) recorded on January 14, 2022 , as Instrument No. 2022000020118 in the Official Records of Orange County, California (the “Official Records”).

C. The Junior Lienholder and Borrower have also entered into a certain Affordability Restrictions on Transfer of Property , affecting the use of the Development, recorded on January 14, 2022, as Instrument No. 2022000020116 in the Official Records (the “Affordability Restrictions”).

D. The Junior Lienholder and Borrower have also entered into a certain Loan Agreement, affecting the use of the Development, recorded on January 4, 2023, as Instrument No. 2023000001784 in the Official Records (the “Loan Agreement”).

E. The Junior Lienholder Deed of trust and Loan Agreement are collectively referred to as the (“Junior Lienholder Documents”).

F. In order to finance the development of the Improvements, the Senior Lender has agreed to loan the Borrower a sum not to exceed Three Million Six Thousand Five Hundred Sixty Seven and No/100 Dollars ($3,006,567.00) (the "NPLH Loan"), subject to the terms and conditions of: (i) a regulatory agreement restricting the use and occupancy of the Development and the income derived therefrom which shall be dated as of even date herewith and recorded concurrently herewith as an encumbrance on the Property in the Official Records (the "NPLH Regulatory Agreement"), (ii) the Capitalized Operating Subsidy Reserve Agreement (the “COSRA”) if applicable, and (iii) other loan documents. The NPLH Loan will be evidenced by a promissory note (the "NPLH Note"), the repayment of which will be secured by, among other things, a deed of trust by Borrower as trustor, to Senior Lender as beneficiary recorded concurrently herewith as an encumbrance on the Property in the Official Records (the "NPLH Deed of Trust") and by such other security as is identified in other loan documents. The NPLH Regulatory Agreement, the COSRA, the NPLH Note, the NPLH Deed of Trust and all other documents evidencing or securing the NPLH Loan are collectively referred to herein as the “Senior Lender Documents.”

G. The Senior Lender is willing to make the NPLH Loan provided the Senior Lender Documents are liens, claims or charges upon the Development prior and superior to the Junior Lienholder Documents, and provided that the Junior Lienholder specifically and unconditionally subordinates and subjects the Junior Lienholder Documents to the liens, claims or charges of the Senior Lender Documents.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in order to induce the Senior Lender to make its NPLH Loan, it is hereby declared, understood EXHIBIT 2

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NPLH R1 Subord. Agrmt Page 3 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

and agreed as follows:

1. The Senior Lender Documents and any and all renewals, modifications, extensions or advances thereunder or secured thereby (including interest thereon) shall unconditionally be and remain at all times liens, claims, or charges on the Development prior and superior to the Junior Lienholder Documents, and to all rights and privileges of the Junior Lienholder thereunder; and the Junior Lienholder Documents, together with all rights and privileges of the Junior Lienholder thereunder are hereby irrevocably and unconditionally subject and made subordinate to the liens, claims or charges of the Senior Lender Documents.

2. This Agreement shall be the whole and only agreement with regard to the subordination of the Junior Lienholder Documents, together with all rights and privileges of the Junior Lienholder thereunder, to the liens, claims or charges of the Senior Lender Documents, and this Agreement shall supersede and cancel any prior agreements to subordinate the claims, liens or charges of, but only insofar as would affect the priority between the claims, liens or charges of the Junior Lienholder Documents to the Senior Lender Documents including, but not limited to, those provisions, if any, contained in the Junior Lienholder Documents, which provide for the subordination of the lien or charge thereof to another lien or charge on the Property or the Improvements.

3. The Junior Lienholder declares, agrees and acknowledges that:

(a) The Junior Lienholder consents and approves (i) all provisions of the Senior Lender Documents, and (ii) all agreements among the Junior Lienholder, Borrower and Senior Lender for the disbursement of the proceeds of the NPLH Loan, including without limitation any loan escrow agreements which have been provided to the Junior Lienholder for review;

(b) The Senior Lender, in making disbursements of the NPLH Loan pursuant to the NPLH Note or any other agreement, is under no obligation or duty to, nor has the Senior Lender represented that it will, see to the application of such proceeds by the person or persons to whom the Senior Lender disburses such proceeds, and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part;

(c) That none of the execution, delivery or recordation of any of the Senior Lender Documents, or the performance of any provision, condition, covenant or other term thereof, will conflict with or result in a breach of the Junior Lienholder Documents or the Junior Lienholder Note; and

(d) The Junior Lienholder intentionally and unconditionally waives, relinquishes, EXHIBIT 2

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NPLH R1 Subord. Agrmt Page 4 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

subjects and subordinates the claims, liens or charges upon the Developme nt of the Junior Lienholder Documents, all present and future indebtedness and obligations secured thereby, in favor of the claims, liens or charges upon the Development of the Senior Lender Documents, and understands that in reliance upon, and in consideration of, this waiver, relinquishment, subjection, and subordination, the NPLH Loan and advances thereof are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment, subjection and subordination.

4. Senior Lender hereby agrees, but only as a separate and independent covenant of the Senior Lender and not as a condition to the continued effectiveness of the covenants and agreements of the Borrower and the Junior Lienholder as set forth herein, as follows:

(a) Following a notice from the Senior Lender to the Borrower that a default or breach exists under the terms of the Senior Lender Documents and each of them, the Senior Lender shall promptly (but in no event later than the following business day) send a copy of such notice to the Junior Lienholder and the Junior Lienholder shall have the right, but not the obligation, to cure the default as follows:

(i) If the default is reasonably capable of being cured within thirty (30) days, as determined by the Senior Lender in its sole discretion, the Junior Lienholder shall have such period to effect a cure prior to exercise of remedies by Senior Lender under the S enior Lender Documents, or such longer period of time as may be specified in the Senior Lender Documents.

(ii) If the default is such that it is not reasonably capable of being cured within thirty (30) days, as determined by the Senior Lender in its sole discretion, or such longer period if so specified, and if the Junior Lienholder (a) initiates corrective action within said period, and (b) diligently, continually, and in good faith works to effect a cure as soon as possible, then the Junior Lienholder shall have such additional time as is determined by the Senior Lender, in its sole discretion, to be reasonably necessary to cure the default prior to exercise of any remedies by Senior Lender.

In no event shall Senior Lender be precluded from exercising remedies if its security becomes or is about to become materially jeopardized by any failure to cure a default or the default is not cured within ninety (90) days after the first notice of default is given, or such longer period of time as may be specified in the Senior Lender Documents.

EXHIBIT 2

City Council
3 –
7 6/16/2026

NPLH R1 Subord. Agrmt Page 5 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

Nothing in this subparagraph (a) is intended to modify any covenant, term or condition contained in the Senior Lender Documents, including, without limitation, the covenant against creating or recording any liens or encumbrances against the Property without the prior written approval of the Senior Lender.

