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5/22/2001 - Council Minutes - CC Minutes Reg Meeting APPROVED BY CITY COUNCIL JUNE 12,2001 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING May 22, 2001 The City Council of the City of Orange, California convened on May 22, 2001 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman A venue, Orange, California. 4:30 P.M. SESSION 1. OPENING 1.1 INVOCATION Given by Harry Thomas, Director of Public Works 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 The following employees received Employee Service Awards: Scott Barrett - Police; Brian Stanley* - Police; Cathy Meyer* - Police; Patricia Sharkey* - Police; Gilbert Carreon - Police; Debbie Mercer* - Police; Roseanne Miller* - Library; Barbara St.Hilaire* - Police; Cathie Ralph* - Police; Lawrence Boyd - Fire; Michael Chenier* - Fire; Roger Fitschen* - Fire; Phillip Gunness* - Fire. (*present at Council meeting) Commercial Recycler of the Year awards were presented to the following businesses: Impact Manufacturing, Mr. Don Hall and Mr. Adrian Ahumada (Recycler of the Year Small Business Award); Young's Market, Mr. Steve Schaad (Recycler of the Year Large Business Award); Office Depot (runner-up) not present; and Foamex International, Mr. Terry Corliss (runner-up). Proclamation honoring Public Works Week May 20-26, 2001, was presented to Harry Thomas, Public Works Director/City Engineer. Proclamation honoring Mental Health Month in Orange, May, 2001, was presented to Rachel Pedraza from the Mental Health Board Mayor Murphy announced: . The COPS Expo will be held June 2 and 3 at the Orange Mall. PAGE 1 CITY COUNCIL MINUTES May 22, 2001 2. PUBLIC COMMENTS TAPE 730 Russell Monroe, 2505 E. Locust, read a letter about his experience with the Citizens Police Academy and his support for the Orange Police Department. (Letter on file in the City Clerk's Office.) Arlen Craig, address on file, submitted an invitation to the Council to a Trails forum to be held May 29th at Chapman University. 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 May 22, 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. ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk. 3.2 Request Council Confirmation of warrant registers dated May 3, and 10, 2001. ACTION: Approved. 3.3 Receive and file the City Treasurer's Report, period ending April 30, 2001. (C2500.F) ACTION: Approved. 3.4 Request approval of City Council Minutes, Regular Meeting May 8, 2001. (C2500.D.4) ACTION: Approved. 3.5 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. AGREEMENTS 3.6 Approval of a Reimbursement Agreement between the City of Orange and the Orange Redevelopment Agency for FY 2001-2002. (A2100.0 AGR-3283.B) PAGE 2 CITY COUNCIL MINUTES May 22, 2001 3. CONSENT CALENDAR (Continued) SUMMARY: The Reimbursement Agreement between the City and Agency will create indebtedness which will enable the Agency to utilize tax increment revenue instead of bond proceeds to pay for operational costs. This will free up bond proceeds for loans or projects. ACTION: Approved the Reimbursement Agreement between the Agency and the City. FISCAL IMPACT: There is no net fiscal impact on either the Agency or City budget. Interest paid by the Agency on the loan will be offset equally by interest earned by the Agency on the loan proceeds. There are sufficient tax increment revenues and other funds available to repay this loan. The Loan Repayment Schedule is set forth in Exhibit A of the Reimbursement Agreement. (REMOVED AND HEARD SEPARATELY) 3.7 Fourth Amendment to Consultant Agreement between IT Corporation and City of Orange for Yorba Park. (A2100.0 AGR-3139.H) SUMMARY: The City Council is being requested to approve the Fourth Amendment to the consultant agreement between IT Corporation and the City of Orange for Yorba Park in the amount not to exceed $7,500. The City is amending the consultant agreement to provide extra services as part of the Y orba Park Master Plan. The extra services will include a review and assessment of the enviromnental conditions, design assistance and preparation, and attendance at public meetings as part of the process for the Master Plan of Y orba Park. FISCAL IMPACT: Sufficient funds exist to fund this project in the following account: 100-7001-426700 (Other Professional Services): $7,500. Councilmember Coontz asked what the anticipated completion date was for these services and when construction might begin at Y orba Park. The Director of Community and Library Services reported they are hoping to finalize plans some time in August, but could not give an exact date for the start of construction. They have met with groups, such as the Dog Park Association, to inform them of this schedule. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz ACTION: Approved the Fourth Amendment of the consultant agreement between the City and IT Corporation for Yorba Park in the amount not to exceed $7,500; and authorized the Mayor and City Clerk to execute the consultant agreement on behalf of the City. PAGE 3 --" ---~-'--'--_._._------~-~.~I CITY COUNCIL MINUTES May 22, 2001 3. CONSENT CALENDAR (Continued) APPROPRIATIONS 3.8 Worker's Compensation Claims Compensation Budget Appropriation. (11200.0.3.8) SUMMARY: This request is for an appropriation of $450,000 from Fund 730 (Worker's Compensation) to account 730-1412-432100 Claim Compensation to cover unexpected industrial medical benefits. ACTION: Appropriated $450,000 form the Workers' Compensation Fund No. 730 to account No. 730-1412-432100 to pay for additional unexpected medical costs due to industrial injuries. FISCAL IMPACT: Adequate funds are available in Fund 730 to cover the appropriation. 