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12/10/2002 - Council Minutes - CC Minutes Reg Meeting APPROVED BY THE CITY COUNCIL ON JANUARY 14, 2003 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING December 10, 2002 The City Council of the City of Orange, California convened on December 10, 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 1.1 INVOCATION Given by Pastor Ed Trenner, Grace Brethren Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilmember Joanne Coontz I.3 ROLL CALL PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ABSENT - None 1.4 PRESENTATIONS! ANNOUNCEMENTS! INTRODUCTIONS The following employees received Service Awards: Rick Otto - Economic Development; Ronald Williams - Police (not present); Robert Lewis - Public Works (not present); Norman Glastetter - Fire (not present); Sandra Wayland - Police (not present); Jeny Madrid - Community Services (not present) Mayor Murphy welcomed Councilmember Ambriz to the Council and noted he was sworn in by the Deputy City Clerk on December 4, 2002. Mayor Murphy announced the City Council will adjourn in memory of Frank Joseph Ambriz, father of Councilmember Steve Ambriz. Mayor Murphy thanked the Community Services Department for their efforts in planning the Christmas Tree Lighting Ceremony on Sunday, December 8th. 2. PUBLIC COMMENTS TAPE 170 Tom Schwaubauer, 904 E. Van Bibber, thanked the Community Services Department and City staff for their efforts in planning community events. 3. CONSENT CALENDAR TAPE 200 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 PAGE 1 ,- CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) 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 December 10, 2002 at Orange Civic Center, Main Library at 101 N. Center Street, Police facility at 1107 North Batavia, Shaffer Park, summarized on Time-Warner Communications and available 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 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 November 21, 27, 2002. ACTION: Approved. 3.3 Request approval of City Council Minutes, Regular Meeting, November 12, 2002 (continued from November 26, 2002) and November 26, 2002. Note: Counci1member Ambriz abstained as he was not present at these meetings. ACTION: Approved. 3.4 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. AGREEMENTS 3.5 Award of Professional Services Agreement for the Preparation of Construction Plans and Engineering Calculations for Chapman Avenue Rehabilitation from Loretta Drive to Hewes Street. (A2100.0 AGR-4178) SUMMARY: This agreement authorizes the Consultant to provide field surveying, engineering calculations and prepare construction plans and bid documents for the Chapman Avenue Rehabilitation Project. ACTION: Approved agreement with Kabarra Engineering in an amount not to exceed $86,810.00 and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds are budgeted in the following accounts: 272-5011-483300-3211 (Chapman Ave. Rehab. AHRP 02-03) 550-5011-483300-3211 (Chapman Ave. Rehab. AHRP 02-03) $828,600.00 $696,450.00 PAGE 2 CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) 3.6 Contract with Reliance Standard Life Insurance Company for Employee Life and Long Term Disability Insurances Effective January I, 2003. (Continued from November 26, 2002 Council meeting.) (A2100.0 AGR-4173) SUMMARY: Based on the 2003 Life and Long Term Disability Marketing Report conducted by the City's broker, Mercer Human Resource Consulting, staff is recommending a new 36-month contract with Reliance Standard Insurance Company for employee Life Insurance and Long Term Disability insurance coverage. ACTION: Approved Basic Life, Supplemental Life, Accidental Death and Dismemberment Insurance coverage and Long Term Disability insurance coverage. Authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: The current budget and projected budget for the Fiscal Year 2003- 2004 contain adequate funding to accept the new Reliance Standard Life and Long Term Disability programs. The terms of Reliance Standard Life and Disability contracts include a 36-month contract with a 14% reduction in premiums ($23,137.00), for each year of the contract. The City's current insurance carrier, Standard Life, was not able to match the reduced premium rates or a multi-year contract. APPROPRIATIONS 3.7 Approve fund appropriation for Contract Change Order No. I; Bid No. 001-02, W- 593 - Water Reservoir No. lOA. (A2100.0 AGR-3641) SUMMARY: The appropriation of funds will pay for Contract Change Order No.1 which included minor grading changes, modifying underground pipe alignment and additional electrical work necessary to complete the work at the new water reservoir in the Serrano Heights area. The total of the Contract Change Order is $27,425.45. ACTION: Approved appropriation of $27,425.45 from Water Fund 601 Reserves into Water Capital Project Fund No. 601-8041-484201-8318 - Water Reservoir lOA. FISCAL IMPACT: Appropriation of $27,425.45 from Water Fund 601 Reserves into Water Capital Project Fund No. 601-8041-484201-8318 - Water Reservoir lOA. BIDS 3.8 Request authorization to advertise for bids, Bid No. 023-14; Interior Recoating of Reservoir No.4 (C2500.P.3) SUMMARY: Reservoir No.4 is a 5 million gallon steel water storage tank located in the