11/25/2003 - Council Minutes - CC Minutes Reg Meeting
APPROVED BY THE CITY COUNCIL ON DECEMBER 9, 2003
CITY COUNCIL MINUTES ORANGE CALIFORNIA
,
OF A REGULAR MEETING November 25,2003
The City Council of the City of Orange. California convened on November 25,2003 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 Pastor Ed Trenner, Grace Brethren Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Coontz
1.3 ROLL CALL
PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
The following employees received Service Awards:
Irma Morales - Library; Byron Gemmell - Public Works; Oanh Doan - Community
Development; David Hill- Police; Bob Stolhand - Public Works.
Resolution No. 9786 was presented to Cassandra J. Cathcart, expressing appreciation and
commending her for more than 27 years of loyal and dedicated service to the City. A
Resolution from Orange County Supervisor Bill Campbell, a Resolution from State
Assemblyman Todd Spitzer, and a Certificate from Congressman Ed Royce were also
presented to Cassandra Cathcart. The Mayor announced that Wednesday, November 26,
2003 would be Cassie Cathcart Day in the City of Orange.
2. PUBLIC COMMENTS - None.
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.
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CITY COUNCIL MINUTES
November 25, 2003
3. CONSENT CALENDAR (Continued)
3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of the City
Council Agenda of a Regular Meeting of November 25, 2003 at Orange Civic Center
City Clerk's Office, north facing kiosk, Main Library at 101 N. Center Street, Police
Facility at 11 07 North Batavia and Shaffer Park; 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 6 and 13, 2003.
ACTION:
Approved.
3.3 Request approval of City Council Minutes, Regular Meeting, November 12, 2003
(C2500.D.4)
ACTION:
Approved. Note: Mayor pro tern Cavecche abstained on this item.
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 October 31, 2003.
(C2500.F)
ACTION:
Received and Filed.
3.6 Receive and file the Investment Oversight Committee First Quarter Report for the
Quarter Ending September 30, 2003. (ORI800.0.27.16.1)
ACTION:
Received and Filed.
AGREEMENTS
3.7 Sewer Service Agreement: Request by Dale and Marlene Virus to connect their
property to City of Orange sewer. (A2100.0 AGR-4392)
SUMMARY: Dale and Marlene Virus. owners ofresidential real property located at 8592
Palm Avenue in an unincorporated area of the County of Orange, have requested to
connect their house sewer lateral to the City sewer main in Palm Avenue. They have
executed a Sewer Service Agreement with the City of Orange and are requesting City
Council approvaL
ACTION: Approved the connection request from Dale and Marlene Virus and authorized the
Mayor and the City Clerk to execute this Sewer Service Agreement on behalf of the City.
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CITY COUNCIL MINUTES
November 25, 2003
3. CONSENT CALENDAR (Continued)
FISCAL IMPACT: None. The property owners will pay all connection fees prior to the
sewer connection.
3.8 Sewer Service Agreement: Request by Dushyant and Poonam Mehta to connect
their property to City of Orange sewer. (A2100.0 AGR-4393)
SUMMARY: Dushyant and Poonam Mehta, owners of residential real property located at
12294-A Circula Panorama in an unincorporated area of the County of Orange, have
requested to connect their house sewer lateral to the City sewer main in Montgomery
Place. They have executed a Sewer Service Agreement with the City of Orange and are
requesting City Council approval.
ACTION: Approved the connection request from Dushyant and Poonam Mehta and
authorized the Mayor and the City Clerk to execute this Sewer Service Agreement on
behalf of the City.
FISCAL IMP ACT: None. The property owners will pay all connection fees prior to the
sewer connection.
3.9 Consultant Services Agreement between the City of Orange, Orange Redevelopment
Agency and LPA, Inc. to prepare a Site Utilization Study for the recently acquired
Water Street property. (A2100.0 AGR-4394)
SUMMARY: In August 2003, the City and Agency acquired the 3.5-acre Water Street
property from the Orange County Fire Authority (HOCFA"). It is the City and Agency's
intent to redevelop the 1.5-acre eastern portion of the property to serve as a City Fire
Station and Water Division Warehouse and sell the excess 2-acre western parcel to a
housing developer. To assist the City and Agency in planning for the reuse of the site, it
is recommended that a comprehensive Site Utilization Study be conducted.
(See ORA Minutes Item No. 3.4)
ACTION:
I. Approved the Agreement between the Orange Redevelopment Agency, the City of
Orange and LP A, Inc. to prepare a Site Utilization Study in an amount not to exceed
$87,934; and authorized the Mayor and City Clerk to execute the agreements on
behalf of the City.
