COUNCIL COMMITTEESPECIAL MEETING AGENDA ECONOMIC

Santa Ana City Council

Miguel A. Pulido,

Mayor [email protected]

Michele Martinez, Mayor Pro Tem, Ward

2 [email protected]

Vicente Sarmiento, Ward 1

[email protected]

Jose Solorio, Ward 3

[email protected]

P. David Benavides, Ward 4

[email protected]

Juan Villegas, Ward 5

[email protected]

Sal Tinajero, Ward 6

[email protected]

City Hall, 20 Civic Center Plaza ● P.O. Box 1988 ● Santa Ana, California 92702

Mayor & Council Telephone: 714-647-6900 ● Agenda Item Inquiries: 714-647-6520 ● Website: www.santa-ana.org

CITY OF SANTA ANA

COUNCIL COMMITTEE SPECIAL MEETING

AGENDA

ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY COMMITTEE MONDAY, SEPTEMBER 18, 2017

5:00 P.M. CALL TO ORDER City Hall Ross Annex, Conference Room 1600 20 Civic Center Plaza, Santa Ana, California Committee Members: Michele Martinez, Chairperson

P. David Benavides, Vice-Chairperson Vicente Sarmiento Recording Secretary: Tè Gilford / Teresa Ramirez PUBLIC COMMENTS - Members of the public are allowed three minutes to speak on agenda items or matters within the jurisdiction of the Committee.

AGENDA ITEMS

1. Approval of Minutes from the May 15, 2017 Special Meeting {Strategic Plan No. 5, 1}

2. Update on Fiber Optic Utility Infrastructure / Gigabit Santa Ana {Strategic Plan No. 6, 1C; 1E; 1G; 1I} (William Galvez, PWA)

3. Update on Purchase of SCE-owned LED Streetlights – Presentation {Strategic Plan No. 6, 1C; 1G} (William Galvez, PWA)

4. Business License Review: Schedule and Plan - Presentation {Strategic Plan No. 4, 1} (Francisco Gutierrez, FMSA)

STAFF COMMENTS COMMITTEE MEMBER COMMENTS ADJOURNMENT – The next regular meeting is scheduled for Monday, November 13, 2017 at 5p.m.

mailto:[email protected]







http://www.santa-ana.org/

____________________________________________________________________________ ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET 2 September 18, 2017 AND TECHNOLOGY AGENDA

If you need special assistance to participate in this meeting, please contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Please call prior to the meeting date, to allow the City enough time to make reasonable arrangements for accessibility to this meeting. [Americans with Disabilities Act, Title II, 28 CFR 35.102]

The complete Strategic Plan document is available at http://www.santa-ana.org/strategic-planning/

http://www.santa-ana.org/strategic-planning/

May 15, 2017 |Economic Development, Infrastructure, Budget & Technology Minutes 1

CITY OF SANTA ANA CITY COUNCIL COMMITTEE ON

ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY

SPECIAL MEETING MINUTES

May 15, 2017 CALL TO ORDER: City Hall

20 Civic Center Plaza, Room 1600 Santa Ana, CA 5:03 p.m.

ATTENDANCE: Council Committee members:

Vincent Sarmiento Michele Martinez P. David Benavides (5:32pm)

MEMBERS ABSENT: None STAFF PRESENT: Robert Cortez, CMO/CDA James Schnabl, PD Teresa Ramirez, FMSA Robert Carroll, PD Francisco Gutierrez, FMSA Christina Holland, PD Sergio Vidal, FMSA Fred Mousavipour, PWA Waldo Barela, FMSA Mike Fetner, ITD Katrina Nguyen, FMSA Sarah Ro, FMSA Sandra Simon, FMSA Alvaro Castellon, FMSA Melanie Torres, ITD GUESTS PRESENT: Peter Katz, Com-Link; Ryan Smolar, Downtown Inc.; Hector

Bustos, Job Shadow Student; J. Manriquez; Mark Alvarado, Kelly Associates; Mike Lopez, SEIU 721; Claudia Andrade-Villa, PD; Ana Urzlia, SABHC; Carlos Melendez, Communidad; Adrian Munoz, Cooperativa Producciones S.A.; Reyna Mendoza, Cooperativa Manos Unidas Creando Arte; Apolonio Cortes, Cooperativa Tierra y Dignidan; Victor Acevedo, Resident.

