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10/22/2002 - Council Minutes - CC Minutes Reg Meeting APPROVED BY THE CITY COUNCIL ON NOVEMBER 12, 2002 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING October 22, 2002 The City Council of the City of Orange, California convened on October 22, 2002 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 I.1 INVOCATION Giyen by Reyerend Ginny Erwin, Trinity Episcopal Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Boy Scout Troop 586 1.3 ROLL CALL PRESENT - Alyarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS a) Mayor's Recognition Certificates were presented to Ricoh Corporation, Santiago Creek Greenway Alliance and the Equestrian Coalition for their participation in Watershed Clean Up Day on September 21,2002. b) A presentation was made to Friends of the Orange Public Library in appreciation for their donations to the Taft Branch Library Renoyation, accepted by Helen Viyiano, President. c) A Proclamation was presented to Vicki Porter and Jamie Fingal, representing the Girl Scout Council of Orange County, proclaiming October 17 through 20, 2002 as the 49th National Conyention ofGir] Scouts of the USA. d) Employee Service Awards were presented to the following employees: Dayid Schweitzer - Police (not present); Carey Cobb - Fire (not present); Chuck Lau - Community Development; Robert Miller - Police (not present); Dayid Alton - Police. e) RESOLUTION NO. 9670 A Resolution of the City Council of the City of Orange expressing thanks and appreciation to Cathy Knopf of the Finance Department for twelye years of loyal and dedicated service. PAGE 1 CITY COUNCIL MINUTES October 22, 2002 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS (Continued) MOTION - Murphy SECOND - Alvarez AYES - Alvarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz Moyed to approye Resolution No. 9670. Cathy Knopf was unable to attend the Council meeting. Resolution No. 9670 will be presented to her at a farewell reception later that week. f) The June 30, 2001 Government Finance Officers Association Award for Financial Reporting Excellence was presented to the Finance Department. This is the 15th year the City of Orange has receiyed this award. g) Tim Paone, Community Foundation of Orange, provided a reyiew of the Foundation, which is focusing on building a community center at Grijalya Park, utilizing both public and priyate funds; and introduced Roger Hobbs. Roger Hobbs, and his wife Kathy, presented a check in the amount of $500,000 to the Community Foundation of Orange, as a pledge to match, dollar for dollar, up to $500,000 to jump start the campaign for a multi sports facility. The Council expressed their deepest gratitude to Roger and Kathy Hobbs for their generosity. Michelle Turner was introduced; and presented a $1000 donation to the Orange Police Department in appreciation for their assistance in helping her deal with the graffiti and neighborhood problems in the Cypress Street area. 2. PUBLIC COMMENTS TAPE 1015 Rick Cryder, address on file, asked the Council to release the Enyironmental Impact Report on Yorba Park so Council candidates can speak on the issue; questioned the cost of building the dog park; and spoke on the methane gas problems at Y orba Park. Chris Adams, 1120 N. Tustin, No. 102, reported he is trying to open an internet cafe, but has been told by City staff he needs a Conditional Use Permit; and asked for assistance from the City Council in getting his business opened. Mayor Murphy directed Mr. Adams to speak with the City Attorney's Office or the Community Deyelopment Department. Councilmember Cayecche explained there is a moratorium on issuing Conditional Use Permits for new internet cafes until April 2003; and City staff is currently working on requirernents for operating conditions. PAGE 2 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR All items on the Consent Calendar are considered routine and are enacted by one motion approying 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 Conncil agenda of a regular meeting of October 22, 2002 at Orange Ciyic Center, Main Library at 101 N. Center Street, Police facility at 1107 North Batayia, Shaffer Park, summarized on Time-Warner Communications and ayailable on the City's Website www.cityoforange.org, all of said locations being in the City of Orange and freely accessible to members of the pnblic 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 ofthe City Clerk. 3.2 Request Council Confirmation of warrant registers dated October 3, 10, 2002. ACTION: Approyed. 3.3 Request approval of City Council Minutes, Regular Meeting, October 8, 2002. ACTION: Approyed. 3.4 Consideration to waiye reading in full of all ordinances on the Agenda. ACTION: Approved. 