6/8/2004 - Council Minutes - CC Minutes Reg Meeting
APPROVED BY THE CITY COUNCIL ON JUNE 22, 2004
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING June 8, 2004
The City Council of the City of Orange, California convened on June 8, 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
Given by Pastor Frank Riley, Orange Covenant Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Mark Murphy
1.3 ROLL CALL
PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
John Whiteriver, 194 S, Pixley, invited the public to witness the flag retirement of old
and tattered flags on Saturday, June 12 at 10:30 a,m, at the American Legion at 143 S,
Lemon,
Recognition of City of Orange as recipient of Government Finance Officers Association
Distinguished Budget Presentation Award; presented to Leila Hoopii, Financial Analyst
and Barbara Messick, Sr. Assistant to the City Manager.
Recognition of City of Orange as recipient of 2004 American Planning Association,
Orange County Chapter, Award of Merit for Planning Outreach and Education; presented
to Anna Pehoushek, Acting Principal Planner and Tara Finnigan, Business & Public
Affairs Manager.
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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June 8, 2004
3. CONSENT CALENDAR (Continued)
3.1 Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council
agenda of a regular meeting of June 8, 2004 at Orange Civic Center North facing
kiosk, Police facility at 11 07 North Batavia, Shaffer Park; all ofsaid 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; and available at the Civic
Center City Clerk's Office and Main Public Library, 101 N. Center Street.
ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a
public record in the Office of the City Clerk.
3.2 Request Council Confirmation of warrant registers dated May 20 and 27, 2004.
ACTION:
Approved,
3.3 Request approval of City Council Miuutes, Regular Meeting, May 25, 2004.
ACTION:
Approved,
3.4 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION:
Approved,
AGREEMENTS
(REMOVED AND HEARD SEP ARA TEL Y)
3.5 Award of Consultant Services Agreement - RFP No. 034-44 - FOG Characterization
Study.
SUMMARY: Order No, R8-2002-0014, issued by the California Regional Water Quality
Control Board to all sewer collection agencies within Orange County in the Santa Ana
Region, requires each agency to establish a FOG (fats, oils and greases) Control Program,
To accomplish this, the City of Orange requires the services of a qualified
engineering/consulting firm to conduct a FOG Characterization Study.
Discussion
Councilmember Coontz asked about the FOG (fats, oils, greases) program and grease
recycling process, She referred to newspaper articles on the use of restaurant grease for
diesel fuel; noting that restaurant grease was collected and recycled for use in World War
II. She spoke on the importance of knowing how the grease is recycled as it may be
difficult to monitor the program without this information.
Director of Public Works Harry Thomas reported that the City has required grease
interceptors since 1999. Although the City has no present information on the current
grease recycling process, staff will look into that information; and will include education
on this issue in any information that is provided to restaurants.
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June 8, 2004
3. CONSENT CALENDAR (Continued)
Mayor pro tem Cavecche commended the Public Works staff for their great cutting-edge
work on this issue,
MOTION - Coontz
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ACTION: Awarded RFP No, 034-44 and approve Consultant Services Agreement with
Environmental Engineering & Contracting, Inc, in an amount not to exceed $110,000 and
authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMP ACT: Funds in the amount of $110,000 are available in Account No. 220-
5022-426700 (Other Professional and Consulting Services),
3.6 Approve an amendment to the agreement with N. Harris Computer Corporation
("Harris") which provides funding for maintenance and support services in the
amount of $256,178 over a period of five years.
SUMMARY: The Utility Billing Division of the Finance Department has recently
upgraded its utility billing software and is in the process of training its staff in order to
implement the new program on July 1, 2004, Maintenance and support with the vendor
is critical for the success of the new system and has begun on April I and ends on March
31 annually.
NOTE: Mayor Murphy abstained on this item.
ACTION: Approved the terms and provisions of the First Amendment to the Agreement
for the Acquisition and Supply of Customer Information System Software, Hardware and
Related Professional Services which provides funding of $256,178 over the next five
years for maintenance and support of the Public Utility Billing Software (PUBS) used by
the Utility Billing Division; and authorized the Mayor and City Clerk to execute on
behalf of the City,
FISCAL IMP ACT: Funds for the services in year one are available in accounts 220-
1601-424102-0000 for $17,775,00 - Sanitation Fund - Repairs; and 600-1601-424102-
0000 for $17,775 - Water Fund - Repairs, Total $35,550
3.7 Attorney Services Agreement with the Law Firm of Palmieri, Tyler, Wiener,
Wilhelm & Waldron, LLP to provide legal services in connection with
condemnation matters.
