5/27/2003 - Council Minutes - CC Minutes Reg Meeting
APPROVED BY THE CITY COUNCIL ON JUNE 10,2003
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING May 27,2003
The City Council of the City of Orange, California convened on May 27, 2003 at 4:30 p.m. in a
Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 INVOCATION
Given by Reverend Ginny Erwin, Trinity Episcopal Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Alvarez
1.3 ROLL CALL
PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ABSENT - None (Councilmember Alvarez left the meeting at 8:30 p.m.)
1.4 PRESENTATlONS/ ANNOUNCEMENTS/ INTRODUCTIONS
The Council wished Mayor pro tern Cavecche a Happy Birthday.
The following employees received Employee Recognition Awards
Kelly Melugin - Finance; Barbara Messick - City Manager; Tom Thomas - Police (not
present); Gary Nelson - Police (not present); Dale Eggleston - Fire; Jack Thomas -
Fire (not present); Bill Mertz - Water (not present)
Mayor's Achievement Award was presented to Victoria Campbell, Library Assistant at
the Taft Branch Library, as recipient of a scholarship from the San Jose State
University's graduate School of Library and Information Science for 2002-03.
Proclamation honoring "A Better Hearing and Speech Month" for the month of May was
presented to Mary Jo Hooper, Executive Director of the Providence Speech and Hearing
Center.
Mayor Murphy announced the City had received correspondence from the Director of
Kinesiology and Athletics at Witworth College acknowledging the improvements to the
playing fields at Hart Park.
2. PUBLIC COMMENTS - None.
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CITY COUNCIL MINUTES
May 27, 2003
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 27, 2003 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 May 1, 8, 2003.
ACTION:
Approved.
3.3 Request approval of City Council Minutes, Regular Meeting of May 13, 2003.
ACTION:
Continued to June 10,2003.
3.4 Consideration to waive 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 April 30, 2003.
ACTION:
Received and Filed.
AGREEMENTS
3.6 Settlement Agreement between City of Orange and Level 3 Communications, LLC.
SUMMARY: In October 2000, an Agreement was entered between the City of Orange
and Level 3 Communications, LLC. The Agreement called for Level 3 to install a fiber
optic conduit for the City along Tustin Street. The City agreed to pay for the cost of the
material in the amount of $61,510. Due to various financial situations, Level 3 failed to
complete the agreed work, and failed to convey the conduit and fiber to the City. As a
result, Level 3 now agrees to dedicate the incomplete work to the City at no cost. A
Settlement Agreement is presented herewith for the approval of the City Council.
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3. CONSENT CALENDAR (Continued)
ACTION: Approved the Settlement Agreement and authorized the Mayor and the City
Clerk to execute on behalf of the City.
FISCAL IMP ACT: A cost saving to the City in the amount of $21 ,935 can be realized.
3.7 Award of Environmental Consultant Services Agreement to SCS Engineers for the
former Union Pacific Railroad Property Environmental Site Assessment (Phase II)
and remediation plans and specifications.
SUMMARY: It is recommended that the City approve an agreement with SCS Engineers
in an amount not to exceed $63,500. This agreement authorizes the Consultant to
perform field sampling and testing to prepare an Environmental Site Assessment (Phase
II) and remediation plans and specifications. This project is funded by a grant from the
Environmental Protection Agency via the Brownfield's Economic Redevelopment
Initiative.
ACTION: Approved an agreement with SCS Engineers in an amount not to exceed
$63,500.00 and authorized the Mayor and the City Clerk to execute on behalf of the City.
FISCAL IMPACT: Funds are budgeted in the Capital Improvement Program and
available in the following account:
510-7021-485100-0147 $127,794.91 Railroad Property Geotechnical Study
3.8 Approval of plans and specifications for the ultimate widening of Glassell Bridge at
the Santa Ana River in connection with the City of Orange bridge barrier rail
replacement project (SP-3240).
SUMMARY: Use of Orange County Flood Control District's Santa Ana River
Environmental Enhancement Fund (SAREEF) requires local agency approval of the plans
and specifications prior to award of the construction contract.
ACTION: Approved the plans and specifications for the construction of Glassell Street
Bridge Widening over the Santa Ana River.
FISCAL IMPACT: No fiscal impact. Funds have been previously appropriated for the
project.
3.9 Agreement between the County of Orange and the City of Orange for Provision of
Gang Prevention and Suppression Services.
SUMMARY: Since 1991, the City of Orange and the County of Orange have entered into
yearly agreements that have provided the City with the services of a full-time Probation
Officer specializing in gang prevention and suppression. The Probation Officer works in
conjunction with the Police Department's Gang Unit to provide supervision and
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3. CONSENT CALENDAR (Continued)
enforcement of court orders for minors and adults on probation under the existing policy
of the Orange County Probation Department and Superior Court. The proposed
Agreement is for the period July 1, 2003 through June 30, 2004.
NOTE: Councilmember Ambriz abstained on this item due to an employment conflict.
ACTION: Approved the Agreement between the County of Orange and the City of
Orange for Provision of Gang Prevention and Suppression Services in the amount of
$97,293; and authorized the Mayor and the City Clerk to execute the Agreement on
behalf of the City.
FISCAL IMPACT: There are sufficient funds budgeted for Fiscal Year 2003-2004 in
account number 100-4032-426700 (Gangs-Other Professional & Consulting Services).
3.10 Second Amendment to Consultant Services Agreement with Bender Engineering,
Inc. for Maintstar software support for City's Maintenance Management System.
SUMMARY: The City purchased Maintstar, a computer software program for the City's
Maintenance Management System (MMS) to plan, organize, analyze and improve
maintenance operations in the Public Works and Community Services Departments. The
initial purchase included various software components, data conversion, training and
software support through September, 2002. The proposed amendment to the Consultant
Services Agreement provides for annual support from October 2002 through June 2003
for software upgrades and technical support.
ACTION: Approved the Second Amendment to the Consultant Services Agreement with
Bender Engineering, Inc. in the amount of$18,052.75 and authorized the Mayor and City
Clerk to execute on behalf of the City.
FISCAL IMPACT: Funds in the amount of$18,052.75 are available in account numbers
100-5001-426700 ($12,752.75) and 100-5011-426700 ($5,300) - Professional Services.