PUBLIC COMMENTS

• Ryan Molar, member of City’s Joint Committee with Chamber of Commerce, known as City’s Economic Development Council. Provided his top ten list of economic development priorities: 1) Smart Community; 2) Reorganize Downtown; 3) Finish Branding Study; 4) Redirect Bed Tax; 5) Investment on Process Improvement; 6)

EDIBT Item 1


Staff-up on more Inspectors; 7) Organize Retail; 8) Corridor façade improvements; 9) Placemaking; 10) More BIDs and Council of Business Area.

• Peter Katz, Com-Link. Disappointed that council rejected Harbor Blvd hotel project that is an underutilized area. Neighboring cities like Garden Grove have a 34% bed tax versus Santa Ana’s 7%. Revenue opportunities: golf course if upgraded to PGA status; mini-convention center on Harbor Blvd with streetcar to bring people; medical marijuana tax increase; Courtyard Plaza Downtown for tourist; hotel bed tax needs to add branding tax to pay for advertising. And help PD on 4th of July with off duty officers, by adding $5 fee to non-profits to help offset costs.

• Adrian Munoz, Producciones Santa Ana, (Spanish Speaker). Twenty year Santa Ana resident participating in cooperative called Producciones Santa Ana. Spoke in support of agenda item #9 (Cooperative Business Ordinance).

AGENDA DISCUSSION ITEMS 1. Receive and File Minutes from Regular Finance, Economic Development, &

Technology Committee Meeting of January 11, 2016.

2. Approval of Minutes from Regular Economic Development, Infrastructure,

Budget and Technology Committee Meeting of March 13, 2017.

3. Selection of Chair and Vice-Chair

Chair – Mayor Pro Tem Martinez Vice-Chair – Councilmember Benavides

MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Martinez, Sarmiento (2) NOES: None (0) ABSENT: Benavides (1)

MOTION: Sarmiento SECOND: Martinez VOTE: AYES: Martinez, Sarmiento (2) NOES: None (0) ABSENT: Benavides (1)

MOTION: Sarmiento SECOND: Benavides VOTE: AYES: Martinez, Sarmiento, Benavides (3) NOES: None (0) ABSENT: None (0)


4. Review of By-Laws

5. FY 2017-18 & FY 2018-19 Budget Plan {Strategic Plan No. 4, 1} - (FMSA) Francisco Gutierrez, Executive Director, introduced Mark Alvarado, Principal, with

Kelly Associates Management Group, hired to perform audit and look over City financial and budget documents. Firm has extensive background with auditing and government management.

Presented overview of fiscal year 2017-18 budget and proposed budget plan. Staff

seeking committee direction to finalize draft for tomorrow night’s council meeting. Overview will be of general fund revenue & expenditure assumptions of the plan currently in place. If committee would like to make any recommendations or changes, those can be included in final budget. Assumptions includes loss of ICE contract; reduction of Water Transfer Revenue; increase of top six revenue sources; recognizes the operations of additional Medical Marijuana Dispensaries; and completion of Citywide Fee Study in 4th Quarter of FY 17-18.

Expenditure assumptions: Assumes no labor negotiated increases; reflects PERS increase; includes increase to Health Insurance; increase of OCFA & Ambulatory cost; incorporates Graffiti Abatement Program funding in General Fund; includes allocation for 3rd COPS Grant $1.0M; includes funding for City’s annual share of Animal Shelter construction costs; includes increase to Worker Compensation rates; recognizes financing of 800 MHz final phase; and continues current attrition value that was started last year. From a percentage basis; Police department continues to be highly funded at 49.7%, followed by Fire contract at 21.0%, then Recreation & Library at 8.3%, and so on. Technology infrastructure is included in ‘Other’. Councilmember Martinez would like to have IT related funding highlighted for council viewing. Budget debt of $14.M identified for current year with a budget gap of $19.5M for next year. Trying to establish two year vision plan in order to address the City’s various issues. Current plan, in order to balance next year’s budget - one item identified is mid-year moving of jail from Type II to a Holding facility with a cost savings of $4M. Strategic plan funded year after year, currently has enough funds to sustain itself next year therefore not warranting a new budget of $2.5M. It currently has close to $2.5M