SUMMARY: The City entered into an agreement with Palmieri, Tyler, Wiener, Wilhelm
& Waldron, LLP, to provide legal services in connection with eminent domain matters,
specifically the case of City of Orange v, Ultramar. The current agreement has a not to
exceed amount of $30,000 which will likely be exceeded shortly.
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3. CONSENT CALENDAR (Continued)
ACTION: Approved and authorized the Mayor and City Clerk to execute the proposed
contract with Palmieri, Tyler, Wiener, Wilhelm & Waldron, LLP for a total sum of
$100,000.
FISCAL IMPACT: Sufficient funds are available in Account No, 284-5011-483300-
4038 - Chapman Widening - 57 Fwyto Main St.
(REMOVED AND HEARD SEPARATELY)
3.8 Approve a Specific Term Employment Agreement with Edward Knight to provide
expertise as it relates to The Irvine Company and East Orange planning issues.
SUMMARY: The City has been utilizing the services of Mr. Edward Knight as a
plarming consultant through the consulting firm of Hogle-Ireland, Inc, on a full-time basis
since September 5, 2003, Mr. Knight's services are focused entirely on plarming and
development issues as they relate to The Irvine Company and the East Orange plan,
These services are fully reimbursed by The Irvine Company.
Discussion
Councilmember Coontz asked for more clarification on this agreement as she understood
that a number of people were already working on this project.
City Manager David Rudat explained that the Irvine Company pays for the staffing on
this project, and this staff position is required due to the work load particulars staff beings
to look at maps and more detailed information, This person, who was working on
contract through a consulting firm, is being brought on under contract and will be
working directly for San Soo Hoo,
Steven Pham, Personnel Director, clarified this contract will unsure compliance with IRS
regulations for contract employees,
Councilmember Alvarez inquired where the considered position fits into the East Orange
organizational chart; and requested a new updated chart.
Stan Soo Hoo, Assistant Community Development Director, reiterated that the
consultant has been acting in the capacity of a full time City employee.
Councilmember Coontz remarked on the need for clarification between City staff and
consultants, She stressed the importance of Council and the community knowing who
serves as a consultant and whether they serve under the City or applicant's purview.
City Manager David Rudat assured Council that a significant arms length relationship
exists between the Irvine Company and their consultants and the City of Orange and the
City's consultants,
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CITY COUNCIL MINUTES
June 8, 2004
3. CONSENT CALENDAR (Continued)
Councilmember Ambriz asked for clarification on the payment of funds from The Irvine
Company,
City Attorney David De Berry explained that the City of Orange charges all applicants
for staff time in processing applications, In this way, Irvine Company is responsible for
reimbursing the City for all processing,
MOTION - Alvarez
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ACTION: Approved a Specific Term Employment Agreement with Mr, Edward Knight
and authorized the Mayor and City Clerk to execute on behalf of the City; and authorize
staff to adjust the Community Development Department's salary and benefit budget and
amend the revenue budgets in anticipation of the reimbursements in the FY 2003-04
budget and the proposed FY 2004-05 budget to reflect the cost of the agreement.
FISCAL IMP ACT: Salary and fringe benefits costs for a Principal Planner at top step are
roughly $118,000 for FY 2004-05. These costs are fully offset (reimbursed) by The
Irvine Company,
3.9 CLAIMS
SUMMARY: The following c1aim(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
c1aim( s) be denied,
a. Scott Parker dba Watson Drug Store
NOTE: Councilmember Alvarez abstained due to property interest at 131 S, Glassell,
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster
CONTRACTS
3.10 Award of Contract - Bid No. 034-43; Project No. SP-3475; Municipal Parking Lot
at 190 S. Olive Street.
SUMMARY: The bids were opened on May 13, 2004, Eight (8) bidders responded to the
invitation for bids, The apparent low bidder is Popular Paver Rental for $130,597,21.
ACTION: Awarded the contract in the amount of $130,597,21 to Popular Paver Rental,
840 Obispo Avenue, Long Beach, CA 90804,
FISCAL IMP ACT: Funds are budgeted and are available in the following account:
940-9800-485100-920 I $173,200 (Merged Capital Proj ects)
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3. CONSENT CALENDAR (Continued)
3.11 Final Acceptance of Bid No. 034-29 - Hart Park Pool Equipment Replacement and
authorization to file Notice of Completion with the County Recorder (No Staff
ReJlort required)
SUMMARY: Bid No, 034-29 - Hart Park Pool Equipment Replacement, Contractor:
California Commercial Pools. Staff recommends acceptance of improvements.