(b) The provisions of this paragraph 4 are intended to supplement, and not to limit, waive, modify or replace, those provisions of law pertaining to notice and cure rights of junior lenders including, without limitation, those set forth in California Civil Code sections 2924b and 2924c.

5. The Senior Lender would not make the NPLH Loan without this Agreement.

6. This Agreement shall be binding on and inure to the benefit of the legal representatives, heirs, successors and assigns of the parties.

7. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

8. In the event that any party to this Agreement brings an action to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to recover its costs and reasonable attorneys’ fees as awarded by the court in such action.

9. This Agreement may be signed by different parties hereto in counterparts with the same effect as if the signatures to each counterpart were upon a single instrument. All counterparts shall be deemed an original of this Agreement.

NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH

ALLOWS THE PERSON (OR ENTITY) OBLIGATED ON YOUR REAL PROPERTY

SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above and agree to be bound hereby:

[Signatures follow on page 6 of this Subordination Agreement. The remainder of this page is blank.]

EXHIBIT 2

City Council
3 –
8 6/16/2026

NPLH R1 Subord. Agrmt Page 6 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
JUNIOR LIENHOLDER:

Housing Authority of the City of Santa Ana,
a public body, corporate and politic
AT
TEST: HOUSING AUTHORITY OF THE CITY

OF SANTA ANA
Jennifer L. Hall Michael L. Garcia
Recording Secretary Secretary/Executive Director
A
PPROVED AS TO FORM:

SONIA R. CARVALHO
General Counsel
B
y:

Matthew R. Cody
Special Counsel
Best, Best & Krieger
[Signatures follow on page 7 of this Subordination Agreement. The remainder of this page is blank.]
EXHIBIT 2

City Council
3 –
9 6/16/2026

EXHIBIT 2

City Council
3 –
10 6/16/2026

NPLH R1 Subord. Agrmt Page 8 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

SENIOR LENDER:

The Department of Housing and
Community Development, a public
agency of the State of California

By:

Sanjeewa Devanarayana, Closing Manager

[Signatures must be acknowledged.]

EXHIBIT 2

City Council
3 –
11 6/16/2026

NPLH R1 Subord. Agrmt Page 9 of 9
(NOFA– 10/15/2018, Amended 10/30/2018)
Rev: 3/12/2024
Prep: 6/1/2026 (Housing Authority of the City of Santa Ana Loan) Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY

A Leasehold Estate created by that certain Lease executed by Housing Authority of the City of Santa Ana, a public body, corporate and politic, lessor, and Shelter Providers of Orange County, Inc., DBA HomeAid Orange County, Lessee and subject to all of the provisions therein contained, as disclosed by Memorandum of Lease, dated December 30, 2022 recorded January 4, 2023 as Instrument No. 2023000001781 of Official Records of Orange County, California for the term and upon the terms and conditions contained in said lease.

Real property in the City of Santa Ana, County of Orange, State of California, described as follows:

Being portions of Lots 13, 14, 15, and 16 in Block 66 of SANTA ANA EAST, as shown on a map recorded in Book 10, Pages 43 and 44 of miscellaneous records of Los Angeles County, California, more particularly described as follows:

Beginning at the intersection of the centerline of Garfield Street and Santa Ana Boulevard as shown on said map; thence North 25°32'22" West along said Garfield Street centerline, a distance of 39.91 feet; thence at right Angles North 64°27'38" East a dist ance of 40.00 feet to the Easterly right of way line of said Garfield Street, Garfield Street being 80 feet in width, said point being the Southwest corner of said lot 16 and the true Point of Beginning; thence North 25°32'22" West along said Easterly right of way line, a distance of 100.00 feet, to the Northwest corner of said lot 13; thence North 64°35'19" East, along the Northerly line of said Lot 13, a distance of 150.00 feet to the Northeast corner of said Lot 13, said corner being on the Westerly right of way line of a public alley, 20 feet in width; thence South 25°32'22" east, along said Westerly right of way line, a distance of 100.00 feet to the Northerly right of way line of said Santa Ana Boulevard, Santa Ana Boulevard being 80.00 feet in width, said point also being the Southeast corner of said Lot 16; thence South 64°35'19" West, along said Northerly right of way of said Santa Ana Boulevard, said line also being the Southerly line of said Lot 16, a distance of 150.00 feet, to the Southwest corner of said Lot 16, said corner also being the intersection of the Easterly right of way line of Garfield Street and Northerly right of way line of Santa Ana Boulevard and the true Point of Beginning.

The above legal description is pursuant to that Lot Merger No. 2022 -01, recorded April 18, 2023 as Instrument No. 2023000088045 of Official Records.

APN: 398-303-04, 398-303-05, 398-303-06 and 398-303-07

EXHIBIT 2

City Council
3 –
12 6/16/2026

NPLH Lease Rider Page 1 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
Free recording in accordance with
California Government Code
section 27383 and 27388.1.

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

State of California
Department of Housing and
Community Development
P.O. Box 952054
Sacramento, CA 94252-2054
Attn: Legal Affairs Division
No Place Like Home Program
18-NPLH-12673
_____________________________________________________________________

LEASE RIDER
(Ground Lease)
This Lease Rider ( the “Agreement”) is made and ent ered into as of June 16, 2026, for reference purposes only, by and among the Housing Authority of the City of Santa Ana, a public body, corporate and politic ( the “Landlord"), and Shelter Providers of Southern California, Inc. DBA HomeAid Orange County Los Angeles, a California nonprofit public benefit corporation ( the "Lessee"), and the Department of Housing and Community Development, a public agency of the State of California (the "Department") in consideration of the following facts and circumstances:

A. Landlord is the fee simple owner of that certain real property described in Exhibit A attached hereto and incorporated herein (the "Property"); B. Landlord and Shelter Providers of Southern California, Inc. DBA HomeAid Orange County Los Angeles, a California nonprofit public benefit corporation entered into the following ground lease of the Property: that certain Ground Lease dated December 7, 2021 and recorded in the official records of Orange County, California (the “Official Records”), that certain Memorandum of Lease dated December 30 , 2022, and recorded in the Official Records on January 4, 2023, as instrument No. 2023000001781 of Official Records (the “Lease”);
C. Pursuant to the Lease, Lessee has agreed to develop, construct, own, operate and manage a rental housing development on the Property consisting of not less than 17 residential rental units. Lessee is the owner of the fee interest in all of those certain buildings, improvements and fixtures now or hereafter erected thereon, and all EXHIBIT 3

City Council
3 –
13 6/16/2026

NPLH Lease Rider Page 2 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with such real property and owned by Lessee or in which Lessee has an interest, together with all additions to, substitutions for, changes in our replacements of the whole or any part of said articles of property (collectively, the “Improvements.”).

