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1/13/2004 - Council Minutes - CC Minutes Reg Meeting APPROVED BY THE CITY COUNCIL ON JANUARY 27, 2004 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING January 13, 2004 The City Council of the City of Orange, California convened on January 13, 2004 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 Father Chris Heath, La Purisima Catholic Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilmember Steve Ambriz 1.3 ROLL CALL PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ABSENT - None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Joe Greenwald, YMCA Longhouse Medicine Man, and his daughter Jessica and son Kyle presented a challenge to the Mayor and Councilmembers to participate in the Indian 500 Chiefs Race, at 11:30 a.m. on Saturday, January 31,2004 at the Village of Orange. Presentation of William "Willie" McPherson historical photo collection, by San Juan Capistrano Historical Society Director-Archivist Don Tryon was made to Library Board of Trustees Chairperson Doug Westfall and Library Services Director Nora Jacob. Note: Item 4.1 was brought forward and approved in conjunction with this item. Mayor Murphy announced that the City Council would adjourn in memory of Mary McAnena, Orange resident and founder of Mary's Kitchen. The Council shared thoughts of Mary McAnena; and it was noted that Mr. And Mrs. Greinke have volunteered their services to assist in the management of the Mary's Kitchen organization and are seeking information about the possibility of making the site permanent. The volunteers of Mary's Kitchen noted their lease is up at the end of June and will be seeking an extension or are investigating the possibility of purchasing the property. 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 PAGE 1 - r- -- --- CITY COUNCIL MINUTES January 13, 2004 3. CONSENT CALENDAR (Continued) 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, Mary E. Murphy, declaring posting of the City Council Agenda of a Regular Meeting of January 13, 2004 at Orange Civic Center City Clerk's Office, north facing kiosk, Main Library at 101 N. Center Street, Police Facility at 1107 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 ofthe City Clerk. 3.2 Request Council Confirmation of warrant registers dated December 4, 11, 18, 24, 2003. ACTION: Approved. 3.3 Request approval of City Council Minutes, Adjourned Regular Meeting December 9, 2003, Regular Meeting December 9, 2003 and December 23, 2003, (C2500,D.4) ACTION: Approved. 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, period ending November 30, 2003, (C2500,F) ACTION: Approved. 3.6 Receive and file the audited financial statements and related financial reports for the year ended June 30, 2003. (C2500,J.1.3) ACTION: Approved. (REMOVED AND HEARD SEPARATELY) Tape 792 3.7 Receive and file Annual Financial Reports for Development Impact Fees. (C2500,J) Councilmember Coontz asked about the parking in-lieu fees, particularly as they relate to Old Towne. She spoke on the problems in the north parking lot behind Wells Fargo, which continues to have problems and both the lots and streets are affected by the Presbyterian Church, Chapman Chapel and YWCA There is a lack of control and the City needs to look into this. The City Manager was directed to provide a report about in-lieu fees, parking problems in Old Towne, both on lots and the streets and possible solutions. MOTION SECOND AYES - Coontz - Alvarez _ Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche PAGE 2 CITY COUNCIL MINUTES January 13, 2004 3. CONSENT CALENDAR (Continued) ACTION: Approved. AGREEMENTS 3.8 Approve renewal of amended contract with PacifiC are Life and Health Insurance Company to provide vision insurance henefits for city retired employees effective January 1, 2004. (A2l00.0 AGR-2939.B.2) SUMMARY: The City currently contracts with PacifiC are Life and Health Insurance Company to provide vision insurance benefits to retired City of Orange employees. Staff conducted an open bid process through the City's insurance broker Mercer Human Resources Consulting to determine if there were other insurance programs with richer benefit levels at a premium rate equal to the existing PacifiCare Vision plan. The PacifiCare Vision plan covers both current City employees and retired employees. PacifiCare Vision Insurance has presented a 12-month renewal (January I, 2004 through December 31, 2004) with no additional rate increase. ACTION: Approved a 12-month contract with PacifiC are Life and Health Insurance Company for retired 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 PacifiCare Life and Health Insurance Company for vision benefits are paid through current enrolled retired personnel contributions. Retired personnel are responsible for meeting the cost required to continue this benefit. 3.9 Agreement with St. Joseph's for Reimbursement for Cost of Traffic Surveillance System. (A2100.0 AGR-4374.A) SUMMARY: The subject agreement will require future development in a specified benefit area to contribute to the costs ofa traffic surveillance system on La Veta Avenue, extending from Main Street to Parker Street. As part of the City Council's recent approval of the St. Joseph's redevelopment of its hospital, St. Joseph's was required to pay for the traffic surveillance system. This agreement would reimburse St. Joseph's for a portion of this cost should future development in the benefit area occur. ACTION: Approved and authorized the Mayor and City Clerk to execute the Reimbursement Agreement for Cost of Traffic Surveillance System. FISCAL IMP ACT: None. PAGE 3 U1" CITY COUNCIL MINUTES January 13, 2004 3. CONSENT CALENDAR (Continued) 3.10 Agreement for the transfer of ownership of the Police Service Dog, Ando, currently assigned to the Police Department's Canine Team from the City of Orange to Canine Officer Jeff Walloch. (A2100.0 AGR-4417) SUMMARY: Canine Officer Jeff Walloch has been assigned to the police Department's Canine Team for the past five years with Ando as his canine partner. Due to age, Ando has reached the end of service duty. As Ando has lived with the Walloch family for the past five years while Officer Walloch has been the dog's handler, it is the Police Department's recommendation that his ownership be transferred from the City of Orange to Officer Jeff Walloch. ACTION: Approved the Agreement transferring ownership of Ando to Officer Jeff Walloch and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMP ACT: None. 3.11 First Amendment to Agreement with Recovr X, Inc. for sidewalk cleaning services in the Plaza, Plaza Park, and Metrolink Station. (A2100.0 AGR-4201.l) SUMMARY: The City currently has an agreement with Recovr X, Inc. for environmental cleaning services of the concrete sidewalks in the Plaza, Plaza Park, and the Metrolink station. The service includes the cleaning ofthe outdoor dining areas in the Plaza. A portion of the funding for this agreement is the revenue received from the outdoor dining permits. The current agreement provides for an extension. ACTION: Approved First Amendment to Agreement for sidewalk cleaning with Recovr X, Inc. to June 30, 2004 and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Total of agreement not to exceed $46,000.00. Funding is currently available as follows: 100-5022-427100 220-5022-427100 940-9800-424500 Contractual Services Sanitation - Contractual Services Redevelopment - Other Maintenance Services $29,120.00 $ 9,470.00 $ 7,410.00 3,12 Attorney Services Agreement with the Law Firm of Woodruff, Spradlin & Smart for personnel legal services. (A2100.0 AGR-2886,I.E) SUMMARY: The City Attorney's office utilizes the law firm of Woodruff, Spradlin & Smart to assist it in providing legal services in connection with personnel, police and general liability matters. The proposed contract is for an amount not to exceed $50,000 for personnel legal services. PAGE 4 CITY COUNCIL MINUTES January 13, 2004 3, CONSENT CALENDAR (Continued) ACTION: Approved and authorized the Mayor and City Clerk to execute the proposed contract with Woodruff, Spradlin & Smart for a total sum of $50,000. FISCAL IMPACT: Sufficient funds are available in Legal Services Account No. 100- 0301-426111. APPROPRlA TIONS 3.13 Appropriation of Transportation Equity Act for the 21 sl Century for the Santiago Creek Bike Trail Bridge Project and Approval of the Fourth Amendment to Professional Services Agreement between the City and KFM Engineering, Inc. for design services for the Santiago Creek Bike Trail Bridge, (A2100,O AGR-3505.4) SUMMARY: The City of Orange has been awarded $375,000 in Federal Transportation Equity Act (TEA) competitive grant funds administered by the Orange County Transportation Authority (OCTA) for the Santiago Creek Bike Trail Bridge Project. In addition to allocating required matching funds, the City needs to appropriate these grant funds and approve a fourth amendment to professional services agreement between the City and KFM Engineering, Inc. in an amount not to exceed $32,940 for design