APPROPRIATIONS
3.11 Appropriation of funds received from Metro Cities Fire Authority (Member
Specific Account) (Continued from May 13, 2003 Council meeting.)
SUMMARY: Request an appropriation of funds received by Metro Cities from the
Member Specific account.
ACTION: Approved request for appropriation of funds as follows: 100-3021-427800-
2400 (Metro Net Communications) corrected to $64.334.37
FISCAL IMPACT: None. The City of Orange received a check for $83,881.27 from
Metro Cities on January 28,2003 to close out the Member Specific Account.
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3. CONSENT CALENDAR (Continued)
3.12 CLAIMS
SUMMARY: The following claim(s) have been received and investigated by the City
Attorney's Office and/or the Risk Manager. After a thorough investigation with the
involved departments, it is the recommendation of the City Attorney's Office that the
claim(s) be denied.
a. Liana Cronin
b. Thomas Edward Finn
c. Carolyn Flippen for Danielle Dymond
d. Phil Glasgow
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster
CONTRACTS
3.13 Amendment No.2 to two flood control system improvements Contracts between the
City of Orange and the Orange County Sanitation District (OCSD) under the
Cooperative Projects Program.
SUMMARY: Amendment No.2 extends the term of the original contracts in order to
allow the City to satisfy all terms and conditions of the original contracts.
ACTION: Approved Amendment No.2 to the contracts between the City of Orange and
the Orange County Sanitation District and authorized the Mayor and City Clerk to
execute the Amendments on behalf of the City.
FISCAL IMP ACT: None.
3.14 Award of Contract - Bid No. 023-29; Project No. D-138; Orange County Sanitation
District (OCSD) Cooperative Project - Hartman Street/Fletcher Avenue Storm
Drain Improvements from Hartman Street to Channel No.5 at Fletcher Avenue.
SUMMARY: The bids were opened on April 10, 2003. Fifteen (15) bidders responded to
the invitation for bids. The apparent low bidder is Mladen Grbavac Construction of
Arcadia for $495,290.00. The Engineer's Estimate is $577,273.00, which is 16.55%
higher than the low bid.
ACTION: 1) Awarded the contract in the amount of $495,290.00 to Mladen Grbavac
Construction and authorized the Mayor and City Clerk to execute on behalf of the City.
2) Appropriated $90,000.00 to Account No. 550-5011-483300-5339 and amended the
revenue budget Account No. 550-5011-264500-5339 to reflect Orange County Flood
Control District contribution towards project construction costs.
FISCAL IMPACT: Funds are budgeted and will be available upon appropriation in the
following Capital Improvement Program accounts:
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3. CONSENT CALENDAR (Continued)
Hartman StreetIFletcher Avenue Storm Drain Improvements (D-138):
530-5011-483300-5339
530-5011-483400-5339
550-5011-483300-5339
Drainage Districts
Drainage Districts
OCSD & OCFCD Reimbursable
Total Funds
$ 80,000
$ 202,000
$ 389.000
$ 671,000
3.15 Award of Contract - Bid No. 023-36; Project Lundquist Lead Based Paint Removal
SUMMARY: City Council approval is required to complete the final phase of the
Lundquist rehabilitation project to remove exterior lead based paint and paint the
residence at 133 S. Shaffer Street. Upon completion and inspection of the lead based
work by the contractor the job will be turned over to the owner to complete final painting
of the residence. The City agreed to pay for this work as part of a settlement agreement
entered into in 2000.
ACTION: 1) Awarded a contract in the amount of $36,784 to Total Environmental
Industries Incorporated, 11040 Rose Avenue, Fontana, CA 92337, and authorized the
Mayor and the City Clerk to execute on behalf of the City; and 2) Approved an additional
not to exceed amount of $15,000 to resolve all City obligations under the settlement
agreement with Lundquist.
FISCAL IMPACT: Funds are available in the following account:
740-1412-433100 $51,784 (Liability Claims Paid)
3.16 Award of Public Projects Contract - Bid No. 023-34, The Asphalt Replacement at
various locations for fiscal year 2003-04
SUMMARY: The bids were opened on April 24, 2003. Five (5) bidders responded to
the invitation for bids. The apparent low bidder is Hardy & Harper, Inc. of Santa Ana,
for the total of $216,700.00.
ACTION: Awarded the contract in the amount of $216,700.00 to Hardy & Harper, Inc.
of Santa Ana, CA 92705 and authorized the Mayor and City Clerk to execute on behalf of
the City.
FISCAL IMPACT: Funds are anticipated to be available in fiscal year 03-04 Water
Operating Fund Account 600-8041-474501. The total bid amount is based upon an
estimate of 12 months of expenditures. Funding is recommended from fiscal year 03-04
budget. Expenditures averaging $18,000.00 per month are anticipated.
600-8041-474501-0000 $216,700.00 Transmission and Distribution Mains
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3. CONSENT CALENDAR (Continued)
RESOLUTIONS
3.17 RESOLUTION NO. 9730
A Resolution of the City Council of the City of Orange consenting to the designation of
certain portions of Glassell Street and Bridge within the City of Orange as a County
highway for the purpose of construction improvements.
Location: Glassell Street and Bridge (Bridge No. 55C0069) from Riverdale Avenue
northerly, approximately 857 feet, to City/County boundary limits.
ACTION: Approved.
3.18 RESOLUTION NO. 9736
A Resolution of the City Council of the City of Orange expressing appreciation to
Corporal Brance Skipper of the Orange Police Department and commending him for 35
years of loyal and dedicated service.
ACTION: Approved.
3.19 RESOLUTION NO. 9743
A Resolution of the City Council of the City of Orange expressing appreciation to Laura
Hooks of the Orange Police Department and commending her for thirty-four years of
loyal and dedicated service.
ACTION: Approved.
SPECIAL EVENTS
3.20 Request for temporary suspension of permit parking restrictions within Permit
Parking Area D and G for a special event.
Request to temporarily authorize on-street parking on the west side of McPherson
Rd. between Spring St. and Pearl St. (adjacent to Grijalva Park at Santiago Creek)
for a special event.
SUMMARY: The Community Services Department will host the annual July 3'd
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.
ACTION: Approved the request of the Community Services Department and suspend the
permit parking restrictions within Permit Parking Area D and G, and temporarily
authorized on-street parking on the west side of McPherson Rd. between Spring St. and
Pearl St. on Thursday - July 3'd, 2003.