Collectively, the Property and the Improvements are hereinafter sometimes referred to as the Development (the "Development");
D. The Department has agreed to loan an amount not to exceed Three Million Six Thousand Five Hundred Sixty Seven and No/100 Dollars ($3,006,567.00) (the "Loan") to Lessee to finance the Development, in part, pursuant to the No Place Like Home Program ("NPLH"). The Loan is subject to numerous terms and conditions, including without limitation, the execution and delivery of this Agreement; E. As a further condition of the Loan and pursuant to the requirements of the Program, Lessee and the Department have entered into a Regulatory Agreement , including any amendments thereto ( the "Regulatory Agreement"), governing the use, occupancy, operation, management and ownership of the Development. Landlord and Lessee hereby waive any such provisions of the Lease in conflict with or which would frustrate Lessee’s compliance with the Regulatory Agreement in favor of the terms of the Regulatory Agreement.

F. The Loan will be evidenced by the Promissory Note (the “Note”) from Lessee and secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the "Trust Deed") on Lessee's interests in the Property; and G. Lessee and Landlord have requested that the Department accept the Lease as security for the Loan. In order to induce the Department to make the Loan, Landlord and Lessee have agreed to enter into and record this Agreement for the benefit of the Department, its successors, and assigns.

H. This Agreement amends, and is made part of, the Lease. As a result, this Agreement encumbers the Development and must be recorded on the Property.

NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants hereinafter contained, the Department, Lessee and Landlord hereby agree as follows:

1. Leasehold. As used herein, "Leasehold" means all of Lessee's interest in the Property described in Exhibit A, in the Development, in the Improvements now or hereafter located on the Property, all options contained in the Lease or granted in connection with the Lease, all other rights of Lessee under the Lease, and all subleases entered into in connection with the Lease (the “Subleases”).

2. Representations and Warranties of Landlord . Landlord hereby represents and EXHIBIT 3

City Council
3 –
14 6/16/2026

NPLH Lease Rider Page 3 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
warrants to the Department as follows:
a. Title. Landlord’s interest in the Development is free and clear of all liens, encumbrances, covenants, easements, licenses, judgments, or other matters of record except those shown as affecting the fee interest of the Property in that certain Preliminary Report regarding the Property dated April 30, 2026, and revised on May 11, 2026, issued by First American Title Company, for Escrow No. 7361217, Order No. NHSC-7361217 (the “Report”). The Report is attached hereto as Exhibit B.

Landlord has not required or permitted and has no knowledge of any other matters of record to be recorded that are not contained in the Report. b. Priority. The Lease is superior to any and all mortgage liens on the Property. c. Transfers by Landlord. Landlord has not assigned, mortgaged, or otherwise hypothecated or transferred, or agreed to assign, mortgage or otherwise hypothecate or transfer, its interest in the Property and the Development in whole or in part, except as shown in the Report and except as security for loans to Lessee approved in writing by the Department.
d. Status of Lease.
(1) Landlord is the current Lessor under the Lease. The Lease is in full force, the Lease is not void, voidable or terminable at the option of any party thereto or of any other person or entity claiming an interest in or to such Lease or the Development, and there has been no default thereunder on the part of Lessee, nor has any event occurred which, with the giving of notice or the passage of time, or both, would be an event of default thereunder. Landlord has not been informed of and has not otherwise received notice from Lessee or from any other person or entity concerning any alleged default on the part of Landlord under the Lease. (2) Any consent or approval of any third party (including any lender) that is required to deliver this Agreement has been obtained.
(3) To Landlord’s actual knowledge, no alterations, improvements or additions now exist on the Property that have not been approved by the Landlord. e. Other Agreements. All terms and conditions of the Lessee's tenancy under the Lease are set forth in the Lease and there have been no further or other supplements, amendments, modifications or extensions thereof except those submitted to and approved by the Department. No thing in this Lease Rider is intended to waive, supercede, modify or terminate any provision of the Lease granting rights to the Department as a Mortgage Lender.
f. Lease Term. The date of the commencement of the Lease term is the date on EXHIBIT 3

City Council
3 –
15 6/16/2026

NPLH Lease Rider Page 4 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
which a certificate of occupancy is issued for the Development and will end on the 99th anniversary of the date of the commencement of the Lease, subject to options described in the Lease. All conditions precedent to the effectiveness of the Lease and/or the exercise of any of Lessee's rights thereunder has been fully satisfied.

Notwithstanding anything in the Lease to the contrary, Lease shall not expire prior to payment in full of the Department’s Loan and fulfillment of Lessee’s obligations under the Regulatory Agreement.
g. Development. To Landlord’s actual knowledge, the Development constructed, or to be constructed, by Lessee on the Property satisfies all requirements affecting the design, use or characteristics of such Development imposed by Landlord under the Lease or otherwise, any and all applicable provisions of federal, state and local laws, and all agreements with any public entities concerning the Development, as amended from time to time.
h. Insurance. All notices, certificates, binders, endorsements, copies of policies, and receipts required under the Lease have been delivered and approved by Landlord.

3. Cancellation, Transfer of Interest.
a. Landlord and Lessee agree that so long as the Department, its successor or assigns holds the Trust Deed and Regulatory Agreement encumbering the Property, no termination of the Lease by Lessee, and no subordination, cancellation, surrender, amendment or modification of the Lease shall be effective without the prior written consent of the Department, which consent shall be in the Department’s sole and absolute discretion, and may be conditioned upon the satisfaction of such terms and conditions as the Department may prescribe. Any attempt by Lessee to take such action shall be void without the Department’s prior written consent. b. Landlord agrees that it shall not transfer, convey, sell, hypothecate, assign, encumber or permit any liens against its interest, or any portion thereof, in the Property or the Development without the prior written approval of the Department, which consent shall be in the Department’s sole and absolute discretion, and may be conditioned upon the satisfaction of such terms and conditions as the Department may prescribe. If the Department approves any such transfer, conveyance, sale, hypothecation, assign ment or other encumbrance of its interest, or any portion thereof, in the Property or the Development, Landlord will require that any purchaser, assignee or transferee expressly assume all of the obligations of Landlord under the Lease and this Agreement by a written instrument recordable in the Official Records. c. Bankruptcy. Neither the Landlord nor the Lessee, in the event of bankruptcy by either, will take the benefit of any provisions in the United States Bankruptcy Code EXHIBIT 3

City Council
3 –
16 6/16/2026

NPLH Lease Rider Page 5 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
that would cause the termination of the Lease or otherwise render it unenforceable in accordance with its terms.
d. No Merger. There shall be no merger of the Lease or any interest in the Lease, nor of the Leasehold interest, with the fee estate in the Property if the Lease or such interest therein, or such Leasehold estate may be directly or indirectly held by or for the account of any person who shall hold the fee estate in the Property, or any interest in such fee estate, nor shall there be such a merger by reason of the fact that all or any part of the Leasehold estate created thereby may be conveyed or mortgaged in a leasehold mortgage, deed of trust, or other security instrument to a leasehold mortgagee that shall hold the fee estate in the Development or any interest of the Landlord under the Lease.