services for the Santiago Creek Bike Trail Bridge. ACTION: Appropriated $375,000 in TEA grant funds in account 550-7021-485100- 6102 (Santiago Creek Bike Trail Bridge); amended the revenue budget in the amount of $375,000 in account 550-7021-261500-6102 (Santiago Creek Bike Trail Bridge); approved appropriation transfer in the amount of $125,000 from 550-5011-486700-6099 (Santiago Creek Bike Trail) to 550-7021-485100-6102 (Santiago Creek Bike Trail Bridge); approved the fourth amendment to professional services agreement between the City and KFM Engineering, Inc., in an amount not to exceed $32,940 for design services of the Santiago Creek Trail Bridge; and authorized the Mayor and City Clerk to execute the amended agreement on behalf of the City. FISCAL IMPACT: After approval of the appropriation and transfer, sufficient funds will be available in the following account: 550-7021-485100-6102 Santiago Creek Bike Trail Bridge $500,000 3.14 Assembly Bill (AB) 3229 grant money for funding of Police support personnel. (C2500.K) SUMMARY: AB 3229 makes funds available under the FY 2003 Citizen's Option for Public Safety (COPS) Program in the Governor's budget. The City of Orange was awarded $200,356.25 and proposes to continue funding the civilian police support positions using FY 2003 AB 3229 COPS Program Funds. These positions enhance the Police Department's ability to place sworn Police Officers in the field. PAGE 5 ~ -~, - n ---- -r CITY COUNCIL MINUTES January 13, 2004 3. CONSENT CALENDAR (Continued) ACTION: Allocated the $200,356.25 FY 2003 COPS grant award to continue funding four (4) full-time and two (2) part-time civilian positions through June 30, 2005. FISCAL IMPACT: The City of Orange was awarded $200,356.25 through the FY 2003 COPS grant program. These funds have been placed in a separate fund (354 - AB 3229 Supplemental Law Enforcement Services) and cannot be transferred to or intermingled with other funds, except to facilitate appropriation and expenditures by the statute. Interest earnings in Fund 354 will also be allocated to payroll expenditures for the six (6) positions. This award will support the allocation plan and the approval does not require a budget adjustment. 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, it is the recommendation of the City Attorney's Office that the claim(s) be denied. a. Edna Garcia b. Shasta Segal c. Annette Vanderhoff d. George Wang ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. CONTRACTS 3.16 Award of Contracts - Bid No. 034-22; (1) Project No, SP-3420, AHRP (Arterial Highway Rehabilitation Program) Project - Garden Grove Blvd, Pavement Rehabilitation from The City Drive to Park Vine Street; (2) Project No. SP-3421, The City Drive Pavement Rehabilitation from Garden Grove Blvd. to 300 feet South of the 22 Freeway, (A2100,O AGR-4418) SUMMARY: The bids were opened on December 9,2003. Eight (8) bidders responded to the invitation for bids. The apparent low bidder is R.J. Noble Company for $253,160.20, for the total of both projects. The Engineer's Estimate is $452,265.00. ACTION: I) Awarded a contract in the amount of $95,508.60 to R.I. Noble Company, for Garden Grove Blvd Pavement Rehabilitation from The City Drive to Park Vine Street (SP-3420), and authorized the Mayor and City Clerk to execute on behalf of the City. 2) Awarded a contract in the amount of $157,651.60 to R.I. Noble for The City Drive Pavement Rehabilitation from Garden Grove Blvd to 300 feet South of the 22 Freeway (SP-3421), and authorized the Mayor and City Clerk to execute on behalf of the City. PAGE 6 -------~~-------------~~_.-~--_._- CITY COUNCIL MINUTES January 13, 2004 3, CONSENT CALENDAR (Continued) FISCAL IMP ACT: Funds are budgeted and are available in the Capital Improvement Program in the following accounts: Garden Grove Blvd. Pavement Rehabilitation from The City Drive to Park Vine Street (SP-3420) 550-5011-483300-3223 272-5011-483300-3223 262-5011-483300-3223 Total $233,879 $119,625 $144,846 $498,350 AHRP Gas Tax 2105 Measure"M" The City Drive Pavement Rehabilitation from Garden Grove Blvd. to 300 feet South of the 22 Freeway (SP-3421) 550-5011-483300-3212 272-5011-483300-3212 262-5011-483300-3212 Total $159,198 $ 72,095 $ 99.190 $330,483 AHRP Gas Tax 2105 Measure"M" 3.17 Award of Contract - Bid No. 034-07j Project No. SP-3446j Hewes Street Interim Safety Improvements from Bond Avenue to 600 feet North of Rancho Santiago Boulevard. (A2100.0 AGR-4420) SUMMARY: The bids were opened on November 20, 2003. Thirteen (13) bidders responded to the invitation for bids. The apparent low bidder is TMT Development Co., Inc. (TK Engineering Co.) of Los Angeles for $88,091.50. The Engineer's Estimate is $89,678.00, which is 1.8% higher than the low bid. ACTION: Awarded the contract in the amount of $88,091.50 to TMT Development Co., Inc. (TK Engineering Co.) and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMP ACT: Funds are budgeted and are available in the Capital Improvement Program FY 2003-04 in the following accounts: 550-5011-483300-3243 Total $135,000 $493,000 Transportation System Improvement Program (TSlP Area "COO) Developer Contribution 285-5011-483300-3243 $358,000 3.18 Contract Agreement with Evans Consoles Incorporated. (AZI00.0 AGR-442I) SUMMARY: This will provide for installation of video displays and switching equipment as part of the construction of the City's new Traffic Surveillance and Management Center. PAGE 7 -.. ---------T------------------ CITY COUNCIL MINUTES January 13,2004 3. CONSENT CALENDAR (Continued) ACTION: Approved Contract Agreement with Evans Consoles, Inc. in the amount of $88,686.00 and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds are budgeted and available in the following account: 550-5032-483199-3126 285-5032-483199-3126 TSM ElectronicNisual Data Links TSM ElectronicNisual Data Links $65,186.00 23.500.00 $88,686.00 3.19 Final Acceptance of Bid No. 034-05 - Traffic Congestion Relief Funds (TCRF) Street Rehabilitation, FY 2002-2003 and authorization to file Notice of Completion with the County Recorder (No staff report reauired). (A2100.0 AGR-4336) SUMMARY: Bid No. 034-05 - TCRF Street Rehabilitation, FY 2002-2003. Contractor: Silvia Construction. Staff recommends acceptance of improvements. ACTION: Accepted public work improvement, authorized release of Fidelity and Deposit Company of Maryland, Bond No. 08655313, in the amount of$219,719.50, and authorized the Mayor and City Clerk to execute the Notice of Completion. FISCAL IMP ACT: None. PURCHASES 3.20 Purchase of street sweeper parts from Haaker Equipment Company on a sole source basis. (S4000.S.3.1.3) SUMMARY: Due to the increasing need for street sweeping in newly developed areas the Public Works Department has made increased use of older reserve street sweepers. The Public Works Department is requesting approval to purchase additional spare parts to maintain these sweepers from Haaker Equipment Company, a sole source supplier. ACTION: Authorized the Public Works Department to waive competitive bidding requirements and authorized the purchase of spare parts from Haaker Equipment Company as the sole source supplier, in an amount not to exceed $95,000. FISCAL IMPACT: Funds in the amount of $95,000 are available in Account No. 710- 5023-447100, Parts & Supplies. PAGE 8 -~~------_._"---"-~'- CITY COUNCIL MINUTES January 13, 2004 3. CONSENT CALENDAR (Continued) RESOLUTIONS (REMOVED AND HEARD SEPARATELY) 3.21 RESOLUTION NO. 9789 Tape 888 (C2500.K) A Resolution of the City Council of the City of Orange amending the Master Schedule of Fees and Charges as authorized by Orange Municipal Code Chapter 3.10 relating to Parking Fines. (Continued from December 9, 2003) Councilmember Coontz expressed concern that there was confusion on the part of the public about the fees collected from parking citations and those collected from traffic violations. She pointed out the fines from parking citations stay with the City but the City receives only a portion of the fines from traffic violations; and requested a report from the City Manager clarifying this issue. MOTION - Coontz SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved. Note: Councilmember Alvarez asked the City Manager to investigate the problems with "For Sale" cars parked near Katella and Handy. 3.32 RESOLUTION NO. 9803 (ORI800.0.8,1) A Resolution of the City Council of the City of Orange expressing appreciation to Leonard Fi1ner of the Design Review Committee for his four years of dedicated service. ACTION: Approved. 3.23 RESOLUTION NO. 9804 (C2500.M.16.1) A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 2003-04 adjusting lot lines of certain real property situated at 450, 474, 486 and 494 S. Estate Drive in the City of Orange, County of Orange, State of California. ACTION: Approved. 