FISCAL IMPACT: None.
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3. CONSENT CALENDAR (Continued)
MOTION - Alvarez
SECOND - Cavecche
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Item 3.3 was continued to June 10, 2003. Councilmember Ambriz abstained on Item 3.9.
Item 3.11 was approved as corrected. All other items on the Consent Calendar were
approved as re commended.
END OF CONSENT CALENDAR
********
4. REPORTS FROM MAYOR MURPHY - None.
5.
REPORTS FROM COUNCILMEMBERS
TAPE 480
5.1 Mayor pro tern Cavecche - Update on Assembly Bill 1221
Mayor pro tern Cavecche provided an update on Assembly Bill 1221, sponsored by
Assemblymen Steinberg and Campbell, and the impact it will have on cities in Orange County,
especially in Orange. AB 1221 calls for cities and counties to swap a portion of the local sales
tax for an equal amount of property tax. It would cut the sales tax the city gets from 1 % to Y, %
and would backfill an equal amount using Educational Revenue Augmentation Funds (ERAP)
which was taken from the cities in the early 1990's for the school districts.
Orange's property tax rate, plus the ERAP backfill would become Orange's base for calculating
further property taxes. The fiscal impact of this depends entirely on how the property tax base
and sales tax base grows for the future. This is supposed to prevent cities from competing with
large retail developers and provide incentives to build more housing. Historically, statewide
sales tax is more volatile and statewide property tax grows faster. However, this is not the case
in the City of Orange, or in most cities in Orange County.
The City's Finance Department has done an analysis on this, and there is about a 2% increase in
property taxes versus 4% in sales tax. The Finance Department has calculated out the impact in
five years if this would pass, keeping the numbers equal. There is a potential general fund loss
of about $4.4 million in five years. Using 1991-92 as a base year, calculated forward to 2003-04,
there would have been a $27 million hit to the general fund balance if this had been put in place
back then.
This bill could have incredible problems for the City of Orange and for most cities in Orange
County. One issue that could cloud this is the Redevelopment Agency. Redevelopment
Agencies limit the growth of property tax above what that base level is. The money goes to the
Agency rather than the General Fund. There are development agreements with several
developers such as The Block and The Village at Orange, and it could hurt that business. This
legislation also has not taken into consideration the Poole litigation currently underway in
Orange County regarding property taxes.
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5. REPORTS FROM COUNCILMEMBERS (Continued)
AB 1221 does nothing to solve the big picture problem - which is how well communities are
financed and the potential for the state government to take away more revenue from the cities.
The bill is moving ahead in a fast pace in Sacramento. It was voted out of Local Government
and voted out of the Revenue and Tax Committee and will be voted in the Appropriations
Committee on May 28th. Orange has commitments from two Assembly members representing
Orange who sit on the Appropriations Committee, Assemblywoman Dauscher and Assemblyman
Pacheco, who have both guaranteed a No vote in that Committee.
This legislation has received endorsements from both the Orange County Register and the Los
Angeles Times. Although there is a need to assist the State budget to implement fiscal reform, a
piecemeal approach could cause more harm than good.
Mayor pro tern Cavecche further reported Mayor Murphy has written letters to all of Orange's
representatives in strong opposition to this bill and the City's Finance Director has done a great
deal of research on this and is continuing to follow this. The League of Cities is also following
this; and Mayor pro tern Cavecche wanted the community to know that the Council is very
proactive in following this legislation as it could have major implications to the City. This bill
may come out of the Assembly, but it is hoped it will be killed in the Senate.
Councilmember Alvarez asked if a financial impact study has been done in terms of what this
means to the City and asked what the League of Cities is doing on this bill.
Helen Bell, Finance Director, reported the city's property and sales tax consultant prepared a
program in which each city can put in their own assumptions, which is what they used to arrive
at the numbers discussed. Some cities will benefit from this, but some cities will not.
Mayor pro tern Cavecche reported this bill has become the number one bill that the League of
Cities is looking at. Statewide, if averaged out, property taxes are moving faster than sales tax.
But this is not the case in Orange County, except for just a few cities. The City has been talking
with the League of Cities on how this will hurt the cities in Orange County. The League is
asking for a constitutional guarantee. But even a constitutional guarantee from the Assembly is
subject to an overthrow down the road.
Councilmember Coontz clarified the author of the bill is Assemblyman John Campbell; and
asked if the state has zeroed in on a specific date to determine the transfer amount, which can
affect the amount because of the current economy.
Ms. Bell reported the date developed as the base year is very important, because there can be
different results based on each year. The assumption that the consultant used was the 2002-03
fiscal year, but nothing has been cast in concrete at this time. This also does not give cities time
to prepare, because currently many cities are investing large amounts of money to attract large
sales tax producers.
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CITY COUNCIL MINUTES
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5. REPORTS FROM COUNCILMEMBERS (Continued)
Councilmember Coontz clarified an article about Redevelopment, which implies that cities went
into Redevelopment to capture sales tax, which is really not the case. Apparently, this is another
effort to affect sales tax.
Mayor Murphy stated it seems unfortunate that the state is trying to upset the balance of what has
been working for years to try and penalize a few cities. Trying to legislate rather than providing
incentives is not the correct way to go; and he wished the state legislature would allow local
authorities to handle local issues.
Councilmember Ambriz noted the property tax distribution is inequitable throughout the State.
Mayor pro tern Cavecche reiterated that the City is following this, noting this will change the
way cities look at land use and how money is budgeted.
TAPE 870
5.2 Councilmember Alvarez -Update on Palmyra Avenue Traffic Mitigation
Councilmember Alvarez reported the residents on Palmyra between Prospect and Yorba have
been working with the City to alleviate traffic problems. There have been several Traffic
Commission hearings, meetings with Staff and two community meetings. One of the residents is
a Traffic Engineer who conducted an analysis of what the neighborhood looked at.
Councilmember Alvarez submitted the analysis and asked staff to review this analysis and retum
to Council with a final report on what can be done on Palmyra.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS
6.1 Accept resignation of Mark J. Burkhardt from the City Traffic Commission,
effective May 19, 2003 and instruct the City Clerk to begin Maddy Act regulations.