2. Appropriated $60,000 from Fund 940 into Orange Merged Capital Projects - Water
Street Acquisition (940-9800-486700-9881) [Agency]
3. Transferred $900,000 (received from the sale of the Manchester property) from the
General Fund Unreserved Fund Balance to the General Fund Capital Improvements
Fund - Fire Headquarter Replacement Project (500-3021-481105-2977) [City]
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CITY COUNCIL MINUTES
November 25,2003
3. CONSENT CALENDAR (Continued)
FISCAL IMPACT: The cost of the Agreement will be funded by the Redevelopment
Agency and City in the following accounts:
$29,312 - 940-9800-486700-9881 (Redevelopment Capital Improvements - Water Street)
$29,311 - 601-8041-481102-8935 (Water Capital Funds - Warehouse Replacement)
$29,311 - 500-3021-481105-2977 (General Fund Capital- Fire HQ Replacement)
3.10 Project No. 5324 - Amendment No. 1 to Consultant Services Agreement with
Kabbara Engineering for Taft Avenue and Glassell Street Storm Drain
Improvements. (A2100.0 AGR-4216.1)
SUMMARY: This contract amendment is needed to allow the consultant, Kabbara
Engineering, to provide additional engineering services to complete a master drainage
plan for Taft-Glassell drainage area, identify the first stage of construction, and scope of
work for the Taft Avenue-Glassell Street Storm Drain Improvements. Additional
engineering services will increase the consultant contract cost by $30,844, from $38,060
to $68,904.
ACTION: Approved Amendment No. I to Kabbara Engineering to include an increase in
the amount of $30,844 and authorized the Mayor and City Clerk to execute on behalf of
the City.
FISCAL IMP ACT: Funds are budgeted in following accounts:
530-5011-483400-5324 $151,800 (Drainage District)
550-5011-483400-5324 $100.500 (OCSD Grant Funds)
Total $252,300
3.11 Approve a new contract with Vision Service Plan (VSP), as an additional benefit for
all City of Orange employees covered by group benefit programs effective January
1,2004 through December 31,2005. (A2100.0 AGR-4395)
SUMMARY: The City of Orange sent out a request for proposal to vision plan
administrators in the spring of 2003 to try and improve the vision plan offered to the City
of Orange employees. Staff conducted an open bid through the City's insurance broker,
Mercer Human Resources Consulting, and determined it was best to keep the two current
plans of PacifiCare vision and EyeMed, but also to add a third alternative, Vision
Services Plan (VSP).
ACTION: Approved a two-year contract with Vision Service Plan (VSP) for employee
vision insurance coverage and authorized the Mayor and City Clerk to execute on behalf
of the City.
FISCAL IMP ACT: There is no additional fiscal impact to the current budget. The total
annual amount paid to Vision Service Plan (VSP) for prepaid vision benefits is paid
through employee contributions. Employees are responsible for meeting the cost
required to continue this benefit.
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November 25,2003
3. CONSENT CALENDAR (Continued)
3.12 Approve contract renewal with Delta Dental Plan of California for employee dental
insurance benefits, effective January 1, 2004 through December 31, 2004. (A2100.0
AGR-2937.A.6)
SUMMARY: The City has contracted with Delta Dental Plan of California to provide
indemnity dental insurance benefits to City employees. This is a comprehensive dental
insurance program for employees and their family members.
ACTION: Approved a one-year contract renewal with Delta Dental Plan of California,
and authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMPACT: There is no additional impact to the current budget. New rates are
based on the most recent 12-month's claims experience, which indicates a need to
increase the self-funded Delta Dental program by 9.3%. This increase is developed from
two factors; administrative fees and claims experience. Delta's administrative fee of
$12.92 will continue for the 2004 plan year (rate pass). However, a review of the most
recent claims experience indicates a budget rate increase is needed to offset the increased
claims activity. Employees are responsible for meeting the cost required to continue this
benefit.
3.13 Approve contract renewal with REACH for Employee Assistance Program effective
January 1, 2004 through December 31, 2005. (A2100.0 AGR-1823.N)
SUMMARY: The City has utilized the services of REACH Employee Assistance
Program for the City employees and their family members. This is a valuable,
comprehensive program that provides counseling services, supervisory training programs,
professional referrals, and consultation services with staff regarding employee
performance issues.
