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3/13/2001 - Council Minutes - CC Minutes Reg Meeting APPROVED BY CITY COUNCIL ON MARCH 27, 2001 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING March 13, 2001 The City Council of the City of Orange, California convened on March 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 Reverend Lisa Monroe, First Presbyterian Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilmember Dan Slater 1.3 ROLL CALL PRESENT - Slater, Alvarez, Mayor Murphy, Coontz ABSENT - None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Sandy Friedman, Caltrans' Public Information Officer, presented an update on the SR-55 Improvement Project. Questions regarding the project can be directed to 800-724-0353 or 714-223-1665. 2. PUBLIC COMMENTS TAPE 100 Phillip Knypstra, 5701 E. Rockinghorse Way, submitted a chart indicating a sample salary/pension for a safety employee, commenting that City retirement pensions are too high for safety personnel. (C2500.K) 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 March 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 1 CITY COUNCIL MINUTES March 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 February 22 and March 1,2001. ACTION: Approved. 3.3 Request approval of City Council Minutes, Regular Meeting, February 27, 2001. ACTION: Approved. 3.4 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. AGREEMENTS (REMOVED AND HEARD SEPARATELY) TAPE 235 3.5 California Department of Transportation (Caltrans) Cooperative Agreement No. 12-428. (A2100.0 AGR-3720) SUMMARY: Caltrans is planning a project to rehabilitate the pavement of the SR-55 Freeway. This project will require a Traffic Management Plan (TMP) of which certain components will be implemented by City staff. This cooperative agreement establishes arrangement for reimbursing the City for those services. FISCAL IMPACT: Through this Agreement, Caltrans will reimburse the City in the amount of$15,000 for services in support of the SR-55 Freeway pavement rehabilitation project. Councilmember Coontz asked about the timing of this project and the importance of communication and notification to drivers and residents. She and Councilmember Slater are part of a Community Involvement and Outreach Program Ad-Hoc Committee for the SR-55 widening project. The Director of Public Works reported Caltrans is planning to repair and rehabilitate the pavement of the existing lanes of the SR-55 Freeway, which will require closing lanes and diverting traffic onto local streets. This work will occur mostly at night and the cooperative agreement is for police traffic management on local streets during those detours. There are no definitive dates for the work, but will probably occur during the spring or summer of 2002. Public Works will work with Caltrans on an outreach program to notifY drivers and residents of the impending work. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz PAGE 2 CITY COUNCIL MINUTES March 13,2001 3. CONSENT CALENDAR (Continued) Moved to approve Cooperative Agreement No. 12-428 with the California Department of Transportation (Caltrans); authorize Mayor and City Clerk to execute on behalf of City; and follow up with further communication with Caltrans for public communication. 3.6 Approval of Financial Assistance Agreement for Prospect Street Sports Park (Rock Creek Park) Between the City and County of Orange. (A2100.0 AGR-3719) SUMMARY: The Board of Supervisors of the County of Orange have authorized funding assistance from its Urban Park Grant Program in an amount of $138,900 for the development of the City's Prospect Street Community Park. City Council approval is required for execution of the Financial Assistance Agreement between the City and County. ACTION: Approved the financial Assistance Agreement between the City and County of Orange providing for the receipt of $138,900 from the County to aid the City's construction of its Prospect Street Community Park (Rock Creek Park); and authorized the City Manager to execute the Financial Assistance Agreement on behalf of the City. FISCAL IMPACT: Sufficient funds are available in Account No. 500-7021-485100- 0149 ( Prospect Street Community Park) in the amount of $105,993 and Account No. 510-7021-485100-0149 (Prospect Street Community Park) in the amount of $1,099,822 for a total of$I,205,815. 3.7 Approve amendment to the agreement with Delta Dental, a preferred provider organization (PPO), for dental insurance effective January 1, 2001 through December 31, 2001. (A2100.0 AGR-2937.A.I) SUMMARY: The City provides various insurance benefits to its employees. One of those programs is an indemnity dental insurance plan. At this time, the City's contract with the insurance provider, Delta Dental, is up for renewal. ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: None 3.8 Approve a renewal contract for employee dental insurance through Pacificare Insurance Company effective January 1, 2001 through December 31, 2001. (A2100.0 AGR-2936.3) SUMMARY: The City provides various insurance benefits to its employees. One of those programs is a prepaid dental insurance plan. At this time, the City's contract with the dental insurance provider, PacifiCare, is up for renewal. ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: None PAGE 3 CITY COUNCIL MINUTES March 13,2001 3. CONSENT CALENDAR (Continued) 3.9 Approval of third amendment to Consultant Agreement with I.T. Corporation and request for appropriation of $50,000 from General Fund unappropriated reserves for Yorba Park methane gas monitoring. (A2100.0 AGR-3139.3) SUMMARY: The County of Orange Local Enforcement Agency (LEA) has required the City of Orange to monitor methane gas generated from the closed Yorba Landfill located at Yorba Park. Costs to provide the required weekly and/or monthly monitoring from January 2001 to June 30, 2001 are estimated to be $50,000. ACTION: Approved Amendment No.3 to Agreement 3139 with LT. Corporation; and approved an appropriation of $50,000 from General Fund unappropriated reserves to Account No.1 00-7001-426700 (Other Professional Services) for monitoring. FISCAL IMPACT: The General Fund has an adequate unrestricted fund balance for this appropriation. 3.10 Consultant Services Agreement, RFP 001-24, for Tot-Lots at La Veta and Eisenhower Parks. (A2100.0 AGR-3721) SUMMARY: The City requested proposals for the design, purchase and installation of tot-lot play equipment at La Veta and Eisenhower Parks. It is recommended that the City Council approve the award of Consultant Services Agreement, RFP 001-24, between the City and Coast Recreation, Inc. in an amount not to exceed $125,000. ACTION: Awarded the Consultant Services Agreement, RFP 001-24, between the City and Coast Recreation, Inc. for the design, purchase and installation of tot-lot play equipment at La Veta and Eisenhower Parks in an amount not to exceed $125,000; and authorized the Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: Sufficient funds are available in Account No. 510-7021-481105- 0087 (La Veta Park) for $60,000 and Account No. 510-7021-485100-0092 (Eisenhower Park) for $65,000. APPROPRIATIONS 3.11 A proposal to appropriate funds received from Library Patron Donations and Rental Book Revenues. (C2500.I) SUMMARY: Donations from patrons and rental book revenues are collected over a period of time. When funds have reached a sufficient amount, they are then appropriated to an expenditure account to purchase books, videos and CD's. ACTION: Appropriated $1,000 received from patron donations Account No. Account No. 100-2001-443101-9986 (Library Materials) to purchase library books; and appropriated $1,700 received from rental book revenues Account No. 100-2001-443101- 9987 (Library Materials for Rental Books) to purchase additional rental books and tapes. PAGE 4 CITY COUNCIL MINUTES March 13,2001 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: The accounts where these funds currently reside are revenue accounts; in order to expend these accounts on the materials from which they were intended, they must be appropriate to Library materials accounts. This transfer has no fiscal impact on the overall budget. BIDS 3.12 Award of Bid No. 001-30 for One Telescopic/Articulating Aerial Truck for use by the Traffic Division of the Public Works Department. (A2100.0 AGR-3717) SUMMARY: One Telescopic/Articulating Aerial Truck for use by the Traffic Division of the Public Works Department has been scheduled for replacement as part of the approved vehicle replacement schedule in the FY 2000/2001 budget. ACTION: Awarded Bid No. 001-30 to Altec Industries of Dixon, CA in the amount of $66,550.03; authorized the Mayor and City Clerk to execute on behalf of the City; and authorized the City Manager to surplus the replaced vehicle at an auction. FISCAL IMPACT: Funds in the amount of $66,550.03 are budgeted and available in the Motor Vehicle Replacement Account, #720-5023-472102. CONTRACTS 3.13 Project S.P. 3354 - Award a Professional Services Design Contract to Integrated Design Services, Inc. for the seismic retrofit design of City Hall and renovation of the Administration building and basement. (Continued from February 27, 2001) (p2500.0.5) SUMMARY: This contract authorizes the design consultant to review existing building plans, reports, conceptual architectural plans, and structural calculations and provide structural engineering and architectural construction documents for the seismic retrofit of the City Hall complex and renovation of the Administration building and basement. Re- roofing of all buildings will also be accomplished with the retrofit and remodel project. The approval of a 20% contingency ($64,000) for additional design services will help mitigate unforeseen conditions in the existing buildings. ACTION: Removed from the Agenda due to further