ACTION: Accepted public work improvement, authorized release of XL Specialty
Insurance Company, Bond No, SB0081708, in the amount of $138,000, and authorize the
Mayor and City Clerk to execute the Notice of Completion,
FISCAL IMPACT: None,
PURCHASES
3.12 Purchase of five (5) GrimmerSchmidt portable air compressors.
SUMMARY: Purchase five (5) GrimmerSchmidt 175 portable air compressors from
GrimmerSchmidt Compressors, per Bid No, 034-38, to replace current unit numbers 760,
767,893, 1023, and 1024 in the Public Works Department.
ACTION: Authorized purchase of five (5) GrimmerSchmidt 175 portable aIr
compressors from United Rentals Northwest Inc, (inadvertently identified as
GrimmerSchmidt Compressors) in the amount of $70,606.80; and authorized the Mayor
and City Clerk to execute contract on behalf of the City; and authorized the City Manager
to surplus the replaced compressors at an auction,
FISCAL IMPACT: There are sufficient funds in Account No, 720-5023-472102 Motor
Vehicle Replacement.
RESOLUTIONS
3.13 RESOLUTION NO. 9868
A Resolution of the City Council of the City of Orange concerning the purpose of
obtaining Federal financial assistance under the California Board of Corrections (BOC)
Juvenile Accountability Block Grant (JAB G) Program,
ACTION: Approved
3.14 RESOLUTION NO. 9869
A Resolution of the City Council of the City of Orange expressing appreciation to
William E, Mertz of the Public Works Department and commending him for 36 years of
loyal and dedicated service,
ACTION: Approved.
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June 8, 2004
3. CONSENT CALENDAR (Continued)
3.15 RESOLUTION NO. 9871
A Resolution of the City Council of the City of Orange concerning the status of the
Circulation Element for the City of Orange,
ACTION: Approved,
3.16 RESOLUTION NO. 9872
A Resolution of the City Council of the City of Orange expressing appreciation to Steve
W, Hartman of the Public Works Department and commending him for more than 32
years of loyal and dedicated service,
ACTION: Approved.
3.17 RESOLUTION NO. 9873
A Resolution of the City Council of the City of Orange expressing appreciation to LeRoy
D, Striegel of the Public Works Department and commending him for more than 35 years
of loyal and dedicated service.
ACTION: Approved,
3.18 RESOLUTION NO. 9874
A Resolution of the City Council of the City of Orange expressing appreciation to
Charles H, Glass of the Public Works Department and commending him for 16 years of
loyal and dedicated service,
ACTION: Approved,
3.19 RESOLUTION NO. 9875
A Resolution of the City Council of the City of Orange expressing appreciation to
Richard Barnes of the Public Works Department and commending him for more than 34
years ofloyal and dedicated service,
ACTION: Approved,
3.20 RESOLUTION NO. 9876
A Resolution of the City Council of the City of Orange approving Lot Line Adjustment
LL 2004-02 combining two parcels of certain real property situated at 326 West Palm
Avenue in the City of Orange, County of Orange, State of California.
Owner: Chapman University, A California Corporation,
NOTE: Mayor pro tem Cavecche abstained on this item to stay consistent with her
previous votes on Chapman University.
ACTION: Approved,
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3. CONSENT CALENDAR (Continued)
(REMOVED AND HEARD SEPARATELY)
3.21 RESOLUTION NO. 9877
A Resolution of the City Council of the City of Orange temporarily closing and
restricting parking on Chapman Avenue from Shaffer Street to Glassell Street, on
Glassell Street from Chapman Avenue to Almond Avenue, and on Almond Avenue from
Glassell Street to Lemon Street to facilitate the Historic Edwards House move on June
21,2004 to 242 W. Almond Avenue,
Discussion
Linda Day, 1103 E, Wilson, thanked the City and Council for supporting the Edwards
House move, particularly with the removal and trimming of appropriate trees along the
route. She provided an update on the house move, reporting that they have been able to
save and store the bricks from the Edwards House porch and will build a new porch with
these old bricks,
In response to Council questions, Mr. Thomas explained it is the height of the trees along
South Glassell that will interfere with the house move because the house is wider at the
top than at the bottom,
MOTION - Murphy
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ACTION: Approved,
3.22 RESOLUTION NO. 9884
A Resolution of the City Council of the City of Orange expressing appreciation to
Sergeant James W, Pyne of the Orange Police Department for his 33 years of loyal and
dedicated service to the City of Orange,
ACTION: Approved.