MOTION - Murphy
SECOND - Alvarez
AYES - Alvarez, Mayor Murphy, Coontz, Cavecche
ABSTAINED - Ambriz
Moved to accept the resignation of Mark J. Burkhardt from the City Traffic Commission,
effective May 19, 2003, and instructed the City Clerk to begin Maddy Act regulations.
7.
ADMINISTRATIVE REPORTS
TAPE 950
7.1 First Amendment to Consulting Services Agreement with Jones & Stokes Associates
to provide consulting services associated with preparing an Environmental Impact Report
for developments proposed for Santiago Hills II and East Orange.
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CITY COUNCIL MINUTES
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7. ADMINISTRATIVE REPORTS (Continued)
SUMMARY: The City Council previously approved a Consulting Services Agreement with
Jones & Stokes. At that time, it was understood that the cost proposal that was submitted by
Jones & Stokes would need to be refined as project details and environmental and legal factors
were evaluated in greater detail. Extensive meetings have been held with relevant participants in
the process and a revised scope of work has been prepared to reflect the anticipated work that
will need to be performed.
Discussion
Stan Soo Hoo, Planning Manager, reported the original contract was approved by the Council
with the understanding that the scope and cost were preliminary only, and subject to more work
being done, looking at various issues with more specificity and subject to receiving the
development application from The Irvine Company. A great deal of work has been done and the
application has now been submitted, resulting in a revised scope of work and cost proposal.
Staff is recommending a base contract of $630,874, plus $69,126 in contingencies to address
unforeseen issues, for a total of $700,000. He noted The Irvine Company has been advised of
this additional scope of work and will be paying for all expenses of this agreement.
Mr. Soo Hoo introduced Margaret Sohagi, special legal counsel, who has been working on this
project and a very well respected attorney in the area of environmental law.
Councilmember Coontz commented she understands the increased scope of this contract. The
City has developed more questions about EIRs, some as a result of legal action; and once the EIR
is out, there will probably be other questions that will need to be addressed within the scope of
the contract. She asked ifthere is a possibility of additions to the contract.
Mr. Soo Hoo stated there may be additions to the contract, which is why Staff is asking for the
contingency amount.
Councilmember Coontz stated this is how people get into the project, through the EIR process;
and it is very protective of everyone involved so there can be preparation for what may happen.
she supports this and appreciated the detail in the report.
Councilmember Alvarez stated, for the record, he was the lone No vote on this original contract.
He said that in reviewing the bids that were looked at, had the Council waited until this point, the
bidding process would have been much more on a level playing field. This is like building a
house, like asking a contractor to build a house, but not showing them what is going to be built,
and then allowing added costs at a later date. This is a large addition to the bid; however, staff
has done a good job on the report in breaking out the different costs that have been generated and
the reasons for adding more money. He stated this probably will not be the end of these changes.
Councilmember Alvarez stated the Council has had no input on what has been proposed by The
Irvine Company. When the City looked at the original East Orange Plan, there were a lot of
community groups and a lot of input as to what was going to take place out there. Essentially,
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CITY COUNCIL MINUTES
May 27,2003
7. ADMINISTRATIVE REPORTS (Continued)
that plan has been thrown away, because now it is three different phases, as opposed to what was
done in the past. The Council needs to take a real hard look at implementing a series of study
sessions that would allow this Council to look at the plan as it begins to move, so there can be
input. It is important that the Council have input into this process, on what they would like to
see that part of Orange look like ultimately. Input from the Council is important; and before
more change orders come along, the process needs to be fully understood.
Councilmember Alvarez asked about the policy in approving change orders, especially since
Orange is not paying for them. The City has a fiduciary responsibility to make sure the money is
spent in a timely manner and in a manner that will bring a conclusion to the project. He would
have liked to see something in the report about the give and take between how thee City is
monitoring the money and the change orders. There is going to be a lot of input as the EIR goes
out and people start to respond, and there may be a lot of changes that will create more expenses
for The Irvine Company. The City has a responsibility while spending The Irvine Company
money.
Councilmember Alvarez asked what will happen to the EIR as the Council begins to look at it.
One of the problems is traffic, as there is no eastern outlet for the traffic. If the Council asks for
this to be looked at, this will create more changes to the EIR and another change order.
Councilmember Alvarez asked for a chart outlining all the people involved and the flow of
information, so the Council can see who all the different players are and who reports to who. He
also asked if the EIR will be much bigger than it is today if the City adds to the scope of work.
Alice Angus, Community Development Director, reported staff will be putting together a list of
everyone involved, including staff, The Irvine Company representatives and consultants. Study
sessions have also been initiated. There was a kick-off meeting held at Chapman University and
another one scheduled for June 17th There will also probably be other change orders and the
magnitude will depend on how the project evolves.
Ms. Angus further reported, with regard to Jeffrey Road, The Irvine Company is not looking to
delete Jeffrey, so the EIR will analyze Jeffrey with no change to the master plan. Although it is
part of their proposal, they are not planning to build that extension, assuming the traffic study
shows it is not warranted. There will be alternatives considered as part of the environmental,
with a preferred project and then alternatives. Staff looks at that in terms of both existing
conditions, existing plans, what is being proposed and alternatives to it. Staff is going through
that analysis with The Irvine Company and Jones & Stokes in terms of fine tuning those issues.
TAPE 1565
Councilmember Coontz stated the City needs to move ahead with the EIR. This is part of a
process. The EIR is done first, then public comment on the EIR and then as the Council begins
to look at the plan, more questions and perhaps add-ons to the consulting contract. The Council
also has to make a commitment to study it so when there are presentations, the Council has a
complete understanding. It takes a lot of work to go through a project like this. She agreed there
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7. ADMINISTRATIVE REPORTS (Continued)
needs to be study sessions, but they need to be helpful to the Council, with a commitment by the
Council to read the material ahead of time. There does not need to be a lot of pictures, but rather
an understanding of the guts of the EIR and what affect it has. The Council needs to understand
the process a little more and she agreed a timeline would be helpful. The scope is so large
because today, people can use an EIR to prevent development. Every effort is made to add to the
EIR, noting that some additions have never been included in EIRs before, but are added just to
protect the situation.
Councilmember Alvarez stated there needs to be checks and balances on how much the City can
ask in the contract, even though The Irvine Company is paying for it; there needs to be a balance
on what the City wants versus the needs of the applicant.