3.24 RESOLUTION NO. 9805 (C2500.G.5) A Resolution of the City Council of the City of Orange authorizing application for the Mobile Source Air Pollution Reduction Review Committee Fiscal Year 2003-04 Local Government Match Program. ACTION: Approved. PAGE 9 __ - - __,__.m CITY COUNCIL MINUTES January 13, 2004 3, CONSENT CALENDAR (Continued) 3,25 RESOLUTION NO, 9807 (C2500.N) A Resolution of the City Council of the City of Orange Authorizing Submission of an application for Grant Funds for the Urban Park Act of 2001 Program Under the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002. (Application for the Construction of a Gymnasium/Sports Center) ACTION: Approved. MOTION - Cavecche SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Items 3.7 and 3.21 were removed and heard separately. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR ******** 4, REPORTS FROM MAYOR MURPHY 4.1 Recommendation to rename the Main Library to Orange Public Library and History Center. (C2500.I) Note: This item was approved under Item 1.4, Presentations. Councilmember Coontz stated she would be donating a book about William McPherson to the Center. Nora Jacob, Library Services Director, spoke on the "history mysteries" that are regularly posted on the library's website which help in identifying old photographs. MOTION - Mayor Murphy SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved. 5. REPORTS FROM COUNCILMEMBERS 5.1 Councilmember Coontz - Request for follow up on the City's Unreinforced Masonry Building Remediation Program. Tape 973 Councilmember Coontz reported that she placed this issue on the Agenda as a result of a recent article in the Orange County Register which questioned the results of a City program to strengthen unreinforced masonry (URM) buildings, and there are a wealth of historic buildings in that category, primarily in the Plaza business district. PAGE 10 ....----.-~------------.~-.---.----r-- ~- ----- ---- CITY COUNCIL MINUTES January 13,2004 5. REPORTS FROM COUNCILMEMBERS (Continued) Councilmember Coontz further reported this was a wake up call as the City recognizes the value of even one life and safety issues are the Council's main policy directive. Recent earthquakes in California and throughout the world brought this issue to the attention ofthe press, and rightfully so. The newspaper article was informative enough to renew her taking action. She requested background information on the City's uilleinforced masonry retrofit program and the City Manager followed up with an interim memo, which the Council has received. In 1986, Senate Bill 47 was enacted mandating all California cities to adopt ordinances requiring the strengthening of uilleinforced masonry buildings. Shortly after, in 1987, the devastating Whittier Narrows earthquake occurred, and 200 residences and 30 business were badly damaged, the most severe damage was to structures built before 1930. At one of the State Historic Resources Conventions, emphasis was directed to each city to establish a URM Ordinance to protect historical buildings; and the conference leaders focused on Orange's Plaza District and the City's wealth of historic buildings. She immediately brought the issue back to the City Council and the City embarked on a full scale program to protect businesses and the community. A financial incentive, combining grants and City of Orange and Redevelopment participation began. The original list of buildings included some which were not actually reinforced masonry - St. John's Lutheran Church being one. Other buildings, like the former School District Administration building have been replaced by other structures. Staff has determined that 51 of 60 owners participated before the generous deadline of December of 1998. This is a much lower number of non-participators than shown in the newspaper article, but it is still a wake up calL Now there is a need to go back into the records and review the status of all structures previously listed and investigate new opportunities for the participation of the remammg owners. One proposal could be utilization of the Mills Act, which the Council recently approved to include businesses. The funding available under the Mills Act affects the City's receipt of property tax over a given number of years, but the value of business and community protection should be considered. Two other issues should be included in the City's review. One would be the status of the City's demolition ordinance, which was a concern to the Council at the time of the uilleinforced masonry decision. The other would be a review of the volunteer work done by local architects to promote restoration of Plaza building facades. Their work has not yet been officially accepted by Ordinance of the City CounciL Staff was directed to return with a report in 90 days. Councilmember Alvarez complimented the City on a good program, noting that some building owners chose not to participate in the past. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None. PAGE 11 "r U" CITY COUNCIL MINUTES January 13, 2004 7, ADMINISTRATIVE REPORTS Tape 1172 7.1 Report from City Attorney regarding Review of Campaign Contribution Limits, (A2500.0 Campaign Contributions) SUMMARY: Section 2.10.210 of the City of Orange Campaign Reform Law requires the City Council to review the contribution limits contained therein in January of every fourth year commencing in 1996. If the City Council determines that it wants to consider amending the limits, it is required to do so by holding a hearing and adopting an ordinance amendment and should direct staff to bring an ordinance amendment back for City Council consideration. (Continued from December 9, 2003) City Attorney David De Berry reviewed the report, noting a recent court case involving intra- candidate transfers which he will monitor for any effects it might have on the city's limits. MOTION - Alvarez SECOND - Cavecche AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Received and filed report. 7.2 First Amendment to Agreement with Waste Management for trash collection and disposal services. (A2100.0 AGR-3247.1) SUMMARY: The proposed First Amendment to Agreement with Waste Management for trash collection and disposal services will clarify how the City and Waste Management will determine whether Waste Management is fulfilling its low rate guarantee obligations under the Agreement. Resolution 9806 adds a return trip charge to the schedule of rates charged by Waste Management of Orange. This charge applies when a customer's trash does not get picked up due to the fault of the customer and the customer requests Waste Management to make a special trip to pick it up. City Attorney David De Berry reviewed the report. Bob Coyle, Waste Management of California, clarified that the return trip fee was only for commercial customers, not residential. RESOLUTION NO. 9806 A Resolution of the City Council of the City Orange, adding a return trip charge to the schedule of rates charged by Waste Management of Orange. MOTION - Coontz SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved Resolution No. 9806; and authorized the Mayor and City Clerk to execute the First Amendment to Agreement with USA Waste of California, Inc. FISCAL IMP ACT: None. The added charge is not applicable to the City. PAGE 12 ~-'-'-~--- CITY COUNCIL MINUTES January 13,2004 7. ADMINISTRATIVE REPORTS (Continued) 7.3 Report from Interim Director of Finance regarding the issuance of Special Tax Bonds for and on behalf of Community Facilities District No. 91-2. (TllOO.0.2 CFD-91-2) SUMMARY: Community Facilities District No. 91-2 (the "CFD" or the "District") was formed in December 1991, to finance the public improvements for the Serrano Heights residential tracts. Special tax bonds in the amount of $34,800,000 were authorized by the City Council and issued in November 2000 to finance the construction of the public improvements (the "Prior Bonds"). The City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements) Special Tax Refunding Bonds Series 2004A and the City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements) Special Tax Refunding Bonds Series 2004B (collectively, the "Bonds") will be issued to refund the Prior Bonds, to finance the construction of a fire station and various other public improvements benefiting the property located in the District, to fund a reserve fund, and to pay the costs related to the issuance ofthe Bonds. Rich Jacobs, Interim Finance Director, reviewed the report, noting that the bonds are set to sell February 24th. RESOLUTION NO. 9808 A Resolution of the City Council of the City of Orange authorizing the issuance of Special Tax Bonds of the City for and on behalf of City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements), and approving related documents and actions. MOTION - Murphy SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved. FISCAL IMP ACT: No direct fiscal impact to the City. The indirect impacts include lower annual assessments to property owners within the CFD and a financing source for the construction of permanent Fire Station 8 and other public improvements of benefit to the CFD. 7.4 Award of Contract - Bid No. 034-34, The Recoating of the Interior of Reservoir 4. (A2100,O AGR-4422) SUMMARY: This contract authorizes the recoating of the interior of Reservoir No.4, a five million (5,000,000) gallon steel drinking water storage tank, to Robison-Prezioso, Inc., the lowest responsible bidder. Harry Thomas, Public Works Director, reviewed the report. MOTION - Alvarez SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche PAGE 13 . r-....