3.9 CLAIMS (C3200.0) The City Attorney recommends that the Orange City Council deny the following Claim(s) for damages: a. Lee Bartosiewski b. Louise Bonham c. Sandra and Jerry Murphy d. Jerry Yniguez FISCAL IMPACT: None. ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. CONTRACTS 3.10 Award of Contract - Project No. D-135; CDBG Project - Walnut Avenue Storm Drain Improvements from Glassell Street to Shaffer Street. (A2100.0 AGR-3764) Award of Contract - Project No. S-195; CDBG Project - Walnut Avenue Sewer Improvements from Cypress Street to Orange Street. (A2100.0 AGR-3765) SUMMARY: The construction of the storm drain improvements will benefit the downstream low to moderate income areas by intercepting the street runoff from the drainage area easterly and northerly of the project limits. The construction of the proposed sewer improvements will provide the necessary system capacity to alleviate the deficiencies in the existing sewer system thereby improving sewer service to the immediate low to moderate income areas. The storm drain and sewer improvements overlap from Glassell Street to Orange Street and are being combined for economies of scale and ease of construction coordination. PAGE 4 CITY COUNCIL MINUTES May 22, 2001 3. CONSENT CALENDAR (Continued) ACTION: 1) Awarded a contract in the amount of $445,950 to Pipe Line Equipment Rental, PO Box 891839, Temecula, CA 92589-1839, and authorized the Mayor and the City Clerk to execute on behalf of the City for the Walnut Avenue Storm Drain Improvements. 2) Awarded a contract in the amount of $395,160.40 to Pipe Line Equipment Rental, PO Box 891839, Temecula, CA 92589-1839, and authorized the Mayor and the City Clerk to execute on behalf of the City for the Walnut A venue Sewer Improvements. 3) Authorized the transfer of $126,000.00 from Account No. 310-9645-483400-1819 (CDBG Storm Drain Replacement; Glenside-Fernside Storm Drain) to Account No. 310- 9645-483200-5550 (Walnut Avenue Sewer Improvements). FISCAL IMPACT: Funds are budgeted and are available in the Capital Improvement Program in the following accounts: Walnut Avenue Storm Drain Improvements (D-135): 310-9645-483400-5386 Community Dev. Block Grant (CDBG) 315-9645-483400-5386 CDBG Funds - Prior Year Total Funds $ 288,000 $ 250,000 $ 538,000 Walnut Avenue Sewer Improvements (S-195): 310-9645-483200-5550 Community Dev. Block Grant (CDBG) 310-9645-483200-5550 (Transfer from 310-9645-483400-1819) Total Funds $ 304,000 $ 126,000 $ 430,000 PURCHASE 3.11 Authorize purchase of yellow LED traffic signal lamps and pedestrian lamps from Synchronex in the amount of $85,748.35. (S4000.S.3.3) SUMMARY: In anticipation of energy failures, staff has identified 44 intersections which could be kept in operation by a battery backup system. To implement such a system, all incandescent bulbs must be replaced with LED lamps. ACTION: Authorized the purchase of yellow LED traffic signal units in the amount of $85,748.35 from Synchronex; and transferred $15,448.80 from 272-5032-483100-6096 (Replace Failsafe Devices) and $75,232.40 from 272-5032-483100-6456 (Street Light Conversion) into Gas Tax LED Replacement Account No. 272-5032-483100-6464. FISCAL IMPACT: After the appropriation transfer has been made adequate funds will be available in Account No. 272-5032-483100-6464 (Gas Tax LED Replacements) $90,671.20. PAGE 5 CITY COUNCIL MINUTES May 22, 2001 3. CONSENT CALENDAR (Continued) RESOLUTIONS 3.12 RESOLUTION NO. 9442 (C2500.M.l.l ) A Resolution of the City Council of the City of Orange approving the submittal of Used Oil Recycling and Hazardous Waste Block Grant applications. ACTION: Approved. 3.13 RESOLUTION NO. 9447 (C2500.M.16) A Resolution of the City Council of the City of Orange authorizing Public Works Director/City Engineer or designee to execute Right -of-Way Certifications. ACTION: Approved. 3.14 RESOLUTION NO. 9448 (S4000.S.4) A Resolution of the City Council of the City of Orange temporarily closing a section of Walnut Avenue between Orange Street and Center Street, and the temporary suspension of permit parking requirements within Area A, (downtown area) for a special event from 5:30 p.m. through 8:00 p.m., May 26-27, 2001. Annual Baccalaureate and Commencement Ceremonies at Chapman University ACTION: Approved. (REMOVED AND HEARD SEPARATELY) 3.15 RESOLUTION NO. 9449 (C2500.M.16.1 / LLN 01-6) A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 2001-6 adjusting lot lines of certain real property situated at 1069 and 1071 North Meads Avenue in the City of Orange, County of Orange, State of California. Owner: John Martin Hormuth and Judith A. Hormuth, Husband and Wife, as Community Property Councilmember Coontz asked what the minimum lot size would be for this property, as it needed to meet the lot size requirements in Orange Park Acres. The Director of Public Works stated the proposal is to combine two lots into one which will total 2.25 acres. MOTION - Murphy SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz ACTION: Approved. PAGE 6 CITY COUNCIL MINUTES May 22, 2001 3. CONSENT CALENDAR (Continued) 3.16 RESOLUTION NO. 9450 (C2500.M.16.1/LLN-01-3) A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 2001-3 adjusting lot lines of certain real property situated at Lots 171 to 180 and Lot G of Tract 10439, in the City of Orange, County of Orange, State of California. Owner: M.M. Orange, LLC Location: Vista Ridge Drive and Vista Summit Way ACTION: Approved. 