3.5 Receive and file the City Treasurer's Report for the period ending September 30, 2002. ACTION: Approved. AGREEMENTS 3.6 Proposed Cellnlar Antennas at EI Modena Park (A2100.0 AGR-4149) SUMMARY: PCS Sprint and Cingular Wireless submitted applications to the City requesting to locate wireless cell phone antennas at EI Modena Park. PCS Sprint proposes to locate antennas on one of the baseball field light poles and Cingular Wireless proposes to locate an antenna inside a new flag pole. Both companies will require ground space for equipment that will require the size of existing restroom building to be expanded to accommodate this equipment. The proposals include improyements to the restroom building, financial payment for park improvements and a monthly lease fee. PAGE 3 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) ACTION: Approved the Lease Agreement with Cingular Wireless; approved the Lease Agreement with Sprint PCS; and, authorized the Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: The City would receiye the following: $44,300 in restroorn and landscape improyements; and $2,500 ($1,250 per company) in monthly lease fees. The City will also receive $60,000 ($30,000 per company) as a signing bonus. 3.7 Approval of Consultant Seryices Agreement with Shaw Enyironmental, Inc. for methane gas monitoring at Yorba Park. (A2IOO.O AGR-4151) 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. The City conducted a Request for Proposal (RFP) process from the City and selected Shaw Enyironmental, Inc. ACTION: Approyed the Consultant Services Agreement with Shaw Enyironmental, Inc. (Shaw); and, authorized Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: If approyed, the Agreement will be funded in the following account: 100-7001-426700 Other Professional and Consulting Services $41,000.00 3.8 Attorney Seryices Agreement with the Law Firm of Rutan & Tucker, LLP to proYide legal services. (A2IOO.O AGR-3958.A) SUMMARY: The City utilizes the law firm of Rutan & Tucker to provide legal services in connection with the Nieupointe, et al. v. City of Orange, et at Orange County Superior Court Case No. 01CC02712 and Case No. 02CCI0430. MOTION - Murphy SECOND - Cavecche AYES - Murphy, Cayecche ABSTAINED - Alyarez ABSENT - Slater, Coontz ACTION: Approved and authorized the Mayor and City Clerk to execute the proposed contract with Rutan & Tucker, LLP for a total sum of$45,000. FISCAL IMPACT: Sufficient funds are ayailable in Legal Services Account No. 100- 0301-426100. PAGE 4 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) APPROPRIA nONS 3.9 Authorization to appropriate $21,500 in federal matching grant funds for the Historic Orange Preservation Online local history project and to amend the City's revenue budget accordingly. (C2500.I) SUMMARY: Orange Public Library has been awarded $21,500 in federal Library Services & Technology Act matching grant funds for a project called Historic Orange Preservation Online (HOPO). The grant will expand Orange Public Library's Local History website online to provide public access to information and images of the agricultural industry in Orange, the City's inventory of the 1,237 historic homes and businesses in the Old Towne Orange Historic District, and Eichler homes in Orange. City Council authorization is needed to appropriate the $21,500 and to amend the revenue budget accordingly. ACTION: I) Amended reyenue budget to add $21,500 from Historic Orange Preservation Online grant funds (to account #100-2011-261500-9930). 2) Appropriate d $21,500 in Historic Orange Preservation Online grant funds as follows: $17,000 - to 100- 2011-426700-9930 (Other Prof. & Contractual Services); $4,500 - to 100-2011-410001- 9930 (Project Salaries & Benefits) FISCAL IMPACT: The City is recelYlng $21,500 in federal Library Services & Technology Act (LSTA) matching funds, administered by the California State Library, to begin this project. An additional $27,500 sought from this LSTA grant source has been promised by the California State Library after Orange Public Library proyides a detailed workplan on how grant activities will be accomplished, and obtains State Library approyal of that workplan. The total grant application - a $73,865 yalue requiring 1/3 local match - includes $17,865 of in-kind contributions from our Library, e.g., the estimated value of Library staff time. Because this project is one of the Main Library's major workplan objectiyes for FY 02-03, that staff time has been planned in existing workloads. The $4,500 noted here for appropriation will partially offset that $17,865. (REMOVED AND HEARD SEPARATELY) 3.10 Request to accept into the City's revenue budget and to appropriate donations from the Friends of the Orange Public Library ($14,955.45). (C2500.I) SUMMARY: The Friends of the Orange Public Library donated $14,955.45 toward the recent re-opening of the Taft Branch Library: $8,000.00 to launch a new collection of DVDs, and an additional $6,955.45 to purchase five computers for Taft's Information Technology Center. Acceptance of this reyenue and its appropriation into the FY 02-03 budget are requested. Note: This item was considered prior to the presentation to the Friends of the Orange Public Library under Item 1.4. PAGE 5 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) MOTION - Murphy SECOND - Alyarez AYES - Alyarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz ACTION: I) Accepted into the City's reyenue budget a $14,955.45 donation from the Friends of the Orange Public Library, as follows: $8,000.00 - to 100-2001-293900-9986 (Patron Donations of Materials); $6,955.45 - to 100-2021-293900-9989 (TaftlFriends Donation - PCs). 