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2/13/2001 - Council Minutes - CC Minutes Reg Meeting APPROVED BY COUNCIL ON FEBRUARY 27, 2001 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING February 13,2001 The City Council of the City of Orange, California convened on February 13, 2001 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 4:30 P.M. SESSION 1. OPENING 1.1 INVOCATION- Given by Pastor Tom Hoover, Covenant Family Fellowship 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Mayor Murphy 1.3 ROLL CALL PRESENT - Slater, Alvarez, Mayor Murphy, Coontz ABSENT - None 1.4 PRESENTATIONS/ ANNOUNCEMENTSI INTRODUCTIONS . Mayor Murphy announced the Council meeting will adjourn in memory of Vernon Valentine. A memorial tribute was read and presented to the family. (C2500.D.5) . Mayor Murphy announced a former City employee, Joan Baltes, was in the hospital in serious condition. . Resolution No. 9407 was presented to former Senator John Lewis, 33'd District, commending him for twenty-one years of loyal and dedicated service to the people of California. . Resolution No. 9398 was presented to Corporal Jack Nanigian of the Orange Police Department commending him for more than twenty-five years of loyal and dedicated service. . Proclamations were presented to corporate sponsors of "Every Fifteen Minutes" teenage drunk driving program: Ultimate Audio, Carl's Jr., Archie's Towing, Orange County Juvenile Court, Enchanted Florist, Hilton Suites, UCI Medical Center, Orange County College Theater Arts and Shannon-Donegan Mortuary. Police Chief Andy Romero explained this is an intense awareness program to help reduce teenage drunk driving incidents. . Resolution No. 9406 was presented to Frank Sun, Jerry Bailey, Majid Farhat, George Liang and Dick Barnes of the City of Orange Public Works Department for their PAGE 1 CITY COUNCIL MINUTES February 13, 2001 extraordinary oversight and innovation in reducing costs on the remediation project at the park site located at Prospect and Spring Streets and saving $570,000 of City funds. . Chuck Mabry, former resident of the Rock Creek Ranch area, commended City staff and the Council for their efforts in developing this park site on Prospect. . A Presentation was made to the United Way City Employee Annual Campaign spotlight organizations - American Red Cross of Orange County and Mental Health Association of Orange County. Organizations were presented with checks of$I,393 each. (C2500.E) . Mayor Murphy announced the results of the YMCA Indian Guides Pinewood Derby held the previous weekend at the Orange Mall. "Team Orange" came in second with a time of 6 seconds. 2. PUBLIC COMMENTS Pat Kelly, 109 W,. Chapman, spoke about the filming in Downtown Orange which has caused a disruption, creating a loss of revenue to the merchants; parking problems; blocked doorways to businesses, traffic congestion; and downtown decorations and banners have been removed. The City Manager was instructed to follow up on the rules and regulations pertaining to filming requirements. Councilman Alvarez volunteered to form a committee of local merchants and staff to develop a policy for filming in Orange. He did not want to discourage the film industry from using Orange but it should not be at the cost of local businesses. The City Attorney advised Councilman Alvarez that because of his business in Downtown Orange, any type of proposal he developed would have to be as a private citizen. 3. CONSENT CALENDAR All items on the Consent Calendar are considered routine and are enacted by one motion approving the recommended action listed on the Agenda. Any member of the City Council, staff or the public may request an item be removed from the Consent Calendar for discussion or separate action. Unless otherwise specified in the request to remove an item from the Consent Calendar, all items removed shall be considered immediately following action on the remaining items on the Consent Calendar. 3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of February 13, 2001 at Orange Civic Center, Main Library at 101 N. Center Street, Police facility at 1107 North Batavia, the Eisenhower Park Bulletin Board, and summarized on Time-Warner Communications, all of said locations being in the City of Orange and freely accessible to members of the public at least 72 hours before commencement of said regular meeting. PAGE 2 CITY COUNCIL MINUTES February 13,2001 3. CONSENT CALENDAR (Continued) ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office ofthe City Clerk. 3.2 Request Council Confirmation of warrant registers dated January 18, 25 and February 1, 2001. ACTION: Approved. 3.3 Request approval of City Council Minutes, Regular Meeting January 23, 2001. ACTION: Approved. 3.4 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. AGREEMENTS 3.5 Annexation Agreement request by Jeffrey and Deborah Connolly to connect their property to City of Orange sewer. (A2100.0 AGR-3693) SUMMARY: Jeffrey and Deborah Connolly, owners ofresidential real property located at 15602 Cully Drive in unincorporated area of the County of Orange, have requested to connect their house sewer lateral to the City sewer main in Cully Drive. They have executed an annexation agreement with the City of Orange and are requesting City Council approval. ACTION: Approved the connection request from Jeffrey and Deborah Connolly and authorized the Mayor and the City Clerk to execute this annexation agreement on behalf of the City. FISCAL IMP ACT: None. The property owners will pay all connection fees prior to the sewer connection. 3.6 Consultant Agreement to provide as-needed supplemental engineering project management services to be performed on-site in the Public Works Department. (A2100.0 AGR-3692) SUMMARY: This Agreement authorizes the City to contract out to a consultant for temporary engineering project administration services under the supervision of Public Works staff to handle peak proj ect demands. ACTION: 1) Awarded a contract in the amount of $75,000.00 to CBM Consulting, Inc., to provide on-site engineering project management services to the City, and authorized the Mayor and City Clerk to execute on behalf of the City; and 2) Authorized the appropriation of $40,000.00 from Fund 100 to Account No. 100-5011-426700 (Other Professional Services) to be used for CBM Consulting, Inc., services. PAGE 3 CITY COUNCIL MINUTES February 13,2001 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: Funding for CBM Consulting, Inc., services shall be distributed between General Funded projects and Special Funded projects as follows: $40,000.00 $35,000.00 100-5011-426700 Other Professional Services - as appropriated. Public Works Special Projects as appropriated in the Capital Improvement Program budget. 