4. Consent to Assignment, Payment of Rent.
a. Landlord hereby consents to and approves the following to the extent such consents or approvals are required under the Lease:
(1) Lessee's encumbering the Lease, the Leasehold and the Development by the Trust Deed and the Regulatory Agreement; possession of the Property and any Development thereon by the Department or by a receiver under the Trust Deed or the Regulatory Agreement ; and sale of the Leasehold and the Development by foreclosure under the Trust Deed or transfer by deed in lieu of foreclosure;
(2) Assignments to the Department or its designee of any subleases and any and all rents from such subleases; and
(3) Sale or assignment of all or any part of any interest in the Leasehold to any purchaser at a foreclosure sale under the Trust Deed or to any transferee of a deed in lieu of foreclosure ( such purchaser or transferee , including the Department, is collectively referred to as the "Transferee"), and to subsequent transfers without restriction (all such assignments, transfers, and subsequent transfers referred to in this Agreement as the "Transfer"). Any such Transferee, upon the Transfer of all its interest in the Development and the Leasehold, shall be relieved of all liability under the Lease accruing after date of such Transfer. b. Nothing in this Agreement, in the Trust Deed or in the Lease shall impose on the Department the obligations of Lessee under the Lease or require the Department to assume the Lease unless the Department forecloses on the Leasehold under the Trust Deed or accepts an assignment or deed in lieu of foreclose.

5. Notice of Defaults; Termination Notice.

EXHIBIT 3

City Council
3 –
17 6/16/2026

NPLH Lease Rider Page 6 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
a. Notice and Cure. Landlord shall provide simultaneously to the Department a written copy of all notices and demands , including, without limitation, notices of default or breach which Landlord has given, delivered or sent to Lessee under the Lease. No notice or demand under the Lease shall be effective unless and until a copy of such notice is provided to the Department as provided herein. Any notice of default under the Lease or this Agreement shall describe the default(s) with reasonable detail. The Department shall have the right, but not the obligation, to cure any breach or default within the time period given in the Lease; provided that, if such notice to the Department is not given or is delayed for any reason, the period of time within which the Department may cure any such breach or default shall commence upon receipt by the Department of such notice. Landlord and Lessee authorize the Department to enter the Development for the purpose of preventing defaults or exercising its right to cure and any other powers given the Department under the Trust Deed, this Agreement or the Lease.
b. Termination Notice. After the expiration of the grace period given Lessee under the Lease to cure the default, Landlord shall not terminate the Lease on account of such default but shall give the Department a written notice (the "Termination Notice") that Lessee has failed to cure the default within the grace period and that, on account thereof, Landlord intends to terminate the Lease, which notice shall set a termination date not earlier than ninety (90) days after the Department's receipt of the Termination Notice, provided that Landlord agrees to extend such termination date if the Department reasonably requires additional time to accommodate the Department’s taking possession of the Development where possession is necessary to cure Lessee’s default. No Termination Notice shall be effective to terminate the Lease if:
(1) Except as provided in section 5.c., within ninety (90) days after receipt of the Termination Notice, the Department cures any default which can be cured by payment or expenditure of money or without possession of the Development; or provides reasonable assurance and undertakings for the cure of such default.

To effect a cure of Lessee’s default, the Department may make any repair of improvement, do any other act or thing required of Lessee under the Lease, or do any act or thing which may be necessary or proper to prevent termination of the Lease. The Department and its agents and contractors will have full access to the Development for purposes of accomplishing the curing of defaults under the Lease. Any of the foregoing done by the Department shall be as effective to prevent a termination of the Lease as the same would have been if done by Lessee; or
(2) The Department commences and diligently pursues to completion proceedings for foreclosure and sale under the Trust Deed or assignment or EXHIBIT 3

City Council
3 –
18 6/16/2026

NPLH Lease Rider Page 7 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
transfer in lieu of foreclosure.
c. Defaults Not Susceptible to Department Cure . The Department shall not be required to perform any act which is not susceptible to performance by the Department, such as to cure a filing or condition of bankruptcy or insolvency or to cure or commence the cure of any default which is Lessee's failure to pay any lien, charge or encumbrance which is junior in priority to the Trust Deed, or to pay any amount owed under an indemnity of Landlord by Lessee based on an event occurring prior to the Department’s possession of the Development. d. Landlord's Payment of Loan Payments. Landlord agrees that if Landlord cures Lessee's failure to make any payment due under the Loan, it shall seek reimbursement of amounts so paid solely from Lessee and the Department shall have no obligation to pay such amounts to Landlord.
e. Waiver of Breach or Default. On transfer of the Leasehold at any foreclosure sale under the Trust Deed or by acceptance of a deed in lieu of foreclosure, all violations, defaults and breaches by Lessee under the Lease, including, without limitation, nonpayment of rent or other amounts payable under the Lease, shall be deemed personal obligations of Lessee, and the Department or other Transferee shall be entitled to the New Lease as described in section 6 below without incurring or assuming any liability or obligation of, or claim against, Lessee under the Lease.

Nothing in this section shall be deemed a waiver of any claim by Landlord against Lessee under the Lease.
f. Enforcement Not a Breach. No action taken by the Department to enforce its rights under any of the documents governing the Loan against either the Landlord or the Lessee, or both, including, without limitation, any actions taken to collect any amounts due and owing to the Department or any action to appoint a receiver for the Development or to otherwise protect the security of the Loan, shall constitute or result in a breach or violation of the Lease.
g. Status Quo Ante. Any default by Lessee shall not prejudice the Department if the Department chooses to cure such default within the applicable grace period, and Landlord acknowledges and agrees that upon the Department’s cure of any such default, the Lease shall be restored status quo ante.