MOTION to Approve: Sarmiento SECOND: Benavides VOTE: AYES: Martinez, Benavides, Sarmiento (3) NOES: None (0) ABSENT: None (0)


remaining in its balance. Also identified $1.0M from the opening of dispensaries for the medical marijuana tax, for FY 18-19 it will include change in ordinance to broaden operation hours and such, and will be reflected in outer year. Robert Cortez, Deputy City Manager, added this is a conservative number that will be brought to the City Council at first meeting in June; which will include Bowers, signage. Anticipate numbers will be increasing, conservative ballpark number to be used at this time. Change in operation hours will provide operators about 40% more opportunity to be open and sale their medical marijuana, anticipating generated increases. In moving from a Type II to holding facility, intent would then be to close the Bureau of Prisons and Marshals contract. Would technically use $2.5M from moving to a holding facility, so that would have to be included. City attorney has expressed including some type of ordinance that would recover legal fees in terms of development, so placeholder for $100,000 placed, which would mean that our budget gap would narrow to $9.3M and if you use one-time monies of $9.3M then you would have a balanced budget. This is a placeholder for now as priories have and will be discussed, so those can be included as additions to FY17/18. Looking at Budget Gap for FY 18/19 the plan shows: full value of jail recognizing close of Type II jail and there would be no Strategic Plan funds, Medical marijuana tax changes will be recognized, sale of land on Main Street related to hotels, Citywide Fee Study approved by council, recognize full value of jail revenue, identified revenue sources of two new hotels [Holiday Inn Express and Hampton Inn], expanding parking enforcement, potential economic development and jail reuse revenue, and legal expense reimbursement. The adjusted budget gap for year 2 would be $8.9M; use of remaining one-time monies and if economic uncertainty funds tapped; budget gap then would be $0.7M. If the Economic Uncertainty of $3.M is used, funds would be exhausted. Intent is to not use operating reserves as per fiscal policy; balance out any variations as they may occur to revenues (Prop 6). Use of operating reserves would require 2/3 council approval. Uncertainty funds allows you to use those monies for a two-year period and develop a plan to recover those monies and build up reserves. Mayor Pro Tem Martinez: Use of one-time funds to balance budget is not good practice. Not in favor of amending fiscal policy. Willing to support a resolution for one-time monies. Need ongoing sources of revenues to fulfill budget expenses, unless we make serious cuts. Mr. Gutierrez added: Policy not required to be changed as it relates to operating reserves. The one-time element specifically indicates you can only use for term specific or as one-time expenditure. No trigger that allows council to split or change that. However council has to take action, as policy does not currently allow monies


to be used for labor costs. Hence resolution needed with council 5 votes, for two-year use, giving staff direction to make changes. FY 2017-18 Identified Priorities: Items listed intended to provide information as discussed and available for council consideration; but not currently part of the budget. Budget gap would increase if included. Generating additional revenue or major cost reduction would need to be discussed for FY 18/19. Seeking committee direction on whether you want to go with base budget or put in any of the other items. Mayor Pro Tem Martinez stated Smart Cities concept: “Smart cities” solutions use advanced information and communication technologies to collect, communicate, and analyze data to improve the design and operations of a city’s core systems and programs, as well as citizen engagement, for greater efficiency and effectiveness, thus improving the city’s sustainability, resilience, bottom line and quality of life. How we transition with park ranger program has been asked for by community and should be put down on list. More plan checkers and inspectors in planning working with developers by hiring staff to help capture and recover costs and generate monies. Email will be sent with list of items for consideration.