-.-... CITY COUNCIL MINUTES January 13, 2004 7. ADMINISTRATIVE REPORTS (Continued) ACTION: I) Appropriated $150,000.00 from Water Capitol Fund 601 Unappropriated reserves into Account No. 601-8041-484400-8302 (Reservoir Recoating). 2) Awarded a contract in the amount of $412,995.00 to Robison Prezioso, Inc., of Santa Fe Springs, CA and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: After appropriation, funds will be available in the following account: 601-8041-484400-8302 Reservoir Recoating $461,000.00 8. REPORTS FROM CITY MANAGER Tape 1560 8,1 Presentation of the First Quarter FY 2003-04 Budget Report which includes the period July 1, 2003 through September 30, 2003. (C2500,E.4) SUMMARY: This First Quarter Report helps inform the City Council of departmental performance for the quarter, including progress toward the achievement of departmental goals and completion of major capital improvement projects, and summarizes the results of the City's financial operations. The City Manager reviewed the report. MOTION - Cavecche SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Received and Filed Report. FISCAL IMP ACT: None. 9, LEGAL AFFAIRS 9.1 ORDINANCE NO. 18-03 (SECOND READING) (A2500.0 Parking) An Ordinance of the City Council of the City of Orange Amending Section 10.30.040 of the Orange Municipal Code pertaining to the neighborhood permit parking program. MOTION - Ambriz SECOND - Cavecche AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Moved that Ordinance No. 18-03 be read by title only and same was approved and adopted by the preceding vote. PAGE 14 CITY COUNCIL MINUTES January 13, 2004 9. LEGAL AFFAIRS (Continued) 9.2 ORDINANCE NO. 22-03 (SECOND READING) (C3300.0 CUP-2459-03) An Ordinance of the City Council of the City of Orange approving a Development Agreement by and between the City of Orange and St. Joseph Hospital of Orange, a California nonprofit public benefit corporation, for approval of a Master Plan for the phased redevelopment of the St. Joseph Hospital Campus on property generally bordered by Palmyra Avenue on the North, La Veta Avenue on the South, Batavia Street on the East and Main Street on the West. Applicant: St. Joseph Hospital of Orange MOTION - Coontz SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Moved that Ordinance No. 22-03 be read by title only and same was approved and adopted by the preceding vote. 9.3 ORDINANCE NO. 1-04 (FIRST READING) (A2500.0 Parks) Tape 1697 An Ordinance of the City Council of the City of Orange repealing and replacing Chapter 12.48 of the Orange Municipal Code pertaining to parks. Discussion Mayor pro tern Cavecche questioned the language regarding the use of motorized model cars in parks. Staff explained the differences between motorized and battery operated cars and that permits would be required for their use in order to control problems with noise and turf damage to the fields. Mayor pro tem Cavecche requested clarification on the definition of "responsible person" in relationship to dogs; and Council discussed the difficulties in requiring that dogs only be with their owners and not dog sitters. Bonnie Hagan, Recreation Superintendent, noted the City will be working with the Dog Park Association on monitoring dogs at the parks. Councilmember Coontz requested clarification on the permitting process and providing information on the rules and regulations to the citizens. Ms. Hagen explained that the permits were for organized use; that permits are not issued for personal use of the parks. Councilmember Ambriz asked for clarification on permits required for groups of 10 or more; and if these new rules and regulations would be posted in the parks and when they would go into effect. PAGE 15 --. -- T-.--- --.-- CITY COUNCIL MINUTES January 13, 2004 9, LEGAL AFFAIRS (Continued) Ms. Hagan explained that groups with a permit would take precedence over a group without a permit when using a field; that these regulations would be posted in the parks; and the regulations go into effect 30 days after the adoption of this Ordinance. MOTION - Cavecche SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Moved that Ordinance No. 1-04 be read by title only and same was set for second reading by the preceding vote 9.4 RESOLUTION NO. 9799 (C2300.E GPA-2003-0005) A Resolution of the City Council of the City of Orange adopting findings of fact, statement of overriding considerations, and certifying the adequacy of Pinal Environmental Impact Report No. 1717-03 for Amendment No. 5 to the Chapman University Specific Plan, including associated applications for General Plan Amendment 2003-0005, Amendment to the Santa Pe Depot Specific Plan, Amendment to the Southwest Project Area Design Standards, Zone Change 1223-03, and approval of the Chapman University Master Landscape Plan. Applicant: Chapman University. (Continued from December 9, 2003) NOTE: Mayor pro tern Cavecche registered an abstention on Items 9.4 through 9.8 due to a possible conflict with her husband's employment and left the dais. David DeBerry, City Attorney, stated modifications had been made to the Pinal EIR relating to donations by Chapman University for street trees and lighting for the surrounding areas and a film documentation on the cultural and building history of the area. Public Comments Augie Morales, 1822 Devon Place, owner of 392 Lemon Street, spoke in favor of the proposed plan with the modifications. Tom Schwabauer, address on file, spoke in favor of the Chapman University Plan. Councilmember Alvarez stated that he had asked Chapman University to reinvest back into the neighborhood impacted by the University's expansion and was pleased with the results. Thanks to the work by Ken Ryan and EDA W, Chapman University is generously reinvesting in the community by adding trees and street lights to the surrounding neighborhood which is a direct public benefit, not only aesthetically, but will make the neighborhood safer. Councilmember Coontz reported Chapman University has agreed to produce a documentary film record and written documentation of the cultural history of the neighborhood, the history of individual buildings and interviews, noting the University will designate who will prepare the film and historical materials. She appreciated the information which Mr. Morales and his group have brought forward, including the history of individual buildings, research from the historical archives and interviews with residents and individuals. This gives the City a more complete PAGE 16 CITY COUNCIL MINUTES January 13, 2004 9. LEGAL AFFAIRS (Continued) picture of the contributions and history of that community. Copies of the film and written documentation will be made available at the City's new library and will provide a good collection for the future of the City. Councilmember Coontz noted that the community needs to review the plans and suggested that stafflook at block grant money for some of the needed improvements. MOTION - Alvarez SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz ABSTAIN - Cavecche ACTION: Approved Resolution No. 9799 with the following modifications: Visual Impact No.6 - Future development shall consider the continuity relative to the "The Cypress Street Neighborhood" and Old Towne and the transition/pedestrian connection between "The Cypress Street Neighborhood" and Old Towne. Chapman University shall provide financial assistance in the amount of $70,000 for the purchase and installation of street trees and streetlights on Cypress, Lemon and Olive streets between Walnut Avenue and Sycamore Avenue (hereafter, "designated neighborhood"). Chapman University shall pay $2,800 to the City for street trees by February 15, 2004. The $2,800 shall be used by the City or by any organization designated by the City, for the sole purpose of purchasing and planting street trees in the designated neighborhood. Chapman University shall pay to the City the amount of $33,600 prior to the issuance of a certificate of occupancy for any Chapman University structure of 20,000 square feet or greater. Chapman University shall pay a second installment of $33,600 prior to the issuance of a second certificate of occupancy for any Chapman University structure of 20,000 feet or more. In any event, whether any construction occurs or not, the total of $70,000 shall be due and payable to the City no later than January 13, 2009. The $67,200 shall be used for the sole purpose of purchasing and installing a total of twenty-two 13-foot high "acorn style" Old Towne street lights to be located in the designated neighborhood. The streetlights shall be installed on or before January 13, 2009. This obligation shall not apply to certificates of occupancy for structures that received final design approval by the City