evaluation of the Seismic Retrofit Design. FISCAL IMPACT: Funds are budgeted or are available in the following accounts: 500-5011-481105-2976 $3,995,493 (City Hall Seismic Retrofit) 550-5011-481105-2976 $ 620,403 (City Hall Seismic Retrofit) Total $4,615,896 3.14 Change Order for Contract No. R19334 for underground fuel contamination cleanup at the Water Yard requesting additional funds for phase 3 of project. (A2100.0 AGR-3192.2) PAGE 5 CITY COUNCIL MINUTES March 13,2001 3. CONSENT CALENDAR (Continued) SUMMARY: In November 1998, the City entered into a contract with Hydrosolutions of California to perform all tasks required to assess the extent of the soil contamination from the old underground fuel tanks at the Water Yard. This assessment has been completed and the results reviewed by the Orange County Health Care Agency (OCHCA). OCHCA is requiring a cleanup program utilizing Vapor Extraction. Hydrosolutions has prepared a work plan that has been approved by OCHCA. Hydrosolutions prepared proposal #00308-06 for the third phase that was approved by Council on April 11, 2000 in the amount of $39,840.25. Hydrosolutions based their price on some assumptions that are not proving to be true. They are asking for an increase of $17,524.50 in proposal #00341-13 to complete the third phase. ACTION: Approved change order for Hydrosolutions of California Contract #R19334 in the amount of $17,524.50. FISCAL IMPACT: There are sufficient funds in Account No. 720-5023-484400-9856 Underground Storage Tanks. DONATIONS 3.15 Request the City Council approve the donation of a surplus fire engine and associated equipment to the City's Sister City, Queretaro, Mexico. (P2500.0) NOTE: Councilmember Coontz commented she was part of a policy group years ago looking into donations made to our Sister City when questions were raised whether the equipment given to Mexico had actually arrived. Follow-up is an important aspect of any donation made by the City and needs to be reviewed. SUMMARY: Within the past year, the City of Orange Fire Department replaced an old pumper. This pumper would normally be sold as surplus, bringing in minimal revenue to the City. The City of Queretaro, Mexico, Orange's Sister City, has asked us to assist their struggling volunteer fire department with the donation of used fire equipment, especially fire apparatus. It is our desire to assist them by donating this fire pumper to them. ACTION: Authorized the Fire Department and Fleet Services to donate a surplus fire engine to the City of Queretaro, Mexico. This unit is a 1976 Crown Firecoach with approximately 106,700 miles on the odometer. FISCAL IMPACT: The City would lose approximately $2,500 in revenue from the sale of the apparatus. PURCHASE OF PROPERTY 3.16 Purchase of a 2 foot wide strip of land at 1738-1750 W. Chapman Avenue. (A2100.0 AGR-3723) PAGE 6 CITY COUNCIL MINUTES March 13, 2001 3. CONSENT CALENDAR (Continued) SUMMARY: This is one of the parcels necessary for the West Chapman Avenue Widening Project. Offer was made and accepted by F.E.G., L.P. ACTION: Authorized the Mayor and City Clerk to execute all escrow papers and related documents for the purchase of a 2 foot wide strip of land located at 1738-1750 W. Chapman Ave. Purchase price is $13,110 plus any related escrow costs. FISCAL IMPACT: Funds in the amount of $13,110.00 are available in the Chapman Avenue Widening Project - Account No. 550-5011-483300-4038-(Measure M-MPAH). RESOLUTIONS 3.17 RESOLUTION NO. 9385 (C2500.J.4.2) A Resolution of the City Council of the City of Orange repealing Resolution No. 9018 and approving the Memorandum of Understanding Between the City of Orange and the City of Orange Police Association concerning Wages, Salaries, and Other Terms and Conditions of Employment effective March 1, 2001 through February 29,2004. ACTION: Approved. 3.18 RESOLUTION NO. 9386 (C2500.J.4.2.1) A Resolution of the City Council of the City of Orange approving the Memorandum of Understanding between the City of Orange and the Orange Police Management Association concerning Wages, Salaries, and Other Terms and Conditions of Employment Effective March I, 2001 through February 29, 2004, and repealing Resolution No. 8899 and amendments thereto for said employees. ACTION: Approved. 3.19 RESOLUTION NO. 9387 (C2500.J.4.3) A Resolution of the City Council of the City of Orange approving the Memorandum of Understanding Between the City of Orange and the Orange City Fire Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO concerning Wages, Hours, and Other Conditions of Employment for the period of March 1, 2001 through and including February 29,2004 and repealing Resolution No. 8990 and amendments thereto for said employees. ACTION: Approved. 