6. Discuss Revisions to Budget and Fiscal Policy {Strategic Plan No. 4, 1d} -

(FMSA)

Francisco Gutierrez provided presentation on Budget & Financial Policy. Current policy adopted in 2012 was developed for dealing with recession of 2008 and City shortfalls. Timeline of 2006 to 2012 reviewed. Current reserve level goals and value were also reviewed. Reserve levels are based on year-end operating expenditures. As the budget grows, you’re chasing the 20%. Operating reserve cannot be used to cover budgetary shortfalls unless approved by 2/3 vote of the City Council. Robert Cortez added: Two year plan to insure sustainability. If council choses by 2/3 vote to use operating reserve, the fiscal policy would then require the council to develop a two year plan. This would then replenish and achieve 20% reserve goal over a two year period. Committing to be fiscally prudent to raise enough funding or savings to get reserves back to 20%. Councilmember Sarmiento inquiring if declaration of fiscal crisis required, but not stated in policy. Would like staff to check with City Attorney’s office if language for declaration of crisis included. Mayor Pro Tem Martinez would only support one time use of funds for resolution; not for ongoing costs. Economic Uncertainty minimum reserve level ranges from 1% to 10% of general fund revenues; current balance is $3.8M, a little over 1.5%. Economic Uncertainty can be used to balance the budget upon determination of a structural deficit by a


2/3 vote of the City Council. Authorization to utilize Economic Uncertainty reserve beyond two consecutive years is strictly prohibited. Current policy states general fund year-end operation balance can be considered for term specific operational or capital needs for one-time items. Policy does not include fund balance categories or definitions or calculation of operation balance. Would like to have policy expanded to include these and any other committee suggestions. Reserve level options: 1) Status Quo – Maintain 20% operating reserve level, to maintain rating; 2) Adjust the current reserve level to 2 months of operations (16.67% - GFOA Recommendation); 3) Establish reserve level at 15% (in compliance with policy); 4) City Council establishes new reserve level. Robert Cortez added: other alternative is to give direction to revise policy to state between 2 months of operation but up to 20%, that way when you do budget at a minimum we’ll have 2 months’ worth of reserve. If below the 20%; you’re still within the policy and would solve rating issue. Intent is to protect reserves. Language can be modified to show up to 20%. Use of One-time monies options: 1) Status Quo – can only be used to match one-time non-recurring expenditures, term specific projects and programs, as well as capital expenditures; 2) to offset structural deficits for a two-year period only (Economic Uncertainty remains the same); 3) City Council exercises 100% full discretion and includes the use of one-time monies to balance structural deficits, requires 2/3 vote by the City Council (Economic Uncertainty remains the same). Councilmember Sarmiento suggests separating policies (budget vs. reserves) for clarity for council and public. For operating reserves, language for declaration of fiscal crisis if not already existing, might be considered to include in policy. Draft budget will be presented at May 16th City Council Meeting. Actual budget will be on June 6th City Council Meeting. Options will be listed for council to select.

7. Jail Cost Review and Structure {Strategic Plan No. 1, 3} - (PD) Christina Holland, Jail Administrator, provided overview of Type I and Type II jail

models. City currently operates a Type II jail facility, primarily for pre-trial and sentenced inmates, Santa Ana Jail contract partners provide inmates, no local arrests remain in our custody. Type II requires comprehensive medical services, food services, law library, education and religious programs. Type I Jail Facility is intended for pre-arraignment felony/misdemeanor offenders held for 48-72 hours and are provided meals, uniforms, bedding and hygiene supplies as they do stay overnight.

Temporary holding facility is more for our local arrests who are being released to county on same day of arrival. Held for 4-6 hours for booking or until they are sober


enough to care for themselves. Minimal contract and supply requirements. Currently most other cities have holding facilities. Once county dropped booking fees, most changed to temporary holding and transferred on same day to county.