2) Appropriate the Friends' donations as follows: $8,000.00 - to 100- 2001-443101-9986 (Patron Donations of Materials); $6,955.45 - to 100-2021-471301- 9989 (Taft / Equipment Additions / Friends Donation - PCs) FISCAL IMPACT: The Library's ayailable funds for books and audioyisual materials will increase by $8,000.00, and its ayailable funds for new computers will increase by $6,955.45 in FY 02-03, thanks to these donations from the Friends of the Orange Public Library. BIDS 3.11 Project No. D-I41; CDBG Project - Collins Ayenue Storm Drain Improyements from Shaffer Street to Cambridge Street. Approyal of plans and specifications, and request for authorization to adyertise for bids. (C2500.M.17) SUMMARY: Plans and specifications haye been completed for the Collins Avenue Storm Drain Improyements Project. The project is ready to be advertised for bids. The estimated construction cost is $460,000.00 including contingencies (10%), and construction engineering (5%). ACTION: Approyed plans and specifications and authorized adyertising for bids for the CDBG Collins Ayenue Storm Drain Improyements construction project. FISCAL IMPACT: Funds are budgeted and are ayailable in the Capital Improyement Program in the following account: 310-9645-483400-5333 Community Dey. Block Grant (CDBG) $ 390,000 3.12 CLAIMS (C3200.0) The City Attorney recommends that the Orange City Council deny the following Claim(s) for damages: a. Chad Richter ACTION: Denied C1aim(s) for damages and referred to City Attorney and Adjuster. PAGE 6 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) CONTRACTS 3.13 Mills Act Contract No. MAC-87.0-02, (Historic Property Preservation Agreements). (A2IOO.O AGR-4152) SUMMARY: A proposal to approve Mills Act Contract for a historic, single-family residence located within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term of this contract total $40,210. Location: 262 N. Pine Street. ACTION: Approyed a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-87.0-02), for the preservation, restoration and/or rehabilitation of a qualified historic property in exchange for a reduced property tax assessment. FISCAL IMPACT: The estimated property tax loss to the city is approximately $273 per year. 3.14 Mills Act Contract No. MAC-88.0-02, (Historic Property Preservation Agreements). (A2IOO.O AGR-4153) SUMMARY: A proposal to approye Mills Act Contract for a historic, single-family residence and guesthouse located within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term of this contract total $55,075. Location: 237 N. Pine Street. ACTION: Approyed a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-88.0-02), for the preservation, restoration and/or rehabilitation of a qualified historic property in exchange for a reduced property tax assessment. FISCAL IMPACT: The estimated property tax loss to the city is approximately $270 per year. 3.15 Deferral of Construction for Hewes Street from Bond Ayenue to Villa Park Road and authorization to adyertise for Hewes Street Interim Safety Improvements. (C2500.M) SUMMARY: Public Works recommends deferral of the construction for realignment and widening on Hewes Street from Bond Ayenue to Villa Park Road. Deferral will provide the ability to redirect funding toward matching recently awarded street rehabilitation grant funding for repair of Chapman Avenue. In addition, deferral will allow the City to seek grant funding and address changes requested by area residents for the Hewes proj ect. As an interim measure, authorization to advertise for construction of interim safety improyements is also being requested. PAGE 7 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) ACTION: I) Approyed the cancellation of the Public Works contract with RJ. Noble Company for the construction of Hewes Street from Bond Ayenue to Villa Park Road. 2) Authorized the advertisement for bids for interim safety improvements on Hewes Street. 3) Transferred appropriation of$739,331.00 from account 272-5011-483300-3243 (Hewes St. Widening) to account 272-5011-483300-3112 (Arterial Street Maintenance). 