Ms. Angus reported the City is in constant communications with The Irvine Company on the
type and degree of studies. The contract does have an upper limit and staff scrutinizes
everything before signing off anything.
The City Attorney noted the contract is between the City and the consultant, which provides
checks and balances.
Mr. Soo Hoo pointed out the City controls the EIR process. Staff communicates with The Irvine
Company about the direction of the process, but the applicant does not have any say on the
environmental review. The City is the only one directly dealing with the consultant and although
The Irvine Company is paying for the consultant, Staff does monitor the contract and the money
very closely.
Mayor pro tern Cavecche stated it is more important that the process be done correctly, no matter
how much it costs the applicant; and asked if The Irvine Company has given the City a
maximum limit on the dollar amount that can be spent.
Mr. Soo Hoo stated The Irvine Company has not given the city a maximum dollar amount that
can be spent.
Mayor pro tern Cavecche stated she was originally critical about the proposal, but agreed to it
based on information gathered from other sources; and she knew there would be changes to this.
Jones & Stokes was chosen for their ability, not necessarily because of the cost. She brought up
the traffic study on Jeffrey and wanted to make sure the EIR did incorporate a traffic study done
with a corridor out of that area running into Irvine. She stated the Council needs to look at the
EIR analysis versus the issues, which can sometimes be different subjects. They can overlap
sometimes, but they need to be kept separate if possible. She also agreed that briefings are
necessary and suggested a separate briefing with Jones & Stokes in order to get a handle on what
Jones & Stokes is doing in the EIR process so the Council is more comfortable with the process.
PAGE 13
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CITY COUNCIL MINUTES
May 27, 2003
7.
ADMINISTRATIVE REPORTS (Continued)
TAPE 1950
Councilmember Coontz stated there have been some large EIRs in the past and there did not
seem to be enough time to review them. The Council needs background and understanding and
an opportunity to study the issues. The Council needs to be prepared and take the responsibility
to read the material ahead of time.
Councilmember Coontz spoke on the Master Plan of Arterial Highways, which she brought up at
the Eastern Transportation Corridor. Even though it is a sideline, it definitely affects not only the
City of Orange, but Tustin and Irvine. The Council needs to know exactly what the situation is
for the Master Plan of Arterial Highways and how it fits in on a timeline basis with The Irvine
Company development.
Councilmember Ambriz stated Staff has done an excellent job in communicating the process and
the reason for the changes. He also acknowledged The Irvine Company for their efforts in
educating the public. He expressed concern about micromanaging the EIR process and the
Council needs to rely on going ahead with this, give the City Manger some discretion, get the
EIR completed and then have the comments processed and get into more specific details.
Councilmember Alvarez complimented staff on a great job; and again expressed the need for
study sessions where the Council, as a group, can discuss the project, provide input and get a
handle on the information.
Public Comments
Bob Bennyhoff, Orange Park Acres, requested the residents of Orange Park Acres and East
Orange be kept informed, as they are the ones most affected.
Mayor Murphy asked staff if the 40% adjustment was a surprise or just the nature of the process;
and if staff has a good handle on what is still not known. He asked about the contingency, if
there will be more changes and if the City can move forward or is this still somewhat of a
moving target. He wanted to ensure that the analysis is complete and issues are identified.
Mr. Soo Hoo stated a combination of factors created the increase in the contract, and after
looking at everything, staff was not surprised by the additional amount. The $700,000 should
address any foreseeable and even some unforeseeable events, but there is no guarantee on this.
MOTION ~ Alvarez
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
PAGE 14
CITY COUNCIL MINUTES
May 27, 2003
7. ADMINISTRATIVE REPORTS (Continued)
ACTION: Approved First Amendment to Consulting Services Agreement with Jones & Stokes
Associates. The original agreement was for an amount not to exceed $497,066. This First
Amendment to that Agreement will increase that by $202,934 to an amount not to exceed
$700,000 ($630,874 base contract, plus $69,126 for contingencies with expenditure subject to
approval of the City Manager); and authorized the Mayor and City Clerk to execute said
Agreement
FISCAL IMP ACT: Since this work is related to a land use development proposal, the applicant,
The Irvine Company, will fully pay for the services rendered under this Agreement. There will
be no fiscal impact to the City.
7.2 Report from the Economic Development Director regarding 206 N. Manchester.
SUMMARY: In January 2003, the City Council and Redevelopment Agency Board of Directors
approved a Cooperation Agreement that provided for the sale of City-owned property located at
206 N. Manchester to the Redevelopment Agency for $770,000. Since the approval of the
Cooperation Agreement, an updated appraisal was conducted that opinioned the fair market
value of the site to be $900,000. The amended Cooperation Agreement reflects the increase in
the purchase price for the conveyance of the property.
(See ORA Minutes Item No. 7.1)
Mr. Rick Otto, Sr. Housing Manager, provided a report. The amendment is being requested to
reflect the updated price of the property.
Councilmember Coontz noted Set Aside Funds are being used for housing and wanted to ensure
the Council will be kept informed about possible projects for this property.
RESOLUTION NO. 9734
A Resolution of the City Council of the City of Orange approving an amended Cooperation
Agreement between the City of Orange and the Orange Redevelopment Agency relating to the
sale of certain real property located at 206 N. Manchester Street to the Orange Redevelopment
Agency; and making certain findings.
MOTION ~ Alvarez
SECOND - Murphy
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to adopt Resolution No. 9734; and transferred $130,000 in Set-aside Funds to Account
No. 941-9800-485802-9880 (Housing Set-aside - Manchester Housing Project) [AGENCY]
FISCAL IMPACT: Adequate funds are available for this project in the Housing Set-aside Fund
for the additional $130,000 appropriation. In January 2003, in conjunction with the approval of
the cooperation Agreement, $770,000 was appropriated from the Housing Set-aside Fund and
Housing Loan Fund.
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CITY COUNCIL MINUTES
May 27,2003
8. REPORTS FROM CITY MANAGER - None.
9.
LEGAL AFFAIRS
TAPE 2580
9.1 ORDINANCE NO. 5-03 (SECOND READING)
An Ordinance of the City Council of the City of Orange amending Chapter 5.18 of Title 5 of the
Orange Municipal Code pertaining to requirements for park dedication and the payment of fees
in lieu thereof; and renumbering said Chapter 5.18 as Chapter 16.60 of Title 16 of the Orange
Municipal Code.