3.17 RESOLUTION NO. 9451 (C2500.P .3) A Resolution ofthe City Council ofthe City of Orange determining that there is a need to continue the emergency rehabilitation of Water Wells 23 and 24. Well 23 is located at 3142 E. Walnut Avenue, adjacent to Santiago Creek; Well 24 is located at 2930 E. Collins Avenue, next to Fire Station No.2. ACTION: Approved. 3.18 RESOLUTION NO. 9452 (C2500.M.16.1 / LLN-01-4) A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 2001-4 adjusting lot lines of certain real property situated at 450 S. Batavia Street in the City of Orange, County of Orange, State of California. Owner: St. Joseph College of Orange, A Corporation ACTION: Approved. SPECIAL EVENTS (REMOVED AND HEARD SEPARATELY) 3.19 Request for temporary suspension of permit parking restrictions within Permit Parking Areas D and G, for a special event. (S4000.S.3.1.2) SUMMARY: The Community and Library Services Department will host the annual July 3rd Celebration at El Modena High School's Kelly Field. Due to anticipated attendance it may be necessary to park in the surrounding residential neighborhood adjacent to the stadium, which restricts on-street parking except by Permit. FISCAL IMPACT: None. PAGE 7 - --- --- .~_._-_.._~~----~".__._.-r- CITY COUNCIL MINUTES May 22, 2001 3. CONSENT CALENDAR (Continued) In response to questions from Councilmember Coontz, the Director of Public Works stated the Community and Library Services Department is required to send out written notification to the neighborhood regarding the suspension of permit parking for this event. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz ACTION: Suspended the permit parking restrictions within Permit Parking Areas D and G, on Tuesday, July 3, 2001. MOTION - Slater SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Items 3.7, 3.15 and 3.19 were removed and heard separately. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR ******** 4. REPORTS FROM MAYOR MURPHY - None. 5. REPORTS FROM COUNCILMEMBERS 5.1 Council member Slater - Finalize plans for City Motto Contest Committee. Councilmember Slater submitted a report to the Council, outlining the framework for this Committee. The purpose of the Committee is to conduct a contest in order for the City to have a motto. Each Councilmember would appoint a representative to the Committee, with Councilmember Slater acting as chair of the Committee. They would be working into the Fall in order to involve school children in the contest. The Committee will look at other cities and what has worked and what does not. The motto should be short, capture the image of the City and be able to transcend good times and bad; noting that many suggestions have already been submitted. The Committee should be able to finalize their work and make a formal recommendation to the Council by the end of the year. Councilmember Coontz read an article about a city in Massachusetts, noting the problems some cities have had with slogans and the need to have a motto that transcends both good times and bad. MOTION - Slater SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt a City Motto Contest Committee and adopt the framework as presented. PAGE 8 CITY COUNCIL MINUTES May 22, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) 5.2 Councilmember Slater - Airport Issues · Update on Supplemental Environmental Impact Report for EI Toro. · Direct City Manager to provide update on proposed new settlement agreement for John Wayne Airport. · Discuss County's current preferred flight paths and make recommendations for possible action. Councilmember Slater stated that he was reporting as the Council's representative to the Orange County Regional Airport Authority (OCRAA). There has been some discussion lately on the Orange County preferred alternative for a take-off pattern to the north for EI Toro Airport. This has become controversial, noting that the City of Villa Park has decided to withdraw from OCRAA because of it. He wanted to ensure that the Council was kept informed of these discussions and wanted to be able to take the Council's concerns back to OCRAA. He stated that Gary Simon, Executive Director of the local planning authority for the airport, has offered to give a briefing to the Council to provide an update on the County's proposed flight patterns; and asked staff for a brief update on the Supplemental EIR for El Toro Airport and also the John Wayne Airport settlement agreement. The Director of Community Development reported the Supplemental EIR for EI Toro Airport is limited in scope, looking at a re-analysis of air quality impacts of the proposed airport and looking at transportation alternatives with regard to freeways. Staff is reviewing the document and will return to the Council in June with a proposed comment letter on the Supplemental EIR. The document does not re-open the discussion oflooking at alternative runways. Councilmember Coontz stated the Council has already sent a letter to the County Board of Supervisors, as well as the FAA, and understands there is a report coming back they should have received by now. She was concerned about the recommendations from the FAA and how they would fit into the EIR that is already in place. There is a lack of understanding on these