4) Appropriated $6,301.00 from unappropriated reserves of Fund 272 (Gas Tax) to 272- 5011-483300-3112 (Arterial Street Maintenance). FISCAL IMPACT: After the appropriation, $745,632.00 of Gas Tax 2105 funds will be ayailable to match Grant Funding from the Orange County Transportation Authority Arterial Highway Rehabilitation Program (AHRP) for the City's street resurfacing and rehabilitation program. It is estimated that interim safety improyements will cost approximately $75,000.00. Funds are currently budgeted in the following accounts: 550-5011-483300-3243 285-5011-483300-3243 $151,690.00 $414,665.00 Reimbursed Capital Projects TSIP Area "C" 3.16 Award of Contract - Bid 023-04; La Veta Ayenne Street Widening: Main Street to Batayia Street, (SP 3284). (A2100.0 AGR-4154) SUMMARY: The award of the construction contract will proyide for the widening and street reconstruction of La Veta Avenue from Main Street to 200-feet east of Batayia Street. The improyements include the widening of the street to three lanes in each direction, replacement of the existing asphalt concrete driye surfacing, curb, gutter, sidewalks, storm drain pipe and inlets, street lights, modification to the existing traffic signals, and installation of new queen palm street trees in accordance with the Design Standards for the Southwest Project Area. ACTION: 1) Appropriated $882,535.00 from Fund 272, unappropriated reserves, to account No. 272-5011-483300-4039. 2) Appropriated $36,251.25 to 550-5011-483300-4039 and amend the reyenue budget to reflect the expected receipt of $36,251.25 from Orange County Transportation Authority in Account No. 550-5011-264900-4039. 3) Transferred $2500.00 from Account No. 262-5011-483300-3207 (Chapman Rehab- Cambridge to Tustin) to Account No. 262-5011-483300-4039 (LaVeta AYe. Widening). 4) Transferred $72,000.00 from Account No. 262-5011-483300-3208 (Chapman Rehab- Grand to Cambridge) to Account No. 262-5011-483300-4039 (LaVeta Aye Widening). 5) Transferred $30,000.00 from Account No. 272-5011-483300-3207 (Chapman Rehab- Cambridge to Tustin) to Account No. 272-5011-483300-4039 (LaVeta Ave Widening). PAGE 8 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) 6) Transferred $137,094.00 from Account No. 272-5011-483300-4004 (Glassell St. Rehab-Maple to Walnut) to Account No. 272-5011-483300-4039 (LaVeta Ave Widening). 7) Transferred $5,336.00 from Account No. 272-5011-483300-4037 (Tustin-Fairhayen to COllins) to Account No. 272-5011-483300-4039 (LaVeta Aye Widening). 8) Transferred $84,099.00 from Account No. 272-5032-483100-6096 (Replacement of Failsafe Devices) to Account No. 272-5011-483300-4039 (LaVeta Aye Widening). 9) Awarded a construction contract in the amount of $2,055,417.50 to Sequel Construction, 13546 hnperial Hwy, Santa Fe Springs, CA 90670 and authorize the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Upon completion ofrecommended appropriation and transfers funds shall be available in the following accounts: 550-5011-483300-4039 286-5011-483300-4039 262-5011-483300-4039 272-5011-483300-4039 $ 873,653 $ 168,193 $ 208,362 $1,154,630 Total $2,404,838 OCTA TSIA (JPA) Measure M Turnback Gas Tax 2105 3.17 Award of Contract - Roof Repairs at Fire Headquarters. (A2IOO.0 AGR-4155) SUMMARY: The roof at Fire Headquarters has three major areas of leakage as well as several minor leaks. To stop possible extensive water damage, repairs are needed to the entire roof. This will inyolye application of Western Colloid Fluid Applied Reinforced Roof System per Western Colloid specifications. The system was used on the Administration and Public Works buildings last year. ACTION: Awarded Bid No. 023-07 in the amount of $48,749.00 from the low bidder, Scholten Roofing Service Company, 23401 Madero, Suite C, Mission Viejo, CA 92691 and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds in the amount of $77,124.00 are ayailable in account number 565-5028-485100-2511, Fire Headquarters Roof Replacement. 3.18 Award of Contract - Cleaning & Sealing Exterior Walls of Police Building. (A21000 AGR-4I56) SUMMARY: The exterior tile walls of the Police Headquarters require cleaning and sealing every 5 years to prevent internal damage from rainwater, and it is time to haye the procedure done again. The City Council authorized adyertising for bids for this service on August 27, 2002. The bid opening was held on September 26, 2002. e.B. Construction was the apparent low bidder, but failed to proyide bid security as required in the bid instructions. Therefore, the bid received from C.B. Construction is deemed non- responsive. PAGE 9 1 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) ACTION: 1) Rejected the bid proposal from C.B. Construction as non-responsiye; and 2) Award Bid No. 023-06 in the amount of $38,355.00 from the second low bidder, Ski Incorporated, a California corporation, d.b.a. Bielski Window & Masomy Cleaning, 1200 Lance Driye, Anaheim, CA 92806 and authorized the Mayor and City Clerk to execute on behalf ofthe City. FISCAL IMPACT: Funds in the amount of $43,945.00 are ayailable in account number 725-5028-481200-9826, Police Headquarters Exterior Wall Sealing. LOAN PROGRAMS 3.19 City of Orange Deferred Payment Loan (DPL) Program (4S02 Simmons Avenue) (C2S00.0 G.l.l) SUMMARY: In 1985, Velma Richardson (the homeowner), receiyed a Two Percent DPL in the amount