3.7 First Amendment to Consultant Agreement with SaifullBouquet, Inc. for seismic retrofit design of the City Yard Warehouse and City Yard Garage buildings. (A2100.0 AGR-3474.1) SUMMARY: This contract amendment is needed to allow the design consultant to review and approve shop drawings, requests for information, and perform final walkthrough to insure compliance with the plans and specifications. For a complex project such as this seismic retrofit project, only the designer (Engineer of Record) is authorized to perform the above tasks ifhe is to be held accountable for the design. ACTION: Approved the First Amendment to Consultant Agreement in the amount of $26,000 with Saiful/Bouquet, Inc., and authorized the Mayor to execute, and the City Clerk to attest, on behalf of the City. FISCAL IMPACT: Funds are budgeted or are available in the following accounts: 500-5011-481105-2974 550-5011-481105-2974 (FEMA) 500-5011-481105-2975 550-5011-481105-2975 (FEMA) 725-5028-481105-9851 $137,108.00 $171,957.00 $ 70,000.00 $204,246.00 $130,000.00 $713,311.00 (City Yard Warehouse) (City Yard Warehouse) (City Yard Garage) (City Yard Garage) (CorporationYard Improvements) Total (REMOVED AND HEARD SEPARATELY) 3.8 Supplemental Services Agreement with Affiliated Computer Systems (ACS) to conduct several one-time information technology projects. (A2100.0 AGR-0978.B.9) NOTE: Mayor Murphy abstained on this item due to an employment conflict. SUMMARY: The execution of this Supplemental Services Agreement with Affiliated Computer Systems (ACS) provides for additional information technology support for three projects: PC Upgrade, Information Technology Inventory and Laserfiche Weblink Installation. FISCAL IMPACT: The Supplemental Services Agreement cost is $19,787. Sufficient funds are budgeted in the FY 2000-01 MIS budget; 780-1601-426700-0000 (MIS Professional Consulting). PAGE 4 CITY COUNCIL MINUTES February 13, 2001 3. CONSENT CALENDAR (Continued) Councilman Alvarez asked about the continuing expenditures for computer upgrades. The City Manager explained there is a basic contract with ACS, but additional specific issues such as these require amendments to that contract. Upgrading computers is an ongoing project which is necessary so the City does not fall behind in technology. MOTION - Slater SECOND - Coontz AYES - Slater, Alvarez, Coontz ABSTAIN - Mayor Murphy Moved to approve Supplemental Services Agreement with Affiliated Computer Systems (ACS) and authorized the Mayor and City Clerk to execute on behalf of the City. 3.9 Award Consultant Agreement for Master Plan ofEl Camino and Yorba Parks. (A2100.0 AGR-3691) SUMMARY: Purkiss Rose-RSI has been retained in an amount not to exceed $55,000 to prepare the Master Plans for EI Camino and Y orba Parks. The Master Plans for these parks are an extension of the Master Plan for Parks, Facilities, Recreational and Community Services adopted by the City Council in December, 1999. Purkiss Rose-RSI has been selected based on the firm's expertise on the recreational and facilities planning of the City's parks and open space. The consultant will perform site analysis, conduct community workshops, prepare conceptual designs and develop construction cost estimates for both parks. Since no funds were budgeted for this project, staff recommends that funds be transferred from the El Modena High School Field Lighting project to the El Camino Park Renovation project. The El Modena High School Lighting project will still be a C.I.P. project but without current funding. ACTION: I) Awarded the Consultant agreement to Purkiss Rose-RSI in an amount not to exceed $55,000 for the Master Plan for El Camino and Yorba Parks; 2) transferred appropriation from funds allocated to the Park, Acquisition and Development Fund (510), Account 510-7021-485100-0144 (El Modena High Lighting) in the amount of $69,000 to Account 510-7021-481105-0607 (EI Camino Park Renovation); and 3) authorized the Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: After the fund transfer is executed, there will be sufficient funds to pay for this project in the following account: 510-7021-4811 05-0607 (El Camino Renovation) $69,000 BIDS 3.10 A proposal to approve plans and specifications, and authorize advertising for bids for the Waterline Renewal for Highland St. and Adams Ave. (W-598). (C2500.P) PAGE 5 CITY COUNCIL MINUTES February 13,2001 3. CONSENT CALENDAR (Continued) SUMMARY: This project consists ofreplacing the existing aging waterlines in order to improve the water supply system for domestic and fire protection purposes for the CDBG target area at Highland St. and Adams Ave. in Orange. ACTION: Approved plans and specifications and authorize bids for Waterline Renewal for Highland Street and Adams Avenue (W-598). FISCAL IMPACT: Proposed funding for this project in FY 2000/01 budget in Accounts: 601-8041-484102-1820 Construction, Labor & Equipment $100,000.00 600-8041-474501-0000 Transmission & Distribution Materials $ 53,000.00 All engineering, inspection and contract administration cost will be absorbed by current year funding for Water Division Salaries Fund 600. (REMOVED AND HEARD SEP ARA TEL Y) 3.11 Award of Bid No. 001-23 for Ten 2-Wheel Drive Utility Vehicles and One Full Size Extended Cab Pick Up Truck. (A2100.0 AGR-3690) NOTE: Mayor Murphy abstained on this item due to an employment conflict. SUMMARY: Ten 2-Wheel Drive Utility Vehicles and One Full Size Extended Cab Pick Up Truck have been scheduled for replacement as part of the approved vehicle replacement schedule in the FY 2000/2001 budget. FISCAL IMPACT: Funds in the amount of$254,51 1.80 are budgeted and available in the Motor Vehicle Replacement Account, #720-5023-472102. Councilman Alvarez asked about the use of utility vehicles rather than pick up trucks. The City Manager explained the costs and uses of all vehicles are scrutinized carefully. In some cases, it is actually cheaper to use these vehicles, and they also provide more flexibility and can be used in disaster situations. Councilmember Coontz suggested in the future to include a description in the staff report of which departments will be using these vehicles and for what purposes. MOTION - Alvarez SECOND - Coontz AYES - Slater, Alvarez, Coontz ABSTAIN - Mayor Murphy Moved to I) Award Bid No. 001-23 to Ford of Orange in the amount of$254,511.80; 2) authorize the Mayor and City Clerk to execute on behalf of the City; and 3) authorize the City Manager to surplus the replaced vehicles at an auction. PAGE 6 CITY COUNCIL MINUTES February 13,2001 3. CONSENT CALENDAR (Continued) 3.12 CLAIMS (C3200.0) The City Attorney recommends that the Orange City Council deny the following Claim(s) for damages: a. Lynn and Sue Ann Davidson b. Michelle Macias c. Donna Shimer FISCAL IMPACT: None. ACTION: Denied Claim(s) for damages and refer to City Attorney and Adjuster. CONTRACTS 3.13 Award contract for Bid 001-20 for the Seismic Strengthening of the Water Division Pump House(W-596). (Continued from January 23, 2001.) (A2100.0 AGR-3701) SUMMARY: The Water Division Pump House building at 189 S. Water Street has been identified as requiring a seismic structural retrofit. This project will strengthen the building to current seismic standards. ACTION: I) Awarded the contract in the amount of $369,760.00 to the lowest responsible bidder, DRP Construction Company, 1093 Crest Dr., Encinitas, CA 92024; 2) authorized the Mayor and City Clerk to execute the contract on behalf of the City; 3) appropriated an additional $150,000 from Water Capital Fund 601 Reserves into account number 601-8041-481200-8211, Water Plant Building Seismic Retrofit. FISCAL IMPACT: Available project funds approved in FY 2000/01 budget are: $250,000.00 601-8041-481200-8211 Water Plant Building Seismic Retrofit Account Appropriation required: $150,000.00 601 Water Capital Fund Reserves into 601-8041-481200-8211 Water Plant Building Seismic Retrofit Account. 