MOTION - Coontz
SECOND - Cavecche
A YES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that Ordinance No. 5-03 be read by title only and same was approved and adopted by the
preceding vote.
9.2 ORDINANCE NO. 8-03 (SECOND READING)
An Ordinance of the City Council of the City of Orange amending Chapter 17.14 of the Orange
Municipal Code in order to comply with a new state law regarding the development of accessory
second housing units.
MOTION - Cavecche
SECOND - Ambriz
AYES - Ambriz, Mayor Murphy, Coontz, Cavecche
NOES - Alvarez
Moved that Ordinance No. 8-03 be read by title only and same was approved and adopted by the
preceding vote.
Councilmember Alvarez voted No to stay consistent with his previous vote on the First Reading
on the Ordinance.
9.3 ORDINANCE NO. 10-03 (SECOND READING)
An Ordinance of the City Council of the City of Orange adding Chapter 3.40 of Title 3 to the
Orange Municipal Code pertaining to requirements for the payment of park facilities fees as a
condition of approval for certain residential development proj ects.
MOTION - Coontz
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that Ordinance No. 10-03 be read by title only and same was approved and adopted by
the preceding vote.
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CITY COUNCIL MINUTES
May 27, 2003
9. LEGAL AFFAIRS (Continued)
9.4 ORDINANCE NO. 11-03 (SECOND READING)
An Ordinance of the City Council of the City of Orange adding Chapter 3.50 of Title 3 to the
Orange Municipal Code pertaining to requirements for the payment of Library Facilities Fees as
a condition of approval for residential development projects.
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that Ordinance No. 11-03 be read by title only and same was approved and adopted by
the preceding vote.
9.5 ORDINANCE NO. 13-03 (SECOND READING)
An Ordinance of the City Council of the City of Orange amending Chapter 16.40 of the Orange
Municipal Code Relating to Grading Requirements.
MOTION - Cavecche
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that Ordinance No. 13-03 be read by title only and same was approved and adopted by
the preceding vote.
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 Labor Negotiator pursuant to Government Code Section 54957.6:
City Negotiator: Personnel Director Steven Pham
Employee Organization: Fire Association
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
TAPE 2725
Dorothy Stewart, address on file, on behalf of Keep Orange Clean, spoke in support of enforcing
all code violations throughout the City.
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CITY COUNCIL MINUTES
May 27, 2003
13.
PUBLIC HEARINGS
TAPE 2840
13.1 CONDITIONAL USE PERMIT 2442-03, MAJOR SITE PLAN REVIEW 269-03,
MITIGATED NEGATIVE DECLARATION NO. 1714-03 AND DEVELOPMENT
AGREEMENT - CITADEL PROPERTIES ORANGE, LLC:
Time set for public hearing to consider a proposal to construct two medical office buildings
totaling 217,000 square feet, a 1,089 space parking structure on property that is presently vacant
and to allow the shared use of parking between two properties; and a Development Agreement to
allow phasing of project construction to occur beyond the time period allowed in the City's
Zoning Ordinance. The project is located at 1000 W. La Veta Avenue.
Note: Mitigated Negative Declaration No. 1714-03 has been prepared for this project in
accordance with the provisions of the California Environmental Quality Act per State CEQA
Guidelines.
Alice Angus, Community Development Director, provided a report on the project, noting the
proposed Development Agreement is for a 15 year period. In exchange for approval of the
Development Agreement, the applicant is proposing to list the City of Orange as the point of
sales for all purchases related to construction and tenant improvements, which will create a sales
tax benefit for the City. The applicant will also pay the City the portion of secured property tax
that would go to the City for three years upon completion of Phase 1, since the property may
become exempt from property tax because St. Joseph Hospital is a non profit corporation.
Council Ouestions
Councilmember Alvarez asked if the parking would meet code requirements if only Phase 1 were
built; and asked when the parking structure would be built. He also asked about the owner
giving up the property taxes for the three year period.
Ms. Angus reported Phase I includes construction of the first medical office building, a 233
space surface parking lot and shared use of parking with the Pavilion Medical building. Phase II
includes a second office building and a 9 level parking garage. If only Phase I were built, there
would still be a need for shared parking with the Pavilion. The parking structure is part of Phase
II which could be built anytime in the 15 year period. With regard to the property tax issue,
even if the property owner is a for-profit organization, it depends on who they would lease to,
and the value of that portion of the building leased to non-profit groups would normally come off
the property rolls.
Councilmember Coontz asked about parking and ingress/egress. She noted there was a reference
to a Traffic Management Plan, but did not see anything specific. She is very interested in traffic
management, especially since the applicant plans to use shared parking with the Pavilion for
temporary parking while construction is going on. The parking at the Pavilion can be confusing
and inadequate, and is concerned about the friendliness and accommodation of the people who
will be using those facilities. This is very important and should not be overlooked. There is
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CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued)
also reference about a valet service and asked for more details on that; and if the Council is able
to tie the development to any proposed ideas. Signage is important, especially during
construction; and asked what the parameters are for the entrance and exit off La Veta for
construction purposes.
Ms. Angus noted Condition No.7, on Page 4 of 9 in the Planning Commission Resolution, states
that prior to issuance of grading and/or building permits, Citadel shall submit a parking plan to
the Community Development Director and Traffic Engineer for review and approval. The
condition then summarizes what is to be designated in that Plan. Signage will help to direct
pedestrians and vehicles. With regard to the secondary entrance access point, this is not just for
construction, but also for project traffic, which was included in a traffic study that was done and
reviewed by the City. The Traffic Management Plan has not been submitted, but there is a
condition of approval that the applicant submits it for review and approval. The condition states
the Plan shall address on-site circulation, pedestrian pathways and location and number of
parking spaces. The condition does not specifically address valet service, but that is part of the
proposal.
Mayor pro tern Cavecche expressed concern about the shared parking with the Pavilion as there
is not adequate parking at the Pavilion currently; and asked if the Council can require additional
parking for Phase I if Phase II never gets built. She asked what the parking deficit would be if
Phase II were not built. She also asked about the median on LaVeta and if it is physically
possible for traffic going west on La Veta to turn into the building or if traffic will be making a u-
turn at Pepper Street.