Ms. Holland reviewed presentation on Type II with Contract Housing current model

as of July 1, 2017: Fiscal overview, housing contracts, staffing, and services provided. No other cities utilize this model. For Type I: no housing agreements, offenders provided uniforms, hygiene items, meals, phone services and visitation allowance. Court lists prepared for staff daily for arraignments scheduled and transport to court by jail staff. Currently LAPD, Huntington Beach PD and Pasadena PD utilize the Type I model. Robert Carroll, Police Administrative Manager, added that for Type 1, because of our proximity to Orange County facility, cost would be $0.5M to $1.0M more than temporary holding facility.

Temporary Holding facility model fiscal overview, staffing and services provided as part of presentation. Anaheim PD, Costa Mesa PD and Garden Grove PD utilize the temporary holding facility model. Pending items: Awaiting jail re-use report and City Council direction to revise the FY 2017-18 budget to reflect transition to selected jail model. Deputy City Manager, Robert Cortez, added that floors three and four are available for re-use. There are different holding facilities models, dependent on city council direction on model; this one assumes keeping all job titles and pay of current staff. There are other models that outsource or change the structure of holding facility which could generate additional savings. Jail has 512 beds available but only one-half used for ICE and marshals combined. Changing from Type II to holding facility would also change staff levels requiring different job requirements. Preliminary estimated savings would be 30% if adjustments made to staff. Floors could change to asset versus liability, if re-used and could generate additional revenue. Jail business is not a core business of City to generate revenue. Looking forward to review reuse study with options. Suggestion to include slide, if City to opt out of jail service. Look at hybrid model for the two floors that may become available. Christina Holland added that reuse study should be completed in August.

8. Revenue Enhancement Options {Strategic Plan No. 4, 2} (FMSA)

Francisco Gutierrez, presented Revenue Enhancement Options. Shown are option items undertaken or proposed to be undertaken in terms of trying to generate additional revenue. New revenue consideration items and information on sales tax and hotel visitor’s tax were provided. Citywide fee study could provide numbers for sustainability and would be dependent on type of service level to be given. Working with current staffing or change with upgraded service/staff.


Development impact fee study contract just provided to consultant, will take six to nine months to complete as it requires information from departments, per Fred Mousavipour, Executive Director of Public Works. For sale of City-owned properties, next steps would be recommendation to purchase technology to install and run asset management and will take four months to convert data into system to be ready to use in about a year from now. There are a number of initiatives for approval: Smart Santa Ana, fiber optics with partner to merge with utilities and LED programs, affordable internet, light conversion, review franchise fees with utility companies, and SARTC deferred maintenance to attract tenants.

9. Cooperative Business Ordinance {Strategic Plan No. 3, 1}

Mayor Pro Tem Martinez: “Cooperative business ordinance primarily supports idea of worker cooperatives – businesses that are owned and democratically controlled by workers – as a key part of the City’s economic development strategy moving forward. The worker cooperative model has proven to be an effective tool for creating and maintaining sustainable, dignified jobs; generating wealth; improving the quality of life of workers; and promoting community and local economic development, particularly for people who lack access to conventional means of business ownership.” “Direction would be to: direct City Manager to develop recommendations to support local worker cooperatives, particularly ones that target areas of need in Santa Ana such as food deserts. It also directs the city manager to review the City’s small business program loan applications and other materials to ensure worker cooperative can access those on the same basis as comparable conventional businesses. Direct city manager to develop recommendations on how to reach out to existing business owners and present worker cooperative conversion as a retirement or succession plan for older business owners. Direct the city manager to review City procurement and contracting procedures for any possible barriers to worker cooperative to bid on City contracts.” Can look at Oakland and Berkeley models. Will forward email from Ana at Santa Ana Building Healthier Communities for staff to review.

ITEMS MOVED TO NEXT COMMITTEE MEETING

• Cooperative Business Ordinance – bring back to committee for next steps. PUBLIC COMMENTS:

• Apolonio Cortes – co-op member and spoke in favor of ordinance. • Adian Munoz – spoke in support of cooperative business ordinance. • Ana Urzua – spoke in support of cooperative business ordinance.


• Reyna Mendoza – spoke in support of cooperative business ordinance. • Carlos Melendez – spoke in support of cooperative business ordinance.