MOTION - Murphy
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Items 3,5, 3,8 and 3,21 were removed and heard separately. Mayor Murphy abstained on
Item 3.6, Councilmember Alvarez abstained on Item 3,9. Mayor pro tem Cavecche
abstained on Item 3,20, All other items on the Consent Calendar were approved as
recommended,
END OF CONSENT CALENDAR
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4. REPORTS FROM MAYOR MURPHY - None.
5. REPORTS FROM COUNCILMEMBERS
5.1 Councilmember Coontz - Request staff to agendize both a thorough written and
oral update to the City Council, at a future Council meeting, on the progress of the Master
Plan of Recreational Trails.
Councilmember Coontz reported she had spent time researching Council Minutes and found that
she had made requests of staff ten times for information and action on the Master Plan of
Recreational Trails dating back to May 2000,
In one request she stated that "over a number of years, the City Council has been approached by
the community to address the many unresolved issues regarding existing and potential
recreational trails, including their construction, connections, funding of maintenance, safe road
crossing, and trail hazards,"
She recalled numerous residential developments that occurred over the years on which the city
required such trails; and she had been told that the requirements probably go back over 40 years,
so it can be acknowledged that the City had a responsible hand in their existence,
In September 2000 the Council approved a consultant agreement for a review and update of the
Master Plan of Recreational Trails for $22,000, The purpose of the contract with Purkiss Rose
was to update the Master Plan, However, staff indicated at a later date the Plan would not be
revised, That is a curious turn of events because the Plan is part of the Open Space Element of
the General Plan, and she assumed most if not all of the Elements of the General Plan would
soon be updated, She also questioned what happened to the Purkiss Rose accomplishments,
including results of the public input and discussions at the open meetings. She understands they
have not been put forward publicly.
In talking with a member of the Park Commission, she was told that the Commission has
requested a continuation of their study of the Recreational Trails because of the enormous detail
involved and there was an assumption on their part that the City Council was also being updated,
She indicated that the Council is not updated, other than the Minutes they receive,
The Commission minutes indicate that the City Council will experience a power point
presentation at a joint study session with the Commission, As a matter of record, the City
Council previously asked for more than that. She questioned how one power point study session
can be justified as sufficient preparation for Council policy decisions that will last yet another 10
or 20 years,
There are other related issues on which the Council needs an update and an opportunity to make
decisions. The Diocese of Orange has applied for a Conditional Use Permit for establishment of
a trail. The Council was not told of that application but it was referenced in the Commission's
minutes. Another issue is the proposal by Supervisor Campbell to retain the "bat bridge" as a
crossing over Santiago Canyon Road for trail use, She wondered if the Council was supporting
this proposal.
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S. REPORTS FROM COUNCILMEMBERS (Continued)
She requested the Council's support in asking staff to sufficiently prepare the Council for the
decisions they must make on the Master Plan of Recreational Trails and give the Council
information on both the Diocese of Orange application and the issue of the "bat bridge",
She noted the importance of keeping the Council and the community informed before the
Council is asked to make policy decisions on a beneficial issue, It is important to have strong
informational background delivered beforehand and in a timely manner.
City Manager David Rudat assured Council that staff will prepare a sufficient trails report.
Councilmember Alvarez also requested information be provided on grant activity for trails.
Councilmember Ambriz reiterated the need for information on what the City is doing to pursue
grant opportunities; noting that the City Council has verbally expressed the importance of trails
to the community, He thanked Councilmember Coontz for bringing the trails issue forward as
the City is behind in this issue.
Councilmember Coontz pointed out the Council has taken responsibility to require trails but
needs to step forward in funding the trails, She spoke on the need to budget for trail connections
and promote the areas beneficial to the City,
Councilmember Alvarez noted there is an upcoming Study Session on Grijalva Park which will
help in bringing this information forward.
Mayor Murphy suggested a report to track progress on individual trail projects which will allow
the Council to prioritize trail projects. He commended staff for pursuing grants, including a $2
million grant for Grijalva Park.