Ms. Angus reported the studies indicated there is adequate parking with the proposed surface
parking lot and using the Pavilion structure. The surface parking lot and shared parking result in
a total of 434 spaces. If only the surface parking lot were used, which is 233 spaces, that would
result in an approximate 45% deficit.
Harry Thomas, Public Works Director, stated there is a left turn green arrow at Pepper and u-
turns are generally not prohibited, unless there is not adequate width. The existing median is a
painted median and is a two-way left turn lane at the present time. It is not proposed to build a
raised median, but it will be striped as a non-traversable painted median with signage. The
design of the driveway includes a channelized island that restricts the ability to make left turns
either in or out.
The City Manager pointed out the parking problem may be a result of the Pavilion Building
being overparked.
Councilmember Alvarez asked about the street improvements on LaVeta and ifit is sufficient to
handle this new project; and asked about the freeway on-ramps and off-ramps.
Mr. Thomas reported there is additional widening on LaVeta from the freeway to Batavia that
needs to be done, but at this particular location, there is no more room for any street widening.
PAGE 19
CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued)
The 22 Freeway total project is $436 million; $206 million available from Measure M. There
will be a minimum operating segment funded with that $206 million, which extends from the
Main street ramps to Brookhurst. The City is widening part of the on-ramp at La Veta and the
State will complete that portion; and the City has also proposed the State widen the off ramp.
Councilmember Ambriz stated he has never had a problem parking at the Pavilion, noting there
is currently two parking structures. He also clarified that the widening of the 22 Freeway will
have no impact to this project.
MAYOR MURPHY OPENED THE PUBLIC HEARING
TAPE 3790
Mr. Paul Kells, representing Applicant, St. Joseph Health System, 1100 W. Stewart, reported the
upper floors in the Pavilion parking structure are usually vacant; and the 202 shared parking
spaces will be designed for employees, freeing up spaces for patients and visitors on the lower
floors. Valet service is important and being considered; but the main intent is to provide valet
service during the interim construction period while the parking garage is being built. They are
also making great efforts to provide signage to connect all parking areas.
In response to questions by Councilmember Coontz, Ms. Angus pointed out Condition No.6 in
the Planning Commission Resolution requires a review of a final sign plan.
Councilmember Coontz expressed concern about the lack of specificity on the Parking Plan, that
the condition in the Planning Commission Resolution is somewhat general; but that the specifics
will be reviewed by Staff.
Roy Shebazian, Orange, submitted information about St. Joseph Health System being one of the
largest employers in Orange County; a map of the route between the train station and this
project; and the Orange Municipal Code Section regarding the Transportation Demand
Management Program, which calls for certain facility improvements and operational programs to
be incorporated into projects like this. He asked that these facility improvements and operational
programs be approved by City staff.
Mayor pro tern Cavecche asked the Applicant what kind of programs are in place for rideshare
and mass transit strategies.
Mr. Kells stated St. Joseph Hospital does have existing rideshare programs and they will work to
implement all conditions to meet City obligations.
Mayor pro tern Cavecche asked about the elevators and what kind of mechanical systems will be
used; as one of her concerns is mechanical systems being shielded on top of buildings.
Mr. John Hussey, representing Developer, stated in Phase I the elevator will be hydraulic and in
Phase II there will be a parapet that is eight feet higher than the roof, so the equipment will not
be seen. The HVAC will be units on the roof with high screens.
PAGE 20
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CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued)
MAYOR MURPHY CLOSED THE PUBLIC HEARING
The City Attorney noted that if the Council approves this application, there is a provision in the
Orange Municipal Code requiring that for any proposed Development Agreement that is
applicable to a project within a Redevelopment project area, there must be a recommendation
from the Redevelopment Agency; so any approval should be conditioned that this item be placed
on the Redevelopment Agency agenda.
Council Comments
Councilmember Coontz asked about the traffic issues being addressed in the traffic management
plan.
The City Attorney indicated conditions should be outlined as conditions of approval instead of in
the Development Agreement.
Councilmember Alvarez asked if the Council could bring the Development Agreement back for
review ifthere is a need to address parking or traffic issues.
The City Attorney indicated this would have to be negotiated as part of the agreement and
included as a re-opener clause.
MAYOR MURPHY RE-OPENED THE PUBLIC HEARING
Mayor Murphy asked the Applicant if they would be willing to entertain such a clause in the
Agreement to come back for review of parking and traffic issues if Phase II were not
constructed.
Mr. Kells stated they have an interest in providing adequate parking for patients and employees.
They would entertain some mechanism or discussion and their preference would be as they
submit building permits and through the existing processes. Building it into the Development
Agreement would require further study as to what the implications may be.
Mr. Paul Watkins, Counsel for the Applicant, stated there is an existing clause in the Agreement,
Section 10.(a), that allows the Community Development Director to review the Agreement
annually in order to determine whether or not the Developer is in compliance with any specific
term of the Agreement. He asked if this gives the City the flexibility it wants; as reopening
issues may defeat the purpose of the Agreement.
Councilmember Coontz stated a condition also needs to be added regarding the Traffic Demand
Management Program; and placed as Item D under Condition No. 7 in the Conditions of
Approval.
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CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued
The City Attorney stated Section 10 of the Development Agreement does not give the City the
ability to require the Developer to add parking.
Ms. Angus suggested a condition could be added to the Conditional Use Permit to have the
project return to the City and reevaluated a certain number of years after completion of Phase I to
evaluate the parking and traffic issues.
Mr. Kells stated Phase I construction should take approximately two years, but there is no
certainty regarding the timing for Phase II; and stated they will agree to a condition added to the
Conditional Use Permit.
Mayor Murphy suggested a condition be added that five years after completion of Phase I the
Conditional Use Permit be reviewed for adequate compliance for parking and traffic on site.
The City Attorney noted the Resolution will need to come back for approval and can include the
additional language.
The City Manager pointed out the five year time period does not prohibit the City from bringing
a problem to the attention of the Applicant for them to work on prior to the five year time limit.
MAYOR MURPHY CLOSED THE PUBLIC HEARING.
TAPE 5120
Council Comments
Councilmember Alvarez appreciated the fact that Staff has worked so well with the Applicant.
The City needs to support St. Joseph, as they add prestige to the City and it is important to allow
major companies like St. Joseph to expand. He complimented the design of the building and
supported the proj ect.