ACTION: Approved the contract with the Employee Assistance Program provider
REACH, and authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMP ACT: There is no additional impact to the current budget. The budget for
fiscal year 2003 - 2004 is set at $20,000.00 for the Employee Assistance Program,
(EAP). The contract for this time period will be $2.16/per employee/per month. The
City's number of employees may fluctuate from time to time during the term of this
agreement; therefore it is in the City's best interest to pay a flat monthly fee per employee
rather than a predetermined number at the onset of the contract. This fee of $2.16 per
employee has not changed.
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3. CONSENT CALENDAR (Continued)
3.14 Approve renewal of contract with Hinderliter, de Llamas and Associates (HdL) for
Sales Tax Audit and Information Services through June 30, 2008. (A2100.0 AGR-
3090.1
SUMMARY: In July 2003, the City's Sales Tax Audit and Information Services contract
expired. There are limited number of providers of these services and staff is
recommending the City renew its relationship with Hinderliter, de Llamas and Associates
(HdL) for Sales Tax Audit and Information Services through June 30, 2008.
ACTION: Approved the contract for Sales Tax Auditing and Information Services with
Hinderliter, de Llamas and Associates (HdL) and authorized the Mayor and the City
Clerk to execute this Service Agreement on behalf of the City.
FISCAL IMPACT: Adequate funds for Sales Tax Auditing are available in Account
100-1231-426700.
3.15 CLAIMS (C3200.0)
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, is the recommendation of the City Attorney's Office that the
claim(s) be denied.
a. Leona Lis
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
CONTRACTS
3.16 Contract Change Order No.1 and Final; Project No. SP-3458, Fairway Drive Cross
Gutter Replacement. (A2100.0 AGR-4357)
SUMMARY: This Contract Change Order authorizes payment for extra work at agreed
unit prices. The total contract cost for this extra work is $12,642.19. The total contract
cost including extra work is $37,462.19.
ACTION: Approved Contract Change Order No. I in the amount of $12,642.19 to Elite
Bobcat Service, Inc. for extra work on an original contract amount of $24,820.00 due to
I) Issues of extremely wet subgrade impacted by trash trucks; and 2) Conformance with
the Americans with Disabilities Act requirements for access ramps.
FISCAL IMPACT: Funds are budgeted and available in the following account:
530-5011-483300-5108 $12,642.19 Drainage Districts
Fairway Dr. Cross Gutter Improvements
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November 25, 2003
3. CONSENT CALENDAR (Continued)
3.17 Contract Change Order No.1 and Final; Bid No. 023-21; Project No. D-142 Shaffer
Street Storm Drain Improvements. (A2100.0 AGR-4265)
SUMMARY: This Contract Change Order authorizes payment for extra work at agreed
unit prices. The total contract cost for this extra work is $22,188.24. Total construction
cost including extra work is $402,138.24.
ACTION: Approved Contract Change Order No. I in the amount of $22,188.24 to K.C.
Construction Company for the extra work.
FISCAL IMPACT: Funds are budgeted and available in the following account:
310-9645-483400-5379 $ 37,000.00 CDBG Shaffer Storm Drain Phase I
3.18 Award of Bid No. 034-33 to Western Power Industrial, Inc. for installation of a new
emergency generator at Fire Headquarters. (A21 00.0 AGR-4396)
SUMMARY: The existing generator at Fire Headquarters is 33 years old and is
inadequate to meet the requirements of the facility in case of an outage. This contract
will replace the old generator with a new, diesel-powered unit that will exceed the load
demand of the facility by ten percent.
ACTION: Awarded contract in the amount of $62,000 to Western Power Industrial, Inc.
for installation of a new emergency generator at Fire Headquarters and authorized Mayor
and City Clerk to execute on behalf ofthe City.
FISCAL IMPACT: Funds in the amount of $102,043 are available in account number
120-5028-481301-9824 (Fire Headquarters Emergency Generator).
3.19 Award of Contract - Bid No. 034-14, Annual Street Maintenance Asphalt Concrete
Overlay at Various Locations, Fiscal Year 2003-04; SP-3456. (A2100.0 AGR-
1784.A)
SUMMARY: The bids were opened on October 30, 2003. Seven (7) bidders responded
to the invitation for bids. The apparent low bidder is All American Asphalt of Corona for
$732,732.00. The Engineer's Estimate is $934,026.00, which is 27.5% higher than the
low bid.
ACTION: Awarded the contract in the amount of $732,732.00 to All American Asphalt,
P.O. Box 2229, Corona, CA 92878, and authorized the Mayor and City Clerk to execute
on behalf of the City.