Councilmember Coontz further noted it is important to look at new parks, but at the same time, it
is also important to review existing parks to see what can be done. It is also important to note
there are different types of trails throughout the City,
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
7. ADMINISTRATIVE REPORTS - None.
8. REPORTS FROM CITY MANAGER
Off Al!enda Item
City Manager David Rudat asked for a report from the Police Department on a new grant
opportunity,
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June 8, 2004
8. REPORTS FROM CITY MANAGER (Continued)
Captain Bob Gustafson reported on a grant from the Office of Traffic Safety for $433,000 to the
Police Department for the ROAD (Repeat Offender Apprehension Detail) program, The grant
will allow traffic citation tracking and license suspension reviews as drivers with revoked,
suspended, and/or unlicensed drivers are involved in a large number of injury accidents, He
further explained that the grant provides for a full time two year Dur team, including a DUI
trailer with new technology. He further provided statistics to support the grant program, pointing
out that 20% of all collisions involve unlicensed drivers and 60% of hit and run accidents involve
one of these types of drivers.
8.1 Presentation of the FY 2003-04 Third Quarter Budget Report which includes the
period July 1,2003 through March 31, 2004.
SUMMARY: This Third Quarter Report helps inform the City Council of departmental
performance for the quarter, including progress towards the achievement of departmental goals
and completion of major capital improvement projects, and summarizes the results of the City's
financial operations,
MOTION - Cavecche
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ACTION: Received and filed the FY 2003-04 Third Quarter Budget Report,
9. LEGAL AFFAIRS
9.1 ORDINANCE NO. 12-04 (FIRST READING)
An Ordinance of the City Council of the City of Orange amending the Amended and Restated
Redevelopment Plan for the Orange Merged and Amended Redevelopment Project Area to
extend certain time limitations,
MOTION - Alvarez
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that Ordinance No, 12-04 be read by title only and same was set for second reading by
the preceding vote,
9.2 ORDINANCE NO. 16-04 (SECOND READING)
An Ordinance of the City Council of the City of Orange amending Chapter 5,92 of Title 5 of the
Orange Municipal Code Relating to Regulations for News Racks on Public Property,
MOTION - Coontz
SECOND - Alvarez
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that Ordinance No, 16-04 be read by title only and same was approved and adopted by
the preceding vote,
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10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY
11. RECESS TO CLOSED SESSION
The City Attorney reported that pursuant to Government Code Section 54954.2, the City Council
may take action on items of business not appearing on the Agenda, if the City Council finds by a
4/5 vote that there is a need to take irnmediate action and that the need for action came to the
attention of the City after the posting ofthe Agenda, One June 6th, President Bush declared June
11 th as a National Day of Mourning for former President Ronald Reagan, The State has also
declared Friday a state holiday, If the City is to close in conjunction with this State holiday, the
City needs to take irnmediate action, including any impacts on the City's current labor
agreements, which would be considered in Closed Session,
MOTION - Murphy
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved that there is a need to take immediate action on the matter to consider Friday, June 11 th as
a National Day of Mourning and to close City Hall; and the need for this action came to the
attention of the City after the posting of the Agenda,
The City Council recessed at 5:15 p,m, to a Closed Session for the following purposes:
a, Conference with Legal Counsel - Existing Litigation pursuant to Government Code
Section 54956,9(a):
City of Orange v, UltraMar, Inc. et a!., Orange County Superior Court Case
No, 02CC03241
b, Public Employee Appointment pursuant to Government Code Section 54957
Title: Police Chief and Economic Development Director
c, Conference with Labor Negotiator pursuant to Government Code Section 54957.6
City Negotiator: Steven Pham
Employee organizations: AlIlabor organizations.
