7/8/2003 - City Council Minutes - CC Minutes Reg Meeting
APPROVED BY THE DIRECTORS ON JULY 22, 2003
ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA
MINUTES OF A REGULAR MEETING July 8, 2003
The Orange Redevelopment Agency of the City of Orange, California convened on July 8, 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. ROLLCALL
PRESENT - Ambriz, Chairman Murphy, Coontz, Cavecche
ABSENT - Alvarez
2. PUBLIC COMMENTS
3. CONSENT CALENDAR
3.1 Declaration of the Clerk of the Orange Redevelopment Agency, Cassandra J.
Cathcart, declaring posting of Orange Redevelopment Agency Agenda of a regular
meeting of July 8, 2003 at Orange Civic Center City Clerk's Office, north facing
kiosk, Main Library at 101 N. Center Street, Police facility at 1107 North Batavia,
Shaffer Park and available on the City's Website www.citvoforanl!e.or!!, 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 Agency Posting and authorized its retention as a
public record in the Office of the City Clerk.
3.2 Request Agency confirmation of warrant registers dated June 19 and 26, 2003.
ACTION: Approved.
3.3 Request approval of Redevelopment Agency Minutes, Regular Meeting, June 24,
2003.
ACTION: Approved.
MOTION - Cavecche
SECOND - Ambriz
AYES - Ambriz, Chairman Murphy, Coontz, Cavecche
ABSENT - Alvarez
All items on the Consent Calendar were approved as recommended.
END OF CONSENT CALENDAR
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ORANGE REDEVELOPMENT AGENCY MINUTES
July 8, 2003
4. REPORTS FROM DIRECTORS - None.
5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
6. REPORTS FROM EXECUTIVE DIRECTOR - None.
7. ADMINISTRATIVE REPORTS
7.1 Report by Linda Boone, Economic Development Director, on the Consultant
Services Agreement with Wallrich Landi Integrated Marketing Communications.
SUMMARY: Consultant Services Agreement with Wallrich Landi Integrated Marketing
Communications to design, oversee printing, and coordinate deliver of the Fall 2003, Winter,
Spring and Summer 2004 issues of the Orange Progress City Newsletter/Community Services
Brochure.
(See City Council Minutes Item No. 7.2)
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Chairman Murphy, Coontz, Cavecche
ABSENT - Alvarez
ACTION: Approved Consultant Services Agreement between the City of Orange, the Orange
Redevelopment Agency and Wallrich Landi Integrated Marketing Communications in an amount
not to exceed $100,740 and authorized the Chairman to Execute, and the Agency Clerk to attest,
the Agreement on behalf of the Agency.
FISCAL IMP ACT: Sufficient funding has been budgeted through the following sources:
General Fund: $53,000 (this amount includes a $40,000 contribution from Waste Management)
100-0201-426600-7009 (City Manager's Office-Publicity & Advertising-Orange Progress)
Redevelopment Agency: $47,740 940-9800-426600 (Merged and Amended Project Area-
Publicity & Advertising-Orange Progress)
TAPE 1880
7.2 Report by Linda Boone, Economic Development Director on the Agreement
between the Orange Redevelopment Agency and the Orange Chamber of Commerce and
Visitor Bureau. (A2100.0 AGR-3300.D)
SUMMARY: Pursuant to the Agreement, the Orange Chamber of Commerce and Visitor
Bureau will provide business services and tourism related services for Orange businesses,
visitors and tourism industry organizations.
Linda Boone, Economic Development Director, reviewed the proposed Agreement with the
Orange Chamber of Commerce, pointing out the funds for this agreement are Redevelopment
funds and are only available for business purposes.
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ORANGE REDEVELOPMENT AGENCY MINUTES
July 8, 2003
7. ADMINISTRATIVE REPORTS (Continued)
Barbara deBoom, Executive Director, Orange Chamber of Commerce, distributed a historic tour
map, a business directory and a letter from the Downtown Merchants and Business Association.
She reviewed some of the projects the Chamber has been working on, such as a video to promote
Orange, a historic walking tour map for downtown merchants to promote, magazine ads and a
proposed Visitor Center annex downtown. The amount of this agreement is the same as last
year.
Councilmember Ambriz stated he understands the importance of the Chamber, but asked why
this contract did not go out to bid to professional public relations firms, especially with finances
so tight right now. He also noted $20,000 was budgeted for a visitors bureau, which is not open
on weekends; and questioned what the $20,000 actually provides, since the agreement states the
Chamber shall, at its sole cost and expense, furnish all facilities materials and equipment.
Ms. Boone stated staff determined the Chamber was the best resource for this purpose and the
Chamber's relationship with the City and the Old Towne merchants could not be matched with
anyone else. She stated the $20,000 provides for items such as the phone, literature and staff.
David DeBerry, City Attorney, explained this is an independent contractor agreement, and other
than what the City compensates them for, the Chamber has to provide all the equipment and
buildings.