of $15,000 through the City's Home Improyement Program. Additional property improvements in the amount of $18,672 are now needed. The current DPL limit is $25,000. Staff is asking Council to approve a modified loan amount of $33,672. The term of the loan would not be amended, remaining due and payable upon the sale or transfer of the property. ACTION: 1) Authorized staff to exceed the $25,000 DPL limit by $8,672, approyed the homeowner's modified DPL loan in the amount of $33,672, and prepare all necessary loan documents; and 2) Authorized the City Manager to execute all necessary documents on behalf of the City. FISCAL IMP ACT: Sufficient funds are appropriated for this purpose III Account Number 315-9652-485701-1298 (Deferred Payment Loan Account). PURCHASES 3.20 Acquisition of database services and books for the Orange Public Library from Gale Group, Inc., in the amount of $66,000. (C2S00.I) SUMMARY: Request that the City Council authorize a $66,000 purchase order with Gale Group, Inc., for database services and books for the Orange Public Library. ACTION: Authorized the purchase order for the acquisition of database services and books for the Orange Public Library from Gale Group, Inc., in an amount not to exceed $66,000.00. FISCAL IMPACT: Sufficient funds exist in the following accounts: 100-2001-443101-9320 - Electronic Resources - $36,000 100-2001-443101 - Books - $30.000 TOTAL $66,000 PAGE1Q CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) RESOLUTIONS 3.21 RESOLUTION NO. 9661 (C2500.J.1.I) A Resolution of the City Council ofthe City of Orange amending the Master Schedule of Fees and Charges as authorized by Orange Municipal Code Chapter 3.10 pertaining to construction water sales. ACTION: Approyed. 3.22 RESOLUTION NO. 9665 (C2500.J.1.2) A Resolution of the City Council of the City of Orange amending and restating a Deferred Compensation Plan in the form of the ICMA Retirement Corporation Deferred Compensation Plan and Trust. ACTION: Approved. 3.23 RESOLUTION NO. 9666 (C2500.J.1.2) A Resolution of the City Council of the City of Orange amending and restating a qualified retirement plan in the form of the ICMA Retirement Corporation Goyernmental Money Purchase Plan and Trust. ACTION: Approyed. 3.24 RESOLUTION NO. 9667 (C2500.J.1.2) A Resolution of the City Council of the City of Orange amending and restating a Deferred Compensation Plan in the form of the Nationwide Retirement Solutions, Inc. restated and amended deferred compensation plan and trust/custodial document for public employees. ACTION: Approyed. 3.25 RESOLUTION NO. 9669 (C2500.J.1.2) A Resolution of the City Council of the City of Orange amending and restating a deferred compensation plan. ACTION: Approyed. PAGE 11 CITY COUNCIL MINUTES October 22, 2002 3. CONSENT CALENDAR (Continued) MOTION - Alyarez SECOND - Cayecche AYES - Alyarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz Item 3.1 0 was remoyed and heard separately. Mayor pro tern Alvarez abstained on Item 3.8. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR 4. REPORTS FROM MAYOR MURPHY Mayor Murphy reported this was Red Ribbon Week, in conjunction with the School District, to raise awareness of the problems of drugs and to remain drug free. 5. REPORTS FROM COUNCILMEMBERS - None. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None. 7. ADMINISTRATIVE REPORTS TAPE 1260 7.1 Report from the Police Chief pertaining to the allocation of Local Law Enforcement Block Grant (LLEBG) 2002 funds. (C2500.K) SUMMARY: The U.S. Department of Justice has made funds ayailable under the FY 2002 LLEBG Program. Under this Program the City was allocated $108,518. This grant requires a cash match of $12,058, for a total award of $120,576. The City's FY 2002 award date was August 5, 2002, and it has until November 4, 2002 to request these funds for purchases of equipment and technology related to law enforcement. The Board made a non-binding recommendation to allocate LLEBG 2002 funds and the cash match for the purchase of two SWAT vehicles, one for equipment and one for personnel transport. Police Chief Romero proyided a brief report. In response to questions by Mayor pro tern Alyarez, he reported a committee will be formed to determine what equipment is actually needed in the yehic1es, but the Police Department already possesses much of the equipment that will probably be used. MOTION - Murphy SECOND - Cayecche AYES - Alvarez, Mayor Murphy, Cavecche ABSENT - Slater, Coontz ACTION: Appropriate LLEBG 2002 funds - $108,518 to account number 353-4011-471301- 2240 (Federal Police Grants-Police Administration-Equipment-LLEBG 02); Appropriate $12,058 of Federal Asset Forfeiture funds to account number 355-4011-471301-2240 (Federal PAGE 12 CITY COUNCIL MINUTES October 22, 2002 7. ADMINISTRATIVE REPORTS (Continued) Asset Forfeiture-Equipment-LLEBG 02) to satisfy the cash match requirement of the LLEBG 2002 grant; Require Staff to return to City Council with specific expenditure