3.14 Award of Contract - Bid No. 001-22; Project SP 3347; Annual Curb and Gutter Replacement at Various Locations (Year 2000-2001). (A2100.0 AGR-3700) SUMMARY: This project will provide for reconstruction of damaged curb and gutter at various locations. ACTION: Accepted Bid No. 001-22 in the amount of$55,200 from the low bidder, Ranco Corporation, P.O. Box 9007, Brea, CA 92622 and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds are budgeted and available in the following account: 262-5021-427100 $70,000.00 (Annual Curb & Gutter Maintenance) PAGE 7 CITY COUNCIL MINUTES February 13,2001 3. CONSENT CALENDAR (Continued) 3.15 Final Contract Change Order; Bid No. 990-35; Project No. SP-3307, Katella Streetscape Improvements. (A2100.0 AGR-3578) SUMMARY: This Final Contract Change Order authorizes payment for the increase in final as-built quantities at contract unit prices and extra work at agreed prices. The total contract cost for this project is $283,325.20. ACTION: Approved a Contract Change Order No. I in the amount of $7,082.40 to Hillcrest Contracting, Inc. for the extra work. FISCAL IMPACT: Funds are budgeted or are available in the following account: 934-9821-485100-9196 $7,082.40 (Katella Streetscape Improvements) 3.16 Award of Contract to C.A. Granger Construction Inc. for Police Facility Improvements. (A2100.0 AGR-3699) SUMMARY: The proposed Police Facility Improvements will help ensure the integrity of an exterior wall. ACTION: Awarded the contract to C.A. Granger Construction, Inc. in the amount of $52,366 and authorized the Mayor and City Clerk to execute on behalf ofthe City. FISCAL IMPACT: Sufficient funds are available in account number 100-4011-424102 (General Fund-Police Administration-Repairs to Building). DONATIONS 3.17 Donations to the Police Department Canine Program. (C2500.K) SUMMARY: The Izaak Walton League of Orange, Inc. has donated $500, the Women's Club of Orange has donated $100, and Robert A. Ling has donated $1,000, totaling $1,600, to the Orange Police Department Canine Program. ACTION: Accepted the donation of$500 from the Izaak Walton League of Orange, Inc., $100 from the Women's Club of Orange, and $1,000 from Robert A. Ling, for a total of $1,600, all of which have been deposited into revenue account 100-4021-293900 (General Fund-Patrol-Donations); and appropriated the $1,600 to account 100-4001- 475100-2307 (General Fund-Patrol-Other Capital Outlay-K9/SW AT Donation). FISCAL IMPACT: There will be no impact to the General Fund as the Izaak Walton League of Orange, Inc., the Women's Club of Orange, and Robert A. Ling have donated the funds. PAGE 8 CITY COUNCIL MINUTES February 13, 2001 3. CONSENT CALENDAR (Continued) 3.18 Accept donation from Nabisco's Milk-Bone and appropriate funds to purchase a new police service dog for the Police Department's Canine Program. (C2500.K) SUMMARY: Nabisco's Milk-Bone, in partnership with Albertsons, is donating $5,500 towards the purchase of a new police service dog for the Orange Police Department's Canine Program. ACTION: Accepted the donation of $5,500 from Nabisco's Milk-Bone, for deposit into revenue account 100-4021-293900 (General Fund-Patrol-Donations); and appropriated the $5,500 to account 100-4021-475100-2307 (General Fund-Patrol-Other Capital Outlay-K9/SW AT Donation) towards the purchase of a new police service dog. FISCAL IMPACT: There will be no impact to the General Fund as Nabisco's Milk-Bone has donated the funds. PURCHASE OF PROPERTY 3.19 Purchase of 15 foot wide strip ofland at 1826 W. Chapman Ave. (A2100.0 AGR-3694) SUMMARY: This is one of the parcels necessary for the West Chapman Avenue Widening Project. Offer was made and accepted by Pauline A. Zink, Trustee. ACTION: Authorized Mayor and City Clerk to execute all escrow papers and related documents for the purchase of a 15 foot wide strip of land located at 1826 W. Chapman Ave. Purchase price is $41,495 plus any related escrow costs. FISCAL IMPACT: Funds in the amount of $651,363.00 are available in the Chapman Avenue Widening Project - Account No. 550-5011-483300-4038-(Measure M-MPAH). 3.20 Purchase of a strip of land varying in width from 14 Y, ft. to 32 ft. located at the Southwest corner of West La Veta Avenue and the 22 Freeway Onramp. (A2100.0 AGR-3695) SUMMARY: This is one of the parcels necessary for the West La Veta Avenue Widening Project. Offer was made and accepted by Citadel Properties Orange, LLC. ACTION: Authorized Mayor and City Clerk to execute all escrow papers and related documents for the purchase of a strip of land located at the Southwest corner of La Veta Avenue and the 22 Freeway Onramp. Purchase price is $108,277 plus any related escrow costs. FISCAL IMPACT: Funds in the amount of $422,867.00 are available in the La Veta Avenue Widening Project-Account No. 550-5011-483300-4039 (Measure M-MPAH). PAGE 9 CITY COUNCIL MINUTES February 13,2001 3. CONSENT CALENDAR (Continued) RESOLUTIONS 3.21 RESOLUTION NO. 9329 (C2500.N) A Resolution of the City Council of the City of Orange approving the application for grant funds to the California Department of Parks and Recreation for youth soccer fields at a community park located at the northwest corner of the intersection of Prospect and Spring Street in the City of Orange. ACTION: Approved. 3.22 RESOLUTION NO. 9404 (A2100.0 AGR-3578) A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 990-35; SP-3307; Hillcrest Contracting, Inc.; Katella Avenue Streetscape Improvements. ACTION: Approved. (REMOVED AND HEARD SEPARATELY) 3.23 RESOLUTION NO. 9406 (C2500.M) A Resolution of the City Council of the City of Orange commending Public Works staff members for extraordinary effort on the Prospect Street Community Park remediation project. MOTION - Slater SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to approve Resolution No. 9406. (REMOVED AND HEARD SEPARATELY) 3.24 RESOLUTION NO. 9407 (C2500.D.5) A Resolution of the City Council of the City of Orange expressing appreciation to California State Senator John R. Lewis, 33ro District, and commending him for twenty- one years ofloyal and dedicated service to the people of California. Councilmember Coontz indicated she had asked for a commendation for Senator Lewis to thank him for his assistance to the City with securing significant state funds for Prospect Park during her term as Mayor because these activities occurred last year. However, the Senator was in Sacramento and unable to attend until this Council meeting. PAGE 10 CITY COUNCIL MINUTES February 13, 2001 3. CONSENT CALENDAR (Continued) MOTION - Murphy SECOND - Coontz AYES - Alvarez, Mayor Murphy, Coontz NOES - Slater Moved to approve Resolution No. 9407. Councilman Slater stated his reasons for voting No - With all due respect to the State Senator, and I appreciate the fact that he helped us with the grant for that park space to the tune of $900,000, although I know that our political lobbyist and our staff had something to do with that, I would rather in this case that a thank you letter be given instead of a Resolution. My exception is that I don't know in the past that we've done something like this. My concern is that this individual has been indicted for a felony in terms of forging Ronald Reagan's signature - indicted by the grand jury in Sacramento. Furthermore, he has been closely or peripherally involved with some of the dirtiest campaigns Orange County has ever seen. So for these reasons, I will not be supporting Resolution Item No. 3.24 nor did I sign the Resolution. 