southeast part of the City. The proposed work entails complete interior surface preparation and recoating of the reservoir. ACTION: Approved. PAGE 3 -Tn CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: Funds are budgeted and available in Account number: 601-8041-484400-8302 Reservoir Recoating $350,000.00 3.9 CLAIMS (C3200.0) The City Attorney recommends that the Orange City Council deny the following Claim(s) for damages: a. Nancy J. Davidson b. Jesus Rodriguez on behalf of Jonathon Rodriguez c. Marlene D. Ybarra d. Valerie Capelleti ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. CONTRACTS 3.10 Mills Act Contract No. MAC-89.0-02, (Historic Property Preservation Agreements). (A2100.0 AGR-4179) 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 totals $37,110. Location: 607 E. Almond Avenue. ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-89.0-02), 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 $162 per year. 3.11 Mills Act Contract No. MAC-90.0-02, (Historic Property Preservation Agreements). (A2100.0 AGR-4180) 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 $51,475. Location: 292 N. Cambridge Street. ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-90.0-02), for PAGE 4 ,------- CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) the preservation, restoration and/or rehabilitation of a qualified historic property III exchange for a reduced property tax assessment. FISCAL IMP ACT: The estimated property tax loss to the city is approximately $195 per year. 3.12 Mills Act Contract No. MAC-91.0-02, (Historic Property Preservation Agreements). (A2100.0 AGR-4181) SUMMARY: A proposal to approve Mills Act Contract for restoration of a 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 $72,125. Location: 232 N. Cleveland Street. ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-91.0-02), for the 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 $199 per year. 3.13 Mills Act Contract No. MAC-92.0-02, (Historic Property Preservation Agreements). (A2100.0 AGR-4182) 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 $67,100. Location: 543 E. Culver Avenue. ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-92.0-02), 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 $316 per year. 3.14 Mills Act Contract No. MAC-93.0-02, (Historic Property Preservation Agreements). (A2100.0 AGR-4183) 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 $90,550. Location: 192 N. Shaffer Street. PAGES CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner, (application No. MAC-93.0-02), 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 $378 per year. 3.15 Award Contract - Bid No. 023-15; Project No. W-619; Furnish and Install Electrical Equipment at Well No. 26. (A2100.0 AGR-4184) SUMMARY: Eight (8) formal bids were received for this project ranging in price from $162,132.00 to $247,929.00. The apparent low bidder is Digital Electronic Services of Upland. The Engineer's Estimate was $195,000.00. ACTION: Awarded contract in the amount of$162,132.00 to Digital Electronic Services of Upland, CA and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funding for this project is budgeted and available in the following account: 601-8011-484101-8118 Well No. 26 Construction $162,132.00 3.16 Award of Contract - Bid No. 023-13; Project No. D-141; Community Development Block Grant (CDBG) - Collins Avenue Storm Drain Improvements from Shaffer Street to Cambridge Street. (A2100.0 AGR-4185) SUMMARY: The bids were opened on November 14, 2002. Fifteen (15) bidders responded to the invitation for bids. The apparent low bidder is Paulus Engineering, Inc. of Anaheim for $357,320.00 ACTION: 1) Appropriated $25,000.00 from unexpended CDBG entitlement funds from Fund 310 to Account No. 310-9645-483400-5333 (Collins Avenue Storm Drain) for contingencies and engineering costs. 2) Awarded the contract in the amount of $357,320.00 to Paulus Engineering, Inc. of Anaheim, CA 92806, and authorize the Mayor and City Clerk to execute on behalf of the City. FISCAL IMP ACT: Funds are budgeted, and will be available upon appropriation in the following account: 310-9645-483400-5333 Comm.Dev. Block Grant (CDBG) $415,000 3.17 Award of Contract - Bid No. 023-17 Miscellaneous Vehicles (A2100.0 AGR-4186) SUMMARY: The award of this contract will provide for the replacement of seven (7) Ford Crown Victoria Police Interceptors and three (3) Ford Expeditions with patrol packages for Bid No. 023-17 to replace current units in the Police Department. ACTION: 1) Awarded a contract to Villa Ford in the amount of $263,439.66 for the purchase of seven (7) Ford Crown Victoria Police Interceptors and three (3) Ford PAGE 6 CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) Expeditions; 2) Authorized the Mayor and City Clerk to execute a contract on behalf of the City; 3) Authorized the City Manager to surplus the replaced vehicles at an auction. FISCAL IMPACT: There are sufficient funds in Account No. 720-5023-472102 Motor Vehicle Replacement. 