6. New Lease.
a. Conditions. Section 5 hereof notwithstanding, Landlord agrees to comply with the requirements of subsection 6.b., if the following conditions specified in this subsection 6.a. apply:

EXHIBIT 3

City Council
3 –
19 6/16/2026

NPLH Lease Rider Page 8 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
(1) The Lease is terminated for any reason whatsoever or if the Department forecloses under the Trust Deed or accepts a deed in lieu of foreclosure; and (2) Department or other Transferee, whether or not such party has assumed the Lease, requests Landlord in writing to enter into a new lease of the Property within ninety (90) days after (a) the Department completes a foreclosure under the Trust Deed, or (b) the Department accepts a deed in lieu of foreclosure, or the end of the cure period provided to the Department in the Termination Notice (the “New Lease”).
b. Obligations. If the conditions specified in section 6.a. have been satisfied, Landlord shall:
(1) upon receipt of the request for New Lease described in subsection 6.a.(2) above, enter into a New Lease of the Property with the Department, its nominee, or its successor-in-interest or other Transferee, for the remainder of the term of the Lease, effective as of the date of the termination or conveyance pursuant to a foreclosure sale or of a deed-in-lieu of foreclosure. The New Lease shall be at the rent of, and consistent with the terms, provisions, covenants, options and agreements contained in the terminated or foreclosed Lease, or granted by the Landlord in connection with the Lease, all as modified or supplemented by this Agreement;
(2) convey by grant deed to the Department, its nominee or its successor-in-interest or other Transferee, all title and interest to the Improvements, if any, which may become vested in Landlord as a result of any termination of the Lease or foreclosure of the Trust Deed or conveyance of Lessee's interest by deed in lieu of foreclosure, provided, however, this paragraph does not require conveyance of the Property;
(3) assign to the Department, its nominee, or its successor-in-interest or other Transferee, all of Landlord's interest, if any, in all existing subleases of all or any part of the Development and all attornments given by the sublessees. c. Priority. The Leasehold estate and the title (if any) in the Development granted to the Department, its nominee or its successor-in-interest under this section 6 shall be prior to any mortgage or other lien, charge or encumbrance on the Development, except as approved in writing by the Department or as shown in the Report

7. Successors to Department. Subject to section 4 hereof, if the Leasehold is transferred by a foreclosure sale under the Trust Deed or by a deed in lieu of foreclosure, Landlord shall recognize the Transferee as the tenant under the Lease. Anything in the Lease EXHIBIT 3

City Council
3 –
20 6/16/2026

NPLH Lease Rider Page 9 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
notwithstanding, the rights and benefits of the Department under this Agreement shall benefit and may be exercised by any Transferee or by the holder of any mortgage or deed of trust which may be given to secure a portion of the purchase price in any sale by the Department or its successor(s) after the Department acquires the Leasehold or enters into a New Lease under this Agreement.

8. Diligence of Department. So long as the Department is prevented by any process or injunction issued by any court or by any statutory stay, or by reason of any action by any court having jurisdiction of any bankruptcy or insolvency proceeding involving Landlord or Lessee, from commencing or prosecuting foreclosure or other appropriate proceedings in the nature thereof, the Department shall not be deemed for that reason to have failed to commence such proceedings or to have failed to prosecute diligently such proceedings, provided, however, that the Department shall use reasonable efforts to contest and appeal the issuance or continuance of any such process, stay or injunction.

9. Condemnation and Insurance Proceeds.
a. Anything in the Lease notwithstanding, all fire and other hazard or casualty insurance proceeds shall be paid to the Department to the extent required by the Regulatory Agreement and subject to the rights of senior mortgage holders. In addition, in the event of any condemnation or partial condemnation, all condemnation award proceeds payable on account of such condemnation or partial condemnation shall be paid to the Department to the extent required by the Regulatory Agreement, subject to the rights of holders of senior mortgages, if any. b. During the term of the Loan, the Department shall have the right to participate in any settlement or stipulation of judgment with respect to any condemnation proceeding entered into with the condemnation authority affecting all or any portion of the Development or any agreement to sell all or any portion of the Development in lieu of condemnation, and no such settlement, stipulation or agreement shall be made or entered into without the Department's prior written consent, which consent shall be in the Department’s sole and absolute discretion and may be conditioned upon the satisfaction of such terms and conditions as the Department may prescribe.

Department shall also have the right (but not the obligation) to participate in any settlement, discussion, and/or arbitration proceeding between Landlord and Lessee with respect to the apportionment or application of any condemnation award.

10. Certificate by Landlord. Within fifteen (15) calendar days after written request by the Department, Landlord shall execute and deliver to the Department or to any proposed purchaser or encumbrancer of Lessee's estate a certificate declaring (i) the existence and validity of the Lease, or New Lease as the case may be, and amendments thereto, if any, remains in full force and effect; (ii) that all conditions under the Lease, or New Lease, have been satisfied, and that there are no defaults under the Lease or New Lease, or if there has EXHIBIT 3

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NPLH Lease Rider Page 10 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
been a default under the Lease or New Lease, a description of the nature of such default; (iii) any other information relating to the condition of the Lease, the Property or the Development reasonably requested by the Department; and (iv) that Landlord understands the recipient will rely on the certificate and that the Landlord will describe in reasonable detail any exceptions to the foregoing statements.

11. Notices. Notices and other communications required by this Agreement shall be delivered by messenger to the addresses provided below or sent by U.S Postal Service certified mail, return receipt requested, postage prepaid, addressed as follows:

To Department: Department of Housing and Community Development No Place Like Home (NPLH) Program
P.O. Box 952054
Sacramento, CA 94252-2054
Attn. Closings Manager
or:
651 Bannon Street, Suite 400
Sacramento, CA 95811
Attn: Closings Manager
To Landlord: Housing Authority of the City of Santa Ana 20 Civic Center Plaza,
Santa Ana, California 92702
Attn: Executive Director
To Lessee: Shelter Providers of Southern California, Inc.

DBA HomeAid Orange County Los Angeles
17821 17th Street Suite 120,
Tustin, California 92780
These addresses may be changed by a notice given in the same manne r provided that Landlord acknowledges and agrees that it shall have a duty to verify the addresses provided herein. Notices shall be effective on receipt.

12. Department's Rights Against Lessee. Nothing in this Agreement shall limit or restrict the Department's rights and remedies under the Note, the Trust Deed, the Regulatory Agreement, or any other agreement between the Department and Lessee.

13. Successors and Assigns. This Agreement shall inure to the benefit of and bind the successors and assigns of the Department, Landlord and Lessee.

14. Uninsured Hazard. Landlord agrees that neither the Department nor any person acquiring the Property or a portion of the Leasehold pursuant to a foreclosure under the EXHIBIT 3

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NPLH Lease Rider Page 11 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
Trust Deed, or deed in lieu of foreclosure, nor the lessee under a New Lease pursuant to section 6 hereof, nor any successive owner of a portion of the Leasehold after such foreclosure or New Lease shall have any obligation hereunder or under the Lease or New Lease to repair or reconstruct any damage or loss to the Development which is due to a hazard not required to be covered by insurance under the Lease or New Lease.