3.25 RESOLUTION NO. 9414 (T2200.0) A Resolution of the City Council of the City of Orange certifYing the City will sustain its level of expenditures for transportation purposes. ACTION: Approve. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Items 3.8, 3.11, 3.23 and 3.24 were removed and heard separately. Mayor Murphy abstained on Items 3.8 and 3.11. Councilman Slater voted No on Items 3.24. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR 4. REPORTS FROM MAYOR MURPHY 4.1 Confirmation of City Council and Regional Committee appointments; terms to expire November, 2002. Audit Committee Mayor Murphy/Councilman Slater Cities-Schools Coordinating Committee Mayor Murphy/Alternating Councilmember County Sanitation Districts of Orange County Mayor Murphy - Active Director Councilmember Coontz/Alternate Director Foothill/Eastern Transportation Corridor JPA & Sub-Committee PAGE 11 CITY COUNCIL MINUTES February 13, 2001 4. REPORTS FROM MAYOR MURPHY (Continued) Councilmember Coontz/Councilman Slater (Alternate) Growth Management Area Committee Councilman Alvarez (second member by availability) Joint Powers Fire Training Authority Mayor Murphy Orange County-City Hazardous Materials Emergency Response Authority Councilman Slater Orange County Council of Governments (COG) Councilman Slater Orange County Integrated Waste Mgt. Agency Councilmember Coontz Orange County Vector Control District Councilmember Alvarez Orange Economic Development Partnership Advisory Committee Mayor Murphy (second member fixed rotating monthly schedule) Orange Housing Development Corporation Mayor Murphy / Councilmember Coontz Orange/Santa Ana-Joint Powers Authority Transp. System Improvement Authority Mayor Murphy/Councilmember Coontz (Alternate) Santa Ana River Flood Protection Agency Councilman Alvarez Mayor Murphy announced the appointments to the Orange Housing Development Corporation needed to be included in the motion; and requested the appointment to the Orange County Regional Airport Authority be considered separately. He felt all appointments needed to be made at this time, but can be changed if necessary after a 5th Councilmember is elected in June. Councilman Slater reported the Orange County Council of Governments is a representative of District 17 of the SCAG District which the City does not belong to. In fact, none of the three representative cities - Orange, Tustin or Villa Park, belong to SCAG. Councilman Slater has been representing these cities on this Committee for six years with Councilman Bob Bell from Villa Park as the alternate. With Council's concurrence, Councilman Slater is going to ask if another city could take the lead on this if no other Councilmember from Orange is able to. It was noted the Orange County Waste Management Agency is an appointment of the County Board of Supervisors and the representation to the Orange Housing Development Corporation is a confirmation only of an appointment made by their Board. MOTION - Murphy SECOND - Coontz AYES -Slater, Mayor Murphy, Coontz NOES - Alvarez Moved to pull Orange County Regional Airport Authority for discussion; approve reappointments, terms to expire November, 2002. PAGE 12 L--_______..___. ____ CITY COUNCIL MINUTES February 13,2001 4. REPORTS FROM MAYOR MURPHY (Continued) Councilman Alvarez voted No as he suggested this item be continued to further study the membership of each Committee. Orange County Regional Airport Authority Councilman Slater/Councilmember Coontz (Alternate) Councilman Slater reported on an article in the newspaper which stated he was against the proposed El Toro Airport. He confirmed that he is a proponent of the Airport and serves as Vice Chairman of the Committee. The article misinterpreted his comments and the reporter has already apologized and will be printing a correction in the next paper. His concerns, which should have been printed, were actually for the flight patterns into John Wayne Airport which have changed recently. The flight pattern is now over the East Orange area. He requested an item be agendized for the February 27, 2001 Council meeting regarding a letter being sent to the County Board of Supervisors requesting a formal response on why the flight patterns for John Wayne Airport have changed to now fly over the East Orange area. MOTION - Murphy SECOND - Coontz AYES - Slater, Mayor Murphy, Coontz NOES - Alvarez Moved to approve the reappointments to the Orange County Regional Airport Authority. Councilman Alvarez voted No because he joins 63% of Orange residents in not supporting the proposed El Toro Airport. 5. REPORTS FROM COUNCILMEMBERS Councilman Alvarez requested an item be agendized for the February 27, 2001 Council meeting regarding the investigation into the Airport Working Group PAC. The City Attorney reported a complaint has been filed that the Airport Working Group Political Action Committee has allegedly violated the City's Campaign Contribution Ordinance. There is currently an investigation, part of which could possibly lead to a criminal investigation. Because of this he would not want to agendize this for public comment. He is reviewing the complaint and is very aware of a possible conflict of interest; and therefore, will get a second opinion from outside counsel before moving forward with any investigation. Councilman Alvarez explained the reason for agendizing this is the possibility of expending money for outside counsel. Mayor Murphy suggested a briefing in Closed Session before a public session. PAGE 13 CITY COUNCIL MINUTES February 13, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) The City Attorney stated it might be appropriate to give the Council a confidential memo; but because there is the potential for criminal investigation, there can not be any attempt by any Councilmember to direct the City Attorney's investigation as this could constitute interference with that investigation. The District Attorney would not have jurisdiction over this because it is a violation of City Ordinance and not state law. Councilmember Coontz stated an investigation is important. She has never been involved in negative political mailings and the Council needs to investigate this. Councilman Alvarez stated he would like this discussion agendized, but based on the information the City Attorney provides, he the has the option to withdraw it at that time. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 6.1 Re-appointment of citizens to the following Committees; all terms to expire June 30, 2003. AUDIT COMMITTEE Eric H. Woolery, David E. Sundstrom, Dwight Nakata, G. David Piper (alternate) BUILDING BOARD OF APPEALS/HOUSING BOARD OF APPEALS Frank Bauman, Jim Brennan, Jack Selman COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM COMMITTEE Victoria James, Mary Ellen Manning, Bea Vega, Richard Ledesma, Jan Mickelson COMMUNITY VIDEO ADVISORY BOARD Marcia Salley, Jerry Coker, Pat Buttress, Bob Mickelson INVESTMENT ADVISORY COMMITTEE James Hansen, Harold Jackson, Charles Simons ORANGE ELDERLY SERVICES, INC. BOARD OF DIRECTORS Richard Alarcon, Beulah Liebich, Barbara Resnick, Chuck See, Neil Mansdorf (Council Nominations to Board only) SANTIAGO LIBRARY SYSTEM LAY ADVISORY BOARD Recommendation: Disband. Councilmember Coontz asked if each of these members were notified and asked if they wished to continue serving on these committees. Mayor Murphy stated no letters were sent out, but he has received indications that they are interested in continuing. Councilman Alvarez suggested this list be reviewed to determine the effectiveness of each committee and also look at the length of time each member has served. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz PAGE 14 CITY COUNCIL MINUTES February 13,2001 6. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS (Continued) Moved to approve the recommendations for the Orange Elderly Services Board of Directors and the Santiago Library System Lay Advisory Board. MOTION - Murphy SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to continue the reappointments to the Audit Committee, Building Board of Appeals, CDBG Program Committee, Community Video Advisory Board and Investment Advisory Committee to February 27,2001 Councilmember Coontz requested information from staff as to the quality of each member's service and attendance record. 7. ADMINISTRATIVE REPORTS 7.1 Report from the Economic Development Director regarding approval of Loan and Grant Agreement by and among the City of Orange, the Orange Redevelopment Agency and Orange Housing Development Corporation (OHDC) for the acquisition and rehabilitation of 481-491 South Lemon Street. (A2100.0 AGR-3703) SUMMARY: OHDC requests a loan and a grant to acquire and rehabilitate six units located at 481-491 South Lemon Street. The total estimated cost of the project is $459,000, which includes $20,000 for rehabilitation. If approved, the City would provide a loan of $207,000 using federal HOME funds and the Orange Redevelopment Agency would provide a grant of $69,000 using Housing Set-Aside funds. In return for the assistance, all of the units would remain affordable to low and moderate-income households for a 55-year period. FISCAL IMPACT: HOME funds are available for the project as follows: Account No. 317-9660-485100-1210 - $142,500 - HOME CHDO Account No. 317-9660-485100-1250 - $ 64,500 - HOME Capital Outlay/Developer Acct. Housing Set-Aside funds in the amount of $69,000 will be appropriated in (Agency) Southwest Housing Set-Aside Account Number 921-9809-485802-1250. DISCUSSION The Economic Development Director reported this project will provide an opportunity to utilize federal HOME funds and provide low income housing for a period of 55 years. These homes require just a little fix-up and will be well managed and well maintained. She commended the work of the Orange Housing Development Corporation, which is a non profit organization governed by volunteers; and introduced Eunice Bobert, Chief Executive Officer of the OHDC. PAGE 15 CITY COUNCIL MINUTES February 13,2001 7. ADMINISTRATIVE REPORTS (Continued) Resolution No. 9409 A Resolution of the City Council of the City of Orange approving a Loan and Grant Agreement by and among the City of Orange, the Orange Redevelopment Agency and Orange Housing Development Corporation regarding 481-491 South Lemon Street and making certain findings. MOTION -Slater SECOND - Murphy AYES - Slater, Alvarez, Mayor Murphy, Coontz That Resolution No. 9409 be adopted. MOTION - Murphy SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to direct the City Attorney's Office to prepare, approve, and execute the Loan and Grant Agreement by and among the City of Orange, the Orange Redevelopment Agency and OHDC; and commit $207,000 in federal HOME Investment Partnership Act funds for the project. TAPE 2950 7.2 Cooperation and Reimbursement Agreement between the City of Orange and the Orange Redevelopment Agency relating to the Plaza Preservation Project. (A2100.0 AGR-3696) Award of Contract - Bid No. 001-21, Project SP 3327, Plaza Preservation Project. (A2100.0 AGR-3697) Award of Contract - Bid No. 001-21, Project SP 3319, Parking Lot Improvements for 345 E. Chapman Avenue (Bank of America) Project. (A2100.0 AGR-3698) NOTE: Councilman Alvarez abstained on this item due to property interests in the Old Towne area. SUMMARY: The Cooperation and Reimbursement Agreement provides for partial reimbursement in the amount of $911,927 by the Orange Redevelopment Agency to the City for costs incurred to improve the central public square and circular Plaza at Glassell and Chapman Avenue. Project 3327, Plaza Preservation Project improvements include the demolition and removal of the existing masonry planters, brick sidewalks, drainage inlets, and brick crosswalks, and replacement with new colored and textured concrete surface improvements, drainage inlets will be replaced with increased capacity inlets, new decorative metal street lights, and street ornamental street furniture including benches and trash receptacles. The Plaza Park improvements include new landscaping, concrete surfacing, refurbishment of the decorative central fountain, and ornamental street furnishings. Historical features of the Plaza Park will be refurbished and reinstalled in the final construction improvements. PAGE 16 CITY COUNCIL MINUTES February 13, 2001 7. ADMINISTRATIVE REPORTS (Continued) Project 3319, Parking Lot Improvements at the former Bank of America Parking lot include the construction of new concrete curbing, asphalt concrete paving, lighting, landscaping and irrigation. FISCAL IMPACT: Funds are budgeted and will be available in the Capital Improvement Program in the following accounts: Plaza Preservation Project: 500-7021-485100-9875 920-9811-485100-9875 Capital Projects Redevelopment Funds $ 731,960 $ 911,927 * $1,643,887 Total Funds Parking Lot Improvements: 926-9811-481200-0000-20050Redevelopment Funds $ 166,250 920-9811-481200-0000-20050Redevelopment Funds $ 20,000 * Total Funds $ 186,250 *Funds in these accounts are requested to be appropriated under the Redevelopment Agency Agenda. DISCUSSION The Director of Public Works presented a briefreport on this project. This work implements the recommendations and actions already approved by Council and is schedule to begin in April and finish in August. It is a major undertaking, and the City will try to minimize disruptions. PUBLIC COMMENT The following people spoke in opposition to the Plaza project: Dr. C. Salovesh, 700 Lake Dr. Pat Kelly, address on file Rene Mascolo, 138 N. Glassell, Rene Jewelers Joseph Coopey, 1925 E. La Veta Jon Dumitru, 860 N. Kathleen St. #A Brenda Asheington, 1459 N. Blake Domenic Santucci, 732 S. Breezy Way Carol Collis, 22 Plaza Sq. Bea Herbst, 1435 E. Walnut Avenue Chuck Mabry, 13912 Taft Ave. #1 Hank Mascolo, submitted approximately 1200 signatures in favor of keeping the bricks in the Plaza area Samm Williams, 21 Bridgewood, Irvine, owner of Colleen O'Hara Beauty Academy at 102 N. Glassell Meg Breeze, 60 Plaza Square Thomas Eckert, 3518 Copper Kettle Way Linda McElvogul, 477 S. Pine PAGE 17 CITY COUNCIL MINUTES February 13, 2001 7. ADMINISTRATIVE REPORTS (Continued) Their concerns were as follows: . Inconvenience and disruption to merchants . Loss of revenue to merchants . Compensation to merchants for disruption to their businesses . Disruption for visitors . More public discussion required . Wishes of downtown business owners have been ignored . Keep the bricks - bricks are more aesthetic . Trees could be in jeopardy during construction . Timing of construction is during busiest time of year, especially for outside restaurants . More flexibility in repairing bricks rather than cement . Historic preservation will be jeopardized . Maintaining plaques RESPONSE TO CONCERNS: TAPE 4550 Mayor Murphy eXplained this is the culmination of two years of discussion and