prior to January I, 2004. Historic Resources No. 5b. -Chapman University shall prepare an original documentary film record and corresponding original written documentation that includes: (1) the cultural history of the neighborhood generally bounded by Walnut Avenue to the north, Palm Avenue to the south, Glassell Street to the east and the AT & SF Railroad to the west (sometimes referred to as "Cypress Street Neighborhood" or "Orange Barrio"); and (2) the history of the California Wire and Cable Company and California Cordage Plant (Anaconda East and West). The film and written documentaries shall include, but not be limited to, research of Orange Public Library historical archives, interviews with residents and other individuals who have knowledge of the Orange Barrio and shall be completed and approved by the City Library Director. The written documentation must be approved prior to the granting of a certificate of occupancy of any phase of the School of Film and Television and the film documentary within two years of the granting of first certificate of occupancy for the School of Film and Television. Three copies of the film in DVD format and of the written documentaries shall be made available for the Orange Public PAGE 17 r- CITY COUNCIL MINUTES January 13, 2004 9. LEGAL AFFAIRS (Continued) Library. Chapman University shall also, with the permission of the respective building owners, research and write a historical narrative for the following buildings: the Villa Park Orchards Packinghouse, the Cypress Street School (544 N. Cypress Street), the Old Quaker ChurchlFriendly Center (424 No. Cypress Street), the mural on garages at 440 N. Cypress Street and four properties located between Cypress and Lemon (337 and 343 N. Cypress and 328 and 336 N. Lemon). The written documentation shall be completed within one year of the issuance of the first certificate of occupancy of the School of Film and Television, and three copies shall be provided to Orange Public Library for its archives. 9.5 RESOLUTION NO. 9800 (C2300.E GPA-2003-0005) A Resolution of the City Council of the City of Orange approving a Specific Plan Amendment to redesignate approximately 17.12 acres of property into the Chapman University Specific Plan. A portion ofthis area would be redesignated from the Santa Fe Depot Specific Plan. The portion of the area in the Southwest Project Area is deleted from the Southwest Project Area Design Standard. The current Chapman University Specific Plan consists of approximately 40.35 acres. This Amendment would expand the boundaries of the current Specific Plan to a total of approximately 57.47 acres. Specific Plan Amendment No.5 Applicant: Chapman University (Continued from December 9, 2003) MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz ABSTAIN - Cavecche ACTION: Approved. 9.6 RESOLUTION NO. 9801 (C2300.E GPA-2003-0005) A Resolution of the City Council of the City of Orange approving a General Plan Amendment to redesignate existing General Plan Land Use designations from Low Medium Density Residential, Medium Density Residential, Old Town Mixed Use, and Industrial to Public Facilities Land Use Designation. (Continued from December 9, 2003) General Plan Amendment 2003-0005 Applicant: Chapman University MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz ABSTAIN - Cavecche ACTION: Approved. PAGE 18 "--"~._------ --"--~"-"---" CITY COUNCIL MINUTES January 13, 2004 9. LEGAL AFFAIRS (Continued) 9,7 RESOLUTION NO, 9802 (C2300.E GPA-2003-0005) A Resolution of the City Council of the City of Orange approving a Master Landscape Plan for the Chapman University Specific Plan. (Continued from December 9, 2003) MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz ABSTAIN - Cavecche ACTION: Approved. 9.8 ORDINANCE NO. 3-04 (FIRST READING) (C2300.E GPA-2003-0005) An Ordinance of the City Council of the City of Orange approving the Reclassification of approximately 17.12 acres of property from R-2-6, R-3, C-I, M-1, and Santa Fe Depot Specific Plan to Specific Plan-Public Institution (SP-PI). (Continued from December 9, 2003 - previously numbered Ordinance No. 24-03) Zone Change 1223-03 Applicant: Chapman University MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz ABSTAIN - Cavecche ACTION: Moved that Ordinance No. 3-04 be read by title only and same was set for second reading by the preceding vote. 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council recessed at 6:03 p.m. to a Closed Session for the following purposes: a. Conference with Legal Counsel- Significant exposure to litigation pursuant to Government Code Section 54956.9(b). (one potential case). 1) Orange Unified School District Claim for Redevelopment Tax Money b. Conference with Labor Negotiator pursuant to Government Code Section 54957.6 City's Negotiator: Personnel Director Steven Pharo Employee organization: Orange City Firefighters Association Orange Fire Management Association Orange Police Association Orange Police Management Association c. Public Employee Performance Evaluation pursuant to Government Code Section 54957: Title - City Manager PAGE 19 CITY COUNCIL MINUTES January 13, 2004 11. RECESS TO CLOSED SESSION (Continued) d. 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 The following people spoke in opposition to the proposed development in East Orange by the Irvine Company: Melissa Rodriguez, 831 N. Yvonne Place, Anaheim Martin Achterhof, 4515 Ave. del Oro, Yorba Linda R J. Schwictenberg, 19102 E. Smiley Drive, Orange Sabrina Aller, 36 Acropolis Aisle, Irvine Catherine McMillan, 407 Split Rail Lane, Anaheim 13. PUBLIC HEARINGS 13.1 GENERAL PLAN AMENDMENT NO, 2002-0004; ZONE CHANGE NO. 1217-02; MAJOR SITE PLAN REVIEW NO. 258-02; ENVIRONMENTAL IMPACT REPORT NO. 1710-02 - BRE PROPERTIES (C2300.E GPA-2002-0004) Tape 3124 Time set for public hearing to consider a request to develop the Pinnacle at Uptown Apartments, a 460 unit apartment complex on the 11.52 acre former Cinedome movie theater site, located at 3001 West Chapman Avenue. The proposal includes: General Plan Amendment No. 2002-0004 - to allow high density residential development in the General Commercial General Plan land use district. Zone Change No. 1217-02 - to rezone the site from Limited Business (C-I) to Planned Community-Specific Plan (PC-SP) to establish alternative development standards tailored to the project. Maior Site Plan Review No. 258-02 - to allow the construction of 460 apartments, a 602-space parking structure, surface parking and recreational amenities. Environmentallmoact Reoort No. 1710-02 was prepared for the project in accordance with the California Environmental Quality Act. Staff Reoort Alice Angus, Community Development Director, briefly reviewed the components of the project and the site plan; noting there was no affordable housing component to this project, but that the applicant would be contributing to an affordable housing fund. PAGE 20 CITY COUNCIL MINUTES January 13,2004 13. PUBLIC HEARINGS (Continued) Applicant Kent Marshall, BRE Properties, 2020 Main, Irvine, described BRE as a western United States real estate investment trust - a long term owner/operator of quality luxury apartments. He reviewed the benefits of the project, including its contribution toward the Uptown Orange vision; bringing in much needed housing; and generating revenue of over $8 million with in-lieu fees. The project style is a combination of an urban, four-story wrap building and a more typical three- story garden style building. Mr. Marshall stated that BRE concurred with the staffs recommendation, on all points except Condition 90 regarding a traffic signal; and asked if Condition 90 could be satisfied by a traffic signal maintenance agreement prior to the issuance of building permits. His concern was that it could take up to nine months for a permanent signal and would delay construction. Harry Thomas, Public Works Director, expressed concerns about the sight distance at the driveway; construction traffic problem; traffic signal controls; and how the safety signal needs to be in place prior to start of any grading activity. The signal is needed solely because of this development and the developer has agreed to the entire cost of the signal. Timing was an issue because of the involvement of CaITrans who would be dealing with the City directly and not the developer; and a temporary signal could be put in place but was not an ideal solution either. David DeBerry, City Attorney, suggested a condition that the developer enter into a Traffic Signal Maintenance Agreement with the City subject to the approval of the City Manager and Public Works Director. Mr. Marshall concurred that BRE was agreeable to pay any in lieu fees up front in cash or by bond. Councilmember Coontz requested assurances that the luxury apartments would be maintained as luxury apartments, including the landscaping and the buildings; that there be long term assurance of management and operation, either by deed restriction or development condition. Mr. Marshall stated that BRE would agree to a condition about long-term maintenance. Councilmember Alvarez asked about an affordable housing component. Mr. Marshall explained that BRE builds strictly luxury units; that they do not own, operate or develop affordable housing units. They are paying an up-front fee to fund affordable housing units for the City and thought the City's agency was best suited to develop this type of housing. Councilmember Ambriz asked what the developer had done in the way of community relations and soliciting input from the neighbors. He also asked if BRE was working with other developers with projects nearby on the impacts all of these projects would have on the area. Mr. Marshall responded that BRE had worked closely with City staff and had gone out and met with the surrounding neighbors. BRE had met with two of the other developers in the area, but PAGE 21 - r - -..