plan prior to expense ofLLEBG 2002 funds. FISCAL IMP ACT: Unreserved fund balance is available in the 2002 LLEBG Fund and Federal Asset Forfeiture Fund. TAPE 1400 7.2 Report from the Economic Development Director regarding Acquisitiou Grant Agreement to Orange Housing Development Corporation for the acquisition of six parcels on West Chapman (Citrus Community Apartments). (A2100.0 AGR-4148) SUMMARY: The Orange Housing Deyelopment Corporation (OHDe) is in escrow to acquire six contiguous properties on West Chapman between Lester and Citrus totaling nearly 1.5 acres. It is the intent of OHDC to develop the site as a multi-family affordable housing project, to be called Citrus Community Apartments. OHDC is requesting $2,242,136 in funding assistance for property acquisition and pre-deyelopment actiyities. (See ORA Minutes Item No. 7.1) Rick Otto, Sr. Housing Manager, reported on the project, presenting pictures of the existing buildings and the proposed project. Council Ouestions Mayor pro tem Alyarez asked about the notification process to the surrounding neighborhoods, how staff determined that the best use of this property was residential, and if there is a time limit for the use of these funds. Mr. Otto explained the specifics of the project will go through the reyiew process and all public hearings will be noticed to the surrounding neighborhood within a 300 foot radius plus any other residents who wish to be notified. Staff will also be talking with the neighborhood about the project. He explained this request is just for the acquisition of the property and that if the proposed deyelopment does not go through, the property will revert back to the City. Staff concluded that commercial or office use would not be financially yiable and that high density residential was the best use of the property. There is a time limit for the use of Federal HOME funds. Councilmember Cavecche noted a rezone of the subject property would be necessary for a multi family housing project and asked if staff is looking at the oyerall area and if the use of these funds locks the City into a housing proj ect. Mr. Otto explained West Chapman, from the railroad tracks to Main Street, is more residential in nature and this type of project would be complimentary to the surrounding neighborhood. If a non-housing project were to be deyeloped, the City would haye to reimburse the housing funds. PAGE 13 CITY COUNCIL MINUTES October 22, 2002 7. ADMINISTRATIVE REPORTS (Continued) Public Comments John Baker Jr., 1051 Arbor Way, stated he had been told this was to be a senior housing project, not a low income housing project; and spoke on the impacts this type of project would haye on the neighborhood. Kimberly Bottomley, 1005 W. Arbor Way, spoke against this property being used for low income housing, but suggested the City should purchase the property and deyelop it in another way. Jerry Mayes, 1042 W. Arbor Way, expressed concern about the impacts a low income housing project would haye on the neighborhood. Tony Escoval, 175 N. Citrus, spoke against low income apartments for this area, and asked for the same consideration and improvements for West Chapman as giyen to East Chapman. Council Comments TAPE 2065 Councilmember Cavecche questioned whether this was an appropriate place for housing because of its proximity to Chapman, although there is a real need for affordable family housing in Orange. She understands the concern of the residents for putting this type of use in the area, and suggested there needs to be a greater overview of the whole area, not just each parcel. She stated this area of Chapman needs attention and suggested there be more emphasis put on this area. She clarified this request is just to allocate money for the purchase of the property and it is important for the City to get involyed in this area. It will also be easier to develop the area with larger parcels such as this. Mayor Murphy stated the purchase of this property is the beginning and a step forward for the City to get inyolved, that this area could use the assistance of the City and the Redevelopment Agency. He noted there will be many reyiews for any project that is proposed for this property. Mayor pro tern Alyarez stated it could be an adyantage for the adjacent neighborhood if the City were the property owner. He encouraged the neighborhood to participate in the deyelopment process and also to contact staff with questions and suggestions; and asked staff to provide addresses of similar projects to the neighbors. He stated he would not approve anything that would have a negative impact on the neighborhood; but supports the City purchasing the property. MOTION - Alyarez SECOND - Cavecche AYES Alyarez., Mayor Murphy, Cavecche ABSENT - Slater, Coontz PAGE 14 ~---,-- CITY COUNCIL MINUTES October 22, 2002 7. ADMINISTRATIVE REPORTS (Continued) Adopted Resolution No. 9668 - A Resolution of the City Council of the City of Orange approving an Acquisition and Pre-development Grant Agreement by and among the City of Orange, the Orange Redevelopment Agency and Orange Housing Deyelopment Corporation regarding property located on West Chapman Ayenue between Lester Street and Citrus Street and making certain findings. 