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,
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7:00 P.M. SESSION
Mayor Murphy announced there was discussion during Closed Session to close City Hall on
Friday, June 11 th as a National Day of Mourning for former President Ronald Reagan,
MOTION - Murphy
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to close City Hall on Friday, June 11,2004 in honor of the National Day of Mourning for
Ronald Reagan, 40th President of the United States,
12. PUBLIC COMMENTS
Arlen Craig, Address on File, spoke on Santiago Creek and enviromnental considerations and
policies,
13. PUBLIC HEARINGS
13.1 PROPOSED FISCAL YEAR 2004-05 CITY OF ORANGE BUDGET AND SEVEN
YEAR CAPITAL IMPROVEMENT PROGRAM
Time set for public hearing to consider the proposed Fiscal Year 2004-05 City of Orange Budget
and Seven Year Capital Improvement Program,
City Manager David Rudat announced the presentation of a balanced budget for the 2004-05
year that pursues policies of excellence committed to residents, businesses and visitors of the
City of Orange,
Barbara Messick, Sf. Assistant to the City Manager, reported that each year, the City of Orange
conducts three Study Sessions in addition to the public hearing to review Budget Goals and
Objectives, the Capital Improvement Program and Revenues and Expenditures,
She reviewed strategies for a balanced budget, which include programmed savings, amortization
of PERS safety rates over 25 years, planned use of reserves and a reduction in funding of special
workers comp safety allocation. She reviewed the highlights of the Capital Improvement
Program, including construction of the new Main Library and Fire Stations One and Eight. She
reported the projected Total Revenues is $150.2 million and all Funds Expenditure is $163.4
million, She reviewed recommended staffing changes, with a net change of an additional four
positions, for a total of 683, She reviewed the General Fund Balance, noting Reserves of $16,6
million, This is derived from 25% of General Fund expenses ($15,6 million) which is
established as a catastrophic reserve and an additional $1 million reserved for debt service on the
Police facility building, She noted the City of Orange has the second highest reserve policy of
all cities in Orange County.
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13. PUBLIC HEARINGS (Continued)
City Manager David Rudat noted that the state budget deficit creates concerns and unknowns in
the City budget; noting it is anticipated there will be a revenue loss of $1,8 million to the General
Fund and $1.3 million to the Redevelopment Agency, Since the State budget has not yet been
adopted, he recommended the Council approve the budget as proposed, with the ability to revise
budgetary estimates as needed in January 2005 at a mid-year review, He did not anticipate the
state budget issue to be settled until November when there will be one, or maybe two, initiatives
on the ballot; and noted the City's economy should improve as the general economy improves,
In the meantime, the budget process will continue with programmed savings, vacant positions,
and consideration of catastrophic reserve funds, Finally, he acknowledged and thanked all
budget staff, department heads, and other staff who for their efforts in the preparation of this
budget.
MAYOR MURPHY OPENED THE PUBLIC HEARING
Arlen Craig, Address on File, spoke on the need for more funding for parks and park
development.
MAYOR MURPHY CLOSED THE PUBLIC HEARING
Discussion
Mayor pro tem Cavecche commended the City staff on the beautiful easy-to-read budget. She
expressed her appreciation that the staff had foresight to set reserve funds aside to cover this
expenditures this year. She requested a report on all Orange County cities, with information on
their reserve policies, budgets and reserve fund amounts,
City Manager David Rudat reported that information will be provided,
Mayor pro tem Cavecche stated that the next two years will be tight, based on an anticipated loss
of an additional $1 million from the state; which will require the Council to make tough
decisions on the use of catastrophic reserves, She appealed to the community to vote to protect
local govemment funds on a November ballot initiative, as local agencies do a better job in
providing services and being responsive to the needs of the community.
Councilmember Ambriz commented that the new more user-friendly web site for the City of
Orange will provide an exciting communication tool to the public regarding the budget and other
City information, He agreed the budget situation presents a scary picture for the next two years.
He stressed that the City needs to carefully review how it is spending money and time; and
commended staff for putting the budget information together,
Councilmember Coontz commented that she has observed the budgetary process for a few years,
noting that every ten years the City experiences the need to address difficult issues, She
commended the staff for their easy to read budget and dedicated work. She recommended that
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13. PUBLIC HEARINGS (Continued)
the Council prioritize projects and specify items considered most important as sometimes
projects can get shelved and not be returned.
Councilmember Alvarez asked about the decrease over last year in the emergency transport
program.
City Manager David Rudat assured Council that the emergency transport program is exceeding
its original goals of being self-sustaining, He reported that in past years, Medicare paid a higher
proportion of the fees charged, but the Federal government has reduced reimbursements of
Medicare, The budget reflects a decrease, but is still above what the staff originally proposed.
A study on the emergency transport program will be forthcoming to the Council.
Mayor Murphy commented on the budget document being easy to read with a great deal of
documentation; and agreed that the budget will create a tough situation for the City over the next
couple years, He further remarked on the unfortunate reality that local agencies are having to
pay for past problems at the state level. He suggested a modification to the General Fund
Balance table which would give an estimated reserve and unreserved fund balance as of June 30,
2005, which would provide a more clear reflection of the totals.