3.18 Contract Change Order (CCO) No.3 and Final; Bid No. 012-17; Project No. SP- 3375, Taft Branch Library Remodel. (A2100.00 AGR-3913) SUMMARY: Contract Change Order No.3 and Final authorizes payment for extra work at agreed prices. The amount of Contract Change Order No.3 is $38,848.95. ACTION: 1) Appropriated $17,801.37 from unappropriated general fund reserves to account number 725-2001-481105-9918 for the additional construction cost. 2) Approved a Contract Change Order No. 3 and Final in the amount of $38,848.95 to Klassic Engineering and Construction, Inc. for the extra work. FISCAL IMPACT: Funds are budgeted and will be available upon appropriation in the following accounts: 725-2001-481105-9918 $25,939.95 (Taft Library Renovation) 500-2001-481105-9918 $12.909.00 (Taft Library Renovation) Total $38,848.95 3.19 Final Acceptance of Bid 012-51; Installation of Raised Pavement Markers at various locations and authorization to file Notice of Completion with the County Recorder (No staff report reauired). (A2100.0 AGR-4045) SUMMARY: Bid 012-51; Installation of raised pavement markers at various locations. Contractor: Works Striping & Marking Service, Inc. Staff recommends acceptance of improvements. ACTION: Accept public works improvement, authorize release of American Motorists Insurance Company of Illinois Bond No. 3SM89016900 in the amount of $5,000.00, and authorize the Mayor and City Clerk to execute the Notice of Completion. FISCAL IMPACT: None. LOANS 3.20 City of Orange Deferred Payment Loan (DPL) Program (1432 East Palm Avenue). (A2100.0 AGR-2799) SUMMARY: In 1987, Luella Anderson (the homeowner), received a Two Percent DPL in the amount of$16,313.00 through the City's Home Improvement Program. Additional property improvements in the amount of$20,124.50 are now needed. The current DPL PAGE 7 T-- CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) limit is $25,000. Staff is asking Council to approve a modified loan amount of $36,437.50. The original loan was due on October 13, 2002. The modified loan will continue to accrue simple interest at two percent per year and be due and payable upon the sale or transfer of the property. ACTION: I) Authorized staff to exceed the $25,000 DPL limit by $11,437.50, approve the homeowner's modified DPL loan in the amount of $36,437.50, and prepare all necessary loan documents. 2) Authorized the City Manager to execute all necessary documents on behalf of the City. FISCAL IMPACT: Sufficient funds are appropriated for this purpose III Account Number 315-9652-485701-1298 (Deferred Payment Loan Account). RESOLUTIONS 3.21 RESOLUTION NO. 9681 (A2100.0 AGR-1147.C) A Resolution of the City Council of the City of Orange approving the Second Amended and Restated Joint Exercise of Powers Agreement creating the FoothilVEastern Transportation Corridor Agency. (Continued from November 26, 2002) ACTION: Approve. 3.22 RESOLUTION NO. 9685 (A2500.0 TSIP) A Resolution of the City Council of the City of Orange approving the submittal of Transportation Improvement Projects to the Orange County Transportation Authority for funding under the Combined Transportation Funding Program. ACTION: Approve. 3.23 RESOLUTION NO. 9686 (C2300.E) A Resolution of the City Council of the City of Orange concerning the status of the Circulation Element for the City of Orange. ACTION: Approve. 3.24 RESOLUTION NO. 9688 (C2500.M.16.1) A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 2002-05 adjusting lot lines of certain real property situated at 230 South Main Street in the City of Orange, County of Orange, State ofCalifomia. PAGE 8 CITY COUNCIL MINUTES December 10, 2002 3. CONSENT CALENDAR (Continued) Owners: VRSJ, LLC, a California Limited Liability Company ACTION: Approve. 3.25 RESOLUTION NO. 9689 (A2100.0 AGR-4187) A Resolution of the City Council of the City of Orange approving Joint Powers Agreement for the Integrated Law and Justice Agency for Orange County. ACTION: Continued to January 14, 2003. MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Councilmember Ambriz abstained on Item 3.3. Item 3.25 was continued to January 14, 2003. 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 - None. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None. 7. ADMINISTRATIVE REPORTS TAPE 240 7.1 Report by Alice Angus, Director of Community Development regarding Consulting Services Agreement with Jones & Stokes Associates, Inc. to provide consulting services associated with preparing an Environmental Impact Report for development proposals for Santiago Hills II and East Orange. (This item was continued from November 26, 2002 Council meeting.) (A2100.0 AGR-4171) SUMMARY: Staff expects that The Irvine Company will soon be submitting applications associated with development proposals for Santiago Hills II and East Orange. To comply with the California Environmental Quality Act, it is expected that an Environmental Impact Report will need to be prepared to assess the impact of these proposals on the environment. In such cases, an environmental consultant is usually retained to perform the work required. Discussion The Community Development Director reviewed the process involved in looking for qualified consultants. Four final consultants were interviewed - Michael Brandman and Associates, PCR, PAGE 9 ~_ _, __ ____n_____ _ ~________ CITY COUNCIL MINUTES December 10, 2002 7. ADMINISTRATIVE REPORTS (Continued) EDA W and Jones & Stokes; and staff is recommending the selection of Jones & Stokes to provide consulting services