1. Transferred $229,350 from Account No. 317-9660-485100-1210 (prior year HOME Community Housing Deyelopment Organization [CHDO] Funds) and $533,336 from Account No. 317-9660-485100-1250 (prior year HOME Deyeloper Funds) to Account No. 317-9660- 485802-9208 (HOME - Citrus Apartments Acquisition Grant project account) [CITY] 2. Appropriated $204,000 from HOME Developer Funds to Account No. 317-9661-485802- 9208 (HOME - Citrus Apartments Acquisition) for the project. [CITY] 3. Appropriated $119,000 from Federal Rental Rehabilitation Funds to Account No. 316- 9661-485802-9208 (Federal Rental Rehab - Citrus Apartments Acquisition) for the project. [CITY] 4. Transferred $146,251 in Set-aside Funds from Account No. 913-9800-485701-9152 (Esplanade Apartment Project) and $75,238 in Set-aside Funds from Account No. 941-9800- 485702-9151 (Villa Modena Housing Project) to Account No. 941-9800-485802-9208 (Housing Set-aside - Citrus Apartments Acquisition) for the project. [AGENCY] 5. Appropriated $695,261 in Housing Set-aside Funds to Account No. 941-9800-485802- 9208 (Housing Set-aside - Citrus Apartments Acquisition) for the project. [AGENCY] 6. Appropriated $239,700 in Housing Rehabilitation Loan Funds to Account No. 931-9800- 485802-9208 (Housing Rehab - Citrus Apartments Acquisition) for the project. [AGENCY] 8. REPORTS FROM CITY MANAGER - None. 9. LEGAL AFFAIRS - None. 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council recessed at 6:00 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 case) 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 ofthe matters will not be considered in Closed Session. PAGE 15 -I CITY COUNCIL MINUTES October 22, 2002 7:00 P.M. SESSION 12. PUBLIC COMMENTS TAPE 2450 The following people spoke on the Cypress/Lemon/OliYe Street areas. Their concerns included the purchase of properties by Chapman Uniyersity; displacement of homeowners; the need for a master plan from the City and Chapman University; rumors of eminent domain; an increase in pedestrian and yehicle traffic from the Uniyersity; and the need to maintain a single story neighborhood. Madeline Macias, 421 N. Cypress, submitted a map and petition containing approximately 25 names. Vince Rodriguez, 400 N. Citrus, owner of 470 N. Lemon Bea Vega, 486 N. 01iye Mike Bettencourt, 455 N. Cypress Roseanne Rodriquez, 472 N. Lernon Gary Bissonnette, 240 E. Taft, representing his family on Lemon Street Augie Morales, 1822 Deyon, Vista, owner of392 N. Lemon Mayor Murphy noted the City is not inyolved in any way in any real estate transactions between private individuals. Mayor pro tern Alyarez suggested a meeting between the citizens, Chapman University and the City to look at the impacts of the neighborhood; and yolunteered to take the lead in setting up such a meeting after the holidays. Juan Pablo Serrano Nieblas, 224 N. Oliye, a marijuana actiyist, asked for implementation of Proposition 215 in the City of Orange which allows the compassionate use of medical marijuana. 13. PUBLIC HEARINGS TAPE 3245 13.1 MITIGATED NEGATIVE DECLARATION NO. AGREEMENTS - CONSTRUCTION AND OPERATION WELL NO. 27; 2443 N. BATAVIA (NI200.0 NEG 1691-02) 1691-02 AND JOINT OF DOMESTIC WATER Time set for public hearing to consider adoption of Mitigated Negatiye Declaration 1691-02 which eyaluates the potential environmental impacts of the drilling and operation of a new water well and construction of related storm drains; and authorization to negotiate agreements for joint participation in a regional plan to store surplus water and the design, construction and financing of related water facility improyernents. The Community Deyelopment Director reported this is a request for staff to begin negotiations with yarious water agencies to enter into a regional plan to increase the ability to store water within the basin. Enyironmental impacts were eyaluated on this project, and it was determined that with mitigation measures, there would not be a significant impact. PAGE 16 --r CITY COUNCIL MINUTES October 22, 2002 13. PUBLIC HEARINGS (Continued) In response to Council questions, the Public Works Director reported this project is not part of the groundwater replenishment system. The water that would go into the basin is water that is being spread at the present time. In the future, if water is spread in the Kramer Basin area along the Santa Ana River, that water would percolate into the same groundwater basins that are accessed by this well system. But this is after it is percolated, and not directly pumped, and a number of years away. MAYOR MURPHY OPENED THE PUBLIC HEARING Richard Adair, 610 W. Fletcher, was concerned about water rates going up and also the financial impacts