He referred to the budget as well thought out with a distinct plan of action, He also commented
that the City would love to spend more on a variety of projects, however the City needs to keep
in mind the possibility of things getting worse before improving. He expressed concern over a
state proposal to exchange funds at the city level with property tax versus sales tax; as he did not
want the City to lose its impetus in being active with the business community and its investment
in that important community,
Council Action:
RESOLUTION NO. 9866
A Resolution of the City Council of the City of Orange adopting said City's Budget for the
Fiscal Year 2004-05 and relating to transfers of funds between and within appropriations,
transfers between funds, and additional appropriations,
MOTION - Murphy
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to approve Resolution No, 9866,
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CITY COUNCIL MINUTES
June 8, 2004
13. PUBLIC HEARINGS (Continued)
RESOLUTION NO. 9867
A Resolution of the City Council of the City of Orange adopting the Appropriations Limit for the
Fiscal Year 2004-05.
MOTION - Murphy
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to approve Resolution No, 9867, as revised,
MOTION - Alvarez
SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to find that the portion of the FY 2004-05 Budget subject to the Gann Limit IS
$54,404,737, and therefore within the limit.
MOTION - Alvarez
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to approve the Seven Year Capital Improvement Program for the period ofFY 2004-05
to FY 2010-11.
13.2 GENERAL PLAN AMENDMENT NO. 2004-0003 - OPEN SPACE AND
CONSERVATION ELEMENT OF THE GENERAL PLAN - STORM WATER
QUALITY
Time set for public hearing to consider General Plan Amendment No. 2004-0003, amending the
Open Space and Conservation Element of the General Plan to address Storm Water Quality,
The City of Orange is required by the Santa Ana Regional Water Quality Control Board Third
Term National Permit Discharge Elimination System (NPDES) Permit to review its General Plan
and make any necessary amendments to ensure watershed and storm water quality management
are considered as specified in the Permit by July 1, 2004, The proposed General Plan
Amendment addresses current deficiencies and brings the City's General Plan into compliance
with the Permit.
Director of Community Development Alice Angus provided a brief staff report,
MAYOR MURPHY OPENED THE PUBLIC HEARING
PAGE 16
CITY COUNCIL MINUTES
June 8, 2004
13. PUBLIC HEARINGS (Continued)
THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING
Discussion:
Mayor pro tem Cavecche inquired about the language in Policy 1.5 added to the Open Space and
Conservation Element. She asked if, in receiving water limitations assigned by the Water
Quality Control Board, the policy refers to amounts or TMDLs (Total Maximum Daily Loads)
not yet assigned,
Director of Public Works Harry Thomas responded that TMDLs are already assigned for San
Diego Creek and Upper Newport Bay; and that the Santa Ana River will likely have that kind of
regulation placed upon it in the near future, He anticipates that the City will need to participate
in more standards within the next ten years,
Councilmember Coontz asked what other general elements are p<L"! of the Open Space and
Conservation Element.
Director of Community Development Alice Angus replied Open Space and Conservation
Element deals with trails, parks, and recreation areas and water bodies; and will be addressed as
part of the comprehensive General Plan update in 2005,
Council Action:
MOTION - Alvarez
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Find the General Plan Amendment categorically exempt from the provisions of the California
Environmental Quality Act per State CEQA Guidelines Section 15308 (Class 8, Actions by
Regulatory Agencies for Protection of the Environment),
RESOLUTION NO. 9878
A Resolution of the City Council of the City of Orange approving an Amendment to the Open
Space and Conservation Element of the City of Orange General Plan to comply with the
requirements of the Santa Ana Regional Water Quality Control Board Third Term National
Permit Discharge Elimination System Permit.
Applicant: City of Orange
MOTION - Alvarez
SECOND - Ambriz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
Moved to approve Resolution No, 9878,
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CITY COUNCIL MINUTES
June 8, 2004
14. PLANNING AND ENVIRONMENT - None.
15. ADJOURNMENT
The City Council adjourned at 7:45 p,m" in memory of Ronald Reagan, 40th President of the
United States, to a Study Session on June 22, 2004, at 3:00 p,m, in Conference Room C, to
review the Master Plan of Grijalva Park extension property and design of the gymnasium/sports
center.
The next regular Council meeting is scheduled for June 22, 2004 at 4:30 p.m.
e-IH
MARY, HY
CITYCL RK
KfARK A. MURPHY.
MAYOR
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