FISCAL IMPACT: Funds are available in Operating Budget and Capital Improvement
Project in the following accounts:
262-5021-483300-3120 $1,000,000
500-5021-4811 05-4997 $ 150.000
Total: $1,150,000
Local Street Maintenance
Municipal Parking Lot Maintenance
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CITY COUNCIL MINUTES
November 25, 2003
3. CONSENT CALENDAR (Continued)
3.20 Award of Contract - Bid No. 034-09; CDBG Projects: Shaffer Street Storm Drain
Improvements Phase II from Culver Avenue to Palmyra Avenue (D-148); and
Shaffer Avenue Storm Drain Improvements Phase III from Palmyra Avenue to
Almond Avenue (D-149). (A2100.0 AGR-4397)
SUMMARY: The bids were opened on October 9, 2003. Seven (7) bidders responded to
the invitation for bids. The apparent low bidder is Mladen Grbavac Construction of
Arcadia for a combined total of$421,720.00.
ACTION: Awarded the contract in the amount of $421,720.00 to Mladen Grbavac
Construction and authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMPACT: Funds are budgeted and are available in the Capital Improvement
Program FY 2003-04 in the following accounts:
310-9645-483400-5380
310-9645-483400-5326
CDBG Shaffer Storm Drain Phase II
CDBG Shaffer Storm Drain Phase ill
Total
$325,000
$325.000
$650,000
3.21 Mills Act Contract No. MAC-I02.0-03, (Historic Property Preservation
Agreements). (A2100.0 AGR-4398)
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 $83,000. Location: 260 S. Shaffer Street.
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between the City of Orange and the property owner, (application No. MAC-102.0-03),
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 $296 per
year.
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CITY COUNCIL MINUTES
November 25,2003
3. CONSENT CALENDAR (Coutinued)
3.22 Mills Act Contract No. MAC-I04.0-03, (Historic Property Preservation
Agreements). (A2100.0 AGR-4399)
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 $132,333. Location: 803 W. Palm Avenue.
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between the City of Orange and the property owner, (application No. MAC-104.0-03),
for the preservation, restoration and/or rehabilitation of a qualified historic property in
exchange for a reduced property tax assessment.
FISCAL IMPACT: Due to the long term prior ownership of the property the City only
receives $52 in property taxes, with the stepped up basis of the new sale, including the
estimated tax savings on the Mills Contract the City will realize a gain in property tax of
approximately $232 per year.
3.23 Mills Act Contract No. MAC-l 05.0-03, (Historic Property Preservation
Agreements). (A2100.0-4400)
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 $51,135. Location: 251 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-l05.0-03),
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 $335 per
year.
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CITY COUNCIL MINUTES
November 25,2003
3. CONSENT CALENDAR (Continued)
GRANT
3.24 Grant from Tenet Healthcare Foundation for support of the Youth Services Bureau
Strategic Home Intervention and Early Leadership Development (SHIELD)
Program. (C2500.K)
SUMMARY: Tenet Healthcare Foundation, on behalf of Chapman Medical Center has
selected the Police Department's SHIELD Program as a beneficiary of funds
ACTION: Accepted the donation of $1,000 from Tenet Healthcare Foundation, which
has been deposited in account 100-4031-264950-2306 (other grant revenue) and
appropriated $1,000 to account 100-4031-441600-2306 (Detectives-Miscellaneous
Expenditures-SHIELD Program); and amended the FY 2003-04 Revenue Budget in the
General Fund in the amount of $1,000 to reflect the receipt of the amount of the Tenet
Healthcare Foundation Grant.
FISCAL IMP ACT: There will be no impact to the General Fund as Tenet Healthcare
Foundation has awarded the funds. After appropriation, funds will be available in the
Detective Program budget as follows:
100-4031-441600-2306 $1,000 Miscellaneous Expenditures-SHIELD
MOTION - Alvarez
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Mayor pro tern Cavecche abstained on Item 3.3 as she was absent from a portion of the
November 12, 2003 meeting. All other items on the Consent Calendar were approved as
recommended.
END OF CONSENT CALENDAR
4. REPORTS FROM MAYOR MURPHY
4.1 Appointment of Design Review Committee member; term to expire June 30, 2007.
Mayor Murphy nominated Mr. Donnie DeWees for appointment to the Design Review
Committee.
MOTION - Coontz
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to appoint Donnie DeWees to the Design Review Committee; term to expire June 30,
2007.