this would haye on his business because it runs across his property, and would create a financial burden ifthey haye to giye up property. Richard Peltzer, 333 W. Fletcher, asked for a guarantee that the quality of water will stay the same; and also asked about the Fletcher Basin. Marty Adair, 2390 American Way, spoke on the impacts this may have to her property. Bob Bennyhoff, Orange Park Acres, spoke in support of this well, as there is a State water crisis and this will help the City to prepare for that. Steve Smith, Water Manager, stated there is some confusion between this City project and a reclamation effort that may be going on in the future at the Fletcher Basin. The City project is to construct a new water well to replace an existing well on property the City already owns. It is separated from the Fletcher Basin project by another parcel. The Fletcher Basin is owned by the County Flood Control. The Public Works Director clarified some comments made by the County on this project that have created some confusion. There is an existing drain line that comes off the reservoir site. The environmental document references a need to increase the size of this drain line from 12 to 18 inches. That line is for the purpose of accepting discharge from flushing actiyities during construction of the facility or during start up of it. Also, this project is not intended to deal with flood control or modify in any way the Fletcher Basin. There is another project that is being discussed that would possibly involve use of the Fletcher Basin for recharge or may involve some up sizing of that storm drain that would eliminate the need for the Fletcher Basin as a retarding basin; and there are some issues in connection with that project with respect to easements for the storm drain facility. The Public Works Director clarified this project is a water supply project - to drill a well, and upsize a drain line from 12 to 18 inches. The drain line connects into the box section of the storm drain that is adjacent to the site and does not affect the adjacent properties in any way. MAYOR MURPHY CLOSED THE PUBLIC HEARING TAPE 3925 PAGE 17 I CITY COUNCIL MINUTES October 22, 2002 13. PUBLIC HEARINGS (Continued) The Public Works Director reported the City does meet all water quality standards established by all standard setting agencies; and issues an annual Consumer Confidence Report which indicates the status of the City's water quality. With regard to recharge issues, that is within the jurisdiction of the Orange County Water District, as they are looking for areas to improve recharge capabilities which would allow the County to be less dependent on imported water supplies and develop local water supplies to the maximum extent possible. Orange County is dependent upon imported water, and 25% of the water the County utilizes at the present time is imported water, which will probably go higher because of the depletion of the groundwater basin. This project is intended to address that issue by allowing the storage of more water in the groundwater basin and the ability to access it when needed. He also reiterated there are no storm drain improvements as part of this project. The drain line that is mentioned in the enyironmental document does not carry storm water. It is a discharge line for the well and it is water from the well that goes into that line, not stormwater. It needs to be upsized because there will be greater well capacity and in order to accommodate when discharge is necessary, the pipe needs to be larger than the current 12 inch pipe. Councilmember Cavecche confirmed the storm drain is just for flushing the well, the City is just drilling a deeper well in the same area and the storage of water is in the current water basin and not being put in a larger tan1e She suggested the City keep informed of what the County is doing in the adjacent basin. MOTION - Alyarez SECOND - Murphy AYES - Alyarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz Adopted Mitigated Negatiye Declaration/Mitigation Monitoring Program 1691-02 in accordance with the California Environmental Quality Act and the City's local CEQA Guidelines. MOTION - Alyarez SECOND - Murphy AYES - Alvarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz Authorized City staff to negotiate an agreement with Orange County Water District (OCWD), Municipal Water District of Orange County (MWDOC) and Metropolitan Water District of Southern California (MWD) for the City's participation in a regional plan to store surplus water, the joint operation of the new water well and for the design, construction and financing of new water facilities. 14. PLANNING AND ENVIRONMENT - None. PAGE 18 --,--- CITY COUNCIL MINUTES October 22, 2002 15. ADJOURNMENT MOTION - Cayecche SECOND - Alvarez AYES - Alyarez, Mayor Murphy, Cayecche ABSENT - Slater, Coontz The City Council adjourned at 7:50 p.m. ~""~tdt ~~~ CASSANDRA J THCART, CMC CITY CLERK fr1ifKf!it{v MAYO PAGE 19