-------- --..--------.-------- CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) did not meet with developers of The Block as they were unaware of the expansion of the Block project until recently. Mayor pro tern Cavecche commented on the fees that would be generated for parks, police and libraries. As to the affordable housing issue, Economic Development staff had explained that the fees generated by developments like this far outweighed what the developer could produce in the way of affordable housing. Ms. Angus added that the fees generated by this project would amount to $4.4 million for parks, $300,000 for libraries and $1.3 million for affordable housing. In response to Council questions, staff indicated there would be no parking on Chapman Avenue, it is a gated community, and all residents would be able to park on the property. MAYOR MURPHY OPENED THE PUBLIC HEARING Tape 4282 The following individuals spoke in opposition to the project, stating concerns of increased traffic, noise, poor air quality, lack of parks and open space in West Orange; high density, ADA compliance, and the need for affordable housing. John Baker, 1051 Arbor Way Lois Barke, address on file Scott Bottomly, 1005 Arbor Way Margarita Fleener, 300 N. Rampart #163, Park Real Mobile Home Park. Roy Shebazian, 3808 E. Palm, spoke in favor of the project, noting the need for housing for young professionals and the shortage of housing in Orange County. MAYOR MURPHY CLOSED THE PUBLIC HEARING Councilmember Alvarez asked about the building codes requiring handicapped accessibility. Project Architect, Bruce Partosek, Architects Orange, explained the rules on handicapped accessibility and adaptability. All of the units in the wrap building are accessible, and therefore all are adaptable. In the garden style section of the project, only ground floor units are accessible. Mayor pro tern Cavecche requested clarification on the overlay. Director Angus explained that when the general plan was updated over 13 yrs ago, the decision was made to concentrate density levels in the Uptown Area. The vision plan prepared by the Diamond Group was later used as a guide for this density. The overlay was developed so as not to create a separate general plan category but to overlay changes where appropriate. On the question of what happens if this group does not go ahead with the development, the proposed general plan changes provides for a range of density for the residential component and for mixed use. PAGE 22 CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) Mayor pro tern Cavecche then asked Economic Development Staff why no commercial development had been found for this site. Jim Reichert, Acting Director, Economic Development, explained that the site did seem ideally suited for commercial development; however, all efforts of the past eight years to attract commercial development to the area had not been successful. The area is oversaturated with the commercial types the City would like to see move into that space. Councilmember Coontz thanked BRE for the presentation. This particular development site has always been looked at as an area where there could be greater density, especially given the improvements to the 5 Freeway. The area is overpopulated with offices; and the need for housing is the number one concern everywhere, not just Orange County. She reiterated her concerns over the need for controls whenever there is any large residential development. Councilmember Ambriz asked BRE if they would consider making ten percent of the project affordable. Mr. Marshall stated that BRE could not agree to do that. Councilmember Coontz suggested that the City could designate areas on the updated General Plan for affordable housing. Council Comments: Mayor Murphy stated that whenever a new concept is introduced, it draws attention and concern. Now that Council has gotten a closer look at this style of housing, a style that people are looking for, there is a lot of enthusiasm for the project. The dollars that will be contributed to parks, schools, libraries and safety services are considerable. He agreed that the concept of designating an area for affordable housing in the General Plan needs to be explored; and supports this project as BRE has done a great job. Councilmember Coontz reiterated her request for a long term maintenance agreement to ensure that the maintenance of the project, both for the buildings and landscaping, meets standards associated with luxury apartments; and would like to see park fees generated by the project go to the west end of community, pointing out that El Camino Park needs improvements. She suggested the City look at some of the CalTrans property, as it is difficult to find park space in urban areas. Councilmember Alvarez stated that sometimes business needs to drive what is going on; that this is an infill project in what appeared as a no man's land. The project offers a different type of housing and is handicapped accessible. It is expensive construction and a high end product and he was certain that BRE would remain as owners. Councilmember Ambriz commented on the idea of different uses. In his meetings with the Economic Development staff he was shown the different uses of what could be developed on the PAGE 23 --"T----- CITY COUNCIL MINUTES January 13, 2004 13, PUBLIC HEARINGS (Continued) site. He knows the area having grown up in West Orange and would like to see more investments in West Orange, including keeping park fees generated in that area kept there. Mayor pro tern Cavecche stated she originally wanted to see commercial development on the site, but appreciates the property taxes generated by this project. She regretted that the citizens in West Orange did not have a lot of input on the development and suggested a study session with the Planning Commission to create a dialog with citizens in West Orange; and noted that West Orange has done it's share for affordable housing. Staff was directed to keep park fees generated by this development in West Orange. Council Action RESOLUTION NO. 9815 A Resolution of the City Council of the City of Orange adopting findings of fact, statement of overriding considerations and certifying the adequacy of Final Environmental Impact Report No. 1710-02 for General Plan Amendment 2002-0004, Zone Change 1217-02 and Major Site Plan Review 258-02 for approval of the Pinnacle at Uptown Apartments at 3001 West Chapman Avenue. Applicant: BRE Properties MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved with added Mitigation Measure to EIR 1710-02 relating to Condition 91: "The applicant shall enter into a maintenance agreement with the City to ensure that the maintenance of the project meets standards associated with luxury apartments and provides opportunities for the City to enforce these standards along the lines of the maintenance agreement between Orange City Mills Partnership and the Orange Redevelopment Agency." Condition 90 of EIR 1710-02 was modified by the addition of the following language: "In lieu of these requirements, the applicant will enter into a traffic signal maintenance agreement which meets the approval of the Public Works Director and the City Manager." RESOLUTION NO. 9817 A Resolution of the City Council of the City of Orange approving Major Site Plan Review No. 258-02 to allow the construction of a 460 unit apartment complex at 3001 West Chapman Avenue. Applicant: BRE Properties PAGE 24 CITY COUNCIL MINUTES January 13, 2004 13, PUBLIC HEARINGS (Continued) MOTION - Coontz SECOND - Ambriz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved with modifications to ensure long term maintenance of the project; and requiring the applicant to enter into a Traffic Signal Maintenance agreement with the City that meets the approval of the City Manager and Public Works Director. MOTION - Ambriz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved to approve General Plan Amendment No. 2002-0004 as outlined III Planning Commission Resolution No. PC 41-03. ORDINANCE NO. 5-04 (FIRST READING) An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code and approving the reclassification of property located at 3001 West Chapman Avenue from