3.20 RESOLUTION NO. 9388 (C2500J.4.3.l) A Resolution of the City Council of the City of Orange adopting Resolution No. 9388 and repealing Resolution No. 8922 implementing the Memorandum of Understanding between the City of Orange and the Orange Fire Management Association concerning PAGE 7 CITY COUNCIL MINUTES March 13,2001 3. CONSENT CALENDAR (Continued) Wages, Hours, and Other Conditions of Employment for the Period of March I, 2001 through and including February 29, 2004. ACTION: Approved. 3.21 RESOLUTION NO. 9422 (A2100.0 AGR-3614) A Resolution of the City Council of the City of Orange finally accepting the completion of a certain pubic work and improvement; Bid No. 001-01; D-133; David T. Wasden, Inc.; Featherhill Drive Subdrain Project. ACTION: Approved. 3.22 RESOLUTION NO. 9424 (A4000.0 APP 480) NOTE: Councilman Slater abstained as he was absent during the public hearing on this Appeal; Councilman Alvarez voted No to stay consistent with his vote at the public hearing. A Resolution of the City Council of the City of Orange denying Appeal No. 480 and upholding the decision of the Planning Commission to approve Conditional Use Permit 2355-00 granting a request to construct a two-story second unit at 475 South Grand Street. Appeal No. 480 Appellant: Councilman Mike Alvarez, on behalf of J. Luis Caballero ACTION: Approve 3.23 RESOLUTION NO. 9425 (A2100.0 AGR-37 I 8) A Resolution of the City Council of the City of Orange authorizing the rehabilitation of Water Wells 23 and 24 and waiver of competitive bidding requirements. ACTION: Adopted Resolution 9425; approved emergency Purchase Order RI9600 for the amount of $98,955 to General Pump Company for said work; appropriated the sum of $115,000 from Water Fund 600 unappropriated reserves to Account No. 600-8011- 425100, Maintenance of Wells; and authorized the Public Works Director/City Engineer to execute change orders for any additional pump or rehabilitation work up to a total contract amount of $115,000. SPECIAL EVENTS (REMOVED AND HEARD SEPARATELY) TAPE 450 3.24 Request for the temporary suspension of time limit and permit parking restrictions within public parking lots H & I on the west side of the 100 block of N. Orange St. on Saturday, March 17, 2001, from 7:30 am to 3:00 pm; and the temporary suspension of permit parking restrictions on Orange St. from Maple Ave. to Palm Ave. (S4000.S.3.1.2) PAGE 8 CITY COUNCIL MINUTES March 13, 2001 3. CONSENT CALENDAR (Continued) SUMMARY: The First Presbyterian Church of Orange is requesting the temporary suspension ofthe time limit and permit parking restrictions within municipal parking lots H & I on the west side of the 100 block of N. Orange Street and the temporary suspension of permit parking restrictions on Orange St. from Maple Ave. to Palm Ave. to accommodate parking needs for a special event scheduled for Saturday, March 17, 2001. FISCAL IMPACT: None DISCUSSION The Director of Public Works reported staff is recommending approval of the suspension of permit parking on Orange Street, but any suspension on the restrictions in a public parking lot needs to be addressed by the Council. He reported that currently all spaces in the parking lot have a 2 hour limit but drivers with permits are allowed to park more than 2 hours anywhere in the lot. There are signs to this effect at the entrances to the lot, but there is no signing on individual spaces. Council discussed the impact to the Downtown businesses if the parking restrictions in this public lot are suspended, and the need to notify impacted businesses prior to any application. It was suggested that notices be sent out ahead of time, especially to the Downtown Business Owners Association, with all applications of this type Mayor Murphy suggested the Presbyterian Church use the former Bank of America parking lot at the corner of Chapman and Center instead of the public lot. Jim Amett, 942 N. Wanda Road, representative of the First Presbyterian Church, stated they are expecting approximately 250 for this event and that people will be on site to direct traffic. Council directed staff to come back with a recommendation on notifYing businesses prior to approvals. MOTION - Murphy SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to approve the request of the First Presbyterian Church of Orange and temporarily suspend permit parking on Orange St. from Maple Ave. to Palm Ave. on Saturday, March 17, 200 I; and make available the former Bank of America parking lot to make sure there is adequate parking for this event. WAIVER OF FEES TAPE 900 (REMOVED AND HEARD SEPARATELY) 3.25 Request for Senior Citizen's Center Fee to be waived. (C2500.J.1.0.1) SUMMARY: The City is required to charge persons utilizing its facilities a fee for this service. Second Harvest Food Bank is requesting the use of the Senior Citizen's Center and is further requesting that all rental fees be waived. PAGE 9 CITY COUNCIL MINUTES March 13, 2001 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: The waiver of the rental fees for the Senior Citizen's Center would result in the loss of $1,000 in revenue. Councilmember Coontz asked about