15. Duty to Repair . Landlord agrees that if the Department, its nominee, or its successor-in-interest succeeds to Lessee's leasehold interest in the Property and if the Development on the Property shall have been or becomes materially damaged before or after the date of such acquisition, the Department's, its nominee's, or its successor-in-interest's obligation, if any, to repair, replace or reconstruct the Development shall in any such event be limited to the greater of: i) the amount of the net insurance proceeds received by the Department by reason of that damage or ii) the amount the Department would be entitled to if in compliance with the minimum insurance requirements of Lessee under the Lease.

16. Options. Landlord and Lessee agree that the Department may exercise any option to extend the term of the Lease or to purchase any interest in the Property which is granted to Lessee under or in connection with the Lease.

17. Limitation on Liability . If the Department agrees to be bound by the terms of the Lease, or in the event of any Transfer to a Transferee, neither the Department nor Transferee shall have any obligation under the Lease with respect to any liabilities, obligations, losses, damages, fines, penalties, claims, demands, suits, actions, causes of actions, charges, judgments, costs, and expenses (including architects' and attorneys' fees and court costs) arising out of or resulting from acts, omissions, circumstances or events occurring before or existing at the time of such Transfer or the Department's agreement to be bound by the Lease. Nothing in this Agreement or in the Lease shall impose on the Department any liability to perform the obligations of Lessee under the Lease or require the Department to assume the Lease unless and until the Department acquires Lessee’s rights by foreclosure or deed in lieu of foreclosure. After acquiring Lessee’s rights by foreclosure or deed in lieu of foreclosure, the Department shall be liable to perform Lessee’s obligations only until the Department assigns or transfers the Leasehold. The Department shall not, however, be required to cure Lessee’s defaults occurring before the Department’s acquisition of Lessee’s rights by foreclosure.

18. Conflict With Lease. The provisions herein are intended to be supplementary to, and not in derogation of, the parties' rights and obligations contained in the Lease (including all of the Department's rights under the Lease as a leasehold mortgagee), but in the event of any conflict or inconsistency between the terms of the Lease and the terms of this Agreement, the terms of this Agreement shall govern and control, and the Lease shall be deemed to be modified hereby.

EXHIBIT 3

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NPLH Lease Rider Page 12 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

19. Attorney Fees, Costs. In any action to enforce or relating to any provision of this Agreement, the prevailing party shall be entitled to recover from the other party, its costs and expenses. The term “costs and expenses” as used herein shall include all costs and expenses actually and reasonably incurred, including by not limited to attorney’s fees; filing, motion, and jury fees; juror food and lodging; taping, videotaping, and transcribing depositions and travel expenses to attend depositions; service of process by a public officer, registered process server, or other means; expenses of attachment including keeper’s fees; premiums on surety bonds; ordinary witness fees pursuant to section 68093 of the California Government Code; fees of expert witnesses whether or not ordered by the court; transcripts of court proceedings whether or not ordered by the court; court reporters fees as established by statute; investigation expenses in preparing the case for trial; postage, telephone, and photocopying charges; costs in investigation of jurors or in preparation for voir dire; models, blowups and photocopies of exhibits, and any other item that is required to be awarded to the prevailing party pursuant to statute as an incident to prevailing in the action at trial or on appeal. Such costs and expenses shall be recoverable whether the services were rendered by a salaried employee of the party or by an independent contractor.

20. Acknowledgment. Landlord and Lessee acknowledge that the Department is relying on the foregoing representations, warranties, covenants and agreements of the undersigned in making the Loan to Lessee, and warrants and affirms to and for the benefit of the Department that each of those representations is true, correct and complete as of this date. [Signatures follow on page 13 of this Lease Rider. The remainder of this page is blank.]
EXHIBIT 3

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NPLH Lease Rider Page 13 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
LANDLORD:

Housing Authority of the City of Santa Ana,
a public body, corporate and politic
ATTEST: HOUSING AUTHORITY OF THE CITY

OF SANTA ANA
Jennifer L. Hall Michael L. Garcia
Recording Secretary Secretary/Executive Director
APPROVED AS TO FORM:

SONIA R. CARVALHO
General Counsel
By:

Matthew R. Cody
Special Counsel
Best, Best & Krieger
[Signatures must be acknowledged.]
[Signatures continue on page 14. Remainder of this page is blank.] EXHIBIT 3

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LESSEE:

Shelter Providers of Southern California, Inc. DBA HomeAid Orange County Los Angeles,
a Califo�r
....
• �~
By: "-tJ!f/(1
Gina R. Cunni �· a
Executive Director
rporation
[Signatures must be acknowledged.]
[Signatures continue on page 15. Remainder of this page is blank.] NPLH Lease Rider
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor's Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

Page 14 of 17 ends

EXHIBIT 3

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NPLH Lease Rider Page 15 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673
SENIOR LENDER:

The Department of Housing and Community
Development, a public agency of the State of California By:

Sanjeewa Devanarayana, Closing Manager
[Signatures must be acknowledged.]
EXHIBIT 3

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NPLH Lease Rider Page 16 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Santa Ana, County of Orange, State of California, described as follows:

The above legal description is pursuant to that Lot Merger No. 2022 -01, recorded April 18, 2023 as Instrument No. 2023000088045 of Official Records.

APN: 398-303-04, 398-303-05, 398-303-06 and 398-303-07
EXHIBIT 3

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NPLH Lease Rider Page 17 of 17
Rev: 7/16/2024
Prep: 6/1/2026
Dev: Francis Xavier Residence
Assessor’s Identification Number: 398-303-04, 398-303-05, 398-303-06 and 398-303-07 Loan No.: 18-NPLH-12673

EXHIBIT B
The Report
EXHIBIT 3

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CLTA Preliminary Report Form Order Number: 5850714-A (tc) (Rev. 11/06) Page Number: 1
First American Title
Post Closing Report
First American Title Company
4140 Temescal Canyon Rd, Ste 301
Corona, CA 92883
Customer Reference: 801, 807, 809 & 809 ½ E. Santa Ana Blvd Order Number: 5850714-A (tc)
Title Officer: Terrell Crutchfield
Phone: (951)256-5879
Fax No.: (866)558-2872
E-Mail: [email protected]
Escrow Officer: Sheri Keene
Phone: (858)410-1305
Fax No.: (866)898-0113
E-Mail: [email protected]
Buyer:
.

Property:

Santa Ana, CA

PRELIMINARY REPORT
In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms.

The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this report.

Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered.

It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.

Please be advised that any provision contained in this document, or in a document that is attached, linked or referenced in this document, that under applicable law illegally discriminates against a class of individuals based EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 2
First American Title
upon personal characteristics such as race, color, religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or any other legally protected class, is illegal and unenforceable by law.

This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 3
First American Title
Dated as of April 16, 2026 at 7:30 A.M.