associated with preparing the Environmental Impact Report for the East Orange development. Mayor pro tern Alvarez asked why the review committee did not consist of department heads, and a representative of the City Manager's Department and why there was not more oversight in reviewing the proposals. He noted the RFP was too general, because in reviewing the four proposals, there was a wide range of proposed costs, from approximately $500,000 to over $1,000,000. There was also a wide range in the proposed scope of work as well as the educational background of the project managers from the various companies. Time lines were included in only some of the proposals; and he was concerned about future change orders and increased costs since the scope of work was so general. The Community Development Director reported there is an ongoing team of department heads, along with the City's project manager, who meet on a regular basis on the project. The City Manager and Assistant City Manager are also briefed on a regular basis. The Community Development Director also agreed there is a wide range in costs from the four proposals, but the scope of the project has not been fully defined and each of the consultants approached the project differently in looking at both the program level and project levels. It was staffs recommendation that Jones & Stokes did the best job in differentiating between the two levels. She also agreed there is a wide range in the scope of work from each of the four consultants. The scope of work will change and they were looking for the best qualified firm to work with to help define this scope of work. It is staffs intention to come back to the Council, once the applications are in, with a more detailed scope of work. Stan Soo Hoo, Planning Manager, stated it is common practice to select a consultant first and then refine the costs and aspects of the work. The focus was to select the most qualified environmental firm and project manager. Staff is very comfortable with the project manage from Jones & Stokes and looked more at the various projects and background of the firm than at educational backgrounds. Mayor pro tern Alvarez stated he had hoped the final costs in the proposal would be close, but there is approximately $600,000 difference between the proposals; and each of the consultants seemed to have a different perspective. He stated the City is not getting a clear picture from the consultants and that maybe the City should wait for The Irvine Company to come forward with the applications. Mr. Soo Hoo stated this is a different type of proposal, where things can not be calculated. There is not a specific project and applications have not been submitted. Therefore, the information is not available for the consultant to submit a precise price. The consultant will help fine tune the scope of work. PAGE 10 CITY COUNCIL MINUTES December 10,2002 3. CONSENT CALENDAR (Continued) Mayor Murphy noted The Irvine Company will be paying for the consultant; the City will be expending stafftime, but not dollars. The City Manager stated the proposal was designed to be general and the proposals vary based on each of the consultant's perception on how to deal with that lack of specific scope of work. Each of the consultants had a little different approach, and the quality of the consultant was paramount. He noted he has been meeting with staff and The Irvine Company on a regular basis. However, The Irvine Company was not involved in this decision. Councilmember Cavecche stated that all four finalists have experience, but it seems the reason Jones & Stokes was chosen was because of the individuals involved and how they can present the project to the community. She asked for a presentation from Jones & Stokes. Councilmember Coontz noted the environmental issues have changed a great degree since the first Irvine Company development. She stated it may be helpful to know what exactly the City is looking or, what the land use direction is and what The Irvine Company is asking for. The developments are tied together, especially with regard to traffic and what happens to the City versus what happens further on the other side of the Corridor. The City needs to look to the future so there is not a cumulative affect on the City. She asked for an explanation on how this scope is different than what the City has had before. Mr. Soo Hoo explained they expect to see a total picture of all of East Orange, not fragments, and expect tentative maps for all of Santiago Hills II and then a General Plan Amendment for the balance of the East Orange planning area. Councilmember Coontz asked if that will be more specific than what General Plans usually are? Mr. Soo Hoo stated they will be getting General Plan level information and also some additional specific information, but don't know if that will be available for the entire East Orange area. This is part of the ambiguity of projecting the project because even The Irvine Company probably doesn't know the exact level of specificity for all of East Orange at this point. The City Attorney stated that under state law, when hiring a consultant, qualifications need to be the focus, and price should be one of the last factors considered. It is their intent to choose a firm