issues, and asked ifthere is a time period in which to address the concerns of flights in the EIR. She had asked for a copy of all the flight patterns in the area and hoped Council would be able to get all the information that is available. The City Manager reported on the current and proposed settlement agreements with John Wayne Airport. The current agreement, which expires in December 2005, has a cap of 8.4 million annual passengers, seating approximately 13 million seats per year, allows for 73 daily departures, has an airport curfew of 10:00 p.m. to 7:00 a.m., and the capacity has been averaging 61 % of available seats. The City of Newport Beach has been selected to represent all cities in negotiations to extend this agreement; and it was agreed to by all cities that the discussion on this agreement would be maintained separately from any issue related to EI Toro. The extension agreement impacts and involves the FAA and current air carriers, and the County is the one with control over the agreement. The goals of the cities are to extend the current agreement for as long as possible, maintain the current curfew and minimize any increase in the daily departures and total annual passengers as much as possible. PAGE 9 '-'---'---.-~_._-----_._----_.._---_._~..---_. CITY COUNCIL MINUTES May 22, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) Currently, negotiations are underway to try to get an extension to this agreement to 2026, with no change in cargo operations, no change in the noise ordinance for general aviation, no change in runway length, and allow construction of 4 additional gates at the end of the current agreement from 14 to 18. After these 4 gates are operational, there could be an increase from 73 to 85 flights per day and an increase in annual passengers from 8.4 to 9.8 million. The County would also agree not to do any master planning until 2026. He noted the FAA no longer allows flight curfews at any airport. There is a curfew at John Wayne Airport with the current agreement and its extension would allow the continuation of this curfew. The best case scenario is a compromise and the interests of everyone have to be taken into account. The City Manager was directed to keep Council informed throughout the process. Councilmember Alvarez asked what authority or power OCRAA has to change the direction of what the County is proposing regarding EI Toro and what they can expect from OCRAA; and expressed concern about the flight patterns at John Wayne Airport, noting they are not being followed. Mayor Murphy commented it was his understanding that once the air space at EI Toro was retired, pilots were given more flexibility for air space, allowing them to take a wider approach. This may be a contributing factor, which should be confirmed. Councilmember Slater stated it was his understanding the FAA did address the flight path situation noted in the City's letter to them, and asked the City Manager for more details on that issue; noting that within the next 2 to 4 weeks, OCRAA will receive the FAA's opinion on the County preferred plan and whether it will be safe or not. Ultimately, the FAA will sort out the flight patterns. He further reported that he knows an air traffic controller who worked at John Wayne Airport who would be willing to give the Council a briefing. OCRAA is concerned that the County is only studying one plan, and should it fail, they want the County to be able to have an alternative that will work and make sense; and are encouraging the County to do this. The County's position has been that an alternate study will delay the EIR process; and although OCRAA doesn't want that to happen, they will be asking the County to do a concurrent study of the other alternatives separate from the EIR so they are doing all they can to consider all the options. Councilmember Coontz asked what would happen if the FAA turns down the County preferred flight patterns. The options are not clear if it isn't approved, and a concurrent plan would be a good idea. She noted the purpose ofOCRAA is not to get into the John Wayne Airport issues, but to focus on the El Toro issue. PAGE 10 CITY COUNCIL MINUTES May 22, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) The City Manager reported there seems to have always been a perception that the flight patterns were aligned with the 55 Freeway. However, according to the FAA in their letter to the City, flight patterns have never been aligned and have never used the 55 Freeway as a landmark. John Sibley, Assistant City Manager, reiterated the fact that the charter of OCRAA was to assist the County in developing a re-use plan for EI Toro as an advisory board. Also, the County Board, as well as the County staff, are anxious to get out into the community and answer questions about flight paths and take-off patterns. Maps are available which outline runway patterns for the entire region and the County can provide data to back up those maps. Councilmember Alvarez stated that while he is in favor of sending letters to the FAA expressing the City's concerns, he questioned their effect; stating it would have more impact to send staff to talk to them face to face. Mayor Murphy stated it is important to be active with the City's participation. From a personal standpoint, his support for EI Toro has always hinged on the fact that there would not be negative impacts to the City of Orange in terms of enviromnental or additional flights. Should