The form of Policy of title insurance contemplated by this report is:

ALTA Extended Loan Policy of Title Ins (7-1-21)(1)-CA
To Be Determined
A specific request should be made if another form or additional coverage is desired.

Title to said estate or interest at the date hereof is vested in:

THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA, A PUBLIC BODY, CORPORATE AND POLITIC The estate or interest in the land hereinafter described or referred to covered by this Report is:

Fee
The Land referred to herein is described as follows:
(See attached Legal Description)
At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows:

1. General and special taxes and assessments for the fiscal year 2026-2027, a lien not yet due or payable.

2. Intentionally Deleted

3. General and special taxes and assessments for the fiscal year 2025-2026 are exempt. (Affects Parcels 1, 2 and 3)

4. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code.

5. The terms and provisions contained in the document entitled "Agreement" recorded July 11, 1991 as Instrument No. 91-357846 of Official Records.
(Affects Parcel 2)
EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 4
First American Title

6. The condition that the property shall be used for the sole purpose of providing, constructing and maintaining Affordable Housing, as more fully defined therein, and upon the terms, covenants and conditions in that certain document recorded January 14, 2022 as Instrument No. 2022000020116 of Official Records.

Note: A written consent or waiver may be necessary from the public agency for any sale or refinance.

A document recorded April 24, 2023 as Instrument No. 2023000092686 of Official Records provides that the above document was subordinated to the document recorded January 4, 2023 as Instrument No. 2023000001784 of Official Records.

7. The condition that the property shall be used for the sole purpose of providing, constructing and maintaining Affordable Housing, as more fully defined therein, and upon the terms, covenants and conditions in that certain document recorded January 14, 2022 as Instrument No. 2022000020117 of Official Records.

Note: A written consent or waiver may be necessary from the public agency for any sale or refinance.

8. A deed of trust to secure an original indebtedness of $1,656,947.00 recorded JANUARY 14, 2022 as INSTRUMENT NO. 2022000020118 OF OFFICIAL RECORDS.

Dated: DECEMBER 7, 2021
Trustor: SHELTER PROVIDERS OF ORANGE COUNTY, INC., DBA

HOMEAID ORANGE COUNTY
Trustee: COMMONWEALTH LAND TITLE COMPANY, A CALIFORNIA

CORPORATION
Beneficiary: THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA (CA093), ACTING AS THE HOUSING SUCCESSOR AGENCY,

A PUBLIC BODY, CORPORATE AND POLITIC
A document recorded April 24, 2023 as Instrument No. 2023000092684 of Official Records provides that the lien or charge of the deed of trust was subordinated to the lien or charge of the deed of trust recorded April 24, 2023 as Instrument No. 2023000092682 of Official Records.

9. The condition that the property shall be used for the sole purpose of providing, constructing and maintaining Affordable Housing, as more fully defined therein, and upon the terms, covenants and conditions in that certain document recorded January 14, 2022 as Instrument No. 2022000020119 of Official Records.

Note: A written consent or waiver may be necessary from the public agency for any sale or refinance.

10. The terms and provisions contained in the document entitled "Development Impact Fee Deferral Agreement" recorded January 14, 2022 as Instrument No. 2022000020120 of Official Records.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 5
First American Title

11. An unrecorded lease dated DECEMBER 30, 2022, executed by THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA, A PUBLIC BODY, CORPORATE AND POLITIC as lessor and SHELTER PROVIDERS OF ORANGE COUNTY, INC., DBA HOMEAID ORANGE COUNTY as lessee, as disclosed by a MEMORANDUM OF LEASE recorded JANUARY 04, 2023 as INSTRUMENT NO. 2023000001781 of Official Records.

Defects, liens, encumbrances or other matters affecting the leasehold estate, whether or not shown by the public records.

12. The terms and provisions contained in the document entitled "Lease Rider Agreement CalHFA Development No. 19-049-M" recorded January 04, 2023 as Instrument No. 2023000001782 of Official Records.

13. The terms and provisions contained in the document entitled "California Housing Finance Agency SNHP Regulatory Agreement CalHFA Development No. 19-049-M" recorded January 04, 2023 as Instrument No. 2023000001783 of Official Records.

14. A deed of trust to secure an original indebtedness of $1,259,848.00 recorded JANUARY 04, 2023 as INSTRUMENT NO. 2023000001784 OF OFFICIAL RECORDS.

Dated: DECEMBER 01, 2022
Trustor: SHELTER PROVIDERS OF ORANGE COUNTY, INC., DBA
HOMEAID ORANGE COUNTY, INC., A CALIFORNIA

NONPROFIT PUBLIC BENEFIT CORPORATION
Trustee: FIRST AMERICAN TITLE COMPANY
Beneficiary: THE CALIFORNIA HOUSING FINANCE AGENCY, A PUBLIC

INSTRUMENTALITY AND POLITICAL SUBDIVISION OF THE

STATE OF CALIFORNIA
A document recorded April 24, 2023 as Instrument No. 2023000092685 of Official Records provides that the lien or charge of the deed of trust was subordinated to the lien or charge of the deed of trust recorded April 24, 2023 as Instrument No. 2023000092682 of Official Records.

15. The terms and provisions contained in the document entitled Lot Merger No. 2022-01 recorded April 18,2023 as Instrument No. 2023000088045 of Official Records.

16. A deed of trust to secure an original indebtedness of $1,194,375.00 recorded April 24, 2023 as 2023000092682 OF OFFICIAL RECORDS.

Dated: April 17, 2023
Trustor: Shelter Providers of Orange County, Inc. DBA HomeAid Orange County, a California Non-Profit Corporation
Trustee: Pacific Western Bank
Beneficiary: Pacific Western Bank

17. A document entitled Assignment of Leases and Rents recorded April 24, 2023 as Instrument No. 2023000092683 of Official Records, as additional security for the payment of the indebtedness secured by the deed of trust recorded April 24, 2023 as Instrument No. 2023000092682 of Official Records.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 6
First American Title

18. A Deed of Trust to secure an original indebtedness of $832,051.28 recorded November 9, 2023 as Instrument No. 2023000275032 of Official Records.

Dated: November 9, 2023
Trustor: Shelter Providers of Orange County, Inc., a California Non-Profit Corporation D/B/A HomeAid Orange County
Trustee: First American Title Company
Beneficiary: Orange County Housing Finance Trust, a California public agency formed pursuant to California Government Code section 6500 et. seq.

A document entitled " Assignment of Lessor's Interest in Leases, Rents and Profits " recorded November 9, 2023 as Instrument No. 2023000275034 of Official Record s, as additional security for the payment of the indebtedness secured by the deed of trust recorded November 9, 2023 as Instrument No. 2023000275032 of Official Records.