Councilmember Ambriz asked about the advertisements with the Orange County Tourism
Council and how it promotes all businesses in Orange; and if the list of businesses is available to
the public.
Ms. deBoom stated the Chamber promotes the City of Orange in general and not individual
businesses.
Helen Bell, Finance Director, explained the list of businesses is provided to the public either
through e-mail or as a hard copy for a fee; and is just a list of business names and addresses.
Councilmember Coontz pointed out it was always a Council policy that the business license list
was unavailable to the general public, and was concerned that Council was unaware of this
change in policy.
Councilmember Ambriz stated this business list is an important tool and should be available to
non-profit organizations.
TAPE 2550
Councilmember Coontz stated she has been a loyal participant and contributor to the Chamber
since 1962 and always with her own money. These are very difficult financial times and
important projects have been cut from the budget. The City has been unable to fund crossing
guards, reading programs and clerical help for code enforcement; and was concerned that this
was coming forward after the budget had been adopted and the Council has had very few line
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ORANGE REDEVELOPMENT AGENCY MINUTES
July 8, 2003
7. ADMINISTRATIVE REPORTS (Continued)
item reviews of the budget. Regardless if this is Redevelopment money or not, there have been
many activities that the City has not been able to fund. One of her concerns is the visitor center
in Old Towne. There is already a Chamber office on Chapman, and she did not understand why
another center would be opened with the budgetary problems the City has; and thought some of
the Redevelopment money could be spent on other items. The Old Towne merchants have done
a great job with their own brochure and with their own money.
Councilmember Coontz spoke on the hotels in West Orange, which are looked at as an extension
of Anaheim; and the difficulty in getting those hotel visitors to the Old Towne area, as most of
those visitors are there specifically to go to Disneyland or sports events. She had a problem with
this budget, because it includes items that she is not sure will even help the business community
given the current economic situation; and suggested this budget be reduced to match the
reductions the City is making across the board.
The City Manager stated the expenditure of funds is a balancing act. This money was included
in the budget under the category of publicity and advertising and is consistent with past years. It
is difficult to determine where to spend money in these economic times and it is hard to quantify
monetary losses to tourism. Orange does not spend near as much money as other cities do as
Orange does not have the same level of tourism, but TOT revenue is still down and the City does
not want to hurt itself any further. He suggested the Chamber could provide more feedback on
some of the expenditures and track the expenses better. The return is difficult to measure, but
the points raised are well founded in trying to do some cutbacks. This was discussed by staff,
and he was uncomfortable in trying to reduce this particular issue when there was the availability
of money and it is an area where money could be spent and could possibly generate a return.
Public Comments
Susan Valen, Director of Marketing, Hilton Suites, spoke in support of promoting tourism which
is essential for their business.
Cleo Olson, Sales Manager, Doubletree Hotel, spoke on the support the Doubletree has received
from the Chamber of Commerce.
Jeff Wolff, General Manager, Hilton Suites, spoke in support of funding that promotes tourism.
Council Comments
TAPE 3180
Mayor pro tern Cavecche asked for more specifics on the proposed visitor center in Old Towne.
Ms. DeBoom stated the purpose of the visitor center annex in Old Towne is to have a better
location and should be able to generate revenue that could help offset the rent. The Chamber
thought it had a place, but that space had already been leased. The Chamber is still looking at
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ORANGE REDEVELOPMENT AGENCY MINUTES
July 8,2003
7. ADMINISTRATIVE REPORTS (Continued)
other places, but if nothing comes available in six months, the money for that center will be used
for print media.
Mayor pro tem Cavecche stated if this was general fund money, it would have been cut, but since
it is Redevelopment money, it is the best use the City can get; especially with state funding and
Redevelopment funding at risk and possibly not available in the future. She did not think an
outside firm could provide this service any cheaper; and actually sees an expansion of this
service. She pointed out there was a soccer tournament in Orange the previous weekend with
visitors from all over the country; and next year, tourism information should be made available
to these teams. She suggested a more detailed account of the visitor center and visitor bureau be
provided and maybe some slight changes to those line items.
Mayor Murphy stated it is important to leverage the regional resources the City already has, and
it is actually beneficial to have a proximity to Disneyland. This is an investment in the future
and is important especially in challenging times, and it is important to maintain a competitive
edge. He agreed there may be questions on the specifics on how to successfully implement the
visitor center; but supports the $75,000 investment as it takes advantage of the synergy with the
Chamber that is already in existence. He suggested approving the funding, and specific items
can be brought back for additional clarification.
Councilmember Coontz stated the Council needs an opportunity to learn more as this was an
incomplete presentation. Because the Council has been through tough budgets, it is important to
look at everything. She expressed concern about the visitor center and whether it will be
successful in Old Towne, especially with rents going up; and expressed concern with the map,
which was originally put together on a contract with the Historical Society, and the ownership is
with the Historical Society, and has been copied in different forms. The historical tours have not
been particular successful, and was not too sure this is worth the money. She acknowledged that
the Old Towne merchants have done an excellent job with their brochure, with their money; and
if any brochures go out, they need to be effective. She also spoke on The Block and how The
Block should be working with the Chamber to promote that center. This is an important resource
that should be looked at. Activities in Orange, such as bowling groups, need to be promoted
more through the visitors bureau and publications, as well as shopping centers and East Orange.