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CITY COUNCIL MINUTES
November 25, 2003
5. REPORTS FROM COUNCILMEMBERS
5.1 Report from the City Attorney concerning the filling of a vacancy created by the
resignation of Cassandra Cathcart, City Clerk on December 2, 2003. (C2500.C)
MOTION - Murphy
SECOND - Cavecche
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to appoint Mary E. Murphy as City Clerk to become effective upon the swearing in
ceremony at the December 9, 2003 Council meeting and as Chief Clerk to become effective
December 3, 2003, both positions to be held for the City's Clerk's unexpired term.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
7.
ADMINISTRATIVE REPORTS
TAPE 920
7.1 Report from the Community Development Director regarding a proposed
agreement with Cotton/Bridges/Associates, a Division of P & D Consultants, to perform a
comprehensive General Plan Update aud associated environmental impact report.
(A2100.0 AGR-440l)
SUMMARY: The City of Orange 2003-2004 to 2009-2010 Capital Improvement Program
includes the General Plan Update as Land Use Project No. 9801. The proposed project involves
a complete update of the City's 1989 General Plan, including the integration of the East Orange
General Plan into a single, comprehensive General Plan document. Preparation of an
environmental impact report for the updated General Plan is also included in the work effort.
Alice Angus, Community Development Director, provided a report. In response to Council
questions, she reviewed various community outreach opportunities, such as committee work,
interviews, a website and newsletters. She also reported the proposed advisory committee is a
staff level technical committee as opposed to an outreach, independent advisory committee. She
clarified that specific plans and elements such as the Circulation Element, Historic Element and
the Historic Inventory are included in this plan; and there will be good continuity.
Council discussed the importance of community outreach, especially in West Orange and North
Orange; and staff and consultants were thanked for a great detailed project. It was suggested
there be an informal meeting with Cotton/Bridges/Associates.
MOTION - Murphy
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ACTION: I) Approved the agreement with Cotton/Bridges/Associates, a Division of P & D
Consultants, as the consulting team to perform the comprehensive General Plan update and
associated environmental impact report in the amount of $977,443.00; and authorized the Mayor
and City Clerk to execute on behalf of the City.
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2) Authorized an appropriation from the unreserved Fund Balance of the Capital Projects Fund
to 500-6011-485100-9801 (Capital Improvement Project - General Plan Update) in the amount
of $277,443.00
8. REPORTS FROM CITY MANAGER - None.
9. LEGAL AFFAIRS - None.
10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY
11. RECESS TO CLOSED SESSION
The City Council recessed at 5: 13 p.m. to a Closed Session for the following purposes:
a. Conference with Legal Counsel - Significant exposure to litigation pursuant to Government
Code Section 54956.9(b). (two potential cases).
1) Orange Unified School District Claim for Redevelopment Tax Money
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 1220
Mary Dargatz, 2534 E. Burly, thanked Cassie Cathcart, City Clerk, for her professionalism and
years of service to the community, upon her retirement.
Mel Vernon, 1203 E. Hoover, spoke on the Recreational Vehicle issue.
13. PUBLIC HEARINGS
13.1 TAX EXEMPT FINANCING TO BE UNDERTAKEN BY THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT ST.
JOSEPH HEALTH SYSTEM AND ITS AFFILIATES. (C2500.J)
Time set for public hearing to consider tax-exempt bond financing issued by the California
Statewide Communities Development Authority in an aggregate principal amount not to exceed
$300,000,000 for the purpose of, among other things, refinancing the acquisition, improvement
and equipping certain health facilities owned or operated by St. Joseph Hospital of Orange and
St. Joseph Health System located in the City of Orange. Pursuant to Section 147(f) of the
Internal Revenue Code of 1986, the issuance of the bonds by the Authority must be approved by
the City because the health facilities are located within the City of Orange. The Citv of Orange
does not have financialliabilitv for the issuance of this debt.
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November 25, 2003
Mr. Rich Jacobs, Interim Finance Director, provided a report.
MAYOR MURPHY OPENED THE PUBLIC HEARING
THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING
Council Action
RESOLUTION 9787
A Resolution of the City Council of the City of Orange approving a tax-exempt bond financing
to be issued by the California Statewide Communities Development Authority to benefit St.
Joseph Health System and certain affiliates
MOTION - Coontz
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to adopt Resolution No. 9787.
14.