that is best qualified, and once the scope is narrowed down, then there will be a better idea of the pnce. David Freytag, Principal with Jones & Stokes, provided a background of their firm and their team of specialists. Deanna Evans, Jones & Stokes, stated she would be the Project Manager for this project, and provided a summary of her experience dealing with controversial projects. PAGE 11 CITY COUNCIL MINUTES December 10, 2002 7. ADMINISTRATIVE REPORTS (Continued) Mayor pro tern Alvarez asked about disclosures of past proj ects and if Jones & Stokes had been previously hired by The Irvine Company. Ms. Evans stated they have done work for The Irvine Company, which was disclosed in their proposal. Councilmember Coontz noted that most companies have worked for The Irvine Company at one time or another. Councilmember Cavecche stated she had reviewed the proposals and the RFP, noting the RFP outlines strongly what the consultants are not allowed to do. The consultants will not have access to The Irvine Company and are to deal only with the City. She stated the Council is nitpicking because they are very passionate about this area. It is the last large area the City will be dealing with and they want to do everything right. The Council wants their concerns addressed and this level of concern will be there throughout the project. She stated she was not real impressed with the proposal from Jones & Stokes, but they did get strong recommendations from other companies she spoke with. Any of the four firms could do this work, but she was okay with Jones & Stokes. They are technically very strong and costs can be detailed later. She also asked for detailed briefings along the process. Mayor Murphy stated this project will be a lasting imprint on this Council and they want to do it right and have it heavily scrutinized. He wants to be able to look back and have this project stand the test of time. He stated he was comfortable going forward based on the information presented and that when specifics are brought back the Council can make changes at that time. Weekly reviews will also be helpful. Councilmember Coontz stated she appreciated seeing the proposals and was impressed with the background of Jones & Stokes. She suggested in the future that if the Council has questions, they should be written down ahead of time so precise answers are available before the Council meetings. She complimented Mr. Soo Hoo and staff for their efforts in this project. Mayor pro tern Alvarez stated there needs to be a higher level of review as the City moves forward in East Orange and would still like to see more accountability and review. Councilmember Ambriz commended Jones & Stokes on their proposal. He researched their firm throughout the County, noting many people spoke very highly of them. He also thanked staff for their efforts in this process. MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Mayor Murphy, Coontz, Cavecche NOES - Alvarez ACTION: Approved Consulting Service Agreement with Jones & Stokes in the amount of $497,068.00 and authorized the Mayor and City Clerk to execute said Agreement. PAGE 12 CITY COUNCIL MINUTES December 10, 2002 7. ADMINISTRATIVE REPORTS (Continued) TAPE 2265 7.2 Report by David DeBerry, City Attorney regarding the proposed Cellular Antennas at El Modena Park. (This item was continued from the November 26, 2002 Council meeting.) (A21 00.0 AGR-4149) SUMMARY: Review and consider prior Council authorization (October 22, 2002 Council meeting) to execute cellular antenna agreements with Sprint PCS and Cingular Wireless. Mayor pro tern Alvarez asked that the Council be given information on these agreements prior to the next Council meeting. The City Attorney stated all revised language in the agreements will be highlighted; and the Cellular companies have not indicated there will be any problem in continuing this. MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Continued to January 14,2003 TAPE 2330 7.3 Report from the Economic Development Director regarding the Annual Report of the Orange Redevelopment Agency for Fiscal Year 2001-2002, and authorization to transmit the report to the Controller of the State of California. (R3500.0) SUMMARY: The Annual Report describes the activities of the Redevelopment Agency during Fiscal Year 2001-2002, and includes a fiscal statement and independent audit report relating to the Agency's finances. (See ORA Minutes Item No. 7.1) Mayor pro tern Alvarez asked for clarification on several items in the Comprehensive Annual Financial Report. The Economic Development Director stated this Financial Report document was prepared to meet State law requirements. She acknowledged this particular document is difficult to understand and there are other reports, which she would be happy to share with the Council, which are easier to understand and more indicative of the real financial picture of the Agency. She also acknowledged Jim Reichert, Sf. Project Manager, for his work on this Annual Report. PAGE 13 CITY COUNCIL MINUTES December 10, 2002 7. ADMINISTRATIVE REPORTS (Continued) RESOLUTION NO. 9676 A Resolution of the City Council of the City of Orange approving the Annual Report of the Orange Redevelopment Agency for Fiscal Year 2001-2002 and authorizing