Councilmember Coontz stated the Council is always very much aware of traffic and parking
issues and they always need to be looked at very closely.
Mayor pro tern Cavecche complemented the architect and supported the expansion of the
hospital; and agreed with the added conditions and the Traffic Demand Management Program.
Councilmember Ambriz spoke on the good work the hospital is doing in the community.
Mayor Murphy complimented the design of the building and looked forward to a continued
partnership.
PAGE 22
CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued)
Council Action
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Approved Conditional Use Permit 2442-03, with the added Condition D of submitting the
Transportation Demand Management Program to the Community Development Director for
approval; and with the added Condition E to review the project five years after a certificate of
occupancy has been issued for Phase I; such added conditions to be added to the Resolution.
MOTION - Coontz
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Approved Major Site Plan Review 269-03 and Mitigated Negative Declaration No. 1714-03 as
outlined in Planning Commission Resolution No. PC-15-03.
MOTION - Coontz
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Approved the Development Agreement by and between the City of Orange and Citadel
Properties Orange LLC as outlined in Planning Commission Resolution No. PC-18-03.
Councilmember Ambriz thanked Roy Shebazian for the information he submitted. He also asked
staff to research the street names of Stewart and Pepper and what it would take to possibly
change Stewart to St. Joseph Way and change Pepper to CHOC Way. He also asked Staff to
research a left turn signal on Main Street at Stewart.
NOTE: The Council recessed at 8:15 p.m. and reconvened at 8:30 p.m.
NOTE: Councilmember Alvarez left the meeting at 8:30 p.m.
13.2 SANITATION RATE MODIFICATION
TAPE 5600
Time set for public hearing to consider adoption of adjusted and restructured fees for the
provision of City sanitation services. These services consist of sanitary sewer maintenance,
street sweeping, street tree services, storm water quality management, solid waste management
and recycling.
Mr. Harry Thomas, Public Works Director, explained this is not the County Sanitation Fee. That
fee is a fee that is collected on the property tax bill for sewage treatment. The City Sanitation
fee has been in place for many years with the last adjustment in 1999. The portion of the
Sanitation Fee related to street trees will not change as it generates sufficient revenue to cover
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CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued)
the cost of the Street Tree Maintenance Program. However, the balance of the fees need to be
addressed. One issue has been escalating costs for items related to water quality, which are
driven by the permit requirements under the Clean Water Act. Another element is the need to
improve equity of the cost distribution to allow customers to have some control over their cost of
service. Smaller users are not expected to see much of an increase and larger users will take on a
larger amount of the cost. It will also give users the ability to opt out on services that are not
provided such as street sweeping or sewer services. This is a much more fair and equitable
system than the current system. With the proposed rate structure, the residential sector will be
paying about 64% of the cost as opposed to 62.7% currently.
Mr. Thomas stressed the importance of the preservation of water quality. He also stated there is
an annual shortfall in revenue for next year estimated at about $1.2 million. If the proposed rate
structure is approved, the City would raise about $780,000 in next fiscal year with the balance
from reserves because the rates would not be implemented until October 1st. In subsequent
years, the full amount of $1.2 million would be raised.
Council Ouestions
Mayor pro tern Cavecche asked about this being an enterprise fund, noting the $1.2 million
deficit and the fact that this fund is basically going bankrupt. She also noted many of the
programs and mandates are required to be put into place; therefore, the City is required to
provide a higher level of service with a fund that is going bankrupt.
Mr. Thomas stated most of the funding comes from the Sanitation fees collected on the utility
bills, plus the bus shelter revenue and a small amount of revenue raised from permit fees issued
for sewer connections. The deficit is running at about $100,000 per month, and with no change
in the rate structure, there would be a deficit in 2004.
MAYOR MURPHY OPENED THE PUBLIC HEARING
THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING
Council Comments:
Councilmember Coontz complimented the Public Works staff on a great job. This process has
taken many years to balance the goals and mandates in an equitable manner. She indicated a
letter had been received from the Apartment Owners Association complimenting the Public
Works staff, particularly Harry Thomas, Bob Von Schimmelman and Jamie Herbon.
Mayor pro tern Cavecche agreed staff has done a good job with this rate structure, and
appreciated the fact that it is equitable and seems to fix many of the inequities and possible legal
challenges.
Mayor Murphy stated this is really a market change. In enterprise fund situations, for a long
time there were in-lieu fees and other transfer fees where there actually was a transfer to the
general fund of moneys raised through the water rates. The Council decided to change that back
PAGE 24
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CITY COUNCIL MINUTES
May 27, 2003
13. PUBLIC HEARINGS (Continued)
in the early 1990's. This structure is a fair and equitable approach which is based on
consumption; and he feels comfortable that people will pay on the basis of what they use and
have some ultimate control rather than a flat rate system.
Councilmember Coontz asked what the program will be for announcing this to the public.
Mr. Thomas stated a letter will be sent out with the utility bills similar to the one for water rates.
The revised bills will start arriving after October 151 and the first bills will have some proration.
There will not be a full billing cycle until two months after October 151.
Councilmember Coontz asked that the Council be provided a copy of the letter before it is mailed
out.
Council Action:
ORDINANCE NO. 14-03 (FIRST READING)
An Ordinance of the City Council of the City of Orange amending and revising the Master
Schedule of Fees and Charges to adopt new City Sanitation Service Fees.
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Mayor Murphy, Coontz, Cavecche
ABSENT - Alvarez
Moved that Ordinance No. 14-03 be read by title only and same was set for second reading by
the preceding vote.
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Mayor Murphy, Coontz, Cavecche
ABSENT - Alvarez
Amended the Fiscal Year 2003-04 Sanitation Reserve Budget Account No. 220-5022-274700 in
the amount of $779,000.
14. PLANNING AND ENVIRONMENT - None.
PAGE 25
CITY COUNCIL MINUTES
May 27, 2003
15. ADJOURNMENT
MOTION - Cavecche
SECOND - Ambriz
AYES - Ambriz, Mayor Murphy, Coontz, Cavecche
ABSENT - Alvarez
The City Council adjourned at 8:45 p.m. The next Regular Council meeting is June 10,2003.
~-I<"~~/~k--#~
CASSANDRA J. THCART, CMC
CITY CLERK
1Ht~:/&*
MAYO
PAGE 26