there be an alternative that includes northerly routes as being the only safe route, then he would have to oppose that concept as an individual, and hoped the Council would also as it would not be in the best interests of the citizens of Orange. Councilmember Coontz stated she felt very strongly about this as well. They still do not know the entire process and what other alternatives are available; and there seems to be more of a recent awareness of flights in the area. She supported the idea of a study session and regular updates from OCRAA; and as the City's alternate to OCRAA, wanted to be sure she received their meeting minutes. Councilmember Slater also expressed concern about the northerly take-off patterns; and asked Bob McGowan, Villa Park Councilmember, who is also a pilot, to provide his perception of the process at this point and why the City of Villa Park withdrew from OCRAA. It was Councilmember Slater's understanding that Villa Park withdrew because the County is adamant about pursuing only one option. Bob McGowan, Villa Park Councilmember, reviewed flight patterns for EI Toro; and explained the reason why Villa Park withdrew from OCRAA was that OCRAA has no authority. The County is not willing to study any other alternatives and is only promoting their plan, which was not designed by aviation professionals. In his opinion, the County's plan is a bad one, and the County is trying to get OCRAA to substantiate it and put everyone's name on it as supporters. Councilmember Slater reiterated that this is a controversy which is circulating around OCRAA. The County has not been coming forward with any details about their plan, and agreed that a study session would be worthwhile. He expressed concern that the plan seems backwards and doesn't make sense, but there is no alternative plan being studied. He asked for Council's direction in relaying a response to the County. PAGE 11 ---Y-.^- CITY COUNCIL MINUTES May 22, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) Mayor Murphy noted the Council seemed to agree and be concerned with the implications to the City on the proposed flight paths and the fact that the County is not looking at other alternatives. He also concurred that a study session would be advisable along with more regular updates. Councilmember Alvarez stated that he has publicly stated his opposition to the El Toro Airport, and as a Council, suggested that if they are looking at alternatives, they need to also include the alternative of no airport, which is being promoted by the El Toro Reuse Authority. Measure F was overwhelmingly approved by the citizens of Orange and another initiative, which will be on the ballot next year, is looking to change the zoning for that area away from aviation. He made the distinction of not supporting El Toro Airport versus the work that needs to be done at John Wayne Airport; and agreed they need to work with the County on these issues. Mayor Murphy pointed out the Council did take action to join OCRAA and participate. A study session would be helpful to help formulate their responses to OCRAA. Also, regardless of personal opinions on the airport concept, they all seem to agree on the importance of extending the caps and restrictions at John Wayne Airport. Councilmember Coontz pointed out that one of the reasons the City joined OCRAA was their interest in the economic advantage for Orange County in the future. She noted that parks and residential areas do not bring money into the communities; and there needs to be a balance of retail, commercial, industrial and residential in any community. She agreed on the need for a study session, but wanted to make sure the design of the session is well understood and that they have confidence in whoever is making the presentations. Both the El Toro and John Wayne Airport issues are important, but they need to separate those issues during the study session. 5.3 Councilmember Alvarez - Recommend approval of the formation of McPherson Neighborhood Committee. TAPE 3180 NOTE: Item 5.3 was heard concurrently with Item No. 7.1 The City Attorney reported the direction given at the last Council meeting was for him to review the legal issues regarding the formation of a neighborhood committee. If a committee were formed as originally planned, with members appointed by the Council and a Councilmember included as a member of the Committee, then it would be subject to the Brown Act and the Political Reform Act. Therefore, it is being recommended to modifY the Committee make-up so that it will be formed by the neighborhood itself. Councilmember Alvarez reviewed the goals of this proposed committee. The neighborhood wants to be able to have discussions with City staff or Councilmembers in a more formal manner than they have been doing in the past. The neighborhood wants to form a committee to be recognized as an informational committee, to provide input from the neighborhood, and to disseminate information to the neighborhood. This neighborhood, in recent years, has become heavily impacted with a sports park and magnet school, and they want to participate more in what is going on in the neighborhood. PAGE 12 CITY COUNCIL MINUTES May 22, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) Mark Burkhardt, address on file, thanked the Council and staff for their assistance and efforts in helping to form this neighborhood committee. They hope to have the ability to help mitigate problems and