and directing its transmittal to the Controller of the State ofCalifomia. MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Adopted Resolution No. 9676 8. REPORTS FROM CITY MANAGER TAPE 2570 8.1 Presentation of the First Quarter FY 2002-03 Budget Report which includes the period July 1, 2002 through September 30, 2002. (C2500.E.4) SUMMARY: The First 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. The City Manager provided a brief report, stating he hopes to have a plan for future budget actions to the Council by the end of January 2003. Mayor Murphy noted the City has acted very fiscally responsible and, recognizing the challenges ahead, will continue to do so. Councilmember Ambriz asked about CDBG applications and getting notices out to more potential applicants. Staff indicated they will look at other ways to get more notices out. MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Received and Filed. 9. LEGAL AFFAIRS TAPE 2890 9.1 ORDINANCE NO. 12-02 (FIRST READING) (ZI500.0 ZCG-1213-02) An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code and approving the reclassification of property located at 411 to 421 South Batavia Street and 802 West Culver Avenue from R-3 and R-2 to OP. PAGE 14 CITY COUNCIL MINUTES December 10, 2002 9. LEGAL AFFAIRS (Continued) Zone Change 1213-02 Applicant: Trico Realty MOTION - Coontz SECOND - Cavecche AYES - Ambriz, Alvarez, Coontz, Cavecche ABSTAIN - Mayor Murphy Moved that Ordinance No. 12-02 be read by title only and same was set for second reading by the preceding vote. 9.2 RESOLUTION NO. 9682 A Resolution of the City Council of the City of Orange approving Mitigated Negative Declaration No. 1695, General Plan Amendment 2002-01, Major Site Plan Review No. 227, Conditional Use Permit 2413 and Variance 2109 to allow medical offices and the relocation of a residential structure on a 2.25 acre site addressed as 411 to 421 S. Batavia Street and 802 W. Culver Avenue within the Old Towne Historic District - Sycamore Plaza Medical Offices. Applicant: Mike Harrison, Trico Realty Councilmember Cavecche asked if Condition No. 45, regarding the height of the roof top equipment, was detailed enough, as she was more specific in her motion during the public hearing. The City Attorney stated the condition can be modified to state, "does not exceed the minimum height of the parapet ofthe building." Councilmember Coontz asked if the City will be looking at rooftop equipment in the future, as it has not been clear if this was happening or not. MOTION - Ambriz SECOND - Cavecche AYES - Ambriz, Alvarez, Coontz, Cavecche ABSTAIN - Mayor Murphy Moved to adopt Resolution No. 9682, with the amended Condition No. 45 - Applicant shall limit the height of all roof top equipment to ensure it does not exceed the minimum height of the parapet of the building and screen all equipment in accordance with OMC Section 17.18.180. 9.3 ORDINANCE NO. 17-02 (FIRST READING) (A2500.0 Fire, Uniform Code) An Ordinance of the City Council of the City of Orange amending Title 15 of the Orange Municipal Code to adopt the 2001 California Fire Code and other amendments. PAGE 15 1- CITY COUNCIL MINUTES December 10, 2002 9. LEGAL AFFAIRS (Continued) MOTION - Coontz SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved that 1) Ordinance No. 17-02 be read by title only and same was set for second reading by the preceding vote; and 2) Set January 14, 2003 at 7:00 p.m. as the date for a public hearing on adoption of said Ordinance and direct the City Clerk to publish notice ofthe public hearing. 9.4 ORDINANCE NO. 18-02 (FIRST READING) (A2500.0 Public Works, Specifications) An Ordinance of the City Council of the City of Orange amending Chapter 12.02 of the Orange Municipal Code to adopt the 2003 Edition of the "Standard Specifications for Public Works Construction" . MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved that 1) Ordinance No. 18-02 be read by title only and same was set for second reading by the preceding vote; and 2) Set January 14, 2003 at 7:00 p.m. as the date for a public hearing on adoption of said Ordinance and direct the City Clerk to publish notice of the public hearing once a week for two successive weeks in accordance with Government Code Sections 50022.3 and 50022.6. 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10.a RECESS TO THE MEETING OF THE ORANGE INDUSTRIAL DEVELOPMENT AUTHORITY 11. RECESS TO CLOSED SESSION The City Council recessed at 6:20 p.m. to a Closed Session for the following purposes: a. Conference with Legal Counsel-Anticipated Litigation - Significant exposure to litigation pursuant to Government Code Section 54956.9 Two Potential cases. b. Conference with Legal Counsel pursuant to Government Code Section 54956.9(a) - existing litigation: 1) City of Orange v. Tosco Corporation, Orange County Superior Court Case No. 01CC15153. c. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session. PAGE 16 CITY COUNCIL MINUTES December 10, 2002 7:00 P.M. SESSION 12. PUBLIC COMMENTS TAPE 3200 The following people spoke on the noise and traffic problems on East Chapman Avenue. Their concerns included the need for a sound wall; asking for the results of the Noise Study; for a meeting with staff and residents to interpret the results of the Noise Study; to plan the next course of action; and the need for information on the timeline and the process. . Tom Anderson, address on file . Kathy Crair, Pheasant Run homeowner . David Baia, Pheasant Run homeowner . Marita Liebesman, Pheasant Run Homeowners Association Board member . Bobbie Bloecher, address on file 13. PUBLIC HEARINGS TAPE 3740 13.1 APPEAL NO. 488-02 - HANSON AGGREGATES (A4000.0 APP 488-02) Time set for public hearing to consider an Appeal of the Planning Commission's determination that a concrete recycling facility is not a permitted land use on property zoned SG (Sand-Gravel) upon property 6.40 acres in size located on the north side of Santiago Canyon Road midway between Jamestown Way and Orange Park Boulevard (site address is 4621 E. Santiago Canyon Road). Note: Letter dated December 3, 2002 received from the Applicant requesting a continuance of the public hearing to January 2003. Mr. Barry Ross, representing the Appellant, stated his plans had changed and he was able to attend the Council meeting, but still asked for a continuance on the hearing in order to meet with the surrounding neighbors to address their concerns. The Council indicated that since the Appellant was represented at the meeting, they would like to proceed with the hearing. The Community Development Director reported it was determined by staff, and then the Planning Commission, that the use in question, a concrete recycling operation, is not a permitted use within the Sand and Gravel zone. If the Council determines that it is a permitted use, then concerns with the operation of the facility would need to be addressed. Council questions Councilmember Coontz asked what would happen if the Council determines it IS not an appropriate use. PAGE 17 T -- CITY COUNCIL MINUTES December 10, 2002 13. PUBLIC HEARINGS (Continued) The Community Development Director stated if the decision is upheld that it is not a permitted use, then a Code Enforcement procedure would be initiated and the applicant given time to clear the site of the operation. Councilmember Coontz asked about the time period for clearing the operation and if there would be any monitoring in terms of dust and noise. The Community Development Director stated a Code Enforcement procedure would take approximately 30 to 60 days, and if the material were removed, there would be monitoring of noise and truck hauling operations. In response to questions by Mayor pro tern Alvarez, the Community Development Director stated there are no permits on the site for this particular operation. Applicant Mr. Barry Ross, representing Hanson Aggregates West, 1851 E. First Street, #1100, Santa Ana, read and submitted a letter outlining three main issues - a conflict between the Zoning Code and the General Plan; inverse condemnation; and mistakes in the staff report. He stated Hanson Aggregates is agreeable to a Conditional Use Permit for the use with reasonable conditions. MAYOR MURPHY OPENED THE PUBLIC HEARING Mr. Tom Davis, 9672 Brynmar, Villa Park, Environmental Consultant representing Hanson Aggregates, spoke in support of the operation, stating that in the City's Sand and Gravel code it states that material excavated can only be excavated where it is deposited. He did not see any correlation from this statement whereby that can be used as a limiting factor as to what can be done on the piece of property and stated this statement had been taken out of context. The following people spoke in opposition to the Appeal. Their comments included that it is not a legal permitted operation according to staff analysis; it is not a compatible use to the surrounding residential properties; truck, dust and noise problems; the need for the City to be more proactive in enforcing the zoning code; and the need for enforcement of state law in terms of complying with the Surface Mining and Reclamation Act. . Shirley Grindle, address on file. . J an Koepke, 20162 Santiago Canyon Road . Brent Schultz, 6048 E. Teton . David Piper, 6705 E. Oak Lane . James Obermayer, 6219 Shenandoah . Mark Moore, 6507 E. Sycamore Glen MAYOR MURPHY CLOSED THE PUBLIC HEARING PAGE 18 CITY COUNCIL MINUTES December 10, 2002 13. PUBLIC HEARINGS (Continued) Mr. Davis compared the City and the County Sand and Gravel Code, stating this use existed prior to being annexed into the City. Council Comments In response to Council questions, the City Attorney stated he had just received a legal brief right before the meeting and it was difficult to address all the new issues that were raised. The City Attorney stated the Council needs to separate the impacts of the project from whether or not it is a legal use. There needs to be a determination if the use is legal or not; and if it is legal, then the impacts need to be addressed pursuant to the Zoning Code. To address the contentions that were made, the City Attorney was not convinced there is a conflict between the General Plan and the Zoning Code. The intent is that the sand and gravel operation will continue for a specified time. Once that operation ceases, the land will be redeveloped and put to another use. What has occurred here is that the sand and gravel operation has ceased, and certainly the City's zoning code contemplates that the owner of the property