STAFF MEMBER COMMENTS: Robert Cortez, Deputy City Manager, thanked committee for opportunity to have discussion. Budget is extremely important and decisions made were critical to help produced balanced budget. COMMITTEE MEMBER COMMENTS: Mayor Pro Tem Martinez has emailed notes and information to Robert Cortez, as well as forwarded email from Ana Urzlia @ SABHC. Adjournment – 8:01 p.m. ___________________________________ Teresa Ramirez, CAP-OM Recording Secretary, FMSA

Purchase of Southern California Edison-Owned Streetlights

September 18, 2017

EDIBT Item 3

Background• City of Santa Ana owns approx. 3,300 Streetlights• Southern California Edison (SCE) owns approximately

11,800 Streetlightso Approximately 7,800 are available for purchase

o Remaining 4,000 are currently not available for purchase because they are located on SCE’s transmission / distribution poles; they could become available for purchase in the future

LED Benefits

• Improved visibility/safetyo LED lights improve brake reaction time by 25%

• Greater Reliability/Reduced Maintenance Costso LED lights have life expectancy of 15+ yearso HPS lights have life expectancy of 2± years

• Better Environmento Reduce Carbon Footprint by Removing 1,850 metric tons

emissions/yr. Equivalent to removing 385 cars• Cost Reduction

o Ultimately save nearly $1M / year

System Benefits/Capabilities

• WiFi Capability • Dimmable Controls• Immediate Outage Notifications• Measure Electrical Usage• Audio/Visual Capability• Remote Water Meter Relay• Police Notification

Use Savings Purchase & UpgradeSAVINGS

• Total Current Streetlight Budget (General Fund) $2,400,000• Non-Participating Costs -$1,431,200

Savings $968,800

LEVERAGE SAVINGS TO FINANCE ACQUISITION & SYSTEM IMPROVEMENTS

PROPOSED FINANCING

• Purchase Cost (per City/SCE Agreement) $3,800,000• LED Conversion Cost (per August 2017 bids) $2,000,000

Subtotal $5,800,000• Contingency for Purchase & Upgrade (5%) $290,000• Misc. Improvements (maintain system operations) $550,000

Total Amount to be Financed $6,640,000

Finance $6,640,000 $773,080 per year for 10 years

Cashflow – 10 yrsFINANCING FOR CAPITAL ACQUISITION

TOTAL AMOUNT FINANCED $6,640,000

Debt Service per year for 10 years $773,080

ANNUAL CASH-FLOW• Verified Savings $968,823• Debt Service ($773,080)

O&M - PAY AS YOU GO• Pole Knockdowns ($25,000)• Pole Replacements ($25,000)

NET CASHFLOW - YEARS 1 - 10 $145,743

USE END OF YEAR CASHFLOW TO SEPARATELY FINANCE UNDER-LIT AREAS$145K can be leveraged to $1.25M (10 year)

TimelinePreliminary Feasibility

Deposit to Southern California Edison (SCE)

California Public Utilities Commission (CPUC)

Confirm Feasibility & Finance Plan

City Council Financial Plan Approval

Streetlight Conversion

2013

April 2014

July – October 2017

September 2017

11/07/2017

December 2017 – June 2018

City Council Conditional Approval

Start Negotiating Costs / Agreement September 2015

April 2017

Fina

ncin

g -S

ide

by S

ide

Public Works Agency and Finance AgencySeptember 18, 2017 Public Works Recommended Option Shortest Pay-Back Financing Option

OPTIONS SUMMARY - AUGUST 2017Debt Service Financing for Purchase & LED Upgrades Years 1 thru 12 Years 13 + Years 1 thru 10 Years 11 +FINANCING

Purchase Lights from SCE $3,800,000 $3,800,000Upgrade Lights upon Purchase to LED $2,000,000 $2,000,000

SubTotal $5,800,000 $5,800,0005% Contingency (Purchase & Upgrade) $290,000 $290,000

Sub-Total Purchase & Upgrades $6,090,000 $6,090,000

Illuminate Underlit Areas (approx 300 poles/luminaries) $1,500,000 $0Install Metering & High Tech Controllers (est.) $500,000 $500,000