development issues that affect their entire neighborhood. Mara Brandman, address on file, spoke in support of this committee, stating it will bring people to meetings and help them get more involved; and hoped it would set a trend for other neighborhoods. Bob Bennyhoff, Orange Park Acres, stated this is not a new idea, that citizens have always been able to talk to the Councilor staff; and was glad the Council would not be designating this as an official committee. Councilmember Coontz agreed that citizens have always been able to attend Council meetings and have their voice heard. The City does try to help citizens understand the government process and provide them with opportunities to communicate with the Council and staff. Mayor Murphy stated he could support the formation of a neighborhood committee under the current proposed guidelines, and reminded the neighbors to give the City Clerk addresses where they can be notified of meetings. Councilmember Alvarez reiterated that this is not a special committee, it is simply an advisory committee; and will organize how people are able to come forward to the staff or Council. The City Manager pointed out the need to have any neighborhood committee properly represent the entire neighborhood they say they represent to ensure that incorrect assumptions are not made. There needs to be balanced opportunities for all residents, and a need to have clarification of the geographical boundaries of the neighborhood. The City Attorney suggested Council take action on the concept of the committee and then come back with a more detailed analysis at a future meeting. Councilmember Coontz stated they need clarification of the committee structure and geographic area involved. Councilmember Slater commented on the need for further details for this committee, specifically to what extent this committee is going to be involved, how it compares to other committees, and the overall structure for other possible neighborhood committees and its impact to staff. MOTION - Alvarez SECOND - Murphy AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to approve the formation, in concept, of the McPherson Neighborhood Advisory Committee, noting the comments and concerns of the City Council, City Attorney and City Manager. PAGE 13 CITY COUNCIL MINUTES May 22, 2001 5. REPORTS FROM COUNCILMEMBERS (Continued) TAPE 4080 5.4 Councilmember Coontz - Recommendation of support for Assembly Bill 476, revision of membership on the OCTA Board of Directors. Councilmember Coontz reported the League of Cities is currently promoting the expansion of the OCTA Board to increase the number of representatives to ten. The issue of the Board composition is a legislative activity which is being addressed through Assembly Bill 476. After passage of AB 476, the League will then address the process for the selection policies regarding city representation. She spoke on the importance of Orange having representation on this Board and asked the Council to support a letter addressed to Assemblyman Tom Harman in support of this Bill. Roy Shabazian, 3808 E. Palm, supported having Orange representation on the OCTA Board, and encouraged the Council to support the use of multi-modal transportation. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to support a letter being sent to Assemblyman Harman in support of Assembly Bill 476. OFF AGENDA ITEM Councilmember Slater displayed a political sign which was posted on public right-of-way, reminding everyone that signs placed in the public right-of-way are a violation of City Ordinance. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS TAPE 4380 6.1 Designation of Alternate Board Member for Metro Cities Fire Authority (OC1300.A) SUMMARY: Metro Cities Fire Authority, which the City of Orange is a member, provides joint fire dispatching services for seven member agencies. The Authority is governed by a Board of Directors that is comprised of one voting member and alternate from each member city. MOTION - Murphy SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to designate the Fire Chief as the City's alternate voting board member to the Metro Cities Fire Authority. PAGE 14 CITY COUNCIL MINUTES May 22, 2001 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS (Continued) 6.2 Accept the resignation of Frank Bauman from the Building Board of Appeals/Housing Board of Appeals. Instruct the City Clerk to begin Maddy Act procedures. (ORI800.0.42.2) MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to accept the resignation of Frank Bauman from the Building Board of Appeal/Housing Board of Appeals and instruct the City Clerk to begin Maddy Act procedures. 