would come back and seek some other type of development potential once that use has ceased. Also, the City Attorney did not think the City could be held liable for inverse condemnation. If the City were to go to court over this, and the City lost the case, in all likelihood, the use would not stop until such time that a court determined that the use is illegal, so there would be no taking in that regard. A taking is based on whether or not there is a property right that exists in the first place. If there is a property right, you have a legal use and you have obtained a property right. However, if the use is illegal, there is no property right so there can be no taking of an illegal use. The City Attorney stated he would like to explore the statement made as to whether or not Hanson Aggregates has obtained some legal right to use that property. The question arises if the City issued any permits for that type of use. Even if the use were in violation of the Code, the law states that if the City issues a permit, and a developer, in good faith, relies on that permit and incurs costs in good faith, then it becomes a legal non-conforming use and they do obtain a property right. The contention made here, which the City Attorney could not address at this time, is that under the County's code, the operation was a legal use. If that operation was in existence at the time the property was annexed to the City, and it was legal under the County's zoning code at the time, Hanson Aggregates may have an argument that they are entitled to continue that use. He did not know the history of when the property was annexed and has not had an opportunity to review the County's ordinance. The City Attorney clarified that he was referring to the existing recycling operation and if it were in place when this property was annexed, and at the time of annexation, if it was a legal use under the County ordinance. PAGE 19 r--- CITY COUNCIL MINUTES December 10, 2002 13. PUBLIC HEARINGS (Continued) The Council discussed continuing this item to allow the City Attorney time to investigate this item further. MOTION - Murphy SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved to continue to January 14,2003 at 7:00 p.m. TAPE 6480 13.2 ISSUANCE OF MULTIFAMILY HOUSING REVENUE REFUNDING BONDS- THE KNOLLS APARTMENTS (A2100.0 AGR-2467.0.2) Time set for public hearing to consider the issuance by the California Statewide Communities Development Authority of multifamily housing revenue refunding bonds for the purpose of refinancing the acquisition and rehabilitation of a multi family housing rental facility commonly known as The Knolls (Villa Santiago) Apartments, located at 3138 E. Maple. Rick Otto, Sr. Housing Manager, provided a briefreport. The Council discussed how this has been a challenging project from the beginning and how it has been a real success story. It has turned into a beautiful project that all the neighbors are happy with, and the Council wants to continue with the positive aspects of it. MAYOR MURPHY OPENED THE PUBLIC HEARING THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING RESOLUTION NO. 9684. A Resolution of the City Council of the City of Orange approving the issuance by the California Statewide Communities Development Authority of multifamily housing revenue refunding bonds for the purpose of refinancing the acquisition and rehabilitation of a multifamily housing rental facility commonly known as the Knolls Apartments. MOTION - Murphy SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved to adopt Resolution No. 9684. PAGE 20 CITY COUNCIL MINUTES December 10, 2002 13. PUBLIC HEARINGS (Continued) TAPE 6480 13.3 ORDINANCE NO. 16-02 - PERMITTED USES WITHIN THE RECREATION OPEN SPACE ZONING DISTRICT. (A2500.0 Recreation Open Space) Time set for public hearing to consider adoption of Ordinance No. 16-02, amending section 17.22.030 of the Orange Municipal Code to allow public parks and athletic fields as permitted uses within the Recreation Open Space (RO) zoning district. The Community Development Director provided a brief report. MAYOR MURPHY OPENED THE PUBLIC HEARING THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING MOTION - Alvarez SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved to find Ordinance No. 16-02 categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15305. ORDINANCE NO. 16-02 (FIRST READING) An Ordinance of the City Council of the City of Orange amending Section 17.22.030 of the Orange Municipal Code to allow public parks and athletic fields as permitted uses within the Recreation Open Space (RO) Zoning District. MOTION - Alvarez SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved that Ordinance No. 16-02 be read by title only and same was set for second reading by the preceding vote. 14. PLANNING AND ENVIRONMENT - None. PAGE 21 __n --r---- CITY COUNCIL MINUTES December 10, 2002 15. ADJOURNMENT MOTION - Alvarez SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche The City Council adjourned at 8:30 p.m. in memory of Frank Joseph Ambriz. The Regular City Council meeting of December 24, 2002 will be cancelled. The next regular City Council meeting will be January 14,2003. ~#~"...~~ (!~~~ /e'd CASSANDRA J. HeART, CMC CITY CLERK 1t1~fr}j1HY MAYOR PAGE 22