She suggested this item be reworked for more clarification.
Councilmember Coontz also expressed concern that the Economic Development Department,
and the City Manager's Office, spends additional money on activities of the Chamber and
events; and if the line item budget is going to be reviewed, those other expenditures such as
buying tables or anything else that goes into the dual promotion of Chamber events, needs to be
reviewed. She has always spent her own money for Chamber events, which was always a
requirement in the past; and all of the expenditures need to be listed so the Council knows
exactly how much the City and Agency is spending on Chamber activities.
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ORANGE REDEVELOPMENT AGENCY MINUTES
July 8, 2003
7. ADMINISTRATIVE REPORTS (Continued)
Councilmember Ambriz stated this is not a question about how the Council feels about the
Chamber as the City has always supported and worked with the Chamber; but he was concerned
about this particular agreement. A professional public relations firm may be able to provide
these services for a lesser amount. There is a large amount of money in this contract for the
visitors bureau; and the Chamber may also want to re-think how they do their outreach. It is the
Council's responsibility to watch the finances of the City and there may be other things in the
City that this money could be used for. He suggested possibly re-working this budget and
hopefully provide a cost savings. He also expressed concern about duplication of efforts, as
there are several maps of the downtown area. There are private companies that promote
downtown Orange with maps and newsletters; and other businesses such as shopping centers,
hospitals and car dealers all promote themselves; and there needs to be more coordination of
efforts. He agreed this money is already budgeted, but not necessarily to go entirely to the
Chamber.
Mayor Murphy pointed out this Redevelopment money has to go back into the business
community; and many of the general fund budget cuts couldn't have been saved with these
funds. He suggested the Council could approve a lesser amount of money with a report back on
additional information and further clarification.
Councilmember Coontz agreed this item should be continued. Her concern is with the list of
items as it really doesn't say what is involved. There is a fine line between tourism and business,
as tourism covers more than just business. It depends on whether the Chamber recognizes that to
bring people to the City. There is more than just the hotels the visitors stay in or the events in
Anaheim. There is shopping in Orange, which is business oriented, and all the many events in
Orange, which don't always get into the newspaper. She was also concerned about a visitors
center, as it is not that far to walk to have the Chamber open on the weekends, which is a
possibility that needs to be looked at. Also, the City does not need to repeat what other groups
are doing and have paid good money for. There needs to be better partnership with the large
shopping centers and with the Old Towne merchants. If the City wants to promote itself in a
very creative way, she was not sure this would do it; and was not ready to support this at this
time. This is also not all the money the City spends for the Chamber. It used to be that each
Councilmember bought their own tickets for events, which she has done for years. But lately,
the City has been subsidizing tables and has spent other money from the City Manager's Office,
as well as from Economic Development which needs to be straightened out. If the Council is
going to review this as a line item budget, it needs to be done right; and she was supportive of a
continuation to straighten out some of the concerns.
Mayor pro tern Cavecche suggested Councilmembers meet individually with staff and provide
details of their concerns.
Councilmember Coontz wanted to ensure that the Council's comments were listened to.
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ORANGE REDEVELOPMENT AGENCY MINUTES
July 8,2003
7. ADMINISTRATIVE REPORTS (Continued)
MOTION - Cavecche
SECOND - Murphy
AYES - Chairman Murphy, Coontz, Cavecche
NOES - Ambriz
ABSENT - Alvarez
Moved to continue to August 12 , 2003 with direction that the Council be provided briefings, and
staff come back with a more complete report at the next meeting, with comments noted in terms
of areas of concern.
8. LEGAL AFFAIRS -None.
9. RECESS TO CLOSED SESSION
Note: The Agency did not recess.
a. Conference with Real Property Negotiators pursuant to Government Code Section 54956.8
I) Property: 124-145 and 164-180 S. Water Street, Orange, CA
Agency Negotiator: Linda Boone
Negotiation Parties: City of Orange, Orange Redevelopment Agency and Orange County
Fire Authority
Under Negotiation: Price and terms of payment
b. To consider and take possible action upon such other matters as are orally announced by the
General Counsel, Executive Director of the Board of Directors prior to such recess unless the
motion to recess indicates any of the matters will not be considered in Closed Session.
10. ADJOURNMENT
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Chairman Murphy, Coontz, Cavecche
ABSENT - Alvarez
The Agency adjourned at 6:48 p.m.
~&::r.-KL.aT
CASSANDRA ATHCART,CLERK
OF THE REDEVELOPMENT AGENCY
AN
NT AGENCY
M A. MURPHY, C
OF THE REDEVELOP
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