public hearings. The Director of Public Works responded to the following concerns: · Duration - the schedule of April through August is the total time period for construction of the entire proj ect, including the parking lot at 345 E. Chapman; activities at each location will be shorter in duration; opposite quadrants, diagonally, will be under construction at the same time . Timing - April through August was chosen as the City did not want to disrupt the Street Fair or Holiday shopping; winter months are also less predictable for keeping to time schedules, and rain could delay construction . Access to businesses - this will be maintained at all times; possibly two to three weeks of actual construction at a given location . Traffic - there will be possible lane reductions outside of peak traffic hours; but traffic will be maintained. . Historic preservation - an historic consultant will be overseeing the project and preservation guidelines will be met . Business disruption - as much work as possible will be done at night; an Outreach Consultant will be working in the area to help with individual merchant problems . Trees - the contractor is required to protect the trees, but in the event of a problem, the contractor would be required to restore any trees or plants . Scope of work - include major upgrades for the drainage system, which is old and sub- standard; curbs and gutters are being replaced; electrical system is being upgraded; and the lighting system is being improved. . Plaques - the contractor is required to inventory all plaques with location and identification of each one; they will be removed in advance of any demolition activity and restored as close as possible to their original location PAGE 18 CITY COUNCIL MINUTES February 13, 2001 7. ADMINISTRATIVE REPORTS (Continued) . Brick pavers - approximately 50% of the pavers need to be removed anyway in order to make necessary upgrades, such as the storm drain facilities The City recognizes this is a complex project with a lot of impacts; and a great deal of effort has been put into addressing these issues. The City Attorney reported on the question about compensation to business owners. The California Constitution allows a City to expend money for public purposes; but that which helps a private business is prohibited by law. The City can promote the Downtown area as a whole, but is prohibited from paying an individual business. COUNCIL DISCUSSION: Councilmember Coontz pointed out the bricks were put in the Plaza around 1969 and without much public comment. This project has already been approved with much public input and this particular action is approving the contractual agreement for the work. She spoke on the importance of routine maintenance for the entire Plaza; and indicated a detailed report of the work that is proposed is available from the City Clerk's Office. She suggested that updates be provided to the Council during the entire construction period. Councilman Slater stated this project has been scrutinized very closely and that is why it has taken two years to go through the process. It is supported by the Old Towne Preservation Association, the Historical Society and a Historical Consultant. This is not a demolition of the Plaza, but a preservation project; and the intent is to put the Plaza back to the design of the 1930's. RESOLUTION NO. 9408 A Resolution of the City Council of the City of Orange approving and authorizing the execution of a Cooperation and Reimbursement Agreement with the Orange Redevelopment Agency relating to the Improvement of the Central Public Square and Circular Plaza at Glassell Street and Chapman Avenue. MOTION - Slater SECOND - Coontz AYES - Slater, Mayor Murphy, Coontz ABSTAIN - Alvarez Moved to adopt Resolution No. 9408. MOTION - Slater SECOND - Coontz AYES - Slater, Mayor Murphy, Coontz ABSTAIN - Alvarez PAGE 19 CITY COUNCIL MINUTES February 13, 2001 7. ADMINISTRATIVE REPORTS (Continued) Moved to award a contract in the amount of$I,031,501.60 to Terra-Cal Construction, 14530 Joanbridge Street, Baldwin Park, CA 91706 and authorize the Mayor and City Clerk to execute on behalf of the City for the Plaza Preservation Project; and award a contract in the amount of $161,878.95 to Terra-Cal Construction, 14530 Joanbridge Street, Baldwin Park, CA 91706 and authorize the Mayor and City Clerk to execute on behalf ofthe City for the Parking Lot Improvement Project at 345 E Chapman Avenue. City Manager instructed to provide construction updates throughout the entire construction period. 7.3 Report from the Personnel Director regarding the PERS 3% @ 50 retirement program for the City's sworn Police and Fire employees effective May 20, 2001. (C2500J.4) The Personnel Director reported adoption of this Resolution and Ordinance is necessary in order to formally amend the contract with PERS to provide this retirement plan for all safety employees. This benefit will bring the City of Orange in line with most public agencies and makes Orange competitive in Orange County. RESOLUTION NO. 9399 A Resolution of Intention to Approve an Amendment to the Contract Between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Orange to Provide the 3% @ 50 Retirement Program for the City's Safety Employees. MOTION - Coontz SECOND - Murphy AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Resolution No. 9399 be adopted. ORDINANCE NO. 3-01 (FIRST READING) An Ordinance of the City Council of the City of Orange amending the contract between the Board of Administration of the California Public Employees' Retirement System and the City of Orange to Provide the 3% @ 50 Retirement Program for the City's Safety Employees. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Ordinance No. 3-01 be read by title only and same was set for second reading by the preceding vote. 8. REPORTS FROM CITY MANAGER - None. PAGE 20 CITY COUNCIL MINUTES February 13,2001 9. LEGAL AFFAIRS 9.1 ORDINANCE NO. 2-01 (SECOND READING) (A2500.0) An Ordinance of the City Council of the City of Orange repealing Chapter 5.60 of Title 5 of the Orange Municipal Code pertaining to permitting of security businesses. MOTION - Alvarez SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Ordinance No. 2-01 be read by title only and same was approved and adopted by the preceding vote. TAPE 5900 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY NOTE: The City Council recessed at 7:20 p.m. and reconvened at 7:35 11. RECESS TO CLOSED SESSION The City Council recessed at 9:25 p.m. to a Closed Session (after the 7:00 p.m. Session) for the following purposes: a. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: I) Property: Parcel located at 920 West La V eta Avenue Negotiating Parties: City of Orange and R.B. Newcom Enterprises Under Negotiation: Price and Terms of Payment 2) Property: Parcel located at northwest corner of Spring and McPherson Negotiating Parties: Union Pacific Railroad and City of Orange Under Negotiation: Price and Terms of Payment b. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: City Negotiator: Personnel Director Steven Pham Employee Organization: Executive Directors and Top Management Employees c. Conference with Legal Counsel - anticipated litigation pursuant to Government Code Section 54956.9(b) (one potential case, Employment Solicitation Ordinance) d. Conference with Legal Counsel pursuant to Government Code Section 54956.9 existing litigation: Thomas Dula v. City of Orange, Orange County Superior Court Case No. 00CC02143. e. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session. PAGE 21 CITY COUNCIL MINUTES February 13, 2001 7:00 P.M. SESSION 12. PUBLIC COMMENTS TAPE 6100 Mr. Dana Reed, 520 S. Grand, #700, Los Angeles, Attorney representing the Airport Working Group Political Action Committee, stated his clients are very concerned that supporters of one or more candidates in the upcoming special election are attempting to involve the City of Orange in what is nothing more than a typical political squabble between adversaries. They have asked him to urge the City to exercise restraint before jumping into this political fray. His clients firmly believe they have the absolute right under the United States Constitution to participate in City elections as they have done in the past and they are concerned that some might attempt to abridge these rights in the future. His clients believe it is one thing for partisans to rant and rave and perhaps even resort to private litigation to achieve their personal political goals. It is quite another thing, however, for a governmental entity acting under color of law to interfere with anyone's right to free speech or right to free association with like-minded individuals. Again, the Airport Working Group Political Action Committee respectfully urges that the City move cautiously in addressing the demands of its detractors. They thank the City Council for the courtesy in allowing him to speak. Councilman Alvarez asked him ifhe would name his specific clients. Mr. Reed stated it was the Airport Working Group Political Action Committee and they are registered with the State of California, the Secretary of State, as a Recipient Committee under the Political Reform Act. The City Attorney advised that this discussion be taken out of the public forum and let whatever investigation needs to be done take its course. 13. PUBLIC HEARINGS 13.1 JOINT PUBLIC HEARING WITH THE ORANGE REDEVELOPMENT AGENCY - DISPOSITION OF REAL PROPERTY IN THE SOUTHWEST REDEVELOPMENT PROJECT BY THE AGENCY TO VRSJ LLC: (A21 00.0 AGR-3702) Time set for joint public hearing with the Orange Redevelopment Agency Board of Directors to consider the proposed disposition of real property by the Agency to VRSJ LLC. Subject property located at 1429 W. Palmyra Avenue. The Economic Development Director reported approximately 10 years ago the Agency acquired a half acre parcel located at 1429 W. Palmyra for future redevelopment purposes. It was used by the former Ford of Orange dealership up until 2 years ago. The Agency has been working with VRSJ LLC to develop this property, looking at various uses. VRSJ owns other property adjacent to this parcel and is proposing to develop an 80,000 square foot medical complex in that area. This particular parcel is needed for that development and the Agency is proposing the sale of this property to VRSJ LLC. Development of this medical complex will also allow for right of way purposes for the future widening of Main Street. Councilman Alvarez asked about the corner parcel on Main and Palmyra where there is an existing 7-11 Store. PAGE 22 CITY COUNCIL MINUTES February 13,2001 13. PUBLIC HEARINGS (Continued) The Economic Development Director stated that both the Agency and VRSJ made a concerted effort to acquire that property but the owner did not want to move. The development of a medical complex should also help to mitigate the police problems that have existed at this 7-11 Store. MAYOR MURPHY OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE HEARING. RESOLUTION NO. 9405 A Resolution of the City Council of the City of Orange authorizing the sale of property by the Orange Redevelopment Agency to VRSJ LLC, a California limited liability company, in accordance with the terms of an Owner Participation Agreement by and between the Orange Redevelopment Agency and VRSJ LLC for redevelopment of a site within the Southwest Redevelopment Project. MOTION - Murphy SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Resolution No. 9405 be adopted. NOTE: The City Council convened to the Redevelopment Agency Agenda, Item 11.1 TAPE 6850 13.2 APPEAL NO. 480; CONDITIONAL USE PERMIT 2355-00; TWO-STORY SECOND UNIT AT 475 S. GRAND ST.; COUNCILMAN MIKE ALVAREZ, ON BEHALF OF LUIS CABALLERO: (A4000.0 APP-480) NOTE: Councilman Slater abstained on this item due to a property ownership conflict and left the dais. Time set for public hearing to consider an appeal by Councilman Mike Alvarez, on behalf of Luis Caballero, of the Planning Commission's decision to approve Conditional Use Permit 2355- 00, granting a request to allow construction of a two-story second unit within the Old Towne District. NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per Section 15332 of the State CEQA Guidelines, and per City of Orange Local CEQA Guidelines Section IV.C.2.d. APPELLANT'S REASON FOR THE APPEAL: "I. The proposed project fails to comply with Old Towne Design standards. 2) This project is misrepresented as a 1-1/2 story project, but is a 2-story project. This represents an excessive structure violating the bulk and mass guidelines for the historic area guidelines. 3) The project's PAGE 23 CITY COUNCIL MINUTES February 13, 2001 13. PUBLIC HEARINGS (Continued) size and scale threatens the historic fabric of the neighborhood and will set a dangerous precedent for Old Towne. 4) The density of Grand Ave. has exceeded acceptable levels." STAFF REPORT The Community Development Director reported the proposed second unit is a two stories at the rear of the property. It has 2 bedrooms and is 890 square feet built over a 3-car garage. It has been reviewed by the DRC and the Planning Commission. One of the main issues is that the existing zoning if R-2-6 while the General Plan is Low Density Residential. A report was submitted last year by the City Attorney on the General Plan and zoning, stating they are not legally inconsistent and the application could move forward. A general study is underway for a two block area of South Grand Street. A model was submitted by the Appellant and was reviewed by City staff. The measurements were certified as to accuracy on the 475 S. Grand lot as they were compared to existing plans. There are no plans on file for the surrounding lots, so although they appear accurate, the measurements can not be confirmed. The City Attorney reminded the Council that comments need to focus on current zoning for this project, as it would not be appropriate to deny the project based on a study that may change the zoning at a later date. MAYOR MURPHY OPENED THE PUBLIC HEARING TAPE 2 OF 2 Luis Caballero, 487 S. Grand, Appellant, stated although the current zoning is R-2-6, the proposed project does not comply with the General Plan and other zoning requirements; and R-2- 6 zoning does not guarantee a second unit can be built. He stated the project is actually 2029 total square feet with an FAR of .48. He reviewed the guidelines of the Old Towne Design Standards, stating the proposed rear unit will be larger than the principal structure in front. It is excessive in bulk and mass, out of proportion and scale with other contributing buildings on the street and will adversely affect property values in the neighborhood. Mary Matusak, 300 block of South Grand, stated the Applicant has misrepresented the project. It is claimed to