the criteria for waiving fees and how it will affect future requests. She noted the upkeep ofthe Sr. Center is important and that is what user fees are for. The City Manager indicated it is generally City policy not to waive fees because of facility costs; however, when the City is in partnership with a non-profit organization to help put on a function, the Council can consider waiving the fees for the public benefit. Jim Kay, Volunteer Coordinator for Second Harvest, 426-A W. Almond, stated they are asking for waiver of fees for a one-time use of the Center for their volunteer recognition program. He stated that for every dollar donated to their organization, they are able to serve 30 meals, which means the $500 fee would eliminate 15,000 meals. The Director of Community and Library Services reported Second Harvest is a local non- profit charitable organization and the City does have a unique partnership with them as they have assisted in several events. He stated this is an isolated incident and this is the first time they have submitted a request to the Council for waiver offees of this type. Council discussed the current policy of not waving fees and whether a policy to waive fees needs to be established. Since this is the only request so far, a policy would not be necessary, but this can be looked at if more requests are received. MOTION - Murphy SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to approve the waiver of fees for use of the Senior Citizen's Center by Second Harvest for their annual recognition program of volunteers and charitable non-profit organizations for their outstanding work contributing on behalf of people in need. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Items 3.5, 3.24 and 3.25 were removed and heard separately. Councilman Slater abstained on Item 3.22. Councilman Alvarez voted No on Item 3.22. The remaining items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR ******** 4. REPORTS FROM MAYOR MURPHY - None. PAGE 10 CITY COUNCIL MINUTES March 13,2001 5. REPORTS FROM COUNCILMEMBERS TAPE 1250 5.1 Request from Councilmember Coontz, from January 9, 2001 Council meeting, requesting staff to return with a report from the Police and Public Works Departments on the evaluation of Pedestrian Safety. (C2500.K) Councilmember Coontz reported the Police Department had submitted a report on Pedestrian Safety utilizing statistical research and outlining various pedestrian safety programs. This is an excellent report and commended the Police Department for their efforts. She recommended a report of this type be submitted to the City Traffic Commission on an annual basis for their review and evaluation, and if necessary brought to the Council. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Move to receive and file with recommendations. TAPE 1310 5.2 Request from Councilmember Coontz to approve Resolution No. 9426 opposing SB 116 in support of the Foothill/Eastern Transportation Corridor. (T2200.0.2) Councilmember Coontz reported this is a repeat of a Resolution passed by Council last year and addresses the extension ofthe Foothill Corridor. RESOLUTION NO. 9426 A Resolution of the City Council of the City of Orange opposing SB 116 in support of the Foothill/Eastern Transportation Corridor Agency. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt Resolution No. 9426; and send a letter to State Senator Sheila Kuehl III opposition to SB 116. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None. 7. ADMINISTRATIVE REPORTS - None. 8. REPORTS FROM CITY MANAGER - None. 9. LEGAL AFFAIRS 9.1 ORDINANCE NO. 3-01 (SECOND READING) (A2100.0 AGR-0281.13) 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. PAGE 11 CITY COUNCIL MINUTES March 13, 2001 MOTION - Slater SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Ordinance No. 3-01 be read by title only and same was approved and adopted by the preceding vote. 9.2 ORDINANCE NO. 4-01 (SECOND READING) (A2500.0 Capital Facilities Fees) An Ordinance of the City Council of the City of Orange Amending Sections 15.38.060 and 15.38.080 of the Orange Municipal Code deleting the codified fee rates from the Fire Protection Facilities Program Areas and providing for the rates to be adjusted annually by Resolution of City Council. MOTION - Alvarez SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Ordinance No. 4-01 be read by title only and same was approved and adopted by the preceding vote. 9.3 ORDINANCE NO. 5-01 (SECOND READING) (A2500.0 Water) TAPE 1425 An Ordinance of the City Council of the City of Orange amending and revising the Master Schedule of Fees and Charges to adopt new water rates and new water fees and charges. PUBLIC COMMENTS Ray Maggi, 12822 Garden Grove Boulevard, Apartment Association of Orange County, submitted correspondence expressing concern about the tiered structure of the proposed Water Ordinance and it's impact to multi-family units. He reviewed the