7. ADMINISTRATIVE REPORTS 7.1 Report from the City Attorney concerning formation of McPherson Neighborhood Committee. (ORI800.0.10.4) SUMMARY: The City Council requested a report from the City Manager and City Attorney concerning the ramifications of forming a neighborhood committee made up of representatives in an area generally bounded by the 55 Freeway on the West, Chapman Avenue on the North, Esplanade Street on the East and Fairhaven Avenue on the South. NOTE: Item 7.1 was heard concurrently with Item 5.3. MOTION - Coontz SECOND - Murphy AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to receive and file the report. TAPE 4470 7.2 Report from the Economic Development Director on a request to approve an Affordable Housing Loan Agreement for the development of a 20-unit senior housing project to be located at 170 North Prospect Street. (A2100.0 AGR-3766) SUMMARY: Urban Pacific Partners, II, LP plans to acquire property located at 170 N. Prospect Street and develop 20 affordable senior rental units. The total estimated cost of the project is $3,767,270. Under the terms of the proposed Affordable Housing Loan Agreement, the Orange Redevelopment Agency will provide a loan of $1,360,000 for the project: $510,000 for property acquisition and $850,000 at completion of the project. The developer is proposing to fund the remaining project cost of $2,407,270 with tax credits and private financing. If his applications for tax credits are not successful, the ownership of the property will revert to the Agency. The Housing Manager gave a brief report on the proposal. In response to questions by Councilmember Alvarez, she reported the money used as a loan would be Housing Set Aside funds, secured by a second trust deed at 4% interest. Money will be repaid from available cash flow from the project. PAGE 15 CITY COUNCIL MINUTES May 22, 2001 7. ADMINISTRATIVE REPORTS (Continued) Mark Tully, Urban Pacific Partners, stated they have all approvals necessary for this project. RESOLUTION NO. 9453. A Resolution of the City Council of the City of Orange approving an Affordable Housing Loan Agreement by and between the Orange Redevelopment Agency and Urban Pacific Partners II, LP regarding 170 North Prospect Street and making certain findings. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt Resolution No. 9453; and authorized the Agency Board to appropriate $1,360,000 to Account Number 913-9809-485701-9206 (Prospect Street Apartments Loan Account). TAPE 4750 7.3 Report from the Director of Community Services on the Re-naming of Prospect Street Community Park. (C2500.M.4.20) SUMMARY: The City Council referred the matter of re-naming Prospect Street Community Park to the City of Orange Park Planning and Development Commission. The Commission at its meeting on May 10,2001, unanimously approved the citizens committee's recommendation that the new park name be Grijalva Park at Santiago Creek. The Director of Community and Library Services reported this matter was referred to the Park Planning and Development Commission, who approved sending out letters to the community asking for involvement on a park naming committee. Fourteen citizens responded and unanimously recommended the name of Grijalva Park at Santiago Creek. This name was chosen to maintain the historical significance of the area and honor Don Juan Pablo Grijalva who was one of the first settlers in the City of Orange. The Park Planning and Development Commission unanimously approved the citizens committee's recommendation. He thanked the Committee for their work in developing this name and introduced members of the Committee who were in the audience: Arlen Craig, Sue Craig and Nan Gaisbauer, as well as recognizing Eddie Grijalva. Eddie Grijalva, address on file, thanked the Council for recognizing the first resident of Orange with this park name. Doug Westfall, 1125 W. Palm, spoke on the historical significance of this proposed name for the park. The Council spoke in support of the proposed name - Grijalva Park at Santiago Creek. It was suggested that the correct pronunciation of Grijalva be emphasized somehow and that the first part of the name - Grijalva Park - will probably be emphasized without the Santiago Creek portion. The Council also suggested the use of a plaque or marker to signifY the historical significance of this name and area. PAGE 16 CITY COUNCIL MINUTES May 22, 2001 7. ADMINISTRATIVE REPORTS (Continued) MOTION - Murphy SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to approve the Park Planning and Development Commission's recommendation to re- name the park Grijalva Park at Santiago Creek. NOTE: The Council recessed at 7:10 p.m. and reconvened at 7:30 p.m. 8. REPORTS FROM CITY MANAGER TAPE 5680 8.1 Presentation of the Third Quarter 2000-2001 Budget Report which includes the period July 1, 2000 through March 31, 2001. (C2500.E.4) SUMMARY: The Third Quarter Report helps inform the City Council of departmental performance for the quarter, including progress towards the achievement of departmental goals and completion of major capital improvement projects, and summarizes the results of the City's financial operations. MOTION - Coontz SECOND - Alvarez AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to receive and file. 9. LEGAL AFFAIRS - None. 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council recessed at 8:05 p.m. to a Closed Session for the following purposes: a. Conference with Legal Counsel - Significant exposure to litigation pursuant to Government Code Section 54956.9(b) (one potential cases) b. 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. 