ADMINISTRATIVE REPORTS
TAPE 1420
14.1 Report from the City Attorney and City Clerk regarding the Referendum against
Resolution No. 9778, Fieldstone Communities Development. (A4000.0)
David DeBerry, City Attorney, explained the various options available to the Council. On
October 14, 2003 the City Council adopted various land use regulations including a General Plan
Amendment that would permit the development of approximately 110 acres with 66 acres of low
density residential and 44 acres of open space, trails and parks. Opponents of this particular
project circulated a referendum petition in an effort to have this proposed General Plan
Amendment put to the voters of the City. The Orange County Registrar has ascertained that the
required number of signatures, 5,847, which represents ten percent ofthe City's registered voters
from the last election have signed the referendum petitions to qualify it for an election. As a
result, the effective date of the General Plan Amendment, Resolution No. 9778 has been
suspended by state law. The City Clerk has accepted the referendum petition as substantially
complying with the Elections Code, also in accordance with state law. The primary decision
that needs to be made by the City Council is either to repeal Resolution 9778 or put the matter
before the voters in a general or special election. Mr. DeBerry then reviewed the Resolutions for
the various options available to the Council.
Mayor pro tem Cavecche asked about the proposed verbage that would be on the ballot. She
asked ifthe phrasing was specifically laid out in state law.
Mr. DeBerry stated how the language is framed is laid out. The City Council has some discretion
on how the language should appear, but there is a requirement in the Election Code that provides
that the ballot must have the printed words "Shall the", and then requires the number of the
Resolution and also the nature of the Resolution, and "be adopted". The question is always
going to be in the affirmative.
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14. ADMINISTRATIVE REPORTS (Continued)
Mayor pro tern Cavecche clarified that the Council may have discretion about the actual
verbage.
Mr. DeBerry explained the Council could mandate that the entire title of the Resolution be part
of the question.
Councilmember Alvarez asked if the original resolution were repealed, whether at this meeting
or at a future election, when the applicant could come back with a proposal; and what would
trigger that.
Mr. DeBerry explained the Election Code prohibits the City Council from considering the
resolution for one year from the date it is either repealed or from the date it fails to pass in an
election. That has been interpreted as considering a resolution which is essentially similar,
which can lead to a subjective decision as to whether or not a future project is essentially or
substantially similar.
Councilmember Alvarez asked what the threshold would be to constitute a similar project.
Mr. DeBerry explained the court would look at several things, such as whether the Council is
acting in good faith, or whether the Council is attempting to put in the same project, but with a
different label on it. Another consideration would be whether or not the revised project attempts
to address concerns that have been voiced by the proponents for the referendum. And another
consideration would be looking at a percentage difference in the land use. Until a project was
brought forward, it is difficult to give an opinion on whether a court would think that particular
proposal is essentially the same or substantially similar.
Councilmember Ambriz noted the County Registrar verified 5,852 signatures on the referendum
petition; however other documents state the required signatures if 5,847; and asked for
clarification on these numbers.
Mr. DeBerry explained the required number of signatures is 5,847, but the County provides a
cushion in the event a signature may be found to be invalid in the future.
Public Comments
The following people spoke in favor of repealing Resolution No. 9778. Their concerns included:
the need for more parks and open space; over 9,000 signatures were gathered in favor of
repealing this Resolution; rescinding the resolution would avoid the expense of a special
election; referendum proponents will actively pursue funding to transform this site.
. Stefanie Holcomb, address on file
. Greg Holcomb, address on file
. Oz Enderby, 6719 E. Oak Lane
. Carter James, 5849 Valley Forge
. Melinda Moore, address on file,
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November 25, 2003
14. ADMINISTRATIVE REPORTS (Continued)
The following people spoke in favor of calling an election. Their concerns included:
development is needed to cover the expense of remediating the site; the need for more housing
to address a housing shortage; let the citizens decide at the ballot; Orange Park Acres
community will lose ownership of the equestrian arena without this development.
. Steve Cameron, Fieldstone Communities
. Mike Balsamo, Building Industry Association
. John Cox, 2545 N. Mustang
. Tom Davidson, address on file
TAPE 2625
Council Comments
Mr. DeBerry noted the offer to close the existing operation at the site after three years was
contingent upon Hanson thinking they needed a Conditional Use Permit. When it was
determined they did not need a Conditional Use Permit, that offer was withdrawn. So there is no
offer on the table for the operation that is currently out there to close within three years. He also
noted there have been a significant number of comments that encourage the City Council to
repeal the General Plan Amendments because the community wants this as a public park. He has
said before that it is inappropriate for the City Council to turn down a development because it
wants to put the property to a public use. This exposes the City Council to inverse condemnation
liability, which means the property owner can say that his constitutional rights have been
violated, and that the government has essentially taken the property for public purpose. If the
court agrees, the City Council is then in a position of having to buy the property. So while that
is a concern of the community, that can not be the rationale for the City Council repealing the
Resolution or calling a special election. Understanding the comments, the City Council will
have to have other considerations in mind if it decides to repeal the Resolution.