C-I to PC-SP. Zone Change No. 1217-02 Applicant: BRE Properties MOTION - Coontz SECOND - Alvarez AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved that Ordinance No. 5-04 be read by title only and same was set for second reading by the preceding vote. TAPE TWO-5 13.2 CONDITIONAL USE PERMIT NOS. 2461-03, 2462-03, 2463-03; MAJOR SITE PLAN REVIEW NO. 297-03 AND 300-03; DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ORANGE AND ORANGE CITY MILLS LIMITED PARTNERSHIP; FINAL ENVIRONMENTAL IMPACT REPORT NO. 1721-03 - MILLS CORPORATION Time set for public hearing to consider a proposal for a long term development plan for expansion of The Block at Orange, including a mixed use development of a 500 dwelling unit apartment complex incorporating 35,000 square feet of existing commercial space; two hotels, one containing 125 rooms and the other containing 175 rooms; 120,000 square feet of new retail/restaurant area; and a 1,211 space parking structure at property located South of Chapman Avenue between Lewis Street and The City Drive. The proposal includes: Conditional Use Permit No. 2461-03 and Major Site Plan Review 297-03 - to allow a mixed use development (residential and commercial) on property zoned C-2. PAGE 25 r CITY COUNCIL MINUTES January 13, 2004 13, PUBLIC HEARINGS (Continued) Conditional Use Permit No. 2462-03 - to allow the construction of a 175 room hotel. Conditional Use Permit No. 2463-03 - to allow the construction of a 125 room hotel. Major Site Plan Review No. 300-03 - to allow construction of a 1,211 space parking structure. Development Agreement - to provide for project implementation over a ten year period. Environmental Impact Report No. 1721-03 was prepared to review the environmental impacts of the proposed project. Alice Angus, Community Development Director, reviewed the components of the project and the site plan. Council Ouestions: Councilmember Alvarez asked if the proposed parking structure behind the theater would result in an increase in the number of parking spaces available, and if there would be joint use with the apartment parking. Ms. Angus noted that the project currently complies with City standards; at peak times parking overflows onto the neighboring office properties; the parking structure does replace existing parking spaces; and there would be a surplus of 100 spaces in the apartment parking area plus additional parking for the retail use. Mayor pro tern Cavecche asked about the existing Disposition and Development Agreement (DDA) for the original project and ifit is being amended. Acting Economic Director Jim Reichert stated that there would be no action at this time on the existing DDA; an amendment would have to be made later to reflect the changes in the parking areas. Mayor pro tern Cavecche asked about the hotels being minimum service hotels; if the parking for the apartments was subterranean and set aside only for the apartments; and asked about a shard parking analysis that The Block has to have an agreement for additional parking with either Equity Office Properties or someone else. Ms. Angus explained that The Block has several restaurant and shopping opportunities that would meet the needs of hotel guests. The parking was under the apartments, but not subterranean. Parking at the surface level was designed for retail; the section set aside for residents was completely isolated from that for retail with separate entrances and that Mills does have to find an additional 900 parking stalls for this project. Mayor pro tern Cavecche asked about the lack of agreement with CaITrans regarding realignment of the off ramp. PAGE 26 CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) Harry Thomas, Public Works Director stated that this project was not on the current project planning list with CalTrans and the City would have to work with The Mills Corp to see that this component is added. The City will have to enter into a Cooperative Agreement with OCTA as the City is a participant in the freeway project in the amount of nearly $3 million in grant money, but there would be no financial responsibility for City of Orange. Councilmember Ambriz asked about the parking where the hotels are planned; and what would happen if the realignment of the SR22 did not happen. Ms. Angus clarified that the hotels included additional parking structures. As for the SR22 realignment, ifit did not occur, the Mills Corp would have to redesign the project. Councilmember Ambriz questioned the statement that the project would have no fiscal impact on the general fund. City Manager David Rudat responded that it was difficult to proj ect impacts into the future; that there would be impacts on services but that now there was no appreciable measurement of those impacts. Applicant Tape 2-654 Elizabeth Link, The Mills Corporation, thanked staff for their work. She reviewed the history of the project and spoke on the sharing parking agreement, with Equity; the parking spaces that were strictly for the apartment residents; the revenues the project would generate for the City; the reduced need for security with the new mixed use; the project's appeal to families; the history of hotels being successful on other Mills properties; their goal to bring in higher income level customers to The Block; their willingness to pay in-lieu fees; and that fact that they had just started the process of working with CaITrans. Johannes Van Tilberg, architect for the apartment project illustrated the mixed use elements of the proj ect, the parking, the added layer of security the residential units will bring; and discussed the popularity ofloft units. In response to Council questions, Mr. Van Tilberg clarified the parking garage was under the apartments and had separate access from the parking for the retail parking; the parking structure was above grade and not accessible from street level; and that every unit was ADA accessible. Councilmember Coontz commented on the popularity oflimited service hotels, especially among women. Dwayne Mears, The Planning Center, distributed some additional comments and responses relating to the EIR. Mayor pro tern Cavecche expressed concern over environmental findings regarding increased demand for police protection services. The mitigation offered in the EIR (applicant will submit emergency access plan to the Police Department) does not significantly mitigate this impact; and PAGE 27 r- CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) more discussions are needed on what mitigation measures would bring this impact down from significant to less than significant. MAYOR MURPHY OPENED THE PUBLIC HEARING Tom Schwabauer, address on file, spoke in favor of the project. MAYOR MURPHY CLOSED THE PUBLIC HEARING Elizabeth Link summarized the Council's major issues concerning security. The Development Agreement addresses that issue; and the developer participates in regular meetings with the Police Department. What has not been considered is the impact the apartments will have on demand for police services. Because additional meetings with the Police Department will be needed, the applicant would be willing to continue the item, Ordinance No. 4-04, concerning the Development Agreement. Mayor pro tern Cavecche asked about the hours for security personnel; where they would find the additional parking required for the project; and how was the 80% occupancy rate for the hotels was derived. Ms. Link stated that there would be security personnel on duty at the apartments during business hours for the leasing office only; entrance to lobbies and the elevators is by card only. The developer is working on the additional parking agreements; and could shuttle employees to remote parking areas. The occupancy rate is actually closer to 65% than 80%. In response to a request from Councilmember Coontz, Linda Bozung, attorney for the applicant, suggested that the applicant put together, along with conditions already agreed to in the Development Agreement, mitigation measures that would meet the requirements of the Police Department. Councilmember Ambriz suggested working for the ElR mitigation measure that did not limit the types of safety measures. Councilmember Coontz asked that the wording be inserted into the ElR as a mitigation measure. Councilmember Alvarez addressed the issue of parking, specifically the CUP for the shared 900 parking stalls; and the budget for police services at the Block. Ms. Angus confirmed that projections for peak hour demand at The Block would require The Mills Corp to add 900 parking stalls in addition to those provided by the new parking structures. A CUP would be required to memorialize the shared parking agreements with the neighboring properties. Police Chief Andy Romero reviewed staffing figures. When The Block first opened, 3 officers were budgeted, but it quickly became apparent that five more were needed. The staffing was adjusted to one sergeant, one corporal and six officers. In 2001, the budget was for 16,640 man- PAGE 28 CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) hours, or $719,000. In 2002, it remained at 16,640 man-hours but the cost ran $818,000. In 2003, the budget was cut to 10,000 hours, or $378,000. This last figure does not include overtime. The Police Department has worked closely with The Block and they have complied with most of the City's requests. Councilmember Alvarez questioned the City spending more tax dollars for Police services on a center that generates very little tax revenue; and parking structures can generate even more crime and there was no security at the Equity parking lot. Chief Romero responded that even with the expansion, the Police Department did not foresee a major increase in Police activity. Councilmember Coontz asked if what was written in the EIR covered all the unknown issues or if there needed to be a monetary clause added. City Attorney David De berry responded that the City could not require a developer to pay directly for police services. If Police services exceeded budgeted amounts, the City could go back to The Block and ask them to enhance their security services. Elizabeth Link agreed that The Mills would certainly be willing to work something out in such cases. She described the foot-candles and security cameras in the new parking structures, on the decks and the stairways. In response to the question of sales tax generation, Ms. Link pointed out that there was no entertainment tax in California and many of the receipts, like movie tickets, do not generate tax revenue. Mayor pro tern Cavecche stated that staff and the applicant had done an incredible job. The Mills Corp and the City of Orange have the same interests - to be successful; but she was not prepared to vote at this time on the Environmental Impact Statement and suggested continuing it for two weeks to work out some of the problems. The main concern is security, and she wanted additional time to allow both parties to hammer out the details on public safety. If revenues for the City do not meet the increased need for officers at The Block, then there could be some kind of trigger mechanism that would enable the City to do something to bring that back into balance. Councilmember Coontz noted all aspects of the development of The Block need to be covered. The proposed lofts are similar to what is at the Plaza and brings a population into The Block. Security is a big concern and the City will be working to solve it. Councilmember Ambriz commented on the need to use tax dollars and police services wisely; and questioned the time frame for action on this project. Ms. Link responded that the 10-year term of the Development Agreement was requested because the project would be done in stages. The AMC theatre, which ranks in the top five grossing theaters in the nation, needs the parking structure completed by June I; and Mills needs a decision as soon as possible to meet deadlines as there is a lot of money invested in the project. PAGE 29 T - CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) Mayor Murphy asked if the ElR was approved at this meeting, but not the other items, what additional entitlements would be gained. City Attorney De Berry stated there would be no ability to do anything additionaL Mayor Murphy stated that he shared the concerns about security; and suggested structuring the ElR to provide full flexibility to add security issues and ensure that what is built adds incrementally to the revenues generated without increasing expenses Mr. De Berry proposed additional language to the ElR to meet the Council's requirements for security issues. Councilmember Alvarez stated he could not support spending money on an underperforming mall that required curfew sweeps and gang sweeps. The developer, instead of bringing in better retail, is bringing in more people, which will mean more crime. Councilmember Coontz noted the center will provide hotel tax and property tax revenues. Mayor Murphy stated he understood the timing constraints and suggested focusing on trying to improve the center. Council Actions RESOLUTION NO. 9810 A Resolution of the City Council of the City of Orange certifying Final Environmental Impact Report No. 1721-03, and adopting the findings of fact, statement of overriding considerations and mitigation monitoring program, for the expansion of The Block at Orange on property located west of The City Drive between Chapman Avenue and Metropolitan Drive. Applicant: The Mills Corporation MOTION - Murphy SECOND - Coontz AYES - Ambriz, Murphy, Coontz NOES - Alvarez, Cavecche ACTION: Resolution No. 9810 was approved with the addition of a mitigation measure which provides: "The developer has implemented, and will continue to implement, numerous measures at the request of the City of Orange Police Department to enhance public protection and safety for all aspects of the proiect site. including. but not limited to increased pay and training for security officers, enforcement of curfew restrictions and curfew sweeps, and targeted security prevention, including improved camera surveillance systems and response to juvenile disturbances. These measures have reduced City of Orange Police Department expenditures for law enforcement at The Block, which is now within 2003 budgeted parameters for staffing. The developer shall enter into a Development Agreement with the City specifying security measures PAGE 30 CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) which will be implemented to address any increased demand for police services at the project site. The Development Agreement must be approved by the City prior to the issuance of any building or grading permits for the proj ecl." RESOLUTION NO. 9811 A Resolution of the City Council of the City of Orange approving Major Site Plan Review No. 300-03 to allow the construction of a 1,211 space parking structure located on property west of The City Drive between Chapman Avenue and Metropolitan Drive. Applicant: The Mills Corporation MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Alvarez, Murphy, Coontz, Cavecche Moved to continue Resolution 9811 to January 27,2004. RESOLUTION NO. 9812 A Resolution of the City Council of the City of Orange approving Conditional Use Permit 2462- 03 to allow a 175 room hotel upon property located west of The City Drive between Chapman Avenue and Metropolitan Drive Applicant: The Mills Corporation MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Alvarez, Murphy, Coontz, Cavecche Moved to continue Resolution 9812 to January 27, 2004. RESOLUTION NO. 9813 A Resolution of the City Council of the City of Orange approving Conditional Use Permit 2463- 03 to allow a 125 room hotel upon property located west of The City Drive between Chapman Avenue and Metropolitan Drive. Applicant: The Mills Corporation MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Alvarez, Murphy, Coontz, Cavecche Moved to continue Resolution 9813 to January 27,2004. PAGE 31 ""- -" ___u --" T-- CITY COUNCIL MINUTES January 13, 2004 13. PUBLIC HEARINGS (Continued) RESOLUTION NO. 9814 A Resolution of the City Council of the City of Orange approving Conditional Use Permit 2461- 03 and Major Site Plan Review 297-03 to allow a mixed use development containing 500 dwelling units and existing commercial development upon property located west of The City Drive between Chapman Avenue and Metropolitan Drive. Applicant: The Mills Corporation MOTION - Murphy SECOND - Ambriz A YES - Ambriz, Alvarez, Murphy, Coontz, Cavecche Moved to continue Resolution 9814 to January 27,2004. ORDINANCE NO. 4-04 (FIRST READING) An Ordinance of the City Council of the City of Orange approving a Development Agreement by and between the City of Orange and Orange City Mills Limited Partnership, a Delaware Limited Partnership, for approval of the phased expansion of The Block at Orange on property generally located west of The City Drive between Chapman Avenue and Metropolitan Drive. Applicant: Orange City Mills Limited Partnership MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Alvarez, Murphy, Coontz, Cavecche Moved to continue Ordinance No. 4-04 to January 27,2004. 14. PLANNING AND ENVIRONMENT - None. 15. ADJOURNMENT The City Attorney announced that, pursuant to the Brown Act, the Board of Directors of the Orange Redevelopment Agency unanimously approved in closed session an agreement with the Orange Unified School District (OUSD) for the payment of $800,000 in property tax funds to settle OUSD's claim that taxes paid by the County Auditor to the Orange Redevelopment Agency should have been paid to OUSD. The money will be spent on athletic and recreational facilities at Y orba Middle School and El Modena High School. MOTION - Murphy SECOND - Ambriz AYES - Ambriz, Alvarez, Murphy, Coontz, Cavecche PAGE 32 -,----- CITY COUNCIL MINUTES January 13, 2004 The City Council adjourned at 11 :20 p.m., in memory of Mary McAnena, to an Adjourned Regular Meeting, Study Session, on January 27, 2004 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 January 27,2004 at 4:30 p.m. ~~~ M~LJRP CITY CLERK ~m MARKAMURP MAYOR PAGE 33 - -- _.n ------T