SubTotal $2,000,000 $500,00010% Contingency (Miscellaneous Improvements) $200,000 $50,000

Sub-Total Misc Improvements $2,200,000 $550,000

Total Debt Financed $8,290,000 $6,640,000

Debt Debt Service for 15 years Debt Service for 10 years$828,158 $773,080

Cash Flow Years 1 thru 12 Years 13 + Years 1 thru 10 Years 11 +

Total Streetlighting ProgramsGF Commitment $2,400,000 $2,400,000Rebate*

Expenditures OngoingNon-Participating Streetlights ($1,431,177) ($1,431,177)

Savings$968,823 $1,044,677 $968,823 $1,044,677

Expenditures - Debt Service Financing ($828,158) ($773,080)

Expenditures - Pay as you go ($27,500) ($450,000) ($50,000) ($450,000)

Pole Knockdowns (5 poles/yr X $2.5k/pole) $12,500 $25,000Pole Knockdowns (20 poles/yr X $2.5k/pole) $50,000 $50,000Pole Replacements (5 poles x $5k/pole) $0 $0 $25,000 $0Pole Replacements (50 poles x $5k/pole) $0 $250,000 $0 $250,000Misc repairs $15,000 $50,000 $0 $50,000

Other Improvements $100,000 $100,000$27,500 $450,000 $50,000 $450,000

Net Annual EOY Balance $113,165 $594,677 $145,743 $594,677

SAME

Recommended Option

SAME

City of Santa Ana Business License Tax Rate Review

1

Proposed approach and time-line to conducting the City Business License Tax Rate Review would be as follows:

(1) Compare Santa Ana’s business license tax rate structure, related fees and charges, general fund revenues, and other associated new business related permit costs to that of other Orange County cities as well as to comparable cities statewide. (For survey approach and included content - see below). *

Timeline: – two weeks (depending on availability of information on-line and/or availability of responding cities’ business license tax & budget staffs).

(2) Meet with Chamber of Commerce and Small Business Collaborative Cooperatives Groups to discuss any concerns with current business license fees and process.

Timeline: – 2 weeks.

(3) Analyze the distribution of business license tax revenue by type/category of assessment and between commercially based businesses, home based businesses, out-of-town businesses, and new start-up businesses.


(4) Evaluation of business license taxes across multiple jurisdictions, to provide effective comparisons using Kosmont- Claremont McKenna College's Rose Institute study criteria to convert the many various business license tax assessment methodologies used by California cities to a comparable gross receipts standard (most recent Kosmont Study materials ordered).


(5) Internal review – prepare report.

Timeline: – one week.

(6) Follow-up meetings with Chamber of Commerce (SACOC) and Small Business Collaborative-Cooperatives Groups –Delhi Center (DC) and Santa Ana Building Healthy Communities (SABHC).

Timeline: – one week prior to Economic Development, Infrastructure, Budget and Technology Committee (EDIBT) presentation.

(7) Presentation to EDIBT Committee.

Timeline: – November 13, 2017 Committee Meeting

___________________________

* Compare of Santa Ana’s business license tax rate structure to that of other Orange County cities aswell as to comparable cities statewide will be accomplished by an in depth survey comprising:

EDIBT Item 4

City of Santa Ana Business License Tax Rate Review

2

• Survey all Orange County Cities and Top 12 Cities Statewide with regards to their methods of business license tax assessment

o To Include – Nature and Types/Categories of Assessment

Gross Receipts Regressive Tax Rates Proportional Tax Rates Progressive Tax Rates

Type and Numbers of Persons Engaged Flat/Variable Flat Rates Other

Seasonal/Itinerant Rates Hobbyist/Gratuitous Rates Residential Rentals Commercial Rentals

Minimum of Basic Tax Rates Maximum Tax Caps Registration Fees/Charges Revenue Generated ($) Revenue as Percent (%) of General Fund Associated Regulatory Certificates/Permits

Certificate of Occupancy Home Occupancy Permit

Documents

COUNCIL COMMITTEESPECIAL MEETING AGENDA ECONOMIC