TAPE 2720
Mayor pro tem Cavecche stated a comment was made about ballot box planning; and as someone
who voted against this project in the beginning, she couldn't agree more. She is completely
against ballot box planning and any type of No Growth that any cities do at all. She did not see
this as a ballot box planning mechanism. This referendum came about because of a specific
project; and this community is reacting because of a specific project and the way it is going to
affect the community versus a general consensus about growth. She has gone on the record with
the proponents of this referendum that in no way would she ever go on the record of supporting
No Growth or Slow Growth or a sweeping general plan ballot box proponent in the City of
Orange. Actually, she would actively oppose it. But the community seems to have just reacted
specifically to this proj ect, so she wanted to go on the record on this. She was surprised, and
would have bet against, the signatures being gathered for this. She did not think this group was
going to be able to get this many signatures in 30 days. The community seems to have really
spoken on this.
TAPE 2810
Councilmember Ambriz noted the comment made about ballot box planning not being the best
public policy; but also, there is nothing stronger than the heart of a volunteer. And the
volunteers have rallied together and made a strong statement.
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CITY COUNCIL MINUTES
November 25, 2003
14. ADMINISTRATIVE REPORTS (Continued)
TAPE 2825
Mayor Murphy stated this is a tough one. Everybody that has been around it, knows it. It's
been tough for four years and continues to be tough today. He has lived in Orange his whole life
and this is the first time he remembers seeing so much divisiveness and division in a community
over a single project. He doesn't have the same history as some of the other Councilmembers,
so maybe there have been others like this previously, but his one single observation is that this is
not the Orange way to get to a project that works in a community. Historically, proponents
typically come to compromises. They sit down with the parties involved and work something
out that the community can really get behind. And if the last 30 days are any indication, he has
no reason to believe that if this is moved forward to an election, that it won't become that much
more divisive and destructive to the citizens and to the community at large. He is not willing to
put the community through this any longer. He will support a motion to rescind the action
previously to allow the community to take another look at it in general. It doesn't rule anything
in and it doesn't rule anything out. But he has seen neighbors that don't talk to each other right
now; sees things going on that shouldn't be going on, and they ought to be focused on what can
be done collectively rather than what shouldn't or can't be done. It is just not the way business
should be transacted in Orange, and he won't be a part of this particular part of the process. It's
just not the Orange way. With great deliberation and consternation and study on his part, he
would support a motion to rescind the action in Resolution No. 9797 and afford all parties to
really take another look at it.
TAPE 2900
Councilmember Alvarez stated he has gone through all the information. He believes there is a
good project here. He supported it with his vote then and nothing really has happened to change
that in terms of the project. There have been projects in the past, recalling the Carmax project,
where he was convinced that a lot of times you need to wait for a better project to come along.
They did that for four years with Fieldstone working hard at it, that they had arrived at that point.
And after the approval, it's too bad that this project had really divided up this community. That
was a real shame. It shouldn't have been allowed to happen and that isn't something that the
Council shared in, but it was just part of the process. The referendum process is there - it's part
of the system; basically checks and balances. He recalled being the lone Councilman years ago
pushing Measure W. He can appreciate what it takes to get signatures. So many things were
thrown at the proponents in gathering signatures, that he thought if they got anything done, he
would have to take his hat off to them. There were a lot of comments about how they collected
the signatures - but to him that wasn't as important as the desire to get people involved; and
hearing from the speakers today, they learned what the City of Orange wants. He did not know
what they could do in a referendum; and he tipped his hat to them for getting 9,000 votes. And
what that means to him is that people are watching what the Council is doing and watching what
is happening in the City. The process of taking this to an election is a very expensive one. Even
the signature collection and the verification has been an expense, not only for the people
collecting them but for the City to pay for the County to verify them. As the process began to
wind down, it became a no-win situation and became a situation that he felt real uncomfortable
with of everybody having to defend the project, trying to get people to sign the petition. It
became a process that he did not want to put the citizens through. It's not that he does not want
the citizens to vote on anything - any time you can get people to the voting booth is a victory. It
had to do with the fact that during those 30 days, a lot of things went on that were very
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CITY COUNCIL MINUTES
November 25, 2003
14. ADMINISTRATIVE REPORTS (Continued)
discouraging. The only bright light was that 9,000 took the time to write their signature down;
and it was almost like a poll to him. If that number is reached, in a small election the results
would be the same. So with that, he came to the conclusion that there is a project there; that
they're going to have to sharpen their pencils and come up with a project that most of the
community can accept. It's been demonstrated that the project is not there that the community
can get behind. It's important that Fieldstone be encouraged, if they want, to redesign it and try
again, or the referendum people can get out there and try to make something happen. He does
not want to put the City through any more. That is important. He did not think the people in
Orange Park Acres will lose the arena, because nobody, whether for or against, wants to see that
lifestyle threatened. What is best for the City is to pull the plug on it at this point and send
Fieldstone back to the drawing board and everybody else can hope they can have some impact
and see a project in the future that would be more acceptable.