tier structure and the rate increases and asked Council to reconsider the basis for these rates. He suggested adopting meter charges and keeping rates for everybody at 96 cents. Marilyn Silverstein, owner of property at 243 Holly Street, asked the City to develop a more fair and equitable rate structure so as not to penalize multi-family units. Vickie Talley, Executive Director, Manufactured Housing Educational Trust, 25241 Paseo de Alicia, Laguna Hills, asked Council to reconsider the approval of this Water Ordinance so as to be more equitable to mobile home parks, and asked for more time to review the proposal. STAFF RESPONSE TAPE 1660 The Director of Public Works stated that while City staff is sympathetic to the concerns raised, they need to look at the total system. The primary goals of the proposed Ordinance are: 1) meet revenue requirements, 2) establish equity and fairness for everyone, and 3) establish conservation incentives; and the proposed rates are the best to meet all these goals. He stated the figures submitted by the Apartment Association are flawed as they are not realistic in terms of PAGE 12 CITY COUNCIL MINUTES March 13, 2001 consumption; and presented and reviewed a chart entitled "Apartment vs. Condo Bi-Monthly Charges" which compared rental units to condos with individual meters. He stated that Orange has some of the lowest water rates in Orange County, and will still be below the average in three years with the new rates. He recommended moving ahead with this Ordinance, but it would not preclude Council from making adjustments or modifications if they are found to be justified in the future. COUNCIL DISCUSSION TAPE 2330 Councilmember Coontz asked about a proposal to upgrade the water billing operations and how the mobile home park units fit into the equation. The Finance Director stated they will be looking at proposals for a new billing operation in the near future. The Director of Public Works stated mobile home parks are considered the same as other multi-family rental units in that they are all mastered metered; and they do have the ability to allocate water charges more directly to actual users. Councilman Alvarez asked about additional meters at large complexes and expressed concern about the duplication of other city fees and service charges. The Director of Public Works stated the approach taken in the study for larger complexes is to base meter charges on the size of the service connection rather than on the specific meters that are present, which works to the benefit of the customer. They are also currently studying other City service charges to determine a more equitable distribution of costs. Mayor Murphy expressed concern that Council needs to look at the impacts on multi-family units and suggested Council could either continue this item or approve it with a direction to staff to bring back specific assessments of multi-family units. The Director of Public Works indicated the new rates would be in effect 30 days from the adoption of the Ordinance. New billing would begin around mid-April, but because the City is on a two-month billing cycle, full billing wouldn't begin until around mid-June. The City is currently operating at a $40,000 per month deficit for its water rates, which would mean more of a shortfall ifthe Council were to delay action on this Ordinance. Councilman Slater suggested moving forward with the adoption of this Ordinance as it has already been delayed for years. He was open to pursuing a more detailed analysis of apartment units with the possibility of making adjustments if necessary at a later date. Councilmember Coontz agreed with moving forward with this Ordinance, and wanted to incorporate the concerns and recommendation of apartment owners, the Building Industry Association, Mobile Home Educational Trust and other large groups. The City Manager stated staff has already spent a great deal of time scrutinizing issues in trying to develop a fair and equitable system. It has been seven years since any rates were raised, and the proposed rates are still some of the lowest in the County. The water operation is currently operating at a deficit and there would be a greater impact if this Ordinance were delayed. PAGE 13 CITY COUNCIL MINUTES March 13, 2001 Mayor Murphy wanted to clarifY that the water enterprise fund is not in a negative even though it is currently operating at a deficit. It is, however, using reserves to help balance daily operations. Councilman Alvarez agreed they should move forward with this Ordinance, especially since the study on City services fees will be coming soon and it will also address large users. Mayor Murphy supported the adoption of this Ordinance with the direction that staff review and possibly incorporate the graduation of rates based on the number of units or some percentage thereof; and explore the equity issue along with the other service charges. TAPE 3370 MOTION - Alvarez SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved that Ordinance No. 5-01 be read by title only and same was approved and adopted by the preceding vote; with the direction to staff regarding the continued exploration of the rates for multi-family units. Council recessed at 6:26 p.m. and reconvened at 7:00 p.m. 10. NOTICED HEARINGS TAPE 3530 10.1 PROPERTY ACQUISITION BY EMINENT DOMAIN, 2019 W. CHAPMAN AVENUE: (A2100.0 AGR-3722) Time set for a noticed hearing on resolution of necessity to acquire the following strip ofland for the West Chapman Avenue Widening Project. 