There was a call for Alvarez to resign after she compared local Jewish businessman Irv Chase to Adolf Hitler during a special meeting dealing with a downtown Santa Ana tax.
"I specifically told them, 'Hey, if Hitler rents you a place, is giving us a great deal, so who cares what he stands for?'" Alvarez said at a city council meeting on Aug. 24.
Alvarez has since apologized, but residents jammed city council chambers on Tuesday night, demanding she step down.
The council voted 4-3 to condemn Alvarez's comments, but stopped short of taking away her title. Alvarez cast the deciding vote.
The council also agreed to hold a town hall meeting on race and civility to be facilitated by the Orange County Human Relations Commission.