TAPE 3105
Councilmember Coontz stated it is not clear to her what has changed in the last couple of weeks.
The proj ect has not changed. The referendum though has proceeded legally towards an election
which is what the people who were obtaining the signatures wanted it to do. This is surprising to
her as this is a small window on the entire community. Understanding that she voted for the
project, she still believes in the elective process. This is a representative democracy and
occasionally the community may need to participate in the direct elective processes on issues,
which was found recently. To have taken this issue so far, and not give the community a chance
to respond to the ballot box is really very disappointing. It does not make sense. And this is
from someone who voted for the project. She was concerned that Mayor Murphy and
Councilmember Alvarez knew something that the rest of them did not know, because this has
only occurred through a little conversation in the last couple of days and nobody has given her a
good reason, as a Councilwoman, from the other members who are promoting this, as to why.
There is no proof one way or the other how this is going to go. It could go in favor of the people
who went out and got these signatures; or it may go the other way. She has no way of knowing.
As far as polls go, polls change. Anyone in politics knows that. And many election polls are
taken regularly as the shift of understanding and information goes out. She did not understand
how the Mayor could not retain his commitment and conviction to the way he voted earlier. She
stated she will do what she thinks is best to do, but it doesn't make any sense. She also did not
understand why the success of the taking of the signatures should make a change in going
forward with the election, from either side. It does not make sense. To truly understand what
the community thinks, this small window should not be looked at and determine this is the way
it's going to go. Otherwise, the Council is abdicating their role as elected officials. The Council
should let this go to the ballot and let everybody in the community who wants to vote, vote for it
or against it. That makes more sense; otherwise the Council is not following their oath or
following the elected representative role that they've been told they're supposed to play.
TAPE 3215
Mayor Murphy stated he respected Councilmember Coontz to have an opinion different from
his; however, it has not changed his beliefs and assessment of the situation. If there were not
alternatives along the way in the public process for elected officials to look at the alternatives
and make decisions that they feel best represent to them the options, then the option to rescind at
this point would not be a part of the Election Code and part of the process. While he can agree to
disagree with other Councilmembers, the alternatives are there for the Council to consider and he
PAGE 17
CITY COUNCIL MINUTES
November 25, 2003
will stand by his previous comments in terms of the community speaking, the project itself or
the debate on that project being divisive in terms of neighbors not speaking to each other; and
further debate along this line is destructive and he feels there is a more positive and appropriate
way to go.
Councilmember Coontz stated that anyone who has walked during an election, or has recruited
people for elected positions, knows that people won't speak to each other; but it's a very
temporary situation and doesn't last for a long time. She has gone through this since 1961, and
to say the community is upset - maybe they are and maybe they're not. Most people don't care
about anything, because they don't vote and go after the information. Just look at the voting
records - the percentage who vote in a community is very low. The percentage of those
registered to vote is very low.
Councilmember Ambriz stated he is prepared to make a motion. The people in the audience
have spent too many hours in the Council Chambers waiting for a decision.
Councilmember Coontz stated she has said her peace and she still feels that way but will vote for
the rescinding because it is obvious by the numbers where this is going to go.
RESOLUTION NO. 9797
A Resolution of the City Council of the City of Orange rescinding and repealing Resolution No.
9778, which amended the City's General Plan on a 11O-acre site to permit the development of a
project proposed by Fieldstone Communities.
MOTION - Ambriz
SECOND - Murphy
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to adopt Resolution No. 9797.
15. PLANNING AND ENVIRONMENT - None.
16. ADJOURNMENT
MOTION - Cavecche
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
The City Council adjourned at 8:10 p.m. to an Adjourned Regular Meeting, Study Session,
December 9, 2003 at 3:00 p.m., in Conference Room C to review specific aspects of the East
Orange Development Plan.
The next regular City Council meeting is scheduled for December 9,2003 at 4:30 p.m.
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