19. The terms and provisions contained in the document entitled "Regulatory Agreement and Declaration of Restrictive Covenants" recorded November 9, 2023 as Instrument No. 2023000275033 of Official Records.

20. A financing statement recorded November 9, 2023 as Instrument No. 2023000275035 of Official Records.

Debtor: Shelter Providers of Orange County, Inc.

Secured party: Orange County Housing Finance Trust

21. Water rights, claims or title to water, whether or not shown by the Public Records.

22. Rights of parties in possession.

23. The following matters disclosed by an ALTA/NSPS survey made by DS Commercial Due Diligence Services on October 14, 2021, designated Job No. 21-09-0661:
a. A Wood Fence within the Northerly boundary of the property. b. An Iron Fence within the Northerly boundary of the property. c. Chain Link Fences within the Easterly, Westerly, and Southerly boundaries of the property. d. Gates within the Southerly and Westerly boundaries of the property.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 7
First American Title

INFORMATIONAL NOTES
Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction.

1. General and special taxes and assessments for the fiscal year 2025-2026.

First Installment: $192.00, PAID
Penalty: $0.00
Second Installment: $192.00, PAID
Penalty: $0.00
Tax Rate Area: 11-003
A. P. No.: 398-303-07
(Affects Parcel 4)

2. The property covered by this report is vacant land.

3. According to the public records, there has been no conveyance of the land within a period of twenty- four months prior to the date of this report, except as follows:

None

4. We are informed that a work of improvement is contemplated on the land referred to in this report/commitment. The land will be inspected on the day documents are intended to be recorded for the purpose of determining whether the commencement of work has occurred. (Commencement of the work includes but is not limited to grading, staking and delivery of equipment or materials.) Should commencement of work occur prior to the close of escrow and recordation of documents, the Company will require various documents and information, including but not limited to a completed mechanics' lien risk analysis, construction contract(s), lien waivers, loan agreement, disbursement information, executed indemnity agreement and current financial information from proposed indemnitors, in order to determine whether mechanics' lien insurance can be issued. Other requirements may be made following the review of such documents and information.

The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 8
First American Title

LEGAL DESCRIPTION
Real property in the City of Santa Ana, County of Orange, State of California, described as follows:

PARCEL 1: (APN: 398-303-04)
THE SOUTHWESTERLY 50.00 FEET OF LOTS 13, 14, 15 AND 16 IN BLOCK 66 OF SANTA ANA EAST, AS SHOWN ON A MAP RECORDED IN BOOK 10, PAGES 43 AND 44 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.

PARCEL 2: (APN: 398-303-05)
THE NORTHEASTERLY 50.00 FEET OF THE SOUTHWESTERLY 100.00 FEET OF LOTS 13, 14, 15 AND 16 IN BLOCK 66 OF SANTA ANA EAST, AS SHOWN ON A MAP RECORDED IN BOOK 10, PAGES 43 AND 44 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.

PARCEL 3: (APN: 398-303-06)
THE EASTERLY 47 FEET OF THE SOUTHERLY 15 FEET OF LOT 14 AND THE EASTERLY 47 FEET OF LOTS 15 AND 16, ALL IN BLOCK 66 OF "SANTA ANA EAST", CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP THEREOF RECORDED IN BOOK 10 PAGES 43 AND 44 OF MISCELLANEOUS MAPS RECORDS OF LOS ANGELES, CALIFORNIA.

PARCEL 4: (APN: 398-303-07)
THE EASTERLY 50 FEET OF LOT 13, THE NORTHERLY 10 FEET OF THE EASTERLY 50 FEET OF LOT 14, THE WESTERLY 3 FEET OF THE EASTERLY 50 FEET OF THE SOUTHERLY 15 FEET OF LOT 14, AND THE WESTERLY 3 FEET OF THE EASTERLY 50 FEET OF LOTS 15 AND 16 IN BLOCK 66 OF SANTA ANA EAST,

IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 10, PAGES 43 AND 44 OF MISCELLANEOUS MAPS, OF LOS ANGELES COUNTY.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 9
First American Title
EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 10
First American Title
NOTICE
Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub- escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible.

EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 11
First American Title

EXHIBIT A

LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE [(07-01-2021) v. 01.00]

EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy and We will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, or regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.

Exclusion 1 does not modify or limit the coverage provided under Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23, or 27.

2. Any power to take the Land by condemnation. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 17.

3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by You;
b. not Known to Us, not recorded in the Public Records at the Date of Policy, but Known to You and not disclosed in writing to Us by You prior to the date You became an Insured under this policy; c. resulting in no loss or damage to You;
d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 5, 8.f., 25, 26, 27, 28, or 32); or
e. resulting in loss or damage that would not have been sustained if You paid consideration sufficient to qualify You as a bona fide purchaser of the Title at the Date of Policy.

4. Lack of a right:
a. to any land outside the area specifically described and referred to in Item 3 of Schedule A; and b. in any street, road, avenue, alley, lane, right-of-way, body of water, or waterway that abut the Land.

Exclusion 4 does not modify or limit the coverage provided under Covered Risk 11 or 21.

5. The failure of Your existing structures, or any portion of Your existing structures, to have been constructed before, on, or after the Date of Policy in accordance with applicable building codes. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 14 or 15.

6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transfer of the Title to You is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 30.

7. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

8. Negligence by a person or an entity exercising a right to extract or develop oil, gas, minerals, groundwater, or any other subsurface substance.

9. Any lien on Your Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 9 does not modify or limit the coverage provided under Covered Risk 8.a. or 27.

10. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.

LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:

For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less)
Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 19: 1% of Policy Amount Shown on Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 21: 1% of Policy Amount Shown on Schedule A or $2,500 $5,000 (whichever is less)
EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 12
First American Title
ALTA OWNER'S POLICY [(07-01-2021) V. 01.00]
CLTA STANDARD COVERAGE OWNER'S POLICY [(02-04-22) V. 01.00]

EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of:

1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.

Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.

2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.

3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
c. resulting in no loss or damage to the Insured Claimant; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or
e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.

5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.

6. Any lien on the Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b.

7. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.

NOTE: The 2021 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as numbers 1 through 7. The 2021 CLTA Standard Coverage Owner’s Policy will include the Western Regional Standard Coverage Exceptions listed below as numbers 1 through 7.

EXCEPTIONS FROM COVERAGE
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage.

This policy does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, EXHIBIT 3

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Order Number: 5850714-A (tc)
Page Number: 13
First American Title
uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
2006 ALTA OWNER'S POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.

NOTE: The 2006 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as numbers 1 through 7.

EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of:

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

2. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.

APN:

EXHIBIT 3

City Council
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Santa Ana City CouncilJune 16, 2026

Santa Ana City Council
June 16, 2026