7:00 P.M. SESSION 12. PUBLIC COMMENTS - None. PAGE 17 CITY COUNCIL MINUTES May 22, 2001 13. PUBLIC HEARINGS TAPE 5860 13.1 CITY OF ORANGE 2001-02 FISCAL YEAR BUDGET AND SEVEN YEAR CAPITAL IMPROVEMENT PROGRAM: (C2500.J.l.l) Time set for a public hearing to consider adoption of the 2001-02 Fiscal Year City of Orange Budget and adoption of a limitation on certain appropriations in accordance with Article XIII of the State Constitution. The City Manager presented a brief overview of the budget. In recent years, the City has been addressing long term service demands by adding new programs and expanding existing programs and services. These were in areas that the City was unable to adequately address in the past due to the resource limitations that were incurred from the recession in the early 90's. This catch-up has been made possible through the City's aggressive economic development programs and the strong growth in the economy in the past few years. There has been a 31.8% increase in the General Fund in the last five years. Numerous redevelopment projects have contributed to an overall increase in sales tax revenue of 41.6%. In addition, property tax revenue has increased by 23.7% over the same period. However, many economic indicators point to a slowing economy. Therefore, the City must remain fiscally prudent in order to ensure a position to respond to any economic downturn. This budget reflects a conservative spending plan that will allow the City to weather a slowing economy while still maintaining a high level of service to the residents of Orange. The City Manager reviewed key budget highlights, including flat revenue projections, rising expenses, the deferral of filling vacant positions, deferral of several large expenditures, enhanced Police Dispatch operations, the completion of key park infrastructure projects, long term planning for Library facilities, the future of the Santiago Hills II development, and the Capital Improvement Program. He further reviewed the General Fund revenues and expenditures and the proposed staffing changes. With the uncertainty of the economy, and in order to avoid what the City went through in the early 90's, the City is doing a great deal of planning while anticipating downturns and having contingency plans in place to minimize any negative impacts and maintain service levels to the public. COUNCIL DISCUSSION Councilmember Coontz stated she appreciated the City Manager's fiscal prudence, so as not to repeat the difficult times of 1991, and spoke on the importance of quarterly budget updates. She reported on information regarding the Governor's budget providing local agencies with $250 million in discretionary funding, and asked ifthere were any losses the City would take from any funds that are expected from Sacramento. The City Manager stated the budget has not been built around any anticipated revenues from the Governor's budget. The only concern would be with a proposed reduction in vehicle license fees, which were originally developed as a tax for local government to offset taxes which were taken away many years ago. However, he was confident the City would be able to respond without any significant cuts. PAGE 18 CITY COUNCIL MINUTES May 22, 2001 13. PUBLIC HEARINGS (Continued) Mayor Murphy spoke on the importance of continuing to have a balanced budget with contingencies based on uncertainties in the enviromnent. It also makes sense to identifY parts of the budget that could be delayed if necessary. He pointed out the number of City employees per capita population in the City, which makes the most out of taxpayer dollars based on the quality of the people that are hired. The City continues to consolidate and fine tune the activities around the City; and he complimented the City Manager and the entire City staff for their efforts in doing more with less, which will ultimately make any economic change more easily manageable. Councilmember Slater commented on the work that was done to develop a very thorough, balanced and fiscally conservative budget; and complimented staff for their efforts in keeping the budget in line. TAPE #2 Councilmember Alvarez also complimented City staff for their fiscal management while still maintaining high levels of service. Councilmember Coontz stated the Budget summary report is a good overview of all the activities in Orange and well worth reading for any citizen of Orange. She pointed out this budget is actually three budgets in one - Operating, Capital Improvement Program and Redevelopment Agency. The City Manager thanked the City staff and all those who prepared the budget and thanked the Council for their confidence in the employees. MAYOR MURPHY OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING RESOLUTION NO. 9445. A Resolution of the City Council of the City of Orange adopting said City's Budget for the Fiscal Year 2001-02 and relating to transfers of funds between and within appropriations, transfers between funds and additional appropriations. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt Resolution No. 9445. RESOLUTION NO. 9446 A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2001-2002. (This resolution establishes the Gann appropriations limit at $94,822,431). PAGE 19 CITY COUNCIL MINUTES May 22, 2001 13. PUBLIC HEARINGS (Continued) MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt Resolution No. 9446. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to adopt a finding that the portion of the Fiscal Year 2001-02 Budget subject to the Gann Limit is $52,774,334 and is therefore within the limit. MOTION - Coontz SECOND - Slater AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved to approve the Seven Year Capital Improvement Program for the period of FY 2001-02 to FY 2007-08 THE CITY COUNCIL CONVENED TO THE REDEVELOPMENT AGENCY'S AGENDA FOR BUDGET PUBLIC HEARING ITEM 11.1. 14. PLANNING AND ENVIRONMENT - None. 15. ADJOURNMENT MOTION - Alvarez SECOND - Coontz AYES - Slater, Alvarez, Mayor Murphy, Coontz The City Council adjourned at 8:20 p.m. e4~.u-t~ CASSAND . CATHCART, CMC CITY CLERK tJjj~!J~ MAYO PAGE 20