be 1-1/2 stories and 1940 square feet, but is actually 2 stories and 2029 square feet; and is too big a structure for the area. Clark Hills, 475 S. Grand, Applicant, stated he bought this house with the intent of adding a second unit. He has gone through the entire process appropriately, making changes along the way as requested by both the DRC and Planning Commission. He pointed out the City is requiring him to build a 3-car garage - 2 for the front house and 1 for the additional unit, which is contributing to the size of the structure. PAGE 24 CITY COUNCIL MINUTES February 13, 2001 13. PUBLIC HEARINGS (Continued) John Linnert, Architect for the Applicant, questioned the accuracy of the neighboring lots on the Appellant's model. The allowable FAR is 70%, while they have 47%; and the unit was designed to be 1-1/2 stories to be more sensitive to the bulk and mass issues. The following people spoke in favor of the Appeal: Bob Hitchcock, 195 N. Shaffer, OTP A President, speaking on behalf of OTPA John Goode, 438 S. Grand, Garry Warner, 464 S. Center St., also representing Dorothy Court, 470 S. Center Noel Sandy Wilcox, 458 S. Grand Street Dan Slater, 278 N. Pine St., resident of Old Towne, owns property within close range. Kristin Caballero, 487 S. Grand Street, also asked for clarification on a Councilmember's abstention because of a financial interest, and the Mayor's friendship with the Applicant creating a personal interest. Concerns expressed were: . Negative effect on property values . Cumulative effect on the neighborhood . Too many rentals on Grand Street . Second unit is too large Ken Millbrat, 308 S. California Street, spoke in opposition to the Appeal. The City Attorney explained the reasons for a Councilmember's abstention on a project. Under State law, if anybody owns property within 300 feet of a project, or has a source of income within 300 feet, the law requires an abstention. From a general perspective, being personally familiar with someone has never been enough, under any conflict of interest analysis, to create a conflict requiring an abstention. REBUTTAL Clark Hills reiterated the fact that he is required to have the 3-car garage which contributes to the size of the unit. The garage will also provide off-street parking. He has gone through the required process, costing him approximately $10,000; and did not want to be penalized for a zoning issue which affects the entire area. John Linnert, stated the zoning application IS consistent with all standards and that all requirements have been met. Luis Caballero, stated the Applicant has not addressed the Old Towne Design Standards, which are just as important as the zoning; and has not addressed the contributing structures and rhythm patterns - the fact that the rear structure is larger than the front structure. PAGE 25 CITY COUNCIL MINUTES February 13,2001 13. PUBLIC HEARINGS (Continued) Mary Matusak, stated the R-2-6 zone does not allow the building of a second unit when the unit does not comply with other standards; and suggested the neighborhood has reached an erosion point with too many second units. MAYOR MURPHY CLOSED THE PUBLIC HEARING COUNCIL DISCUSSION The City Attorney clarified the memo which he wrote last October, which has been misrepresented by both the Applicant and the Appellant. His statements in the memo only address whether the R-2-6 zoning is inconsistent with the General Plan and specifically stayed away from any analysis of a particular project. Nowhere in the memo is there a statement specifically about this project. In his memo, he summarized his analysis of why the R-2-6 zoning was adopted, concluding that the General Plan had several goals. The goals that were obtained via the R-2-6 zone was to increase the housing stock on under-developed properties by allowing for a moderate amount of additional residential development. That is probably the primary overriding goal. The primary purpose in promoting the R-2-6 zoning was to allow the kind of development where it will preserve the historic character of the neighborhood. That needs to be the overriding consideration. In terms of net acreage vs. gross acreage, the General Plan speaks in terms of net acreage. In the Old Towne area in general, the City looks at 6 units per net acreage. Councilmember Coontz asked for the date of the General Plan being referenced; if this project addresses the design guidelines, and whether non-conforming buildings in the neighborhood have been addressed. The Director of Community Development stated the referenced General Plan is approximately ten years old. Also, R-2-6 does not guarantee two units. It has to be compatible with other provisions of the Zoning Code, which includes the Design Standards for Old Towne. With regard to non-conforming lots, this lot does not meet the width requirements for an R-2-610t, but can still be developed under the Zoning Code if all other standards are met. Also, in the Zoning Code, both structures are of equal importance, so the statement that the garage exceeds 50% of the front unit does not apply under City code. With regard to mass and bulk and rhythm, that becomes subjective when looking at the street in general. With regard to non-conforming buildings, they are allowed to remain, giving residential property owners some latitude. Councilman Alvarez stated he has been trying to balance property rights with preserving the neighborhood, and the City needs to determine when to draw a line with the number of rentals in a neighborhood. He felt that second units need to be more in line with the contributing house and neighborhood, and this unit could set a negative precedent for the rest of the block. Councilmember Coontz stated with regard to the rhyme and rhythm of the neighborhood, a much different view of the neighborhood can be seen from the alley. This proposed building is an PAGE 26 CITY COUNCIL MINUTES February 13, 2001 13. PUBLIC HEARINGS (Continued) improvement to what was there and also compared to many of the existing non-conforming buildings that are especially seen from the alley. The Applicant has followed the required process and the proposed unit is not necessarily being used as a rental. Much ofthis is subjective and the City needs to look at the non-conforming issue, the FAR issue and definitions for bulk and mass in general. Mayor Murphy stated that from a historical perspective, it makes more sense to add a second unit than modifY the existing unit. Approximately 50% of the properties in that area already have second units and this proposal represents an improvement compared to a number of existing second units. TAPE 2680 MOTION - Murphy SECOND - Alvarez AYES - Alvarez, Mayor Murphy, Coontz ABSENT - Slater Moved to find that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per Section 15332 of the State CEQA Guidelines, and per City of Orange Local CEQA Guidelines Section IV.C.2.d. MOTION - Murphy SECOND - Coontz AYES - Mayor Murphy, Coontz NOES - Alvarez ABSENT - Slater Moved to deny Appeal No. 480 and uphold Conditional Use Permit 2355-00. 14. PLANNING AND ENVIRONMENT - None. NOTE: The City Council recessed at 9:25 p.m. to a Closed Session (outlined on Page 21). 15. ADJOURNMENT MOTION SECOND AYES - Alvarez - Coontz - Slater, Alvarez, Mayor Murphy, Coontz Moved to adjourn at 10:20 p.m. in memory of Vernon Valentine. r1M~~ CASSANDRA 1. THCART, CMC CITY CLERK 1i~:!t4y MAYOR PAGE 27