2019 W. Chapman Avenue Property Owner: Assessor Parcel Number: 039-331-31 The Chapman Avenue Trust UDT 6/9/95, Daniel Rudat, Trustee The Director of Public Works reported that in order for the Council to acquire any property, they need to make the findings that, I) the public interest and necessity require the acquisition of the property for the proposed project; 2) that the proposed project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; 3) that the property is necessary for the proposed project; and 4) that an offer has been made to the owner ofrecord ofthe property pursuant to California Government Code. He reported staff has reviewed the EIR originally certified in 1992 and determined that it is still valid based on current conditions. No public comments were received. RESOLUTION NO. 9421 A Resolution of the City Council of the City of Orange declaring the public interest and necessity of acquiring certain real property located at 2019 West Chapman Avenue and authorizing the acquisition thereof. PAGE 14 CITY COUNCIL MINUTES March 13,2001 MOTION - Slater SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt Resolution No. 9421. 11. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 12. RECESS TO CLOSED SESSION The City Council recessed at 6:26 p.m. to a Closed Session for the following purposes: a. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: I) Property: Parcel located at the northwest corner of Spring and McPherson Negotiating Parties: Union Pacific Railroad and City of Orange Under Negotiation: Price and terms of Payment b. Public Employment, pursuant to Government Code Section 54957. Title: Assistant City Manager c. Public employee performance evaluation pursuant to Government Code Section 54957: Title: City Manager d. Conference with Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation (two cases): I) Nieupointe Enterprises v. City of Orange, Orange County Superior Court Case No. 01CC02712 2) 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 ofthe matters will not be considered in Closed Session. 7:00 P.M. SESSION 13. PUBLIC COMMENTS - None. 14. PUBLIC HEARINGS TAPE 3800 14.1 ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS COMMUNITY GARDEN TOWER APARTMENTS GARDEN TOWER WEST APARTMENTS: (C2500.G) Time set for public hearing to consider the proposed issuance by the California Statewide Communities Development Authority of multi-family housing revenue bonds in an aggregate principal amount not to exceed $20,000,000 to finance the acquisition and rehabilitation of an approximately 333-unit, multi-story senior rental housing project located at 3919 and 4001 PAGE 15 CITY COUNCIL MINUTES March 13, 2001 Garden Grove Boulevard, and generally known as the Community Garden Tower Apartments and the Garden Tower West Apartments. The Housing Manager reported Living Opportunities Management Company (LOMCO) has managed these apartments for 20 years, which provide affordable senior housing under a HUD assisted housing program. The program has expired and LOMCO is willing to acquire the project provided housing revenue bonds can be issued by the California Statewide Communities Development Authority (CSCDA). The bonds would be issued in an amount not to exceed $20 million. It is more cost effective for CSCDA to issue the bonds, and it will provide for the units to remain affordable for a 55-year period. Approval is necessary in order for LOMCO to acquire and manage this property. Councilmember Coontz commented on the excellent job LOMCO has done III managlllg properties. MAYOR MURPHY OPENED THE PUBLIC HEARING THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING RESOLUTION NO. 9420 A Resolution of the City Council of the City of Orange approving the issuance of multifamily housing revenue bonds by the California Statewide Communities Development Authority. MOTION - Slater SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt Resolution No. 9420. 15. PLANNING AND ENVIRONMENT - None. 16. ADJOURNMENT MOTION - Alvarez SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz The City Council adjourned at 7:20 p.m. to an Adjourned Regular Meeting at 5:00 p.m. on Tuesday, March 20,2001 in the Weimer Room at City Hall to review Goals and Objectives for the Fiscal Year 2001/2002 Budget. ~~-tJ/d(UA<A~T CAS RA J. THCART, CMC CITY CLERK ft1~t~~ PAGE 16